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28 August 2013
St. Francis Woman Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Racine Whirlwind Soldier, a 28-year-old woman from St. Francis, South Dakota, pled guilty to Assault by Striking, Beating and Wounding and Simple Assault and was sentenced on August 26, 2013, by U.S. Magistrate Judge Mark A. Moreno. She was sentenced to 18 months of probation on each count, to be served concurrently; $239.70 in restitution; and a $35 assessment to the Federal Crime Victims Fund.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case.
On August 3, 2012, Whirlwind Soldier’s co-defendant, Kelcey Andrews, reached into the front passenger window of a car in which the victim, a minor, was located and punched the victim in the face and grabbed the victim by the hair. Whirlwind Soldier threw a beer bottle into the car and cut the victim below her eyebrow, which required four sutures. The victim was injured as a result of the unlawful conduct of Whirlwind Soldier and Andrews.Slidell Woman, Nicole Nicholas, Guilty of ForgeryRead the Press Release
NICOLE NICHOLAS, age 39, a resident of Slidell, Louisiana, pled guilty today in federal court before U.S. District Court Judge Jay C. Zainey to forgery, announced U. S. Attorney Dana Boente.
According to court documents, NICHOLAS was employed by Company "A" from 1999 until June 22, 2010. NICHOLAS was in charge of the accounting, banking and finances, including the accounts payable, of the business conducted by Company "A." On May 22, 2009, the defendant intentionally possessed a $3,398.09 counterfeit check of Company “A” and used it to pay for private school tuition.
NICHOLAS faces a maximum term of imprisonment of ten years, as well as a fine of $250,000 and three years of supervised release following any term of imprisonment.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the prosecution is being handled by Assistant U.S. Attorney Jon Maestri.
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Six Face Federal Charges in Bank Fraud Scheme Using Car BurglariesRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – Six individuals have been indicted in connection with a bank fraud scheme operating in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
An 11-count indictment was returned by a federal grand jury on Aug. 15, 2013, charging six individuals in the scheme. The indictment specifically charges one count of conspiracy to commit bank fraud and 10 counts of aggravated identity theft. Those named in the indictment include:
Craig Dwayne Tobias, 33, of Fort Lauderdale, Florida; Keevan Iszeal Coney, 22, of Fort Lauderdale; Makeisha Ann Williams, 36, of Garland, Texas; Antonio Perez Barfield, 29, of Fort Pierce, Florida; Atamian Rajuan Johnson, 31, of Rivera Beach, Florida; and
Misty Dawn Hendrix, 37, of Seagoville, TexasAccording to the indictment, the defendants are alleged to have devised a scheme in which they stole bank checks, bank cards, and personal identification cards from locations such as daycare facilities, gyms, and public parks throughout the Metroplex area and elsewhere. The thefts were typically from motor vehicles and were made via forcible entry. The stolen bank cards were usually used within minutes of the theft, often at gas stations, convenience stores, or retail stores. The bank checks were cashed at banks in Denton, Irving, Bedford, Grapevine, Mesquite, Garland, and Dallas using drive thru teller lanes and rented vehicles.
Hendrix and Williams appeared before U.S. Magistrate Judge Don Bush for an initial appearance on Aug. 26, 2013. Tobias, Johnson and Coney appeared before Judge Bush on Aug. 27, 2013. Barfield remains at large.
If convicted of the conspiracy charge, the defendants face up to 30 years in federal prison. They face an additional two years in federal prison for each of the aggravated identity theft charges.
This case is being investigated by the Federal Bureau of Investigation and the Plano Police Department with assistance from various agencies throughout the area. This case is being prosecuted by Assistant U.S. Attorney Chris Eason.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of lawRegistered Sex Offender Charged with Producing Child PornographyRead the Press Release
HOUSTON – Donald Post, of League City, 68, has been indicted for production and distribution of child pornography involving a four-year-old minor female, United States Attorney Kenneth Magidson announced today. The indictment was returned late this morning by a Houston federal grand jury.
Post was arrested on Aug. 8, 2013, based on a criminal complaint and appeared before U.S. Magistrate Judge John Froeschner in Galveston on Aug. 13 for a detention hearing. At that time, the court found there to be probable cause he committed the crimes and that Post, allegedly a registered sex offender, was a danger to the community and a flight risk. He was subsequently ordered into custody pending further criminal proceedings.
The criminal complaint alleges the four-year-old female victim was photographed in lewd and lascivious poses. Post then allegedly distributed these images via the Internet. According to the charges, Post authored a document which not only detailed the production of the child pornography but chronicled his molestation of this very young victim. The account of the incident is incredibly graphic, according to allegations, and makes references to his prior acts of molestation for which he was convicted and subsequently ordered to register as a sex offender.
If convicted, Post faces a minimum of 15 and up to 50 years imprisonment for the production charge as well as a minimum of 10 and up to 40 years imprisonment for distribution of child pornography. If convicted on either of these charges and the court finds he was in fact a registered sex offender at the time of the offense, he may also face another 10-year prison term that must be served consecutively to any other sentence imposed. Both convictions also carry as possible punishment a maximum fine of $250,000. Upon completion of any prison term imposed, he also faces a maximum of life on supervised release and he will again be required to register as a sex offender.
This case, investigated by the FBI and prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.RPM International, Inc. and Tremco Inc. Pay Nearly $61 Million for Failing to Provide Government Discounts Provided to OthersCompanies Allegedly Submitted False Claims Under Defectively-Priced Roofing ContractsRead the Press Release
WASHINGTON – Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., have paid $60.9 million to resolve allegations that Tremco filed false claims in connection with two Multiple Award Schedule (MAS) contracts with the General Services Administration (GSA) for roofing supplies and services, the Justice Department announced today.
Tremco failed to provide the government with price discounts provided to non-federal government customers. Tremco also allegedly marketed expensive materials to government purchasers without disclosing the availability of the same materials at lower cost that were manufactured and sold by the company. Tremco is a manufacturer of construction products and services and is a subsidiary of the RPM Building Solutions Group.
“Companies that knowingly skirt the rules for securing government business undermine the integrity of the procurement process and create an unfair advantage against companies that are playing by the rules,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “We are committed to ensuring a level playing field and protecting taxpayer dollars.”
Allegedly, from January 2002 to March 2011, Tremco knowingly violated its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, to report changes in discounts to comparable commercial customers and to pass those discounts on to government customers. As a result, the government allegedly paid more than it should have for Tremco’s services and products. In addition, Tremco allegedly improperly marketed generic products as a superior line of the same product and used a defective adhesive formula in its roofing systems.
The GSA MAS program provides government purchasers with a streamlined process for procurement of commonly used commercial goods and services. To be awarded a MAS contract, and thereby gain access to the broad government marketplace and ease of administration that comes from selling to hundreds of government purchasers under one contract, contractors must agree to disclose commercial pricing policies and practices.
The settlement resolves a qui tam, or whistleblower, lawsuit filed on behalf of the government by former Tremco vice president Gregory Rudolph, who will receive more than $10.9 million as his share of the recovery in the case. Under the whistleblower provisions of the False Claims Act, private citizens can bring lawsuits on behalf of the government and share in any recovery. Rudolph’s lawsuit also includes allegations on behalf of several states under their false claims statutes. The settlement with the federal government does not resolve the state actions.
“These companies are paying the price for trying to cheat the American taxpayer out of a fair deal,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “We thank this whistleblower for coming forward to reveal this wrongdoing. Other contractors who are considering bilking the government should take heed: false and fraudulent claims on the U.S. Treasury will not be tolerated.”
GSA Inspector General Brian Miller said, “GSA OIG auditors and investigators worked diligently to make sure the taxpayers got the benefit of required price reductions, and received a fair price for the products and services purchased with taxpayer funds.”
This settlement was the result of a coordinated effort by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General to investigate the allegations and resolve the case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The case is captioned United States, the States of California, Delaware, Florida, Illinois, Indiana, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Tennessee, Virginia and the City of Chicago, ex rel. Gregory Rudolph v. Tremco Inc. and RPM International Inc., Case No. 1:10-cv-01192 (D.DC).
13-294
RPM International Inc. and Tremco Inc. Pay Nearly $61 Million for Failing to Provide Government Discounts Provided to OthersRead the Press Release
Ohio-based RPM International Inc. and its subsidiary, Tremco Inc., have paid $60.9 million to resolve allegations that Tremco filed false claims in connection with two multiple award schedule (MAS) contracts with the General Services Administration (GSA) for roofing supplies and services, the Justice Department announced today. Tremco failed to provide the government with price discounts provided to non-federal government customers. Tremco also allegedly marketed expensive materials to government purchasers without disclosing the availability of the same materials at lower cost that were manufactured and sold by the company. Tremco is a manufacturer of construction products and services and is a subsidiary of the RPM Building Solutions Group.
“Companies that knowingly skirt the rules for securing government business undermine the integrity of the procurement process and create an unfair advantage against companies that are playing by the rules,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “We are committed to ensuring a level playing field and protecting taxpayer dollars.”Allegedly, from January 2002 to March 2011, Tremco knowingly violated its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, to report changes in discounts to comparable commercial customers and to pass those discounts on to government customers. As a result, the government allegedly paid more than it should have for Tremco’s services and products. In addition, Tremco allegedly improperly marketed generic products as a superior line of the same product and used a defective adhesive formula in its roofing systems.
The GSA MAS program provides government purchasers with a streamlined process for procurement of commonly used commercial goods and services. To be awarded a MAS contract, and thereby gain access to the broad government marketplace and ease of administration that comes from selling to hundreds of government purchasers under one contract, contractors must agree to disclose commercial pricing policies and practices.
GSA Inspector General Brian Miller said, “GSA OIG auditors and investigators worked diligently to make sure the taxpayers got the benefit of required price reductions, and received a fair price for the products and services purchased with taxpayer funds.”
“These companies are paying the price for trying to cheat the American taxpayer out of a fair deal,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “We thank this whistleblower for coming forward to reveal this wrongdoing. Other contractors who are considering bilking the government should take heed: false and fraudulent claims on the U.S. Treasury will not be tolerated.”The settlement resolves a qui tam, or whistleblower, lawsuit filed on behalf of the government by former Tremco vice president Gregory Rudolph, who will receive more than $10.9 million as his share of the recovery in the case. Under the whistleblower provisions of the False Claims Act, private citizens can bring lawsuits on behalf of the government and share in any recovery. Rudolph’s lawsuit also includes allegations on behalf of several states under their false claims statutes. The settlement with the federal government does not resolve the state actions.
