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23 September 2013
Dominican National Pleads Guilty to Identity TheftRead the Press Release
BOSTON – A Dominican man was convicted today of stealing a U.S. citizen’s social security number to obtain benefits.
Pablo M. Severino, of Lynn, pleaded guilty before U.S. District Judge Nathaniel M. Gorton to aggravated identity theft, theft of public money and using another=s social security number to obtain benefits.
In March 2012, federal agents commenced an investigation into a social security identity which had been falsely used to obtain disability benefits. The investigation revealed that Severino had obtained the social security number and the identity of a true U.S. citizen living in Puerto Rico. Severino then used that individual’s identity to apply for and receive social security disability benefits. Further investigation revealed that Severino was not a U.S. citizen but rather a citizen of the Dominican Republic.
Sentencing is scheduled for December 19, 2013. Severino faces up to 10 years in prison on the charge of theft of money, followed by a consecutive term of two years in prison on the charge of aggravated identity theft. Additionally Severino faces a fine of up to $250,000, three years of supervised release and restitution. Following the completion of his sentence, Severino will be placed into deportation proceedings and deported back to the Dominican Republic.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the United States Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; and William Squires, Special Agent in Charge of the U.S. Department of Agriculture, Office of the Inspector General, Office of Investigation, Northeast Regional, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz=s Major Crimes Unit.
District Man Sentenced to 23-Year Prison Term for 2011 Strangling at Northeast Washington Park-Victim Was Stabbed, Choked and Robbed in Late-Night Attack-Read the Press Release
WASHINGTON – Mark Coates, 28, of Washington, D.C., was sentenced today to a 23-year prison term on a charge of second-degree murder while armed for the slaying of a man at a park in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Coates pled guilty in July 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Herbert B. Dixon, Jr. Upon completion of his prison term, Coates will be placed on five years of supervised release.
According to the government’s evidence, between 11 p.m. on Friday, Dec. 30, 2011, and 1 a.m. on Saturday, Dec. 31, 2011, Coates and an accomplice forced the victim, Leroy Studevant, 56, into the Marvin Gaye Park in the 4200 block of Hunt Place NE, where they punched and kicked him.
During the assault, Mr. Studevant managed to escape, and he ran across the park. However, Coates and the accomplice chased Mr. Studevant through the park, until Coates ultimately cut off Mr. Studevant’s flight path. Using a knife, Coates and his accomplice then stabbed Mr. Studevant. After forcing Mr. Studevant to the ground, Coates and his accomplice kicked him, and Coates was able to unhook and remove Mr. Studevant’s belt from around his waist. The belt was placed around Mr. Studevant’s neck as a noose, and he was choked with the belt until he no longer resisted. During the altercation, a wallet and cell phone were removed from Mr. Studevant’s pockets. Coates and his accomplice split the money in the wallet.
An autopsy determined that Mr. Studevant died as a result of the strangling and assault in the park. The reason for the attack was because the victim would not share his cigarettes.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kendra Johnson, Ethel Nobel, Marian Russell, and Sandra Lane; Lead Paralegal Specialist Sharon Newman; Victim/Witness Advocate Tamara Ince; Victim Witness Security Specialist Katina Adams-Washington; Investigator Nelson Rhone; and Intelligence Specialists Lawrence Grasso, Zachary McMenamin, Shannon Alexis, and Sharon Johnson. Finally, U.S. Attorney Machen recognized the efforts of Assistant U.S. Attorney Kimberley Nielsen and Assistant U.S. Attorney Robert Feitel, who investigated and prosecuted the case.
13-330Co-Owner of Adult Day Care Centers in New York City Pleads Guilty to Conspiring to Bribe New York State Assemblymember Eric Stevenson and Former Assemblymember Nelson CastroRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that IGOR BELYANSKY pled guilty today in Manhattan federal court to conspiring to bribe New York State Assemblymember Eric Stevenson in connection with a scheme to obtain Stevenson’s assistance in drafting, proposing, and agreeing to enact legislation favorable to BELYANSKY’s business. BELYANSKY also pled guilty to conspiring to bribe former New York State Assemblymember Nelson Castro. BELYANSKY was arrested in April 2013, and pled guilty before U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “Igor Belyansky tried to corrupt the legislative process by bribing two New York state lawmakers, and attempted to buy from one of them a self-serving law designed to advance his own business interests. As the prosecution of this case shows, our Office will do everything in its power to ensure that democracy is not for sale in New York. With his guilty plea today, Belyansky becomes the first defendant to admit his role in this egregious scheme.”
According to the allegations contained in the Complaint, the Superseding Indictment, and statements made in court:
Stevenson has served as a member of the New York State Assembly since 2011 representing District 79, which includes various neighborhoods in the Bronx. Castro is a former member of the New York Assembly who has been cooperating in this investigation. In August 2013, pursuant to a cooperation agreement, Castro pled guilty in federal court to making false statements to law enforcement agents and also pled guilty in state court to committing perjury in connection with registering New York City residents to vote.
BELYANSKY and co-defendants Rostislav Belyansky (a/k/a “Slava”), Igor Tsimerman, and David Binman are business partners who, during 2012 and 2013, were trying to open and manage adult day care centers in the Bronx, New York, including a center on Westchester Avenue (the “Westchester Avenue Center”), within Stevenson’s Assembly District, and another center on Jerome Avenue (the “Jerome Avenue Center”), within Castro’s Assembly District. In connection with their efforts to open and operate both centers, BELYANSKY, together with Slava, Tsimerman, and Binman, made cash bribe payments to Stevenson. BELYANSKY and Tsimerman also made a cash bribe payment to Castro, who was cooperating with the Government at the time.
At a January 27, 2012 meeting at a restaurant in the Bronx, BELYANSKY and Tsimerman paid Castro $12,000 in cash in exchange for Castro’s assistance in helping BELYANSKY and Tsimerman open an adult day care center in Castro’s district. Immediately following this meeting, Castro met with an individual who was working with BELYANSKY, Tsimerman, Slava, and Binman on their adult day care centers and who later began cooperating with the Government (the “CW”). Castro told the CW, in sum and substance, “Whatever [Tsimerman and BELYANSKY] need, legislatively, whatever. . . . .” The CW interrupted Castro and stated in sum and substance, “they call me. I call you. That’s it and it’s how we work.”
At a September 7, 2012 meeting at a steakhouse in the Bronx, BELYANSKY and Slava offered to pay Stevenson $10,000 in exchange for calling Con Edison to expedite the installation of a gas line and assisting with obtaining a Certificate of Occupancy from the New York City Buildings Department at the Jerome Avenue Center, and for assistance recruiting senior citizens to attend the Westchester Avenue Center. Stevenson agreed, but when BELYANSKY attempted to hand him the $10,000 in cash in an envelope, Stevenson indicated that he was concerned that there might be surveillance cameras in the restaurant, so the transaction was conducted outside. Outside the restaurant, BELYANSKY handed Stevenson the envelope of cash, after which Stevenson stuffed the envelope into his front pants pocket and covered his front pocket with the bottom of his shirt.
On January 9, 2013, the CW told BELYANSKY that Stevenson wanted $10,000 for introducing legislation that would establish a temporary moratorium on the construction and/or opening of new adult day care centers (the “Moratorium Legislation”), which would have the effect of eliminating competition with the Jerome Avenue Center and the Westchester Avenue Center, thereby substantially increasing the profits earned by those two centers. Two days later, on January 11, 2013, at the Westchester Avenue Center, BELYANSKY, Slava, Tsimerman, and Binman gave the CW $5,000 cash to be delivered to Stevenson.
Stevenson had a draft of the Moratorium Legislation prepared by January 31, 2013, which he showed the CW at a meeting in his office. On February 11, 2013, Stevenson told the CW: “We got the bill [the Moratorium Legislation] back today . . . [t]he bill is done now, it’s going out to the members . . . to the committee and . . . we’re gonna . . . try to push it to get it to the floor.” On February 16, 2013, in a hotel room in Albany, Slava gave $5,000 in cash to the CW, which the CW gave to Stevenson after taking a $500 cut.
Stevenson introduced and sponsored Assembly Bill Number A05139, which places a temporary moratorium on the construction and/or opening of new adult day care centers within New York City, on February 20, 2013.
BELYANSKY, 42, of the Bronx, New York, pled guilty to conspiring to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison and three years of supervised release. He also pled guilty to travel act conspiracy, which carries a maximum sentence of five years in prison and three years of supervised release. BELYANSKY further agreed to forfeit any proceeds of his crimes and to pay restitution in an amount ordered by the Court. BELYANSKY will be sentenced by Judge Pauley on January 24, 2014, at 2:00 p.m.
The charges against Stevenson, Slava, Tsimerman, and Binman remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
Mr. Bharara expressed his appreciation for the outstanding efforts of the Bronx County District Attorney's Office, the partner in this case.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Krieger and Brian A. Jacobs and Assistant District Attorney Pishoy Yacoub of the Bronx County District Attorney’s Office are in charge of the prosecution.
Brevard County Resident Sentenced to Twelve Years in Prison for Tax Fraud Scheme and Aggravated Identity TheftRead the Press Release
Orlando, FL - U.S. District Judge Gregory Presnell today sentenced Abdul Cunningham to 12 years in federal prison for wire fraud and aggravated identity theft. The court also ordered Cunningham to pay restitution in the amount of $560,731.00. As part of his sentence, the court also entered a money judgment in the amount of $560,731.00, the proceeds of the wire fraud scheme.
Cunningham pleaded guilty on June 13, 2013. Co-defendant, Jana Harris-Cunningham, pleaded guilty on June 24, 2013. Harris-Cunningham is scheduled to be sentenced on October 7, 2013 at 1:00pm before Judge Presnell.
According to court documents, the defendants engaged in a scheme to defraud the U.S. Treasury Department by filing fraudulent income tax returns and negotiating fraudulent tax refunds using stolen identities, commonly referred to as Stolen Identity Refund Fraud (SIRF). As part of their scheme, both used the stolen identities along with false and fraudulent wage and tax withholding information to prepare fraudulent federal income tax returns, thereby falsely claiming refunds. After filing the false returns, Cunningham and Harris-Cunningham accepted, negotiated, and “swiped” reloadable debit cards that they knew contained fraudulently obtained income tax refunds.
Cunningham and Harris-Cunningham filed 145 false claims with the IRS for tax years 2010 and 2011. These false claims totaled $816,790. Of that amount, the IRS paid out $560,731.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the Federal Bureau of Investigation, and the Rockledge Police Department. It is being prosecuted by Assistant United States Attorney David Haas.
Bank Officer Charged with Bank BriberyRead the Press Release
Michael Ghabrial, 49, of Martinsville, New Jersey, was charged today by Information with one count of bank bribery, announced United States Attorney Zane David Memeger. According to the Information, Ghabrial, an officer of Valley National Bank (“VNB”), solicited and accepted a bribe in exchange for agreeing to sell real estate property owned by VNB at a reduced price.
If convicted, Ghabrial faces a maximum possible sentence of 30 years imprisonment, a five- year period of supervised release, a $1 million fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Vineet Gauri.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Attorney Who Twice Helped Obstruct Investigations into $22 Million Ponzi Scheme Sentenced to Seven Years in Federal PrisonRead the Press Release
LOS ANGELES – A Santa Monica lawyer who was a partner at the Nixon Peabody law firm when he helped obstruct two separate investigations into an investment scheme that ultimately took $22 million from victims was sentenced this morning to 84 months in federal prison.
Attorney David Tamman, 46, was sentenced by United States District Judge Phillip S. Gutierrez, who also ordered the defendant to pay a $2,500 fine.
At today’s hearing, Judge Gutierrez said that, apart from the magnitude of the fraud Tamman helped cover up, the substantial sentence was warranted by the fact that the defendant lied to the Securities and Exchange Commission, and then compounded the matter by lying during his trial in 2012. Judge Gutierrez further indicated Tamman’s conduct was particularly troubling because he is a lawyer.
