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Wednesday 3 July 2013
Anahit Hovhannisyan and Health Guard, Inc. Plead Guilty to Conspiracy to Commit Health Care Fraud ViolationsRead the Press Release
ANAHIT HOVHANNISYAN, age 34, of Armenia, pled guilty on Monday, July 1, 2013, to health care fraud. HEALTH GUARD, INC., a Louisiana corporation that operated as a medical clinic, also plead guilty to a health care fraud conspiracy. The pleas were entered before U. S. District Court Judge Lance M. Africk, announced U. S. Attorney Dana Boente.
According to the Second Superseding Indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare and Medicaid. Patients went to HEALTH GUARD, INC. for medical tests that were not performed or medically necessary. Patients were moved between other commonly owned health care clinics to HEALTH GUARD, INC. to repeatedly perform the same unnecessary tests. Five other clinics and their owners have already been sentenced for the same activity. According to the Second Superseding Indictment, if the patients refused the diagnostic tests at HEALTH GUARD, INC., prescriptions for narcotic drugs were withheld. Thereafter, bills for the unnecessary services were submitted to Medicare and Medicaid. HOVHANNISYAN was the owner of HEALTH GUARD, INC., and also an unlicensed and unqualified diagnostic technician, according to the indictment.
The Second Superseding Indictment to which HOVHANNISYAN pled guilty carries a possible maximum sentence of ten (10) years imprisonment. Sentencing has been scheduled for September 26, 2013.
The investigation was conducted by Special Agents of the Federal Bureau of Investigation, the U. S. Department of Health and Human Services, Office of Inspector General, and the Louisiana Department of Justice, Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U. S. Attorney Patrice Harris Sullivan.
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4 Individuals Indicted and Arrested for Drug TraffickingRead the Press Release
Perfume parlor used as a front for controlled substance sales
SAN JUAN, Puerto Rico – On June 27, 2013, a federal grand jury in the District of Puerto Rico returned an indictment against four defendants charged with conspiracy to possess with intent to distribute, and distribution of, cocaine and Oxycodone (commonly known as Percocet), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation.
According to the indictment, the object of the conspiracy was to use the establishment Perfumería Chris in Levittown, Toa Baja, PR, as a front from which the illegal sale of controlled substances, mainly cocaine and Percocet, could take place undetected, all for significant financial gain.
The defendants are: Ramón Santiago-Ortega, aka “Pucho”, owner of Perfumería Chris (perfume parlor); Jesús Cabrera-Martínez, aka “Papalote;” Yolanda Santiago-Orta and Elizabeth Rodríguez-Flores. They operated the Perfumería Chris, where they sold drug paraphernalia and narcotics in perfume accessories such as bags and boxes to disguise the controlled substances sold at their workplace. According to the indictment, the defendants would count and weight the controlled substances directly on top of the perfume counter before conducting the drug sales.
The defendants served as runners and sources of supply of cocaine for other members of the conspiracy, in addition to participating in the drug sales and splitting the earnings with other members. They used cellphones in committing, causing and facilitating controlled substance sales. It was further part of the manner and means of the conspiracy that members of the conspiracy advised as to the code names to use during the drug related conversations such as “Baskin-Robbins” in reference to 31 grams of cocaine (31 ice cream flavors) and “Perfume” in reference to kilos of cocaine.
Defendants Santiago-Ortega and Rodríguez-Flores are facing one count of managing and controlling a drug establishment. Since August 2011, these two defendants, owners, managers and/or employees, knowingly and intentionally used Perfumería Chris for the purpose of unlawfully storing and distributing cocaine and Percocet. As to the narcotics forfeiture allegation, the property to be forfeited is the two story building, to wit, Perfumería Chris.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These defendants distributed narcotics inside what appeared to be a legitimate business, where they thought their illegal activities would go undetected.”
“Our citizens should not have to live with drug dealers operating in their communities - openly conducting their drug deals in stores, mall parking lots and streets,” stated Acting Special Agent in Charge Pedro J. Janer. “Individuals, whether they live in Mayagüez or in San Juan, should be able to walk their streets and go about their daily activities without fear or exposure to drug activity and potential related violence. We will continue working hard to enhance the quality of life in our neighborhoods.”
Special Assistant US Attorney Max Pérez-Bouret is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Tuesday 2 July 2013
Woodward Man Pleads Guilty to Unlawful Possession of Firearms and Ammunition After Being Involuntarily Committed to A Mental InstitutionRead the Press Release
Oklahoma City, Oklahoma – TIMOTHY DEAN EIKE, 19, from Woodward, Oklahoma, pled guilty to being in unlawful possession of firearms and ammunition after being involuntarily committed to a mental institution, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court filings and information from the plea hearings, on July 24, 2012, Eike was discovered to be in possession of a 20 gauge shotgun and a 30.06 caliber rifle, together with 97 rounds of 20 gauge ammunition and 168 rounds of 30.06 ammunition. The Woodward Police Department was aware that Eike had been ordered to involuntary inpatient mental health treatment on February 10, 2012. As a person who had been involuntarily committed to a mental institution, Eike was a prohibited from possessing firearms and ammunition under federal firearms laws. Further investigation revealed that on July 5 and 9, 2012, Eike purchased the weapons and ammunition from a licensed firearms dealer in Woodward, Oklahoma, and falsely represented that he had never been involuntarily committed to a mental institution.
Eike was indicted by a federal grand jury on May 7, 2013. He pled guilty on June 26, 2013, to being in unlawful possession of firearms and ammunition after being involuntarily committed to a mental institution. A sentencing date will be set by the Court in approximately 90 days where Eike faces up to ten years in prison.
This case was investigated by the Woodward Police Department, Woodward County Sheriff’s Office, Federal Bureau of Investigation, United States Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Edward J. Kumiega.
Virginia Man Sentenced to 22Years in Prison and Fined $500,000 for Attempting to Entice Minor to Engage in Illicit Sexual ActivityRead the Press Release
WASHINGTON - Paul David Hite, 58, an anesthesiologist from Midlothian, Va., was sentenced today to 22 years in prison and fined $500,000 on two federal charges of attempting to entice a minor to engage in illicit sexual activity, announced U.S. Attorney Ronald C. Machen Jr. and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Joining in the announcement were Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Hite was found guilty by a jury in February 2013 following a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Colleen Kollar-Kotelly. Upon completion of his prison term, Hite will be placed on 10 years of supervised release.
Evidence presented at trial established that from Feb. 1, 2012 through Feb. 17, 2012, Hite engaged in a series of Internet chats and telephone calls with an undercover police detective in Washington, D.C., who was posing as an adult who was sexually abusing a minor girl and a minor boy. During the course of the communications with the undercover detective, Hite described, in graphic detail, the sexual activity in which he wanted to engage with the purported minors. Hite also discussed plans to travel to Washington, D.C. for the purpose of sexually abusing the purported minors.
Hite was arrested near his residence in Midlothian on Feb. 17, 2012. Law enforcement recovered computer equipment from Hite’s home, which uncovered evidence of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
“This wealthy doctor trolled the Internet for child pornography and described in shocking detail the sex acts he wanted to perform on a 12-year-old girl and a 3-year-old boy,” said U.S. Attorney Machen. “We can only be thankful that he was identified and stopped by law enforcement before he had the opportunity to carry out his disturbing plans to drug and rape children. This sentence of more than 20 years behind bars should deter other criminals who are tempted to sexually abuse children.”
“Online predators who attempt to entice minors take advantage of our most precious resource, our children,” said Assistant Director in Charge Parlave. “The FBI is committed to apprehending dangerous offenders who sexually exploit children, and we will continue to work together with our partners to identify these predators and their victims.”
In announcing the sentence, U.S. Attorney Machen, Acting Assistant Attorney General Raman, Assistant Director in Charge Parlave and Chief Lanier commended the work of all who participated in the investigation. They especially acknowledged the efforts of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They expressed appreciation for the assistance provided by the U.S. Attorney’s Office for the Eastern District of Virginia, as well as the FBI’s Richmond Field Division.
They also acknowledged the efforts of Digital Investigative Analyst Christie Gardner of the Criminal Division’s Child Exploitation and Obscenity Section, and Criminal Investigator John Marsh of the U.S. Attorney’s Office for the District of Columbia. They additionally commended the efforts of those who assisted with the case at the U.S. Attorney’s Office, including Paralegal Specialist Starla Stolk; Legal Assistants Jessica Moffatt and Charmonique Price; Dawn Tolson-Hightower and David Foster of the Victim Witness Assistant Unit; and Joshua Ellen, Kimberly Smith, and Leif Hickling of the Litigation Services Unit.
Finally, they commended the work of Assistant U.S. Attorneys Elizabeth Wu from the Eastern District of Virginia, Diane Lucas of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, and David B. Kent and Julieanne Himelstein of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.
13-239Virginia Charter Boat Captain Sentenced for Illegal Harvest of Striped BassRead the Press Release
NORFOLK, Va. – Raymond Carroll Webb, 54, of White Stone, Va., and his company, Peak Enterprises, were both sentenced to a three-year term of probation and were ordered to pay a $3,000 fine and $1,000 in restitution to the National Oceanic and Atmospheric Administration (NOAA) for trafficking in illegally-harvested striped bass. The $3,000 fine was directed to the Lacey Act reward account which provides rewards to persons who report wildlife crime to law enforcement. Webb and Peake Enterprises were ordered to maintain a Vessel Monitoring System (VMS) unit on any vessel if used for charter fishing during the term of their probation. The VMS unit will allow law enforcement officers to track the vessel in real-time.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Robert G. Dreher, Acting Assistant Attorney General for the Environment & Natural Resources Division, and Logan Gregory, Special Agent in Charge for NOAA’s Office of Law Enforcement’s Northeast Division, made the announcement after sentencing by U. S. District Judge Arenda Wright Allen.
On January 28, 2013, Webb and Peake Enterprises each pled guilty to violation of the Lacey Act in the United States District Court in Norfolk, Virginia. The Lacey Act, among other things, makes it unlawful for any person to transport, sell, receive, acquire or purchase any fish or wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States. Since 1990, federal law has made it unlawful to fish for, catch, or possess striped bass in the Exclusive Economic Zone (EEZ). The laws were passed in response to a decline in the striped bass populations in the late 1970’s and are designed to protect and preserve striped bass for future generations.
According to the plea agreement, Webb and Peake Enterprises admitted that they sold a chartered Striped Bass fishing trip on February 12, 2011. After departing from Rudee Inlet in Virginia Beach, Virginia, Webb knowingly took his charter clients into the EEZ to harvest striped bass, even though Webb knew that it was a violation of federal law to harvest striped bass inside the EEZ. Webb’ clients illegally harvested striped bass within the EEZ. At some point during the trip, Webb learned that there were Virginia Marine Police patrol boats in the area. Upon learning this, Webb ordered his first-mate to throw the all of the striped bass overboard to avoid detection by law enforcement.
This case was investigated by NOAA’s Office of Law Enforcement and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office. Assistant U.S. Attorney Stephen W. Haynie of the United States Attorney’s Office for the Eastern District of Virginia and Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section 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.
Union County, N.J., Businessman Admits Tax Evasion SchemeRead the Press Release
Concealed Nearly $4m in Business Receipts
NEWARK, N.J. – A Union County, N.J., man who owns and operates a medical supply company that he runs out of his home admitted today to concealing $3,984,508 in business receipts and pleaded guilty to one count of tax evasion, U.S. Attorney Paul J. Fishman announced.
Yuxin Xie, 59, of Mountainside, N.J., pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging one count of tax evasion for failing to report business receipts from his company, YX Enterprises.According to documents filed in this case and statements made in court:
During the tax years in question – 2006 through 2010 – Xie purchased diabetic test strips from numerous suppliers. He re-packaged and sold them to wholesale pharmaceutical and medical products distribution companies. Customer payments that Xie received were deposited into 11 different bank accounts at three different financial institutions. YX Enterprises was not a registered corporation and any income received by YX Enterprises should have been reported on Xie’s tax returns.
