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20 August 2013
Former United Medical Center Employee Pleads GuiltyRead the Press Release
To Embezzling Over $335,000 in Overtime Pay
-Defendant Manipulated Electronic Time-Keeping System-WASHINGTON – Marlene L. Merchant, 54, of Washington, D.C., pled guilty today to a federal theft charge stemming from her embezzlement of more than $335,000 from her former employer, United Medical Center, announced U.S. Attorney Ronald C. Machen Jr. and Charles J. Willoughby, Inspector General for the District of Columbia.
Merchant pled guilty in the U.S. District Court for the District of Columbia to one count of theft concerning programs receiving federal funds. The Honorable Reggie B. Walton scheduled sentencing for Nov. 8, 2013. As part of the plea agreement, Merchant agreed to criminal forfeiture and restitution in the amount of $335,663. Under the voluntary federal sentencing guidelines, she faces between 18 and 24 months of incarceration.
According to the government’s evidence, from Oct. 28, 2002, through April 8, 2013, Merchant was employed as an administrative assistant by United Medical Center (UMC) and its predecessor, Greater Southeast Community Hospital. UMC is a non-profit community hospital located in Southeast Washington. As a non-union employee, Merchant was exempted from the overtime pay provisions of the Fair Labor Standards Act. As an “exempt” employee, she was not entitled or eligible to receive overtime pay from UMC, regardless of the number of hours she actually worked.
From January 2005 through March 2013, Merchant and the payroll manager at UMC manipulated UMC’s electronic timekeeping system to cause the hospital to pay the defendant $335,663 in overtime pay to which Merchant knew she was not entitled. In the beginning of the scheme, the payroll manager repeatedly changed Merchant’s status from “exempt” to “non-exempt” in the electronic timekeeping system, resulting in overtime pay. Starting in 2008, Merchant learned the log-in and password of her supervisor, which she then used, without permission, to change her status from “exempt” to “non-exempt” in the electronic timekeeping system. Merchant also changed her start and finish times from what her identification badge logs reflected to increase her work hours.
In announcing the guilty plea, U.S. Attorney Machen and Inspector General Willoughby commended the investigative work of Special Agent Anthony McGail of the District of Columbia Office of Inspector General. They also praised the efforts of Paralegal Specialist Corinne Laxman, Assistant U.S. Attorney Catherine K. Connelly, who worked on forfeiture issues, and Assistant U.S. Attorney David Johnson, who is prosecuting the case.
13-288Former Sales Broker Pleads Guilty in Manhattan Federal Court in Connection with Securities Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MAREK LESZCZYNSKI, a former sales broker, pled guilty today in Manhattan federal court to conspiring with others to commit securities fraud and wire fraud. Along with other individuals, LESZCZYNSKI defrauded clients out of millions of dollars by misrepresenting the prices at which securities were bought and sold, thereby enabling his former employer to earn undisclosed trading profits and himself and his co-conspirators to be awarded lucrative bonuses. LESZCZYNSKI pled guilty before U.S. District Judge John F. Keenan this afternoon.
Manhattan U.S. Attorney Preet Bharara stated: “Along with his cohorts, Marek Leszczynski sold his firm’s clients a bill of goods by repeatedly misrepresenting the prices of trade executions, all so he could increase firm profits and secure a hefty bonus. Ultimately, Leszczynski’s lies were exposed, and today’s conviction ensures he’ll be punished for his fraud.”
According to the Complaint, the Indictment, statements made during the plea proceeding, and other documents filed in Manhattan federal court:
From 2005 through December 2008, LESZCZYNSKI worked at a broker-dealer that was headquartered in London, England, with offices in Europe, Asia, and New York, New York (“Broker-Dealer 1”). Among other services offered, Broker-Dealer 1 bought and sold securities on behalf of institutional clients, such as commercial banks and investment firms, located throughout the United States and in various major European cities. LESZCZYNSKI worked as a sales broker for Broker-Dealer 1’s Cash Equity Desk in New York. In that capacity, he was responsible for, among other things, receiving orders to buy or sell securities from Broker-Dealer 1’s clients, relaying those orders to traders who executed the trades, communicating with clients as their orders were being filled, and sending out trading confirmations back to the clients that showed the prices at which securities were bought or sold, including the commissions, if any, that Broker-Dealer 1 charged.
Instead of accurately recording and reporting the actual execution prices of the securities, LESZCZYNSKI and his co-conspirators, Chouchane and Condron, who worked alongside LESZCZYNSKI at Broker-Dealer 1, misrepresented the prices of trade executions. Where Broker-Dealer 1 received a buy order from a client, LESZCZYNSKI and his co-conspirators caused the purchase price of the security that would be reported back to the client to be “marked up” from its actual purchase price. Additionally, where Broker-Dealer 1 received a sell order from a client, LESZCZYNSKI and his co-conspirators caused the sale price of the security that would be reported back to the client to be “marked down” from its actual sale price. These markups and markdowns were not disclosed to Broker-Dealer 1’s clients and were separate and apart from the agreed-upon commissions that were disclosed on trading confirmations sent to Broker-Dealer 1’s clients.
As a result of this fraudulent scheme, Broker-Dealer 1 earned millions in undisclosed trading profits to which it was not entitled. LESZCZYNSKI and his co-conspirators were paid inflated bonuses.
LESZCZYNSKI, 44, of Miami, Florida, pled guilty to one count of conspiracy to commit securities fraud and wire fraud. He faces a maximum sentence of five years in prison, as well as a maximum fine of $250,000 or twice the gross gain or loss from the offense. In addition, LESZCZYNSKI has agreed to forfeit $1.5 million as part of his guilty plea. LESZCZYNSKI is scheduled to be sentenced before Judge Keenan on December 19, 2013 at 11:30 a.m.
Chouchane, 39, of New York, New York, pled guilty before Judge Keenan on June 12, 2013, to one count of conspiracy to commit securities and wire fraud. He is scheduled to be sentenced before Judge Keenan on October 24, 2013.
Condron, 34, of Yorktown Heights, New York, pled guilty before U.S. District Judge Naomi Reice Buchwald on October 5, 2012, to two counts of conspiracy to commit securities fraud and one count of securities fraud. Condron’s sentencing date is pending.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission for their assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Chi T. Steve Kwok is in charge of the prosecution.
U.S. v. Marek Leszcynski and Benjamin Chouchane Indictment
Former NBA Player Sentenced to Prison for Failing to Pay More Than $600,000 in Child SupportRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced kenneth ray williams , 44, of Elizabeth City, North Carolina, to 9 months imprisonment, followed by 1 year of supervised release. WILLIAMS was also ordered to pay $661,277.00 in restitution.
Investigation of this case was conducted by the Federal Bureau of Investigation. Valuable assistance was provided by the Albermarle Child Support Enforcement Agency. Assistant United States Attorney Banumathi Rangarajan handled the prosecution on behalf of the United States Attorney’s Office.
Williams was named in an Indictment filed on July 6, 2000 charging him with willful failure to pay child support in violation of Title 18, United States Code, Section 228(a)(3). On August 23, 2000, williams pled guilty to that charge.
According to the investigation and information in the public record, WILLIAMS was first ordered to pay $2,500.00 in child support. At the time, WILLIAMS was playing basketball with the Indiana Pacers. By 1994, he was earning a salary of $750,000/year. Despite the salary, he did not pay any support. In 1995, the support award was amended to include his third child and he was ordered to pay $3,750 per month for the support of his three children.
Despite earning salaries between $90,000 and $180,000 a year between 1995 and December 2000, WILLIAMS failed to support his children. While he played basketball, drove fancy cars and lived overseas, his former wife and three children were receiving Welfare and Aid to Families with Dependent Children benefits.