Following a bench trial last year, Tamman was found guilty of 10 counts that included obstruction of justice, altering records in a federal investigation, and being an accessory after the fact to the fraud scheme. The evidence presented at the trial showed that Tamman conspired with John Farahi, who operated the Ponzi scheme, to obstruct an SEC investigation into the fraud scheme. Tamman, who was suspended from practicing law earlier this year by the California State Bar, served as outside counsel for Farahi’s investment company, Newpoint Investment Services.
“Despite being a highly educated lawyer, defendant David Tamman has displayed a remarkable disrespect for the law and the legal system over the course of almost a decade,” prosecutors wrote in a sentencing brief that stated Tamman altered documents that caused the National Association of Securities Dealers (which is now known as FINRA) to close an investigation in 2004, thereby enabling Farahi to continue bilking victims for another five years.
Prosecutors said that in 2009, in response to an investigation being conducted by the Securities and Exchange Commission, Tamman and Farahi altered and created securities offering documents and promissory notes, as well as lied to the SEC and Tamman’s colleagues.
“But even after Farahi’s crimes were discovered, [Tamman] still did not stop obstructing justice,” prosecutors wrote in their sentencing memo. “In 2011, [Tamman] began obstructing the grand jury’s investigation of his own crimes,” which included lying to federal investigators, giving “false testimony” at his trial last November, and lying to a Probation Officer who was preparing a pre-sentence report after he was found guilty.
Farahi, a former investment fund manager and radio personality, was sentenced in March to 10 years in federal prison for running the $24+ million scheme (see http://www.justice.gov/usao/cac/Pressroom/2013/036.html). Farahi, who operated the Beverly Hills-based New Point Financial Services, Inc. and had a regular radio show on KIRN-AM, admitted bilking investors by falsely promising to purchase corporate bonds backed by the Troubled Asset Relief Program (TARP).
The case against Farahi and Tamman is the result of an investigation by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Bureau of Investigation. The SEC provided substantial assistance during the investigation.
“Today justice was served for Tamman’s attempted massive cover-up of John Farahi’s multi-million dollar Ponzi scheme in which Farahi lied to investors and claimed that he was investing in safe, TARP-backed corporate bonds,’ said Christy Romero, Special Inspector General for TARP (SIGTARP). “Contrary to his claims, Farahi used investors’ funds to bankroll his lavish lifestyle and high-risk trading which resulted in heavy losses for investors and TARP banks. As Farahi’s attorney, Tamman was Farahi’s enabler, falsifying and backdating business documents to hide the fraud, and as a result, Tamman will spend the next seven years in federal prison. If you exploit TARP or otherwise help others defraud taxpayers’ TARP investments, you’ll be held accountable by SIGTARP and our law enforcement partners and be forced to answer for your transgressions.”
The SEC filed a federal civil complaint alleging violations of the federal securities laws against Farahi and others in January 2010. The lawsuit alleged that Farahi and others conducted an unregistered offering fraud aimed at Iranian-Americans in the Los Angeles area (see: http://www.sec.gov/news/press/2010/2010-3.htm). The SEC subsequently obtained a permanent injunction, as well as orders freezing Farahi’s and New Point’s assets and appointing a receiver over New Point Financial Services.
Release No. 13-117
Attorney Paul W. Bergrin Sentenced to Life in Prison for Murder Conspiracy and Racketeering OffensesRead the Press Release
NEWARK, N.J. – A New Jersey lawyer who turned his law firm and related corporations into a racketeering enterprise was sentenced today in Newark federal court to life in prison, U.S. Attorney Paul J. Fishman announced.
Paul W. Bergrin, 57, of Nutley, N.J., was convicted in March 2013, following a jury trial, of all 23 counts on which he was tried – including conspiracy to murder a witness and other racketeering, cocaine and prostitution offenses.
The jury returned the verdict after two months of trial before U.S. District Judge Dennis M. Cavanaugh, who also imposed sentence today.
“Paul Bergrin’s betrayal of the people he once served, the court and the rule of law was stunning,” said U.S. Attorney Fishman. “Each criminal choice he made was a step toward life in prison. After all he did to elude punishment for his clients - including orchestrating the murder of witnesses - he could not avoid facing justice for his own crimes.”
According to documents filed in this case, evidence at trial and statements made in court: Through his law firm, Bergrin conspired to tamper with witnesses, distribute cocaine and facilitate drug trafficking, prostitution and bribery, among other things. He conspired to murder witnesses to protect the drug trafficking enterprise, one of whom was shot to death to prevent him from testifying in court.
As a result of his conviction, Bergrin faced a mandatory sentence of life in prison on each of the following counts: count three, violent crimes in aid of racketeering; count 12, conspiring to murder a federal witness to prevent his testimony at an official proceeding; and count 13, aiding and abetting the murder of a federal witness to prevent testimony at an official proceeding. He also faced a maximum term of life in prison on three other counts.
U.S. Attorney Fishman credited special agents of 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 the Drug Enforcement Administration’s New Jersey Division – under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Deputy Chief John Gay and Assistant U.S. Attorney Joseph N. Minish of the U.S. Attorney’s Office Criminal Division; and Steven Sanders of the office’s Appeals Division in Newark.13-384
Defense counsel: Pro se; Lawrence Lustberg, Bruce Levy, Amanda Protess Esqs. (standby), Newark
Albuquerque Man Sentenced to 17.5 Years in Federal Prison for Robbing Five Businesses During Three-Month Crime SpreeRead the Press Release
ALBUQUERQUE – Julio Francia, 23, of Albuquerque, N. M., was sentenced this afternoon to 17.5 years in federal prison followed by three years of supervised release for robbing five Albuquerque-area businesses and for carrying a firearm during a crime of violence. Francia’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, 2nd Judicial District Attorney Kari E. Brandenburg, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Allen Banks of the Albuquerque Police Department.
Francia was arrested on state charges on Oct. 17, 2012, on allegations that he committed an armed robbery at a Subway Restaurant located at 8520 Montgomery Blvd. NE in Albuquerque. After Francia admitted committing a number of armed robberies at commercial businesses in Albuquerque, including the Subway Restaurant, between Aug. 2012 and Oct. 2012, the 2nd Judicial District Attorney’s Office charged Francia with numerous armed robbery offenses.
On Nov. 27, 2012, Francia was federally indicted and charged with violating the Hobbs Act by robbing a business in interstate commerce and using a firearm during a crime of violence. The charges in the indictment arose out of the armed robbery of the Subway Restaurant on Oct. 17, 2012. On Feb 6, 2013, Francia was transferred from state custody to federal custody to face the charges in the federal indictment and the state charges against Francia subsequently were dismissed.
On May 22, 2013, Francia pleaded guilty to the indictment charging him with a Hobbs Act robbery at the Subway Restaurant on Oct. 17, 2012, and using a firearm during a crime of violence on that same day. Francia also entered a guilty plea to a four-count felony information charging him with committing Hobbs Act armed robberies at the following Albuquerque businesses: (1) the Auto Zone, located at 12904 Lomas Blvd., NE, on Aug. 15, 2012; (2) the Auto Zone, located at 8820 Montgomery Blvd., NE, on Sept. 21, 2012; (3) the Taco Bell, located at 320 Eubank Blvd. NE, on Oct. 3, 2012; and (4) the Twister’s Restaurant, located at 740 Juan Tabo NE, on Oct. 4, 2012.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. It is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Alabama State Employee Sentenced for Providing Names in Identity Theft SchemeRead the Press Release
Lea’Tice Phillips, of Montgomery County, Ala., was sentenced to serve 94 months of incarceration today, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. Phillips was also ordered to pay restitution of $567,631. Phillips had pleaded guilty to one count of wire fraud and one count of aggravated identity theft on May 30, 2013, for her role in a stolen identity refund fraud scheme.
According to the court documents, Lea’Tice Phillips worked for an Alabama state agency and had access to state databases that contained forms of identification of individuals. Between October 2009 and April 2012, Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain identification which she then sent to Djonret using her state email. Djonret and others used the stolen identification to file false tax returns, mostly from Djonret’s residence in Montgomery. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. They recruited individuals to purchase prepaid debit cards on their behalf. Fraudulently obtained tax refunds were directed to the prepaid debit cards that Djonret and her co-conspirators used to obtain the proceeds. Some of the prepaid debit cards were in the name of Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds. Antoinette Djonret was sentenced to serve 12 years in prison for her role in the conspiracy.
The case was investigated by Special Agents of the Internal Revenue Service (IRS) - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
20 September 2013
Western Washington Tribes Receive more than $10 Million in DOJ Grants for Enhanced Law EnforcementRead the Press Release
The U.S. Department of Justice this week awarded more than $10 million to eight Indian Tribes in Western Washington to enhance services to crime victims and improve criminal justice in the tribal communities, announced U.S. Attorney Jenny A. Durkan. The grant awards under various Justice Department programs are tailored to the needs identified by each tribe.
“We look forward to continuing our partnership with the Tribes, and are confident these grants will help increase the public safety of each community,” said U.S. Attorney Jenny A. Durkan. “One size does not fit all, and I am pleased these grants will address specific needs on Tribal lands.”
The grants include nearly $2.6 million for crime issues related to alcohol and substance abuse:
- Swinomish Tribe ($349,379)
- Port Gamble S’Klallam Tribe ($460,105)
- Confederated Tribes of the Chehalis Reservation ($407,108)
- Puyallup Tribe of Indians ($628,807)
- Squaxin Island Tribe ($750,000)
Two tribal communities were awarded grants to improve the investigation and prosecution of child abuse cases, especially cases of child sexual abuse:- Tulalip Tribes of Washington ($383,283)
- Puyallup Tribe of Indians ($369,805)
Five tribes received significant funding to combat violence against women:
- Confederated Tribes of the Chehalis Nation ($307,583)
- Cowlitz Indian Tribe ($711,000)
- Puyallup Tribe of Indians ($100,000)
- Swinomish Tribal Community ($700,000)
- Tulalip Tribes of Washington ($886,889)
In addition, tribes also received funding for their community oriented policing efforts providing for tribal police, training and equipment. The total grant awards to each of the seven tribes are listed here:
Confederated Tribes of the Chehalis Reservation
1,125,991
Cowlitz Indian Tribe
711,000
1,032,932
Puyallup Tribal Council
2,586,479
Quileute Tribe
784,446
Squaxin Indian Tribe
824,445
Swinomish Indian Tribal Community
1,049,379
Tulalip Tribes of Washington
2,068,058
Total
10,182,730
A listing of all the grant awards is available here: http://www.justice.gov/tribal/docs/ctas-award-list-2013.pdf
Western Minnesota Man Pleads Guilty to Possessing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 62-year-old man from the western Minnesota community of Graceville pleaded guilty to possessing more than 600 images of child pornography. John Rolland Parent pleaded guilty to one count of possession of child pornography. Parent, who was indicted on May 7, 2013, entered his plea before United States District Judge John R. Tunheim.
In his plea agreement, Parent admitted that on June 12, 2013, he possessed images that contained visual depictions of minors engaged in sexually explicit conduct. Parent admitted the images had been obtained via a computer. Authorities found the items on computers, hard drives, and other digital media that they seized during the execution of a state search warrant at Parent’s residence. Numerous images portrayed sadistic or masochistic conduct or other depictions of violence.
For his crime, Parent faces a potential maximum penalty of 20 years in prison, with a mandatory minimum penalty of ten years. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minnesota Internet Crimes Against Children Task Force, the Big Stone County Sheriff’s Office, the Federal Bureau of Investigation, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.
Possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Wallingford Woman Charged with Producing and Distributing Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Rhonda M. Glover, Acting Special Agent in Charge of the Federal Bureau of Investigation, today announced that ANGELA D. MARTIN, also known as Angela Haussmann, 29, of Wallingford, was arrested yesterday and charged by federal criminal complaint with production, distribution, and possession of child pornography.
The criminal complaint alleges that, in August 2013, MARTIN sexually abused a female child, filmed the abuse with her cell phone, and then emailed the video to another individual in California. The victim was approximately three years old at the time of the abuse.
In addition, it is alleged that between August 2013 and September 19, 2013, MARTIN possessed and distributed other child pornography that she received from other individuals.
The complaint further alleges that MARTIN is a registered sex offender as the result of a prior felony conviction in the state of Connecticut for second degree sexual assault of a minor.
