Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 September 2013
Three Men Indicted on Charges of Stealing Drugs from Walter Reed and Fort Belvoir HospitalsRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Issa Wasco Koroma, age 61, of Springdale, Maryland; Rodger George Gurdon, age 42, of Waldorf, Maryland; and Daniel Mark Wilkerson, age 39, of Waldorf, Maryland on charges arising from a conspiracy to steal prescription drugs from two federal military hospitals. The indictment was returned yesterday.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.“Protecting the legitimate pharmaceutical supply chain is an FDA priority,” said SAIC Antoinette V. Henry. “The integrity of the drug supply is safeguarded by protections imposed at every level of a drug's distribution. Once drugs are removed from this closed system, there can be no guarantee that the product is safe, effective or even that it is what it purports to be. This could threaten the health of future patients who rely on these drugs.”
The five count indictment alleges that Koroma and Gurdon were pharmacy technicians at Walter Reed National Military Medical Center and Fort Belvoir Community Hospital, respectively, where they had access to medications stored at the hospitals’ pharmacies. From January to June 2013, Koroma stole Norditropin and Botox from Walter Reed, which he sold to Gurdon. Gurdon also stole Norditropin from Fort Belvoir. Gurdon sold these stolen prescription drugs to Wilkerson.
The indictment seeks forfeiture of at least $1.3 million, the value of drugs stolen from the pharmacies.
The defendants face a maximum sentence of five years in prison for the conspiracy. Koroma also faces a maximum sentence of 10 years in prison on each of four counts of theft of medical products. Wilkerson and Koroma are scheduled for their initial appearance in federal court in Greenbelt on September 20, 2013 at 3:30 p.m. Gurdon’s initial appearance has not 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 the DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Mara Zusman Greenberg, who are prosecuting the case.
Three Former Construction Company Officers Plead Guilty to Fraud ConspiracyRead the Press Release
Jackson, Miss - H. Claiborne Frazier, 41, Austin W. Frazier, 38, and C.E. Frazier, Jr., 65, all from the Jackson metro area, pled guilty in federal court on Monday, September 16, 2013, for their roles in a conspiracy to commit bank fraud, mail fraud, and wire fraud, announced U.S.Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
From January 2003 through at least June 2008, the Fraziers conspired to commit bank fraud, mail fraud and wire fraud through Frazier Construction Company, Inc., Frazier Development Company, LLC, Van Buren LLC, and Olde Colony, LLC. The Fraziers defrauded BancorpSouth Bank on a $5.4 M construction loan and M&F Bank on a $2.8M construction loan. They also defrauded their bonding company, Travelers Casualty and Surety Company of America to get funding to pay Frazier Construction subcontractors and to obtain funding to continue the daily business operations of Frazier Construction to complete its outstanding construction projects.
The Fraziers will be sentenced on January 9, 2014. Claiborne Frazier faces a maximum sentence of 30 years in prison and a $250,000 fine. Austin Frazier and C.E. Fraizer each face a maximum sentence of five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carla J. Clark is prosecuting the case for the government.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
The Macalan Group, Inc. Agrees to Resolve Overcharging AllegationsRead the Press Release
DENVER – The Macalan Group, Inc., formerly known as NEK Advanced Securities Inc. (NEK), a security contractor headquartered in Colorado Springs, Colorado, has agreed to resolve allegations that it submitted false claims in connection with a contract with the Joint Improvised Explosive Device Defeat Organization (JIEDDO), U.S. Attorney John Walsh announced on behalf of the Justice Department and its investigative partners.
NEK’s contract with JIEDDO required it to develop and deploy teams of specialized personnel to Iraq and Afghanistan to combat improvised explosive devices. The government alleged that NEK submitted false invoices for payment in connection with this contract that claimed excessive or unallowable costs. To resolve these allegations, NEK has paid the United States $2.08 million, and will also relinquish an outstanding invoice for $744,969, and turn over numerous weapons and accessories acquired under the contract.
“No government contract is more important than one that supports the security efforts of our nation overseas,” said U.S. Attorney John Walsh. “When a contractor fails to bill by the contract rules set up to protect American taxpayers, our office will diligently and aggressively seek to recover any losses, as this case demonstrates.”
“This settlement demonstrates our commitment to pursue contractors who fail to accurately bill the government,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Justice Department will continue to ensure that those who do business with the government do so honestly and fairly and uphold the integrity of our public contracting process.”
“We are very pleased with today’s settlement with over two million dollars back to the U.S. Government,” said Frank Robey, Director of the United States Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Our special agents have worked tirelessly on this case, along with our partners in Federal law enforcement and the Department of Justice, and will continue to do so as we continue to scrutinize and monitor contracts affecting the U.S. Army.”
“The settlement in this investigation is the result of a highly successful joint effort by the Defense Criminal Investigative Service (DCIS) and our law enforcement partners from the U.S. Army Criminal Investigations Command and the Department of Justice, to include support provided by the Defense Contract Audit Agency,” said Janice M. Flores, Special Agent in Charge of the DCIS Southwest Field Office. “This settlement highlights the Federal Government's continuing resolve to recover losses to the American taxpayer when a contractor has claimed money to which it was not entitled. The United States must be able to count upon Government contractors to seek payment only for services performed or material provided, in conformance with their contractual obligations.”
The United States Attorney’s Office is grateful for the hard work of the investigative partners that produced today’s result, including the Civil Division, Commercial Litigation Branch; the Army Criminal Investigation Command Major Procurement Fraud Unit; the Defense Criminal Investigative Service; the Defense Contract Audit Agency; and, the Contract Integrity Center, Office of General Counsel, Defense Contract Management Agency.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Assistant U.S. Attorney J. Chris Larson and Department of Justice Trial Attorney Benjamin Wei handled this matter on behalf of the United States.
####
Tennessee Woman Charged in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tekilla Frisbie, 32, of Tennessee, was charged by criminal complaint with production, receipt and distribution of child pornography. The charges carry a mandatory minimum sentence of 15 years in prison, a maximum of 30 years, a $500,000 fine or both.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in July 2013, the FBI Office in Elmira, N.Y. was informed that a man from Maryland exchanged images of child pornography with a woman in the Western District of New York between May and August 2011. The investigation traced the images to a cell phone used by the defendant during that time. According to the complaint, the phone belonged to a friend of Frisbie's who told law enforcement officers that the defendant had lived with her and looked after her children.
The defendant was interviewed by FBI Special Agents in Tennessee and admitted that while living in the Western District of New York, she produced images of her friend's child then used her friend's cell phone to exchange the images with the man in Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint was the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
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.South Jordan Man Sentenced to 78 Months in Prison for Real Estate Investment Fraud SchemeRead the Press Release
Received Around $49 million from Investors; Paid About $37 million in Ponzi PaymentsSALT LAKE CITY – Kenneth Case Tebbs, age 42, of South Jordan, will spend 78 months in federal prison after pleading guilty to one count of wire fraud in connection with a real estate investment scheme. U.S. District Judge David Sam imposed the sentence Monday afternoon in U.S. District Court in Salt Lake City.
Judge Sam scheduled an Oct. 10, 2013, hearing to resolve restitution issues in the case. Tebbs must report to the U.S. Bureau of Prisons to begin serving his sentence on Oct. 28, 2013. He will be on supervised release for 36 months when he finishes his prison sentence.
According to a sentencing memorandum filed by the U.S. Attorney’s Office, buying and selling residential properties and undeveloped lots was a hot and profitable investment during Utah’s real estate boom from 2004 to 2007. Starting in 2005, Tebbs through his two companies, Twin Peaks Financial and MNK Investments, attempted to take advantage of the boom by promising significant annual returns of 18 percent plus origination points ranging from 1 to 5 percent to investors. However, federal prosecutors say his business plan exceeded economic reality and beginning in 2006, the investment plan quickly migrated to a Ponzi scheme which could only be sustained through soliciting more investors.
In a plea agreement reached with federal prosecutors, Tebbs admitted that in 2006, he expanded Twin Peaks’ business to focus on the purchase and acquisition of large subdivision projects of approximately 20 lots. At this point, Tebbs claims he began to lose control of the business. Money that was needed to fund these larger projects quickly exceeded Twin Peaks’ incoming cash flow. He admitted deciding that the way to sustain Twin Peaks’ business operations was through the infusion of new investor money. He also admitted recognizing that Twin Peaks could not continue to sustain its ongoing purchases or larger projects. Consequently, the number of investors quickly exceeded the number of investment properties under Twin Peaks’ ownership and control. To keep the business going through new investments, Tebbs admitted he began falsifying and forging recording stamps on old trust deeds and provided new investors with “new” trust deeds, knowing that multiple investors were now secured by the same property.
As the Ponzi scheme progressed, Tebbs admitted knowing that the total amount of new investor funds used to pay old investors far exceeded any cash flow stemming from the Twin Peaks properties.
“It’s difficult to know what was going through the defendant’s mind as he continuously lied to investors about the soundness of rolling over their investments and returns, knowing full well their investments were not even worth the paper on which fabricated trust deeds were printed and provided to investors,” Assistant U.S. Attorney Mark Y. Hirata wrote in the sentencing memorandum. “The defendant’s excuse of losing control of the business, while convenient, cannot mask his irrefutable knowledge of a failing business, bereft of profits, and his unmistakeable efforts to exploit investors willing to part with their hard-earned money, inheritances, and retirements so that they too could take advantage of the defendant’s genius in cornering Utah’s real estate market.”
Hirata argued for a sentence of 78 months given the egregious nature and circumstances of the Tebbs’ Ponzi scheme.
According to the plea agreement, Tebbs accepted money from investors ranging in amounts from $15,000 to as much as $11.3 million. During the fraud period, he admitted receiving approximately $49 million from investors and paying out approximately $37 million in Ponzi payments.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by the FBI.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)South Holland Man Charged in Southern Illinois Crack Cocaine ConspiracyRead the Press Release
A South Holland, IL, resident was indicted on September 4, 2013, and charged with conspiracy to distribute crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that Albert Wesley, a/k/a “Boog,” “Boogie,” 29, committed the conspiracy offense between 2012, and April 2013, in Williamson and Jackson Counties. Wesley made his initial appearance in federal court on September 16, 2013, and was ordered held without bond pending his September 19, 2013, detention hearing. Co-defendant Eric Scott Russell, 47, previously appeared in federal court and was ordered held without bond pending a November 18, 2013, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Wesley and Russell each face a term of imprisonment of up to 20 years, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Sonny Lionel Crazymule Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 16, 2013, before U.S. District Judge Sam E. Haddon, SONNY LIONEL CRAZYMULE, a 34-year-old resident of Lame Deer, was sentenced to a term of:
- Prison: 71 months
- Special Assessment: $100
- Supervised Release: 3 years
CRAZYMULE was sentenced after a federal district court trial in which he was found guilty of aiding and abetting assault resulting in serious bodily injury.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the United States.
At trial, the following evidence and testimony was presented to the jury.
On the evening of November 16, 2011, the victim was in a tent with a woman in the yard of his mother's home in Lame Deer, which is within the exterior boundaries. The victim heard someone approach the tent and tell him that another woman "S.S." wanted to talk to him. The victim had made plans to be with "S.S." that night, but the victim had not showed up. The victim tried to get out of the tent, and he did get the tent door unzipped, but he was immediately struck in the head with something. The victim did not see who struck him. He lost consciousness, almost immediately, and he did not wake up until later.
The victim's brother was sleeping in the mother's home. He woke up when he heard a commotion outside of the house, and he saw two figures walking away.
