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6 September 2013
Justice Department Reaches Settlement with Jerome County Sheriff’s Office to Resolve the Employment Rights of Army National Guard MemberRead the Press Release
BOISE –The United States Justice Department and U.S. Attorney Wendy J. Olson announced today that they reached an agreement with the Jerome County Sheriff’s Office to resolve the allegations that Jerome County violated the employment rights of Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service.
The Justice Department’s complaint alleged that the Jerome County Sheriff’s Office violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy and subsequently terminating Jones following his service with the Idaho Army National Guard. The complaint states that Jones began working for the Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to Corporal. During his employment with the Sheriff’s Office, Jones suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his Guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the Sheriff’s Office forced him to complete Family Medical Leave Act (FMLA) paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminated his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty. The settlement reached is a compromise to avoid the expense and uncertainty of litigation. Jerome County does not admit to all of the allegations.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay, and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
Under the terms of the agreement, which was filed as a Consent Decree in the U.S. District Court for the District of Idaho, Jerome County has agreed to pay $150,000 (which includes $75,000 in lost wages) to Jones. Jerome County has also agreed to provide a letter that requests Jones’ return to the state employment eligibility register maintained by the Human Resources Department of the State of Idaho.
“This settlement demonstrates our vigilant protection of the employment opportunities of our service members, and our commitment to vigorous enforcement of the laws that protect them,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The department is pleased that we were able to work cooperatively with Jerome County to resolve this matter without the need for contested litigation.”
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said Wendy Olson, United States Attorney for the District of Idaho. “It is important that all veterans and especially those veterans who are injured serving their country, have the opportunity to return to civilian life and their careers free from worry about termination without cause.”
The case stems from a referral by the United States Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the District of Idaho.
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Johnson City Man Convicted of Drug and Firearms OffensesRead the Press Release
GREENEVILLE, Tenn. – Following a two-day trial in U.S. District Court, on Sept 5, 2013, Marcus Lyonel Story, 33, of Johnson City, Tenn., was convicted of knowingly possessing a firearm in furtherance of a drug trafficking crime. Story had already pleaded guilty to possession of cocaine with intent to distribute, and possession of marijuana with intent to distribute.
Sentencing is set for 9:00 a.m., January 6, 2014. Story faces a mandatory minimum five years to life in prison. There is no parole in the federal system.
In May 2013 members of the Johnson City Police Department, First Judicial District Drug Task Force, and Drug Enforcement Administration, conducted a surveillance operation that resulted in the arrest of Story on an outstanding warrant. A subsequent search of Story’s home revealed 38.8 pounds of marijuana, 110 grams of cocaine and over $8000 in cash. The estimated street value of these drugs was $50,000. In addition, law enforcement also located six semi-automatic pistols and several hundred rounds of ammunition. Evidence presented at trial showed that Story kept the firearms to protect himself, his drug inventory, and his drug sale proceeds.
Special Assistant U.S. Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Jennings Man Pleads Guilty to Importing and Distributing Anabolic SteroidsRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that Regan Chase Benoit, 25, of Jennings, La., pleaded guilty Thursday before U.S. District Judge Patricia Minaldi to importation and possession with intent to distribute anabolic steroids.
According to the evidence presented at the guilty plea, on May 24, 2012 U.S. Postal workers inspected a package from China and discovered that it contained one kilogram of anabolic steroid powder. The address on the package was for a Jennings residence. On May 30, 2013, authorities observed a woman picking up the parcel from the post office in Jennings. After detaining the woman, she told authorities the package was for Benoit. Benoit was questioned by police and admitted to importing steroid tablets and powder from China. He admitted that after receiving the drugs, he liquefied them and placed them in vials for distribution.
Benoit faces up to 10 years in prison, a $500,000 fine, and two years of supervised release for both counts. Sentencing has been set for December 5, 2013.
Homeland Security Investigations, the U.S. Postal Inspection Service and the Jennings Police Department conducted the investigation. Assistant U.S. Attorney Brett L. Grayson is prosecuting the case.
International Arms Smuggler Sentenced to X Years in PrisonRead the Press Release
PHILADELPHIA – Siarhei Baltutski, a/k/a Sergey Boltutskiy, 41, of Minsk, Belarus, was sentenced today to XX months in prison for conspiracy to violate the Arms Export Control Act, conspiracy to violate the International Emergency Economic Powers Act, and conspiracy to commit money laundering. Baltutski pleaded guilty on January 25, 2013. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered ...
The sentence was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General John Carlin of the Justice Department’s National Security Division, Acting Assistant Attorney General Mythili Raman, of the Justice Department’s Criminal Division, and Special Agent-in-Charge John P. Kelleghan of Immigration and Customs Enforcement Homeland Security Investigations.
Between January 1, 2008 and September 21, 2011, Baltutski organized a network of buyers in the United States to obtain and illegally export to Belarus high-tech military hardware such as Scorpion Thermal Weapon Sights, ThOR 2 Thermal Imaging Scopes, Thermal-Eye Renegade 320's, and other night vision targeting devices. During the course of the conspiracy, Baltutski and his associates illegally exported hundreds of such items. Baltutski then arranged for hundreds of thousands of dollars to be secretly wired, via offshore shell companies, to purchase these items, pay for shipping, and pay his network of buyers.
“The Arms Export Control Act and the International Emergency Economic Power Act prohibit the export of high tech military technology which is critical to the national security and foreign policy interests of the United States,” said Memeger. “Keeping this important technology out of the hands of current and potential adversaries is critical to our national interest and the safety and success of our service members in combat today.” “Today’s sentence sends a strong message that the justice system will seriously punish those who threaten our national interests through this type of criminal activity.”
“HSI is committed to protecting Americans and our allies from greedy profiteers exporting sensitive technology,” said Kelleghan. “When sensitive military components get into the wrong hands, our national security and our troops’ lives are seriously threatened.”
“The FBI places a high priority on preventing advanced technology from getting to those who might use it to harm American troops or U.S. interests,” said FBI Special Agent-in-Charge Edward J. Hanko. “In this case, one man’s greed potentially put untold numbers of Americans at risk.”
This case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Robert Livermore, Trial Attorney Jerome Maiatico with the Department of Justice’s Organized Crime and Gang Section, and Trial Attorney David Recker of the National Security Division.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges New Haven Man with Heroin Distribution OffenseRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging RAFAEL ORTIZ, also known as “Rizz,” 48, of New Haven, with trafficking heroin.
The indictment alleges that on August 2, 2013, ORTIZ possessed with intent to distribute heroin.
ORTIZ was arrested yesterday on a criminal complaint. He is currently detained.
If convicted, ORTIZ faces a maximum term of imprisonment of 30 years and a fine of up to $2 million.
This case has been assigned to U.S. District Judge Robert N. Chatigny in Hartford.This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department, and is being prosecuted by Assistant U.S. Attorney John H. Durham.
Acting U.S. Attorney Daly stressed that an Indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Indiana Man Sentenced to Federal Prison in Black Money ScamRead the Press Release
PROVIDENCE, R.I. – Alvin Pennue, 32, of Indianapolis, Ind., was sentenced today to 21 months in federal prison for passing altered United States currency on two occasions and for inducing a victim to transport $5,000 from Massachusetts to Rhode Island as part of a Black Money scam, announced United States Attorney Peter F. Neronha and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the United States Secret Service.
At sentencing, Pennue was also ordered by U.S. District Court Judge John J. McConnell, Jr. to serve three years of supervised release following his prison term and make restitution in the amount of $5,000 to one of his victims. Pennue was convicted by a federal court jury in Providence on June 19, 2013, of two counts of passing altered obligations of the United States and one count of interstate transportation of stolen property - inducing a victim to transport U.S. currency in interstate commerce as part of a scheme to defraud.
Black Money scams are schemes to defraud whereby individuals attempt to obtain money from a victim by persuading that person that large quantities of banknote-sized paper are really U.S. currency that has been dyed black, typically to avoid detection by customs agents. The victim is persuaded, with the prospect of sharing in the proceeds, to supply real currency to purchase supplies and otherwise facilitate a chemical transformation that will remove the black dye covering the supposedly genuine currency. In reality, except for a few genuine currency bills used to advance the scheme, the black money is usually black construction paper.
At trial, the government presented evidence that during October 2011, Alvin Pennue, through another person, passed to an undercover U.S. Secret Service agent two blackened $100 bills and two blackened $20 bills to a victim of the scam. Pennue persuaded the victim to withdraw $5,000 in $100 bills from his bank account in Massachusetts and to bring that money to Providence to invest in the black money scam.
The evidence showed that at the time of his arrest on October 28, 2011, Alvin Pennue and a second person were in possession of a suitcase containing supplies used to facilitate a black money scam. Pennue was also in possession of over $2,700, including twenty-three $100 bills.
Arrests warrants have been issued for two co-defendants in this matter, Saah Johnson, 36, of Fall River, Mass., and Anthony Chadheen, 35, of Providence.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose and Special Assistant U.S. Attorney Benjamin S. Towbin.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Providence Police Department, and the Rhode Island State Fire Marshal’s Office assisted the U.S. Secret Service in the investigation of this matter.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Indiana Man Sentenced for Training Federal Job Applicants to Lie During Polygraph ExaminationsRead the Press Release
ALEXANDRIA, Va. – Chad Dixon, 34, of Marion, Indiana, was sentenced today to eight months in prison followed by a three year term of supervised release, and ordered to forfeit $17,091.07 for his role in a scheme to deceive the federal government during polygraph examinations conducted as part of federal security background investigations.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division made the announcement following the sentencing. Dixon previously pleaded guilty to wire fraud and obstruction of an agency proceeding on December 17, 2012.
According to court documents, Dixon operated an Internet-based business that trained customers how to “beat” polygraph examinations conducted by various agencies of the federal government, including within the intelligence community. Dixon taught physical and mental polygraph countermeasures designed to obstruct polygraph examinations by producing “truthful” polygraph charts ”even if you are flat out lying.” Dixon customized his trainings by asking each customer the purpose of their polygraph examination and the information they wanted to conceal from the government. Dixon instructed his customers to conceal their misconduct, to deny receiving polygraph countermeasures training, and to lie during their exams. The purpose of the scheme was for Dixon to enrich himself by training federal job applicants and federal employees how to conceal specific and material information from the federal government in exchange for between approximately $1,000 and $2,000 plus travel expenses.
Dixon provided private training sessions around the country to his customers, including applicants for federal law enforcement and national security positions. For example, Dixon trained two federal contractors – associated with a U.S. intelligence agency and a federal law enforcement agency – who held Top Secret security clearances. In addition, Dixon trained Applicant A, who applied for a United States Customs and Border Protection (“CBP”) Air Interdiction Agent position, and Applicant B, who applied for a CBP Border Patrol Agent position, to utilize polygraph countermeasures. He instructed both applicants to lie about his training.
Furthermore, on two separate occasions, Dixon trained undercover agents posing as applicants for CBP law enforcement positions to lie in order to beat polygraph tests. The first undercover agent told Dixon that, while previously employed as a local jailer, she smuggled contraband into the jail for inmates and accepted bribes. She also told Dixon that she was an active drug-user and that she had lied about all of her misconduct on her security background forms. Dixon instructed the agent to lie about her past criminal activities and taught her how to obstruct the polygraph exam. The second undercover agent told Dixon that, in order to pass a pre-employment polygraph test for a federal law enforcement position, he had to conceal that he had sex with a minor and to hide information concerning a brother who was a member of the Los Zetas drug cartel involved in cross-border crimes involving drugs, extortion, murder, and kidnapping. The agent told Dixon that he gave his brother his U.S. passport so his brother could illegally enter the United States for criminal purposes. Nevertheless, Dixon trained the second undercover agent and told him not to reveal the information about his brother or the sexual contact with a minor.
Dixon also admitted to providing training to nine convicted sex offenders who were required to take polygraph examinations as a condition of court-ordered probation or parole, including:
- A 35-year-old man from Herndon, VA, convicted of peeping;
- A 52-year-old man residing in Bethesda, MD, convicted of sexual abuse of a minor;
- A 53-year-old man residing in Quincy, IL, convicted of a child pornography-related offence;
- A 46-year-old man from Aurora, TX, convicted of sexual assault of a minor;
- A 55-year-old man in New York, NY, convicted of sexual assault of a minor;
- A 42-year-old man from Seminole, TX, convicted of attempted sexual battery of a minor;
- A 39-year-old man from Carrolton, TX, convicted of indecent sexual contact with a child;
- A 39-year-old man in Raleigh, NC, convicted of sexual battery; and
- A 30-year-old man in Commerce City, CO, who failed to properly register as a sex offender.
This case is being investigated by the U.S. Customs and Border Protection Office of Internal Affairs, the Department of Homeland Security Office of the Inspector General, the Federal Bureau of Investigation, and the Department of Defense Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorney Uzo Asonye and Criminal Division Public Integrity Section Trial Attorneys Anthony J. Phillips and Eric L. Gibson.
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.Huffman Resident Handed Nearly 18-Year Sentence for Two Child Pornography ConvictionsRead the Press Release
HOUSTON – Ryan Scott Solis, 32, has been sentenced to federal prison for distributing and possessing child pornography, announced United States Attorney Kenneth Magidson. Solis, of Huffman, pleaded guilty Jan. 25, 2013.
U.S. District Judge Melinda Harmon, who accepted the guilty plea, sentenced Solis to 210 and 120 months for the distribution and possession convictions, respectively, which will run concurrently for a total of 210 months in federal prison without parole. In handing down the sentence, Judge Harmon considered stated that this is a very, very serious crime that should be punished. Solis was further ordered to pay restitution to the victims whose images were found on his computer, will serve 10 years of post-prison supervised release and he will also be ordered to register as a sex offender.
