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19 September 2013
Two Canadians Charged with Credit Card FraudRead the Press Release
BUFFALO, N.Y. --U.S. Attorney William J. Hochul, Jr. announced today that Petar Petrov, 41, of Mississauga, Ontario, and Evgeniy Bandarmaliev, 50, of Toronto, Ontario, were arrested and charged by criminal complaint with conspiracy to commit access device fraud and use of counterfeit access devices. The charges carry a maximum penalty of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the complaint, on September 2, 2013, Petrov attempted to enter the United States at the Lewiston Queenston Bridge. During an inspection, law enforcement officers found 10 counterfeit access devices.
After consultation with Canadian law enforcement, Special Agents with Homeland Security learned that Petrov and his associate, Bandarmaliev, were under investigation by Canadian authorities for placing illegal skimming devices on ATM machines in Canada. The machines captured account information, including PIN numbers, from ATM customers. Agents then obtained numerous security photographs from banks in the United States, including several in the Buffalo area, which depicted Pertov and Bandarmaliev using counterfeit access devices with the information from the Canadian accounts to withdraw cash. The complaint alleges that Pertov and Bandarmaliev obtained over $35,000 from this illegal activity between July 30, 2013 and September 2, 2013.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The complaint is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Troy Resident Indicted on Federal Child Pornography ChargesRead the Press Release
Tyler Andrew Bergland, 28, of Troy, Illinois, has been indicted by a federal grand jury for knowingly receiving and possessing child pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Count 1 of the indictment charges that from January to July of this year, Bergland used a desktop computer connected to the internet knowingly to download child pornography images and videos. Knowingly receiving child pornography carries a mandatory minimum five-year prison sentence and is punishable by as much as 20 years in prison, a $250,000 fine, and supervised release for life. Bergland also faces up to 10 years in prison on Count 2 of the indictment, which charges that on July 23, 2013, he knowingly possessed additional child pornography on a CD.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case is being investigated by the Madison County Sheriff’s Department, Computer Crimes Division, and the FBI Cyber Crimes Task Force. The prosecution is assigned to Assistant United States Attorney Nathan D. Stump.
Members of the public are reminded that an indictment is merely an accusation, and that all criminal defendants are presumed innocent until proven guilty in a court of law.
Troy Man Pleads Guilty to Attempting to Entice A Minor to Engage in Sexual ActsRead the Press Release
Defendant Used his Cellular Telephone to Attempt to Arrange a Sexual Encounter with a
Twelve-Year-Old GirlALBANY, NEW YORK — MICHAEL HEPPELLE, age 42, of Troy, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of attempted online enticement of a minor, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. HEPPELLE faces a mandatory minimum sentence of at least ten years of imprisonment and up to a maximum sentence of life imprisonment. HEPPELLE was detained pending his sentencing.
Pursuant to a written plea agreement, HEPPELLE admitted that between approximately September 24, 2012 and October 3, 2012, he called a cooperating witness and offered to pay $500 if the cooperating witness could arrange for HEPPELLE to have a sexual encounter with a twelve-year-old girl. The cooperating witness reported his/her concerns to law enforcement, who in turn, told the cooperating witness to tell HEPPELLE that if he was serious about engaging in sexual acts with the twelve-year-old girl, he could meet her on October 3, 2012 at a particular time, at a pre-arranged location in Rensselaer County. On October 3, 2012, HEPPELLE arrived at the pre-arranged location at the pre-determined time to meet with and engage in sexual acts with the girl. HEPPELLE was then arrested and was found to be in possession of $500 in U.S. currency, a cellular telephone, two condoms, and a lubricant typically used during sexual intercourse.
Sentencing is scheduled for January 21, 2014, at 9:00 a.m. in Albany, New York. This case was investigated by the Federal Bureau of Investigation and the Rensselaer County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
Terrell Wright Pleads Guilty to Multiple Charges for Pointing A Gun at Two Syracuse Gang Task Force DetectivesRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian, announces that TERRELL WRIGHT, age 29, of Syracuse, pled guilty today in U.S. District Court in Syracuse to the Indictment, which charged him with: (1) assaulting two detectives from the Syracuse Gang Violence Task Force (“GVTF”) (Count One); (2) use and carry of a handgun during the assault (Count Two); and (3) being a convicted felon in possession of a handgun (Count Three).
As part of his plea WRIGHT admitted the following facts:
On Tuesday, December 18, 2012, Syracuse Police detectives Melvin DeBottis and Timothy Galanaugh were both federally deputized members of the Syracuse Gang Violence Task Force ("GVTF"). At approximately 12:50 p.m. that day, while engaged in the performance of their official duties, DeBottis and Galanaugh were driving in a government-issued vehicle when they observed Person A, a suspected East Side gang member, walking westbound in the 1600 block of East Fayette Street in Syracuse, New York with his brother, the defendant. Because Person A was suspected of being involved in a shooting the night before, the detectives decided to stop and talk with him. As they were pulling their vehicle to the curb, they observed the defendant pull a small, black semi-automatic handgun from his waistband and point it at DeBottis and Galanaugh. DeBottis and Gallanaugh both drew their handguns as they got out of the car and advanced towards the defendant and Person A shouting "drop the gun." At that point, Person A was subdued and the defendant ran off. A chase ensued and the defendant was found hiding in a plastic deck box a few minutes later. The gun in question, a Glock model 27, .40 caliber handgun, with a laser sight, was recovered on the ground a few feet from where the defendant had pointed it at DeBottis and Galanaugh.
During his plea allocution, WRIGHT admitted under oath that he has never had a job and he made his money by selling drugs on the streets of Syracuse.
WRIGHT faces the following maximum penalties at sentencing, which is scheduled for March 10, 2014:
Count One: Up to 20 years imprisonment, followed by three years of supervised release, and up to a $250,000 fine;
Count Two: At least seven years imprisonment that must run consecutive to any sentence on Counts One and Three, followed by three years of supervised release, and up to a $250,000 fine;
Count Three: Up to 10 years imprisonment, followed by three years of supervised release, and up to a $250,000 fine;
WRIGHT acknowledged that he has two prior felony drug convictions and was currently on parole from the second conviction. Thus, he qualifies as a Career Offender under the federal sentencing guidelines and he will face greater punishment.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Tenth V-not Gang Member Pleads Guilty to Rico ConspiracyRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that NATE KING, age 23, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. KING is the tenth defendant to plead guilty in this case.
The case against Kahari Smith, the sole remaining co-defendant, remains pending. King is presumed innocent until the case against him reaches its conclusion.
At sentencing, KING faces up to life imprisonment, a $250,000 fine, and five years of supervised release following any period of incarceration.
The Indictment to which KING pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack. With respect to the murder, the Indictment includes allegations that on November 26, 2010, gang member Kahari Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs.
The trial for Kahari Smith is set to commence on October 1, 2013, in Syracuse. However, a hearing has been scheduled for this afternoon at 3:30 p.m. in Syracuse before the Hon. Norman Mordue for a possible disposition of the case.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Superseding Indictment Names Eighth Defendant in Interstate Contraband Cigarette Conspiracy Charged by Way of Superseding IndictmentRead the Press Release
PROVIDENCE, R.I. – A fifteen-count superseding federal indictment returned by a grand jury in Providence on Wednesday names eight individuals and expands the scope of federal charges previously brought in a complex interstate contraband cigarette trafficking conspiracy allegedly responsible for the sale in Rhode Island of more than $1.2 million dollars of contraband cigarettes. The superseding indictment also includes charges related to alleged conspiracies to defraud the Supplemental Nutrition Assistance Program (SNAP), commonly referred to as the food stamp program, and the Social Security Administration.
Additional allegations of food stamp fraud and the unauthorized acquisition of food stamp funds contained in the superseding indictment come, in part, based on information developed during an ongoing joint federal and state investigation into more than $3 million dollars in alleged food stamp fraud in Rhode Island announced on September 5, 2013, by United States Attorney Peter F. Neronha.
In May 2013, a federal grand jury returned a six-count indictment charging Wissam Khalil, 40, of Central Falls, a Providence convenience store owner; his brothers Bassam Khalil, 49, and Najd Khalil, 25, of Pawtucket; Abdullah Alnahas, 36, of Cranston, a Providence convenience store owner; Bassam Kiriaki, 45, a Pawtucket accountant; and Richard Larrain, 23, of Providence, an enlisted soldier in the U.S. Army Reserves, with allegedly participating in a conspiracy to possess, transport and distribute contraband cigarettes in Rhode Island. A seventh defendant, Valeria Mendez (Khalil), 30, of Central Falls, wife of Wissam Khalil, was charged with conspiring to make and making false statements to a government official in an application to the United States Department of Agriculture (USDA) to participate as a retailer in the food stamp program.
In addition to naming the defendants charged in the indictment returned in May, the superseding indictment returned on Wednesday charges Nazir Khalil, 75, father of Wissam, Bassam, and Najd Khalil, with participating in a conspiracy to defraud the Social Security Administration. It is alleged that Nazir, who resides outside the United States, participated in a conspiracy to fraudulently apply for and collect Social Security disability benefits.
Additionally, the superseding indictment includes additional charges against several of the defendants previously named, including conspiracy to engage in money laundering; money laundering; structuring; conspiracy to engage in food stamp fraud; and food stamp fraud.
The superseding indictment alleges that Wissam Khalil, Bassam Kiriaki and another person conspired to produce a sworn letter submitted to the USDA in support of an application of Valeria Mendez (Khalil) to participate in the Food Stamp Program as a retailer, knowing that the contents of that letter were false and/or incomplete. It is alleged that the intent of the conspiracy was to mask family relationships as it pertained to the true past and present ownership of a Providence convenience store. It is alleged that the true information was withheld to ensure participation as a retailer in SNAP.
It is also alleged that several of the defendants conspired in various conspiracies to allow SNAP benefit recipients to use their Electronic Benefit Transfer cards to exchange their food stamp benefits for cash, a violation of the program’s laws and regulations. It is alleged that in return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to or more than that of the amount of cash benefit received by the recipient.
The superseding indictment was announced by Peter F. Neronha, United States Attorney for the District of Rhode Island; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigations; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in New England; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General.
On May 8, 2013, more than a dozen teams of federal and state law enforcement agents and officers executed federal arrest and search warrants, arresting seven individuals and searching ten locations where a significant quantity of contraband cigarettes, approximately $100,000 in cash, business records and four vehicles, all allegedly connected to the trafficking operation, were seized. The majority of cash and cigarettes seized were discovered stashed in sophisticated hides in several of the locations.
It is alleged that as part of the conspiracy to traffic contraband cigarettes into Rhode Island, in July 2011 several “shell” corporations in Virginia were created and vacant retail storefronts were rented in Virginia for the purpose of making it appear that cigarettes being purchased in Virginia for resale in Virginia. The cigarette packages purchased included Virginia tax stamps, reflecting a Virginia tax of thirty-five cents per package. It is alleged that between July 2011 and continuing until May 2013, more than 30-thousand cartons (6 million) of cigarettes valued at more than $1.2 million dollars were purchased in Virginia and shipped to Rhode Island in a truck bearing Rhode Island War Veteran Plates. It is alleged that on numerous occasions the truck was driven by Richard Larrain, while wearing his United States Army uniform. It is alleged that he wore his Army uniform in an effort to gain favor and avoid law enforcement detection.
It is alleged that the cigarettes were distributed and sold in Rhode Island at or near full-retail price, including a tax payment of $3.50 per package. It is alleged that the lack of payment of the cigarette tax to the state of Rhode Island resulted in a loss of approximately $1.05 million dollars of tax revenue.