Xie’s tax returns for the five years in question failed to report millions of dollars in gross receipts received by YX Enterprises. For each of the tax years 2006, 2007 and 2008, Xie’s tax returns reported that YX Enterprises had gross receipts of less than $10,000; Xie’s 2009 and 2010 tax returns contained no reference at all to YX Enterprises. YX Enterprises had in fact received nearly $4 million in business receipts during this five-year period.
Although Xie pleaded guilty to only one count of tax evasion for the 2009 tax year, the plea agreement requires that Xie admit to evading income taxes for all five years, and the court will take into account at sentencing the tax loss for all five years. The tax loss is $200,000 to $400,000.
Xie faces a maximum potential penalty of five years in prison and a fine of $250,000 or twice his gain from the offense, together with the costs of prosecution. Xie also agreed to file true and accurate tax returns and to pay to the IRS all taxes and penalties owed. Sentencing is scheduled for Oct. 23, 2013.U.S. Attorney Fishman credited special agents with IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, in Newark; special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Mack of the U.S. Attorney’s Health Care and Government Fraud Unit.
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Defense counsel: Robert J. DeGroot Esq., Newark
Xie Information
U.S. Marine Reservist Arraigned on Federal Child Pornography ChargesRead the Press Release
tALBUQUERQUE – Lee Baca, 22, a U.S. Marine Reservist who resides in Albuquerque, N.M., was arraigned this morning on a five count indictment charging him with child pornography offenses. Baca entered a not guilty plea to the indictment and was ordered detained pending trial, which has yet to be scheduled.
On June 26, 2013, a federal grand jury returned a sealed indictment charging Baca with three counts of receipt of visual depictions of minors engaged in sexually explicit conduct and two counts of possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Baca received child pornography between Dec. 2012 and Feb. 2013, and possessed child pornography in March 2013. The offenses allegedly occurred in Bernalillo County, N.M. The indictment was unsealed after Baca was arrested on June 29, 2013 by Homeland Security Investigations (HSI) agents.
If convicted, Baca faces a maximum prison sentence of not less than five years and not more than 20 years on each of the receipt of child pornography charges, and a maximum penalty of 20 years in prison on each of the possession of child pornography charges. The indictment against Baca is merely an accusation and he is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Sexual Predator and Exploitation Enforcement (SPEED) Task Force, which is comprised of HSI, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office, and the New Mexico Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
U.S. Attorney Reaches Settlement with the Xl Center to Ensure Access for People with DisabilitiesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced a settlement agreement with the XL Center, its management companies, the City of Hartford and the State of Connecticut to resolve allegations that the XL Center failed to comply with the Americans with Disabilities Act (ADA). The ADA prohibits discrimination on the basis of disability, including mobility impairments, in places of public accommodation. The XL Center is an arena in downtown Hartford that seats more than 16,000 people and hosts various athletic and entertainment events.
Following an investigation prompted by a complaint, the XL Center parties agreed to make numerous changes, including adding accessible bathrooms and seats, improving the existing accessible seating, removing mobility impairments, installing additional safety measures, and changing policies.
The XL Center, its management companies, the City of Hartford and the State of Connecticut worked cooperatively to address the deficiencies at the Center. The United States will continue to monitor the XL Center for the next three years to ensure ongoing compliance with the ADA.
“The law appropriately mandates that all people including those with disabilities have equal access to places of public accommodation,” stated Acting U.S. Attorney Daly. “As the XL Center serves so many, we hope the Center’s significant efforts will act as a reminder to all businesses of their legal obligations under the ADA to the citizens of Connecticut. Even facilities that were built prior to the 1992 enactment of the ADA are legally required to remove all physical barriers to access so that their facilities can be enjoyed fully and equally by all people, including those that have limited mobility.”
The ADA prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, state and local government services, public accommodations, commercial facilities, and transportation.
The enforcement of the ADA is a top priority of the United States Attorney’s Office for the District of Connecticut and the Justice Department’s Civil Rights Division. Individuals can file an ADA complaint with the U.S. Attorney’s Office in Connecticut by calling 203-821-3700, and also by visiting www.ada.gov/filing_complaint.htm. Additional information about the ADA and its application to places of public accommodation can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).
This case was handled by Assistant United States Attorneys Lisa E. Perkins and David C. Nelson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two from Lorain County Charged with Fraud for Diverting $290,000 from Escrow AccountRead the Press Release
Two Lorain County men were charged with conspiracy to commit wire fraud for defrauding companies and customers out of more than $290,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged in the criminal information are Gregory R. Klima, 52, of Avon Lake, and Timothy R. Grodzik, 52, of Columbia Station. The men owned Title Access, LLC, with Klima serving as president and Grodzik as vice president of sales, according to the information.
Title Access was formed in 2000 and in the business of administering real estate transactions by providing services including title insurance and escrow account management. Title Access used Stewart Title as an underwriter for the issuing of title insurance, according to the information.
Klima and Grodzik are accused of defrauding Stewart and parties to real estate transactions by diverting funds from Title Access’ escrow account for their personal benefit between December 2009 and February 2011, according to the information.
Around February 2011, Grodzik, with Klima’s knowledge, falsified Access’ financial documents to conceal from a Stewart auditor the fact that they diverted funds from the Title Access escrow account, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the Federal Bureau of Investigation and the Ohio Department of Insurance.
An information only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Clarksburg Residents Sentenced on Crack Cocaine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Preston County Resident Enter Plea to Possession of Stolen Explosives
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II
announced that the following individuals recently appeared in Federal Court in Clarksburg.JASON SAUNDERS a/k/a “JOSH JAMES,” age 25, of Bridgeport, West Virginia, was sentenced to 41 months imprisonment to be followed by six years of supervised release. SAUNDERS entered a plea of guilty on March 20, 2013, to “Distribution of Crack Cocaine within 1,000 Feet of Simpson Elementary School” on May 29, 2012.
DEREK DELEON BROWN a/k/a “SMOKE,” age 23, of Clarksburg (formerly of Pittsburgh, Pennsylvania) was sentenced to 15 months imprisonment to be followed by three years of supervised release. BROWN entered a plea of guilty on March 20, 2013, to “Distribution of Crack Cocaine” on June 26, 2012, in Harrison County.
SAUNDERS and BROWN were remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
GREGGORY MAYFIELD, age 49, of Albright, West Virginia, entered a plea of guilty to “Possession of Stolen Explosives.” From December 2012 to February 20, 2013, MAYFIELD possessed two sticks of dynamite and 2 blasting caps he had stolen from his employer, Consolidation Coal Company. MAYFIELD, who is free on bond pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Charged with Illegally Reentering the United StatesRead the Press Release
Two people were indicted on unrelated cases of illegal reentering the United States following deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
One indictment alleges that Yobany Teofilo Gonzalez-Velasquez, 37, is undocumented and was previously removed or deported from the United States to Guatemala on February 12, 2009, subsequent to a conviction for an aggravated felony.
Another indictment alleges that Julio Cruz-Lopez, 27, is undocumented and was previously removed or deported from the United States to Mexico on multiple occasions.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The cases are being prosecuted by Assistant U.S. Attorneys Phillip J. Tripi and Justin Seabury Gould, following investigation by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Trover Health System of Madisonville, Kentucky Pays $1,162,837 to Settle False Claims AllegationsRead the Press Release
– Trover is among 55 hospitals in the agreement to pay the U.S. more than $34 million to resolve allegations related to Kyphoplasty
LOUISVILLE, Ky. – Trover Health System of Madisonville, Kentucky has voluntarily entered into a settlement with the United States of America to pay $1,162,837.00 to settle allegations that it submitted false claims in violation of the Federal False Claims Act, announced the Office of Inspector General of the Department of Health and Human Services and David J. Hale, United States Attorney for the Western District of Kentucky. Fifty-five hospitals located throughout twenty-one states are part of today’s announcement by the Justice Department that have agreed to pay the United States a total of more than $34 million to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures.
“Pursuing health care fraud is a priority of my Office and the Department of Justice. We will continue to work with the Department of Health and Human Services to ensure that medical providers who overbill Medicare are investigated and held to account,” stated David J. Hale, United States Attorney for the Western District of Kentucky.
According to the settlement agreement, the United States contends that Trover Foundation Clinic, Inc., d/b/a Trover Health System, submitted Diagnosis-related Group (DRG) claims to Medicare for certain kyphoplasty procedures performed between May 1, 2001, and July 31, 2009, as inpatient procedures when, in fact, they should have been billed as outpatient procedures. Kyphoplasty is a minimally-invasive surgery used to treat compression fractures of the spine. The device kits used in the procedure are manufactured and marketed by Medtronic Spine LLC, formerly known as Kyphon, Inc. In most cases, the procedure is done on an elective basis and requires only two hours of observation following surgery, and hence can often be done on an outpatient basis. However, Trover Health Systems often incorrectly billed these procedures to Medicare as an inpatient level of service, which reimbursed at a higher rate.
Relators Charles Bates and Craig Patrick filed a qui tam action on May 29, 2008, in the United States District Court for the Western District of New York. They will receive $203,496 of the settlement proceeds.
This agreement is neither an admission of liability by Trover Health System nor a concession by the United States that its claims are not well-founded.
This investigation was handled by Assistant United States Attorney Benjamin S. Schecter along with the United States Attorney’s Office for the Western District of New York and the Commercial Litigation Branch for the Department of Justice.
Title of the news release goes hereRead the Press Release
Jacksonville, Florida - United States Attorney Robert E. O'Neill announced today that John Charles Stevenson (45, Rincon, Georgia) has been indicted by a federal grand jury, in Jacksonville, on child pornography charges. Stevenson is charged with two counts of receiving child pornography over the Internet. He faces a mandatory minimum sentence of 5 years, up to 20 years in prison and a $250,000 fine.
Stevenson was arrested in Rincon, Georgia on June 21, 2013 and remains in the custody of the U.S. Marshals Service pending a detention hearing on July 11, 2013, at the U.S. Courthouse in Jacksonville.
According to the indictment, on two separate occasions, Stevenson knowingly received visual depictions of a minor engaged in sexually explicit conduct via the Internet.This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Thornton Man Pleads Guilty and Is Sentenced for Assaulting A Spirit Airlines Flight AttendantRead the Press Release
DENVER – Evan Nathaniel Castle, age 24, of Thornton, Colorado, pled guilty to and was sentenced yesterday for misdemeanor assault of a Spirit Airlines flight attendant, United States Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced.
On April 8, 2013, Castle was a passenger on Spirit Airlines Flight 562 en route from Las Vegas, Nevada to Denver International Airport. During the flight Castle was served several alcoholic drinks. He then became loud and used profane language, and he physically harassed one of the flight attendants.
As a result of his conduct, Castle was sentenced to serve 2 years’ probation and ordered to attend alcohol counseling by U.S. Magistrate Judge Craig B. Shaffer.
This case was investigated by the Federal Bureau of Investigation (FBI).
Castle was prosecuted by Assistant U.S. Attorney James Allison, Chief of the U.S. Attorney’s Office Criminal Division.
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Texas Syndicate Members Convicted in Federal Court in Del RioRead the Press Release
In Del Rio, three Texas Syndicate members from Uvalde, TX, face up to life in federal prison after a federal jury convicted them last night of various violations of federal racketeering offenses committed in Uvalde, San Antonio and the surrounding areas announced United States Attorney Robert Pitman.
Jurors convicted 38-year-old Raul “Fatboy” Rodriquez, 37-year-old Mike “Big Mike” Cassiano and 35-year-old Cristobal “Little Cris” Velasquez of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute. Evidence presented during the trial revealed that Rodriquez, Cassiano and Velasquez, along with eleven other Texas Syndicate members and associates, conspired since 2002 to commit three murders, one attempted murder, extortion, plus distribution of controlled substances.