Solis came to the attention of authorities when an undercover officer observed an IP address registered to Solis sharing incest or child rape stories, images and videos of child pornography with others online. A search warrant was later executed at his address, at which time three hard drives, one computer tower and miscellaneous CDs/DVDs were seized. A subsequent forensic analysis of the seized items resulted in the discovery of more than 2,700 child pornography images and more than 540 child pornography videos that depicted children involved in lewd exhibitions, deviant sexual acts and sadistic and masochistic behavior. One of the images displayed 4-6 year-old female victim being penetrated by an adult male.
As part of the documents in support of his plea, Solis admitted to possessing and distributing child pornography.
Solis has been in federal custody since July 13, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, initiated and investigated by the Colorado Internet Crimes Against Children Task Force, FBI, Beaumont Police Department and Homeland Security Investigations, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."This case is being prosecuted by Assistant United States Attorney Megan J. Paulson and former Special Assistant United States Attorney Demetrius Bivins.
Hogsett Announces Arrest of Jasper Man on Child Exploitation ChargesRead the Press Release
JASPER – Joseph H. Hogsett, the United States Attorney, announced today that Kurtis Head, age 33, of Jasper, has been charged with twelve counts of receiving child pornography. Hogsett said the filing of formal charges comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“These cases are always difficult, both as a prosecutor and as a parent,” Hogsett said. “But they are important, not just to ensure the safety of Hoosier children, but also to send a message that we will not tolerate such behavior in our communities. You are not anonymous online – if you engage in this activity, we will find you and you will be held accountable.”
According to charging documents, Head was arrested after a collaborative investigation that involved Homeland Security Investigations and the Jasper Police Department. Detectives connected to a computer online that was sharing images and videos of child pornography. That activity was then allegedly traced to an apartment in Jasper. On July 31, a federal search warrant was executed at the residence.
As a result of this search, law enforcement allegedly located a hard drive that contained thousands of images and videos depicting minors engaged in sexual conduct. In addition, the criminal complaint alleges that the defendant may have been responsible for the sexual abuse of a six year old female child approximately two years ago. Head also faces state charges related to these allegations.
According to Assistant U.S. Attorney Lauren Wheatley, who is prosecuting the case for the government, Head faces a sentence under federal guidelines between five and twenty years on each count. In addition, the defendant also could be sentenced to years of supervised release at the end of his prison term, as well as lifetime registration as a sexual offender.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Informations, indictments, and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Georgia Emissions Inspectors Plead Guilty in Federal CourtRead the Press Release
ATLANTA – Jerome Clarence Barnes, Jr. and Jared F. Walker have pleaded guilty for their roles in a scheme to fraudulently issue emissions certificates for cars that would have failed the emissions inspection required by law.
“Barnes orchestrated a scheme to take hundreds of thousands of dollars in illegal payments in return for falsely certifying that cars had passed emissions tests,” said United States Attorney Sally Quillian Yates. “By issuing false certificates, not only did Barnes and his codefendants corrupt the emissions certification system, they also allowed a threat to air quality in Atlanta, and as a consequence, public health.”
“Congress enacted the Clean Air Act to ensure that all Americans have the right to breathe clean, safe air and violators who produce fraudulent emissions data undermine that right.” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia. “All of the violations in this case took place in the Greater Atlanta area, a region that exceeds minimum federal standards for hazardous air pollutants. This case is an excellent example of how EPA, working with investigators from the Georgia Environmental Protection Division and other agencies, works to protect both the public and the environment.”
“The result of this investigation sends an important message to anyone who would try to defraud Georgia’s vehicle emissions program,” said Judson H. Turner, Director of the Georgia Environmental Protection Division (EPD). “The program has a major role in the state’s plan to improve air quality in metropolitan Atlanta, so we are very pleased with this outcome.”According to United States Attorney Yates, the charges and other information presented in court: Barnes, 34, of Lithia Springs, Ga., was responsible for issuing over 4,000 fraudulent emissions certificates to car owners in Georgia from September 2011 to September 2012, falsely stating that the owners’ cars passed the required emissions test. Barnes worked with other individuals to open emissions inspection stations in their names that he would then use to issue fraudulent emissions certificates. Opening stations in others’ names helped conceal Barnes’ involvement in the fraudulent activity. He wanted to avoid detection because he previously owned two inspection stations that state authorities had shut down for fraud. When authorities would discover emissions fraud occurring at one of the inspection stations, Barnes continued the fraud at another station that was opened under the name of a different owner. During the scheme, Barnes used On Time Emissions in Fulton County, All Clean Emissions in Cobb County, BDH Emissions in Dekalb County, Elite Emissions in Fulton County, and Cleaner Atlanta Emissions in Cobb County, to conduct fraudulent emissions testing. Walker, 35, of Austell, Ga., owned All Clean Emissions.
Jared F. Walker, and co-defendants Ieka N. Jones, 33, of Winston, Ga., and Seretha Franklin, 36, of Acworth, Ga., were licensed emissions inspectors who worked with Barnes to issue passing emissions certificates to car owners whose cars would have otherwise failed the emissions test. Instead of connecting the owners’ real cars to the emissions equipment, the defendants connected different cars they knew would pass the test. During the tests, the computer system automatically transmitted emissions testing data to a statewide database accessible by the Georgia Environmental Protection Division. The defendants manually entered other information into the system, such as the make, model, and vehicle identification number, to make it appear that they were testing the owners’ real cars, many of which had already failed an emissions test or showed equipment malfunctions. The defendants charged $100 to $125 for a fraudulent emissions test, far more than the usual amount charged for a legitimate inspection. Georgia law prohibits inspection stations from charging more than $25 for an emissions test.
Barnes pleaded guilty to one count of conspiring to commit wire fraud by depriving the State of Georgia and its citizens of their right to his honest services as a licensed emissions inspector. Walker pleaded guilty to one count of violating the Clean Air Act. The conspiracy charge against Barnes carries a maximum sentence of 5 years in prison. The Clean Air Act charge against Walker carries a maximum sentence of 2 years in prison. Each charge carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The Clean Air Act is a federal law that authorizes the United States Environmental Protection Agency to establish air quality standards to protect public health and welfare and to regulate emissions of hazardous air pollutants. As required by the Act, the State of Georgia has established a vehicle emissions testing program that requires cars in several counties be inspected to ensure that their emissions do not exceed limits for hydrocarbons, nitrogen oxide, and other compounds. With certain exceptions, car owners must submit an emissions certificate to obtain their annual vehicle registration. The Clean Air Act prohibits making false statements in records, including emissions certificates and database records, that are required to be maintained by the Act.
Sentencing is scheduled for November 22, 2013, at 10:00 a.m. before United States District Judge Timothy C. Batten, Sr. The indictment charging Jones and Franklin with conspiracy and Clean Air Act violations remains pending.
This case is being investigated by Special Agents of the United States Environmental Protection Agency, Criminal Investigation Division, and the Georgia Department of Natural Resources, Environmental Protection Division.
Assistant United States Attorney Stephen H. McClain is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Wayne County Official Sentenced for FalsifyingDocuments to Conceal Bribery SchemeRead the Press Release
A former Wayne County official was sentenced to more than three years in prison for obstructing justice in the investigation of a bribery and extortion scheme, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge John Robert Shoup of the Federal Bureau of Investigation (“FBI”).
Zayd Allebban, former Wayne County Director of Enterprise Applications, the office that does software application development for Wayne County, was sentenced to 41 months in federal prison by U,S. District Judge Stephen J. Murphy, III. Allebban was found guilty at trial in February by a federal jury in Detroit on charges of falsifying documents with the intent to obstruct justice. The purpose of the falsified documents was to conceal a bribery and extortion scheme involving Allebban’s friend and supervisor, Tahir Kazmi, former Wayne County Chief Information Officer.
The evidence presented at trial established that Allebban and Kazmi sought to obstruct justice by seeking to persuade a private contractor to provide false information to the FBI and to a federal grand jury investigating corruption in the Wayne County government. Allebban and Kazmi sought to conceal the fact that the contractor had given Kazmi tens of thousands of dollars in cash and trips to Hawaii, Turkey, and Florida. Allebban was found guilty of falsifying documents that indicated that all payments from the contractor had been repaid by Kazmi, prior to the initiation of the grand jury investigation, with the intent to obstruct the grand jury and FBI investigation. Allebban, as part of the scheme, also delivered $24,000 in cash to the private contractor in an effort to induce the contractor to tell the FBI that the contractor had never given anything to Kazmi.
Allebban was found not guilty on separate charges of conspiracy to obstruct justice and obstruction of justice by means of false documents.
Tahir Kazmi pleaded guilty on July 26, 2012, to accepting a bribe and is scheduled to be sentenced on December 13, 2013. He faces a maximum sentence of ten years in prison and/or a $250,000 fine.
U.S. Attorney McQuade said, “Public officials who illegally enrich themselves will be detected and brought to justice. Efforts to conceal their crimes will bring additional charges and higher penalties.”
FBI Acting Special Agent in Charge Shoup said, "The citizens of Wayne County deserve honest government and leaders committed to serving the needs of taxpayers. This verdict should serve as a reminder that the FBI-led Detroit Area Public Corruption Task Force will remain vigilant and dedicated to stopping these illegal acts."The case was investigated by Special Agents of the FBI and Detroit Area Public Corruption Task Force. It is being prosecuted by Assistant United States Attorney Sheldon Light.
Former Pennsville, N.J., Police Officer Sentenced to Prison for Obstructing Child Pornography InvestigationRead the Press Release
CAMDEN, N.J. – A former Pennsville, N.J., police officer was sentenced today to 15 months in prison for obstructing the FBI’s investigation of his alleged possession of child pornography, U.S. Attorney Paul J. Fishman announced.
Robert Waterman, 32, of Wrightstown, N.J., previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of obstruction of a federal investigation in connection with his destruction of a computer hard drive.
According to the indictment and statements made in court:
Waterman was formerly a police officer with the Pennsville Police Department. On March 4, 2010, while he was still a member of that department, FBI special agents told Waterman that he was being investigated for alleged possession of child pornography. During the plea hearing, Waterman admitted that following this interview with the FBI, he located a hard drive in his garage and placed it in his patrol car. Waterman admitted that he then broke apart the hard drive’s circuit board into small pieces while in his patrol car at the police department. Waterman admitted he did this to obstruct the FBI’s investigation.
In addition to the prison term, Judge Kugler sentenced Waterman to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, and officers of the Pennsville Police Department, under the direction of Police Chief Allen J. Cummings, for their cooperation and assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Assistant Federal Public Defender Maggie Moy Esq., Camden
13-358Former Ohio Education Official Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – John T. Childs, 48, of Columbus, Ohio was sentenced to six months in prison followed by five years under court supervision, for possessing eleven images of child pornography stored on his home computer. Childs was also ordered to register as a sex offender and allow the court to install monitoring software on his computer.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, and Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Childs is the former chief financial officer and chief operating officer for the Ohio Department of Education. He pleaded guilty on April 29, 2013 to one count of possession of child pornography. “At the time he entered his plea of guilty, the defendant admitted to utilizing a peer-to-peer file sharing program to download and view videos of child pornography on the computer located in his home,” Assistant U.S. Attorney Heather Hill wrote in a memorandum filed with the court prior to sentencing. Childs possessed approximately 11 images of child pornography on his desktop computer when HSI and ICAC officers executed a search warrant at his home on October 10, 2012.
Childs’ sentence also includes a requirement that he undergo mental health and sex offender treatment as directed by his probation officer. He will also be required to register as a sex offender in any state where he lives, works or goes to school while on supervised release. Judge Graham ordered him to report to an institution to be designated by the U.S. Bureau of Prisons within 60 days.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by HSI agents and ICAC officers, as well as Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Former Employee Pleads Guilty to Stealing from Arkansas Sports Hall of FameRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and Brian T. Marr, Special Agent in Charge of the Little Rock Field Office, United States Secret Service; announced that Jennifer Smith, 47, of Little Rock, a former employee at the Arkansas Sports Hall of Fame, pleaded guilty today before United States District Judge Brian Miller to stealing nearly $120,000 from the Hall of Fame.
“The Arkansas Sports Hall of Fame is an institution where people are honored for their contributions to this state,” stated Thyer. “It is a shame that someone would steal from this organization while seemingly supporting it as an employee. Thankfully, an audit and great investigative work have exposed the perpetrator of this theft and brought her to justice.”
Marr said, "Secret Service Investigations are committed to aggressively identifying those associated with these types of financially motivated crimes. These crimes create economic havoc on the businesses located in our communities. Working with the North Little Rock Police Department and United States Attorney’s Office we ensured that this defendant, was held responsible and accountable for her actions."
Smith pleaded guilty to a one-count Information charging her with access device fraud. Smith used Arkansas Sports Hall of Fame credit cards from 2007 to 2012 to make $118,296.98 in unauthorized personal purchases. The purchases included charges to an athletic club, restaurants, women’s and children’s clothing stores, and charges for out-of-town trips.
Smith’s scheme was discovered in September of 2012 following an audit that was triggered when the Sports Hall of Fame’s bank statement showed a payment to the Little Rock Athletic Club for personal dues in the name of Jennifer Smith.
Access device fraud carries a maximum sentence of not more than 15 years imprisonment and/or a fine of not more than $250,000 and not more than three years supervised release. Sentencing will be set at a later date by the Court.
The investigation was conducted by the Secret Service, with assistance from the North Little Rock Police Department. The case was prosecuted by Assistant United States Attorney Chris Givens.
Former Bank Employee Sentenced for Embezzling Funds from Federal Tax ChecksRead the Press Release
PROVIDENCE, R.I. – Elvy Gomez, 40, of Providence, R.I., was sentenced today to 12 months and one day of community confinement for embezzling more than $95,000 from stolen federal tax checks, announced United States Attorney Peter F. Neronha; John Collins, Acting Special Agent in Charge of IRS Criminal Investigation; and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
At sentencing, U.S. District Court Chief Judge Mary M. Lisi, who recommended that Gomez be assigned to serve his sentence at the Coolidge House in Boston, also ordered Gomez to serve 3 years supervised release upon completion of his confinement, forfeit $34,376.37 and pay restitution in the amount of $95,559.