An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matters charged in the indictment were investigated by the Rhode Island State Police, Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, United States Social Security Administration Office of Inspector General – Office of Investigations, Homeland Security Investigations, and the U. S. Department of Agriculture Office of Inspector General.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Wissam Khalil, 40
Central Falls, RI
Counts 1-15Bassam Khalil, 48
Pawtucket, RI
Counts 1, 2, 3, 4, 5Najd Khalil, 26
Pawtucket, RI
Counts 1, 2, 5, 6-11, 12-14, 15Valeria Mendez (Khalil), 31
Central Falls, RI
Count 15Nazir Khalil, 75
Central Falls, RI
Counts 3, 4Abdullah Alnahas, 35
Cranston, RI
Counts 1, 2Bassam Kiriaki, 45
East Weymouth, MA
Counts 1, 2, 15Richard Larrain, 24
Providence, RI
Counts 1, 2, 15Count I: Conspiracy
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount II: Cigarette Trafficking
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount III: Conspiracy to Obtain Social Security Benefits
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount IV: Social Security Fraud
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount V: Conspiracy to Commit Money Laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised releaseCounts VI-XI: Money Laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised releaseCount XII-XIV: Structuring
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount XV: Conspiracy to Commit Food Stamp Fraud
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release###
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]South Daytona Man Sentenced to Fifteen Years in Federal Prison for Possession with Intent to Distribute "Crack" Cocaine and Possession of Firearm and AmmunitionRead the Press Release
Orlando, Florida - U.S. District Judge G. Kendall Sharp yesterday sentenced Anthony V. White (31, Daytona) to fifteen years in federal prison for possession with intent to distribute cocaine base, commonly known as "crack" cocaine, and for possessing a firearm and ammunition after having been previously convicted of a felony offense. He was sentenced to a 5-year term of supervision, following his release from prison. The court also ordered White to forfeit the handgun and ammunition seized from him at the time of the offenses. White pleaded guilty on June 25, 2013.
According to court documents, on the morning of March 29, 2012, in connection with a hit and run accident investigation, officers found a stolen car in the parking lot of the La Quinta Inn on W. International Speedway Boulevard in Daytona Beach. The investigation led officers to room 246. When officers knocked on the door, White fled by jumping from the balcony, with a brown purse in his hand. White was apprehended, and the brown purse was found to contain twenty-one baggies of "crack" cocaine, as well as a scale for weighing the drugs. Left behind in the hotel room was a black duffle bag, with a firearm sticking out, and White’s wallet (with identification) next to it.
As a previously convicted felon, White is prohibited from possessing a firearm or ammunition under federal law. Moreover, White's extensive criminal record qualified him as an Armed Career Criminal under federal sentencing statutes.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Daytona Beach Police Department. It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Sentences for September 12 - 19, 2013Read the Press Release
Steven G. Gayman, 55, of Loveland, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on September 19, 2013, for possession with intent to distribute methamphetamine. Gayman was arrested in Platte County, Wyoming. He received 138 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Nicholas Austin Becker, 26, of Aspen, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on September 16, 2013, for distribution of at least 100 milligrams but less than 200 milligrams of LSD. Becker was arrested in Denver, Colorado. He received two years of probation, 40 hours of community service, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Troy Raymond Morton, 40, of Bellingham, Washington, was sentenced by Federal District Court Judge Alan B. Johnson on September 16, 2013, for being a felon in possession of a firearm. Morton was arrested in Seattle, Washington. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. National Park Service.
Tina F. Knott, 40, of Lander, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for social security fraud. Knott appeared pursuant to a subpoena. She received five years of probation and was ordered to pay a $100.00 special assessment. Restitution was ordered and will be determined at a later date. This case was investigated by the Social Security Administration, Office of the Inspector General.
Charles Lee Caines, 33, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for possession of child pornography. Caines was arrested in Lander, Wyoming. He received 72 months imprisonment, to be followed by 22 years supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Mark Lee Oberg, 29, of Green River, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for being a felon in possession of a firearm. Oberg was arrested in Green River, Wyoming. He received 37 months imprisonment, to be followed by three years supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rosedale Residents Admit to Fraudulently Obtaining $186,677 in Social Security Disability BenefitsRead the Press Release
ABINGDON, VIRGINIA – Brenda Gale Vance and Billy Leonard Vance of Rosedale, Virginia, pled guilty yesterday in United States District Court to conspiring to defraud the United States. The Vances admitted to conspiring to defraud the United States by concealing the fact that Billy Vance was working and earning income while receiving Social Security disability benefits.
At the guilty plea hearing, the Court was informed that from 2003 through 2012, Brenda Vance and Billy Vance were employed by the same company. However, to keep Billy Vance’s employment hidden from the Social Security Administration, the Vances’ employer kept Billy Vance’s employment off of the books and reported all of Billy Vance’s income to the government as having been earned by Brenda Vance. Accordingly, the Social Security Administration was not aware that Billy Vance was working and, as a result, continued to pay him Social Security disability benefits.
“Social Security provides needed support to Americans who are unable to work due to disability,” United States Attorney Timothy J. Heaphy said today. “Individuals who lie about disability and circumvent the Social Security system undercut the system’s efficiency. We will continue to seek out and prosecute individuals who falsely obtain Social Security benefits and ensure the system continues to serve the truly disabled.”
At sentencing, each defendant faces a sentence of up to five years in prison and a fine of up to $250,000.00. As part of the plea agreement, at the guilty plea hearing the Vances made full restitution to the Social Security Administration in the amount of $186,677.00. A sentencing hearing has been scheduled for December 11, 2013.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation and the Social Security Administration – Office of Inspector General. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Radford Man Charged with Operating Ponzi SchemeRead the Press Release
ROANOKE, VIRGINIA – A Radford, Va., man who allegedly bilked investors out of more than $590,000 with promises of high interest returns on investments in his company, has been charged by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke.
In an indictment returned today, the grand jury has charged Charles G. Shomo, 63, of Radford, with three counts of mail fraud, two counts of securities fraud and one count of money laundering.
Charges were filed following a thorough and cooperative investigation by the United States Postal Inspection Service, the Virginia State Corporation Commission, the Commonwealth’s Attorneys’ Offices for Giles, Smyth, Floyd and Wythe counties, along with the Sheriff’s Offices for Giles, Smyth, Floyd, Wythe and Pulaski counties.
According to the indictment, in 1999 Shomo founded P&G Enterprises LLC, a business originally established to purchase and set-up retail ATM and credit card processing systems throughout Virginia, West Virginia and North Carolina. P&G purportedly developed revenue from fees charged to users who obtained cash from P&G ATMs and from retailers that used P&G’s credit card processing service.
It is alleged that between December 2006 and June 2013 Shomo solicited investors under the representation that investor funds would be used to load ATM units and generally fund the operation of the ATM business. In return, Shomo offered investors promissory notes that typically matured over a one-year time period and paid an annualized interest rate of at least 5.95 percent. Unbeknownst to investors, Shomo was using investor funds for his personal expenses and to help fund an unrelated scooter business.
Additionally, Shomo is accused of using new investors’ funds to pay existing P&G note holders. The indictment claims that between March 2010 and June 2013, Shomo received in excess of $595,000 in proceeds from the sale of P&G promissory notes to investors.
Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission will prosecute the case for the United States. A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Pittsburgh Oncology Practice Pleads Guilty to Buying Unapproved Foreign DrugsRead the Press Release
United States Attorney Laura E. Duffy announced today that Jan C. Seski, M.D. & Associates, P.C., an oncology practice based in Pittsburgh, Pennsylvania, pleaded guilty to a criminal charge of having caused the introduction of an unapproved drug into interstate commerce and was ordered to pay a $100,000 fine. Magistrate Judge Karen S. Crawford also ordered the defendant to place ads in two medical journals, warning of the dangers of unapproved drugs.
In pleading guilty earlier today before Judge Crawford, the medical practice admitted that between December 4, 2008 and May 25, 2011, the practice ordered $973,795 worth of foreign versions of the oncology drugs Eloxatin7, Gemzar7 and Taxotere7 from GlobalRxStore.com, and had them shipped through Oberlin Medical Supply of San Diego. The drugs ordered by the practice were determined to be foreign versions of these drugs and were not approved by the Food and Drug Administration for use in the United States.
According to sentencing documents filed with the court, this case came to light in May of 2011, when federal agents visited Oberlin Medical Supply's offices in San Diego. Maher Idriss, (charged in Criminal Case No. 12cr1775-WQH) the owner of Oberlin Medical Supply, had been working in conjunction with Martin Bean (charged in Criminal Case No. 12cr3734-WQH) and others of GlobalRxStore.com (GlobalRx) to supply foreign oncology drugs to doctors throughout the United States. At Oberlin, the agents discovered numerous boxes of oncology drugs that bore labeling indicating that the products had been manufactured outside of the United States and were not approved for use in this country.
The medical practice provided agents with a copy of a label for boxes of Gemzar received from GlobalRx. The labeling indicated that the product was manufactured by Eli Lilly in Fegershaim, France. The labeling was partially in English and partially in Turkish. The labels did not bear the words "Rx only" as required by the FDA, and did not bear the National Drug Code ("NDC") numbers used for Medicare billing in this country. Moreover, the labels were different in color from the FDA-approved labeling for the U.S. product.
The medical practice later provided to the government one of the vials of drugs that was in the box. When tested, the vial was found to have the active ingredient used in the manufacture of Gemzar. However, without such testing there is no assurance that other foreign drugs purchased by the defendant (outside of the closed chain system established by the FDA to protect patients in this country) all contain the active ingredient. Just recently, in February, 2013, the FDA warned doctors about batches of counterfeit Avastin (an oncology drug) that had been sold to U.S. doctors that did not contain any of the active ingredients, the third such incident in several months.
DEFENDANT Criminal Case No. 13cr3316-KSC Jan C. Seski, M.D. & Associates, P.C.
Pittsburgh, Pennsylvania Date of Incorporation: 1973 SUMMARY OF CHARGESIntroduction into Interstate Commerce of an Unapproved Drug, a misdemeanor, in violation of Title 21, United States Code, Section 331(d), 333(a)(1) and 355(a)
AGENCIESFood and Drug Administration, Office of Criminal Investigations
Federal Bureau of InvestigationPhiladelphia Man Charged in Three Bank RobberiesRead the Press Release
Darnell Thomas, 43, of Philadelphia, Pa., was charged today by Indictment with 3 counts of bank robbery announced United States Attorney Zane David Memeger. Thomas is charged with robbing Citizens Bank, 6324 Stenton Avenue, on January 24, 2013; PNC Bank, 3244 North Broad Street, on April 20, 2013, and the same Citizens Bank, located at 6324 Stenton Avenue, on April 22, 2013. In each robbery, the indictment alleges, Thomas handed a note to the bank tellers demanding cash.
If convicted Thomas faces a maximum of 60 years imprisonment.
The case was investigated by the Federal Bureau of Investigation, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Virgil B. Walker.
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, 215-861-8525Pamlico County Drug Traffickers Sentenced as Part of “Operation No Quarter”Read the Press Release
NEW BERN – United States Attorney Thomas Walker, District Attorney Scott Thomas and District Attorney Kimberly Robb announced that today in federal court, United States District Judge Louise W. Flanagan sentenced ALLEN GEROME GIBBS, 38, of Bayboro, NC and JESSIE LEE PEARSON, 36, of Greenville, NC to federal prison as a result of “Operation No Quarter.”
GIBBS was sentenced to 189 months’ imprisonment while PEARSON received a sentence of 141 months’ imprisonment. Both will be placed on supervised release for a period of 5 years following the completion of their prison sentences. In addition, GIBBS was also ordered to pay $1,900 in restitution to the Pamlico County Sheriff’s Office. If he is unable to pay the restitution up front, he will be required to participate in the Bureau of Prisons’ Inmate Financial Responsibility Program to pay back the money while he is incarcerated. As part of his plea agreement, PEARSON agreed to forfeit to the government $99,763 in cash seized by agents as a part of the investigation.