After the assault, CRAZYMULE went to the house of "X.X.". CRAZYMULE was covered in blood and told "X.X." that he thought he killed someone. CRAZYMULE then took a shower and changed his clothes.
A few days later on December 1, 2011, CRAZYMULE approached two friends of "Z.Z.'s" at the Cheyenne depot, the local convenience store. CRAZYMULE told them to tell "Z.Z." that "Z.Z." better take the blame for the assault because he is a juvenile.
CRAZYMULE was interviewed. He initially denied any involvement in the assault and refused to admit that he was even at the location of the assault. He then changed his story and admitted that he was present, but he portrayed "Z.Z." as the aggressor. CRAZYMULE claimed that he had to jump on the victim to protect him from "Z.Z.'s" blows. CRAZYMULE also said that "Z.Z." struck the victim with a folding chair three or four times and that during this time he was on the victim protecting him from the blows.
Z.Z." was interviewed. He admitted that he walked to the victim's tent with CRAZYMULE and "S.S.". He asserted that both he and CRAZYMULE assaulted the victim, but it was CRAZYMULE who "went in and beat [the victim]." "Z.Z." admits that he hit the victim with a chair.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CRAZYMULE will likely serve all of the time imposed by the court. In the federal system, CRAZYMULE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Sewickley Woman Charged with Health Care FraudRead the Press Release
PITTSBURGH, Pa. - A Sewickley resident has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud, United States Attorney David J. Hickton announced today.
The one count indictment named Mary Monica Wilson-Lefler, 62, as the defendant.
According to the indictment, Wilson was a salesperson who offered two durable medical equipment companies in the Pittsburgh area a business arrangement involving special air mattresses, known as powered pressure reducing mattresses or PPRAMS. PPRAMS are designed to reduce serious skin ulcers on patients who are essentially bedridden. She visited long term care (LTC) facilities to find patients, and handled all of the paperwork necessary to enable the DME companies to bill Highmark Blue Cross/Blue Shield's Security Blue Medicare Program (Security Blue). In order to qualify for Medicare coverage for these PPRAMS, a doctor must order the item in writing. In this case, Wilson prepared and sent by fax to attending physicians requests for orders for the PPRAMS. The faxed information included patient skin condition reports that falsely reported that the patients all had serious skin ulcers. Some of the these patient skin condition reports contained forged signatures of the LTC staff and some had forged signatures of physicians. In reality, none of the patients had serious skin ulcers or any other qualifying conditions that would meet the Medicare coverage requirements. There were about 83 patients from four facilities in whose names the false claims were made. The total billed was approximately $400,000, and the total paid to the two DME companies was about $200,000.
The law provides for a maximum sentence of 10 years in prison and a $250,000 fine or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Food and Drug Administration, Office of Criminal Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rockville Center Man; Long Island Company Plead Guilty to Cigarette SmugglingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Joseph Ruda, 62, of Rockville Center, N.Y., and Ruda’s closely held corporation, Gutlove and Shirvint, Inc. of Long Island City, N.Y., pleaded guilty to cigarette smuggling before Chief U.S. District Judge William M. Skretny.
According to Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, Ruda was part of a scheme to ship untaxed cigarettes from New York to Kentucky. The cigarettes were then mailed to other states. This was done without the filing of proper forms with the Commonwealth of Kentucky and the states where the untaxed cigarettes were shipped. The scheme is in violation of the Jenkins Act which regulates mail-order sales of cigarettes. It resulted in the shipment of over 58,000 cartons of untaxed cigarettes to Kentucky with a corresponding loss to the Commonwealth of Kentucky of nearly $175,000 in excise taxes.
The defendant also pleaded guilty on behalf of his company, Gutlove and Shirvint, Inc. The company used the ruse of shipping the untaxed cigarettes to several smoke shops on the Cattaraugus Indian Reservation where they were immediately transferred to a second truck and sent back to the Peace Pipe Smoke Shop on the Poospatuck Indian Reservation on Long Island. The cigarettes were then resold in bulk to cigarette bootleggers who then sold them in New York City. This resulted in a loss to the New York State Office of Finance and Taxation of more than $1,440,000.
The scheme was developed after Gutlove and Shirvint entered into an agreement with the Phillip Morris Corporation to stop selling cigarettes to the Peace Pipe Smoke Shop, the company's biggest customer at the time. Phillip Morris determined that Peace Pipe Smoke Shop was allegedly engaged in criminal activity and threatened to stop selling cigarettes to Gutlove and Shirvint if the corporation did not cease doing business with the Peace Pipe Smoke Shop.
Ruda faces six months in prison. Gutlove and Shirvint, Inc., faces a fine of up to $250,000. The company previously made restitution in the amount of $1,446,000 to new York State. In addition, Ruda and Gutlove and Shirvint, Inc. agreed to forfeit their profits from the scheme. This includes a $600,000,00 monetary judgment that both Ruda and his corporation are equally obligated to pay to the Government. Ruda will also personally forfeit $325,000 to the government, in cash, prior to his sentencing.
The pleas are the result of a joint investigating by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, and by the New York State Department of Taxation and Finance, Criminal Investigations Division, under the direction of Chief Investigator Patrick Simet.
Sentencing is scheduled for February 3, 2014 before Judge Skretny.Registered Sex Offender Charged with Traveling to and from New Jersey to Assault A MinorRead the Press Release
FBI Seeks Additional Victims, Information
CAMDEN, N.J. – A registered sex offender who allegedly traveled between New Jersey, New York and Pennsylvania to sexually assault a girl younger than 13 on more than one occasion is expected to appear this afternoon to face a federal charge in Camden federal court, U.S. Attorney Paul J. Fishman announced.
Joseph Anthony Caracciolo, aka “Joseph Crillo,” aka “Joseph Grillo,” 47 – believed to have resided in Massachusetts, California, Virginia, Connecticut, Florida and New York – was arrested in New York on Aug. 28, 2013. He is currently being held on related state charges filed by the Atlantic County Prosecutors Office. The U.S. Attorney’s Office for the District of New Jersey is adopting the case for federal criminal prosecution.
Caracciolo is charged by federal criminal complaint with travelling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor. He is to appear this afternoon before U.S. Magistrate Judge Karen M. Williams.
The FBI and the U.S. Attorney’s Office are seeking additional information from the public in order to identify other potential victims.
According to documents filed in this case: During a period between May and August 2012, Caracciolo traveled from New York to New Jersey and from New Jersey to Pennsylvania in order to sexually assault a 12-year-old girl.
In intercepted communications, Caracciolo acknowledged paternity of a child born to the victim. The exchanges were monitored by law enforcement with the victim’s consent.
The count with which Caracciolo is charged carries a maximum potential penalty of 30 years in prison and a $250,000 fine.
According to the Department of Justice National Sex Offender Public Website, Caracciolo has been in violation of his sex offender registration requirements since August 2005.
Individuals with information concerning Caracciolo are asked to contact the FBI’s tip line at 1-800-CALL-FBI. Information can also be provided to the nearest FBI field office or filed electronically at https://tips.fbi.gov.
U.S. Attorney Fishman credited special agents of the Newark FBI Safe Streets Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; the Atlantic County Prosecutor’s Office, under the direction of James P. McClain; and the Egg Harbor Township Police Department, under the direction of Chief Michael J. Morris, with the investigation.
The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.13-372
Defense counsel: Assistant Federal Public Defender Thomas Young Esq., Camden
Caracciolo, Joseph Anthony Complaint
Raceland Man, Johnny Smith, Charged with the Sexual Exploitation of Children and Possession of Child PornographyRead the Press Release
JOHNNY SMITH, age 41, a resident of Raceland, Louisiana, was charged today in a two-count Bill of Information with the sexual exploitation of children and possessing images depicting the sexual victimization of children under the age of twelve-years-old, announced United States Attorney Dana J. Boente.
According to the Bill of Information, between May 12, 2013, and June 23, 2013, SMITH coerced a three-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Furthermore, SMITH was charged with knowingly possessing visual depictions of children under the age of twelve engaged in sexually explicit conduct.
f convicted, SMITH faces a mandatory minimum term of imprisonment of 15 years and a maximum of 30 years as to Count 1, and a maximum of 20 years as to Count 2 followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
United States Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.”
This case is being investigated by agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg.
(Download Bill of Information )
Putnam Man Sentenced to 18 Years in Federal Prison for Illegal Oxycodone DistributionRead the Press Release
HUNTINGTON, W.Va. – A 50-year-old Putnam County man was sentenced today to 18 years in prison for selling powerful prescription painkillers, announced U.S. Attorney Booth Goodwin. Terry Lee Hagan, of Culloden, W.Va., previously pleaded guilty in August to distribution of oxycodone. Hagan’s sentence was handed down today by Chief United States District Judge Robert Chambers in federal court in Huntington.
An extensive criminal record and a history of numerous drug sales combined to produce Hagan’s lengthy sentence.
On May 29, 2012, Hagan sold 4 30-milligram and 2 15-milligram oxycodone pills to a confidential informant working in cooperation with law enforcement authorities in exchange for $225. The illegal pill transaction took place at Hagan’s Culloden residence.
Hagan admitted that he was responsible for numerous other illegal oxycodone distribution transactions that took place in and around the Southern District of West Virginia.
Hagan was previously convicted of five felonies between May 1981 and April 2012 in the Circuit Court of Common Pleas, Cuyahoga County, Ohio.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Gregory McVey handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Parmelee Man Pleads Guilty to Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Joseph Morrisette, age 43, of Parmelee, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 16, 2013, and pled guilty to Count I of the Indictment that charged him with Child Abuse.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on July 9, 2013, when Morrisette was babysitting several children at his home while he was drinking. He was intoxicated and struck the victim, giving the child a black eye.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Morrisette was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for November 26, 2013.
Owner of New York Construction Company Pleads Guilty to Tax FraudRead the Press Release
Gurmail Singh, a resident of Richmond Hill, N.Y., pleaded guilty today in U.S. District Court in the Eastern District of New York to filing a false federal tax return, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment, court records and admissions made by the defendant in court today, Singh used check-cashing services to cash more than $2.9 million in checks paid to his construction company, Fancy and Vicky Construction Co. Inc. in Richmond Hill, for services between 2006 and 2008. He concealed his check-cashing activities from his tax return preparers, and this income was not included as gross income on the company's tax returns. Singh also diverted cash receipts earned by his companies for his own personal use. Singh admitted that his failure to report Fancy and Vicky’s gross receipts caused a tax loss to the IRS of between $400,000 and $1,000,000.
Singh faces a potential maximum sentence of three years in prison and a maximum fine of $250,000. Sentencing is set for Jan. 6, 2014.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department's Tax Division.
Nine Retailers Arrested for Food Stamp FraudRead the Press Release
Defendants Received $7 Million from USDA for Food Stamps Allegedly Traded for Cash
Baltimore, Maryland - A federal grand jury has indicted nine retail store owners or operators on federal charges of food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. The indictments allege the retailers received almost $7 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores allegedly split the proceeds with food stamp recipients. The indictments were returned last week and unsealed today. Federal agents arrested the defendants and executed search warrants at the stores and related locations this morning.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Taxpayers fund the food stamp program to put food on the tables of needy recipients, not to put money in the pockets of greedy criminals,” said U.S. Attorney Rod J. Rosenstein. “Food producers and distributors benefit when food stamp funds are used to buy food, and honest storeowners work hard to earn a profit by actually selling food. People who play by the rules deserve to know that criminals who defraud them will be held accountable.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
The indictments allege that the defendants exchanged EBT benefits for cash, in violation of the food stamp program rules. The indictments allege that the defendants typically paid half the value of the EBT benefits in cash. To avoid detection, the defendants often debited the funds from the card in multiple transactions over a period of hours or days. As a result of unlawful cash transactions, the defendants obtained more than $6,898,000 in EBT deposits for transactions in which the stores did not provide food.