In addition to the conspiracy charge, jurors convicted:
- Rodriquez of a violent crime in aid of racketeering, namely the murder of Rogelio Mata in Uvalde, Texas on October 13, 2002, for allegedly failing to follow the rules of the Texas Syndicate;
- Velasquez of conspiracy to commit violent crime in aid of racketeering and the substantive charge of violent crime in aid of racketeering for the murder of Jose Guadalupe de la Garza on December 25, 2005, in Uvalde, Texas for allegedly disrespecting the Texas Syndicate as well as conspiracy to commit robbery in violation of the RICO statute; and,
- Cassiano, who previously held a leadership role in the criminal organization in 2005, of two counts of conspiracy to commit violent crime in aid of racketeering for the Jose Guadalupe de la Garza murder and the November 9, 2009, murder of Jesse James Polanco in Uvalde. Mr. Polanco was murdered because it was suspected he was cooperating with law enforcement.
The following 11 co-defendants are awaiting sentencing after pleading guilty prior to trial to violating the RICO statute: Sotero Rodriguez Martinez (a.k.a. “June”) of Uvalde; Chuco Mario Martinez (a.k.a. “Mariachi”) of Uvalde; Jose Andres Torres (a.k.a “Yogi”) of Uvalde; Larry Munoz, Jr. (a.k.a. “Little Larry”) of Uvalde; Brian Esparza (a.k.a. “Tata”) of Uvalde; Charles Esparza (a.k.a. “Horse”) of Uvalde; Ervey Sanchez (a.k.a. “Mad Max”) of Uvalde; Inez Mata (a.k.a. “Bebito”) of Uvalde; Mark Anthony Vela of Hondo, Texas; Mario Alberto Gonzales (a.k.a. “The Enforcer”) of Hondo; and, Charles Olan Quintanilla of Hondo.
In a separate, but related matter, on June 20, 2013, a federal jury in Del Rio returned guilty verdicts against Eli Torres and Alfredo Tapia III, the last two defendants involved in a narcotics distribution ring operating in Hondo, Uvalde, San Antonio and the surrounding areas. This narcotics distribution ring was connected to and associated with the Texas Syndicate prison gang.
Jurors convicted 37-year-old Eli Torres of Uvalde of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from August 1, 2009, until September 28, 2011. Evidence presented at trial revealed that Torres, as a member of the Texas Syndicate, participated in this drug distribution ring by using the organization’s drug distribution connections to aid him in obtaining cocaine to sell on the streets of Uvalde. Torres faces between ten years and life in federal prison for this conviction. Torres was also found guilty of possession with the intent to distribute 500 grams or more of cocaine within 1,000 feet of the Sacred Heart Parish School in Uvalde. As a result, he faces between five and 80 years in prison for this conviction. Torres, who remains in federal custody, awaits sentencing scheduled for December 16, 2013.
Jurors also convicted 42-year-old Alfredo “Naco” Tapia, III, of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from August 1, 2009, until September 28, 2011. He was also found guilty of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana from August 1, 2009 until September 28, 2011. Tapia faces between five and 40 years in federal prison for each conviction. Evidence presented at trial revealed that Tapia was associated with members of the Texas Syndicate prison gang and facilitated their distribution of cocaine and marijuana.
The other members of the conspiracy listed below are all awaiting sentencing after entering guilty pleas prior to trial. They include: Jose Alberto Ruiz (a.k.a. “Spike”), of Uvalde; Calletano Nira (a.k.a. “Cat) of Hondo; Joshua Leonard Benavides of Hondo; Ted Benavides (a.k.a. “TJ”) of Hondo; Jessica Escareno of Hondo; Ruben Dominguez of Hondo; Sandra Torres of Uvalde; Jaime Corona, Jr., of Hondo; John Khosravi of San Antonio; and, former Bandera County Sheriff’s Deputy Thomas Cuellar of Hondo. On April 2, 2013, Cuellar pleaded guilty to one count of unlawful use of a government computer and one count of possession with intent to distribute cocaine. By pleading guilty, Cuellar admitted that on August 31, 2010, he unlawfully accessed a department computer in order to obtain law enforcement information regarding co-conspirators. As a result, Cuellar faces up to twenty years in federal prison on the drug charge and up to five years in federal prison on the unlawful access charge. Only Cuellar and Sandra Torres are currently on bond pending sentencing; all other defendants remain in federal custody.
These prosecutions resulted from a joint investigation by the Federal Bureau of Investigation with the Texas Department of Public Safety--Criminal Investigations Division, San Antonio Police Department, Medina County Sheriff’s Office and the Bandera County Sheriff’s Office. Also assisting in the investigation was the 38th Judicial District Adult Probation Gang Unit, Texas Department of Criminal Justice and the U.S. Bureau of Prisons. The U.S. Marshals Service, U.S. Immigration and Customs Enforcement-Customs and Border Protection and the Uvalde County Sheriff’s Department assisted in making the arrests. These cases were prosecuted by Assistant United States Attorneys Erica Giese, Ralph Paradiso and Patrick Burke.
Ten Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
ELKINS, WEST VIRGINIA - Ten individuals were recently sentenced in United States
District Court in Elkins by Chief Judge John Preston Bailey.United States Attorney William J. Ihlenfeld, II, announced that:
CHRISTOPHER WAYNE WILLIAMS, age 39, of Mill Creek, West Virginia, was sentenced to 70 months imprisonment to be followed by three years of supervised release. WILLIAMS entered a plea of guilty on April 17, 2013, to “Felon in Possession of a Firearm.” WILLIAMS possessed a firearm on March 15, 2013, despite having a prior felony conviction from the Circuit Court of Cabell County for Burglary. WILLIAMS’ sentence was enhanced due to his possession of stolen firearms in connection with the offense of burglary. WILLIAMS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the
Bureau of Alcohol, Tobacco, Firearms and Explosives.WILLIAM JOSEPH RUSSELL, age 39, of Cass, West Virginia, was sentenced to 60 months imprisonment to be followed by three years of supervised release. RUSSELL entered a plea of guilty on February 7, 2013, to “Possession of Material Used in the Manufacture of Methamphetamine.” RUSSELL, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the West Virginia State Police and the Pocahontas County Sheriff’s Office
VELAIR VON COLLINS, II, age 42, of Elkins, West Virginia, was sentenced to 57 months imprisonment to be followed by three years of supervised release. COLLINS entered a plea of guilty on March 27, 2013, to “Felon in Possession of a Firearm.” COLLINS, having previously been convicted in the Circuit Court of Randolph County, West Virginia, of the felony offense of Driving Under the Influence-Third Offense, knowingly possessed a Harrington & Richardson shotgun and a Marlin rifle on September 4, 2012, in Elkins. COLLINS, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the Elkins Police Department and the West Virginia State Police.
These two cases were prosecuted by Assistant United States Attorney Stephen D. Warner.
TIMOTHY WAYNE WALDEN, age 36, of Bayard, West Virginia, was sentenced to
41 months imprisonment to be followed by 20 years of supervised release. WALDEN entered a plea of guilty on April 16, 2013, to “Failure to Update Sex Offender Registration.” From November 12, 2012, to January 17, 2013, in Bayard, West Virginia, WALDEN knowingly failed to update a registration pursuant to the Sex Offender Notification Act. WALDEN was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the United States Marshals Service.RONALD JOHN LOUK, age 30, of Churchsville, Virginia,was sentenced to 37 months imprisonment to be followed by 20 years of supervised release. LOUK entered a plea of guilty on March 27, 2013, to “Failure to Update Sex Offender Registration.” During the period October 20 to November 21, 2012, LOUK, a person required to register under the Sex Offender Notification Act and who traveled in interstate commerce, did knowingly fail to update his registration. LOUK was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the United States Marshals Service and the West Virginia State Police.
These two cases were prosecuted by Criminal Chief Shawn A. Morgan.
BRANDON EDWARD ANDERSON, age 23, of Rock Cave, West Virginia, was sentenced to 37 months imprisonment to be followed by three years of supervised release. ANDERSON was also ordered to make restitution in the amount of $2,496 to the Drug Enforcement Administration for the meth lab clean up. ANDERSON entered a plea of guilty on April 16, 2013, to two counts of “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” ANDERSON was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the West Virginia State Police.
BRIAN KEITH HAMMER, age 51, of Elkins, was sentenced to 15 months imprisonment to be followed by three years of supervised release. HAMMER entered a plea of guilty on December 11, 2012, to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” HAMMER, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the Randolph County Sheriff’s Department and the West Virginia State Police.
These two cases were prosecuted by Assistant United States Attorney Stephen D. Warner.
JANEL PHILLIPS, age 45, of Belington, West Virginia, was sentenced to 10 months imprisonment, with the first 5 months being served in the custody of the Bureau of Prisons and the second 5 months being served under home detention. PHILLIPS was also ordered to make restitution in the amount of $85,327.74 to Legal Aid of West Virginia. PHILLIPS entered a plea of guilty on March 27, 2013, to “Federal Program Fraud.” From January of 2007 to May of 2010, PHILLIPS, while working as a ombudsman for Legal Aid of West Virginia, submitted false mileage claims and time sheets to fraudulently obtain over $90,000 from the federally funded Long-Term Care Ombudsman Fund. PHILLIPS, who is free on bond, will self-report to the designated Federal institution. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Department of Health and Human Services and the Legal Services Corporation-Office of Inspector General.
TIFFANY ROACH, age 24, of Lewis County, West Virginia, was sentenced to 5 years probation. ROACH entered a plea of guilty on December 13, 2012, to “Providing a False Statement to a Federal Firearms Licensee in the Acquisition of a Firearm”. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Weston Police Department.
HUNTER TURNER, age 20, of Circleville, West Virginia, was sentenced to 5 years probation. TURNER entered a plea of guilty on July 9, 2012, to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” TURNER completed a drug rehabilitation program at the Anthony Center while waiting for his sentencing hearing. This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia State Police and the United States Forest Service/Homeland Security Investigations.
Solar Technology Research Scientist Pleas Guilty to Wire FraudRead the Press Release
PHILADELPHIA - Tung Pham, 48, pled guilty on July 1st, 2013 to seven counts of an indictment that charged him with wire fraud and theft of trade secrets. Mr. Pham pled guilty to the wire fraud charges, and agreed that when calculating his Sentencing Guidelines, the court could consider the theft of trade secret charges. Mr. Pham entered his guilty plea before U.S. District Judge Anita Brody, who scheduled a sentencing hearing for November 6, 2013. Pham faces a maximum penalty of 140 years in prison.
Mr. Pham worked as a research scientist in the solar technology field. The wire fraud charges involved an attempt by Mr. Pham to escape a non-compete clause in his employment contract that prevented him from working for any competitor for a period of one year. Mr. Pham had signed an agreement with a start-up Chinese company to work in the same area as he was already working. The wire fraud charges involved his efforts to create a fake employment contract that he could show to his employer to get out of the non-compete agreement. The theft of trade secret charges involved his taking the product formulas for existing, successful solar technology products from his employers. At the time that the FBI executed a search warrant on Mr. Pham’s home and found the trade secrets, he was planning to leave a few days later for China to start working for his new employer.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael L. Levy.
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PATTY HARTMAN, Media Contact, 215-861-8525Six Members of Drug Ring Sentenced to Lengthy Prison Sentences Following Guilty Pleas to Narcotics and Money Laundering Charges- Members Operated in Southeast Washington and at Other Locations -Read the Press Release
WASHINGTON Six area men have been sentenced to prison terms on federal narcotics and money laundering charges, stemming from their roles in a ring that distributed significant amounts of cocaine in the Washington, D.C. metropolitan area, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
The defendants include Robert Savoy, 41, of Fort Washington, Md.; James Brown, 42, of Washington, D.C.; Terrence Hudson, 39, of Oxon Hill, Md.; Jerome Johnson, 41, of Capitol Heights, Md.; Nathan Robinson, 40, of Washington, D.C.; and Eric Scurry, 41, also of Oxon Hill, Md. All previously pled guilty in the U.S. District Court for the District of Columbia. The last of the six defendants was sentenced this morning.
The men were arrested during a long-term investigation by the FBI/MPD Safe Streets Task Force into a criminal organization supplying street-level dealers with significant quantities of powder cocaine and crack cocaine for distribution in the Washington, D.C. metropolitan area. In particular, members of this organization distributed powder cocaine and crack cocaine in the 4200 and 4300 blocks of Fourth Street SE. They also distributed narcotics in other areas of Washington, D.C., and Maryland.