PEARSON was arrested on July 4, 2011, after a shipment of approximately 14 kilograms of cocaine was seized in Pamlico County from a truck driven by Renato Torres-Eguino, of Phoenix, Arizona. That cocaine was destined for PEARSON’s cocaine source of supply, Jorge Acosta-Muro, of Arapahoe, North Carolina. Acosta-Muro intended to sell the cocaine to PEARSON and Kevin Cornelious Davis, of Bayboro, North Carolina, who, in turn, planned to sell the cocaine to their customers, who included GIBBS and Tobia Mila Moye, of Grifton, North Carolina. The investigation revealed that PEARSON, who lived in Greenville but operated a commercial fishing business in Pamlico County, was responsible for distributing over 130 kilograms of cocaine throughout Pitt and Pamlico Counties since 2002.
GIBBS was indicted after agents with the Craven County and Pamlico County Sheriff’s Offices utilized a confidential informant to purchase cocaine from GIBBS on a number of occasions in Craven and Pamlico Counties during a timeframe spanning from 2011 to 2012. Further investigation revealed that GIBBS was involved in the distribution of over 8 kilograms of cocaine in the Craven and Pamlico County areas since his release from prison on prior drug charges in 2008.
During previous sessions of court, Judge Flanagan sentenced the others involved as follows: Torres-Eguino was sentenced to 236 months’ imprisonment. Acosta-Muro was sentenced to 270 months’ imprisonment. Davis was sentenced to 131 months’ imprisonment. Moye was sentenced to 122 months’ imprisonment.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshal’s Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office and Mr. Willis is a prosecutor with District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.Orange County Residents Guilty of Federal Racketeering Crimes “Whites Only” Enterprise Dealt Methamphetamine and MurderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Three Vidor, Texas residents have pleaded guilty to racketeering charges related to their association with a “white’s only” criminal enterprise that engaged in methamphetamine distribution and murder in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Juanette Marie Cunningham, a/k/a Netty, 46, Michael Taylor Word, 45, and Erica Nicole Parrott, 27, pleaded guilty to conspiracy to distribute methamphetamine on Sep. 18, 2013, before U.S. Magistrate Judge Zack Hawthorn.
Five other defendants, Craig Pipps, a/k/a Lone Wolf, 40, of Vidor, Mikell Allen Cunningham, a/k/a Mikey, 28, of Vidor, Ricky Allen Nichols, 54, of Vidor, Cassi Diane Hetzel, 37, of Silsbee, Texas and Mack Langston Warner, 33, of Silsbee, pleaded guilty to the same charge earlier this week.
The eight were named along with four others in a seven-count superseding indictment that was returned by a federal grand jury on Aug. 7, 2013. According to the indictment, Pipps, Kenny Don Stanley, 25, of Vidor, Tanner Lynn Bourque, a/k/a Two Shoes, a/k/a Hitman, 33, of Vidor, Kristopher Leigh Guidry, a/k/a Hollywood, 28, of Vidor, and Vicki Stark-Fitts, 49, of Hull, Texas, participated in the operation and management of the “SWS” gang.
According to the indictment, the SWS is a race-based organization operating inside and outside of jails and prisons in Texas and elsewhere. SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS is also known as “Solid Wood Soldiers” and “Separate White State.” Although the founders established SWS for protection of white inmates and advancement of white supremacy and white separatism, SWS expanded its objectives to include illegal activities for profit, including trafficking methamphetamine and firearms. SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder.
According to information presented in court, Pipps used his position as president of SWS to encourage SWS members and associates to enrich SWS through criminal activity including the distribution of methamphetamine. In August 2010, Pipps and Guidry agreed that Guidry, Bourque and other SWS members would raise money for Pipps and SWS through criminal activities including the sale of methamphetamine. The stated goal of the conspiracy was to raise $30,000 so that Pipps and SWS could purchase real property for a “separatist community.” Under the agreement, Pipps was to receive control of the funds upon his impending release from federal prison.
From September 2010 to January 2011, members manufactured “shake and bake” methamphetamine for distribution in the Orange County area of Texas. In February 2011, Bourque, Guidry and other SWS members became closely associated with Stark-Fitts, who supplied them with crystal methamphetamine and firearms. Crystal methamphetamine is a purer form of methamphetamine that is imported from Mexico. According to information presented in court, on Mar. 14, 2011, Stanley, Bourque, Guidrey and Stark-Fitts murdered James Lee Sedtal, a/k/a Lil Bit, in connection with the methamphetamine conspiracy.
The eight defendants pleading guilty this week face up to 40 years in federal prison. Earlier this summer, Stanley, Bourque, and Guidry pleaded guilty to murder in aid of racketeering. In connection with their guilty pleas, Bourque, Guidry, and Stanley admitted that they sought to maintain and increase their position within SWS by murdering Sedtal. Bourque, Guidry, and Stanley face a punishment of life imprisonment. Stark-Fitts pleaded guilty to a racketeering violation and faces up to life in federal prison. Sentencing dates have not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case is being investigated by the ATF, FBI, U.S. Marshals Service, U.S. Secret Service, U.S. Bureau of Prisons, DEA, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, and Beaumont Police Department, and is being prosecuted by Assistant U.S. Attorney John B. Ross.Ohio Man Sentenced for Aiding and Abetting His Brother in a Multi-Million Dollar Fraud SchemeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that William W. Wilson, 23, of Columbus, Ohio, who was convicted of aiding and abetting his elder brother, Michael Wilson, in the possession of money unlawfully taken from a federally insured bank, was sentenced to 18 months probation by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Paul J. Campana, who handled the case, stated that William Wilson, acting under the direction of Michael Wilson, assisted his older brother in July 2010 in obtaining $71, 875 from an investor who resided in Utah. The investor sent the money through a California-based escrow agent in two separate wire transfers four days apart. Nearly all of the funds, however, were immediately frozen and later seized through the efforts of the FBI, the Internal Revenue Service, and the U.S. Attorney’s Office. The money subsequently was returned to the victim investor. At sentencing, Chief Judge Skretny noted that William Wilson did not benefit financially from his role in the offense.
Michael Wilson, 26, of Toronto, Ontario, is charged in a 47-count indictment returned by a federal grand jury December 2010. The indictment charges Michael Wilson with an $8,000,000 investment fraud scheme involving several companies allegedly controlled by Michael Wilson, and known generally as New Frontier Holdings. Michael Wilson was arrested in Canada in July 2013 on an extradition warrant arising from the indictment. Michael Wilson’s extradition hearing in Canada is scheduled for December 12, 2013.
Today's sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch.Ocala Man Sentenced to More Than 17 Years in Federal Prison for Firearm PossessionRead the Press Release
Ocala, Florida - Senior U.S. District Judge Wm. Terrell Hodges today sentenced Christian Labrent Moore (31, Ocala) to 17 years and 6 months in federal prison for possession of a firearm and ammunition affecting commerce by a convicted felon. Moore pleaded guilty on June 18, 2013.
According to court documents, on March 20, 2013, deputies from the Marion County Sheriff's Office responded to a report of illegal drug sales in the area of SW Second Street, in Ocala. Once there, the deputies observed Moore sitting on the front porch of a residence holding a clear baggie of marijuana and cocaine. As the deputies approached Moore, they saw him remove a loaded firearm from his pocket and toss it into a trash can. Moore spontaneously told the deputies that he had just traded drugs for the firearm and that he had just been released from prison. A subsequent records check confirmed that Moore had been released from the Florida Department of Corrections on January 15, 2013, where he had been serving time for drug distribution. Moreover, Moore's prior record of drug and violent crimes made him eligible for an enhanced sentence in federal court as an Armed Career Criminal.
This case was investigated by the Marion County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Nine Arrested and Charged with Drug ConspiracyRead the Press Release
One Remaining Fugitive Sought
CHARLOTTE, N.C. – Nine of the ten men named in a federal criminal indictment were arrested this morning by law enforcement on federal drug conspiracy charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A federal criminal indictment returned by a Charlotte grand jury on Tuesday, September 17, 2013, was unsealed today following the early morning round-up of the nine defendants. The last of the ten defendants named in the indictment remains a fugitive. The indictment is the result of a joint Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by federal, state, and local law enforcement agencies.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas; Greg McLeod, Director of the North Carolina State Bureau of Investigations (NC SBI); Chief Stacy Conley of the Gastonia Police Department; Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department; and Chief David Belk of the Mount Holly Police Department.
The indictment alleges that from in or around 2002 to the present, the defendants conspired with each other and others to distribute and to possess with intent to distribute 5 kilograms or more of cocaine and 280 grams or more of crack cocaine in Gaston and Mecklenburg Counties. The 10 defendants charged with one count of drug conspiracy are:
• Derwin Durham, a/k/a “Red,” 56, of Gastonia, N.C. • James Michael Barber, a/k/a “Big Cheese,” 41, of Gastonia. • Carroll Macarthur Williams, Jr., 34, of Kings Mountain, N.C. • Thomas Monteres Burris, 33, of Gastonia. • Larry Donnell Erby, Jr., 34, of Gastonia. • Mario Demond Floyd, 33, of Gastonia. • Tony Lamar Floyd, 45, of Gastonia. • Lance Richardson Pagan, 43, of Gastonia. • Torben Lamont Jackson, 33, of Charlotte. • James Russell “Rusty” Coulter, 34, of Gastonia.All individuals except Coulter were taken into custody this morning and made their initial appearances today in federal court in Charlotte before U.S. Magistrate Judge David S. Cayer. Coulter remains a fugitive (see attached photo).
While executing the arrest warrants and search warrants, law enforcement seized three firearms, approximately $67,000 in cash, two motorcycles, three vehicles, bullets, drugs and drug making paraphernalia.
The drug conspiracy charge against Durham and Barber carries a statutory mandatory life sentence and $20 million fine. The drug conspiracy charge against Pagan and Jackson carries a statutory minimum term of 20 years and a maximum of life in prison and a $20 million fine. And the drug conspiracy charge against the remaining defendants carries a statutory minimum term of 10 years and a maximum of life in prison and a $10 million fine.
The nine defendants’ detention hearings have been scheduled for Tuesday, September 24, 2013, before U.S. Magistrate Judge Keesler.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was handled by the FBI, HSI, SBI, the Gastonia Police Department, the Mount Holly Police Department and the Charlotte Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
New Haven Felon Sentenced to 30 Months in Federal Prison for Possessing FirearmRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JERMAINE McGEE, 35, of New Haven, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on July 11, 2012, McGEE possessed a Bryco Arms .380 automatic handgun. Prior to July 2012, he had sustained felony convictions in New York and Connecticut.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On June 26, 2013, McGEE pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the New Haven Police Department and Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Nevada Tribes Receive $1.8 Million in Grants from U.S. Department of JusticeRead the Press Release
LAS VEGAS, Nev. – Two northern Nevada Indian tribes will receive over $1.8 million in U.S. Department of Justice grants to assist them enhance law enforcement practices and sustain crime prevention and intervention efforts, announced Nevada’s U.S. Attorney, Daniel G. Bogden. The Nevada tribes were included in an announcement made yesterday by the U.S. Department of Justice as part of its ongoing initiative to increase engagement, coordination and action on public safety in tribal communities. The announcement stated that 192 grants totaling over $90 million were made to more than 110 American Indian and Alaska Native nations.
“I am very pleased that Nevada tribes have received this much needed financial assistance from the Department of Justice,” said U.S. Attorney Bogden. “Over the last several years, representatives from my office, federal law enforcement, and I have visited and consulted with all of our Nevada tribes concerning the law enforcement and safety issues they face on their tribal lands. It has brought a better understanding of how we can better serve and support our tribal partners.”
Nevada tribes receiving awards are the Pyramid Lake Paiute Tribe and the Washoe Tribe of Nevada and California. Each of these tribes received a grant for public safety and community policing and for the violence against women tribal governments program. More information on the awards is available at www.justice.gov/tribal/docs/ctas-award-list-2013.pdf.