MARTIN appeared today before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained.
If convicted of the charge of production of child pornography, MARTIN faces a mandatory minimum term of imprisonment of 25 years, a maximum term of imprisonment of 50 years and a fine of up to $250,000. If convicted of the charge of distribution of child pornography, MARTIN faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 40 years and a fine of up to $250,000. If convicted of the charge of possession of child pornography, MARTIN faces a mandatory minimum term of imprisonment of 10 years, a maximum term of imprisonment of 20 years and a fine of up to $250,000. The penalties in this matter are enhanced based on MARTIN’s criminal history.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, the Wallingford Police Department, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Neeraj Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Vancouver Man Sentenced to Prison for Trafficking in Counterfeit AirbagsRead the Press Release
A Vancouver, Washington man who imported and sold hundreds of counterfeit vehicle airbags on eBay and Craigslist, was sentenced today in U.S. District Court in Tacoma to six months in prison, announced U.S. Attorney Jenny A. Durkan. VITALIY YAREMKIV, 25, pleaded guilty in May 2013 to conspiracy to traffic in counterfeit goods. YAREMKIV sold approximately 960 counterfeit vehicle airbags that he imported from China, Hong Kong and Taiwan. These counterfeit airbags can be extremely dangerous and during testing have been known to catch fire, spew hazardous debris, and separate completely from the vehicle. U.S. District Judge Ronald B. Leighton imposed three years of supervised release.
According to the statement of facts in the plea agreement, YAREMKIV operated a business, Vital Auto Parts and Sales, out of his Vancouver home. He allegedly imported counterfeit Honda, Subaru and Toyota airbags from sources in China and elsewhere, and sold them over the internet representing them as the genuine product. YAREMKIV sold at least 964 of the counterfeit airbags via eBay with a sales total of $137,243. YAREMKIV sold individual Honda airbags for an asking price of $110. Investigators believe that many of the airbags are sold to independent garages who install them in vehicles believing they have purchased a genuine airbag. YAREMKIV has agreed to pay restitution of $137,243 to Honda Motors Corporation and Toyota Motors Corporation.
In asking for a prison sentence, prosecutors wrote to the court, “The National Highway Transportation Safety Administration (NHTSA) has tested some counterfeit airbags resulting in alarming failures. Driving a car equipped with a counterfeit airbag may be more dangerous than driving a car with no airbag at all in light of the potential for explosive shrapnel being thrown at the driver or passenger whose airbag fails…..While law enforcement has seized some of these airbags and has continued to attempt to identify others that entered the stream of commerce, identifying vehicles that are equipped with Mr. Yaremkiv’s airbags in the used (and often salvage) car market is extremely difficult. Some may continue to be installed in cars used on a daily basis for an indefinite amount of time presenting a continued risk of injury to unwary used car buyers.”
Information for consumers regarding counterfeit airbags is available here: http://www.safercar.gov/.
The case was investigated by the FBI and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Norman Barbosa.
United States Attorney John Walsh Alerts Public to Beware of Disaster Fraud in Aftermath of Recent FloodsRead the Press Release
DENVER – United States Attorney John Walsh today urged Colorado residents and businesses to be aware of the potential for fraud in the aftermath of the recent devastating floods. The United States Attorney’s Office, along with the Department of Justice, the FBI, and the National Center for Disaster Fraud (NCDF), wants to remind the public that anyone can report fraud involving disaster relief operations through the National Disaster Fraud Hotline toll free at (866) 720-5721 or the Disaster Fraud e-mail at [email protected] The telephone line is staffed by a live operator 24 hours a day, seven days a week.
“Victims and donors alike should use care in deciding who to do business with,” said U.S. Attorney John Walsh. “Unfortunately there are some who prey on the vulnerable or desperate. Before giving money to an organization, do your research to ensure it is a legitimate relief agency. Also, before you hire a contractor, do your research to ensure that they are a legitimate, reputable business.”
U.S. Attorney Walsh also noted that scams come in all forms - email, phone calls and mail solicitations. He urges Coloradans to be vigilant and cautious before giving anyone your personal information.Before making a donation of any kind, consumers should adhere to certain guidelines, including the following:
* Do not respond to any unsolicited (spam) incoming emails, and do not click on links contained within those messages, as they may contain computer viruses.
* Be skeptical of individuals representing themselves as surviving victims or officials asking for donations via email or social networking sites.
* Beware of organizations with copycat names similar to but not exactly the same as those of reputable charities.
* Rather than following a purported link to a website, verify the existence and legitimacy of non-profit organizations by utilizing various internet-based resources.
* Be cautious of emails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
* To ensure that contributions are received and used for intended purposes, make donations directly to known organizations rather than relying on others to make the donation on your behalf.
* Do not be pressured into making contributions; reputable charities do not use coercive tactics. * Be aware of who you are dealing with when providing your personal and financial information. Do not give your personal or financial information to anyone who solicits contributions. Providing such information may compromise your identity and make you vulnerable to identity theft.
* Avoid cash donations if possible. Pay by debit or credit card, or write a check directly to the charity. Do not make checks payable to individuals.
* Legitimate charities do not normally solicit donations via money transfer services.
* Most legitimate charities maintain websites ending in .org rather than .com.Before hiring a company to repair or restore your property, check with the numerous entities that track the legitimacy of those companies, including the Better Business Bureau. Rely on companies with a track record, not those that established themselves overnight.
If you believe you have been a victim of fraud by a person or organization soliciting relief funds on behalf of flood victims, if you discover fraudulent disaster relief claims submitted by a person or organization, or if you know about or suspect fraud involving disaster relief operations, you can report it through the National Disaster Fraud Hotline, toll free, at (866) 720-5721 or the Disaster Fraud e-mail at [email protected]. The telephone line is staffed by a live operator 24 hours a day, seven days a week.
You can also report suspicious e-mail solicitations or fraudulent websites to the FBI’s Internet Crime Complaint Center at www.ic3.gov.
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U.S. Department of Justice Announces Montana Indian Tribes Awarded Public Safety GrantsRead the Press Release
United States Attorney Michael Cotter announced today the U.S. Department of Justice awarded public safety grants to two Montana Indian tribes totaling almost $1.8 million.
The Confederated Salish and Kootenai Tribes have been granted $721,266. Another Montana tribe, the Chippewa Cree Tribe, has been granted $1,094,574.
We're increasing our efforts to support tribal communities and to build and sustain tribal justice systems," stated U.S. Attorney Michael Cotter.
U.S. Attorney Cotter attended a meeting of Attorney General Eric Holder's Native American Issues Subcommittee in Celilo Village, Oregon, where the grants were announced. The Justice Department awarded 192 grants to 110 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designated non-profits. The grants will provide more than $90 million to enhance law enforcement practices and sustain crime prevention efforts.
The grant to the Confederated Salish and Kootenai Tribes was awarded from the Alcohol and Substance Abuse Program overseen by the Office of Justice Programs. Tribes were encouraged to apply for funds to enhance tribal justice systems and support alcohol and substance abuse programs.
The Chippewa Cree tribe received a Public Safety and Community Policing (COPS) grant, a strategic planning grant, and a Violence Against Women Tribal Governments Program grant targeted to help decrease the incidence of violent crime against Indian women and to ensure that perpetrators of violent crimes committed against Indian women are held accountable.
Violence against native women continues at alarming rates and children in Indian country encounter violence far too often," said U.S. Attorney Michael Cotter.
Two Singapore Men Sentenced in Connection with Plot to Illegally Export Military AntennasRead the Press Release
WASHINGTON –Lim Kow Seng, also known as “Eric Lim” and Hia Soo Gan Benson, also known as “Benson Hia,” were sentenced today in federal court in the District of Columbia to serve 37 and 34 months in prison, respectively, for the unlawful export of 55 military antennas from the United States to Singapore and Hong Kong, in violation of the Arms Export Control Act. Hia and Seng entered guilty pleas on June 26, 2013, to conspiracy to defraud the United States by dishonest means.
The sentence was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John P. Carlin, Acting Assistant Attorney General for National Security; James Dinkins, Executive Associate Director of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations; Andrew McCabe, Acting Executive Assistant Director of the FBI’s National Security Branch; and Eric L. Hirschhorn, Under Secretary for Industry and Security at the Commerce Department.
Seng, 44, and Hia, 46, both of Singapore, were sentenced this afternoon before the Honorable Judge Emmett G. Sullivan. They have been detained since their provisional arrest in Singapore in October of 2011. According to court documents filed in this case, Hia and Seng conspired to defraud the United States by causing a total of 55 cavity-backed spiral antennas and biconical antennas to be illegally exported from a Massachusetts company to Singapore and Hong Kong without the required State Department license. These military antennas are controlled for export as U.S. munitions and are used in airborne and shipboard environments.
Seng and Hia, among other things, conspired to undervalue the antennas to circumvent U.S. regulations on the filing of shipper’s export declarations to the U.S. government. They also allegedly used false names and front companies to obtain the antennas illegally from the United States.
Corezing International, a company based in Singapore, was also charged in the District of Columbia in connection with the export of these particular military antennas to Singapore and Hong Kong. Corezing and its principals have also been charged in connection with the export of 6,000 radio frequency modules from the United States to Iran via Singapore, some of which were later found in Improvised Explosive Devices in Iraq. Seng and Hia pled guilty to the sole charge on which they were extradited from Singapore.
This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the State Department’s Directorate of Defense Trade Controls.
The prosecution is being handled by Assistant U.S. Attorney Anthony Asuncion of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.
13-329Two Phoenix Area Men Convicted in Prison Drug ConspiracyRead the Press Release
PHOENIX – Roman Borquez, 46, of Peoria, Ariz., and Ralph Moreno, 52, of Phoenix, Ariz., were found guilty by a federal jury of drug trafficking offenses including conspiracy to possess with intent to distribute methamphetamine. Borquez was also convicted of conspiring to distribute heroin. Moreno was also convicted of possessing firearm after having been convicted of a felony offense. The case was tried before U.S. District Court Judge Roslyn O. Silver from Sept. 4-18, 2013. The defendants are being held after trial and sentencing is set before Judge Silveron Dec. 16, 2013.
U.S. Attorney John S. Leonardo stated, “It remains a priority of the U.S. Attorney’s Office to prosecute dangerous drug traffickers, we will continue to investigate and prosecute these offenders in order to protect our community.”
The evidence at trial showed that in 2010, Borquez, a member of the Arizona Mexican Mafia prison gang, was serving time in federal prison when he conspired with others in Arizona to send heroin to him. Borquez’ associates hid the heroin inside two greeting cards that were intercepted at the prison where he was being housed.
The evidence further showed that Borquez, while in prison, arranged for the sale of methamphetamine with a Hawaii-based drug dealer. In 2011, a Phoenix-based FBI Violent Street Gang Task Force comprised of federal and state investigators infiltrated Borquez’ drug trafficking organization and seized three pounds of methamphetamine During a search of Moreno’s residence, agents discovered an AR-15 rifle, a .40 caliber handgun, a small amount of marijuana and over $75,000 in cash. Moreno was prohibited from possessing either weapon because of two prior felony convictions for drug trafficking.
A conviction for conspiracy to possess with intent to distribute methamphetamine carries a maximum penalty of life in prison, a $10,000,000 fine or both. A conviction for conspiracy to possess with intent to distribute a detectable amount of heroin carries a maximum penalty of 20 years in prison, a $1,000,000 fine or both. A conviction for felon in possession of a firearm carries a maximum penalty of 10 years in prison, a $250,000 fine or both.
The investigation in this case was conducted by the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Postal Inspection Service; Federal Bureau of Prisons; Arizona Department of Corrections; Phoenix Police Department; and Arizona Department of Public Safety. The prosecution is being handled by the U.S. Attorney’s Office, District of Arizona, Phoenix.
CASE NUMBER: CR 11-1865-PHX-ROS
RELEASE NUMBER: 2013-076_Borquez_etalFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Texas Refinery Will Pay $8.75 Million for Failing to Comply with Enforcement Settlement to Resolve Air ViolationsRead the Press Release
Total Petrochemical USA Inc. (Total) will pay an $8.75 million penalty for failing to comply with the terms of a 2007 settlement with the United States that resolved alleged violations of the Clean Air Act at its Port Arthur, Texas, refinery, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today.