During the course of the investigation, agents and detectives seized multiple handguns, more than a kilogram of powder cocaine, large quantities of crack cocaine, and over $40,000 in cash. Savoy, Hudson and Robinson were arrested on Nov. 10, 2010; Johnson and Scurry were arrested on Dec. 17, 2010; and Brown was arrested on Sept. 15, 2011. All six defendants were detained following their arrests and have remained in custody since that time.
Johnson and Brown pled guilty on Sept. 7, 2012. Savoy, Hudson and Scurry pled guilty on Sept. 10, 2012, and Robinson pled guilty on Sept. 12, 2012. All of the defendants entered the pleas before the Honorable Chief Judge Royce C. Lamberth.
According to evidence presented at the plea hearings, Johnson supplied Savoy with kilograms of cocaine. In turn, Savoy supplied large quantities of cocaine to Brown and Hudson, among others. Savoy also supplied large quantities of cocaine base to other individuals throughout the Washington, D.C., metropolitan area.
Brown and Hudson supplied these narcotics to others. At times, Hudson coordinated his narcotics sales with Scurry and Robinson, who both distributed large quantities of cocaine base in the 4200 and 4300 blocks of Fourth Street, SE, among other places. Robinson would also coordinate his narcotics sales with Scurry.
Chief Judge Lamberth accepted the terms of the plea agreements and sentenced Savoy to a prison term of 17 years, Scurry to a prison term of 12 years, Hudson to a prison term of 10 years, Johnson and Robinson to prison terms of eight years, and Brown to a prison term of seven years. Hudson was sentenced on Nov. 27, 2012; Robinson was sentenced on Nov. 29, 2012; Brown and Scurry were sentenced on Nov. 30, 2012; Savoy was sentenced on June 4, 2013, and Johnson was sentenced today.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The Safe Streets Initiative involves more than 150 Safe Streets Task Forces around the country that combat street gangs by combining federal, state and local police resources.
In announcing the sentences, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier commended the actions of the Special Agents from the FBI’s Washington Field Office, as well as the actions of other MPD members of the Safe Streets Task Force. They also commended the support provided by U.S. Attorney’s Office employees, including Paralegals Regan Gibson and Candace Battle; Legal Assistants Candace Cisco and Diane Brashears; Criminal Intelligence Analyst Frank Morgan, and Information Technology Specialists Kimberly Smith, Paul Howell, and William Henderson.
Finally, they praised the efforts of Assistant U.S. Attorneys Arvind Lal and Opher Shweiki, who investigated and prosecuted the case, Assistant U.S. Attorney Zia Faruqui, who assisted with the money laundering and asset forfeiture issues, and Assistant U.S. Attorney Fernando Campoamor-Sanchez and former Special Assistant U.S. Attorney Les Gross, who assisted in the investigation.
13-237Several Arrested in Large Scale Methamphetamine ConspiracyRead the Press Release
HOUSTON – An extensive methamphetamine trafficking organization has been dealt a large blow with the indictment of eight individuals on federal drug conspiracy charges, United States Attorney Kenneth Magidson announced today. The indictment, returned under seal June 5, 2013, arose as a result of a two-year investigation culminating in arrests this morning.
“The illegal distribution of methamphetamine especially in the quantities involved in this case receive the fullest attention of the investigative efforts of our joint federal, state and local law enforcement partners.” said Magidson. “It will always be a priority to prosecute major drug trafficking within the Southern District of Texas.”
Among those arrested was Edmundo Reyes aka “Mundo” or “Bossman,” a 34-year-old from Spring who is facing six counts of drug possession and conspiracy. Four others were also taken into custody today - Gerardo Garcia, 34, Delfino Maldonado, 30, Christopher Mejia, 22, and Alexander Reyes, 30, all of Houston. These five made their initial appearances before U.S. Magistrate Judge George Hanks just a short time ago, at which time the indictment was unsealed by order of the court.
Charged and previously in custody are Jeremy Perkins, 32, of Louisiana, and Refugio Ibarra, 26, of Mexico. They are expected to be transferred into federal custody to make their initial appearances in the near future.
An eighth defendant, Salvador Izaguirre, 31, of Houston, is also charged but not as yet in custody. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 713-718-4800.
The seven-count indictment alleges the eight men conspired with one another and others known and unknown from February 2009 through June 2013 to distribute methamphetamine. Reyes is charged in five additional substantive drug trafficking counts. Each of the remaining defendants is also charged in at least one additional substantive count of possessing with intent to distribute various quantities of methamphetamine.
In addition to the arrests today, agents and task force officers executed search warrants at four separate residences, which resulted in the seizure of eight vehicles, more than $30,000, approximately nine ounces of methamphetamine and multiple firearms. The seizures occurred pursuant to forfeiture warrants authorizing the recovery of property alleged to have been purchased with the proceeds of illegal narcotics sales.
If convicted of the conspiracy charge, all defendants face a mandatory minimum of 10 years and up to life imprisonment as well as a $10 million fine. All substantive counts carry an equal or lesser possible sentence depending upon the amount of drugs involved.
The investigation was conducted by the Drug Enforcement Administration, Texas Department of Public Safety Narcotics Division, Houston Police Department and the USMS. Assistant United States Attorneys Mark E. Donnelly and Tim S. Braley are prosecuting.
Several Arrested in Large Scale Methamphetamine ConspiracyRead the Press Release
HOUSTON – An extensive methamphetamine trafficking organization has been dealt a large blow with the indictment of eight individuals on federal drug conspiracy charges, United States Attorney Kenneth Magidson announced today. The indictment, returned under seal June 5, 2013, arose as a result of a two-year investigation culminating in arrests this morning.
“The illegal distribution of methamphetamine especially in the quantities involved in this case receive the fullest attention of the investigative efforts of our joint federal, state and local law enforcement partners.” said Magidson. “It will always be a priority to prosecute major drug trafficking within the Southern District of Texas.”
Among those arrested was Edmundo Reyes aka “Mundo” or “Bossman,” a 34-year-old from Spring who is facing six counts of drug possession and conspiracy. Four others were also taken into custody today - Gerardo Garcia, 34, Delfino Maldonado, 30, Christopher Mejia, 22, and Alexander Reyes, 30, all of Houston. These five made their initial appearances before U.S. Magistrate Judge George Hanks just a short time ago, at which time the indictment was unsealed by order of the court.
Charged and previously in custody are Jeremy Perkins, 32, of Louisiana, and Refugio Ibarra, 26, of Mexico. They are expected to be transferred into federal custody to make their initial appearances in the near future.
An eighth defendant, Salvador Izaguirre, 31, of Houston, is also charged but not as yet in custody. Anyone with information about his whereabouts is asked to contact the U.S. Marshals Service at 713-718-4800.
The seven-count indictment alleges the eight men conspired with one another and others known and unknown from February 2009 through June 2013 to distribute methamphetamine. Reyes is charged in five additional substantive drug trafficking counts. Each of the remaining defendants is also charged in at least one additional substantive count of possessing with intent to distribute various quantities of methamphetamine.
In addition to the arrests today, agents and task force officers executed search warrants at four separate residences, which resulted in the seizure of eight vehicles, more than $30,000, approximately nine ounces of methamphetamine and multiple firearms. The seizures occurred pursuant to forfeiture warrants authorizing the recovery of property alleged to have been purchased with the proceeds of illegal narcotics sales.
If convicted of the conspiracy charge, all defendants face a mandatory minimum of 10 years and up to life imprisonment as well as a $10 million fine. All substantive counts carry an equal or lesser possible sentence depending upon the amount of drugs involved.
The investigation was conducted by the Drug Enforcement Administration, Texas Department of Public Safety Narcotics Division, Houston Police Department and the USMS. Assistant United States Attorneys Mark E. Donnelly and Tim S. Braley are prosecuting.
San Gabriel Valley Teacher Indicted for Child Exploitation OffensesRead the Press Release
LOS ANGELES -- A teacher at Royal Oak Middle School in Covina, who was arrested last month following an undercover sting in his classroom, was indicted today for child exploitation offenses.
John David Boyle, 49, of Glendora, who is detained pending trial based on a Court finding that he is a danger to the community, has been charged in a six count indictment. The indictment charges Boyle with enticement of a minor to engage in criminal sexual activity over the Internet, which allegedly resulted in the molestation of a 14-year-old boy. Boyle has also been charged with advertisement of child pornography on the Internet, as well as distribution, receipt, attempted receipt, and possession of child pornography.
“Crimes against children violate the most vulnerable among us,” said United States Attorney André Birotte Jr. “This case demonstrates the need for constant vigilance - both online and in our schools – to protect our children and preserve our future generations.”
After communicating with a U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agent in an Internet chat room, the teacher invited the agent -- who had been acting in an undercover capacity -- to meet on school premises to view and trade child pornography.
According to the indictment and complaint in this matter, during the course of HSI's investigation, Boyle is alleged to have engaged in online chats with an undercover agent, believing that the agent shared his sexual interest in young boys. Boyle then set up an in-person meeting in his middle school classroom on Sunday, June 2, 2013, for the purpose of engaging in sexual activity while watching child pornography. When the undercover agent arrived for the meeting and presented Boyle with what he believed was a thumb drive containing child pornography, Boyle took possession of it. At that time, additional HSI agents entered the classroom, interviewed Boyle, and seized his digital devices containing alleged child pornography. Shortly thereafter, Boyle was arrested and charged in a criminal complaint with distributing child pornography. Upon further investigation, HSI agents were able to identify a 14-year-old boy victim of Boyle's unlawful sexual contact -- as alleged in Count One of the Indictment.
“We entrust teachers to serve as role models for our children and safeguard their welfare,” said Claude Arnold, Special Agent in Charge for HSI Los Angeles. “HSI is particularly vigorous in pursuing these kinds of cases because our experience has shown that, in many instances, those who collect and distribute child pornography are also hands-on offenders.”
Boyle is due in court on Tuesday, July 11, 2013 for his post-indictment arraignment. If convicted of the charges in the Indictment, Boyle faces a maximum possible penalty of life in prison.
Anyone with information about this matter is encouraged to call HSI's toll-free tip line at 1-866-DHS-2ICE (1-866-347-2423) or submit information using HSI's online tip form at http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
A criminal complaint and Indictment contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The investigation into Boyle is being conducted by HSI and the Internet Crimes Against Children ("ICAC") Task Force.
Release No. 13-092
San Fernando Valley Woman Sentenced to 5 Years in A Multi-Million Dollar Real Estate Ponzi SchemeRead the Press Release
LOS ANGELES - A San Fernando Valley real estate agent and self-described real estate investor was sentenced yesterday afternoon to five years in federal prison and remanded into custody for her offenses.
Celia Gallardo, 42, of North Hills, was sentenced in the fraud case by United States District Court Judge Dean D. Pregerson.
During the sentencing hearing, Judge Pregerson described the fraud as a "pure rip off" and cited the need for punishment as a deterrent. He stated that the victims present at the sentencing had the right to see Gallardo be remanded into custody.
Gallardo pleaded guilty in October 2012 to wire fraud, admitting in court that that she defrauded investors from September 2007 through September 2008 by falsely promising them high rates of return for investing in her purported real estate program.
Gallardo admitted that instead of investing victims' money in real estate transactions, she spent the vast majority of the money on house payments, foreign luxury travel, cash withdrawals, and Ponzi-syle payments to earlier investors.
Judge Pregerson also ordered Gallardo to pay $2.389 million in restitution to dozens of victims, who primarily resided in California and Arizona.
The case against Gallardo resulted from an investigation conducted by the Federal Bureau of Investigation.
