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Wednesday 17 July 2013
United States Army Captain Indicted for Wire and Mail FraudRead the Press Release
GAINESVILLE, FLORIDA – Michael Benjamin Crowder, 35, appeared in the Gainesville Division of the United States District Court for the Northern District of Florida on an indictment charging him with multiple counts of wire and mail fraud, according to Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Crowder, a U.S. Army Captain Judge Advocate General, currently stationed in Ft. Sill,
Oklahoma, owned and operated M & H Coins and Precious Metals, LLC from his Gainesville home while attending the University of Florida Levin College of Law under the Army's Funded
Legal Education Program. The indictment alleges that Crowder defrauded customers of more than $700,000 by offering to sell rare coins and precious metals, receiving payment from the customers, and then not delivering the items. No money has been recovered.Crowder is facing a maximum sentence of 20 years imprisonment, a $250,000 fine, three years of supervised release upon completion of his sentence, and a $100 Special Monetary Assessment. He is scheduled for trial on August 20, 2013, at 8:30 am before United States District Judge Mark E. Walker.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Greg McMahon.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
U.S. Postal Service Employee Sentenced to 46 Months in Prison for Mailing and Receiving Packages of CocaineRead the Press Release
Husband Who Was Charged With Her Sentenced Last Month
NEWARK, N.J. – A former U.S. Postal Service employee was sentenced today to 46 months in prison for her role in a scheme to intercept cocaine-laden packages mailed from Puerto Rico to New Jersey, U.S. Attorney Paul J. Fishman announced.
Christina Nunez, 30, of Lyndhurst, N.J., previously pleaded guilty before U.S. District Judge Esther Salas to an information charging her with one count of conspiracy to possess with intent to distribute and distribution of 500 grams or more of cocaine and one count of mail theft. Judge Salas imposed the sentence today in Newark federal court.Last month, her husband, Luis A. Vega, 37, was sentenced to 37 months in prison for his role in distributing the cocaine-laden packages. Vega previously pleaded guilty before Judge Salas to an information charging him with conspiracy to possess with intent to distribute and distribution of 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
Since December 2010, Nunez had been receiving packages of cocaine, which were mailed from Puerto Rico to delivery addresses along her mail route. Nunez intercepted the packages, scanned them as delivered despite never delivering the packages to their actual delivery addresses, and ultimately transported them to conspirators in Camden, N.J.
Law enforcement seized approximately two kilograms of cocaine during the investigation. On Feb. 1, 2011, inspectors with the U.S. Postal Inspection Service lawfully seized approximately 1,300 grams of cocaine from an express mail package that was supposed to be delivered by Nunez. After this seizure, the drug trafficking organization ceased sending packages until December 2011, when, once again, packages sent from Puerto Rico were mailed to addresses assigned to Nunez’s mail route.
Another suspicious package was sent from Dorado, Puerto Rico, on August 22, 2012. Once the package arrived in Kearny, N.J., law enforcement noted that the delivery address on the package would be assigned to Nunez’s mail route. Subsequent laboratory analysis confirmed that the package contained approximately 500 grams of cocaine. The cocaine was seized and replaced with a substance similar in appearance to the contents of the package. The package was placed back into circulation for delivery. On August 24, 2012, Nunez failed to deliver the package to its delivery address. At the end of her shift, Nunez returned to her residence in Lyndhurst, N.J., with the package, where she and Vega were arrested.
In addition to intercepting the cocaine-filled packages on her mail route, both Nunez and Vega received packages of narcotics at her residence in Lyndhurst and Vega’s former residence in Jersey City, N.J. In total, it is estimated that Nunez, Vega and their conspirators distributed more than 18 kilograms of cocaine between October 2010 and August 24, 2012.In addition to the prison term, Judge Salas sentenced Nunez to two years of supervised release. Judge Salas also imposed a two-year period of supervised release on Vega.
U.S. Attorney Fishman credited inspectors with the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; special agents of the Office of Inspector General for the U.S. Postal Service, under the direction of Special Agent in Charge Rafael Medina; and special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentence.The Government is represented by Assistant U.S. Attorney Mary E. Toscano of the U.S. Attorney’s Criminal Division in Newark.
13-293Defense counsel:
Nunez: Charles Alvarez Esq., Jersey City
Vega: Paul Casteleiro Esq., Hoboken, N.J.Two Men Plead Guilty to Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Aaron Eich, age 29, of Sioux Falls, South Dakota, and Chris Paclik, age 21, of Brookings, South Dakota, both appeared before U.S. Magistrate Judge John E. Simko on July 15, 2013, and pled guilty to the Unlawful Taking of Migratory Birds and Lacey Act Violations. They were charged by Information and Eich pled guilty to Count V of the Information that charged him and Paclik pled guilty to Count IV.
For both men, the maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release and an additional year of supervised release upon revocation; and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident wherein Eich and Paclik, along with a group of friends known as “Team Those Guys” hunted between November 24, 2012, and November 29, 2012, in Miner County, South Dakota. Eich illegally killed 65 geese and Paclik illegally killed 54 geese, both using an electronic device. Eich and Paclik admitted they knew it was illegal to use said device while goose hunting during this time of the year. After killing the geese, Eich, Paclik and others transported the dead geese from the field to various locations, in violation of federal law.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the cases.
Both were released on bond pending sentencing. Eich is scheduled to be sentenced on September 5, 2013, and Paclik’s sentencing date is set for August 19, 2013.Two Defendants in Sommet Case Plead GuiltyRead the Press Release
NASHVILLE, Tenn. July 17, 2013 Marsha Whitfield, 39, and D. Edwin Todd, 68, both of Franklin, Tennessee, pleaded guilty today in U.S. District Court, to charges related to their roles in a multi-million-dollar fraud perpetrated by the Sommet Group, LLC, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. Sommet was a payroll-processing company and former sponsor of the Nashville arena once known as the Sommet Center.
Whitfield entered into a plea agreement, through which she pleaded guilty to one count of wire fraud and one count of conspiracy to commit wire fraud, theft or embezzlement from an employee benefit plan, money laundering, and tax fraud. Todd entered a guilty plea to one count of conspiracy, the sole count of the indictment in which he was charged.
As outlined in Marsha Whitfield’s plea agreement, Todd was a co-owner of Sommet, and Marsha Whitfield was vice president of Sommet’s payroll department. Sommet purported to be a payroll-processing company. For a fee, business clients provided Sommet their gross payroll and Sommet promised to allocate and distribute the funds in the appropriate amounts to state and federal taxing authorities, a health‑insurance plan, 401(k) plans, and client employees’ paychecks.
Marsha Whitfiled admitted in her plea agreement, that instead of distributing those client funds in appropriate amounts at appropriate times, she and Todd diverted those funds to personal use, among other things. As a result, clients’ employees’ 401(k) funds were not fully deposited into their 401(k) accounts, their medical and prescription-drug claims were not fully paid by health insurance, and their taxes were not fully or timely paid to the IRS. Marsha Whitfield also admitted that she gave clients false excuses and misleading explanations when they inquired or complained that Sommet had failed to pay obligations such as payroll, health insurance, 401(k) accounts and other financial obligations.
Whitfield and Todd each face up to 5 years in prison and a $250,000 fine on the conspiracy charge. Whitfield faces up to an additional 20 years in prison and a fine of $250,000 on the count of wire fraud.
The remaining defendant, L. Brian Whitfield, is scheduled for trial on January 21, 2014, in U.S. District Court in Nashville. He is presumed innocent unless and until proven guilty.
The case was investigated by agents with the IRS-Criminal Investigation, the FBI and the Department of Labor-Employee Benefits Security Administration. The United States is represented by Assistant United States Attorney Kathryn Ward.Topeka Man Pleads Guilty to Commercial RobberiesRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to two commercial robberies, U.S. Attorney Barry Grissom said today.
Brendon R. Thompson, 26, Topeka, Kan., pleaded guilty to two counts of robbery. On Nov. 16, 2012, he robbed the EZ Payday Advance store at 2613 S.W. 21st Street in Topeka. On Jan. 17, 2013, he robbed the Family Dollar at 1313 S.W. 21st Street in Topeka.
Sentencing is set for Nov. 5. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Three Doctors Admit Accepting Bribes for Test Referrals to New Jersey Clinical LaboratoryRead the Press Release
NEWARK, N.J. – Three New Jersey doctors admitted today they accepted tens of thousands of dollars in bribes from Parsippany, N.J.-based Biodiagnostic Laboratory Services LLC (BLS) as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Dennis Aponte, 46, of Cedar Grove, N.J.; Claudio Dicovsky, 51, of Fort Lee, N.J.; and Franklin Dana Fortunato, 63, of Montville, N.J., each pleaded guilty to violating the Federal Travel Act. Fortunato also pleaded guilty to filing a false tax return, admitting that from 2004 to 2008, he failed to disclose and report as income more than $640,000 in bribe money and patient co-pays and failed to pay more than $160,000 in taxes he owed as a result of that unreported income. The defendants entered their guilty pleas today before U.S. District Judge Stanley R. Chesler in Newark federal court.
“Decisions about medical care should not be influenced by doctors and providers who are more interested in lining their pockets than in providing quality healthcare,” U.S. Attorney Fishman said. “The doctors who pleaded guilty today admitted making decisions about the care they provided based on being paid in return for their referrals. We will continue to seek out and punish those doctors and other medical professionals who put profit before patient care.”
Newark FBI Special Agent in Charge Aaron T. Ford said: “Patients have every right to insist that their physician is making medical referrals based on what is best for the patient. However, these three physicians decided to accept bribes in exchange for referrals. These types of kickback arrangements cripple the healthcare industry and severely impact patient care. The FBI remains committed to investing its resources to combat these types of schemes.”
“Today’s pleas should send a loud and clear message that kickbacks and unnecessary billing have no place in our Federal healthcare system,” Thomas O’Donnell, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Region covering New Jersey, said. “We will aggressively investigate those suspected of defrauding taxpayers and the Medicare program.”
According to documents filed in this and other cases and statements made in court:On April 9, 2013, federal agents arrested BLS president and part owner, David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and New Jersey physician Frank Santangelo, 43, of Boonton, N.J. The charges against BLS and Santangelo are pending.
Dicovsky
Dicovsky admitted he agreed with David Nicoll to accept bribes from BLS in exchange for his referral of blood specimens. To disguise those bribes, Dicovsky and BLS entered into a sham lease agreement and a sham service agreement in which the monthly bribe payments of more than $5,000 were characterized as “lease” and “service” payments. While the lease agreement purported to be for 1,000 square feet of space, little or no space was allocated to BLS in Dicovsky’s medical office in Paterson, N.J. Between November 2006 and August 2009, Dicovsky received more than $224,000 in bribe payments from BLS, and BLS made more than $800,000 through testing on blood specimens referred by Dicovsky.
Fortunato
On May 2, 2013, two former sales representatives of BLS, Peter Breihof, 42, of Nutley, N.J., and William Dailey, 41, of Wall, N.J., pleaded guilty to an information charging them with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act. They admitted using phony lease and service agreements to bribe physicians to send their patients’ blood samples to BLS. Breihof and Dailey also admitted that individuals acting on behalf of BLS paid various physicians a fee per test on behalf of BLS in order to induce those physicians to order more of the blood tests than they otherwise would have.
Fortunato admitted entering into bribe arrangements with BLS through Breihof, with David Nicoll’s knowledge and approval, for the referral of blood specimens of patients of Fortunato’s Montclair, N.J., practice. Fortunato received more than $100,000 in bribe payments – often more than $5,000 per month – from BLS disguised through sham lease and sham service agreements between 2006 and 2009, and BLS made more than $430,000 through testing on blood specimens referred by Fortunato.
Aponte
Aponte admitted that he and David Nicoll agreed that BLS would pay Aponte bribes to refer to BLS blood specimens from the patients of his West New York, N.J., medical practice. From October 2012 to March 2013, Nordman, acting at David Nicoll’s direction, paid Aponte approximately $3,000 per month in cash in return for blood specimens referred to BLS. The lab made more than $175,000 through testing on blood specimens referred by Aponte.
The count to which Aponte, Dicovsky and Fortunato each pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Fortunato also faces a maximum potential penalty of five years in prison and a $250,000 fine on the filing a false tax return charge. Sentencing for all three defendants is scheduled for Oct. 22, 2013.
Aponte has agreed to forfeit $235,000, Dicovsky has agreed to forfeit more than $220,000, and Fortunato has agreed to forfeit more than $635,000. The investigation has so far recovered more than $2 million through forfeiture.
On June 10, 2013, David Nicoll, Scott Nicoll, Nordman, and four other associates of BLS pleaded guilty to informations charging them with one count of conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of money laundering. The charges and allegations against Santangelo and BLS are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge O’Donnell; IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
13-292
Defense counsel:
Aponte: John Vazquez Esq. & Michael Critchley Esq., Roseland, N.J.
Dicovsky: Gerald Miller Esq., Jersey City, N.J.
Fortunato: Ricardo Solano Esq., Newark, N.J.Aponte Information
Dicovsky Information
Fortunato InformationThree Defendants Charged with Federal Crimes in Sex Trafficking of A Child InvestigationRead the Press Release
Defendants Face Imprisonment terms of 10 years to Life
BINGHAMTON, NEW YORK - United States Attorney Richard S. Hartunian announced that Lynette Tilden, Edward Tilden, and Alexandria Samson Davall, all from Utica, New York, were arrested by the FBI and charged by a federal felony complaint with three federal offenses in connection to a joint federal and state investigation concerning a prostitution ring engaged in the sex trafficking of a minor. Defendants appeared in federal court in Syracuse, New York on July 16, 2013 and were remanded to the custody of the U.S. Marshal’s Service pending further proceedings.
The federal charges stem from an investigation conducted by the FBI-Albany Division, New York State Police, Oneida County District Attorney’s Office, Utica Police Department, and the Oneida County Child Advocacy Center. The investigation concerned a prostitution ring involved in selling a minor to engage in sexual conduct in exchange for money and drugs. The prostitution ring utilized the website backpage.com to advertise the prostitution. The ring also utilized a texting network to advertise their prostitution business. In addition to the three defendants named above and being charged with federal crimes, the Oneida County District Attorney has charged several other defendants with state crimes in connection to this overall joint investigation. The investigation is continuing.
