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Wednesday 7 August 2013
Former Hospital Facilities Director Sentenced to 14 Months in Prison for Improper Use of Purchasing CardRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 14 months incarceration and 3 years supervised release on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Timothy L. Mangis, 49, of Imperial, PA.
According to the information presented to the court, Mangis, the former Facilities Director at Magee-Womens Hospital of UPMC, unlawfully used a UPMC P-card to obtain merchandise, including auto repair services for his cars, and electronic equipment and building materials at retailers such as Pep Boys, Home Depot and Best Buy for personal use. Unauthorized use of the P- card exceeded $70,000 as determined by the Government.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Timothy L. Mangis.
Former Executive Director of Taos County Housing Authority and Husband Plead Guilty to Federal Conspiracy ChargeRead the Press Release
ALBUQUERQUE – Carmella Martinez, 42, and her husband Paul G. Martinez, 44, both of Arroyo Seco, N.M., each pleaded guilty this morning to conspiracy to commit theft concerning programs receiving federal funds and to commit theft of government property. The guilty pleas were announced by U.S. Attorney Kenneth J. Gonzales, David A. Montoya, Inspector General, U.S. Department of Housing and Urban Development (HUD), and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
Carmella and Paul Martinez were charged in Dec. 2012 in a 49-count federal indictment with conspiracy, theft from programs receiving federal funds, and theft of government property. According to the indictment, between Nov. 2003 and Dec. 2011, Carmella and Paul Martinez stole federal funds provided by HUD to the Taos County Housing Authority (TCHA) for a housing program that provides affordable housing for low-income Americans. During that time, Camella Martinez was employed by the TCHA, initially as a Financial Specialist and later as its Executive Director.
HUD is a federal agency whose core mission is to make quality, affordable housing accessible to all Americans. It oversees and funds programs designed to provide affordable housing to low-income Americans, including the Housing Choice Voucher Program which is commonly referred to as “Section 8.” Through the Section 8 Program, HUD pays rent subsidies known as “Housing Assistance Payments” (HAP) to approved property owners and landlords on behalf of eligible low-income beneficiaries. According to the indictment, the TCHA administers the Section 8 Program on behalf of HUD in Taos County and receives approximately $2.8 million in funds annually from HUD.
According to the indictment, while employed by the TCHA, Carmella Martinez was responsible for processing HAP checks to approved Section 8 property owners and landlords and providing preliminary approval of requests for rent subsidies to property owners and landlords under the Section 8 Program. She abused her position with TCHA by conspiring with her husband to engage in the theft of Section 8 housing funds. Carmella Martinez stole the money by issuing fraudulent HAP checks for Section 8 housing assistance to payees, including to Paul Martinez and to bank accounts held by her and Paul Martinez. Carmella and Paul Martinez then presented the fraudulent checks for payment at various locations.
During today’s proceedings, Camella and Paul Martinez each pleaded guilty to Count 1 of the indictment, charging them with conspiracy to commit theft concerning programs receiving federal funds and to commit theft of government property, and generally admitted the allegations in the indictment.
In her plea agreement, Camella Martinez admitted that she began issuing fraudulent, duplicate Section 8 HAP checks for the benefit of herself and her husband in 2000. She further admitted that in 2003, Paul Martinez began conspiring with her to steal federal funds by engaging in a scheme to issue and to present fraudulent HAP checks for their mutual benefit. Carmella Martinez admitted that she and her husband engaged in their unlawful scheme until Dec. 2011, when they learned they were the subjects of a criminal investigation. Carmella Martinez acknowledged that she and her husband stole at least $786,014.04 in federal funds through their unlawful scheme.
In his plea agreement, Paul Martinez admitted that he began conspiring with his wife to steal funds from TCHA, a program that receives federal funds, in 2003, and that their scheme continued until Dec. 2011, when they learned about the criminal investigation that led to the indictment against them.
At their sentencing hearings, which have yet to be scheduled, Camella and Paul Martinez each face a maximum penalty of five years in federal prison and a $250,000 fine. Under the terms of their plea agreements, the couple will be required to pay at least $786,014.04 in restitution to the victims of their criminal activities. The United States will move to dismiss the remaining 48 counts of the indictment after Camella and Paul Martinez have been sentenced.
This case was investigated by the HUD Office of Inspector General and the Albuquerque Division of the FBI, and is being prosecuted by Assistant U.S. Attorney Shana B. Long.
Former Arkansas State Police Lieutenant Indicted by Federal Grand Jury on Drug Distribution ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that a federal grand jury returned an indictment charging former Arkansas State Police Lieutenant Sedrick L. Reed, age 43, and Lamont M. Johnson, age 45, with federal narcotics and firearms charges. The charges stem from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force and Little Rock Police Department with the full cooperation of the Arkansas State Police. The investigation was also referred to as an Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
The charges in the indictment and potential penalties are as follows:
Count One Reed & Johnson. Drug Conspiracy, 21 U.S.C. § 846. NLT 10 years and up to life imprisonment; NLT 5 years and up to life supervised release; Up to a $10 million fine.
Count Two Reed & Johnson. Cocaine Distribution, 21 U.S.C. § 841(a)(1). Up to 20 years imprisonment; NLT 3 years and up to life supervised release; Up to a $1 million fine.
Count Three Reed. Possession with Intent to Distribute Cocaine, 21 U.S.C. § 841(a)(1). NLT 5 years and up to 40 years imprisonment; NLT 4 years and up to life supervised release; Up to a $5 million fine.
Count Four Reed. Possession with Intent to Distribute Heroin, 21 U.S.C. § 841(a)(1). NLT 5 years and up to 40 years imprisonment; NLT 4 years and up to life supervised release; Up to a $5 million fine.
Count Five Johnson. Felon in Possession of a Firearm, 18 U.S.C. § 922(g)(1). NMT 10 years imprisonment; NMT 3 years supervised release; Up to a $250,000 fine.
Count Six Johnson. Possession of a Defaced Firearm, 18 U.S.C. 922(k). NMT 5 years imprisonment; NMT 3 years supervised release; Up to a $250,000 fine.
Count Seven Johnson. Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. § 924(c). NLT 5 years and up to life imprisonment; NMT 5 years supervised release; Up to a $250,000 fine.
Count Eight Reed. Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. § 924(c). NLT 5 years and up to life imprisonment; NMT 5 years supervised release; Up to a $250,000 fine.
The indictment also contains four forfeiture allegations related to firearms and assets, including $30,073 in U.S. Currency seized from Reed’s person and at Reed’s residence, and $57,595 in U.S. Currency seized at Johnson’s residence.
Reed and Johnson will appear before United States Magistrate Judge H. David Young for Plea and Arraignment later this month, at which time a trial date will be set. Reed and Johnson previously appeared before United States Magistrate Judge J. Thomas Ray for an Initial Appearance on a criminal complaint charging them with the conduct underlying Count Two.
On July 23, 2013, following a hearing, Judge Ray entered an order of detention pending trial for Reed, finding by clear and convincing evidence that Reed presents a danger to the community and by a preponderance of the evidence that Reed presents a risk of flight. Also on July 23, 2013, following the United States’ presentation of evidence in support of detention, Judge Ray entered an order of detention without prejudice to Johnson presenting evidence at a later date.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force with assistance from the Little Rock Police Department. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
An indictment contains only allegations. The defendants are presumed innocent unless and until proven guilty.
Florida Man Charged for Operating Fraudulent Investment SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), today announced securities and wire fraud charges against STEVEN STALTARE for his alleged involvement in two separate fraudulent investment schemes. As alleged, in both schemes, STALTARE misled victim investors through numerous misrepresentations about how their money would be invested, and also failed to disclose that he previously had been convicted of securities fraud. In the course of operating both schemes, STALTARE allegedly misappropriated for his personal benefit more than $600,000 of investor funds. STALTARE was arrested this morning in Land O’ Lakes, Florida, and was presented today in federal district court in the Middle District of Florida.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Steven Staltare veered from one fraudulent scheme to another, leaving a trail of investors as the victims of his false promises and outright lies. Today, the series of self-serving frauds he allegedly perpetrated ends with his arrest.”
New York USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Staltare's alleged offense is a classic example of greed overcoming honest business practices. He preyed upon the trust of his investors, only to use their funds for his own personal benefit. His undoing came, however, when he underestimated the resolve and tenacity of Postal Inspectors along with their law enforcement counterparts to bring to justice anyone who commits a crime.”
According to the Complaint filed in Manhattan federal court:
From at least 2011 through 2012, STALTARE defrauded two investors (“Victim-1” and “Victim-2”) in connection with the transfer of shares of stock in Dematco, Inc. (“Dematco”). In late 2011, STALTARE facilitated Victim-1’s sale of hundreds of thousands of shares of Dematco stock for $70,000. Around the same time, STALTARE asked Victim-2 to lend him approximately $150,000 so that STALTARE could purchase shares of Dematco stock. In consideration of this loan, STALTARE promised Victim-2 repayment of the loan within three weeks; a third of the profits from the eventual sale of the Dematco shares; and Dematco stock certificates (obtained from Victim-1) as collateral for the loan. Ultimately, STALTARE did not pay Victim-1 the $70,000, and he did not repay Victim-2 for the $150,000 loan, or provide any profits from the sale of Dematco stock. Instead, STALTARE transferred Victim-1’s shares in Dematco to Victim-2 (as collateral for the loan), and misappropriated the funds provided by Victim-2 for his own personal benefit.
From at least 2012 through 2013, STALTARE defrauded two other investors (“Victim-3” and “Victim-4”) by misappropriating funds intended for investment in the stock of various companies, including Dematco, Preventia, Inc. (“Preventia”), First Choice Healthcare Solutions, Inc. (“First Choice”), and Savtira Corporation (“Savtira”). STALTARE agreed to invest approximately $25,000 for Victim-3 in Preventia stock, promising significant investment returns. STALTARE also agreed to invest approximately $357,000 for Victim-4 in various securities, including stock in Dematco, Preventia, First Choice, and Savtira, again promising significant investment returns. But contrary to his representations to Victim-3 and Victim-4, STALTARE misappropriated their investments for his own personal benefit.
In the course of effectuating these fraudulent schemes, STALTARE defrauded victims in excess of $600,000 from 2011 through 2013.
STALTARE, 48, of Land O’ Lakes, Florida, has been charged with two counts of securities fraud and two counts of wire fraud. The securities fraud and wire fraud charges each carry a maximum term of 20 years in prison.
Mr. Bharara praised the investigative work of the USPIS. Mr. Bharara also thanked the U.S. Securities and Exchange Commission.
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. Attorney Steve Lee is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Five Puerto Rico Police Department Officers Indicted on Federal Civil Rights, Obstruction of Justice and Perjury ChargesRead the Press Release
A second superseding indictment against five Puerto Rico Police Department (PRPD) officers was announced today by Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division; Rosa Emilia Rodriguez-Velez, U.S. Attorney for the District of Puerto Rico; and Carlos Cases, Special Agent in Charge of the FBI San Juan Field Office.
According to the indictment unsealed today, PRPD Lt. Erick Rivera Nazario, Officer David Colon Martinez and Officer Angel Torres Quinones were indicted on civil rights charges alleging that they violated the constitutional rights of Jose Irizarry Perez while he was celebrating the local election results at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008. Rivera was also charged with violating the civil rights of Irizarry Perez’s father, Jose Irizarry Muniz. In addition, Rivera, Colon, Officer Miguel Negron Vazquez and Sgt. Antonio Rodriguez Caraballo were indicted for obstruction of justice and making false statements to the FBI and a federal grand jury. Torres was indicted for obstruction of justice by providing misleading information to the local prosecutor.
According to the twenty-count second superseding indictment, while Colon held and restrained Irizarry Perez, Rivera and another PRPD officer physically struck Irizarry Perez and assaulted him with a police baton, which resulted in bodily injury to him. In addition, the second superseding indictment charges Torres with striking Irizarry Perez with a police baton, which also resulted in bodily injury to him. The second superseding indictment alleges that Rivera, Colon and Torres thereby deprived Irizarry Perez of his right to be free from unreasonable seizures by those acting under color of law. Although Irizarry Perez died as a result of injuries he sustained on Nov. 5, 2008, the second superseding indictment does not include charges that his death resulted from the defendants’ conduct. Rivera, who was a supervisor at the time of the incident, was also charged with failing to keep Irizarry Perez and his father from harm when an officer whom Rivera supervised assaulted the victims in Rivera’s presence.
In addition, the second superseding indictment alleges that Rivera, Colon, Negron and Rodriguez made false statements concerning the incident to the FBI and to the federal grand jury which had been investigating the incident. Colon and Negron were also charged with obstruction of justice for submitting false police reports and for providing misleading information to the Puerto Rico prosecutor that initially investigated the matter. Rodriguez and Torres were also charged with obstruction of justice for providing misleading information to the Puerto Rico prosecutor, and Rivera was additionally charged with obstruction of justice for submitting a false police report.
