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24 September 2013
Nebraska Executive Sentenced to 21 Months in Prison for Federal Bribery Conspiracy with Former Chicago AldermanRead the Press Release
CHICAGO — The head of a large Nebraska-based prescription medication provider was sentenced today to 21 months in federal prison for conspiring with a former Chicago alderman and another man to commit bribery of a fictitious public official to purportedly obtain business from the Los Angeles County hospital system. The defendant, JAMES BARTA, 71, of Fremont, Neb., and two co-defendants were convicted of conspiracy to commit bribery following a twoweek trial in June in U.S. District Court.
Barta was also fined $125,000 and ordered to begin serving his sentence in early January by U.S. District Judge John J. Tharp, Jr. Co-defendants, AMBROSIO MEDRANO, 59, of Chicago, GUSTAVO BUENROSTRO, 50, of Arlington Heights, are scheduled to be sentenced, respectively, on Nov. 4 and Nov. 25.
“This offense involves bribery to influence governmental action,” Judge Tharp said, adding that Barta was a “paradigm of what a businessman should be, and yet . . . he readily agreed to pay a bribe to get a contract.” The judge noted a recording that was played at trial of Barta saying that he expected to pay a bribe and doing so was “business as usual.”
“It is not business as usual to bribe public officials,” Judge Tharp said, adding that this message “must be repeated to avoid the cynicism that overtook Mr. Barta.”
According to the evidence and court records, which included numerous audio and video recordings of conversations with the defendants, Medrano introduced an undercover FBI agent, who was posing as a purchasing agent, to Barta, the president of family-owned Sav-Rx, and Buenrostro, an associate of Barta and a former Sav-Rx employee. Barta, Buenrostro, and Medrano agreed to bribe the undercover agent and the fictitious Los Angeles County hospital official — with Barta handing a $6,500 check to the undercover agent at a restaurant in Omaha on June 22, 2012 — to do business with Sav-Rx, a Fremont, Neb.-based national provider of managed care prescription medication services.
Between December 2011 and March 2012, Medrano, Buenrostro, and a cooperating witness discussed the scheme, resulting in a meeting attended by those three, Barta, and the undercover agent at a Chicago restaurant on March 21. During the meeting, Barta discussed Sav-Rx’s business, including a contract with Cook County. The undercover agent explained a kickback arrangement for him and the fictitious Los Angeles County hospital official, if they were to succeed in expanding Sav-Rx’s services into the Los Angeles County hospital system. Barta replied that the arrangement was okay with him. In subsequent conversations, Medrano allegedly assured the cooperating witness and undercover agent that Barta and Buenrostro wanted to do a deal with the agent and were willing to provide an initial $10,000 payment in good faith.
The same group of individuals met again on May 9 at a Chicago restaurant and continued discussing steering Sav-Rx’s services to Los Angeles County, including using Medrano and Buenrostro to be the minority participants in a contract, with Barta endorsing that idea. Barta directed Buenrostro to do research on Los Angeles County and paid the lunch bill. The undercover agent said that the fictitious hospital official was not going to take any action until there was an agreement and the official saw some money. “We understand that and that’s not the problem,” Barta replied.
On June 22, 2012, Barta, Buenrostro, and Medrano met with the undercover agent at a restaurant in Omaha. The undercover agent explained that half of the good faith money they had been discussing was for his role in brokering the contract and half was for the fictitious Los Angeles County official. The undercover agent assured Barta that the good faith payment would be refunded if Sav-Rx did not obtain a contract from the hospital system. After further discussion about the indirect manner that Barta’s payment would be funneled to the fictitious official, Barta wrote a check on a Sav-Rx operations account, payable to the undercover agent for $6,500, and gave it to the undercover agent.
The sentence was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Christopher J. Stetler.
Men Sentenced for Robbing Seven 7-ElevensRead the Press Release
NORFOLK, Va. – Ronald Randolph McKinney, 22, of Suffolk, Va., was sentenced on September 17, 2013 to 205 months in prison, followed by five years of supervised release, for brandishing, using and carrying a firearm during and in relation to a crime of violence and conspiracy to interfere with commerce by robbery. His co-conspirator, Anthony Deshaune Lewis, 20, of Portsmouth, Va., was sentenced today to 184 months in prison, followed by five years of supervised release, for brandishing, using and carrying a firearm during and in relation to a crime of violence and conspiracy to interfere with commerce by robbery. They were both ordered to pay restitution in the amount of $1,214.31, jointly and severally.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.
McKinney pleaded guilty on April 11, 2013 and Lewis pleaded guilty on April 9, 2013. According to court documents, on May 17-18, 2012, McKinney and Lewis robbed a total of seven 7-Eleven convenience stores in the cities of Norfolk, Chesapeake, Hampton and Newport News. McKinney and Lewis alternated roles during the spree. McKinney was the gunman during four robberies while Lewis drove the getaway car. Lewis was the gunman during three robberies in which McKinney drove the getaway vehicle. McKinney was positively identified by victims in the two Norfolk robberies he committed. Lewis was identified by the victims from one Hampton robbery and one in Newport News. Following his arrest and advice of Miranda, McKinney gave a full and detailed confession.
This case was investigated by the Federal Bureau of Investigation’s Norfolk Field Office and the Norfolk, Chesapeake, Hampton and Newport News Police Departments. Assistant United States Attorney Darryl J. Mitchell prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Maurice Larry Sentenced to More Than 14 Years for Tax Fraud in Second Case in as Many DaysRead the Press Release
Tampa, FL - U.S. District Judge James S. Moody, Jr. today sentenced Maurice J. Larry to 14 ½ years in federal prison for wire fraud and aggravated identity theft charges stemming from his scheme to defraud the IRS with co-defendant, Rashia Wilson. The court also ordered Larry to forfeit $2,240,096.39, the traceable proceeds of the offense.He pleaded guilty on April 11, 2013. Larry will serve this sentence concurrently with his sentence from another unrelated tax fraud case. Judge Kovachevich sentenced Larry to 8 years and 5 months in prison yesterday for his involvement in the other tax fraud case. According to court documents, Larry and his co-conspirator, Rashia Wilson, engaged in a scheme to defraud the Internal Revenue Service by negotiating fraudulently obtained tax refunds. They did so by receiving U.S. Treasury checks and pre-paid debit cards that were loaded with proceeds derived from filing false and fraudulent federal income tax returns in other persons' names, without those persons’ permission or knowledge. Larry and Wilson filed these false and fraudulent federal income tax returns from multiple locations, including Wilson's residence and hotels in the Tampa area. Wilson, Larry, and others then used these fraudulently obtained tax refunds to make hundreds of thousands of dollars worth of retail purchases, to purchase money orders, and to withdraw cash.
During the course of the investigation, agents searched Wilson's residence and Larry's storage unit. They recovered thousands of names and social security numbers found in ledgers and various other records. Additional reloadable debit cards loaded with fraudulent tax refunds were also found in both locations.
The IRS estimates that the actual loss from Wilson and Larry's scheme is at least $3,147,477, and the intended loss is in excess of $11 million.IRS Criminal Investigation Special Agent in Charge James D. Robnett said, "Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation, along with our Tampa Bay alliance partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes."
This case was investigated by the Internal Revenue Service - Criminal Investigation, the United States Secret Service, the United States Postal Inspection Service, the Tampa Police Department, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Mandy Riedel.
Man Sentenced to 17½ Years in Prison in Phony Stem Cell CaseRead the Press Release
LAS VEGAS, Nev. – A man who conspired with a now-deceased Henderson pediatrician to take thousands of dollars from chronically ill patients for fraudulent stem cell implant procedures, was sentenced today to 17½ years in federal prison and ordered to pay approximately $1 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Alfred T. Sapse, 87, of Las Vegas, was sentenced by Senior U.S. District Judge Kent J. Dawson, and was immediately remanded to federal custody. Sapse was convicted by a jury in November 2012 of conspiracy to commit mail fraud and wire fraud, seven counts of mail fraud, and 11 counts of wire fraud. The co-defendant, Ralph M. Conti, M.D, of Henderson died several weeks following the conviction.
“Using purported medical practices and procedures to steal from vulnerable persons who are ill is disgusting and wrong,” said U.S. Attorney Bogden. “We will continue to use federal investigative and prosecutorial resources to ensure that persons who commit such crimes are held accountable and sent to prison.”
“Today’s sentence holds Mr. Sapse accountable for preying on patients who sought treatment for serious medical conditions, and demonstrates FDA’s commitment to protecting public health,” said Antoinette V. Henry, Special Agent in Charge, FDA Office of Criminal Investigations, Metro-Washington Field Office.
According to the superseding indictment and evidence introduced by the government at trial, from about January 2005 to current, Sapse, who purports to be a retired foreign physician but who has never been licensed to practice medicine in Nevada or any other state, convinced chronically ill patients to undergo experimental implant procedures and convinced investors to pay him large amounts of money without knowing the short- or long-term effects of the implant procedures he promoted. The procedures involved the implantation of portions of placental tissue into the abdomen of the patients for the treatment of their diseases. Sapse allegedly targeted extremely sick patients, by claiming that his “proprietary” procedure was especially effective for patients with multiple sclerosis, cerebral palsy and retinitis pigmentosa (a disease of the retina which can cause blindness.)
In the fall of 2005, Sapse hired Conti, a pediatrician in Henderson who had no prior stem cell training, to perform the procedures. At Sapse’sdirection, between approximately February 2006 and November 2006, Conti performed the implant procedure on approximately 34 patients in Las Vegas, knowing that it would not benefit the patients. During 2006, procedures performed by Dr. Conti resulted in the infection of at least two patients. In November 2006, the FDA sent Sapse and Conti a warning letter explaining that their procedure violated federal law, but after that date Conti performed at least one more implant and Sapse coordinated the implantation of a least two more patients.
Sapse and Conti made a number of misrepresentations to prospective patients and investors, including that the placental tissue used in the procedures was obtained only from Caesarian section births, so as to reduce the risk of passing infection, or otherwise to prevent “damage” to the placenta; that he had achieved “considerable success” with a procedure that was going to “revolutionize medicine as it is known today”; that wheelchair bound patients would “definitely walk again”; and that he subjected the placental tissue he obtained to a “proprietary process.”
Sapse failed to obtain any approvals from the FDA, as he knew he was required to do, prior to coordinating the implantation of placental cells in patients by Conti. Sapse and Conti made false representations to FDA regulatory investigators regarding their involvement in the scheme, conducted no meaningful follow-up with the patients who underwent the implant procedures, and concealed from patients and prospective patients the adverse effects suffered by previous patients.
In about February 2007, Sapse relocated his fraudulent scheme to Mexico and entered into an arrangement with a Mexican physician in Nuevo Progresso, Mexico, to perform his implant procedure. At Sapse’sdirection, the Mexican physician performed the implant procedure on approximately 100 patients between approximately February 2007 and May 2010 in Mexico.
Sapse received approximately $1 million from patients and investors, approximately $700,000 of which he spent on personal expenditures and for gambling at local casinos. Conti received in excess of $60,000 from the fraudulent procedures, all of which was in cash and none of which was reported on the accounting books of his medical practice. Sapse or Conti did not use any of the money for laboratory research, animal studies or human clinical studies relating to the short- and long-term effects of the implant procedures they were promoting.
This case was investigated by the FDA Office of Criminal Investigations and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz and First Assistant U.S. Attorney Steven W. Myhre.Lawton Woman Pleads Guilty to Large-Scale ATM TheftRead the Press Release
Oklahoma City, Oklahoma – Maria Estelle Martin, 47, of Lawton, pled guilty today to embezzling cash from a credit institution before United States District Court Judge Robin J. Cauthron, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Martin worked for a security company that serviced Lawton-area ATM machines for local banks and credit unions. Her duties included replenishing ATM machines with cash from financial institutions’ vaults. In late 2011 and early 2012, Martin embezzled cash by taking it from the vaults and keeping it rather than using it to replenish the ATM machines.