This settlement was the result of a coordinated effort by the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the District of Columbia and GSA’s Office of Inspector General to investigate the allegations and resolve the case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The case is captioned United States, the States of California, Delaware, Florida, Illinois, Indiana, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Tennessee, Virginia and the City of Chicago, ex rel. Gregory Rudolph v. Tremco Inc. and RPM International Inc. , Case No. 1:10-cv-01192 (D.DC) .
Puerto Rico Man Sentenced to Life in Prison <br /> for 2009 Mass ShootingRead the Press Release
Alexis Candelario-Santana, 42, was sentenced today to life in prison for murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico nightclub in 2009.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez made the announcement.“The horrifying massacre at La Tómbola came just nine months after Candelario-Santana’s release from prison for committing 12 murders. During his rampage, he brutally killed or injured dozens of other innocent victims, including children and the elderly,” said Acting Assistant Attorney General Raman. “Our thoughts are with the victims and their families, and we hope that today’s life sentence brings some measure of comfort to them. As this prosecution and today’s life sentence shows, we will not waver in our commitment to bringing violent criminals to justice.”
“With the sentencing of this career criminal we have made our community a safer place. The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said U.S. Attorney Rodríguez-Vélez. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
Candelario-Santana and his co-defendant David Oquendo-Rivas were convicted by a federal jury on March 8, 2013. Candelario-Santana was convicted of 28 counts of committing violent crimes in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possessing a firearm as a convicted felon. Oquendo-Rivas was convicted of 28 counts of committing violent crimes in aid of racketeering activity and nine counts of using a firearm in relation to a crime of violence. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.”
Based on the government’s charging documents, only Candelario-Santana was potentially eligible for the death penalty. On March 23, 2013, the same jury that determined the guilt of Candelario-Santana and Oquendo-Rivas was unable to reach a unanimous verdict on the question of whether Candelario-Santana should be sentenced to death or life in prison. As a result, under the Federal Death Penalty Act, Candelario-Santana was required to be sentenced to life in prison.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was a leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms to protect its drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of the drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Candelario-Santana was eventually convicted of 12 murders in the local courts, and was sentenced to a total of 12 years in prison. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the day-to-day operations of the organization, but Candelario-Santana continued to direct the organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes, for which he was eventually convicted. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.
On Oct. 17, 2009, Semprit-Santana held the grand opening of a nightclub he had rented and refurbished called La Tómbola, located in Toa Baja, Puerto Rico, complete with a popular live band and a festive Paso Fino horse parade, known as a “cabalgata.” The event was heavily attended, with families congregating inside and outside the establishment, most of whom had nothing to do with the drug trafficking organization and merely resided in the general area. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, all of whom were heavily armed, drove to La Tómbola. When they arrived, they immediately opened fire indiscriminately on all the patrons located outside, many of whom were women, children and elderly people. Candelario-Santana and Oquendo-Rivas stormed into the La Tómbola, and Candelario-Santana was heard to yell, “no one gets out alive,” as they opened fire on the people inside.
In all, eight people and an 8-month unborn child were killed as a result of the gunfire at La Tómbola, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson, and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tómbola crime scene. The ballistics evidence established that three AK-47-type assault rifles, one AR-15-type assault rifle, eight .9 mm semi-automatic pistols, three 40-caliber semi-automatic pistols, and two 45-caliber semi-automatic pistols were used in the attack.
Oquendo-Rivas is scheduled for sentencing on Sept. 20, 2013.The case was investigated by the FBI and the Puerto Rico Police Department, with the collaboration of the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case was prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela C. Mateo of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
Puerto Rico Man Sentenced to Life in Prison for 2009 Mass ShootingRead the Press Release
WASHINGTON – Alexis Candelario-Santana, 42, was sentenced today to life in prison for murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico nightclub in 2009.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez made the announcement.
“The horrifying massacre at La Tómbola came just nine months after Candelario-Santana’s release from prison for committing 12 murders. During his rampage, he brutally killed or injured dozens of other innocent victims, including children and the elderly,” said Acting Assistant Attorney General Raman. “Our thoughts are with the victims and their families, and we hope that today’s life sentence brings some measure of comfort to them. As this prosecution and today’s life sentence shows, we will not waver in our commitment to bringing violent criminals to justice.”
“With the sentencing of this career criminal we have made our community a safer place. The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said U.S. Attorney Rodríguez-Vélez. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
Candelario-Santana and his co-defendant David Oquendo-Rivas were convicted by a federal jury on March 8, 2013. Candelario-Santana was convicted of 28 counts of committing violent crimes in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possessing a firearm as a convicted felon. Oquendo-Rivas was convicted of 28 counts of committing violent crimes in aid of racketeering activity and nine counts of using a firearm in relation to a crime of violence. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tómbola Massacre.”
Based on the government’s charging documents, only Candelario-Santana was potentially eligible for the death penalty. On March 23, 2013, the same jury that determined the guilt of Candelario-Santana and Oquendo-Rivas was unable to reach a unanimous verdict on the question of whether Candelario-Santana should be sentenced to death or life in prison. As a result, under the Federal Death Penalty Act, Candelario-Santana was required to be sentenced to life in prison.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was a leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased drugs in bulk, processed and packaged the drugs, and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms to protect its drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of the drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Candelario-Santana was eventually convicted of 12 murders in the local courts, and was sentenced to a total of 12 years in prison. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the day-to-day operations of the organization, but Candelario-Santana continued to direct the organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes, for which he was eventually convicted. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.On Oct. 17, 2009, Semprit-Santana held the grand opening of a nightclub he had rented and refurbished called La Tómbola, located in Toa Baja, Puerto Rico, complete with a popular live band and a festive Paso Fino horse parade, known as a “cabalgata.” The event was heavily attended, with families congregating inside and outside the establishment, most of whom had nothing to do with the drug trafficking organization and merely resided in the general area. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, all of whom were heavily armed, drove to La Tómbola. When they arrived, they immediately opened fire indiscriminately on all the patrons located outside, many of whom were women, children and elderly people. Candelario-Santana and Oquendo-Rivas stormed into the La Tómbola, and Candelario-Santana was heard to yell, “no one gets out alive,” as they opened fire on the people inside.
In all, eight people and an 8-month unborn child were killed as a result of the gunfire at La Tómbola, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson, and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tómbola crime scene. The ballistics evidence established that three AK-47-type assault rifles, one AR-15-type assault rifle, eight .9 mm semi-automatic pistols, three 40-caliber semi-automatic pistols, and two 45-caliber semi-automatic pistols were used in the attack.
Oquendo-Rivas is scheduled for sentencing on Sept. 20, 2013.
The case was investigated by the FBI and the Puerto Rico Police Department, with the collaboration of the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case was prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela C. Mateo of the U.S. Attorney’s Office for the District of Puerto Rico and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
Progreso Mayor and Other Public Officials Charged in Conjunction with Bribery SchemeRead the Press Release
McALLEN, Texas - Jose Guadalupe Vela Jr., 64, Omar Leonel Vela, 35, and Michael Vela, 29, have been arrested on charges of conspiracy, mail fraud, violations of the Travel Act, theft and bribery, United States Attorney Kenneth Magidson announced today.
The sealed indictment, returned in Houston Aug. 21, 2013, was unsealed upon the arrest of Jose Vela and his sons Omar and Michael Vela today in Progreso. They are expected to make their initial appearances before a U.S. Magistrate Judge Dorina Ramos in McAllen tomorrow morning.
The three men are charged based on their alleged participation in a scheme to create a “pay to play” public contracting system in Progreso. According to the indictment, they used their control of Progreso municipal government and the Board of Trustees of the Progreso Independent School District (PISD) to extract bribes and kickbacks from service providers to PISD and the city. PISD receives more than $1 million per year in federal funds from the U.S. Department of Education.
The 10-count indictment alleges that from June 2004 until the date of indictment, the Vela family members conspired to obtain bribes and kickbacks from several service providers. Those allegedly include a construction company and an architectural firm hired as contractors by the city and PISD, an attorney hired as local counsel to advise PISD and a company that supplied PISD and the city with electrical and plumbing supplies.
According to the indictment, Jose Vela, the maintenance and transportation supervisor for PISD, maintained political control in Progreso through his sons Omar Vela, the mayor of Progreso, and Michael Vela, president of the PISD Board of Trustees. The indictment charges that Jose Vela controlled members of the PISD Board of Trustees through a system of reward and retaliation. That is, board members who voted as directed by Jose Vela were allegedly rewarded with bribe money, but those who did not follow his direction were faced with retaliation.
According to the Indictment, from 2004 to 2006, the construction company paid Omar Vela approximately $85,000 in bribes in order to be hired on projects in Progreso, including the construction of an elementary school, a school gymnasium and a municipal park. The indictment further indicates that in 2008 and 2009 the attorney paid nearly $10,000 to the three defendants in order to be hired as local counsel for PISD.
The Indictment also alleges that from 2009 to 2012, Omar Vela instructed the owner of the electrical and plumbing supply company to provide fraudulent invoices to PISD and the City of Progreso for products that were not supplied. When the invoices were paid, Omar Vela allegedly instructed the owner of the supply company to return the funds to Omar Vela as kickbacks. Through this scheme, Omar Vela is alleged to have stolen more than $14,000 from the City of Progreso and PISD.
If convicted, each face up to 20 years in prison for mail fraud, five years for the conspiracy, 10 years for each of the bribery and theft involving federal programs, and five years for each of the six counts of violations of the travel act. All charges also carry a possible maximum fine of $250,000.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Pearland Septuagenarian Convicted in Child Pornography CaseRead the Press Release
GALVESTON, Texas – A federal jury in Galveston has returned a guilty verdict against David Paul Roetcisoender, 72, of Pearland, for distribution and possession of child pornography, United States Attorney Kenneth Magidson announced today. The verdict was returned late yesterday following a two-day trial and approximately two hours of deliberation.
During the trial, the jury testimony from a detective with the Pearland Police Department who explained how he discovered several videos of child pornography over the Internet which were later traced to a computer used by Roetcisoender.
Evidence proved that on June 4, 2012, officers executed a search warrant at Roetcisoender’s residence in Pearland. At that time, an officer conducted a computer forensic preview which resulted in the discovery of thousands of images and videos of child pornography on a computer Roetcisoender used.
At the time of the search, testimony further revealed Roetcisoender admitted to downloading and viewing child pornography since the 1990s.
The jury also heard that more than 2000 videos and more than 100,000 images of child pornography were found on computers, hard drives and other storage devices seized by officers and used by Roetcisoender.
Further, the government proved that he not only possessed the child pornography but distributed it on at least two separate occasions. A Pearland computer forensic officer testified that the file sharing program used by Roetcisoender contained data that specified which specific files had been downloaded by others over the Internet from Roetcisoender’s computer.
Roetcisoender attempted to convince the jury that he did not knowingly distribute child pornography.