Each of the civil rights charges is punishable by a maximum term of ten years in prison. Each count charging obstruction of justice is punishable by a maximum term of twenty years in prison. Each count charging making false statements to the FBI and perjury is punishable by a maximum term of five years in prison. In addition, every charge in the indictment carries a maximum fine of $250,000.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the San Juan Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico and Senior Litigation Counsel Gerard Hogan and Trial Attorney Shan Patel from the Civil Rights Division of the U.S. Department of Justice.
Five Charged with Conspiring to Sell Heroin, Prescription Drugs Out of Newark, N.J., Retail StoreRead the Press Release
NEWARK, N.J. – Five Newark residents are charged as players in a conspiracy to sell heroin and prescription pills out of a retail store in the city, U.S. Attorney Paul J. Fishman announced.
Lamont Vaughn, 30; Jarez Barron, 25; Theresa Barron, 24; Latoyia Vaughn, 29; and Felicia Holt, 27, are each charged by complaint with two counts: conspiring to distribute and possess with intent to distribute heroin and oxycodone. Federal agents arrested four of the defendants this morning at their homes. Latoyia Vaughn, Lamont Vaughn’s sister, remains at large.
Agents seized two firearms from Lamont Vaughn’s home, where they found him attempting to flush what appeared to be drugs down the toilet. Holt allegedly threw drugs out the window of her home as she fled from law enforcement, but was apprehended a short time later.
The arrested defendants are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Cathy Waldor in Newark federal court.
For at least a year beginning in August 2012, the defendants allegedy worked together to sell heroin and prescription pills out of a retail store in Newark. According to the complaints, they were observed and recorded by law enforcement discussing business hours and inventory and dealing bricks of heroin as well as Endocet – which they referred to as “bananas” – and other pills.
The conspiracy to distribute heroin count carries a maximum potential penalty of 40 years in prison, a minimum term of five years in prison, and a maximum fine of $5 million. The conspiracy to distribute oxycodone count carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman praised special agents and officers of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, as well as the New Jersey State Police Street Gangs North Unit with the investigation leading to the arrests.
The government is represented by Senior Litigation Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Francisco Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Vaughn, Lamont et al. Complaint
Holt ComplaintFather and Son Felons Sent to Prison for Ammunition and Drug ChargesRead the Press Release
LAREDO, Texas – Rolando Rubio and his father, Antonio Rubio Jr., both of Laredo, have been ordered to prison for their respective pleas to cocaine trafficking and unlawful possession of ammunition, United States Attorney Kenneth Magidson announced today. Both entered guilty pleas in separate indictments on Oct. 15, 2012.
Today, U.S. District Judge George P. Kazen sentenced Rolando Rubio, 33, to a term of 235 months in federal prison for possessing with the intent to distribute 6.1 kilograms of cocaine. At the hearing, additional information was produced including that Rubio called his mother and other family members while he was in federal detention to contact his drug buyers for additional drug sales or for money owed for prior drug sales. Another matter presented at the hearing was Rubio’s alleged membership in the Mexican Mafia prison gang. In handing down the sentence, Judge Kazen noted he was taking into account the totality of Rubio’s criminal lifestyle, including Rubio’s bragging that he was "immune from prosecution because of his last name." The comment was a reference to his defense attorney, who was Webb County District Attorney from 1989 to 2008. "The time is NOW to pay the price," Judge Kazen told Rubio upon handing him the sentence. He was further ordered to serve five years of supervised release following completion of the prison term.Earlier this year, visiting U.S. District Judge Ivan Lemelle ordered Antonio Rubio, 68, to serve 30 months in federal prison to be followed by a three-year-term of supervised release.
Rolando Rubio was arrested by federal authorities on Aug. 8, 2012, for unlawful possession of a firearm and ammunition. On the evening of his arrest, and while at the Webb County Jail, Rubio telephoned family members and informed them he had hidden cocaine in his parent’s home. Agents conducted a search which resulted in the discovery of 6.1 kilograms of cocaine hidden in a back room of his parent’s home, some of which had already been pre-packaged and sorted according to weight by Rubio for street level distribution.
Antonio Rubio Jr. entered a guilty plea to unlawful possession of ammunition. He had been arrested following an investigation into his illegal actions related to drug trafficking and firearm offenses. Upon his arrest, a firearm and several rounds of ammunition were found in his home.
Both men have remained in custody since their arrests.
The investigation leading to the charges in these cases was conducted by the Laredo Police Department Narcotics Unit, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service and the Webb County District Attorney’s Office. Assistant United States Attorney Homero Ramirez prosecuted the cases.Evansville Man Sentenced to 15 Years in Prison After Child Exploitation ConvictionRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced this afternoon the sentencing of Evansville resident Floyd Patrick Williams, age 48, to 15 years in federal prison following his admission that he attempted to produce child pornography. Hogsett said these results come as he continues Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through new investigative techniques and aggressive prosecution.
“Working with our Operation Community Watch partners in Vanderburgh County and around the state, we are sending a warning to those who seek to exploit Hoosier children,” Hogsett said. “If you engage in this type of activity, there is no place to run or hide – we will find you, and you will be brought to justice.”
According to court documents, an Evansville Police Department Officer observed the defendant at the Evansville Central Library in April 2012. Over the course of a few minutes, the officer watched as the defendant on multiple occasions followed young boys into the bathroom of the library. A witness reported to the officer that Williams was looking between the stall openings at the young boys, and when questioned, one of the boys indicated Williams had put a camera phone over the stall and appeared to be taking pictures of the victim.
Williams was later arrested by the Evansville Police Department, at which time officers found the defendant to be in possession of both a phone and a “thumb drive.” A search of those items revealed a number of video recordings of minor boys urinating in public restrooms, including the Evansville Central Library. A search of Williams’ criminal history revealed a 2007 felony voyeurism conviction in Indianapolis for taking photographs of young boys in public restrooms.
According to Assistant U.S. Attorney Todd S. Shellenbarger, the defendant was ordered by Chief U.S. District Judge Richard L. Young to serve lifetime supervised release at the end of his prison term. These charges were the result of an investigation by the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, the Federal Bureau of Investigation’s Cyber Crimes Task Force, along with the Evansville Police Department.
This prosecution comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Earlier this year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Eleven Charged in Alleged Illegal Pharmacological Import and Distribution SchemeRead the Press Release
ALEXANDRIA, Va. – Seven arrests have been made in a coordinated operation spanning several states, related to the unsealing of a 17-count indictment and criminal complaint involving Gallant Pharma International Inc., an allegedly unlicensed company that is accused of distributing misbranded prescription drugs from its headquarters in Crystal City, Virginia, and an office in Springfield, Virginia. The individuals arrested were:
Syed “Farhan” Huda, 38, of Arlington, Virginia;
Deeba Mallick, 36, of Arlington, Virginia;
Anoushirvan R. Sarraf, 47, of Rockville, Maryland;
Talib Khan, 42, of Montreal, Canada, and Barbados;
Harvey Whitehead, 67, of Troy, Michigan;
Lisa Coroniti, 46, of Devon, Pennsylvania; and
Robert J. Sparks, 30, of Springfield, Virginia.
Munajj Rochelle, 36, a dual U.S.-Canadian citizen, is currently incarcerated in Montreal, Canada, on unrelated charges. Arrest warrants have been issued for the remaining three defendants, Robert Wachna of Ottawa, Canada, Mirwaiss Aminzada, 43, of Montreal, Canada.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Antoinette V. Henry, Special Agent in Charge, FDA’s Office of Criminal Investigations, Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, and Special Agent in Charge John P. Torres, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Washington, made the announcement after the four defendants arrested in the Eastern District of Virginia – Huda, Mallick, Sarraf, and Sparks – made their initial appearances before Judge John F. Anderson.
According to the 17-count indictment unsealed today, Khan and Huda were principals of Gallant Pharma, which allegedly began illegally importing prescription drugs, including intravenous chemotherapy drugs and injectable cosmetics, into the United States in or around August 2009. Gallant Pharma represented itself as a “Canadian company” and told potential customers that it sold drugs from Canada. The indictment alleges, however, that Khan, with the assistance of Huda, Mallick, Aminzada, and others, acquired drugs from other parts of the world, including India, Switzerland, and Turkey. These drugs were allegedly not manufactured and packaged in accordance with FDA requirements and, in some cases, were not approved by the FDA for use in the United States. The indictment states that Gallant Pharma imported the drugs with the assistance of co-conspirators in Canada and the United Kingdom, including Aminzada, who broke large shipments into many small packages, mislabeled the contents of packages, and addressed deliveries to Dr. Sarraf at his medical practice in McLean, Virginia, in order to lessen scrutiny by Customs and Border Protection. Initially, Gallant Pharma allegedly operated out of the apartment of Huda and his wife, Mallick, in Crystal City, where Huda is alleged to have served as the day-to-day head of Gallant Pharma in the United States and Mallick had primary responsibility for processing sales invoices and customer payments. Until June 2013, Gallant Pharma allegedly stored the misbranded drugs at an office in Springfield, Virginia.
According to the indictment, Gallant Pharma was not licensed to distribute prescription drugs in the United States. Nonetheless, Gallant Pharma is alleged to have sold drugs to doctors, hospitals, and medical practices across the United States, generating more than $8.6 million in revenue since August 2009. Gallant Pharma allegedly employed a cadre of sales representatives with dedicated sales territories across the United States.
The defendants are charged with the following offenses: conspiracy to commit importation fraud, introduction of misbranded drugs into interstate commerce, unlicensed medical wholesaling, wire fraud, and to defraud the FDA, each of which is punishable by a maximum term of imprisonment of five years; importation contrary to law, which is punishable by a maximum term of imprisonment of twenty years; introduction of misbranded drugs into interstate commerce, which is punishable by a maximum term of imprisonment of three years; unlicensed medical wholesaling, which is punishable by a maximum term of imprisonment of three years; wire fraud, which is punishable by a maximum term of imprisonment of twenty years; and monetary transactions with criminally derived proceeds, which is punishable by a maximum term of imprisonment of ten years.
The investigation was conducted by FDA Office of Criminal Investigations, Drug Enforcement Agency Group 33 Diversion Task Force, Department of Homeland Security Office of Immigration and Customs Enforcement, the United States Postal Inspection Service, with assistance from the Arlington County Police Department. Assistant United States Attorneys Lindsay A. Kelly, Alexander T.H. Nguyen, and Ryan K. Dickeyare prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.govEl Salvadoran Sentenced to Forty Years in Federal Prison for Armed Robbery and Felony Murder ConvictionRead the Press Release
ALBUQUERQUE – Marvin Aguilar-Lopez, 26, of El Salvador, was sentenced earlier today to 40 years in federal prison for his armed robbery and felony murder conviction. He will be deported after he completes his prison sentence. Aguilar-Lopez’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Allen Banks of the Albuquerque Police Department.
Aguilar-Lopez and his co-defendants, Pablo De Leon Ortiz, 34, and Francisco Melgar-Cabrera, 30, both of El Salvador, were indicted in Oct. 2009, and charged with robbery, felony murder and firearms offenses in a nine-count indictment stemming from the armed robbery of the Denny’s Restaurant located at 1602 Coors Blvd. NW in Albuquerque on June 20, 2009, and the murder of Stephanie Anderson, a cook at the restaurant. Aguilar-Lopez and De Leon Ortiz, who had been in state custody since the day of the robbery and murder, were arrested on the federal charges on Oct. 19, 2009.
On April 14, 2010, a ten-count superseding indictment was filed adding Jose “Tito” Humberto Melgar-Cabrera, the brother of Francisco Melgar-Cabrera, as a defendant. Jose Melgar-Cabrera was charged for being an accessory after the fact for assisting Francisco Melgar-Cabrera to avoid apprehension, and he was arrested on April 21, 2010.
A 14-count second superseding indictment was filed on October 14, 2010. The new indictment added four new robbery and firearms offenses against De Leon Ortiz, Aguilar-Lopez and Francisco Melgar-Cabrera. The new charges arose out of the armed robbery of the Lone Star Steakhouse & Saloon located at 10019 Coors Blvd. NW in Albuquerque on June 13, 2009.
On Sept. 30, 2011, Aguilar-Lopez entered guilty pleas to Counts 3 and 4 of the second superseding indictment charging him with the armed robbery of the Denny's Restaurant, and the felony murder of Ms. Anderson. His sentencing hearing was delayed by competency proceedings which concluded with judicial findings of legal competency.
Jose Melgar-Cabrera pleaded guilty to Count 10 of the second superseding indictment charging him with being an accessory after the fact on Sept. 23, 2011, and admitted assisting his brother to flee to avoid apprehension on the day of the armed robbery of the Denny's Restaurant and Ms. Anderson's felony murder. Melgar-Cabrera was sentenced to a 48-month term of imprisonment on Dec. 14, 2011, and faces deportation after he completes his prison sentence.
