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Monday 29 July 2013
Former Human Resources Manager Pleads Guilty in Theft of More Than $400,000 from Employer-Defendant Worked for Non-Profit Organization-Read the Press Release
WASHINGTON – Brenda Isom, the former human resources manager for a non-profit organization, pled guilty today to a federal charge stemming from the theft of more than $400,000 from her employer, U.S. Attorney Ronald C. Machen Jr. announced.
Isom, 47, of Silver Spring, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of interstate transportation of stolen property. The Honorable Reggie B. Walton scheduled sentencing for Oct. 25, 2013. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, Isom faces a likely range of 30 to 37 months in prison and a fine of up to $60,000. As part of the plea agreement, Isom has agreed to the entry of a forfeiture money judgment against her in the amount of $414,047.
According to a statement of offense signed by the government and the defendant, Isom was hired in January 2006 as human resources manager for the Leadership Conference Education Fund. The fund is a non-profit that works to promote and protect civil and human rights for people in the United States. Among other duties, Isom was in charge of managing the payroll. Those duties included electronically submitting information to a Maryland-based vendor that handled the processing of payroll payments.
Soon after taking the job, Isom began submitting information that led to additional and unauthorized payments to herself, which were well in excess of her salary. She also altered reports to conceal and disguise the fraudulently obtained payroll amounts she was receiving.
From January 2006 through June 2011, Isom received $414,047 in fraudulently obtained payroll amounts from the Leadership Conference Education Fund.
“Brenda Isom stole $400,000 in charitable funds intended to promote civil rights in our country,” said U.S. Attorney Machen. “Her crime harmed both the charity and the donors who gave their hard-earned money to support its mission. This case is another example of our continued efforts to prosecute thieves who divert charitable funds for personal gain.”
In announcing the guilty plea, U.S. Attorney Machen praised the work of those who handled the case for the U.S. Attorney’s Office, including Criminal Investigators Matthew Kutz and Juan Juarez, former Assistant U.S. Attorney Mary Chris Dobbie, and Assistant U.S. Attorney James E. Smith, who is prosecuting the case.
13-266Former Corrections Officer Sentenced to Three Months in Jail and Six Months of Home Detention for Bribery ChargeEmployee Took Cash to Smuggle Items into D.C. JailRead the Press Release
WASHINGTON – April Johnston, a former corrections officer, was sentenced today to three months in jail and six months of home detention for accepting money to bring contraband into a District of Columbia correctional facility, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Johnston, 42, pled guilty to a charge of bribery in March 2013 in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Robert L. Wilkins. Upon completion of her jail time, she will be placed on two years of probation. Judge Wilkins also ordered her to perform 100 hours of community service. Johnston also is subject to a forfeiture judgment of $2,500.
According to the government’s evidence, at the time of the offense, Johnston was employed as a corrections officer for the District of Columbia Jail and had met with individuals inside the jail to discuss the possibility of smuggling contraband to an inmate. In September 2011, she made a telephone call to a person who she believed was an associate of an inmate. In fact, however, that person was an undercover agent with the FBI.
Johnston met the undercover agent on Sept. 28, 2011 at her residence in Maryland. During the meeting, the undercover agent paid her $1,000 and gave her a computer thumb drive to smuggle into the jail. She agreed to use her position as a corrections officer to smuggle the item to the inmate in return for the money, and she later did so.
On Oct. 5, 2011, Johnston again met the undercover agent at her residence. This time, the agent paid her $1,500 along with a thumb drive and mobile USB flash drive to smuggle into the jail. Once again, she smuggled the items into the jail in return for the money.
Johnston is among three corrections employees convicted of bribery since December 2012. In December 2012, Daishawn Goodson, a former corrections officer employed by the Corrections Corporation of America (CCA), pled guilty to taking money to smuggle contraband into the District’s Correctional Treatment Facility. She was sentenced to eight months of home detention. In March 2013, Jeremiah Moorman, a former corrections officer, was found guilty of bribery and first-degree theft charges for accepting money under the promise of bringing contraband into the District of Columbia Jail. He was sentenced to two years of probation.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the agents who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the District of Columbia Department of Corrections Office of Investigative Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Nicole Wattelet and Assistant U.S. Attorney Seth B Waxman, who prosecuted the case.
13-265Former Businessman Pleads Guilty in Manhattan Federal Court to Fraud in Connection with the Financing of “Rebecca – The Musical”Read the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that one-time Long Island businessman, MARK HOTTON, pled guilty today in Manhattan federal court to defrauding the producers of the Broadway show “Rebecca – The Musical” (“Rebecca”) through an elaborate scheme involving fictitious overseas “investors” and the possibility of a last-minute $1.1 million loan. HOTTON also pled guilty to participating in a separate scheme to defraud a Connecticut-based real estate company through using many of the same deceptions he employed in the “Rebecca” fraud. HOTTON pled guilty today before U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea today, the curtain is finally closing on Mark Hotton’s elaborately staged fraud. Though his lies and deceits were the stuff of fiction, they caused real harm to his victims, and he now faces real consequences as a result – the prospect of jail.”
According to the Complaint, the Indictment, and statements made in Manhattan federal court:
HOTTON once worked for a prominent investment bank and financial services firm, and is a former stockbroker with ties to numerous corporate entities. From September 2011 to October 2012, he engaged in two separate schemes involving fictitious individuals and entities that he created in order to defraud his victims – the producers of “Rebecca,” a musical based on the novel by Daphne du Maurier, and a Connecticut-based real estate company.
The Rebecca Fraud
As of late January 2012, the producers of “Rebecca” (the “Producers”) were trying to raise an additional $4 million in order to mount the musical on Broadway. The budget for Rebecca was between $12 million and $14 million, and in late January 2012, the producers realized they were at least $4 million short of their minimum capitalization goal. To raise additional funds, on or about February 7, 2012, the Producers’ company entered into an agreement with TM Consulting, Inc., a company HOTTON controlled. Under the agreement, HOTTON undertook to raise money for “Rebecca” in return for a fee of $7,500, plus 8% of any funds raised in excess of $250,000, plus tiered percentages of “Rebecca’s net profits.”
Over the course of the next few months, HOTTON led the Producers into believing that he had secured $4.5 million from four overseas investors – “Paul Abrams,” of Hawthorne, East Victoria; “Roger Thomas,” of St. Peter Port, Guernsey; “Julian Spencer,” of Crocker Hill, Chichester, Sussex, and “Walter Timmons,” of London, United Kingdom (the “HOTTON Investors”). HOTTON provided the Producers with purported email contact information for these individuals and also furnished the Producers with investment agreements purportedly signed by them. These individuals also purportedly wrote emails to the Producers. For example, in April 2012, “Paul Abrams,” using the email account [email protected], wrote one of the Producers an email saying, “Mr. Hotton has spoken so highly about you… I look forward to meeting you and if any further participation in the musical is attainable outside of what I’m doing personally, please let Mr. Hotton know so he can organize it thru my kids Trust.”
Between February and June 2012, the Producers made a number of payments to HOTTON. Not only did they pay the $7,500 fee in February 2012, they also paid HOTTON more than $17,000 between February and June 2012. Furthermore, in April 2012, HOTTON demanded and was paid an “advance” against his 8% commission, claiming that he needed the money to cover the costs of a purported safari he had taken with “Paul Abrams” and Abrams’ eldest son.
The investigation revealed, however, that the HOTTON Investors did not even exist. For example, some of the IP addresses used to access the email accounts of the HOTTON Investors trace back to a Manhattan location where HOTTON did business, and the businesses associated with some of the email address for the HOTTON Investors have websites whose domain names were registered to HOTTON and that he apparently created shortly before and during the fraud. HOTTON used the decoy email addresses to fabricate email correspondence between himself and the HOTTON Investors, which he then forwarded to the Producers. In some instances, he used the email addresses to communicate directly with the Producers.
In July 2012, as the Producers pressed for the HOTTON Investors to wire the money they had promised to send by July 31, 2012, HOTTON orchestrated the false illness, hospitalization, and subsequent untimely “death” of one of the main HOTTON Investors, “Paul Abrams.” HOTTON thereupon fabricated correspondence with a man named “Wexler,” who had purportedly been named the executor of the estate of “Paul Abrams.” HOTTON claimed to be meeting with “Wexler” in England in August 2012 in an effort to make sure the contribution to Rebecca was still made. However, travel records indicate that HOTTON had not left the United States since April 2012. Further, the email address used by “Wexler” was associated with a domain that was set up and registered to HOTTON.
As it became increasingly apparent that the commitments of the HOTTON Investors would fall through, HOTTON purported to try to broker a $1.1 million loan for the Producers, even offering up his own real estate and brokerage account as collateral for the loan. But there was no real loan or lender. Rather, HOTTON had simply created a second set of apparently fictional characters and entities to generate payments for himself. Among other things, HOTTON created the domain name of the title company he said could assist the Producers in obtaining the loan; invented the business, SPS Equity, purportedly making the loan; used decoy emails to fabricate correspondence with individuals, including “Gus” and “Robert Phillips” who purportedly worked for the lender; and invented a company that he said was a “commercial lending affiliate” of the bank that would facilitate his hollow offer to put up collateral for the loan. Through this part of the “Rebecca” scheme, HOTTON was able to defraud the Producers into paying in excess of $35,000 to him and companies he controlled, including $10,000 paid to him personally, as half of a fee for helping to broker the loan, and $23,000 paid to a bank account for the “lender” but which was really controlled by HOTTON’s sister and administrative assistant.
The Connecticut Real Estate Fraud
HOTTON employed a similar set of deceptive devices – including some of the same email addresses and fictitious companies used to defraud Rebecca’s Producers – in order to defraud a Connecticut-based real estate company (the “Real Estate Company”) into paying hundreds of thousands of dollars to him and companies he controlled.
Beginning in September 2011, HOTTON agreed to help the president of the Real Estate Company (the “President”) obtain financing for various business ventures. HOTTON promised that a California-based group called “Pacific Ventures” and its affiliate “Mezzanine Capital” would assist in providing a $20 million loan. HOTTON provided as an email address for a contact at “Pacific Ventures” the same email address he told the Producers was used by “Paul Abrams” and which was then purportedly used by “Walter Timmons” as well as the assistants of “Paul Abrams” in the “Rebecca” scheme. Meanwhile, HOTTON provided as an email address for a contact at “Mezzanine Capital” the same email address he told the Producers was used by “Roger Thomas,” one of the HOTTON Investors.
In March 2012, HOTTON told the President that a third company, “CPS Equity,” would be able to process the loan, but required a $200,000 upfront fee, which the President paid. CPS Equity was the company associated with, among other things, the email address used by “Paul Abrams” when communicating with Rebecca’s Producers. Following the initial $200,000 payment, HOTTON further instructed the President to make additional payments in order to secure the loan.
HOTTON, 46, of West Islip, New York, pled guilty to two counts of wire fraud, each of which carries a maximum term of 20 years in prison. In connection with his guilty plea, HOTTON also agreed to forfeit $500,000 and to make restitution payments to the victims of his schemes in the amount of $500,000. HOTTON is scheduled to be sentenced by Judge Koeltl on November 1, 2013.
Mr. Bharara praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Sarah McCallum, Edward B. Diskant, and Zachary Feingold are in charge of the prosecution.