In July 2001, he caused his attorney to file a motion to continue a sentencing hearing set for July 31, 2001, claiming that he could not afford to travel to the United States. Unbeknownst to his lawyer, WILLIAMS was in the United States from July 12, 2001 through July 29, 2001, playing basketball with the Boston Celtics and the Denver Nuggets. WILLIAMS left the country and has remained overseas.
WILLIAMS failed to appear for a sentencing hearing in August 2001 and a warrant for his arrest was issued. WILLIAMS remained a fugitive until he was finally arrested on March 11, 2013.Former Fugitive and Furniture Store Owner Sent to Prison for Cocaine Trafficking and Money LaunderingRead the Press Release
CORPUS CHRISTI, Texas – Jose Francisco Serna, of Mission, has been handed a significant federal sentence following his convictions of conspiracy to launder monetary instruments and conspiracy to possess with the intent to distribute cocaine, United States Attorney Kenneth Magidson announced today. Serna pleaded guilty Nov. 19, 2012.
Serna was arrested in August 2012 after having been a fugitive in Mexico for several years. His conviction relates to his participation in a South Texas drug-trafficking and money laundering organization that used his furniture store as a business front to launder illegal drug proceeds.
Today, U.S. District Judge John D. Rainey, who accepted the guilty plea, handed Serna respective terms of 96 months on each count to be served concurrently for the drug and money laundering convictions. Serna was further ordered to pay a $5,000 fine on the money laundering count. Serna will also be required to serve a term of four years of supervised release following completion of the prison term.
Serna once owned and operated a retail furniture store in McAllen and began a drug venture on the side of his legitimate business with two of his associates in the furniture business. Serna later created Four Seasons Transport, a legitimate trucking company to transport secreted cocaine and currency between Mission and Atlanta, Ga. Cocaine was hidden in an axle of the tractor truck and was removed at “stash houses” in Lithonia and Savannah, Ga. Serna would then receive drug proceeds at his ranch in Mission. The drug proceeds were hidden in the same axle compartment of the tractor truck while being transported south. Serna used multiple bank accounts to hide the drug proceeds he had received, including his furniture business’ account.
At today’s hearing, Judge Rainey also entered a final order of forfeiture of Serna’s interest in a South Texas ranch, a piece of real property located in Hidalgo County valued at more than $300,000, which was used by Serna to conduct his drug business. At the ranch, Serna received cocaine load from Mexico for further distribution north to Georgia and South Carolina.
Serna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Organized Crime Drug Enforcement Task Force investigation leading to the criminal charges was conducted in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service--Criminal Investigation and the U.S. Marshals Service. This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Federal Grand Jury Indicts Charleston Woman on Illegal Drug and Firearm Possession ChargesRead the Press Release
Three minor children in apartment that had three firearms, heroin
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Charleston woman was indicted today by a federal grand jury in connection with illegal drug and firearm possession offenses. According to a three-count indictment, Chandra K. Ross, 29, allegedly possessed heroin with intent to distribute on July 18, 2013 near Charleston. The indictment also alleges that on July 18, 2013, Ross possessed three firearms during and in relation to a drug trafficking crime.
A third count in the indictment returned today by a federal grand jury in Charleston alleges that Ross knowingly possessed a .22 caliber revolver which had an obliterated serial number.
On July 18, 2013, police executed a search warrant on Ross’ Charleston apartment. According to the search warrant affidavit accompanying the criminal complaint, police found $26,825 in cash, over 100 grams of heroin and three handguns at the residence. Two of the handguns were previously reported stolen and another handgun had an obliterated serial number, the affidavit says. Police also recovered $1,701 in cash from Ross’ purse. The affidavit further says that at the time of the investigation, Ross shared the residence with her three minor children.
Ross faces a mandatory minimum of five years and up to life in prison and a $1,500,000 fine, if convicted.
The investigation was conducted by the Kanawha Bureau of Investigations. Assistant United States Attorneys Steven Loew is in charge of the prosecution.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view the criminal complaint
Click here to view the indictment
Fairbanks Man Sentenced to one year prison term for drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man was sentenced in federal court in Fairbanks, Alaska, for three counts of conspiracy and selling illegal drugs.
Steven Jacob Johnson, 26, of Fairbanks, Alaska, was sentenced on August 16, 2013, by Chief U.S. District Judge Ralph R. Beistline in Fairbanks, based on Johnson’s guilty pleas to charges that he conspired to distribute, and did distribute, illegal drugs in the Fairbanks area. He distributed the illegal chemical substances, 2C-E and 2C-I, which was sold as “ecstasy”. The court sentenced Johnson to a one year prison term and he was credited the ten months’ in prison he already served. His sentence also included 54 additional days of electronically monitored home confinement and three years of supervised release. The charges arose from Johnson’s selling the drugs on two occasions in 2012 to an undercover informant and Johnson’s negotiation of a third sale.
According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, the facts Johnson admitted to in court showed that Johnson first sold 300 pills for $9 per pill, and was paid $2,700 in cash. Johnson’s second sale was for 800 pills he sold at $10 each for a total of $8,000. He negotiated a third sale of 900 pills. Each of these sales was filmed and recorded. Johnson conducted the sales for his partner who he said had manufactured the pills and he was observed giving most of the cash to his partner. 2C-E and 2C-I are phenethylamines that have chemical and pharmacological properties akin to LSD, ecstasy and other hallucinogenic drugs.
The co-defendant Jackson Drew pled guilty to conspiracy, distribution and possession with intent to distribute drugs. Drew is scheduled to be sentenced in Fairbanks on September 27, 2013.
Ms. Loeffler commends the U.S. Drug Enforcement Administration for the investigation of this case.Energy Company Employee Charged with Stealing Mineral Rights, Profiting from Fraudulent Lease or Sale to OthersRead the Press Release
PITTSBURGH, Pa. - A Jeannette man has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud and wire fraud, United States Attorney David J. Hickton announced today.
The six-count indictment named Derek A. Candelore, aka Dan Kun, aka Kevin Kelly, 33, as the sole defendant.
According to indictment, Candelore was employed by Penn-Star Energy, LLC of Butler County ( Penn-Star), as a landman. Candelore worked at Penn-Star with another landman identified in the indictment as WJR. A landman contacts mineral rights owners on behalf of natural gas production companies to arrange for leases of mineral interests for oil and gas production. Penn-Star acquired mineral rights on behalf of Range Resources Corporation. The mineral rights for four separate blocks of land in Washington County, consisting of 100 or more acres, were stolen by Candelore using forged signatures, fake companies and forged notary signatures and stamps. These frauds began in February 2010 and ended in June 2012. During the scheme Candelore set up several post office boxes and bank accounts in the names of companies he created. He filed deeds and other documents at the Washington County Recorder of Deeds Offices to make it appear that the true mineral rights owners had transferred their mineral rights to Candelore's fake companies. These deeds had forged signatures of several true owners and forged notary signatures and stamps. Candelore's companies thereafter leased and/or sold the mineral rights to others. The indictment seeks the forfeiture of $1,177,735.27 of proceeds from the scheme. Candelore received the proceeds from each of the four blocks of mineral rights, while WJR received proceeds from two of the four. The victims include Range Resources Corporation, several mineral rights owners, Pecos Bend Royalties, LP, of Midland Texas, and Buffalo Royalties business entities in Texas.
The law provides for a maximum total sentence of 120 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to 44-Month Prison TermRead the Press Release
For Sexually Assaulting Two Women
-Separate Incidents Took Place Within a Three-Week Period This Year-WASHINGTON - James Parks, also known as Antonio Parks, 22, of Washington, D.C. has been sentenced to a 44-month prison term for two sexual assaults that he committed earlier this year, U.S. Attorney Ronald C. Machen Jr. announced today.