Martin faces up to 30 years in prison and a $1,000,000 fine at her January 7, 2014, sentencing hearing. She will also be required to pay $846,670 in restitution to the corporate victims of her theft.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and the Lawton Police Department. The case was prosecuted by Assistant U.S. Attorneys Brandon Hale and Chris M. Stephens.
Law Enforcement and Prosecutors Receive Award for Case Involving Thwarted Capitol Hill Suicide BomberRead the Press Release
ALEXANDRIA, Va. – Federal prosecutors and members of the FBI’s Joint Terrorism Task Force were honored yesterday with the Anti-Defamation League’s SHIELD Award for their role in the investigation and prosecution of Amine El-Khalifi, a Virginia man who attempted to carry out a suicide bomb attack on the U.S. Capitol Building in February 2012.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, accepted the award on behalf of the U.S. Attorney’s Office, and he was joined by Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office.
According to court records and statements made in court, El-Khalifi sought to be associated with an armed extremist group, and in December 2011, he was introduced by a man he knew as “Hussien” to an individual named “Yusuf,” who was, in reality, an undercover law enforcement officer. Throughout December 2011 and January 2012, El-Khalifi proposed to carry out a bombing attack, and on Jan. 15, 2012, El-Khalifi stated that he had decided to conduct a suicide attack at the U.S. Capitol Building.
Over the next month, El-Khalifi traveled to the U.S. Capitol Building several times to conduct surveillance, choosing the spot where he would be dropped off to enter the building, the specific time for the attack and the method he would use to avoid law enforcement detection. El-Khalifi also asked Hussien to remotely detonate the bomb he would be wearing on the day of the attack if El-Khalifi encountered problems with security officers, and to provide El-Khalifi with a gun that he could use during the attack to shoot any officers who might attempt to stop him.
On Feb. 17, 2012, El-Khalifi traveled to a parking garage near the U.S. Capitol Building. El-Khalifi took possession of a MAC-10 automatic weapon and put on a vest containing what he believed to be a functioning bomb. Unbeknownst to El-Khalifi, both the weapon and the bomb had been rendered inoperable by law enforcement. El-Khalifi walked alone from the vehicle toward the U.S. Capitol, where he intended to shoot people and detonate the bomb. El-Khalifi was arrested and taken into custody before exiting the parking garage.
El-Khalifi pleaded guilty to attempting to use a weapon of mass destruction on June 22, 2012. He was sentenced on September 14, 2012, to 30 years in prison.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Gordon Kromberg and Michael Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia, as well as Trial Attorneys Joseph Kaster and Courtney Sullivan from the Justice Department’s National Security Division, prosecuted the case on behalf of the United States.
According to a press release issued by the Anti-Defamation League, the SHIELD Awards were created to honor law enforcement efforts in “major cases involving hate crimes, violent extremism and terrorism and bringing those responsible to justice. . . . The Award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.”
A copy of this press release, along with prior releases relating to this case, may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Justice Department Sues to Stop Georgia Tax Return PreparerRead the Press Release
The United States filed a complaint yesterday asking a federal court in Atlanta to enjoin Joan Leger and her company, The 1804 Tax Group Inc., doing business as Liberty Tax Service, from preparing federal income tax returns for others, the Justice Department announced today.
The complaint alleges that since 2009 Leger, who resides in Stone Mountain, Ga., and the tax preparation businesses she owns have prepared almost 6,000 tax returns. According to the complaint, Leger understates her customers’ tax liabilities and overstates their refunds by creating or inflating deductions, wages, income, expenses or credits in order to maximize the earned income tax credit, in addition to wrongly claiming other credits and deductions. Leger’s practices include fabricating losses for non-existent businesses or businesses not owned and operated by the taxpayer, falsely claiming unreimbursed business expenses and falsely claiming the educational tax credit. In total, the government’s complaint alleges that the loss to the U.S. Treasury from Leger’s activities may exceed $2 million.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2013 which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm .
Related Materials:
United States v. Joan Leger, etc.
Complaint for Permanent InjunctionJustice Department Reaches Settlement over Border Patrol Traffic Stops on Olympic PeninsulaRead the Press Release
U.S. Attorney Jenny A. Durkan announced today that the Department of Justice (DOJ) has reached a formal settlement with three men represented by the American Civil Liberties Union (ACLU) and the Northwest Immigrant Rights Project (NWIRP) over litigation regarding traffic stops on the Olympic Peninsula in Western Washington. Under the terms of the settlement, the Border Patrol will affirm its continued commitment to constitutional policing through a letter sent to the ACLU of Washington and the NWIRP. Additionally, within the next year, Border Patrol agents stationed at the Port Angeles Station will receive refresher training on traffic stops that require “reasonable suspicion” under the 4th Amendment to the U.S. Constitution. Finally, for the next 18 months, the Border Patrol will provide certain forms they use to document traffic stops to the ACLU and the NWIRP, providing the groups with information regarding the frequency and the Border Patrol’s rationale for conducting such stops. The forms provided to the groups will not include any information identifying the drivers or occupants of the vehicles involved in the stops.
“This settlement is confirmation that we can both ensure the safety of our borders and protect all members of our communities in a constitutional manner,” said U.S. Attorney Durkan. “I appreciate the dedication and hard work of the Border Patrol, who are both the first line of defense against danger and the first to welcome millions of our visitors. I commend all the attorneys who worked to reach a settlement that moves us forward.”
In April 2012, three plaintiffs, Jose Sanchez, Ismael Ramos Contreras, and Ernest Grimes, filed suit against the Border Patrol, United States Customs and Border Protection (“CBP”), and the Department of Homeland Security (“DHS”) alleging that Border Patrol agents were making traffic stops on the Olympic Peninsula without reasonable suspicion. The federal government denies that the Border Patrol has a practice of unlawfully stopping vehicles on the Olympic Peninsula and denies wrongdoing with respect to any of the stops involved in the litigation.
Today’s settlement requires both sides to pay their own attorney’s fees and does not involve any monetary payment to the plaintiffs. It brings the lengthy litigation to a conclusion and prevents the further expenditure of federal resources. The settlement agreement is posted on the U.S. Attorney’s website here.
The litigation was handled for the U.S. Attorney’s Office by Assistant United States Attorney Rebecca Cohen, and for the U.S. DOJ by Timothy Belsan from the Office of Immigration Litigation.
Jury Convicts Fayette County Man on Child Sexual Exploitation ChargesRead the Press Release
A man who sexually exploited four children and possessed child pornography was convicted by a jury on Tuesday, September 17, 2013, after a two-day trial in federal court in Cedar Rapids.
Benton Stong, age 76, from Oran, Iowa, was convicted of one count of sexual exploitation of children and four counts of possession of child pornography. The verdict was returned following about one hour of jury deliberations.
The evidence at trial showed that, in 2012, Stong used, persuaded, induced, and enticed four children to engage in sexually explicit conduct for the purpose of producing visual depictions of this conduct. The evidence also showed that, between 2009 and 2012, Stong possessed child pornography at his residence in Oran.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Stong remains in custody of the United States Marshal pending sentencing. Stong faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 110 years’ imprisonment, $1,250,000 in fines, $500 in special assessments, and at least five years and up to life on supervised release following any imprisonment. He also will be required to register as a sex offender.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Fayette County Sheriff’s Office and the Iowa Internet Crimes Against Children Task Force.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-2014.
Jones and Van Horn Sentenced on FEMA Fraud ChargesRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and James E. Ward, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General announced that:
Tamya H. Jones, 36, of Houston, Texas, formerly of Sledge, Mississippi, was sentenced by Senior United States District Judge Glen H. Davidson in Aberdeen, Mississippi, and Laura Van Horn, 34, of Lansing, Michigan, formerly of Tunica, Mississippi, was sentenced by United States District Judge Sharion Aycock, following each defendant’s plea of guilty earlier this year to one count of fraud in relation to a claim for disaster benefits. The charge to which Jones pled guilty involved making a materially false statement to the Federal Emergency Management Agency (FEMA) in an application for benefits following a series of tornadoes that struck Mississippi in late April 2011. The charge to which Van Horn pled guilty involved making a similar false statement to FEMA in an application for benefits following the Mississippi River flood of May 2011.
Judge Davidson ordered Jones to serve 12 months and 1 day in prison, followed by 5 years supervised release. She was also ordered to pay restitution in the amount of $21,052.25. Ms. Jones has been ordered to report to prison on November 4.
Judge Aycock ordered Van Horn to serve 37 months in prison, followed by 5 years supervised release. She was also ordered to pay restitution in the amount of $4,199.38. Van Horn is already in custody serving her sentence.
James E. Ward, Special Agent in Charge for the U. S. Department of Homeland Security, Office of the Inspector General stated:
“The Department of Homeland Security, Office of Inspector General is dedicated to investigating fraud related to DHS programs, specifically FEMA Emergency Disaster Relief Funds. The charges against this defendant serve as an example of our commitment to investigating FEMA fraud allegations and pursuing federal prosecution to the fullest extent of the law. DHS-OIG places a high priority on the investigation of these types of crimes, which negatively impact our federal system and programs that are intended for law abiding citizens.”
Both cases were investigated by the United States Department of Homeland Security, Office of Inspector General, and were prosecuted by Assistant United States Attorney Robert Mims.
Anyone who has knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, may contact the National Center for Disaster Fraud toll free at (866) 720-5721. Information can also be sent by fax to (225) 334-4707, by e-mail to [email protected] or by writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909. Calls can be made anonymously and confidentially.
Indiana Man Sentenced for Mailing White PowderRead the Press Release
United States Attorney Deborah R. Gilg announced that David Naylor, 61, formerly of Perrysville, Indiana, was sentenced today in Lincoln, Nebraska, to 1 day in custody, 100 hours of community service and restitution in the amount of $1,847.89 by United States District Judge John M. Gerrard, for mailing a threatening communication to Mutual of Omaha. In addition, Naylor will serve a three year term of supervised release and pay a $100 special assessment. Naylor was previously incarcerated for 54 days in this case.
On May 14, 2012, the Mutual of Omaha mail processing facility in Blair, Nebraska received an envelope which had been mailed by Naylor for delivery by the United States Postal Service. When the envelope was opened, it was found to contain a white powder. The outside of the envelope stated “open carefully contains cornstarch.”
A standard protocol pertaining to ‘white powder incidents’ was put into effect: the air handling system was shut down, no one was permitted to enter or leave the facility, and employees in the immediate vicinity remained in place. Four employees remained in place, near the envelope, for approximately an hour until the white powder was found to be not hazardous. Reactions amongst these four people ranged from anger to fear.
The Omaha Fire Department hazardous materials unit responded and determined the powder was not harmful. Later testing at a lab confirmed that the substance was cornstarch.
This case was investigated by the Federal Bureau of Investigation.
Hogsett Announces Federal Jury Trial Conviction of Rushville-area ManRead the Press Release
RUSHVILLE – Joseph H. Hogsett, the United States Attorney, announced today the conviction of a Rushville-area resident on charges related to the illegal purchase of firearms. James I. Bowling, age 41, of Manilla, was found guilty by a jury of his peers after a two day trial in Indianapolis. The jury found that Bowling provided false information in purchasing a firearm, and illegally received a gun while under indictment
“Through our Violent Crime Initiative, we’re cracking down on those who acquire and use firearms in disregard of both the law and common sense,” Hogsett said. “This isn’t about making new laws – this is about enforcing those laws already on the books. By targeting habitual offenders who continue to illegally arm themselves, we’re making communities like Rushville safer, and we’re protecting the interests of all law-abiding gun owners in Rush County.”