The jury disagreed and found him guilty on two counts of distribution of child pornography and one count of possession of child pornography.
U.S. District Judge Gregg Costa, who presided over the trial, has set sentencing for Nov. 13, 2013. At that time, Roetcisoender faces a sentence of up to 10 years imprisonment for the possession charge as well as at least five and up to 20 years on each of the two counts of distribution. The convictions also carry as possible punishment a $250,000 fine. Upon completion of any prison term imposed, Roetcisoender also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Roetcisoender was arrested on the federal charges on Nov. 14, 2012. He has and will remain in custody pending further criminal proceedings.
The Pearland Police Department investigated the case as part of the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Parmelee Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Involuntary Manslaughter and Aiding and Abetting was sentenced on August 26, 2013, by U.S. District Judge Roberto A. Lange.
Nathaniel Red Bird, age 33, was sentenced to 15 months of custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Red Bird was indicted by a federal grand jury on January 16, 2013, and pled guilty to Involuntary Manslaughter and Aiding and Abetting on June 4, 2013.
In the early morning hours of August 14, 2011, in Mission, South Dakota, Red Bird and a co-defendant were highly intoxicated and went to sleep in the same bed with the victim, their 7-month-old child. The next morning, Red Bird awoke and realized the child was not breathing. A medical opinion indicated the child died of asphyxia due to parental overlaying while co-sleeping with the intoxicated parents.The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Red Bird was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Parma Man Charged with CounterfeitingRead the Press Release
Counterfeiting charges were filed against a Parma man, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A grand jury returned a two-count indictment charging Joshua A. McKnight, 25, with conspiracy to possess and pass counterfeit obligations of the United States and possessing counterfeit obligations of the United States.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney and Edward F. Feran, following an investigation by the United States Secret Service and the Ohio State Highway Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of West Fargo Tanning Salon Sentenced for Failure to Register as a Sex OffenderRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Aug. 28, 2013, Jared Holland, 28, of Fargo, N.D., was sentenced before U.S. District Judge Ralph R. Erickson for failing to register as a sex offender. Holland pleaded guilty to the charge on April 1, 2013.
Judge Erickson sentenced Holland to seven months and 15 days in prison to be followed by 10 years of supervised release with a condition that he be placed in home confinement for a period of seven months. Holland was also ordered to pay a $100 special assessment to the Crime Victims Fund.
On March 31, 2012, officers from the Fargo Police Department were dispatched to Holland’s residence in South Fargo on a domestic complaint. Thereafter, law enforcement discovered that Holland was a convicted sex offender. Specifically, Holland was convicted of second degree rape in Brown County, South Dakota, on September 23, 2003.
Following an investigation, law enforcement discovered that Holland, a Tier III sex offender, and his wife had moved to Fargo to operate Exclusive Tan, a tanning solon located in the Eagle Run Plaza in West Fargo. After the move, Holland failed to notify authorities of this employment, which he is required to do as a registered sex offender.
The case was investigated by the U.S. Marshals Service and the West Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
North Dakota Man Sentenced for Transportation of Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bismarck, North Dakota, man charged with transportation of child pornography was sentenced on August 23, 2013, by U.S. District Court Judge Charles B. Kornmann.
Quentin Edward Doerr, age 41, was sentenced to 60 months in custody to run concurrently to any sentence imposed by the State Court in North Dakota, followed by 5 years on supervised release, and a special assessment of $100.
Doerr was indicted for Production of Child Pornography by a federal grand jury on August 14, 2012. In 2012, Doerr possessed video-recorded depictions of himself engaged in sexually explicit conduct with a minor female. He traveled from South Dakota to his home in North Dakota with the video file of child pornography in his computer. He pled guilty to the charge of Transportation of Child Pornography on April 23, 2013.
The investigation was conducted by the Spink County Sheriff's Office, the Bismarck Police Department, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Doerr was immediately turned over to the custody of the U.S. Marshals Service.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.North Carolina Man Charged with Making False Internet Bomb Threat to Federal PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an Information was filed today in U.S. Middle District Court in Williamsport against Matthew Mitchell Wilson, age 22, of Indian Trail, North Carolina. The Information charges Wilson with e-mailing a false bomb threat to the Low Security Correctional Institution at Allenwood on March 31, 2012.
According to United States Attorney Peter J. Smith, the Information alleges that on March 31, 2012, during a trip to visit his brother at the prison, Wilson sent an e-mail to the prison stating that there was a bomb in that facility.
The case was investigated by the Federal Bureau of Investigation. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Normangee, TX Police Chief Arrested in Connection with Methamphetamine Trafficking InvestigationRead the Press Release
Normangee Police Chief Joseph Ray “Jody” Navarro, age 40, is in federal custody charged with allegedly using a law enforcement computer system to aid a methamphetamine trafficker announced United States Attorney Robert Pitman, Texas Department of Public Safety (DPS) Director Steven McCraw and Leon County Sheriff Kevin Ellis.
A criminal complaint, filed last Thursday and unsealed today, charges the Madisonville, Texas, resident with one count of intentionally exceeding authorized access to a protected computer. According to the criminal complaint, in May 2013, Navarro ran a background check on a name supplied to him by suspected methamphetamine trafficker and Normangee resident Brenda Antanette Evans, age 45.
A separate, but related, criminal complaint filed last Thursday and unsealed today, charges Evans and 25–year-old Joshua Troy Thomas of Normangee with one count of possession with intent to distribute methamphetamine. According to that complaint, on April 26, 2013, during an undercover investigation, Evans purchased close to one ounce of methamphetamine from Thomas on behalf of an undercover agent for approximately $1,200.
Authorities arrested Navarro and Thomas yesterday without incident. Both had their Initial Appearances in Federal court this morning and are scheduled to have a detention hearing on September 3, 2013, before United States Magistrate Judge Jeffrey C. Manske in Waco. Evans has yet to be apprehended. Upon conviction, Navarro faces up to five years in federal prison and a maximum $250,000 fine; Thomas and Evans, up to 20 years in federal prison and a maximum $250,000 fine.
This ongoing investigation is being conducted by the Texas Department of Public Safety Criminal Investigation Division, Leon County Sheriff’s Office and the Federal Bureau of Investigation. Agents with the Drug Enforcement Administration as well as Deputy U.S. Marshals assisted with the arrests. Assistant United States Attorney Mary Kucera is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Norcross Woman Stole More Than $398,000 in Federal Retirement BenefitsRead the Press Release
ATLANTA - Deborah West has been sentenced to 18 months in federal prison for stealing federal retirement benefits.
“Federal employees work hard to earn retirement benefits to support them during their golden years,” said United States Attorney Sally Quillian Yates. “For fifteen years this defendant shamelessly stole from the federal retirement system, taking what she never worked for and never earned.”
“Fraudulently obtaining annuity payments is a crime of opportunity,” said Office of Personnel Management Inspector General Patrick E. McFarland. “It is all too easy for individuals to take advantage of an aging relative, neighbor, or ward – and even easier to do so once they have passed away. This conviction demonstrates that we are dedicated to holding these individuals accountable for their crimes.”
According to United States Attorney Yates, the charges and other information presented in court: The defendant’s parents were both federal employees who received federal retirement benefits. The defendant’s father passed away in 1980 and his benefits were legitimately transferred to West’s mother. The defendant’s mother, also a federal employee, collected her benefits and her husband’s benefits until 1993, when she died. At that time, all of the benefits should have ended. However, the federal government never learned of the death and continued to pay the benefits directly to the mother’s bank account. The defendant stole those benefits by writing checks to herself from her deceased mother’s account, forging her mother’s signature and keeping the money for herself. In sum, between 1993 and 2008 the defendant stole more than $398,000 of federal benefits to which she was not entitled.
West, 64, of Norcross, Ga., was sentenced to one year, six months in prison to be followed by three years of supervised release by United States District Judge Thomas W. Thrash, Jr. She was also ordered to pay restitution in the amount of $398,773.96. West was convicted on these charges on June 10, 2013, after she pleaded guilty.This case is being investigated by the Office of Personnel Management, Office of Inspector General.
The case was jointly prosecuted by Assistant United States Attorneys Christopher C. Bly in Atlanta and Kristi O’Malley of the District of Maryland.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
New York Man Pleads Guilty to Conspiring with Family Members to Commit Tax Fraud by Hiding over $12 Million in Secret Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HENRY SEGGERMAN pled guilty today in Manhattan federal court to charges related to his participation in a scheme with family members to hide in secret Swiss bank accounts, and not reveal to the Internal Revenue Service (“IRS”), over $12 million that had been left to SEGGERMAN and his family members by SEGGERMAN’s father. SEGGERMAN pled guilty before U.S. Magistrate Judge James C. Francis IV.
Manhattan U.S. Attorney Preet Bharara said: “Henry Seggerman and three of his siblings inherited and continued a family tax fraud scheme. Now, four members of this family stand convicted of tax crimes. We will continue to aggressively investigate and prosecute U.S. taxpayers, and those that assist them, in evading their obligations by hiding money in secret offshore accounts.”
According to the Information, statements made during the plea proceedings, and other documents filed in Manhattan federal court:
SEGGERMAN was the son of a prominent New York businessman (“the Businessman”) who, upon passing away in May 2001, left an estate valued in excess of $24 million, more than half of which was maintained in secret and undeclared foreign bank accounts. Working with a Swiss lawyer and others, the Businessman arranged for over $12 million in the undeclared accounts to be left to his surviving spouse and five of his children, including SEGGERMAN. As a result of the successful implementation of that plan, and to hide the undeclared funds from the IRS, SEGGERMAN, who, together with three of his siblings, was an executor of his father’s estate, signed a tax return for his father’s estate that falsely under-reported the gross assets of the Businessman’s estate. In particular, the estate tax return fraudulently failed to report over $5 million left to the Businessman’s wife and over $7.5 million to be split among five of his children.
In addition, the Swiss lawyer thereafter assisted SEGGERMAN’s siblings, including Suzanne Seggerman, Yvonne Seggerman, and Edmund Seggerman, in setting up undeclared Swiss bank accounts to hold the money left to them by their father. SEGGERMAN assisted his brother in surreptitiously transferring funds from the brother’s Swiss account to a bank account for a foundation controlled by SEGGERMAN, who thereafter filtered the funds to the brother in the United States, labeling the transfer as “loans.”
SEGGERMAN, 60, of New York, New York, and Los Angeles, California, pled guilty to one count of conspiracy to defraud the United States, one count of subscribing to a false and fraudulent estate tax return, and one count of aiding and assisting in the preparation of false tax returns for his brother. He faces a total maximum sentence of 11 years in prison. The case is assigned to U.S. District Judge Alvin K. Hellerstein, and no sentencing date has been set. In addition, SEGGERMAN agreed as part of his guilty plea to make a payment of approximately $600,000 at the time of his sentencing, in partial satisfaction of the ultimate restitution obligation he faces at sentencing.
