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27 August 2013
Seven Indicted for Fraudulent BP Oil Spill ClaimsRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Charles C. Martin, 40, and Joseph B. Doyon, 43, of Pace, Florida, and Marquis R. Seals, 34, and Bernard Cook, 39, of Pensacola, Florida, have appeared in federal court on an indictment for mail fraud and false claims related to the BP oil spill.
Martin, Doyon, Seals, Cook, and Johnny R. Smith, 29, of Pensacola, were indicted by the federal grand jury sitting in Pensacola and charged with mail fraud for submitting fraudulent claims to the Gulf Coast Claims Facility (“GCCF”) for lost income due to the 2010 BP oil spill. According to the indictment, all five falsely inflated their reported income as employees of Hooters of Pensacola Beach in their GCCF claims, submitting fraudulent documentation authored and provided by either Martin or Seals. Additionally, the indictment charges Martin and Tremayne C. Jamison, 42, of Atlanta, Georgia, with filing a false claim with the National Pollution Funds Center of the United States Coast Guard alleging that Jamison lost money when a contract between his company and Hooters of Pensacola Beach was cancelled due to the oil spill, when actually no such contract existed. Trial is set for October 7, 2013, before Senior U.S. District Court Judge Lacey Collier.
U.S. Attorney Marsh also announced that Sean D. Croft, 31, of Pensacola, appeared in federal court yesterday on a separate indictment charging him with mail fraud for submitting a false claim to GCCF. According to that indictment, Croft falsely alleged he was let go from his job at Hooters of Pensacola Beach due to the oil spill because he actually worked at the Hooters restaurant located at Bayou Boulevard and Ninth Avenue in Pensacola, not the restaurant located on the beach, and did not lose his job because of the oil spill. Croft’s trial is set for October 21, 2013, before Senior U.S. District Court Judge Roger Vinson.
These charges result from an investigation by the United States Secret Service. The cases are being prosecuted by Assistant U.S. Attorney Alicia Kim.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
Rochester Man Pleads Guilty to TheftRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced that Jeremy Lieberman, 34, of Rochester, N.Y., pleaded guilty before U.S. District Court Judge Charles J. Siragusa to theft while working as a Postal Employee. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Lieberman stole diamonds and other valuables while he was employed by the United States Postal Service as a mail handler at the Rochester Logistics and Distribution Center. Between January 2013 and May 2013, the defendant Lieberman abused his position to steal approximately $128,000 worth of diamonds, coins, gold, jewelry and other items.
The plea is the culmination of an investigation on the part of Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Robert Lapina.
Sentencing is scheduled for December 4, 2013 at 3:30 p.m. before Judge Siragusa.Pennsylvania Man Pleads Guilty in Massachusetts to Hacking into Multiple Computer NetworksRead the Press Release
A Pennsylvania man pleaded guilty today to charges stemming from his participation in a scheme to hack into computer networks and sell access to those networks.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts.
Andrew James Miller, 23, of Devon, Penn., pleaded guilty before U.S. District Judge Mark Wolf in the District of Massachusetts to one count of conspiracy and two counts of computer intrusion.
According to court documents, from 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers. According to court documents, Miller obtained log-in credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other log-in credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks.
Judge Wolf scheduled sentencing for Nov. 19, 2013. The maximum penalty for the conspiracy count is five years in prison. One of the computer intrusion counts carries a maximum penalty of five years in prison and the other, involving intentional damage to a protected computer, carries a maximum penalty of 10 years in prison.
The case was investigated by the FBI. It is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts.
Pennsylvania Man Pleads Guilty to Hacking into Multiple Computer NetworksRead the Press Release
BOSTON – A Pennsylvania man pleaded guilty today to charges stemming from his participation in a scheme to hack into computer networks and sell access to those networks.
Andrew James Miller, 23, of Devon, Penn., pleaded guilty before U.S. District Judge Mark Wolf to one count of conspiracy and two counts of computer intrusion.
From 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers. Miller obtained log-in credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other log-in credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks.
Sentencing is scheduled for November 19 at 3 p.m. The maximum penalty for conspiracy is five years in prison. One of the computer intrusion counts carries a maximum penalty of five years in prison and the other, involving intentional damage to a private computer, carries a maximum penalty of 10 years in prison.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today.
The case is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz’s Cybercrimes Unit and Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section.
Owners of Chinese Restaurants in Rio Rancho and Santa Fe Charged with Harboring Illegal AliensRead the Press Release
ALBUQUERQUE – Wen Ping Chen, 28, and his brother Wen Qiu Chen, 30, made their initial appearances in federal court this morning on criminal complaints charging them with conspiracy and harboring illegal aliens. Ping Chen and Qiu Chen, both naturalized U.S. Citizens born in China, remain in custody pending detention hearings which are scheduled for tomorrow.
The brothers were arrested yesterday afternoon by Homeland Security Investigations (HSI) agents following an investigation into allegations that they were harboring illegal aliens who worked at their restaurants, the Double Dragon Restaurant in Rio Rancho, N.M., which is owned and operated by Ping Chen, and the Double Dragon II, in Santa Fe, N.M., which is owned and operated by Qiu Chen.
According to court filings, in Oct. 2012, HSI agents executed search warrants at the Double Dragon and a Rio Rancho residence owned by Ping Chen and Qiu Chen. The agents allegedly found three illegal aliens at the Double Dragon and another illegal alien in the residence, which served as the residence for all four aliens. All four illegal aliens allegedly worked for Ping Chen at the Double Dragon without authorization.
In May 2013, HSI agents executed search warrants at the Double Dragon II and a Santa Fe residence owned by Qiu Chen, and allegedly found five illegal aliens at the Double Dragon II. The agents allegedly learned that all of the Double Dragon II employees resided in the Santa Fe residence owned by Qiu Chen. The five illegal aliens allegedly worked for Qiu Chen at the Double Dragon II without authorization.
If convicted on the conspiracy charge, Ping Chen and Qiu Chen each face a maximum penalty of five years in prison. If convicted on the harboring charge, each man faces a maximum of ten years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
These cases were investigated by the Albuquerque office of HSI and are being prosecuted by Assistant U.S. Attorney Norman Cairns.Operator of Venetian Resort in Las Vegas Agrees to Return over $47 Million After Receiving Money Under Suspicious CircumstancesRead the Press Release
Las Vegas Sands Corp. to Avoid Criminal Prosecution after Cooperating and Agreeing to Continue to Strengthen Internal Compliance Programs
LOS ANGELES – The Las Vegas Sands Corp., which operates the Venetian-Palazzo hotel complex in Las Vegas, has agreed to return $47,400,300 to conclude an investigation into the casino’s failure to alert authorities that a high-stakes gambler, who was later linked to international drug trafficking, made numerous large and suspicious deposits with the casino.
Pursuant to an agreement signed by officials with Las Vegas Sands last night, the company will return the money to the United States within 10 days. In exchange, federal prosecutors have agreed not to prosecute the casino for failing to file Suspicious Activity Reports for casinos (SARCs), which are required when a customer is involved in a transaction the casino knows, suspects, or has reason to suspect “had no business or apparent lawful purpose or was not the sort in which the particular customer would normally be expected to engage, and the casino knew of no reasonable explanation for the transaction after examining the available facts.” The Bank Secrecy Act requires casinos with annual revenue of at least $1 million to file SARCs, which are then analyzed by appropriate government agencies to investigate possible violations of the law.
The United States Attorney’s Office agreed to conclude a criminal investigation and not seek an indictment after Las Vegas Sands agreed to return the money and after prosecutors determined that the casino completely cooperated with the investigation – which included making full disclosures related to its conduct and failure to comply with federal law, as well as conducting a thorough internal investigation – and that the casino has made extensive efforts to enhance its internal compliance program.
“What happens in Vegas no longer stays in Vegas,” said United States Attorney André Birotte Jr. “For the first time, a casino has faced the very real possibility of a federal criminal case for failing to properly report suspicious funds received from a gambler. This is also the first time a casino has agreed to return those funds to the government. All companies, especially casinos, are now on notice that America’s anti-money laundering laws apply to all people and every corporation, even if that company risks losing its most profitable customer.”
The money being paid the United States represents money sent to the Venetian casino by or on behalf of Zhenli Ye Gon, who at the end of 2006 or early 2007 was “the largest all-cash, up-front gambler the Venetian-Palazzo had ever had to that point,” according to the non-prosecution agreement. In March 2007, Ye Gon’s residence in Mexico City was searched by law enforcement authorities, who seized approximately $207 million in United States currency from the residence in what remains the largest-ever seizure of currency by law enforcement.
Ye Gon was indicted by federal officials in the District of Columbia on narcotics charges, but that case was dismissed in 2009. Ye Gon is currently pending extradition to Mexico, which has charged him with drug trafficking offenses.
According to the agreement, prosecutors believe that in October 2006, prior to Ye Gon being publicly linked to drug trafficking as a result of the search of his residence, officials at the Venetian-Palazzo, should have identified as “suspicious” Ye Gon’s financial transactions, which included the wire transfer of approximately $45 million and depositing of approximately $13 million in cashier’s checks between February 2005 and continuing through March 2007. Casino officials should have filed one or more SARCs against Ye Gon in addition to a SARC it filed in April 2007, prosecutors contend.
For its part, the Las Vegas Sands, while unaware of Ye Gon’s alleged criminal activities prior to March 2007, acknowledges that “in hindsight...the Venetian-Palazzo failed to fully appreciate the suspicious nature of the information or lack thereof pertaining to Ye Gon in the context of the Venetian’s evaluation of whether to file additional SARCs against him earlier and in retrospect should have filed SARCs earlier, and should have filed a more complete SARC when it did file one.”
During his patronage at the Venetian, Ye Gon wire transferred money to the Las Vegas Sands Corp. and subsidiary companies from two different banks and seven different Mexican money exchange houses known as casas de cambios. The wire transfer originators included several companies and individuals the Las Vegas Sands Corp. could not link to Ye Gon. Ye Gon also transferred some funds from Mexican casas de cambios to a Las Vegas Sands Corp. subsidiary in Hong Kong for transfer to Las Vegas. In many instances, Ye Gon’s wire transfers lacked sufficient information to identify him as the beneficiary. The Las Vegas Sands also allowed Ye Gon to transfer funds several times to an account that did not identify its association with the Venetian, specifically an aviation account used to pay pilots operating the company’s aircraft. During its investigation, the government developed evidence that “when casino personnel asked Ye Gon to wire the money in larger lump sums, as opposed to breaking it up incrementally, and use consistent listed beneficiaries, Ye Gon stated that he preferred to wire the money incrementally because he did not want the government to know about these transfers.”
Anthony Williams, the Special Agent in Charge of the Drug Enforcement Administration in Los Angeles, stated: “Millions of dollars earned from illegal drug trafficking were transferred through casino accounts in a complex scheme designed to thwart law enforcement detection. The DEA will continue to work with our partners to pursue all means to deny criminals the profits they work so hard to conceal.”