Parks pled guilty in June 2013 in the Superior Court of the District of Columbia to attempted first-degree sexual abuse and misdemeanor sexual abuse. He was sentenced on Aug. 16, 2013 by the Honorable Robert E. Morin. Upon completion of his prison term, Parks will be placed on three years of supervised release. He also will be required to register as a sex offender for 10 years.
According to the government’s factual proffer at the plea hearing, on Jan. 25, 2013, Parks was at the home of one of the victims, on 23rd Street SE. That night, Parks sexually assaulted another woman while she was unconscious in an upstairs bedroom of the home.
On the night of Feb. 14, 2013, Parks was back at the same home. That night, he and another man forced the resident into the basement, where Parks sexually assaulted her.
In announcing the sentence, U.S. Attorney Machen praised the work of Paralegal Specialist Jason Manuel, Victim/Witness Advocate Lezlie Richardson and members of the Metropolitan Police Department’s (MPD) Sexual Assault Unit. He also commended the work of Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
13-289Developer, Praveen Kailas, Pled to Theft of Government Funds and Conspiracy ChargesRead the Press Release
PRAVEEN KAILAS, age 30, a resident of New Orleans, Louisiana, pleaded guilty to a bill of information charging him with one count of conspiracy to commit theft of government funds and one count of theft of government funds before U.S. District Court Judge Sarah S. Vance, announced U.S. Attorney Dana J. Boente. The indictment filed on June 27, 2013, and the plea filed on August 1, 2013, were unsealed today.
According to the court record, KAILAS’s charges stem from his company, Lago Construction, L.L.C.’s, overbilling its construction monitoring subcontract for the Louisiana Road Home’s Small Rental Property Program (“SRPP”). The Department of Housing and Urban Development (“HUD”) funds the SRPP which provides monetary assistance to property owners to repair their small scale rental properties damaged by Hurricanes Katrina or Rita. In order to receive the grant, a small rental property owner has to agree to make the renovated rental units available to moderate to low-income tenants for a period of years. HUD provided the State of Louisiana Office of Community Development with federal funds to administer the SRPP. The State of Louisiana in turn subcontracted with private entities to oversee the administration of the SRPP, including the renovation of the properties.
Starting on June 6, 2011, Lago Construction, L.L.C., began its subcontract performing construction monitoring of the renovations of SRPP funded properties. KAILAS’s theft of federal funds designated for SRPP administration began from the inception of Lago Construction, L.L.C.’s subcontract when one of the Lago Construction, L.L.C., stakeholders was billed for working on the subcontract 40 hours each week, but did not spend 40 hours each week performing SRPP construction monitoring services or any other administrative services. The theft continued until on or about November 16, 2012, as KAILAS, and others approved timesheets overstating the amount of hours other individuals worked on SRPP related activities.
In court documents associated with his guilty plea, KAILAS admitted that he and other stakeholders of Lago Construction, L.L.C., solicited monitors to work on the construction of a home they owned in New Orleans, Louisiana, and/or to work at other companies owned and operated by them. Hours that these monitors spent on other projects for KAILAS and other stakeholders of Lago Construction, L.L.C., were not deducted from the hours that were billed to the SRPP contract nor were the monitors paid separately for the work they performed on other projects. KAILAS and Lago Construction, L.L.C., were paid from federal dollars for these monitors as if they had spent all the hours they billed each week performing services related to the SRPP.
KAILAS is scheduled to be sentenced on November 13, 2013. He faces up to 5 years imprisonment on the conspiracy count and up to 10 years imprisonment on the theft of government funds count. The amount of restitution will be set by the Court.
The case was investigated by the Federal Bureau of Investigation, Department of Homeland Security, and Department of Housing and Urban Development. The case was prosecuted by Assistant United States Attorney Emily K. Greenfield.
(Download Bill of Information )
(Download Factual Basis )
David Ronald Evans, Sr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before Chief U.S. District Judge Dana L. Christensen, DAVID RONALD EVANS, SR., age 54, was sentenced to a term of:
- Prison: 6 months
- Special Assessment: $100.00
- Supervised Release: 3 years
EVANS was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On May 24, 1994, EVANS received a felony conviction and was therefore prohibited from possessing firearms.
On October 1, 2011, EVANS was pulled over near Glasgow for suspected drunk driving. During his interaction with law enforcement, EVANS admitted he had a firearm and removed it from his person. The firearm was a Walther/Smith & Wesson, model PK380, .380 caliber semi-automatic pistol. The firearm had been transported from one state to another.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that EVANS will likely serve all of the time imposed by the court. In the federal system, EVANS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Co-Conspirator Admits Role in Theft from Coeur D'Alene TribeRead the Press Release
COEUR D’ALENE – Billy E. Moffitt, 26, of Lewiston and Plummer, Idaho, pleaded guilty today in United States District Court to conspiracy to commit theft from a tribal organization, U.S. Attorney Wendy J. Olson announced. A federal grand jury in Coeur d’Alene returned a two count indictment on May 21, 2013, charging Moffitt and Angeline Morago George, 36, of Plummer and Portland, Oregon, with conspiracy to commit theft and theft from a tribal organization.
According to the plea agreement, Angeline George was employed by the Coeur d’Alene Tribal Housing Authority and was issued a credit card related to her duties. Between February 2 and February 23, 2013, Moffitt and George drove from the Coeur d’Alene reservation to Spokane, Washington, where George purchased $4,175.26 in money orders from local Money Tree stores. George or Moffitt would then cash the money orders and use the cash for their personal use and benefit. As part of his agreement with prosecutors, Moffitt agreed to pay restitution to the Coeur d’Alene Tribal Housing Authority.
The charge of conspiracy to commit theft from a tribal organization is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Moffitt is set for sentencing on November 5, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
Co-defendant Angeline George is scheduled to plead guilty on August 30.
The case was investigated by Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
California Man Charged with Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Los Angeles, California, man has been indicted by a federal grand jury for Transportation for Prostitution, Inducing Travel to Engage in Prostitution, and Sex Trafficking.
Joe Charles Becker, a/k/a “Moses,” age 32, was indicted by a federal grand jury on August 13, 2013. He appeared before U.S. Magistrate Judge John E. Simko on August 19, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to life imprisonment, a $250,000 fine, or both; up to life on supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and Becker is presumed innocent until and unless proven guilty.
In early August 2013, Becker allegedly transported the victim from Minnesota to Sioux Falls, South Dakota, with the intent that the victim would engage in prostitution and sexual activity for Becker’s financial benefit.The investigation is being conducted by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Becker was remanded to the custody of the U.S. Marshals Service. A trial date has been set for October 22, 2013.Bostwick Laboratories, Inc. Pays $503,668 to Resolve Civil Fraud Allegations That Its Sales Representatives Used A Clinical Study to Induce Physicians to Utilize Its ServicesRead the Press Release
Bostwick Laboratories, Inc. (“Bostwick”) has entered into a civil settlement agreement in which it agreed to pay the United States $503,668.00 to resolve allegations that the company made illegal payments to induce certain physicians to utilize Bostwick’s laboratory testing services – some of which were not medically necessary under the circumstances.
The settlement was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Tom O’Donnell, Special Agent-in-Charge of New York’s Office of the Inspector General for the Department of Health and Human Services (HHS).