Suzanne Seggerman, Yvonne Seggerman, and Edmund Seggerman each previously pled guilty to one count of conspiracy to defraud the United States, and two counts of subscribing to false and fraudulent tax returns. Each faces a maximum sentence of 11 years in prison. Suzanne Seggerman, 51, of New York, New York, pled guilty before U.S. District Judge Kevin Thomas Duffy on October 14, 2010 and awaits sentencing. Yvonne Seggerman, 58, of Cumberland, Rhode Island, pled guilty before U.S. District Judge Paul A. Engelmayer on March 14, 2013 and awaits sentencing. Edmund Seggerman, 50, of Washington, D.C., pled guilty before U.S. District Judge Thomas P. Griesa on March 21, 2013 and awaits sentencing.
Mr. Bharara praised the investigative efforts of the Internal Revenue Service, Criminal Investigation.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant United States Attorney Stanley J. Okula, Jr. is in charge of the prosecution.
U.S. v. Henry Seggerman Information
New York Man Admits Role in Foreign Student Visa Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a widespread foreign student visa fraud that took place in Iselin and Jersey City, U.S. Attorney Paul J. Fishman announced.
Manamadurai Somalingam, 64, of Pelham, N.Y., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiring to commit visa fraud and one count of conspiring to conceal and harbor illegal aliens for private financial gain.
According to documents filed in this case and statements made in court: Somalingam admitted that from March 2011 through May 2012, while he was the owner of a school called PC Tech Learning with campuses in Iselin and Jersey City, he engaged in a conspiracy to obtain student visas for foreign citizens who were not eligible for such visas. Somalingam admitted that he falsely certified that a woman he hired to work for him at the Jersey City campus of PC Tech was eligible for a student visa even though he knew that she would be working full-time and was not eligible.
He also admitted that he never terminated a foreign citizen’s student status as long as that individual paid his tuition fees, even though Somalingam, as the primary designated school official for PC Tech, was required to terminate any student who failed to make proper progress in his studies.
The conspiracy to commit visa fraud charge to which Somalingam pleaded guilty is punishable by a maximum potential penalty of five years in prison, and the conspiracy to harbor illegal aliens charge is punishable by a maximum potential penalty 10 years in prison. Both offenses are also subject to a maximum fine of $250,000. Sentencing before U.S. District Judge Anne E. Thompson is scheduled for Dec. 5, 2013.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shana W. Chen of the Economic Crimes Unit in Newark.
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Defense counsel: Timothy R. Anderson Esq., Red Bank, N.J.Somalingam Information
New Philadelphia Man Charged with Child Pornography CrimesRead the Press Release
Brian Meck, 25, of New Philadelphia, Ohio, was charged with production of child pornography, receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct, and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that between the dates of August 31, 2011 and September 30, 2011, Meck produced visual depictions of a minor engaged in sexually explicit conduct, using materials that were mailed, shipped, or transported in or affecting interstate or foreign commerce.
During that same date range, Meck received and distributed in interstate and foreign commerce, numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. In addition, on or about August 2, 2013, Meck possessed an Apple laptop computer that contained child pornography, which had been shipped and transported, or was produced using materials that had been shipped and transported, in interstate and foreign commerce by any means including by computer, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Northern District of Ohio Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Federal Bureau of Investigation, Canton Resident Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mri Diagnostic Testing Company, Imagimed Llc, and Its Former Owners and Chief Radiologist to Pay $3.57 Million to Resolve False Claims Act AllegationsRead the Press Release
Performed MRI Scans Without Doctor Supervision
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian announced that New York-based Imagimed LLC, the company’s former owners, William B. Wolf III and Dr. Timothy J. Greenan, and the company’s former chief radiologist, Dr. Steven Winter, will pay $3.57 million to resolve allegations that they submitted to federal healthcare programs false claims for magnetic resonance imaging (MRI) services. Imagimed owns and operates fifteen MRI facilities, located primarily in New York State, under the name “Open MRI.”
Allegedly, from July 1, 2001, through April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims to Medicare, Medicaid and TRICARE for MRI scans performed with a contrast dye without the direct supervision of a qualified physician. Since a potential adverse side effect of contrast dye is anaphylactic shock, federal regulations require that a physician supervise the administration of contrast dye when it is used for an MRI. Also, allegedly, from July 1, 2005, to April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims for services referred to Imagimed by physicians with whom Imagimed had improper financial relationships. In exchange for these referrals, Imagimed entered into sham on-call arrangements, provided pre-authorization services without charge and provided various gifts to certain referring physicians, in violation of the Stark Law and the Anti-Kickback Statute.
“The Department of Justice is committed to guarding against abuse of federal healthcare programs,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “We will help protect patients’ health by ensuring doctors who submit claims to federal healthcare programs follow proper safety precautions at all times.”
U.S. Attorney for the Northern District of New York, Richard S. Hartunian said: “This case is an example of our commitment to using all of the remedies available, including civil actions under the False Claims Act, to ensure patient safety and combat health care fraud. Stripping away the profit motive for circumventing physician supervision requirements has both a remedial and a deterrent effect. The settlement announced today advances our critical interest in both the integrity of our health care system and the safe delivery of medical services.”
The allegations resolved by the settlement were brought in a lawsuit filed under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. The whistleblower in this case, Dr. Patrick Lynch, was a local radiologist and will receive $565,500.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch and the Department of Health and Human Services’ Office of Inspector General.
The case is United States of America ex rel. Lynch v. Imagimed LLC, et al. (N.D. N.Y.). The claims released by the settlement are allegations only, and there has been no determination of liability.
Michelle Renee Kindness 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 August 28, 2013, before Senior U.S. District Judge Jack D. Shanstrom, MICHELLE RENEE KINDNESS, a 48-year-old resident of Billings, was sentenced to a term of:
Prison: 98 months
Special Assessment: $100
Supervised Release: 5 years
KINDNESS was sentenced in connection with her guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
After learning that KINDNESS routinely brought methamphetamine onto the Northern Cheyenne Indian Reservation for distribution, Bureau of Indian Affairs (BIA) drug unit agents began an investigation into KINDNESS. During the investigation, the BIA received reports from the FBI indicating that KINDNESS had been involved with trafficking meth since at least 2005, and that KINDNESS had purchased and sold twelve ounces of meth during the FBI investigation. FBI agents had purchased eight 1/2 gram baggies containing meth directly from KINDNESS.
On January 9, 2007, KINDNESS was arrested on the Crow Indian Reservation. During the arrest KINDNESS had several paper bindles of meth on her person.
The BIA drug unit conducted a controlled purchase of two grams of meth directly from KINDNESS on December 20, 2010.
On November 29, 2011, agents interviewed an individual in custody on tribal charges of possession of methamphetamine. The individual told the agents that she had purchased 1/2 ounce of meth directly from KINDNESS, in October 2011, and that she saw another 1/2 ounce of meth during the deal.
On April 30, 2012, KINDNESS was arrested on the Northern Cheyenne Indian Reservation for intoxication. During a search incident to arrest, three grams of meth and $6,985 were found in KINDNESS's pants pockets.
On May 27, 2012, less than 30 days after the previous arrest, KINDNESS was arrested for DUI, which involved a head-on collision with a tractor and trailer. Once again, during a search incident to arrest, law enforcement seized 31 paper bindles of meth, 3.8 grams of loose meth in a plastic baggie, and $1,020.
On May 1, 2012, during an in-custody interview with KINDNESS, KINDNESS admitted that she had purchased and sold over one pound of meth over the past year.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KINDNESS will likely serve all of the time imposed by the court. In the federal system, KINDNESS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Indian Affairs.
Michael Bearhill, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 27, 2013, before Chief U.S. District Judge Dana L. Christensen, MICHAEL BEARHILL, JR., a 21-year-old resident of Wolf Point and an enrolled member of a federally-recognized tribe, was sentenced to a term of:
Prison: 40 months
Special Assessment: $100
Supervised Release: 3 years
BEARHILL was sentenced in connection with his guilty plea to robbery.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In the early hours of February 2, 2013, BEARHILL entered a convenience store in Wolf Point, which is within the exterior boundaries of the Fort Peck Indian Reservation, and pointed what appeared to be a gun at two employees behind the counter. He forced them to open the till while he continued to point the gun at an employee. An employee described the robber as having a blank stare, and she realized he was serious. He removed over $300 from the till and fled. He was later identified on video by other employees as BEARHILL.
When questioned, BEARHILL admitted to going into the convenience store, pulling a gun out of his coat, and telling the employees he wanted money.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BEARHILL will likely serve all of the time imposed by the court. In the federal system, BEARHILL 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 Fort Peck Tribes Criminal Investigation Division.
Mexican Who Tried to Threaten Girlfriend into Marriage Gets Federal Time for Illegally Re-Entering the CountryRead the Press Release
LAREDO, Texas – Alejandro Mendoza-Delgado, a 35-year-old citizen of Mexico, has been handed a more than two-year federal prison sentence for entering the United States illegally after having been deported, United States Attorney Kenneth Magidson announced today. Mendoza-Delgado pleaded guilty March 12, 2013.
Today, U.S. District Judge Diana N. Saldaña handed Mendoza-Delgado a sentence of 28 months. At the hearing, evidence established that Mendoza-Delgado was previously deported on Nov. 7, 2012, after serving a two-year sentence for using a pistol to threaten to kill his then girlfriend and her family if she did not marry him.
On Jan. 19, 2013, Border Patrol (BP) agents encountered Mendoza-Delgado at the BP checkpoint 29 miles north of Laredo as a passenger aboard a commercial bus headed for San Antonio. Agents arrested him after they discovered he did not have permission to enter or remain in the United States.
Agents ran a background check and discovered Mendoza-Delgado had been previously convicted for aggravated assault with a deadly weapon.
The investigation leading to the charges in this case was conducted by Border Patrol. Assistant United States Attorney Homero Ramirez prosecuted the case.
McHenry County Man Pleads Guilty to Making A False Declaration in Bankruptcy CaseRead the Press Release
ROCKFORD — A Wonder Lake, Ill. man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to one count of making a false declaration under penalty of perjury in a bankruptcy case filed in the United States Bankruptcy Court in Rockford. JAMES GROSSMAYER, 51, filed a Chapter 7 Bankruptcy Petition on September 19, 2008. As he admitted in his Plea Agreement, Grossmayer also filed a Schedule B listing his personal property on which he intentionally omitted his ownership interest in a New York Life Annuity. Grossmayer further admitted he signed his bankruptcy schedules under penalty of perjury, knowing that Schedule B was false, and that his interest in the annuity at that time was approximately $25,000.