The awards are made through the department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The department developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010. Over the past four years, it has awarded 989 grants totaling more than $437 million. Information about the consolidated solicitation is available at www.justice.gov/tribal/. A fact sheet on CTAS is available at www.justice.gov/tribal/ctas2013/ctas-factsheet.pdf.Mexico Native Charged with Loan and Passport FraudRead the Press Release
Maria DeJesus-Guzman, 36, of Philadelphia, was charged today in a four count indictment with loan application fraud, passport fraud, falsely representing to be a United States citizen, and aggravated identity theft announced United States Attorney Zane David Memeger. According to the indictment, DeJesus-Guzman, an alien and a native and citizen of Mexico, falsely represented that her name was “W.A.A.,” her date of birth was in 1970, and her social security number ended with 5120, in order to obtain a home equity loan and line of credit from Bank of America, N.A. DeJesus-Guzman made the same false representations in a passport application, in addition to the false representation that she was born in Puerto Rico and, therefore, a United States citizen, in order to obtain a United States passport.
If convicted of the offenses, DeJesus-Guzman faces a total maximum sentence of 43 years imprisonment, a mandatory two-year consecutive sentence, five years supervised release, $1,750,000 fine, and $400 special assessment.
This case was investigated by the United States State Department Diplomatic Security Service and the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mexico Native Charged with Loan and Passport FraudRead the Press Release
Maria DeJesus-Guzman, 36, of Philadelphia, was charged today in a four count indictment with loan application fraud, passport fraud, falsely representing to be a United States citizen, and aggravated identity theft announced United States Attorney Zane David Memeger. According to the indictment, DeJesus-Guzman, an alien and a native and citizen of Mexico, falsely represented that her name was “W.A.A.,” her date of birth was in 1970, and her social security number ended with 5120, in order to obtain a home equity loan and line of credit from Bank of America, N.A. DeJesus-Guzman made the same false representations in a passport application, in addition to the false representation that she was born in Puerto Rico and, therefore, a United States citizen, in order to obtain a United States passport.
If convicted of the offenses, DeJesus-Guzman faces a total maximum sentence of 43 years imprisonment, a mandatory two-year consecutive sentence, five years supervised release, $1,750,000 fine, and $400 special assessment.
This case was investigated by the United States State Department Diplomatic Security Service and the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Massachusetts Man Indicted in Providence for Tax FraudRead the Press Release
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 today 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.
Man Sentenced for Multi-Million Dollar Tax Fraud Conspiracy, Aggravated Identity Theft and Attempting to Obstruct A Federal InvestigationRead the Press Release
Christopher Gilmer, 44, formerly of Belleville, Illinois, was sentenced in federal court today for Conspiracy to Defraud the Internal Revenue Service By Submitting False Federal Tax Returns to Make False Claims for Tax Refunds, Aggravated Identity Theft in Using a Social Security Number of Another during and in Relation to Conspiracy to Commit Mail Fraud and Wire Fraud in Submitting False Tax Returns, and attempted Obstruction of Grand Jury Investigation into the Conspiracy to Defraud the Internal Revenue Service by Submitting False Federal Tax Returns to Make False Claims for Tax Refunds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Gilmer was sentenced to a total of 104 months in prison, three years of supervised release to follow, an order of restitution in the amount of $56,101,556, and a special assessment fee of $300.
The prosecution is the result of information from an ongoing federal investigation of a conspiracy to obtain the payment of false and fraudulent federal income tax refunds utilizing stolen identities. The IRS utilizes databases to research possible tax refund fraud schemes. The IRS linked tax returns based on wage amounts, federal tax withholding amounts, bank accounts, employers, email addresses and other factors which revealed a tax refund scheme. The scheme involved the preparation of fraudulent federal tax returns for the years 2010, 2011, and 2012, which were filed during the 2011, 2012, and 2013 tax filing seasons.
“This nationwide tax refund fraud scheme consists of thousands of falsified tax returns, which claimed millions in fraudulent tax refunds. The total amount of the fraudulent federal tax refunds sought exceeds $150 million dollars.” noted United States Attorney Wigginton. “These fraudsters are stealing from every lawful citizen in the United States. Stiff prison terms will help to end these thefts.”
Some of the refunds were stopped by the I.R.S. All of the tax returns were electronically filed. The first tax return filed in this tax refund fraud scheme was filed on or about March 23, 2011 and the last tax return filed was on or about March 16, 2013. The fraudulent refunds were credited to prepaid debit cards created using stolen identities. People in the United States, including Christopher Gilmer, received the prepaid debit cards and withdrew a portion of the funds utilizing Western Union to electronically wire the funds to other co-conspirators in Nigeria. Following the execution of a federal search warrant at a hotel room in Belleville, Illinois, where Christopher Gilmer was staying, Christopher Gilmer notified a co-conspirator in Nigeria and advised him of the federal investigation.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations and the U.S. Postal Inspection Service with the assistance of the Belleville Police Department. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call I.R.S. Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
MS-13 Members Plead Guilty to Racketeering, Murder Conspiracy, Assault and Witness Tampering ChargesRead the Press Release
In federal court in Brooklyn, New York, Abraham Iraheta, a member of the Flushing, Queens, chapter of the violent international gang La Mara Salvatrucha, also known as “MS-13,” pleaded guilty on Monday to racketeering and murder conspiracy charges. Jose Barrera, a member of the same MS-13 chapter, pleaded guilty earlier today to assault with a dangerous weapon. When sentenced, Iraheta and Barrera each face up to 20 years’ imprisonment. On Tuesday, Jose Celestino Guillen-Rivas, a member of a Fairfax County, Virginia, chapter of MS-13, pleaded guilty to conspiracy to tampering with a witness, and faces a sentence of up to life imprisonment. The defendants entered their pleas before United States District Judge William F. Kuntz at the federal courthouse in Brooklyn.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York Field Office; and Edmund Hartnett, Commissioner, City of Yonkers Police Department.
“This Office will match MS-13’s dedication to violence with our own unwavering commitment to justice. We have now convicted over 200 MS-13 soldiers and leaders in the Eastern District of New York, and we will work tirelessly until this violent gang is eradicated from the district and elsewhere,” stated United States Attorney Lynch. “This week’s convictions are another important step toward ending the gang’s influence in our communities and bringing a measure of justice to the victims and their families.” Ms. Lynch expressed her grateful appreciation to HSI and the City of Yonkers Police Department for their assistance in the investigation and prosecutions.
According to the indictment and other court filings, Iraheta, known in the gang as “Lobo,” was a member of a chapter of the gang that committed a series of violent crimes, including murder, murder conspiracy and attempted murder, in Flushing, Queens, and elsewhere. Among other crimes, Iraheta was charged with attacking the father of a rival gang member with a machete. As part of his plea, Iraheta admitted to being a member of MS-13, conspiring to kill members of a rival gang, and plotting to kill a disfavored associate of the gang. As part of his plea, Barrera, known in the gang as “Travieso,” admitted to the violent stabbing of a young associate of rival gang.
Guillen-Rivas, known in the gang as “Pirata,” pled guilty to conspiring with members of the Flushing chapter to tamper with a witness for the government in the Virginia homicide trial of an MS-13 member by using violence in order to prevent the witness from testifying again.
The defendants were charged along with seven other MS-13 members in an indictment unsealed on January 5, 2012, and are the last to plead guilty. Their convictions are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras and Guatemala. With numerous chapters, or “cliques,” the MS-13 is the largest street gang in the Eastern District of New York, with a strong presence in immigrant communities in Queens and Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders.
The government’s case is being prosecuted by Assistant United States Attorneys Darren A. LaVerne, Tali Farhadian, and Kevin Trowel.
The Defendants
ABRAHAM IRAHETA, also known as “Lobo”
Age: 22
Queens, New YorkJOSE BARRERA, also known as “Travieso”
Age: 24
Queens, New YorkJOSE CELESTINO GUILLEN-RIVAS, also known as “Pirata”
Age: 33
Fairfax, VirginiaLeader of Oxycodone Distribution Ring Sentenced to 7+ Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Brentwood, Pa., has been sentenced in federal court to 88 months imprisonment and five years supervised release on his conviction of conspiracy to distribute controlled substances and to acquire controlled substances by fraud, forgery, deception and subterfuge, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Jeffrey William Mackewich, II, 27. Mackewich has been incarcerated since his bond was revoked by Judge Hornak in June 2013.
According to information presented to the court, Mackewich conspired to obtain Oxycodone by fraud and forgery and to then distribute the Oxycodone. Mackewich agreed that he distributed between 5,000 and 15,000 oxycodone 30 mg. tablets during the time frame of the conspiracy. He also agreed that he was the leader of the Oxycodone ring. Mackewich used a computer with software including medical clip art to counterfeit prescriptions using DEA registration numbers of unwitting physicians.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Mackewich.
Last V-not Gang Member Pleads Guilty to Rico Conspiracy and Admits to Murder of High School Basketball Star Kihary BlueRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that KAHARI SMITH, age 28, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. SMITH is the last defendant to plead guilty in this eleven defendant case.
At sentencing, SMITH faces up to life imprisonment, a $250,000 fine, and five years of supervised release following any period of incarceration.
The Indictment to which SMITH pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack.
As part of his plea, SMITH admitted to multiple acts that he committed in furtherance of the gang’s activities, the most prominent of which was his intentional killing of Henninger High School basketball star Kihary Blue on November 26, 2010. In that incident, Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs. Co-defendant Habakkuk Nickens admitted in court earlier this week that he drove a vehicle into position on the highway so that SMITH could fire the deadly shots into the vehicle in which Blue was a passenger in the middle of the back seat.
Other acts SMITH admitted to included the following: (1) possessing crack cocaine and a starter pistol in the presence of co-defendants Titus Nickens, Dwayne Hester and Donald Johnson, Jr., on October 24, 2007; (2) possessing crack cocaine, marijuana and U.S. currency, along with co-defendants Jermeere McKinnon, Titus Nickens, Jeffrey Powell and others on November 7, 2007; (3) possessing crack cocaine and U.S. currency in the presence of co-defendant Donald Johnson, Jr., on March 23, 2009; (4) present with co-defendants Riadda Travet and Jeffrey Powell when Powell shot a rival gang member in the head on November 1, 2009; (5) participation, along with co-defendants Christopher Mike, Jeffrey Powell, Habakkuk Nickens, Titus Nickens, Kenneth Jackson, Dwayne Hester, and others, in a gang fight against Bricktown Gang members on October 23, 2010; (6) participation in a drive-by shooting of a rival gang member’s house, along with co-defendants Christopher Mike, Jeffrey Powell and Kenneth Jackson; and (7) shooting of Bricktown Gang member Jaycee Floyd on March 19, 2011.
U.S. Attorney Richard Hartunian stated: “This plea signifies the end of a very violent chapter in gang activity that plagued the Valley section of Syracuse for the better part of a decade. We are pleased to have brought to justice all these V-Not Gang defendants and to have solved a particularly brutal, tragic and senseless murder of an innocent young athlete named Kihary Blue who, by all accounts, was a fine, upstanding member of our community. Let this serve as yet another example of our relentless pursuit of gang activity in the City of Syracuse.”
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Kissimmee Man Sentenced to 5 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Orlando, Florida - Senior U.S. District Judge John Antoon, II yesterday sentenced Alexander Lee (31, Kissimmee) to 5 years in federal prison for receipt of child pornography. Lee was also ordered to register as a sex offender and to serve a 10-year term of supervision, upon his release from prison. Lee pleaded guilty on June 26, 2012.
According to the evidence presented at the sentencing hearing, Lee used a peer-to-peer program to download child pornography. On October 9, 2012, special agents with Homeland Security Investigations, along with agents from the Florida Department of Law Enforcement, executed a federal search warrant at Lee’s apartment. A forensic review of Lee’s computer revealed that he downloaded 1,047 images of child pornography on February 19, 2012. Further forensic review revealed that Lee downloaded more than 100,000 images and videos of child pornography.