U.S. v. Mark Hotton Indictment
Former Bookkeeper Sentenced to More Than Seven Years for Embezzling over $1.3 Million from Mountaineer RacetrackRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA – United States Attorney William Ihlenfeld, II, announced that ANITA AMBLER, 49 years old of Virginia, was sentenced on July 29, 2013, in Wheeling by Judge Frederick P. Stamp, Jr. to 87 months imprisonment to be followed by three years of supervised release. AMBLER also must pay money judgment of $1,305,090.15 as well as forfeit real estate located in Reva, Virginia, and a Dodge Nitro, both of which were assets that she purchased with proceeds from her scheme.
AMBLER, a bookkeeper at the Mountaineer Racetrack, was convicted by a federal jury trial in April of 2013 on eleven counts of “Mail Fraud”, ten counts of “Wire Fraud”, and four counts of “Transacting in Criminal Proceeds.”
Trial evidence showed that AMBLER was involved in the theft of funds from an account that was being maintained by Mountaineer Race Track and Casino (“Mountaineer”) on behalf of the Horsemen’s Association. AMBLER was employed by Mountaineer as a bookkeeper and managed and controlled the Horsemen’s account, identified as The Horseman’s Purse Account. The Horseman’s account included funds deposited by horsemen as well as proceeds from race winnings.
As part of her duties and authority, AMBLER received cash which was to be deposited into the Horseman’s account. AMBLER was also responsible for sending communications from Mountaineer to legitimate horsemen account holders and was in a position to know which horsemen- held accounts were dormant and could be subject to compromise and fraudulent use without discovery.
From in or about March of 2005 to August 6, 2010, AMBLER embezzled and stole funds including cash for her own benefit and purpose. Evidence showed that AMBLER used Brinks, which was a private commercial interstate carrier to transport deposits of cash and checks (including deposits intended for the Horseman’s account) from Mountaineer to local financial institutions. Mountaineer and AMBLER utilized an internet-based accounting system to make entries to the accounting and bookkeeping records of the Horseman’s account and AMBLER accessed the account records via the internet thus transmitting interstate wire communications.
This case was prosecuted by Assistant United States Attorneys Randolph J. Bernard and
Michael D. Stein and investigated by the Federal Bureau of Investigation.Final Two Defendants in U.S. Custody Arrested in Dreamboard Child Sex Exploitation Site Case SentencedRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that the last two defendants in U.S. custody arrested so far in the Dreamboard child sex exploitation and child pornography site case were sentenced by U.S. District Judge S. Maurice Hicks.
Christopher Blackford, 28, of Charleston, S.C., was sentenced to 265 months in prison with a lifetime of supervised release for participating in a child exploitation operation. According to the evidence presented at the guilty plea, Blackford joined Dreamboard Dec. 29, 2009, and placed 84 online bulletin board posts containing child pornography.William Davis, 39, of Bristol, N.H., was sentenced to 210 months in prison with a lifetime of supervised release for his part in the Dreamboard child exploitation operation. According to the evidence presented at his guilty plea, during his time on Dreamboard, Davis posted advertisements offering to distribute child pornography to other members of the board.
Blackford and Davis were charged in an indictment unsealed on Aug. 3, 2011. The charges were the result of Operation Delego, an investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard. The board was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection.A total of 72 individuals, including Blackford and Davis, were charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Nine of the 57 are in the process of being extradited to the United States. Forty-seven individuals have pleaded guilty, and one was convicted after trial. The 48 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging between five years to life in prison. Three defendants have received life sentences, including the one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who have participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.
“There is a lot of work to be done before most, if not all, online operations like this one can be stopped,” Finley stated. “It took the work of many agencies, both domestic and international, to find and bring these defendants to justice. I want to thank all of the prosecutors and law enforcement agencies who were involved from the beginning and those who have seen this case through until now. We hope to make more arrests in the case and bring to justice all of the individuals who perpetrate such vile schemes that endanger children.”
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 U.S. 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 as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE attaches offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.
The investigation was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers and foreign-national predators whose crimes make them deportable.ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
The following table lists all Dreamboard defendants, pleas, convictions and sentences:
Defendant
Guilty Plea
Sentencing
DateCharges To Which Defendant pleaded Guilty
Sentencing DetailsSteven Perez,
aka PataPata01/05/12
08/14/12-Conspiracy to Advertise the Distribution of Child
Pornography
235 Months in Prison/Lifetime Supervised ReleaseMatthew McKee,
aka fantom
aka fantomg
12/02/11
08/14/12
Robert Sprague,
aka Jailbird01/31/12
08/14/12-Engaging in a Child Exploitation Enterprise
LIFE in PrisonHenry Hand,
aka dfx02/15/12
08/14/12-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseRobert Cuff,
aka dd0040,
aka slapalot12/01/11
07/13/12-Engaging in a Child Exploitation Enterprise
LIFE in PrisonEdward Oedewaldt,
aka twelvish
aka Legend01/19/12
08/01/12-Engaging in a Child Exploitation Enterprise
-Possession of Child Pornography
38 Years in Prison/Lifetime Supervised ReleaseJerrold Wayne Wright,
aka TheShadow10/17/11
08/01/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Five Years Supervised ReleaseDavid Lindsay,
aka Slipnslide02/16/12
08/01/12-Engaging in a Child Exploitation Enterprise
262 Months in Prison/Lifetime Supervised ReleaseJason Simon,
aka Templar
aka Shuffle04/12/12
08/02/12-Conspiracy to Advertise the Distribution of Child
Pornography
30 Years in Prison/Five Years Supervised ReleaseStephen Fairbanks,
aka Zapper
aka JMagic04/12/12
08/02/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseTimothy Stone,
aka Kitsu04/12/12
08/02/12-Conspiracy to Distribute Child Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseScott Spiegel,
aka Zaxx
aka Zaxxter04/13/12
08/02/12-Conspiracy to Distribute Child Pornography
121 Months in Prison/Lifetime Supervised ReleaseScott Lewandowski,
aka Prjb
aka Koan04/13/12
08/02/12-Conspiracy to Distribute Child Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseDesmond Meredith,
aka Beast11/10/11
04/13/12-Conspiracy to Advertise the Distribution of Child
Pornography
15 Years in Prison/Lifetime Supervised ReleaseTimothy Gentry, aka Johnny_5_is_@alive
02/01/11
05/10/11-Engaging in a Child Exploitation Enterprise
25 Years in Prison/Lifetime Supervised ReleaseLarry Ridley,
aka Athf07/14/11
10/26/11-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseDaniel Deschenes,
aka Catman01/12/12
05/04/12-Engaging in a Child Exploitation Enterprise
260 Months in Prison/Lifetime Supervised ReleaseMichael Biggs,
aka tommyleejones02/01/11
05/31/12-Engaging in a Child Exploitation Enterprise
14 Years in Prison/Lifetime Supervised ReleaseMicheal Thompson,
aka SamSneed05/10/11
09/13/11-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseCharles Christian,
aka NLN03/31/11
07/14/11-Engaging in a Child Exploitation Enterprise
265 Months in Prison/Lifetime Supervised ReleaseMichael Childs,
aka Michy9903/09/11
06/22/11-Engaging in a Child Exploitation Enterprise
30 Years in Prison/Lifetime Supervised ReleaseWilliam Barton,
aka blackbart201009/13/11
01/05/12-Engaging in a Child Exploitation Enterprise
327 Months in Prison/Lifetime Supervised ReleaseChristopher James Luke,
aka Dank042006/29/11
10/02/12-Engaging in a Child Exploitation Enterprise
14 Years in Prison/Lifetime Supervised ReleaseStephen Clinton Kinney,
aka SocratesWasAGeek06/29/11
10/14/11-Engaging in a Child Exploitation Enterprise
293 Months in Prison/Lifetime Supervised ReleaseGary Schneider,
aka Mytink05/31/11
01/12/12-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseRichard Chandler,
aka almeda01/15/12
04/05/12-Engaging in a Child Exploitation Enterprise
35 Years in Prison/Lifetime Supervised ReleaseCharles Pyeatte,
aka Daddy-O05/31/11
09/13/11-Engaging in a Child Exploitation Enterprise
327 Months in Prison/Lifetime Supervised ReleaseRush Frank Blankenship,
aka 14yrsmax09/01/11
12/01/11-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseDavid Michael Whitten,
aka davie06/29/11
10/05/11-Engaging in a Child Exploitation Enterprise
35 Years in Prison/Lifetime Supervised ReleaseJamil Lamar Mosley,
aka clubkidsforever07/12/11
01/17/12-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseAnthony Paul Sowders,
aka ChanChadwick07/11/11
01/05/12-Engaging in a Child Exploitation Enterprise
27 Years in Prison/Lifetime Supervised ReleaseBenet Schmidt,
aka Brazthumper12/01/11
04/05/12-Engaging in a Child Exploitation Enterprise
37 Years in Prison/Lifetime Supervised ReleaseJeffrey J. Rodriguez,
aka HowardHughes10/27/11
01/17/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseJonathan Mayer,
aka unclebuck8111/10/11
07/13/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseRandall Dech,
aka Rudy10/17/11
03/23/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseShane Micah Turner,
aka korneech0803/23/12
07/13/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseJoseph Matthew Wheeler,
aka Wildman10/27/11
04/12/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseEric Myszke-Francis,
aka Samsackk10/04/11
01/12/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseIvan E. Cerda,
aka Mokoloko6901/05/12
04/05/12-Conspiracy to Advertise the Distribution of Child
Pornography
262 Months in Prison/Lifetime Supervised ReleaseMilton Perry,
aka Camy
aka Blondie
aka Lorwyn12/01/11
04/12/12-Conspiracy to Advertise the Distribution of Child
Pornography
20 Years in Prison/Lifetime Supervised ReleaseDavid Ettlinger,
aka eel08/15/12
01/08/13-Engaging in a Child Exploitation Enterprise
45 Years in Prison/Lifetime Supervised ReleasePaul Fry,
aka Lofty01/08/13
5/9/13-Engaging in a Child Exploitation Enterprise
20 Years in Prison/lifetime Supervised ReleaseKevin Casey,
aka milkduds, urinalcake01/16/13
5/9/13-Conspiracy to Distribute Child Pornography
5 Years in Prison/5 years Supervised ReleaseTodd Stumpf,
aka Winkee03/02/12
06/11/13-Engaging in a Child Exploitation Enterprise
20 Years in Prison/5 years Supervised ReleaseWilliam Jewell,
aka VladimirPutin09/06/12
06/11/13-Conspiracy to Distribute Child Pornography
20 Years in Prison/lifetime Supervised ReleaseChristopher Blackford
aka biggniche09004/11/13
07/29/13-Engaging in a Child Exploitation Enterprise
265 Months in Prison/Lifetime Supervised ReleaseWilliam Davis,
aka checkmate, timesink04/11/13
07/29/13-Conspiracy to Advertise Child Pornography
210 Months in Prison/Lifetime Supervised ReleaseDefendant
Trial Conviction
Sentencing
DateGuilty on the Following Charges
John Wyss,
aka Bones05/17/12
09/06/12-Engaging in a Child Exploitation Enterprise
-Conspiracy to Advertise Child Pornography
-Conspiracy to Distribute Child Pornography
LIFE in PrisonFederal Courts Authorize Service of John Doe Summonses Seeking Identities of Persons Using Payment Cards in NorwayRead the Press Release
The Justice Department announced that federal courts in Minnesota, Texas, Pennsylvania, Oklahoma, Virginia and California have entered orders over the past week authorizing the Internal Revenue Service (IRS) to serve John Doe summonses on certain U.S. banks and financial institutions, seeking information about persons who have used specific credit or debit cards in Norway. The summonses are referred to as “John Doe” summonses because the IRS does not know the identity of the person being investigated. While orders have been entered in seven of these cases, the United States’ petitions in three additional cases remain pending.