According to the indictments, the defendants listed below owned and/or operated stores in Baltimore that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
Abdullah Aljaradi, age 51, of Baltimore; Second Obama Express and D&M Deli and Grocery, 901 Harlem Avenue, Suite A and B, respectively. From October 2010 through July 2013, Aljaradi allegedly obtained more than $2 million in payments for food sales that never occurred.
Dae Cho, age 66; and
Hyung Cho, age 40, both of Catonsville; K&S Food Market, 3910 W. Belvedere Avenue. From November 2010 through July 2013, Dae Cho and her son, Hyung Cho, allegedly obtained more than $1.4 million in in payments for food sales that never occurred.Abdo Mohamed Nagi, age 54, of Baltimore; New York Deli and Grocery 1207 West Baltimore Street. From February 2011 through May 2013, Nagi allegedly obtained more than $1.2 million in payments for food sales that never occurred.
Kim Man Chu, age 38, of Rosedale, Maryland; Long Hing Grocery Store, 1131 Greenmount Avenue. From October 2010 through July 2013, Chu allegedly obtained more than $750,000 in payments for food sales that never occurred.
Amara Cisse, age 50, and
Fanta Keita, age 45, both of Windsor Mill, Maryland; Simbo Food Mart, 2103 West Pratt Street. From November 2010 through May 2013, Cisse, and his wife Keita, allegedly obtained more than $600,000 in payments for food sales that never occurred.Jung Kim, age 51, of Ellicott City, Maryland; C&C Market, 4752 Park Heights Avenue. From November 2010 through April 2013, Kim allegedly obtained more than $600,000 in payments for food sales that never occurred.
John Cunningham, age 54, of Baltimore; Cunningham’s Amoco, 4419 Park Heights Avenue. From December 2012 through July 2013, Cunningham allegedly obtained more than $348,000 in payments for food sales that never occurred.
The defendants all face a maximum sentence of 20 years in prison for each count of wire fraud. Jung Kim, Dae Cho and Hyung Cho also face a maximum of 20 years in prison for food stamp fraud. Aljaradi, Nagi, Chu, Cisse, Keita and Cunningham face a maximum of five years in prison for food stamp fraud. The defendants are expected to have initial appearances later today in U.S. District Court in Baltimore.
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 the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kathleen O. Gavin, Peter M. Nothstein, Leo J. Wise and Judson T. Mihok, who are prosecuting these cases.
Milwaukee Man Charged with Sex-Trafficking A Minor from Wisconsin to Illinois to Engage in ProstitutionRead the Press Release
CHICAGO ― A Milwaukee man was arrested on a federal charge of sex-trafficking a minor and the alleged 15-year-old victim, from Madison, Wis., was returned to her home, federal law enforcement authorities announced today. The defendant, DAJUAN KEY, also known as “Dejuan Key,” 30, was scheduled to return to Federal Court in Chicago at 2:30 p.m. today for a detention hearing before U.S. Magistrate Judge Daniel Martin.
Key was taken into federal custody by FBI agents on Saturday and charged with sextrafficking a minor for allegedly transporting the 15-year-old girl from Madison to Chicago to engage in prostitution. He appeared before Magistrate Martin on Saturday and was ordered to remain in custody pending today’s hearing.
Transporting a minor across state lines to engage in prostitution carries a mandatory minimum sentence of 10 years and a maximum of life in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
According to a criminal complaint affidavit, the victim was found last Tuesday by Romeoville police at a fast food restaurant in the far southwest suburb after the girl’s mother reported that her daughter had called her crying, and told her that she was at a motel in Romeoville, and did not have a way home. Romeoville police responded to the motel where they located Key with a woman identified as an adult victim, who then accompanied police to the nearby restaurant and identified the minor victim.
The minor victim told FBI agents that she met a man, who she identified as Key, at an apartment complex in Madison on Sept. 8. Key told the girl that he was going to take her to Milwaukee and would return her to Madison. Instead, Key allegedly drove the girl to Chicago and they eventually arrived at a motel in Romeoville, where Key introduced the girl to a woman he told her was working for him as a prostitute. Key allegedly told the girl that if she worked for him, she would be able to keep all of the money she made. The victim told Key that she wanted him to take her home, but Key got the victim a motel room and took photographs of her, which he then apparently posted in online advertisements because her cell phone began to receive calls from unidentified numbers.
The victim repeatedly told Key that she wanted to go home, but she had no way to do so on her own, was tired, and agreed to spend the night believing Key would take her home in the morning. On Sept. 9 and 10, the victim engaged in commercial sex acts, believing that she would get to keep the money and use it for a bus ticket home. However, in each instance, Key demanded the money and the victim gave it to him because she was afraid of what he might do if she did not comply.
The arrest and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. They commended the assistance and cooperation of the Romeoville Police Department.
The investigation was conducted by the FBI’s Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and officers and investigators from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State’s Attorney’s Office. The case also falls under the umbrella of the Cook County Human Trafficking Task Force.
The government is being represented by Assistant U.S. Attorney Katherine A. Sawyer.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Mexican National Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old Mexican national was indicted for entering the United States illegally after previously being deported as an aggravated felon. Joel Aguayo-Gomez was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on November 5, 2011, Aguayo-Gomez was found in the U.S. after being deported to Mexico in 2011, following a 2008 Ramsey County conviction for aggravated robbery. On November 5, 2011, Aguayo-Gomez was taken into state custody on charges of terroristic threats and strangulation. In August 2013, Aguayo-Gomez was acquitted of all charges, and was placed into the custody of U.S. Immigration and Customs Enforcement (“ICE”).
If convicted of the federal charges now levied against him, Aguayo-Gomez will face a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district judge.
This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Memphis Man Allan D. Cooper Pleads Guilty to Wire FraudRead the Press Release
Memphis, TN – Allan D. Cooper, 66, of Memphis, TN, pleaded guilty today to one count of wire fraud before United States District Judge John T. Fowlkes, Jr., announced U.S. Attorney Edward L. Stanton III.
According to the one-count criminal information and statements made in court, between approximately October 2011 and May 2013, Cooper defrauded six individuals of $395,000. According to the information, Cooper made various false and fraudulent statements, representations and promises to induce the victims to give him monies as either a “loan” or an “investment.”
Cooper told some of his victims about an investment opportunity with an old friend of his named “Charlie” and that if the victims would give Cooper funds to invest with Charlie they would receive a substantial return. In these instances Cooper frequently gave the victims a post-dated check payable in an amount that represented the principal and the return on the investment. When the victim discovered that the check was worthless, Cooper made other false representations and promises to repay.
Cooper told other victims that he was the owner of Cooper Chemical Company and that if they would loan him funds he would pay them back with substantial interest. In fact, “Cooper Chemical Company” was inactive and not conducting any business. Cooper also falsely represented that if a victim would loan him funds, they would be repaid with interest through disbursements from a trust in which defendant Cooper was a named beneficiary.
Cooper faces up to 20 years in federal prison and a fine of up to $250,000. He is scheduled to be sentenced by Judge Fowlkes on January 10, 2014, at 9:30 a.m. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is representing the government.Martin Man Sentenced for Distribution of MorphineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Martin, South Dakota, man convicted of two counts of Distribution of a Controlled Substance was sentenced on September 12, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Alex Lee Salway, age 54, was sentenced to 12 months and 1 day on each count to run concurrently, 6 years of supervised release on each count to run concurrently, and a $200 special assessment to the Federal Crime Victims Fund.
The charges stem from Salway selling and distributing morphine pills within 1,000 feet of the Martin Grade School, a public elementary school in Martin, at two separate times on January 27, 2012. A federal jury in Rapid City found Salway guilty of both counts on June 20, 2013.
This case was investigated by the South Dakota Division of Criminal Investigation, the Bureau of Indian Affairs Office of Justice Services, the Martin Police Department, and the Northern Plains Safe Trails Drug Enforcement Task Force. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Salway remained in the custody of the U.S. Marshals Service.Manhattan U.S. Attorney Announces Court Judgment Finding Midtown Office Building Secretly Owned and Controlled by Government of Iran Subject to Forfeiture for Violations of the Iranian Transactions Regulations and Money Laundering OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that United States District Judge Katherine B. Forrest has issued a decision granting summary judgment in favor of the United States’ claims for forfeiture of the 36-story Midtown Manhattan office building located at 650 Fifth Avenue, New York, New York (“the Building”), as the result of violations of the Iranian Transactions Regulations promulgated under the International Emergency Economic Powers Act (“IEEPA”), and the federal money laundering statutes. The Court found that the partners of the Building’s owner, the Alavi Foundation and Assa Corp., committed the IEEPA violations and money laundering offenses.
Claims against the building in this consolidated action by private parties holding judgments against the Government of Iran remain pending.
Manhattan U.S. Attorney Preet Bharara said: “The Judge’s opinion upholds what was the contention of this Office from outset: ‘Assa was (and is) a front for Bank Melli, and thus a front for the Government of Iran.’ The Judge’s ruling that Alavi and Assa committed IEEPA and money laundering violations paves the way for the largest-ever terrorism-related forfeiture, and provides a means of compensating victims of Iranian-sponsored terrorism.”
According to the amended civil forfeiture Complaint and the oral and written opinions issued by Judge Forrest in this case:
Overview
The Alavi Foundation has been providing numerous services to the Iranian Government, including managing the Building for the Iranian Government, running a charitable organization for the Iranian Government, and transferring funds from 650 Fifth Avenue Company to Bank Melli Iran (“Bank Melli”), a bank wholly owned and controlled by the Government of Iran. Likewise, Assa Corporation and Assa Company Limited (“Assa Co. Ltd.”) have been providing numerous services to Bank Melli in contravention of IEEPA and the Iranian Transactions Regulations promulgated thereunder, including transferring rental income generated from 650 Fifth Avenue Company to Bank Melli, following Bank Melli’s instructions with regard to Assa Corporation’s affairs, reporting back to Bank Melli on Assa Corporations’s financial situation and business dealings, and managing the affairs of Assa Corporation for the benefit of Bank Melli.
IEEPA confers upon the President the authority to take certain actions, defined in 50 U.S.C. § 1702, in response to declared national emergencies. The President has declared national emergencies with respect to the actions and policies of the Government of Iran: Executive Orders 12957, 12959, and 13059, and with respect to the proliferation of weapons of mass destruction (“WMD”), Executive Orders 12938 and 13382. The Treasury Department’s Iranian Transactions Regulations (“ITR”), 31 C.F.R. Part 560, and Weapons of Mass Destruction Proliferators Sanctions Regulations, 31 C.F.R. Part 544, implement these Executive Orders.
The Building was constructed in the 1970s by the Pahlavi Foundation, a non-profit organization operated by the Shah of Iran to pursue Iran’s charitable interests in the United States. The Building’s construction was financed by a substantial loan from Bank Melli.
Following the Iranian revolution of 1979, the Islamic Republic of Iran established the Bonyad Mostazafan, also known as the Bonyad Mostazafan va Janbazan (“Bonyad Mostazafan”), to centralize, take possession of, and manage property expropriated by the revolutionary government. The Bonyad Mostazafan was created in March 1979 by order of the Ayatollah Khomeini and approved by the Revolutionary Council of the Islamic Republic of Iran, and is controlled by the Government of Iran. The Bonyad Mostazafan sought to take control of the Shah’s property, including the assets of the Pahlavi Foundation. The Bonyad Mostazafan reports directly to the Ayatollah.