An indictment filed last November charged that on July 19, 2012, Bowling was found to have falsely applied to purchase a .357 caliber revolver at a Rushville sporting goods store. In making that purchase, Bowling filed sworn statements with the Bureau of Alcohol, Tobacco, Firearms and Explosives, indicating that he was not under felony indictment or information. In fact, the defendant was aware of felony charges pending against him in Rush County Superior Court. Bowling was also convicted of illegally possessing the weapon in question.
These indictments come as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and are the result of collaborative investigative efforts by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indiana State Police.
Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew J. Rinka, who prosecuted the case for the government, Bowling is expected to be sentenced at a hearing in Indianapolis in the next 60 days. The defendant faces up to 10 years in federal prison, as well as a possible fine of up to $250,000.
Hogsett Announces Conviction, Sentencing of Former Law Enforcement OfficialRead the Press Release
TERRE HAUTE – U.S. Attorney Joseph H. Hogsett announced this afternoon the sentencing of James E. Haley, Jr., age 31, of Terre Haute, to 68 months in federal prison by U.S. District Court Judge William T. Lawrence. Haley, a former Vigo County Sheriff’s Deputy, was charged in March of this year with one count of possessing child pornography. Hogsett said this prosecution comes as part of Operation Community Watch, an effort which aims to reduce abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“Operation Community Watch is not simply about protecting Hoosier children, but also about sending a message that no one is above the law,” Hogsett said. “You are not anonymous online, and this is not a victimless crime – if you engage in this behavior, our office will find you and hold you fully accountable for your deplorable behavior.”
A criminal complaint filed in March indicates that the investigation into Haley began in early January 2013. At that time, an investigator with the Indiana State Police connected to a computer through an online peer-to-peer sharing network. The investigator was able to download more than one-hundred images from that individual, which allegedly depicted child pornography.
Investigators were able to trace the online activity of that individual, and were able to identify the residence in which the child pornography trafficking was taking place. This residence was an apartment in Terre Haute belonging to Haley. On March 15, 2013, a search warrant was executed at the residence, and law enforcement agents found a laptop and a number of digital media storage devices. An initial forensic examination of these devices revealed more than 40,000 files, some of which depict the abuse of children as young as 5 years.
According to Senior Litigation Counsel Steven D. DeBrota, who prosecuted the case for the government, Haley was also ordered to serve lifetime supervised release upon conclusion of his prison term, and faces lifetime registration as a sexual offender.
Hogsett noted the prosecution represented one of the first convictions under “Operation Community Watch,” an initiative launched earlier this year that allows 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.
Specifically, Hogsett said today’s case was aided by techniques developed with Purdue University in which investigators have access to more effective on-site forensic examination software, allowing law enforcement to quickly scan thousands of images and videos when a warrant is served. These efforts were facilitated by the Indiana State Police, the Indiana Crimes Against Children Task Force, and Homeland Security Investigations.
This case was also 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.
Hays Woman Pleads GuiltyTo Social Security, Medicaid FraudRead the Press Release
TOPEKA, KAN. - A woman from Hays, Kan., has pleaded guilty to stealing more than $104,000 in government funds from Social Security and Medicaid, U.S. Attorney Barry Grissom said today.
Earlyne C. Weigel, 57, Hays, Kan., pleaded guilty to one count of theft of government money.
In her plea, she admitted that in March 2003 she began receiving benefits from Social Security. Her benefits were adjusted to take into account her household income, including income from her husband. In 2005, she went to the Social Security field office in Hays, Kan., and falsely reported that she no longer lived with her husband. As a result, from 2004 to 2010 she received more than $43,473 in Supplemental Security Income benefits to which she was not entitled. In November 2008, investigators interviewed her husband, who told them that he and his wife had never lived apart while married.
Weigel also applied for and received Medicaid coverage beginning in 2004. Her Medicaid coverage was contingent on her eligibility for Supplemental Security Income benefits. From 2004 to 2010 she fraudulently received more than $60,919 in Medicaid benefits.
Sentencing is set for Dec. 9. She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Social Security Administration, Office of Inspector General, Health and Human Services, Office of the Inspector General, the Medicaid and Fraud Abuse Division of the Kansas Attorney General’s Office and Special Assistant U.S. Attorney Trey Alford for their work on the case.Gates Man Sentenced for Transporting a Child for Sexual ActsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Michael J. Rolfe, 48, of Gates, N.Y., who was convicted of the transportation of a minor, was sentenced to 17 years in prison and 20 years of supervised release by U.S. District Judge Frank P. Geraci, Jr..
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that in August 2012, while employed as a long distance truck driver, the defendant took a child who was less than 12 years old, on a trip from Rochester, N.Y. to locations in Texas. Rolfe engaged in sexual acts, on more than one occasion, with the child while traveling outside of New York. The defendant was previously convicted on federal charges of possessing child pornography while serving in the U.S. Navy in 2002.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent In Charge James C. Spero, along with Investigators from the New York State Police, under the direction of Superintendent Joseph D’Amico.Four Sentenced for Drug TraffickingRead the Press Release
LAREDO, Texas – Four people have been ordered to prison for their role in a drug conspiracy to ship more than 1000 pounds of marijuana from Laredo to Dallas, announced United States Attorney Kenneth Magidson. Nancy Gutierrez, 28, and Jimmy Eusebio Trujillo, 50, both of Nuevo Laredo, Mexico, Pedro Menchaca, 39, of Rio Bravo, and Ricardo Cruz, 22, of Laredo, all entered guilty pleas at varying times in early 2013.
Today, U.S. District Court Judge Marina Garcia Marmolejo sentenced Gutierrez and Trujillo each to 60 months in federal prison, while Menchaca and Cruz will both serve 46-month-terms of imprisonment.
According to the evidence presented during the sentencing hearing today, these four defendants conspired between Aug. 13 – 20, 2009, to transport approximately 1,000 pounds of marijuana from Laredo to Dallas. Gutierrez recruited a Drug Enforcement Administration (DEA) confidential source to secure transportation for the marijuana. Subsequently, undercover agents, posing as would be transporters, then coordinated with Gutierrez and Trujillo on the delivery of the marijuana at a Laredo warehouse for loading onto an 18-wheeler and ultimate transportation to Dallas. They agreed the marijuana would be delivered to the warehouse in two separate loads.
Agents set up surveillance at the warehouse and witnessed Menchaca and Cruz in a beige minivan arrive at the warehouse and park next to a tractor trailer. They delivered 202.03 kilograms of marijuana which was then loaded onto the trailer. Menchaca and Cruz then departed the warehouse and were expected to return with another load of marijuana.
Trujillo was seen conducting counter surveillance around the area in a Dodge Durango.
The minivan and Durango traveled to a residence on the south side of Laredo where they picked up a second load of marijuana. A Webb County Sheriff’s Office (WCSO) deputy performed a traffic stop of Menchaca’s vehicle, at which time several duffle bags were discovered containing approximately 234 kilograms of marijuana.
Trujillo witnessed the seizure and proceeded back to the warehouse where he advised the undercover agents of the seizure and instructed them to proceed with taking the first load to Dallas. Ultimately, the tractor trailer and the marijuana load were seized, resulting in a total of 436.08 kilograms of marijuana seized in relation to these defendants.
The indictment against these four was one of seven relating to a long term Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed “Operation Ultimate D.” The OCDTEF investigation charged several drug trafficking cells operating out of the Laredo area engaged in a conspiracy to distribute bulk quantities of marijuana, heroin, methamphetamines and cocaine from the Laredo area to distribution venues such as Dallas and Houston.
OCDETF Operation Ultimate D was spearheaded by the DEA with the assistance of Internal Revenue Service - Criminal Investigation, Webb County District Attorney’s Office, WCSO and the U.S. Marshals Service. Assistant United States Attorney Mary Lou Castillo is prosecuting the case.
Former Tuscaloosa Police Sergeant Sentenced to Ten Years for Sexually Assaulting Woman in CustodyRead the Press Release
Jason Glenn Thomas, 35, a former City of Tuscaloosa Police sergeant in Tuscaloosa, Ala., was sentenced today to serve ten years in federal prison followed by three years of supervised release for sexually assaulting a Tuscaloosa woman in violation of federal civil rights laws. A special assessment of $100.00 was also imposed.
Thomas pleaded guilty on April 18, 2013 to willfully violating the civil rights of a woman in his custody. According to court documents filed in connection with his guilty plea, Thomas admitted that shortly after midnight on May 28, 2011, he stopped and detained a female pedestrian without placing her under arrest. Thomas then transported the woman in a department issued patrol vehicle to a remote area and sexually assaulted her.
“Officers who sexually assault individuals in their custody defy the public trust bestowed upon law enforcement officials, and their actions will not be tolerated,” said Jocelyn Samuels Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to investigate and prosecute law enforcement officials that violate their oath to protect their communities.”
“Although most police officers serve and protect the public with integrity, we remain deeply committed to prosecuting those few who, as defendant Thomas did, dishonor their badge by using it to take advantage of those they are sworn to protect” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama.
This case was investigated by the Tuscaloosa resident agency of the FBI’s Birmingham Field Office, and was prosecuted by Trial Attorney D.W. Tunnage of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney George Martin for the Northern District of Alabama.
Former President of Wyoming Area Education AssociationRead the Press Release
Charged With EmbezzlementThe United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of an Information in U.S. District Court in Scranton today charging Lisa Barrett, age 48, of Shavertown, Luzerne County, with embezzlement of funds of a labor organization.
According to United States Attorney Peter J. Smith, Barrett, the former president of the Wyoming Area Education Association (WAEA), has been charged with converting in excess of $30,000 of the labor organization’s funds to her own use from 2006 to 2012. Barrett resigned as WAEA President in March 2013.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
The U.S. Attorney’s Office also filed a plea agreement which must be approved by the District Court.
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 imprisonment for five years, 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.
****Former Postal Employee Sentenced for Workers’ Compensation FraudRead the Press Release
THOMAS DOMBROSKI, age 54, of North Syracuse, New York, was sentenced in U.S. District Court in Syracuse on September 20, 2013 to 5 years probation and ordered to perform 100 hours of community service for defrauding the U.S. Postal Service and U.S. Department of Labor of $18,353.54 by making false statements and representations to obtain federal workers compensation benefits according to U.S. Attorney Richard S. Hartunian.
DOMBROSKI falsely represented that he was not employed, self-employed, or involved in any business enterprise during periods of time in 2010 and 2011 when he was collecting federal workers compensation benefits. He was receiving benefits based upon a claimed injury to his right shoulder that he said made him unable to use his right arm. In fact, DOMBROSKI, worked for his own company, Picture Perfect Contractors, installing and repairing roofs and providing general home repair services during the times he collected benefits. Agents videotaped DOMBROSKI installing roofs, carrying building materials, repairing gutters, loading and carrying logs and firewood, carrying cement cinder blocks, and lifting a 55-pound air compressor.
This case was investigated by the U.S. Postal Service Office of Inspector General and the U.S. Department of Labor, Office of Inspector General.
Further information regarding this case can be obtained by contacting Assistant United States Attorney Tamara Thomson at (315) 448-0672.
Former Merrill Lynch Stock Broker Pleads Guilty in Connection to Qualcomm Insider Trading SchemeRead the Press Release
Former Merrill Lynch Stock Broker Gary Yin pled guilty today and admitted obstructing justice and laundering money for former Qualcomm Executive Vice President and President of Global Business Operations, Jing Wang (charged elsewhere).