The charge in this case carries a maximum penalty of 5 years’ imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Grossmayer is scheduled to be sentenced on December 5, 2013, at 9:30 a.m.
The guilty plea was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Maryland Man Sentenced to 10 Years in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON - Charles Nickerson, Jr., 35, formerly of Stevensville, Md., was sentenced today to a 10-year prison term on charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of 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).
Nickerson pled guilty in June 2013 in the U.S. District Court for the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for the 10-year prison term. The Honorable Ketanji B. Jackson approved the plea and sentenced Nickerson today. Upon completion of his prison term, Nickerson will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a minimum of 25 years.
According to the government's evidence, on March 5, 2012, Nickerson contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted a message on a website that is frequented by individuals who have a sexual interest in children. As the online exchange continued, Nickerson sent the undercover officer, whom he believed was the father of an under-aged girl, five images of child pornography. During the conversation, they also discussed the possibility of meeting for the purpose of engaging in sexual acts with the child.
In the course of further communications, Nickerson arranged to meet with the undercover officer and the purported child on March 9, 2012. At about 7 that night, law enforcement stopped him in his vehicle in Northwest Washington and placed him under arrest. A search of Nickerson’s car led to the discovery of a blue bag with sex toys and personal lubricant.
Pursuant to a warrant, law enforcement searched Nickerson’s residence in Stevensville, Md., on March 12, 2012. Law enforcement seized a computer which contained numerous images of child pornography, including the five distributed to the undercover officer. As part of his guilty plea, Nickerson agreed to forfeiture of his car, computer, and other items.
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. Attorneys Cassidy Kesler Pinegar, David Last, and Amy H. Zubrensky, who investigated and prosecuted the case, and Catherine K. Connelly, who assisted with forfeiture issues.
13-295Manderson Man Pleads Not Guilty to MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for allegedly using a blunt object to kill another man at Manderson on August 2, 2013.
Yankton was remanded to the custody of the U.S. Marshal. A trial date has not yet been set.
Leonard David Yankton, a/k/a Lenny Yankton, age 37, was indicted by a federal grand jury on August 13, 2013, for second-degree murder. Yankton appeared before U.S. Magistrate Judge Veronica L. Duffy on August 22, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is life imprisonment and a $250,000 fine.
The charge is merely an accusation and Yankton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Mandan Man Found Guilty of Felon in Possession ChargesRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Aug. 28, 2013, James A. Siegrist, a/k/a James A. Robinson, 33, Mandan, N.D., was found guilty by a federal jury on a charge of possession of firearm by a convicted felon and a charge of possession of firearms and ammunition by a convicted felon.
On July 25, 2012, near Glen Ullin, N.D., Siegrist was handling a .45 caliber handgun when it discharged and struck a woman in the leg. On March 19, 2013, in Mandan, N.D., Siegrist was arrested and found to be in possession of three handguns.
Siegrist was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including possession of a controlled substance, forgery, counterfeiting, possession of drug paraphernalia and theft of property.
The charges each carry a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Morton County Sheriff’s Office and the Mandan Police Department.
Sentencing for Siegrist has been scheduled for Nov. 25, 2013, in U.S. District Court in Bismarck, N.D., at 10:00 a.m.
Assistant U.S. Attorney David Hagler is prosecuting the case.
Major Cocaine and Heroin Trafficker Pleads Guilty, Agrees to Forfeit $2.5 Million in AssetsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Ronald Walker, 43, of Corona, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine and one kilogram or more of heroin and conspiracy to commit money laundering. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000.00, or both. The defendant also agreed to the forfeiture of assets with a total value of $2,500,000 to the United States which represented the amount of proceeds from the drug trafficking conspiracy.
Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that between 2005 and August 2012, the defendant participated in a conspiracy to distribute cocaine and heroin. During that time, Walker, in New York City, arranged for the distribution of quantities of cocaine and heroin which was transported to Rochester and distributed. At least 40 kilograms of cocaine and a kilogram of heroin were involved in this conduct. The defendant also laundered drug proceeds by placing at least $911,000 in cash in safe deposit boxes opened by other individuals to conceal the proceeds.
In August 2012, law enforcement officials seized the cash from these safe deposit boxes, as well as approximately $615,000 in cash from two residences connected to Walker. The defendant agreed to forfeit all of that cash, as well as a 2012 Range Rover vehicle, articles of jewelry and two properties located in Corona, N.Y., and Union City, Georgia, all proceeds of his illegal activities.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, investigators with the Rochester Police Department, under the direction of Chief James Sheppard, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.
Sentencing is scheduled for Dec. 3, 2013, at 3:00 p.m. before Judge Geraci.Louisiana Man Guilty of Orange, Texas Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 49-year-old Cameron, LA, man has pleaded guilty to bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Allen Keith Miller pleaded guilty to bank robbery today before U.S. Magistrate Judge Keith Giblin.According to information presented in court, on June 25, 2013, Miller entered the Capital One Bank branch office located on 16th Street in Orange, Texas, wearing a blonde wig, baseball cap, long-sleeve shirt, tan pants and a black knee brace. Miller approached a bank teller and presented a hand-written note advising that the bank was being robbed. Miller also advised that he was armed although a weapon was not displayed. Media outlets broadcast footage of the bank robbery and Miller was identified by citizens. Miller was stopped by law enforcement officers in Louisiana, at which time items from the robbery, including the wig, baseball cap, clothing, and knee brace, were located in Miller’s vehicle. Miller was indicted by a federal grand jury on July 11, 2013 and charged with bank robbery.
Miller faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Local Man, Cristino Nunez, Pleads Guilty to Theft of Government MoneyRead the Press Release
CRISTINO NUNEZ, age 48, a resident of New Orleans, pled guilty in federal court today before U.S. District Court Judge Susie Morgan to theft of government money, announced U. S. Attorney Dana J. Boente.
According to the court records, from March 2001 through July 2011, NUNEZ stole approximately $186,917.50 from the Social Security Administration by obtaining Social Security Disability Insurance payments and other benefits to which he was not entitled.
NUNEZ faces a maximum sentence of ten years in prison, a maximum fine of $250,000, and up to three years of supervised release following any term of imprisonment. Sentencing is scheduled for November 20, 2013.
The case was investigated by the Social Security Administration-Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Chandra Menon.
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Laredoans Sentenced in Alien Smuggling CaseRead the Press Release
LAREDO, Texas – Luis Alberto Loera, 27, and Anthony William Martinez, 19, both residents of Laredo, have been ordered to federal prison in relation to an alien smuggling conspiracy, United States Attorney Kenneth Magidson announced today. Both pleaded guilty Feb. 15, 2013.
Today, Senior U.S. District Judge George P. Kazen, who accepted the guilty pleas, sentenced Loera and Martinez to 80 and 60 months in prison, respectively. Both were further ordered to serve three-year-terms of supervised release following completion of their prison terms. In handing down the sentence, Judge Kazen took into consideration the extensive scope of the organization, the estimated number of aliens transported, the leadership roles of the defendants and their personal background. As a part of their supervised release, Judge Kazen also ordered Loera and Martinez to complete 150 and 120 hours of community service, respectively, after their release from federal custody.
Between July and August 2013, Loera and Martinez were suspected to be the organizers of several alien smuggling incidents involving numerous illegal aliens and stolen vehicles, but were never apprehended on scene by law enforcement. The investigation linked these two individuals as leaders and organizers of an extensive alien smuggling organization that coordinated the transportation and harboring of estimated several hundred illegal aliens over the course of several months.
At the time of their pleas, Loera and Martinez admitted to being involved in a long-running conspiracy to transport a large number of aliens within the United States for profit.
Both have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sonah Lee.
Joseph Michael Velk Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 27, 2013, before Chief U.S. District Judge Dana L. Christensen, JOSEPH MICHAEL VELK, a 24-year-old resident of Havre, was sentenced to a term of:
Prison: 8 months
Special Assessment: $100
Forfeiture: rifle
Supervised Release: 3 years
VELK was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm and ammunition.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On January 14, 2011, VELK was sentenced for felony burglary and felony criminal possession of dangerous drugs in the Twelfth Judicial District Court in Hill County and therefore prohibited from possessing firearms or ammunition.
On August 16, 2011, a Hill County Deputy was on patrol in an area of the county which had experienced recent break-ins. Around 3:39 a.m., the deputy observed a pickup in the same area. The deputy stopped the pickup for a traffic violation. The deputy identified the driver of the truck as VELK. The deputy also could see empty alcohol containers, a full Bud Light can, a large spotlight, and a dead rabbit in the truck. He also saw a rifle tucked between the driver's seat and driver's side door.
Later that same morning, law enforcement searched the pickup. During the search, the officers located a Henry Repeating Arms .22 Rifle, as well as an open box of Remington .22 shells. The officers found the shells by the clutch between the driver's seat and passenger seat. The rifle was still between the driver's seat and driver's side door.
When questioned, VELK admitted to possessing the Henry Repeating Arms .22 long rifle Lever Action and a box of Remington .22 shells.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that VELK will likely serve all of the time imposed by the court. In the federal system, VELK does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Havre Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jefferson City Man, Woman Indicted for $100,000 Student Loan FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man and woman were indicted by a federal grand jury today for engaging in a bank fraud scheme in which they unlawfully received more than $100,000 in student loans under another person’s name.
Lisa Kay Baker, 52, and David Waymon Baker, 56, both of Jefferson City, were charged in an 11-count indictment returned by a federal grand jury in Jefferson City. Although Lisa and David Baker were married to each other at the time of the alleged criminal scheme, they divorced in 2009.
Today’s indictment alleges that Lisa and David Baker applied for student loans in the name of another person (identified in the indictment as “RLB”) without that person’s knowledge or consent from July 2005 to September 2007. In each application submitted, the indictment says, the applications were filled out by at least one or both of the defendants, and then one or the other (or a third person at their direction) would forge the signature of “RLB.”
In these loan applications, according to the indictment, Lisa Baker and David Baker, pretending to be “RLB,” concealed the fact that they were actually getting use of the money themselves and that “RLB” had no knowledge of the loan applications and did not authorize the applications to be made.
Fraudulent loan applications were submitted to Sallie Mae Loan Processing, the indictment says, which would then assign the loans to Sallie Mae Bank and The First National Bank of Sioux Falls (S.D.).
Lisa and David Baker are each charged in 11 counts of bank fraud for a series of 11 fraudulent loans, ranging from $6,500 to $19,200, totaling $109,000.
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 Anthony P. Gonzalez. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department and the Jefferson City, Mo., Police Department.JaVierre Head Chosen as Detroit OneRap Contest WinnerRead the Press Release
Contest Showcasing Talented Teens from Detroit
Javierre Head, 17, of Detroit, Michigan was the winner of the first Detroit One Rap Contest promoting anti-violence, announced U.S. Attorney Barbara L. McQuade.