Gomez, a former employee of Bank of America, pleaded guilty on June 12, 2013, to one count each of theft of government property, forging an endorsement on treasury checks and money laundering.
At the time of his guilty plea, Gomez admitted to the court that he used his position at the bank to access a dormant checking account which he used to deposit stolen treasury checks and then withdraw the funds. Gomez admitted to obtaining an ATM card in the name of the person whose name appeared on the account, and that between April 2012 and August 2012, he deposited fourteen stolen treasury checks totaling $95,559 into the bank account and then withdrew the funds for his own personal use.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation with the assistance of the U.S. Secret Service.
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[email protected]Florida Man Sentenced in Baltimore Fraud Scheme Involving the Online Purchase of Gold and Silver CoinsRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Tasleem Ekun, age 36, of Sunny Isles Beach, Florida, today to two years in prison followed by one year of supervised release for bank fraud and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, from January to October 2011, Ekun fraudulently used another individual’s Discover credit card to purchase gold coins online. While investigating a drug trafficking organization, FBI agents overheard Ekun talking with co-defendant Roy Clay on the phone about a scheme to fraudulently purchase between $70,000 and $120,000 of gold and silver coins online and have them shipped, via U.S. Postal Service, to locations in Baltimore.
Following his conviction on drug trafficking charges, Judge Blake sentenced Roy Lee Clay, age 47, of Baltimore, on August 27, 2013 to life in prison, for conspiracy to distribute and possess with intent to distribute heroin, enhancing Clay’s sentence based upon two previous drug trafficking convictions. The government has moved to dismiss this bank fraud case against Clay.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this case.
Federal Law Enforcement Officers Association 22nd Annual National Awards Banquet and Ceremony Remarks by U.S. Attorney John WalshRead the Press Release
It is a profound honor to speak to you all tonight, both as a member of the federal law enforcement community, and also as a citizen of this great Republic. As others have noted long before me, speaking in praise of men and women for their specific acts of courage and heroism, as you have asked me to do, is not only an honor, but also a profound challenge. My fear is that my lack of eloquence might somehow diminish or undervalue the worth of the remarkable deeds you will soon be hearing about tonight. The facts themselves are the best form of praise, and they speak eloquently in true homage to the brave agents and officers who are being honored here.
Nevertheless, let me offer a few observations as a deeply appreciative lawyer and prosecutor. Sometimes I am sure that it appears to all of you in law enforcement that we prosecutors have lost sight of who is actually doing the hard work of law enforcement, as we sit comfortably in our office chairs, dispensing what we are confident is great wisdom, or at worst, while we stand before the occasional irate judge or skeptical jury as we prosecute a case. I’m sure it sometime looks like we’ve forgotten that we ourselves didn’t collect the evidence we present in court; or that we think that we ourselves arrested the defendants we cross-examine. And I know for a fact that it can appear at times that we have forgotten that while our role as prosecutors is important in our system of justice, it is merely the final formal act of bringing wrongdoers to justice, not the entire endeavor.
So, as a prosecutor, let me first be clear that we prosecutors do remember who actually does the difficult and all-too-often dangerous work of protecting the public in the hard-edged real world, not just the courtroom. And that is all of you -- and particularly, it is the men and women receiving awards tonight. Tonight you will hear the facts about acts of valor that are indeed the best praise of those we are honoring: Men and women who ran into burning buildings to save the aged and infirm; who engaged in intense firefights with the Taliban in Afghanistan; who sprinted to leap into speeding cars to bring them under control and then save the lives of the very wrongdoers they were seeking to apprehend; who dove into the raging ocean surf to rescue drowning swimmers at the cost of their own lives, and more. My words tonight are small in the balance compared to the simple facts of what these men and women have done. There is so much to honor here.
Any thoughtful person hearing these tales of heroism will ask him or herself two questions. The first is the age-old question: Had I been there that day, would I have acted so nobly? That question, I suppose, has no certain answer until the actual moment arrives. The second question is more complex: Why? Why did these men and women react and act in a way that was so true, so good and so selfless?
Let me address the second question first, in the hope that it might help us all consider the first as well. Why were these men and women so brave and selfless? Obviously, I can’t speak to their thoughts and motivations individually, but let me venture a few broad observations based on my experience in and with law enforcement.
First, there is no doubt that character played a commanding role. Each of the award winners here tonight reached down deep into their souls in a moment of crisis and danger and found something strong and true that they could work with, that impelled them to act, and that freed them to act.
Moreover, the intense and superior training that all of you have received as law enforcement, whether federal, state or local, unquestionably played a crucial role. These men and women, like you, had been trained and conditioned to act under dangerous and unclear circumstances, to weigh the various options almost instantaneously, and to act as their trained judgment guided them.
But as I read through the awards before coming here, something else also struck me: As you listen to the awards this evening, you will note that many of the officers being honored acted in the specific furtherance of their duty as law enforcement officers, and that many others did not – that is, they intervened to rescue others while off-duty or merely passing by, and with no direct relationship to their law enforcement work. Now, whether as part of their immediate duty or not, these acts are equally noble and equally deserving of our praise.
But the fact that our law enforcement officers acted without hesitation in both circumstances – on duty, or off -- is telling, because it says something fundamental about what motivated them: A sense of responsibility; a sense of ownership of our nation and community; and an abiding sense of our common humanity.
And that says something crucial not only about these officers, but about this nation. Why did these men and women feel so deeply that sense of common purpose and responsibility? Police officers in Egypt or Syria today are also highly trained, but guess what -- they don’t act this way. Quite to the contrary, by all accounts they are behaving in a diametrically opposite way. And the highly trained police in Nazi Germany and the Soviet Union did not rise to the aid of others in this way – far from it. They put their training to different, and darker, uses.
No, in the end, what struck me about the acts of valor that we will be hearing about tonight is they are the acts of a free people, living in a democracy that calls on all of us to participate and all of us, in effect, to rule ourselves, putting us to that highest test. They are the acts of people living in a democracy that operates under the protection of a law – our Constitution – that holds us all equal in our rights and equal in our obligations to others, a law that in this country guides us in our day-to-day lives, not just in our courts.
These men and women acted as they did because of their incredible character and intense training, yes. But they also acted in this noble way because they are Americans, who feel and understand reflexively that they themselves are responsible for their communities, and who know in the very marrow of their bones that upon each of them and each of us depends the success or failure of this great experiment in democracy and freedom that we call the United States of America.
We live in a time of great conflict and discord in the nation’s politics, and it is easy to get a little disheartened about the future of our public life. But reading these awards leaves no doubt that the future of our great national experiment is in very good hands. These men and women show us we have nothing to fear. And they give us something priceless: When the day does arrive for each of us when that first question is called: “Will I act so bravely?” we have their real, living example urging us on.
So, in closing, let me say this: Thank you – both to the award winners here tonight, whose contributions have been frankly astonishing, but also to all their family members here, who are the rock on which these men and women depend. My particular thanks and deepest best wishes go to the family of Special Agent Knapp, who is honored tonight and who lost his life in order to save others. And finally, let me also thank all the members of law enforcement in attendance. Thank you not only for the work you do, and the bravery you show, but for the light you hold up showing all of us as Americans what free men and free women can do.
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Federal Jury Convicts Martinez Man for Attempting Online Enticement of A Minor and Destruction of EvidenceRead the Press Release
AUGUSTA, GA – Fawad Shah Syed, 47, of Martinez, Georgia, was convicted on Wednesday by a federal jury after a 2-day trial before U.S. District Court Judge J. Randal Hall for the Attempted Online Enticement of a Minor to Engage in Sexual Activity, Destruction of Records in a Federal Investigation, and Attempted Destruction of Records in a Federal Investigation.
United States Attorney Edward Tarver said, “This defendant was convicted of engaging in inappropriate communications with a girl whom he believed to be 14 years old in order to engage in illicit sexual conduct, and destroying evidence related to that charge. The online solicitation of minors for sexual purposes is deplorable, and the U.S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. Syed’s conviction will help protect our children from such future predatory acts.”
Evidence presented during the trial revealed that Syed, posing as a man in his twenties named “Daniel,” engaged in online communications with a person he believed to be a 14-year-old girl who he initiated contact with online. After four days of text messaging and several attempts to meet the girl, Syed showed up at what he believed to be the girl’s residence with condoms and alcohol. He was immediately arrested by law enforcement officers. Shortly thereafter, he contacted his wife from jail, and before telling her what charges he faced, instructed her to delete his email account and remotely wipe his phone. He also asked her to wipe his computer. Mrs. Syed cooperated with law enforcement thereafter, providing an investigator with Defendant’s computer and testifying at trial. Syed’s computer was searched, and revealed online texts that the Defendant had last summer with a 13-year-old girl.
Syed faces up to life in prison, a fine of up to $250,000, and between 5 years and life of supervised release for the enticement charge. He also faces up to 10 years in prison for each destruction of evidence charge. Syed remains in custody pending his sentencing hearing. A sentencing date will be scheduled following completion of a presentence investigation and report.This prosecution was the result of a joint investigation of the Richmond County Sheriff’s Office and the FBI’s Computer Crime Child Exploitation Task Force. This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U.S. Attorney’s Branch Office and Project Safe Childhood Coordinator, is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Federal Jury Convicts Jeffrey Scott Braden of Meth Manufacturing Conspiracy Charge and Related OffensesRead the Press Release
Braden was the only defendant of 42 indicted to go to trial
KNOXVILLE, Tenn. - Following a three-day trial in U.S. District Court, Knoxville, a jury convicted Jeffrey Scott Braden of Lake City, Tenn., of conspiracy to manufacture 50 grams or more of methamphetamine, possession of equipment, chemicals, products and materials which may be used to manufacture methamphetamine and possession of ammunition by a previously convicted felon. Braden was one of 42 individuals indicted in the meth manufacturing conspiracy, and the indictment followed a long-term investigation designed to address the fact that Anderson County was the leading county in the state of Tennessee in meth lab seizures. Thirty-eight other individuals have pleaded guilty, two others have signed plea agreements which are on file with the court, and one defendant remains a fugitive. The initiative was named “Operation Meth-odical Destruction.”
Sentencing is set for 2:00 p.m., Feb. 20, 2014, in U.S. District Court in Knoxville, Tenn., before The Honorable Judge Thomas A. Varlan, Chief U.S. District Judge. Braden faces a sentence of life in prison without the possibility of parole because he has several prior felony drug convictions.
The evidence presented at trial included Braden’s confessions to repeatedly manufacturing methamphetamine, testimony about seized chemicals and meth lab components in which Braden was a “cook,” testimony of co-conspirators, and proof of his prior criminal history as a convicted felon.
After the verdict was returned, U.S. Attorney William Killian said, “There was a large-scale meth manufacturing problem in Anderson County, and federal, state and local law enforcement agencies teamed up to combat it. It has been addressed. This conviction and the life sentence which Braden faces serves as a lesson to anyone in this district that serious punishment awaits those who repeatedly manufacture methamphetamine.”
Law enforcement agencies participating in the joint investigation which led to the indictment and the subsequent conviction of Braden included the Drug Enforcement Administration, Anderson County Sheriff’s Department and Tennessee Bureau of Investigation. Assistant U.S. Attorney David P. Lewen, Jr., represented the United States at trial.
Federal Inmate Sentenced to 20 Additional Years for Assault on Prison StaffRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Four Others Appear for Pleas and Sentencing
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that a federal prisoner will serve an additional 20 years of time as a result of his attack on officials at a prison in Preston County, West Virginia.
TARVIS LEVITICUS DUNHAM, age 42, a former inmate at the United States Penitentiary in Hazelton, West Virginia, was sentenced to 240 months imprisonment to run consecutive to the 300-month sentence he is currently serving. DUNHAM was convicted on January 29, 2013, after a six-day trial on one count of “Obstructing Justice by Retaliating Against a Witness,” and five counts of “Assaulting, Resisting and Impeding Certain Officers or Employees of the Bureau of Prisons.” Trial evidence indicated that in 2011 DUNHAM attempted to retaliate against a case manager for producing a record and document during disciplinary proceedings conducted by the Bureau of Prisons relating to an incident that occurred the year befere. DUNHAM forcibly assaulted the case manager and when other Correctional Officers attempted to restrain DUNHAM, he forcibly assaulted them by kicking and biting them. He also refused to comply with their orders before they were able to restrain and handcuff him. DUNHAM was transferred to another United States Penitentiary that same day. A week after the incident, the staff at USP Lee recorded a telephone call between DUNHAM and his mother where DUNHAM told his mother that he “about near killed that woman.”
This case was prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Federal Bureau of Investigation and the Special Investigative Services Unit at USP Hazelton.GARY MOORE, age 37, an inmate at USP Hazelton, entered a plea of guilty to “Possession of a Prohibited Object” when staff at the satellite camp at USP Hazelton found a cell phone during a random search. MOORE was sentenced to 3 months imprisonment to run consecutive to his current 199-month sentence.
SEAN WILLIAMS, age 35, an inmate at USP Hazelton, entered a plea of guilty to “Indecent Exposure.” BATTLE was sentenced to 90 days imprisonment to run consecutive to the 188-month sentence that he is already serving.
ALBERT MEIER, age 24, an inmate at USP Hazelton, entered a plea of guilty to “Possession of a Prohibited Object” when staff at USP Hazelton observed MEIER talking on a cell phone. MEIER ignored commands from staff and attempted to run, with the staff eventually finding the cell phone in his pants. MEIER faces up to 1 additional year of imprisonment.
The MOORE, WILLIAMS and MEIER cases were prosecuted by Assistant United States Attorney Flower and investigated by the Special Investigative Services Unit at USP Hazleton.