Federal prosecutors also believe that compliance personnel at the Venetian-Palazzo: failed to adequately investigate Ye Gon, his respective companies, or his source of funds;
failed to conduct an appropriate deposit-pattern analysis of incoming front money deposits and marker payments by Ye Gon;
failed to understand and appreciate the layered manner in which Ye Gon wire transferred his funds;
failed to be appropriately suspicious of Ye Gon’s use of multiple third-party fund sources and multiple casas de cambios;
failed to be appropriately suspicious of the Venetian’s inability to link Ye Gon to nearly all of the companies he professed to own and/or control which originated wire transfers to the Venetian;
failed to be appropriately suspicious of Ye Gon making multiple wire transfers on the same day or consecutive days;
failed to be appropriately suspicious of Ye Gon originating payments in Mexico and routing them through the Venetian’s Hong Kong subsidiaries for final credit at the Venetian casino in Las Vegas; and
failed to conduct appropriate diligence into the reason for requests to use a non-casino-name account.
Release No. 13-110
Omaha Man Sentenced for Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that Jesus Acosta Robles, 49, of Omaha, Nebraska, was sentenced in federal court in Omaha for Bank Robbery. The Honorable Joseph F. Bataillon sentenced Robles to 63 months in prison. There is no parole in the federal system. After his release from prison, Robles will begin a three year term of supervised release.
On August 13, 2012, Robles robbed the Wells Fargo Bank, located at 4650 South 24th Street, Omaha, Nebraska. During the robbery, Robles took from Wells Fargo Bank an amount totaling approximately $297.00. Omaha Police responded to the robbery, at which time responding officers located Robles hiding in bushes approximately 1-2 blocks from the Wells Fargo Bank.
This case was investigated by the Omaha Police Department.
Oklahoma Man Pleads Guilty to Firearm OffenseRead the Press Release
On August 26, 2013, Jervares D. Davis, a 24-year old Norman, Oklahoma, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis is scheduled for sentencing on December 4, 2013, at which time he faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100. Davis also agreed to forfeit the firearm.
Court proceedings revealed that on or about May 10, 2013, a law enforcement officer in Collinsville, Illinois, pulled over a vehicle, in which Davis was a passenger, for a traffic violation. During the stop, the officer noticed an unusually large amount of air fresheners in the vehicle. He observed that Davis and the driver of the vehicle were acting particularly nervous while being questioned, and both gave conflicting stories about their destination. Shortly thereafter, a Metro East Drug Task Force officer, traveling with a drug dog, stopped on the scene after passing by and seeing the flashing lights. Due to the number of air fresheners, overly nervous behavior and inconsistent stories of the individuals inside the car, the officers decided to let the dog do a sniff. The dog alerted the officers to the presence of narcotics in the car. The officers searched the vehicle and recovered cannabis, loose ammunition and a handgun hidden underneath the hood of the car. Davis admitted to purchasing the firearm in Oklahoma. A check of the firearm revealed that it was reported stolen out of Norman, Oklahoma. Davis has a previous felony conviction in Oklahoma.
This case was investigated by the Metro East Task Force and the Collinsville Police Department, and assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
Norristown Man Sentenced to 22 Years for Robbing Tavern and Its EmployeeRead the Press Release
PHILADELPHIA - Marc Viney, 35, of Norristown, was sentenced today to 264 months in prison for robbing an employee of the Roo House Tavern in Norristown and then robbing the tavern. Viney was convicted on January 31, 2013, following a four day trial, of robbery, criminal conspiracy to commit robbery, and possession of a firearm in furtherance of a violent crime.
On July 10, 2011, Viney followed home an employee of the Roo House Tavern, after the employee closed the bar for the night. At the victim's apartment, Viney confronted the victim, bound, gagged, blindfolded, and assaulted him, while holding him at gunpoint. Viney then stole money and a laptop from the victim’s home. Viney then forced the victim to go back to Roo House Tavern, where Viney stole several thousand dollars in proceeds from the Tavern.
In addition to the prison term, seven years of which is mandatory, U.S. District Court Judge Mary McLaughlin ordered restitution to the victims in the amount of $3,537 and five years of supervised release.
The case was investigated by the FBI, the Montgomery County Detective Bureau and members of the Norristown Police Department. It was prosecuted by Special Assistant United States Attorney Rebecca W. Strubel.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Norfolk Man Sentenced to 188 Months in Prison on Cocaine ChargeRead the Press Release
NORFOLK, Va. – Keith Jermaine Everett, 34, of Norfolk, Virginia, was sentenced today to 188 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after sentencing by United States District Judge Mark S. Davis.
Everett waived indictment and pleaded guilty to a criminal informationon May 29, 2013. The criminal information charged him with conspiracy to distribute and possess with intent to distribute 500 grams or more cocaine. According to court documents, Everett distributed cocaine and marijuana on a regular basis in Norfolk and surrounding cities. On December 18, 2012, a controlled purchase of cocaine was conducted by law enforcement from Everett at a location on North Military Highway in Norfolk.
This case was investigated by the Norfolk Field office of the Federal Bureau of Investigation and the Norfolk Police Department. Assistant United States Attorney Sherrie S. Capotosto prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Nigerian Court Orders Alleged AQAP Operative Extradited to the Us W/I 15 Days to Face Indictment Charging Terrorism OffensesRead the Press Release
Nigerian Court Orders Alleged AQAP Operative Extradited To The Us W/I 15 Days To Face Indictment Charging Terrorism Offenses
Niagara Falls Man Sentenced on Gun and Witness Tampering ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Rodriguez Brown, 37, of Niagara Falls, N.Y., who was convicted of being a felon in possession of a firearm and witness tampering while on court supervision, was sentenced to 33 months in prison by U.S. District Chief Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between 2009 and 2010, Brown sold crack cocaine in the City of Niagara Falls. In May 2010, Niagara Falls Police officers executed a search at the defendant’s residence on
The sentencing is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derneda.
77th Street and recovered a loaded shotgun and ammunition. Brown was indicted on charges of being a felon in possession of a firearm and related drug offenses in August of 2010. In April 2012, with federal charges pending, Brown attempted to bribe a witness in the case and was charged additionally with witness tampering.Newark Man Charged with Producing Child Pornography for Recording His Sexual Abuse of GirlRead the Press Release
NEWARK, N.J. – A Newark man is expected to make his initial court appearance today on charges of sexual exploitation of a prepubescent girl after allegedly abusing her repeatedly and filming the abuse, U.S. Attorney Paul J. Fishman announced.
Pedro Rios, 57, is charged by complaint with two counts of sexual exploitation of a child. He is currently in state custody on related charges and is scheduled to appear in Newark federal court today before U.S. Magistrate Judge Steven C. Mannion.
According to the complaint:
Law enforcement officers executed a search warrant at Rios’s home in Newark on Feb. 5, 2013. A forensic review of the computer equipment seized revealed several video files of child pornography which appear to be self-produced and allegedly depict Rios on camera engaging in sexually explicit conduct with a prepubescent female in the rear of a cab of a tractor trailer truck.
Law enforcement officers identified and interviewed a female, who allegedly said Rios would periodically drive her to his tractor trailer truck in Union County, N.J., where he would undress her and have sexual contact and sexual relations with her and record the encounters. Rios allegedly threatened to hurt the victim’s family if she told anyone.
Each charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the N.J. Regional Computer Forensics Laboratory with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-346
Defense counsel: Brian J. Neary Esq., Hackensack, N.J.
Rios Complaint
Mobile Doctors’ Chicago CEO and Doctor Arrested on Federal Health Care Fraud Charges; Offices Searched in Three CitiesRead the Press Release
CHICAGO — The chief executive officer of Chicago-based Mobile Doctors, which manages physicians who make house calls in six states, and one of its physicians in Chicago were arrested today on federal health care fraud charges. At the same time, federal agents executed search warrants at Mobile Doctors’ offices in Chicago, Detroit, and Indianapolis, as well as warrants to seize up to $2.568 million in alleged fraud proceeds from various bank accounts. The charges allege a scheme to fraudulently increase (also known as “upcoding”) Medicare bills for in-home patient visits that Mobile Doctors falsely claimed were more complicated and longer than they actually were. The charges also allege that Mobile Doctors’ physicians falsely certified that patients were confined to their homes, enabling home health care agencies to claim fees for additional services for patients who were not actually qualified to receive them.
Agents from the FBI, the U.S. Department of Health and Human Services Office of Inspector General, and other law enforcement agencies executed the arrest, search, and seizure warrants in connection with the charges and also a broader ongoing investigation that includes allegedly illegal billing practices for medically unnecessary tests and services not performed by a physician.
Arrested were DIKE AJIRI, 42, of Wilmette, CEO of Mobile Doctors, which he has effectively owned since 1996, and BANIO KOROMA, 63, of Tinley Park, a physician who has worked for Mobile Doctors since approximately 2007. Mobile Doctors, located at 3319 N. Elston Ave., in Chicago, arranges patient home visits and contracts with doctors who perform the visits. The physicians assign their rights to bill and collect payment to Mobile Doctors, in return for being paid directly by the company. Mobile Doctors’ website claims that its associated physicians have made more than 500,000 house calls since its inception. In addition to Chicago, the company has branches in Detroit and Flint, Mich., San Antonio and Austin, Tex., Indianapolis, Kansas City, Phoenix, and St. Louis.
Ajiri was charged with health care fraud and Koroma was charged with making false statements relating to health care benefits in a criminal complaint that was filed yesterday and unsealed today after the arrests. Both were scheduled to appear at 3 p.m. today before U.S. Magistrate Judge Mary Rowland in U.S. District Court.
The arrests and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in- Charge of the Chicago Regional Office of the HHS-OIG. The Railroad Retirement Board Office of Inspector General is also participating in the investigation.
According to a 75-page affidavit in support of the arrest, search and seizure warrants, agents have interviewed several current and more than 25 former employees of Mobile Doctors, including some who reported allegedly fraudulent billing practices to Medicare before they were contacted by agents. Investigators have also reviewed emails and documents, claims data, patient files, and have conducted interviews with patients of Mobile Doctors and their primarycare physicians, whose statements contradict Mobile Doctors’ billing and patient records.
Mobile Doctors physicians do not perform tests such as echocardiograms, but do order such tests, which are done on Mobile Doctors’ patients by employees of In Home Diagnostics, doing business as Ultrasound2You. According to Medicare records, Ajiri is a minority partner in In Home Diagnostics, which is located in the same building as Mobile Doctors, and Mobile Doctors bills the echocardiograms so that they appear to have been done by Mobile Doctors’ physicians.
The complaint affidavit states that Ajiri signed a personal financial statement on Dec. 31, 2012, stating that he received $1.5 million in annual partnership income from a corporate entity, Mobile Doctors LLC, which has a complex ownership structure involving Ajiri and over time, one or both of his parents. Between 2008 and January 2013, bank records show that approximately $4.365 million was transferred from Mobile Doctors to an account in the name of Ajiri and his wife.
Upcoding patient visits
According to interviews with former and current Mobile Doctors physicians, branch managers, clinical coordinators, employees and patients, a typical visit that a Mobile Doctors physician has with an established patient lasts 10 to 30 minutes and is routine in nature. In contrast to those interviews, claims data shows that from 2006 through February 2013, approximately 99 percent of all established-patient visits by Mobile Doctors physicians were billed to Medicare using either of the two highest codes indicating the visits involved medical decision-making of moderate to high complexity, detailed or comprehensive interval histories or medical examinations, and/or visits that typically last at least 40 minutes.