The rap contest was part of this year’s Youth Summit, the youth-led event hosted by the Detroit Youth Violence Prevention Initiative (DYVPI) in partnership with Detroit One and Youth Voice.
The day-long Summit included presentations on safe routes to school, the consequences of bullying, student-led school safety stations, self-defense tactics, and a rap contest featuring original material with a non-violence theme prepared and performed by Detroit high school students.
Javierre appeared on Fox 2's morning show and performed his rap and will be featured in a local public service announcement. Rap contest judges included City Council President Saunteel Jenkins, DJ BJ of 107.5 FM, a Detroit high school student, and a representative of the United States Attorney’s Office.
United States Attorney Barbara L. McQuade stated, “The youth summit provided a positive image of Detroit by showcasing talented teens working to prevent violence.”
Below is a link to Javierre’s performance on Fox 2 News: http://www.myfoxdetroit.com/video?clipId=9238003&autostart=true
Indictment: Former Employee Stole $1 Million Worth of Garmin GPS DevicesRead the Press Release
KANSAS CITY, KAN. – A man who used to work for the Garmin company in Olathe, Kan., has been indicted on federal charges of stealing more than $1 million worth of GPS devices from the company, U.S. Attorney Barry Grissom said today.
Terrence M. Heathington, 31, currently of Atlanta, Ga., is charged with forty counts of mail fraud. The indictment alleges that the crimes were committed between March and September 2008 while Heathington worked as a warehouse material handler for Garmin International, Inc., in Olathe. He caused boxes of GPS devices to be shipped via commercial carrier to his residence and the residences of co-conspirators. He and other conspirators sold the GPS devices on eBay and through other means. He stole approximately 165 cases of Garmin GPS devices with a wholesale value of more than $1 million.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The U.S. Secret Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER INDICTMENTS
Derrick L. Freeman, 28, Kansas City, Kan., Joe Freeman, 33, Kansas City, Kan., and Jeffrey B. Jackson, 47, Kansas City, Kan., are charged in a superseding indictment with one count of conspiracy to commit armed robbery. In addition, Derrick Freeman and Jeffrey Jackson are charged with one count of brandishing and discharging a firearm. In addition, Derrick Freeman is charged with one count of carjacking, two counts of brandishing and discharging a firearm, and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in May 2013 in Kansas City, Kan.
The defendants initially were charged in a criminal complaint filed June 5 in U.S. District Court in Kansas City, Kan.
The indictment alleges the defendants arranged to buy synthetic marijuana from a man in Kansas City, Kan. Once at his home, they threatened him with a gun and stole his money.
Upon conviction, the crimes carry the following penalties: Conspiracy: A maximum penalty of 20 years in federal prison and a fine up to $250,000
Brandishing and discharging a firearm in a crime of violence: Not less than 10 years and not more than life and a fine up to $250,000 on each count. Conviction for a second or subsequent conviction: Not less than 25 years and a fine up to $250,000.
Carjacking: A maximum penalty of 15 years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.The Kansas City, Kan., Police Department investigated. Special Assistant U.S. Attorney Erin Tomasic and Special Assistant U.S. Attorney Trent Krug are prosecuting.
Adrian L. Brown, 29, is charged with escaping from federal custody at the Grossman Community Corrections Center, a halfway house located in Leavenworth, Kan.. The crime is alleged to have occurred Aug. 21, 2013.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Dale Ray Reiman, 53, Lawrence, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm after a felony conviction, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Oct. 25, 2012, in Douglas County, Kan.
If convicted he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the charge of possession with intent to distribute, a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm after a felony conviction and a penalty of not less than five years on the charge of unlawful possession of a firearm in furtherance of drug trafficking. The Kansas City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Tris Hunt and Assistant U.S. Attorney Scott Rask are prosecuting.
Shawn Richard Seburn, 35, Topeka, Kan., is charged with one count of failing to register as required by the Sex Offender Registration and Notification Act. The crime is alleged to have occurred between April 15 and Aug. 21, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Topeka Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Johnathan Rush, 28, who is in federal custody, is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred July 27, 2013, in Topeka, Kan.
If convicted, Rush faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Shawnee County Sheriff’s Office, the Lawrence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. U.S. Attorney Barry Grissom is prosecuting.
Arthur D. Mitchell, 20, Kansas City, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Aug. 21, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Aarick M. Warren, 28, Kansas City, Mo., is charged with one count of conspiracy to distribute crack cocaine; two counts of distributing crack cocaine within 1,000 feet of Bethany Park in Kansas City, Kan.; one count of possession with intent to distribute crack cocaine within 1,000 feet of Bethany Park in Kansas City, Kan.; one count of maintaining a residence at 1026 Reynolds Avenue in Kansas City, Kan., in furtherance of drug trafficking; one count of unlawful possession of a firearm in furtherance of drug trafficking; one count of unlawful possession of a firearm after a felony conviction; and two counts of using a telephone in furtherance of drug trafficking. The crimes are alleged to have occurred at various times between Jan. 1, 2012, and Jan. 16, 2013, in Kansas City, Kan.
Upon conviction, the crimes carry the following penalties: Conspiracy: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
Distributing crack cocaine within 1,000 feet of a public park: A maximum penalty of 40 years and a fine up to $4 million on each count.
Possession with intent to distribute crack cocaine within 1,000 feet of a public park: Not less than five years and not more than 80 years and a fine up to $10 million.
Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $500,000.
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000: A maximum penalty of 10 years and a fine up to $250,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $30,000 on each count.The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Independence, Mo., Man and Woman Plead Guilty to Violating Civil Rights of Family by Torching Their HomeRead the Press Release
Tammy Dickinson, U.S. Attorney for the Western District of Missouri, and Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, announced that an Independence, Mo., man and woman pleaded guilty in federal court today to violating the civil rights of an African-American family by setting fire to their residence.
Logan J. Smith, 25, and Victoria A. Cheek-Herrera, 34, both of Independence, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of conspiring to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color and one count of a civil rights violation for committing a racially-motivated arson. Smith waived his right to a grand jury indictment and pleaded guilty to a two-count information, whereas Cheek-Herrera pleaded guilty to two of three counts charged in an indictment returned by the grand jury on May 23, 2013.
By pleading guilty, Smith and Cheek-Herrera admitted that on June 26, 2008, they conspired to injure, oppress, threaten and intimidate an African-American couple and their minor children in the free exercise of their constitutional rights to occupy and rent their home in Independence, because of their race and color.
According to the plea agreements, Smith and Cheek-Herrera discussed their desire to set fire to the home of the couple, and they drew a swastika and wrote the words “White Power” on the driveway. Smith and Cheek-Herrera asked a juvenile acquaintance for gasoline and then created a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Smith and Cheek-Herrera then lit the wick and threw the gasoline-filled bottle into the side of the house that the couple was renting and set the residence on fire.
Smith and Cheek-Herrera each face a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one count of conspiracy against rights and a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one count of interference with housing rights.
This case was investigated by the FBI and is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice.
Husband and Wife Sentenced to Five Years Each for Filing False Tax ReturnsRead the Press Release
PHOENIX – On Aug. 27, 2013, Shelia Young, 49, and Deane Young, 49, of Overgaard, Ariz., were each sentenced by U.S. District Judge David G. Campbell to five years of imprisonment for submitting false tax returns to the Internal Revenue Service. The Youngs were found guilty by a federal jury on Feb. 21, 2013, of conspiring to defraud the United States and submitting false claims for tax refunds.
Evidence at trial showed that the Youngs owned and operated Accurate Consulting LLC, an accounting and tax preparation business in Heber-Overgaard, Ariz. In addition to preparing lawful tax returns, the Youngs prepared and filed fraudulent tax returns on behalf of some of their clients that claimed false refunds ranging from $12,405 to $368,102 per return. In total, the Youngs filed 122 false returns claiming nearly $10 million in fraudulent refunds. To make the false claims appear legitimate, the Youngs filed tax forms with the IRS, including the Form 1099-OID, that reported false income and tax withholding for the clients. Evidence also showed that the Youngs lied to their clients, telling them that the refund claims were based on tax loopholes unknown to the general public. They also bolstered their credentials, falsely claiming over 86 years of combined experience and assuring their clients that a federal judge had approved the filing method.
“Tax fraud is an insult to all honest, taxpaying citizens in this country,” said U.S. Attorney John S. Leonardo. “Hopefully the sentences imposed will discourage others from engaging in similar conduct.”
“The Youngs stole money from the taxpayers of the United States through their fraudulent tax return scheme. In addition, their clients are now responsible for paying back the taxes, penalties, and interest associated with these bogus tax returns and potentially will be prosecuted,” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service, Criminal Investigation. “Be wary of any tax return preparer who promises a refund that sounds too good to be true.”
The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation. The prosecution was handled by James R. Knapp and Michael T. Morrissey, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-10-8216-PCT-DGC
RELEASE NUMBER: 2013-070_Young_etal# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/Houston Man Charged with Sex Trafficking of A MinorRead the Press Release
HOUSTON – Alexander Joseph Johnson, 24, of Houston, has been indicted on charges of sex trafficking of a 15-year-old female, United States Attorney Kenneth Magidson announced today.
Johnson was arrested on Aug. 6, 2013, based on a criminal complaint. On Aug. 8, he appeared before U.S. Magistrate Judge Nancy Johnson for a detention hearing. At that time, Judge Johnson found there was probable cause to believe he committed the crime of sex trafficking of a minor, that he was a danger to the community and a flight risk and ordered him into custody.
According to the criminal complaint, the victim was forced to perform sex acts with strangers for money and turn that money over to Johnson. Johnson allegedly posted advertisements online for commercial sex for the victim in Houston and Colorado. The victim was forced to earn $500 dollars an evening, according to the complaint, and when she met her quota, Johnson would allegedly “reward” her by having sex with her. Allegations also include that Johnson provided the victim with marijuana and alcohol and only provided her food at his discretion.
If convicted, Johnson faces a minimum of 10 years and up to life in federal prison as well as a maximum fine of $250,000. Upon completion of any prison term imposed, he also faces a maximum lifetime term of supervised release and he will be required to register as a sex offender.
The Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, investigated.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Fugitive Couple Sentenced for Identity TheftRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that U.S. District Judge Mary S. Scriven today sentenced Michelle M. Lutz (Clearwater, 36) to two years in federal prison for aggravated identity theft. On August 20, 2013, Senior U.S. District Judge Susan C. Bucklew sentenced her husband, Paul M. Lutz (Clearwater, 44), to two years and eight months in federal prison for misuse of a passport and aggravated identity theft.