According to his plea agreement, Yin agreed to assist Jing Wang in concealing Wang’s illegal insider trading using a secret, nominee brokerage account at Merrill Lynch. Yin also agreed to Wang’s request that he obstruct an ongoing SEC investigation into Wang’s activities, and to launder the proceeds of Wang’s insider trading. Among other things, Yin agreed to conceal evidence that Wang had engaged in insider trading by setting up a shell company in the British Virgin Islands, opening a brokerage account in the name of the shell company (but actually controlled by Wang), and laundering the illegal insider trading profits by moving them into the British Virgin Islands account.
At Wang’s direction, Yin also obstructed justice by removing account documents (subject to an SEC subpoena) from the United States and taking them to China. In China, Yin delivered the documents to Jing Wang’s brother, Bing Wang. Once delivered, Yin rehearsed a false cover story with Bing, concocted by his brother. In order to make the cover story credible, Yin also reviewed the trading history in the offshore account with Bing Wang to enable him to lie successfully to the authorities in the United States.
Finally, in order to hide the proceeds of Wang’s illegal trades, and to distance Wang from the trades, Yin transferred money from one shell company’s brokerage account to another. All told, Yin transferred approximately $525,000 from accounts related to shell companies in the British Virgin Islands.
Yin entered his guilty plea before U.S. Magistrate Judge Nita Stormes, and is next expected in court on December 16 at 9 a.m. for his sentencing before U.S. District Court Judge William Q. Hayes.
DEFENDANT CRIMINAL CASE NO. 13cr3488-WQH Gary Yin SUMMARY OF CHARGESTitle 18 U.S.C. Section 371 – Conspiracy to commit offenses against the United States.
DEFENDANT Criminal Case No. 13CR3487-H Jing Wang
Maximum Penalty: 5 years custody, a maximum $250,000 fine, three years supervised release and
$100 special assessment.
Bing Wang SUMMARY OF CHARGESTitle 15 U.S.C. Sections 78j(b), 78ff and 17 C.F.R. § 240.10b-5—Securities Fraud (Insider Trading). Maximum Penalty: 20 years custody, a maximum fine of $5 million, five years supervised release, and $100 special assessment.
Title 18 U.S.C. Section 371 – Conspiracy (Obstruction of Justice and Money Laundering). Maximum Penalty: 5 years custody, a maximum $250,000 fine, three years supervised release and $100 special assessment.
Title 18 U.S.C. Section 1512(c)(1) and (c)(2) -- Obstruction of Official Proceedings. Maximum Penalty: 20 years custody, a maximum fine of $250,000 years supervised release, and $100 special assessment.
Title 18 U.S.C. 1956 – Money Laundering. Maximum Penalty: 20 years custody, a maximum fine of $250,000 years supervised release, and $100 special assessment.
Title 18 U.S.C. 1028A – Aggravated Identity Theft. Maximum Penalty: Mandatory two years custody consecutive to any other sentence.
DEFENDANT Criminal Case No. 13CR3487-H Bing Wang SUMMARY OF CHARGESTitle 18 U.S.C. Section 371 – Conspiracy (Obstruction of Justice and Money Laundering).
INVESTIGATING AGENCIES
Maximum Penalty: 5 years custody, a maximum $250,000 fine, three years supervised release and $100 special assessment.Federal Bureau of Investigation
Internal Revenue Service-Criminal InvestigationFormer Executive Director Pleads Guilty to Theft from JCCEORead the Press Release
BIRMINGHAM – The former executive director of the Jefferson County Committee for Economic Opportunity (JCCEO) entered a guilty plea today to the theft of close to $500,000 from the non-profit organization, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
RUTH GAYLE CUNNINGHAM, 63, entered the guilty plea before United States District Judge L. Scott Coogler. Sentencing was set for January 22, 2014. She faces a maximum penalty of 10 years in prison and a $250,000 fine.
Cunningham’s daughter, KELLI E. CAULFIELD, 31, was charged with conspiracy in the scheme to defraud JCCEO and is set to enter a guilty plea on September 30, 2013.
In a related case, mortgage broker BRAD A. BOZEMAN, 34, of Hoover, also entered a guilty plea today to a charge of conspiracy to defraud a federally insured financial institution by either making or transmitting false statements and reports intended to influence a financial institution in connection with the sale of residential properties. Bozeman made false statements on loan applications by including false income or not revealing all debts and liabilities of the purchasers, and transmitting that information as true and accurate. He faces a maximum penalty of five years in prison and a $250,000 fine.
Cunningham was executive director of JCCEO for more than 20 years before resigning the job in March. The organization employed Caulfield from May 2009 to January 2013. JCCEO is a community action agency that administers programs, including Head Start, for low-income and disadvantaged residents.Cunningham acknowledged in her plea agreement that, between March 2009 and April 2010, she used JCCEO funds to make monthly mortgage payments on at least three residential properties she owned, and at least five residential properties her daughter owned, in Jefferson and Shelby counties. Cunningham also used JCCEO funds to pay property taxes on one of those properties, a house in Chelsea that she bought in 2007 with a mortgage loan of more than $1 million.
Cunningham also paid $293,413 in JCCEO funds to companies owned by her daughter, and to other contractors, for claimed repairs or renovations to the women's properties, according to their plea agreements.
The FBI discovered the fraud at JCCEO while it was investigating allegations of a mortgage fraud scheme. That investigation led to federal prosecutors' charges against Cunningham and Caulfield, as well as to charges of conspiracy to defraud federally insured financial institutions against a real estate investor now living in Atlanta, and mortgage broker Bozeman. Cunningham and Caulfield bought most of the properties that later became part of their scheme to defraud JCCEO from the Atlanta investor.
The FBI investigated the cases, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.Former DPNR Enforcement Director Pleads Guilty to Using DPNR as Criminal Enterprise for Drug TraffickingRead the Press Release
St. Thomas, USVI – Roberto Tapia, former Director of the Environmental Enforcement Division of the Virgin Islands Department of Planning and Natural Resources (DPNR), pleaded guilty today in federal district court to using DPNR as a criminal enterprise to engage in illegal drug trafficking activities, announced United States Attorney Ronald W. Sharpe; Federal Bureau of Investigation (FBI) Special Agent in Charge Carlos Cases; U.S. Drug Enforcement Administration (DEA) Special Agent in Charge Vito Guarino; Virgin Islands Police Commissioner Rodney Querrard; United States Marshal for the District of the Virgin Islands Cheryl Jacobs; Internal Revenue Service Criminal Investigation Division (IRS-CI) Acting Special Agent in Charge Michael J. DePalma; U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Special Agent in Charge Angel Melendez; U.S. Customs and Border Protection (CBP) Special Agent in Charge Marcelino Borges; United States Coast Guard Captain Drew Pearson; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Hugo Barrera, and Virgin Islands Inspector General Steven van Beverhoudt.
Tapia, 55, was arrested on May 17, 2013, and charged with conspiracy to possess with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking. On September 12, 2013, he was charged in a 34-count second superseding indictment, along with six other defendants, including Virgin Islands police officer Angelo Hill, Raymond Brown, Hector Alcenio, Edwin Monsanto, Stephen Torres, and Eddie Lopez-Lopez.
The indictment and plea followed an extensive investigation conducted by the Federal Public Corruption Task Force, which culminated with the arrest of Tapia while in possession of seven kilograms of cocaine.
“Public corruption victimizes every law-abiding resident of the Virgin Islands,” U.S. Attorney Sharpe said. “This individual chose to abuse his position of trust as a law enforcement officer for selfish gain at the expense of the safety and welfare of the community. The USAO is committed to fighting public corruption, and will continue to target individuals who undermine the public trust.”
In entering his plea of guilty to racketeering before District Court Judge Curtis V. Gomez, Tapia admitted extensive cocaine trafficking activities over a substantial period of time, and utilizing his position with and assets of DPNR to facilitate those activities.
Tapia faces a maximum penalty of life in prison and up to $250,000 in fines, in addition to forfeiture penalties and restitution. Sentencing has been scheduled for January 9, 2014 before Judge Gomez.
United States Attorney Sharpe commended the work of the Public Corruption Task Force and Assistant U.S. Attorneys Kim R. Lindquist and Kelly B. Lake, who are prosecuting this case.
Former Bronx Not-For-Profit Program Director Found Guilty in Manhattan Federal Court of BriberyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SATNARINE SEEBACHAN, formerly a program director at Bronx Shepherds Restoration Corporation (“Bronx Shepherds”), a not-for-profit corporation in the Bronx, New York, was found guilty yesterday of soliciting and accepting a bribe in the form of labor and materials for the renovation of his residence from a contractor who received federally funded contracts from Bronx Shepherds. SEEBACHAN was convicted after a five-day jury trial before U.S. District Judge George B. Daniels.
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
SEEBACHAN was employed as a program director by Bronx Shepherds, a not-for-profit corporation that provides housing restoration for low-income individuals in the Bronx, New York. As program director, SEEBACHAN was responsible for administering two federally funded home improvement programs, namely, the Weatherization Assistance Program (“Weatherization Program”) and the Home Program (“Home Program”) (collectively, the “Programs”).
The Weatherization Program is a federal program funded by the U.S. Department of Energy and the U.S. Department of Health and Human Services. The Weatherization Program provides weatherization assistance, such as improved lighting and heating systems, window caulking, and wall and ceiling insulation, to buildings with low-income residents in order to make the buildings more energy efficient. The Home Program is a federal program funded by the U.S. Department of Housing and Urban Development. The Home Program provides renovation assistance to low-income individuals who reside in small family homes, such as repairs to ceilings, bathrooms, kitchens, windows, and sidewalks. As a program director for Bronx Shepherds, SEEBACHAN was in charge of the bidding process to select the construction companies hired to perform the necessary work on the buildings, apartments, and houses that Bronx Shepherds had selected to participate in the Programs.
Towards the end of 2005, SEEBACHAN purchased a residence in Glen Cove, New York. In 2006, 2007, and again in 2010, at the direction of SEEBACHAN, a construction company that bid for and received contracts from Bronx Shepherds to perform renovation work under the Programs (the “Contractor”) supplied materials and labor for construction and renovation work performed at SEEBACHAN’s residence. Specifically, the Contractor paid for marble that was installed in SEEBACHAN’s residence and did extensive concrete beautification renovations to the driveway, front walkway, and back patio and pool area.
At the time the Contractor paid for the marble and performed the concrete work at SEEBACHAN’s residence, SEEBACHAN promised the Contractor that he would ensure the Contractor received lucrative contracts to perform repairs on apartment buildings Bronx Shepherds owned and managed. The total dollar value of the labor and materials that SEEBACHAN obtained from the Contractor was more than $100,000. SEEBACHAN was found guilty of one count of bribery concerning an organization that receives federal program funds.
SEEBACHAN, 51, of Glen Cove, New York, faces a maximum sentence of 10 years in prison. A sentencing hearing has been scheduled for January 30, 2014, at 10:00 a.m. before Judge Daniels.
Mr. Bharara praised the investigative work of the New York State Inspector General’s
Office.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Carrie H. Cohen and Rebecca M. Ricigliano are in charge of the prosecution.
U.S. v. Satnarine Seebachan Indictment
First Leadership Summit on Good Governance for DetroitRead the Press Release
"Building An Honest & Open Government in Detroit: Why Public Integrity Matters,” is the theme of a leadership summit October 21, 9-3pm at Wayne State University Law School Auditorium to be attended by leaders in business, government, nonprofit, foundation and the wider civic community.
U.S. Attorney General Eric Holder is set to open the summit through a video-conference followed by a special “Gatekeepers Roundtable,” featuring media stakeholders such as Detroit Free Press Publisher Paul Anger, discussing the role of the media in ensuring public integrity and good governance.