In 2009 in Chicago, the local Medicare fee for a visit using the second-highest home visit code was approximately $122.82, while the fee for the highest code was approximately $171.25. According to a review of claims data for Railroad Retirement Board patients, every single established-patient visit Mobile Doctors billed to Medicare between January 2007 and June 2008 used the highest fee code. Between January 2007 and November 2012, approximately 93 percent of such visits were billed using the highest fee code.
The former manager of Mobile Doctors’ Chicago branch until she was terminated in 2008 told agents that Ajiri told her that the second-highest fee code was the default code for a patient visit so that it would be worth the gas and time spent. The manager said Ajiri told physicians, “I don’t pay for ones or twos,” referring to the two lower of the four applicable fee codes. At the end of one day, she said she saw Ajiri in his office “automatically” altering the billing codes and marking visits at the highest fee level on patient records submitted by physicians and assistants who accompanied them on home visits. A physician told agents that in late 2007, Ajiri did not respond to his concerns about Mobile Doctors’ billing practices and instead told the doctor that he could earn more money if he would order more tests such as electrocardiograms, according to the affidavit.
The complaint alleges that the vast majority of payments made on established-patient visit claims using the highest fee code were the result of fraudulent upcoding. From 2006 through 2012, Mobile Doctors received approximately $21.4 million in payments on claims using the second-highest code, and approximately $12.6 million in Medicare payments on claims using the highest fee code.
Falsely certifying patients as confined to their homes
The charges further allege that Mobile Doctors physicians, including Koroma, falsely certified patients as confined to their homes and requiring home health services when they were not home-bound and did not require such care. By referring patients to home health agencies that did not warrant Medicare payments, Mobile Doctors received more referrals from those agencies for services provided by its physicians. According to Medicare data, from August 2010 through July 2013, more than 200 home health agencies submitted Medicare claims for services allegedly rendered to patients for whom Koroma was identified as the referring physician. These home health agencies have been paid more than $10 million for services listing Koroma as the referring physician.
Between January 2006 and March 2013, Mobile Doctors physicians have certified or recertified for 60-day periods approximately 15,598 patients as confined to their homes and requiring home health services a total of approximately 83,133 times, many of which were allegedly false. Approximately 6,057 of these certifications were attributed since August 2007 to Koroma, with Mobile Doctors billing Medicare for approximately 17,439 patient visits he made during that time, more than any other Mobile Doctors physician.
The health care fraud count against Ajiri carries a maximum penalty of 10 years in prison and a $250,000 fine and restitution is mandatory. The false statements count against Koroma carries a maximum of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Stephen C. Lee and Catherine Dick, assistant chief in the Fraud Section of the Justice Department’s Criminal Division. The U.S. Attorney’s Offices in Detroit, Indianapolis, and Phoenix also have assisted in the investigation.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Scores of defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: StopMedicareFraud.gov.
Complaint
Mexican National Convicted of Illegal Re-entry Despite Fraudulently Obtaining Texas Birth CertificateRead the Press Release
McALLEN, Texas - A federal jury in McAllen has convicted Mexican National Felipe Oviedo-Cerda, aka Felipe Telles-Sanchez or Mario Trevino-Leal, 55, on one count of illegally re-entering the country, United States Attorney Kenneth Magidson announced today. The verdict was returned following a two-day trial and approximately two hours of deliberations.
During trial, the government presented documentary evidence and witness testimony illustrating Oviedo-Cerda’s unlawful entry despite being an aggravated felon. Since his first deportation in 1984, the evidence showed he had relied upon numerous aliases and other false information to avoid detection by law enforcement and immigration authorities.
In 2002 and while in federal custody pending a similar indictment, Oviedo-Cerda fraudulently obtained a delayed birth certificate from the State of Texas reflecting that he was born in Rio Grande City in 1958. The Department of Vital Statistics later flagged this document only to re-issue the birth certificate in 2008 to him after had been released from federal prison, deported and provided additional false documentation. The evidence at trial indicated Oviedo-Cerda had resided in the United States since 2008 by relying upon this birth certificate and other false documents.
At trial, the government also relied upon expert fingerprint testimony to connect Oviedo-Cerda to his long history of aliases and false identities. Other witnesses with personal knowledge of the defendant testified that despite his birth in Zacatecas, Mexico, Oviedo-Cerda used forged, altered and fraudulent documents to obtain the delayed birth certificate under the name Felipe Telles. Based upon this evidence, the Texas Department of Vital Statistics has again flagged this birth certificate.
The defense attempted to convince the jury that the Texas delayed birth certificate proved he was born in Rio Grande City and/or proved the valid birth certificate at least gave him status to be in the country when apprehended. The jury disagreed and found him guilty as charged.
Chief U.S. District Judge Ricardo H. Hinojosa, who presided over the trial, has set sentencing for Nov. 25, 2013, at which time he faces up to 20 years imprisonment. Oviedo-Cerda has been in custody since his arrest Sept. 23, 2011, where he will remain pending sentencing.
This case was investigated by Border Patrol and is being prosecuted by Assistant United States Attorney Grady J. Leupold.
Member of Al-Qaeda in the Arabian Peninsula, Al-Qaeda’s Yemeni Affiliate, Indicted in Brooklyn Federal CourtRead the Press Release
An indictment was unsealed today in federal court in Brooklyn, New York, charging a Nigerian citizen with providing material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula (“AQAP”), and using high-powered firearms in furtherance of that crime. The United States is currently seeking the extradition of the defendant, Lawal Olaniyi Babafemi, also known as “Abdullah” and “Ayatollah Mustapha,” from Nigeria.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Acting Assistant Attorney General, National Security Division; and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office. United States Attorney Lynch acknowledged the continued cooperation and assistance of the government of Nigeria in terrorism matters affecting both nations.
According to court documents, between approximately January 2010 and August 2011, the defendant traveled twice from Nigeria to Yemen to meet and train with leaders of AQAP, the Yemen-based branch of al-Qaeda. Babafemi assisted in AQAP’s English-language media operations, which include the publication of the magazine “Inspire.” At the direction of the now-deceased senior AQAP commander Anwar al-Aulaqi, Babafemi was provided by AQAP leadership with the equivalent of almost $9,000 in cash to recruit other English-speakers from Nigeria to join that group. While in Yemen, Babafemi also received weapons training from AQAP.
On February 21, 2013, a grand jury in the Eastern District of New York returned a sealed indictment charging the defendant with one count of conspiracy to provide material support to AQAP, in violation of Title 18, United States Code, Section 2339B; one count of providing and attempting to provide material support to AQAP, in violation of Title 18, United States Code, Section 2339B; one count of unlawful use of machineguns, in violation of Title 18, United States Code, Section 924(c); and one count of conspiracy to unlawfully use machineguns, in violation of Title 18, United States Code, Section 924(o). At the request of the United States, the Nigerian government thereafter commenced extradition proceedings against the defendant in July 2013.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. The case is assigned to the United States District Judge John Gleeson in the Eastern District of New York.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad and Hilary Jager, with assistance from Trial Attorney William M. Narus of the Justice Department’s Counterterrorism Section and Trial Attorney Timothy Hammer of the Justice Department’s Office of International Affairs.
The Defendants
LAWAL OLANIYI BABAFEMI
Age: 33MRI Diagnostic Testing Company, Imagimed LLC, and Its Former Owners <br /> and Chief Radiologist to Pay $3.57 Million to Resolve False Claims Act AllegationsRead the Press Release
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, the Justice Department announced today. 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.
Local Man Pleads Guilty to Faking Military Service and Conducting Phony Raffle to Aid VeteransRead the Press Release
St. Louis, MO – MATTHEW BUCKINGHAM posted an advertisement on Craigslist, in January 2013, indicating he was involved with a veterans charity identified as "Veterans Aid From All Foreign Wars." The advertisement indicated the charity was designed to "help wounded warriors" and "sell raffle tickets [to aid] war veterans." Through the advertisement, Buckingham solicited individuals to help him promote his charitable events and he provided a contact number.
According to court documents, in his advertisement he stated that he planned to hold a raffle on July 4, 2013. Tickets would cost $5 each and he identified raffle awards of "First Prize: $3,000; Second Prize: $2,000; and Third Prize: $1,000" Through the advertisement, Buckingham solicited individuals to help him promote his charitable events and he provided a contact number. Subsequently, a number of female individuals in the St. Louis area inquired and responded.
Buckingham arranged to meet the individuals who responded at various restaurants and bars in the St. Louis area and introduced himself as "Tyler Matthews." He had individuals complete employment applications or other documents indicating their desire to aid and assist him in his charitable activities. Matthews/Buckingham showed applicants a binder with various documents that purportedly indicated he was affiliated with the military and other documents that appeared to legitimize his charitable activities. Commonly, during conversations with prospective applicants, he claimed to be employed by various agencies or Departments of the United States, including that he served in the military in Afghanistan and Iraq; he was a Marine and had been injured during the war; he worked as a military officer and a sniper; since his return to the United States from overseas, he worked with the Department of Homeland Security and the United States Coast Guard; and, he presently worked in north St. Louis in various positions including "undercover" work infiltrating gangs and otherwise combating crime.He told them they would earn $10 per hour, or half the amount of money they collected from ticket sales. In January and February 2013, he recruited approximately five to ten associates to assist him in selling "raffle" tickets at various bar locations in the St. louis area. At the end of each evening, associates gave Matthews/Buckingham the proceeds from the sales which he used to pay various expenses such as gas for transportation to the various restaurants and bar locations; paraphernalia for the individuals; and "fees" or earnings that he paid the associates who assisted him. No money remained after covering the various costs.
Ultimately, Buckingham did not hold a raffle on July 4, 2013 and he distributed no money from the ticket sales to wounded or homeless soldiers, veterans, or other military personnel. The defendant was not, and has never been, employed by the Department of Defense or the Department of Homeland Security. Similarly, he never served in the United States military or the United States Coast Guard. He never held a position that permitted him the authority to conduct criminal investigations or arrest individuals. As such, his previously detailed representations that he was an agent or employee of a Department or Agency of the United States were false and the defendant knew they were false.
"For more than two hundred years, brave Americans have heeded the call to serve their country. We honor them for their loyal and dedicated service. It disheartens me that this individual falsely represented himself as war veteran and a current member of the Coast Guard and Department of Homeland Security in order to garner support for his raffle scheme. I applaud the efforts of the Coast Guard Investigative Service and the Department of Justice in bringing this case to fruition. I also appreciate KMOV-TV for bringing this case to our attention," said Rear Admiral Kevin Cook, Eighth Coast Guard District Commander.
Buckingham, St. Louis County, pled guilty to one felony count of impersonating a federal agent before United States District Judge Henry Autrey. Sentencing has been set for November 25, 2013.
This charge carries a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Coast Guard Investigative Service and the Missouri Attorney General’s Office. Assistant United States Attorney Matthew Drake is handling the case for the U.S. Attorney’s Office.