DAVID SOKOLOWSKI, age 42, of Point Marion, Pennsylvania, was sentenced to six days imprisonment for “Assault of a VA Police Officer” on February 15, 2012, at the Louis A. Johnson VA Medical Center. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by VA Police.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the September 2013 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.Clemente Aquino-Guzman. Possession of Methamphetamine with Intent to Distribute and Illegal Alien in Possession of a Firearm. Aquino-Guzman, 34, is accused of possessing methamphetamine with intent to distribute and possession of a firearm by an illegal alien. If convicted Aquino-Guzman faces a maximum penalty of 20 years imprisonment, forfeiture of the firearm, and a $1,000,000 fine. The Federal Bureau of Investigation and Muskogee (Creek) Nation Lighthorse Tribal Police Department are the investigative agencies.
Mario Beltran. Felon in Possession of Firearms and Ammunition and Possession of Marijuana with Intent to Distribute. Beltran, 32, of Tulsa, is accused of possessing a Sterling Arms .22 caliber pistol, a Jimenez Arms 9mm pistol, and forty-six rounds of ammunition after two prior felony convictions. He is also charged with possession of marijuana with intent to distribute. If convicted, Beltran faces a maximum sentence of 10 years in prison for the firearms count, 5 years in prison for the marijuana with intent to distribute count, forfeiture of the firearms and ammunition, and a fine of up to $250,000 per count. This case was investigated by the Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael W. Couch. Embezzlement from a Labor Organization. Couch, 43, of Broken Arrow, is accused of embezzling $12,852.47 between January 2007 to March 2010 from the Sheet Metal Workers Local 270 Union where he served as business manager/financial secretary-treasurer. If convicted, Couch faces a maximum imprisonment of 5 years and a fine up to $250,000. The Department of Labor is the lead agency.
Jessica Jo Glore. Unlawful User of a Controlled Substance in Possession of a Firearm and Ammunition. Glore, 27, of Tulsa, is accused of possessing a Cobra .380 pistol and ammunition. If convicted, Glore faces a maximum 10 years imprisonment, forfeiture of the firearm and ammunition, and up to a $250,000 fine. The Federal Bureau of Investigation is the lead agency.
Freddie Allen Hayes. Felon in Possession of Firearms and Ammunition. Hayes, 28, of Tulsa, is accused of possessing a Cobra .380 caliber pistol, Mossberg 20 gauge shotgun, and ammunition after prior felony convictions for possession and distribution of cocaine and aggravated battery. If convicted, Hayes faces a maximum penalty of 10 years imprisonment, forfeiture of the firearms and ammunition, and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the lead agency.
Sharon Hopper. Theft of Government Property. Hopper, 68, of Hominy, is accused of stealing approximately $14,828 in Supplemental Security Income (SSI) from the Social Security Administration from February 2010 to December 2011. If convicted, Hopper faces a maximum penalty of 10 years imprisonment and a $250,000 fine. The Office of the Inspector General, Social Security Administration is the lead agency.
Brian Lee Larkins. Receipt and Transportation of a Firearm While Under Indictment, Possession of an Explosive While Under Indictment, and Possession of Methamphetamine with Intent to Distribute. Larkins, 40, of Tulsa, is charged with receipt and transportation of a Fegyver es Gepgyar .038 caliber pistol and possession of 305 meters of Primacord while under indictment, and possession of methamphetamine. Primacord is a detonating cord used with explosives. If convicted of Counts 1-2, Larkins faces a maximum penalty of 10 years imprisonment, forfeiture of the firearm and wire, and/or up to $250,000 fine. If guilty of Count 3, Larkins faces a maximum penalty of 20 years imprisonment and/or a $1,000,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Federal Bureau of Investigation are the lead investigative agencies.
Domingo Pablo Lence-Perea. Drug Conspiracy and Posessession of Methamphetamine with Intent to Distribute. Lence-Perea, 58, of Kaufman, Texas, is accused of drug conspiracy and possession of 500 grams or more of Methamphetamine with intent to distribute. If convicted, Lence-Perea faces a minimum 10 years to life imprisonment, forfeiture of at least $96,200, and/or up to a $10,000,000 fine. The Drug Enforcement Administration is the lead agency.
Juan Luis Moreno-Cardoso. Alien in the United States After Deportation. Moreno-Cardoso, 27, was arrested in Tulsa County and charged with having returned to the United States unlawfully after being deported in May 2012 near Del Rio, Texas. If convicted, Moreno-Cardoso faces a maximum 20 years imprisonment and/or fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency.
Tonni Mulrain-Williamson. Assault on Government Employee While in Performance of Duties. Mulrain-Williamson, 36, of New York, New York, is charged with physical assault of an United States Postal Service employee at the Northeast Station located in Tulsa while the employee was performing official duties. If convicted, Mulrain-Williamson faces a maximum penalty of 8 years imprisonment and a fine up to $250,000. The United States Postal Inspections Service is the lead agency.
Patricia Perez Cano. Alien in the United States After Deportation. Perez Cano, 39, was arrested in Tulsa County and charged with having returned to the United States unlawfully after being deported in September 2011 near Del Rio, Texas. If convicted, Perez Cano faces a maximum of 20 years imprisonment and/or fine up to $250,000. The U.S. Immigration and Customs Enforcement is the lead agency of this case.
Shelly Roanhorse. False Statement. Roanhorse, 47, of Broken Arrow, is accused of providing falsified information on Form LM-3 Labor Organization Annual Report on behalf of the American Federation of Government Employees Local 3601. Roanhorse served as the Local 3601 treasurer and between April 2011 and June 2012 is accused of embezzling at least $4,840. If convicted, Roanhorse faces a maximum imprisonment of 5 years and a fine up to $250,000. The Department of Labor is the lead agency.
Christine Sawyer. Theft of Government Property. Sawyer, 50, of Oilton, is accused of stealing $4,900 in Social Security Supplemental Income (SSI) from the Social Security Administration (SSA) from July 2011 to September 2012. If convicted, Sawyer faces a maximum penalty of 10 years imprisonment and a $250,000 fine. The Office of the Inspector General, Social Security Administration is the lead agency in this case.
Ronald Everett Spivey and Kimberly Marie Haven. Coercion and Enticement of a Minor, Sex Trafficking of Children, and Interstate Trafficking and Racketeering. Spivey, 47, of Oklahoma City, and Haven, 27, are accused of working together in a sex trafficking business with the intent to recruit and prostitute children under the age of 17 years. Spivey is also charged with enticing and coercing a female, whom he believed to be 17 years of age, to engage in prostitution in another state. If convicted, Spivy would face a minimum of 10 years imprisonment and up to $500,000 fine, and Haven would face a maximum of 5 years imprisonment and up to $250,000 fine. The Tulsa Police Department is the lead agency.
Darlene Washington. Theft of Government Property. Washington, 61, of Bristow, is accused of stealing approximately $71,925 in Social Security Supplemental Income (SSI) from the Social Security Administration (SSA) from June 2007 to November 2011. If convicted, Washington faces a maximum penalty of 10 years imprisonment and a $250,000 fine. The Office of the Inspector General, Social Security Administration is the lead agency.
Brandon G. Watters. Willfully Making a Threat Concerning Explosive Materials. Watters, 29, of Columbia, Tennessee, is charged with threatening to bomb the Miami Nation Enterprises Building in Miami, Oklahoma in July 2013. If convicted, Watters faces a maximum penalty of 10 years imprisonment and a $250,000 fine. The Bureau of Indian Affairs is the investigative agency.
Angela G. Webster. Embezzlement from a Labor Organization. Webster, 36, of Tulsa, is accused of embezzling at least $13,015.39 from Carpenters Local Union 943 where she served as the office secretary with financial duties from May 2010 to March 2011. If convicted, Webster faces a maximum penalty of 5 years imprisonment and a fine up to $250,000. The Department of Labor is the lead agency.
Christopher Weigers. Attempted Arson and Interstate Transportation in Aid of Racketeering Enterprise (ITAR). Weigers, 39, of Catoosa, is accused of attempted arson and interstate transportation in aid of racketeering enterprise. If convicted of the attempted arson charge, Weigers faces a minimum of 5 years up to 20 years imprisonment and a $250,000 fine. If convicted of the ITAR charge, the maximum penalty is 5 years imprisonment and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Fire Department are the lead investigative agencies.Federal Escapee Pleads Guilty to EscapeRead the Press Release
And The Robbery Of Dunmore Bank
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Romeal Price, age 36, of Brooklyn, New York, pleaded guilty Thursday to escape and bank robbery before Senior United States District Court Judge James M. Munley.
According to United States Attorney Peter J. Smith, Price appeared in Federal Court in Scranton and admitted escaping from the Catholic Social Services Residential Reentry Center on June 18, 2013. At the time, he was serving the remaining few months of a 15-year federal prison sentence from 2001. Price further admitted that 10 days later while a fugitive, he robbed the Pennstar Bank, 1230 O’Neill Highway, Dunmore, Pennsylvania, of approximately $11,000. Following the robbery, Price fled to New York City. On July 17, 2013, deputies of the United States Marshals Service arrested Price in a New York City apartment without incident.
The case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Dunmore Police Department. The case is being prosecuted by Assistant U.S. Attorney John Gurganus.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 25 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Father and Son Plead Guilty to Million-Dollar Bulk Mail Fraud Through New Jersey-Based International Mailing CompanyRead the Press Release
NEWARK, N.J. – The father and son operators of Clevett Worldwide Mailers LLC, a Succasunna, N.J., bulk mailing house, today admitted to defrauding clients of more than $1 million through a fraudulent bulk-mailing scheme in which they shredded millions of pieces of mail rather than delivering them, U.S. Attorney Paul J. Fishman announced.
Harold Clevett, 68, of Middlesex, N.J., and Mark Clevett, 37, of Randolph, N.J., pleaded guilty before U.S. District Judge Kevin McNulty to one count of conspiracy to commit wire fraud charged in an indictment against them.
According to documents filed in this case and statements made in court:
Mark Clevett owned, and both Clevetts operated, Clevett Worldwide Mailers, which contracted with international and domestic customers to handle large mailings. Customers sent their mail jobs to Clevett Worldwide Mailers for sorting, addressing and delivery to the post office. The company received fees from their customers for each piece of mail and for the total weight of the mail that it handled.
During their guilty plea proceedings, both father and son admitted that rather than sending their clients’ mail as contracted, they directed their employees to throw away all or part of it, and even called in a shredding company to destroy unsent mail.
Mark and Harold Clevett also acknowledged they charged their customers for the full amount of the mailings, even sending some of their customers fraudulent postal forms to make it appear as though the mailings were delivered. The pair admitted that between 2007 and June 2011, they discarded and shredded nearly 3 million pieces of customer mail and reaped nearly $1 million in illicit profits.
The wire fraud conspiracy charge to which the Clevetts pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Sentencing for both defendants is scheduled for Dec. 18, 2013.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s pleas.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Michael Robertson of the U.S Attorney’s Office in Newark.
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Defense counsel:
Harold Clevett: Brian J. Neary Esq., Hackensack, N.J.
Mark Clevett: Don Larsen Esq., Montville, N.J.
Clevett, Harold and Mark Indictment
Equality Woman Sentenced to 7 Years in Prison for Methamphetamine Manufacturing Related OffenseRead the Press Release
Jeanette L. Margenthaler, 42, of Equality, Illinois, was sentenced today in United States District Court in Benton to 7 years in prison for unlawfully possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Margenthaler pled guilty to an indictment charging her with that offense on May 16, 2013. The indictment alleged that the offense occurred in Saline County on January 8th.
In addition to the 7 year term of imprisonment, Margenthaler was ordered to pay the United States fines and special assessments totaling $300 and was placed on a 3 year term of supervised release to follow her incarceration. Under federal law, parole has been abolished meaning that Margenthaler will be required to serve at least 85% of her sentence.
Margenthaler, who has been held without bond since her arrest February 8th, was again remanded to the custody of the United States Marshal to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the Gallatin County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Eight Individuals Sentenced in Federal CourtRead 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
Six given prison sentences for drug convictions
ELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II announced that eight individuals recently appeared in Federal Court in Elkins for sentencing.
WILLIAM TRENT RICHARDSON, age 21, of French Creek, West Virginia, was sentenced to 74 months imprisonment, three years of supervised release and a fine of $3,000 for “Maintaining a Drug-Involved Premise” from February 2 to September 13, 2012, to manufacture, store, distribute and use methamphetamine. The Court also ordered RICHARDSON to make restitution in the amount of $2,496 to the Drug Enforcement Administration for the clean-up of the methamphetamine lab.
DANIEL RAY PHARES, age 44, of Elkins, was sentenced to 70 months imprisonment and three years of supervised release for “Manufacturing Marijuana.” The Court also ordered the forfeiture of $950.01 as proceeds of the illegal activity, as well as a .22 rifle and ammunition.
ALAN LEE STANLEY, age 33, of Buckhannon, West Virginia, was sentenced to 57 months imprisonment and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.”
MICHELLE LEE STOCKING, age 23, of Moorefield, West Virginia, was sentenced to 51 months imprisonment and two years of supervised release for “Possession of Materials Used in the Manufacturing of Methamphetamine.”
KAYLA LYNN EVANS, age 39, of Moorefield, was sentenced to 41 months imprisonment and three years of supervised release for “Possession of Materials Used in the Manufacturing of Methamphetamine.”
SHALAE STUDER, age 22, of Elkins, was sentenced to 33 months imprisonment and three years of supervised release for “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.”
KYLE LEE HEFT, age 35, of Mahoney City, Pennsylvania, was sentenced to 10 months imprisonment and 20 years of supervised release for “Failure to Update Sex Offender Registry.”
RICHARDSON, PHARES, STANLEY, STOCKING, EVANS, STUDER and HEFT were remanded to the custody of the United States Marshal pending designation to a Federal institution.
RICHARD MAURICE HADDIX, age 33, of Elkins, was sentenced to 5 years probation for “Wire Fraud.” The Court also ordered HADDIX to pay restitution in the amount of $102,260.