Between approximately October 1978 and approximately October 1979, all five previous directors of the Pahlavi Foundation resigned, and four new directors took their places. On February 25, 1980, an amended Certificate of Incorporation for the Pahlavi Foundation was filed renaming the Foundation “The Mostazafan Foundation of New York.” The Mostazafan Foundation of New York later renamed itself the Alavi Foundation.
The Government of Iran’s Involvement in the Management of the Building
In 1989, the Alavi Foundation and Bank Melli formed a partnership, 650 Fifth Avenue Company, in order to avoid paying federal taxes on rental income from the Building. Bank Melli’s ownership interest in 650 Fifth Avenue Company, however, was disguised through the creation of two shell companies. The Alavi Foundation transferred 35 percent of 650 Fifth Avenue Company to Assa Corporation, an entity wholly owned by Assa Co. Ltd. Assa Co. Ltd. is a Jersey, Channel Islands, United Kingdom, entity owned by Iranian citizens who represent the interests of Bank Melli. In conjunction with the transfer of the 35 percent interest in 650 Fifth Avenue Company to Assa Corp., Bank Melli cancelled its loan on the Building. Today, the Alavi Foundation owns 60 percent of 650 Fifth Avenue Company, and Bank Melli owns 40 percent of 650 Fifth Avenue Company, through Assa Corp. and Assa Co. Ltd.
The decision to convert Bank Melli’s mortgage on the Building into a partnership interest in 650 Fifth Avenue Company was discussed and approved by high-level Iranian Government officials. Among others, the head of the Bonyad Mostazafan (also the Deputy Prime Minister of Iran), the Office of the Prime Minister of Iran, the director of the Central Bank of Iran, and the general director of Bank Melli, as well as other Bonyad Mostazafan and Bank Melli officials, discussed and approved the partnership between the Alavi Foundation and Bank Melli. After the Alavi Foundation and Assa Corporation entered into the 650 Fifth Avenue Company partnership agreement, a Bonyad Mostazafan official forwarded the agreement to a Bank Melli official, noting that “the partnership is based on prior agreements between the Ministry of Finance, Bank Melli, and the Bonyad Mostazafan, with the only change being the building will be valued at two million dollars less than as previously agreed . . . .”
The Iranian Government’s control of the Alavi Foundation has continued. In 1989, Kamal Kharrazi was named as the new Iranian Ambassador to the United Nations. As a result of tension between the new Ambassador and the Alavi Foundation president, the Ambassador eventually demanded the president’s resignation. According to the minutes of a May 16, 1991, board meeting held in Zurich, Switzerland, the head of the Bonyad Mostazafan explained that, as directed by the Supreme Leader, several board members were to resign. In a letter, the Alavi Foundation’s president described how, a few days later, the Ambassador called the president and another board member to his office. The Ambassador said that “the Foundation from here on out is under the oversight of Haj Agha, not Mr. Rafighdoost [then the head of the Bonyad Mostazafan]. . . . [F]rom now on, the role of the Managing Director and the role of the Board of Directors will be just a formality and he [the Ambassador] will be conducting all of its [the Foundation’s] affairs.” The president of the Alavi Foundation then wrote a letter to the Ayatollah cautioning that although the Ambassador’s “appointment to a position of responsibility connected to the Foundation’s affairs presents enormous political, security, and economic dangers, we feel assured that the Supreme Leader has made this decision with discernment, unique insight, and a thorough knowledge of all pertaining aspects.” In July 1991, the president resigned his position and he was replaced that August by an individual who served as president until the summer of 2007.
In 1992, the Alavi Foundation’s new president met in New York and in Tehran with Bank Melli officials concerning $1.7 million in real estate taxes owed by 650 Fifth Avenue Company and $2.2 million in unpaid distributions owed by the partnership to Assa Corp. The Tehran meeting was attended by a Bank Melli board member, the head of Bank Melli’s Overseas Network Supervisory Department, the head of Bank Melli’s New York branch, and the head of Bank Melli’s Foreign Affairs. The head of the board of directors and managing director of Bank Melli forwarded the minutes of the Tehran meeting to the head of the Bonyad Mostazafan along with a cover letter stating, among other things, that “It is hoped that your firm instructions and the extra attention of the brothers from that esteemed Foundation, who are responsible for the Alavi Foundation of New York, will resolve the partnership’s mutual problems quickly . . . .”
Iranian Ambassadors to the U.N. continued to direct the affairs of the Alavi Foundation and to attend meetings of the Alavi Foundation board. In the late 1990s, two Bank Melli employees sought Ambassador Kharrazi’s permission for Assa Corp. to sell its interest in 650 Fifth Avenue Company. The Ambassador informed Bank Melli that the Building would be sold when the real estate market improved. Ambassador Seyed Mohammad Hadi Nejad Hosseinian, Kharrazi’s successor, originated the Alavi Foundation’s project funding formula. In 2004, Hosseinian’s successor told the Alavi Foundation to settle a lawsuit with a company controlled by a former Alavi Foundation president for $4 million.
In October 2007, Alavi Foundation board members met with the Ambassador and another former Iranian Government official to address issues relating to the Building’s management and Alavi’s charitable services. According to notes taken by a board member, the Ambassador stated, among other things, that it was necessary to increase the profit from the Building; the Ambassador was worried about Assa Corporation’s 40 percent share; the Foundation should only allocate to Shiites; and that the Ambassador would determine the composition of the board. The Ambassador ordered a study about the possibility of increasing the Foundation’s revenue and profit, stating that a business plan and comparative analysis had to be done. The Ambassador instructed: “I have to definitely see the proposed allocations before a final decision is reached. I have to be kept informed and I have to be able to state my opinion in order for you to make a decision.” The Ambassador told the board members that “[i]f there is an issue that needs to be conveyed to Tehran, let me know, I will convey it.”
The Original Complaint
On December 17, 2008, this Office filed a civil Complaint seeking forfeiture of the 40 percent interest held by Assa Corporation in 650 Fifth Avenue Company. In the Amended Complaint, the United States seeks to forfeit all right, title and interest in 650 Fifth Avenue Company, including the Alavi Foundation’s 60 percent interest in the company. The United States also seeks to forfeit the contents of bank accounts held by 650 Fifth Avenue Company, the Alavi Foundation, and Assa Corporation, as well as other real properties owned by the Alavi Foundation.
The Obstruction of Justice Allegations Against the Former President of the Alavi Foundation
On December 19, 2008, Farshid Jahedi, who at the time was the president of the Alavi Foundation, was arrested for obstruction of justice for allegedly destroying documents required to be produced under a grand jury subpoena concerning the Alavi Foundation’s relationship with Bank Melli and the ownership of the Building. Jahedi pled guilty in December 2009. On April 30, 2010, he was sentenced by U.S. District Judge Shira A. Scheindlin to three months in prison and ordered to pay a $3,000 fine.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, the Joint Terrorism Task Force, and the Police Department of the City of New York. He also thanked the Counterterrorism Section of the Department of Justice National Security Division and the Manhattan District Attorney’s Office for their initiation and assistance in this case.
Assistant United States Attorneys Sharon Cohen Levin, Michael D. Lockard, Martin S. Bell, Carolina A. Fornos, and Special Assistant United States Attorney Anand Sithian are in charge of the civil forfeiture action.
In re 650 Fifth Avenue and Related Properties - Opinion and Order
Manager of Commodities Fund Sentenced to 30 MonthsRead the Press Release
SAN JOSE - Rodney Hatfield was sentenced late yesterday afternoon to 30 months in federal prison in connection with his role in a conspiracy to commit wire fraud, United States Attorney Melinda Haag announced.
Hatfield pled guilty to the charge on January 30, 2013. According to the plea agreement, Hatfield admitted that he conspired with his co-defendant to obtain money from investors by means of materially false representations about the value of their investment accounts. Mr. Hatfield admitted that he defrauded members of his own Jehovah’s Witness congregation in Watsonville, California. As part of the fraud scheme, he solicited millions of dollars in investment money from his fellow congregants and others to invest in Landmark Trading Company, LLC (“Landmark”). This company was set up as a holding company for the purpose of trading in foreign currency exchange by Hatfield and his co-defendant.
Initially, Landmark did engage in some legitimate currency trades on behalf of its investors; however, the company quickly began to run a negative return on its trading activity. Rather than accurately report this negative trading activity to investors, Hatfield and his co-defendant distributed false reports to investors in e-mails that their trading accounts were profitable and increasing in value. While some investors did receive all or most of their principal back, Hatfield admitted his actions resulted in a net loss to investors of more than $1 million.
The sentence was handed down by the Honorable Edward J. Davila, United States District Court Judge, following a guilty plea on the first count of the indictment, a violation of 18 U.S.C. § 1349. Judge Davila also sentenced the defendant to three years of supervised release following his term of imprisonment. Judge Davila did not impose a fine in light of the defendant’s financial circumstances. However, Judge Davila set a hearing for November 8, 2013, to determine the amount of restitution as well as set a reporting date for Hatfield to begin serving his sentence.
Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of a multi-year investigation by the United States Postal Inspection Service. The United States Attorney’s Office also wishes to recognize the assistance of the Commodities Future Trading Commission and the United States Trustee for the Northern District of California.
(Hatfield indictment )
(Hatfield plea agreement )
Man Indicted on Transmitting Threats in Interstate CommerceRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Keith Bowers, age 59, of Jessieville, Arkansas, was arrested today by agents of the Federal Bureau of Investigation in Arkansas based on an indictment returned in the United States District Court for the Middle District of Georgia on September 13, 2013, charging him with transmitting threats in interstate commerce.
The indictment alleges that Mr. Bowers made a threatening telephone call on August 16, 2012, from Texas to Carmike Cinemas’ headquarters in Columbus, Georgia. The indictment further alleges that this communication contained a threat to detonate an explosive device during a movie at one of Carmike’s movie theaters.If convicted, Mr. Bowers faces a maximum penalty of five (5) years imprisonment and a fine of $250,000.00.
The indictment is only an allegation and the accused is presumed innocent until and unless proven guilty.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Melvin E. Hyde, Jr.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Licensed Counselor Pleads Guilty to Health Care FraudRead the Press Release
Oklahoma City, Oklahoma – LEANN RICHARDSON, 48, of Edmond, Oklahoma, pled guilty today to health care fraud in connection with a scheme to bill Medicaid for behavioral counseling services never provided, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The Medicaid Program provides federal and state funds to pay for health care benefits for individuals who cannot afford necessary medical expenses.
Richardson is a licensed professional counselor approved to bill the Oklahoma Health Care Authority ("OHCA") for behavioral counseling to Medicaid-eligible children. OHCA is the state government agency responsible for receiving, reviewing, and paying Medicaid claims. According to the Information filed in the case, Richardson fraudulently billed OHCA for purported therapy sessions with certain Medicaid beneficiaries twice per week, when she sometimes only saw the children once per week. The Information also alleged that Richardson took two personal trips to Colorado in 2010, but fraudulently billed OHCA for more than 80 behavioral counseling sessions with Medicaid-eligible children during those days when she was out of town. At today’s plea hearing, Richardson admitted that she caused bills to be submitted to Medicaid for counseling services not provided, including false claims for counseling when she was out of town.
Today, Richardson pled guilty to one count of health care fraud. Her punishment for the offense could be as much as ten years in prison, three years of supervised release, and a fine of $250,000. In a plea agreement, she also agrees to pay restitution for the amount of her false billing, to be determined by the court. Sentencing will take place in approximately ninety days.