On Sept. 30, 2011, De Leon Ortiz entered a guilty plea to Counts 4 and 13 of the second superseding indictment, charging him with a felony murder committed during the June 20, 2009 armed robbery of an Albuquerque-area Denny's Restaurant, and the June 13, 2009 armed robbery of an Albuquerque-area Lone Star Steakhouse and Saloon. De Leon Ortiz was sentenced to 35 years in federal prison on March 13, 2013, and will be deported after he completes his prison sentence.
Francisco Melgar-Cabrera has yet to be apprehended and is considered a fugitive. The charges in the second superseding indictment against Francisco Melgar-Cabrera are only accusations, and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque Police Department, the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Albuquerque Division of the FBI. The case was prosecuted by Assistant U.S. Attorneys Louis E. Valencia, Presiliano A. Torrez and Roberto D. Ortega.
Eden Prairie Man Indicted for Embezzling Millions of Dollars from His Long-time EmployerRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges a 56-year-old Eden Prairie man with embezzling millions of dollars from his long-time employer. The indictment, which was filed on August 5, 2013, charges John Joseph Waters, Jr., with four counts of mail fraud, 16 counts of wire fraud, three counts of income tax evasion, and three counts of filing a false income tax return. The indictment was unsealed today, following Waters’ initial appearance in federal court. The indictment alleges that from at least 1999 through at least March 2012, Waters embezzled the funds to support his personal lifestyle.
The victim of the embezzlement is a former senior executive and shareholder at West Publishing, for whom Waters worked from approximately 1994 to1996. After retiring in 1996, the victim hired Waters to manage his numerous personal, business, and philanthropic pursuits. According to the indictment, Waters served in that capacity from 1996 to March 2009, during which time he was responsible for the oversight and management of the victim’s considerable assets, including numerous bank, trust, and investment accounts. To that end, Waters reportedly obtained signing authority on a number of the accounts.The indictment alleges that Waters used that signing authority to transfer millions of dollars from his employer’s accounts to accounts controlled by Waters, all without his employer’s knowledge or permission. To conceal the scheme, Waters reportedly used a bank account he controlled in the name of a deceased foreign exchange student, made false entries in his employer’s books and records, and directed others to refrain from reviewing certain bank statements.
After Waters left his position and the alleged embezzlement was uncovered, he purportedly discouraged his former employer from reporting it to authorities. He allegedly went so far as to threaten his former employer, warning him that harmful information about him would be revealed if he turned Waters in. The indictment asserts that, as part of the scheme, in March of 2012, Waters commenced a civil lawsuit against his victim, falsely alleging that the funds he took while an employee constituted payment of “deferred compensation” owed him pursuant to an oral modification of his employment agreement.
The indictment also states that Waters failed to report as income on his 2007, 2008, and 2009 federal tax returns the millions of dollars he embezzled. Accordingly, he allegedly filed false tax returns for those three years in addition to committing tax evasion.
If convicted, Waters faces a potential maximum penalty of 20 years in prison on each count of mail and wire fraud, five years on each count of income tax evasion, and three years on each count of filing a false tax return. Any sentence would be determined by a federal district judge.
This case is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant United States Attorney William J. Otteson.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Eagle Butte Man Convicted of Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Stanley Morrison, age 32, of Eagle Butte, South Dakota, was convicted by a federal jury on July 30, 2013, for Assault Resulting in Serious Bodily Injury.
A presentence investigation was ordered, and a sentencing date was set for October 28, 2013. The defendant was remanded to the custody of the U.S. Marshals Service.
This conviction carries a maximum penalty of 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
Morrison was indicted by a federal grand jury in May 2013 for an assault that occurred in January 2013 when Morrison struck the victim with his fists, causing the victim serious bodily injury.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.Dewitt Couple Charged in Cocaine SeizureRead the Press Release
GRAND RAPIDS, MICHIGAN – Patrick A. Miles, United States Attorney for the Western District of Michigan; Rodney M. Charles, Supervisory Agent in Charge of the Lansing, Michigan, FBI office; and Detective First Lieutenant Timothy Gill, Section Commander of the Tri-County Metro Narcotics Squad in Lansing, today announced the arrest and charge of Roberto Cantu, Jr., age 39, and Lindsay Ann Jones, age 30, as a result of the seizure of nearly a kilogram of cocaine and other evidence from their residence in DeWitt, Michigan, on August 1, 2013, pursuant to a search warrant. Cantu and Jones were arrested at that time and initially charged in a criminal complaint with possession of 500 grams or more of cocaine with intent to distribute. On August 6, 2013, Cantu and Jones were indicted on that offense by a federal grand jury in Grand Rapids. Both of them have been released on bond. The case has been assigned to the Hon. Paul L. Maloney, Chief District Judge, for further proceedings. If convicted on that charge, Cantu and Jones face a maximum penalty of not less than five years up to 40 years in prison, a $5,000,000 fine, and at least four years of supervised release.
The arrest and indictment were the result of an ongoing Drug Task Force investigation in the Lansing, Michigan, area by the FBI and Tri-County Metro Narcotics Squad. The investigation is continuing. The case is being prosecuted by Assistant U.S. Attorney John Bruha.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
Delbert Dean Spear Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 7, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DELBERT DEAN SPEAR, a 25-year-old resident of Crow Agency and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
Prison: 33 months
Special Assessment: $100
Supervised Release: 3 years
SPEAR was sentenced in connection with his guilty plea to assault with a dangerous weapon.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 6, 2012, law enforcement responded to the scene of a stabbing outside of Crow Agency, within the exterior boundaries of the Crow Indian Reservation. An adult male victim had been stabbed approximately seven times in the torso with a knife. The victim was life-flighted to Billings for medical care.
The victim reported that he and a group of people, including SPEAR, were drinking and driving together until the car ran out of gas. Everyone continued drinking until, at some point, the victim and SPEAR started arguing. Both got out of the car, and then SPEAR came at the victim with a knife as he stood beside the car. SPEAR stabbed him multiple times in the chest area until he stumbled and fell. SPEAR then stabbed him in the back area. After the stabbing, the victim walked to a house where he received help.
When questioned, SPEAR admitted that he stabbed the victim and, in a handwritten statement, wrote that he stabbed the victim seven times.
The victim suffered two stab wounds to the right lower chest that deflated his lung and hit his liver, four stab wounds to his right shoulder area, and one stab wound to his right triceps area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SPEAR will likely serve all of the time imposed by the court. In the federal system, SPEAR 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 Bureau of Indian Affairs and the Federal Bureau of Investigation.
David Russell Hargrove Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 7, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DAVID RUSSELL HARGROVE, a 33-year-old resident of Livingston, was sentenced to a term of:
Prison: 72 months
Special Assessment: $100
Forfeiture: computer
Supervised Release: 30 years
HARGROVE was sentenced in connection with his guilty plea to possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
Between approximately 2010 and December 2011, in Livingston, HARGROVE possessed computer files containing images of child pornography.
After executing a search warrant at HARGROVE's residence, law enforcement analyzed his computer and located and identified child pornography images and videos. HARGROVE admitted to using the peer-to-peer file sharing program Limewire and searching for terms such as "father/daughter." He admitted to knowing some images were child pornography. The images involved prepubescent minors engaged in sadistic or masochistic conduct. During the analysis of HARGROVE's computer, law enforcement also located child pornography in a separate folder on the desktop.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HARGROVE will likely serve all of the time imposed by the court. In the federal system, HARGROVE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Montana Internet Crimes Against Children (ICAC) Task Force.
Crownpoint Woman Pleads Guilty to Federal Involuntary Manslaughter Charge Involving the Death of a ChildRead the Press Release
ALBUQUERQUE – Sherie Rena Pete, 24, an enrolled member of the Navajo Nation who resides in Iyanbito, N.M., pleaded guilty this morning to a felony information charging her with involuntary manslaughter.
Pete was arrested on May 14, 2013, on a criminal complaint charging her with involuntary manslaughter based on a single motor vehicle crash on May 5, 2013, in Iyanbito, which is located on the Navajo Indian Reservation that resulted in the death of a three-year old child. Two other individuals were injured as a result of the crash.
In her plea agreement, Pete admitted killing the victim while driving under the influence of alcohol. Pete admitted that she had been drinking alcohol before driving her vehicle off the roadway, overcorrecting, and flipping the vehicle one and a half times.
Pete has been in federal custody since her arrest and remains detained pending her sentencing hearing. At sentencing, Pete faces up to eight years in federal prison and will be required to pay restitution to the victims of her criminal conduct.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Corporate Lawyer Sentenced to 24 Months’ Imprisonment on Convictions for Money Laundering and Securities Fraud ConspiracyRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Martin Weisberg, a former corporate partner in the New York office of the international law firm Baker & McKenzie LLP, was sentenced to 24 months’ imprisonment on his conviction for money laundering and for his conviction on conspiracy to commit securities fraud, to run concurrently. As a further part of his sentence, Weisberg was ordered to pay $297,500 in restitution, $250,000 in forfeiture, and a $200 special assessment, and is to serve three years of supervised release following the completion of his prison term. Weisberg must surrender to the Bureau of Prisons by November 6, 2013.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office. The sentence was imposed by United States District Judge Nicholas G. Garaufis.
“A license to practice law is not a license to violate it. As a noted attorney, Weisberg held a position of trust and had the respect of his peers. Instead of using his talents to provide wise counsel, he lied to and stole from his own clients, lied to the Securities and Exchange Commission, and betrayed the investing public. Weisberg’s unbridled greed has led him from the halls of an international law firm to a federal prison cell,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation, the agency that led the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.
The securities fraud conspiracy conviction resulted from Weisberg’s involvement with a scheme in which he received kickback payments from co-conspirators in connection with the issuance of publicly-traded securities by two of Weisberg’s former corporate clients. The money laundering conviction resulted from Weisberg’s theft of money from an escrow account established on behalf of one of his clients for which Weisberg served as escrow agent. The convictions relate to separate criminal acts committed by Weisberg and were charged in two separate indictments. Weisberg entered a guilty plea to both charges on May 21, 2013, on the morning that jury selection for his first trial was scheduled to begin.
In connection with the securities fraud conspiracy conviction, Weisberg engaged in a $55 million fraud scheme in which he agreed to conceal co-conspirators’ ownership and control of securities issued through a series of offerings by two public companies, Xybernaut Corporation and Ramp Corporation. During the course of the conspiracy, Weisberg acted as outside counsel to Xybernaut and Ramp, and was a member of Xybernaut’s Board of Directors. In return for his participation, the co-conspirators made kickback payments to Weisberg and others. The co-conspirators’ ownership and control over the Xybernaut and Ramp securities and the kickback payments were never disclosed in Ramp’s or Xybernaut’s corporate filings with the U.S. Securities and Exchange Commission.
In connection with the money laundering conviction, Weisberg was engaged by a corporate client to establish a $30 million escrow account. He advised the client that the account could not earn interest for the client’s benefit. In fact, Weisberg caused the $30 million to be placed into an interest-bearing account. During a 14-month period, the account earned approximately $1.6 million in interest, and Weisberg caused approximately $1.3 million to be wired out of the account to pay for his personal and business expenses without the client’s knowledge. Weisberg concealed the fraud by falsely convincing his client that the bank did not send monthly account statements; Weisberg instead sent the client letters on law firm letterhead stating false account balances.
The government’s case is being prosecuted by Assistant United States Attorneys Ilene Jaroslaw and John Nowak.
This prosecution was the result of efforts by President Barack 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. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
MARTIN WEISBERG
Residence: Waccabuc, NY
Age: 62Convicted Sex Offender Charged with Illegal Sexual Conduct with A MinorRead the Press Release
United States Attorney Laura E. Duffy announced that today a federal grand jury returned a superseding indictment charging Norman Felts, a convicted sex offender, with engaging in illegal sexual conduct with a minor while traveling in foreign commerce and for committing this offense while under a legal obligation to register as a sex offender. The defendant was previously charged with a complaint and has been in custody since his arrest on June 11, 2013.
The charging document alleges that, between December 2008 and January 11, 2013, Felts, a citizen of the United States, traveled to Mexico and engaged in illicit sexual conduct with a person under the age of 18, in violation of Title 18, United States Code, Section 2423(c). During that time period, Felts was required by federal and California state law to register as a sex offender. The superseding indictment also alleges that, on May 28, 2013, Felts possessed a hard drive that contained visual depictions of minors engaged in sexually explicit conduct, in violation of Title 18 U.S.C. 2522(a)(4)(B), and transported images of minors engaged in sexually explicit conduct, in violation of Title 18 U.S.C. 2522(a)(1).
As to these charges, the superseding indictment alleges that Felts was previously convicted of oral copulation under Cal. Penal Code 288A in 1972, child molestation under Georgia law in 1977, and procurement of a child under the age of 16 for lewd or lascivious acts under Cal. Penal Code 266j.