The government alleges that Bostwick made the illegal payments to physicians to induce them to enroll their patients in a study sponsored by Bostwick called “Determination of the Accuracy of PCA3Plus Urine Assay for the Detection of Prostate Cancer” (the “PCA3Plus Study”). One requirement of the study was that for each patient enrolled, the physicians were obligated to send both the PCA3Plus urine assay for the PCA3Plus Study and prostate biopsy samples – which otherwise could have been sent to any number of laboratories – to Bostwick for analysis. As a result, Bostwick in effect paid those physicians to steer their prostate biopsy analysis business to its laboratories. Bostwick then submitted claims to Medicare and Tricare for reimbursement for both the prostate biopsy test analysis and the PCA3Plus urine assay analysis for each patient enrolled in the PCA3Plus Study, even though the prostate biopsy was the “gold standard” for prostate cancer detection, and the PCA3Plus urine assay was not medically necessary in such situations. In settling this matter, Bostwick is not admitting the government’s allegations.
“Decisions involving medical treatment and testing go to the heart of the doctor patient relationship, and must be based on the needs of each patient and possibility of the advancement of science. They cannot and should not be based on illegal payments from laboratories. Our office is committed to stopping such inducements, and returning patient care to the forefront of the doctors’ decisions,” stated United States Attorney Lynch.
“In order to ensure the best possible treatment for our nation’s Medicare population, it is important that the relationship between labs and physicians be free of any illegal inducements, and we will continue to investigate such allegations,” stated HHS Special Agent-in-Charge O’Donnell.
The investigation that led to the settlement began after Robert Gluck, M.D., an urologist who had been approached by Bostwick regarding participation in the PCA3Plus Study, filed a complaint against the company on behalf of the United States in the Eastern District of New York. Under the federal False Claims Act, a private individual who has uncovered fraud against the federal government may file a suit in federal court on behalf of the United States. If the United States is successful in resolving those claims, the individual who filed the complaint may receive a share of the recovery.
The government’s case was handled by Assistant U.S. Attorneys Scott R. Landau and Paul Kaufman.
Blanchester Man Convicted of Selling Firearms to FelonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
Christopher Bradley, 38, of Blanchester, Ohio was convicted by a federal court jury in Cincinnati of two counts of selling firearms to a felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), announced the guilty verdict returned by a jury following a five-day trial before U.S. District Court Judge Michael R. Barrett.
Bradley, and his brother Shannon Bradley, 36, of Leesburg, were indicted on April 4, 2012 on multiple counts of selling firearms to felons. Shannon Bradley previously pleaded guilty to one count of selling firearms to a felon, after obtaining guns from his brother, Chris Bradley, and then selling them to an informant.
According to trial testimony, in February 2012 Chris Bradley met with the same informant, who repeatedly mentioned that he planned to resell the firearms in Cincinnati to “people that might need to use them and ditch them” and to people that were “protecting their dope houses and not getting killed.” Bradley helped the informant carry six firearms and ammunition to the informant’s car, as he told the informant to keep the guns and ammunition separated in case he were pulled over. The informant commented that officials would never find the guns and ammunition because he was a felon, while Bradley helped the informant load his car. Bradley sold seven more guns and ammunition to the same informant two days later.
During a recorded phone call with Bradley on March 5, 2012, the informant again advised Bradley that he had one felony on his record. Bradley then sold a total of nine more guns and ammunition to the informant on March 9 and March 21, 2012. Testimony further revealed that Bradley sold guns at gun shows many times and would routinely asked people if they were felons.
Bradley faces a maximum sentence of 10 years in prison, 3 years of supervised release, and a fine of up to $250,000 on each count. He will be sentenced at a later date. His brother, Shannon, also awaits sentencing.
Stewart commended the investigation by ATF agents, along with Special Assistant United States Attorney Gregory Stephens and Cincinnati Branch Chief Anthony Springer, who are prosecuting the case.
Biggers Named Prevention and Reentry Coordinator as Part of “Smart on Crime” InitiativeRead the Press Release
Memphis, TN – U.S. Attorney Edward L. Stanton III today announced the appointment of Assistant U.S. Attorney C. David Biggers, Jr. as the Western District’s Prevention and Reentry Coordinator.
On August 12, 2013, in a speech to the American Bar Association’s Annual Convention, U.S. Attorney General Eric H. Holder, Jr. unveiled his “Smart on Crime” initiative, designed to modernize the federal criminal justice system. One key component of that plan calls for U.S. Attorneys to designate a Prevention and Reentry Coordinator within each of their offices to focus on prevention and reentry efforts.
Biggers has served as a career prosecutor, first as an Assistant District Attorney in Jefferson County, Alabama from 2006-2008, where he began his work in juvenile court. After serving as lead methamphetamine prosecutor, Biggers was appointed as a Special Assistant U.S. Attorney (SAUSA) for the Northern District of Alabama where he served in the Violent Crimes Division.
While serving as a SAUSA in Birmingham, Biggers was named as the U.S. Attorney’s Office representative to the Drug Court Program. His responsibilities included planning, organizing and developing the program and being actively involved in the decision-making process on drug court participants’ action plans, sanctions and rewards.
Biggers received his undergraduate degree from Rhodes College in Memphis and his law degree from the University of Alabama School of Law in Tuscaloosa, Alabama.
“David Biggers is a dedicated public servant who is uniquely qualified to serve as this district’s first Prevention and Reentry Coordinator,” said U.S. Attorney Stanton. “He has the sound judgment and experience needed to assist in implementing this critically important tenet of U.S. Attorney General Eric Holder’s ‘Smart on Crime’ initiative in West Tennessee.”# # # #
Anchorage Woman sentenced to 21 months in prison for role in Investment Fraud SchemeRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman has been sentenced in federal court in Anchorage for her role in an investment fraud scheme which targeted small investors in Anchorage in 2011 and 2012.
Mary Elizabeth Transki, 26, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 21 months in prison following her conviction for one count of securities fraud.
According to Assistant U.S. Attorney Joseph Bottini, who prosecuted the case, Transki’s co-defendant in the case, Floyd Leroy Lee, Jr., set up an investment company – Platinum Investments, Inc. – in Anchorage in October of 2010. Lee, assisted by Transki, subsequently solicited investors with the promise of high-yield returns in a brief amount of time. Between September 2011 and March 2012, Lee and Transki took in approximately $62,000 in investment funds. After receiving the money, Lee and Transki did not invest it as promised and instead used the funds for their own personal use and benefit.
Lee and Transki were indicted by a federal grand jury in April 2013 for one count each of securities fraud related to the investment fraud scheme. Lee was also indicted for one count of mail fraud. Transki and Lee each pled guilty in June 2013 to the securities fraud charge, and Lee additionally pled guilty to the mail fraud count. Floyd Leroy Lee, Jr. is scheduled for sentencing on August 30, 2013 in Anchorage, Alaska.
In sentencing Transki to 21 months in prison, Judge Gleason noted that Transki’s role in the fraud scheme had been greater than simply a ministerial role as Transki had maintained. Judge Gleason also noted that Lee and Transki had preyed on small investors who are the type of individuals least able to absorb the loss of investment funds.
Ms. Loeffler commends the Federal Bureau of Investigation for their investigation of this caseAlabama Tax Return Preparers and 19 Foreign Nationals Charged with Conspiring to Defraud the United States, Identity Theft and Money LaunderingRead the Press Release
Justice Department announced that a 14-count superseding indictment was unsealed today, charging JB Tax Professional Services Inc., Jacqueline J. Arias and Jose Bayron Estrada, of Spruce Pine, Ala., along with 19 foreign nationals, many of whom resided in the New Orleans area, with conspiracy to defraud the United States and conspiracy to commit mail and wire fraud by filing fraudulent income tax returns. The indictment also charges certain defendants with aggravated identity theft and conspiracy to commit money laundering. Most of the defendants were previously indicted in May 2013 and arrested in June 2013.