Defendants Lynette Tilden, Edward Tilden, and Alexandria Samson Davall have been charged with the following three federal offenses and face the following possible penalties if convicted:
1)[Sex Trafficking Of A Child]
In and about February of 2012, in the Northern District of New York and elsewhere, defendants Lynette Tilden, Edward Tilden, Alexandria Samson Davall, and others, while aiding and abetting each other, while in and affecting interstate commerce, did knowingly recruit, entice, harbor, transport, provide, obtain and maintain by any means a person, or benefit, financially or by receiving anything of value, from participation in a venture which engaged in any such act, where the person had not attained the age of 18 years at the time, knowing that the person would be caused to engage in a commercial sex act.
In violation of Title 18, United States Code, Sections 1591(a) & (b) and Section 2. Potential Penalties: Statutory Mandatory Minimum 10 years prison and a Maximum of Life. Maximum possible Fine of $250,000.
2)[Persuading And Inducing A Child To Engage In Prostitution]
In and about February of 2012, in the Northern District of New York and elsewhere, defendants Lynette Tilden, Edward Tilden, Alexandria Samson Davall, and others, while aiding and abetting each other, while using any facility or means of interstate commerce, did knowingly persuade, induce, entice, and coerce an individual who had not attained the age of 18 years to engage in prostitution.
In violation of Title 18, United States Code, Section 2422(b) and Section 2.
Potential Penalties: Statutory Mandatory Minimum 10 years prison and a Maximum of Life. Maximum possible Fine of $250,000.
3)(Distribution Of Heroin And Cocaine To A Minor)
In and about February of 2012, in the Northern District of New York and elsewhere, defendants Lynette Tilden, Edward Tilden, and Alexandria Samson Davall, while aiding and abetting each other and who were at least 18 years of age at the time, knowingly and intentionally distributed a controlled substance to a person under 21 years of age, and more specifically a person who was 16 years of age at the time, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2. That violation involved heroin and cocaine, Schedule I and II controlled substances, respectfully, in violation of Title 21, United States Code, Section 859(a).
Potential Penalties: Statutory Mandatory Minimum 1 year prison and a Maximum of 40 years. Maximum possible Fine of $1,000,000.
Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in court.
Syracuse, New York - Upstate Laboratories, Inc., pled guilty to one count of felony mail fraud related to the falsification of over 3,300 laboratory results from 2008 through 2010.Read the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that Upstate Laboratories, Inc., 6034 Corporate Drive, East Syracuse, New York pled guilty before Judge Glenn T. Suddaby to one count of felony mail fraud related to the falsification of over 3,300 laboratory results from 2008 through 2010.
As set forth in the plea agreement and charge, Upstate Laboratories has been a certified laboratory in the business of performing chemical analysis of water and soil samples supplied by public and private clients. Samples for which chemical degradation was an issue required Upstate Laboratories to perform analysis within specified time-frames (“holding times”) after the samples were obtained. Upstate Laboratories further promised to utilize required procedures to ensure that the samples did not degrade.
For samples that required a prompt turnaround time, Upstate Laboratories charged a fee greater than for samples that did not. For all samples, Upstate Laboratories represented to clients that analysis would be and was performed in accordance with required analysis standards. Upstate Laboratories submitted invoices for its analysis and was paid through use of the United States mail.
Notwithstanding representations of proper and timely sample analysis, from 2008 through 2010 Upstate Laboratories engaged in the routine “backdating” of samples results where employees changed the dates when the samples were analyzed to make it appear that analysis had occurred within the required time periods when in fact they had not. Upstate Laboratories thereafter prepared false and fraudulent analysis reports representing that samples were properly analyzed within required time frames and that the results were valid when they were not. During the course of the scheme to defraud, Upstate Laboratories falsified results and mailed fraudulent results to clients including the following:
CLIENT NAME
1. Village of Moravia, NY
1. Two Guys From Italy Pizza Restaurant, West Monroe, NY
2. Town of Camillus, NY
3. Steuben County, NY – Division of Solid Waste
4. Oswego County, NY – Department of Health
5. Oswego County, NY – Department of Solid Waste
6. Cortland County, NY – Soil and Water Conservation District
7. Liquid Products, LLC, Waterloo, NY
8. Hanson Aggregates New York, LLC, Poland, NY
9. Casella Waste Systems via On-Site Technical Services, Wellsville, NY
10. A & P Water Testing, Morrisville, NY
11. Wolcott Landfill, Wolcott, NY
12. New York State Department of Transportation – Region 7
13. Hannibal Hills Trailer Park, Hannibal, NY
14. Ontario County, NY - Recycling and Landfill Management
15. Fulton County, NY - Department of Solid Waste
16. Barton and Loguidice, Liverpool, NY
17. Oswego Heat Treating, Inc – Oswego, NY
18. Town of Oswego, Oswego, NY
19. Agro-Farm, Inc, Norwich, NY
20. Tri-Boro Municipal Authority, Susquehanna, PA
21. Village of Endicott, NY – Waste Water Treatment Plant
22. Sullivan County, NY – Department of Public Works
23. Fagan Engineers via Franklin County, NY
24. Applied Testing and Geosciences, Bridgeport, PA
25. City of Tonawanda, NY
26. Oneida – Herkimer Solid Waste Authority, Utica, NY
27. Town of Lumberland, NY
28. Madison County, NY – Department of Solid Waste
29. Kerry Bio-Science, Rochester, MN
30. Ameresco, Inc, Various locations throughout United StatesUpstate Laboratories has agreed to pay to the United States a criminal fine of $150,000, but that from this total, the amount up to the entire fine shall be suspended on the condition that it be paid at the date of imposition of sentence to victims identified in this plea agreement or identified by the Court as entitled to restitution. Nothing about the possible suspension of the criminal fine sets a maximum amount of restitution that must be paid. Rather, Upstate Laboratories must pay all restitution to victims as determined by the Court, even if the amount exceeds $150,000.
Also pursuant to the plea, Upstate Laboratories will be placed on a term of probation for five years. As part of its probation, Upstate Laboratories will be required to develop, fund and implement a comprehensive Environmental Compliance Plan ("ECP") to prevent future violations. Finally, Upstate Laboratories is not permitted to seek or take a tax deduction for any monies paid as a fine.
Sentencing has been set for December 4, 2013.
This case was investigated by Special Agents of the Environmental Protection Agency, Office of Inspector General and Criminal Investigation Divisions. The case is being prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-448-0726 or cell phone 315-391-1110.
Steinauer Woman Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on July 16, 2013, an indictment was unsealed charging Angie Ray Shera, age 38 of Steinauer, with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing methamphetamine between January of 2011 and February of 2013.
The possible penalty is not less than 10 years and up to life in prison and a fine of up to $10,000,000. Following any prison term, there would be a term of supervised release of not less than five years.
Shera appeared in federal court in Lincoln on July 17, 2013, and was ordered held without bond. Trial is scheduled to begin on September 10, 2013.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff's Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department, and by the Nebraska State Patrol.Six Defendants Plead Guilty in Auto Accident Insurance Fraud SchemeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that six defendants pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. on Monday, the day trial was set to begin. The following defendants pleaded guilty to fraud charges related to an automobile accident insurance fraud scheme:
Bobby Lee Kimble, 42, of Athens, La., pleaded guilty to conspiracy, wire fraud, and health care fraud;
Joe Abbott, 54, of Arcadia, La., pleaded guilty to conspiracy, mail fraud, and health care fraud;
Marcus Kimble, 30, of Arcadia, La., pleaded guilty to conspiracy, wire fraud, and health care fraud;
Damario Henderson, 29, of Homer, La., pleaded guilty to conspiracy and health care fraud;
Monica Jenkins, 25, of Athens, La., pleaded guilty to conspiracy, mail fraud, and health care fraud; and
Larry Kimble, 33, of Athens, La., pleaded guilty to conspiracy and wire fraud.
The members of the ring conspired to stage and fabricate automobile accidents and submit fraudulent claims to insurance companies for bodily injury and property damage. The “Kimble Ring,” which was composed of family, friends and associates, staged accidents including two automobile rear-end collisions, single automobile collisions with trees, and false hit and run claims. False claims were filed for accidents in Bienville Parish; Ruston, La.; Athens, La.; and Claiborne Parish between December 2007 and March 2008.
The group faces up to five years in prison and three years of supervised release for conspiracy to commit fraud. They face 10 years in prison and three years of supervised release for health care fraud, up to 20 years in prison and three years supervised release for wire fraud, and up to 20 years in prison and two years supervised release for mail fraud. The charges also each carry a $250,000 fine and restitution. Sentencing dates of November 13 and 14 of 2013 were set for the defendants.
“This group was motivated by greed and their goal was to get as much money as possible by defrauding insurance companies out of thousands of dollars,” Finley stated. “Their actions placed unnecessary burdens on the local insurance system by causing money and time to be misspent on false claims. This office will continue to prosecute these types of cases to the fullest extent of the law.”
The Louisiana State Police investigated the case. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.Sioux Falls Man Pleads Guilty and Is Sentenced for Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Travis Vacek, age 34, of Sioux Falls, South Dakota, has pled guilty to Count II of the Amended Information that charged him with Unlawful Taking of Migratory Birds and Lacey Act Violations.
Vacek was sentenced on July 15, 2013, by U.S. Magistrate Judge John E. Simko to 1 year probation, $1,350 in restitution, a $200 fine, and a $25 special assessment to the Federal Crime Victims Fund. Vacek’s hunting privileges were also revoked for 1 year.
The charges stem from an incident wherein Vacek, along with a group of friends known as “Team Those Guys” hunted on November 24, 2012, in Miner County, South Dakota. Vacek illegally killed 18 geese using an electronic device. Vacek admitted he knew it was illegal to use said device while goose hunting during this time of the year. After killing the geese, they were transported from the field to various locations, in violation of federal law.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.Real Estate Developer Sergio Benitez Sentenced to 22 Months’ Imprisonment for Defrauding NYC Department of Housing Preservation & DevelopmentRead the Press Release
Earlier today, Sergio Benitez, a developer of affordable housing projects in Brooklyn for the New York City Department of Housing Preservation and Development (HPD), was sentenced to a term of imprisonment of 22 months followed by three years of supervised release, including a three-year ban from applying for any other city or governmental housing contracts, based on his conviction for wire fraud conspiracy. He was also ordered to pay $228,200 in restitution to the City of New York and fined $10,000. Benitez previously paid an additional $228,200 in forfeiture to the government. The sentencing proceeding was held before United States District Judge Nina Gershon at the U.S. Courthouse in Brooklyn, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Daniel R. Petrole, Deputy Inspector General, United States Department of Labor (DOL) Office of Inspector General; and Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI).
Benitez was arrested on October 6, 2011, as part of a seven-defendant case involving corruption at HPD and ultimately pleaded guilty to wire fraud conspiracy. According to the government’s filings and other public records, Benitez was a major real estate developer of affordable housing projects sponsored by HPD. Benitez defrauded HPD by demanding kickbacks from a construction contractor in return for hiring him as the general contractor on the Cooper Decatur Cluster affordable housing development in Brooklyn. From 2006 until Benitez’s arrest, the contractor paid two percent of the funds he received from HPD to Benitez, for a total of $228,200 in kickbacks. In order to cover the cost of these kickbacks, the contractor inflated his invoices to HPD by a similar amount. To disguise the kickbacks, Benitez issued sham invoices to the contractor from one of Benitez’s several companies, All Boro Painting & Repairs, Inc. In the meantime, Benitez was featured as a model real estate developer in the New Housing Marketplace Plan issued by HPD in early 2011, where he was quoted as saying, “I’m originally from Brooklyn, and I see my work as a way of giving back.”
“Sergio Benitez claimed that he was ‘giving back’ to Brooklyn, but in reality, all he gave the people of the City of New York was a hefty bill for his own corruption. In taking hundreds of thousands of dollars in kickbacks, Benitez stole from the very community he had pledged to serve, by diverting funds meant for affordable housing construction into his own pockets,” stated United States Attorney Lynch. “Today’s sentence shows that even the most influential real estate developers will be brought to justice if they steal public funds for corrupt personal gain.”
FBI Assistant Director-in-Charge Venizelos stated, “While Sergio Benitez publicly touted his community-minded commitment to Brooklyn, he was privately taking kickbacks whose cost was passed on to the city. Actions speak louder than words, and his actions were self-serving and deceitful.”
DOI Commissioner Gill Hearn stated, “This developer hurt low-income New Yorkers, fleeced the taxpayers, and is going to prison for milking the City’s affordable housing program for kickbacks. His undoing in this joint investigation should warn off anyone tempted to tack the cost of corruption onto the City’s bill.”
United States Attorney Lynch thanked the Internal Revenue Service, Criminal Investigation, New York; the United States Department of Housing and Urban Development; and the New York City Police Department for their cooperation in this case.
To date nine defendants, including HPD’s former Assistant Commissioner, two other supervisory officials at HPD, and six real estate developers and general contractors have pleaded guilty to charges including racketeering conspiracy, bribery and wire fraud conspiracy in connection with the government’s ongoing investigation of widespread corruption of the affordable housing industry. Benitez is the third defendant to have been sentenced.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Anthony Capozzolo and Claire Kedeshian.
The Defendant
SERGIO BENITEZ
Colts Neck, New Jersey
Age: 53Pittsburgh Man Sentenced for Transporting Stolen Goods from Pennsylvania to TexasRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 24 months imprisonment, a $15,000 fine, and two years supervised release on his conviction of interstate transportation of stolen goods, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on David Michael Spaid, 56.
According to the information presented to the court, Spaid unlawfully transported, transmitted and transferred and caused to be transported, transmitted and transferred in interstate commerce goods that were stolen, with a value of $5,000 or more, knowing the same to have been taken by fraud.
On or about Oct. 14, 2011, two employees of the Allegheny Ludlum plant in Harrison Township, Kenneth Hill and Timothy Angely, stole four "super sacks" of nickel that had been shipped to Allegheny Ludlum from Russia via Baltimore, Md. The nickel weighed in excess of 17,000 lbs. and had a value of approximately $151,000. Hill and Angely transported the stolen nickel to a nearby open field where it was picked up by a driver working for David Michael Spaid at AAA Scrap Metal, located in Pittsburgh. Spaid negotiated the purchase of the stolen nickel from PJ Eberhardt, who worked in conjunction with Hill and Angely. Spaid would "front" Eberhardt with $30,000, and then pay an additional amount according to a prearranged formula for the value of the nickel after Spaid was able to sell the stolen nickel to a buyer. In this case, Spaid sold the nickel briquettes to ECS Refining in Terrell, Texas, and the nickel was shipped out by Spaid's company in western Pennsylvania to Texas at his direction on or around Oct. 21, 2011. Spaid indicated to the Pennsylvania State Police, who interviewed him, that this shipment of stolen nickel was the last of at least ninethat he received from Eberhardt.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Spaid.