The lawsuits, filed on July 19 and 22, 2013, in nine federal districts, were initiated at the request of the Norwegian government under a treaty between Norway and the United States. The treaty allows the two countries to cooperate in exchanging information that is helpful in enforcing each country’s tax laws. The United States is seeking the identities of persons who have used specific debit or credit cards issued by certain U.S. financial institutions so that Norway can determine if those persons have complied with Norwegian tax laws. A total of 18 U.S. financial institutions are identified in the government’s court filings. The filings do not allege that these financial institutions have violated any U.S. laws with respect to these accounts.
As alleged in court papers filed by the Justice Department, Norwegian authorities have reason to believe, based upon the use of payment cards in Norway that were issued by U.S. banks, that unidentified card holders may have failed to report financial account information or income on their Norwegian tax returns. Court papers cite examples where individuals using non-Norwegian payment cards have claimed to be tax residents of other countries but were found to have resided in Norway for sufficient time to subject them to taxes in Norway.
“The Department of Justice and the IRS are committed to working with our treaty partners to fight tax evasion wherever it occurs,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “All taxpayers should know that our efforts in this area are global, coordinated and will continue.”
“These summonses reflect our continuing efforts to work with our international partners on offshore tax evasion,” said Douglas O’Donnell, IRS Assistant Deputy Commissioner, Large Business & International (LB&I). “By using effectively our existing network of bilateral agreements, countries can help one another put an end to the global practice of evading taxation by hiding assets abroad.”
The lawsuits are a part of ongoing international efforts to stop persons from using foreign financial accounts as a way to evade taxes. Courts have previously approved John Doe summonses allowing the IRS to identify individuals using offshore accounts to evade their U. S tax obligations. In the present suits, the Justice Department is seeking the identities of persons who may be attempting to hide their Norwegian taxable income in U.S. financial accounts.
Below is a list of the decided and pending cases. Copies of the pleadings will be made available on the Tax Division’s website :
- Petitions Granted:
In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-01097 (C.D. Calif.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00056 (D. Minn.)
In the Matter of the Tax Liabilities of John Does , Case No. 13-mc-00024 (E.D. Va.)
In the Matter of the Tax Liabilities of John Does , Case No. 13-mc-00018 (N.D. Okla.)
In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-01066 (W.D. Pa.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00657 (W.D. Tex.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00232 (W.D. Tex.)
- Pending Petitions:
In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-03393 (N.D. Calif.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00301 (S.D. Miss.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00038 (D. N.H.)
More information about the Justice Department’s Tax Division is available at http://www.justice.gov/tax/ .
Related Materials:
In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding East West Bank Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses; Memorandum in Support; Declaration of Cheryl Kiger; Declaration of Michael Danilack; (Proposed) Order (PDF)
Order (PDF)
In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding Prairie Sun Bank Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Order (PDF)
Summons (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding Bokf, N.A. Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Order (PDF)
Summons (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding PNC Bank N.A. Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Order (PDF)
Summons (RBS Citizens, N.A.) (PDF)
Summons (PNC Bank, N.A.) (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding USAA Federal Savings Bank Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding American Express Company Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding Capital One Bank, N.A. Payment Card, etc.
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)
Education Consultant Sentenced for Tax CrimesRead the Press Release
PHILADELPHIA - Cheryl Mobley, 55, of Philadelphia, was sentenced today to three years probation and four months of home confinement for failing to timely file a federal income tax return for 2005 and for failing to file a federal income tax return for 2006. Mobley earned more than $260,000 in income during those years as a consultant for the Pennsylvania Higher Education Assistance Agency (PHEAA) and the Educational Advancement Alliance (EAA). IRS records show that Mobley filed her 2005 return on June 21, 2010, after she was under investigation by federal agents, but did not pay the balance of $23,718 in taxes due for 2005. She pleaded nolo contendere to that charge on March 20, 2012. Mobley also never filed a federal income tax return for year 2006 or paid taxes for that year. She pleaded guilty to that charge. In total, Mobley failed to report gross income totaling approximately $264,755 for 2005 and 2006, on which there is a total tax due of approximately $52,713.
In addition to the probationary term, U.S. District Court Judge Joel H. Slomsky ordered restitution to the IRS of $61,491.00, a $3000.00 fine, and a $50 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney Paul Gray.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Doctor Sentenced to 57 Months in Prison for Oxycodone Distribution ConspiracyRead the Press Release
Several Co-Defendants Sentenced Last Week
TRENTON, N.J. – A doctor who admitted writing illegal prescriptions for oxycodone was sentenced today to 57 months in prison for participating in a conspiracy to distribute the medication illegally, U.S. Attorney Paul J. Fishman announced.
Jacqueline Lopresti, 52, of Fair Haven, N.J., previously pleaded guilty before Judge Freda L. Wolfson in Trenton federal court to an information charging her with one count of conspiracy to distribute oxycodone.Lopresti was the second doctor convicted in connection with this large oxycodone distribution conspiracy. Last week, Dr. Hassan Lahham was sentenced to 108 months in prison by Judge Wolfson in connection with his involvement in the same scheme. Also last week, two co-defendants, Christopher Erwin, 49, of Barnegat, N.J., and Stephen Sampson, 52, of Manahawkin, N.J., were sentenced by Wolfson to 188 months and 96 months in prison, respectively, for their roles in the conspiracy. In total, 28 people have been charged and convicted in this oxycodone distribution conspiracy.
According to documents filed in this case and statements made in court:
Oxycodone is the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet. It is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.In 2009, Lopresti issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various pharmacies located in and around Monmouth, Ocean, and Atlantic counties, N.J., and redistributed by others.
Erwin and Sampson were the leaders of a large-scale oxycodone distribution ring which used doctors, specifically Lopresti and Lahham, to collect prescriptions for oxycodone for which there is no medical necessity. Erwin and Sampson visited these physicians themselves and paid the physicians for medically unnecessary oxycodone prescriptions in their names and in the names of other people. Erwin and Sampson acquired the oxycodone for further distribution.
Erwin and Sampson transported various co-defendants, including: including Christopher Keosseian, 48, of Belmar; Joseph Keosseian, 46, of Belmar; James Baker, 51, of Forked River; Alex Bushman, 47, of Manahawkin; Heather Dockery, 28, of Barnegat; Wendy Galati, 45, of Toms River; Edward Gural, 37, of Barnegat; Donald Johnson, 32, of Barnegat; Bryan Lewicki, 36, of Barnegat; Gregory Mann, 50, of Surf City; Carter Nies, 36, of Barnegat; Jonathan Puggi, 35, of Little Egg Harbor; Henry Shubert, 43, of Waretown; Kyle Skora, 33, of Toms River; Crescenzo Terranova, 51, of Little Egg Harbor; and Robert Walton, III, 55, of Manahawkin; and others in multiple vehicles to various physicians and to the pharmacies afterwards. Erwin and Sampson trusted some of the defendants and paid some of the defendants to recruit and bring customers to the doctors as well as directed some of the defendants when to transport customers to the physicians and the pharmacies and which customers to transport.
In addition to the prison term, Judge Wolfson sentenced Lopresti to three years of supervised release, ordered to her to forfeit $465,000, and fined her $5,000.
U.S. Attorney Fishman credited U.S. Attorney Fishman credited the Drug Enforcement Administration's New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, along with the special agents, diversion investigators, task force officers, detectives and intelligence analysts of the Atlantic City Resident Office, Camden Resident Office Diversion Group, Seaside Heights Police Department, Barnegat Police Department, Ship Bottom Police Department, N.J. and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton.
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Defense counsel:
Lopresti: Joseph Hayden Esq., Roseland, N.J.
Erwin: James R. Murphy Esq., Princeton, N.J.
Sampson: Richard Sparaco Esq., Cherry Hill, N.J.District Man Found Guilty of First-Degree Felony Murder in 2010 Shooting in Southeast Washington-OnStar Technology Helped Police Locate Victim’s Car and Evidence-Read the Press Release
WASHINGTON - Marlon Williams, 34, Washington, D.C., has been found guilty by a jury of first-degree felony murder in the 2010 slaying of a man in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Williams was found guilty on July 26, 2013, following a trial in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for Sept. 27, 2013.
According to the evidence at trial, at about 4:30 a.m. on Sept. 13, 2010, the victim, Min Soo Kang, was found on the curb in the 3500 block of Croffut Place SE, with multiple gunshot wounds. Detectives found his wallet and contacted his next of kin, who advised them that Mr. Kang, 37, owned a 2010 Cadillac Escalade equipped with OnStar GPS technology. Detectives requested that OnStar assist in tracking the vehicle. At about 5:30 p.m. on that same date, OnStar located the Escalade in the 5200 block of Ames Street NE, and engaged the remote ignition block, which prevented the ignition from re-starting the vehicle once it had been turned off.
Coincidentally, a short time later, a neighborhood resident returned home to find the disabled Escalade stopped in front of her residence. At about 7 p.m., that woman dialed 911 and alerted the Metropolitan Police Department (MPD) about the suspicious behavior of a man who, upon hearing sirens approaching in the area, exited the vehicle, quickly slammed the hood, threw something into her yard, and walked away. However, when those sirens went elsewhere, the same man returned, retrieved what he had thrown into her yard, and re-entered the vehicle, making further attempts to get it started.
Once police located Mr. Kang’s vehicle, they had it towed to the Mobile Crime Lab. Technicians lifted a palm print from the hood of the car and several fingerprints from the interior handles of the driver’s door. In addition, a search of the passenger compartment yielded a receipt for the purchase of two cartons of Newport cigarettes by Mr. Kang, in Virginia, less than three hours prior to his body being found. Three unopened packs of Newport cigarettes with Virginia tax stamps remained in the vehicle. The technicians, upon noticing apparent bullet holes in the driver’s seat, recovered three bullets from inside that seat.
Earlier, during the day of Sept.13, 2010, upon performing an autopsy on Mr. Kang, a medical examiner identified three gunshot wounds to the chest with exit wounds from his back. In addition, Mr. Kang suffered a gunshot wound to the face, which exited the left ear, another gunshot wound to the left index finger, exiting the palm of Mr. Kang’s hand, and one gunshot wound perforating his right forearm.
Detectives used the palm-print, lifted from the hood of the Escalade, and identified by the fingerprint examiner, to match that of the defendant, and the description given by the 911 caller, which also matched that of the defendant, to obtain a warrant for a search of Williams’s home. There they found the murder weapon beneath his bed. In that same bedroom, police recovered one empty pack of Newport cigarettes bearing a Virginia tax stamp.
In announcing this verdict, U.S. Attorney Machen praised the work of the MPD detectives, officers, crime scene technicians, and forensic specialists who worked on the case. He also expressed appreciation for the assistance of OnStar. In addition, he praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews Yette, Litigation Technology Specialists Kimberly Smith, Leif Hickling, and Joshua Ellen, and Interns Arielle Barnett and Malini Malhotra.
Finally, he commended the efforts of Assistant U.S. Attorney Gary Wheeler, who secured the indictment in the case and handled the prosecution at trial.
13-264Department of Justice Files Lawsuit Against Vero Beach, Fla. Doctor and Medical Practice for Retaliating Against Deaf CoupleRead the Press Release
The Department of Justice announced today that it has filed a lawsuit against Dr. Hal Brown and Primary Care of the Treasure Coast of Vero Beach, Fla. (PCTC), alleging that the doctor and the medical practice violated the Americans with Disabilities Act by discriminating against Susan and James Liese, who are deaf. The complaint alleges that the doctor and the practice violated the ADA by retaliating against Mr. and Mrs. Liese because they engaged in activities protected under the act. The suit was filed in the U.S. District Court for the Southern District of Florida in Ft. Pierce.