According to the indictment, members of the conspiracy obtained Forms W-2, often by purchasing them for cash, for the purposes of filing fraudulent income tax returns. Conspirators further obtained individual taxpayer identification numbers (ITINs) for use in filing fraudulent tax returns, in some cases using false applications filed with the assistance of Arias and JB Tax Professional Services. An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. Both Arias and the business were designated by the IRS as certified acceptance agents, which are entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS.
The charging documents allege that the defendants used the social security numbers of real persons to conduct mail and wire fraud. The defendants also allegedly disguised and concealed the proceeds of their fraud by agreeing to conduct certain types of financial transactions.
An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent until proven guilty. Each defendant faces a maximum potential sentence of five years in prison for the conspiracy charge. Each aggravated identity theft charge carries a mandatory two-year prison sentence, and the defendants charged in the money laundering conspiracy count face a possible maximum sentence of twenty years in prison. The defendants will also be subject to fines, mandatory restitution and forfeiture if convicted.
The case is being investigated by U.S. Immigration and Customs Enforcement, which oversees Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish, La. and Jefferson Parish, La. Sheriffs’ Departments. The case is being prosecuted by Tax Division Trial Attorneys Hayden Brockett and Kevin Lombardi.
49 Members and Associates of an International Ethnic-Albanian Organized Crime Syndicate Convicted of Drug Trafficking CrimesRead the Press Release
Earlier today, Nicholas Masi, the final defendant in this case charging 49 members and associates of an international drug trafficking syndicate led by ethnic Albanians located in the United States, Canada, and Europe (the “syndicate”), pled guilty before U.S. District Judge Dora L. Irizarry at the federal courthouse in Brooklyn to drug trafficking charges contained in a superseding indictment returned on July 11, 2011.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Brian R. Crowell, Special Agent-in-Charge of the Drug Enforcement Administration, New York (DEA); James T. Hayes, Jr., Special Agent-in-Charge, Homeland Security Investigations (HSI), New York, and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York.
“This family led business was no ‘Mom and Pop’ organization, but a sophisticated ring of international drug dealers and money launderers. They dealt in narcotics by the thousands of pounds and drug proceeds in the multi-millions, and had no qualms about using violence to protect their ill-gotten gains. For more than a decade their web of narcotics trafficking and violence literally spanned the globe. With the assistance of our law enforcement partners across the country, the United States Attorney’s Office for the Eastern District of New York was able to bring this prolific criminal syndicate to justice,” stated United States Attorney Lynch. “We and our partners in law enforcement are committed to investigating and prosecuting international drug traffickers and seizing the proceeds of their crimes. We remain relentless in this pursuit.” Ms. Lynch expressed her grateful appreciation to the DEA Special Operations Division, DEA Newark Division, DEA Denver Division, DEA Miami Division, DEA Albany District Office, DEA Rome Country Office, the HSI attache in Vienna, HSI attache in Toronto, HSI Albany Office, HSI Denver Office, HSI Newark Office, HSI Miami Office, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monmouth County (New Jersey) Prosecutor’s Office, the Westchester District Attorney’s Office and the New York Attorney General’s Office for their assistance.
DEA Special Agent-in-Charge Crowell stated, “This global organization operated from our street corners to the tops of the supply chain in Canada, Mexico, South America, and Netherlands. We estimate the organization was earning at least $15 million per year trafficking cocaine, marijuana, MDMA, and oxycodone. Our investigative partners at the international, state, local, and federal levels are commended for working tirelessly to shut down this violent syndicate.”
“Today, a violent and ruthless criminal organization that operated an extensive drug supply route in multiple countries has been dismantled,” HSI Special Agent-in-Charge Hayes. “The public expects law enforcement to work together in order to keep our communities free from drugs and the violence that comes with it. These convictions help do just that.”
IRS Special Agent-in-Charge Weirauch stated, “These convictions represent an extraordinary accomplishment in the fight against global drug trafficking. International money laundering remains a high priority for IRS-Criminal Investigation and we are proud to stand with our law enforcement partners as we acknowledge this achievement and look ahead to dismantling other international syndicates.”
The syndicate comprised several inter-related ethnic Albanian family clans (also known as “fis”) with hundreds of associated members, workers, and customers spanning three continents. In operation for more than a decade, the syndicate was responsible for organizing the importation and distribution of tens of thousands of kilograms of hydroponic marijuana from Canada and Mexico, substantial quantities of MDMA from the Netherlands and Canada, hundreds of kilograms of cocaine from Mexico, Colombia, Venezuela, and Peru, and large quantities of diverted prescription pills, such as oxycodone. The drugs were distributed in various locations in the United States, including New York, California, Georgia, Colorado, and Florida, as well as in Canada and Europe.
The four-year investigation revealed that most of the marijuana smuggled from Canada and Mexico was concealed in tractor trailers, typically in hundred pound quantities, with some shipments weighing as much as 1,200 pounds. The marijuana shipments were stored in warehouses and stash locations throughout Brooklyn, Queens, and the Bronx, before distribution. Kilogram quantities of cocaine were obtained from sources in the United States and exported to Albania and other locations in Europe concealed in hidden compartments inside luxury automobiles – ostensibly under the auspices of legitimate car dealerships which were actually controlled by syndicate members. Until the arrests of its members in July 2011, the syndicate was involved in negotiations to obtain hundreds of kilograms of cocaine from sources in South America for transport through the United States to Canada and Europe. The syndicate was also involved in obtaining large shipments of oxycodone, a highly addictive prescription medicine used to treat severe pain, and during the past year distributed thousands of oxycodone pills in New York which had been diverted from pain clinics in Florida.
The government’s investigation further revealed that the syndicate employed the services of a Canadian-based money laundering organization, which was allegedly responsible for laundering more than $15 million of the syndicate’s narcotics proceeds in a single year. Typically, the launderers picked up drug money in New York and transported it to Canadian and Mexican drug suppliers. The syndicate also sent millions of dollars in marijuana sale proceeds to co-conspirators on the West Coast of the United States to purchase cocaine from Mexican drug cartels. The cocaine was then allegedly transported across the border into Canada for distribution, with the proceeds to be used to fund subsequent marijuana purchases.
Several defendants are believed to have committed drug and organized-crime-related violence, including kidnaping and attempted murder. For example, on June 4, 2011, an escalating dispute between syndicate members over the payment of a drug debt led to a shooting outside a Bronx restaurant-bar, and a potential drug-related shooting was narrowly averted in October 2010, when law enforcement agents intercepted a syndicate member with a loaded firearm en route to rob a drug customer who owed him money from a prior drug deal.
During the course of the investigation, federal agents seized more than 1,200 pounds of marijuana, approximately $2 million in suspected drug proceeds, 22 handguns, a military/police-issue assault rifle, and hundreds of rounds of ammunition.
The government’s case is being prosecuted by Assistant United States Attorneys Steven Tiscione, Gina Parlovecchio, Una Dean, and Claire Kedeshian.
The investigation was led by the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, and the U.S. Marshal Service.