Philadelphia La Cosa Nostra Capo Sentenced to<br /> 97 Months in PrisonRead the Press Release
Anthony Staino was sentenced today to serve 97 months in prison for his participation in a racketeering conspiracy involving extortion, loan sharking and illegal gambling, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division.
Staino, 57, of Swedesboro, N.J., was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Staino was sentenced to serve three years of supervised release.
On Apr. 19, 2013, Staino pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. Through court documents and statements made in court at the time of the plea, Staino admitted that, as a made member and capo of the Philadelphia LCN Family, he gave a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan. Staino also admitted that he ran an illegal electronic gambling device business for the mob, providing video poker machines and other gambling devices for bars, restaurants, convenience stores, coffee shops and other locations in Philadelphia and its suburbs, and then collected the illegal gambling proceeds.
A total of 12 leaders, members and associates of the Philadelphia LCN Family have pleaded guilty or been convicted by a jury as part of this case. Eight of the defendants, including Staino, have been sentenced, and four are awaiting sentencing.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being investigated by the FBI, Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, New Jersey State Police, Philadelphia Police Department, U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
Patrick Charles Thomas Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 15, 2013, before U.S. Magistrate Judge Keith Strong, PATRICK CHARLES THOMAS, a 55-year-old resident of Cut Bank, pled guilty to (2) counts of conversion of secured property. Sentencing has been set for October 21, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
THOMAS was a rancher/farmer near Cut Bank who obtained, over the years, numerous loans from the U.S. Department of Agriculture, Farm Services Agency (FSA). As part of that lending and borrowing relationship, THOMAS pledged as collateral all livestock, crops, and personal property.
Beginning in or before June of 2006, THOMAS began to sell off hay, grass (grazing), cattle, equipment, and other pledged assets without notifying the FSA of the transactions or the income generated from the sale of those assets.
On December 18, 2008, THOMAS submitted a balance sheet to support his application for financing through FSA showing he had 225 bred cows which would be used as collateral. The FSA had concerns regarding the actual number of cows. They had not been able to get an actual count of the cattle for some time and when chattel inspections had been completed it did not appear that there were as many cattle as they thought should be there. FSA conducted a count December 29, 2008, and located 169 head. When questioned about the discrepancy and the missing 59 head of cows, THOMAS stated they had gone down into Flat Coulee on his neighbor's place and he couldn't get them up.
On March 2, 2009, THOMAS was approved for a $65,000 annual operating loan from FSA which also rescheduled THOMAS's existing FSA loans according to DALR$ (FSA's loan servicing program). The projections used were based, in material part, on the cow numbers shown on the Security Agreement dated December 19, 2008, which showed 225 head of cows and 11 bulls.
On March 31, 2009, FSA performed a chattel inspection and recorded approximately 180 head of cows. Later that year, in October 2009, without notifying or receiving the approval of the FSA, THOMAS sold 105 calves to a Nebraska-based cattle buyer without disclosing to the buyer that the calves were pledged as security to the FSA. THOMAS concealed the sale from the FSA and converted the proceeds - $49,776 - to his own use and benefit.
On February 22, 2010, FSA went to THOMAS's ranch to do a chattel inspection and cattle count for both the Farm Loan Program and for THOMAS's daughter's 2009 LIP claim. FSA counted 99 cows and 3 yearlings, of which 62 were THOMAS's and 6 of which belonged to his daughter. FSA representatives could not read the brand on the remaining 33 head.
On April 22, 2010, FSA and representatives of the Montana Department of Livestock went to THOMAS's ranch to count the cattle. The final tally that day was 81 head of cows, of which 70 had THOMAS's brand, and 11 had other family member's brands. There were also 53 head of unbranded calves. The numbers were significantly less than what FSA had collateralized - or believed to have collateralized on the basis of THOMAS's representations.
Investigation established that between June 11, 2006, and July 13, 2011, THOMAS disposed of and sold at least $162,865.36 in cattle, hay, equipment and other property he had pledged as a collateral to obtain FSA loans, and in which the FSA had a security interest, without the knowledge or approval of the FSA.
THOMAS faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release on each count.
The investigation was conducted by the / a cooperative effort between the U.S. Department of Agriculture - Office of Inspector General.
Nicholas Co. Man Gets Federal Prison Time for Oxycodone Distribution and Money Laundering SchemeRead the Press Release
Keith Keiffer received packages containing thousands of powerful painkiller pills by mail from Fla.; deposited at least $30,000 in bank as payment for pills
CHARLESTON, W.Va. – A Nicholas County pill dealer was sentenced today to four years in federal prison in connection with an oxycodone distribution and money laundering scheme, announced U.S. Attorney Booth Goodwin. Keith Keiffer, 32, of Calvin, Nicholas County, W.Va., previously pleaded guilty in February to conspiracy to distribute oxycodone and conspiracy to commit money laundering. From at least August 31, 2011 until April 27, 2012, Keiffer received at least 15 express mail packages that contained a total of approximately 1,400 30-milligram oxycodone tablets from an individual located in Tampa, Fla. In exchange for the oxycodone tablets, Keiffer deposited cash into bank accounts that were owned and controlled by his pill source of supply. Keiffer deposited at least $30,000 in cash payments in exchange for the oxycodone tablets. Additionally, between June 2011 and February 2012, Keiffer received several hand-delivered packages that contained a total of approximately 4,150 oxycodone tablets from an individual who made trips to West Virginia from Florida.
The West Virginia State Police Bureau of Criminal Investigations, the U.S. Postal Inspection Service, Internal Revenue Service - Criminal Investigation, and the Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Haley Bunn handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Minnesota Woman Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that an Inver Grove Heights, Minnesota, woman charged with Failure to Pay Legal Child Support pled guilty and was sentenced on July 15, 2013, by U.S. District Court Judge Karen E. Schreier.
Allison R. Konstanz, age 35, was sentenced to five years of probation, a $100.00 special assessment to the Federal Crime Victims Fund, and child support restitution in the amount of $39,033.55.
Konstanz was indicted by a federal grand jury on January 8, 2013, for failing to pay over $39,428.00 in past due child support. She was ordered by the First Judicial Circuit Court, Bon Homme County, South Dakota, to pay $459.07 per month for her minor child, commencing April 1, 2001. At the time of indictment, she had not made a child support payment since February of 2011, and the total arrearage amount was $39,428.34.
This case was investigated the Department of Health and Human Services, Office of Inspector General Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
The defendant was released from custody.Minneapolis Felon Pleads Guilty to Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 59-year-old Minneapolis felon pleaded guilty to possessing a nine-millimeter pistol. Robert Lee Powers pleaded guilty to one count of being a felon in possession. Powers, who was indicted on April 22, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Powers admitted that on March 18, 2013, during the execution of a state search warrant of his residence, police recovered a nine-millimeter, semi-automatic pistol and approximately five grams of heroin. Because he is a felon, he is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Hennepin County for third-degree sale of crack cocaine (1989), offering a forged check (1992), fourth-degree sale of crack cocaine (1992), attempted first-degree criminal sexual conduct (1992), a third-degree controlled substance crime (2000), an attempted fifth-degree controlled substance crime (2004 and 2005), a fifth-degree controlled substance crime (2008 and 2009), and theft of a motor vehicle (2009). In addition, Powers was convicted in Washington County for conspiracy to commit a controlled substance crime (1996) and being a predatory offender providing false information (2005).Because at least three of these convictions constituted violent crimes or major drug crimes, Powers is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted under federal law for being a felon in possession of a firearm or ammunition. Judge Nelson will determine Powers’s sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than two dozen serious habitual criminals through Project Exile Minneapolis.Michigan Man Sentenced for Lacey Act ViolationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rockford, Michigan, man has pled guilty and been sentenced for a Lacey Act Violation.
Robert Klawieter, age 56, appeared before U.S. Magistrate Judge John E. Simko on July 15, 2013, and pled guilty. Klawieter was sentenced to 1 year unsupervised probation, a $2,500 fine, $1,000 in restitution, and a $25 special assessment to the Federal Crime Victims Fund. He was charged by an Information filed on April 3, 2013.
The charges stem from an incident occurring in November 2011 in which Klawieter did knowingly transport, sell, receive, and acquire one white-tailed buck deer in interstate commerce from South Dakota to Michigan, when he did not have the proper tag for the illegally harvested deer.
The investigation was conducted by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.Mexican National Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 27-year-old Mexican national was indicted for entering the United States illegally after previously being deported as an aggravated felon. Hector Rios-Guzman was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on May 15, 2013, Rios-Guzman, also known as Hector Rios, was found in the U.S. after being deported to Mexico in 2012, following a 2004 Hennepin County conviction for terroristic threats. On May 15, 2013, Rios-Guzman was arrested following a traffic stop in Bloomington. According to a law enforcement affidavit filed in the case, Rios-Guzman fled the scene on foot before he was arrested. Rios-Guzman has a previous conviction in the District of Minnesota for illegal re-entry.
If convicted of the federal charges now levied against him, Rios-Guzman will face a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Maryland Man Pleads Guilty to 12 Felony ChargesRead the Press Release
In Series of Burglaries at University Dormitory
-Took Laptops, Other Items in January 2013 at George Washington University-WASHINGTON - James Dunmore, 39, of Hyattsville, Md., pled guilty today to first-degree burglary and other felony charges stemming from a series of burglaries he committed this year at George Washington University, U.S. Attorney Ronald C. Machen Jr. announced.
Dunmore pled guilty in the Superior Court of the District of Columbia to a total of 12 charges, including first-degree burglary, second-degree burglary, second-degree theft, and unlawful entry. The Honorable Robert I. Richter set sentencing for Sept. 13, 2013. Dunmore faces a potential sentence of more than 20 years in prison.
According to a proffer of evidence, signed by the defendant as well as the government, Dunmore entered a total of five apartments in January 2013 in the Ivory Tower Dormitory at George Washington University in Northwest Washington. Over two separate days, he took various electronic items, including laptops, and other property belonging to seven students.
The series of crimes began on Jan. 25, 2013. That day, Dunmore entered the residence hall and went into a student’s apartment while the student was in the shower. He took a laptop and the student’s wallet, which contained the student’s G-World card, a student ID card that can be used to electronically gain entry to the university’s buildings.
Then, on Jan. 28, 2013, Dunmore entered four more apartments in the same building. He got into the residence hall at about 1:30 p.m. by following another student into the building. First, he went to the sixth floor, where he entered three separate apartments. He took a pillowcase, three laptops, a camera and an iPod from one apartment. In another, a student was asleep in bed when Dunmore entered the room and pretended to be looking for someone he knew; he took an iPod from that apartment. He went into a third apartment on the sixth floor, but left without taking anything after he saw someone there. Dunmore then went to the building’s third floor and entered yet another apartment, taking two laptops, a video game system, and a student’s suitcase, which he used to carry the items away.
One student became suspicious of Dunmore’s activities and alerted campus police, who stopped Dunmore on his way out of the building with the stolen items in his possession.
In announcing the plea, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department and the George Washington University Police Department. He also acknowledged the efforts of Paralegal Specialists Allison Gregory Daniels and Victim/Witness Advocates Kristina Rose and Katina Adams-Washington, as well as Intern Julie Herward. Finally, he commended the work of Assistant U.S. Attorney Scott Sroka, who investigated and indicted the case.
13-248
Maryland Man Found Guilty of Felony ChargesRead the Press Release
In 2012 Shooting in Southeast Washington
-He and Another Man Targeted Victims Who Were in a Car-WASHINGTON - Delonte Smith, 20, of Capitol Heights, Md., was found guilty by a jury today of assault with a dangerous weapon and other charges stemming from a shooting that took place last year in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Smith, also known as “Unc,” was found guilty in the Superior Court of the District of Columbia of one count of conspiracy to commit a crime of violence, two counts of assault with a dangerous weapon, two counts of possession of a firearm during a crime of violence, and two counts of simple assault. The verdicts followed a two-week trial. The Honorable Heidi M. Pasichow scheduled sentencing for Sept. 20, 2013.
According to the government’s evidence, at about 7:30 p.m. on Dec. 11, 2012, Smith approached a vehicle that was parked in the 5000 block of H Street SE and told the man in the driver’s seat to get out. When the driver refused, Smith tried to open the car door, which was locked. He then walked around the vehicle to the passenger’s side and told the woman in the front passenger’s seat to get out of the car.
In the meantime, Smith’s best friend and accomplice, Jeffrey Ray Tyson, 20, also known as “Baby Boy,” approached the driver’s side door and produced a handgun. Tyson tapped several times on the driver’s side window with the handgun and ordered the driver out of the car. The driver refused, put the car into drive, and attempted to drive away from the area. Tyson fired six shots at the vehicle, at least two of which hit the car. Although neither of the people in the car was hit, the two rounds that struck the vehicle were in the direction of the driver’s head. The car’s occupants flagged down patrol officers just a few blocks away.
Tyson died as the result of a homicide five days later, in an unrelated incident.
In announcing the verdict, U.S. Attorney Machen expressed appreciation for the work of the Metropolitan Police Department (MPD,) which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Tony Griffith; Litigation Technology Specialists Leif Hickling and Claudia Gutierrez; Victim/Witness Advocate Jim Brennan, Victim/Witness Supervisor Michael Hailey, Victim/Witness Security Specialist Tanya Via, and Victim/Witness Services Coordinator David Foster. Finally, he praised the work of Assistant U.S. Attorney Richard E. DiZinno, who prosecuted the case.
13-251Martha Mae Mitchell Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 16, 2013, before U.S. Magistrate Judge Keith Strong, MARTHA MAE MITCHELL, a 57-year-old resident of Box Elder and an enrolled member of the Chippewa Cree Tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for October 22, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On January 23, 2013, MITCHELL became frustrated when a 9-month-old child would not stop crying. MITCHELL told law enforcement that she twisted the baby's legs and both arms causing injuries to them. MITCHELL further told law enforcement that she was "shocked and disgusted" at herself. The crime occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
Medical evidence would have shown that the victim suffered fractures to all four of the baby's limbs. The victim was hospitalized for a week. The medical evidence would also show that the victim sustained additional injuries that may not be attributed to MITCHELL's conduct.