The defendant is next scheduled to be in court on August 8, 2013, before Judge Cathy Ann Bencivengo. The public is reminded that an indictment itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
This case stems from an investigation by the Department of Homeland Security, Immigration and Customs Enforcement's Homeland Security Investigations.
This case was brought as part of the Department of Justice's Project Safe Childhood and ICE's Operation Predator. Both are nationwide initiatives to combat the growing epidemic of child sexual exploitation and abuse, to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." For more information about on Operation Predator, please visit www.ice.gov.
Anyone with information relating to the charges against this defendant is urged to call (619) 744-4623 and leave a confidential message, which will be returned by special agents investigating this case.
DEFENDANT Case Number: 13CR2296-CAB Norman Felts In Custody SUMMARY OF CHARGESCount 1 18 U.S.C. 2423(c) Engaging in Illicit Sexual Conduct in a Foreign Place
Maximum penalties: 30 years’ imprisonmentCount 2 18 U.S.C. 2260A Penalties for Registered Sex Offenders
Maximum penalties: 10 years’ imprisonmentCount 3 18 U.S.C. 2522(a)(1) and (b)(1) Transportation of Images of Minors Engaged
in Sexually Explicit Conduct
Maximum penalties: 15 years imprisonment minimum, 40 year maximumCount 4 18 U.S.C. 2522(a)(2)(b) and (b)(2) Possession of Matters Containing Images
of Minors Engaged in Sexually Explicit Conduct
Maximum penalties: 10 years’ imprisonment minimum, 30 year maximumCount 5 18 U.S.C. 1001 False Statement to a Federal Officer
INVESTIGATING AGENCIES
Maximum penalties: 8 years’ imprisonmentImmigration and Customs Enforcement's Homeland Security Investigations
Customs and Border ProtectionAn indictment itself is not evidence that the defendant committed the crimes charged.
The defendant is presumed innocent until the Government meets its burden in court of
proving guilt beyond a reasonable doubt.Convicted Felon from Mount Olive Sentenced to 46 Months in Prison for Possessing A FirearmRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced ANTHONY EARL RIVERS, 25, of Mount Olive, to 46 months in prison, followed by 3 years of supervised release upon conviction for Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Sections 922(g) and 924.
On May 4, 2012, the Mt. Olive Police Department received a tip from a confidential informant that RIVERS, operating under the alias of “Worm”, had just been seen driving another individual who had been involved in an assault with a firearm on Claytor Street in Mt. Olive. The Mt. Olive Police Department immediately began to look for RIVERS and the individual who was reported to have committed the assault using a firearm. Officers located RIVERS and the other individual a few blocks away on Slocum Street and attempted a traffic stop. As soon as RIVERS pulled into a driveway the passenger jumped out of the vehicle and ran on foot. Mt. Olive police immediately gave foot chase, leaving RIVERS momentarily alone in the driver’s seat of his car.
RIVERS’ actions when he was alone in the car were captured on the exterior video camera of a Mt. Olive police cruiser. The video showed RIVERS quickly exiting his vehicle and leaning down into a bush located within a few feet of the car. By the time other officers arrived on the scene RIVERS was already attempting to drive away. RIVERS was stopped by other officers before he could leave.
Officers canvassed the area of the chase but were not able to locate a firearm. After searching the vehicle and discovering no firearm, RIVERS was allowed to leave the scene. Within minutes, however, officers discovered the firearm, an Armscor; model Citadel, .45 caliber semi-automatic pistol, located in the bush adjacent to the car. Officers immediately left the scene, found RIVERS, and took him into custody. While RIVERS initially denied knowledge of the firearm, he later made statements admitting that he had “stashed” the firearm.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with the assistance of the Mt. Olive Police Department. Assistant United States Attorney William M. Gilmore represented the Government.
Contractor Admits Colluding on Bids for Grant Funds from City of BayonneRead the Press Release
TRENTON, N.J. – A Hudson County, N.J., man today admitted his role in bid-rigging in order to fraudulently obtain U.S. Department of Housing and Urban Development grant funds from the City of Bayonne, N.J., U.S. Attorney Paul J. Fishman announced.
Leo Viguie, 38, of Bayonne, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of theft of government funds totaling $40,000.According to documents filed in this case and statements made in court:
Viguie was the owner of L.V. Renovations LLC, a general contracting company in Bayonne. The City of Bayonne Department of Community Development (CBDCD) was a government agency that received funds from the U.S. Department Housing and Urban Development under a federal program that provided grants of up to $20,000 to low income families to rehabilitate their homes and to repair conditions that were considered to affect their health and safety, and their homes’ accessibility, energy efficiency or code compliance.
In September 2011, Viguie, as the owner of L.V. Renovations, LLC, caused another contractor to provide Viguie with a bid that was higher than his own for the purpose of obtaining HUD grant funds from the City of Bayonne. Viguie then submitted the other contractor’s bid along with his own to the CBDCD. As a result of Viguie colluding with the other contractor and submitting the two bids, Viguie wrongfully obtained $20,000 in HUD grant funds from the CBDCD on Sept. 29, 2011.
In December 2011, Viguie supplied another contractor with a bid on behalf of L.V. Renovations that was higher than the other contractor’s bid for the purpose of obtaining HUD grant funds from the City of Bayonne. The other contractor then submitted the two bids to the CBDCD. As a result of Viguie colluding with the other contractor who then submitted the two bids, the other contractor wrongfully obtained $20,000 in HUD grant funds from the CBDCD on Dec. 28, 2011.
The theft of government funds charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is currently scheduled for Dec. 4, 2013.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent In Charge Aaron T. Ford in Newark, special agents of the U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Cary Rubenstein, and special agents of the IRS, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Newark office.
13-329
Defense counsel: Genesis A. Peduto Esq., North Bergen, N.J.Viguie Information
Colorado Man Pleads Guilty to Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Joe S. Romero, age 42, of Denver, Colorado, appeared before U.S. District Judge Karen E. Schreier, on August 2, 2013, and pled guilty to an Indictment that charged him with Failure to Pay Child Support.
The maximum penalty upon conviction is 2 years' imprisonment, a $250,000.00 fine, one year supervised release, one additional year of custody upon revocation, a $100.00 assessment fee, and child support restitution amount owing at the time of sentencing.
Romero was ordered by the District Court of Denver County to pay $200.00 per month for his minor child beginning January 7, 1993. Romero had not made a child support payment since May of 2011. At the time of the plea hearing, the total arrearage amount was $33,601.69.
The investigation was conducted by the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date was set for October 21, 2013. The defendant wasremanded to the custody of the U.S. Marshal pending sentencing.Coastal Community Bank Executives and Attorney Charged with Conspiracy, Wire Fraud, False Statements, and Making a False Claim Against the United StatesRead the Press Release
PANAMA CITY, FLORIDA– Donald Terry Dubose, aka “Terry Dubose,” 65, of Panama City Beach, Florida; Elwood Ladon West, aka “Woody West,” 39 of Monroeville, Alabama; and Frank Alfred Baker, 61, of Marianna, Florida, have been charged by a Federal Grand Jury with one count of conspiracy to commit wire fraud against the Federal Deposit Insurance Corporation (FDIC), seven counts of wire fraud, three counts of making false statements to the FDIC, and one count of aiding and abetting a false claim against the United States, announced United States Attorney Pamela C. Marsh for the Northern District of Florida. A sealed indictment was returned by the Federal Grand Jury on July 9, 2013 and unsealed today.
The indictment alleges that Coastal Community Investments (“Coastal”) was a bank-holding company that owned Coastal Community Bank, based in Panama City Beach, and Bayside Savings Bank, based in Port St. Joe, Florida. Coastal Community Bank and Bayside Savings Bank both failed on July 30, 2010. Dubose was the Chairman and Chief Executive Officer of Coastal and the second largest Coastal shareholder. West was the Chief Financial Officer of Coastal and a Coastal shareholder. Baker was an attorney for Coastal and Coastal’s largest shareholder.
The fraud alleged in the indictment involved the FDIC’s Temporary Liquidity Guarantee Program (“TLGP”), which was created at the height of the financial crisis in October 2008. The purpose of the TLGP was to encourage banks to begin lending to one another again and, thereby, help stabilize the economy. To do this, the TLGP provided that the FDIC would guarantee a loan made by one financial institution (the “lender”) to another financial institution (the “borrower”) in an amount up to 125% of the borrower’s existing senior unsecured debt (“outstanding-unsecured debt”), thus assuring repayment to the lender by the borrower or, in the event of default, by the FDIC.
The indictment further alleges that, in October 2008, Coastal had a $3,000,000 loan with RBC Bank (USA), which was secured by 100% of the stock of Coastal Community Bank and Bayside Savings Bank (the “RBC Loan”). At that time, the RBC Loan was in default, thus giving RBC the ability to exercise its right to take the pledged stock and potentially rendering defendants’ shares in Coastal worthless. Under pressure from RBC to repay this debt, the indictment alleges that the defendants falsely certified to the FDIC that the RBC Loan was unsecured, knowing that it was secured, so that Coastal could get an FDIC guaranteed loan under the TLGP.
The indictment further alleges that Coastal obtained a $3,750,000 (125% of the RBC Loan) loan from central Florida-based CenterState Bank, which - based on the defendants’ misrepresentations - was guaranteed by the FDIC under the TLGP (the “TLGP Loan”). Coastal used the proceeds of the TLGP Loan to repay the RBC Loan. In June 2010, Coastal defaulted on the TLGP Loan, and, on August 7, 2010, CenterState Bank filed a claim with the FDIC for payment of the full amount due on the TLGP Loan, plus interest. The FDIC paid CenterState’s claim on August 13, 2010 by wiring $3,805,833.34 in principal and interest from the FDIC to CenterState.
Finally, the indictment alleges that Dubose, desiring to avoid losses to himself and his family as Coastal’s financial condition deteriorated, fraudulently sold and converted Coastal stock owned by him and his family members to unwitting investors by misrepresenting the nature of the stock, by misrepresenting Coastal’s financial condition, and by providing loans from Coastal Community Bank to finance the purchases of Coastal stock.
Defendants are scheduled for to appear in Federal court for their initial appearance and arraignment August 8, 2013 at 1:30 p.m. at the United States Courthouse, 30 West Government Street, Panama City, Florida.
The defendants are facing a maximum of 30 years’ imprisonment on each count of conspiracy to commit wire fraud and wire fraud. The defendants face a maximum of five years’ imprisonment for and making false statements to the FDIC and aiding and abetting CenterState Bank in making a false claim against the United States.
This indictment results from an extensive investigation by agents of the Federal Reserve Board – Office of the Inspector General, the FBI, the FDIC, and the Office of the Special Inspector General for the Troubled Asset Relief Program. The case is being prosecuted by Assistant U.S. Attorney Gayle Littleton.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.Clinton Woman Pleads Guilty in $2.3 Million Government Contract Fraud SchemeRead the Press Release
Greenbelt, Maryland – Larayne Whitehead, age 34, of Clinton, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to federal, state and local government agencies. Most of the contracts were awarded using an online marketplace, which contractors use to compete for federal contracts through a reverse auction process. The conspirators’ businesses often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to act as subcontractors and supply the goods required by contract by providing fake references and by falsely promising that the subcontractors would be paid after the government paid Whitehead. After the subcontractors delivered the goods required by the contracts, government agencies paid Whitehead, typically by electronic transfers to bank accounts set up in the business names but controlled by Whitehead. Whitehead fraudulently retained these proceeds for her own personal benefit and did not pay the subcontractors.
The conspirators typically operated under a particular business name for a period of six to 12 months until the business was either disqualified from the online marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name. The conspirators initially used their true names and addresses to register their businesses, but later attempted to conceal their true identities by using aliases.
Whitehead has agreed to forfeit $2,393,579 and a car.Whitehead faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Alexander Williams, Jr. scheduled her sentencing for January 14, 2014 at 12:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force - chaired by Assistant Attorney General for the Criminal Division Lanny A. Breuer - includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christen A. Sproule, who is prosecuting the case.
Child Pornography Trafficker Sentenced to 210 MonthsRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge James C. Fox sentenced MITCHELL BYRON HALES , 37, of Apex to 210 months imprisonment, followed by lifetime supervised release. HALES had previously been employed by the Wake County public school system.
HALES pled guilty to one count of distribution of child pornography in January 2013. Undercover investigators from the FBI found HALES online sharing images of child sexual abuse with others. After obtaining a search warrant, the FBI conducted a forensic examination of HALES’ computer equipment, which showed that HALES had amassed thousands of pictures and hundreds of videos of children being sexually abused, was communicating with others about the material, and had traded his collection extensively with others.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was led by the Federal Bureau of Investigation and the prosecution was coordinated with the Wake County District Attorney’s office. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Cedar Rapids Man Pleads Guilty to Providing A Gun to A FelonRead the Press Release
A man who provided a gun to a felon pled guilty on August 6, 2013, in federal court in Cedar Rapids.