Local Defense Attorney and Other Individual Arrested for Money LaunderingRead the Press Release
SAN JUAN, P.R. – On August 23, 2013, a Federal grand jury returned an indictment against attorney Ramón M. Negrón-Colón, aka “Monchito,” and William Barreto-Ortiz, aka “Willie,” for conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Federal Bureau of Investigations (FBI) and Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI).
Ramón M. Negrón-Colón is an attorney licensed to practice law in Puerto Rico. Negrón-Colón has represented José D. Figueroa-Agosto, aka “Junior Càpsula,” in judicial proceedings in Commonwealth courts. Defendant William Barreto-Ortiz is a self-employed legal broker operating mainly in Bayamón, Puerto Rico. During the Fall of 1995, Figueroa-Agosto was convicted and sentenced to a prison term of 208 years in the Court of First Instance, San Juan, Puerto Rico. On November of 1999,Figueroa-Agosto utilized false documents to escape from a Commonwealth of Puerto Rico correctional facility. He remained a fugitive for over a decade until he was arrested on federal drug trafficking charges on July 18, 2010.
The indictment alleges that the object of the conspiracy was to nullify Figueroa-Agosto’s 208-year Commonwealth of Puerto Rico imprisonment term through illegal payments made with the proceeds of Figueroa-Agosto’s narcotics trafficking.
The indictment further alleges that beginning on a date unknown, but not later than 2007, until on or about the return of the Indictment, in the Districts of Puerto Rico and New York, and in the Dominican Republic, Negrón-Colón and Barreto-Ortiz knowingly conducted and attempted to conduct financial transactions affecting interstate commerce, which transactions involved the proceeds of specified unlawful activity, that is, drug trafficking.
In late 2007, defendant Negrón-Colón indicated that the total cost of obtaining the nullification of Figueroa Agosto’s conviction and sentence would be between $2,500,000.00 and $3,000,000.00 in order to funnel illegal payments to public officials of the Commonwealth of Puerto Rico. Negrón-Colón received a few payments from individuals known to the Grand Jury in different occasions in order to further the goals of the conspiracy.
Barreto-Ortiz is also facing one charge of making a false statement, for knowingly and willfully lying to the FBI while it was engaged in an official investigation.
“The actions committed by these two defendants and their efforts to set aside a criminal conviction through illegal payments, undermine the public’s trust in the judicial system, which is a cornerstone to our democracy,” said United States Attorney Rosa Emilia Rodríguez-Vélez.
The case is being prosecuted by Assistant U.S. Attorney Timothy Henwood, Chief of the White Collar and General Crimes Unit.
If found guilty, the defendants could face a possible sentence of up to 20 years in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Local Businessman Sentenced for Stealing over $835,000 from His Business InvestorsRead the Press Release
ATLANTA - Kevin Patrick Loughery, co-founder of the former Atlanta-area startup, Geometrix, has been sentenced for defrauding Geometrix’s investors by using approximately $835,000 in the investors’ funds for himself.
“The defendant had a duty to keep the investor funds secure in an escrow account and to use them for the benefit of Geometrix. Instead, he used the money to support his lavish lifestyle,” stated United States Attorney Sally Quillian Yates. “The prosecution of this case and today’s sentence reflects our ongoing commitment protect the public from individuals who offer seemingly attractive investment opportunities, when they only intend to enrich themselves at the expense of others.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Loughery will hopefully provide some sense of justice to those victim investors who now suffer substantial financial losses at the hands of Mr. Loughery’s greed. The FBI will continue to identify, investigate, and prosecute individuals such as Mr. Loughery who divert investor-based funds into their own bank accounts.”
According to United States Attorney Yates, the charges and other information presented in court: In 2008, Kevin Patrick Loughery began soliciting investments from his friends and business associates in Geometrix, a Georgia start-up company that he co-founded in 2007. Loughery assured investors both telephonically and via email that their investment would remain in escrow until the completion of Geometrix’s issuance of stock and accompanying documentation.
In an email to one such investor, Loughery assured the investor that the money would be kept in an escrow account, and Loughery instructed the investor to wire the money into such an account. However, the money never went to an escrow account because Loughery’s wiring instruction was not for an escrow account, but rather was for Loughery’s own account for a separate business, KLM Investments, of which Loughery was the sole proprietor. The investor wired over $300,000 into the account. Loughery then sent the investor an email stating that he would receive 400,000 shares of Geometrix for his investment, which the investor never received. In total, Loughery solicited $835,000 in investments from various investors that were supposed to be kept in escrow but instead were spent by Loughery. Loughery subsequently declared bankruptcy.Loughery, 49, of Atlanta, Ga., was sentenced to two years, six months in prison. He was also ordered to serve three years on supervised release following his prison term and to pay $780,000 in restitution to the victims of his fraud. On March 22, 2013, Loughery pleaded guilty to a Criminal Information charging him with wire fraud.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Karlyn J. Hunter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Leader of St. Mary’s County Cocaine Distribution Ring Sentenced to over 14 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Brian Deandre Bush, age 43, of Hollywood, Maryland, today to 140 month in prison followed by five years of supervised release for conspiracy to distribute, and possess with intent to distribute, cocaine and crack cocaine in St. Mary’s County, Maryland. Bush was also sentenced to 37 months in prison, for violating his supervised release from a 2007 drug conviction, which Judge Williams ordered to be served consecutive to the sentence imposed today.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder, of the Drug Enforcement Administration - Washington Field Division; and St. Mary’s County Sheriff Tim Cameron.
According to Bush’s guilty plea, from November 2010 through July 15, 2011, Bush conspired with his son, Demetrius Deandre Young, Kerry Alexander Bond, Sr., John Larry Dickerson, Marcus Tyrek Chase, William Lamont Young, Alexander Sternack, Wayne Marcelle Mills and others to distribute cocaine in St. Mary’s County, Maryland. Bush and Demetrius Young received cocaine from their sources of supply in Maryland, Georgia, Florida and elsewhere, including cocaine supplied by John Edward Butler, David Butler and Bond. The cocaine was smuggled back to St. Mary’s County where Bush and Demetrius Young supplied Chase, Dickerson and others with powder and crack cocaine for distribution. Law enforcement overheard thousands of cell phone conversations between the defendants, including Bush, relating to their drug activities and the rising prices of cocaine in St. Mary’s County. Bush and Demetrius Young would call and coordinate the delivery of cocaine and payment for the cocaine with John Butler, David Butler, Bond and others. Bush and Demetrius Young would then call Dickerson, Chase, Mills, William Young, Sternack and others to tell them when the cocaine and crack cocaine was ready to be picked up. These individuals met Bush, Young and/or one of their subordinates at locations in St. Mary’s County to obtain cocaine and crack cocaine.
Bush was responsible for the distribution of between five and 15 kilograms of cocaine, and between 280 grams and 840 grams of crack cocaine.
All 10 defendants have pleaded guilty in this case. Kerry Alexander Bond, Sr., age 41, of Leonardtown, Maryland, and Wayne Marcelle Mills, age 45 of Lexington Park, Maryland, are awaiting sentencing. Marcus Tyrek Chase, age 27, of Lexington Park, Maryland, and John Larry Dickerson, age 43, of Waldorf, Maryland, were sentenced to 15 years in prison and 140 months in prison, respectively. Demetrius Deandre Young, age 23, of Hollywood, was sentenced to 75 months in prison; William Lamont Young, age 41, and David Anthony Butler, age 69, both of Leonardtown, were sentenced to two years in prison and 15 months in prison, respectively; and John Edward Butler, age 37, and Alexander Sternack, III, age 38, both of Mechanicville, Maryland, were sentenced to 63 months in prison and 70 months in prison, respectively.United States Attorney Rod J. Rosenstein commended the DEA and St. Mary’s County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James A. Crowell IV, Arun G. Rao and Thomas Sullivan, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Leader in Baltimore Heroin Distribution Ring Sentenced to Life in PrisonRead the Press Release
This Was Roy Clay’s Third Felony Drug Trafficking Conviction
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Roy Lee Clay, age 47, of Baltimore, today to life in prison, for conspiracy to distribute and possess with intent to distribute heroin. Judge Blake enhanced Clay’s sentence based upon two previous drug trafficking convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Clay’s 14 day jury trial, Clay was one of the leaders of a heroin trafficking organization that operated from April 2009 through November 2011. Clay and co-defendant Walter Powell obtained heroin from co-defendant Danilo Garcia. Garcia employed couriers to transport the heroin from New York to Baltimore and to return cash from the drug sales to New York. Evidence presented at trial included calls on March 6 and March 7, 2011, in which Clay and Garcia discuss a courier coming to Baltimore with heroin. On March 8, 201,1 Clay is overheard arranging to pick up the courier at a restaurant near the Baltimore Travel Plaza. Later that day, law enforcement observed Clay meet briefly with the courier near the restaurant. On March 9, 2011, law enforcement intercepted calls in which Garcia contacted Clay to see how heroin sales were progressing.
At trial, evidence also included that on February 17, 2011, individuals broke into Roy Clay’s home in an attempt to rob him. FBI agents testified that they saw Clay and Garcia running from the house while chased by these robbers. One wiretapped call included Clay discussing individuals breaking into his house and that Clay had to struggle with the robbers, at least one of whom had a gun, before Clay could flee the house.
The jury found that Clay was responsible for the distribution of at least one kilogram of heroin.
Walter Powell, age 61, of Baltimore, Maryland, pleaded guilty to the heroin conspiracy and was sentenced to 121 months in prison. Co-conspirator Danilo Garcia, age 43, of Bronx, New York was convicted at trial and sentenced to 188 months in prison for the heroin conspiracy, and for distribution of heroin.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Laboratory Operator Sentenced to 40 Months for Fabricating Industrial Wastewater ResultsRead the Press Release
Tennie White, the owner and operator of an environmental laboratory located in Jackson, Miss., was sentenced in federal court late yesterday to 40 months in prison in connection with her conviction for faking laboratory testing results and lying to federal investigators, announced Gregory K. Davis, U.S. Attorney for the Southern District of Mississippi, and Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
White also was sentenced to three years of supervised release to follow her prison sentence and was ordered to pay a $1,000 fine and a $100 special assessment. White was sentenced by U.S. District Judge Henry T. Wingate at the federal courthouse in Jackson, where he also presided over the May 2013 trial of the case.
“Independent laboratories play a critical role in assisting businesses to accurately monitor and report discharges of industrial pollutants that may adversely affect the environment,” said Acting Assistant Attorney General Dreher. “Businesses cannot fulfill this important responsibility if these laboratories are not honest brokers and falsify test results and monitoring reports. This prosecution shows that fraudulent testing and reporting by laboratories will not be tolerated.”
“Americans expect their public water supply to be clean and safe to use,” said Maureen O’Mara, Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in Mississippi. “In order to safeguard public health it is absolutely essential that governments receive accurate test results and measurements. This case demonstrates that individuals who falsify environmental records and try to mislead the government will be prosecuted and held accountable.”