MITCHELL faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Manhattan U.S. Attorney Announces Charges Against Eight Individuals in Connection with $2.3 Million Bribery and Kickback Scheme to Secure Business from A Medical Cost-Management CompanyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Thomas O’Donnell, the Special Agent-in-Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), and Steven G. Hughes, the Special Agent-in-Charge of the New York Office of the U.S. Secret Service today announced charges against eight individuals for their alleged involvement in a lucrative scheme in which information technology vendors paid over $2.3 million in bribes and kickbacks to secure business from executives of a Manhattan-based medical cost management company (the “New York Company”). The defendants charged with paying the bribes and kickbacks are SARVESH DHARAYAN, SANJAY GUPTA, VENKATA ATLURI, RANGARAJAN KUMAR, VADAN KUMAR KOPALLE, and DARREN SIRIANI. The defendants charged with receiving the bribes and kickbacks are ANIL SINGH and KEITH BUSH. DHARAYAN, GUPTA, KOPPALLE, and SIRIANI were arrested this morning at their homes in New Jersey, and were presented in Manhattan federal court this afternoon before U.S. Magistrate Judge James L. Cott. SINGH, who was previously arrested in April 2013, pled guilty to honest services fraud and other charges before U.S. District Judge Denise L. Cote on July 11, 2013. BUSH, who was also arrested previously on July 12, 2013, is next scheduled to appear in court for a pretrial conference on August 15, 2013. ATLURI and KUMAR are not yet in custody.
Manhattan U.S. Attorney Preet Bharara said: “For the eight defendants charged in this multi-million dollar scheme, bribes and kickbacks were allegedly the cost they imposed for doing business with this medical-cost management company. As today’s charges detail, the defendants achieved their years-long fraud through fake companies, sham invoices and made-up consulting services. Today’s actions underscore our commitment to work with our law enforcement partners to bring to justice individuals who break the law out of greed.”
HHS-OIG Special Agent-in-Charge Thomas O’Donnell said: “This scheme was motivated by greed and it deprived its victim, a company in the health care field, of the honest labor of its employees. We will continue to aggressively investigate those who pay kickbacks and bribes to gain an advantage in the public and private health care sectors.”
USSS Special Agent-in-Charge Steven G. Hughes said: “The Secret Service continues to enjoy its partnership with the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General. We find partnerships such as this to be an effective way to share resources and stop criminals from continuing to engage in fraudulent schemes.”
According to the allegations contained in the Complaint, the Informations filed against BUSH and SINGH, and other statements made in Manhattan federal court:
SINGH was employed as a Senior Vice President and the Chief Information Officer at the New York Company, which provided nation-wide medical cost management solutions including, among other things, medical reimbursement services, and BUSH was employed as the company’s Director of Database Administration. SINGH and BUSH had considerable influence over the selection of vendors, specifically vendors of database administrators (“DBAs”), hired by the New York Company.
From 2008 to September 2012, various individuals collectively paid over $2.3 million in money and other benefits to SINGH and BUSH in exchange for SINGH’s and BUSH’s agreement to steer millions of dollars of the New York Company’s DBA business to them. Specifically, as alleged:
- DHARAYAN, the owner of a New Jersey information technology company (“Vendor 1”) and GUPTA, an employee of Vendor 1, paid approximately $1,722,620 in kickbacks and bribes to BUSH and SINGH in exchange for receiving DBA business from the New York Company. From 2010 to 2012, the New York Company paid Vendor 1 approximately $6,625,479.20 for placing DBAs with the New York Company.
- ATLURI, the owner of another New Jersey information technology company (“Vendor 2”), paid approximately $190,436.75 in kickbacks and bribes to BUSH and SINGH in exchange for receiving DBA business from the New York Company. From 2008 to 2012, the New York Company paid Vendor 2 approximately $11,495,804.88 for placing DBAs with the New York Company.
- KUMAR paid approximately $247,634 in kickbacks and bribes to BUSH and SINGH in exchange for their agreement to steer DBA business to another New Jersey information technology company (“Vendor 3”). From 2009 to 2012, the New York Company paid Vendor 3 approximately $2,593,210.38 for placing DBAs with the New York Company.
- KOPALLE, who was in charge of delivery and operations at a Texas information technology company (“Vendor 4”), paid approximately $142,967.50 in kickbacks and bribes to BUSH and SINGH in exchange for receiving DBA business from the New York Company. From 2009 to 2010, the New York Company paid Vendor 4 approximately $1,035,660 for placing DBAs with the New York Company.
- SIRIANI, the owner and operator of another New Jersey information technology company (“Vendor 5”) paid approximately $23,000 to $29,000 in cash kickbacks and bribes to BUSH and SINGH in exchange for receiving business from the New York Company. SIRIANI also paid for hotel rooms in Las Vegas and Costa Rica, deep sea fishing, massages, sports tickets, and other things, all in exchange for receiving business from the New York Company. From 2008 to 2012, the New York Company paid Vendor 5 approximately $1,177,600.91 for various services and products.
According to the Complaint, DHARAYAN, GUPTA, ATLURI, KUMAR, and KOPALLE paid the kickbacks and bribes through conduit companies established by BUSH and SINGH for the very purpose of disguising the true nature and origin of the illegal payments. To further conceal the bribery and kickback scheme, BUSH and SINGH sent false invoices to the conduit companies for consulting services that never occurred. Many of the kickbacks and bribes were paid pursuant to these false invoices.
DHARAYAN, 42, of Edison, New Jersey, GUPTA, 38 of East Windsor, New Jersey, ATLURI, 41, of Monmouth Junction, New Jersey, KUMAR, 47, of Monroe, New Jersey, KOPALLE, 43, of Edison, New Jersey, and SIRIANI, 45, of Matawan, New Jersey, were each charged with one count of conspiracy to commit honest services fraud, which carries a maximum term of 20 years in prison, one count of conspiracy to violate the Travel Act, which carries a maximum term of five years in prison, one count of honest services fraud, which carries a maximum term of 20 years in prison, and one count of violating the Travel Act, which carries a maximum term of five years in prison. DHARAYAN, GUPTA, ATLURI, KUMAR, and KOPALLE were also charged with one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison.
SINGH, 40, a resident of East Brunswick, New Jersey pled guilty to one count each of conspiracy to commit honest services fraud, conspiracy to violate the Travel Act, honest services fraud, violating the Travel Act, and conspiracy to commit money laundering. He faces a maximum penalty of 70 years in prison on all counts. BUSH, 41, a resident of Rahway, New Jersey, is charged with one count each of conspiracy to commit honest services fraud, conspiracy to violate the Travel Act, honest services fraud, violating the Travel Act, and conspiracy to commit money laundering. He also faces a maximum penalty of 70 years in prison if convicted on all counts.
Mr. Bharara praised the outstanding efforts of HHS-OIG and the U.S. Secret Service in the investigation. He also thanked the New York Company for its assistance and cooperation in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Jason P. Hernandez is in charge of the prosecution. Assistant U.S. Attorney Christine Magdo of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
The charges and allegations contained in the Complaint and the Information filed against BUSH are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Sarvesh Dharayan, et al. Complaint
U.S. v. Anil Singh Information
U.S. v. Keith Bush InformationManhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of California Man for Attempted Sex Trafficking and Possession and Distribution of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced the arrest of CHARLES FAMILETTI, JR. for attempted sex trafficking of a minor as well as for possession and distribution of child pornography. FAMILETTI was arrested by FBI agents in the afternoon of Monday, July 15, 2013, at a corporate apartment that he rents in Manhattan. He was presented Monday evening before U.S. Magistrate Judge James L. Cott in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Charles Familetti not only possessed and distributed child pornography, but even more disturbingly, agreed to pay hundreds of dollars to arrange to have sex with a child. Thanks to the efforts of the FBI, Familetti’s alleged illicit conduct was brought to light, and he will now have to answer to these serious charges.”
FBI Assistant Director-in-Charge George Venizelos said: “There may be no more important mission for the FBI than protecting the most vulnerable of victims. As alleged, this defendant not only possessed and distributed child pornography, he paid someone in an attempt to rape an 11-year-old child. Child pornography is itself predatory, because children are victimized to produce it.”
According to the allegations contained in the Complaint filed in Manhattan federal court:
FAMILETTI was arrested following an FBI sting operation in which he agreed to pay an undercover FBI agent $500 in order to have sex with an 11-year old boy. On July 15, 2013, FAMILETTI met with the undercover agent to confirm the agreement and then took the agent to an ATM and gave him a $100 down payment. Prior to that meeting, FBI agents downloaded what appeared to be several images of child pornography from FAMILETTI via a publically available peer-to-peer file sharing network. During a search of FAMILETTI’s apartment following his arrest, FBI agents also recovered a memory card containing hundreds of images and videos of what appeared to be minor children engaging in sexually explicit conduct.
FAMILETTI, 46, of San Francisco, California, is charged with one count of attempted sex trafficking of a minor, which carries a mandatory minimum sentence of 15 years in prison and a maximum penalty of life in prison. He is also charged with one count of transporting or distributing child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, and one count of possessing child pornography which carries a maximum sentence of 10 years in prison. All three counts also carry a maximum fine of $250,000 or twice the gross gain or loss from the offense.
Mr. Bharara praised the outstanding investigative work of the FBI. He added that the investigation is continuing.
The FBI encourages the public to report suspected child predators and any suspicious activity through their switchboard at (212) 384-1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Patrick Egan is in charge of the prosecution.
The charges contained in the Complaint are merely an accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Charles Familetti Complaint
Man Pleads Guilty to Possessing A Stolen FirearmRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 31-year-old man pleaded guilty to possessing a stolen handgun. Nathan Anderson, of Bloomington, pleaded guilty to one count of possession of a stolen firearm. Anderson, who was charged yesterday via an Information, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Anderson admitted that at approximately 10 p.m. on March 2, 2013, he fell asleep while waiting for his food at a McDonald’s drive-through in Bloomington. Store employees contacted the police, who met with Anderson and found a loaded .45-caliber pistol in his coat. In addition, Anderson admitted that he knew the pistol had been stolen.
For his crime, Anderson faces a potential maximum penalty of ten years in prison. Judge Nelson will determine his sentence at a future hearing. This case is the result of an investigation by the Bloomington Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Madison Man Pleads Guilty to Passing Counterfeit United States CurrencyRead the Press Release
United States Attorney Brendan V. Johnson announced that Adrian Daniel Logan, age 26, of Madison, South Dakota, appeared before U.S. District Judge Karen E. Schreier on July 17, 2013, and pled guilty to Passing Counterfeit United States Currency.
The maximum penalty upon conviction is 20 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 10, 2013, when Adrian purchased a bottle of pop from the La Tapatia Mexican Store in Sioux Falls, and paid for it with a counterfeit $20 bill. After receiving genuine currency as change from the store clerk, Logan attempted to pass another counterfeit $20 bill by requesting change for it. When the cashier recognized the second bill as counterfeit, Logan fled the store.
The investigation was conducted by the Madison Police Department, the Sioux Falls Police Department, and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Jeffrey C. Clapper.
A presentence investigation was ordered and a sentencing date was set for October 7, 2013. The defendant was released on bond pending sentencing.Long Island Art Dealer Indicted for Massive Art Fraud, Money Laundering, and Tax SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Toni Weirauch, the Special Agent-in-Charge of the New York Field Division of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a seven-count Indictment charging GLAFIRA ROSALES, an art dealer, with participating in a $30 million fraud in which she sold over 60 works of fake art to two Manhattan galleries. ROSALES was also charged with money laundering and tax crimes related to the art fraud scheme. Rosales, who was originally charged in a complaint, was arrested on May 21, 2013. The case has been assigned to U.S. District Court Judge Katherine Polk Failla and ROSALES will be arraigned on Friday, July 19, 2013, at 11 a.m.
Manhattan U.S. Attorney Preet Bharara said: “The indictment depicts a complete circle of fraud perpetrated by Glafira Rosales – fake paintings sold on behalf of non-existent clients with money deposited into a hidden bank account. The one thing about this story that is true is that this alleged fraud will be prosecuted.”
IRS Special Agent-in-Charge Toni Weirauch said: “The tax charges alleged in this indictment center on the concealment of taxable income from the sale of counterfeit paintings. This investigation is an excellent example of how the government is dedicated to detecting and investigating all kinds of income tax fraud schemes and seeing that those who commit tax fraud are prosecuted. It is important for the public to feel confident that their government is working to ensure that everyone pays their fair share.”
FBI Assistant Director-in-Charge Venizelos said: “As the indictment alleges, Glafira Rosales knowingly peddled fakes to two Manhattan art galleries. To prolong her scheme for a decade-and-a-half, not only the paintings were fake, but the stories behind them as well. The pictures Rosales painted of the anonymous Swiss client – a pure fiction – and the Spanish collector – a real person but not, as purported, the owner of any of the paintings – were as fake as the dozens of works she attributed to the modern masters.”
According to the allegations contained in the Indictment and the Complaint filed in Manhattan federal court:
Starting in 1994 and continuing through 2009, ROSALES sold more than 60 never-before exhibited and previously unknown works of art that she claimed were painted by some of the most famous artists of the 20th century, including Jackson Pollock, Mark Rothko, and Willem de Kooning. ROSALES sold these works of art to two prominent Manhattan galleries for approximately $33.2 million. In selling some of the paintings to the two galleries, she purported to represent a client with ties to Switzerland who had inherited the paintings and wanted to sell them, but who also wished to remain anonymous (the “Purported Swiss Client”). For the remainder of the paintings, she purported to represent a Spanish collector (the “Purported Spanish Collector”). ROSALES also claimed that a portion of the price paid by the Manhattan galleries would be her commission for selling the paintings and that the remainder would be passed along to her clients.
In contrast to the claims made by ROSALES, as alleged in the Indictment:
- the paintings ROSALES sold were fake, that is, not by the hand of the artists that she represented them to be;
- ROSALES knew that the paintings were counterfeit and that the statements she made about their provenance were false;
- the Purported Swiss Client on whose behalf she purported to sell most of the paintings to the Manhattan galleries never existed;
- the Purported Spanish Collector on whose behalf she claimed to sell the remainder of the paintings to the Manhattan galleries never owned the paintings;
- instead of passing along a substantial portion of the proceeds of the sale of the various paintings, she kept all or substantially all of the proceeds, and transferred substantial portions of the proceeds to an account maintained by her then-boyfriend; and
- ROSALES concealed and disguised the nature, location, source, ownership, and control of the proceeds of sales of the fake works by causing the Manhattan galleries to transfer substantial portions of the proceeds of the sales to foreign bank accounts, and by transferring, and causing to be transferred, proceeds of the sales from foreign bank accounts to accounts maintained in the United States.