The Defendants
GJAVIT THAQI
Age: 42ARIF KURTI
Age: 43GJEVALIN BERISHA
Age: 33GJEVALIN BERISHA
Age: 33KUSHTRIM ABAZAGA
Age: 32CARLOS ALVAREZ
Age: 30KUSHTRIM BLAKU
Age: 33ROBERT BONURA
Age: 34JOSEPH BUX
Age: 36ALEJANDRO CALDERIN
Age: 43JOHN CEKAJ
Age: 43MARTINO CEKAJ
Age: 35GIOVANNI DIFUCCIA
Age: 40ADRIAN DUBIEL
Age: 29BRIAN DUBLYNN
Age: 36ARVY EBRAHIME
Age: 31HECTOR FLORES
Age: 41ANTHONY GATT
Age: 31ANGELO GERMANO
Age: 39JETON GJIDIJA
Age: 35HAMZA HAMIDEH
Age:PERRY IEROPOLLI
Age: 31AL KARAQI
Age: 39LEE KARAQI
Age: 38ROBERT KARAQI
Age: 41HASAN KURTI
Age: 42IBRAHIM KURTI
Age: 40BAJRAM LAJQI
Age: 38SELMAN LAJQI
Age: 41ALESSANDRO LATINO
Age: 37LAURETTA LOKAJ
Age: 42NIKOLA LUKAJ
Age: 41FRANK MAHONEY
Age: 42NICHOLAS MASI
Age: 51DAVID MCLEAN
Age: 47FATMIR MEHMETI
Age: 35FAIK MEHMETI
Age: 38NEFAIL MEHOVIC
Age: 29VALTER MEMIA
Age: 30ALBERTO MERCADO
Age: 43FABIAN MIHAJ
Age: 33MAGDALENA NIKOLLAJ
Age: 40MAL REXHA
Age: 51DARIUS RIVERA
Age: 38ROBERT RUDAJ
Age: 39FADIL SALAJ
Age: 53BRENT SAPERGIA
Age: 50LANCE SCHONER
Age: 29LESTER ZABORSKI
Age: 40AGRON ZENELAJ
Age: 34
19 August 2013
White River Woman Convicted of Conspiracy to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that Jo Ann White Buffalo, age 48, of White River, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 12, 2013, and pled guilty to a Superseding Information that charged her with conspiracy to distribute between 50 and 100 kilograms of marijuana.
Previously, as part of this same narcotics trafficking conspiracy, Phillip Stands, age 50, of Rosebud, Alfred Eagle Deer, Jr., a/k/a Alfred Eagle Deer, age 31, of Rosebud, and Joe Buck Colombe, age 34, of Mission, pled guilty to the same charge.
The maximum penalty upon conviction for White Buffalo and Eagle Deer is 20 years in custody, a $1,000,000 fine, or both; at least 3 years of supervised release; and a $100 assessment to the Federal Crime Victims Fund. The maximum penalty upon conviction for Colombe is 30 years in custody, a $2,000,000 fine, or both; at least 6 years of supervised release; and a $100 assessment to the Federal Crime Victims Fund.
Between October 2008 and August 2012, Abraham Romero-Perez obtained between 60 and 80 kilograms (132.28 to 176.37 pounds) of marijuana that had been transported into South Dakota. Romero-Perez then sold or “fronted” (a term for loaning controlled substance to an individual with the intent that the supplier will be paid for the substance after it has been sold) pound quantities of marijuana to other persons, including Gloria Barrera, Andrea Barrera, Colombe, and White Buffalo, knowing that they intended to further distribute the marijuana in South Dakota. Stands, and later Eagle Deer, assisted Gloria Barrera in redistributing the marijuana by helping her break pound quantities of marijuana into smaller quantities, and distributing some of it to marijuana users. Eagle Deer was fronted quantities of marijuana ranging from one ounce and upwards.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The cases are being prosecuted by Assistant U.S. Attorney Jay Miller.
Presentence investigations were ordered, and sentencing dates were set for August 19, 2013, for Eagle Deer; October 7, 2013, for Colombe; and October 21, 2013, for White Buffalo. Stands was previously sentenced on August 12, 2013.
White Buffalo, Colombe, and Eagle Deer were released on bond pending sentencing.Waterbury Man Admits Robbing Banks in Waterbury and New BritainRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that VICTOR RAMOS, 31, of Waterbury, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of bank robbery.
According to court documents and statements made in court, on February 1, 2013, RAMOS, Jose Rivera and others committed an armed robbery of the TD Bank located on Hartford Road in New Britain, stealing approximately $24,480. On February 21, 2013, RAMOS, Rivera and others committed an armed robbery of the TD Bank located on North Main Street in Waterbury, stealing approximately $5,319.
In pleading guilty, RAMOS also admitted that he violently stole $100 from a small business in Waterbury on January 28, 2013.
RAMOS has been detained since his arrest on June 5, 2013.
Rivera, 41, of Waterbury, has been detained since his arrest on February 21, 2013. On August 7, 2013, he also pleaded guilty to one count of bank robbery.
RAMOS and Rivera are scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on November 7, 2013, at which time they face a maximum term of imprisonment of 25 years.
This matter is being investigated by the Federal Bureau of Investigation, the Waterbury Police Department and the New Britain Police Department. The case is being prosecuted by Assistant United States Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]U.S. Attorney Paul J. Fishman Joins in Announcing New Anti-Carjacking Public Awareness CampaignRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman joined Acting Essex County Prosecutor Carolyn A. Murray, Essex County Sheriff Armando Fontoura and Newark Police Director Samuel A. DeMaio today to announce the launch of a joint anti-carjacking public awareness campaign.
Aimed at raising awareness of the serious consequences carjackers face, the campaign will include billboards, bus placards and flyers. The message is that carjacking is a serious crime and those who engage in carjacking face severe consequences.
“Carjacking terrorizes victims and the communities in which they live and work,” U.S. Attorney Fishman said. “The penalty for these crimes is appropriately tough. Carjackers prosecuted federally can face decades in prison, far from home, in a system with no parole.”
“Carjacking is not the same as taking a stolen car for a joyride,” said Prosecutor Murray. “When you pull out a gun and demand someone’s vehicle that is a serious crime and the penalties are severe if you are convicted. We want to send that message to young people who sometimes seem to view carjacking as nothing more than a theft.”All of the billboards will be up by the end of the day. Three are up already in Newark just a short distance from the Leroy Smith Building at 50 West Market Street.
They are located at:- 4th Avenue and Broadway
- 61 Pennsylvania Avenue at the intersection of Parkhurst
- 97 Sussex Avenue
In the 1990s, Essex County led the nation in car theft. With advances in technology, increasingly vehicles are equipped with sophisticated anti-theft devices, making it almost impossible for an amateur to steal an unattended car. As a result, carjackings have been on the rise in Essex County.
For example, in 2009, Essex County had just over 200 carjackings. Every year that number has continued to climb. Recently, there have been more than 400 carjackings each year countywide. These crimes occur in the early morning hours and late at night. Sometimes they involve high-end cars, but very often modestly priced vehicles are targeted.
“Carjacking is the fastest growing and potentially the most dangerous of crimes against persons and property,” Sheriff Armando Fontoura pointed out. “This public education initiative was devised to warn that law enforcement has teamed up our anti-carjacking efforts and makes clear the serious and long-term consequences of committing such a crime.”
Newark Police Director DeMaio said, “The Newark Police Department has implemented several proactive and reactive initiatives to combat this plague including but not limited to joint task forces and specialized proactive units. In addition to educating our motorists on how to better protect themselves from would be carjackers, we are now endeavoring to educate the carjackers themselves. Lawmakers, prosecutors, and judges are taking these crimes very seriously and sending a message to criminals through stiff penalties for carjackings, some of which are prosecuted on the federal level.”
In response to the increase in incidents, a Carjacking Task Force was set up in 2010 by the U.S. Attorney Paul Fishman and then Acting Essex County Prosecutor Robert Laurino.
Since that time the Essex County Prosecutor’s Office has worked cooperatively with the U.S. Attorney’s Office; the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); the Newark Police Department; the U.S. Immigration and Customs Enforcement; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the New Jersey Attorney General’s Office; the New Jersey State Police; and the Essex County Sheriff’s Office.
Starting Aug. 1, East Orange, Belleville and Irvington Police Departments became a part of this initiative. Each department has sent officers to serve on the Carjacking Task Force. In addition, the Essex County Prosecutor’s Office continues to maintain a Special Prosecutions Unit. Three assistant prosecutors are assigned to that unit. It was established to seek swift justice in these cases.