Release No. 13-091
Richland County Man Indicted on Methamphetamine Related ChargesRead the Press Release
Lafe A. Willis, 28, of Olney, IL, was indicted on June 18, 2013, on methamphetamine related charges in an Indictment returned by a Federal Grand Jury sitting in East St. Louis, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Willis was charged in a two count indictment. Count 1 charges that from on or about January 2011, to on or about December 2012, in Richland County, Illinois, Willis conspired with others known and unknown to the Grand Jury, to knowingly and intentionally possess pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine. Count 2 charges that from on or about July 24, 2009, to on or about May 14, 2013, in Richland County, Willis did knowingly and intentionally possess pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine.
With respect to each count, Willis faces up to 20 years imprisonment, up to $250,000 fine, and up to 3 years supervised release to follow incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Richland County Sheriff’s Department.
The case is being handled by Assistant United States Attorney George Norwood.
Pittsburgh Man Admits Receiving Packages of Cocaine Mailed from CaliforniaRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Richard Hayes, 32, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that on Feb. 23, 2011, U.S. postal inspectors in Pittsburgh executed a search warrant for a suspicious package mailed from Rialto, Calif., to Pittsburgh, which contained in excess of 20 pounds of marijuana. When Hayes attempted to pick up the package, he was arrested. Inside his wallet, agents found two receipts for other packages mailed from Rialto to Pittsburgh one day earlier.
On Feb. 24, 2011, inspectors located one of the other packages, secured a search warrant, and found 4½ kilograms (in excess of nine pounds) of cocaine inside. The wholesale value in Pittsburgh of nine pounds of cocaine would be between $160,000 - $180,000, with a retail or "street" value likely exceeding a half million dollars.
Judge McVerry scheduled sentencing for Oct. 10, 2013. The law provides for a total sentence of not less than five years to a maximum of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Richard Hayes.
Palm Beach County Man Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Fednol Pierre, 34, of West Palm Beach, was sentenced today to 34 months in prison, to be followed by 3 years of supervised release. Pierre was also ordered to pay $83,450.74 in restitution to the victims of his offenses. Pierre previously pled guilty to one count of theft of government money and one count of aggravated identity theft.
According to documents filed in court, on September 29, 2009, Pierre added an individual as a joint account holder to his bank account, without this individual’s knowledge or consent, using this individual’s name, Social Security number, date of birth, and driver’s license number. The following day, Pierre deposited a $22,081 tax refund check from the U.S. Treasury in the name of this individual. In the weeks following this deposit, Pierre withdrew funds from the joint account. On December 3, 2009, Pierre closed the joint account and transferred the remaining funds into his account.
Mr. Ferrer thanked USSS and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Benjamin C. Coats.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Operation Stolen Dreams Defendant Sentenced to Federal Prison for Role in Mortgage Fraud SchemeRead the Press Release
In San Antonio, 46-year-old Robert Brooks, of Lantana, TX, was sentenced to 135 months in federal prison followed by five years of supervised release and ordered to pay approximately $8.5 million restitution for his role in a mortgage fraud operation involving a series of “property flip” schemes announced United States Attorney Robert Pitman; Armando Fernandez, Special Agent in Charge of the Federal Bureau of Investigation, San Antonio Division; and, Steve McCullough, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation in San Antonio.
On January 29, 2013, a federal jury convicted Brooks of one count of conspiring to commit bank, wire and mail fraud, eight counts of mail fraud and two counts of aiding the filing of false income tax returns.
Evidence presented during trial revealed that 20 individuals, under the direction of Robert Brooks, participated in a mortgage fraud scheme from May 17, 2005, until February 21, 2008, whereby Brooks purchased properties at fair market value then resold at an artificially inflated price to straw purchasers. Brooks recruited his co-defendants–appraisers, loan processors, title company employees, straw purchasers, etc.–and provided them with kickbacks from loan proceeds for their participation in the scheme. Evidence also revealed that Brooks used the proceeds from the purported sales to various nominees to pay for his initial purchase of real estate, to pay closing costs for both his purchase and sale to the nominee, to pay the nominee’s down-payment, to pay the nominee for the nominee’s participation, and to pay the mortgage for the first 12 months, after which each mortgage went into default. Brooks’ mortgage loan scheme involved over 40 properties primarily located in the Dallas area and defrauded financial institutions in Dallas, Austin, San Antonio and Houston of over $20 million. Jurors also found that Brooks caused the submission of false 2007 income tax returns for himself and his wife, and for a partnership, which contained a false business expense.
Brooks is the only defendant in this case to be sentenced; 14 are awaiting sentencing after entering guilty pleas; and, seven are still pending trial. This case resulted from an investigation by agents from the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the government.
Operation Stolen Dreams was organized by President Obama’s interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit StopFraud.gov.
Omaha Woman Sentenced for Bank FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Toni R. Walker, 54, of Omaha, Nebraska, was sentenced by the Honorable Richard G. Kopf, United States District Judge, to 36 months imprisonment for her conviction for bank fraud. Following Ms. Walker’s release from incarceration, she will be placed on five years of supervised release. She was also ordered to pay $765,236.82 in restitution.
Ms. Walker had been the business manager for Royal Forwarding, Inc. since about 1998. From April 2005 to March, 2012, Ms. Walker forged and deposited into her own bank account a total of 169 Royal Forwarding checks which ranged in amount from about $2,000 to about $9,000. The total for all the checks is $765,236.82.
This case was investigation by the Sarpy County Sheriff’s Office and the Federal Bureau of Investigation.
New Kensington Man Sentenced to Prison for Possessing Sexual Images of ChildrenRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County has been sentenced in federal court to 28 months imprisonment, to be followed by 10 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on James Robert Gilmore, Jr., 27.
According to information presented to the court, on or about April 27, 2012, Gilmore possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the Allegheny County Police for the investigation leading to the successful prosecution of Gilmore.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nampa Man Sentenced for Possessing Sawed-off ShotgunRead the Press Release
BOISE – Safet Miljkovic, 34, of Nampa, Idaho, was sentenced today in United States District Court to 37 months in prison followed by three years of supervised release for possessing an unregistered firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Miljkovic to forfeit the firearm.
On April 11, 2013, Miljkovic pleaded guilty to count one of the indictment filed on December 11, 2012. At the hearing, Miljkovic admitted that on July 25, 2012, he knowingly possessed a 12-gauge slide-action shotgun with a barrel measuring less than 18 inches in length. Miljkovic’s possession of the firearm was unlawful because it was a sawed-off shotgun and was not registered to him in the National Firearms Registration and Transfer Record.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Multi-Kilogram Cocaine Trafficker Enters Guilty PleaRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces that Bertin Rivera, age 43, of Lumber City, Georgia, entered a plea of guilty today to conspiring to possess with the intent to distribute 382 kilograms of cocaine. The plea was entered in the United States District Court in Macon, Georgia, before the Honorable C. Ashley Royal.
As part of his guilty plea, Rivera stipulated that on September 12, 2012, he orchestrated the shipment of 382 kilograms of cocaine from a warehouse in Atlanta, Georgia to his residence in Lumber City, Georgia. The drugs were concealed in boxes of tomatoes. Federal and local authorities executed a search warrant at the residence. The search uncovered 191 kilograms of cocaine inside the tomato boxes and 191 kilograms buried in a plastic container on land adjacent to Rivera’s property. The wholesale value of the drugs is estimated to be ten million dollars.
Rivera faces a maximum statutory penalty of a mandatory minimum of ten years up to a maximum of life in prison without parole. Sentencing is expected to take place on September 17, 2013.According to the United States Attorney, this is the largest single seizure of cocaine in the district in the last 20 years.
“Taking drugs off the street and putting drug dealers in jail remains a top priority for us. The people of Middle Georgia should feel good that the 191 kilograms of cocaine that were seized will never make it into the hands of our children,” said U.S. Attorney Michael Moore.
The case was investigated by the DEA, Department of Homeland Security, and the Lumber City Police Department. The case was prosecuted by Assistant United States Attorney Charles L. Calhoun.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Montgomery County Crack Dealer Sentenced to 20 Years in PrisonRead the Press Release
Frequently Distributed Crack in Grocery Stores, Restaurants and Other Public Places
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Kevin Anthony Walker, age 43, of Germantown, Maryland, today to 20 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute crack cocaine. Judge Titus also ordered Walker to pay a fine of $7,000, and to forfeit $5,800 in cash and jewelry seized from his residence on December 9, 2011, as well as two vehicles.
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 Chief J. Thomas Manger of the Montgomery County Police Department.
According to Walker’s guilty plea, he was part of a conspiracy to distribute crack cocaine in and around Germantown, Maryland, from April 2011 through November 10, 2011. During the conspiracy, Walker purchased powder cocaine from sources of supply, which he then converted into crack cocaine. Walker had co-conspirators drive him to distribute crack cocaine to his customers, often in public places like grocery stores, drug stores, and fast food restaurants. To further his drug trafficking, Walker had others put apartments and automobiles in their names for Walker’s use. During the conspiracy, law enforcement intercepted calls to and from one of Walker’s cell phones and overheard Walker on a number of occasions arranging to purchase powder cocaine, to distribute crack cocaine and directing others to distribute crack on his behalf.
On December 9, 2011, law enforcement executed a search warrant at Walker’s residence and recovered 152 grams of crack cocaine, six grams of powder cocaine, drug paraphernalia, drug ledgers, and $5,800 in cash. Law enforcement also seized three watches, two rings, a bracelet, and a necklace appraised at $27,000, all of which were purchased with drug proceeds.
United States Attorney Rod J. Rosenstein commended the DEA and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Minnesota Man Pleads Guilty to Engaging in a Sex Trafficking ConspiracyRead the Press Release
The Justice Deparment announced today that Andre James Hertzog, 29, of St. Paul, Minn. pleaded guilty to participating in a sex trafficking conspiracy. Hertzog pleaded guilty in U.S. District Court for the District of Minnesota.
During his plea hearing, Hertzog admitted that from April 2011 to August 2012, he and a co-conspirator, Nicole Bramer, of St. Paul, Minn., engaged in a scheme to recruit two young women and compel them to engage in commercial sex acts. Working together, Hertzog and the co-conspirator used coercive tactics, including physical violence and psychological coercion, to isolate the victims and cause them to engage in commercial sex acts. Hertzog further admitted that his co-conspirator transported the older victim across state lines for the purpose of having her engage in commercial sex acts in July 2011, and that he and the co-conspirator transported the younger victim across state lines for the purpose of having her engage in commercial sex acts in July and August of 2012. The defendant admitted he knew that the co-conspirator used her computer to advertise the commercial sex services of one of the victims on the website backpage.com.
At sentencing, Hertzog faces a maximum penalty of up to life in prison on the sex trafficking conspiracy charge.
On May 29, 2013, the co-defendant, Nicole Bramer, pleaded guilty to participating in the sex trafficking conspiracy. Bramer also faces a maximum penalty of up to life in prison on the sex trafficking conspiracy charge.
“The defendants preyed upon vulnerable young women and used violence, threats, and psychological intimidation to exploit the victims and coerce them into prostitution ,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The department of Justice is committed to prosecuting those who sexually exploit vulnerable women for financial benefit. I also would like to commend the FBI for its strong commitment to this effort and for its outstanding work in this case.”
“Human Trafficking often victimizes the most vulnerable among us. The FBI remains fully committed to bringing to justice those who engage in this heinous crime,” said FBI Special Agent in Charge J. Chris Warrener.
The is being investigated by the Minneapolis Field Office of the FBI and prosecuted jointly by Special Assistant U.S. Attorney Mark Kappelhoff, Trial Attorney Christine M. Siscaretti and Amanda Gregory of the Department of Justice, Civil Rights Division.
Anyone who may have information about this or any other human trafficking matter is encouraged to report that information to the Federal Bureau of Investigation at 763-569-8000. For information about human trafficking, the National Human Trafficking Resource Center’s toll-free hotline (1-888-373-7888) is available to answer calls from anywhere in the country.
Mexican National Sentenced for Drug Crime in Connection with Aryan Knights InvestigationRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Rigoberto Carrasco, 37, a Mexican national, was sentenced by U.S. District Judge Edward J. Lodge to 110 months in prison followed by five years of supervised release for conspiring to distribute methamphetamine.