“Receiving child pornography is not a victimless crime. It haunts the children depicted in it, who live daily with the knowledge that countless strangers use an image of their worst experiences for their own gratification,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa, which oversees the agency’s Orlando office that conducted this investigation. “It is our duty as special agents to find and arrest these child predators and ensure they are prosecuted to the fullest extent of the law.” This case was investigated by U.S. Immigration and Custom’s Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Kimber Sentenced to 14 Years in Prison for Chemical Weapon Attack at Albany Medical CenterRead the Press Release
SYRACUSE, NEW YORK - Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Martin S. Kimber, 60, of Ruby, New York, was sentenced today by Senior U.S. District Judge Lawrence E. Kahn to 14 years in prison, 5 years supervised release thereafter, forfeiture of his home and car which were used to store the mercury, and $200,450.48 in restitution to the Albany Medical Center following his guilty plea to using a toxic chemical, mercury, as a weapon (counts one and two), and tampering with consumer products (count three) at the Albany Medical Center, in Albany, NY. Kimber admitted that on four occasions he spread mercury, a potentially fatal neurotoxin, throughout various areas of the Albany Medical Center in ways which could lead to inhalation or absorption of the mercury, to retaliate for what he thought were unfair hospital bills.
When Kimber entered his guilty plea on November 29, 2012 he admitted that:
On December 10, 2010 and December 23, 2010, he received medical treatment at the Albany Medical Center, Albany, New York. On various dates thereafter, including on January 24, 2011, he wrote to express concern about having to pay for his medical care. On February 22, 2011, the Albany Medical Center Associate Medical Director wrote back and explained why the bills were appropriate, and discussed the outcome associated with Kimber having provided inaccurate information about his injury, and his decision not to complete the care prescribed by his treating physician.
On March 28, 2011, April11, 2011, June 23, 2011, and March 2, 2012, patients, visitors, and hospital personnel discovered liquid mercury deposited in sundry locations throughout the Albany Medical Center. On March 28, 2011, mercury was found in the level D basement, the hallway outside the Post-Operative Care Unit, the Triage window in the Emergency Room, and in the tracks to the door of the center elevator for Building D. Hospital; emergency response units identified and collected several pounds of mercury. On April 11, 2011, mercury was found in the men's bathroom on the AI level and in the main hallway in Building E, extending from the M doors to the elevator lobby. Approximately one to two pounds of mercury was collected by emergency response personnel. On June 23, 2011, mercury was found on the pedestrian ramp leading from the main lobby up to the pedestrian parking garage bridge and in the E-1 corridor exiting the Choice Cafe and the center elevator of Building A elevator triplex. Approximately two pounds of mercury was collected. On March 2, 2012, mercury was found in the cafeteria at Albany Medical Center, in the salad bar, in an apple bowl, in a banana basket, in a toaster, on a table by the coffee station, in the cooler for the packaged salad dressing, in the ice cream freezer, and in a container of chicken tenders that were being warmed under heating lamps and were available for purchase and consumption by cafeteria customers.
Kimber admitted he was responsible for each of these mercury disposals, and for tampering with the described products, including the mercury, each item of food, and the restaurant equipment, to include salad, fruit, toaster, table, cooler, freezer, and heating lamps. The food products and food containers into and near which the defendant deposited mercury affected interstate commerce. Kimber further admitted his purpose in disposing of the mercury throughout the Albany Medical Center on multiple occasions was to cause panic at the hospital leading to the closing down of the facility by causing a loss of business when people became fearful of gaining treatment and eating there.
On March 29, 2012, a search by law enforcement officers revealed that Kimber possessed two canisters of mercury, one stored in his car and the other stored in his house. Both canisters of mercury were seized by the officers. An FBI search of his computer showed that he engaged in searches at sites where more mercury could be purchased.
Mercury is a well-documented hazardous substance. Among other things, mercury is a neurotoxin that can kill human nerve cells. Mercury is readily absorbed through unbroken skin. Inhalation and other forms of absorption can lead to death, brain and lung damage, impairment of speech, constriction of the visual field, hearing loss and somatosensory change, and other serious bodily injuries. Having been a licensed pharmacist for 36 years, Kimber well understood these dangers, and that the heating of mercury, including the placing of mercury on or in toasters, and on or around heated food, greatly increased the likelihood that mercury would vaporize into the air and be inhaled by individuals consuming such food or using or near such heating devices. As part of his sentence, Kimber was ordered to abandon his computer in which child pornography was found and further ordered to:
Pay restitution to the Albany Medical Center in the amount of $200,451.48;
Pay restitution in full to the United States for any expenses incurred incident to the seizure, storage, handling, transportation, and destruction of any property seized in connection with an investigation of his use of mercury as a chemical weapon;
Forfeit his residence at 8 Lena Lane, Ruby, New York; and
Forfeit his 2007 Pontiac Solstice.
Kimber was arrested on April 25, 2012, by Special Agents of the United States Environmental Protection Agency. On March 2, 2012, following a hearing, Kimber was detained as a danger to the community. He was ordered to remain in jail following imposition of sentence.
United States Attorney Hartunian said, “Congratulations and thank you to the Environmental Protection Agency, the Federal Bureau of Investigation, and the Food & Drug Administration-Office of Criminal Investigations, whose cooperative investigation quickly brought the defendant to justice for this very dangerous conduct; to the patients, visitors, and hospital personnel who discovered the mercury; and to the emergency response units who collected it. Their alertness and professionalism prevented the dire consequences that could have resulted from the defendant’s use of several pounds of mercury as a chemical weapon and contaminating food and food service items at a hospital.”
“There are honest accidents and there are clear cases of criminal conduct,” said Vernesa Jones-Allen, Special Agent in Charge of EPA’s Criminal Investigation Division in New York. “The defendant’s action threatened public health and safety and sent an innocent victim to the hospital. Today's sentence demonstrates that this kind of behavior will not be tolerated. EPA is encouraged by the level of partnership shown by the local, state and federal law enforcement agencies involved in this joint investigation.”
“The defendant demonstrated a disregard for the potentially life-threatening consequence of his actions and for the potential harm that he could have inflicted” said Special Agent in Charge Mark Dragonetti of the FDA’s Office of Criminal Investigations, New York Field Office. “We will continue to work with our law enforcement counterparts to aggressively pursue those who place the public health at risk and harm others by tampering with food, drugs or other FDA- regulated products.”
This case was investigated by Special Agents of the Environmental Protection Agency, the Federal Bureau of Investigation, and the Food & Drug Administration-Office of Criminal Investigations. Assistance has been provided by the Towns of Albany and Ulster Police Departments. The case was prosecuted by Assistant United States Attorney Craig Benedict, to whom questions may be directed at 315-448-0672 or cell phone 315-391-1110.
Justice Department Awards Cleveland $1 Million Grant for Crime Prevention and EnforcementRead the Press Release
The United States Department of Justice awarded the City of Cleveland a $1 million grant aimed at improving the Mount Pleasant neighborhood by expanding crime prevention programs, continuing targeted enforcement efforts and increasing programs for people returning to the neighborhood from prison, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The city was informed this week that it is a recipient of a $1 million Byrne Criminal Justice Innovation Program. The money will be disbursed over three years. Cleveland is one of only five cities to receive a full $1 million grant.
“This grant recognizes that improving public safety is about the people living in our neighborhoods and is a result of our longstanding, comprehensive approach and strong partnerships. It will support Cleveland Police and our law enforcement partners as they target violent crime, but it will also support a wrap-around approach for residents so that they have opportunities to choose a better life,” said Cleveland Mayor Frank G. Jackson. “I want to thank the Department of Justice for the grant and their continued partnership.”
“This money will allow us to expand a decade-long partnership between law enforcement, community leaders and social-service providers,” Dettelbach said. “These programs allow us to work together to prevent crime and to help those returning home from prison, instead of simply trying to arrest our way out of the crime problem.”
“Community engagement is a crucial part of the solution,” said Michael L. Walker, executive director of the Partnership for a Safer Cleveland. “Making arrests in and of itself will not prevent violent crime. We’re trying to work with community organizations to develop solutions the community can take ownership of.”
The grant will target the Mount Pleasant neighborhood on Cleveland’s southeast side, running along Kinsman Avenue between Lee Road and East 93rd Street.
Among the programs earmarked for funding through the grant:
* The continuation of the VGRIP gun suppression efforts, in which Cleveland police and federal agents work together to crack down on gun violence, often leading to federal prosecution of felons illegally in possession of firearms.
* The expansion of Stand Together Against Neighborhood Crime Everyday (STANCE), which will work with Mount Pleasant residents and community stakeholders to design and implement comprehensive prevention and reentry efforts, such as Operation Night Light (police and community leaders make surprise visits to parolees, training for those returning from prison) and Operation Focus (counseling, assessments, call-ins, coaching and service delivery).
* A Fugitive Safe Surrender in 2014, in which law enforcement and clergy work together to establish a safe location for non-violent fugitives wanted for low-level felonies to turn themselves in.
* Creating a comprehensive approach to restoring order to crime hot spots in the neighborhood, including improved street lighting, dispersing loiterers, performing code inspections, cleaning up vacant lots and razing abandoned buildings. This component also includes continuing to train police officers to connect youth who witness violence to mental health services within 48 hours.
* Case Western Reserve University’s Begun Center for Violence Prevention will collect, analyze and evaluate data to ensure that activities are supported by evidence of need and to track results. Data will be gathered by Cleveland police, Cleveland Schools, the Office of Building and Housing, Juvenile Court, adult and juvenile parole and other partner agencies.
The grant is the result of a partnership between more than 30 agencies, including the City of Cleveland, the Cleveland Municipal School District, the Cuyahoga Metropolitan Housing Authority, Partnership for Safer Cleveland, Sisters of Charity Health System, Third Federal Foundation, Mt. Pleasant NOW, St. Luke’s Foundation, Mt. Pleasant Community Zone, Cleveland Police, Cleveland Community Relations Board, the U.S. Attorney’s Office, the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal, Greater Cleveland RTA, Cuyahoga County Prosecutor’s Office, Cuyahoga County Sheriff’s Office, Cuyahoga County Department of Justice Affairs, Cuyahoga County Juvenile Court, Ohio Department of Rehabilitation and Correction, Ohio Department of Youth Services, National Council of Jewish Women, College Now Greater Cleveland, Adcom Communications, Community Assessment and Treatment Services, Ohio Adult Parole Authority, and many others.
Justice Department Announces GrantsTo Kansas Indian TribesRead the Press Release
TOPEKA, KAN. - The U.S. Department of Justice has awarded public safety grants totaling almost $1 million to two Kansas Indian tribes, U.S. Attorney Barry Grissom said today.
The Prairie Band Potawatomi Nation has been granted $777,096. Another Kansas tribe, the Sac And Fox Nation of Missouri, has been granted $222,799.
“We’re increasing our efforts to support tribal communities and to build and sustain tribal justice systems,” Grissom said.
Grissom is attending a meeting of Attorney General Eric Holder’s Native American Issues Subcommittee in Celilo Village, Ore., 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 Prairie Band Potawatomi from the Justice Department’s Office On Violence Against Women is 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,” Grissom said.
The grant to the Sac And Fox Nation comes 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.Jury Finds Pittsburgh Man Played Crucial Role in Mortgage Fraud SchemesRead the Press Release
PITTSBURGH - After deliberating six hours, a federal jury of five men and seven women found Jason Moreno guilty of two counts wire fraud conspiracy and five counts of wire fraud, United States Attorney David J. Hickton announced today.