In line with these efforts, the Essex County Prosecutor’s Office indicted eight defendants in recent weeks in carjacking cases. They include the following defendants: Faquan Martin, 35, of Irvington, was indicted on 11 counts including conspiracy, carjacking, weapons possession, eluding and resisting arrest following an event on Nov. 20, 2012, in Newark. In addition to carjacking, Martin fled from the police causing a crash and creating a risk to the public.
Kalik Hollis, 19, and Andre Spencer, 19, both of East Orange, were both indicted in a seven-count indictment. Spencer is accused of carjacking someone in Belleville on Oct. 1, 2012. He is also accused of robbery. Hollis was indicted on knowingly receiving a 2006 Toyota Corolla. He is also charged with fleeing when the Belleville Police attempted to stop him.Terrell Walker, 19, of Irvington, and Malcolm Smith, 20, of Newark were indicted for a Nov. 26, 2012, carjacking in Newark. In addition to carjacking they are charged with aggravated assault and robbery. Walker is also charged with committing another carjacking in Newark on Dec. 19, 2012.
An 11-count indictment was returned charging Donald Moore, 19, of Newark, Messiah Arrington, 19, of Newark, and Magid Wheeler, 18, of Newark with various crimes related to a Jan. 6, 2013, carjacking. Wheeler and Arrington were involved in the carjacking of a 2013 Honda Accord. Three days later Moore fled in the same Honda, resulting in a police chase.
The U.S. Attorney’s Office has been working with investigators and prosecutors at the federal, state and local levels to select carjacking cases that are appropriate for federal prosecution. Since the formation of the anti-carjacking task force, the U.S. Attorney’s Office has prosecuted 37 defendants. Last month, the U.S. Attorney’s Office announced charges against five Essex County men for carjacking and related crimes.
Significant sentences arising out of federally prosecuted carjackings, and at which federal Bureau of Prisons facility those convicted are serving their time, include:
- Jahlil Thomas (who is featured on one of the billboards), 262 months; serving his sentence in Beaver, W.Va.
- Jerome Conover, 181 months; Ray Brook, N.Y.
- Taj Elliot, 147 months, Coleman, Fla.
- Amonra Jackson, 120 months, Beaumont, Texas.
- Alhakim Young, 130 months, Inez, Ky.
- Jermaine May, 118 months, Bruceton Mills, W. Va.
- Jirrod Parker, 150 months, Inez, Ky.
The federal charge of carjacking or attempted carjacking carries a maximum potential penalty of 15 years in prison; 25 years in prison if serious bodily injury results; and life in prison or the federal death penalty if death results. Using a firearm in furtherance of a crime of violence carries a minimum consecutive term of five years in prison if a firearm is possessed, seven years in prison if a firearm is brandished, 10 years in prison if a firearm is discharged and a maximum of life in prison. Each of these charges also carries a maximum $250,000 fine. There is no parole in the federal system.
“We are encouraged by this partnership of federal, state and local law enforcement to combat carjacking in our communities,” Murray said. “Our goal is to let carjackers know that we take these crimes very seriously and that the penalties they will face are considerable.”
“In addition to putting would-be criminals on notice, we want to alert the public to be cautious,” Prosecutor Murray said. “Don’t leave the keys in your car even to run in and drop the baby off at the babysitter’s. Don’t leave your doors unlocked as you drive around. Be alert. Be smart,” she added.13-343
Carjacking billboard - green cell
Carjacking Billboard - Parking Spot - Hallway
Carjacking Billboard - Seconds YearsTopeka Man Carried .40 Caliber Pistol in Furtherance of Drug TraffickingRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to a federal charge of carrying a .40 caliber pistol in furtherance of drug trafficking, U.S. Attorney Barry Grissom said today.
Malik T. Yates, 20, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of drug trafficking. In his plea, he admitted that on March 1, 2013, members of the Kansas Bureau of Investigation Task Force served a search warrant at his residence in Topeka. They seized methamphetamine, a .40 caliber pistol and $3,000 cash.
He is set for sentencing Nov. 18. He faces a sentence of not less than five years and not more than life and a fine up to $250,000.
Grissom commended the Kansas Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
State Trooper Charged in Civil Rights CaseRead the Press Release
PHILADELPHIA - Pennsylvania State Trooper Kelly Cruz, 43, of Oxford, Pennsylvania, was charged in a one count indictment, unsealed today, with deprivation of civil rights, announced United States Attorney Zane David Memeger.
The indictment alleges that on August 9, 2009, Cruz, while working as a State Trooper, kicked Z.B. in the back of the head as Z.B. was lying face down on the floor in handcuffs. As a result of the kick, Z.B. suffered bodily injury that required surgery to repair his teeth.
If convicted, the defendant face a maximum possible sentence of 10 years in prison.
The case was investigated by FBI-Newtown Square Office and is being prosecuted by Assistant United States Attorneys L.C. Wright and Maureen McCartney.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Six Men Sentenced for Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that five men from South Dakota and one man from Minnesota, convicted of Unlawful Taking of Migratory Birds and Lacey Act Violations, were sentenced by U.S. Magistrate Judge John E. Simko on August 19, 2013.
Eight men were originally charged in this case, with one sentence handed down on July 15, 2013, and the remaining sentence scheduled for August 28, 2013.
The individuals sentenced today include:
• Jaron Anderson, age 22, of Brookings, South Dakota, was sentenced to 3 years of probation; a $200 fine; $4,875 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Anderson’s hunting privileges are revoked for a period of 3 years.
• Aaron Eich, age 29, of Sioux Falls, South Dakota, was sentenced to 2 years of probation; a $200 fine; $4,875 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Eich’s hunting privileges are revoked for a period of 2 years.
• Christopher Paclik, age 22, of Brookings, South Dakota, was sentenced to 1 year of probation; a $200 fine; $4,050 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Paclik’s hunting privileges are revoked for a period of 1 year.
• Austin Lueck, age 21, of Lake Benton, Minnesota, was sentenced to probation until January 13, 2015; a $200 fine; $3,750 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Lueck’s hunting privileges will be revoked for 1 year starting on January 13, 2014.
• Scott Nenaber, age 33, of Alpena, South Dakota, was sentenced to 1 year of probation; a $200 fine; $2,175 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Nenaber’s hunting privileges are revoked for a period of 1 year.
• Ben Burgess, age 30, of Sioux Falls, South Dakota, was sentenced to 1 year of probation; a $200 fine; $825 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Burgess’ hunting privileges are revoked for a period of 1 year.
Nicholas Connor, age 21, of Winfred, South Dakota, will be sentenced on August 28, 2013.
Travis Vacek, age 34, of Sioux Falls, South Dakota, previously pled guilty to Unlawful Taking of Migratory Birds and a Lacey Act Violation, and was sentenced on July 15, 2013, to 1 year of probation; a $200 fine; $1,350 in restitution; and a $25 special assessment to the Federal Crime Victims Fund. Vacek’s hunting privileges are revoked for a period of 1 year.
The charges stem from a case wherein Anderson, Burgess, Connor, Eich, Lueck, Nenaber, Paclik and Vacek, a group of friends known as “Team Those Guys,” hunted between November 24, 2012 and November 29, 2012 in Miner County, South Dakota. In total, the hunters illegally killed 417 geese and 6 Canada geese using an electronic device. They all admitted they knew it was illegal to use said device while goose hunting during that time of year. After killing the geese, they were transported from the field to various locations in violation of federal law.