These cases were prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia State Police; Upshur County Sheriff’s Department; Elkins Police Department; Randolph County Sheriff’s Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Buckhannon Police Department; Moorefield Police Department; the Potomac Highlands Drug and Violent Crimes Task Force consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations; the United States Forest Service Law Enforcement; and the Northern District of West Virginia and the Middle District of Pennsylvania United States Marshals Service.East St. Louis Man Sentenced for Narcotics and Firearms OffensesRead the Press Release
Lee H. Grinston, 27, of East St. Louis, was sentenced in U.S. District Court to 63 months in federal prison on September 6, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On May 17, 2013, Grinston pled guilty to charges of Possession With Intent to Distribute Crack Cocaine, Distribution of Crack Cocaine (two counts), Felon in Possession of a Firearm, and Possession of a Firearm With an Obliterated Serial Number.
All of the charges against Grinston arose from his arrest in the 800 block of 32nd Street in East St. Louis on April 3, 2012. At his change of plea hearing last May, Grinston admitted that he had sold crack cocaine twice on April 3, 2012, and that he had an additional 10 grams of crack cocaine in his possession when he was arrested. Grinston also admitted that he possessed a handgun with an obliterated serial number on April 3, 2012, and that he is a convicted felon.
The investigation which resulted in Grinston’s arrest and conviction was conducted by the Metropolitan Enforcement Group of Southern Illinois (MEGSI).
The case is assigned to Assistant United States Attorney Robert L. Garrison.
District Man Sentenced to 22 Years in Prison for Two Attacks, Including One That Ended in Murder-Crimes Took Place over Three-Day Period in 2010-Read the Press Release
WASHINGTON – Monquel Cook, 23, of Washington, DC, was sentenced today to a 22-year prison term for his role in the killing of a man during a robbery, as well as a separate attempted robbery of two other men, U.S. Attorney Ronald C. Machen Jr. announced.
Cook pled guilty in April 2013, in the Superior Court of the District of Columbia, to one count of second-degree murder while armed and two counts of assault with intent to rob. The plea, which was contingent upon the Court’s approval, called for a sentencing range of 14 to 22 years of incarceration. The Honorable John Ramsey Johnson accepted the plea today and sentenced Cook to the 22-year term. Upon completion of his prison term, Cook will be placed on five years of supervised release.
According to the government’s evidence, the first of the two attacks occurred on Aug. 19, 2010. At about 11:30 p.m., Cook and his cousin, Jovon Clay, entered an apartment in the 2300 block of Good Hope Road SE. The men were familiar with a female occupant of the apartment, and they entered with the intent to rob anyone inside. Once inside the apartment, Clay brandished a 9mm handgun and demanded that a man who was there give them his belongings.
The male refused, however, and was able to get Cook in a headlock. At this time, another man entered the apartment. Clay took this man to the couch, had him lie face down, and searched his pockets. Clay then returned to the other victim, who still had Cook in a headlock. Cook screamed for Clay to shoot the victim, and Clay fired multiple rounds, hitting the man in the leg. Cook then searched the man’s pockets for money, but found none. Both Cook and Clay then fled the apartment.
The murder took place at about 6:30 p.m. on Aug. 22, 2010, Cook and Clay decided to rob the victim, Michael Wilson, 47, whom they believed had a large amount of cash and narcotics in his home. The two men waited for Wilson inside Wilson’s building located in the 4200 block of South Capitol Street SE. When Wilson returned home, the two men forced their way into the apartment. Clay had the same 9mm firearm used in the Aug. 19 crimes, and pointed it at Mr. Wilson. Cook, meanwhile, searched the apartment for money and/or narcotics.
While Cook started looking around the apartment, Mr. Wilson approached Clay and began a struggle with him, during which Clay dropped the firearm. Cook ran over and joined the fight. During the struggle, Mr. Wilson was shot several times. Also during the struggle, Cook was grazed behind his ear by either a bullet or a bullet fragment. After shooting Mr. Wilson, Cook and Clay fled the apartment.
Mr. Wilson struggled out of his apartment to the front door of his building, where he collapsed, and he died a short time later. Cook and Clay stopped a short distance away to call for an ambulance. Cook told police that he had been shot while walking in an alley; however, swabbings of blood found outside of Mr. Wilson’s door and leading to a trail in the rear of the building matched the DNA profile obtained from the Cook’s swab sample.
Clay, 21, of Washington, D.C., earlier pled guilty to charges of second-degree murder, assault with intent to rob while armed, and conspiracy to distribute narcotics.
In announcing the sentence, U.S. Attorney Machen commended the Metropolitan Police Department for its work on the investigation. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Marcia Rinker. Finally, he commended the work of Assistant U.S. Attorneys Jeffrey Pearlman, who investigated and indicted the case, and Michelle Bradford who prosecuted the case after indictment.
13-308District Man Sentenced to 22 Years in Prison for Two Attacks, Including One That Ended in Murder-Crimes Took Place over Three-Day Period in 2010-Read the Press Release
WASHINGTON – Monquel Cook, 23, of Washington, DC, was sentenced today to a 22-year prison term for his role in the killing of a man during a robbery, as well as a separate attempted robbery of two other men, U.S. Attorney Ronald C. Machen Jr. announced.
Cook pled guilty in April 2013, in the Superior Court of the District of Columbia, to one count of second-degree murder while armed and two counts of assault with intent to rob. The plea, which was contingent upon the Court’s approval, called for a sentencing range of 14 to 22 years of incarceration. The Honorable John Ramsey Johnson accepted the plea today and sentenced Cook to the 22-year term. Upon completion of his prison term, Cook will be placed on five years of supervised release.
According to the government’s evidence, the first of the two attacks occurred on Aug. 19, 2010. At about 11:30 p.m., Cook and his cousin, Jovon Clay, entered an apartment in the 2300 block of Good Hope Road SE. The men were familiar with a female occupant of the apartment, and they entered with the intent to rob anyone inside. Once inside the apartment, Clay brandished a 9mm handgun and demanded that a man who was there give them his belongings.
The male refused, however, and was able to get Cook in a headlock. At this time, another man entered the apartment. Clay took this man to the couch, had him lie face down, and searched his pockets. Clay then returned to the other victim, who still had Cook in a headlock. Cook screamed for Clay to shoot the victim, and Clay fired multiple rounds, hitting the man in the leg. Cook then searched the man’s pockets for money, but found none. Both Cook and Clay then fled the apartment.
The murder took place at about 6:30 p.m. on Aug. 22, 2010, Cook and Clay decided to rob the victim, Michael Wilson, 47, whom they believed had a large amount of cash and narcotics in his home. The two men waited for Wilson inside Wilson’s building located in the 4200 block of South Capitol Street SE. When Wilson returned home, the two men forced their way into the apartment. Clay had the same 9mm firearm used in the Aug. 19 crimes, and pointed it at Mr. Wilson. Cook, meanwhile, searched the apartment for money and/or narcotics.
While Cook started looking around the apartment, Mr. Wilson approached Clay and began a struggle with him, during which Clay dropped the firearm. Cook ran over and joined the fight. During the struggle, Mr. Wilson was shot several times. Also during the struggle, Cook was grazed behind his ear by either a bullet or a bullet fragment. After shooting Mr. Wilson, Cook and Clay fled the apartment.
Mr. Wilson struggled out of his apartment to the front door of his building, where he collapsed, and he died a short time later. Cook and Clay stopped a short distance away to call for an ambulance. Cook told police that he had been shot while walking in an alley; however, swabbings of blood found outside of Mr. Wilson’s door and leading to a trail in the rear of the building matched the DNA profile obtained from the Cook’s swab sample.
Clay, 21, of Washington, D.C., earlier pled guilty to charges of second-degree murder, assault with intent to rob while armed, and conspiracy to distribute narcotics.
In announcing the sentence, U.S. Attorney Machen commended the Metropolitan Police Department for its work on the investigation. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane and Victim/Witness Advocate Marcia Rinker. Finally, he commended the work of Assistant U.S. Attorneys Jeffrey Pearlman, who investigated and indicted the case, and Michelle Bradford who prosecuted the case after indictment.
13-308District Man Pleads Guilty to Armed Robbery Outside Restaurant-Security Footage and Citizens’ Tips Helped Lead Police to Defendant-Read the Press Release
WASHINGTON - James E. Wade, 30, of Washington, D.C., pled guilty today to an armed robbery charge stemming from a hold-up that took place last spring outside a Northwest Washington restaurant, U.S. Attorney Ronald C. Machen Jr. announced.
Wade pled guilty in the Superior Court of the District of Columbia. He is to be sentenced Nov. 7, 2013 by the Honorable Robert I. Richter. He faces a statutory maximum of 30 years in prison.
According to the proffer of evidence, signed by the defendant as well as the government, on May 17, 2013, at approximately 9:20 p.m., the two victims were dining at a table in front of a restaurant in the 1400 block of 12th Street NW when Wade approached them. He was brandishing what appeared to be a handgun. Wade demanded the victims’ property, and the two men turned over their cash, wallet, and cell phone. After taking the property, Wade fled.
Footage from the restaurant’s security camera was released to the public through various media outlets, along with a number for the Metropolitan Police Department (MPD). The police received many calls from citizens on the tip line identifying the suspect in the video as Wade. Others who were familiar with Wade also identified him as the perpetrator of the robbery. On June 8, 2013, police officers located Wade and placed him under arrest.
U.S. Attorney Machen expressed his appreciation to those who investigated the case for the MPD as well as the citizens who came forward with information. He also commended the work of Assistant U.S. Attorney Scott Sroka, who investigated and prosecuted the case.
13-307District Man Pleads Guilty to Armed Robbery Outside Restaurant-Security Footage and Citizens’ Tips Helped Lead Police to Defendant-Read the Press Release
WASHINGTON - James E. Wade, 30, of Washington, D.C., pled guilty today to an armed robbery charge stemming from a hold-up that took place last spring outside a Northwest Washington restaurant, U.S. Attorney Ronald C. Machen Jr. announced.
Wade pled guilty in the Superior Court of the District of Columbia. He is to be sentenced Nov. 7, 2013 by the Honorable Robert I. Richter. He faces a statutory maximum of 30 years in prison.
According to the proffer of evidence, signed by the defendant as well as the government, on May 17, 2013, at approximately 9:20 p.m., the two victims were dining at a table in front of a restaurant in the 1400 block of 12th Street NW when Wade approached them. He was brandishing what appeared to be a handgun. Wade demanded the victims’ property, and the two men turned over their cash, wallet, and cell phone. After taking the property, Wade fled.
Footage from the restaurant’s security camera was released to the public through various media outlets, along with a number for the Metropolitan Police Department (MPD). The police received many calls from citizens on the tip line identifying the suspect in the video as Wade. Others who were familiar with Wade also identified him as the perpetrator of the robbery. On June 8, 2013, police officers located Wade and placed him under arrest.
U.S. Attorney Machen expressed his appreciation to those who investigated the case for the MPD as well as the citizens who came forward with information. He also commended the work of Assistant U.S. Attorney Scott Sroka, who investigated and prosecuted the case.
13-307Defendant Sentenced for Role in Fast Food Business RobberyRead the Press Release
A Detroit resident was sentenced today to 9 ½ years’ imprisonment for charges involving armed robbery and possession of a firearm in furtherance of a violent crime, United States Attorney Barbara L. McQuade announced today. Ms. McQuade was joined in the announcement by Acting Special Agent in Charge John Robert Shoup, of the Federal Bureau of Investigation.
Jamal Muhammad, 29, of Detroit, was sentenced today by U.S. Chief District Court Judge Gerald E. Rosen after previously pleading guilty on May 3, 2013. Muhammad received two and a half years for robbing the Hungry Howies Pizzeria in Ferndale, Michigan, to be followed by a mandatory minimum seven years consecutive sentence for the possession of the firearm in furtherance of the robbery offense.
During 2008, there were a rash of robberies of fast food establishments in Detroit and its surrounding suburbs of Oak Park, Ferndale, Dearborn, and Redford. The businesses included a Subway, several Little Caesars, a Hungry Howies, a Long John Silvers, and a Wendy's to name a few. Guns were usually brandished during the robberies which typically involved two armed robbers entering the establishment, pulling firearms, and demanding cash from the registers and/or safe while an accomplice waited outside in the getaway vehicle. On one occasion the patrons inside a Wendy's restaurant, located in Detroit at Livernois and Eight Mile Road, were robbed of their personal possessions too. The police agencies in these respective cities noted similarities between the various robberies including the manner of dress of the robbers. There were two unique "hoodies" worn during the robberies. One had a skeletal-like design on the chest area, and the other had a web-like design on its chest area. Hence, law enforcement dubbed them the "Spiderman Crew." In addition, the hood of each hoodie zipped from the back portion of the hood all the way down below the front chest portion. Each hoodie, once zipped, had a built in mask that enclosed and hid the wearer's face behind a built-in dark mesh material.
Muhammad was not a participant in the Wendy's robbery mentioned above, which was the final robbery of the group. However, two group members arrested following the Wendy’s robbery were also involved in the Hungry Howie’s robbery with Muhammad. The robbery participants were apprehended in Detroit, while in possession of the hoodies and the robbery proceeds, after a brief chase and traffic stop moments after the Wendy’s robbery. The robbers present inside the getaway vehicle were Elisha Whitehead, Anthony Sampson, and Elan Andrews. Whitehead pleaded guilty to robberies of the Detroit Wendy’s, the Ferndale Hungry Howie’s, a Dearborn Little Caesar’s and a Detroit Long John Silver’s. Sampson pleaded guilty to robberies of the Detroit Wendy’s, a Detroit Popeye’s and a Ferndale Subway. Both are awaiting sentencing, while Andrews is awaiting an October trial date for robberies of the Detroit Wendy’s, Ferndale Hungry Howie’s, a Ferndale Subway and Little Caesar’s restaurants in Oak Park, Redford and Dearborn.