Quicken Loans Founder & CEO Dan Gilbert will appear for a special conversation about Detroit and its prospects for the future including the role of the private sector in ensuring the public trust as well as Federal Bar Association President Michael K. Lee, Detroit Regional Chamber CEO Sandy Baruah and Detroit Council of Baptist Pastors General Counsel Rev. Bertram Marks, Wayne State Law School Dean Jocelyn Benson, former federal prosecutor Peter Henning among other headline speakers. Detroit Inspector General James Heith is expected to address the summit.
Summit convener United States Attorney for the Eastern District of Michigan Barbara L. McQuade underscored the significance of the summit saying "Public corruption is so harmful because it erodes trust in government, which makes government less effective. This forum will provide an opportunity to share ideas about ensuring the honest government that all of our citizens deserve."
Summit moderator, Bankole Thompson, editor of the Michigan Chronicle applauded the effort at a time when Detroit is seeking new leadership as it wriggles in unchartered waters.
“This summit is timely because Detroit needs to make public integrity and accountability the central focus of its governance aspirations,” Thompson said. “What this city has gone through in the last decade should not repeat itself because leaders owe it to the next generation to leave a legacy of integrity and enduring positive achievements. And that begins by building an honest government.”
Dean Benson stated, “An honest and open government is the most basic part of maintaining the public trust and reinforcing the democratic process. Wayne Law is thrilled to be hosting this event focused on how the public, private and non-profit sectors can work together to ensure municipal government in Detroit is transparent and accountable. My mentor, Judge Damon J. Keith, once said, ‘Democracies die behind closed doors.’ They are strengthened by a well-informed electorate.”
FBA President Michael K. Lee stated, "The power of elected officials is derived solely from the willingness of the people to agree to that governance. That willingness is contingent on the credibility of those in public office as seen through the eyes of that populace. A primary tool that a populace uses to measure that credibility is transparency, by which a populace can measure honesty and integrity."
To register for the summit, contact Wayne State University Law School Community Relations Department at 313-577-2733.
Elmira Woman Sentenced for Filing False Tax ReturnsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jennifer Ford, 28, of Elmira, N.Y., who was convicted of conspiracy and filing false federal income tax returns, was by U.S. District Court Judge Charles J. Siragusa to five years probation, six months confinement at a community facility, and ordered to pay the Internal Revenue Service $67,926 in restituion.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that in 2005 and 2006, the defendant and her sister, Dawn White, filed several false income tax returns with the Internal Revenue Service and the State of New York. Specifically, the tax returns contained false wage and tax withholding information that resulted in refunds to which Ford was not entitled. For example, for the 2005 tax year, Ford submitted a return claiming she had earned income from General Revenue Corporation in the amount of $92,000 and had $39,000 in federal taxes withheld. In actuality, the defendant earned only $2,692 from General Revenue Corporation and had only $294 in taxes withheld. As a result of the false return, Ford received $21,022 refund. In total, 13 false tax returns were filed, resulting in a loss of approximately $100,000 to the IRS.
Dawn White was convicted at trial in early 2012 and was sentenced in March 2013 to 33 months in prison.
The conviction was the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch.El Paso County Man Ordered Detained for Production of Child PornographyRead the Press Release
DENVER – Kenneth Wayne Hugo, age 37, of El Paso County, Colorado, was ordered held without bond yesterday by a U.S. Magistrate Judge Michael E. Hegarty after being charged with the sexual exploitation of children, distribution of child pornography, and possession of child pornography, United States Attorney John Walsh and Federal Bureau of Investigation Denver Division Special Agent in Charge Thomas Ravenelle announced. Hugo was transferred from state to federal custody last week. He was remanded into custody of the U.S. Marshals at the conclusion of the detention hearing.
On January 23, 2013, the FBI and the El Paso County Sheriff's Office executed a search warrant at Hugo’s residence. During the execution of the search warrant agents and deputies found over 8,000 images of child pornography on Hugo’s computer and media. During the course of the investigation agents and officers also found images of child pornography that Hugo himself created, including taking pictures of himself while fondling girls under the age of 12 years old. On that date Hugo was arrested and charged in state court for the molestation. He was held in state custody ever since until after his August 6, 2013 indictment by a federal grand jury. The indictment alleged that Hugo documented the molestation.
Count one of the indictment charges Hugo with the sexual exploitation of children. If convicted of that count he faces not less than 15 years and not more than 30 years in federal prison, as well as a fine of not more than $250,000. Counts two and three of the indictment charge Hugo with distribution of child pornography. If convicted on those counts the defendant faces not less than 5 years and not more than 20 years in federal prison, as well as a fine of not more than $250,000 per count. Count four of the indictment charges Hugo with possession of child pornography. If convicted of that count the defendant faces not more than 10 years in federal prison, as well as a fine of not more than $250,000.
“Those who produce child pornography, victimizing children for others’ enjoyment, belong in federal prison,” said U.S. Attorney John Walsh. “By producing child pornography images, the children the defendant allegedly victimized will be harmed for the rest of their life.”
“Combating the exploitation and victimization of children is one of the FBI’s top priorities,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “With the arrest of Kenneth Hugo, the FBI, working in conjunction with state and local authorities, has removed another child predator from our community and curtailed the abusive actions of an individual actively preying on children.”
This case was investigated by the FBI and the El Paso County Sheriff's Office.
The defendant is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Doctor Sentenced for Running Pill Mill and Contributing to A DeathRead the Press Release
PHILADELPHIA – Dr. Norman Werther, 73, of Ft. Washington, PA, was sentenced today to 25 years in prison for distribution of a controlled substance resulting in death and more than 300 counts stemming from his pill mill operation. A federal jury convicted Werther on June 11, 2013 of 184 counts of illegally distributing oxycodone, 116 counts of money laundering, six counts of conspiracy to distribute controlled substances, and one count of maintaining a drug-involved premises.
Werther was part of a multi-million dollar drug conspiracy involving illegal prescriptions, phony patients, and multiple drug trafficking organizations. At the time, Werther was a Montgomery County physician, running a physical therapy and rehabilitation practice in Willow Grove. He conspired with six separate groups of drug dealers. Werther was involved in the drug conspiracy between February 2009 and August 2011. The operation resulted in the illegal distribution of more than 700,000 pills containing oxycodone. At least one of the drug trafficking organizations working with Werther trafficked pills valued at more than $5 million that Werther illegally prescribed.
“Instead of using his medical license to help people, Dr. Werther chose to generate tremendous profits by putting hundreds of thousands of pills on the street illegally,” said First Assistant US Attorney Louis Lappen. “In one case, as the jury found, Dr. Werther’s criminal enterprise and blatant disregard for the safety of the community caused the death of a patient whom Dr. Werther knew had a history of drug addiction. The court’s sentence today will send a message to a growing community of pharmaceutical drug pushers that the justice system will impose the most severe penalties on those who are criminally responsible for our growing epidemic of pharmaceutical drug abuse.”
“Werther peddled prescription controlled substances in the very same way a street dealer pushes heroin to addicts. His sentence reflects his greed and disregard for the safety of the community he claimed to serve,” said Drug Enforcement Administration Special Agent-in-Charge David G. Dongilli. “DEA will continue to aggressively investigate any doctor who is selling prescriptions without a legitimate medical need, thereby contributing to the epidemic of prescription drug addiction.”
“Norman Werther got what he deserved for making a mockery of the medical profession and putting people’s lives at risk because he needed money,” said Special Agent-in-Charge Nick DiGiulio, US Department of Health and Human Services, Office of Inspector General. “Criminals like Werther should count on an aggressive prosecution and should expect the same fate.”
Werther worked with drug traffickers who recruited large numbers of pseudo-patients. Werther set aside a specific block of time each business day to see the pseudo-patients recruited by Ronald Campbell, Anthony DiPasquale, Angel DuPrey, Kyle Jones, and William Stukes. With the help of Werther’s office staff, those “patients” were transported to Werther’s medical office, at 301 Davisville Road in Willow Grove, PA, for cursory examinations. The “patients” paid an office visit fee, usually $150, by cash, check, or money order, and Werther wrote prescriptions for them to obtain oxycodone-based drugs without there being a legitimate medical purpose for the prescription and outside the usual course of professional practice. The “patients” were then driven to various pharmacies, including Northeast Pharmacy, to have their prescriptions filled. The drugs were then turned over to the drug dealers so their organizations could sell the narcotics to numerous drug dealers who resold the drugs on the street.
In September 2010, Werther knowingly dispensed approximately 150 pills containing 30 milligrams each of oxycodone, and 30 pills containing 15 milligrams each of oxycodone, to Nathaniel Backes for no legitimate medical purpose and Nathaniel Backes’ death resulted from the use of that substance.
This case was investigated by the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department, the North Coventry Police Department, the Upper Moreland Police Department, and the Montgomery Township Police. It is being prosecuted by Assistant United States Attorneys Nancy Beam Winter, Jason Bologna, and Michelle Rotella.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525District Man Sentenced to More Than 14 Years in Prison for Fatally Stabbing Woman in Southeast Washington-Victim Ordered Defendant to Leave Her Apartment Building-Read the Press Release
WASHINGTON - Earl Johnson, 41, of Washington, D.C., was sentenced today to a prison sentence of 14 years and three months for fatally stabbing a woman at an apartment building in Southeast Washington last year, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson pled guilty in April 2013 in the Superior Court of the District of Columbia to a charge of voluntary manslaughter while armed in the August 2012 killing of Antionette Mitchell. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Johnson will be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of Aug. 22, 2012, Johnson was inside an upstairs apartment in the 3200 block of 13th Street SE, where Ms. Mitchell, 29, and her relatives, including the defendant’s ex-girlfriend, resided. Johnson did not live in the apartment or in any other apartments in the multi-unit building.
Once inside the apartment, Johnson began arguing with his ex-girlfriend. Ms. Mitchell eventually got involved and told Johnson to leave, warning that she would call the police if he refused. Johnson finally left the apartment, angrily slamming the door behind him. As he proceeded downstairs to the building’s exit, Ms. Mitchell followed him, carrying a clothes iron.
Johnson walked a few feet away, then turned and started walking back toward the building. At this point, Ms. Mitchell stood inside the building hallway, near the front door. While wielding the iron, she told Johnson that he could not come back inside. Johnson then approached the doorway, walking toward Ms. Mitchell. As he pulled the door open, Ms. Mitchell attempted to prevent him from entering and swung the iron and struck him in the head.
Shortly thereafter, Johnson began stabbing Ms. Mitchell multiple times with the knife, continuing even after she was wounded and helpless. Ms. Mitchell died from the wounds. Johnson was arrested later in the day.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Tamara Ince, as well as Assistant U.S. Attorney Michael C. Liebman, who investigated and prosecuted the matter.
13-333District Man Pleads Guilty to Sexually Assaulting Adult RelativeRead the Press Release
WASHINGTON - A 20-year-old man pled guilty today to sexually assaulting an adult relative while she slept at a home in Southwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, of Washington, D.C., is not named here to protect the privacy of the victim. He pled guilty in the Superior Court of the District of Columbia to attempted second-degree sexual abuse, a felony. He is scheduled to be sentenced by the Honorable Russell F. Canan on Nov. 22, 2013.
According to the government’s factual proffer at today’s plea hearing, at about 5 a.m. on Aug. 6, 2013, the defendant slipped into the victim’s bed while she slept. He then attempted to engage in a sexual act with her. The pain caused by the act caused the victim to wake up. She immediately reported the matter to other family members. The defendant’s mother ordered him to apologize for what he’d done, and the man did so.
In announcing today’s plea, U.S. Attorney Machen acknowledged the excellent work of officers from the Metropolitan Police Department’s Sexual Assault Unit. He also thanked those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel and Victim/Witness Advocate Elsa Resendiz. Finally, he commended the efforts of Assistant U.S. Attorney Peter V. Taylor, who is prosecuting this case.