ROSALES filed tax returns that falsely claimed she had not kept all, or substantially all of the proceeds from the sale of the purported clients’ paintings, when, in fact, she kept all or nearly all of the proceeds. In total, she failed to report the receipt of at least $12.5 million of income for the years 2006 through 2008.
In addition, ROSALES received most of the proceeds from the sale of the paintings in a foreign bank account that she hid from, and failed to report to, the IRS. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing of a Report of Foreign Bank and Financial Accounts, Form TD F 90-22.1 (“FBAR”). ROSALES failed to file FBARs for the years 2010 and 2011.
ROSALES, 56, of Sands Point, New York, is charged with one count of wire fraud, which carries a maximum of 20 years in prison; one count of money laundering, which carries a maximum of 20 years in prison; three false tax return charges, each of which carries a maximum of three years in prison; and two willful failure to file FBAR charges, each of which carries a maximum sentence of five years in prison.
Mr. Bharara praised the outstanding efforts of IRS-CI and FBI in the investigation, which he noted is ongoing. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Jason P. Hernandez and Daniel W. Levy are in charge of the prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Glafira Rosales Indictment
KC Man Indicted for Child Sex Trafficking, Producing Child PornRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been indicted by a federal grand jury on charges related to child sex trafficking and producing child pornography as part of a scheme that generated more than $200,000 over a three-year period.
Michael Dye, 46, of Kansas City, was charged in a six-count indictment returned under seal by a federal grand jury on Tuesday, July 16, 2013. That indictment was unsealed and made public today upon Dye’s arrest and initial court appearance. Dye remains in federal custody pending a detention hearing on Monday, July 22, 2013.
The federal indictment charges Dye with two separate counts of producing child pornography. Dye allegedly victimized two minors, identified as Child Victim #1 and Child Victim #2, to produce child pornography between June 15, 2005 and Aug. 18, 2008. The indictment also alleges that Dye prostituted Child Victim #2 between June 15, 2005 and Aug. 4, 2007.
Dye is charged with two counts of selling child pornography related to each of the two child victims. Dye is also charged with one count of grooming Child Victim #1 to participate in illegal activity (the production of child pornography).
In a motion filed with the court today, the government seeks to have Dye detained in federal custody without bail. According to the government’s motion, Dye’s actions giving rise to these charges include his active and repeated sexual intercourse with the minor females, his production and sale of child pornography of the two minor females and violent threats against at least one minor female should she ever inform anyone else of these incidents.
Dye allegedly profited extensively from the serial sexual exploitation of at least two minor females. In the course of this investigation, the government developed evidence that Dye used the minor females to produce child pornography for various customers. Dye allegedly exploited the two minor females to one particular individual, who – in exchange for multiple images and videos of child pornography and access to them for sexual favors – paid the two minor females a “weekly allowance” as well as gifts in the form of multiple vehicles, remodeling projects at Dye’s home, various appliances, and other cash payments in a total amount estimated up to $200,000 over a three-year period. In addition, according to the government’s motion, PayPal records show Dye’s account received approximately $8,300, composed of hundreds of transactions from dozens of individuals ranging from $14 to $61. The government will present evidence that these payments were connected to Dye’s use of at least one of the minor victims for online “cam shows” in which the minor victim would expose herself and perform sexual acts on herself for the paying customers, who were watching online.
The government also will present evidence that, during the frequent deposit of these monies into his safety deposit box, Dye told one of the minor victims that if she ever told anyone about this he would have her and her family killed.
Under federal statutes, Dye faces a potential life imprisonment upon conviction of the sex trafficking counts, as well as up to 30 years imprisonment on the production of child pornography counts and up to 20 years imprisonment on the sale of child pornography counts. Each of the two counts for the production of child pornography carries a mandatory minimum sentence of 15 years in federal prison without parole.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Western Missouri Cyber Crimes Task Force, the Clay County, Mo., Sheriff’s Department, the Platte County, Mo., Sheriff’s Department, the Naval Criminal Investigative Service, the Newport, R.I., Police Department, the Rhode Island State Police, the Winnipeg, Manitoba Police Service in Canada, the Royal Canadian Mounted Police, the Crown’s Attorney’s Office in Canada and the Child Exploitation and Online Protection Centre in the United Kingdom.
Justice Department Enters into Far-reaching Agreement with the Commonwealth of Puerto Rico to Reform the Puerto Rico Police DepartmentRead the Press Release
The Justice Department today entered into a sweeping civil rights agreement with the commonwealth of Puerto Rico to modernize and reform the Puerto Rico Police Department (PRPD). The agreement resolves a civil suit initiated by the department in December 2012 to remedy a pattern and practice of police misconduct by PRPD. The agreement represents a joint commitment to effective and constitutional policing and is the product of extensive negotiations between the department, PRPD and the administrations of Governor Alejandro García-Padilla and his predecessor Luis Fortuño. The agreement was filed with the federal court today and will become court-enforceable once it is approved by District Judge Gustavo A. Gelpí.
The agreement is designed not only to promote constitutional policing, but also to enhance public and officer safety and increase community confidence in PRPD. The far-reaching agreement is among the most extensive agreements ever obtained by the department under the police misconduct provision of the Violent Crime Control and Law Enforcement Act of 1994, and requires corrective action in 11 core areas. These areas include use of force, searches and seizures, equal protection, policies and procedures, training, supervision, civilian complaints and internal investigations, community engagement and information systems. The agreement will also provide the public with meaningful opportunities to participate in the reform process through periodic community meetings, public reports, civilian interaction committees, community surveys and the implementation of community policing principles. The agreement is expected to be fully implemented in ten years, although there is no expiration date. A technical compliance advisor will assess and report on PRPD’s compliance, as well as provide technical assistance to promote constitutional policing.
The agreement is also tailored to the unique needs of PRPD and with a recognition of the public safety challenges facing Puerto Rico. With a diverse mission and a police force of 17,000 officers, PRPD is the second largest police department in the country and serves close to four million residents. An initial capacity-building period will allow PRPD to modernize its administrative systems and professionalize its police force. Through the development of action plans, PRPD will have broad flexibility to stage implementation and allocate resources to achieve measurable results within established time frames. Once the plans are implemented, officers in all police regions will have the policy guidance, training, supervision, equipment and support they need to carry out their duties in a lawful, effective and efficient manner.
“We commend the administrations of Governor Alejandro García-Padilla and his predecessor Luis Fortuño for taking on the formidable challenge of transforming PRPD into a modern police force that embraces constitutional policing as part of its core mission,” said Attorney General Eric Holder. “Police departments that respect the rights of the people they serve earn the confidence of the public and become more effective in fighting crime. Because the agreement we are announcing today will institutionalize a culture of accountability, Puerto Rico will now have access to nearly $10 million in asset forfeiture funds, which it can use to implement the reforms contained in the agreement.”
“Under the leadership of Justice Secretary Luis Sánchez Betances, Superintendent Héctor Pesquera, and their staff, we have been able to craft a historic agreement that will give the hard-working men and women of PRPD the support and tools they need to protect civil rights and effectively engage with the community to address public safety,” said Acting Associate Attorney General Tony West. “We are also grateful to all of the community leaders, police officers and members of the public who came forward to assist our investigation and who made this day possible.”
The department’s December 2012 civil lawsuit followed a thorough investigation of PRPD’s policies and practices. The investigation uncovered wide-ranging and long-standing deficiencies that gave rise to a pattern and practice of police misconduct, including use of excessive force, use of unreasonable force designed to suppress protected speech and unconstitutional searches and seizures. The investigation also uncovered evidence that PRPD has failed to adequately investigate gender-based violence and engaged in discriminatory policing. PRPD cooperated throughout the investigation and began initiating corrective actions in response to the investigative team’s recommendations and technical assistance.
The department began negotiating an agreement with the administration of former Governor Luis Fortuño after completing the investigation in September 2011. The negotiations culminated in a preliminary agreement that was filed concurrently with the department’s complaint in December 2012. The court granted a joint request to stay the proceedings to provide Governor García-Padilla’s administration the opportunity to review and negotiate a final agreement. Once the federal court approves the agreement, the parties will select a technical compliance advisor and begin implementation.
A copy of the complaint, the final agreement, the joint motion seeking approval of the agreement, and the September 2011 letter of findings can be found at www.justice.gov/crt If individuals have information that is relevant to the case and PRPD, you may contact the Department of Justice at [email protected] or at 877-871-9726.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 16, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
SHANNON JAMES AUGARE, a 33-year-old resident of Browning, appeared on charges of obstructing a peace officer, driving under the influence of alcohol, and reckless driving. He is currently released on special conditions. If convicted of these charges, AUGARE faces possible penalties of 6 months in prison, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States.
PONDERA HUTTERITE COLONY, INC., SAM KLEINSASSER, DARYL KLEINSASSER, JONATHAN WALDNER, IKE WALDNER, and TOM WALDNER appeared on charges of (2) counts of illegal possession of a threatened species. They are currently released on special conditions. If convicted of these charges, they each face possible penalties of 6 months in prison and a $25,000 fine on each count. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was a cooperative effort between the U.S. Fish and Wildlife Service and the Montana Fish, Wildlife and Parks Department.
ROY OLIVER CAMPBELL, a 33-year-old resident of Browning, appeared on a charge of burglary. He is currently detained. If convicted of this charge, CAMPBELL faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation,
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictments Returned in Hammond Federal CourtRead the Press Release
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned today:
Jeremy David Evans, 31, of Glendale Heights, Illinois, was charged with the bank robbery of TCF Bank in Munster, Indiana and Fifth Third Bank in Hammond, Indiana on August 8, 2012.These charges were filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
Joshua Mijares, 34, of Griffith, Indiana, was charged with illegal re-entry into the U.S. after deportation and illegal re-entry into the U.S. after deportation subsequent to a conviction for an aggravated felony.These charges were filed as the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
Sonyinee Davis-Pope, 38, of Hammond, Indiana, was charged with 11 counts of making false statements by falsifying information on an application for a position with the United States Postal Service.These charges were filed as the result of an investigation by the United States Postal Service-Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Toi Houston.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Hazleton Man Sentenced for $150,000 FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph M. Yesvetz, age 57, of Hazleton, Pennsylvania was sentenced today by U.S. District Court Judge Robert D. Mariani to 18 months’ imprisonment, two years of supervised release, and $150,000 restitution in connection with making a false claim for benefits under the Department of Labor’s Energy Employees Occupational Illness Compensation Program (EEOICP).
According to United States Attorney Peter J. Smith, EEOICP is meant to compensate individuals who suffer work-related health conditions due to exposure to toxic substances in the work place. Yesvetz filed a claim on behalf of his father who died in 2001 after working at a beryllium plant and who allegedly suffered from chronic beryllium disease. Yesvetz was charged with lying on the claim form by failing to report his prior conviction in 2008 for mail fraud in connection with his receipt of over $88,000 in Pennsylvania state workers’ compensation benefits meant for his deceased father. Yesvetz received $150,000 in April 2012 as a result of his false claim under the EEOICP.
The case was investigated by the Department of Labor Inspector General’s Office and was prosecuted by Senior Litigation Counsel Bruce Brandler.
Former Vice President of Wells Fargo Advisors and Morgan Stanley & Co. Charged in $1.8 Million Fraud SchemeRead the Press Release
SAN FRANCISCO - A federal indictment charging Adorean Boleancu with twenty-seven counts of bank fraud, wire fraud, money laundering, and aggravated identity theft was unsealed this morning in federal court, announced United States Attorney Melinda Haag. The indictment alleges that Boleancu executed a fraud scheme by forging more than $1.8 million in checks written on accounts of an elderly, widowed client for his personal benefit.
According to the Indictment, Boleancu, 47, of Napa, Calif., was a Vice President, Senior Financial Consultant in the Wealth Management Group of Wells Fargo Advisors, LLC and, before that, a Vice President, Financial Advisor with Morgan Stanley & Co., Inc. The Indictment alleges that Boleancu wrote checks drawn on the client's Morgan Stanley brokerage account and home equity lines of credit Boleancu had established for the victim. These checks were made payable to Boleancu's family members, his girlfriend, another female acquaintance, cash, and financial companies where Boleancu had credit card accounts. The Indictment also alleges that Boleancu presented or caused to be presented forged checks in the amount of $750,000 and $600,000 payable to Boleancu's girlfriend, who deposited the checks and transferred much of the proceeds to Boleancu.
Boleancu made his initial appearance in federal court in San Francisco this morning. Boleancu was released on an $800,000 bond. His next scheduled appearance is at 2:30 p.m. on July 23, 2013, before the Honorable Richard Seeborg, U.S. District Court Judge.
The maximum statutory penalty for each count of bank fraud, in violation of 18 U.S.C. § 1344, and wire fraud, in violation of 18 U.S.C. § 1343, is 30 years in prison and a $1 million fine, plus restitution if appropriate. The maximum statutory penalty for each count of money laundering, in violation of 18 U.S.C. § 1957, is 10 years in prison and a fine of $250,000. The maximum statutory penalty for each count of aggravated identity theft, in violation of 18 U.S.C. § 1028A, is 2 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert S. Leach is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth and Mary Mallory. The prosecution is the result of an 18-month investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Boleancu must be presumed innocent unless and until proven guilty.
(Boleancu Indictment )
Former Teacher Pleads Guilty to Receipt of Child Pornography-Exchanged Sexually Explicit Images with Student-Read the Press Release
WASHINGTON – John Solano, 30, a former teacher from Washington, D.C., pled guilty today to receiving child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Solano entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer is to sentence him on Oct. 2, 2013. Solano faces a sentence of not less than five years and no more than 20 years of imprisonment and a $250,000 fine. Solano has been incarcerated since his arrest on March 8, 2013.