White, owner, operator and manager of Mississippi Environmental Analytical Laboratories Inc., was found guilty in May 2013 of two false statement counts and one count of obstructing proceedings. Evidence at trial established that White was hired to perform laboratory testing of a manufacturer’s industrial process waste water samples and then to use those results to complete monthly discharge monitoring reports for submission to the Mississippi Department of Environmental Quality. However, for the months October to December 2008, White created discharge monitoring reports (DMRs) that falsely represented that laboratory testing had been performed on samples when, in fact, such testing had not been done. White further created a fictitious laboratory report and presented it to her client for use in preparing another DMR for January 2009. White made false statements to a federal agent during a subsequent criminal investigation.
The case was prosecuted by Trial Attorney Richard J. Powers of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, and Assistant U.S. Attorney Gaines Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi.
Justice Department Sues to Shut Down South Carolina Tax Return PreparerRead the Press Release
The United States has requested the federal district court in Charleston, S.C. to permanently bar Jessica Geddis of Summerville, S.C., from preparing federal income tax returns for others, the Justice Department announced today.
According to the complaint, Geddis prepared federal income tax returns from her home and as a tax preparer at MBM Tax and Accounting Services LLC. The complaint alleges that Geddis prepared returns for herself and others that overstate income by reporting fictitious household help income. Geddis overstated her customers’ income in order to increase the amount of her customers’ refundable tax credits, including the Earned Income Tax Credit, Child Tax Credit and Making Work Pay Credit.
The complaint further alleges that Geddis directed the Internal Revenue Service (IRS) to deposit all, or a portion of, her customers’ overstated refunds into bank accounts that she controls. According to the complaint, the IRS has reviewed Geddis’ bank records and determined that she has received at least 148 fraudulent tax refunds totaling $281,678 between January 2008 and May 2012.
In the past ten years the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department Website at www.justice.gov/tax/taxpress2013.htm.
Related Materials:
United States v. Jessica A. Geddis
Complaint for Permanent Injunction and Other ReliefJustice Department Obtains $22,000 Settlement in Housing Discrimination Lawsuit Against Mt. Washington, KY., LandlordRead the Press Release
The Justice Department announced today that Jerry L. Wilson, a Mt. Washington, Ky., landlord has agreed to pay $22,000 to resolve allegations that he violated the Fair Housing Act by discriminating against African-American apartment seekers and making statements indicating a preference for families without children for certain available apartments.
The lawsuit, filed in the U.S. District Court for the Western District of Kentucky, charges that Wilson and EME LLC, misrepresented the availability of, and refused to negotiate for the rental of, apartments at Treva Court Apartments based on race or color. The lawsuit also alleges that Mr. Wilson made statements indicating a preference for families without children to rent second floor apartments at the complex he operates, located at 272 Treva Court in Mt. Washington. The allegations are based on evidence generated by the department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices.
The consent decree resolving this matter, which is subject to approval by the U.S. District Court, imposes a $22,000 civil penalty against Wilson and EME, LLC. In addition, the consent decree enjoins the defendants from further acts of discrimination and requires Wilson to undergo fair housing training.
“Housing discrimination based on race and against families with children remains a persistent problem.” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of individuals and families to live where they choose free from discrimination.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt .
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 27, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
FRED THEODORE BISHOP, a 59-year-old resident of Lodge Grass, appeared on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. He is currently detained. If convicted of these charges, BISHOP faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on each charge. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Bureau of Indian Affairs.
DEREK DEFOREST RHINEHART, a 31-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. He is currently detained. If convicted of these charges, RHINEHART faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Joseph E. Thaggard is the prosecutor for the United States. The investigation was conducted by the City-County Special Investigations Unit.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 27, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
KERMIT "CASH" MORSETTE, a 32-year-old resident of Box Elder, appeared on a charge of aggravated sexual abuse/aiding and abetting. He is currently detained on special conditions. If convicted of this charge, MORSETTE faces possible penalties of life in prison, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
IRAN MICHAEL KESSELMAN, a resident of Philadelphia, Pennsylvania, appeared on a charge of conspiracy to possess with the intent to distribute methamphetamine. He is currently detained. If convicted of this charge, KESSELMAN faces possible penalties of 20 years in prison, a $1,000,000 fine, and 3 years supervised release. Assistant U.S. Attorney Paulette L. Stewart is the prosecutor for the United States.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment Charges Illegal Removal of AsbestosRead the Press Release
David Mermelstein, 53, of Willow Grove, Pennsylvania, was charged today by Indictment with five counts of illegal removal of asbestos, announced United States Attorney Zane David Memeger. The indictment alleges that from in or about September, 2009 through in or about April, 2010, Mermelstein hired day laborers instead of licensed asbestos contractors to remove asbestos from commercial property he owned at 10175 Northeast Avenue, Philadelphia. The indictment alleges that Mermelstein directed the removal of asbestos by these laborers without safeguards required by federal law.
If convicted, the defendant faces a maximum possible sentence of 25 years imprisonment and a fine of $1.25 million.
The case was investigated by the Environmental Protection Agency (“EPA”) and the City of Philadelphia’s Air Management Services. It is being prosecuted by Assistant United States Attorney Virgil B. Walker and Special Assistant United States Attorney Patricia Miller.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Hualapai Nation Tribal Member Sentenced to Federal Prison for RobberyRead the Press Release
PHOENIX – On Aug. 26, 2013, Lance Buddy Jackson, 27, of Peach Springs, Ariz., and an enrolled member of the Hualapai Nation Indian Tribe, was sentenced by U.S. District Judge Stephen M. McNamee to 42 months in federal prison, followed by a term of three years of supervised release. Jackson pleaded guilty on June 4, 2013 to robbery.
According to court documents, on Oct. 8, 2012, Jackson entered the Hualapai Lodge after midnight wearing dark clothing and a ski mask. Jackson approached the victim, an employee of the Lodge, pulled out what appeared to be a black handgun, but was later determined to be a BB gun, and demanded money from the victim. Jackson was subsequently apprehended based on video surveillance of the robbery.
The investigation in this case was conducted by the Hualapai Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8260-PCT-PGR
RELEASE NUMBER: 2013-069_ (Jackson)For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Hogsett Announces Convictions in Prosecution of Drug Ring Operated from Indiana PrisonsRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the conviction and sentencing of two defendants as part of a prosecution involving 40 individuals across Indiana who allegedly operated a large drug trafficking ring at the direction of inmates within Indiana correctional facilities. In hearings before U.S. District Judge Sarah Evans Barker, defendant Russell Yerden, age 45, was sentenced to 327 months (27 years, 3 months) in federal prison, and Michael Foley, age 32, was sentenced to 300 months (25 years) in federal prison.
“This prosecution involves allegations that, for more than a year, inmates orchestrated an illicit business from their prison cells that flooded the state with dangerous drugs,” said Hogsett. “These convictions and sentencing decisions are testament to our dedication to shutting off these drug pipelines and protecting Indiana neighborhoods.”
According to the charging document filed in 2012, the drug trafficking operation was largely run by Oscar Perez, age 27, a prisoner who at the time was incarcerated at the Westville Control Unit in Westville. He was assisted by Justin “Big J” Addler, age 28, who at the time was incarcerated at the Wabash Valley Correctional Facility in Carlisle. The indictment also alleges drug trafficking between Addler and Charles Cole, age 40, an inmate in the Pendleton Correctional Facility.
Defendants Yerden and Foley were both charged with conspiring with these prisoners to possess methamphetamine with the intent to distribute it. The indictment cites telephone conversations between Yerden and other drug traffickers discussing the transportation of methamphetamine from Elkhart to Indianapolis. Foley was similarly cited as having helped arrange for methamphetamine to be distributed to lower-level drug traffickers.
The indictment alleges that Perez and Addler would utilize the smuggled cell phones to oversee and facilitate large purchases of methamphetamine from sources of supply in California. Those drugs would then be shipped to Indiana through the mail or with couriers. At times, with the assistance of a corrections officer, they would then smuggle those drugs, cell phones, and other materials to inmates incarcerated within the Indiana Department of Correction.
Beyond those activities undertaken within Indiana correctional facilities, the indictment further describes significant drug trafficking in communities across Central Indiana. These include transactions in Indianapolis, Noblesville, Crawfordsville, Lafayette, New Castle, and Elkhart. This included the purchase and sale of quantities of methamphetamine, heroin, PCP and/or LSD.
According to Assistant U.S. Attorney Barry D. Glickman, who is prosecuting this case for the government, both defendants were also sentenced to years of federally-supervised release at the end of their prison term.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Gregg County Man Guilty of Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 45-year-old Kilgore, Texas man has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Paul Bryan Jones pleaded guilty to possession with intent to distribute methamphetamine on Aug. 26, 2013, before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Sep. 18, 2011, Jones possessed methamphetamine with the intent to distribute it in the Eastern District of Texas. On that same day, law enforcement officers seized 17.26 grams of pure methamphetamine at Jones’ residence. A federal grand jury returned an indictment on Feb. 27, 2013, charging Jones and three others with drug trafficking violations.
Jones faces a minimum of five years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Drug Enforcement Administration, the Gregg County CODE Unit, the Overton Police Department and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Glenns Ferry Man Sentenced for Distributing MethRead the Press Release
BOISE – Jaime Guerrero, 27, of Glenns Ferry, Idaho, was sentenced today in United States District Court to 53 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Guerrero to serve five years of supervised release, 80 hours of community service and pay a $100 special assessment. He pleaded guilty to the charge on November 27, 2012.
Co-defendant Raul Garcia-Rosales, of Mountain Home, Idaho, was sentenced on June 4, 2013, to 21 months in prison for possession with intent to distribute methamphetamine.
According to plea agreements filed in the case, on September 14, 2011, Garcia-Rosales received approximately one pound of methamphetamine from Guerrero in Elmore County, Idaho, and then distributed it to an undercover officer at a truck stop in Mountain Home. Guerrero admitted that he supplied the methamphetamine to Garcia-Rosales. Both men acknowledged the substance they were distributing was methamphetamine.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Idaho State Police and the Drug Enforcement Administration, in conjunction with the Elmore County Sheriff’s Office. The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the DEA, the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Gerald Christopher Calf Boss Ribs Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 27, 2013, before U.S. Magistrate Judge Keith Strong, GERALD CHRISTOPHER CALF BOSS RIBS, a 30-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for December 12, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On August 23, 2011, at approximately 1:30 a.m., the victim and a witness were sitting on a ledge near the Town Pump in Browning. CALF BOSS RIBS approached the victim and hit him in the face.
CALF BOSS RIBS repeatedly hit the victim in the face, arms, and body. The victim stated that while he was defending himself, he had his hands raised and CALF BOSS RIBS bit one of his fingers and broke two others. The victim stated that he was knocked unconscious for a short period of time. After waking up, he started crawling until he could walk. Once able to walk, he walked to the hospital for treatment.
The witness explained to law enforcement that he was with the victim during the assault. The witness stated that CALF BOSS RIBS came out of nowhere and hit the victim. The witness left the scene because he did not want to be attacked by CALF BOSS RIBS.