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Defendant Sentenced to 12 Years for His Second Federal Child Pornography ConvictionRead the Press Release
EUGENE, Ore. – On September 24, 2013, Christopher Lyn Sparks, 48 years old, was sentenced by U.S. District Chief Judge Ann Aiken to 12 years in federal prison for possessing child pornography and violating the terms of his supervised release. After serving his sentence, Sparks will be on lifetime supervised release.
Defendant was first sentenced to 51 months in prison in Eugene federal court in 2007 for possession of child pornography. In early 2013, after being released from custody and while on federal supervised release, FBI agents executed a search warrant at Defendant’s home and seized a number of items that contained additional child pornography. As a recidivist, this time around Defendant faced an increased mandatory minimum and multiple supervised release violations, and eventually pled guilty on June 18, 2013.
U.S. Attorney Amanda Marshall praised the sentence imposed on Sparks: “My office aggressively prosecutes child exploitation offenses. This defendant did not get that message the first time. The 12-year sentence imposed today is a clear reminder to those who seek gratification from the exploitation of children that their conduct will not be tolerated, especially when they are repeat offenders like Christopher Sparks.”
"Not once, but twice this defendant has been caught exploiting children through his possession of images and videos showing those children being violently abused," said Gregory Fowler, Special Agent in Charge of the FBI in Oregon. "The FBI, in concert with our law enforcement partners, will continue to pursue those who seek to abuse and exploit children."
This case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Defendant Sentenced to 37 Months in Federal Prison in Tax Refund Conspiracy CaseRead the Press Release
DALLAS — Kennedy Githaiga Wanyoike was sentenced yesterday, by U.S. District Judge Sam A. Lindsay, to 37 months in federal prison and ordered to pay $73,638 in restitution following his guilty plea in October 2012 to one count of conspiracy to file false claims. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Wanyoike conspired with others to file fraudulent tax returns with false wages and tax withholding that resulted in false claims. Wanyoike admitted that his role in the conspiracy was to open bank accounts to receive the electronically deposited refunds. Wanyoike opened these five bank accounts at various banks in Dallas using an address of a private mail box in Dallas and listing his employer as “Nova Consultant Services.” He had rented the private mail box and applied for the assumed name of “Nova Consultant Services” by using another person’s Texas driver’s license. The total of deposits made into all five accounts he opened was $91,602.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Christopher Stokes.
Court of Appeals Affirms Sholam Weiss's Convictions on Racketeering, Fraud, and Money Laundering ChargesRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that the United States Court of Appeals for the Eleventh Circuit upheld the 1999 convictions of former fugitive Sholam Weiss on 78 counts of racketeering, wire fraud, interstate transportation of stolen funds, money laundering, and other offenses arising from his participation in a scheme to defraud National Heritage Life Insurance Company ("NHLIC").
The evidence at trial established that Weiss had been instrumental in causing NHLIC a loss of more than $125 million and had worked with certain NHLIC insiders to hide those losses from company executives and state insurance regulators while, at the same time, enriching himself with the company's assets. During his nine-month trial in 1999, Weiss absconded while the jury was deliberating. Following the jury's return of a guilty verdict on all counts of the indictment, the Honorable Patricia C. Fawsett, United States District Judge, sentenced Weiss in his absence to serve 845 years' imprisonment, imposed a $123,399,910 fine, ordered him to pay $125,016,656 in restitution, and ordered him to forfeit money and property. When law enforcement officers eventually found Weiss living in Austria, that country extradited him to the United States in 2002, after which the district court vacated one of his counts of conviction (obstruction of justice) and reduced his sentence to 835 years' imprisonment, in compliance with the terms of the extradition.
Weiss argued on appeal that his convictions should be vacated because, at the time of his trial, prosecutors had served a subpoena on one of his attorneys, Robert Leventhal, thereby effectively disqualifying Leventhal from representing Weiss at trial. But, after hearing oral argument last week, the Eleventh Circuit Court of Appeals held that "there is no evidence that the government acted in bad faith when it subpoenaed Leventhal’s testimony." The Court also said that Leventhal could not have represented Weiss at trial anyway because Weiss had created a conflict of interest; he had used Leventhal to submit documents and recordings to investigators, and those documents and recordings, unbeknownst to Leventhal, were fraudulent. The Court also rejected Weiss' contention that the district court had erred when instructing the jury on the wire fraud counts of the indictment.
The appeal was handled by former Assistant United States Attorney Judy K. Hunt and Assistant United States Attorney Linda Julin McNamara. The underlying case was prosecuted by Hunt and former Assistant United States Attorney Thomas W. Turner (now a judge in the Ninth Circuit Court of Florida). The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service.
Convicted Drug Trafficker Pleads Guilty to Federal Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Fernando Santana, 26, of Providence, faces up to 10 years in federal prison when he is sentenced in December, having pleaded guilty today in U.S. District Court in Providence to being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
It is also alleged that Santana violated the terms of his federal supervised release imposed in 2011, at which time he also received a term of imprisonment of 37 months for drug trafficking.
According to information presented to the court, Santana was arrested by Providence Police on May 22, 2013, following a brief foot pursuit. Santana admitted to the court that while fleeing police he stashed a loaded .357 revolver belonging to him in a stack of mattresses. He pleaded guilty to one count of being a felon in possession of a firearm.
According to information presented to the court, detectives and officers responded to a dispatch broadcast of an individual or individuals with a gun in a South Side neighborhood. As a Providence detective exited his vehicle to speak with two men who fit the description of the individuals described in the broadcast, Santana fled on foot. An officer in pursuit came upon Santana and noticed him grasping at his waist. As the officer continued the pursuit and came around the corner in a rear yard he noticed Santana retracting his hand from between a pile of mattresses. Santana was apprehended a short distance away. A loaded .357 revolver was retrieved from the pile of mattresses.
Santana is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on December 12, 2013. At sentencing, Santana faces statutory penalties for being a felon in possession of a firearm of up to 10 years in federal prison to be followed by up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Richard B. Myrus.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
Contact: 401-709-5357
[email protected]California Women Convicted of Smuggling Drugs on Airplanes to TampaRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Vanessa Cooper (39, El Cajon, California), Canetha Johnson (43, El Cajon, California) and Selena Blanchard (41, San Diego, California) guilty of conspiracy to possess with the intent to distribute and possession with intent to distribute more than 500 grams of methamphetamine. Cooper, Johnson, and Blanchard each face a maximum penalty of life in federal prison. The sentencing hearings are scheduled for December 16, 2013. All three individuals were indicted on April 11, 2013.
According to evidence and testimony presented at trial, on or about April 1, 2013, Cooper, Johnson and Blanchard departed from the airport in San Diego destined for Tampa, with the purpose of delivering approximately two pounds of high-purity methamphetamine to co-defendant Raul Carbajal. In order to get the drugs through airport security without detection, each of the women concealed the drugs on her body. On April 2, 2013, they arrived in Tampa where they were met by Carbajal. The three women then delivered the packages of methamphetamine to him. In the same manner, Cooper and Blanchard had previously delivered methamphetamine from California to Carbajal in Tampa on several occasions.
This case was investigated by special agents and local task force agents with the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
Brooklyn Residents Arrested in International Lottery Fraud SchemeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr., announced today that four men were arrested this morning in Brooklyn, N.Y., and charged by criminal complaint with participating in a fraudulent lottery scheme being operated from Jamaica. The scheme targeted elderly citizens throughout the United States, including two seniors living in Western New York. Under arrest are: Corey Buddle, Orlando Buddle, and Otis Ricketts, all of Brooklyn, and Horace Buddle, of Montego Bay, Jamaica. The defendants are charged with conspiring to commit mail fraud, wire fraud, and money laundering. The charges each carry a maximum penalty of 20 years in prison, and fines up to $500,000.
Special Assistant U.S. Attorney Fauzia K. Mattingly, who is handling the case, stated that according to the complaint, the defendants conspired with others to defraud senior citizens by luring them into believing that they had won millions of dollars in the lottery, as well as a Mercedes Benz in many cases in exchange for fees paid up front. The scheme typically utilized contact by mail, telephone or fax and also involved high pressure tactics and threats to coerce the victims to send money. In one instance, a victim was threatened with legal action possible arrest if she did not make payments to the defendants.In response to the false claims made by the defendants, victims sent payments of more than $275,000 to a residence in Brooklyn or to designated bank accounts between March 2011 and June 2013. Additional payments of unknown amounts were sent by victims to the same address in Brooklyn. According to the complaint, at least 10 elderly victims were identified by law enforcement officials, and there are believed to be others who have been victimized by this scheme. The victims include an 83 year man from Buffalo and a 71 year old man from Rochester. Some of the funds acquired from victims in the United States were transported to Jamaica, or otherwise transferred out of the country by wire transactions or ATM withdrawals at locations in Jamaica.
“We often say if it sounds too good to be true it probably is,” said U.S. Attorney Hochul. “In this case, 10 elderly victims were promised millions of dollars and luxury cars in exchange for a fee. If they did not pay up, they were threatened. If you are approached about participating in a lottery and are asked to submit money, you need to think twice. And, if you are ever threatened with legal action or arrest, contact the proper authorities. For more information, go to www.stopfraud.gov.”
The defendants are scheduled to appear today in U.S. District Court in Brooklyn.
The criminal complaint is the result of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector In Charge Kevin Niland of the Boston Division, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.Bank Teller Convicted of Stealing over $200,000 in U.S. Treasury Tax RefundsRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday for his role in depositing fraudulently obtained tax refunds into various bank accounts.
Robert A. Montero, 37, pleaded guilty today to 30 counts of theft of government property.
Montero was a bank teller at Metro Credit Union in Lawrence. In November 2011, an individual from the Lawrence area offered Montero a fee if Montero helped the individual to deposit and negotiate U.S. Treasury checks containing fraudulently obtained tax refunds through various bank accounts at Metro West Credit Union. Between November 2011 and December 2012, Montero, in his capacity as a bank teller, helped the individual to deposit and negotiate 30 U.S. Treasury checks worth $211,214. These U.S. Treasury checks had been obtained by filing false tax returns with the IRS in the names of third parties.
Montero faces a maximum term of 10 years in prison, three years of supervised release, restitution, and a $250,000 fine. Sentencing is scheduled for January 9, 2014.
United States Attorney Carmen M. Ortiz, Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service in Boston, and John G. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Major Crimes Unit.
Anchorage Man sentenced to 92 months in prison for drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage, Alaska, was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Dalon Johnson, a/k/a, “Day Day,” 36, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline. Johnson received a sentence of 92 months in prison, and 5 years of supervised release. Johnson had previously pleaded guilty to count one of an indictment charging him with drug conspiracy.
Johnson was a member of a drug trafficking conspiracy where he and his co-conspirators attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” or “ODC” Entertainment and “UNDB” (Up North ‘D’ or Dope Boys). Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics and Johnson held himself out as the group’s “manager.”
Johnson has a prior federal drug trafficking conviction, and prior to imposing a sentence, Judge Beistline questioned the defendant about his chances for rehabilitation. He was asked this since he had previously been sentenced for a similar crime and after he was released from prison, he immediately returned to making the same lifestyle choices. Judge Beistline remarked that drug addiction damages families in our communities, and that Johnson was “passing poison to people for personal gain.”
Johnson was a member of a wide ranging conspiracy along with 13 co-conspirators located in Anchorage and Fairbanks. Eight defendants have already been sentenced. Donnell Johnson, Antonio Fleming, Tevoris Carter, Emma Shine, and Terrance Fleming have pled guilty for their roles in connection with the conspiracy and await sentencing.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Johnson.
Anchorage Man sentenced to 144 months in prison for conspiracy to distribute methamphetamineRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court to 144 months in prison after pleading guilty to conspiracy to distribute methamphetamine.