Carrasco pleaded guilty to the charge on April 10, 2013. In court, Carrasco admitted that he became involved in the ongoing distribution of methamphetamine and that he agreed to assist with that distribution. Carrasco admitted that he and others were bringing methamphetamine into Idaho from outside the state. Carrasco sold the methamphetamine to other co-defendants who then distributed the methamphetamine in Idaho. Five other defendants charged in the conspiracy have already been sentenced, including Jesse Delgado, to 168 months; Lisa Samayoa, to 135 months; Nina Lucas, to 130 months; Darin Melton, to 87 months; and Omar Riveroll-Hernandez, to 60 months in federal prison.
Carrasco’s case is part of the Aryan Knights investigation in which 23 individuals were charged as a result of a long-term investigation by the Treasure Valley Metro Violent Crime Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
All 23 defendants have pleaded guilty, 18 have been sentenced, and five are awaiting sentencing.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The joint investigation also included the Organized Crime and Drug Enforcement Task Force (OCDETF), a cooperative law enforcement effort of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Massachusetts Man Pleads Guilty to Receiving Child Pornography and Providing Obscene Material to A ChildRead the Press Release
AUGUSTA, GA – Christopher Ceolinski, 38, of Blackstone, Massachusetts pled guilty today before United States District Court J. Randal Hall for receiving child pornography and transferring obscene material to a person under the age of 16. Ceolinski faces a mandatory minimum of five years imprisonment and a maximum of thirty years on the two charges. He will be required to register as a sex offender, and will be subject to a term of supervised release of between five years and life. Following the guilty plea, Ceolinski was returned to the custody of the United States Marshal Service to await sentencing.According to the evidence presented at Ceolinski’s plea hearing, in July 2011, Ceolinski, initially posing as a 20-year-old, sent an unsolicited friend request to a 15-year-old girl in Lincolnton, Georgia, which was accepted. The two began regular communications, which quickly became sexual in nature. Beginning in August 2011, Ceolinski, who had admitted his true age of 36, sent obscene images of himself to the girl over the Internet and through messaging systems. Several months later, he also sent an iPod Touch to the girl so she could send sexually explicit images of herself to him, as he requested. Ultimately, Ceolinski traveled to Georgia to secretly meet with the girl. Some time later the girl’s mother became aware of the communications, and contacted law enforcement.
When Ceolinski was arrested in Massachusetts on a federal complaint filed in Augusta, his mobile phone was found to contain illegal images of the 15-year-old victim. Ceolinski admitted to Federal Bureau of Investigation agents the length and nature of his contact with the Lincolnton girl. Ceolinski was subsequently detained and transferred to Georgia to face the charges here.
United States Attorney Edward J. Tarver stated, “This Defendant used social networking sites to locate and prey on innocent children. This type of exploitation constitutes a serious and heinous crime that results in an immeasurable, long-lasting, impact on the child. There should be no doubt that the United States Attorney’s Office will prosecute those who promote and facilitate these crimes, as there is no higher priority within the Department of Justice than to protect our Nation’s children. ”
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.The case was the result of an investigation conducted by the Lincoln County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Nancy Greenwood prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Maryland Man Sentenced to 24 ½-Year Prison Term for Two Attacks, Including A Beating That Led to Serious Injuries-Crimes Took Place Within About Three Hours Last Summer-Read the Press Release
WASHINGTON – Tommy T. Branch, 22, of Fort Washington, Md., was sentenced today to 24 ½ years in prison for a pair of attacks last summer, including one in which a man was severely beaten with a baseball bat, U.S. Attorney Ronald C. Machen Jr. announced.
Branch was found guilty by a jury on May 1, 2013, following a trial in the Superior Court of the District of Columbia, of charges of conspiracy, aggravated assault while armed, armed robbery, assault with intent to rob, and attempted credit card fraud. Upon completion of his prison term, Branch will be placed on 11 years of supervised release.
At today’s sentencing, the Honorable Robert I. Richter said that “nothing can undo the violence that Mr. Branch chose to unleash on that night last year,” adding that the defendant’s actions “showed a coldness of heart that all the remorse in the world cannot erase.”
According to the government’s evidence, Branch and two accomplices – Sunny B. Kuti and Michael Moore - decided on Aug. 17, 2012 to commit a robbery together. They drove to the Adams Morgan area of Northwest Washington in Branch’s car. When they could not identify a suitable target, they drove to Capitol Hill and parked down an alley next to Eastern Market.
Shortly after midnight, early in the morning of Aug. 18, 2012, the three men saw the victim, Thomas “T.C.” Maslin. Mr. Maslin was walking home and at the edge of a park near Independence and North Carolina Avenues SE. During the ensuing robbery, Mr. Maslin raised his hands and said that all he had was a phone and bank card. As the robbery continued, Kuti struck Mr. Maslin in the side of the head with a BB gun, temporarily stunning him. Moore pushed Mr. Maslin, and Branch struck him in the side of the head with a baseball bat.
Branch and his accomplices took Mr. Maslin’s iPhone, bank card, and keys. They then drove to a gas station in the 1200 block of Pennsylvania Avenue SE, a few blocks away from the robbery scene. Branch tried to use Mr. Maslin’s bank card to buy gasoline, but the card was refused because he did not know the cardholder’s zip code.
Following this attack, Branch, Kuti, and Moore drove to the Barry Farm area of Southeast Washington where they met a fourth man, Darrin L. Beal. They then set off for the Adams Morgan area to commit a second robbery. At about 3:20 a.m., while Beal remained in the car, Branch, Moore, and Kuti, while armed with a non-functioning BB gun that resembled a real handgun, targeted three victims in an alley off of the 1800 block of 18th Street NW, violently assaulting one victim and taking a cellphone, wallet, and set of keys from another.
Mr. Maslin was found, unconscious, by police at about 8:15 a.m. on Aug. 18, 2012, on the front porch of a rowhouse in the 700 block of North Carolina Avenue SE. He had a massive fracture to his skull and bleeding throughout the brain cavity due to the blow from the bat.
Moore, 19, of Washington, D.C., pled guilty to charges for his role in the crimes and is awaiting sentencing. Kuti, 18, of Washington, D.C., and Beal, 25, of Washington, D.C., are awaiting trial. Both have pled not guilty to charges.
“Throughout this process, our prosecutors have been overwhelmed by the number of citizens who have come forward to show support for T.C. Maslin and his young family,” said U.S. Attorney Machen. “That outpouring of support demonstrates the power of our community to come together and rise above the most brutal acts of violence. I hope that today's sentence will allow Mr. Maslin, his family, and the entire Capitol Hill community -- as well as the other two victims of this defendant's attacks -- to continue the healing process.”
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas P. Swanton of the First District Prosecution team.
13-238Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of Former Vice President of High-End Jewelry Company for Stealing over $1 Million of JewelryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), today announced the arrest of INGRID LEDERHAAS-OKUN, a former Vice President of Product Development at a high-end jewelry company, for stealing over $1.3 million worth of jewelry from her former employer. LEDERHAAS-OKUN was arrested this morning at her residence in Darien, Connecticut, and will be presented in Manhattan federal court later today before U.S. Magistrate Judge James C. Francis.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ingrid Lederhaas-Okun went from a Vice President at a high-end jewelry company to jewel thief. She abused her access to valuable jewelry in order to steal and then resell over one million dollars’ worth of items that she falsely represented as her own, as the complaint describes. Her arrest shows that no matter how privileged their position in a company, employees who steal will face the full consequences of the law.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Ingrid Lederhaas-Okun took advantage of the access her employment afforded her to expensive jewelry. She allegedly stole numerous items, sold them for over a million dollars, then engaged in a series of lies in an attempt to cover up the theft. A privileged position in a prestigious company does not insulate a thief from arrest and prosecution.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
From at least January 2011 until February 2013, LEDERHAAS-OKUN worked as a Vice President of Product Development at the midtown Manhattan headquarters of one of the world’s premier high-end jewelers (the “Jewelry Company”). Her duties and responsibilities included ensuring that product designs could be manufactured and, to that end, she had authority to check out jewelry belonging to the Jewelry Company for work-related reasons, such as to provide the jewelry to potential manufacturers to determine the cost of production.
Between November 2012 and February 2013, LEDERHAAS-OKUN abused her position and authority at the Jewelry Company to check out over 165 pieces of jewelry with a retail value of over $1.2 million, including numerous diamond bracelets, platinum or gold diamond drop and hoop earrings, platinum diamond rings, and platinum and diamond pendants. She then sold some if not all of this jewelry for $1.3 million to another company, a leading international buyer and reseller of jewelry with an office in midtown Manhattan (the “Jewelry Reseller”). The Jewelry Reseller paid for the merchandise that LEDERHAAS-OKUN had stolen either by paying her or her husband, in transactions arranged either by LEDERHAAS-OKUN or a friend working on her behalf.
In addition to this jewelry, in November 2012, following an announcement by the Jewelry Company that it was going to undertake a full physical inventory review, LEDERHAAS-OKUN also reported that approximately $1.5 million worth of jewelry which she had checked out would have to be written off. However, none of that jewelry was ever returned to the Jewelry Company, contrary to the usual practice of accounting for inventory, such as damaged jewelry, that would have to be written off because it had been rendered unusable in some way.
To conceal her theft, LEDERHAAS-OKUN made repeated false statements to the Jewelry Company. For example, after her termination in February 2013, she told the Jewelry Company that she had only recently checked out the missing jewelry in anticipation of creating a PowerPoint presentation for her supervisor, and that a draft of the presentation could be found on her office computer. However, the missing pieces of jewelry had been checked out months earlier, her supervisor was unaware of any such presentation being worked on by LEDERHAAS-OKUN, and there was no draft presentation on her computer. In addition, LEDERHAAS-OKUN claimed the jewelry in question could be found in a white envelope in her office, but a search of her office shortly after her departure did not yield any white envelope.
LEDERHAAS-OKUN, 46, of Darien, Connecticut, is charged with one count of wire fraud, which carries a maximum penalty of 20 years in prison, and one count of interstate transportation of stolen property, which carries a maximum penalty of 10 years in prison.
Mr. Bharara praised the investigative work of the FBI. Mr. Bharara also noted the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Rosemary Nidiry is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Lederhaas-Okun, Ingrid Complaint
Man Sentenced to Prison, Ordered to Pay Restitution for $1.3 Million Fraud Against His Business PartnersRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been sentenced in federal court to 71 months imprisonment, ordered to pay $1.3 million in restitution and ordered to undergo three years of supervised release on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the sentence on Neale J. Misquitta, 48.
According to information presented to the court, the defendant engaged in a scheme to defraud the businesses of which he was a part owner by filing dozens of fraudulent expense reports and vouchers over a nearly three year period from late 2005 through 2008. The expense reports and vouchers included hundreds of claims for reimbursement of business expenses that were in fact personal expenses, most often related to the construction of a new home the defendant was building in Upper St. Clair. One of the defendant's former business partners testified that Misquitta's false claims and misrepresentations had resulted in a loss of more than $1,301,528 to Key Environmental, Inc. and Field and Technical Services, LLC. The Court found that this loss amount was substantiated by an accounting firm that was hired to determine how much Misqutta had stolen from his business partners. The evidence also showed that Misquitta processed reimbursement claims for money allegedly spent by use of his own personal checks when in fact the checks were never negotiated or cashed by the supposed recipients. Among the items that Misquitta falsely vouchered to his businesses were decorative stone for the exterior of his home, fixtures, tubs and shower components for the five bathrooms, a heated driveway, fireplaces, a geothermal heating and cooling system, a $4000 door for his wine cellar, the costs of the roof and nearly $60,000 worth of electrical work on his new home.
The Court specifically found that a document that Misquitta had tried to enter in to evidence, that supposedly showed that his partners were aware of and approved of his billing personal expenses to the businesses, was a fabricated document made up to support a defense that was contradicted by the evidence presented to the jury. The Court also noted that the jury specifically found that Misquitta had intended to defraud his business partners.
Assistant United States Attorney James R. Wilson prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Misquitta.