This charge is the result of an investigation conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, the Oklahoma Department of Health, and the Medicaid Fraud Control Unit of the Oklahoma Office of Attorney General. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Reference is made to court filings for further information.
KC Man Stops Trial, Pleads Guilty to Illegal Firearm, Faces at Least 15 Years in PrisonRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man stopped his trial and pleaded guilty in federal court today to illegally possessing a firearm.
Dennis T. Hart, 55, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to being a felon in possession of a firearm. Today would have been the second day of Hart’s criminal jury trial on an April 23, 2013, federal indictment.
By pleading guilty today, Hart admitted that he was in possession of a Lorcin .380-caliber semi-automatic pistol on April 7, 2013. According to court documents, Kansas City police officers were dispatched to 29th and Prospect on a disturbance call at about 12:56 p.m. on that day. A man told police that Hart began yelling at him and punched him in the face. Hart then pulled up his sweater, revealing a pistol tucked in his waistband. The man, who was sitting in a vehicle, left and called the police.
Police officers located Hart a few blocks away. As officers approached Hart he began walking away and then started jogging away from the officers. Once the officers were able to catch up to Hart, they grabbed him and began placing him on the ground. As they were struggling, Hart leaned toward his left side and reached his right hand into his waistband. Hart pulled the loaded pistol from his waistband and raised his arm to chest level before falling to the ground, causing him to drop the pistol. Hart was then placed into handcuffs and taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to possess any firearm or ammunition. Hart has three prior felony convictions for possessing a controlled substance, two prior felony convictions for distributing a controlled substance, two prior felony convictions for assault, two prior felony convictions for forgery and prior felony convictions for tampering and fraud.
Under federal statutes, Hart is subject to a mandatory minimum sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Shalanda Smith. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Jennifer Michael Swanson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 16, 2013, before U.S. District Judge Sam E. Haddon, JENNIFER MICHAEL SWANSON, a 41-year-old resident of Billings, was sentenced to a term of:
- Prison: 48 months
- Special Assessment: $100
- Supervised Release: 4 years
SWANSON was sentenced in connection with his guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorneys Joseph E. Thaggard and Brendan P. McCarthy, the government stated it would have proved at trial the following:
On March 11, 2013, an Idaho State Police officer stopped a vehicle driven by an adult male in Power County, Idaho. SWANSON was a passenger in the vehicle. The male driver said he and SWANSON had driven from Billings to Nevada the previous day and were returning to Billings.
SWANSON and the male driver each admitted that cocaine and methamphetamine were in the car. A search of the vehicle ensued. The authorities found three bulk pounds of methamphetamine and a pound of cocaine in the vehicle. The officers also searched a purse located on the front passenger seat. The purse contained a syringe with liquid methamphetamine, a small amount of methamphetamine in several small plastic baggies, drug paraphernalia, and a .40 caliber handgun. The packaging of methamphetamine in several baggies is consistent with the intent to distribute the drug.
The male driver was interviewed by the Drug Enforcement Administration following his entry of a guilty plea in this matter. The male driver stated that, on March 10, 2013, he and SWANSON left Billings and went to Nevada. The male driver stated that he went on the trip to deliver money from another drug dealer in Billings to an associate drug dealer in Nevada. The male driver said that he did not expect that they would pick up any drugs in Nevada, but were provided the bulk quantities of methamphetamine and cocaine in Nevada and instructed to deliver the drugs to Billings. Those bulk quantities were among the drugs seized in Nevada.
The male driver said that the drug dealer in Billings requested that SWANSON go on the trip to Nevada with the male driver. The male driver said the drug dealer in Billings gave SWANSON two ounces of methamphetamine to go on the trip with the male driver. SWANSON possessed those ounces of methamphetamine at the time she and the male driver left Billings on March 10, 2013.
A DEA chemist analyzed the methamphetamine and cocaine seized by the authorities in Idaho. The bulk quantity of cocaine contained a detectable amount of cocaine and the bulk quantity of methamphetamine contained a detectable amount of methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SWANSON will likely serve all of the time imposed by the court. In the federal system, SWANSON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Montana Division of Criminal Investigation.
International Bribery Schemes Uncovered Involving Hundreds of Millions of Dollars in Defense ContractsRead the Press Release
SAN DIEGO, CA – Three individuals – a commander in the United States Navy, a special agent for the Naval Criminal Investigative Service (NCIS) and the CEO of a multinational defense contractor – were charged in criminal complaints unsealed today in connection with two separate bribery schemes.
The complaints allege that Leonard Glenn Francis, the CEO of Singapore-based Glenn Defense Marine Asia Ltd. (GDMA), paid U.S. Navy Commander Michael Vannak Khem Misiewicz and NCIS Supervisory Special Agent John Bertrand Beliveau II with luxury travel and prostitutes in exchange for confidential information and other assistance in relation to hundreds of millions of dollars in Navy contracts.
Francis was arrested in San Diego yesterday evening and made his initial appearance in federal court this afternoon before U.S. Magistrate Judge Karen S. Crawford. Also yesterday, Misiewicz and Beliveau were arrested in Colorado and Virginia, respectively. The next date in the cases is a hearing set for Friday, September 20, 2013 at 9:30am before U.S. Magistrate Judge William McCurine Jr., in federal court in San Diego, to determine whether Francis should be detained as a flight risk and as a risk to obstruct justice. Francis will remain in custody without bond pending Friday’s hearing. The United States will seek the removal of Misiewicz and Beliveau to San Diego to face the charges.
U.S. Attorney Laura E. Duffy of the Southern District of California and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement after the complaints were unsealed.
As set forth in the complaints, Francis, a Malaysian national who resides in Singapore, is the chief executive officer and president of Glenn Defense Marine Asia Ltd. (GDMA), a multi-national corporation with headquarters in Singapore and operating locations in other countries, including Japan, Singapore, Thailand, Malaysia, Korea, India, Hong Kong, Indonesia, Australia, Philippines, Sri Lanka and the United States. GDMA provides hundreds of millions of dollars in “husbanding” services to the U.S. Navy, which involves the coordinating, scheduling and procurement of items and services required by ships and submarines when they arrive at port. These services include, for example, providing tugboats and fenders; paying port authority and customs fees; furnishing security and transportation; supplying provisions, fuel and water; and removing trash and collecting liquid waste.
Misiewicz, 46, is a commander and captain-select in the U.S. Navy, assigned to U.S. Northern Command located at Peterson Air Force Base in Colorado Springs, Colo. Before this position, he served as the deputy operations officer for the U.S. Commander, Seventh Fleet aboard the USS Blue Ridge. The Seventh Fleet’s area of operations consists of 48 million square miles extending from Japan to Diego Garcia in the Indian Ocean and from Vladivostok, Russia, to Australia. As the deputy operations officer, Misiewicz had high-level exposure to the operational planning for ships in the Seventh Fleet and for any U.S. Navy ship traveling through the Seventh Fleet’s area of responsibility. He also held influence in determining or modifying the schedule of port visits for U.S. Navy vessels.
Beliveau, 44, is a supervisory special agent for NCIS at Quantico, Va. In that position, he has had access to the internal NCIS database containing investigative reporting, including reports into an investigation by NCIS into possible fraud committed by GDMA in billing the U.S. Navy under its contracts.
According to one of the criminal complaints, Misiewicz and Francis allegedly engaged in a conspiracy to commit bribery. As part of the conspiracy, Misiewicz sent to Francis information that the Navy had classified as “Confidential,” including schedules reflecting the movements of Navy ships months in advance. Misiewicz also operated as an advocate within the Navy for GDMA’s interests, urging decisions about port visits and contractor usage that were designed to benefit GDMA. In return, Francis provided Misiewicz with paid travel, luxury hotel stays and prostitution services. To communicate with Francis privately, Misiewicz set up a special personal email account with a name that included Francis’s initials.
As set forth in another complaint, Beliveau and Francis allegedly entered into a separate bribery conspiracy. As part of that conspiracy, Beliveau provided Francis with confidential information about the NCIS criminal fraud investigation into GDMA by secretly downloading reports from the NCIS database and conveying the information to Francis. Beliveau also allegedly provided Francis guidance as to how to deal with NCIS inquiries. In exchange, Francis provided Beliveau with, among other things, paid travel, luxury hotel stays and prostitution services.
Each defendant was charged with conspiring to commit bribery, which carries a maximum penalty of five years in prison. A criminal complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by NCIS, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the Drug Enforcement Administration. The Criminal Division’s Office of International Affairs provided significant assistance in this matter, and the Royal Thai Police and the Corrupt Practices Investigation Bureau Singapore also provided law enforcement assistance. This case is being prosecuted by Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California and Catherine Votaw, Director of Procurement Fraud for the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tipline at www.ncis.navy.mil or call the DoD Hotline at (800) 424-9098.
DEFENDANTSCase Number: 13-MJ-3456
Leonard Glenn Francis
John Bertrand Beliveau IICase Number: 13-MJ-3457
SUMMARY OF CHARGES
Leonard Glenn Francis
Michael Vannak Khem MisiewiczCase Number: 13-MJ-3456
Conspiracy to Commit Bribery in violation of 18 U.S.C. § 371Case Number: 13-MJ-3457
INVESTIGATING AGENCIES
Conspiracy to Commit Bribery in violation of 18 U.S.C. § 371Defense Criminal Investigative Service
Naval Criminal Investigative Service
Homeland Security Investigations
Drug Enforcement AdministrationHospital Settles Federal AllegationsOf Medicare False ClaimsRead the Press Release
WICHITA, KAN.- Hutchinson Regional Medical Center, Inc., (formerly known as Promise Regional Medical Center – Hutchinson, Inc.) has agreed to pay $853,651 to the United States to settle allegations that the hospital submitted false claims to the Medicare program, U.S. Attorney Barry Grissom announced today. This payment is in addition to amounts the hospital previously refunded to the Medicare program for the claimed services. The payments to the United States total over $1.7 million.
The hospital also entered into a corporate integrity agreement with the United States Department of Health and Human Services, Office of Inspector General.
The settlement resolves allegations by the United States concerning the hospital’s claims to Medicare for hyperbaric oxygen wound therapy services. The procedure involves placing a patient’s entire body in a chamber of oxygen under increased atmospheric pressure. The United States contended that from March 23, 2007, through January 31, 2011, the hospital submitted claims to Medicare for hyperbaric oxygen wound therapy services that were not medically necessary or that lacked adequate documentation of medical necessity. The government also alleged that the claims resulted from kickback arrangements between the hospital, at least one of its physicians, and the company that supplied the chambers.
The hospital denied the allegations and, according to the terms of the agreement, the hospital does not admit any wrongdoing.
“Today’s settlement demonstrates our continuing commitment to protect the integrity of the Medicare program,” Grissom said. “ It is the latest example of how the Office of Inspector General for HHS and this office work hard together to assure appropriate care to beneficiaries and recover improperly paid funds.”
Grissom commended the Department of Health and Human Services, Inspector General, and Assistant U.S. Attorney Jon Fleenor for their work on the case.
Hermosa Woman Sentenced for Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hermosa, South Dakota, woman convicted of Misprision of a Felony was sentenced on September 16, 2013, by U.S. District Judge Roberto A. Lange.
Doreen Amiotte, age 48, was sentenced to 24 months of probation, a $500 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Amiotte was indicted by a federal grand jury on January 16, 2013, and pled guilty to Misprision of a Felony on May 31, 2013.