When interviewed, CALF BOSS RIBS stated that he had met up with the victim earlier and that CALF BOSS RIBS had walked into an alley where he encountered "X.X." and several of "X.X.'s" friends. CALF BOSS RIBS stated that "X.X." "jumped" him. As CALF BOSS RIBS was being attacked, the victim stood by and watched, without helping. CALF BOSS RIBS advised that he was angry when the victim did not assist him as he was being attacked. CALF BOSS RIBS eventually left the beating and began to panhandle for more beer money. CALF BOSS RIBS then admitted that he met up with the victim later and "clocked" him in the head.
When at the hospital, the victim described his pain as a ten out of ten, with ten being the worst. After receiving a CT Scan, the victim was found to have fractures in his lateral orbital wall and his cheek bone. The plastic surgeon who treated the victim performed surgery on the victim four days after the assault. The surgeon described the injuries as "one of the most severe facial fractures" she had seen. All of the bones in the upper left side of the face were broken.
The assault occurred within the exterior boundaries of the Blackfeet Indian Reservation.
CALF BOSS RIBS faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Former Sutherland Global Services Employee Sentenced for Mail Fraud ConspiracyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Raymond Locklin, 29, of Rochester, N.Y., who was convicted of conspiracy to commit mail fraud, was sentenced to six months of home confinement to be followed by five years probation, and ordered to pay restitution in the amount of $262,263.55 by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant, a former employee of Sutherland Global Services, conspired with co-defendant Christi Meehan, to obtain copies of Intuit Inc. software. The two then sold the software online. Locklin and Meehan placed false orders for free copies of replacement Intuit software, including TurboTax and Quicken, while employed by Sutherland Global Services. After receiving the software at addresses in Rochester, the defendants sold the software online, including on eBay.com, to customers throughout the United States. The defendants then kept the proceeds for themselves which resulted in a loss to Intuit of approximately $260,000.
Christi Meehan will be sentenced on October 1, 2013 at 3:00 p.m.
The sentencing is the culmination of an investigation on the part of Inspectors of the United States Postal Inspection Service, Boston Division under the direction of Inspector Kevin Niland, and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent In Charge Steven L. Lanser.
Former Salvadoran Military Officer Sentenced for Perjury and Concealing Information from U.S. GovernmentRead the Press Release
BOSTON – A Salvadoran man residing in Everett who faces charges of crimes against humanity and state terror in Spain was sentenced today for immigration fraud and perjury in connection with false statements he made on immigration forms in order to remain in the United States.
Inocente Orlando Montano, 70, was sentenced today by U.S. District Court Judge Douglas P. Woodlock to 21 months in prison, followed by one year of supervised release and a special assessment of $600. Montano previously agreed to be deported from the U.S. upon completion of his prison term. A judicial order of removal has been secured, and he will be removed from the U.S. to El Salvador following his sentence. In September 2012, Montano pleaded guilty to three counts of immigration fraud and three counts of perjury.
The crimes stemmed from false statements Montano made to obtain Temporary Protective Status (TPS), a benefit available to foreign nationals, permitting them to remain in the U.S. if they are unable to safely return to their home country because of ongoing armed conflict, the temporary effects of an environmental disaster, or other extraordinary and temporary conditions. In 2002, Montano was present in the U.S. and, on several occasions thereafter, applied for and obtained TPS. On his applications, Montano falsified the date on which he entered the country because he knew that if he stated the actual date, he would have been ineligible for TPS.
Montano, a citizen of El Salvador, served in the Salvadoran military for nearly 30 years, rising to the rank of colonel. From 1989-1992, the final years of a decade-long civil war, he served as the Vice Minister for Public Security. After the civil war, in 1993, the U.N. Truth Commission on El Salvador found that there was substantial evidence that Colonel Montano was part of the small core group of elite officers responsible for the 1989 murder of six Jesuit priests, their housekeeper, and the housekeeper’s daughter. Those murders, commonly referred to as the Jesuit massacre, constitute one of the most notorious human rights crimes in El Salvador’s history. The U.N. Truth Commission Report also named Colonel Montano as one of two top officials who covered up the military high command’s role in the Jesuit massacre by pressuring lower-level soldiers not to mention orders from above in their testimony to the Salvadoran court officially charged with investigating the crime.
According to the Government’s memorandum, Colonel Montano left El Salvador at a time when events in El Salvador made it appear that high level military officers would be prosecuted for their alleged role in the Jesuit massacre. Prosecutors asserted that Colonel Montano traveled to the U.S., at least in part, to distance himself from authorities in El Salvador that could prosecute him for his alleged role in the massacre.“Today’s sentence sends a strong message that those alleged to have engaged in human rights abuses overseas should not expect to hide in the United States,” said U.S. Attorney Carmen M. Ortiz. “We will continue to prosecute these cases fully to protect the integrity of our immigration system and to discourage those involved in wrongdoing in their home countries from seeking refuge here.”
“Today’s sentence emphasizes the fact that the United States will never be a safe haven for those who engage in alleged criminal acts in their home countries,” said Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston. “I applaud the efforts of the skilled and dedicated special agents and federal prosecutors who were instrumental in bringing this case to a successful resolution.”
U.S. Attorney Ortiz and SAC Foucart made the announcement today. The case was prosecuted by Assistant U.S. Attorney John A. Capin of Ortiz’s Antiterrorism and National Security Unit.Former President of Remington Volunteer Fire Department Pleads Guilty to EmbezzlementRead the Press Release
ALEXANDRIA, Va. – William Joseph Stuart, age 52, of Bealton, Va., the former President of the Remington Volunteer Fire Department, pleaded guilty today to one charge of theft from a program receiving federal funds.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema. Stuart was indicted on July 25, 2013, by a federal grand jury with one count of Theft from an Organization Receiving Federal Funds. Stuart faces a maximum penalty of 10 years when he is sentenced on November 15, 2013.
In a statement of facts filed with the plea agreement, Stuart admitted that between September 2008 and April 2009, he did steal funds totaling more than $40,000 from the Remington Volunteer Fire & Rescue Department (“RVFD”) in Remington, Virginia by submitting false and fraudulent invoices to the RVFD. Stuart admitted that he then wrote checks to himself and acquired a second signature from another RVFD officer based on the false invoices that Stuart created.
This case was investigated by the Federal Bureau of Investigation’s Washington Field Office and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark D. Lytle is prosecuting the case on behalf of the United States.
Any person who believes they may have information regarding public corruption in the Northern Virginia area is encouraged to call the FBI’s Northern Virginia Public Corruption Hotline at 703-686-6225.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Omaha Police Officer Pleads Guilty to Improperly Accessing a Protected ComputerRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 27, 2013, Kevin Cave, age 37 of Bellevue, appeared before United States District Judge Joseph F. Bataillon and entered a plea of guilty to one count of Exceeding Authorized Access to a Protected Computer for Private Financial Gain. The charge carries a possible penalty of up to five years in prison, up to a $250,000 fine or both and can be followed by up to three years of supervised release.
Cave was employed as an officer with the Omaha Police Department. In that capacity he had access to the NCJIS, (Nebraska Criminal Justice Information System), database maintained by the Nebraska Crime Commission. NCJIS is linked to numerous other databases within the State of Nebraska and other states and can provide officers with information on suspects or witnesses to include criminal history information, drivers’ license information, employment information, and parole and probation information. Commencing in 2010 and continuing until August of 2012, Cave conducted unauthorized NCJIS searches on behalf of car dealerships seeking to repossess cars. He conducted the searches because he was being paid up to $200.00 for each lead that led to a successful repossession. Between on or about March 2, 2010, and August 21, 2012, Cave received at least $16,050.00 from the dealerships for having done so.
Sentencing is set for November 15, 2013. This case was investigated by the Federal Bureau of Investigation.
Former Inmate Sentenced in Prison False Tax Return SchemeRead the Press Release
TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced today that Donald Lee Grayson, 61, of Tulsa, was sentenced in the United States District Court for the Northern District of Oklahoma by U.S. District Judge Claire Eagan.
Grayson was charged with three counts of filing false 2008 federal income tax refund claims in the names of three different fellow prison inmates. As a trustee serving a state sentence at a Tulsa-area prison, he gained access to a laptop computer, and bank accounts in the names of the fellow inmates. With that, Grayson was able to electronically file the false tax returns from his prison cell. That also proved to be his undoing, for a guard noticed the power card of the computer which then led to a search of Grayson’s cell; ending the scheme.
The three false income tax returns were filed in late 2009 and claimed fraudulent refunds totaling $21,276, however, the IRS detected the falsity of one of the returns only paying $14,226 in false refunds.
Grayson was sentenced to 18 months imprisonment, per count with each sentence running concurrent with the others, three (3) years of supervised release to follow the prison term and restitution of $14,226.
The charges resulted from an investigation by Internal Revenue Service-Criminal Investigation, which has emphasized enforcement in the area of false income tax refunds and identity theft. The case was prosecuted by Assistant United States Attorney Charles M. McLoughlin.
Former Chinese Restaurant Owner Pleads Guilty to Harboring Illegal AliensRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Wan Qin Lu, of Cheektowaga, N.Y., pleaded guilty before Chief U.S. District Judge William M. Skretny, to harboring illegal aliens for commercial advantage and private financial gain. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Michael DiGiacomo who is handling the case, stated that the defendant was the former owner and manager of the Easy Z Wok Restaurant in Cheektowaga. Department of Homeland Security investigators gathered information that the defendant was employing two illegal Mexican nationals. Federal agents subsequently executed a search warrant at the restaurant and the defendant’s home. During the search of the defendant’s home, agents discovered two Mexican nationals living in the basement. The investigation also revealed that the defendant was paying the Mexican nationals cash thereby avoiding paying payroll taxes.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for January 14, 2014 at 9:00 a.m. before Judge Skretny.Former Charlotte Area Realtor Pleads Guilty to Selling Household Appliances Stolen from Vacant HomesRead the Press Release
CHARLOTTE, N.C. – A former Charlotte area realtor pleaded guilty on Monday, August 26, 2013, to selling household appliances she unlawfully removed from vacant homes owned by the U.S. Department of Housing and Urban Development (HUD), announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Sember Lynn Smathers, 49, formerly of Shelby, N.C., pleaded guilty before U.S. Magistrate Judge David S. Cayer to one count of conspiracy to steal government property.
U.S. Attorney Tompkins is joined in making today’s announcement by Lester Fernandez, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the Department of Housing and Urban Development (HUD – OIG).
According to the criminal indictment and plea agreement, Smathers was a real estate agent and, in that capacity, had access to listings of vacant HUD real estate owned properties in Charlotte and surrounding communities in North and South Carolina. According to court records, from September 2008 to July 2009, Smathers used a master key to enter the vacant HUD homes and unlawfully remove appliances – such as refrigerators, stoves, washers and dryers – and other items from the homes. Smathers and her co-conspirators usually conducted these “clean outs” one or two times per week. Court records indicate that Smathers then sold these items from her home in Shelby.