Man Charged with Making False StatementsRead the Press Release
A grand jury returned a two-count indictment charging Cleven Thomas, aka Cleveland Thomas, age 69, with one count of making false statements in application for a passport and one count of making false statements to a federal agency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about January 28, 2013, Thomas knowingly and willfully made false statements on a passport application, including his failure to disclose his use of multiple birth dates and Social Security Account Numbers, his prior marriage, and his prior divorce.
The indictment also alleges that on or about May 30, 2013, Thomas made a material false statement to special agents of the United States Department of State, Bureau of Diplomatic Security in that he claimed his passport application was true and accurate.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the United States Department of State, Bureau of Diplomatic Security.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Madison Resident Convicted of Drugs and Firearms OffensesRead the Press Release
TALLAHASSEE, FLORIDA– Johnny Curtis Bedgood, 46, of Madison, Florida was convicted today by a federal jury on charges that he possessed powder cocaine and more than 28 grams of crack cocaine with intent to distribute, that he possessed firearms in furtherance of the drug trafficking offense, and that he possessed firearms after felony convictions, according to the United States Attorney’s Office for the Northern District of Florida.
The charges against Bedgood were based upon a search warrant executed in Madison on August 16, 2012. Law enforcement seized more than 90 grams of crack cocaine, more than 100 grams of powder cocaine, two loaded handguns, drug ledgers, and a variety of drug paraphernalia from Bedgood’s Madison residence.
The search warrant was based upon a controlled buy of crack cocaine from Bedgood on August 1, 2012. During that deal, the informant made a video of Bedgood cooking powder cocaine into crack cocaine.
Officers seized a small amount of marijuana and $11,150 in cash when they arrested Bedgood on March 5, 2013, after Bedgood had been a fugitive for more than six months.
The two-day trial was held before United States District Judge Robert L. Hinkle. Sentencing is scheduled for September 26, 2013. Bedgood faces from ten years up to life in prison for the drug offense, a mandatory consecutive term from five years up to life in prison for possessing a firearm in furtherance of the drug offense, and from fifteen years up to life in prison for possession of a firearm by a convicted felon, as well as fines, terms of supervised release, and special monetary assessments.
United States Attorney Pamela C. Marsh, credited the successful prosecution to the joint efforts of the Madison County Sheriff’s Office, the Taylor County Sheriff’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshal’s Service. Assistant U.S. Attorney Michael T. Simpson is prosecuting this case.Lexington Man Indicted on Child Pornography ChargesRead the Press Release
A federal grand jury returned a three-count indictment charging Peter J. Schmidt, age 26, of Lexington, Ohio, with producing, distributing and possessing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges on or about July 7, 2006, and July 8, 2006, Schmidt used, persuaded, induced, enticed and coerced a minor, to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate and foreign.
The indictment also charges that on or about March 11, 2013, Schmidt knowingly distributed five computer image files, which files each contained a visual depiction of a real minor engaged in sexually explicit conduct.
The indictment also charges that on or about June 4, 2013, Schmidt knowingly possessed a computer disk, which contained visual depictions of real minors engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Key West Man Sentenced to Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Rick Ramsey, Monroe County Sheriff, announce that on July 1, 2013, U.S. District Judge Jose E. Martinez sentenced William J. Britt, 55, of Key West, Florida, to 18 years in prison, to be followed by a lifetime of supervised release and registration as a sex offender.
On November 8, 2012, law enforcement conducted a traffic stop on Britt’s Ford Econoline van and arrested Britt on a state warrant for possession of child pornography. During a consensual search of the van, law enforcement found a Harrington and Richardson 20 gauge shotgun that was sawed off at both the barrel and the stock. In addition, law enforcement seized numerous computers, hard drives and thumb drives during a consensual search of Britt’s recreational vehicle, located at Naval Air Station, Sigsbee Trailer Park, Key West, Florida. A forensic analysis revealed that the computers and computer-related equipment contained thousands of images and movies containing child pornography, which include minor children engaging in sexually explicit conduct.
On February 14, 2013, Britt was charged in a superseding indictment with possessing child pornography, receiving child pornography, and possessing a firearm not registered to him in the National Firearms Registration and Transfer Record. On April 17, 2013, Britt pled guilty to receiving child pornography and possessing the unregistered firearm.
Mr. Ferrer commends the investigative efforts of the Monroe County Sheriff’s Office, the Key West State Attorney’s Office, HSI, ATF, and FBI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Elina A. Rubin-Smith and Robert T. Watson.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Justice Department Reaches Settlement with Rhode Island Company to Resolve Immigration-related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it has reached an agreement with Vincent Porcaro Inc. (VPI) resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). VPI is a Rhode Island company that provides warehousing, distribution, light assembly and packaging for regional, national and international companies.
The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services (USCIS). The department’s investigation found that VPI, beginning in October 2012, required non-citizens to present specific U.S. Department of Homeland Security-issued documents to establish their identity and work authorization while not making similar requests of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against noncitizens in the employment eligibility verification process by demanding more or different documents than U.S. citizens are required to present.
Under the settlement agreement, VPI agreed to provide training to its human resources personnel on the INA’s anti-discrimination provision, pay $43,092 in civil penalties to the United States, create a $30,000 back pay fund to compensate individuals who suffered economic injuries as a result of VPI’s documentary practices, and be subject to monitoring by the department for a period of two years.
“Employers who create or change their employment eligibility verification policies and practices have an obligation to ensure that those changes are consistent with the anti-discrimination provision of the INA,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “The division is committed to identifying and addressing employer policies and practices that do not satisfy that obligation.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by Trial Attorney Liza Zamd. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Reaches Settlement with Rhode Island Company to Resolve Immigration-Related Unfair Employment PracticesRead the Press Release
WASHINGTON – The Justice Department announced today that it has reached an agreement with Vincent Porcaro Inc. (VPI) resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). VPI is a Rhode Island company that provides warehousing, distribution, light assembly and packaging for regional, national and international companies.
The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services (USCIS). The department’s investigation found that VPI, beginning in October 2012, required non-citizens to present specific U.S. Department of Homeland Security-issued documents to establish their identity and work authorization while not making similar requests of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against noncitizens in the employment eligibility verification process by demanding more or different documents than U.S. citizens are required to present.
Under the settlement agreement, VPI agreed to provide training to its human resources personnel on the INA’s anti-discrimination provision, pay $43,092 in civil penalties to the United States, create a $30,000 back pay fund to compensate individuals who suffered economic injuries as a result of VPI’s documentary practices, and be subject to monitoring by the department for a period of two years.
“Employers who create or change their employment eligibility verification policies and practices have an obligation to ensure that those changes are consistent with the anti-discrimination provision of the INA,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “The division is committed to identifying and addressing employer policies and practices that do not satisfy that obligation.”The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by Trial Attorney Liza Zamd. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a no-cost webinar at http://www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Jury Finds Mexican Woman Guilty in Meth ConspiracyRead the Press Release
LAREDO, Texas – Rosalva Reyna-Llamas, 30, of Monterrey, Mexico, has been found guilty on all counts as charged - conspiracy to possess with intent to distribute, possession with intent to distribute and importation of methamphetamine, United States Attorney Kenneth Magidson announced today.
Reyna-Llamas was arrested on Feb. 2, 2013, at the Gateway to the Americas Bridge International Port of Entry Bridge I in Laredo. She was driving a blue Mazda CX-7 SUV with State of Nuevo Leon, Mexico, registration. During a Customs and Border Protection (CBP) inspection, an officer discovered nine bundles of methamphetamine weighing 18.24 kilograms hidden in after-market compartments in the side rocker panels of the vehicle.
The jury heard that following her arrest, Reyna-Llamas denied knowledge of the presence of the methamphetamine. According to trial testimony of the officers and agents, she claimed the car was hers and that she wanted to stay in Laredo. However, when questioned by agents with Homeland Security Investigations (HSI), she then claimed the car was purchased for her and that she intended to go to Dallas to pick up luggage for the person who bought her the vehicle. Agents testified that she had plane tickets and a crossing history in her possession demonstrating she had made a flight from Houston to Monterrey the previous day.
U.S. District Judge Diana Saldana, who presided over the two-day trial, will set sentencing at a later date. At that time, Reyna-Llamas faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine. Reyna-Llamas has been detained since her arrest on Feb. 2, 2013, where she will remain pending that hearing.
The case was investigated by HSI and CBP. Assistant United States Attorneys Roberto F. Ramirez and Sanjeev Bhasker prosecuted the case.
Jury Finds Mexican Woman Guilty in Meth ConspiracyRead the Press Release
LAREDO, Texas – Rosalva Reyna-Llamas, 30, of Monterrey, Mexico, has been found guilty on all counts as charged - conspiracy to possess with intent to distribute, possession with intent to distribute and importation of methamphetamine, United States Attorney Kenneth Magidson announced today.
Reyna-Llamas was arrested on Feb. 2, 2013, at the Gateway to the Americas Bridge International Port of Entry Bridge I in Laredo. She was driving a blue Mazda CX-7 SUV with State of Nuevo Leon, Mexico, registration. During a Customs and Border Protection (CBP) inspection, an officer discovered nine bundles of methamphetamine weighing 18.24 kilograms hidden in after-market compartments in the side rocker panels of the vehicle.
The jury heard that following her arrest, Reyna-Llamas denied knowledge of the presence of the methamphetamine. According to trial testimony of the officers and agents, she claimed the car was hers and that she wanted to stay in Laredo. However, when questioned by agents with Homeland Security Investigations (HSI), she then claimed the car was purchased for her and that she intended to go to Dallas to pick up luggage for the person who bought her the vehicle. Agents testified that she had plane tickets and a crossing history in her possession demonstrating she had made a flight from Houston to Monterrey the previous day.
U.S. District Judge Diana Saldana, who presided over the two-day trial, will set sentencing at a later date. At that time, Reyna-Llamas faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine. Reyna-Llamas has been detained since her arrest on Feb. 2, 2013, where she will remain pending that hearing.
The case was investigated by HSI and CBP. Assistant United States Attorneys Roberto F. Ramirez and Sanjeev Bhasker prosecuted the case.
Johnson City Physicians to Pay $4.25 Million to Resolve Civil False Claims Allegations Re Unapproved Foreign DrugsRead the Press Release
GREENEVILLE, Tenn.– William R. Kincaid, M.D., Millard R. Lamb, M.D., and Charles O. Famoyin, M.D., former partners in East Tennessee Hematology-Oncology Associates, P.C., d/b/a McLeod Cancer and Blood Center (McLeod Cancer) in Johnson City, Tenn., have agreed to pay via separate settlement agreements $4.25 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for misbranded, unapproved chemotherapy drugs that were administered through the McLeod Cancer clinic.
Dr. Kincaid, the managing partner of McLeod Cancer, pleaded guilty in December 2012 to receiving misbranded drugs with intent to defraud or mislead in violation of the Food, Drug and Cosmetics Act and was sentenced on June 10, 2013, to serve 24 months in federal prison. Dr. Kincaid will also be excluded from federal health care programs for a period of 10 years. Drs. Lamb and Famoyin were minority owners and were not criminally charged. Dr. Kincaid’s portion of the civil settlement is $2.55 million; Drs. Lamb and Famoyin are each responsible for payments of $850,000.
During 2007 to early 2008 and from August 2009 to February 2012, McLeod Cancer purchased a substantial amount of chemotherapy and other drugs, specifically versions of Abraxane®, Alimta®, Avastin®, Eloxatin®, Gemzar®, Herceptin®, Rituxan®, Taxotere®, and Zometa®, from a foreign drug distributor in Canada that obtained these drugs from foreign sources. The drugs, sometimes with labeling in foreign languages or without dosage information, were not manufactured in establishments that were registered with the U.S. Food and Drug Administration (FDA). The FDA, which has responsibility for enforcing the Food, Drug and Cosmetics Act to ensure the health and safety of the American public, requires that any manufacturer or distributor of drugs in the United States be registered with and approved by the FDA. Drugs with labeling in a language other than English or from foreign sources not registered with the FDA are considered “misbranded.”