Moreno, 30, was tried before United States District Judge Nora Barry Fischer.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Moreno operated Platinum Appraisal Services, which provided hundreds of fraudulent appraisals in connection with two different complex mortgage fraud schemes. The appraisals were fraudulent in at least the following respects:
- The appraisals represented that they had been prepared by a licensed appraiser named Joel Reck when, in fact, they were prepared by Jason Moreno and others who were not licensed appraisers;
- The appraisals overstated the conditions of the properties and represented that they were in better condition than they actually were;
- The appraisals falsely represented that substantial improvements had been made to the properties;
- The appraisals failed to identify significant problems with the properties that effected the market values of the properties; and
- The appraisals represented that the properties being appraised, which are referred to as the "subject properties", were comparable to certain other properties, which are referred to as the "comparable properties", when, in fact, the comparable properties were in superior conditions and in superior locations than the subject properties.
All of these misrepresentations were designed to overstate the values of the properties serving as collateral for the loans.
One of Moreno's primary customers for the fraudulent appraisers was Robert Arakelian, who was a mortgage broker who operated Pittsburgh Home Loans along with his partner, Michael Ferrazza. Arakelian operated a mortgage fraud scheme in which he falsely represented to the lenders that the borrowers intended to and had made substantial down payments associated with the purchase of the properties. In fact, the borrowers were not making any down payments and were actually getting money back from many of the transactions. Thus, for the scheme to work, the loan amounts had to be sufficient to pay the seller, pay the buyer money back, as well as pay the closing costs and any kickbacks to Arakelian and others associated with the scheme.
Lenders, however, will typically only lend between 80% and 90% of the lower of the sales prices and the value of the home. The "value" is supposed to be determined by a licensed independent professional appraiser. In order to get a sufficient loan amount to make the disbursements associated with the scheme, the sales prices of the properties had to be drastically overstated, and these overstated sales prices had to be supported by similar fraudulently overstated appraisal values. Preparing and causing the preparation of the fraudulent appraisals was Moreno's role in the conspiracy. In the end, while the lenders believed that they were lending between 80-90% of the values of the properties, they were typically lending 150-200% of the values of the properties.
Another major customer for Moreno's fraudulent appraisals was James Platts, who operated East Realty Solutions. Platts' scheme was slightly different from Arakelian's scheme. Platts identified properties for sale in some sort of distressed circumstances, and he would enter into a contract to purchase the properties for a relatively modest amount. Prior to actually closing on the transactions, however, Platts located purchasers for the properties, who were typically in poor financial condition, had insufficient money to make a down payment, and were unsophisticated first-time home buyers.
As presented to the lenders, the buyers were purchasing the properties directly from the sellers, and the buyers were making substantial down payments associated with the purchase of the properties. Neither of those representations, however, was accurate.
Platts was paid through the payoff of Lis Pendens he had placed on the properties, which were often more than half of the true values of the properties. These Lis Pendens were essentially the difference between the true sales prices and the sales prices represented to the lenders.
Like Arakelian's scheme, Platts' scheme required drastically overstated sales prices because the loan amounts needed to pay the seller, Platts, and other kickbacks associated with the scheme. Moreno provided the fraudulent appraisals that mirrored the drastically overstated sales prices, leading the lenders to believe that their loans were collateralized by real estate worth much more than it was actually worth.
In terms of the Wire Fraud Scheme, there are a number of properties where Moreno was more than just an appraiser for the property. For example, there was a property located in Pittsburgh, Pa. Moreno negotiated to purchase the property, but prior to the closing, he arranged to sell the property to another buyer. The transaction was structured, however, to make it appear to the lender that Jason Moreno was not involved at all in the transaction, including failing to disclose a substantial payment to him at the closing. The transaction also involved a fake down payment, an undisclosed disbursement to the buyer of the property, and an egregiously fraudulent appraisal.
There were a number of other fraudulent deals involving Moreno himself, Moreno's fiance, his aunt, and his mother. All of these deals involved overstated sales prices, fake down payments, undisclosed disbursements to the buyers, and egregiously overstated appraisals. Another fraudulent transaction involved the purchase of a property by Daniel Hoey, Arakelian's brother-in-law. The settlement statement and other loan documents reflected the purchase of an $800,000 home in Sewickley, Pa., by Arakelian's wife, Samantha, which was financed by a $650,000 loan in which Samantha Arakelian made a substantial down payment associated with the closing. The reality, however, was that Hoey purchased the property for $441,000 and received $140,000 cash back, and neither he nor Samantha Arakelian made a down payment. In fact, Samantha Arakelian got $40,000 for the transaction. Moreno provided a fraudulently elevated appraisal that supported the fraudulently elevated $800,000 sales price, and another appraisal some months later related to a cash-out refinance associated with that same property.
Judge Fischer scheduled sentencing for Jan. 15, 2014. The law provides for a total sentence of 140 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the criminal history, if any, of the defendant.
The Western Pennsylvania Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Moreno. The lead investigator on the case was United States Secret Service Special Agent Keith Heckman.
Jury Finds New York Man Guilty of Drug Trafficking and Gun CrimesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on September 19, 2013, a federal jury sitting in Brattleboro returned guilty verdicts against James Collins, 33, of Hudson, New York, on charges of distribution of crack cocaine, possession with intent to distribute crack cocaine, and carrying a firearm during and in relation to a drug trafficking crime. The verdict came on the third day of the trial.
According to court records, Collins distributed crack cocaine in Rutland on four occasions in the summer of 2012. At the end of the summer, he traveled to Ludlow to with crack cocaine he intended to sell. During a traffic stop of his vehicle en route to Ludlow, law enforcement seized the crack cocaine and a loaded semi-automatic handgun from his person.
Collins faces imprisonment for a term of up to 20 years on each of the drug charges. The firearm charge is punishable by a consecutive term of not less than 5 years and not more than life.
United States Attorney Tristram J. Coffin commended the joint investigation by the Vermont Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Collins was represented by Barre attorney David Kidney. The case was prosecuted by Assistant United States Attorney Christina Nolan.
U.S. Attorney Coffin noted also that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and ATF, Project Safe Neighborhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.
Jury Finds Former Spokane Indian Reservation Resident Guilty of Child Sexual Abuse ChargesRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that a Federal jury sitting in Spokane found Valentin Cardenas Gonzales, age 74, formerly of Ford, Washington, guilty of two charges of Aggravated Sexual Abuse of a Minor and two charges of Abusive Sexual Contact with a Minor. These criminal charges involved three minor children from the Spokane Indian Reservation.
Following the return of the guilty verdicts, United States District Court Judge Thomas O. Rice scheduled a sentencing hearing for December 4, 2013 at 9:00 a.m. At sentencing, Gonzales faces a mandatory minimum 30 year up to a life term of imprisonment on both of the Aggravated Sexual Abuse of a Minor charges and any term of years up to a life term of imprisonment on the Abusive Sexual Contact with a Minor charges. Gonzales also faces a minimum five year up to life term of court supervision following release from Federal prison, up to a $250,000 fine for each charge, and restitution for each of the child victims.
This investigation was conducted by the Federal Bureau of Investigation and the Spokane Tribal Police Department. The case was prosecuted by K. Jill Bolton, Assistant U.S. Attorney for the Eastern District of Washington.
CR-12-0022-TOR
James Benjamin Arnold Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, JAMES BENJAMIN ARNOLD, a 25-year-old resident of Missoula, was sentenced to a term of:
- Prison: 6 months, plus an additional 6 months of house arrest with electronic monitoring
- Special Assessment: $100
- Supervised Release: 4 years
ARNOLD was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On July 20, 2010, a Yellowstone County Sheriff's Office deputy initiated a traffic stop on a black 2010 Mercedes Benz SUV after running the license plate and determining that the owner had a valid arrest warrant. A narcotics-detecting K-9 was called to the scene and positively alerted on the vehicle for the presence of narcotic odors. The vehicle was impounded pending a search warrant application. A subsequent search yielded airline tickets, a cell phone, documents, $14,154 in cash, and user amounts of marijuana.
Detectives had the cellular telephone seized from the vehicle analyzed. The contents revealed that the owner of the vehicle, Joseph Chartraw, had been involved with selling multiple pounds of marijuana, as well as transporting tens of thousands of dollars in cash. Some of the text messages on the phone blatantly discussed prices for pounds of marijuana, smuggling bulk cash via the airlines, having bulk cash from drug proceeds deposited into bank accounts, and dealing marijuana to the Indian reservations in Montana. According to the text messages on the phone, marijuana was distributed to Browning, Polson, Crow Agency, as well as Havre, St. Ignatius, Great Falls, Missoula, Cut Bank, Lolo, and other places throughout Montana.
One of the subjects involved in the conspiracy was ARNOLD. ARNOLD was approached by other members of the conspiracy and agreed to act as a courier for the organization. ARNOLD is reported to have made between 7 and 10 trips for Chartraw to California and Oregon to pick up marijuana and to deliver cash to the sources of supply. ARNOLD's expenses were paid by the organization and he was paid cash and marijuana for each of his trips.
The evidence would prove that it was reasonably foreseeable to ARNOLD, based on his own trips to California and Oregon, as well as his relationship with co-conspirators, including Brandon Bickford, that the conspiracy involved at least 100 kilograms of marijuana and was possessed with the intent to distribute.
Chartraw and Bickford pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ARNOLD will likely serve all of the time imposed by the court. In the federal system, ARNOLD does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Billings, on September 19, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
JONATHAN RAY GONSALEZ, a 29-year-old resident of Box Elder, appeared on a charge of aggravated sexual abuse/aiding and abetting. He is currently detained. If convicted of this charge, GONSALEZ faces possible penalties of life in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictments Returned in Hammond Federal CourtRead the Press Release
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on September 18, 2013:
Michael Radovick, 28, of Gary, Indiana, was charged with possession of a firearm by a convicted felon and possession of a firearm by an unlawful user of controlled substances.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Kiontay Pennington, 34, of Gary, Indiana, Oscar Cosme, 40, of East Chicago, Indiana, and Adron Tancil, 36, address unknown, were charged with use of a firearm during and in relation to a drug trafficking crime and the murder of Julio Cartagena in May 2003.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
I-55 Bandit Charged with One Count of Bank RobberyRead the Press Release
St. Louis, MO – ANDREW MABERRY, who the FBI referred to as the I-55 Bandit, was charged with the July 2, 2013, robbery of the Commerce Bank in Jefferson County, Missouri.
Maberry, O’Fallon, IL, was indicted by a federal grand jury on one felony count of bank robbery. The federal investigation is continuing.
If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation with assistance from multiple law enforcement agencies from several states. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Hartford Man Pleads Guilty to EscapeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ENRIQUE LUCIANO, also known as “Pucho,” 26, of Hartford, pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to one count of escape from the custody of the Attorney General.
According to court documents and statements made in court, on May 27, 2010, LUCIANO was sentenced in Hartford federal court to 60 months of imprisonment for possession of a firearm by a convicted felon. On February 20, 2013, he was transferred to Watkinson House Residential Reentry Center, a halfway house in Hartford. On July 11, 2013, after being denied a job search pass by Watkinson staff, LUCIANO was seen leaving the halfway house with most of his belongings. He did not return.
On July 19, 2013, LUCIANO was arrested by the U.S. Marshals Service. At the time of his escape, LUCIANO had a projected release date of August 18, 2013.
Judge Eginton has scheduled sentencing for December 12, 2013, at which time LUCIANO faces a maximum term of imprisonment of five years and a fine of up to $250,000.
LUCIANO has been detained since his arrest.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Halliburton Pleads Guilty to Destruction of Evidence in Connection with Deepwater Horizon Disaster and Is Sentenced to Statutory Maximum FineRead the Press Release
Halliburton Energy Services Inc. (Halliburton) pleaded guilty today to destroying evidence pertaining to the 2010 Deepwater Horizon disaster and was sentenced to the statutory maximum fine, the Justice Department announced.
In addition, a criminal information was filed today charging a former Halliburton manager, Anthony Badalamenti, 61, of Katy, Texas, with one count of destruction of evidence.