Boaphan Sengchareun, a/k/a “Kun,” 36, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 144 months in prison, to be followed by a five year term of supervised release. Sengchareun previously pled guilty to conspiracy to distribute methamphetamine.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Sengchareun worked with two other individuals to sell more than forty grams of actual methamphetamine over an estimated six month period in 2012. The conspiracy culminated in a deal where the conspirators attempted to trade methamphetamine for fully automatic weapons. Prior to joining the conspiracy, Sengchareun also sold drugs on his own, selling nearly 14 grams of methamphetamine in three separate transactions in 2011.
In sentencing Sengchareun, Judge Gleason noted that methamphetamine is an exceedingly debilitating drug that harms too many people in our community. Judge Gleason also noted the importance of deterrence in these cases, as well as the need to protect the public from people who sell dangerous drugs like methamphetamine.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation for their investigation of this case.
Alton Man Sentenced for Firearm OffenseRead the Press Release
Brian L. Edelen, 25, of Alton, Illinois, was sentenced today in federal district court, in East St. Louis, Illinois, on an unlawful possession of a firearm by a previously convicted felon charge, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Edelen was sentenced to fifty-seven months in prison, to be followed by three years supervised release, a $100 special assessment, and a $300 fine. Facts presented in court revealed that on April 26, 2012, law enforcement officers conducted a parole compliance check at Edelen’s residence in Alton, Illinois. During the check, a loaded semi-automatic pistol was discovered hidden in the bottom of a trash can in his bedroom. Edelen previously served a prison term of more than one year for felony conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Aliquippa Man Sentenced to 16+ Years in Prison for Federal Drug Law ViolationsRead the Press Release
PITTSBURGH - A former Aliquippa resident was sentenced to serve 200 months in prison, followed by five years of supervised release, for several violations of federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Edward Harris, 38, was sentenced by United States District Judge Maurice B. Cohill. Harris was convicted of conspiring and attempting to possess with intent to distribute at least five kilograms of cocaine in May 2012. Harris was also convicted of possessing with intent to distribute cocaine in January 2011 and in June 2010. Harris was on bond for the June 2010 and January 2011 crimes when he committed the May 2012 crimes.
Assistant United States Attorney Craig W. Haller prosecuted the case on behalf of the United States.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Pittsburgh Bureau of Police and the Penn Hills Police Department for conducting the investigations that led to the convictions and sentence in this case.
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West Orange, N.J., Woman Admits Stealing Nearly $100,000 from an Elderly Woman Living on Social SecurityRead the Press Release
TRENTON, N.J. – A West Orange, N.J., woman who defrauded an elderly victim of almost $100,000 – by taking the victim’s Social Security payments and secretly applying for a reverse mortgage on the victim’s home – admitted her crimes today in Trenton federal court, U.S. Attorney Paul J. Fishman announced.
Shawn L. Craig, 47, pleaded guilty to two counts of an information: mail fraud and filing false personal federal income tax return for 2011 by not disclosing income including money fraudulently obtained from her victim. Craig entered her guilty plea before U.S. District Judge Michael A. Shipp.
According to documents in this case and statements made in court:
In November 2010, Craig entered into a general power of attorney with the victim, an elderly woman, to serve as her attorney-in-fact. In that position, Craig was trusted to act in the victim’s best interest and to arrange for the payment of the victim’s living expenses.
After gaining access to the victim’s bank accounts, Craig diverted a portion of the victim’s funds for her own benefit and the benefit of her family, including to pay her automobile insurance; purchase a bar and bar stools; make a tuition payment; and pay for entertainment at the Wachovia Center in Philadelphia. At the time Craig made those purchases, the funds in the victim’s accounts consisted primarily of the victim’s Social Security benefits.
In December 2010, Craig submitted an application in the victim’s name to a commercial lender for a reverse mortgage on the victim’s residence in East Orange. When the victim refused to sign a specific power of attorney permitting the closing of the reverse mortgage to go forward, Craig forged the victim’s signature on the document and presented it to the title agent at the title agent’s office in Morristown, N.J.
Craig used the money from the reverse mortgage to purchase items at retail establishments including Gucci, Coach, Nike, Apple, Footlocker and various other shoe stores; pay for meals and entertainment at restaurants, liquor stores and other establishments, including the Taj Mahal in Atlantic City, N.J., the Staples Center in Los Angeles and Amazing LA Tours in Santa Monica, Calif.; fund travel to, and stays at, hotels in New Jersey, California and Florida; and pay personal bills, including automobile insurance, gas and electric, cell phone and cable bills.
In June 2011, Craig was notified that the general power of attorney had been revoked, so she transferred the victim’s funds to a new bank account. In all, Craig misused approximately $99,000 of the victim’s funds.
Craig also admitted that she caused a tax preparer to prepare and electronically file with the IRS a false and fraudulent personal income tax return for tax year 2011, by not disclosing as income the funds that she had fraudulently obtained from the victim.
The mail fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The tax charge carries a maximum potential penalty of three years in prison and a $250,000 fine. In addition, the plea agreement requires Craig to make restitution to the victim. Sentencing is scheduled for Jan. 2, 2014.
U.S. Attorney Fishman credited special agents of the United States Department of Housing and Urban Development, Office of Inspector General, Northeast Region; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan.
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Defense counsel: Thomas R. Ashley Esq., Newark, N.J.
Craig Information
Wagner Man Sentenced to 210 Months for Second Degree Murder and Assault with Intent to Commit MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wagner, South Dakota, man convicted of Second Degree Murder and Assault with Intent to Commit Murder was sentenced on September 23, 2013, by U.S. District Judge Karen E. Schreier.
Dancing Bull Fischer, age 24, was sentenced to 210 months in custody, to be followed by 3 years of supervised release.
Fischer was indicted for the charges by a federal grand jury on December 4, 2012. He pled guilty on June 26, 2013.
The conviction stems from an incident that took place on November 27, 2012 at a house party in the Wagner area, where Fischer shot his uncle, Anthony Fischer Sr., at close range and killed him. He also shot and seriously injured his cousin, Dominic Fischer.
This case was investigated by the Yankton Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs Law Enforcement Services, the South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
Fischer was immediately turned over to the custody of the U.S. Marshals Service.
U.S. Attorney Goodwin and Huntington Police Chief Launch Film and Facebook Page to Fight Prescription Pill AbuseRead the Press Release
Goodwin and Holbrook say film’s anti-drug message will reinforce prevention efforts
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin, joined by Huntington Police Department Chief W.H. “Skip” Holbrook today met with students and faculty at Huntington Middle School to launch a film and Facebook page designed to educate young people about the dangers of prescription drug abuse.
“Prescription drug abuse has been like no other drug problem we’ve ever faced,” U.S. Attorney Booth Goodwin said. “The biggest problem in this district is legal drugs.”
Goodwin continued, “For many people, especially adolescents, the road to addiction starts with pills they find in their parents’ or grandparents’ medicine cabinets. We’ve seen time and again that when people begin experimenting with pills, they eventually move to cheaper alternatives, like heroin, to feed their addiction.”
Goodwin said that building relationships between the law enforcement and education communities is essential toward strengthening prevention efforts. “We commissioned this film in an effort to get students’ attention. They must understand that prescription pill abuse has real consequences. It can send a person’s life into a downward spiral in the blink of an eye,” Goodwin said.
The educational film, known as “E.O.D. Equal Opportunity Destroyer” or “E.O.D.,” was developed through a partnership between the U.S. Attorney’s Office for the Southern District of West Virginia and the Huntington Police Department. It was funded by a grant from the West Virginia Division of Justice and Community Services. The 17-minute film features the true stories of a West Virginia father and a young woman whose lives have been tremendously altered by prescription drug abuse.
Goodwin debuted the E.O.D. film during a statewide education conference at the Charleston Civic Center in June. Since then, Goodwin has shown the film at schools and professional conferences throughout the state, in an effort to educate the public about the dangers associated with prescription pill abuse.
Goodwin said, “We hope people will see this film and decide to share it. They can do so through the web site: www.wvsafeschools.org and now on Facebook: www.facebook.com/EODWV.”
"Opiate abuse transcends all of society; it does not discriminate,” Huntington Police Chief Skip Holbrook said. “This issue is absolutely the most pressing law enforcement and public health issue facing our community. We’ve seen the tragic results of opiate addiction at an alarming rate.”
Holbrook continued, “We’ve seen a number of overdoses in just the last few weeks. Our community is still mourning the death of three young adults. Each overdose call is like a punch in the gut for me -- it breaks my heart."
The Centers for Disease Control and Prevention (CDC) statistics show that nearly 15,000 people die every year of overdoses involving prescription painkillers. In 2010, one in 20 people in the United States (age 12 or older) reported using prescription painkillers for nonmedical reasons. West Virginia has maintained one of the nation’s highest drug overdose death rates. Most of the overdoses have involved prescription painkillers.
The official E.O.D. video can also be viewed on You Tube by clicking the following link: http://www.youtube.com/watch?v=Dr3jN6atZ44
Follow us on Twitter: SDWVNews
Two North Jersey Women Admit Roles in Scheme to Defraud Banks and Credit Card Companies Out of Millions of DollarsRead the Press Release
NEWARK, N.J. – Two members of a large-scale and sophisticated identity theft scheme today admitted their roles in defrauding banks and credit card companies out of millions of dollars, U.S. Attorney Paul J. Fishman announced.
Rita S. Kim, 49, of Fort Lee, N.J., and Hyon-Suk Chung, a/k/a “Clara,” 50, of North Bergen, N.J., each pleaded guilty before U.S. District Judge Katharine S. Hayden to Count One of a Second Superseding Indictment charging them with conspiracy to commit mail and wire fraud.
According to documents filed in this case and statements made in court: Kim and Chung conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to defraud banks and credit card companies. Park obtained Social Security cards beginning with the prefix “586,” which were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. The individuals from China who were issued these Social Security numbers never established credit files or scores in the United States – these Chinese identities were essentially blank slates with no corresponding credit files or scores. Kim and Chung engaged in the fraudulent build-up of credit scores associated with these Chinese identities by adding them as authorized users to their credit card accounts in exchange for a fee from Park and his associates.
Kim and Chung admitted they received information related to the Chinese identities necessary for the credit build-up from Park’s associates, such as Sung-Sil Joh, a/k/a “Jenny,” and Young-Hee Ju, a/k/a “Stephanie.” Joh and Ju have pleaded guilty in connection with their roles in the scheme and await sentencing.
By attaching the Chinese identities to their credit card accounts, Kim and Chung increased the credit scores associated with the Chinese identities to between 700 and 800. Kim and Chung each admitted that they created credit scores for approximately 100 Chinese identities. They also acknowledged that their criminal conduct caused credit card companies and other lenders $2,047,651 in losses.
Kim and Chung each face a maximum potential penalty of up to 60 months in prison and will be ordered to pay restitution and forfeiture of more than $2 million. Sentencing for both Kim and Chung is scheduled for Jan. 8, 2014.
Park, Kim, Chung, and more than 50 other individuals were charged in this scheme on Sept. 16, 2010. To date, more than 50 defendants have pleaded guilty and two remain at large. Park pleaded guilty on Jan. 9, 2012, related to his role in the enterprise and is awaiting sentencing.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the U.S. Department of Homeland Security’s Immigration and Customs Enforcement Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives, Steven Cucciniello, for their work leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit and Jane Yoon of the Criminal Division in Newark.
As for other members of the Park Criminal Enterprise, the charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense Counsel: Kim: Stephen N. Dratch Esq., Livingston, N.J.