Between 2007 and 2011, Total violated numerous requirements of the 2007 settlement, including failing to comply with emissions limits for benzene, a harmful air pollutant. The company also failed to perform corrective actions or to analyze the cause of over 70 incidents involving emissions of hazardous gases through flaring. EPA discovered the violations through a review of the quarterly compliance reports required by the 2007 settlement.
The 2007 settlement required that Total pay a $2.9 million penalty and make upgrades to its facility to reduce emissions of harmful air pollution to resolve Clean Air Act violations. The 2007 settlement further required that Total upgrade leak detection and repair practices and implement programs to minimize flaring, which can result in emissions of gases that can cause serious respiratory problems and exacerbate asthma.
“Total failed repeatedly to adhere to obligations they willingly took on when they settled with the United States in 2007. These are court-enforceable requirements for the protection of the health of their Texas neighbors, not simply the cost of doing business,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Companies that settle with the United States must meet their obligations or there will be consequences, as this significant penalty demonstrates.”
“EPA has been working with local officials, community leaders and organizers, and local industry to improve living conditions for residents of Port Arthur. These efforts have already produced results, especially with the opening of the Westside Health Clinic,” said EPA Regional Administrator Ron Curry. “Clean air is essential for keeping communities healthy. EPA will continue its efforts to hold companies accountable for violating our nation’s environmental laws and meeting our enforcement orders and decrees.”
In addition to the penalty, today’s action extends the requirement that Total comply with a lower benzene emissions limit for an additional two years. The enhanced limit for benzene, which is 30 percent lower than the federal limit, was initially required by the 2007 settlement. In addition, Total must hire a third-party to audit its compliance under the settlement and must implement a company task force to monitor its compliance.
Reducing illegal emissions of toxic air pollutants at facilities that have a significant impact on air quality and health in communities is one of EPA’s national enforcement priorities.
Exposure to high concentrations of sulfur dioxide (SO2), a key pollutant emitted from refineries, can affect breathing and aggravate existing respiratory and cardiovascular disease, particularly in children and in the elderly. SO2 is converted in the air into fine particulate matter, which can harm health through decreased lung function, aggravated asthma, and premature death in people with heart or lung disease. Chronic exposure to benzene, a volatile organic compound which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Total is a refiner and petrochemical manufacturer whose products include automotive fuels, lubricants and liquefied petroleum gas Total processes approximately 230,000 barrels per day of crude oil.
The settlement, lodged in the U.S. District Court for the Eastern District of Texas, is subject to a 30-day public comment period and court approval. The settlement will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html . The claims resolved by this settlement are only allegations and there has been no determination of liability.
Tax Fraud Scheme Results in Four Convictions and one Guilty PleaRead the Press Release
PANAMA CITY, FLORIDA – Four defendants were convicted by a federal jury in Panama City yesterday, and a fifth defendant entered a guilty plea during the trial on a tax fraud scheme. Wilson Calle, 55, and Angel Done, 54, both of New York, New York, as well as Blaine Johnston, 62, of Marianna, Florida, were convicted by a federal jury of conspiring to defraud the United States by filing, or assisting others in filing, false federal income tax returns. The tax returns submitted by these defendants sought large refunds, to which the filers were not entitled. In addition to the conspiracy count, the jury found Calle, Done, and Johnston guilty on multiple counts of filing false federal income tax returns. Wilfredo Rodriguez, 53, of Miami, Florida, was also convicted by the jury of filing a false federal income tax return seeking a false and fraudulent refund. During the trial, a fifth defendant, Diana Gonzalez, 63, of Miami, Florida, pled guilty to conspiring to defraud the United States by filing, or assisting others in filing, false federal income tax returns seeking false and fraudulent refunds. The verdicts and guilty plea were announced by Pamela C. Marsh, the United States Attorney for the Northern District of Florida.
The case was prosecuted by Assistant U.S. Attorneys J. Ryan Love and Randall J. Hensel.
At trial, the government presented evidence that between 2008 and 2009, the defendants prepared and filed fraudulent tax returns seeking more than $19 million in refunds. By using an obscure IRS Form 1099-OID, the defendants falsely reported that defendants’ or their clients’ creditors had withheld large amounts of federal income taxes and paid this money over to the IRS. In doing so, the defendants used debts owed by them and their clients to mortgage companies and various other entities and reported those debts to the IRS as income tax withholdings in an attempt to have the IRS pay off their debts. As a result of the fraudulently overstated income tax withholding, the tax returns that were filed on behalf of the defendants or their clients claimed large refunds to which they were not entitled.
Calle, Done, and Johnston each face maximum sentences of ten years in prison with regard to the conspiracy charge and five years on each count of filing, or aiding others in filing, false tax returns. Gonzalez faces a maximum sentence of ten years in prison on the charge of conspiring to file, or aiding others in filing, false tax returns. Rodriguez faces a maximum sentence of five years in prison for filing a false tax return.
In announcing the verdict and the guilty plea, U.S. Attorney Marsh explained: “Each year, millions of honest hard-working Americans pay their taxes and file accurate returns with the IRS. By stark contrast, these defendants concocted a fictitious tax scheme in an effort to steal millions of dollars from the government. My office will continue to work diligently with the Internal Revenue Service to identify these thieves and bring them to justice.”
IRS Criminal Investigation Special Agents in Charge James D. Robnett (Tampa, Florida) and Shantelle P. Kitchen (Newark, New Jersey) joined in stating: “In today’s economic environment it is more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe. This case should make the public aware that promoting and participating in frivolous tax schemes is a crime, corrosive to the foundation of the federal income tax system, which the IRS will continue to aggressively pursue with its law enforcement partners.”
Each defendant is scheduled to be sentenced on December 18, 2013, before United States District Judge Richard Smoak.Surgery Center Owner Pleads Guilty to Federal Charges, Admits Paying Physicians Bribes and Kickbacks for Patient ReferralsRead the Press Release
CHICAGO ― The owner of multiple area outpatient surgery centers pleaded guilty today to federal fraud and tax charges, admitting that he paid bribes and kickbacks to physicians for patient referrals and impeded the Internal Revenue Service in the collection of federal income taxes. The defendant, RAGHUVEER NAYAK, was scheduled to stand trial starting Oct. 1 in U.S. District Court, but the trial was stricken following today’s guilty plea.
Nayak, 58, of Oak Brook, entered a conditional plea of guilty to one count of mail fraud and also pleaded guilty to one count of impeding the IRS. The conditional plea allows Nayak to appeal a legal issue pertaining to the mail fraud count and, if he prevails, he may withdraw his plea to that count alone. U.S. District Judge Robert Gettleman scheduled a sentencing hearing for Jan. 22-23, 2014.
Nayak faces a maximum sentence of 20 years in prison on the mail fraud count and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain, whichever is greater, as well as mandatory restitution. Impeding the IRS carries a three-year maximum prison term and a $250,000 fine. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
According to a written plea agreement, Nayak opened Rogers Park One-Day Surgery Center in about 1998, and he opened Lakeshore Surgery Center about seven years later. Both facilities are privately-owned one-day surgery centers, where surgeons performed outpatient surgeries not requiring an overnight stay, ranging from urological to podiatric to orthopedic procedures. Nayak’s profits depended upon doctors bringing patients for surgery to his outpatient facilities, rather than to a traditional hospital, or to one of the many other surgery centers in the Chicago area.
As part of the scheme, Nayak paid, or offered to pay, physicians money in exchange for referring patients to or conducting surgeries at Rogers Park and Lakeshore, rather than at a hospital or competing surgery center. Nayak paid some physicians cash in exchange for patients they brought or referred to Rogers Park and Lakeshore, in amounts that reflected the volume of surgeries they conducted at the surgery centers or the number of patients they referred there. Nayak paid these physicians cash in exchange for referrals to his surgery centers, intending that the money would influence their medical motives and further intending that the physicians would not disclose the cash payments to their patients. Nayak did not intend to cause the medical patients any physical or monetary harm by his cash payments to their physicians.
Nayak admitted that he paid one physician, a podiatrist, approximately $200-300 in cash per surgery he conducted at Rogers Park or Lakeshore, in addition to the professional fees the doctor billed separately to his patients’ insurance companies. Nayak gave the podiatrist the cash when they were alone, including at the doctor’s office, and Nayak acknowledged that the doctor did not disclose the cash payments to his patients. In total, this physician conducted approximately 142 surgeries at Rogers Park between 2004 and 2009, for which Nayak paid the doctor cash.
In impeding the IRS, Nayak admitted that he paid physicians money in exchange for referrals of patients the physicians had made or would make to Rogers Park and Lakeshore. Nayak paid these physicians in cash, in an attempt to actively conceal the payments, knowing that the natural consequence would be a lack of documentation of the cash payments in Rogers Park’s and Lakeshore’s business records if the IRS were to audit or question the transactions. Nayak did not disclose the cash payments to his bookkeeper and outside tax preparer, and he did not file, issue, or cause to be issued Forms 1099 for physicians to whom he paid cash in exchange for patient referrals for tax years 2002 through 2010. Nayak knew that a foreseeable consequence of his actions was that the federal income tax returns filed by the physicians to whom he made cash payments would be false. Nayak also instructed the podiatrist to not deposit the cash Nayak gave him in his bank account, and to not report those cash payments on his federal tax returns, intending that the doctor would file federal tax returns that would be false.
The government also contends, but Nayak disputes, that in approximately 2002, he engaged in a scheme to obtain cash, including to make cash payments to physicians in exchange for patient referrals, by giving Individual A more than $2 million in checks drawn on Nayak’s medical facilities from about 2002 through December 2008. In exchange, at Nayak’s direction, Individual A gave Nayak cash in an amount equal to approximately 70 percent of the value of the checks that he gave Individual A. As part of this scheme, Nayak hid the true purpose of the checks that he provided to Individual A by indicating to his tax preparer that the checks to Individual A were for advertising, and should be treated as advertising expenses on the tax returns that Nayak signed and caused to be filed for himself and for his facilities.
In addition to those two facilities, Nayak owned and/or controlled the following health care-related businesses in Illinois and Indiana: Lakeside Surgery Center LLC, Merillville Plaza Surgery Center LLC, Lincoln Park Open MRI, Delaware Place MRI LLC, Paulina Anesthesia, Inc., Illiana Anesthesia, Western Touhy Anesthesia, Inc., and Division Medical Diagnostics, Inc., according to the indictment.
The government is being represented by Assistant U.S. Attorneys Carrie Hamilton, Andrianna Kastanek, and Jeffrey Perconte.
Plea Agreement
Staten Island Man Sentenced to 13 Years in Prison for Making False Statements in A Matter Involving International TerrorismRead the Press Release
Abdel Hameed Shehadeh, a United States citizen and resident of Staten Island, New York, was sentenced to 13 years in prison today in federal court in Brooklyn, New York. In March 2013, Shehadah was convicted at trial of making false statements in a matter involving international terrorism. In addition to the prison term, Shehadeh was sentenced to 3 years of supervised release.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
According to court filings and the evidence introduced at trial, in early 2008, Shehadeh devised a plan to travel to the Federally Administered Tribal Areas of Pakistan in order to join al Qaeda or the Taliban. In furtherance of his plan, on June 13, 2008, Shehadeh flew on a one-way airline ticket from John F. Kennedy International Airport to Islamabad, Pakistan. After he was denied entry by Pakistani officials, Shehadeh told investigators from the FBI’s Joint Terrorism Task Force (“JTTF”) that he had traveled to Pakistan in order to visit a university. However, as established by the evidence at trial, the true purpose of Shehadeh’s trip was to wage violent jihad against United States military forces.
Several weeks after he was denied entry to Pakistan, Shehadeh attempted to enlist in the United States Army at the Times Square recruiting station in Manhattan. Shehadeh’s application was denied when it was discovered that he had concealed his prior trip to Pakistan. Though Shehadeh claimed that he had tried to enlist for career opportunities and benefits, as established at trial, his true motive was to commit treason by defecting and fighting alongside insurgent forces overseas.