The case was the result of multi-agency cooperation between the Federal Bureau of Investigation, the Oakland County Sheriff’s Department, the Michigan State Police, the Oak Park Police, the Ferndale Police, the Dearborn Police, the Redford Police, the Detroit Police Department, and the Wayne County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorney Terrence R. Haugabook with collaboration from Assistant Wayne County Prosecutor Joe Jansen.Defendant in Los Zetas Money Laundering Case, His Son, and A Business Associate Charged with Attempting to Bribe A Federal JudgeRead the Press Release
Federal authorities have charged 52-year-old Veracruz, Mexico businessman Francisco Colorado Cessa, his son, 25–year-old Francisco Colorado Cessa, Jr., and a business associate, 52–year-old Ramon Segura Flores for attempting to bribe a federal judge announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez, San Antonio Division.
On May 9, 2013, a federal jury convicted Colorado Cessa of conspiring to commit money laundering for his role in a complex scheme to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States. Yesterday afternoon, Colorado Cessa was sentenced to the statutory maximum of 20 years in federal prison.
A federal criminal complaint filed yesterday charges Colorado Cessa, Colorado Cessa, Jr. and Segura Flores with conspiracy to bribe a federal judge. The complaint alleges that over the past couple of months the defendants conspired to pay a $1.2 million bribe to a federal judge in order to secure a reduced sentence for Colorado Cessa. According to the criminal complaint, at no time before or during this investigation was the judge involved in the alleged criminal activity.
“We have said from the beginning that this case represents our commitment to keep the violence and corruption associated with Mexican drug cartels out of the United States. The sentences handed down yesterday emphasize our determination to seek the most severe penalties for importing the brand of corruption that has become endemic in Mexico. The latest allegation, if proven, demonstrates that individuals associated with the most violent drug cartel believe that they can corrupt what we hold as the bedrock of American justice – the United States Courts. This community should rest assured that we will stop at nothing to send the message that we are one step ahead of them and if they continue to try to function as they do in Mexico, we will find them, we will stop them, and we will do whatever it takes to ensure that they are punished to the full extent of the law,” stated United States Attorney Robert Pitman.
FBI agents arrested Colorado Cessa, Jr., and Segura Flores yesterday evening without incident. All three remain in federal custody at this time. Initial appearances are scheduled for 2:00 pm this afternoon before United States Magistrate Judge Andrew Austin in Austin.
Upon conviction, the defendants face up to five years in federal prison and a maximum $250,000 fine. This case is being investigated by the FBI.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Crowley Man Sentenced to 84 Months in Prison for Transporting Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Tylerton James Clement, 20, of Crowley, La., was sentenced to 84 months in prison and five years of supervised release by U.S. District Court Judge Richard T. Haik for making a video of minors having sex and transporting the file. He is also required to register as a sex offender.
According to the evidence presented at the guilty plea, two other males, under the age of 18, picked up two 13-year-old females on April 3, 2011 and gave them drugs. The males then took the girls to a hotel in Crowley where they engaged in sex acts while the girls were under the effects of the drugs. Clement arrived at the hotel some time later and made a video of the sexual acts with his phone. He admitted to being 18 years old at the time that the video was made and admitted to transporting the video to Texas. Clement pleaded guilty on January 7, 2013.
“This defendant engaged in despicable behavior and abused two minors,” Finley said. “At the time of this incident, Clement was 18, old enough to know that he shouldn’t use his cellphone to video sex acts with children. This sentence should serve as a deterrent to anyone who is thinking about taking advantage of or sexually exploiting children. My office along with our federal, state and local partners will continue to investigate and prosecute these cases; we are going to do everything that we can to protect the children of this District”
“Recording the rape of drugged children is an abhorrent crime, demonstrating a complete lack of conscience or empathy by the defendant,” said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. “HSI and our law enforcement partners are engaged in a full court press across the United States and around the world to stop the sexual exploitation of children. This defendant will have many years to spend in prison thinking about his crime and the pain he so selfishly caused others.”
“I applaud the efforts of the entire investigative and prosecutive team for bringing swift justice to this individual who engaged in such outrageous exploitative conduct of children,” said Mike Anderson, FBI Special Agent In Charge, New Orleans Division.
The U.S. Immigrations and Customs Enforcement, FBI, U.S. Postal Service, Louisiana State Police and Crowley Police Department investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. 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 via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp Tips may be submitted anonymously.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Chinese National Pleads Guilty to Illegally Exporting Radiation-hardened Computer Circuits Used in Satellite Communications to ChinaRead the Press Release
DENVER – Philip Chaohui HE, aka Philip Hope, who was residing in Oakland, California, pled guilty September 3, 2013, before Senior U.S. District Court Judge Wiley Y. Daniel to conspiracy to violate the Arms Export Control Act and to Smuggle Goods from the United States, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar C. Kibble announced. HE is scheduled to be sentenced by Judge Daniel on December 18, 2013 at 10:00 a.m. He is in federal custody.
According to court documents, including the stipulated facts contained in the plea agreement, HE attempted to illegally export to China radiation-hardened computer memory circuits used in satellite communications with a value of almost $550,000. HE, the only employee of Oakland, California-based Sierra Electronic Instruments (SEI), purchased 312 radiation-hardened circuits from a Colorado manufacturer. The circuits purchased by HE are categorized as defense articles within the International Trafficking in Arms Regulations (ITAR). Lawfully exporting defense articles requires licensing from the U.S. State Department’s Directorate of Defense Trade Controls.
On April 28, 2011, an unindicted co-conspirator caused two wire transfers totaling about $489,720 to be sent to HE’s bank account in California. On or about May 9, 2011, HE provided payment in full, $549,654, at the time HE placed the order with the Colorado manufacturer. According to the indictment, on or about May 17, 2011, HE provided false certification to the Colorado manufacturer that his company was purchasing the integrated circuits for end-use in the United States only, and HE further acknowledged that the items were controlled by U.S. Export Laws and could not be transferred, transshipped or otherwise disposed of in any other country, without the prior written approval of the U.S. Department of State.
On December 11, 2011, HE drove to the Port of Long Beach, California, and met with two men in front of a docked ship bearing a Chinese flag. The Chinese-flagged ship was registered to Zhenhua Port Machinery Company LTD, a subsidiary of the China state-owned corporation China Communications Construction. The ship had recently arrived from Shanghai, China, and was scheduled to return on December 15, 2011.
HE concealed 200 integrated circuits in several plastic infant formula containers placed inside five boxes which were sealed and labeled as “milk powder” written in Chinese. HE transported the boxes in the trunk compartment of his vehicle. Neither HE, nor his company SEI had a license to export defense articles of any description.
“We have specific laws designed to protect sensitive American technology from getting into the wrong hands overseas,” said U.S. Attorney John Walsh. “Defendant HE attempted to smuggle export-controlled radiation-hardened computer chips to China, and faces serious punishment for his criminal activity.”
“The Arms Export Control Act is designed to prevent having our technology illegally exported and ultimately used against us,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI special agents in Colorado Springs, San Francisco and Los Angeles worked together with our law enforcement partners to investigate Philip HE and eliminate the threat he posed to this country.”
For conspiring to violate the Arms Export Control Act (AECA) and to Smuggle Goods from the U.S., HE faces not more than 5 years in federal prison, and a fine of up to $250,000.
The Defense Security Service (DSS) and the Defense Criminal Investigative Service (DCIS) provided critical assistance to HSI with this investigation. Assistance was also provided by the U.S. Attorneys Offices located in the Northern and Central Districts of California.
HE is being prosecuted by Assistant U.S. Attorney Matthew Kirsch.
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Chattanooga Man Sentenced to Prison for Child EnticementRead the Press Release
ROME, Ga. - Jason Antti, who traveled to Georgia to have a sexual encounter with a fictitious 11-year-old and 14-year-old girl has been sentenced on charges of child enticement.“This office will continue to aggressively pursue individuals who seek to exploit young children,” said United States Attorney Sally Quillian Yates. “Engaging in sexual acts with children is a vile and violent act, and perpetrators will be held accountable for this reprehensible conduct.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s various Child Exploitation Task Forces scattered throughout the country are designed to identify, investigate, and present for prosecution those individuals like Mr. Antti who choose to prey on our nation’s children. Mr. Antti, having been sentenced in federal court, will now have to answer for his predatory criminal conduct.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2012, a special agent with the FBI’s Northwest Georgia Internet Crimes Against Children Task Force, working online and undercover, posted an ad on Craigslist. The agent posed as a stepfather looking for people interested in having sexual relations with his two young step-daughters. Antti responded to the ad. When Antti was told that the girls were only 11 and 14 years old, he replied that he had a fantasy to engage in sex acts with very young children. Antti then described in detail the sexual acts he intended to perform with the two young girls.
During subsequent on-line exchanges between the defendant and an undercover agent, Antti indicated that he would be traveling to Georgia from Chattanooga, Tenn. He agreed to meet the undercover agent and both girls at the Econolodge in Chickamauga, Ga. On the afternoon of June 8, 2012, Antti drove to the Econolodge in his gray BMW and was arrested. Agents recovered two boxes of condoms from his vehicle.Antti, 41, of Chattanooga, Tenn., has been sentenced by United States District Judge Robert L. Vining, Jr., to 15 years in prison today, followed by 15 years of supervised release. He was convicted of these charges on April 18, 2013, upon his plea of guilty. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by the Federal Bureau of Investigation, the Rossville Police Department, the Murray County Sheriff’s Office, and the Walker County Sheriff’s Office.
Assistant United States Attorney Suzette A. Smikle 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.
Charles City Man Pleads Guilty to Gun ChargesRead the Press Release
Randy Patrie, age 40, from Charles City, Iowa, pled guilty today in federal court in Cedar Rapids. Patrie was convicted of being a felon in possession of 22 firearms and two sawed-off shotguns.
In a plea agreement, Patrie admitted that, on May 2, 2013, he burglarized a federally licensed firearms dealer in rural Floyd, Iowa, stealing approximately 20 firearms. On July 4, 2013, officers searched Patrie’s house in Charles City, and found him in possession of all of the stolen firearms, along with a number of other firearms, including two sawed-off shotguns. Patrie has been convicted of the following felony offenses:
1. September 24, 1991, Attempted Burglary in the 2nd degree;
2. May 4, 1994, Felon in Possession of a Firearm;
3. May 28, 1996, Delivery of Methamphetamine; and
4. May 27, 2003, Burglary 3rd.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Patrie remains in custody of the United States Marshal pending sentencing. If the court finds that Patrie qualifies as an Armed Career Criminal based upon his prior convictions, Patrie faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life in prison without the possibility of parole, a $500,000 fine, $200 in special assessments, and eight years of supervised release following any imprisonment.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosive, the Iowa Division of Criminal Investigation, the Charles City Police Department, and the Floyd County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-2016.
Cairo Woman Sentenced to Prison for Tax-Related FraudsRead the Press Release
Monica D. Nicholson, 44, of Cairo, Illinois, was sentenced for conspiring with others to submit false income tax reruns to the Internal Revenue Service for fraudulent tax refunds and for conspiring to commit the unlawful use of means of identification of other persons, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Nicholson received a total sentence of one-hundred and five months in prison, followed by three years of supervised release, and was ordered to pay restitution totaling $283,688.
“The enormity of this theft most certainly justifies the sentence received.” noted United States Attorney Wigginton. “People who steal from the government are, in fact, stealing from every one of us – the law abiding citizens of the United States.”
Evidence showed that Nicholson participated in a scheme to help others to obtain payment of false refunds from the IRS by causing others to file false 2007, 2008, 2009, 2010, and 2011, federal income tax returns claiming refunds to which they knew they were not entitled. Nicholson solicited, instructed, and assisted others in falsely claiming federal income tax refunds through the submission of false federal income tax returns. Nicholson gathered others’ identifying information, claimed fraudulent dependents, and transmitted this information over the telephone to a tax return preparer located in Memphis, Tennessee. As part of this conspiracy, the participants or those whose names appear as taxpayers on the fraudulent income tax returns (the filers) were required to pay Nicholson between approximately $200 and $300 per tax return from the tax refund received. During the 2011 and 2012 tax filing seasons, approximately 50 federal income tax returns were filed. The total refunds claimed by the 50 tax returns were approximately $406,228. Of the federal tax returns filed, the IRS paid out approximately $283,688 in fraudulent tax refunds. Monica D. Nicholson purchased dependents’ Social Security numbers from the guardians and/or parents of the dependents for filers who did not have legitimate dependents. The typical fee was $1,000 per Social Security number and this fee was paid from the fraudulent income tax refund received from the IRS.
The investigation was conducted by the U.S. Postal Inspection Service and the Internal Revenue Service/Criminal Investigations. The prosecution was handled by Assistant United States Attorney Norman Smith.
If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by contacting the local Internal Revenue Service/Criminal Investigation Office at (618) 622-2160 or by mailing information to: Internal Revenue Service, Fresno, CA 93888.
Buffalo Man Sentenced for Food Stamp FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Riyadh Almadrahi, 35, of Lackawanna, N.Y., who was convicted of food stamp fraud, was sentenced by U.S. District Judge Richard J. Arcara to 15 months in prison and ordered to pay restitution in the amount of $143,700 to the United States Department of Agriculture.
Assistant U.S. Attorney Robert C. Moscati, who handled the case, stated that Almadrahi participated in the operation of a deli known as Zip's Food and Beverage at 896 Niagara Street in Buffalo. The defendant and others exchanged customer's food stamp benefits for cash in violation of the rules governing the food stamp program. In less than a two year period, Almadrahi acquired approximately $143,700 through these fraudulent transactions.