According to the government's evidence, Solano, who was then a teacher at McKinley Tech High School in Northeast Washington, engaged in inappropriate sexual communications with several current and former students. Specifically, in December 2012, Solano engaged in inappropriate and sexually explicit text message communications with a 16-year-old student. During the course of that correspondence, at Solano’s request, the student sent and Solano received images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-247Former Supervisor Pleads Guilty to Stealing Confidential Computer Files from the Federal Reserve Bank of ChicagoRead the Press Release
CHICAGO — A former supervisor at the Federal Reserve Bank of Chicago pleaded guilty today to a federal misdemeanor for stealing computer files containing confidential information relating to the bank’s responsibility to assess and monitor its credit risk exposure. The defendant, BRIAN MCCARTHY, admitted attempting to download on to his personal thumb drive approximately 300 computer files, and actually downloading 71 computer files, belong to the Chicago Federal Reserve Bank.
McCarthy, 31, of Elmhurst, was a senior credit analyst in the bank’s Statistical and Financial Reporting Department from 2009 to 2010, and in 2011 was a supervisor in the Statistical Support Group where he supervised approximately seven bank employees. He pleaded guilty to theft of property from the Federal Reserve Bank of Chicago at his arraignment after being charged in a criminal information filed last week in U.S. District Court.
Under the terms of his plea agreement, McCarthy is barred from participating directly or indirectly in the affairs of any financial institution insured by the National Credit Union Share Insurance Fund or the Federal Deposit Insurance Corp. without prior written consent. McCarthy faces a maximum sentence of a year in prison and a $100,000 fine, and his plea agreement anticipates a federal sentencing guideline range of 10 to 12 months in prison. U.S. Magistrate Judge Susan Cox set sentencing for Oct. 10.
According to his guilty plea, McCarthy had access to, and was entrusted with, sensitive information, and had signed a Code of Conduct agreement requiring him to leave behind all bank computer files when his employment ended. The theft occurred on Oct. 5, 2011, which was McCarthy’s last day of employment. He admitted taking steps to avoid detection and circumvent the bank’s information security systems, which nonetheless determined that information had been accessed and the Federal Reserve Bank contacted the FBI.
The plea agreement calls for McCarthy to pay $26,400 in restitution to the bank to reimburse it for employee time expended to determine how much information, and the nature of the material, that he downloaded.
The guilty plea was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Sunil Harjani.
Plea Agreement
Former Charleston-based Chase Bank Executive Sentenced to 3 Years in Prison for Embezzlement SchemeRead the Press Release
McCoy stole more than $500,000 from Chase; created unauthorized cashier’s checks to purchase a Cadillac SUV and a ’68 Chevy Camaro
CHARLESTON, W.Va. –A former Charleston-based J.P. Morgan Chase Bank (“Chase Bank”) executive was sentenced today to three years in federal prison for embezzlement, announced United States Attorney Booth Goodwin. Mark Alan McCoy, 46, of Charleston, previously pleaded guilty in March to embezzlement by a bank officer. McCoy, who was employed as the Charleston branch vice president of private client banking services from September 2008 until June 2012, embezzled more than $500,000 from the bank.
“Bankers are given a special position of trust,” said U.S. Attorney Booth Goodwin. “To abuse that trust is unconscionable.”
Goodwin continued, “It’s a crime not only against the bank, but against the customers who counted on this defendant to keep their money safe and sound. The sentencing of Mr. McCoy shows that bank embezzlement has real consequences.”
From November 30, 2009, and continuing until April 19, 2012, McCoy stole monies belonging to Chase Bank from approximately nine separate personal and corporate bank clients’ accounts. During the scheme, McCoy created cashier’s checks for himself or would use the proceeds from the original cashier’s checks to create additional unauthorized checks. On January 19, 2011, McCoy created an unauthorized cashier’s check from a client’s corporate bank account for $59,000, and made the check payable to Moses automotive dealership. McCoy used the fraudulent cashier’s check to purchase a Cadillac Escalade. Similarly, on October 19, 2011, McCoy created an unauthorized cashier’s check from a client account for $22,000. McCoy caused that check to be deposited into another client’s account, using the funds for the purchase of a 1968 Chevrolet Camaro.
In total, McCoy admitted that he took approximately $532,395.59 of monies from Chase Bank. The actual loss to Chase Bank, after accounting for funds that the defendant deposited into client accounts and other funds that the bank was able to recover, is $447,784.45.
At sentencing, the Court ordered the defendant to pay $447,784.45 in restitution.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Meredith George Thomas handled the prosecution. The sentence was imposed by United States District Judge Irene Berger.
Former CEO and Former CFO of ArthroCare Corp.<br /> Charged with Orchestrating $400 Million<br /> Securities Fraud SchemeRead the Press Release
The former chief executive officer and former chief financial officer of ArthroCare Corp., a publicly traded medical device company based in Austin, Texas, were charged for their alleged leading roles in a $400 million scheme to defraud the company’s shareholders and members of the investing public by falsely inflating ArthroCare’s earnings by tens of millions of dollars, announced Acting Assistant Attorney Mythili Raman of the Department of Justice’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas.
A 17-count indictment was unsealed today in the U.S. District Court for the Western District of Texas against Michael Baker, the former chief executive officer and director of ArthroCare, and Michael Gluk, the former chief financial officer of ArthroCare. Both defendants surrendered to authorities this morning.
The indictment, which was returned on July 16, 2013, charges Baker and Gluk with one count of conspiracy to commit wire and securities fraud, 11 counts of wire fraud, and two counts of securities fraud; it charges Baker alone with three counts of false statements. The indictment also seeks forfeiture of assets held by Baker and Gluk.
“Truthful corporate earnings reports are critical to the soundness of our financial system,” said Acting Assistant Attorney General Raman. “Today’s indictment alleges that those at the top of ArthroCare deceived investors and regulators by manipulating the company’s reports to inflate its stock, ultimately causing hundreds of millions in losses in shareholder value. The Criminal Division will continue to aggressively pursue corporate executives who undermine our financial markets for personal gain.”
According to the indictment, from at least December 2005 through December 2008, Baker, Gluk and other senior executives and employees of ArthroCare allegedly falsely inflated ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors. According to court documents, Baker, Gluk and other ArthroCare employees determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker, Gluk and others then allegedly caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
The indictment alleges that ArthroCare’s distributors agreed to accept shipment of millions of dollars of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars.
Baker, Gluk and others allegedly used DiscoCare, a privately owned Delaware corporation, as one of the distributors to cover shortfalls in ArthroCare’s revenue. According to the indictment, at Baker and Gluk’s direction, ArthroCare shipped product to DiscoCare that far exceeded DiscoCare’s needs.
In addition, Baker, Gluk and others allegedly lied to investors and analysts about ArthroCare's relationships with its distributors, including its largest distributor, DiscoCare. According to the indictment, Baker and Gluk caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public the nature and financial significance of ArthroCare's relationship with DiscoCare.
The indictment further alleges that when Baker was deposed by the U.S. Securities and Exchange Commission about the DiscoCare relationship in November 2009, he lied again on multiple occasions.
According to court documents, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
If convicted, Baker and Gluk would face a maximum prison sentence of 25 years for the conspiracy charge, 20 years for each count of wire fraud, and 25 years for each securities fraud count. Baker faces five years for each count of false statements.
An indictment is merely a charge, and the defendants are presumed innocent until proven guilty.
This case was investigated by the FBI’s Austin office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
Former Ashburn Jeweler Pleads Guilty to Running $20 Million Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Robert Mikail, 41, formerly of Ashburn, Va., pleaded guilty today to conspiring to commit bank fraud in connection with his role in fraudulent mortgage loan transactions involving approximately 36 properties in northern Virginia and nearly $20 million in fraudulently obtained loans.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge James C. Cacheris.
Mikail was indicted on April 4, 2013, by a federal grand jury on conspiracy and bank fraud charges. Mikail faces a maximum penalty of 30 years in prison when he is sentenced on October 11, 2013.
In a statement of facts filed with the plea agreement, Mikail admitted to conspiring with loan officers, including Bing-Sing “Cindy” Wang, to defraud mortgage lenders as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia. As part of the scheme, Mikail admitted to recruiting five individuals, known as “straw buyers,” to serve as nominal purchasers in these transactions, and to working with the loan officers to falsify critical information on the straw buyers’ loan applications in order to get the loans approved and the transactions closed. In particular, virtually all of the fraudulent loan applications falsely identified Mikail’s Ashburn, Va., jewelry store, Opus Jewelry, as the borrower’s employer, which Mikail would then falsely verify to the lenders as part of the loan approval process.
In total, Mikail admitted to engineering the purchase of approximately 36 homes in Ashburn, Va., from 2005 through 2007, and to obtaining from lenders approximately $19.9 million in loan proceeds on the basis of fraudulent loan applications. While Mikail admitted to personally profiting by approximately $882,387 from these transactions, all of the loans ultimately defaulted, resulting in significant losses to the lenders.
Co-conspirator Wang, the owner of Lifetime Financial Services in Herndon, Va., pleaded guilty to related charges on November 20, 2012, and was sentenced to 24 months in prison on February 26, 2013.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Florida Man and His Corporation Sentenced for Illegal Dredging and Wetlands Violations in Panama CityRead the Press Release
PANAMA CITY, FLORIDA – Brian Raphael D’Isernia, 69, of Panama City Beach, Florida, and Lagoon Landing, LLC, a corporation controlled by D’Isernia, were sentenced today in federal court in the Northern District of Florida for illegal dredging and felony wetlands violations. The two defendants were ordered to pay a criminal fine totaling $2.25 million dollars, the largest criminal fine assessed for wetlands violations in Florida history.
D’Isernia was sentenced to a fine of $100,000 and a $25 special monetary assessment, while Lagoon Landing, LLC, was sentenced to a term of probation of three years, a fine of $2.15 million, a community service payment of $1 million to the National Fish and Wildlife foundation, a charitable non-profit organization created by Congress, and a $400 special monetary assessment.
D’Isernia pleaded guilty to charges that he knowingly violated the Rivers and Harbors Act. Specifically, D’Isernia admitted to his involvement in illegally dredging an upland cut boat basin in Allanton and the channel connecting it to East Bay between December 2009 and February 2010.
Lagoon Landing, LLC, pleaded guilty to a felony violation of the Clean Water Act for knowingly discharging a pollutant into waters of the United States without a permit. Between 2005 and 2010, Lagoon Landing used tractors and other heavy equipment to alter and fill wetland areas of property it controlled in Allanton without obtaining a permit. The wetland areas were adjacent to East Bay.
The National Fish and Wildlife Foundation will use the money to fund projects for the conservation, protection, restoration and management of wetland, marine, and coastal resources, with an emphasis on projects benefiting wetlands in and around St. Andrew Bay.
United States Attorney Pamela C. Marsh said, “The beautiful seashores and pristine waters in North Florida are deserving of our protection, and Congress has given us strong environmental laws to ensure these treasures are preserved for future generations. My office will continue to work closely with the EPA, as we did in this case, to enforce federal environmental protection laws. It is my hope that the $1 million payment to the National Fish and Wildlife Foundation for restoration and marine protection projects will help mitigate the damage done by these defendants and also send a strong deterrence message that polluting our waters will not be tolerated.”
“The defendants failed to secure required permits and damaged environmentally sensitive wetlands,” said Maureen O’ Mara, Special Agent-in-Charge of EPA’s criminal enforcement program in Florida. “These are essential natural resources and today’s sentence shows that any company or person that harms them will be prosecuted.”
Five separate but related civil settlements have also been filed:
- Northwest Florida Holdings, Inc., a Florida corporation controlled by D’Isernia, entered into an Administrative Compliance Order with the U.S. Environmental Protection Agency (EPA) that will result in the restoration of approximately 58.63 acres of wetlands and upland buffers. The wetlands will be protected from future development by a conservation easement. The corporation also agreed to study the water quality in and around the Allanton and Nelson Street Shipyards;, to upgrade stormwater protection for the Allanton Shipyard, to withdraw applications to convert the launching basin to a marina, to create a Planned Unit Development at the Allanton Shipyard; and to hire someone to oversee environmental compliance.
- Northwest Florida Holdings, Inc., entered into a Consent Order with the Florida Department of Environmental Protection (FDEP) and agreed to conduct stormwater corrective actions and water quality studies at the Allanton Shipyard. The corporation will pay a $9,750 civil fine to the Ecosystem Management and Restoration Trust Fund, and $94,718.25 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.
- Bay Fabrication, Inc., a corporation controlled by D’Isernia, entered into a Consent Order with FDEP and agreed to conduct stormwater corrective actions and water quality studies at the Nelson Street Shipyard. The corporation will pay a $6,000 civil fine to the Ecosystem Management and Restoration Trust Fund, and $76,923 in severed dredge materials fees to the Florida Internal Improvement Trust Fund.
- Peninsula Holdings, LLC, a corporation controlled by D’Isernia, entered into a Consent Order with FDEP and agreed to conduct stormwater improvements at property it owns located at 2500 Nelson Street, Panama City, Florida 32401. The corporation will pay a $1,500 civil fine to the Ecosystem Management and Restoration Trust Fund.
- D’Isernia and his wife Miriam D’Isernia entered into a Consent Order with FDEP to remove unauthorized fill materials from property located in Panama City Beach, Florida. Brian and Miriam D’Isernia will pay a $250 civil fine to the Ecosystem Management and Restoration Trust Fund.
Five Federally Charged with Gunpoint Carjackings, Attempts in Essex County, N.J.Read the Press Release
NEWARK, N.J. – Five men will appear in Newark federal court today to face federal charges for a string of gunpoint carjackings and attempted carjackings in Essex County, N.J., U.S. Attorney Paul J. Fishman announced.
As part of an ongoing joint anti-carjacking initiative involving investigators and prosecutors at the federal, state and local levels, the U.S. Attorney’s Office works with the Essex County Prosecutor’s Office and other law enforcement partners to select cases appropriate to adopt from the state for federal prosecution. Federal charges typically carry longer potential prison terms and there is no parole in the federal system.
The five defendants, who have been in state custody since their respective arrests, are expected to appear today before U.S. Magistrate Judge Mark Falk.
“The wave of carjackings in Essex County is unacceptable to all who live, work and visit here,” said U.S. Attorney Fishman. “As long as carjackers target the area, law enforcement will continue to work together to fight back. Federally prosecuted carjackers face decades in prison, with no parole, far from home.”
“As part of our ongoing effort to combat carjacking in Essex County, we are encouraged by this partnership with the U.S. Attorney’s Office to bring more stringent penalties to individuals who commit the violent crime of carjacking on our streets,” said Acting Essex County Prosecutor Carolyn A. Murray.