Over the next several months, in subsequent interviews with members of the JTTF, Shehadah continued to conceal the true purpose of his travel. However, in 2010, Shehadah confessed to FBI agents that he had sought to join a jihadist fighting group. Shehadah was arrested in Honolulu, Hawaii, in October 2010.
“Shehadah was ardently committed to becoming a terrorist and waging violent jihad. He repeatedly attempted to travel overseas to turn against his native country, going so far as to try to join the U.S. military in a treasonous ruse,” stated United States Attorney Lynch. “Due to the tireless work of the FBI and the NYPD, the defendant’s jihadist efforts were detected and foiled. Now, he will spend 13 years in a federal prison.” United States Attorney Lynch thanked the FBI’s New York and Honolulu Field Offices, as well as the New York City Police Department, for their substantial contributions to the multi-year investigation that led to the defendant’s arrest and conviction.
The sentence was imposed by United States District Judge Eric N. Vitaliano.
The government’s case was prosecuted by Assistant United States Attorneys Alexander Solomon, David Sarratt and James Loonam, with the assistance of Trial Attorney Mara Kohn of the Counterterrorism Section of the Department of Justice.
The Defendant
Abdel Hameed Shehadeh
Age: 23
Staten Island, New YorkSt. Louis Man Pleads Guilty to Firearm Offense and Intent to Distribute HeroinRead the Press Release
On September 18, 2013, Corvin N. Howard, a 29-year old St. Louis, Missouri, man pled guilty in federal district court, in East St. Louis, to felon in possession of a firearm and possession with intent to distribute a controlled substance, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Howard is scheduled for sentencing on January 24, 2014, at which time he faces a maximum potential sentence of 10 years’ in prison and a fine of up to $250,000 for the firearm offense and 20 years’ in prison and a fine of up to $1,000,000 for intent to distribute a controlled substance, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100. Howard agreed to forfeit the firearm.
Facts presented in court revealed that on June 8, 2013, police officers in Brooklyn, Illinois, pulled Howard over for a road hazard object observed hanging from underneath his vehicle. While directing Howard to remove the item during the traffic stop, an officer noticed a gun in plain view wedged between the console and the driver’s seat. Howard was arrested and a search of the vehicle recovered a fully loaded 10mm caliber pistol, as well as two bags containing 5.6 grams of heroin. Prior to this incident, Howard had been convicted of a drug distribution felony that was punishable by a term of imprisonment of more than one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brooklyn Police Department. This case is assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
South Holland Man Convicted of Illegally Dealing Hundreds of Guns He Trafficked from Indiana Gun Shows and Sold in ChicagoRead the Press Release
CHICAGO ― A federal jury today convicted a south suburban man of buying hundreds of high-powered firearms at guns shows in Indiana and illegally transporting them to Chicago where he sold them without a federal firearms dealer license. The defendant, DAVID LEWSIBEY, was found guilty by jurors who deliberated several hours yesterday and today after a two-week trial in U.S. District Court.
Lewisbey, 23, of South Holland, was convicted of dealing firearms without a federal license and two counts each of illegally transporting firearms across state lines, and interstate travel to sell guns without a license. He faces maximum penalties of 10 years in prison on each count of interstate travel, and five years in prison on each of the other three counts, and a maximum $250,000 fine on each count. U.S. District Judge Ronald Guzman scheduled sentencing for Dec. 10. The judge must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
“This is one of the most significant gun-trafficking cases we have prosecuted and one that effectively ended a steady supply of potentially lethal weapons from Indiana to Chicago,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois. He announced the verdict with W. Larry Ford, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Chicago Office of the Federal Bureau of Investigation, the Chicago Police Department, and the Illinois State Police assisted in the investigation.
Evidence at the trial showed that between January 2008 and September 2012, Lewisbey, who had no criminal record that disqualified him from buying firearms, routinely traveled to various gun shows in Indiana and purchased duffle bags full of guns that he brought back to Chicago. A government witness testified that he personally observed Lewisbey buy more than 100 firearms, as well as dozens of high-capacity magazines, at Indiana gun shows.
The evidence further showed that during just one 48-hour period, on April 22-23, 2012, Lewisbey bought 43 guns in Indiana and brought them to Chicago, where he delivered them to co-defendant LEVAINE TANKSLEY, who with two other co-defendants, sold them to an individual who was cooperating with ATF agents. All of those guns were recovered by law enforcement.
Tanksley, 28; CHARLES LEMLE, 27; and MICHAEL HALL, 28, all of Chicago, each pleaded guilty to illegally possessing firearms as previously convicted felons, and are awaiting sentencing.
The government was represented by Assistant U.S. Attorneys Christopher Parente and Bethany Biesenthal.
Smith County Man Guilty in Mail Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 42-year-old Tyler, Texas man has pleaded guilty to mail fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Muhammad Sarfraz Ashraf pleaded guilty to an Information charging him with conspiracy to commit mail fraud on Sep. 19, 2013 before U.S. Magistrate Judge John D. Love.According to information presented in court, from Nov. 2010 to June 2011, Ashraf, who owned and operated an automobile repair and maintenance shop in Tyler, conspired with others to cause the Smith County Tax Assessor-Collector’s Office to mail false certificate of title application packages to the Texas Department of Motor Vehicles. The conspiracy was devised in order to obtain fraudulent vehicle titles and unlawfully avoid payment of sales taxes. Specifically, Ashraf would omit the sales price on applications and indicate that the specific transfer was a gift. Ashraf also falsified dates so as to make it appear transactions occurred prior to a change in Texas law regarding when transfers were considered gifts for tax purposes.
Ashraf faces up to 5 years in federal prison and restitution. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Smith County Sheriff’s Office with assistance from the Smith County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney L. Frank Coan, Jr.
Skagit County Felon Sentenced to Long Prison Term for Possessing Guns and Body ArmorRead the Press Release
A felon who most recently lived in the town of Concrete in Skagit County, Washington, was sentenced today in U.S. District Court in Seattle to 10 years in prison and three years of supervised release for illegally possessing guns and body armor, announced U.S. Attorney Jenny A. Durkan. LARRY L. PRESSLEY, 45, has a lengthy criminal history including convictions for conduct including raping an 11-year-old girl and a drive-by shooting where he fired into a home full of children. At sentencing U.S. District Judge Robert S. Lasnik said, “We have seen the havoc that is wreaked by people who should not have firearms.”
According to the plea agreement filed in the case, PRESSLEY was arrested on an unrelated charge on January 12, 2012. On January 20, 2012, law enforcement searched the home where PRESSLEY and his wife, also a felon, lived in Concrete, Washington. Inside the home officers found a bullet proof vest (body armor) and two firearms. One of the firearms had been reported stolen in Whatcom County, Washington. On May 14, 2013, PRESSLEY pleaded guilty to possession of a stolen firearm and being a felon in possession of body armor. PRESSLEY has prior felony convictions for attempted assault (1991), drive-by shooting and illegal possession of a firearm (1999) and assault (2012).
“Larry Pressley has been terrorizing Skagit County for a quarter of a century,” said U.S. Attorney Durkan. “In 1987, he was involved in a brutal beating and robbery. Since then, he has racked up six more convictions for crimes involving violence, guns, or both. It is always troubling when a felon possesses a gun. When a man like Pressley has a gun – a man who actually fired into a home full of children – it is extremely alarming.”
The case was investigated by the FBI, Skagit County Sheriff’s Office, Washington State Department of Corrections, and Sedro Woolley Police Department.
The case was prosecuted by Assistant United States Attorneys Michael Dion and Jill Otake.
Shooter Faces up to Life in Prison on Federal Firearm ConvictionRead the Press Release
LUBBOCK, Texas — Jarrod Charles Gauna, 23, of Lubbock, Texas, pleaded guilty this morning, before U.S. District Judge Sam R. Cummings, to a federal firearm charge stemming from his shooting and injuring an individual during a drug transaction at a convenience store in Lubbock this spring. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Gauna pleaded guilty to one count of using, carrying, and discharging a firearm during and in relation to a drug trafficking crime and aiding and abetting. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Gauna faces a maximum statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine.
According to documents filed in the case, during a methamphetamine trafficking crime on April 20, 2013, Gauna shot and injured an individual with a Sig Sauer 9mm semi-automatic pistol at the Stripes convenience store on 50th Street in Lubbock.
The investigation revealed that Gauna told an individual that he needed to get out of town because he’d shot someone who had stolen methamphetamine from him. Gauna told another individual that he was getting ready to sell one-eighth of an ounce of methamphetamine to individual when that individual grabbed the drugs and ran. Gauna said he fired at the individual and possibly hit him in the foot.
The investigation also revealed that Gauna and others had disposed of the firearm by burying it in cement, but in May 2013, investigators were able to retrieve the firearm from a bucket of cement and identified it as the one used in the shooting.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lubbock Police Department. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
Sacaton Man Sentenced to over 21 Years in Prison for MurderRead the Press Release
PHOENIX – On Sept. 19, 2013, Eddie Eugene Moreno, 33, of Sacaton, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge David G. Campbell to 262 months in prison. Moreno pleaded guilty on April 9, 2013 to second degree murder
On Dec. 24, 2012, Moreno was at his mother’s residence on the Gila River Indian Community, as was the victim. For no apparent reason, Moreno followed the victim into a bedroom and stabbed him with a knife in the chest, just above his heart. The victim died from internal bleeding after his blood vessel had been severed.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Raynette M. Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-00039-PHX-DGC
RELEASE NUMBER: 2013-075_MorenoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Ridgeway Man Sentenced to over 5 Years in Prison for Illegally Possessing 14 FirearmsRead the Press Release
Frederick J. Zirkelbach, 49, of Ridgeway, Illinois, was sentenced today in United States District Court in Benton to a term of 63 months’ imprisonment for being a felon in possession of firearms, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Zirkelbach was charged with illegally possessing 14 firearms in an indictment returned by a Federal Grand Jury on April 2nd. Those firearms were found during the execution of a search warrant at Zirkelbach’s residence by the Illinois State Police on March 9th. Also found were marijuana, methamphetamine, and items for use in growing and manufacturing those illegal drugs. Zirkelbach, who had previously been convicted of two felony offenses which made it illegal under federal law for him to possess firearms or ammunition, pled guilty to the indictment on May 22nd.
In addition to the 63 month term of imprisonment, Zirkelbach was ordered to pay fines and special assessments totaling $400, placed on a 3 year term of supervised release to follow his incarceration, and ordered to forfeit the 14 firearms to the United States.
Zirkelbach has been held without bond since his arrest on the federal charges and was again remanded to the custody of the United States Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the District 19 office of the Illinois State Police and the Carmi office of the Southern Illinois Drug Task Force with the assistance of the Ridgeway Police Department.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Richmond Resident Convicted of Possession of Child PornographyRead the Press Release
OAKLAND – A federal jury convicted David Busby of possessing child pornography yesterday, United States Attorney Melinda Haag announced. The guilty verdict followed a 3-day jury trial before The Honorable Judge Saundra Brown Armstrong, U.S. District Judge.
Evidence at trial showed that on April 20, 2010, a network security analyst detected internet traffic indicative of child pornography on the National Energy Research Scientific Computing Center (NERSC) computer network. The internet traffic was isolated to a single laptop computer being used by David Busby. Busby worked as a computer support employee at the Lawrence Berkeley National Laboratory (LBL), and as a part-time employee at NERSC, which is affiliated with LBL. Busby’s laptop computer and his other work computers were confiscated. Busby made two statements to law enforcement officers shortly after the April 20, 2010 incident, ultimately admitting that he did download child pornography to two of his work computers. Busby said he would store the child pornography for a period of time and then delete the images.
At trial, Busby’s defense claimed that he accidentally downloaded the child pornography onto his computers while trying to access legal child modeling sites. A forensic examination of two of Busby’s computers recovered approximately 1,400 images of child pornography that had been deleted.
Busby, 60 of Richmond, was indicted by a federal grand jury in a superseding Indictment on July 9, 2013. Busby was remanded into custody following his conviction at trial.