The conviction arose from an incident that took place on November 26, 2012, when Amiotte failed to report in a timely manner that a federal inmate, who was out on funeral furlough, could not be located. The inmate absconded from the funeral between 11 a.m. and 12 p.m. Amiotte did not report the escape until after 4:30 p.m.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Marie Ruettgers.
Gila River Tribal Member Sentenced to 18 Years for Second Degree MurderRead the Press Release
PHOENIX – On September 16, 2013, Charles Leo Thomas, 39, of Laveen, Ariz., an enrolled member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 18 years in federal prison, followed by a term of five years of supervised release. Thomas pleaded guilty to second degree murder on June 27, 2013.
According to court documents, on April 18, 2012, Thomas and two of his co-defendants, Manuel Bernell Moore and Delbert Monroe Thomas got into an altercation with the victim and struck the victim multiple times. Thomas grabbed a knife and stabbed the victim three times causing fatal injuries. Co-defendant Delbert Thomas was sentenced to 60 months in prison on August 12, 2013, after pleading guilty to accessory after the fact. Moore is awaiting trial.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore and Dimitra H. Sampson, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1196-001-PHX-GMS
RELEASE NUMBER: 2013-072_ThomasFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Franklin Man Convicted of String of RobberiesRead the Press Release
NORFOLK, Va. – Steven V. Parker, 43, of Franklin, Va., pleaded guilty today to committing a string of bank robberies.
Kathleen M. Kahoe, Acting United States Attorney for the Eastern District of Virginia, and Royce E. Curtain, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Office, made the announcement after the plea was accepted by United States District Judge Raymond A. Jackson. Parker was indicted on July 10, 2013, by a federal grand jury on seven charges of bank robbery. He faces a maximum penalty of 80 years imprisonment when he is sentenced on December 18, 2013.
In a Statement of Facts filed with the plea agreement, Parker admitted to his role in a string of bank and credit union robberies across multiple Tidewater cities. During each robbery, Parker concealed his identity with a different baseball hat and sunglasses. After entering each financial institution, Parker passed the teller a note demanding United States currency in large denominations and warning the teller not to activate any alarms or include a dye pack – a common anti-theft device – with the currency. Each teller complied. Parker then produced a dark blue zippered bank bag, placed the currency inside, retrieved his note, and left the bank. As Parker fled the scene of the last robbery in his string – on May 16, 2013 – law enforcement located him and took him into custody after a vehicular chase through multiple cities.
This case was investigated by the Federal Bureau of Investigation and the Chesapeake, Hampton, Isle of Wight, Newport News, Portsmouth, and Virginia Beach Police Departments. Assistant United States Attorney V. Kathleen Dougherty is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Founder of Investment Company Pleads Guilty in $21 Million Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that James C. Howard, III, 53, of Parkland, FL, the founder of Commodities Online LLC (COL), pled guilty yesterday for his participation in a $21 million investment fraud scheme.
Howard pled guilty before U.S. District Judge Ursula Ungaro to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 2, 2013.
According to court documents, Howard conspired with co-defendants Patricia S. Saa, Louis N. Gallo, III, and Michael R. Casey to defraud individuals who invested in COL. From approximately January 2010 through April 2011, Howard and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors.
According to court documents, Howard and his co-conspirators used COL to sell COL ownership units, subscriptions to the COL website, and investments in purported transactions to buy and sell commodities. After receiving the funds for the COL ownership units, Howard and Saa diverted a large part of those funds for other purposes. In addition to selling COL ownership units, Howard and his co-conspirators caused certain purported “pre-sold” commodities contracts to be offered for investment via the COL website, stating a pre-determined percentage return on investment and the number of days by when investors would be paid. Howard and his co-conspirators also represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.
Also according to court documents, Howard and his co-conspirators also made material misrepresentations and omissions about the leaders of COL. After mid-2010, Howard and his co-conspirators represented that Howard was no longer President of COL and that co-defendant Casey, an attorney, was the President of COL. Howard and his co-conspirators represented that Howard was no longer managing COL, when in fact, Howard remained in charge. Also, Howard and his co-conspirators did not disclose to investors that both Howard and co-defendant Gallo had previously been convicted of federal felonies and that Gallo was still serving a term of supervised release.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Vice President of Wells Fargo Advisors and Morgan Stanley & Co. Pleads Guilty in $1.8 Million Fraud SchemeRead the Press Release
SAN FRANCISCO – Adorean Boleancu pleaded guilty in federal court in San Francisco on September 13, 2013, to one count of wire fraud, United States Attorney Melinda Haag announced.
In pleading guilty, Boleancu, Vice President and Senior Financial Consultant in the Wealth Management Group of Wells Fargo Advisors, LLC., admitted to writing more than $1.8 million in checks on accounts of an elderly, widowed client for his personal benefit. He signed the victim’s name to checks drawn on the victim’s brokerage account and home equity lines of credit without the victim’s knowledge or authorization. The checks were payable to Boleancu’s family members, his girlfriend, another female acquaintance, cash, and financial companies where Boleancu had credit card accounts.
Boleancu, 47, of Napa, California, was indicted by a federal Grand jury on July 9, 2013. He was charged with 14 counts of bank fraud, in violation of 18 U.S.C. § 1344; 4 counts of wire fraud, in violation of 18 U.S.C. § 1343; 5 counts of money laundering, in violation of 18 U.S.C. § 1957; and 4 counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
Boleancu is currently released on an $800,000 bond.
Boleancu’s sentencing hearing is scheduled for December 17, 2013, before the Honorable Richard Seeborg, U.S. District Court Judge, in San Francisco. The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is 30 years and a fine of $1,000,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert S. Leach and Kyle F. Waldinger are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth and Mary Mallory. The prosecution is the result of an 18-month investigation by the Federal Bureau of Investigation.
(Boleancu indictment )
Former President of Searcy Closing Company Sentenced to 24 Months in Prison for Mail FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Randall C. Coleman, Special Agent in Charge of the Federal Bureau of Investigation – Little Rock Field Office announced today that United States District Judge James M. Moody sentenced Marci Ann Ingram, age 41, of Searcy, to 24 months imprisonment followed by three years of supervised release for mail fraud related to Landmark Closing Company, Inc.
Thyer said, “When someone has defrauded the citizens of their community as blatantly as Ms. Ingram did, justice will reveal the truth and restore integrity. In this case, the request for an investigation came to the Arkansas Insurance Department whose investigators uncovered the ugly truth and brought it to the FBI for further investigation. As a result, Ms. Ingram is now facing the seriousness of her lack of veracity in her business practices.”
“Ms. Ingram betrayed those whose escrow accounts she held, and as a result, jeopardized their home ownership,” stated Coleman. “I appreciate the collective work of our agents, the Arkansas Insurance Department, and the United States Attorney who brought Ms. Ingram to justice for her actions.”
Ingram was charged by an Information and pled guilty to one count of mail fraud on April 12, 2013. The charges involve activities by Ingram as President and principal shareholder of Landmark Closing Company, Inc. (LCC) from 2006 through mid-2009.
During an investigation by the Arkansas Insurance Department – Criminal Investigation Division, evidence indicated that Ingram had been diverting money from an escrow account to other working accounts of LCC for personal use. As a result, the FBI was contacted to lead a federal investigation which resulted in the charge of mail fraud. According to the Information, “Ingram used some of these diverted escrow funds for her own personal use to pay for trips, Arkansas Razorback tickets, Netflix, iTunes, online gambling/gaming, clothing, makeup, country club dues, Facebook certificates and other non-business related expenditures.” In addition, Ingram used some of the escrow money to repay a personal loan from her parents. Checks issued to lienholders for legitimate payments from the escrow account were returned by the bank as insufficient due to a lack of funds. This caused Old Republic National Title Insurance Company, the company who insured the property titles for LCC, to pay $418,828.68 in claims and losses to lienholders.
Ingram pled guilty to a specific mail fraud charge of mailing an escrow check to Washington Mutual Payoff Unit, Jacksonville, Florida in the amount of $163,157.91 in June of 2009.
An Order for restitution will be issued separately at a later date after it is determined how much Ingram has repaid and how much restitution is still owed.
This investigation was conducted by the Federal Bureau of Investigation and the Arkansas Insurance Department-Criminal Investigation Division. Assistant United States Attorney Tricia Harris prosecuted this case for the United States
Former Police Officer Sentenced to 15 Years in Federal Prison and Fined $5,000 for Producing and Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — Philip Woolery, a former officer with the Grapevine, Texas, Police Department, was sentenced today by U.S. District Judge Terry R. Means to 180 months (15 years) in federal prison and fined $5,000 following his guilty plea in March 2013 to an Information charging one count of production of child pornography and one count of possession of child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Woolery, 47, has been in custody since his arrest in October 2012 at his residence in Crowley, Texas, by U.S. Postal Inspectors during the execution of a federal search warrant. He admitted that in August 2011 he used his digital camera to record a minor male engaging in sexually explicit conduct in a swimming pool. In addition, Woolery admitted that in October 2012, he possessed a laptop computer that contained a sexually explicit image of a nude minor male and that he used that computer and the Internet to search for websites containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney A. Saleem prosecuted.
Former Officer with Alvarado, Texas, Police Department Admits Leaking Law Enforcement Sensitive Information in Anabolic Steroid InvestigationRead the Press Release
DALLAS — Brent Dickey, 42, a former officer with the Alvarado, Texas, Police Department, appeared in federal court today and pleaded guilty to an Information charging one count of misprision of a felony. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Dickey, a resident of Burleson, Texas, will remain on bond pending sentencing, which is set for January 8, 2014, before U.S. District Judge Ed Kinkeade. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in February 2010, Dickey was assigned to the Stop The Offender Program – Special Crimes Unit (STOP-SCU), a Johnson County law enforcement task force that investigated drug crimes occurring in the county. Dickey knew that a particular individual, Person A, was unlawfully distributing anabolic steroids, and he failed to make this felony known to some judge or other person in civil or military authority under the United States, such as a federal grand jury or an FBI agent.
On February 5, 2010, another STOP-SCU task force officer received information that Person A was unlawfully distributing anabolic steroids. This task force officer told Dickey that he planned to make a case against, and arrest, Person A. Unbeknownst to this task force officer, Person A had been supplying Dickey with anabolic steroids.
Two days later, Dickey went to Person A’s home and leaked this law enforcement sensitive information to Person A so that Person A would avoid getting caught, arrested or prosecuted for this felony drug offense.
The FBI and the Texas Ranger Division of the Texas Department of Public Safety are investigating. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney J. Mark Penley are in charge of the prosecution.
Former Ledyard Resident Sentenced to More Than Eight Years in Federal Prison for Child Pornography OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MATTHEW WALLACE, 32, formerly of Ledyard, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 100 months of imprisonment, followed by five years of supervised release. On March 6, 2013, a jury found WALLACE guilty of one count of receiving child pornography and one count of possessing child pornography.
According to the evidence disclosed during the trial, on January 19, 2010, a Milford Police detective assigned to the Connecticut Child Exploitation Task Force logged into a peer-to-peer Internet file sharing network and downloaded several images of child pornography from an Internet Protocol (“IP”) address assigned to WALLACE at his Ledyard residence. On May 28, 2010, law enforcement agents conducted a court-authorized search of WALLACE’s residence and seized computers and hard drives. Forensic examination of the seized items revealed more than 500 images and videos of children, some as young as five years old, engaged in sexually explicit conduct.