“These announcements mark the latest steps forward in the Justice Department’s efforts to achieve justice on behalf of all those affected by the Deepwater Horizon explosion, oil spill, and environmental disaster,” said Attorney General Eric Holder. “Halliburton and one of its managers have now been held criminally accountable for their misconduct, underscoring our continued commitment to ensuring that the victims of this tragedy obtain justice, and to safeguarding the integrity of relevant evidence. I am grateful to all of the Justice Department leaders, federal investigative agency partners, and state and local allies whose tireless work made this outcome possible – and whose daily efforts will help to prevent such incidents from happening in the future.”
“Halliburton destroyed evidence during the investigation of the largest environmental disaster in U.S. history, and now both the company and the Halliburton manager who ordered the destruction are being held to account,” said Acting Assistant Attorney General Mythili Raman of the Criminal Division. “I am grateful for the tenacious work of the Deepwater Horizon Task Force prosecutors and investigators who have worked tirelessly on this and other Deepwater Horizon matters to ensure that justice is brought to the people of the Gulf Coast and to the families of the eleven men who perished on April 20, 2010.”
Halliburton’s guilty plea was accepted, and its sentence was imposed, by U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana. During the guilty plea and sentencing proceeding today, Judge Milazzo found, among other things, that the sentence appropriately reflects Halliburton’s offense conduct. Judge Milazzo also noted that the statutory maximum fine and three year probationary period provide just punishment and appropriate deterrence, and noted Halliburton's self-reporting of the misconduct, substantial and valuable cooperation in the government's investigation, and substantial efforts to recover the deleted data.
According to court documents, on April 20, 2010, while stationed at the Macondo well site in the Gulf of Mexico, the Deepwater Horizon rig experienced an uncontrolled blowout and related explosions and fire, which resulted in the deaths of 11 rig workers and the largest oil spill in U.S. history. Following the blowout, Halliburton conducted its own review of various technical aspects of the well’s design and construction. On or about May 3, 2010, Halliburton established an internal working group to examine the Macondo well blowout, including whether the number of centralizers used on the final production casing could have contributed to the blowout. A production casing is a long, heavy metal pipe set across the area of the oil and natural gas reservoir. Centralizers are metal devices that protrude from various intervals of the casing strings of a well, which can help keep the casing centered in the wellbore away from the surrounding walls as it is lowered and placed in the well. Centralization can be significant to the quality of subsequent cementing around the bottom of the casing. Prior to the blowout, Halliburton had recommended to BP the use of 21 centralizers in the Macondo well. BP opted to use six centralizers instead.
As detailed variously in the charging instruments filed against Halliburton and against Badalamenti, during the relevant time period Badalamenti was Halliburton’s cementing technology director. In May 2010, in connection with Halliburton’s internal post-incident examination of the Macondo well, Badalamenti directed a senior program manager for Halliburton’s Cement Product Line (Program Manager) to run two computer simulations of the Macondo well final cementing job using Halliburton’s Displace 3D simulation program. Displace 3D was a next-generation simulation program that was being developed to model fluid interfaces and their movement through the wellbore and annulus of a well. The modeling sought to compare the 21 centralizers Halliburton had recommended to BP versus the six centralizers BP ultimately used. As detailed in the charging documents, the simulations indicated to those present that there was little difference between using six and 21 centralizers on the Macondo well. Badalamenti directed Program Manager to destroy these results, and Program Manager did so.
In or about June 2010, similar evidence was also destroyed in a later incident. Badalamenti asked another, more experienced, employee (“Employee 1”) to run simulations again comparing six versus 21 centralizers. Employee 1 reached the same conclusion. Badalamenti then directed Employee 1 to “get rid of” the simulations, and, after a period of delay, Employee 1 deleted them from his computer.
Efforts to forensically recover the original destroyed Displace 3D computer simulations during ensuing civil litigation and federal criminal investigation by the Deepwater Horizon Task Force were unsuccessful.
Halliburton’s guilty plea and sentence, and the criminal charge announced today against Badalamenti, are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Acting Assistant Attorney General Mythili Raman and led by John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and the Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana and other U.S. Attorney’s Offices; and investigating agents from: the FBI; Department of the Interior, Office of Inspector General; Environmental Protection Agency, Criminal Investigation Division; Environmental Protection Agency, Office of Inspector General; National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.
The case is being prosecuted by Deepwater Horizon Task Force Director Buretta, Deputy Director William Pericak, and Task Force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar.
An information is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Hagerstown Dentist Indicted on Charges of Enticing A Minor to Engage in Sexual Activity and Distribution of OxycodoneRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment today charging Vaqar Ahmad Choudry, age 42, of Germantown, Maryland, with distribution of oxycodone and enticement of a minor to engage in sexual activity.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District; and Washington County Sheriff Douglas Mullendore.
According to the indictment and a related criminal complaint, Choudry is a dentist who owns Hagerstown Dental Center, located at 301 East Antietam Street in Hagerstown. The criminal complaint alleges that Choudy provided a cooperating source with an illicit prescription for oxycodone, in exchange for the source’s assistance in arranging a meeting with a fictional minor child at a hotel in Hagerstown.
According to the criminal complaint, in May 2013, the Washington County Narcotics Task Force (WCNTF) received complaints alleging that Choudry was writing prescriptions for pain medication without medical justification. WCNTF officers initiated an investigation and in early September 2013, law enforcement learned that Choudry told a confidential source that he would like to have sex with a prepubescent girl. Choudry asked the source to find him a girl with whom he could have sex. On September 6, 2012, Choudry provided the confidential source with a prescription for 15 percocet pills, in exchange for the source arranging a meeting with a minor female. At the direction of WCNTF agents, the confidential source arranged a meeting with Choudry and a fictional girl at a Hagerstown motel on September 12, 2013. Choudry was arrested when he arrived for the meeting.
Choudry faces a maximum sentence of 20 years in prison for the drug charge, and a mandatory minimum of 10 years and a maximum of life in prison for enticement of a minor. A detention hearing was held earlier today in U.S. District Court in Baltimore before U.S. Magistrate Judge Timothy Sullivan, who ordered the Choudry remain detained. No other court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised DEA, Washington County Sheriff’s Office and Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter J. Martinez, who is prosecuting the case.
Gregory John Harris Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, GREGORY JOHN HARRIS, a 57-year-old resident of Humboldt County, California, was sentenced to a term of:
- Probation: 3 years, with 6 months house arrest with electronic monitoring
- Special Assessment: $100
- Fine: $15,000
HARRIS was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
From the summer of 2008, until the summer of 2010, Joseph Chartraw organized and profited from a marijuana distribution network across Montana. Chartraw had numerous distributors and drug couriers in Montana. Chartraw's sources of supply were identified by law enforcement as being in California. Chartraw used his cellular telephone to communicate with everyone in his distribution organization - including some of his sources of supply in California.
Chartraw's original connection to a group of marijuana growers and distributors in California was K.F. K.F. would bring together multiple growers at his home whenever Chartraw or one of his couriers would be arriving in California. K.F. would have several individuals bring their marijuana to his home for redistribution to Chartraw or one of his couriers. HARRIS was one of the sources of supply for Chartraw through K.F. HARRIS knew he was supplying marijuana for resale to K.F. and received money for each of the transactions. K.F. was the primary contact for the group and Chartraw until K.F. and Chartraw had a falling out over a vehicle title.
The evidence would show that HARRIS provided at least more than 2.5 kilograms of marijuana but less than 5 kilograms of marijuana to K.F. for redistribution to Chartraw during the course of his involvement in the conspiracy.
Chartraw pled guilty to federal charges and has been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HARRIS will likely serve all of the time imposed by the court. In the federal system, HARRIS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Goodwin Charges Mingo Judge in Second ConspiracyRead the Press Release
CHARLESTON, W.Va. - U.S. Attorney Booth Goodwin today charged Mingo County Circuit Judge Michael Thornsbury in a second conspiracy to deprive a Mingo County resident of his constitutional rights. In a court filing this morning, Goodwin alleged that Thornsbury conspired with other Mingo County elected officials to cover up evidence of illegal drug use and other misconduct by late Mingo County Sheriff Eugene Crum.
Earlier this year, according to Goodwin, a Mingo County drug defendant began to provide the Federal Bureau of Investigation (FBI) with information about misconduct by then Sheriff Crum, including illegal drug use and election law violations. The drug defendant is identified in today’s charging document as “G.W.” Crum learned that G.W., along with G.W.’s attorney, were providing information about Crum to the FBI. Crum and other Mingo elected officials, including Thornsbury, conspired to protect Crum and to stop G.W. from informing to the FBI. They arranged to offer G.W. a favorable plea deal if he would fire his attorney, who was assisting G.W.’s communication with federal authorities, and replace him with an attorney chosen by Crum and the other elected officials.
In the face of this coercion, today’s charging document alleges, G.W. fired his attorney, which the officials involved believed would protect Crum from federal investigation and public embarrassment.
Today’s charge was filed in a court document known as an “information.” A defendant may be charged through an information only with the defendant’s consent, so the filing of an information often indicates that a defendant has agreed to cooperate with prosecutors.
The investigation is being conducted by the FBI and the West Virginia State Police. Counsel to the United States Attorney Steven Ruby and Assistant United States Attorney Haley Bunn are handling the prosecution.
Note: An information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Click here to view a copy of the information
Gang Member Sentenced to Prison for Gun and Drug ChargesRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Roy Jesse Gomez, 31, of Boise, Idaho, was sentenced to 76 months in prison followed by four years of supervised release for distribution of methamphetamine and unlawful possession of firearms. U.S. District Judge Edward J. Lodge sentenced Gomez at the federal courthouse in Boise. Gomez pleaded guilty to the charges on June 27, 2013.
According to the plea agreement, Gomez admitted to selling methamphetamine and firearms to a person who was acting as a confidential informant. Gomez sold methamphetamine to the confidential informant on multiple occasions beginning in January 2013. Gomez also sold the same individual nine firearms in January 2013. According to information presented in court, eight of the firearms were stolen and the last firearm had an obliterated serial number. Gomez, a documented member of a criminal gang, was prohibited from possessing the firearms because he was previously convicted of the felony crime of burglary in 2011.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force and the High Desert Drug Enforcement Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Correction.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Franklyn Don Hammontree Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 19, 2013, before U.S. District Judge Donald W. Molloy, FRANKLYN DON HAMMONTREE, a 40-year-old resident of Billings, was sentenced to a term of:
- Prison: 15 months, concurrent with a state sentencing
- Special Assessment: $100
- Supervised Release: 3 years
HAMMONTREE was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Kris A. McLean, the government stated it would have proved at trial the following:
On August 30, 2012, a Montana Thirteenth Judicial District Court Judge issued a bench warrant of arrest for HAMMONTREE for alleged violations of his probation and absconding from supervision. His parole officer received information that HAMMONTREE was staying at a local Billings hotel.
On September 27, 2012, HAMMONTREE was arrested at the hotel and a search of his belongings was authorized by the probation officer. Included with his belongings was a backpack that HAMMONTREE admitted was his. A Hi-Point pistol and two loaded magazines were found inside. He immediately made the statement, "that's my protection cause my brother got shot last night." The officers seized the pistol, a Hi-Point, Model C9, 9mm Luger and magazines.
At the time of his arrest on September 27, 2012, HAMMONTREE was a convicted felon on state supervision for a felony drug offense and therefore prohibited from possessing firearms or ammunition.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HAMMONTREE will likely serve all of the time imposed by the court. In the federal system, HAMMONTREE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Four Michigan Residents Charged with Credit Card FraudRead the Press Release
BUFFALO, N.Y. --U.S. Attorney William J. Hochul, Jr. announced today that Rodney Gilliam, 25, of Southfield, Michigan, Raina Johnson, 22, of Detroit, Michigan, Deantuan Wiley, 24, of Sterling Heights, Michigan, and George Brown, 24, of Farmington Hills, Michigan, were arrested and charged by criminal complaint with conspiracy to commit access device fraud. The charge carries a maximum sentence of five years in prison, a $250,000 fine, or both. In addition, Wiley was charged with possession of 15 or more counterfeit access devices, which carries a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney John E. Rogowski, who is handling this case, stated that according to the complaint, on July 3, 2013, a vehicle the four defendants were riding in was searched at the Lewiston Bridge. Law enforcement officers found 98 counterfeit credit cards in the car. A subsequent investigation uncovered security surveillance videos from various retail stores in Pennsylvania, Connecticut, Rhode Island, and New York which captured the defendants using numerous counterfeit credit cards to purchase gift cards and other merchandise, some of which also were found in their vehicle.