The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General; Special Agents of the Federal Bureau of Investigation under the direction of Acting Special Agent in Charge Steven L. Lanser; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; and the New York State Police, Special Investigations Unit, under the direction of Lieutenant Joseph Scioli.Brooklyn Resident Pleads Guilty in Connection with $13 Million Kickback and Health Care Fraud SchemeRead the Press Release
A Brooklyn, N.Y., resident pleaded guilty today for his role as a patient recruiter in a $13 million kickback and health care fraud scheme, the fourth defendant to plead guilty in the scheme based at the Cropsey Medical Care PLLC clinic in Brooklyn.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George Venizelos of the FBI’s New York Field Office; and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) made the announcement.
Gregory Konoplya, 57, pleaded guilty before U.S. Magistrate Judge Roanne Mann of the Eastern District of New York to one count of conspiracy to pay and receive illegal health care kickbacks. At sentencing before U.S. District Judge Nina Gershon, scheduled for Dec. 4, 2013, Konoplya faces a maximum penalty of five years in prison.
Court documents state that Konoplya, working through an ambulette company in Brooklyn, recruited patients to attend Cropsey Medical. An ambulette is a vehicle that is licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. From 2009 to 2012, Konoplya paid employees of Cropsey Medical a per beneficiary cash kickback so that Cropsey Medical would accept Konoplya’s beneficiaries as patients and so that Konoplya’s ambulette company could bill Medicaid for the transportation of beneficiaries to and from Cropsey Medical. Once Konoplya’s beneficiaries were transported to Cropsey Medical, they were paid cash kickbacks to induce them to continue to attend the clinic and to receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Fraud Section Trial Attorney Sarah M. Hall and Assistant U.S. Attorneys Shannon Jones and Ilene Jaroslaw of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Brooklyn Resident Pleads Guilty in Connection with $13 Million Kickback and Health Care Fraud SchemeRead the Press Release
BROOKLYN, NY – Brooklyn resident Gregory Konoplya, 57, pleaded guilty today in federal court in the Eastern District of New York to conspiracy to pay and receive illegal health care kickback payments, in connection with his role in a $13 million health care fraud scheme. Konoplya is the fourth defendant to plead guilty in connection with the scheme, which was based at the Cropsey Medical Care PLLC clinic in Bensonhurst, Brooklyn.
Today’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Thomas O’Donnell, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“Gregory Konoplya tried to take taxpayers for a ride with his fraudulent ambulette service,” stated United States Attorney Lynch. “He used illegal cash kickbacks to recruit Medicaid beneficiaries to obtain medical services, including rides in his ambulettes, which the beneficiaries did not need. Konoplya is the latest defendant to be convicted in connection with the government’s ongoing investigation of the Cropsey Medical Care clinic, which submitted more than $13 million in fraudulent claims to Medicare and Medicaid. We will continue to do our part to root out health care fraud to help protect the integrity of Medicare and Medicaid.” U.S. Attorney Lynch extended her grateful appreciation the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General for their work on the investigation.
Konoplya pleaded guilty before U.S. Magistrate Judge Roanne Mann of the Eastern District of New York. At sentencing, Konoplya faces a maximum penalty of five years in prison, a fine of over $850,000, restitution of up to $429,000 and forfeiture of up to the same amount, $429,000.
According to court documents, from 2009 to 2012, Konoplya, working through an ambulette company in Brooklyn, recruited patients to attend a Brooklyn clinic called Cropsey Medical Care PLLC. An ambulette is a vehicle licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. Konoplya paid employees of Cropsey Medical a per-beneficiary cash kickback so that Cropsey Medical would accept Konoplya’s beneficiaries as patients and Konoplya’s ambulette company could bill Medicaid for the transportation of beneficiaries to and from Cropsey Medical. Once Konoplya’s beneficiaries were transported to Cropsey Medical, they were paid cash kickbacks to induce them to continue to attend the clinic and receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then fraudulently billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall and Assistant U.S. Attorneys Shannon Jones and Ilene Jaroslaw of the Eastern District of New York.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Bolivian Police Officer Arrested on Extortion ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Vernot Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, and Richard M. Blom, Chief, Doral Police Department, announce the arrest of defendant Francisco Mario Ormachea Aliaga, 42, of Bolivia, on a criminal complaint charging him with traveling in interstate commerce with the intent to promote, manage, establish, carry on, and facilitate an unlawful activity, that is, extortion, in violation of Florida Statute section 836.05, and Title 18, United States Code, Section 1951(a), and thereafter performing and attempting to perform an act to promote, manage, establish and carry on, and to facilitate the promotion, management, establishment, and carrying on of such unlawful activity, in violation of Title 18, United States Code, Section 1952(a)(3). Ormachea made an initial appearance before U.S. Magistrate Judge Barry L. Garber on Tuesday, September 3, 2013, and is scheduled to be arraigned on September 17, 2013.
According to the allegations in the complaint, the FBI was contacted by a Bolivian businessman with initials “H.R.” on August 29, 2013. H.R. told the FBI that someone who identified himself as “the Colonel” had contacted H.R. to request a meeting in the United States. Subsequent investigation revealed that the caller, who had referred to himself as “the Colonel,” was Ormachea.
On August 29, 2013, Ormachea departed La Paz, Bolivia on a commercial flight to Lima, Peru, and then flew on another commercial flight to Miami International Airport. At Miami International Airport, Ormachea presented a valid Bolivian passport containing a valid United States tourist visa to United States Customs and Border Protection, who admitted him into the United States.
On August 30, 2013, H.R. met with Ormachea. The FBI monitored and recorded this meeting. During the meeting, Ormachea discussed the issues surrounding the criminal case against H.R. in Bolivia. Ormachea offered to dispose of the criminal charges pending against H.R. in Bolivia for a fee of $30,000. Ormachea agreed to take a payment of $10,000 immediately and receive the remainder of the payment later.
On Saturday, August 31, 2013, H.R. met with Ormachea again. The FBI monitored and recorded this meeting. During the course of the meeting, Ormachea stated that, in exchange for $30,000, he would drop the charges against H.R. and charge someone else instead. If, however, H.R. did not pay, Ormachea said that he would pursue H.R.’s arrest in the United States, extradition to Bolivia, and prosecution there. H.R. gave Ormachea $5,000 in previously-recorded bills as an initial payment towards the $30,000 required to resolve the charges against him. After the meeting, Ormachea departed by car.
FBI surveillance teams in coordination with local law enforcement conducted a traffic stop of Ormachea shortly thereafter. Ormachea was detained and $5,000 was recovered from his person. A review of the seized U.S. currency revealed that it matched the previously recorded bills.
Law enforcement officials interviewed Ormachea at the Miami Field Office of the FBI. After receiving and waiving his Miranda warnings in writing, Ormachea acknowledged meeting with H.R. on two occasions but denied attempting to extort H.R. Ormachea acknowledged that he is a member of the Bolivian National Police Corps, but stated that he was not traveling in his official capacity as a diplomat of Bolivia.
Mr. Ferrer commended investigative efforts of the FBI, ATF, CBP and the Doral Police Department. This case is being handled by Assistant U.S. Attorneys John Byrne and Jaime Raich.
A complaint is merely an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bismarck Man Convicted of Felon in Possession ChargeRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Sept. 6, 2013, Dylan A. Romero, 34, Bismarck, N.D., was found guilty by a federal jury on a charge of possession of firearm by a convicted felon.
In August 2012, law enforcement officials received information that a prohibited person, known as “Twist,” was interested in obtaining a handgun. “Twist,” identified as Dylan Romero, contacted an undercover ATF agent and arrangements were made for Romero to obtain a handgun and $600 for an ounce of cocaine. The undercover ATF agent met with Romero on Sept. 26, 2012, in Bismarck. Romero provided the agent with an ounce of fake cocaine and Romero took the gun, which was locked and disabled. Law enforcement officials immediately arrested Romero.
Romero was prohibited from possessing a firearm due to eight felony convictions, including the following: 1998 burglary, 2001 possession of controlled substance (cocaine), 2009 delivery of imitation controlled substance, and 2009 possession of marijuana with intent to deliver.
The charge of possession of firearm by a convicted felon carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Metro Area Narcotics Task Force, the Bismarck Police Department, the Burleigh County Sheriff’s Office, the North Dakota Parole and Probation Office, and the North Dakota Bureau of Criminal Investigation.
Sentencing for Romero has been scheduled for Dec. 16, 2013, in U.S. District Court in Bismarck, N.D., at 9:45 a.m.
Assistant U.S. Attorney David Hagler is prosecuting the case.
Bergen County, N.J., Loan Officer Pleads Guilty to Role in $2 Million Mortgage FraudRead the Press Release
CAMDEN, N.J. – A loan officer admitted today to conspiring to defraud financial institutions as part of an approximately $2 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on town homes and other real estate in three states, U.S. Attorney Paul J. Fishman announced.
Raffi Oghlian, 38, of Westwood, N.J., pleaded guilty today, before U.S. District Judge Jerome B. Simandle in Camden federal court, to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court: Oghlian worked for a period in 2008 as a loan officer at MJS Lending Inc., in Hasbrouck Heights, N.J., which was in the business of making mortgage loans.
During his guilty plea proceeding, Oghlian admitted that he conspired with others to profit from the sale of over-priced homes in Newark, N.J., and Atlanta, as well as properties in Naples, Fla., owned by developers seeking to sell off inventory. He acknowledged that as part of the conspiracy, he and his conspirators obtained mortgage loans for unqualified borrowers using fraudulent loan applications and other documents.
Oghlian’s conspirators recruited “straw buyers” to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. Oghlian created false and fraudulent loan applications that contained false information, concerning, among other things, the straw buyers’ employment, income, assets and intended use of the properties. Oghlian also admitted creating false documents to support the phony loan applications.
Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Oghlian’s co-conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. For his part on the conspiracy, Oghlian earned fees as the loan officer of the seven transactions in which he participated.
In all, the conspiracy caused approximately $2 million to be released from MJS Lending.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS – Criminal Investigation, Newark field office, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their roles in the ongoing investigation.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
13-359Defense counsel: John Klotz Esq.,Clifton, N.J.
Oghlian Information
Austin Horse Trainer Sentenced to Federal Prison in Multi-Million Dollar Money Laundering Conspiracy Involving Los Zetas Drug Trafficking Proceeds, Extortion, and BriberyRead the Press Release
In Austin, Eusevio Maldonado Huitron, a 50-year-old horse trainer residing in Austin was sentenced this morning to 97 months in federal prison followed by three years of supervised release for his role in a complex conspiracy to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, Richard Weber, Chief, Internal Revenue Service Criminal Investigation and DEA Special Agent in Charge Javier Pena.
United States District Judge Sam Sparks this morning also sentenced co-defendant Raul Ramirez, age 21 of El Paso, TX, to one year plus one day in federal prison after pleading guilty prior to trial to the conspiracy charge. Other co-defendants who pleaded guilty to various federal charges prior to trial received probation sentences today including: Zulema Trevino, age 39 (3 years); Alexandra Garcia Trevino, age 22, of Oceanside, CA, (2 years); 33-year-old horse trainer Adan Farias of Norco, CA, (3 years); and 29–year-old Felipe Alejandro Quintero of Los Alamitos, CA, (3 years). Judge Sparks also ordered that Farias, Quintero and Ramirez each pay a $3,600 fine. Sentencing for 27-year-old Carlos Miguel Nayen Borbolla of Santa Anna, CA, was postponed.
Yesterday, Judge Sparks sentenced 46-year-old Jose Trevino Morales of Balch Springs, TX, and Francisco Colorado Cessa, a 52-year-old Veracruz, Mexico businessman, each to 240 months in federal prison; and, Fernando Solis Garcia, a 30-year-old horse trainer and purchasing agent from Ruidoso, NM, to 160 months in federal prison followed by three years of supervised release for their roles in the money laundering scheme. Jose Trevino Morales is the brother of purported Los Zetas leaders, Miguel Trevino Morales (aka “40”) and Oscar Omar Trevino Morales (aka “42”).
On May 9, 2013, a federal jury convicted Jose Trevino Morales, Francisco Colorado Cessa, Fernando Solis Garcia, and Eusevio Maldonado Huitron of one count of conspiracy to commit money laundering. Evidence presented during trial revealed that Los Zetas are a powerful drug cartel based in Mexico and generate multi-million dollar revenues from drug trafficking. Since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose Trevino and his wife, Zulema Trevino, for purchasing, training, breeding and racing American quarter horses in the United States.
Testimony also revealed a shell game by the defendants involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate. Furthermore, the defendants implemented a scheme to structure cash deposits in amounts under $10,000 in order to circumvent mandatory bank reporting requirements.
Over 400 quarter horses (which were seized by federal authorities in June 2012 as part of the above-mentioned money laundering operation) have been sold for approximately $9 million. Most of the horses were sold at Heritage Place Auction Facility in Oklahoma City, Oklahoma in the past year including A Dash of Sweet Heat, which sold for $1 million. Approximately 100 broodmares were sold prior to auction for approximately $35,000. The federal government still retains possession of five quarter horses, including Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day 2010; Dashin Follies; Separate Fire; Y516, a yearling seized in Lexington, OK; and four embryos transferred from donor mares, Dashin Follies and Separate Fire.
U.S. Attorney Pitman noted that the proceeds from the sale of these quarter horses are being held in escrow pending the resolution of a forfeiture action. The Government also seeks the forfeiture of real property in Lexington, OK; farm and ranch equipment located at that site; and funds contained in multiple bank accounts allegedly used in the defendants’ scheme. The Government also seeks a monetary judgment in the amount of $60 million representing property involved in and derived from the conspiracy.