According to the Justice Department’s complaint, the doctor and medical practice terminated Mr. and Mrs. Liese as patients because the couple pursued ADA claims against a hospital for not providing effective communication during an emergency surgery. The hospital is located next door to and affiliated with PCTC. The complaint alleges that the Lieses threatened the hospital with an ADA suit based on failure to provide sign language interpreter services, and upon learning of the lawsuit, PCTC and Dr. Brown, who was the Liese’s primary doctor at PCTC, immediately terminated the Lieses as patients.
“The Department of Justice is committed to enforcing the provisions of the ADA that protect an individual from retaliation when he or she opposes disability discrimination and prohibit interference with an individual in the exercise of rights granted by the ADA,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “A person cannot be terminated as a patient because he or she asserts the right to effective communication at a hospital.”
The enforcement of the ADA is a top priority of the Justice Department’s Civil Rights Division. The ADA prohibits retaliation against an individual because they oppose an act that is unlawful under the ADA and because they made a charge, testified, assisted or participated in any manner in an investigation, proceeding or hearing under the ADA. The ADA also makes it unlawful to coerce, intimidate, threaten or interfere with any individual exercising their rights protected by the ADA. The department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability. Visit www.justice.gov/crt and www.ada.gov to learn more about the ADA and other laws enforced by the Civil Rights Division.
Dallas Man, Who Pleaded Guilty to Role in Cocaine Distribution Conspiracy Linked to Los Zetas Cartel, Is Sentenced to 84 Months in Federal PrisonRead the Press Release
Defendant Also Ordered to Forfeit Vehicle, More Than $200,000 Cash and JewelryDALLAS — Omar Guerrero Acosta, aka “Pilas,” 30, of Dallas, was sentenced late last week by U.S. District Judge Jorge A. Solis to 84 months in federal prison, following his guilty plea in February 2013 to one count of conspiracy to distribute five kilograms or more of cocaine. He was also ordered to forfeit a vehicle, approximately $209,493 in cash and jewelry that had been seized. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Acosta is one of 13 defendants indicted in September 2011 for running a cocaine distribution conspiracy in the Dallas-Fort Worth area that was linked to the Los Zetas cartel. Acosta is the tenth and last defendant convicted in the case to be sentenced; two defendants remain fugitives and charges against another were dismissed. Convicted defendants and their sentences are:
Cesar Alonzo De La Rosa Jordan, aka “Gordo,” 30, 78 months
Rosendo Chappa, Jr., aka “Borado,” 39, 87 months
Joel Alejandro Rodriguez, aka “Joe,” 51, 98 months
Arturo Picaso, aka “Flaco,” 32, 152 months
Ricardo Morales, Sr., 52, 70 months
Ricardo Morales, Jr., aka “Rica,” 27, 3 years’ probation
Jose Luis Rodriguez, aka “Mas,” 41, 37 months
William Savala, aka “Will,” 39, 51 months
Reynaldo Facundo, 32, 63 monthsAcosta admitted that beginning in January 2011, cocaine supply sources in Mexico began importing multi-kilogram shipments of cocaine into the U.S. through border checkpoints near Laredo. Acosta admitted that couriers hired by the drug suppliers in Mexico delivered the cocaine to him and once the drugs arrived in Dallas, he and others maintained care, custody and control of the drugs at “stash” locations throughout the Dallas area. The total amount of cocaine that was reasonable foreseeable to him during the time of the conspiracy was more than 100 kilograms.
In July 2011, for example, Acosta’s supply source delivered approximately 119 kilograms of cocaine to him and, subsequently, multi-kilogram quantities were distributed to multiple customers, including co-defendant Rosendo Chappa, aka “”Borado.” Acosta admitted that on August 19, 2011, he and Chappa made arrangements for Chappa to deliver cash to Acosta in payment for seven kilograms of cocaine that Acosta had previously delivered to Chappa. On August 19, 2011, Acosta met Chappa at a department store parking garage in Dallas and collected approximately $159,000 in drug proceeds. Both Acosta and Chappa were arrested. After Acosta was arrested, law enforcement searched an apartment on Noel Road that he used, and they seized approximately six kilograms of cocaine and an additional $48,000 in drug proceeds that belonged to Acosta.
The FBI began its investigation into this large-scale drug trafficking organization, the Morales-Picaso Drug Trafficking Operation (MPDTO), as a result of intelligence gathered from the “Operation Greedy Grove” investigation and prosecution which targeted a large-scale cocaine, crack cocaine and marijuana distribution organization known for its violence. Operation Greedy Grove culminated in September 2010 with the arrest of 28 individuals on federal and state drug charges. Law enforcement officers seized approximately three kilograms of cocaine, 14 firearms and $210,000 in U.S. Currency and assets. The 16 defendants charged federally in that case have all pleaded guilty to their respective roles in the conspiracy have been sentenced, including defendant Gary Montgomery, who shot a Bureau of Alcohol, Tobacco, Firearms and Explosives agent during his arrest. Montgomery was sentenced to 348 months in federal prison.
The investigation revealed that the MPDTO was involved in the illegal importation of approximately 100 kilos per month from Mexico. Once the cocaine was smuggled across the border, the loads were distributed to members of the MPDTO in exchange for large sums of cash, which were then vacuum-sealed in bags, concealed in vehicles and transported back to Mexico. During the course of this investigation, law enforcement seized more than 36 kilograms of cocaine, seven firearms, 14 vehicles and nearly $300,000 cash, which was forfeited to the U.S.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Rick Calvert was in charge of the prosecutions and Assistant U.S. Attorney John de la Garza handled the forfeitures.Customs and Border Protection Supervisor Pleads Guilty to Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Steven Metz, 41, of Hamburg, New York, pleaded guilty before U.S. District Court Judge William M. Skretny, to Possession of Child Pornography. The defendant is a former supervisor with U.S. Customs and Border Protection. The charge carries a maximum possible sentence of ten years imprisonment, a fine of $250,000 and a term of supervised release of at least five years to life.
Assistant U.S. Attorney Marie P. Grisanti stated that on or about October 25, 2012, Steven Metz was found to possess images and videos of child pornography on his computer, at his residence in Hamburg, New York. The defendant possessed over 600 images of child pornography. Some of these files contained sadistic or masochistic conduct or other depictions of violence, and some of the children shown in the images and videos were prepubescent and under the age of 12 years. The defendant emailed child pornography to others through the Internet.
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 plea was the culmination of an investigation on the part of Special Agents of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Special Agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in charge Gregory Null, and officers of the Hamburg Police Department under the direction of Chief Michael K. Williams.
Sentencing is scheduled for November 12, 2013 at 9:00 a.m. before Judge Skretny.Corning Woman Sentenced for Lying to Social Security AdministrationRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Phyllis Stevens, 51, of Corning, N.Y., who was convicted of making and submitting a false document to the Social Security Administration, was sentenced to three years of probation and ordered to pay $17,468 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Stevens collected disability benefits from the Social Security Administration while she was gainfully employed and ineligible to receive such benefits. The defendant attempted to conceal her employment from the Social Security Administration by submitting a false document stating that she was not working. As a result, Stevens collected $17,468 in disability benefits that she was not entitled to receive.
The sentencing is the culmination of an investigation on the part of Special Agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan.Columbia County Man Indicted on Federal Charge of Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida - Acting United States Attorney A. Lee Bentley, III announced today that John George Sessine (53, Lake City) has been indicted by a federal grand jury in Jacksonville on child pornography charges. Sessine is charged with three counts of receiving child pornography. On each of the receipt counts, he faces a mandatory minimum of not less than 5 years, up to 20 years in prison. Sessine was taken into federal custody on July 29, 2013 and is currently in the custody of the U.S. Marshals Service. His arraignment and detention hearing is scheduled for August 1, 2013 at 2:30 p.m. before U.S. Magistrate Judge Joel B. Toomey at the U.S. Courthouse in Jacksonville.
According to the indictment, Sessine did knowingly receive visual depictions of a minor engaged in sexually explicit conduct over the Internet, on three separate occasions. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Cobb County Bus Driver Sentenced for Producing Child PornographyRead the Press Release
Defendant’s Involvement in Church Youth Group Provided Access to Victim
ATLANTA - Stanley Keith Johnson has been sentenced for producing, receiving and possessing child pornography.
“As a school bus driver and church youth group volunteer, this defendant had access to some of the most innocent and vulnerable members of society,” United States Attorney Sally Quillian Yates said. “He downloaded child pornography and took explicit photographs of a fatherless young boy he was trusted to mentor. Children are not sexual objects, and persons who see them that way can expect to be caught and go to prison.”
“The U.S. Postal Inspection Service is pleased with today’s sentencing. As long as child predators use the U.S. mail to exploit children, Postal Inspectors will continue to target those responsible. The use of the U.S. mail to victimize children will not be tolerated, plain and simple,” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
“Individuals such as Mr. Johnson, who gain the confidence of children through a position of trust in order to victimize children, will be thoroughly investigated and held accountable,” said Vernon Keenan, Director of the Georgia Bureau of Investigation.
According to United States Attorney Yates, the charges and other information presented in court: From November 2010 to April 2011, the defendant placed orders with a foreign company for approximately 180 DVDs containing videos of nude boys between the ages of 8 and 14. He received those videos through the United States mail. A federal search warrant executed at his house in Mableton, Ga., in December 2012, revealed that he not only had received the videos but that he possessed child pornography on his home computer. A forensics examination of the computer showed that he had produced images of child pornography going back to May 2004. The victim was an 8-year-old child whom the defendant had befriended at his church, where he volunteered to work with the youth group and especially with young boys with no fathers in their lives.
After the search warrant was executed, Cobb County Public Schools fired the defendant from his position as a bus driver and bus driver supervisor. The defendant had been given a work computer to use for his supervisory duties. After he was fired, Cobb County Public Schools looked at the computer and saw that the defendant had downloaded images of child pornography on it. He also used his work computer to check on the delivery status of the child pornography videos that he had ordered.
Johnson, 57, of Mableton, Ga., was sentenced to 15 years in prison to be followed by a lifetime of supervised release. Johnson was convicted of these charges on April 26, 2013, after he pleaded guilty.
This case was investigated by the United States Postal Inspection Service with assistance from the Georgia Bureau of Investigation and the Cobb County Police Department.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Cedar Rapids Drug Felon Sentenced to Almost Twenty-Two Years' Imprisonment on Convictions for Unlawful Possession of Ammunition and Possession of Crack Cocaine with Intent to DistributeRead the Press Release
A Cedar Rapids man with two prior drug trafficking convictions under different names was sentenced today to almost twenty-two years in federal prison.
Gregory Givens, age 29, from Cedar Rapids, Iowa, received the prison term after a May 21, 2013, jury verdict finding him guilty of one count of possession of ammunition by a felon and one count of possession of crack cocaine with the intent to distribute.
The evidence at trial showed that on October 7, 2010, Givens was stopped by a Cedar Rapids police officer for a traffic violation. When conducting the traffic stop, officers smelled, then recovered a large quantity of marijuana and a box of 9mm ammunition from inside the car. Givens provided the police officer a false name and identification and lied about his criminal history. Later investigation showed Givens had twice been convicted in 2002 in Cook County, Illinois, under two different names, of felony possession of cocaine with intent to deliver.