In February 2009, Smathers and a co-conspirator leased a building in Shelby and set up a business called “Cheap Stuff,” from which they sold the household appliances as well as clothes and lawn maintenance equipment stolen from the HUD properties. According to filed documents, Smathers and another co-conspirator also maintained a storage unit in Shelby to store the stolen appliances, and used Craig’s List, the Shelby Shopper and the Shelby Star to advertise and sell these appliances. Court records indicate that in one instance, Smathers and another person were conducting a “clean out” while subcontractors were working at the same vacant HUD property. When the subcontractors questioned Smathers about the removal of the appliances from the home, Smathers falsely represented that she and her co-conspirator also worked for the same subcontractors and had been directed to remove the appliances from the home. Court records show that Smathers stole over $13,678 worth of appliances from the vacant homes.
Smathers has been released on bond pending sentencing. She faces a maximum prison term of five years and a $250,000 fine. A sentencing date for Smathers has not been set yet.
The investigation into Smathers was handled by HUD-OIG. The prosecution is handled by Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte.
First of Two Bank Robbers Sentenced for Central Illinois Bank RobberiesRead the Press Release
Springfield, Ill. – A Logan County, Ill., man, Robert D. McKissic, 33, of Lake Fork, Ill., will serve nearly 12 years in prison for the armed robberies of two rural central Illinois banks. U.S. District Judge Sue E. Myerscough yesterday ordered that McKissic serve a total of 140 months (11 years, 8 months) in prison. McKissic was ordered to serve 119 months (9 years, 11 months) plus an additional, consecutive 21 months, because McKissic was under federal supervised release when the bank robberies were committed in September and October 2012. McKissic was further ordered to pay restitution in the amount of $46,977 to the banks.
McKissic pled guilty on Apr. 30, 2013, to committing armed bank robberies of the Bank of Chestnut, in Chestnut, Ill., on Sept. 17, 2012, and Kenney Bank and Trust, Kenney, Ill., on Oct. 24, 2012. McKissic’s co-defendant, Robert D. Allspach, 26, also of Lake Fork, Ill., pled guilty on Apr. 30, 2013, and is scheduled to be sentenced on Sept. 16, 2013.
The two men were charged in a federal criminal complaint in December 2012, and have remained in the custody of the U.S. Marshals Service since their arrest.
The investigation was conducted by the Federal Bureau of Investigation; Illinois State Police; the Logan County Sheriff’s Office; DeWitt County Sheriff’s Office; Sangamon County Sheriff’s Office; the Buffalo / Mechanicsburg Police Department; and the Office of the Illinois Secretary of State. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.Final 3 Defendants Convicted in Stolen Identity and Tax Fraud SchemeRead the Press Release
STATESBORO, GA - Three federal defendants – PORSCHE S. PINKNEY, TIDAESHA V. TAYLOR, and GREGORY F. SMITH, JR. – pled guilty last week before United States District Court Judge B. Avant Edenfield for their involvement in a stolen identity and tax fraud scheme that was centered in Statesboro, Georgia.
Earlier this year, these 3 defendants, along with 10 others who were also involved in the scheme, were charged with federal crimes ranging from conspiracy to defraud the IRS to identity theft from medical records. According to evidence presented during hearings in these cases, the participants in the scheme illicitly obtained personal identifiers, such as names, dates of birth, and Social Security numbers, which they then used to prepare and submit fraudulent tax returns in order to unlawfully obtain tax refunds.
The 3 defendants who pled guilty last week were the last to be convicted of the 13 defendants originally charged in this identity theft and tax fraud scheme. Each of the defendants are listed as follows:ERICA BALDWIN, 31, of Statesboro, Georgia, pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
TRACY DENSON, 44, of Statesboro, Georgia, pled guilty on July 30, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
SHAKITA EASON, 30, of Statesboro, Georgia, pled guilty on June 18, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
YOLANDA EDMOND, 36, of Statesboro, Georgia, pled guilty on July 11, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
GLORIA EVANS, 44, of Statesboro, Georgia, pled guilty on July 11, 2013 to wire fraud conspiracy and aggravated identity theft.
JOSHUA MINCEY, 20, of Statesboro, Georgia, pled guilty on June 25, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
PORSCHE S. PINKNEY, 19, of Augusta, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy, aggravated identity theft, and misusing medical records.
DWAN SCOTT, 32, of Statesboro, Georgia, pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft.
JENNA SCOTT, 28, of Jacksonville, Florida, pled guilty on July 30, 2013 to wire fraud conspiracy and aggravated identity theft.
GREGORY F. SMITH, JR., 21, of Stone Mountain, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft.
ASHA K. SPAULDING, 37, of Claxton, Georgia, pled guilty on March 12, 2013 to wire fraud conspiracy, aggravated identity theft, and assisting in the preparation of false tax returns.
TIDAESHA V. TAYLOR, 27, of College Park, Georgia, pled guilty on August 21, 2013 to wire fraud conspiracy and aggravated identity theft.
ANDREA WEBB, 31, of Register, Georgia, pled guilty on June 5, 2013 to wire fraud conspiracy and aggravated identity theft.
These defendants face a maximum penalty of twenty years imprisonment for the conspiracy charges, ten years imprisonment for the charge of misusing medical records, and a two-year mandatory, consecutive prison sentence for aggravated identity theft. Each of these charges also carries a fine of up to $250,000. Sentencing dates for these defendants have not yet been scheduled.
United States Attorney Edward J. Tarver said, “These convictions demonstrate the continuing commitment of the Department of Justice to protecting the identities and the privacy of medical records of American citizens. This investigation is ongoing. Our law enforcement partners will continue to track down identity thieves and bring them to justice.”FBI Special Agent Marcus Kirkland and IRS Special Agent Gwen Weston are the federal law enforcement officers who have been leading the investigation in these cases, in connection with the Statesboro Police Department and other state and local agencies. Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 341-7842.
Feds Sieze Three Long-Time Problem Motels in Tukwila as part of Year-Long InitiativeRead the Press Release
Three motels on Tukwila International Boulevard, in Tukwila, Washington were seized and boarded-up by federal agents today following a year-long investigation of criminal activity in and around the motels, announced U.S. Attorney Jenny A. Durkan. More than 400 law enforcement officers and agents participated in the serving of search and seizure warrants today on the Great Bear Motor Inn, Boulevard Motel and Travelers Choice Motel. In addition to the civil seizure of the motels, four people were arrested in connection with ongoing criminal activity at the motels, including three owner-operators. In 2011 and 2012, police responded to the motels for reports of rape, robbery, assault, drug transactions, gun crimes, prostitution, and possession of stolen property. During that time, the three motels accounted for approximately 17 percent of the Tukwila Police Department’s calls for service.
“Today we seek to hold the hotel owners accountable for their crimes, strip them of their criminal dens and make this area of the community safer,” said U.S. Attorney Jenny A. Durkan. “I commend the Tukwila Police Department and ATF for their work – which allows us to not just prosecute the defendants, but to solve a problem. Reducing crime on International Boulevard is a top priority for the residents of Tukwila and their representatives in government, and this operation is directly responsive to the community’s most pressing needs.”
According to records filed to seize the motels, (see Complaint here) the Tukwila Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) jointly-led investigation used undercover officers and people working with law enforcement to document criminal activity at the motels and the role the owners and managers played in that activity. According to the affidavit filed in the case, owners and managers would collect a $10 entry fee for those coming on the property seeking drugs or sexual services. The owners and/or managers would take the money and direct the customer to rooms to purchase drugs or sex. In some instances the person taking the “fee” would call the motel room to inform the dealer or sex worker that a customer was on the way. According to witnesses, the owner or manager would collect additional rental fees from the dealer or sex worker based on how many customers were sent to the room over the course of the day.
“These businesses have been a haven for violence and gang activity for several years. Today’s operation should have a lasting positive impact on crime in Tukwila,” said ATF Acting Special Agent in Charge Jim Modzelewski. “ATF remains committed to partnering with other agencies to fulfill our mission of targeting violent crime.”
“The Mayor and Tukwila City Council have made public safety a priority for the citizens of Tukwila, and we are thankful for their support that has helped the police department create a safer place to live and conduct business,” said Tukwila Chief of Police Mike Villa. “Additionally, I would like to thank all of our officers, staff and partnering agencies that have made this operation a success. We are excited that jointly we have been able to make such a significant impact on crime in Tukwila.”
Since at least 2006, the three motels have consistently been among the top five motels in Tukwila with the highest calls for police service per room, with significantly higher ratios than other hotels in Tukwila. The Great Bear Motor Inn was identified and cited in August 2012, as a nuisance property by the City of Tukwila. The Boulevard Motel and Travelers Choice Motel had been sent warning letters in 2011 about being cited as nuisance properties.
Displaced residents from the seized motels will be offered transportation to a nearby church. At the church they will be fed and offered medical and mental health services, and assistance with housing and other needs from several City of Tukwila departments and other local, state and federal agencies. The City will be providing qualified low income residents with vouchers for groceries and transportation.
“The City of Tukwila expresses our deepest appreciation to the many federal, state, and local agencies who collaborated so well with our police department on this public safety action. This shows how we are all committed to improving public safety and creating great neighborhoods,” said Tukwila Mayor Jim Haggerton.
The investigation, search and seizure operation today was led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tukwila Police Department. Many additional agencies assisted the investigation and today’s operation, including the U.S. Marshals Service; Department of Homeland Security; Drug Enforcement Administration; Federal Bureau of Investigation; Internal Revenue Service Criminal Investigation; U.S. Department of Agriculture Office of Inspector General; Washington State Patrol; Seattle, Auburn, Kent, Renton, Federal Way, and Port of Seattle Police Departments; Valley SWAT Team; King County Sheriff’s Office; Washington State Department of Corrections; and Washington State Department of Social and Health Services (DSHS).
The case is being handled by Assistant United States Attorneys Justin Arnold, Jill Otake and Richard Cohen.
Press contact for the U.S. Attorney’s Office from August 27 to 30 is Executive Assistant United States Attorney Thomas Bates at (206) 553-7970 or [email protected].
Press contact for the City of Tukwila is Commander Eric Drever of the Tukwila Police Department at (206) 858-3883 or [email protected].
Federal Employee Pleads Guilty to Extorting Money from Social Security BeneficiariesRead the Press Release
ATLANTA - Cordell Fleming pleaded guilty today in federal court to extorting money from individuals due Social Security benefits.
“A federal employee, in a position of public trust, preying on the disabled and the indigent shocks the conscience,” said United States Attorney Sally Quillian Yates. “This defendant extorted money from needy, disabled members of our community by promising them expedited Social Security payments in return.”
According to United States Attorney Yates, the charges and other information presented in court: Fleming worked as Claims Representative for the Social Security Administration. As part of his duties, he processed requests for Supplemental Security Income (SSI) payments for eligible individuals. However, Fleming offered to “expedite” the processing time of SSI payments to SSI beneficiaries and SSI beneficiary payees in exchange for a fee. In an attempt to make the expedited SSI payments appear legitimate, Fleming frequently created false documents that purportedly justified the expedited disbursement of SSI payments. During the course of the scheme, from October 2012 to April 2013, Fleming extorted and attempted to extort money (in amounts ranging from approximately $500 to $1,800) from at least nine SSI beneficiaries or their representative payees.On August 14, 2013, Fleming, 46, of Conyers, Ga., was charged with one count of extortion and he pleaded guilty to this count today. Fleming could receive a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for November 14, 2013, at 11:30 a.m., before United States District Judge Timothy C. Batten, Sr.