Authorities continue to seek the apprehension of seven co-defendants in this case including purported leaders of the Los Zetas, Miguel Trevino Morales (aka “40”) and his brother, 39-year-old Oscar Trevino Morales (aka “42”), as well as 32–year-old Victor Manuel Lopez, 41-year-old Sergio Guerrero Rincon, 41-year-old Luis Gerardo Aguirre, Erick Jovan Lozano Diaz and Gerardo Garza Quintero.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Customs and Border Patrol, as well as local law enforcement agents in Irving, TX, Lorena, TX, Bruceville-Eddy, TX, Fort Worth, TX and Laredo, TX. The investigation received assistance from the Texas Army National Guard, Cleveland County (OK) Sheriff’s Office, and the Oklahoma and New Mexico Racing Commissions. The U.S. Attorney’s Office for the Eastern District of Texas prosecuted several members of the Los Zetas drug cartel on drug trafficking charges related to this conspiracy and provided substantial assistance to this investigation. The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) provided assistance with the forfeiture action in this case.
Andria March Sentenced in Syracuse to ProbationRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the imposition of sentence in United States District Court in Syracuse on Andria March for the offense of bankruptcy fraud.
Andria March, 33, of North Tonawanda, NY pled guilty in April, 2013, to a single count of bankruptcy fraud, relating to a bankruptcy petition she had filed in the federal courts in Syracuse in 2009. Today in Syracuse, Senior District Judge Frederick J. Scullin sentenced the defendant to a term of probation of two years, and required her to perform 50 hours of community service as a condition of that probation.
As part of her plea, the defendant acknowledged that, in 2009 when she filed a bankruptcy petition in Syracuse, NY, she had intentionally failed to disclose money that she had used to purchase a pre-paid lease on a 2010 Mercedes Benz 300. Prior to sentencing, the defendant had paid into the bankruptcy court the money that she had previously failed to disclose.
This case is the result of an investigation by the Federal Bureau of Investigation in Syracuse, NY. Further questions or inquiries may be directed to Executive Assistant United States Attorney John Duncan, at (315) 448-0672.
Anchorage Men indicted in Federal Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two defendants were arraigned this week in Anchorage on charges involving a drug trafficking conspiracy and possession of methamphetamine with intent to distribute. Albert Diaz Gumataotao, III, 24, of Anchorage, Alaska, and David Alan Gonzales, 54, of Anchorage, Alaska, are charged in the two-count indictment. According to information presented to the court, Gumataotao and Gonzales allegedly possessed 52 grams of pure methamphetamine on March 28, 2013.Special Assistant U.S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of life in prison, a fine of ten million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Ms. Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
5 September 2013
Williams and Lavan SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that SONYA LEWIS WILLIAMS, 47, of Baton Rouge, Louisiana, was sentenced to 37months for her convictions on counts of health care fraud and money laundering.
The indictment arose from a health care fraud scheme involving two companies known as Fusion Services, L.L.C. (“Fusion”), and Grace Social Services, L.L.C. (“Grace”), which operated in Alexandria, Louisiana and the surrounding areas. WILLIAMS established the two companies for the purpose of using unlicensed social workers to visit Medicare beneficiaries in their homes several times a week to perform case management, counseling, and social interaction services. WILLIAMS submitted false claims for reimbursement from Medicare indicating that the beneficiaries had received individual, face-to-face psychotherapy from a licensed clinical social worker when no such services had been provided. Medicare paid Fusion and Grace approximately $349,715 as a result of the billings. Much of the profits were transferred from company bank accounts into WILLIAMS’ personal accounts.
In addition to the term of imprisonment, Chief Judge Brian A. Jackson ordered restitution in the amount of $1,223,471 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services. This amount included the total profits from Fusion and Grace, as well as two identical companies that WILLIAMS operated in the Baton Rouge area, Alpha Social Services, L.L.C., and Breitling Investment Company, L.L.C.
This is the second sentencing involving WILLIAMS’ companies. On August 15, 2013, LILLIE LAVAN, age 57, of Pineville, Louisiana, was sentenced by Judge Jackson to 27 months imprisonment, followed by one year of supervised release, for her conviction on one count of health care fraud. LAVAN was a Licensed Clinical Social Worker who worked with Fusion in the Alexandria area. LAVAN participated in creating false and misleading medical records for Fusion indicating that Medicare beneficiaries had received individual, face-to-face psychotherapy when, in fact, no such services had been provided. Judge Jackson also ordered LAVAN to pay restitution in the amount of $115,010 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services.
Acting United States Attorney Walt Green. stated, “Those who abuse our federal health care programs through fraud and corruption should understand our commitment to bring them to justice.”
Department of Health and Human Services Special Agent-in-Charge Mike Fields said, “Our office is committed to the relentless pursuit of those whose sole interest in health care is to raid the Medicare Trust Fund to satisfy their own greed.”
FBI Special Agent-in-Charge Michael Anderson said, “The continued close collaboration of federal law enforcement partners will ensure that justice will be fully served upon those individuals who seek to defraud the health care system.”
“Sonya Williams was sentenced today for her money laundering activities which were a result of a health care scheme,” said Gabriel Grchan, Special Agent-in-Charge IRS Criminal Investigation. “IRS will continue to work with the Health Care Fraud Strike Force to unravel such complex financial crimes and assist in the prosecution of those individuals who engage in illegal business practices.”
The investigation was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and AdvanceMed, the Medicare Program Safeguard Contractor which assists with health care fraud investigations. The case was prosecuted by Assistant United States Attorneys Catherine M. Maraist and Leetra Harris.
Waterbury Man Sentenced to 10 Years in Federal Prison for Firearms ConvictionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FRANCISCO TELLADO, 37, of Waterbury, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by six years of supervised release, for illegally possessing a firearm and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on August 24, 2012, TELLADO used a 9 millimeter handgun to shoot his brother and his cousin in Naugatuck. He was subsequently apprehended in Waterbury.
TELLADO has prior state felony convictions for criminal possession of a firearm and possession of narcotics, and a prior federal conviction for conspiring to distribute crack cocaine. He was released from federal prison on November 1, 2011 and was serving a six-year term of supervised release at the time of the shootings.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On January 23, 2013, TELLADO pleaded guilty to one count of possession of a firearm by a convicted felon and admitted to having violated the terms of his supervised release.
Judge Chatigny sentenced TELLADO to 96 months of imprisonment for illegally possessing a firearm and a consecutive 24 months of imprisonment for violating his supervised release.
TELLADO was also charged with state offenses as a result of these shootings and, in February 2013, was sentenced to 10 years of incarceration. Judge Chatigny ordered the 10-year federal sentence to be served concurrent with the state sentence.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Waterbury Police Department and the Naugatuck Police Department. This case was prosecuted by Assistant United States Attorney Robert M. Spector.
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(203) 821-3722 [email protected]Two Men in Unrelated Cases Sentenced to Federal Prison for Child Exploitation CrimesRead the Press Release
DENVER – Two men were sentenced this week to serve federal prison sentences for child exploitation crimes, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. The cases of the two men were unrelated.
Michael Burch, age 31, of Seattle, Washington, was sentenced by Senior U.S. District Court Judge Wiley Y. Daniel to serve 121 months in federal prison, followed by 10 years on supervised release, for the crime of travel with intent to engage in illicit sexual conduct, namely engaging in a sex act with a person under 18 years of age. Burch appeared at the sentencing hearing in custody, and was remanded at the hearing’s conclusion.
According to the stipulated facts in Burch’s plea agreement, after numerous internet chats and several phone calls, on August 22, 2012 Burch left Seattle, Washington by commercial bus, arriving in Grand Junction at 3:20 a.m. on August 24, 2012. He thought he was meeting a single mother with two girls, one age 4 and the other age 14. In fact, the single mother he was communicating with was actually an undercover agent. Once Burch arrived in Grand Junction he was placed under arrest.
Paulo dos Santos Silva, Jr., age 38, and a citizen and national of Brazil, was also sentenced by Senior U.S. District Court Judge Wiley Y. Daniel to serve 148 months in federal prison, followed by 5 years on supervised release, for the crime of attempted coercion and enticement. Silva appeared at his sentencing hearing in custody, and was remanded at the hearing’s conclusion.
According to the stipulated facts in Silva’s plea agreement, after multiple sexually explicit internet chats and a phone call, on February 15, 2012, Silva flew from Brazil to Grand Junction to meet a single mother with two girls, ages 4 and 14. In fact, the single mother was actually an undercover agent. At approximately 11:00 a.m., after arriving at the Grand Junction Airport, Silva was arrested.
“Anyone who travels great distances to have sex with children is an especially dangerous predator,” said Kumar C. Kibble, special agent in charge of HSI Denver. “To protect the most innocent and vulnerable members of our communities, our special agents in Homeland Security Investigations take an extremely active role to identify and ultimately remove these predators from society.”
These cases were investigated by ICE Homeland Security Investigations (HSI).
Burch was prosecuted by Assistant U.S. Attorney Valeria Spencer. Silva was prosecuted by Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Two Indicted in $275 Million Investment Fraud Scheme Involving the Sale of Medical Accounts Receivable to Hedge Funds and Other InvestorsRead the Press Release
Guilty Pleas of Two Conspirators Also Unsealed Today
Baltimore, Maryland – A federal grand jury has indicted Richard Shusterman, age 50, of Highland Beach, Florida, and Jonathan E. Rosenberg, age 44, of West Orange, New Jersey, on charges of conspiracy and wire fraud, in connection with a scheme to defraud equity investors and asset-based lenders in medical accounts receivable of more than $275 million. The indictment was returned on September 4, 2013 and unsealed today upon the arrest of the defendants.
The guilty pleas of Robert Feldman, age 65, of Beach Haven, New Jersey and Douglas A. Kuber, age 53, of Livingston, New Jersey, were also unsealed today. Feldman and Kuber pleaded guilty to conspiracy to commit wire fraud on September 3, 2013 and October 11, 2012, respectively.
The indictment and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“The indictment alleges that the defendants perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $275 million,” said U.S. Attorney Rod J. Rosenstein.
According to the 10 count indictment, Richard Shusterman, was a shareholder and president of International Portfolio, Inc. (IPI). Robert Feldman was part owner of IPI, and was also the president of United Consulting, Inc. Shusterman and Feldman represented that IPI was a company that had experience in the field of medical accounts receivable, including their purchase, valuation, collection, and resale. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, engaged in the business of buying and selling consumer debt, including medical debt portfolios.
According to the indictment, Jonathan E. Rosenberg and Douglas A. Kuber, operated Account Receivable Services, LLC (ARS). ARS invested in medical accounts receivable purchased from IPI using funds borrowed from investors interested in asset-based lending. Rosenberg was also president of two other companies that recruited investors for medical accounts receivable portfolios purchased from IPI.
From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts which the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning in June of 2007, Shusterman, Rosenberg, Feldman, and Kuber began promoting an investment model to individual investors and investment fund managers.
To implement the investment model, the conspirators allegedly agreed that Shusterman, through IPI, would batch accounts receivable from IPI’s inventory into discrete debt portfolios with specified total outstanding account balances. These portfolios would then be offered for sale to investors. In addition, Shusterman and IPI would manage all the collection efforts for each debt portfolio IPI sold.
The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman made fraudulent representations and omissions regarding purchase prices, collection results, and resale values of IPI medical debt portfolios in order to persuade investors to invest in those portfolios. The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman negotiated and agreed upon two different purchase prices for each IPI debt portfolio that hedge funds and other investors financed on behalf of ARS. The conspirators set higher purchase prices for the IPI debt portfolios ARS financed through hedge funds and other investors. IPI agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The defendants allegedly characterized the kickbacks as a refund for any unqualified accounts in the portfolio, such as when a debtor was deceased or bankrupt. The indictment alleges that between June 2007 and March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling approximately $8,318,718.
Further, the indictment alleges that in order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, Shusterman, Rosenberg, Feldman and Kuber falsely represented the actual amount of collections and rates of liquidation of IPI debt portfolios. In fact, because IPI debt portfolios did not generate sufficient collections to meet the minimum debt service payments due to the investors, Shusterman, Rosenberg, Feldman, and Kuber allegedly caused IPI to wire money disguised as “direct payments” to ARS entities to fund interest payments owed to hedge funds and other investors who loaned money for the acquisition of IPI debt portfolios. Specifically, the indictment alleges that between July 2008 and March 2010, the defendants made false and misleading collection reports stating that a total of approximately $56,180,158 in “direct payments” were collected during the liquidation of IPI debt portfolios, in order to deceive hedge funds such as Platinum Partners and other investors. The indictment alleges that in February 2010, Shusterman, Rosenberg, Feldman and Kuber attempted to induce Eton Park Capital Management to invest by portraying four portfolios financed by Platinum as receiving approximately $28.7 million in collections. In fact, the total net collections were approximately $2 million.
Finally, in order to induce investors to buy and/or maintain their investment positions in IPI debt portfolios, and to further conceal substantially lower than projected collection results, Shusterman, Rosenberg, Feldman and Kuber fraudulently repurchased and resold investors’ IPI debt portfolios at artificially inflated prices that neither corresponded to a particular debt portfolio’s actual collection results, nor to an asking price from a purchaser in the debt-buying industry. According to the indictment, Shusterman, Rosenberg, Feldman, and Kuber represented to investors that the IPI debt portfolios sold to them or used as collateral were comprised of medical accounts receivable that IPI had purchased directly from hospitals and medical providers after those institutions had exhausted their efforts to collect from their debtor patients. In fact, the indictment alleges that Shusterman and Feldman intentionally sold to some investors IPI debt portfolios that IPI had previously sold to and repurchased from a different investor, and sometimes multiple investors.
The indictment also seeks the forfeiture of $278,105,193, alleged to be the proceeds of the scheme.
Shusterman and Rosenberg each face a maximum sentence of 20 years in prison for the conspiracy and for each of nine counts of wire fraud. Shusterman was arrested in Baltimore and is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:30 p.m. Rosenberg was arrested in Newark, New Jersey and is expected to have his initial appearance in U.S. District Court there today.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Robert Feldman and Douglas Kuber, each pleaded guilty to conspiracy to commit wire fraud and face a maximum sentence of 20 years in prison. Feldman is scheduled for sentencing on December 3, 2013. No sentencing date has been set for Kuber.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Joyce K. McDonald, who are prosecuting the case.