Demetrius Hardiman, age 18, from Cedar Rapids, Iowa, was convicted of one count of transferring a firearm to a prohibited person.
At the plea hearing, Hardiman admitted that on May 8, 2013, he knowingly gave a gun to his brother, a convicted felon who was prohibited from possessing firearms. Cedar Rapids Police Officers encountered Hardiman and his brother at 1:15 a.m. and discovered that Hardiman’s brother, a felon, unlawfully possessed a cocked and loaded 9mm handgun. Hardiman told officers that he stole the gun the year before and had his brother carry the gun that night for protection.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hardiman remains free on bond previously set pending sentencing. Hardiman faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-0037.
Carlsbad Man Sentenced to Sixty-Three Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Theodore Robert Larsen, 34, of Carlsbad, N.M., was sentenced this morning in Las Cruces federal court to 63 months in federal prison followed by five years of supervised release for his possession of child pornography conviction. Larsen will be required to register as a sex offender after he completes his prison sentence.
Larsen was arrested in Sept. 2011, based on an investigation by Homeland Security Investigations (HSI), which included the execution of a federal search warrant at his Carlsbad residence. The evidence seized during that search included computers and computer-related media containing child pornography.
Larsen pleaded guilty to possession of child pornography in Nov. 2011, and subsequently entered into an amended plea agreement in April 2013. In entering his guilty plea, Larsen admitted that he knowingly possessed the child pornography found in the residence. Larsen also admitted that he used his computer and the Internet to access and retrieve child pornography, and that he possessed approximately 1,457 images and 264 video clips of child pornography.
This case was investigated by the Las Cruces office of HSI and the Carlsbad Police Department. It was prosecuted by Assistant U.S. Attorney Marisa Lizarraga of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Career Offender Sentenced to 188 Months for Bank RobberyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced James Robert Lisenby , 56, formerly of Oxford, North Carolina to 188 months imprisonment, followed by 3 years of supervised release. LISENBY was ordered to pay a $100.00 special assessment and restitution of $1,643.00 to SunTrust Bank, Oxford, North Carolina.
James Robert Lisenby was named in an Indictment filed on April 18, 2012, charging him with Bank Robbery, in violation of Title 18 U.S.C. § 2113(a). On April 23, 2013, Lisenby pled guilty to that charge.
According to the investigation, on January 17, 2012, LISENBY entered the SunTrust Bank in Oxford, North Carolina, carrying a bag and wearing a ski mask and gloves, with what appeared to be a firearm sticking out of his pocket. LISENBY, then approached the counter and demanded money from four tellers and, after receiving the money and placing it in the bag, he fled the bank on foot.
Investigation of this case was conducted by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force, Oxford Police Department, and the Granville County Sheriff’s Office. Assistant United States Attorney Thomas B. Murphy represented the government.
Bullhead Man Indicted on Sexual Abuse and Sexual Contact ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury.
Landon Iron Thunder, age 24, was indicted on July 17, 2013, for Sexual Abuse of a Person Incapable of Consent, Sexual Abuse of a Minor, Abusive Sexual Contact of a Person Incapable of Consent, and Abusive Sexual Contact of a Minor. Iron Thunder appeared before U.S. Magistrate Judge William D. Gerdes on July 26, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction for the charges is as follows. Sexual Abuse of a Person Incapable of Consent: any term of years up to life imprisonment; Sexual Abuse of a Minor: 15 years of imprisonment; Abusive Sexual Contact with a Person Incapable of Consent: 3 years of imprisonment; and Abusive Sexual Contact of a Minor: 2 years of imprisonment.
All counts include a possible $250,000 fine, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Iron Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case. Iron Thunder was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Bryant Man Indicted on Extortion ChargesRead the Press Release
Threatened Benton Police Department and Boston FBI
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Chief Kirk Lane of the Benton Police Department, announced today a federal grand jury returned an indictment charging Brandon Goodin, age 21, of Bryant, Arkansas, with two counts of attempted extortion in violation of 18 U.S.C. § 1951.
Count One of the indictment alleges that on April 11, 2013, Goodin sent an email to the Benton Police Department threatening “to kill one person at random every following day” unless the Benton Police Department paid Goodin $7,000,000 in cash. Count Two of the indictment alleges that on April 16, 2013, Goodin sent an email to the Boston Division of the Federal Bureau of Investigation threatening “we have a lot of these bombs in place across the nation and we can blow them with little effort” unless the Federal Bureau of Investigation paid Goodin $400,000,000 in cash.
The penalty for a violation of 18 U.S.C. § 1951 is up to 20 years imprisonment, up to 3 years supervised release, and up to a $250,000 fine.
Goodin is in custody and will appear before United States Magistrate Judge H. David Young for Plea and Arraignment later this month, at which time a trial date will be set.
The investigation was conducted by the Federal Bureau of Investigation and the Benton Police Department. It is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Blackfoot Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Stewart Bobtail Bear, Sr., age 41, of Blackfoot, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on August 2, 2013, and pled guilty to Assault Resulting in Serious Bodily Injury.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on or about March 24, 2011, when the Defendant and victim were both present at a gathering in Little Eagle. During the evening, various arguments began among individuals, including the Defendant and the victim. The victim decided to leave and was attacked from behind by the Defendant. As a result of the attack, the victim’s nose was shattered and he required surgery. The victim also sustained a permanent blind spot in his left eye.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for October 21, 2013.Beaumont Man Receives Federal Prison Sentence for Possession of Material Involving the Sexual Exploitaiton of ChildrenRead the Press Release
Department of Justice
Office of Public AffairsBeaumont, Texas – A 25 year old Beaumont, Texas man was sentenced to federal prison after having pleaded guilty earlier this year to charges of possession of material involving the sexual exploitation of children announced U.S. Attorney John M. Bales today.
Michael Brandan Griffith was sentenced to 78 months in federal prison during an appearance before United States District Judge Marcia Crone today. Griffith had pleaded guilty on April 9, 2013 to possession of material involving the sexual exploitation of children.
According to information presented in court, on Jan. 20, 2012, federal and local agents executed a search warrant at Griffith’s residence in Beaumont, Texas. Several computers and digital storage devices were seized during the search and found to contain more approximately 111 images and 59 videos of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case was investigated by the Beaumont Police Department and the Department of Homeland Security - Immigrations and Customs Enforcement and was prosecuted by Assistant U.S. Attorney Christopher Tortorice.
Atlanta Hospital Worker Pleads Guilty to Stealing $1.7 Million in Medical SuppliesRead the Press Release
BOSTON – A former employee of an Atlanta-based hospital pleaded guilty yesterday to conspiring to sell stolen medical supplies valued at more than $1.7 million.
Felicia Duggan, 41, of Georgia, pleaded guilty before U.S. District Judge Mark L. Wolf to conspiracy to commit the offense of interstate transportation of stolen goods and two counts of subscribing to a false tax return.
Over a two-year period, Duggan stole numerous medical supplies and devices from a supply room of an Atlanta-based hospital where she was formerly employed. Beginning in March 2008, Duggan conspired with others to sell those stolen medical supplies on the black market. The conspiracy originated in Boston and subsequently moved to Atlanta. Several people in the Boston and Atlanta areas have been charged as part of this investigation into the black market for stolen hospital medical supplies and devices.
The statutory maximum penalty is five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss on the charge of conspiracy and $250,000 on the charges of subscribing false tax returns.United States Attorney Carmen M. Ortiz; Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations in New England; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement.
This case is being prosecuted by Assistant U.S. Attorney Amanda P. M. Strachan of Ortiz’s Health Care Fraud Unit.
Antiques Dealer Pleads Guilty in New York City Federal Court to Wildlife Smuggling ConspiracyRead the Press Release
Qiang Wang, a/k/a Jeffrey Wang, a New York antiques dealer, pleaded guilty today in federal court in New York City to conspiracy to smuggle Asian artifacts made from rhinoceros horns and ivory and violate wildlife trafficking laws, announced Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, Preet Bharara, U.S. Attorney for the Southern District of New York, and Dan Ashe, Director of the U.S. Fish and Wildlife Service.
Wang was arrested in February 2013 as part of “Operation Crash,” a nation-wide crackdown in the illegal trafficking in rhinoceros horns, for his role in smuggling libation cups carved from rhinoceros horns from New York to Hong Kong and China. He pleaded guilty today before U.S. District Judge Katherine B. Forrest of the Southern District of New York.
“Wang and others conspired in an illegal trade that is threatening the future of these species,” said Acting Assistant Attorney General Dreher. “This prosecution and continuing investigation should send a clear message to buyers and sellers that we will vigorously investigate and prosecute those who are involved in this devastating trade.”
“Today’s guilty plea ensures that Qiang Wang, who flouted domestic and international regulations by smuggling artifacts made from an endangered species out of the United States, will be held to account for his crimes,” said U.S. Attorney Bharara. “This Office will continue to work with its law enforcement partners to hold to account anyone engaged in this illegal trade.”
“Poaching and profiteering are undermining decades of work by conservationists to stabilize and rebuild rhino and elephant populations,” said Fish and Wildlife Service Director Ashe. “As this latest guilty plea demonstrates, we continue working with our partners in the United States and overseas to stop the slaughter and crack down on the illegal trafficking that fuels it.”
According to the information, plea agreement, and statements made during court proceedings:
In China, there is a tradition dating back centuries of intricately carving rhinoceros horn cups. Drinking from such a cup was believed by some to bring good health, and antique carvings are highly prized by collectors. Libation cups and other ornamental carvings are particularly sought after in China and in other Asian countries, as well as in the United States. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including fake antiques made from recently hunted rhinoceros.
Between approximately January 2011 and February 2013, Wang conspired with at least two others to smuggle objects containing rhinoceros horn and elephant ivory out of the United States knowing that it was illegal to export such items without required permits. Due to their dwindling populations, all rhinoceros and elephant species are protected under international trade agreements. Wang made and used false U.S. Customs Declarations for the packages containing rhinoceros horn and ivory objects in order to conceal the true contents of the packages, and did not declare them to the U.S. Fish and Wildlife Service or U.S. Customs and Border Protection as required under U.S. law and international trade agreements.
Wang, 34, of Flushing, N.Y., pleaded guilty to one count of conspiracy, which carries a maximum penalty of five years in prison. Under the terms of the plea agreement, items recovered from Wang’s apartment, including an ivory statute found hidden behind his bed, will be forfeited. He is scheduled to be sentenced by Judge Forrest on Oct. 25, 2013.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Mr. Bharara and Mr. Dreher commended the U.S. Fish and Wildlife Service for its outstanding work in this investigation. They also thanked the New York State Department of Environmental Conservation Division of Law Enforcement and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance.
The case is being handled by the U.S. Attorney’s Office Complex Frauds Unit and the Justice Department’s Environment and Natural Resources Division. Assistant United States Attorney Janis M. Echenberg and Senior Trial Attorney Richard A. Udell of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.Antiques Dealer Pleads Guilty in Manhattan Federal Court to Wildlife Smuggling ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, announced that QIANG WANG, a/k/a Jeffrey Wang, a New York antiques dealer, pled guilty today in Manhattan federal court to conspiracy to smuggle Asian artifacts made from rhinoceros horns and ivory and violate wildlife trafficking laws. WANG was arrested in February 2013 as part of “Operation Crash,” a nation-wide crackdown in the illegal trafficking in rhinoceros horns, for his role in smuggling libation cups carved from rhinoceros horns from New York to Hong Kong and China. He pled guilty today before U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “Today’s guilty plea ensures that Qiang Wang, who flouted domestic and international regulations by smuggling artifacts made from an endangered species out of the United States, will be held to account for his crimes. This Office will continue to work with its law enforcement partners to hold to account anyone engaged in this illegal trade.”
Acting Assistant Attorney General Robert G. Dreher said: “Wang and others conspired in an illegal trade that is threatening the future of these species. This prosecution and continuing investigation should send a clear message to buyers and sellers that we will vigorously investigate and prosecute those who are involved in this devastating trade.”
According to the information, plea agreement, and statements made during court proceedings:
In China, there is a tradition dating back centuries of intricately carving rhinoceros horn cups. Drinking from such a cup was believed by some to bring good health, and antique carvings are highly prized by collectors. Libation cups and other ornamental carvings are particularly sought after in China and in other Asian countries, as well as in the United States. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including fake antiques made from recently hunted rhinoceros.