According to the federal complaints unsealed today:
Corey Thermitus, 21, of Newark, is charged with one count of theft of a motor vehicle by force, violence and intimidation and one count of attempting the same crime. He is also charged with discharging a firearm in furtherance of a crime of violence.
On Dec. 28, 2012, Thermitus approached a gray Honda Accord in the driveway of a Newark home, opened the door and put a gun to the head of the person in the driver’s seat, threatening to shoot. Thermitus and accomplices drove away in the car, leaving the victim sitting on the ground. Later that night, Thermitus took the Accord to another Newark residence and tried to carjack a red Pathfinder from a victim with a young child in the car, shooting at someone who came out of the residence. Newark police officers apprehended Thermitus shortly after midnight after his accomplice rammed a police car with the Accord and the suspects fled on foot.
Edwin Ayala, 37, and Walder Morales, 21, both of Newark, are each charged with one count of attempted theft of a motor vehicle by force, violence and intimidation and one count of use of a firearm in furtherance of a crime of violence.
On Dec. 15, 2012, Ayala, wearing a ski mask, pointed a gun at the head of an individual sitting in a Chevrolet Equinox and demanded the keys to the vehicle. After the victim dropped the keys, Morales came over to retrieve them and the pair fled with the victim’s car keys, money and phone. Newark police officers were able to track the phone to apprehend the defendants.
Lee Caraballo, 27, of Newark, is charged with one count of theft of a motor vehicle by force, violence and intimidation and one count of use of a firearm in furtherance of a crime of violence.
On Nov. 30, 2012, Caraballo approached a silver Toyota Corolla parked in the victim’s driveway, pointed a gun at the driver’s head and ordered the driver out of the car. After also stealing the victim’s wallet and cell phone, Caraballo left the area with the car.
A Roselle Park police officer caught Caraballo later that day in a traffic stop. Caraballo was driving a black Mercedes for which he couldn’t produce the necessary papers. Police found a cell phone and keys in the vehicle Caraballo was driving.
Nathaniel Tullies, 19, of East Orange, N.J., is charged with one count of theft of a motor vehicle by force, violence and intimidation and one count of use of a firearm in furtherance of a crime of violence.
On Nov. 8, 2012, when an individual got out of a Chevrolet Impala to open a garage door, Tullies and an accomplice got on either side of the car, took it from the victim at gunpoint and drove away. The victim called police, who responded within minutes.
A Newark police detective spotted the vehicle and a high-speed chase ensued, ending when the Impala crashed on the shoulder of Route 1/9, the suspects fled on foot and the detective chased and captured Tullies.
The federal charge of carjacking or attempted carjacking carries a maximum potential penalty of 15 years in prison; 25 years in prison if serious bodily injury results; and life in prison or the federal death penalty if death results. The charge of use of a firearm in furtherance of a crime of violence carries a minimum consecutive term of five years in prison if a firearm is possessed, seven years in prison if a firearm is brandished, 10 years in prison if a firearm is discharged and a maximum of life in prison. Each of these charges also carries a maximum $250,000 fine.
Defendants prosecuted by the U.S. Attorney’s Office as a result of the anti-carjacking initiative have been sentenced to significant prison terms. Recent examples include:
Defendant
Age
Charges
Sentencing Date
Sentence
23
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
2/20/13
130 months
Jermaine May
29
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
2/15/13
118 months
Jirrod Parker
25
theft of a motor vehicle by force, violence and intimidation; use of a firearm in furtherance of a crime of violence; and being a felon in possession of a firearm
1/9/13
150 months
Taj Elliott
24
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
10/22/12
147 months
Jerome Conover
21
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
8/16/12
181 months
Jahlil Thomas
23
conspiracy; theft of a motor vehicle by force, violence and intimidation; and use of a firearm in furtherance of a crime of violence
6/1/12
262 months
Amonra Jackson
30
theft of a motor vehicle by force, violence and intimidation and one count of being a convicted felon in possession of a firearm
3/28/12
120 months
U.S. Attorney Fishman praised the Essex County Prosecutor’s Office, under the Direction of Acting Prosecutor Murray; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Newark Police Department, under the direction of Director Samuel A. DeMaio and Chief Sheilah A. Coley; and the Roselle Park Police Department, under the direction of Chief Paul Morrison; as well as investigators in the U.S. Attorney’s Office for the investigation that led to the new charges announced today.
Fishman also lauded the other members of the carjacking task force – the New Jersey Attorney General’s Office; New Jersey State Police; Essex County Sheriff’s Office; Bureau of Alcohol, Tobacco, Firearms and Explosives; DEA, United States Marshals Service; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations – for their continued commitment to addressing the carjacking problem in Essex County.
Regarding the federal cases with charges unsealed today, the government is represented by Assistant U.S. Attorneys Dara Govan, Elizabeth Harris and Courtney Oliva of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-291
Defense counsel:
Corey Thermitus, Edwin Ayala, Lee Caraballo, Nathaniel Tullies: Assistant Federal Public Defender Peter Carter Esq., Newark
Walder Morales: Joseph Rubino Esq., West Orange, N.J.Caraballo Complaint
Ayala and Morales Complaint
Thermitus Complaint
Tullies ComplaintFamily-Run Tax Fraud Scheme Sends Three to PrisonRead the Press Release
BROWNSVILLE, Texas – Judy Lynn McCune, Loretta Ann McCune and Rania Ann Sanchez have been ordered to prison for conspiring to defraud the federal government in a scheme to prepare federal tax returns and cash refund checks in the name of deceased individuals, United States Attorney Kenneth Magidson announced today along with Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz. The three women entered pleas of guilty in April 2013.
This morning, U.S. District Judge Andrew S. Hanen, who accepted the guilty pleas, handed Judy Lynn McCune a sentence of 57 months, while Loretta McCune and Sanchez will serve respective terms of 20 and 24 months in prison. The court also ordered the payment of restitution in the amount of $223,098 to the IRS. They will be required to serve a term of three years of supervised release following completion of their prison terms.
Judy Lynn McCune admitted she recruited members of her family, including her mother, Loretta Ann McCune, and her sister, Sanchez, into the scheme. The conspiracy involved obtaining Social Security numbers and dates of birth for deceased individuals through the Internet and then filing both paper and electronic federal income tax returns using the identifiers of these deceased individuals. The refunds were directly deposited in the personal bank account or mailed to the personal addresses of the accused. The total scheme consisted of approximately 340 false claims totaling $763,124 in filed false claims.
The court ordered Judy Lynn McCune to surrender on Aug. 27, 2013, to being serving her sentence. Loretta Ann McCune and Sanchez were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Robert and Edward Gutierrez, Judy Lynn McCune’s sons, are also charged in relation to the scheme. They have both pleaded guilty to filing a false income tax refund claim and are pending sentencing.
The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Karen Betancourt.
Engineer Pleads Guilty to Making False Statements in Connection with Theft of Trade SecretsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JIAN MI, 38, a citizen of China and a lawful permanent resident of Rocky Hill, pleaded guilty today before United States District Judge Michael P. Shea in Hartford to one count of making a false statement to a federal law enforcement officer.
According to court documents and statements made in court, on July 22, 2011, JIAN MI knowingly made a materially false statement to agents of the Federal Bureau of Investigation by informing them that she had not shared with a competitor any advance copies of a PowerPoint presentation containing sensitive proprietary information obtained from her previous employer. At the time, she knew that she had, in fact, emailed a comprehensive PowerPoint presentation to representatives of the competitor where she was applying for a job as an engineer.
Judge Shea has scheduled sentencing for October 11, 2013, at which time JIAN MI faces a maximum term of imprisonment of five years, a maximum term of supervised release of three years, and a maximum fine of $250,000.
This matter is being investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Paul H. McConnell.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Eliseo Lopez Martinez Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 18, 2013, before U.S. District Judge Sam E. Haddon, ELISEO LOPEZ MARTINEZ, a 49-year-old resident of Turlock, California, pled guilty to conspiracy to possess with intent to distribute controlled substances. Sentencing has been set for October 21, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorneys Joseph E. Thaggard and Brendan P. McCarthy, the government stated it would have proved at trial the following:
In late 2012, the FBI, DEA, the Montana Division of Criminal Investigation (MDCI), the ATF, various drug task forces based in Billings, the Billings Police Department, the Yellowstone County Sheriff's Department, and the Montana Highway Patrol began to investigate the widespread distribution of methamphetamine, cocaine, and heroin in an area stretching from Billings to the Bakken oil fields of northeastern Montana and western North Dakota. In March 2013, the Idaho State Police also joined the investigation;
As part of the investigation, on March 1, 2013, the Montana Highway Patrol stopped a vehicle driven by an unindicted coconspirator on Interstate 90 near Park City. The vehicle was subsequently searched and found to contain one-quarter pound of methamphetamine and a quantity of heroin the unindicted coconspirator said consisted of 80 grams.
The unindicted coconspirator admitted to distributing large amounts of heroin and methamphetamine. The unindicted coconspirator stated that the sources of supply for the drugs were "Mateo" and "Tomas." The descriptions provided by the unindicted conspirator of "Mateo" and "Tomas" matched those people known to law enforcement officers in Billings as MARTINEZ and Tomas Alvarado.
On March 11, 2013, Idaho State Police stopped a vehicle driven by Alvarado in Power County, Idaho. An adult female was a passenger in the vehicle. Alvarado said he and the passenger had driven from Billings to Nevada the previous day and were returning to Billings;
A search of the vehicle ensued. The authorities found a .40 caliber handgun, three gross pounds of a substance that yielded a presumptive Narcotics Identification Kit (NIK) test result for the presence of methamphetamine, and two gross pounds of a substance that yielded a positive NIK test result for the presence of cocaine.
On March 12, 2013, the authorities, acting under the authority of a search warrant, searched a residence in Billings occupied by MARTINEZ. The officers recovered three handguns, over $56,000 in United States currency, two pounds of suspected cocaine, six pounds of suspected methamphetamine, and over 100 grams of suspected heroin.
The officers also searched a motor vehicle at or near MARTINEZ's residence in Billings. That vehicle was associated with MARTINEZ. The officers found 16 total firearms, including handguns, shotguns, and rifles (including two semi-automatic, SKS assault-style rifles) in the vehicle.
MARTINEZ was taken into custody when the search warrant was executed on March 12, 2013. When interviewed, MARTINEZ stated he had moved to Montana two or three months earlier as part of plan whereby he and Alvarado distributed methamphetamine, cocaine, heroin, and marijuana in the Billings area. MARTINEZ estimated that he and Alvarado had sold approximately 25 pounds of methamphetamine over the preceding two months.
On March 12, 2013, the authorities also interviewed Alvarado. Alvarado stated that he and MARTINEZ had distributed methamphetamine in Billings since approximately October 2012 and moved to Billings in November 2012 as part of the distribution scheme. Alvarado detailed that, between October 2012 and March 12, 2013, he and MARTINEZ distributed at least 80 pounds of methamphetamine to subordinate drug dealers in Montana.
MARTINEZ faces possible penalties of life in prison, a $10,000,000 fine and 5 years supervised release.
Alvarado pled guilty to federal charges and is awaiting sentencing.
The investigation was a cooperative effort between the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Montana Division of Criminal Investigation.
El Departamento de Justicia realiza acuerdo amplio con el Estado Libre Asociado de Puerto Rico para la reforma del Departamento de Policía de Puerto RicoRead the Press Release
WASHINGTON - Hoy, el Departamento de Justicia realizó un acuerdo amplio de derechos civiles con el Estado Libre Asociado de Puerto Rico para la modernización y la reforma del Departamento de Policía de Puerto Rico [PRPD - Puerto Rico Police Department]. El acuerdo resuelve una demanda civil presentada por el Departamento de Justicia de EE.UU. [U.S. Department of Justicia (DOJ)] en diciembre de 2012 para remediar un patrón y una práctica de conducta policial indebida por parte del PRPD. El acuerdo representa un compromiso conjunto los servicios policiales efectivos y constitucionales y es producto de negociaciones amplias entre el departamento, el PRPD y los gobiernos del Gobernador Alejandro García Padilla y su predecesor Luis Fortuño. El acuerdo fue presentado al tribunal federal hoy y adquirirá fuerza de orden judicial una vez aprobado por el Juez de Distrito Gustavo A. Gelpí.
El acuerdo fue diseñado no solo para promover los servicios policiales constitucionales, sino también para optimizar la seguridad pública y de los agentes e incrementar la confianza de la comunidad en el PRPD. El acuerdo amplio se encuentra entre los acuerdos más exhaustivos ya obtenidos por el departamento bajo la disposición de conducta policial indebida de la Ley de Control de Delitos Violentos y Coacción Legal de 1994, y requiere acción correctiva en once áreas principales. Estas áreas incluyen el uso de fuerza, allanamientos y confiscaciones, protección igualitaria, políticas y procedimientos, capacitación, supervisión, quejas de civiles e investigaciones internas, participación comunitaria y sistemas de información. El acuerdo también brindará al público oportunidades significativas de participar en el proceso de reforma a través de reuniones comunitarias periódicas, informes públicos, comités de interacción civiles, encuestas comunitarias, y la implementación de principios de prestación de servicios policiales comunitarios. Se prevé que el acuerdo será implementado en el plazo de diez años, aunque no existe una fecha de vencimiento. Un asesor en cumplimiento técnico evaluará e informará acerca del cumplimiento del PRPD, y brindará asistencia técnica para promover la prestación de servicios policiales constitucionales.
El acuerdo también fue diseñado de acuerdo con las necesidades singulares del PRPD y con el reconocimiento de los desafíos de seguridad que Puerto Rico enfrenta. Con una misión diversificada y una fuerza policial de 17,000 agentes, el PRPD es el segundo departamento de policía del país en tamaño y atiende a más de cuatro millones de residentes. Un periodo inicial de creación de capacidad le permitirá al PRPD modernizar sus sistemas administrativos y profesionalizar su fuerza policial. A través del desarrollo de planes de acción, el PRPD tendrá amplia flexibilidad para realizar la implementación y asignar recursos para lograr resultados mensurables en los plazos establecidos. Una vez implementados los planes, los agentes de todas las regiones policiales tendrán la orientación sobre la política, la capacitación, la supervisión, los equipos y el apoyo que requieren para llevar a cabo sus tareas de manera legal, eficaz y eficiente.