According to court documents, Paul and Michelle Lutz were arrested in San Bernadino, California, for drug and weapon violations in October 2001. Shortly after their arrests, they fled California and assumed new identities. The Lutzs lived in Nevada for several years before moving to Clearwater, Florida, in 2008. While living in Clearwater, the couple had a son. Michelle Lutz worked as an exotic dancer, while Paul M. Lutz attended school, cared for the minor son, and coached a Clearwater Little League team.
In May 2012, Michelle M. Lutz, using an assumed identity, applied for a United States Passport in Clearwater. During the processing of her application, fraud detection managers determined that the information provided in the application was false. A follow up investigation revealed that Michelle and Paul Lutz had active warrants out of the State of California and were hiding out in Clearwater.
On March 6, 2013, a federal search warrant was executed at the Lutzs' Clearwater residence. Law enforcement seized blank birth certificates from more than seven different states, blank baptismal records, blank education school diplomas, a blank marriage license, social security cards and numbers in approximately fifteen different identities, stamps and seals for official documents, counterfeit currency, and an instruction book on how to establish a new identity.
This case was investigated by the Department of State Diplomatic Security Service. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
Four Men Charged with Conspiring to Engage in Sex Trafficking of A MinorRead the Press Release
NEWARK, N.J. – Four men from Haverstraw, N.Y., and Philadelphia, Pa., have been charged in federal court with conspiring to engage in the sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.
Karl Venord, 30, a/k/a “Dreadhead,” and Samuel Verrier, a/k/a “Dre,” 35, both of Philadelphia, were charged by complaint with conspiring to engage in the sex trafficking of a minor. Both are scheduled to appear in Newark federal court later today before U.S. Magistrate Judge Stephen C. Mannion.
Varian Charles, 28, a/k/a “Bob,” of Philadelphia, was indicted August 27, 2013, by a federal grand jury for conspiring to engage in the sex trafficking of a minor. He was previously charged with the same offense in a criminal complaint and appeared in Camden federal court on July 24, 2013, before U.S. Magistrate Judge Ann Marie Donio, where he was ordered detained.
Wilbur Senat, 23, a/k/a “Wilby,” of Haverstraw, was charged in a criminal complaint with conspiring with Charles to engage in the sex trafficking of a minor. He appeared in Newark federal court on August 6, 2013, before U.S. Magistrate Judge Cathy L. Waldor, where he was ordered detained.
According to the documents filed in this case:
In the summer of 2011, the minor victim met Senat in upstate New York. Shortly after they met, Senat allegedly took the minor victim to a motel in Nyack, N.Y. At the motel, Senat forced the victim to engage in commercial sex acts with various individuals, who paid Senat money in exchange for the sex acts performed by the minor victim.
Shortly after this incident, Senat allegedly threatened the victim that if she did not agree to leave New York with him, her family would be harmed. As a result of these threats, the victim agreed to leave with Senat. Senat then purchased tickets for himself and the victim to travel from New York City to Philadelphia via public transportation.
Upon arriving in Philadelphia, the victim and Senat were picked up by Charles. Charles took them back to his house in Philadelphia, where Senat and Charles told the victim that she would be staying at Charles’ house in order to engage in prostitution. While at Charles’ house, the victim was forced to have sex with various individuals, who paid Senat and Charles in exchange for the sex acts performed by the victim. While the victim was staying at Charles’ house, she was also physically abused by Senat and Charles.
While at Charles’ house, the victim met Verrier. Verrier took the victim from Charles and told her that she could make more money working for him. Verrier then brought the victim to various clubs in Philadelphia, where he instructed her to solicit club patrons for sex acts in exchange for money.
In late August 2011, after the victim began working for Verrier, he introduced her to Venord. Venord and Verrier asked the victim to accompany them on a car ride to New Jersey. The victim agreed, because she thought she would be taken to visit her family member who lived in New Jersey.
During the drive to New Jersey, Venord and Verrier told the victim that they intended to blackmail an individual who was in New Jersey. Venord and Verrier told the victim that she was to have sex with this individual and take photographs of him, and that they would use these photographs to blackmail him.
Venord and Verrier drove the victim to Bordentown, N.J., to locate the individual that they intended to blackmail. After locating the individual outside a bank, Venord and Verrier attempted to have the victim proposition the individual, but they were unsuccessful in this attempt.
The count of conspiracy to engage in the sex trafficking of a minor is punishable by a maximum statutory penalty of life in prison. It also carries a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Sarah Wolfe in Trenton and Courtney M. Oliva in Newark.
The charges and allegations summarized above are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-349Defense counsel: Venord and Verrier: TBD
Charles: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Senat: Michele Ann Adubato Esq., Bayonne, N.J.Charles Indictment
Venord, Karl, et al., ComplaintFormer State Prison Guard to Serve 43 Years in Prison for Child Exploitation, PornographyRead the Press Release
Springfield, Ill. – U.S. District Judge Richard Mills this afternoon sentenced former Illinois correctional officer Steven L. Carson, of Hillsboro, Ill., to serve 520 months (43 years, 4 months) in federal prison, to be followed by a lifetime term of supervised release. Carson pleaded guilty in February 2013, to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography.
Carson has remained in the custody of the U.S. Marshals Service since his arrest in August 2012, when he was charged with distribution of child pornography in a federal criminal complaint. According to the affidavit filed in support of the complaint, the Sacramento, Ca. division of the FBI’s Cyber Crime Unit was conducting an undercover investigation of peer-to-peer file-sharing accounts in April 2012, when an undercover agent conducted a file sharing session with Carson. At the time, Carson was employed as a prison guard at Graham Correctional Center.
Carson was indicted by a grand jury, and on Feb. 21, 2013, pled guilty to three counts: sexual exploitation of a minor; distribution of child pornography; and possession of child pornography. Carson admitted that he used a child to perform sexually explicit conduct which he videotaped. Further, Carson admitted that he engaged in peer-to-peer file sharing of child pornography, including prepubescent boys; and that he possessed images of child pornography, including more than 2,300 images and 40 videos which agents recovered from Carson’s computers.
The charges were investigated by the FBI. The case was prosecuted by Assistant U.S. Attorney Gregory K. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Non-Native Employee of Indian Health Services Pleads Guilty to Fraudulent Acquisition of Controlled SubstancesRead the Press Release
ALBUQUERQUE – Jason Lucas, 30, of Albuquerque, N.M., pleaded guilty this morning to the acquisition of a controlled substance through fraud and deception under a plea agreement with the U.S. Attorney’s Office.
Lucas was indicted in Jan. 2013, and charged with five counts of acquiring controlled substances through fraud and deception and three counts of defrauding a health care benefit program by having the program pay for fraudulently acquired controlled substances. According to the indictment, between Feb. 2012 and March 2012, Lucas fraudulently obtained Oxycodone and Hydrocodone by filling fraudulent prescriptions at retail pharmacies in Bernalillo County, N.M. At the time of the crimes alleged in the indictment, Lucas, who is not a Native American, was employed as an emergency medical technician at the Acoma-Canoncito-Laguna (ACL) Service Unit of the Indian Health Services (IHS) in San Fidel, N.M.
During this morning’s proceedings, Lucas pled guilty to Count 5 of the indictment, charging him with obtaining Hydrocodone on March 29, 2012 by using a fraudulent prescription. In his plea agreement, Lucas admitted that he fraudulently obtained blank prescription sheets from the ACL Service Unit and filled out fraudulent prescriptions by forging the names and DEA numbers of two physician assistants employed by the ACL Service Unit. One of the falsified prescriptions was dated March 23, 2012, and Lucas filled the prescription for 90 tablets of Hydrocodone on March 29, 2012.
Lucas remains on conditions of release under pretrial supervision pending his sentencing hearing, which has not yet been scheduled. At sentencing, Lucas faces a maximum penalty of four years in prison and a $250,000. Under the terms of the plea agreement, the remaining seven counts of the indictment will be dismissed when Lucas is sentenced.
This case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.Former Executive Director of Gallup Housing Authority Charged with Federal Fraud and Theft OffensesRead the Press Release
ALBUQUERQUE – A federal grand jury has indicted two men from Gallup, N.M., on charges that they engaged in a scheme to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) of more than $100,000. The indictment was announced by Acting U.S. Attorney Steven C. Yarbrough, Phyllis Robinson, Special Agent in Charge of Region 6, HUD Office of Inspector General, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
Danny Garcia, 37, and Michael Virruso, 61, are charged in a 12-count indictment that was filed late yesterday afternoon. The indictment charges Garcia and Virruso with one count of conspiracy and eight counts of making false claims against the United States. It also charges Garcia with three counts of theft from programs receiving federal funds. According to the indictment, from June 2010 through Oct. 2012, Garcia and Virruso engaged in a scheme to steal federal funds provided by HUD to the Gallup Housing Authority (GHA). At the time of the offenses charged in the indictment, Garcia was the Executive Director of GHA.
HUD is a federal agency whose core mission is to make quality, affordable housing accessible to all Americans. It oversees and funds programs designed to provide affordable housing for low-income Americans. One such program is the Capital Fund Program (CFP) which provides grants to public housing agencies for the purpose of making improvements to public housing developments. According to the indictment, GHA is a public housing agency that receives approximately $400,000 in CFP grants each year.
The indictment alleges that as Executive Director of GHA, Garcia was responsible for selecting contractors to carry out GHA projects, reviewing and approving invoices payable by GHA, and requesting HUD funds to pay for GHA projects. It further alleges that in summer 2010, Garcia awarded a contract to remove and replace sidewalks in a GHA housing development to a construction company that employed Virruso (company) and also appointed Virruso to act as safety inspector. While working on the project, Virruso allegedly submitted invoices to GHA for work performed by the company and for which the company received payment, and Garcia allegedly used GHA funds to pay Virruso’s invoices and then obtained reimbursement from HUD’s CFP. According to the indictment, Virruso fraudulently received more than $75,000 through this scheme. The indictment also alleges that Garcia embezzled more than $15,000 of HUD funds by misusing a GHA debit card.
Count 1 of the indictment charges the defendants with conspiracy and carries a maximum penalty of five years of imprisonment and a $250,000 fine on conviction. Counts 2 through 9 each charge the defendants with making false claims against the United States. A conviction on each of these counts carries a maximum penalty of five years of imprisonment and a $250,000 fine on conviction. Counts 10 through 12 each charge Garcia with theft of government property. A conviction on each of these counts carries a maximum penalty of ten years of imprisonment and a $250,000 fine. Charges in indictments are only accusations and defendants are presumed innocent unless proven guilty.