Chung: Thomas Ambrosio Esq., Lyndhurst, N.J.Two Former Real Estate Brokers Plead Guilty to Conspiring to Fraudulently Obtain the Sales Proceeds of Million Dollar Homes in San Diego and Del Mar by Filing Fictitious Title DocumentsRead the Press Release
United States Attorney Laura E. Duffy announced that Adel Afkarian and Atef Afkarian each entered a guilty plea in federal court in San Diego today to count one of an information charging them with conspiracy to commit mail fraud and wire fraud, in connection with a fraud scheme involving sales of million-dollar homes in San Diego and Del Mar, California.
In connection with the entry of their guilty pleas, both defendants, who worked through entities known as The Better Mortgage Company and Elite Coast Realty, admitted that they fraudulently obtained the entire proceeds of the sales of homes in Del Mar, La Jolla, and San Diego from innocent purchasers who were unaware that the defendants had hidden the existence of outstanding liens on the properties held by institutional lenders. The defendants also acknowledged that they used sham entities to execute and record documents falsely purporting to affect the legal title to the properties, including fraudulent deeds of trust and reconveyances that falsely purported to totally eliminate the existing debt to institutional lenders secured by the properties. During the course of the scheme the defendants sold their own property and properties of others with a combined sales price of more than $4,000,000.
Defendants Adel Afkarian and Atef Afkarian will appear before United States District Judge John A. Houston for sentencing on March 17, 2014, at 8:30 a.m.
DEFENDANTS Criminal Case No. 13CR1469-JAH Adel Afkarian
Atef Afkarian SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 - Conspiracy
INVESTIGATING AGENCY
Maximum penalties: 5 years' imprisonment, $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss (whichever is greatest), $100 special assessment, 3 years of supervised releaseFederal Bureau of Investigation
Two Brothers Plead Guilty to Defrauding Sports FansRead the Press Release
United States Attorney Laura E. Duffy announced that twin brothers Anthony Donald Casias and Leo Ronald Casias, Jr., pled guilty to a scheme to defraud local sports fans through their company, "L & T Sports Events, Inc."
According to court documents, clients of L&T Sports paid in advance for travel, lodging, transportation, and game tickets to out-of-town sporting events, such as San Diego Chargers "away" games, other NFL games, and collegiate sporting events. The brothers told customers that L&T Sports purchased specific flights, game tickets, and hotel accommodations for them for a set amount of money. The defendants even promised clients that L&T Sports obtained tickets in specific seating areas (for example, "lower level corner end zone" or "club level" seating), accommodations at specified hotels, and seats on specific airline flights, to reassure clients that the services clients paid for would be provided when the clients arrived at the game destinations.
The defendants admitted today that once the clients paid the advance fees in reliance on the brothers' statements, the defendants fraudulently diverted the funds to other uses, thereby leaving clients stranded in other cities without hotel accommodations, transportation, game tickets, and flights back to San Diego.
Court documents indicate that on at least one occasion the defendants used one individual's credit card to pay for another L&T Sports client's trip to Hawaii. Furthermore, according to individuals who addressed the court at today's guilty plea, the defendants borrowed money from victims, claiming that the funds would be used to purchase specific travel-related services to keep the business afloat. Instead, the brothers used the money for personal expenses, such as car payments and cable bills, and failed to repay the victims. One elderly individual informed the court that the brothers had obtained from him the money he had saved for his own cremation.
The court remanded both defendants into custody. The defendants will next appear before Judge John A. Houston on October 4, 2013, at 1:00 p.m. for a further hearing on whether they will remain in custody pending sentencing. They will appear before Judge Houston for sentencing on January 6, 2014, at 8:30 a.m.
If you are a victim of L&T Sports, please contact the FBI at (858)320-1800.
DEFENDANTS Criminal Case No. 12CR4966-JAH Anthony "Tony" Donald Casias
Leo Ronald Casias, Jr. SUMMARY OF CHARGECount 1: Title 18, United States Code, Section 1349 - Conspiracy to Commit Wire Fraud. Maximum penalties: 20 years' imprisonment, $250,000 fine, $100 special assessment, 3 years of supervised release, mandatory restitution to victims.
INVESTIGATING AGENCYFederal Bureau of Investigation
Two Brook Park Men Plead Guilty to $2 Million Food Stamp FraudRead the Press Release
Two Brook Park men pleaded guilty today to defrauding the Supplemental Nutrition Assistance Program (formerly the Food Stamp Program) out $2 million from four Cleveland stores where they accepted food stamps for ineligible items such as beer and cigarettes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Saed (Sam) Wahdan, 41, and his brother, Maher (Mario) Wahdan, 42, each pleaded guilty one count of conspiracy to commit food stamp fraud, one count of food stamp fraud and two counts of unlawful redemption of food stamps. Maher Wahdan also pleaded guilty to an additional count of theft of public funds.
“The food stamp program has provided nutritious food to thousands of hungry families over the years,” Dettelbach said. “We will continue to work to recover money stolen from the program and eradicate waste, fraud and abuse of government programs.”
The Wahdans are scheduled to be sentenced on April 24, 2014.
Nidal Jaber, 45, also of Brook Park, was also indicted for his role in the conspiracy. His charges are pending.
Between January 2008 and March 2012, the Wahdans and others conspired to commit more than $2 million in food-stamp fraud through four of their businesses: One Stop Beverage, 5105 Franklin Blvd.; Bridge Deli and Beverage, 4700 Bridge Ave.; Franklin Beverage and Deli, 4719 Franklin Blvd., and Scott Food Mart, 951 Linn Drive.
The Wahdans owned and operated all four stores but put them in the names of other people to conceal the fact that Saed Wahdan had a prior conviction for food stamp trafficking and Maher Wahdan had a prior conviction for impersonating an officer – both of which precluded their participation in the food stamp program, according to court documents.
The defendants used their businesses to exchange customer food stamps for cash and other unauthorized items, including beer and cigarettes. They also purchased food stamp cards from customers and used them at other grocery locations to purchase inventory for their stores and for their personal use, according to court documents.
The indictment seeks to forfeit property derived from the proceeds of the criminal conduct of the Wahdans, including the following Cleveland properties: 9604 Dennison Ave.; 3353 West 44th Street; 3374 West 130th Street; 1452 West 75th Street and 951 Linn Drive.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Vasile Katsaros and James Morford following an investigation by the U.S. Department of Agriculture, Office of Inspector General-Investigations and Department of Homeland Security, Homeland Security Investigations.
Topeka Man Sentenced for Armed RobberyRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to seven years in federal prison for taking part in an armed robbery at a Little Caesars Pizza restaurant, U.S. Attorney Barry Grissom said today.
David Pierre Wigfall, 28, Topeka, Kan., pleaded guilty to aiding and abetting a robbery in which the robber brandished a firearm. In his plea, Wifgall admitted that on March 1, 2013, he drove a white Cadillac occupied by co-defendants Alonzo Nathan Lax, Johnnie Lee McCall and Jordan Lucas. At McCall’s direction, Lax agreed to rob Little Caesars Pizza at 2620 SW 6th Street, Suite B, in Topeka. Wearing a blue hooded sweatshirt, gloves and a black ski mask, Lax entered the restaurant, brandished a firearm and demanded money. A clerk saw him leave the restaurant and get into the passenger side of the Cadillac.
A few minutes later, officers of the Topeka Police Department found the Cadillac parked at a residence in the 1000 block of SW Plass and determined that it was registered to Wigfall. They kept watch on the car until he got in and drove away. When they stopped him they recovered a mask and coins from the robbery.
Co-defendants include: Johnnie Lee McCall, who is set for sentencing Oct. 7.
Jordan Christopher Lucas, who is set for sentencing Oct. 28.
Alonzo Lax, who is set for sentencing Oct. 7.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.Tampa Tax Fraudster SentencedRead the Press Release
Tampa, Florida - United States District Judge Elizabeth A. Kovachevich sentenced Maurice Larry today to eight years and five months in federal prison for conspiracy to defraud the United States Treasury through tax fraud and aggravated identity theft. As part of the sentence, a forfeiture money judgment in the amount of $181,890 was entered. In addition, specific items purchased with fraud proceeds, and other substitute assets, were also ordered to be forfeited including two 2010 Chevrolet Camaros, a 1986 Chevrolet Monte Carlo, a motor scooter, laptop computers, and assorted jewelry. The sentencing hearing for Larry's co-defendant, Marterrence Hollaway, a/k/a/ Quat, is scheduled for October 16, 2013, at 2:00 p.m. before Judge Kovechevich.
According to court documents, in September 2010, Holloway and Larry filed fraudulent tax returns from a hotel room at the Howard Johnson Hotel on 50th Street in Tampa. The room was booked in Larry's name. The investigation revealed that agents located four computers which were used to electronically file fraudulent tax returns in the names of deceased individuals. Ledgers and lists of stolen names, dates of birth and social security numbers were also found in the room. The lists of names also had a six-digit alpha code or password next to them to be used for electronic access. Some of the names were annotated with either "A" or "R" next to them to indicate that a tax return filed in that name was either accepted or rejected. Multiple reloadable debit cards were also found in the hotel room along with ATM receipts for cash withdrawals, and approximate $3,700 in cash. Larry and Holloway admitted to filing fraudulent tax returns on the computers while staying at the hotel. The investigation also revealed that in May 2012, Larry used a fraudulent debit card at a local bank ATM machine. The card was loaded with more than $9,900, that were traced to a fraudulently filed tax return.
This case was investigated by the Internal Revenue Service, the United States Secret Service and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Maurice Larry is also scheduled for sentencing tomorrow, September 24, 2013, at 10:30 A.M. before United States District Judge James S. Moody, Jr. Larry will be sentenced for tax fraud and aggravated identity charges filed in a separate case, United States v. Rashia Wilson and Maurice Larry, Case No. 8:12-cr-552-T-30TGW. He pleaded guilty in that case in April 2013.
Spokane Couple Sentenced for Distributing MethamphetamineRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Mark William Bush, age 38, and Crystal Kaye Peterson, age 31, both of Spokane, Washington, were sentenced after pleading guilty to federal drug charges on June 27, 2013. Mark William Bush pleaded guilty to three counts of delivery of methamphetamine and one count of possession of more than 50 grams of actual methamphetamine with intent to deliver. Crystal Kaye Peterson pleaded guilty to two counts of delivery of methamphetamine. Now, Senior United States District Court Judge Justin L. Quackenbush sentenced Mark William Bush to a 168-month term of imprisonment, to be followed by a five-year term of court supervision upon release from Federal prison. Judge Quackenbush sentenced Crystal Kaye Peterson to a 92-month term of imprisonment and a three-year term of court supervision following release from Federal prison.
According to information disclosed at the change of plea and sentencing hearings: members of the Spokane County Sheriff's Office conducted an investigation in March of 2013 during which three undercover purchases of methamphetamine were made from Mark William Bush. During two of these purchases, Mark William Bush was accompanied by his wife, Krystal Kaye Peterson. The third undercover purchase was conducted in the residence that Mark William Bush shared with Krystal Kaye Peterson. The undercover investigation led to the issuance of a search warrant for the residence, which was served on April 4, 2013. During the search, detectives located approximately 200 grams of methamphetamine together with scales and drug records. Both Mark William Bush and Crystal Kaye Peterson had a record of convictions for offenses that included possession of controlled substances.
Michael C. Ormsby said, "The Spokane County Sheriff's Office and the Drug Enforcement Administration should be commended for their on-going commitment to investigate aggressively individuals trafficking in methamphetamine. This case involved a significant amount of methamphetamine, an addictive dangerous drug which has devastating effect on individuals, families, and communities. The United States Attorney's Office will similarly continue its on-going commitment to prosecute methamphetamine traffickers and to seek appropriate punishment for their criminal conduct."
This investigation was conducted by the Spokane County Sheriff's Office and the Drug Enforcement Administration. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
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