McLeod Cancer purchased the foreign drugs for amounts substantially below what drugs from legitimate U.S. drug manufacturers and distributors would have cost. Drs. Kincaid, Lamb and Famoyin administered these drugs to their patients and submitted claims for the drugs to the Medicare, TennCare, and other government health benefit programs. Since these programs do not cover such drugs, the government has alleged all of these claims violated the Federal and State False Claims Acts.
“Medical practices that administer prescription drugs from non-FDA approved foreign sources are putting patients at risk of exposure to counterfeit, contaminated, ineffective and potentially dangerous medications. This case is an example of the efforts the government will continue to make to minimize the chance of patients receiving such unsafe medication as well as to ensure that Medicare and other health benefit programs do not pay for unapproved drugs,” said U.S. Attorney Bill Killian. Attorney General Robert Cooper added: “These settlements are a product of cooperation by state and federal agencies working together to ensure that Tennesseans are protected from possibly unsafe or ineffective misbranded drugs.”
Mr. Killian noted that these settlements, as well as the earlier conviction of Dr. Kincaid, resulted from a comprehensive parallel civil and criminal investigation conducted by the FDA Office of Criminal Investigation (FDA-OCI), the Federal Bureau of Investigation (FBI), the Tennessee Bureau of Investigation (TBI), the U.S. Attorney’s Office and the Tennessee Attorney General’s Office. He commended the efforts of all who played a role in the complex investigation, including FDA-OCI Special Agent Bob West, FBI Special Agent Letitia Jones, TBI Special Agent Denise Morrissey Woodby, FBI Forensic Accountant LeAnn Lanz, Assistant U.S. Attorneys Neil Smith and Betsy Tonkin, Special Assistant U.S. Attorney Ben Cunningham, and Assistant Tennessee Attorney General Eli Swiney.
Jerome Bruce Seaman Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on July 1, 2013, before Chief U.S. District Judge Dana L. Christensen, JEROME BRUCE SEAMAN, a 61-year-old resident of Poplar, appeared for sentencing. SEAMAN was sentenced to a term of:
Prison: 6 months
Special Assessment: $300
Supervised Release: 1 year
SEAMAN was sentenced in connection with his guilty plea to theft from an Indian tribal organization receiving federal grants.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
In Fiscal Year 2010 (October 1, 2009 - September 30, 2010), the Fort Peck Community College (FPCC) received $7,357,080 in federal funding and in Fiscal Year 2011 (October 1, 2010 - September 30, 2011), the College received $8,988,437 in federal funding. These amounts included math and science grants from the National Science Foundation (NSF), and the U.S. Departments of Education and Energy.
SEAMAN was a mathematics instructor and grant administrator at the Fort Peck Community College. SEAMAN's position at the FPCC as an instructor and grant administrator provided training and meeting opportunities designed to benefit the FPCC and enhance the benefits of the grants which SEAMAN administered. These opportunities required travel, which, since it was job related, was reimbursable from federal grants. SEAMAN submitted false records related to 12 trips he completed between December 2009 and March 2011. The investigation revealed that SEAMAN routinely made alternate travel plans, failed to attend any training or conferences for which the travel funding was provided, and made claims against federal and college finances as if he had not engaged in activities which were entirely for his own personal benefit and enrichment. SEAMAN used fabricated and falsified hotel receipts to support his claims for reimbursement. The total amount of travel funds he received, or otherwise benefitted from, related to those trips was approximately $19,359.23.
In addition to the travel advances and reimbursements paid to SEAMAN while he was on personal adventure, SEAMAN also received approximately $9,668.88 in wages from FPCC for the time periods covered by the 12 trips to which he would not have been entitled if the college was aware that he was on what amounted to unauthorized personal leave.
FPCC's former president advised that SEAMAN had admitted in meetings - when challenged about the fraudulent travel claims - that he knew the claims were false.
A former teacher for the Frazer School on the Fort Peck Indian Reservation became acquainted with SEAMAN when she and her school were involved in a supplemental math program named ALEKS (Assessment and LEarning in Knowledge Spaces), funded through a grant obtained by FPCC. SEAMAN was the grant administrator.
In February 2011, the Frazer teacher traveled to Anchorage, AK, at the same time SEAMAN traveled to Juneau, AK. They met on the way home at the Seattle airport and traveled together from there back to Montana. SEAMAN confided that he had a female friend who resided in Juneau and worked as an elementary or middle school teacher. When SEAMAN became aware that his travel claims were under investigation by the Office for Inspector General for the Department of Interior, and the FBI, he contacted the former teacher from Frazer. SEAMAN sent her an e-mail on March 15, 2012, at 1:26 p.m. in which SEAMAN stated only "Don't say anything, don't know anything : )."
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, and the Federal Bureau of Investigation.
Jail Escapee's Brothers Sentenced on Drug Conspiracy ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jamar Mitchell, 27 and Jerrod Mitchell, 24, both of Rochester, N.Y., who were convicted of conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base, were sentenced to 125 months and 70 months respectively by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the defendants participated in a drug trafficking conspiracy along with their older brother Joseph Mitchell, who escaped from the Monroe County Jail after his arrest on drug trafficking charges. Joseph Mitchell was convicted of drug conspiracy, possession of a firearm in furtherance of drug trafficking, money laundering conspiracy and escape and was sentenced to 25 years in prison by Judge Geraci on June 26, 2013.
From 2008 until March 2011, Joseph, Jemar and Jerrod Mitchell were responsible for the large scale distribution of significant quantities of cocaine and cocaine base in the Rochester and Elmira, N.Y. During the execution of search warrants in connection with the arrest of Joseph and Jamar Mitchell, law enforcement seized large amounts of cash, jewelry, and two firearms. One of the handguns and over $500,000 in cash was secreted in a hidden trap in the base of a fish tank located at the Mitchell family residence.
After Joseph Mitchell's arrest on the drug and gun charges, he orchestrated an elaborate jail escape, which involved multiple individuals, and the smuggling of contraband into the Monroe County Jail. Specifically, Mitchell arranged for a cellular telephone and saw blades, which were secreted inside the binding of a bible, to be smuggled into the jail. Mitchell utilized the saw blades to cut the jail bars on the window of his cell and ultimately escaped with another inmate, Eddie Palmer, by breaking the exterior window and jumping to the ground. Several individuals who assisted Mitchell in his escape were also convicted including Eddie Palmer, Lakesia Binion, and Mathias Smith.
In sentencing Jerrod and Jamar Mitchell Judge Geraci acknowledged Joseph Mitchell's larger role in the drug conspiracy, but noted Jerrod and Jamar Mitchell's participation in the narcotics conspiracy and stated that their cocaine distribution was "like distributing poison into the community."
"This case is another example which shows the success that is made possible by law enforcement at all levels, including federal, state and local, working together to rid the community of dangerous felons," said U.S. Attorney Hochul.
The sentencings are the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, officers of the Rochester Police Department, under the direction of Chief James Sheppard, The United States Marshals Service, under the direction of US Marshal Charles Salina and investigators of the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn.
Illegal Alien Sentenced for Possession and Use of False Identity Documents and False Claim of United States CitizenshipRead the Press Release
An illegal alien from El Salvador who used false identity documents to gain employment and falsely claimed to be an United States citizen was sentenced today to more than thirteen months in federal prison.
Julian Reyes Ferrer-Hernandez, age 27, from Waterloo, Iowa, received the prison term after an April 2, 2013 jury verdict finding him guilty of one count of unauthorized use of a Social Security number not assigned to him, one count of unlawful use and possession of a fake social security card and fake permanent resident card to gain employment in the United States, one count of making a false claim of being a lawful permanent resident alien on an Immigration I-9 form, one count of falsely claiming to be an United States citizen, and one count of making a false statement regarding his employment during an interview with immigration officers.
Evidence at trial showed that on March 14, 2012, Ferrer-Hernandez was arrested in Waterloo, Iowa, for public intoxication. At the time of his arrest, Ferrer-Hernandez provided a Waterloo police officer with six different identity cards, including a fake social security card and a fake lawful permanent resident alien card. The permanent resident number was assigned to a Nigerian. Officers also seized two El Salvadoran identity cards and two fake California ID cards. Ferrer-Hernandez was born in, and is a citizen of, El Salvador.
Testimony showed that Ferrer-Hernandez used the fake social security card and the fake lawful permanent resident alien card to obtain employment in Waterloo, Iowa, where he filled out an Immigration I-9 Form on May 19, 2008, falsely claiming to be a lawful permanent resident alien. Immigration I-9 forms are required to be completed by all employees working within the United States. Ferrer-Hernandez worked in Waterloo, Iowa, continuously from May 2008 through February 2012.
On April 16, 2012, Ferrer-Hernandez was questioned by an officer with Homeland Security. During that interview Ferrer-Hernandez first claimed he was born in El Salvador, then falsely claimed he was a United States citizen born in an unknown city in Texas. Ferrer-Hernandez also falsely stated that he had not been employed in the United States since 2005.
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Ferrer-Hernandez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Ferrer-Hernandez was sentenced to 407 days imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.Ferrer-Hernandez is being held in the United States Marshal’s custody until he can be turned over to the Department of Homeland Security, Immigration and Customs Enforcement for deportation proceedings.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by officers from the Waterloo Police Department, the Black Hawk County Sheriff’s Office, and the Department of Homeland Security, Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2012.
Four Patagonia Drug Traffickers Sentenced to Serve A Combined Term of 32 Years in PrisonRead the Press Release
TUCSON, Ariz. – On July 1, 2013, Patagonia, Arizona residents Fabian Monge, 34, Isabel Monge-Sierras, 43, Mary Francis (Monge) Carlson, 32, and Frank Lopez, 49 were sentenced by U.S. District Judge Raner C. Collinsto serve terms of imprisonment of 12.5 years, 7 years, 5 years, and 7.5 years, respectively. After the conclusion of a three-week trial, on September 27, 2012, a federal jury found the defendants guilty of conspiring to possess with the intent to distribute over 1,000 kilograms of marijuana. Fabian Monge was additionally found guilty of two separate counts of aiding and abetting the possession with intent to distribute over 100 kilograms of marijuana. Frances Monge was acquitted at trial.
“This successful prosecution reflects our cooperation with our law enforcement partners in combating drug trafficking organizations that choose to operate in our smaller Arizona communities. These prison terms represent a significant blow to this organization and sends a message to those who work at all levels of such drug trafficking organizations that they will be held accountable,” said U.S. Attorney John S. Leonardo, “I want to thank the federal, state, and local law enforcement agencies for their team effort in this investigation.”
"For years, Fabian Monge operated a family run drug trafficking organization with impunity," said DEA Special Agent in Charge Doug Coleman. “Their sentencing is another example that DEA and its law enforcement partners will use every tool at our disposal to identify and bring to justice those individuals who think they will never have to pay the price for their illegal activity". From the kingpins to the street dealers our combined goal is to disrupt and dismantle drug trafficking organizations and put them out of service."
The trial testimony showed that the Monge family, from Patagonia, belonged to a family-run Drug Trafficking Organization (DTO) which was led by Fabian Monge and closely followed by his older sister Isabel Santos-Sierra (Monge). Their younger sister Mary Francis Carlson (Monge) also played a role in the DTO and Frank Lopez was one of the stash house operators for the organization. Witnesses testified that the Monge DTO have been smuggling marijuana from Mexico into the United States and transporting the bulk marijuana to Tucson and Phoenix since at least 2006. The Monge DTO was responsible for trafficking multi-ton quantities of marijuana from Patagonia until their arrests in 2010.
Collectively, this conspiracy investigation resulted in over 40 defendants charged in federal court in separate indictments comprising of coordinators, stash house operators, marijuana load drivers, and individuals who registered vehicles for the DTO. This investigation was a collaborative effort initiated by DEA-Nogales, U.S. Border Patrol-Sonoita, Cochise County Sheriff’s Office, the Sierra Vista Police Department, and the Patagonia Police Department. The prosecution was handled by Liza M. Granoff and Jeffrey D. Martino, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-10-863-TUC-RCC
RELEASE NUMBER: 2013-052_MongeFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/