"Felicitamos a los gobiernos del Gobernador Alejandro García Padilla y su predecesor Luis Fortuño por aceptar el desafío formidable de transformar al PRPD en una fuerza policial moderna que incluye la prestación de servicios policiales constitucionales en su misión esencial", señaló el Secretario de Justicia de EE.UU. Eric Holder, Jr. "Los departamentos de policía que respetan los derechos de las personas que atienden se ganan la confianza del público y pasan a ser más eficaces en la lucha contra la delincuencia. Debido a que este acuerdo que anunciamos hoy institucionalizará la cultura de la rendición de cuentas, Puerto Rico ahora tendrá acceso a casi 10 millones de dólares de fondos de confiscación de bienes, que podrá utilizar para implementar las reformas contenidas en el acuerdo".
"Bajo el liderazgo del Secretario de Justicia Luis Sánchez Betances, el Superintendente Héctor Pesquera y sus equipos, hemos logrado dar forma a un acuerdo histórico que brindará a los hombres y las mujeres trabajadores del PRPD el apoyo y las herramientas que necesitan para proteger los derechos civiles y lograr la participación efectiva de la comunidad en iniciativas de seguridad pública", dijo el Subsecretario de Justicia Interino Tony West. "También agradecemos a todos los líderes comunitarios, agentes de la policía y miembros del público que se ofrecieron para ayudar en nuestra investigación y que hicieron que este día fuera posible".
La demanda civil de diciembre de 2012 del departamento se entabló después de una investigación de las políticas y prácticas del PRPD. La investigación reveló deficiencias amplias y antiguas que provocaron un patrón y una práctica de conducta policial indebida, incluidos el uso de fuerza excesiva, uso de fuerza irrazonable diseñados para suprimir la libertad de expresión protegida, y allanamientos y confiscaciones inconstitucionales. La investigación también reveló pruebas de que el PRPD ha dejado de investigar adecuadamente casos de violencia de género y que ha prestado servicios policiales discriminatorios. El PRPD cooperó a lo largo de la investigación y comenzó a implementar acciones correctivas como respuesta a las recomendaciones del equipo de investigación y la asistencia técnica.
El departamento comenzó a negociar un acuerdo con el gobierno del ex Gobernador Luis Fortuño después de completar la investigación en septiembre de 2011. Las negociaciones culminaron con un acuerdo preliminar presentado junto con la demanda del departamento en diciembre de 2012. La corte federal aceptó el pedido de suspensión conjunto para brindarle al gobierno del Gobernador García Padilla la oportunidad de examinar y negociar un acuerdo definitivo. Una vez que el tribunal federal apruebe el acuerdo, las partes seleccionarán un asesor de cumplimiento técnico y comenzarán la implementación.
Se encuentran una copia de la demanda, el acuerdo final, una petición conjunta de aprobación del acuerdo y la carta de hallazgos de septiembre de 2011 en www.justice.gov/crt. Si tiene información relevante al caso y al PRPD, comuníquese con el Departamento de Justicia escribiendo a [email protected] o llamando al 877-871-9726.
Eastern District U.S. Attorney’s Office Participates in Record Settlement: Walgreens Agrees to Pay $80 Million in Civil Penalties Under the Controlled Substances ActRead the Press Release
Walgreen Co. (Walgreens), the nation’s largest drug store chain, agreed to pay $80 million in civil penalties for violations of the Controlled Substances Act resolving administrative actions by the Drug Enforcement Administration (DEA), and Department of Justice civil investigations in the Eastern District of New York, the Southern District of Florida, the District of Colorado and the Eastern District of Michigan, as well as civil investigations by DEA nationwide. Walgreens also agreed to surrender the authority of six of its pharmacies and one of its distribution centers to distribute or dispense certain controlled substances for a period of two years. Walgreens further agreed to create a Department of Pharmaceutical Integrity to ensure compliance with regulations and to prevent the diversion of controlled substances. The details of the nationwide resolution, announced by the Southern District of Florida U.S. Attorney’s Office on June 11, 2013, can be found at http://www.justice.gov/usao/fls/PressReleases/130611-01.html.
Details surrounding the Eastern District of New York’s investigation of Walgreens were made public earlier today with the guilty plea of nurse practitioner Eva MacDowall. MacDowall, who was prosecuted by the Suffolk County District Attorney’s Office, pled guilty in Suffolk County Court to one charge of criminal possession of a forged instrument in the second degree in connection with her writing a bogus prescription for oxycodone that she filled at a Walgreens pharmacy in Selden, New York, on June 8, 2012. The investigation and prosecution of MacDowall revealed that Walgreens repeatedly violated the Controlled Substances Act by filling numerous prescriptions that Walgreens employees knew, or should have known, were not issued for a legitimate medical purpose. Over a two year period from July 2010 until July 2012, MacDowall filled 94 different, illegitimate prescriptions -- primarily for two highly addictive painkillers, oxycodone and hydrocodone -- at a Walgreens pharmacy in Selden and two Walgreens pharmacies in Medford.
“The abuse of oxycodone, hydrocodone and other painkillers has become an epidemic, as overdose deaths from prescription painkillers is now more common than overdose deaths from heroin and cocaine combined,” said United States Attorney Loretta E. Lynch. “Nationwide, Walgreens repeatedly failed to live up to its obligation to safeguard highly addictive prescription drugs. Here on Long Island, these three stores allowed themselves to become a haven for prescription drug abusers, turning a blind eye as McDowall repeatedly filled one forged prescription after another. In so doing, Walgreen’s contributed to the epidemic increase in the abuse of prescription drugs that we are seeing in Long Island, and around the country.”
Suffolk County New York District Attorney Thomas J. Spota stated, “We are pleased that Suffolk County’s prosecution of this defendant aided in the exposure of improper practices at Walgreens and the successful civil action by the United States Attorneys’ Offices that ultimately forced the retailer to comply with the law and pay 80 million dollars in fines.”
Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration, New York Filed Office, stated, “This is the trend of a local investigation merging with a nationwide federal investigation focused on the diversion of pain medication and its harmful effects to citizens across our country. Beginning in 2010, the Suffolk County Police Department began investigating a nurse practitioner forging prescriptions for inexplicably large amounts of oxycodone and hydrocodone filled at two Walgreens Pharmacies in Long Island, New York. Subsequently, a Federal Task Force pooled their resources which led to the national civil investigation into Walgreens CSA violations. The primary threat to the New York City region is opiate abuse, ranging from diverted pain medication to heroin. Opiate abuse has spread like cancer leaving disaster and death in its wake; there was a 6% increase of people seeking treatment for heroin addiction last year, and of all prescription drug deaths, 74% are accidental deaths. Today’s announcement demonstrates law enforcement’s collaboration at its best to combat the deadly effects of opiate abuse and identify those who threaten public health and safety and violate the law at every step in the drug supply chain.”
In January 2012, the United States Attorney’s Office for the Eastern District of New York and the Drug Enforcement Administration, in conjunction with the five district attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department and New York State Police, along with other key federal, state and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Prescription Drug Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
Assistant United States Attorney Elliot M. Schachner led the civil investigation of Walgreens in the Eastern District of New York. Suffolk County Assistant District Attorney Tanya Rickoff was responsible for the criminal prosecution of Eva MacDowall.
District Man Sentenced to 55 ½ Years in PrisonRead the Press Release
For First-Degree Murder While Armed
And Other Charges in Christmas 2009 Attack
-Gunshots Killed One Man, Wounded Two Others-WASHINGTON – Marlo Garcia, also known as “Lupita,” 24, was sentenced today to a prison term of 55 ½ years following his conviction for first-degree murder while armed and other charges in a shooting on Christmas Day 2009 that killed one man and wounded two others, U.S. Attorney Ronald C. Machen Jr. announced.
Garcia, of Washington, D.C., was found guilty by a jury in March 2013, following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of three counts of assault with intent to kill while armed and related weapons offenses. The Honorable Ronna L. Beck sentenced him this afternoon.
According to the government’s evidence, on Dec. 25, 2009, Garcia was invited by his friend, Miguel Romero, to attend a Christmas party at about 4 a.m. at a rooming house in the 5400 block of Fourth Street NW. Garcia brought a .25-caliber handgun to the location, and while there, he went out in an alley to shoot it. When told to stop, he became agitated.
Garcia then went inside the residence and began dancing and groping his friend’s girlfriend. Mr. Romero’s cousin approached Garcia to calm him, and Garcia shot him in the head. He then shot the girlfriend in the head and shot Mr. Romero in the back, neck and head. Garcia then fired yet another shot but missed a fourth person at the apartment. Mr. Romero, 21, died immediately. The other two shooting victims still have bullets lodged in their brains.
After shooting the victims, Garcia fled the apartment. He was arrested two days later.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers, and mobile crime scene officers from the Metropolitan Police Department (MPD) who investigated the case. He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Assistant U.S. Attorney Kate Rakoczy, Paralegal Specialist Kelly Blakeney, and Melissa Milam, Iris Vega, Marcia Rinker, Laverne Forrest, Michael Hailey, Katina Adams and David Foster, all of the Victim Witness Assistance Unit. Finally, he commended the work of Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
13-250Daniel Young Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 18, 2013, before U.S. District Judge Sam E. Haddon, DANIEL YOUNG, a 35-year-old resident of Billings, appeared for sentencing. YOUNG was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Restitution: $490,153.43
Supervised Release: 5 years
YOUNG was sentenced in connection with his guilty plea to bank fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
YOUNG owned and operated Auto Plaza, Inc. in Billings. Auto Plaza sold used vehicles along with new and used boats, ATV's, motorcycles, snowmobiles and recreational vehicles. Two other individuals were co-owners and/or partners with YOUNG from 2007 to 2010; however, YOUNG was the primary operator of the business. YOUNG operated the dealership and handled the day to day financial transactions.
Auto Plaza, Inc., maintained day-to-day operations with the assistance of several financing companies (also referred to as a "floor plan"), including Dealer Services Corporation and First Interstate Bank ("FIB"). The dealership typically acquired their inventory through the Auto Auction in Billings. After a vehicle was sold by Auto Plaza, Inc., the company with that provided the financing to originally purchase the car was to be paid off with the proceeds of the sale. The paying off of any liens on vehicles by the financing company allowed for a clear title to be passed on to the new buyer of the vehicle.
In approximately October of 2010, FIB canceled the $500,000 floor plan at the Auto Plaza. In approximately November of 2010, Dealer Services Corporation also canceled their financing at the Auto Plaza.
During the course of the investigation, it was learned that the dealership was out of trust possibly since the day they obtained their floor plan loan with FIB as well as Dealer Services Corporation; the dealership sold vehicles with unpaid liens and failed to provide new owners titles; the dealership sold vehicles they didn't pay for; the dealership sold extended warranties for vehicles that were not actually purchased from the warranty companies; and the dealership sold vehicles/boats they held on consignment and didn't pay the owner.
Specifically, on August 1, 2008, in Billings, YOUNG sold a 2005 Mastercraft boat with a lien held by Key Bank, N.A., of Brooklyn, Ohio. When YOUNG sold the boat at the Auto Plaza, he caused the submission of false loan documents to First Interstate Bank; in that the new purchaser was told there was no lien on the boat. First Interstate Bank believed they were obtaining a first position on the title of the boat and authorized the loan. The loan was funded by First Interstate Bank and the Auto Plaza received the money for the boat purchase. In furtherance of the scheme, YOUNG lied to a personal banker at First Interstate Bank about the payoff of the lien to Key Bank, N.A., and caused the submission of a false lien release to the Montana Division of Motor Vehicles on behalf of Key Bank for the boat.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that YOUNG will likely serve all of the time imposed by the court. In the federal system, YOUNG does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Dallas Residents Arrested in Law Enforcement OperationRead the Press Release
Large Amounts of Cocaine and Methamphetamine Seized, Along With Luxury Vehicles and More Than $350,000 in Cash
DALLAS — Seven Dallas residents were arrested yesterday in an Organized Crime Drug Enforcement Task Force (OCDETF) operation conducted by special agents with the FBI and officers with the Dallas Police Department on several federal drug-trafficking complaints. During this phase of the operation, three pounds of methamphetamine, more than $30,000 in United States currency and several firearms were seized.
The first phase of this OCDETF operation was executed on July 2, 2013, when law enforcement seized approximately 14 kilograms of cocaine, one and one-half pounds of methamphetamine (ICE), four luxury vehicles and more than $315,000 in United States currency. Four defendants from Dallas were arrested that day and charged by federal complaint with conspiring to possess with intent to distribute five kilograms or more of cocaine.
Sarah R. Saldaña, U.S. Attorney for the Northern District of Texas, and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division, announced the results of the operation today.
The following seven defendants were arrested yesterday and will appear this afternoon before U.S. Magistrate Judge David L. Horan:
- Reynaldo Macedo-Flores, 35
- Calletano Flores-Hernandez, a/k/a Rolando Nunez-Hernandez, 47
- Austreberta Macedo-Flores, 53
- Rigoberto Aguirre, 35
- Jose Eduardo Madrigal-Moreno, 20
- Diego Hernandez-Valencia, 22
- Rupertro Renteria-Ramos, 27
The following four defendants were arrested on July 2, 2013, and have made their initial appearances in federal court. All were ordered detained.
- Victor Guillen, 21
- Ezekiel Maldonado, 34
- Roger Molina, 25
- Juan Perez Bernal, 36
The case involves undercover purchases, wiretaps and search warrants. In total, 14 kilograms of cocaine, four and one-half pounds of methamphetamine (ICE), five firearms, four luxury vehicles and $351,010 in cash have been seized in the operation.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The statutory maximum penalties for the charged offenses range from 40 years to life in federal prison and millions of dollars in fines.
The FBI and the Dallas Police Department are leading this OCDETF investigation. Assistant U.S. Attorney Jason Schall is in charge of the prosecution.
Dallas County Man Arrested and Charged with Distribution of Child PornographyRead the Press Release
DALLAS --- Quincy Lamar Poole, 24, of Lancaster, Texas, has been arrested on a federal criminal complaint charging distribution of child pornography. Poole made his initial appearance this afternoon in federal court in Dallas and was detained pending a hearing set for Tuesday, July 23, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed in the matter, law enforcement executed a federal search warrant at Poole’s residence in Lancaster on July 16, 2013; Poole and others were home at the time. Pursuant to the warrant, law enforcement seized computers and other computer media. Poole advised that he had traded child pornography with others he met on Internet websites. He also advised that during his 10-year obsession with child pornography, he had downloaded thousands of images of child pornography.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The matter is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is prosecuting.