The evidence also showed that on December 22, 2010, Cedar Rapids police officers executed a search warrant at an apartment where Givens was staying. As officers entered a bedroom, they found Givens with his hand in between the mattress and the headboard of the only bed in the room. During the search of the bedroom, officers found a large quantity of marijuana inside the mattress where Givens had his hand and crack cocaine on the floor where Givens was standing. Givens again provided a different false name to officers when he was arrested. Givens’ identity on all of his convictions and arrests was confirmed through fingerprint analysis.
Givens previously pled guilty to possession of marijuana with intent to deliver in Iowa District Court for the marijuana found on October 7 and December 22, 2010.
During his trial, Givens refused to acknowledge the jurisdiction of the United States District Court, refused to participate in his trial, and refused to be in the courtroom. At sentencing, Givens was removed from the courtroom for being disruptive.
Givens was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Givens was sentenced to 262 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Givens is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, and Firearms and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-55.
Butler County Woman Sentenced to Prison, Ordered to Pay Restitution for Embezzling from Health Care ProviderRead the Press Release
PITTSBURGH, Pa. - A Butler County resident has been sentenced to 15 months incarceration, and ordered to pay restitution in the amount of $66,443.50, in federal court on her conviction of embezzlement in connection with health care, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Jennine M. Prince, 42, of Valencia, Pa.
According to the information presented to the court, Prince committed this offense while she was on pretrial release in another embezzlement case against her. That case involved her embezzling approximately $500,000 from Ironworkers Local 3. She was hired by Office Based Anesthesia Solutions, Inc. (OBAS) in Cranberry, Pa., in May 2010 and worked there until Sept. 29, 2011, when her thefts were discovered. During her employment at OBAS, she was responsible for making bank deposits of cash of co-payments received from patients. She pocketed some of the cash every day that she worked.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Jennine M. Prince.
Brentwood Woman Sentenced to 5 Years Probation for Minor Role in Oxycodone RingRead the Press Release
PITTSBURGH, Pa. - A resident of Brentwood, Pa., has been sentenced in federal court to five years probation, which will include one year of home detention and 150 hours of community service, on her conviction of conspiracy to distribute controlled substances and to acquire controlled substances by fraud, forgery, deception and subterfuge, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Brittany Lee Preston, 23.
According to information presented to the court, Preston conspired to obtain oxycodone by fraud and forgery and to then distribute the oxycodone. She had a minor role in the offense compared to the role of her then boyfriend, Jeffrey Mackewich, who was the leader of the oxycodone ring.
Prior to imposing sentence, Judge Hornak stated that the support of her current employer and the fact that she has overcome her addiction to oxycodone were important facts in his decision.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Preston.
Beth Israel Deaconess Medical Center to Pay $5.3 Million to Resolve Improper Medicare ClaimsRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health & Human Services, Office of Inspector General announced today that Beth Israel Deaconess Medical Center (BIDMC), a teaching hospital located in Boston, has agreed to pay the United States $5.315 million to settle allegations that it violated the False Claims Act by billing Medicare for inpatient admissions that should have been billed as lower reimbursed outpatient or observation services. The improper claims were submitted from June 1, 2004, through March 31, 2008.
The settlement resolves government allegations that BIDMC inappropriately submitted claims to Medicare for one-day stay inpatient admissions for patients with congestive heart failure, chest pain, and certain digestive and nutritional disorders. These claims should have been billed as observation services as the patients were briefly admitted for the limited purpose of observation and discharged the next day. In addition, the settlement resolves allegations that BIDMC submitted claims to Medicare for less-than-one day (zero day) stays that should have been billed as outpatient or observation services. Medicare reimburses hospitals, like BIDMC, at significantly higher amounts for inpatient admissions compared to outpatient or observation services. BIDMC has not admitted liability or wrongdoing in connection with the settlement.
“Today’s settlement furthers two critical purposes: ensuring that precious federal health care dollars are spent appropriately and in accordance with the law, and emphasizing that patient needs, not the bottom line, must be the basis for treatment decisions,” said U.S. Attorney Ortiz.
"When hospitals unnecessarily admit Medicare patients for short inpatient stays when the appropriate treatment would be outpatient or observation care, they improperly boost hospital profits at significant expense to taxpayers and patients," said HHS-OIG's Waddell. "We are committed to uprooting such schemes to eliminate waste in federal health care programs."
This settlement illustrates the government's continued emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.This matter was investigated by Investigator Kristen Israelson of the Department of Health & Human Services, Office of Inspector General, Boston Regional Office of Investigations. It was handled by Assistant U.S. Attorney Jennifer Cardello and Special Assistant U.S. Attorney John O’Brien, both from Ortiz’s Affirmative Civil Enforcement Unit, and Senior Trial Counsel Marie Bonkowski of the Commercial Litigation Branch of the Justice Department's Civil Division.
Bao Pham, D.O., and AccMed Healthcare Systems, LLC, d/b/a Florida Spine Care and Pain CenterRead the Press Release
JACKSONVILLE – The United States Attorney’s Office for the Middle District of Florida announced today that Bao Pham, D.O., and AccMed Healthcare Systems, LLC, d/b/a Florida Spine Care and Pain Center, have paid $448,794 to resolve allegations that they violated the False Claims Act by submitting false claims for medical services to the Medicare and federal Office of Workers Compensation (OWCP) programs. Pham is an osteopathic physician who focuses his practice on pain management and who, through Florida Spine Care and Pain Center, provides treatment to Medicare recipients for various conditions and to federal employees who are suffering various types of on-the-job injuries. Florida Spine Care and Pain Center is a Florida corporation located in Clay and Duval Counties in Florida.
Medicare benefits are available to eligible patients who are disabled or are aged 65 and older and who are enrolled in Part B of the Medicare Program to obtain benefits from participating healthcare providers. The federal OWCP benefits are available to federal civilian workers who are injured at work or who have acquired an occupational disease.
Today’s settlement resolves allegations that, between January 1, 2004, and December 31, 2008, Pham and Florida Spine Care and Pain Center submitted false Medicare and OWCP claims for non-reimbursable procedures and services by upcoding and unbundling medical services provided to beneficiaries of these two federal programs. The government alleged that Pham and Florida Spine Care and Pain Center upcoded a non-reimbursable procedure, performed in-office, as a surgical procedure and further routinely unbundled claims for certain pain management services in order to obtain reimbursement that would be higher than if properly submitted.
“This settlement represents another notable achievement in our battle against health care fraud in this district,” stated A. Lee Bentley, III, Acting United States Attorney for the Middle District of Florida. “Civil health care fraud enforcement is, and will continue to be, one of our top priorities.”
“Billing Medicare for one procedure but actually providing another, much cheaper procedure – as Pham allegedly did – is plain and simple fraud,” said Christopher B. Dennis, Special Agent in Charge, Office of Inspector General (OIG), Department of Health and Human Services, Miami region. “When providers pad their pockets at Medicare’s expense, they can expect the OIG to investigate and hold them responsible.”
“This settlement demonstrates the OIG’s commitment to investigate those who defraud the U.S. Department of Labor’s Federal Employees’ Compensation Program by billing for services that were not rendered. We will continue to work with our law enforcement partners to investigate these types of schemes,” said Richard Walker, the Special Agent-in-Charge of the Atlanta Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
These allegations arose as a result of information received from a fraud investigator at a major health insurance carrier, which was simultaneously conducting an investigation into Dr. Pham’s billing practices.
This matter was handled by the U.S. Attorney’s Office for the Middle District of Florida, the Office of the Inspector General for the Department of Health and Human Services, the Office of the Inspector General for the Department of Labor and the Office of Inspector General for the United States Postal Service.
This matter was settled prior to filing suit by the United States of America. The claims settled by this agreement are allegations only; there has been no determination of liability.Auto Mechanic Who Sold Prescription Pain Pills from A Huntington Shop Sentenced to Nearly 6 Years in PrisonRead the Press Release
Vernon Browning funded and organized more than two dozen trips to Georgia to get painkillers to sell
HUNTINGTON, W.Va. – An automotive shop technician who led a scheme to obtain prescription painkiller pills from Atlanta and later had them brought back to Huntington to sell was sentenced today to five years and ten months in federal prison, announced U.S. Attorney Booth Goodwin. Vernon Browning, 45, of South Point, OH, previously pleaded guilty in April to distribution of oxycodone. Browning began funding and organizing dozens of trips to Atlanta to obtain oxycodone and oxymorphone pills in 2008.
The pills were later brought back to the Little Garage on the Corner automotive shop in Huntington where Browning and his associates stored and illegally sold the pills.
U.S. Attorney Booth Goodwin said, “Mr. Browning evidently wasn’t just fixing cars; he was fueling an illegal pill trafficking enterprise.” Goodwin continued, “Fighting the pill epidemic has been my office’s leading priority. Pill dealers will be caught and they will be prosecuted.”
In March 2012, Browning sold 18 30-milligram oxymorphone pills to a confidential informant working for the Huntington Drug and Violent Crime Task Force in exchange for $990. The illegal pill transaction took place at the garage.
During the scheme, Browning rented vehicles for the trips to Atlanta and helped associates obtain driver’s licenses in an effort to get legitimate prescriptions from Georgia doctors. Also, between January 2012 and July 2012, Browning rented hotel rooms on 32 different occasions and typically paid for the room rentals in cash.
On February 24, 2012, law enforcement agents conducted a controlled purchase of two oxymorphone pills from Browning. The transaction took place at Browning’s South Point residence. On March 3, 2013, Browning rented a vehicle and traveled to Georgia to obtain pain pills. After obtaining the pills, Browning shipped the 240 30-milligram oxycodone pills from Georgia to his South Point residence. The shipment of pills was intercepted by police.
The Huntington Violent Crime and Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
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.
Albanian Convicted for Resisting Deportation OrdersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Bledar Bujilici, 36, of Albania, was found guilty Friday by a federal jury for impeding or hampering his deportation. U.S. District Judge Dee D. Drell presided over the trial.
Bujilici’s trial started last Thursday and ended Friday with the jury returning the guilty verdict after deliberating for 32 minutes. Witness testimony and documents admitted at trial revealed that U.S. Immigration Enforcement Agents (IEA) brought the defendant to the Alexandria International Airport on March 1, 2012 and attempted to put him on a commercial flight. After being removed from a van, the defendant got down on the ground and would not get up. He was returned to federal prison. The defendant also refused deportation on Nov. 21, 2011 at Logan International Airport in Boston, Mass., before being transferred to a prison in Louisiana. He has been in federal custody since February 2008 when he was convicted of second degree assault.
Bujilici faces up to four years in prison, a $250,000 fine, and one year of supervised release for resisting deportation. Sentencing is set for Oct. 29, 2013.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Earl M. Campbell and Special Assistant U.S. Attorney Robert J. France are prosecuting the case."Chardhi Kala: Remembering and Honoring the Victims of Violence at the Sikh Gurdwara in Oak Creek"Read the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special observance will be held on Friday, August 2, 2013 from 1:30 p.m. to 3:00 pm in remembrance and honor of the hate crimes victims of violence at the Sikh Gurdwara in Oak Creek. This special community gathering will be held in the Ceremonial Courtroom (Room 390) of the Historic Federal Courthouse, located at 517 East Wisconsin Avenue in Milwaukee.