WALLACE was arrested on December 16, 2010. He has been detained since March 13, 2013.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Milford Police Department. The Connecticut State Police and the Ledyard Police Department provided valuable assistance to the investigation. The case was prosecuted by Assistant United States Attorneys Neeraj Patel and Ray Miller.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Elizabethtown, Kentucky Business Operator Guilty in International Pyramid & “Ponzi” SchemeRead the Press Release
– Operated multiple businesses from Elizabethtown, Kentucky
LOUISVILLE, KY – The former owner of businesses operating in Hardin County, Kentucky pleaded guilty in United States District Court before District Judge John G. Heyburn II, today to charges of aiding and abetting with others in an illegal pyramid/ “Ponzi” scheme and engaging in a conspiracy to commit mail fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement presented in court today, defendant Swainson Hawke, a/k/a Ronald D. Scheetz of Macon, Georgia defrauded numerous investors through his control of an operation of Guardian International Travel, LLC and related companies. Guardian International operated as both a “pyramid scheme” and a “Ponzi scheme” to defraud investors. Between February 1, 2005 and January 20, 2008 Hawke and co-defendant William A. Humes of Elizabethtown, Kentucky devised a scheme to defraud and to obtain money from participants in multi-level marketing schemes promising inflated returns. Through businesses they owned and controlled, including Guardian International Travel, LLC., Hawke admitted to inducing investors to purchase discount cards, ostensibly connected to the hospitality industry, creating the illusion that returns/payments were based on profits. In a Ponzi scheme, the fraud consists of paying funds received from new investors to previous investors in the guise of profits from the alleged business venture. Hawke assured returns on monies received from participants varying from 300% to 500%, to be paid in scheduled installments over periods of time ranging from 18 to 29 months.
In the furtherance of a pyramid scheme, defendant Hawke offered participants significant financial incentives to recruit new investors by paying them “commissions.” New investors paid Guardian International Travel and other companies owned and or operated by Hawke, for the right to financial rewards through recruiting new participants – a financial gain unrelated to the sale of a product.
Hawke and Humes were charged in a 2-count federal grand jury indictment that was unsealed Thursday, June 30, 2011.
If convicted, at trial, Hawke faced no more than 40 years in prison, a $500,000 fine, three years supervised release, as well as forfeiture to the United States Government, any and all property obtained as a result of the violations. Hawke is scheduled for sentencing before Judge Heyburn on January 7, 2014 at 2:00 pm in Louisville.
Defendant Humes is scheduled for trial in United States District Court, Louisville, before Judge Heyburn on January 14, 2014 at 10:00 am.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun, Special Assistant United States Attorney Jim Lesousky and was investigated by the Federal Bureau of Investigation (FBI) and the Kentucky Attorney General; Consumer Protection Division.
Former Bosnian Prison Guard Certified for Extradition to Bosnia-Herzegovina to Answer for Allegations of War CrimeRead the Press Release
Almaz Nezirovic is Wanted in Bosnia for War Crimes Against Civilians
ROANOKE, VIRGINIA – A former guard at the Rabic camp in Derventa Municipality of Bosnia and Herzegovina, who allegedly committed abuses against Serb civilians being detained at the camp, has been certified for extradition to Bosnia by a federal judge sitting in the United States District Court for the Western District of Virginia in Roanoke.
Almaz Nezirovic, 54, of Roanoke, Va., is wanted in Bosnia to stand trial on the charge of War Crimes Against Civilians, allegations that arise out of actions claimed to have occurred between April and July 1992 during the Bosnian War. In April 1992, Nezirovic joined a paramilitary group, the HVO, and became a prison guard. Bosnian officials charge that while serving as a prison guard, Nezirovic committed war crimes by beating, humiliating and traumatizing unarmed civilian prisoners, causing severe personal injury.
In July 2012, the United States, on behalf of the government of Bosnia, filed a complaint to extradite Nezirovic pursuant to an extradition treaty between the two countries that has been in place since 1901 and the United Nations Convention Against Torture. After several hearings before United States Magistrate Judge Robert S. Ballou, yesterday the court found sufficient evidence to sustain the allegation and certified the extradition request to the Secretary of State. Today’s ruling provides the legal basis for the Secretary of State to decide whether Nezirovic will be extradited to Bosnia, where war crimes charges are pending against him.
“Almaz Nezirovic stands charged with horrific acts of torture by the government of Bosnia and Herzegovina,” United States Attorney Timothy J. Heaphy said today. “Today’s ruling moves this matter one step closer to ultimate resolution in that country. Mr. Nezirovic can now be subject to extradition and surrender to his home country, where he will stand trial for these offenses.”
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Criminal Division of the Department of Justice and the Office of International Affairs. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Elizabeth Wright are prosecuting the case for the United States.
Former Attorney Sentenced to More Than Eleven Years for Bank and Mail Fraud ConspiracyRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday sentenced Mark W. Jackson (62), a former resident of Pinellas County and a former Florida attorney, to eleven years and three months in federal prison for bank and mail fraud conspiracy. The court also ordered Jackson to serve five years of supervised release, to pay restitution of $166,795.89, to pay a forfeiture money judgment of $200,000, and to pay a special assessment of $100.
Jackson pleaded guilty to the charge on August 28, 2008, but fled prior to being sentenced. He was a fugitive from February 17, 2009, until March 30, 2012 ,when he was arrested in North Carolina by local law enforcement authorities for committing offenses similar to those committed in the Middle District of Florida.
According to court documents and sentencing testimony, the conspiracy took place from a time prior to April 2000, and continued through July 2, 2004. As part of the conspiracy, Jackson and his co-conspirator William Wayne Dykstra stole mail matter containing personal information as well as personal and business checks from the United States mail. They then produced and used counterfeit personal identification documents, including unlawfully obtained copies of other individuals valid Florida driver licenses. They opened numerous accounts and rented mail boxes at Commercial Mail Receiving Agencies (CMRAs) using fraudulent identification documents. The pair also opened bank accounts in the names of others using stolen identification information. They produced counterfeit personal and business checks, deposited those checks into the fraudulently opened bank accounts, then withdrew funds from the accounts using ATMs. They also produced counterfeit personal and business checks based on checks stolen from the U.S. Mails, and then negotiated and attempted to negotiate the checks at drive-through teller windows of various bank branches throughout the Middle District of Florida using stolen or fraudulent identity documents. Jackson and Dykstra fraudulently obtained and attempted to obtain more than $200,000 from the compromised banks during the conspiracy.
Dykstra pleaded guilty to his role in the conspiracy in August 2008. On February 17, 2009, he was sentenced to two years and nine months in federal prison.
This case was investigated by the United States Postal Inspection Service. It was prosecuted by Senior Litigation Counsel Donald L. Hansen.
Federal Grand Jury in South Bend Returns IndictmentRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictment on September 11, 2013:
Tyrone Franklin, 34, of Michigan City, Indiana, was charged in a four count Indictment with two counts of felon in possession of a firearm and/or ammunition and two counts of felon in possession of one or more firearms.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank E. Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Ex-Read the Press Release
CLAY COUNTY SHERIFF PLEADS GUILTY TO FEDERAL WIRETAPPING CHARGE
Former Sheriff Miles Slack Secretly Intercepted Communications from Ex-Wife’s Supreme Court Computer
CHARLESTON, W. Va. – Former Clay County Sheriff Miles J. Slack pleaded guilty today to illegal wiretapping, a federal felony, U.S. Attorney Booth Goodwin announced. Appearing today in federal district court, Mr. Slack, who resigned as sheriff last Friday as part of his plea agreement with Goodwin, admitted to surreptitiously installing a keystroke logger on a computer belonging to the Supreme Court of Appeals of West Virginia.
The compromised computer was a government computer assigned to Mr. Slack’s then wife, Lisa Slack, who works in the office of a Clay County magistrate. Computers in the offices of circuit judges and magistrates throughout West Virginia are owned and maintained by the state’s Supreme Court, and are connected to a central Supreme Court computer network.
Mr. and Ms. Slack were in the midst of a divorce when he illegally tapped her computer. Mr. Slack admitted that he intended to monitor his ex-wife’s activity on the computer, including messages she sent through Internet chat and e-mail programs. He said he also wanted to capture his ex-wife’s usernames and passwords for various Internet services. Mr. Slack acknowledged that the wiretap device he installed captured everything that was typed on his ex-wife’s computer, including information about court business and the personal information of defendants in Clay County magistrate court.
Mr. Slack installed the hidden device in late April of this year and it remained in place for over two weeks.
“It’s a shame that Clay County’s chief law enforcement officer chose to illegally tap a government computer,” said U.S. Attorney Goodwin. “Our elected officials and law enforcement officers have to respect the law like everyone else. If they don’t, there are consequences.”“These days, it seems like every detail of our lives is being bounced around the world on computer networks,” Goodwin continued. “Imagine learning that someone was secretly monitoring everything you did on your own computer, without any legal authority. It’s a very serious breach of privacy. That’s why the laws against wiretapping are so important.”
Keystroke logging devices can be purchased from a number of Internet-based sellers. The devices, usually one to two inches long, are attached to a computer’s keyboard cable. Once installed, they can intercept everything typed on the keyboard, including email and information transmitted to Internet sites.
Because the devices are unobtrusive and normally hidden behind the computer targeted for surveillance, they can go undetected for long periods of time. Though small in size, some keystroke loggers can store two gigabytes of information, enough to record more than a billion keystrokes.Slack served as a Clay County deputy sheriff for around 16 years. In early 2012, while acting as chief deputy for the Clay County Sheriff’s Department, Slack announced he was running for sheriff. Then-Sheriff Randy Holcomb, however, quickly demoted Slack to the rank of sergeant, a move that threatened Slack’s election bid. Under West Virginia civil service laws, deputy sheriffs other than the chief deputy may not run for public office. In order to remain in the race, Slack resigned from the department and became Chief of Police for Clay, West Virginia, the county seat of Clay County.
In the May 2012 primary election, Slack soundly defeated two other candidates for the Democratic nomination for sheriff, receiving nearly 78% of the vote. He ran unopposed in the November 2012 general election and took office January 1, 2013. Slack’s first projects as sheriff included expanding evening patrols and seeking funding for a new home confinement officer.
The case is being investigated by the Federal Bureau of Investigation and the West Virginia State Police, with assistance from the Supreme Court of Appeals of West Virginia. The prosecution is being led by Counsel to the United States Attorney Steven Ruby.
Slack faces up to five years in prison when he is sentenced on December 19, 2013 by United States District Judge John T. Copenhaver, Jr.
Click here to view a copy of the plea agreement
District Man Sentenced to 28 ½ Years in PrisonRead the Press Release
For Sexually Abusing Stepdaughter and Other Crimes
-Defendant Also Violated Court Orders, Assaulted Police Officer With a Knife-
WASHINGTON – A 47-year-old man from Washington, D.C. was sentenced today to a prison term of 28 ½ years for sexually abusing his stepdaughter, sending letters and making phone calls to her and her mother in violation of court orders not to do so, unlawfully entering the family’s house after being ordered to stay away, and assaulting a police officer who had come to assist the family in the unlawful entry, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, who is not named here to protect the privacy of the victim, pled guilty to charges in June 2013 in the Superior Court of the District of Columbia. He pled guilty to first-degree child sexual abuse, attempted first-degree child sexual abuse, violating a civil protection order, criminal contempt, unlawful entry, and felony assault on a police officer. He was sentenced by the Honorable Patricia A. Broderick. Upon completion of his prison term, the defendant must register for 10 years as a sex offender.
The defendant is the ex-husband of the girl’s mother. At the plea hearing, he admitted that in the spring of 2012, when the victim was 14, he sexually abused the girl at their home in the District of Columbia. As a result of the sexual abuse, the victim became pregnant. The defendant told the victim to say that the baby’s father was a boy from school. Early this year, the victim revealed to her mother that the baby’s father was in fact the defendant. The victim further disclosed to law enforcement that the defendant had sexually abused her over a period of time beginning in at least 2010.