Busby’s sentencing hearing is scheduled for December 17, 2013, before Judge Armstrong in Oakland. The maximum statutory penalty for each count, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2), is a minimum term of imprisonment of 10 years, and a maximum term of 20 years, a fine of $250,000, and a life term of supervised release. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Special Assistant U.S. Attorney Kevin Lin, Janice Pagsanjan, and Patty Lau. This prosecution is the result of an investigation by the Department of Energy Office of Inspector General, University of California Police Department, and the Federal Bureau of Investigation.
(Busby superseding indictment )
Rice County Woman Sentenced for Cattle FraudRead the Press Release
WICHITA, KAN. B A Rice County woman has been sentenced to two years federal probation in connection with a cattle fraud scheme, U.S. Attorney Barry Grissom said today. In addition, she was ordered to pay $80,487 in restitution.
Carrie L. Frederick, 37, Sterling, Kan., pleaded guilty to three counts of wire fraud. In her plea, she admitted she embezzled money while she worked for Sellers Farms, Inc., a livestock feeding operation in Lyons, Kan. She caused money to be sent from Sellers Farms’ accounts to Golden Belt Feeders, Inc., of St. John, Kan., to pay debts she owed from trading cattle when she worked for Golden Belt. Three transactions involved a total of more than $211,000 in embezzled funds.
Grissom commended the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.Request for CoverageRead the Press Release
Statewide Youth Courts being honored in federal court ceremony
ALBANY, NY – Monday, September 23, 2013 at 1:00 PM in the Ceremonial Courtroom of the James T. Foley U. S. Courthouse, 445 Broadway, Albany, NY, Youth Courts from across New York State will be recognized for their service to youth. The ceremony will include a mock hearing presented by Youth Court members from the Bethlehem and Colonie Youth Courts. Attending the ceremony will be more than a hundred youth court directors and youths. Dignitaries attending and participating will be the Honorable Judith S. Kaye, former Chief Judge of the New York State Court of Appeals, Honorable Bernard J. Malone, Jr., former Judge of the New York State Supreme Court, Appellate Division, United States District Court Judges, and Albany Mayor Gerald Jennings. The event will be hosted by the Honorable Richard S. Hartunian, United States Attorney for the Northern District of New York. The event is co-sponsored by the New York State Bar Association and the Association of New York State Youth Courts.
Cameras will be allowed in the Ceremonial Courtroom. Press packages will be available at the event.
EVENT: Celebration of New York State Youth Courts
DATE: Monday, September 23, 2013
TIME: 1:00 PM
LOCATION: James T. Foley U. S. Courthouse
Ceremonial Courtroom, 4th Floor
445 Broadway
Albany, NYPittsfield Man Indicted for Production and Possession of Child PornographyRead the Press Release
BOSTON – A Pittsfield man was indicted today in U.S. District Court in Springfield with producing and possessing child pornography.
Jason Gendron, 34, was indicted with sixteen counts of sexual exploitation of minors by producing child pornography and possessing child pornography.
The Indictment alleges that between May 13, 2011 and August 24, 2012, Gendron produced or attempted to produce sixteen files of child pornography. The Indictment further alleges that on July 16, 2013, Gendron possessed other files of child pornography.
If convicted on the production charges, Gendron faces a mandatory minimum of 15 years and a maximum of 30 years in prison, followed by a maximum lifetime of supervised release, and a maximum fine of $250,000 on each count. If convicted on the possession charge, Gendron faces a maximum of 10 years in prison, a maximum lifetime of supervised release, and a maximum fine of $250,000.
United States Attorney Carmen M. Ortiz; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Chief Michael Wynn, of the Pittsfield Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pilot and Passenger from San Francisco Are Sentenced on Drug ConvictionsRead the Press Release
Defendants’ Plane Met by CBP Air Interdiction as it Landed in Lubbock
LUBBOCK, Texas— Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, were each sentenced today, by U.S. District Judge Sam R. Cummings, to 37 months in federal prison. They each pleaded guilty in June 2013 to one count of possession with intent to distribute more than 50 kilograms, but less than 100 kilograms, of marijuana. Judge Cummings ordered that they voluntarily surrender to the Bureau of Prisons next month. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gallanter and Wynne-Wade were arrested after their arrival in Lubbock and charged in a federal criminal complaint. Subsequently, on May 15, 2013, a federal grand jury in Lubbock indicted them for possession with intent to distribute marijuana, hashish and psilocin/psilocybin.
According to documents filed in the case, U.S. Customs and Border Protection (CBP) Air Interdiction agents had received information that that a Piper PA28-181 aircraft, tail number N342TA, was operating under suspicious circumstances, in that the occupants of the aircraft paid for their fuel with cash, fueled their own plane, had a large amount of luggage in the aircraft’s passenger compartment and departed in poor weather conditions. Agents also had information that the aircraft had been rented from the Travis Air Force Base Aero Club in Rio Vista, California, where some individuals renting aircraft were breaking flight rules and procedures.
CBP launched a Citation Interceptor Jet in an attempt to locate the aircraft. On April 17, 2013, at approximately 10:15 p.m., CBP Air Interdiction agents contacted the aircraft to conduct a ramp check as it was about to refuel at Lubbock Aero, a refueling location located at the Lubbock International Airport. Agents identified Gallanter as the pilot and Wynne-Wade as the passenger.
CBP Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork. After a drug detector dog alerted to the presence of drugs, the plane was then searched by federal agents. Agents located six large military-style duffle bags and four smaller bags inside the passenger compartment. Agents opened the bags and located 98 plastic bags of marijuana, four plastic bags of hashish and two plastic bags of psilocin mushrooms. In total, agents located approximately 69 kilograms of marijuana, four kilograms of hashish, and 1.37 kilograms of psilocin mushrooms.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorney Justin Cunningham prosecuted.
Philadelphia Man Charged with Attempted Drug PossessionRead the Press Release
Stephen Davis, 65, of Philadelphia, Pennsylvania, was charged by Indictment, unsealed today, with attempted possession with intent to distribute 100 grams or more of heroin, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of imprisonment for life, a mandatory minimum sentence of ten years, a fine of not greater than $8,000,000, supervised release for eight years, and a $100 special assessment.
The case was investigated by the Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment/ Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Panola County Man Imprisoned for FraudRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Daniel P. McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, announced that:
Bobby Louis Sanford, 54, of Courtland, Mississippi, was sentenced on September 18 by United States District Judge Sharion Aycock, following his plea of guilty in October 2012 to one count of wire fraud and one count of money laundering, both of which charges involved Sanford’s scheme to obtain money from out-of-state victims through a series of fraudulent misrepresentations.
Judge Aycock ordered Sanford to serve 120 months in prison on each count of conviction, to run concurrently, followed by 3 years supervised release. He was also ordered to pay restitution in the amount of $489,395.00.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and was prosecuted by Assistant United States Attorney Robert Mims.
Oregon Woman and Man Sentenced for Conspiracy to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that Jesse Parker and Justin Jones, two 23-year-olds from Bend, Oregon, pled guilty to Conspiracy to Distribute a Controlled Substance and were sentenced on September 16, 2013, by U.S. District Judge Roberto A. Lange.
Parker was sentenced to 2 years of probation. Jones was sentenced to 6 months of custody and 2 years of supervised release. They were each ordered to pay a $1,000 fine and a $100 assessment to the Federal Crime Victims Fund. In addition, the Court ordered forfeiture of a 1997 Toyota automobile and $11,418 in cash.
In early September of 2012, Jones met with a supplier in Oregon and was fronted approximately 10 pounds of marijuana for $1,000 a pound. Jones and a co-defendant agreed to deliver the marijuana to a person in Minnesota. The co-defendant, Jones and Parker travelled to Minnesota. The buyer paid $3,200 a pound for the marijuana and, after setting aside $10,000 of the proceeds to pay the supplier in Oregon, Parker, Jones, and a co-defendant split the remaining $22,000.
On September 15, 2012, a South Dakota Highway Patrol Trooper stopped Jones, Parker, and the co-defendant for speeding in a construction zone. During the traffic stop, the trooper discovered and seized $10,000 in cash that he found in a backpack in the trunk of the car. The trooper also discovered a ledger in the backpack that contained drug dissemination plans for the past eight months. Jones’ name was in the back of the ledger. A thorough search of the vehicle and of Parker’s purse yielded additional cash, psilocybin mushrooms, and various drug paraphernalia.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Jones will report to the U.S. Marshals Service in Portland, Oregon, on or before September 24, 2013, to begin serving his sentence.
Newton County Deputy Sheriff Arrested on Drug Trafficking and Firearms ChargesRead the Press Release
ATLANTA - Darrell Mathis has been charged with distributing marijuana and using and carrying a firearm in furtherance of a drug trafficking offense.
“This defendant used his position as a police officer to openly violate the very laws that he was sworn to uphold,” said United States Attorney Sally Quillian Yates. “Selling marijuana out of his police car while wearing a badge and uniform is outrageous. This case is a reminder that no one is above the law.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Allegations of law enforcement officers actually engaged in the distribution of drugs is a rare occurrence. When those allegations came to the FBI concerning Newton County Deputy Sheriff Mathis, the FBI swiftly took action. The FBI considers such allegations of criminal conduct by law enforcement officers to be a priority investigative matter and we continue to ask the public to contact their nearest FBI field office with information concerning such activities.”Ezell Brown, Newton County Sheriff, stated: “My office is completely cooperating with the FBI in this investigation. This is an embarrassment to the Newton County Sheriff’s Office, as well as law enforcement in general. Mr. Mathis has been placed on administrative leave pending the outcome of the investigation”.
According to United States Attorney Yates, the charges, and other information presented in court: In April 2013, it came to the attention of the Federal Bureau of Investigation that Darrell Mathis, a deputy sheriff with the Newton County Sheriff’s Office, was engaged in distributing marijuana. From May through September 2013, Mathis sold various quantities of marijuana to a confidential source who was working with the FBI, as well as to an undercover FBI agent. On at least two occasions, Mathis sold marijuana from his marked patrol vehicle while wearing his Newton County Sheriff’s Office uniform.
On August 8, 2013, Mathis sold one pound of marijuana to an undercover FBI agent. Following that sale, Mathis and the undercover FBI agent went to meet with another undercover FBI agent to discuss the sale of additional quantities of marijuana. Mathis brought his NCSO badge and his firearm to the meeting. During the meeting, Mathis told the undercover agent, who he believed was a drug dealer, that he was a police officer, pulled out his badge, and stated, "Don't worry, I'm on your side."
Mathis, 40, of Lithonia, Ga., made his initial appearance before Magistrate Judge Russell G. Vineyard and was released on bond. He was arrested on September 19, 2013, when he met with the undercover agent in possession of one pound of marijuana. Mathis has been a sworn deputy sheriff with Newton County since December 2008.
The charge of possession with intent to distribute and distribution of marijuana carries a maximum sentence of five years in prison and a fine of up to $250,000. The charge of using and carrying a firearm during and in relation to a drug trafficking offense carries a maximum term of life in prison and a fine of up to $250,000.
Members of the public are reminded that a criminal complaint contains only allegations. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jamie L. Mickelson is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Newport News Man Receives Life Sentence for MurderRead the Press Release
NEWPORT NEWS, Va. – Aronte D. Jarvis, 25, of Newport News was sentenced today to life in prison for the 2008 murder of Jonte Terry, in the Kmart parking lot located at Oriana Drive in Newport News.
Kathleen M. Kahoe, Acting United States Attorney for the Eastern District of Virginia, Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, and Joseph A. Moore, Interim Chief of Police, Newport News Police Department made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.Jarvis pled guilty on June 24, 2013 to murder in aid of racketeering activity. His girlfriend, Tayvonna Licorish was charged in a superseding indictment with accessory after the fact and misprision of a felony. Her trial is scheduled for November 13, 2013.
According to court documents, Jarvis was a member of a criminal organization known as “Thug Relations,” operating in the Aqueduct Apartments, St. Michael’s Apartments, Warwick Lawns, Warwick Town Homes, Heritage Trace Apartments, Mariner’s Landing Apartments, Sharon Drive and the Savage Drive areas of Newport News. The defendant and others established the power and prestige of the gang through violence, including the murder of Jonte Terry on February 3, 2008. Terry, 22, was shot in the Kmart parking lot located at Oriana Drive in Newport News. The indictment alleged that Terry was killed by Jarvis for the purpose of maintaining his position in “Thug Relations.”