Between approximately January 2011 and February 2013, WANG conspired with at least two others to smuggle objects containing rhinoceros horn and elephant ivory out of the United States knowing that it was illegal to export such items without required permits. Due to their dwindling populations, all rhinoceros and elephant species are protected under international trade agreements. WANG made and used false U.S. Customs Declarations for the packages containing rhinoceros horn and ivory objects in order to conceal the true contents of the packages, and did not declare them to the U.S. Fish & Wildlife Service or U.S. Customs and Border Protection as required under U.S. law and international trade agreements.
WANG, 34, of Flushing, New York, pled guilty to one count of conspiracy, which carries a maximum penalty of five years in prison. Under the terms of the plea agreement, items recovered from WANG’s apartment, including an ivory statute found hidden behind his bed, will be forfeited. He is scheduled to be sentenced by Judge Forrest on October 25, 2013 at 3 p.m.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”), a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service, in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of Rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Mr. Bharara and Mr. Dreher commended the U.S. Fish and Wildlife Service for its outstanding work in this investigation. They also thanked the New York State Department of Environmental Conservation Division of Law Enforcement and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance.
The case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Janis M. Echenberg and Senior Trial Attorney with the Environmental Crimes Section of the United States Department of Justice Richard A. Udell are in charge of the prosecution.
Wang, Qiang Information
Aberdeen Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Aberdeen, South Dakota, man has pled guilty to Assault With a Dangerous Weapon.
Katlin Vine Tiger, age 21, appeared before U.S. District Judge Charles B. Kornmann on July 29, 2013, and pled guilty to the charge.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on or about the 25th day of August, 2012, when the Defendant and a juvenile male accompanied the victim to a private residence. While they were walking, the Defendant and the juvenile male assaulted the victim by striking him with their fists until he fell to the ground, and then began to kick the victim in the body and head. At the time of the attack, the Defendant was wearing steel-toed boots.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Tiger was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for October 21, 2013.2nd Defendant Sentenced to Federal Prison in International Conspiracy to Import and Distribute Prescription Drugs and Anabolic SteroidsRead the Press Release
PROVIDENCE, R.I. – Patrick Cunningham, 44, of Cranston, RI, has been sentenced to 18 months in federal prison for his participation in an international conspiracy to import and distribute prescription drugs and anabolic steroids, announced United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigation.
U.S. District Court Judge John J. McConnell, Jr., also ordered Cunningham to serve three years of supervised release upon completion of his prison term. Cunningham pleaded guilty on March 12, 2013, to one count each of conspiracy to distribute steroids and distribution of a misbranded drug.
Edmond Paolucci, 54, of Coventry, RI, a co-defendant in this matter, pleaded guilty in November 2012 to one count each of conspiracy to distribute steroids, possession with the intent to distribute steroids, distribution of a misbranded drug, and money laundering. He was sentenced on April 9, 2013, by U.S. District Court Judge John J. McConnell, Jr., to serve 33 months in federal prison followed by three years of supervised release.At the time of their guilty pleas, Cunningham and Paolucci admitted that from at least November 2009 until November 2011 they participated in a conspiracy to import various misbranded prescription drugs and bulk quantities of pills and injectable oil-based drugs shipped from Israel, Turkey and Bulgaria to postal boxes in Rhode Island, Massachusetts and Connecticut. Through his co-conspirators in Rhode Island, including Patrick Cunningham, Mr. Paolucci used an underground laboratory to repackage the drugs into retail-size pill packets and 10 ml vials, bearing Sciroxx and Xsorox labels. The repackaged drugs were shipped to customers in the United States who had made purchases on websites operated by Mr. Paolucci and his Israeli co-conspirators. A significant portion of the proceeds from the sale of the misbranded drugs was sent back to co-conspirators in Israel.
According to information presented to the court, records obtained from money transfer service companies showed that from February 2009 to September 2011 Mr. Paolucci transferred in excess of $76,000 in proceeds from steroid and prescription drug sales to individuals in Israel.
The cases were prosecuted by Assistant U.S. Attorney Richard B. Myrus.
A task force led by the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation. The task force partnerships include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, U.S. Postal Inspection Service, Homeland Security Investigations, Rhode Island State Police, North Providence Police, East Providence Police, and the Rhode Island National Guard.
United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigation, acknowledged the assistance of international counterparts at the Israel Ministry of Health, Division of Enforcement and Inspection, and Jerusalem Customs and VAT who provided significant assistance in the successful investigation and prosecution of this matter.
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Contact: 401-709-5357
[email protected]139 Individuals Indicted for Drug Trafficking in the Municipality of CaguasRead the Press Release
SAN JUAN, Puerto Rico – On July 29, 2013, a federal grand jury in the District of Puerto Rico returned three separate indictments against 139 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD) collaborated during the investigations. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) also collaborated during the arrests.
The first indictment charges 79 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Turabo Heights Public Housing Project, a housing facility owned by a public housing authority, and other areas nearby and within the Municipality of Caguas, Puerto Rico.
According to the indictment, beginning in 2005, as part of the manner and means of the conspiracy, the defendants would use electricity boxes known as “dangers” to stash packages or bundles of decked narcotics which were to be distributed to the sellers in a controlled manner. Sellers were not allowed to get more bundles or packages before tallying with the owner or his runner for the packages or bundles received. Tallies would be written in notebooks or sheets of paper.It was further a part of the manner and means of the conspiracy that during the span of the conspiracy, the marihuana drug points were identified by the colors blue (“Las Azules”) and yellow (“Las Amarillas”). Leaders would supply firearms to other drug trafficking organization members for protection of the narcotics and their proceeds. Lookouts would be posted with two way radios (walkie-talkies) in specific areas of the Turabo Heights Public Housing Project in order to alert other organization members of police presence or the presence of rival gangs.
During the span of the conspiracy, in order to be able to have a drug point at Turabo Heights, “rent” would be paid to the leaders of the drug trafficking organization and their family members. It was a part of the manner and means of the conspiracy that control of the drug points at Turabo Heights was, obtained and maintained by the use of force, violence, and intimidation which operated twenty-four (24) hours a day in 3 shifts per day, including a “midnight marihuana” shift. Facilitators would act as intermediaries in drug sale transactions when clients did not want to go into the housing project.
According to the indictment, the 79 co-conspirators had many roles in order to further the goals of the conspiracy. These were: two leaders; seven drug point owners (including the two leaders); four suppliers; three enforcers; 14 runners; 31 sellers; and 19 facilitators. Nine defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of forty-five million dollars.
The second indictment charges 31 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine, heroin, crack, marihuana, Percocet, and Xanax, within one thousand (1,000) feet of the real property comprising housing facilities owned by a public housing authority, to wit: the Brisas del Turabo Public Housing Project in the municipality of Caguas, PR. The object of the conspiracy was to distribute controlled substances for significant financial gain and profit.
The defendants and their co-conspirators would act in different roles in order to further the goals of the conspiracy, to wit: leaders who directed and supervised enforcers, suppliers, runners, sellers, drug processors, lookouts, and facilitators. Twenty defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of ten million dollars.
The third indictment charges 29 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine, heroin, marihuana, crack, Percocet, and Xanax, within one thousand (1,000) feet of the real property comprising housing facilities owned by a public housing authority, to wit: the Gautier Benitez Public Housing Project in the municipality of Caguas, PR. The object of the conspiracy was to distribute controlled substances for significant financial gain and profit.
It was further part of the manner and means of the conspiracy that the drug point would move through different locations within the Gautier Benitez Public Housing Project in order to avoid detection by law enforcement. The defendants and their co-conspirators would act in different roles in order to further the goals of the conspiracy, to wit: leaders who directed and supervised enforcers, runners, sellers, drug processors, lookouts, and facilitators. Seventeen defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of seventeen million dollars.
“Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, while ensuring that they face justice for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and to bring narcotics and firearms violators to justice.”
Special Agent in Charge of the DEA in Puerto Rico and the Caribbean stated: “Reducing violent crime in our community requires a commitment by federal and local law enforcement to combat illegal drug trade and the violence associated with it. This joint operation, which has been conducted for almost three years by the Drug Enforcement Administration, Federal Bureau of Investigations and Puerto Rico Police Department, represents that type of commitment of resources. We believe that today’s arrests will significantly reduce violence in Caguas by dismantling these notorious drug operations from top to bottom. We are hopeful that this will have a lasting community impact by reducing the level of crime in Puerto Rico.”
“The FBI's message is clear and unequivocal, we will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
Assistant US Attorneys Alberto López-Rocafort and Teresa Zapata and Special Assistant US Attorney Victor Acevedo are in charge of the prosecution of the cases. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, responsible for drug trafficking in Puerto Rico. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Tuesday 6 August 2013
Woman Found Guilty for Theft of Government Property and Aggravated Identity TheftRead the Press Release
Defendant facing a forfeiture of $153,896.45SAN JUAN, PR – Yesterday evening, Allison Gonzàlez-Martínez was convicted of 21 counts of theft of government property, one count of attempted theft of government property and one count of aggravated identity theft, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Gonzàlez-Martínez deposited or attempted to deposit 22 Treasury Checks for over $153,000 issued by the IRS in connection with false and fraudulent tax returns. The defendant spent some of the proceeds at Casa Febus, Capri, and Victoria’s Secret.
The tax returns were filed using the personal identifying information of the victims, when in reality, the victims never filed such tax returns with the IRS. According to the evidence presented at trial, the false and fraudulent tax returns were filed without the consent of the taxpayers whose identities appear in the returns.
“The Department of Justice is strongly committed to promoting compliance with federal tax laws,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “We congratulate our attorneys who held this defendant accountable for the harm she caused to her victims and our tax system. We will continue to vigorously pursue this issue.”
The case was investigated by the Internal Revenue Service with the collaboration of the Puerto Rico Police Department. The case was prosecuted by Assistant U.S. Attorney Mariana Bauza and Senior Litigation Counsel Charles Walsh.
Williamsville Man Pleads Guilty to Bomb MakingRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced that Duncan Badding, 25, of Williamsville, N.Y., pleaded guilty before United States District Chief Judge William M. Skretny, to unlawfully making and unlawfully possessing destructive devices. This offense carries a maximum penalty of 10 years in prison, a $250,000 or both.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that on August 8, 2012, the Amherst Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search of the defendant’s residence, at 66 Williamsburg Square in Williamsville. During the search, law enforcement officers discovered different volatile and explosive substances, chemicals and mixtures. Upon further inspection, several of the substances were homemade explosives, including, Triacetone Triperoxide (TATP), a mixture of ammonium nitrate and fuel oil (ANFO), and a mixture of Tannerite. In addition, several apparent destructive devices, or combination of parts and devices designed or intended to be used or converted into destructive devices, were also found. The explosive materials were later detonated by law enforcement officials so as to remove the threat of harm to the community.
The guilty plea was the culmination of an investigation on the part of officers from the Amherst Police Department, under the direction of Chief John Askey, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
A Sentencing date will be scheduled, at a later date.
Wilkes-BarreRead the Press Release
Man Charged With Counterfeiting
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a felony Information in U.S. District Court in Scranton charging Fabian Forbes, age 23, of Wilkes-Barre, Pennsylvania, with a conspiracy to deal in counterfeit United States Federal Reserve Notes.
According to United States Attorney Peter J. Smith, the Information charges that Forbes conspired with others in a scheme that involved the bleaching of genuine $1 Federal Reserve Notes for the purpose of printing over those notes with a genuine $100 Federal Reserve Note. The Information charges that Forbes engaged in this activity from December 2012 through June 2013.
The case was investigated by the United States Secret Service. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
White Eagle Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a White Eagle, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on August 2, 2013, by U.S. District Judge Charles B. Kornmann.
Ace Makes Him First, age 38, was sentenced to 33 months of imprisonment, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Makes Him First was indicted by a federal grand jury on September 19, 2012. He pled guilty to Count II of an Indictment on April 23, 2013.
The conviction stems from an incident in December of 2011 when the Defendant and the victim, who were in a domestic relationship, were involved in an altercation where the Defendant struck the victim around the head and face causing her lip to become swollen and split. The Defendant had been found guilty on two or more separate occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner in Standing Rock Tribal Court. All the offenses occurred against the same victim.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Makes Him First was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.West Hartford Attorney Pleads Guilty to Participating in Mortgage Fraud and Money Laundering ConspiraciesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that GABRIEL SERRANO, 47, of West Hartford, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to conspiracy charges stemming from his role in an extensive mortgage fraud scheme. SERRANO, an attorney, is a partner in the law firm of Serrano & Serrano, LLC.
According to court documents and statements made in court, from approximately June 2005 to at least November 2008, SERRANO was involved in a mortgage fraud conspiracy that involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms for the purchase of numerous houses in Hartford, New Haven, and Middlesex counties. SERRANO served as the closing attorney on at least two dozen fraudulent transactions.