This case is being investigated by Special Agents of the Social Security Administration - Office of the Inspector General.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Diane C. Schulman are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Drug Trafficker who Hid Pounds of Heroin and Methamphetamine in Apartment Walls Sentenced to Long Prison TermRead the Press Release
A drug trafficker who came to the attention of law enforcement after his roommate was shot and killed in November 2012, was sentenced today in U.S. District Court in Tacoma to 15 years in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan. JUAN HIDALGO-MENDOZA, 33, of Lakewood, Washington was convicted following a jury trial in May 2013 of Conspiracy to Distribute Controlled Substances, Possession with Intent to Distribute Controlled Substances, Possession of a Firearm in Furtherance of a Drug Trafficking Offense and being a Felon in Possession of a Firearm/Ammunition. At sentencing U.S. District Judge Ronald B. Leighton referred to HIDALGO-MENDOZA’s apartment as “ground zero” for local trafficking activity and “a magnet for crime and violence” that drew the attention of armed intruders and led to the death of his roommate.
According to records filed in the case, emergency crews responded to the Greenwood Apartments on San Francisco Ave. SW, in Lakewood, just before 10:00 p.m. on November 12, 2012. They found Jaime Diaz-Solis with a fatal gunshot wound on the sidewalk outside the ground floor apartment he shared with HIDALGO-MENDOZA. According to witnesses, they heard a gunshot and later HIDALGO-MENDOZA dragged Dias-Solis from the apartment yelling for neighbors to call an ambulance. HIDALGO-MENDOZA said he was in his bedroom when the victim was shot by an intruder. On the night of the shooting a search of the apartment revealed two bricks of heroin weighing over three kilos, wrapped in duct tape, as well as an AK-47 style assault weapon and ammunition. Investigators also found a revolver in HIDALGO-MENDOZA’s bedroom closet. Hidden under the seat of HIDALGO-MENDOZA’s truck, investigators found $37,800 in cash. HIDALGO-MENDOZA was arrested in November for the drug conspiracy as well as being a felon in possession of a firearm. He has a prior conviction in California for distributing heroin and is prohibited from possessing firearms.
Two months after HIDALGO-MENDOZA’s arrest, and after the apartment had been rented to a new tenant, law enforcement learned there were additional drugs hidden in the unit. In the walls they found eight bricks of heroin wrapped in duct tape, and two bricks of methamphetamine wrapped in green cellophane. The hidden heroin totaled more than 13 kilos and the methamphetamine was nearly two kilos. The wrapping of the heroin was identical to the two bricks seized in November.
In asking for a significant sentence prosecutors wrote to the court, “Hidalgo-Mendoza is a repeat offender. He was caught, convicted, and imprisoned for selling heroin three years before this offense, in California. He was subject to court supervision for that offense at the time he came to Washington, ostensibly to obtain a driver’s license but almost certainly with designs related to the drug trade. That being the case, unlike first-time offenders, he cannot claim ignorance to the potential criminal consequences of drug trafficking activity, and was intimately aware of the hazards of the business (evidenced by his weapons) as well as the tragic impact drugs have on users.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by Lakewood Police Department, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The Auburn Police Department assisted with the case.
The case was prosecuted by Assistant United States Attorneys Sarah Vogel and Steven Masada.
Press contact for the U.S. Attorney’s Office on August 27 is Thomas Bates at (206) 553-7970 or [email protected].
Denver Man Convicted of Advertising Child Pornography and Other Child Pornography Related ChargesRead the Press Release
Advertising conviction is one of the first of its kind in the country
DENVER – Following a seven-day jury trial, Richard Franklin, a.k.a “westfaliaimplant”, age 45 of Denver, Colorado, was found guilty of advertising child pornography, receipt of child pornography, two counts of distribution of child pornography, and possession of child pornography, United States Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. The jury deliberated for two hours before reaching their verdict. Franklin, who appeared at the trial in custody, was remanded following the conclusion of the trial. The trial was held before Senior U.S. District Court Judge Wiley Y. Daniel. Franklin is scheduled to be sentenced by Judge Daniel on November 14, 2013 at 9:30 a.m.
According to the Second Superseding Indictment, as well as facts presented at trial, from May 11, 2009 and January 5, 2011, Franklin knowingly made, printed or published any notice or advertisement offering to receive, exchange or distribute child pornography to anyone who was a member of his online trading circle. Further, the defendant knowingly received and distributed child pornography using the Internet. Lastly, Franklin knowingly possessed images of child pornography.
In total, the defendant possessed multiple hard drives containing over 200,000 images of child pornography. Franklin used a file trading software to allow others to preview and browse his collection and to chat with fellow child pornography traders. Part of the trading of images was to encourage purveyors to produce new child pornography videos. As a result of this investigation, two young children, both under 12 years old, were rescued from their abusers.
During her closing remarks, Assistant U.S. Attorney Judith Smith said: “The defendant’s currency was trading in the suffering of children’s sexual abuse and humiliation.”
U.S. Attorney John Walsh praised the prosecution team, including the Assistant U.S. Attorneys and the FBI Special Agents who conducted the investigation into Franklin. “Thanks to the in-depth work of the FBI agents, and the excellent litigation of the prosecutors handling this case, the defendant faces a mandatory minimum of 15 years in federal prison for his heinous crime of trafficking in images of the sexual exploitation of children as young as babies.”
“Protecting children from providers of child pornography is a priority of the FBI,” said FBI Denver Division Special Agent in Charge Thomas Ravenelle. “Today’s verdict demonstrates that those who advertise, distribute, possess, and trade child pornography will be prosecuted to the fullest extent of the law.”
The penalty for notice or advertising child pornography is not less than 15 years, and up to 30 years in federal prison, and a fine of up to $250,000. The penalty for receipt or distribution of child pornography is not less than 5 years, and not more than 20 years in federal prison, and a fine of up to $250,000, per count. The penalty for possession of child pornography is not more than 10 years imprisonment and up to a $250,000 fine. If the defendant has a prior conviction relating to aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor or ward, or the production, possession, receipt mailing, sale, distribution, shipment or transportation of child pornography, or sex trafficking in children, the defendant faces not less than 25 years and not more than 50 years imprisonment for advertising child pornography, and not less than 15 years and not more than 40 years imprisonment for receipt, distribution and possession of child pornography.
This case was investigate by the Denver and Phoenix Field Offices of the Federal Bureau of Investigation.
Franklin was prosecuted by Assistant U.S. Attorneys Judith Smith and Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Defendant Sentenced for Possession of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that
Russell Lloyd Norvell, 44, of Doerun, Georgia, was sentenced on Monday, August 26, 2013, by the Honorable Hugh Lawson, Senior United States District Judge, in Valdosta, Georgia, for possession of child pornography. Judge Lawson sentenced Mr. Norvell to sixty-one (61) months imprisonment to be followed by twenty-five (25) years supervised release and mandatory registration as a sex offender.Mr. Norvell entered a plea of guilty on June 3, 2013, to one count of possession of child pornography. Mr. Norvell admitted that he used a computer at his residence to search for and download child pornography between March and May, 2011. Based on information received by law enforcement agents, an Internet Protocol address was traced to the Norvell residence. A search warrant was executed on this residence on June 23, 2011. During the search, the agents located a number of computers in the home and Mr. Norvell admitted he used one of the computers to access child pornography. A thumbdrive and a DVD were discovered containing child pornography as well. The search further revealed over 600 images and videos of minors, including minors under the age of twelve (12) years, engaged in sexual activity including being subjected to sexual intercourse with adult males as well as sadistic and masochistic conduct.
“Mr. Norvell caused the young children in these disgusting images to be re-victimized every time he looked at the pictures and videos. The Department of Justice prioritizes protecting our children by prosecuting people like Mr. Norvell,” said United States Attorney Michael Moore.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and prosecuted by Assistant United States Attorney Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Defendant Sentenced for Possession of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that
Cameron Scott Johnson, 24, of Lake Park, Georgia, was sentenced on Monday, August 26, 2013, by the Honorable Hugh Lawson, Senior United States District Judge, in Valdosta, Georgia, for possession of child pornography. Judge Lawson sentenced Mr. Johnson to sixty-one (61) months imprisonment to be followed by twenty-five (25) years supervised release and mandatory registration as a sex offender.Mr. Johnson entered a plea of guilty on June 3, 2013, to one count of possession of child pornography. Mr. Johnson admitted that he used the computer at his residence to search for and download child pornography during the period between September 26, 2011 through December 5, 2011. Based on information that Mr. Johnson was using an Internet Protocol address, which was traced by law enforcement agents, a search warrant was executed on Mr. Johnson’s residence and the computer was seized for examination. The examination revealed over 600 images and videos of minors, including minors under the age of twelve (12) years engaged in sexual activity including being subjected to sexual intercourse with adult males as well as sadistic and masochistic conduct.
“Every time Mr. Johnson downloaded a picture of one of these children, he re-victimized them. It is both sad and reprehensible. After his prison sentence, Mr. Johnson will live under supervision as a sex offender for the majority of his remaining life,” said United States Attorney Michael Moore.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and prosecuted by Assistant United States Attorney Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Dallas Woman Pleads Guilty to Perjury Related to Bankruptcy FilingsRead the Press Release
DALLAS — A Dallas woman, Estela Martinez, 53, appeared in federal court yesterday afternoon, before U.S. Magistrate Judge Paul D. Stickney, and pleaded guilty to one count of making a false statement, under penalty of perjury, related to bankruptcy filings. Martinez faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for January 20, 2014, before U.S. District Judge Sam A. Lindsay. The announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas, whose office has been placing increased emphasis on investigating and prosecuting bankruptcy fraud.
According to documents filed in the case, Martinez filed six voluntary bankruptcy petitions: in April 2009, July 2009, January 2011, March 2011, November 2011 and in November 2012. Separate counsel represented her in each of the 2009 filings; she represented herself in each of the 2011 and 2012 filings.
In each of the four 2011 and 2012 filings, Martinez falsely and fraudulently omitted information concerning previous bankruptcy filings that she was obligated to disclose, under the penalty of perjury. Martinez fraudulently omitted listing her assigned social security number in several of the filed bankruptcy petitions.
The case was investigated by the Social Security Administration, Office of Inspector General.
Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Dallas County Man Admits Transporting and Shipping Child PornographyRead the Press Release
DALLAS --- Quincy Lamar Poole, 24, appeared today in federal court in Dallas, before U.S. Magistrate Judge David L. Horan, and pleaded guilty to one count of transporting and shipping child pornography. He faces a statutory penalty of not less than five or more than 20 years in federal prison, a $250,000 fine and up to a lifetime of supervised release. Poole, who is in custody, is scheduled to be sentenced on December 18, 2013, by U.S. District Judge Barbara M. G. Lynn. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, when special agents with the FBI executed a search warrant at Poole’s home in Lancaster, Texas, on July 16, 2013, they seized a laptop computer, a thumb drive and Poole’s cell phone. Email transmissions were located that showed Poole had sent two emails with a video of child pornography attached to each. In addition, five videos and one image of child pornography were located on his cell phone.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The matter is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is prosecuting.