This case was investigated by the Federal Bureau of Investigation, with the assistance of the Newport News Police Department and the Virginia State Police. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel 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.New York Pimp Sentenced in Maryland to 36 Years in Prison for Sex Trafficking and Gun CrimesRead the Press Release
Victims Were Sexually and Physically Assaulted, and Forced to Work as Prostitutes, in Maryland, New York and Elsewhere
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Jeremy Naughton, a/k/a “Jerms Black,” age 32, of Brooklyn, New York, to 36 years in prison, followed by five years of supervised release, for conspiring to commit sex trafficking, four counts of sex trafficking, six counts of transporting an individual to engage in prostitution and using a gun during the conspiracy to commit sex trafficking.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.
“Jeremy Naughton held young women against their will, and used violence, sexual abuse and threats to compel them to work for him as prostitutes,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at the 14 day trial, from January 2009 to the fall of 2010, Naughton and his long-time friend, Charles Anderson, a/k/a “Chuck Corners,” targeted female prostitutes between the ages of 19 and 28 who were working sometimes without a pimp, to force and coerce the women to work for them. They contacted women who posted ads on websites for prostitution services and arranged to meet them in hotel rooms, masquerading as either a prospective client or a generous pimp. Naughton and Anderson then assaulted and threatened the victims with a handgun and/or physical violence to force them to work for them. They stole the women’s cell phones, identification, room keys and personal computers to prevent them from communicating with others, and controlled the victims through physical assault, humiliation, confinement and threats. Naughton transported the women between Maryland, New York and other states to engage in prostitution.For example, in the summer of 2009, Naughton enticed a woman to come to an apartment in Brooklyn, where he imprisoned her and invited others to sexually abuse her. In September of 2009, Naughton forced open the door of a woman’s hotel room, stole her cell phone and identification, and detained her while demanding that she work for him as a prostitute. In October 2009 in his apartment, Naughton displayed a handgun, struck a woman, choked her and forced her to perform sex. Between October 25 and November 11, 2009, Naughton drove two women from his apartment to Oxon Hill where he demanded that they rent hotel rooms for commercial sex. In December of 2009, Naughton violently assaulted a woman in a hotel in Montgomery County, Maryland. On February 8, 2010, Naughton forced a woman from her hotel room in Silver Spring, Maryland, forced her to stay with him at the Brooklyn apartment and sexually abused her before attempting to prostitute her from a hotel in Long Island, New York. In June 2010, Naughton intimidated another woman by snapping the neck of her dog with his hands. In September of 2010, Naughton entered another victim’s hotel room, demanded that she work for him, stole her cell phone and money, and transported her to his apartment, where he forced her to perform oral sex.
Naughton shared his apartment in Brooklyn with Anderson. According to Anderson’s plea agreement, the victims stayed in the Naughton’s room, where Anderson sometimes overheard Naughton physically assaulting them and forcing them to perform sex acts. In the spring of 2010, Anderson agreed to monitor the victims while Naughton traveled for approximately six hours in search of an additional prostitute in Maryland. Anderson helped Naughton locate victims who had escaped. He also knew that Naughton had a .9mm pistol and a larger sub-machine gun in the apartment, along with corresponding ammunition.
Charles Anderson, a/k/a “Chuck Corners,” a/k/a “Yowzer,” age 26, of Brooklyn, New York, previously pleaded guilty to conspiracy to commit sex trafficking and is scheduled to be sentenced on October 15, 2013 at 9:00 a.m.
The case was investigated by the Maryland Child Exploitation Task Force, with assistance from the Maryland Human Trafficking Task Force, which was formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of both task forces include federal, state and local law enforcement. The Maryland Human Trafficking Task Force also includes victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI’s Baltimore, New York, and Las Vegas, Nevada offices and the Montgomery County Police Department for their work in the investigation and thanked the Montgomery County State’s Attorney’s Office, the Kings County (Brooklyn, NY) District Attorney’s Office, the Department of Homeland Security and the New York City Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Mark W. Crooks and Paul E. Budlow, who prosecuted the case.
New York Methodist Hospital Agrees to Implement Compliance Program, to Settle Civil Claims Under the Controlled Substances ActRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced the filing and settlement of a civil action by the United States against New York Methodist Hospital (“NY Methodist”). Under a Consent Judgment, NY Methodist has agreed to implement measures designed to prevent the issuance of NY Methodist prescriptions in violation of the Controlled Substances Act and paid a civil penalty in the amount of $70,000.
In the civil action, the United States alleges that between May 2008 and July 2010, medical residents employed by NY Methodist issued a total of 194 prescriptions for Adderall without a legitimate medical purpose. The medical residents employed by NY Methodist issued the prescriptions on prescription forms bearing the name of NY Methodist. The residents, acting with other individuals, then filled the prescriptions at local pharmacies. The residents themselves consumed some of the Adderall obtained by filling the prescriptions. The remainder of the Adderall was sold, either on Craigslist or in hand to hand transactions. In 2012, in a related criminal prosecution in this district, a former NY Methodist medical resident was convicted for conspiracy to distribute and possess with intent to distribute Adderall.
Adderall, a stimulant that contains amphetamine salts, is classified as a Schedule II controlled substance, because it has a high potential for abuse and, when abused, may lead to severe psychological or physical dependence. Adderall abuse has become a growing problem, particularly among high school and college students. According to figures compiled by the Substance Abuse and Mental Health Services Administration, emergency room visits involving Adderall and similar stimulants nearly tripled from 2005 to 2010. Abuse of Adderall can lead to heart attack, stroke, seizures, hallucinations and paranoia, among other things.
Under the Consent Judgment, NY Methodist will establish a computer database that will contain information concerning each prescription written on NY Methodist prescription paper. This database will make it easier to identify any NY Methodist prescriptions that are issued in violation of the Controlled Substances Act. NY Methodist will also implement a compliance program designed to ensure that NY Methodist complies with the requirements of the Controlled Substances Act regarding the issuance of prescriptions and the prevention of theft and loss of controlled substances and blank prescription forms. In settling the action, NY Methodist did not admit wrongdoing.
“This settlement serves as a wake-up call to hospitals, especially hospitals that employ medical residents,” said United States Attorney Lynch. “Federal law requires that hospitals ensure that their residents and other medical personnel follow all requirements of the Controlled Substances Act, including the requirement that a prescription for a controlled substance such as Adderall be issued only for a legitimate medical purpose. New York Methodist Hospital failed to live up to its obligations and is being held accountable for its conduct. This settlement also serves as a reminder to the community as a whole of the destructive effects of the abuse of Adderall and of the need to make sure that Adderall is used only when there is a legitimate medical need for it, and only under the supervision of a physician.” United States Attorney Lynch thanked the Drug Enforcement Administration’s New York City Tactical Diversion Squad for its assistance. The Tactical Diversion Squad comprises agents and officers from the Drug Enforcement Administration, The New York City Police Department, Town of Orangetown Police Department and Westchester County Police Department.
In January 2012, the United States Attorney’s Office for the Eastern District of New York and the Drug Enforcement Administration, in conjunction with the five district attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department and New York State Police, along with other key federal, state and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Prescription Drug Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement actions against a pharmacy and a pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The United States’ case was handled by Assistant United States Attorney Elliot M. Schachner.
New Haven Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DANIEL HARRISON, 32, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by 20 years of supervised release, for possessing child pornography.
According to court documents and statements made in court, in October 2011, a Connecticut State Police Trooper assigned to the Computer Crimes Unit logged into a publicly available Internet file sharing program and downloaded images and videos of child pornography from a system connected to the network with an Internet Protocol address assigned to HARRISON. On November 28, 2011, law enforcement agents conducted a court-authorized search of HARRISON’s residence and seized several items, including a laptop computer and a video game console. Forensic analysis of HARRISON’s laptop and video game console revealed approximately 4,496 image files and 387 video files of child pornography.
HARRISON was arrested on November 28, 2011. On December 14, 2012, he pleaded guilty to one count of possession of child pornography.
In September 2002, in Connecticut Superior Court in New Haven, HARRISON was convicted of possession of child pornography. As a result of this prior conviction, HARRISON faced a mandatory minimum prison term of 10 years.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the New Haven Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Arrest: Rhamaad Spann, 30, of Brentwood Arrested Yesterday Evening. Attached Indictment Alleges Spann as Shooter in Murder of Innocent Home Owner Killed During A Home Invasion in December, 2009 in Bohemia, NY.Read the Press Release
New Arrest: Rhamaad Spann, 30, Of Brentwood Arrested Yesterday Evening. Attached Indictment Alleges Spann As Shooter In Murder Of Innocent Home Owner Killed During A Home Invasion In December, 2009 In Bohemia, NY.
Natick Man and Revere Woman Indicted for $27 Million Home Health Care Fraud SchemeRead the Press Release
SETPEMBER 20, 2013BOSTON – A Natick man and a Revere woman were charged today for orchestrating a $27 million home health care fraud scheme.
Michael Galatis, 62, was indicted on charges of conspiracy to commit health care fraud, 11 counts of health care fraud, and seven counts of money laundering. Janice Troisi, 64, was indicted on charges of conspiracy to commit health care fraud and 11 counts of health care fraud.
The indictment alleges that, between 2007 and 2012, Galatis and Troisi conspired to have the Medicare program pay for home health care services that, by and large, the beneficiaries did not need nor want. Galatis, a registered nurse, owned and operated At Home VNA (AHVNA), a home health agency located in Waltham. Troisi, also a registered nurse, was the Clinical Director for AHVNA. The Medicare program pays for home health services under specified conditions, including that a physician has certified that the patient is homebound and needs the services and that the services were provided to the Medicare patient. Galatis and Troisi had AHVNA bill Medicare, and Medicare paid AHVNA, millions of dollars for home health services that it should not have paid because the patients were not homebound, did not request nor need the services, and/or skilled services were not provided.
Galatis and Troisi trained AHVNA nurses to recruit Medicare beneficiaries who lived in residential facilities for senior citizens. They trained AHVNA nurses to hold “wellness clinics” where they would take residents’ blood pressure and vital signs. During these “clinics,” Galatis and Troisi trained the nurses to recruit the senior citizens by asking if they were Medicare beneficiaries, and if so, if they would like to have a nurse visit them in their home. Galatis and Troisi trained the nurses to manipulate the patients’ initial assessments to make it appear as though the patients qualified for home health services pursuant to Medicare’s guidelines, when that was often not the case. The home health prescriptions and plans of care were then signed by AHVNA’s paid medical director, who certified that the patients were homebound and in need of skilled services. In fact, the overwhelming majority of AHVNA’s patients were not homebound and did not need home health services: many of the patients worked, took out-of-state vacations, and lived independent lives. AHVNA’s nurses frequently complained to Galatis and Troisi that the patients did not want AHVNA’s services, were not home when they visited and/or were independent and did not need the services. Galatis and Troisi regularly refused the nurses’ requests to discharge the patients, ordering them to keep visiting the patients, or they simply assigned the patient to a new nurse.
Even though the AHVNA medical director certified that the patients were homebound and needed skilled services, he never treated or even met these patients. This was true even after 2011 when a new Medicare regulation required as a condition of payment that the patient have a face-to-face encounter with a physician demonstrating that the home health services were medically necessary. In fact, the patients’ primary care physicians were almost always unaware that the patients were receiving home health services. When some of the patient’s primary care physicians discovered that their patients were receiving home health services, they instructed AHVNA to terminate these services. In many instances, AHVNA continued to bill Medicare notwithstanding these complaints.
During the course of the conspiracy, AHVNA submitted more than $27 million in false and fraudulent claims to Medicare, and Medicare paid AHVNA more than $20 million. The vast majority of these claims should not have been paid because the patients were not homebound, did not need skilled services, and/or were not provided with skilled services
Galatis is separately charged with money laundering. The indictment alleges that Galatis spent a portion of the proceeds from the AHVNA fraud scheme to pay for a $750,000 house in Natick. Galatis withdrew and/or transferred funds from the AHVNA business bank account into his personal bank account, which he immediately used for a down payment for this house and then to pay off a $450,000 mortgage on the property in just 16 months.