SERRANO often served as the closing attorney when a co-conspirator purchased properties with financing from private lenders. Later, when SERRANO’s co-conspirator sold many of the properties to a buyer, SERRANO usually represented the buyer. In connection with many of the transactions where SERRANO’s co-conspirator sold properties, SERRANO knew that his co-conspirator, and not the borrower, had provided the required down payment checks on behalf of the borrower. SERRANO often released the seller’s proceeds checks to his co-conspirator before receiving a down payment, and he knew that his co-conspirator would use the seller’s proceeds checks to obtain the down payment check for the same transaction. In this way, contrary to what SERRANO led the mortgage lenders to believe, the borrowers were purchasing the properties with no down payment funds of their own.
In addition, some of the borrowers purchased multiple properties from SERRANO’s co-conspirator and represented to the mortgage lenders that they were purchasing each of the properties as primary residences. SERRANO knew that the borrowers did not intend to use the properties as primary residences.
In the course of many of the fraudulent closings involving his co-conspirator’s sale to borrowers, SERRANO received mortgage proceeds from banks and mortgage lenders. SERRANO would frequently disburse some of those proceeds to private lenders who had loaned his co-conspirator money to purchase those properties.
SERRANO has agreed that the loss attributable to his conduct is approximately $3.5 million.
SERRANO pleaded guilty to one count of conspiracy to commit mail and bank fraud, a charge that carries a maximum term of imprisonment of 30 years, and one count of conspiracy to commit money laundering, a charge that carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on October 29, 2013.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David T. Huang and Paul H. McConnell.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Wayne County Tax Preparer Sentenced to Federal PrisonRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced Tracie jones mathis , 47, of Goldsboro, North Carolina, to 57 months imprisonment, followed by 3 years of supervised release. Additionally, she was ordered to pay $1,094,742.00 in restitution joint and severally with Evelyn Gomez-Allen.
MATHIS was named in a Criminal Information filed on September 20, 2012, charging her with conspiring to defraud the United States with respect to claims, in violation of Title 18, United States Code, Section 286. On January 16, 2013, MATHIS pled guilty to that charge.
According to the investigation, MATHIS and her co-conspirators agreed to defraud the United States by engaging in a scheme to obtain the payment of fraudulent claims through the filing of materially false income tax forms. Particularly, MATHIS and her co-conspirators engaged in the fraudulent manufacturing of W-2 forms and identification documents to serve as supporting documentation for fraudulent 1040 forms.
"The defendant pleaded guilty to defrauding the government of nearly $2 million in phony tax returns, thereby enriching herself at the expense of the American tax payer," said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. "HSI will continue to work with our partners at the IRS and the U.S. Attorney’s Office to hold accountable those who seek to game the system through criminal activity.” Nicholson oversees HSI investigations in Georgia and the Carolinas.
"Tax fraud schemes rob the United States of needed funds," stated Special Agent in Charge, Jeannine A. Hammett, Internal Revenue Service Criminal Investigation. "IRS-CI will vigorously pursue those who perpetrate these crimes in an effort to defraud the United States government."
Investigation of this case was conducted by Homeland Security Investigations, the Internal Revenue Service Criminal Investigation, and the Wilson Police Department.
Waterloo Man Sentenced for Distribution of MethamphetamineRead the Press Release
A Black Hawk County man was sentenced August 5, 2013, to 15 years in federal prison for distributing methamphetamine in the Mason City area.
Michael Patrick Geraghty, age 42, of Waterloo, Iowa, received his prison term after a March 15, 2013, guilty plea to two counts of distributing methamphetamine, having previously been convicted of a felony drug offense in Black Hawk County, Iowa, in May 2007.
Information provided by the United States at the sentencing and change of plea hearings revealed that, during July 2012, Geraghty supplied ice methamphetamine to a confidential source on two separate occasions.
Geraghty was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Geraghty was sentenced to 180 months’ imprisonment. Geraghty was initially facing a 120 month sentence, but the district court imposed an additional 60 months imprisonment because Geraghty tried to hire a hit man to kill a confidential informant. A special assessment of $200 was imposed. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
Geraghty is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, and Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3002.
Utah Commission on Criminal and Juvenile Justice Gets $1,619,555 Department of Justice GrantRead the Press Release
Funding will Support Several Local InitiativesSALT LAKE CITY – The U.S. Department of Justice’s Office of Justice Programs has awarded a $1,619,555 Edward Bryne Memorial Justice Assistance Grant (JAG) to the Utah Commission on Criminal and Juvenile Justice.
JAG funding allows states and units of local government to support a broad range of activities to prevent and control crime based on their own state and local needs. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support and information systems for criminal justice programs.
The Utah Commission on Criminal and Juvenile Justice will use the JAG funds to enhance statewide public safety services, support evidence-based projects, support of the Utah Residential Substance Abuse Treatment (RSAT) program; and continue evidence-based projects that support the juvenile justice system. Utah JAG priority areas include gang prevention, education or enforcement; prescription drug abuse prevention, education or enforcement; sexual assault or domestic violence; mental health and problem solving courts; the needs of law enforcement, prosecution or county corrections; and programs that address alternatives to incarceration.
U.S. Attorney's Office on Pace for Record Number of Firearms IndictmentsRead the Press Release
The United States Attorney’s Office for the Northern District of Ohio filed 124 illegal firearms indictments in the first half of this year, U.S. Attorney Steven M. Dettelbach announced.
“Our office and law enforcement partners continue to work around the clock enforcing our nation’s firearms laws,” Dettelbach said. “We are on pace to file more firearms indictments than ever before.
“While we will continue to lock up the worst of the worst, who are forbidden from having guns but get them anyway, we must also continue to work to find systemic solutions to curbing the epidemic of gun violence,” Dettelbach said.
Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 53. That was followed by the Youngstown office (43), Toledo office (16) and Akron office (12).
There were 73 defendants sentenced so far this year for firearms crimes and the average sentence was nearly six years in prison (71.6 months).
Details of selected cases:
Warren Operation
More than 150 firearms were seized as part of an investigation that resulted in charges against 55 people for violations of federal firearms and narcotics laws in April. An additional 42 people were charged in state court. In just one example, Lewis Powell of Warren was indicted for illegally possessing 14 firearms, as well as body armor and weapons with obliterated serial numbers, as part of a conspiracy that brought heroin and cocaine from Detroit to Warren.
U.S. v. Schmidt
Richard Schmidt, of Toledo was indicted in January on a variety of firearms charges after investigators found him in possession of 18 firearms, body armor and more than 40,000 rounds of ammunition, despite a previous manslaughter conviction. Schmidt pleaded guilty and is scheduled to be sentenced in October.
U.S. v. Clements
Raymone Clements was sentenced to nearly 23 years in prison in July after a jury previously found him guilty of one count each of being a felon in possession of a firearm and being a felon in possession of ammunition.
Testimony at his trial showed Clements was shot a dog in a park in Cleveland Heights and has possession of a firearm and ammunition, despite 15 felony convictions, including rape, drug trafficking and aggravated robbery.
U.S. v. Romero
Jose Romero, of Lorain, was pleaded guilty in June to possessing 40 rifles, pistols and revolvers despite a 2005 conviction for domestic violence which precluded him from having firearms. He is scheduled to be sentenced in September.
Project Safe Neighborhoods is a nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime, and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.
PSN prosecution statistics for calendar year 2002 through 2012 are as follows (these numbers reflect indictments for the full calendar year, while the 124 figure above is just through the first half of 2013):
2002: 117 indictments
2003: 155 indictments
2004: 184 indictments
2005: 220 indictments
2006: 187 indictments
2007: 191 indictments
2008: 157 indictments
2009: 156 indictments
2010: 166 indictments
2011: 218 indictments
2012: 176 indictments
Two Men Charged in Texas and Arrested <br /> for Smuggling Counterfeit ViagraRead the Press Release
Two men were arrested today for allegedly conspiring to traffic in counterfeit and misbranded medicine, specifically Viagra. The arrests were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Jamal Khattab, 49, of Katy, Texas, and Fayez Al-Jabri, 45, of Chicago, were charged in an 11-count indictment, which was unsealed today in the Southern District of Texas. Khattab will appear tomorrow before U.S. Magistrate Judge Nancy Johnson in Houston, while Al-Jabri made his appearance today before U.S. Magistrate Judge Arlander Keys in Chicago, at which time he was ordered into custody pending an identity and detention hearing scheduled for Thursday morning.
The indictment charges Khattab with one count of conspiracy, one count of smuggling goods into the United States, two counts of trafficking in counterfeit goods, two counts of trafficking in misbranded drugs and two counts of trafficking in counterfeit drugs. Al-Jabri is charged with one count of trafficking in counterfeit goods, one count of trafficking in misbranded drugs and one count of trafficking in counterfeit drugs.
According to the indictment, from June 2010 through March 2012, the defendants smuggled counterfeit Viagra from China into the United States. The counterfeit Viagra would then allegedly get shipped either to Chicago or to Houston in bulk for later distribution in smaller quantities.
The indictment further alleges that law enforcement initially became aware of the smuggling in July 2010. At that time, Khattab was identified as an intended recipient of a package of counterfeit Viagra that was shipped from China to Houston and was intercepted by law enforcement agents in San Francisco. U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) and U.S. Food and Drug Administration Office of Criminal Investigations (FDA-OCI) agents in Houston were notified of the shipment and commenced an investigation.The indictment further alleges that from January 2011 through September 2011, Khattab and Al-Jabri delivered approximately 17,000 counterfeit and misbranded Viagra tablets to an undercover agent who had successfully infiltrated the counterfeit pharmaceutical trafficking organization.
Both men face up to five years in prison for the conspiracy, upon conviction, as well as a $250,000 fine. Trafficking in misbranded drugs and counterfeit drugs carries as possible punishment up to three years in prison and a $10,000 fine, while trafficking in counterfeit goods could result in a possible maximum sentence of 10 years in prison and a $250,000 fine. Finally, if convicted of smuggling goods into the U.S., Khattab could be sentenced to up to 20 years in prison and faces a possible maximum fine of $2.5 million.An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by HSI, FDA-OCI, U.S. Diplomatic Security Service (DSS), the Houston Police Department and the Chicago Police Department. The case is being prosecuted by Assistant U.S. Attorney Kebharu Smith of the Southern District of Texas and Senior Counsel John Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section.
Related Materials:
Indictment
Two Mayors and Two Lobbyists Charged in Separate Corruption InvestigationsRead the Press Release
Mayor of Sweetwater Received More Than $40,000 in Bribes; Mayor of Miami Lakes Received $6,750 in Bribes
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that four individuals have been charged in two separate complaints involving public corruption allegations. The first complaint charges Manuel L. Maroño, 41, the Mayor of Sweetwater, and two lobbyists, Jorge L. Forte, 41, and Richard F. Candia, 49, all of Miami, for their alleged participation in a kickback and bribery scheme (the Maroño complaint) in connection with purported federal grants for the City of Sweetwater. The second complaint charges Michael A. Pizzi, 51, the Mayor of Miami Lakes and Town Attorney for the Town of Medley, and Richard F. Candia, in a separate kickback and bribery scheme in connection with purported federal grants for both Miami Lakes and Medley (the Pizzi complaint). Both complaints charge the defendants with conspiracy to commit extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a).
U.S. Attorney Wifredo A. Ferrer stated, “Our democracy suffers when, as in these cases, elected officials use their power and political influence for personal gain instead of for the public good. Public corruption, at any level of government, corrodes and undermines the public’s confidence in our system of government. We are committed to stopping this corrosion and to help restore transparency to local government.”
“For the public to have confidence in their government, they must be certain that their elected officials will not use their position for personal gain,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “We encourage anyone who may have information about corruption to come forward and report it. This information is critical to our work. The South Florida community can be assured that public corruption will remain a top priority for the FBI.”
The defendants made their initial appearances in federal court today at 1:30 p.m. before U.S. Magistrate Judge Andrea Simonton. If convicted, the defendants face a maximum statutory penalty of up to twenty years in prison.
Investigation Background
The investigation began in approximately June 2011, when Candia began dealing with an FBI confidential source and two undercover FBI agents posing as the owners of a Chicago-based grant administration business. During meetings, the undercover agents represented to Candia that, with the aid of corrupt local public officials, they could obtain federal grant moneys, which they would then keep and distribute among themselves. After listening to the undercover agents’ proposal, Candia identified Maroño and Pizzi as potential participants in the scheme.
The Sweetwater Deal—Manuel Maroño
According to the Maroño complaint affidavit, after identifying Maroño as a potential participant in the proposed scheme, Candia introduced Maroño to the undercover agents. Maroño caused the passage of a resolution in Sweetwater that authorized the undercover agents’ company to apply for federal grant moneys on behalf of the City of Sweetwater. After the resolution was passed, Maroño and Forte personally met and negotiated with the undercover agents and accepted a series of cash payments in exchange for Maroño’s official action in support of the grant scheme. During these negotiations and meetings, Forte acted as the front man for Maroño.