In addition to remarks by United States Attorney Santelle, leadership representatives of the Sikh Gurdwaras in Oak Creek and Brookfield will offer reflections on the events of early August of 2012, and representatives of the families of those martyred and injured in the violence will be specially recognized and participate in the program. The Honorable Stephen Scaffidi, Mayor of the City of Oak Creek, and Ms. Patricia Ferrick, Acting Special Agent in Charge of the Federal Bureau of Investigation, will also offer remarks about the significance of the violence and the perspectives of the community one year later.
The memorial observance will include the performance of special commemorative music performed by children and adult members of the Oak Creek Gurdwara. Mr. Thomas Heinen, the Executive Director of the Interfaith Conference of Greater Milwaukee, will also be offering a reflection on behalf of the diverse faith community in Wisconsin and throughout the nation.
The program will be followed by an informal community gathering in Room 398 of the Historic Federal Courthouse, during which participants and attendees will have an opportunity to engage in informal discussion and share thoughts. In that setting and in the entryway atrium of the building, informational items and photographs about the contributions of Sikhs to the history of the world and to the life and livelihood of the United States will be on display for viewing.
Because of the solemn, contemplative nature of the observance, United States Attorney Santelle requests that the media be respectful of the wishes and interests of the family members of the victims as well as other Gurdwara congregation members and not affirmatively solicit them for on-camera or other interviews in this setting. If requested, Public Information Officer Dean Puschnig will attempt to arrange interviews with victim family members who indicate that they would be willing to be interviewed.
United States Attorney Santelle noted that this observance is among several gatherings and events organized and sponsored in partnership with the leadership of the Sikh Community and of the City of Oak Creek beginning on Friday, August 2, and continuing through Monday, August 5. Information about other, related programs may be obtained from the Sikh Temple of Wisconsin at www.sikhtempleofwisconsin.com.
Mr. Puschnig will meet all representatives of the media at the employee entrance to the building on Jackson Street between 12:30 p.m. and 1:00 p.m. and escort them through the court house to the Ceremonial Courtroom. Arrangements will be made for a unified, common camera for recording/broadcast of the ceremony. For additional information, the general public should contact Mr. Puschnig at (414) 297-1774.
Sunday 28 July 2013
Fort Worth Man, Who Ran A Hydroponic Supply Store, Is Sentenced to 37 Months in Federal PrisonRead the Press Release
DALLAS — William Luck, II was sentenced today by U.S. District Judge Jane J. Boyle to 37 months in federal prison, following his guilty plea in February 2013 to one count of failure to File IRS Form 8300. Judge Boyle ordered that he surrender to the Bureau of Prisons on August 21, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the Internal Revenue Service (IRS), one must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if one’s business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.
According to the factual resume filed in the case, Luck owned a business called Hydro Expo. Law enforcement learned that Hydro Expo was facilitating indoor marijuana cultivating operations by supplying growing equipment and supplies to persons who were illegally growing marijuana. During an undercover operation, law enforcement arranged the purchase of approximately $20,000 worth of growing equipment and supplies from Hydro Expo; Luck was clearly informed that the equipment and supplies were going to be used in an illegal indoor hydroponic marijuana cultivation operation.
In October 2009, according to the factual resume, Luck accepted $17,000 in cash from an undercover who then took delivery of the marijuana growing equipment. During that meeting, Luck stated that he would break up the $17,000 cash into smaller amounts and that he would not identify the purchasers in any paperwork. Luck never filed the required IRS Form 8300, as required by law and regulations.
According to the order setting conditions for his release, Luck is a resident of Fort Worth. According to the plea agreement filed in the case, Luck agreed to pay $17,000 to the IRS in satisfaction of restitution associated with conduct underlying his conviction.
The case was investigated by the Drug Enforcement Administration and Internal Revenue Service - Criminal Investigation.
Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald was in charge of the prosecution.
Saturday 27 July 2013
Richmond Man Convicted on Robbery and Firearms Charges for Three Separate RobberiesRead the Press Release
RICHMOND, Va. – Marion Carter, 58, of Richmond, Va., was convicted today by a federal jury on three counts of robbery interfering with commerce and two counts of possessing a firearm in furtherance of those robberies.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Carl Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, made the announcement after the verdict was accepted by United States District Judge James R. Spencer. Carter faces a maximum term of 20 years for each of the three robberies and five years to life imprisonment on each of the three firearms charges when he is sentenced on October 28, 2013.
According to the evidence presented at trial, Carter robbed three commercial businesses in less than three weeks. The first robbery took place on November 2, 2012, at the Baskin Robbins ice cream store on Forest Hill Avenue in Richmond. The second robbery occurred on November 8, 2012, at the Fast Auto Loans store on Midlothian Turnpike in Richmond. Carter acquired approximately $900 from the first two robberies. The third robbery took place on November 14, 2012 at the FasMart convenience store on Semmes Avenue. During that robbery, the store clerks ran to the back of the store and locked themselves in the back room. Carter left the store without any money. Evidence at trial included surveillance videos from the robberies and a cell tower data analysis by the FBI.
This case was investigated by the ATF and the Richmond Police Department, with assistance from the FBI. Assistant United States Attorney Peter Duffey and Special Assistant United States Attorney Heather Hart prosecuted this 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.
Friday 26 July 2013
“Professional” Medicare Beneficiary Turned Patient Recruiter Sentenced to Federal PrisonRead the Press Release
HOUSTON—Robert Glenn Baker, 57, of Houston, has been sentenced for conspiracy to violate the anti-kickback statute, United States Attorney Kenneth Magidson announced today. Baker pleaded guilty to the charge on Aug. 15, 2012.
Today, U.S. District Judge Sim Lake took into consideration Baker’s cooperation with law enforcement agencies and handed him a sentence of 18 months in federal prison followed by three years of supervised release. Baker was further ordered to pay restitution in amount of $157,359 to the Medicare Program and $16,294 to the Texas Medicaid program.Baker is a Medicare beneficiary. From March 2007 and continuing through April 2012, he visited several medical clinics in Houston and the surrounding areas which purportedly provided such medical services as physical therapy, diagnostic testing and mental health services. Baker did not have a medical need for these services, but would allow his Medicare benefits to be billed in exchange for cash. The owners and operators of the various medical clinics then submitted claims to Medicare for payment using Baker’s Medicare information.
Enticed by the money, Baker began recruiting and referring other Medicare and Medicaid beneficiaries to the clinics. The owners and operators of the clinics paid Baker a referral fee, typically in cash, for each individual he referred.
This case was investigated by agents and investigators of the Inspector General’s Office of the U.S. Department of Health and Human Service, the Texas Attorney General’s Medicaid Fraud Control Unit and the Railroad Retirement Board - Office of Inspector General.
Special Assistant U.S. Attorney Justin Blan prosecuted this case.“Professional” Medicare Beneficiary Turned Patient Recruiter Sentenced to Federal PrisonRead the Press Release
HOUSTON—Robert Glenn Baker, 57, of Houston, has been sentenced for conspiracy to violate the anti-kickback statute, United States Attorney Kenneth Magidson announced today. Baker pleaded guilty to the charge on Aug. 15, 2012.
Today, U.S. District Judge Sim Lake took into consideration Baker’s cooperation with law enforcement agencies and handed him a sentence of 18 months in federal prison followed by three years of supervised release. Baker was further ordered to pay restitution in amount of $157,359 to the Medicare Program and $16,294 to the Texas Medicaid program.Baker is a Medicare beneficiary. From March 2007 and continuing through April 2012, he visited several medical clinics in Houston and the surrounding areas which purportedly provided such medical services as physical therapy, diagnostic testing and mental health services. Baker did not have a medical need for these services, but would allow his Medicare benefits to be billed in exchange for cash. The owners and operators of the various medical clinics then submitted claims to Medicare for payment using Baker’s Medicare information.
Enticed by the money, Baker began recruiting and referring other Medicare and Medicaid beneficiaries to the clinics. The owners and operators of the clinics paid Baker a referral fee, typically in cash, for each individual he referred.
This case was investigated by agents and investigators of the Inspector General’s Office of the U.S. Department of Health and Human Service, the Texas Attorney General’s Medicaid Fraud Control Unit and the Railroad Retirement Board - Office of Inspector General.
Special Assistant U.S. Attorney Justin Blan prosecuted this case.White River Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
First In Trouble was released to a third party custodian pending trial. A trial date has been set for September 24, 2013.
Nathan First In Trouble, age 34, was indicted on July 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 25, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and First In Trouble is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
White River Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Theodore Larvie, age 23, was indicted on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 25, 2013, and pled not guilty to the charges.
The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Larvie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals pending trial. A trial date has been set for September 24, 2013.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
John Carlisle, 49, of New Haven, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of making false statements and reports regarding mortgage loans and aiding and abetting in such conduct. Carlisle also admitted to the indictment’s forfeiture allegation. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has been set for 10/17/2013 3:30 PM before Judge Jon E. DeGuilio.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Carmen Leon, 41, of Edinburg, Texas, pled guilty before District Judge Robert L. Miller, Jr to the felony offense of conspiracy to distribute narcotics and conspiracy to commit money laundering. Carmen Leon also admitted to the indictment’s forfeiture allegation This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 12/9/2013 1:30 PM before Judge Robert L. Miller Jr.This case is being prosecuted by Assistant United States Attorney William Grimmer.
Cesar Leon, 22, of Edinburg, Texas, pled guilty before District Judge Robert L. Miller, Jr to the felony offense of conspiracy to distribute marijuana and structuring transactions to evade bank reporting requirements. This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 12/9/2013 1:30 PM before Judge Robert L Miller Jr. This case is being prosecuted by Assistant United States Attorney William Grimmer.
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.
DISPOSITIONS:
Joseph Brownlee, 49, of South Bend, Indiana, was sentenced by District Judge Robert L. Miller, Jr. to 60 months imprisonment and 2 years supervised release after being found guilty of the felony offense of being a felon in possession of firearm.According to documents filed for the case, Brownlee attempted to discard a Smith & Wesson handgun during a police pursuit.Brownlee was convicted of murder in Cook County, Illinois in 1983.The defendant also has prior felony convictions for intimidation and operating a vehicle while intoxicated.As part of the sentence, the Smith & Wesson handgun was also forfeited to the United States.This case was the result of an investigation by the South Bend Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Dedrick Bufkin, 20, of Merrillville, Indiana, a defendant in the case US v Toney et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of brandishing a firearm during a crime of violence.Sentencing has been set for 10/16/13.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Merrillville Police Department.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Scott Filbey, 47, of Walton, Kentucky, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of production of child pornography.Sentencing has been set for 10/8/13.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Indiana State Police, the Franklin County Ohio Sheriff’s Office ICAC Task Force and the Cincinnati Police/Hamilton County Sheriff Electronics Computer Investigation Section.This case is being prosecuted by Assistant United States Attorney Jill Koster.
Raynell Vaxter, 52, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 10/23/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorneys Joshua Kolar.
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.
DISPOSITIONS:
Javorious Raggs, 22, of Hammond, Indiana, a defendant in the case US v Puntillo-Raggs et al., was sentenced by Senior District Judge Rudy Lozano to 2 years of probation to include 12 months on home detention and $13,910.00 in restitution after pleading guilty to the felony offense of passing counterfeit obligations.According to documents filed by the government in this case, Raggs passed the counterfeit currency in payment for “purchased” items from the victim store. He later returned many of the items “purchased” with the counterfeit currency in exchange for genuine cash or other things of value. This case was the result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Troy Ditiway, 26, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of possession of materials depicting minors engaging in sexually explicit conduct. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.No sentencing date has been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
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.