If convicted, Galatis faces up to 10 years in prison, three years of supervised release and a $250,000 fine on each count. If convicted, Troisi faces up to 10 years in prison, three years of supervised release and a $250,000 fine on the conspiracy count and each health care fraud count.United States Attorney Carmen M. Ortiz; Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and John Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys David S. Schumacher and Lisa A. Schlatz of Ortiz’s Health Care Fraud Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Montana Man Sentenced to 57 Months Imprisonment for Assault Resulting in Serious Bodily InjuryRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Patrick Allen Pierre, III, age 33, of Pablo, Montana, was sentenced for the crime of Assault Resulting in Serious Bodily Injury after pleading guilty in April, 2013. Senior United States District Court Judge Justin L. Quackenbush sentenced Pierre to a 57-month term of imprisonment and a three-year term of court supervision following release from Federal prison. Pierre has been in Federal custody since May, 2013.
According to information disclosed during the court proceedings, Pierre admitted that, on January 3, 2013, he struck a woman in the head multiple times with the butt of pistol at a residence in Wellpinit, Washington, which is located within the Spokane Indian Reservation. The female victim sustained serious injuries from Pierre's assault, including serious lacerations. She required medical care at a hospital in Spokane, Washington. Pierre is an enrolled member of the Salish and Kootenai Tribes (Flathead Reservation) and the victim is an enrolled member of the Spokane Tribe of Indians.
Michael C. Ormsby said: "Investigating and prosecuting violent crimes that occur on any of the four Indian Reservation within the Eastern District of Washington are a priority for Federal law enforcement agents and the United States Attorney's Office. Serious assaults, like the one that occurred in this case, will not be tolerated. Violent offenses will be investigated thoroughly and the perpetrators will be arrested and prosecuted aggressively."
This investigation was conducted by the Spokane Tribal Police Department and the Federal Bureau of Investigation. This case was prosecuted by Timothy J. Ohms and James A. Goeke, Assistant United States Attorneys for the Eastern District of Washington.
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Mexican Man Pleads Guilty to Re-entering the United States After Having Been Previously RemovedRead the Press Release
Albany, New York - JOSE REYES BLANCO RUTIAGA, age 29, a citizen of Mexico, pled guilty yesterday before Senior United States District Court Judge Lawrence E. Kahn, in Albany, New York to the felony offense of re-entry by a previously removed alien, announced United States Attorney Richard S. Hartunian.
BLANCO RUTIAGA, a citizen of Mexico, was involuntarily removed from the United States to Mexico on March 4, 2010 and again on April 17, 2010. On August 21, 2013, BLANCO RUTIAGA, who did not have permission to re-enter the United States, was encountered by an Immigration and Customs Enforcement officer at the Rensselaer, New York, City Court.
Sentencing for is scheduled for January 22, 2014, at 10:30 a.m. in Albany, New York. BLANCO RUTIAGA faces a maximum sentence of imprisonment of up to 2 years, supervised release of up to 1 year, a fine of up to $250,000, and a special assessment of $100. BLANCO RUTIAGA was detained pending his sentencing.
This matter was investigated by the Department of Homeland Security, Immigration and Customs Enforcement (ICE), Albany, New York.
Members of Atlanta-Based Gang Arrested on Federal Extortion ChargesRead the Press Release
ATLANTA – Five members of an Atlanta-based gang have been charged by a federal grand jury with extortion, drug trafficking, and firearms offenses.
“These defendants, whose calling cards were violence and intimidation, allegedly terrorized local businesses by shaking them down for cash in return for ‘protection,’” said United States Attorney Sally Quillian Yates. “The community does not need this kind of protective service, or any of the other illegal services the defendants allegedly offered.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “This investigation provides a very good look inside the activities of an organized and violent criminal enterprise that focused that violence on the Asian-American community here in the metro Atlanta area. The FBI’s investigation into this gang was extensive and the resulting arrests and indictments are a testament to the hard work of those dedicated individuals who are committed toward making our communities safer.”
According to United States Attorney Yates, the charges, and other information presented in court: Eugene Thomas Chung, a/k/a Yoo Jin Chung (“Chung”), Athith A. Vorasith, a/k/a Andy Vorasith (“Vorasith”), Jong Sung Kim, a/k/a John Kim (“Kim”), Ye El Choi, a/k/a David Choi (“Choi”), and Thomas Jungwon Lee, a/k/a Tommy Lee (“Lee”) are alleged to have conspired together and with others to extort money and property from legitimate business people, using threats, force, violence, and firearms in furtherance of their criminal enterprise.
In about July 2009, Chung and his crew allegedly visited the Gah Bin Korean bar and restaurant in Gwinnett County, Ga., and demanded a monthly share of the restaurant’s profits in exchange for “protection.” Chung promised that, unless a victim made the demanded payments, Chung and his crew would assault this victim, harass his/her customers and employees, and otherwise damage the restaurant. To reinforce their threats, Chung told the victim his crew routinely carried firearms and terrorized other Korean businesses in the community. Over the next four months, Chung and his criminal associates allegedly strong-armed the victim into making monthly protection payments, ranging from $400 to $800.
Shortly after the victim was assaulted, the FBI opened an investigation, and the victim resumed making protection payments under FBI surveillance.
As part of the ongoing undercover investigation, on about March 10, 2010, the victim introduced an undercover agent to Chung, Vorasith, and Lee. During the recorded meeting, Chung explained to the undercover officer that he ran a marijuana distribution business and offered a menu of other illegal services as well, including gambling, extortion, and debt collection. Chung offered to help the undercover officer if he ever needed money collected and stated, “If you need us to beat up anybody, we’re professionals at that.” Chung added that he and his associates were “best at making people crippled,” and said they could also make people “permanently limp, blind, or deaf.” Upon hearing that the undercover officer supposedly was owed $200,000 by a businessman in Houston, Texas, who was behind in payments (and who was actually an undercover officer as well), Chung offered to collect the debt.
On September 17, 2013, a federal grand jury in Atlanta returned a 13-count indictment charging the following individuals with extortion, drug trafficking, and firearms offenses:
•Eugene Thomas Chung, a/k/a Yoo Jin Chung, 39, of Duluth, Ga.; •Athith A. Vorasith, a/k/a Andy Vorasith, 24, of Auburn, Ga.; •Jong Sung Kim, a/k/a John Kim, 48, of Suwanee, Ga.; •Ye El Choi, a/k/a David Choi, 30, of Norcross, Ga.; and
•Thomas Jungwon Lee, a/k/a Tommy Lee, 32, of Duluth, Ga.On September 19, 2013, initial searches and arrests were conducted in connection with an unsealed indictment. The defendants made their initial appearances in the United States District Court for the Northern District of Georgia before Magistrate Judge Russell G. Vineyard.
If convicted, Chung and Vorasith face a maximum sentence of up to life imprisonment; Kim, Choi, and Lee face up to 20 years of imprisonment. They also are potentially subject to fines of over $1,000,000 dollars.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorneys John S. Ghose, Kurt R. Erskine, and Ryan Scott Ferber are prosecuting the case.For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Member of Smash-and-Grab Robbery Crew Sentenced to Seven YearsRead the Press Release
ALEXANDRIA, Va. – Floyd Davis, 43, of Washington, D.C., was sentenced today to 84 months in prison, and over $1,000,000 in restitution, for his role in a series of smash-and-grab robberies and for possessing a firearm as a convicted felon.
Kathleen M. Kahoe, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; M. Douglas Scott, Arlington County Chief of Police; and J. Thomas Manger, Montgomery County Chief of Police, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Davis pleaded guilty on July 2, 2013. According to court documents, Davis was a member of a smash-and-grab robbery crew that committed over a dozen robberies in the Washington, D.C. area and elsewhere. The crew entered various high-end retail establishments as a group, and through force and intimidation, stole merchandise from the stores. Davis often acted as a lookout and scouted the locations before the robberies. The crew stole over $1,000,000 in merchandise during the robbery spree.
This case was investigated by the FBI, Fairfax County Police Department, Arlington County Police Department, and Montgomery County Police Department. Assistant United States Attorney Jonathan Fahey and Special Assistant United States Attorney Edward Reilly 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.Massachusetts Man Indicted in Providence for Tax FraudRead the Press Release
WASHINGTON -- The Justice Department and the Internal Revenue Service (IRS) announced that a federal grand jury in Providence, R.I., returned a five-count indictment yesterday charging John Fall of Milton, Mass., with one count of corruptly endeavoring to obstruct and impede the IRS, one count of tax evasion and three counts of aiding and assisting in the preparation and filing of false corporate and individual tax returns. The indictment was unsealed Thursday following Fall’s arrest.
According to the indictment, Fall was a real estate consultant who bought, sold and brokered real estate. Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., as well as Broad Street Investments. The indictment alleges that between 1999 and 2010, Fall used numerous nominees and business names to conceal his business and financial transactions. Fall also used multiple bank accounts, including commingled or “warehouse” bank accounts, in at least four states throughout the country, all in order to conceal his financial transactions as well as certain financial transactions of Comfort Dental and Broad Street Investments. To further disguise business and financial transactions, court documents allege that Fall used fake names and aliases to conceal his ownership and control over his nominee entities.
The indictment alleges that Fall filed false returns for 1998 and 1999, and failed to file any return for the years 2000 through 2010. The IRS audited Fall for the 1998 through 2000, assessing him taxes collectively totaling approximately $72,000. According to the indictment, Fall committed tax evasion by attempting to thwart IRS collection of these taxes by using multiple nominees, business names and fake names and aliases to disguise financial transactions and title assets, by using commingled bank accounts, by making extensive use of cash and by causing to be filed false and fraudulent documents in federal court disclaiming ownership and control over funds sought by the IRS to pay the taxes he owed.
The indictment further alleges that Fall caused tax returns that were filed by Comfort Dental for the years 2005 through 2007, as well as his wife’s individual tax returns for 2005 and 2006 to be false. Fall caused his wife’s businesses to make payments to his various entities which were falsely recorded as deductible business expenses. According to court documents, Fall also caused his wife’s individual tax return to reflect a capital loss for tax year 2006 when, according to the indictment, she received a capital gain on the sale of property.
When Comfort Dental and Fall’s wife were audited between 2008 and 2009, the indictment alleges that Fall attempted to obstruct the audit by encouraging his wife’s accountant not to provide the IRS with information requested through a summons, and by providing false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities. Fall also attempted to obstruct his wife’s compliance with an IRS summons.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. The tax evasion charge carries a maximum sentence of five years imprisonment and a $250,000 fine. The IRS obstruction charge and the aiding and abetting of false returns charges each carry a maximum sentence of three years imprisonment and a $250,000 fine.
This case was investigated by special agents with the IRS – Criminal Investigation. The case is being prosecuted by Assistant Chief John Kane and Trial Attorney Christopher O’Donnell with the Justice Department’s Tax Division.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Maryland Man Sentenced to 42 Months in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
WASHINGTON – Scott Richard Swirling, 62, of Silver Spring, Md., was sentenced today to 42 months in prison for traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Swirling pled guilty to the charge in April 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable John D. Bates. Upon completion of his prison term, Swirling will be placed on 10 years of supervised release.
According to the government's evidence, on Jan. 7, 2013, Swirling contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Swirling engaged in graphic online email and instant message conversations with the undercover officer. During these conversations, Swirling arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. Swirling traveled from Silver Spring to a pre-arranged meeting place in Washington, D.C., where he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-327Maryland Man Sentenced to 28 Months in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Frederick Singletary, 42, of Parkville, Md., was sentenced today to 28 months in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Singletary pled guilty in June 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Beryl A. Howell. Upon completion of his prison term, Singletary will be placed on 10 years of supervised release.
According to the government's evidence, on Feb. 12, 2013, Singletary contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Singletary engaged in online e-mail, instant message, text message, and telephone conversations with the undercover officer, whom he believed was the father of an under-aged girl. During this period of time, Singletary arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
During the course of their communications, Singletary also sent the undercover officer 10 images of child pornography. On Feb. 14, 2013, Singletary traveled from Maryland to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
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