The arrest is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Former Telco Federal Credit Union Employee Pleads Guilty to Making False EntriesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Donna Harabin, 61, of Clearwater, Florida, pleaded guilty to making false credit institution entries before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated between January 2008 and December 2008, Harabin was president and manager of Telco Federal Credit Union in Elmira, N.Y. During that time, the defendant changed the delinquency dates and falsified payment entries on various loan accounts when she knew that the accounts were delinquent and in default. Harabin changed the due dates and payment information in the reports to make the loans appear more current.
The plea is the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for December 11, 2013, at 3:00 p.m. before Judge Larimer.Former Stock Promoter and Attorney Arrested in Securities Fraud ConspiracyRead the Press Release
Defendants Allegedly Deceived Potential Investors About ConnectAJet.com
DALLAS — Former stock promoter Jason Wynn and Attorney Martin Cantu were arrested this week by special agents with the FBI on charges outlined in a federal indictment, returned on September 11, 2013, and unsealed today, which charges each of them with offenses related a stock fraud scheme they ran involving a company known as ConnectAJet.com. Cantu was arrested on Wednesday, made his initial appearance yesterday in federal court, and was released on bond. Wynn was arrested this morning and is scheduled to appear this afternoon, at 2:00 p.m., for his initial appearance before U.S. Magistrate Judge David L. Horan. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
ConnectAJet.com, Inc. (CAJT) was a company that purportedly would provide the first online, real-time booking system for private jet charters. Essentially, it would serve the same function as other well-known online booking systems but would focus on high-end chartered aircraft. Wynn, who worked as a penny-stock promoter, used-car salesman and consultant, partnered with Cantu to build and market the idea into a profitable business. Cantu owned the majority of shares of CAJT.
The indictment alleges that from approximately May to October 2007, Wynn, 31, and Cantu, 56, conspired with each other, and others, to commit securities fraud by deceiving potential investors regarding CAJT. As part of their scheme, Wynn and Cantu caused public statements and advertisements to be issued that included numerous false and misleading statements about the progress and status of the company’s real-time booking system; CAJT’s relationships with reputable companies; and CAJT’s customer base. The false and misleading statements led investors to believe CAJT’s online booking system was complete, when, in fact, it never was developed past the initial concept. The false and misleading statements also led investors to believe that the company had achieved operational success it had not achieved. These false and misleading statements increased demand for CAJT shares, which allowed Wynn, Cantu and others to sell their CAJT shares at artificially-inflated prices.
The indictment names co-conspirator Ryan Reynolds, a former stock broker, who pleaded guilty in the Southern District of Florida to conspiracy to commit securities fraud, based on his involvement in the CAJT conspiracy.
From August 2007 through January 2008, entities controlled by Wynn sold 4.2 million CAJT shares in the public market, resulting in profits of $2.585 million. During the approximate two-month time frame of August to October 2007, Cantu realized $548,881 in profits from the sale of 250,000 CAJT shares he controlled.
The indictment charges each defendant with one count of conspiracy to commit securities fraud and one substantive count of securities fraud. A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalties are five years in prison and a $250,000 fine for the conspiracy count and 20 years in prison and a $5 million fine for the securities fraud count. In addition, restitution could also be ordered.
Today’s announcement is related to efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI. Assistant U.S. Attorneys P. J. Meitl and J. Nicholas Bunch are in charge of the prosecution.
(Download Factual Basis)
Former Social Worker Sentenced for Health Care FraudRead the Press Release
Continued to Practice After Her License Was Suspended in 2005
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Rosemary McDowall, age 59, of Silver Spring, Maryland, today to six months of home detention as part of 18 months probation, for health care fraud. Judge Titus also ordered McDowall to pay restitution of $151,404.73.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, in 1996, McDowall, a licensed social worker, signed a contract to become a participating provider with Blue Cross Blues Shield of Maryland (BCBS). As a participating provider, McDowall was entitled to accept payment directly from BCBS for services rendered. Under the terms of her contract, McDowall was obligated to notify BCBS if she lost her license to practice as a social worker.In 2005, McDowall’s license to practice as a social worker was suspended by the Maryland State Board of Social Work Examiners. McDowall failed to report to BCBS that her license to practice was suspended, as was required under her contract, and she continued to see patients and caused claims to be submitted to BCBS. In 2008, still unaware that McDowall’s license had been suspended, BCBS terminated McDowall as a participating provider, but permitted her to continue to be a non-participating provider with BCBS. BCBS participating providers send claims to, and are paid directly by, BCBS. Patients of BCBS non-participating providers must pay the provider directly and the patients are reimbursed by BCBS the allowed amount of their claim. Despite the fact that her license to practice social work had been suspended, McDowall continued to submit claim forms to BCBS for the patients she treated. BCBS reimbursed McDowall’s patients the allowed amount, and McDowall collected her allowed fees from the patient.
In 2010, BCBS learned that McDowall had not been licensed to practice social work since 2005 and stopped paying all claims submitted by McDowall or BCBS members who had seen McDowall for treatment. McDowall admitted that fraudulent claims submitted during the scheme total between $120,000 and $200,000.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mara Zusman Greenberg and Kristi N. O’Malley, who prosecuted the case.
Former Social Security Administrator to Plead Guilty to Aggravated Identity Theft, Mail Fraud, Unauthorized Sale of Stolen Stocks, Tax ChargesRead the Press Release
PROVIDENCE, R.I. – Randolph Hurst, 50, of West Warwick R.I., a former Assistant District Manager for the Social Security Administration in Rhode Island, has agreed to plead guilty to stealing the identity of a Coventry man and using the victim’s identity to fraudulently sell more than $160,000 worth of stock certificates belonging to the victim. Hurst has also agreed to plead guilty to failing to paying $61,999 in taxes owed to the IRS.
According to a plea agreement filed with the U.S. District Court on Wednesday, Hurst will plead guilty to one count each of aggravated identity theft, transportation of stolen securities and tax evasion; two counts of mail fraud; and three counts of filing a false tax return.
A co-defendant in this matter, Justin Silveira, 29, of Coventry, has agreed to plead guilty to two counts of perjury and one count of obstruction of justice. It is alleged that Silveira lied to a grand jury which was investigating this matter. The plea agreements in this matter are part of a package plea agreement whereas both defendants must plead guilty or both agreements will be vacated.
The plea agreements were announced by United States Attorney Peter F. Neronha; Cheryl Garcia, Acting Special Agent in Charge of the New York region of the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; and Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
According to court documents, including an indictment returned in this matter in November 2012, Hurst allegedly used personal identifying information belonging to the victim to open a joint account at Summit Brokerage Services in Providence in his name and in the name of the victim, without the victim’s permission. Hurst allegedly provided documentation to Summit purportedly authored and signed by the victim, requesting the deposit of two stock certificates owned by the victim. The victim claims he never authorized the deposit of the stock certificates and that he had not endorsed the stock certificates.
It is alleged in court documents that in October 2010, without the victim’s knowledge, Hurst requested that Summit sell the stocks and issue a check in his name and in the victim’s name for $157,747.49, which represented a portion of the proceeds of the sale of the stocks, and that the check be sent by overnight courier to the Coventry address of Justin Silveira. It is alleged that on October 22, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.
In addition, court documents allege that in October 2010, Hurst requested a check from Summit in the amount of $3,980.46, in his name and in the victim’s name, for the remaining proceeds from the sale of the stock, and that it be sent to the same address in Coventry. On November 8, 2010, the check was deposited into a bank account owned jointly by Hurst and his wife.
It is alleged that Hurst and his wife spent the proceeds of the sale of the stock, $161,727.95, on personal items and expenses.An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
At sentencing, Hurst faces statutory penalties of up to 10 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for mail fraud; up to 10 years in prison followed by a term of up to 3 years of supervised release and a fine of up to $250,000 for transportation of stolen securities; up to 3 years imprisonment followed by up to 1 year of supervised release and a fine of up to $100,000 for filing a false tax return; up to 5 years imprisonment followed by up to 3 years of supervised release and a fine of up to $100,000 for tax evasion; and a mandatory consecutive sentence of 2 years in federal prison followed by up to 1 year of supervised release and a fine of up to $250,000 for aggravated identity theft.At sentencing, Silveira faces statutory penalties of up to 5 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for perjury; up to 10 years in federal prison followed by a term of supervised release of up to 3 years and a fine of up to $250,000 for obstruction of justice.
The cases are being prosecuted by Assistant U.S. Attorney Dulce Donovan.The matter was investigated by federal agents from the FBI; U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations; Internal Revenue Service – Criminal Investigation; and Social Security Administration, Office of the Inspector General/Office of Investigations.
This law enforcement action is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.
Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
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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]Former Philadelphia Traffic Court Judge Pleads Guilty to Scheme That Defrauded Pennsylvania of State Grant FundsRead the Press Release
PHILADELPHIA - Former Philadelphia Traffic Court Judge Robert Mulgrew, 55, of Philadelphia, pleaded guilty today to mail fraud and conspiracy to commit mail fraud in connection with a scheme to defraud the Pennsylvania Department of Community and Economic Development (“DCED”). Mulgrew also pleaded guilty to filing a false tax return.
Mulgrew and co-defendant Lorraine Dispaldo, who previously pleaded guilty, engaged in a scheme to fraudulently receive and misuse Pennsylvania state grant funds awarded to non-profit groups. Between 1996 and 2008, the DCED awarded hundreds of thousands of dollars in grants to two community groups with which Mulgrew and Dispaldo were associated. DCED awarded more than $450,000 in grants to the Friends of Dickinson Square (“FDS”) with the understanding that the grants were to be used to purchase equipment and materials for the maintenance of Dickinson Square Park at 4th & Tasker Streets, Philadelphia, and surrounding neighborhood revitalization. Mulgrew, the Vice-President of FDS, signed the FDS grant contracts with DCED. DCED also awarded approximately $397,000 in grants to the Community to Police Communications (“CPC”) with the understanding that the grants were to be used to purchase communications equipment for the police and to purchase materials to secure vacant lots and buildings for the protection of the police. Dispaldo signed the CPC grant contracts with DCED.The defendants misrepresented their intentions to DCED, and that - contrary to their agreement to spend grant funds solely to purchase equipment and materials for neighborhood revitalization and improved communications with the police - the defendants used thousands of grant dollars to pay Mulgrew’s relatives and associates. They represented that they were paying for work done on behalf of FDS and CPC. After distributing grant funds to relatives and associates, the defendants supplied false and misleading information to DCED to conceal the actual amount of grant funds which they paid to the relatives and associates contrary to the express purposes of the grant.
Mulgrew and Dispaldo spent thousands of dollars of grant funds for their own personal uses. Mulgrew improperly reimbursed himself from FDS funds for thousands of dollars of expenditures which he claimed were incurred by FDS when they were not and for his expenditures for items not authorized under the terms of the FDS grants. Mulgrew and Dispaldo supplied DCED with false documents to conceal their own use of grant funds and other improper uses of the funds.
Mulgrew did not report the additional income from the fraud scheme on his tax return and claimed false business deductions which improperly reduced his tax liability.
Mulgrew faces a maximum possible sentence of 23 years in prison, five years supervised release, restitution to the IRS and restitution to the Commonwealth of Pennsylvania. Dispaldo, who pleaded guilty in April, is scheduled for sentencing on November 25, 2013.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L.Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525