Early this year, the victim’s mother filed for and was granted a civil protection order from the defendant. On or about Feb. 5, 2013, he sent the victim’s mother a text message indicating that he knew who she was with. Alarmed that the defendant was nearby and watching her, the victim’s mother contacted the Metropolitan Police Department (MPD). Officers met her outside her house and went inside to make sure the defendant was not there. Two uniformed officers went into the basement. The defendant jumped out from beneath the stairway, brandished a knife, and stabbed one of the officers in the torso, cutting through his shirt and bullet-resistant vest. The defendant was placed under arrest. He later violated court orders by mailing a hand-written letter to the victim’s mother and calling the victim numerous times.
In announcing the sentence, U.S. Attorney Machen commended the work of the MPD, especially the detectives who led the investigation of the case. U.S. Attorney Machen also praised the work of Victim/Witness Advocates Shawn Slade and Veronica Vaughn, as well as Paralegal Specialist Jason Manuel. Finally, he commended Assistant U.S. Attorneys Amy H. Zubrensky and Jeff T. Cook, who investigated and prosecuted the case.
13-319Department of Justice Awards Hiring Grants to Support Southern District of California Law EnforcementRead the Press Release
Grants awarded to hire law enforcement positions
SAN DIEGO – The Department of Justice awarded grants totaling $925,235 to two cities in the Southern District of California, aimed at creating six new law enforcement positions, announced United States Attorney Laura E. Duffy.
The Department of Justice Community Oriented Policing Services (COPS) Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years. Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
This year’s COPS grantees within the Southern District are the City of Brawley, located in Imperial County, will receive $425,235 and the City of Chula Vista, located in San Diego County, will receive $500,000.
U.S. Attorney Duffy noted that these grants will provide additional resources to address public safety in this District. We are pleased that the Department is recognizing and supporting the efforts of local law enforcement in Chula Vista and Brawley.
The COPS Office is responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
Additional information about the 2013 COPS Hiring Program can be found on the COPS website at www.cops.usdoj.gov.
Department of Justice Awards Hiring Grants to Support Northern Disctrict of California Law EnforcementRead the Press Release
SAN FRANCISCO – The Department of Justice awarded grants totaling over $9 million to cities and counties in the Northern District of California, aimed at creating 30 new law enforcement positions, announced United States Attorney Melinda Haag.
The list of this year’s grantees within the Northern District of California includes Oakland, Alameda County, Hayward, East Palo Alto, Clearlake, Greenfield, Kings City, Marina, and Watsonville.
"The federal law enforcement agencies and U.S. Attorney's Office embrace the opportunity to work with local law enforcement to ensure the safety and security of the residents of the Northern District of California," said U.S. Attorney Melinda Haag. "The additional officers who will be hired as a result of these grants will bring much needed reinforcements to those cities and counties who can use them most. In particular, the City of Oakland and Alameda County will benefit from 18 new officers placed on the streets. The grants announced today are further building blocks that strengthen the partnerships among the federal, state, and local law enforcement organizations."
The Department of Justice Community Oriented Policing Services Service (COPS) Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years. Grantees for the 2013 hiring program were selected based on their fiscal needs, local crime rates, and community policing plans.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 125,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
Additional information about the 2013 COPS Hiring Program can be found on the COPS website at www.cops.usdoj.gov.
Crack Cocaine Trafficker Sentenced on Drug ChargesRead the Press Release
ROCHESTER, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Cyle Krepps, a/k/a Black, a/k/a Trick, a/k/a Durell, a/k/a Dred, 26, of Rochester, N.Y., who was convicted of conspiracy to possess with intent to distribute and distribution of 280 grams or more of cocaine base and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 16 years in prison by U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that between 2009 and 2011, Krepps processed cocaine into cocaine base which he then sold in various quantities and at different locations in the City of Rochester, including a house at 95 Friederich Park. On September 14, 2011, law enforcement officers arrested Krepps driving a rental vehicle after surveilling him leave 95 Friederich Park. The defendant had keys to the residence and over $2,200 in U.S. currency when he was arrested.
Officers then executed a search warrant at 95 Friederich Park, which was barricaded and monitored by an alarm system. Inside, officers seized a stolen, pistol-grip AR-15 style rifle chamber-loaded with seven rounds of live ammunition, a bag containing approximately two grams of cocaine base, a cell phone, and drug trafficking paraphernalia, which included scales for weighing drugs, empty bags for packaging drugs for sale, and dilutant to process drugs.
The conviction is the culmination of an investigation by members of the Violent Enforcement Suppression Team (“VEST”) of the Rochester Police Department, under the direction of Chief James Sheppard, the Greater Rochester Area Narcotics Enforcement team (“GRANET”), under the direction of Lieutenant Gerald Smith, and Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives under the direction of Scott Heagney.Covington Man Indicted and Arraigned for Drug Distribution Causing DeathRead the Press Release
COVINGTON, KY - A Covington, KY., man has been arraigned on federal charges alleging that he sold a quantity of heroin to another individual who died as a result of using the drug.
On September 12, 2013, a federal grand jury in Covington returned a sealed indictment charging 28 year-old Timothy Tingle with distribution of heroin resulting in death. The indictment was unsealed Monday afternoon, following Tingle’s arrest. Tingle subsequently pleaded not guilty to the charges during his initial appearance in federal court. A trial date is set for November 25, 2013.
The indictment alleges that Tingle sold heroin, on or about April 20, 2013 in Kenton County, and that the person who purchased it died from an overdose as a result of using the heroin.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration, jointly announced the indictment and arraignment.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Taylor Mill Police Department. The indictment was presented to the grand jury by Assistant U.S. Attorney Anthony Bracke.
Tingle’s next court appearance is scheduled for September 19, 2013 at 1:30 p.m. If convicted, Tingle faces a minimum of 20 years and up to life in prison, a maximum fine of $1,000,000, and at least 3 years of supervised release. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
An indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
Cleveland Woman Sentenced to 16 Months in Prison for Theft of $41,000 in Government BenefitsRead the Press Release
A Cleveland woman was sentenced to 16 months in prison for the theft of more than $41,000 in government benefits, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
India N. Parker, 37, will serve her federal sentence after serving a sentence in state prison related to offenses against a human corpse, tampering with evidence and criminal mischief.
Parker pleaded guilty earlier this year in U.S. District Court to two counts of theft of government property and five counts of making false statements.
Parker’s five-year-old daughter died in late 2006. Parker left the child’s remains to decay before putting the body in a trash bag and then in a garbage can in her front yard. A garbage truck then picked up and disposed of the child’s body. The body was never found, according to court documents.
After the child’s death, Parker lied about her daughter’s whereabouts to friends, family and investigators. While she disposed of the body, Parker stole and converted to her own use $40,236 in Social Security payments made to her daughter and $1,393 in food stamp benefits, according to court documents.
She also made false statements to agency representatives by stating that her daughter had been living with her when, in fact, Parker knew that her daughter was deceased during the relevant time frames, according to court documents.
The case was prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Social Security Administration Office of Inspector General.
Chairman of the Board of the Paideia Academy/Employee of St. Louis City Treasurer's Office Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – FRED W. ROBINSON was sentenced to 24 months in prison on multiple fraud charges involving his submission of false time sheets in the Treasurer’s Office and his diversion of federal and state education funds from the Paideia Academy Charter School. The Judge also ordered restitution of $419,333.
Robinson was the Chairman of the Board of Trustees for Paideia Academy, a Missouri charter school for kindergarten through eighth grade. He maintained an office in the school’s administration building and was involved in the day-to-day management and administration of the school. Paideia was tuition free and funded by federal and Missouri education funds intended for legitimate school operations.
According to testimony presented at trial, during 2009 and 2010, Robinson diverted approximately $242,333 of Paideia Academy funds for the purchase, construction, renovation and rehabilitation of a building at 4028 West Florissant Avenue in St. Louis for the purpose of developing and operating a Little People’s Academy day care center to be operated by Robinson and an associate through Paige C. Investments, LLC, in which Robinson had an ownership and financial interest. Robinson failed to disclose his ownership and financial interest in the proposed day care center to the Paideia Academy Board of Trustees. Robinson’s partner in the proposed day care center was a friend and associate of Robinson who worked as a bartender at a lounge frequented by Robinson, and who had no background, experience or training in early childhood education or the operations of a day care center.
Additionally, during each year from 2006 through 2010, as an employee of the Treasurer’s Office for the City of St. Louis, Robinson submitted false weekly time sheets falsely certifying work hours and was paid approximately $35,360 each year in salary based upon those false time sheets.
Robinson, St. Louis, Missouri, was convicted in March of one count of wire fraud and seven felony counts of federal program theft after a seven-day trial before United States District Judge Audrey G. Fleissig.
Other defendants that have been charged as part of the investigation are Dannielle Benson and Frank Habeebullah, both of whom plead guilty late last year.
This case was investigated by the Federal Bureau of Investigation and the United States Department of Education-Inspector General’s Office. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.Cattle Ranch Owner Pleads Guilty to $150,000 Social Security Disability FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Leeton, Mo., man has pleaded guilty in federal court to receiving nearly $150,000 in federal disability benefits while he owned and operated a cattle ranch.
Allan Dalton, 55, of Leeton, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan on Monday, Sept. 16, 2013, to a federal information that charges him with theft of government money.
According to the plea agreement, Dalton concealed his work activity from the Social Security Administration as part of a scheme to fraudulently obtain a total of $147,070 in disability payments.
Dalton applied for disability benefits in October 1999 and was determined in August 2000 to be medically disabled and unable to work due to rotator cuff injuries.
Dalton began operating his cattle ranch as early as 1999. Based on the information SSA discovered during its investigation, by June 2004, Dalton’s work activity at the ranch was substantial and precluded him from receiving Social Security disability payments. Between June 2004 and June 2011, Dalton took out numerous loans for his cattle operation. For example, in October 2007, Dalton paid over $100,000 for cattle, and in March 2008, he paid over $70,000 for cattle. Loan documents from this time period showed that Dalton owned significant assets, including livestock, land and farm equipment. Today, Dalton admitted that he willfully failed to timely disclose his work activity at his ranch to SSA because he wanted to continue to receive Title II disability payments that he was not entitled to receive.
In addition to the disability payments, Dalton fraudulently obtained a $250 economic stimulus payment under the American Recovery and Reinvestment Act of 2009. This payment was made contingent on Dalton’s eligibility to receive Social Security disability payments. Pursuant to the plea agreement, Dalton agreed that he caused a loss to the government totaling $147,320.
Under federal statutes, Dalton is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by the Social Security Administration – Office of Inspector General.California Man Sentenced to Prison for Federal MarijuanaRead the Press Release
Trafficking Charges
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a California man was sentenced today by United States District Judge Robert D. Mariani to serve 48 months in prison on the charge of conspiracy to distribute marijuana.
According to United States Attorney Peter J. Smith, Karl Aspinall, age 38, of Los Angeles, California, admitted to participating in a marijuana trafficking ring which obtained marijuana from medical marijuana dispensaries and other sources in California, transported the marijuana to Pennsylvania, and distributed it to street level dealers and customers in the Lackawanna County area.
In addition to the prison term, Judge Mariani also ordered that Aspinall be supervised by a probation officer for two years following his prison sentence.
The investigation was conducted by the Federal Bureau of Investigations Safe Streets Task Force and the Scranton Police Department.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
****