The case was investigated by the Region 6, HUD Office of Inspector General and the Albuquerque Division of the FBI, and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.-
Indictment
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Former Commodities Trader Charged with Causing $5 Million Loss to Bank and Others in Alleged $10 Million Fraud SchemeRead the Press Release
CHICAGO ― A former Chicago commodities trader was charged today with allegedly fraudulently raising more than $10 million and misappropriating a substantial portion of the money for his personal commodities futures trading, to make Ponzi-type payments to investors, and to benefit himself and his family, resulting in a loss of at least $5 million. The defendant, BRADLEY SCHILLER, allegedly used some of the funds to pay for personal and family expenses, including a Range Rover, jewelry, condominium fees, housing rental fees for his mother-in-law, and country club fees.
Schiller, 37, of Chicago, was charged with three counts of wire fraud in an information filed today in U.S. District Court. He will be arraigned on a date to be determined.
According to the charges, Schiller, who represented himself as a successful commodities future trader, raised more than $10 million between 2007 and 2012 from various sources, including The PrivateBank and Trust Company, in connection with his futures trading. In raising the funds, Schiller allegedly lied to sources and prospective providers of funds about the profitability of his futures trading, the use of money he raised, the risks involved in providing him with money, his financial condition and the status of the funds. He misappropriated a substantial portion of the money raised and concealed the scheme by making Ponzi-type payments to victims and by creating and distributing fraudulent documents, including phony commodities brokerage and bank account statements, false financial statements, and false tax forms, the charges allege. During the scheme, Schiller had trading losses of more than $1.5 million and need to continually raise new funds to repay earlier providers of funds.
In obtaining a $2 million line of credit from The PrivateBank, for example, Schiller allegedly falsely represented that he had a net worth of about $2.6 million and an overall balance in his commodities accounts in April 2009 of approximately $5.5 million. Schiller allegedly knew, however, that he had a negative net worth at the time and his overall balance in his commodities accounts was nearly zero.
The charges were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission provided assistance.
Each count of wire fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a $1 million fine, or an alternative fine totaling twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. An information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney Edward Kohler.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.StopFraud.gov.
Former Chicago White Sox Executive Sentenced for Taking Kickbacks from Latin American Players’ Signing BonusesRead the Press Release
CHICAGO — A former Chicago White Sox scouting executive was sentenced today to two years in federal prison for accepting approximately $440,000 in kickbacks from the signing bonuses and contract buyouts that two of the team’s Latin American scouts paid to secure 23 prospective players between December 2004 and February 2008. The defendant, DAVID S. WILDER, the White Sox farm system director from late 2003 to 2006, when he became the team’s senior director of player personnel until May 2008, had pleaded guilty to mail fraud in February 2011.
Wilder, 52, of San Francisco, was ordered to begin serving his sentence on Oct. 31 by U.S. District Judge Charles Norgle. Wilder was also ordered to pay $440,781 in restitution to the White Sox.
Wilder admitted that he defrauded the White Sox of money and his honest services while concealing the kickbacks from the team and its more senior executives. He later cooperated with the investigation, leading the government to ask for a reduced sentence.
Two former White Sox scouts, JORGE L. OQUENDO RIVERA, 52, of Puerto Rico, the team’s Latin American scout between November 2004 and October 2007, and VICTOR MATEO, 42, of the Dominican Republic, a Sox scout in the Dominican Republic between November 2006 and May 2008, were also charged and pleaded guilty to mail fraud. Oquendo Rivera is scheduled to report to prison this Friday to begin serving a sentence of a year and a day that Judge Norgle imposed in June. Mateo is scheduled to be sentenced on Sept. 18.
According to court documents, the White Sox relied on Wilder, as well as Oquendo Rivera and Mateo, to recommend and approve signing bonus and related payments, depending on a player’s talent, necessary to induce a player to sign with the White Sox, or to induce another team to release the player to the White Sox, without being inflated for kickbacks. Instead, Wilder and the other defendants facilitated, solicited, or obtained more than $440,000 in kickbacks from at least 23 Latin American players signed by the White Sox.
The White Sox reported findings of an internal investigation to Major League Baseball and baseball officials referred the matter to federal authorities. Both the team and Major League Baseball were instrumental in launching the investigation and provided continuing cooperation.
The government is being represented by Assistant U.S. Attorneys Christopher K. Veatch and Michelle Nasser.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert G. Shields, Jr., Acting Special Agent-in-Charge of the Federal Bureau of Investigation.
Former Bank Vice President Charged with Attempted Online Enticement of A MinorRead the Press Release
Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Kirk A. Simmons, age 59, of Newark, Delaware, was arrested earlier today and charged by criminal complaint with attempted coercion and enticement of a minor, in violation of Title 18, United States Code, Section 2422(b). This federal criminal charge results from an online sting operation conducted in June and July 2013 by an undercover Delaware State Police detective posing as a father who posted an online advertisement seeking other men to join him for sex with his 13-year-old daughter.
At the time of the sting operation, Simmons was employed as a Vice President, Market Information Manager II at Bank of America’s Newark, Delaware facility. Bank of America terminated Simmons’s employment following notification of his alleged conduct. According to his LinkedIn profile, Simmons also currently works as a “Professional private tutor” through WyzAnt Tutoring, “providing private in-home tutoring at the high school and college levels.”
If convicted of the charges, Simmons faces a mandatory minimum sentence of at least ten years of imprisonment and up to life in prison, a fine of up to $250,000, and a term of supervised release of at least five years to life following his prison sentence. He also will be required to register as a sex offender in any jurisdiction in which he resides, works or attends school.
Simmons began his online relationship with the undercover “father” in June 2013, when Simmons responded to a “personals” advertisement for “fam love/taboo” on an adult social networking website. Through online chats, Simmons indicated and graphically described that he wanted to engage in sexual activity with the purported “father” and his child. After a number of online conversations, the “father” agreed to bring his “13-year-old daughter” to a Newark hotel on July 18, 2013, where Simmons would meet them for sexual activity.
Simmons was arrested by the Delaware State Police Child Predator Task Force on July 18, 2013, after he arrived at a Newark hotel to engage in sex acts with the fictitious “father” and “13-year-old daughter.” Shortly before that meeting, Simmons was under surveillance by Delaware State Police and was observed driving directly from his workplace to the hotel. In a recorded interview with a Delaware State Police detective, Simmons admitted that he intended to engage in sexual activity with the fictitious “father” and “13-year-old daughter” at the hotel. Simmons also admitted that he brought a digital camera with him to photograph the sexual activity.
Simmons was released from state custody after posting bail in July 2013 on a state charge of Attempted Rape Third Degree of a Minor filed in Delaware Superior Court. The Delaware Child Predator Task Force thereafter referred the case to the United States Department of Homeland Security and the United States Attorney’s Office for possible federal prosecution. The state charge remains pending.
Simmons will remain in federal custody pending a detention hearing scheduled for Tuesday, September 3, 2013, at 8:30 a.m., before Chief United States Magistrate Judge Mary Pat Thynge. At that hearing, the court will determine whether to detain Simmons or to release him on bail conditions pending trial.
Any person possessing information about this matter are encouraged to contact the United States Department of Homeland Security’s Tip Line at 302-428-0104, extension 3.Florida Man, Roger Brent Churchwell, Pleads Guilty to Receiving Images Depicting the Sexual Exploitation of ChildrenRead the Press Release
ROGER BRENT CHURCHWELL, age 38, a resident of Vero Beach, Florida, plead guilty as charged today before U.S. District Judge Helen G. Berrigan, after previously being charged with receiving images depicting the sexual victimization of children, announced U.S. Attorney Dana J. Boente.
According to court documents, during the summer of 2012, CHURCHWELL resided in New Orleans, Louisiana. During the early morning hours of September 16, 2012, CHURCHWELL entered the Old Point Bar, located in Algiers, Louisiana. When he left the bar approximately one hour later, he left his iPhone in the bathroom. A patron found the phone and, in an attempt to identify to whom it belonged, looked at photographs on the phone. The patron saw images of child pornography, and the Federal Bureau of Investigation was notified. After obtaining a search warrant, agents conducting a forensic examination found more than 300 images depicting children as young as 3-years-old engaging in sexually explicit conduct.
CHURCHWELL faces a mandatory minimum of 5 years, and a maximum of 20 years in prison, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing has been scheduled for December 4, 2013, before Judge Berrigan.
This case is being investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
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Filer Man Sentenced for Conspiring to Distribute Meth in Twin Falls AreaRead the Press Release
BOISE – Christopher Palacios, a/k/a “Paco,” 41, of Filer, Idaho, was sentenced today to 218 months in prison followed by five years of supervised release for conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Palacios appeared today before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. He pleaded guilty to the charge on February 26, 2013.
According to court documents, Palacios admitted that between March 29 and May 21, 2012, he conspired with his co-defendants, Terry O’Brien and Krystal Reese, to distribute methamphetamine in the Twin Falls area.
Co-conspirator Terry Lee O’Brien, 54, of Boise, Idaho, was sentenced on July 2, 2013, to 66 months in prison for conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine.
Co-conspirator Krystal Amber Reese, 32, of Filer, pleaded guilty on July 2, 2013, to possession with intent to distribute methamphetamine. Sentencing is set for September 23, 2013.
The case was investigated by the Idaho State Police.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on August 28, 2013: Damion Alexander, 19, of Fort Wayne, Indiana, is charged in a single count Indictment with possession of a firearm by a domestic batterer on or about July 23, 2013. The Indictment also seeks the forfeiture of firearms and ammunition. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Raul Resendiz, 34, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about July 21, 2013. The Indictment also seeks the forfeiture of firearms. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
Trevor Rodriguez, 22, and Hayley VanDurmen, 20, both of Fort Wayne, Indiana, are charged in an eight count Indictment respectively. Both defendants are charged with knowingly selling a firearm to a convicted felon and aiding and abetting on or about April 26, 2013. In addition, Rodriguez is also charged with distribution of marijuana on or about May 24, 2013, possession of a firearm in furtherance of a drug trafficking crime on or about May 24, 2013, knowingly selling a firearm to a convicted felon on or about June 25, 2013, July 1, 2013, July
15, 2013 and July 30, 2013, and maintaining a drug involved premise. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Dontae Travier, 29, of Kalamazoo, Michigan, and Cameron Patterson, 28 of Fort Wayne, Indiana, are charged in a single count Indictment with armed bank robbery and aiding abetting on or about May 29, 2013. The investigation of this bank robbery is being conducted by the Ossian Police Department, the FBI Fort Wayne Safe Streets Task Force, and the FBI Northeast Indiana Federal Bank Robbery Task Force. Both task forces are comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The Bureau of Alcohol, Tobacco, Firearms, and Explosives is also part of the Northeast Indiana Federal Bank Robbery Task Force. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley Miller Lowery.
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.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.