To further the scheme and avoid detection, Maroño also participated in what he believed to be audit telephone calls from a federal grant auditor to confirm the grantee’s performance on the grant. During two separate audit calls, both of which were recorded, Maroño lied to and misled the auditor, who was in fact an undercover FBI agent, about the actual use of the grant money and the grantee’s performance. For their actions, Maroño and Forte received $40,000 and Candia received at least $5,000 in kickbacks in connection with the Sweetwater deal.
Lastly, Maroño, Forte and Candia received additional payments for their assistance in identifying other public officials whom they claimed might also be interested in participating in similar grant schemes in their cities. To this end, Maroño, Forte, and Candia used Maroño’s position as President of the Florida League of Cities to introduce the scheme to other officials. Maroño and Forte received an additional $20,000 in cash for these introductions, but no other public officials ultimately participated in the scheme.
The Miami Lakes/Medley Deals—Michael Pizzi
The second complaint charges Michael Pizzi and Candia with engaging in a similar grant scheme in Miami Lakes and Medley. As more fully explained in the affidavit filed in support of the Pizzi complaint, Candia introduced Pizzi to the undercover FBI agents to help implement the grant scheme in Medley, where Pizzi was the Town Attorney. After a series of meetings with Candia and the undercover agents, Pizzi initially agreed to participate in the scheme in exchange for $750 in campaign contributions, which he received in three separate checks delivered to his office by the FBI confidential source.
Thereafter, to aid in the grant scheme’s success, Pizzi backdated a document that endorsed the undercover agents’ company. Pizzi also handled what he believed to be an audit telephone call from a federal grant auditor to confirm the grantee’s performance on the grant. During that call, which was recorded, Pizzi lied to and misled the auditor, who was in fact an undercover FBI agent, about the actual use of the grant money and the grantee’s performance. In return for Pizzi’s help in Medley, Pizzi received a $1,000 cash kickback and other things of value.
Later, with the intent of expanding the grant scheme to Miami Lakes, Pizzi worked to get a resolution passed in Miami Lakes that would authorize the undercover FBI agents’ company to seek additional grant funds for the City of Miami Lakes. In exchange for his work in Miami Lakes, Pizzi received additional $2,000 and $3,000 cash pay-offs.
These cases were investigated by the FBI Miami Area Public Corruption Task Force with assistance from the City of Miami Police Department, Hialeah Police Department, Miami Beach Police Department, Miami Dade Police Department and Customs and Border Protection – Internal Affairs. The cases are being prosecuted by Assistant U.S. Attorney Jared E. Dwyer.
A complaint is only an accusation and a defendant is presumed innocent until and unless proven guilty.
Attachment:
Manuel Marono etal Complaint (PDF)
Michael Pizzi etal Complaint (PDF)
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.
Two Chicago Men Accused of Violating U.S. Sanctions by Providing Services to Zimbabwean Officials, Including President MugabeRead the Press Release
CHICAGO — Federal charges were unsealed today against two Chicago men for allegedly violating U.S. sanctions in late 2008 and 2009 by agreeing to assist Zimbabwe President Robert Mugabe and others in an effort to lift economic sanctions against them in exchange for $3.4 million. The defendants, PRINCE ASIEL BEN ISRAEL and C. GREGORY TURNER, allegedly met multiple times in the United States and in Africa with Zimbabwean government officials, including President Mugabe and Gideon Gono, governor of the Reserve Bank of Zimbabwe, who were individually subject to U.S. sanctions. During these meetings, Ben Israel and Turner allegedly agreed to engage in public relations, political consulting, and lobbying to have sanctions removed by meeting with and attempting to persuade U.S. federal and state government officials, including Illinois members of Congress and state legislators, to oppose the sanctions.
The sanctions against President Mugabe and other specially designated individuals in Zimbabwe were initially imposed in 2003 by President George W. Bush, and have been continued annually by President Obama, starting in March 2009, through the most recent 2 extension in March 2013. President Mugabe and his ruling ZANU-PF party have governed Zimbabwe since its independence in 1980. President Mugabe uses funds from Zimbabwe’s industries, particularly the diamond trade, to enrich himself and his family and to purchase the loyalty of subordinates, according to reports cited in the charges. The sanctions neither bar travel to Zimbabwe nor prohibit public officials from meeting with specially designated nationals to discuss removing the sanctions, but individuals may not provide lobbying, public relations, and media consulting services on behalf of or for the benefit of specially designated nationals.
Ben Israel, 72, appeared today before U.S. Magistrate Judge Arlander Keys in U.S. District Court in Chicago, and was released on his own recognizance with certain conditions. Turner, 71, also known as “Greg Turner,” of Chicago, is believed to be living in Israel and a warrant was issued for his arrest. Both defendants were charged with violating the International Emergency Economic Powers Act (IEEPA) in a criminal complaint filed last month and unsealed today.
The arrest and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; John Carlin, Acting Assistant Attorney General for National Security; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The Justice Department’s Counterespionage Section assisted in the investigation, which is continuing.
According to the charges, in early November 2008, Ben Israel and Turner began having discussions with Mugabe, Gono, and other ZANU-PF leaders regarding the influence Ben Israel and Turner could wield to have the sanctions removed. The defendants discussed with Mugabe, Gono, and others their association with many public officials who purportedly had close connections with then President-Elect Obama. Ben Israel and Turner allegedly violated IEEPA by engaging in public relations, political consulting, and lobbying efforts on behalf of President Mugabe and other Zimbabwe officials pursuant to a Nov. 26, 2008, “Consulting Agreement” that called for an initial payment of $90,000 and three subsequent equal installments of $1,105,000. In early December 2008, Ben Israel’s U.S. bank blocked a wire transfer of $89,970 into his account from a Zimbabwe official affiliated with ZANU-PF.
According to the complaint affidavit, Ben Israel and Turner:
- arranged for trips by federal and state government officials to meet with President Mugabe and other Zimbabwean officials, including in November and December 2008, and January, August, and December 2009;
- attempted to have Gono and other Zimbabwean officials speak at an issues forum in Washington, D.C., sponsored by a then U.S. Representative from California, and to assist those officials in obtaining visas to travel to the U.S. to attend the event;
- arranged for President Mugabe to meet with federal and state government officials in New York;
- lobbied a caucus of state legislators on behalf of Zimbabwean officials; and
- failed to apply to the Treasury Department for a license to engage in transactions and services on behalf of specially designated nationals.
In November 2008, the defendants allegedly arranged for Illinois State Senator A to meet with President Mugabe, after which Turner wrote an email to an associate stating that Turner and State Senator A “now understand the issues and will convey back to the President Elect.” Later that month, Turner sent an email to Ben Israel’s assistant stating they should see if State Senator A could “get 2 to 3 members of the House” and others to travel to Harare, Zimbabwe’s capital, in the coming weeks for a “fact finding vacation.” The defendants’ planning for a delegation of Illinois legislators to visit Zimbabwe included Turner asking Ben Israel to have State Senator A issue a letter to Gono, and Turner provided a draft of the letter to Gono, stating that State Senator A hoped the U.S. presidential election would cause the U.S. to take a fresh look at the sanctions. It also mentioned a potential State of Illinois trade office in Zimbabwe. The defendants and another individual allegedly arranged for Ben Israel, Illinois State Senator A and Illinois State Representative A to travel to South Africa in early December 2008. Travel records show the two legislators traveled to Israel but did not return as scheduled and extended their overseas stay.
Three days after they returned, a scheduler for President-Elect Obama’s transition team sent an email to another transition team member stating that State Representative A “wants a phone call from [transition team officials] regarding a meeting he had last week in Zimbabwe. I am not sure who to pass this on to but it’s the second time they have called.” The transition team forwarded this email to the FBI based on its concerns that State Representative A may have violated sanctions by traveling to Zimbabwe.
Ben Israel and Turner further planned for State Senator A and State Representative A to travel to Zimbabwe in January 2009, with additional emails indicating that Ben Israel would arrive with them, and wanted to provide Gono with an update on their progress to oppose and remove the sanctions. State Senator A cancelled his trip but travel records show that State Representative A traveled to South Africa and returned to the U.S. from Senegal in late January 2009.
Throughout 2009, Ben Israel and Turner allegedly continued to pass communications between Zimbabwean leaders and U.S. public officials while seeking payment for their services from Gono. In June 2009, Turner sent an email to Ben Israel and attached a letter Gono had written to U.S. Senator A. The letter stated that Gono had been “fully briefed about your [U.S. Senator A’s] current efforts on the sanctions issue by the very able” Turner. In the email to Ben Israel, Turner asked for a similar letter from State Senator A on the intent to solicit the support of national elected officials regarding the sanctions.
In September 2009, Turner emailed a Zimbabwean official letters that the two Illinois state legislators had written in July 2009, expressing their commitment to assist President Mugabe and Gono. State Senator A’s letter stated that he would use his leadership position with the international committee for the National Black Caucus of State Legislators to organize a delegation to travel to Zimbabwe.
In August 2009, an individual forwarded to Turner two official letters that U.S. Representative A, from Chicago, wrote to President Mugabe and Gono, stating that U.S. Representative A had been briefed by Ben Israel, and requesting a meeting with them in Harare in late August or early September. About the same time, Turner forwarded to a Zimbabwean official an itinerary for U.S. Representative B, also from Chicago, to travel to Africa as part of an official Congressional delegation that stopped in South Africa.
The affidavit further describes details of an effort by Ben Israel and Turner to have Gono speak at an issues forum hosted by then U.S. Representative C from California in September 2009. Turner allegedly attempted to assist Gono, as well as two other Zimbabwean officials, obtain visas to ensure that they could attend and participate in the forum.
Ben Israel and Turner also allegedly lobbied a caucus of state legislators to advocate for the removal of sanctions: Ben Israel spoke at the caucus’s convention in December 2009; they sought for the caucus to pass a resolution asking for the removal of sanctions; and they made plans to take caucus members to Zimbabwe as part of a December 2009 delegation before that trip was cancelled.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and William Ridgway, and David Recker, a trial attorney with the Justice Department’s Counterespionage Section.
Violating IEEPA carries a maximum penalty of 20 years in prison and a $1 million fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint 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 against each defendant.
Complaint
Two Arrested for Smuggling Counterfeit ViagraRead the Press Release
HOUSTON – A federal indictment has been unsealed charging two men with conspiring to smuggle/traffic in counterfeit and misbranded medicine, specifically Viagra, United States Attorney Kenneth Magidson announced today along with Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.The 11-count indictment, was unsealed upon the arrest today of Jamal Khattab, 49, of Katy, and Fayez Al-Jabri, 45, of Chicago, Ill. Khattab will appear before U.S. Magistrate Judge Nancy Johnson in Houston tomorrow, while Al-Jabri made his appearance before U.S. Magistrate Judge Arlander Keys in Chicago, at which time he was ordered into custody pending an identity and detention hearing for Thursday morning.
The indictment charges Khattab with one count of conspiracy, one count of smuggling goods into the United States, two counts of trafficking in counterfeit goods, two counts of trafficking in misbranded drugs and two counts of trafficking in counterfeit drugs. Al-Jabri is charged with one count of trafficking in counterfeit goods, one count of trafficking in misbranded drugs and one count of trafficking in counterfeit drugs.
According to the indictment, from June 2010 through March 2012, the defendants conspired to and smuggled counterfeit Viagra from China into the U.S. The counterfeit Viagra would then allegedly be shipped either to Chicago or Houston in bulk for later distribution in smaller quantities.
According to the indictment, law enforcement initially became aware of the counterfeit Viagra smuggling in July 2010. At that time, Khattab was identified as an intended recipient of a package of counterfeit Viagra shipped from China to Houston which was intercepted by law enforcement agents in San Francisco. Agents with Homeland Security Investigations (HSI) and Food and Drug Administration - Office of Criminal Investigations (FDA-OCI) were notified of the shipment and commenced an investigation.
The indictment further alleges that from January through September 2011, Khattab and Al-Jabri delivered approximately 17,000 counterfeit and misbranded Viagra tablets to an undercover agent who successfully infiltrated the counterfeit pharmaceutical trafficking organization.
Both men face up to five years for the conspiracy, upon conviction, as well as a $250,000 fine. Trafficking in misbranding drugs and counterfeit drugs carries as possible punishment up to three years in prison and a $10,000 fine, while trafficking in counterfeit goods could result in a possible maximum sentence of 10 years in federal prison and another possible $250,000 fine. Finally, if convicted of smuggling goods into the U.S., Khattab could be sentenced to up to 20 years in prison and face a possible maximum fine of $2.5 million.
This matter was investigated by HSI, FDA-OCI, Department of State - Diplomatic Security Service, Houston Police Department and Chicago Police Department – Intelligence Section of the Organized Crime Bureau. The case is being prosecuted by Assistant United States Attorney Kebharu Smith and Senior Counsel John Zacharia of the Department of Justice’s Criminal Division’s Computer Crime and Intellectual Property Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.