DISPOSITIONS:
Leroy D Wilson, Jr , 37, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to 60 months imprisonment and 4 years of supervised release after pleading guilty to the felony offenses of distribution of more than 50 grams of crack cocaine, and possession of a firearm by a convicted felon. The court’s sentence also included an order of forfeiture. The defendant was convicted in 2002 of criminal recklessness.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Walter J. Ridley, 32, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to 12 months imprisonment (time served) and 2 years supervised release after pleading guilty to the felony offense of being a convicted felon in possession of a firearm .According to documents filed in this case, Ridley was convicted for possession of Marijuana in 2008.In June of 2012, Ridley was found in possession of a PT140 .40 caliber handgun.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Vermont Man Charged with Obtaining U.S. Citizenship by Failing to Disclose Violent Crimes Committed During the Bosnian ConflictRead the Press Release
Edin Sakoc, 54, of Burlington, Vt., was arrested today on charges that he obtained his naturalized citizenship through fraud by failing to disclose his prior acts of persecution and crimes committed during the Bosnian conflict, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Tristram J. Coffin of the District of Vermont, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge in Boston Bruce M. Foucart and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, N.Y., Field Office.
According to the indictment filed in Burlington, Sakoc committed naturalization fraud by providing false and fraudulent information about his commission of crimes and his participation in the persecution of Bosnian Serbs during the conflict in Bosnia-Herzegovina. Specifically, the indictment alleges that, in July 1992, Sakoc kidnapped and raped a Bosnian Serb woman and aided and abetted the murder of her elderly mother and aunt. Sakoc also allegedly aided and abetted the burning of the victims’ family home. According to the indictment, Sakoc allegedly failed to disclose his participation in these activities during his immigration and naturalization process.
Sakoc was charged in a two-count indictment filed yesterday in the U.S. District Court in the District of Vermont. The charges carry a maximum sentence of 10 years in prison as well as automatic revocation of his U.S. citizenship and a fine of up to $250,000.The case is being investigated jointly by HSI Burlington and the FBI’s Albany Division. ICE’s Human Rights Violators and War Crimes Center assisted in this investigation. Valuable assistance was provided by the Criminal Division’s Office of International Affairs and its counterpart at the Prosecutor’s Office of Bosnia and Herzegovina.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863 or the HSI tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
The case is being prosecuted by Senior Trial Attorney Matthew C. Singer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Eugenia Cowles of the District of Vermont.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Related Materials:
Indictment
Two Red Lake Women Indicted for KidnappingRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges two Red Lake women in connection to kidnapping. The indictment, which was filed on July 23, 2013, specifically charges Melanie Rose Benais, age 27, and Ronalda Myra Smith, age 33, with one count of kidnapping. On July 24, 2013, the indictment was unsealed following the defendants’ initial appearance in federal court.
The indictment alleges that on June 13, 2013, the defendants kidnapped another person while on the Red Lake Indian Reservation and held that person against their will.
If convicted, the defendants face a potential maximum penalty of life in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.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.
Two Louisiana Men Indicted for Threatening to Retaliate Against a Witness in a Federal Tax TrialRead the Press Release
The Justice Department announced today that a federal grand jury in Baton Rouge, La., returned an indictment yesterday charging Anthony Williams and Bobby Riley with conspiring to threaten to retaliate against a witness in a federal trial, threatening to retaliate against a witness in a federal trial and making false statements to federal agents.
According to the indictment, Williams and Riley, both residents of Baton Rouge, threatened to cause bodily injury to a witness who testified in the federal trial of United States v. Angela Myers. The indictment alleges that Williams and Riley made a threat via Instagram with the intent to retaliate against the witness for his testimony in the Myers trial. In March 2013, Myers was convicted by a jury of twenty-one federal felonies in a stolen identity tax refund fraud prosecution. The indictment also alleges that Williams and Riley made false statements to federal agents in March 2013.
An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent of all crimes until proven guilty beyond a reasonable doubt. If convicted, Riley and Williams each face a potential maximum sentence of 30 years in federal prison.
This case was investigated by Special Agents of the IRS - Criminal Investigation and the Treasury Inspector General for Tax Administration. Trial Attorneys Justin Gelfand and Jason Poole of the Justice Department’s Tax Division are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Middle District of Louisiana.
Thomas Roderick Yallup, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 25, 2013, before U.S. District Judge Dana L. Christensen, THOMAS RODERICK YALLUP, JR., a 30-year-old resident of Box Elder and an enrolled member of the Rocky Boy's Indian Reservation, was sentenced to a term of:
Prison: 33 months
Special Assessment: $100
Supervised Release: 3 years
YALLUP was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorneys Chad C. Spraker and Danna R. Jackson, the government stated it would have proved at trial the following:
On October 15,2011, within the exterior boundaries of the Rocky Boy's Indian Reservation, YALLUP assaulted "X.X." As a result of the assault, "X.X." was injured. The victim suffered bite marks, bruising throughout her body, and had pelvic pain so intense she had difficulty walking. "X.X." experienced extreme physical pain. She was in the emergency room for over five hours and was provided medication for her pain.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that YALLUP will likely serve all of the time imposed by the court. In the federal system, YALLUP does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Sullivan County Hedge Fund PresidentPleads Guilty to Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that LLOYD BARRIGER, former president and principal shareholder of the Gaffken & Barriger Fund LLC (the “Fund”), which was a hedge fund based in Monticello, New York, pled guilty today in White Plains federal court to a four-count Superseding Indictment charging him with securities fraud, conspiracy to commit securities fraud, mail fraud, and conspiracy to commit mail fraud in connection with a $12.6 million investment fraud scheme.
Manhattan U.S. Attorney Preet Bharara said: “Once again, belief in hedge funds by hopeful investors proved to be sadly misplaced. In this case, the perpetrator was not in a sleek Manhattan building but rather in Sullivan County. Mr. Barriger's guilty plea brings to an end his fraud. We hope that all our cases big and small exposing frauds in hedge funds will convince other fund operators to adhere to the duties of trust and honesty that they owe their investors.”
According to the Superseding Indictment filed in White Plains federal court:
From July 2006 through March 2008, when he froze the Fund, BARRIGER solicited approximately $12.6 million dollars from over 70 investors by deceiving them about the Fund’s performance. During this time period, the Fund invested primarily in real estate collateralized commercial mortgage loans. BARRIGER described the Fund to prospective investors as a safe and liquid investment that paid a minimum return of eight percent per year, which BARRIGER referred to as the “Preferred Return.” He then reported this Preferred Return to investors as income on periodic account statements produced by the Fund. The Preferred Return was supposed to be funded by the Fund’s net income and thus subject to the Fund’s actual performance. However, BARRIGER knew that the Fund’s actual performance did not justify these performance claims.
BARRIGER tricked investors into investing their money by concealing material information from them, including that (1) the Fund had incurred a loss of $600,000 in 2005; (2) the Fund lacked sufficient income to support the promised eight percent Preferred Return; (3) the Fund only continued to pay the Preferred Return – when it actually paid the return rather than simply credit it to investors’ accounts – by funding payments with investor capital, rather than income; (4) the Fund disguised the lack of income by creating a large and growing deficit in BARRIGER’s capital account with the Fund; (5) as a result of the failure of its borrowers to repay their loans, the Fund experienced a severe liquidity crunch and could not meet any substantial amount of withdrawal requests; (6) the Fund had defaulted on its $20 million line of credit with a third party lender in March 2007 and remained in default for much of the period thereafter, which entitled the lender to prohibit distributions to investors and to seize the Fund’s assets; and (7) delinquencies in the Fund’s loan portfolio spiked to over approximately 25% in July 2007 and increased to approximately 34% in November 2007.
In a letter dated May 30, 2008, BARRIGER told the investors that the Fund wrote down the value of the portfolio by approximately 40% and that there was a total reduction in investors’ capital accounts from $25,538,530 to $15,003,208.
BARRIGER, 57, of Damascus, Pennsylvania, faces a maximum sentence of 65 years in prison. The Government notified BARRIGER in the Superseding Indictment that it would seek to forfeit at least $12.6 million from him, representing the proceeds of his charged crimes. BARRIGER is scheduled to be sentenced by U.S. District Court Judge Cathy Seibel on November 15, 2013.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission for its extraordinary assistance in the investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the White Plains Division. Assistant United States Attorneys Jeffrey Alberts and John P. Collins, Jr. are in charge of the prosecution.
U.S. v. Barriger, Lloyd S1 Indictment
St. Petersburg Man Arrested on Charges of Possession and Distribution of Child PornographyRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces the arrest of Donald E. Gallagher, Jr. (51, St. Petersburg), on charges of distribution and possession of child pornography. If convicted, Gallagher faces a mandatory minimum penalty of 5 years and a maximum penalty of 20 years in federal prison on the distribution charge, and a maximum of 10 years in federal prison on the possession charge.
According to the complaint, Gallagher used an online peer-to-peer file sharing program to download and share numerous images and videos of minors, some pre-pubescent, engaging in explicit sexual activity. Based upon the investigation into the origin of these images, the Federal Bureau of Investigation obtained and executed a federal search warrant at a residence in St. Petersburg. During the search on July 24, 2013, agents located and seized a laptop computer belonging to Gallagher. A preliminary examination of the computer revealed hundreds of images of child pornography.
An complaint is merely a charge that probable cause exists that a defendant has committed a violation of the federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the St. Petersburg Police Department, and the Largo Police Department. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case 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.
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St. Petersburg Crack Cocaine Dealer Sentenced to 20 YearsRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore yesterday sentenced Michael M. Rucker (34, St. Petersburg) to twenty years in federal prison for possession with intent to distribute crack cocaine and marijuana within 1,000 feet of a school and being a convicted felon in possession of firearms and ammunition. The court also ordered Rucker to forfeit firearms and ammunition involved in the commission of the offenses. Rucker was found guilty by a jury on February 14, 2013.
According to court documents, on May 15, 2012, the St. Petersburg Police Department Vice and Narcotics Unit executed a search warrant at Rucker's residence located on 9th Avenue South, in St. Petersburg. During the execution of the search warrant, officers located two fully loaded handguns in Rucker's bedroom, distribution amounts of crack cocaine under a couch, marijuana, and tools of the drug trade commonly used to make and sell crack cocaine. The residence was located within 1,000 feet of both a middle school and daycare center.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
St. Louis Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
On July 25, 2013, David M. Hightower, a twenty-two year old St. Louis, MO, man pled guilty in federal district court, in East St. Louis, to failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Hightower is scheduled for sentencing on November 14, 2013, at which time he faces a maximum potential sentence of 10 years in prison and a fine up to $250,000, not more than 5 years of supervised release, and a mandatory special assessment of $100.
The violation occurred between July 14, 2009, and February 22, 2013. Hightower was required to register as a sex offender under both Illinois law and the Sex Offender Registration and Notification Act because he was convicted of Aggravated Criminal Sexual Abuse on September 16, 2005, in Madison County, Illinois. Hightower acknowledged that he understood the conditions of maintaining his sex offender registration requirements by signing an Illinois Sex Offender Registration Act Notification Form on July 13, 2009. Hightower was interviewed by a law enforcement officer on February 12, 2013, in St. Louis, Missouri, in relation to another charge, when it was learned that an active warrant was in effect in Madison County, IL, for his failure to register as a sex offender. In the interview, he admitted to having lived in Missouri when the violation occurred, and not having registered as a sex offender in Missouri until February 23, 2013. Because of his failure to register in Missouri within three days of entering, and his failure to update his registration in Illinois, Hightower was charged in federal court.
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 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.”/p>
The case was investigated by the United States Marshals Service and is assigned to Assistant United States Attorney Daniel T Kapsak.
San Antonio Self Proclaimed Modeling Promoter Convicted of Child Pornography Receives 898-Year Federal Prison TermRead the Press Release
In San Antonio this afternoon, Chief U.S. District Judge Fred Biery sentenced 36-year-old Gemase Lee Simmons of San Antonio to 10,776 months, or 898 years, in federal prison after convicting him in February of 39 counts of various bank fraud and child pornography related offenses announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.
In addition, Judge Biery ordered that Simmons pay $52,788.12 in restitution and a special assessment of $3,900. Simmons has been in federal custody since his arrest in January 2012.
“This man abused and exploited his victims in unspeakable ways. This sentence will ensure that he will not pose a risk to the public again,” stated United States Attorney Robert Pitman.
On February 11, 2013, following a six-day bench trial, Judge Biery convicted Simmons of six counts of bank fraud, four counts of extortion and 29 counts of sexual exploitation of a child including production, distribution, transportation, receipt and possession of child pornography.
Testimony and evidence introduced during trial established that between May 2011and January 2012, Simmons and others at his direction knowingly engaged in an approximate $70,000 check kiting scheme using local bank accounts. Simmons directed other individuals to withdraw cash from bank accounts he and others established using checks drawn on other bank accounts which Simmons knew either had insufficient funds or were closed.
Testimony also revealed that Simmons and others used those proceeds to implement and further a child exploitation scheme. Acting as himself and by assuming fake personas, Simmons recruited, enticed and coerced over 100 minors and adults, male and female, to engage in sexually explicit conduct and recorded the activity under the pretenses of helping them establish a modeling career. Testimony also revealed that Simmons oftentimes transmitted the images and videos of sexually explicit conduct to his female victims as a means to control them. Simmons then threatened to release the sexually explicit material publicly if the victims did not comply with his requests for additional images and sexual activity.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Tracy Thompson and Bettina Richardson prosecuted this case on behalf of the Government.
Rosebud Man Charged with First Degree Burglary and Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary and Assault with a Dangerous Weapon.
Christian Kelly, age 19, was indicted on July 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 25 years in custody, a $250,000 fine, or both; 5 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Kelly is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Kelly was released to a third party custodian pending trial. A trial date has not been set.
Rodney Lane Cooper Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 26, 2013, before Chief U.S. District Judge Dana L. Christensen, RODNEY LANE COOPER, a 50-year-old resident of Havre, was sentenced to a term of:
Prison: 48 months
Special Assessment: $100
Supervised Release: 4 years
COOPER was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
COOPER has been known throughout the Rocky Boy's and Havre communities to be a source of methamphetamine for the past several years. Law enforcement began their investigation into COOPER in 2011.
On February 25, 2011, the Havre Police Department arranged for a confidential informant (CI) to purchase methamphetamine from COOPER. The CI gave COOPER $140 for methamphetamine. COOPER provided the CI with a substance containing a detectable amount of methamphetamine.
On April 12, 2011, law enforcement again arranged for the same CI to purchase methamphetamine from COOPER. The CI gave COOPER $130 and received a substance from COOPER which contained a detectable amount of methamphetamine.
On March 25, 2012, law enforcement spoke with a witness who stated she had been purchasing methamphetamine from COOPER for the past six years. This witness estimated she purchased approximately 3.5 grams of methamphetamine once per month during that time.
On May 8, 2012, agents spoke with another witness who stated she began purchasing methamphetamine from COOPER in 2003. She purchased approximately a total of 100 grams of methamphetamine from COOPER, with the most recent purchase conducted in March 2012.
Lastly, on July 12, 2012, agents interviewed an additional witness who stated she had purchased approximately 25 grams of methamphetamine from COOPER during a three to four month time period. Law enforcement learned through their investigation that COOPER possessed, with the intent to distribute, over 50 grams of a substance containing a detectable amount of methamphetamine from 2003 through at least the summer of 2012.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that COOPER will likely serve all of the time imposed by the court. In the federal system, COOPER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Havre Police Department.
Rocky Mount Police Officer Indicted on Gun ChargeRead the Press Release
ROANOKE, VIRGINIA -- A police officer employed by the Rocky Mount Police Department and another man have been indicted by a Federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke on charges related to the straw purchasing of firearms.
Following an investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the grand jury has charged David Carson Haskins, age 57, with 18 counts of making false statements to a license firearms dealer in relation to the purchase of a firearm. In addition, Haskins, along with James Marion Slate, age 25, of Rocky Mount, Va., have been charged with one count of conspiracy to make straw purchases of firearms.
Each defendant faces a maximum possible penalty of up to five years in prison on the conspiracy charge. In addition, Haskins faces a maximum possible penalty of up to 10 years in prison on 10 counts of making a false statement to a licensed firearms dealer and a maximum possibly penalty of up to five years on the remaining eight counts of making false statements.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Donald Wolthuis will prosecute the case for the United States.A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Red Lake Man Pleads Guilty to Running Another Vehicle Off the RoadRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Duluth, a 30-year-old Red Lake man pleaded guilty to running a vehicle off the road on the Red Lake Indian Reservation. Tony Lee Lussier specifically pleaded guilty to one count of assault with a dangerous weapon. Lussier, who was charged May 21, 2013, in a superseding indictment, entered his plea before United States District Court Judge Richard H. Kyle.
In his plea agreement, Lussier admitted that on May 12, 2013, while he was driving a motor vehicle, he chased another vehicle. That vehicle contained four people. Lussier admittedly crashed into the other vehicle, causing it to roll into the ditch. Then, Lussier attempted to assault the other vehicle’s occupants before returning to his vehicle and driving away.
For his crime, Lussier faces a potential maximum penalty of ten years in prison. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Laura M. Provinzino and Manda M. Sertich.Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
Rapid City Man Indicted on Drug ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man was indicted by a federal grand jury for conspiring to distribute marijuana on the Pine Ridge Indian Reservation.
Dustin Hart, age 32, was indicted on July 23, 2013, for Conspiracy to Distribute Controlled Substances. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 26, 2013, and pled not guilty to the indictment.
The penalty upon conviction is a mandatory minimum of five years imprisonment up to a maximum term of 40 years, and/or a $5,000,000 fine. The charge is merely an accusation and Hart is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Task Force. Assistant U.S. Ted L. McBride is prosecuting the case.
Hart was remanded to the custody of the U.S. Marshal. A trial date has not been set.Pittsburgh Man Admits Robbing Bloomfield Post OfficeRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident has pleaded guilty in federal court to a charge of robbery of a U.S. Post Office, United States Attorney David J. Hickton announced today.
Joseph R. Filbert, 50, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Dec. 14, 2011, Filbert robbed a U.S. Postal clerk at the Bloomfield Post Office of $569.00 in U.S. Currency, by flashing what appeared to be a gun and demanding money. Still photos from the Post Office surveillance camera, together with video from a surveillance camera at a nearby business, enabled Postal Inspectors to obtain positive identification of both the car Filbert was operating and of Filbert. Execution of a search warrant resulted in the recovery of the shoes Filbert is believed to have worn in the Post Office robbery.
Judge Hornak scheduled sentencing for Nov. 13, 2013. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Joseph R. Filbert.
Philadelphia Man Convicted of Sex Trafficking A ChildRead the Press Release
Enoch Smith, 36, a/k/a “Drees,” a/k/a “Idris,” of Philadelphia, PA, was convicted today of all charges including sex trafficking of a minor and production of child pornography. According to evidence and testimony presented at trial, Smith operated a prostitution business in Philadelphia between April 1, 2009 and June 30, 2011. He recruited young women, including a minor (“Minor 1”), to work as prostitutes. Smith would photograph each female in his home with his camera and, using his laptop computer, would create an Internet advertisement for each on a website known as Backpage.com. Smith gave each of his recruits a cellular telephone, which he paid for, and then included that phone number in the Backpage advertisement.
Smith also had sexual relations with the females who worked for him. Smith lived with
several of the females who were working for him. The “dates” would take place at the home that Smith leased and the females gave 100 percent of their cash earnings to Smith. The Philadelphia Police Department learned of the prostitution operation by surveying Backpage advertisements and conducted an undercover “sting” operation at the premises in June 2011. A subsequent forensic examination of Smith’s laptop computer revealed two sexually explicit images of Minor 1, both of which were taken prior to her 18th birthday. Smith was charged locally and was later charged in a
federal indictment.A sentencing hearing is scheduled for October 31, 2013. Smith faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum sentence of 30 years’ imprisonment on Count One, a mandatory minimum sentence of 10 years’ imprisonment and a maximum possible sentence of life imprisonment on Count Two, a $500,000 fine, a lifetime period of supervised release and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, and the Philadelphia Police Department Vice Unit, with assistance from the Philadelphia District Attorney’s Office and the Bucks County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Paul Anthony Rible Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 25, 2013, before U.S. District Judge Dana L. Christensen, PAUL ANTHONY RIBLE, a 39-year-old resident of Plentywood, appeared for sentencing. RIBLE was sentenced to a term of:
Prison: 30 months
Special Assessment: $100
Forfeiture: computer
Supervised Release: 10 years
RIBLE was sentenced in connection with his guilty plea to accessing child pornography with the intent to view.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
An investigation into RIBLE began when agents determined that an IP address assigned to RIBLE's residence offered known child pornography video files available for download via the Internet from October 12, 2011, through December 13, 2011. An agent viewed some of the files which were available for download and determined they depicted children engaged in sexually explicit conduct.
A search warrant for RIBLE's residence was obtained and served on May 22, 2012. RIBLE was summoned to the Havre Border Patrol station to be interviewed on the day of the search. While agents conducted the search at RIBLE's Plentywood residence, RIBLE was interviewed in Havre.
RIBLE admitted to viewing child pornography on his computers at his residence in Plentywood. He described the images, and his description met the federal definition for child pornography. RIBLE said he used the Internet, his computer, and specific file sharing programs to obtain the images. RIBLE confirmed that he viewed the files listed in the IP activity log which showed the video files available for download between October 12, 2011, and December 13, 2011.
RIBLE also admitted he viewed child pornography on a laptop computer the night before the interview. He produced the laptop computer and a forensic analysis of the laptop produced evidence that RIBLE had visited websites consistent with online viewing of child pornography on May 21, 2012.
No additional evidence was located on the computer or electronic media seized from RIBLE's residence. Agents determined that the computer RIBLE had used to access and view the child pornography had malfunctioned and had been disposed of prior to the search of the residence.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that RIBLE will likely serve all of the time imposed by the court. In the federal system, RIBLE 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 U.S. Department of Homeland Security - Office of Inspector General and the U.S. Department of Homeland Security - Homeland Security Investigations.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
New Haven Man Sentenced to Seven Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DENIS WILLIAMS, also known as “Blanco,” 33, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 84 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in May 2011, the DEA received information that WILLIAMS was supplying crack cocaine and heroin to numerous drug customers in New Haven. On June 2, 2011, law enforcement officers stopped a vehicle that WILLIAMS was driving and seized approximately three grams of crack packaged for street sale in 14 individually-wrapped bags. A subsequent search of his Chatham Street residence revealed approximately 23 grams of crack, a handgun and $4946 in cash.
WILLIAMS, whose criminal history includes multiple prior felony drug convictions, has been detained since his arrest on June 2, 2011. On May 10, 2013, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack cocaine”).
This matter was investigated by the DEA New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, Branford, Meriden and Ansonia Police Departments. The case was prosecuted by Assistant United States Attorney S. Dave Vatti.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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(203) 821-3722
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