The investigation was conducted by the U.S. Fish & Wildlife Service and the South Dakota Game, Fish & Parks. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Shands Healthcare to Pay $26 Million to Resolve Allegations<br /> Related to Inpatient Stays at Six Florida HospitalsRead the Press Release
Shands Teaching Hospital & Clinics Inc., Shands Jacksonville Medical Center Inc. and Shands Jacksonville Healthcare Inc. (collectively, Shands Healthcare), which operates a network of health care providers in Florida, will pay the government and the state of Florida a total of $26 million to settle allegations that six of its health care facilities submitted false claims to Medicare, Medicaid and other federal health care programs for inpatient procedures that should have been billed as outpatient services, the Justice Department announced today. The six Florida hospitals are: Shands at Jacksonville; Shands at Gainesville, also known as Shands at the University of Florida; Shands Alachua General Hospital; Shands at Lakeshore; Shands Starke and Shands Live Oak.
“The Department of Justice is committed to ensuring that Medicare funds are expended appropriately, based on the medical needs of patients rather than the desire of health care providers to maximize profits,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “Hospitals participating in Medicare must bill for their services accurately and honestly.”
Allegedly, from 2003 through 2008, the six hospitals knowingly submitted inpatient claims to Medicare, Medicaid and TRICARE for certain services and procedures that Shands Healthcare knew were correctly billable only as outpatient services or procedures.
“The public expects its medical professionals to operate with a high degree of integrity,” said A. Lee Bentley III, Acting U.S. Attorney for the Middle District of Florida. “When health care providers seek higher profits at the expense of their professional judgment, the public trust in the medical system is compromised.”
“Regardless of the complexity of these schemes to siphon off crucial health care dollars,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services, “our law enforcement officials will work tirelessly to seek justice.”The six Florida hospitals were named as defendants in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to sue on behalf of the government and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in Jacksonville, Fla., by Terry Myers, the president of a healthcare consulting firm, YPRO Corp. Of the $26 million settlement, $25,170,400 will go to Medicare and other federal health care payors. The settlement also resolved allegations under the Florida False Claims Act; the state of Florida will receive $829,600. Myers’ portion of these recoveries has yet to be determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida, the Commercial Litigation Branch of the Justice Department’s Civil Division, the Department of Health and Human Services’ Office of Inspector General and Office of Counsel to the Inspector General, and the Florida Attorney General’s Office.
The claims resolved by these settlements are allegations only, and there has been no determination of liability. The lawsuit is captioned United States of America and the State of Florida ex rel. Terry L. Myers v. Shands Healthcare et al., Civil Action No. 3:08-cv-441-J-16HTS (M.D. Fla.).Seneca Falls Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Lawrence Higgins, 62, of Seneca Falls, N.Y., pleaded guilty to possession of child pornography and being a felon in possession of a firearm before the U.S. District Court Judge Charles J. Siragusa. As a result of a prior Seneca County conviction for sex abuse in the first degree, possession of child pornography carries a mandatory minimum penalty of 10 years, a maximum penalty of 20 years, and a fine of $250,000. Being a felon in possession of a firearm carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the United States Postal Inspection Service received information that the defendant ordered DVD's depicting child pornography. From November 2008 to March 2011, Higgins made 11 purchases. The DVDs were delivered to an address located on State Street in Seneca Falls, N.Y. where a search warrant was executed on November 14, 2012. Higgins admitted to ordering the DVDs and possessing thousands of images of child pornography and hundreds of hours of videos of child pornography on his computers and digital storage media. The defendant also possessed a rifle and ammunition.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector in Charge, Kevin Niland, Boston Division.
Sentencing is scheduled for November 25, 2013, before Judge Siragusa.Sanostee, N.M., Man Sentenced to Five Years in Federal Prison for Aggravated Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Lorenzo Begay, 49, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., was sentenced this afternoon to five years in prison followed by five years of supervised release for his aggravated sexual abuse conviction. Begay will be required to register as a sex offender after he completes his prison sentence.
Begay was arrested in Jan. 2012, on a criminal complaint alleging that he sexually abused a child under the age of 12 from July 2010 through June 2011, within the boundaries of the Navajo Nation Reservation. Begay subsequently was indicted on that same charge. According to court filings, the investigation into Begay was initiated after law enforcement authorities received a referral from the Navajo Nation Division of Social Services after the child victim disclosed the sexual abuse to a school social worker.
On May 15, 2013, Begay entered a guilty plea to a felony information charging him with aggravated sexual abuse and admitted sexually abusing the child victim. Begay was remanded into federal custody after entering his guilty plea.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Office of the Navajo Nation Division of Public Safety. It was prosecuted by Assistant U.S. Attorney Jacob A. Wishard 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/.
Sandusky Man Sentenced to Three Months Custody, Ordered to Pay $489,007 for False Distress Calls That Caused Lake Erie SearchRead the Press Release
A Sandusky man was sentenced to three months in federal custody and ordered to pay $489,007 in restitution after for making a false distress call that caused a massive search on Lake Erie, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Danik Shiv Kumar, 21, pleaded guilty earlier this year to one count of making a false distress calls.
On the evening of March 14, 2012, Kumar took off in a Cessna single-engine plane for a solo flight from Burke Lakefront Airport to Bowling Green State University. About 30 minutes into his flight, Kumar called the Cleveland-Hopkins Airport control tower and reported seeing a vessel “launching up flares,” according to court documents.Moments later, when asked for additional details about the vessel in distress, Kumar responded “a 25-foot fishing vessel I guess you could say. Everyone had a life jacket with a strobe light. I counted four of them,” according to court documents.
The information was relayed to the Coast Guard, which immediately dispatched two vessels. The crew of the Coast Guard Cutter Thunder Bay searched for 21 hours, while multiple boat crews from Coast Guard Station Lorain, Ohio, searched for about 16 hours. Rescue helicopter crews from Coast Guard Air Station Detroit joined in the search, as did a Canadian Coast Guard airplane crew from Joint Rescue Coordination Centre Trenton, Ontario, according to court documents.
More than a month later, Kumar admitted that he never saw flares or a boat in distress and there were never any people in need of help. He also admitted that when he landed at Bowling Green, he knew the USCG was searching with full force but chose not to report the truth, according to court documents.
The $489,007 restitution amount represents the cost of the search. The amount is comprised of the $277,257 expended by U.S. agencies and the $211,750 cost to the Canadian government. Kumar was also sentenced to 250 hours of community service and three years of supervised release.“I am concerned that there are people who are willing to risk the lives of other boaters who might be in legitimate need of rescue or assistance, as well as needlessly endanger response crews, by knowingly making a false distress calls,” said Capt. Eric Johnson, chief of the Coast Guard 9th District Incident Management Branch.
This case is being prosecuted by Assistant United States Attorney Michelle Baeppler and Coast Guard Lt. Michael Petta, who was designated Special Assistant United States Attorney. The case was investigated by the United States Coast Guard.
San Felipe Pueblo Man Pleads Guilty to Federal Child Sex Abuse ChargeRead the Press Release
ALBUQUERQUE – Orian P. Sandoval, 43, a member and resident of San Felipe Pueblo, pleaded guilty this morning to an indictment charging him with abusing sexual contact with a child between the age of 12 and 16 years. Sandoval entered his guilty plea without the benefit of a plea agreement.
Sandoval was indicted on an abusive sexual contact charge on June 26, 2013, and made his first appearance in federal court on July 11, 2013. According to the indictment, Sandoval engaged in sexual contact with a child between the age of 12 and 16 years on a date between Dec. 1, 2010 and Jan. 31, 2011, in Indian Country located in Sandoval County, N.M.
Today, Sandoval pleaded guilty to the indictment. Sandoval was remanded into the custody of the U.S. Marshals Service after entering his guilty plea and will remain in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sandoval faces a maximum penalty of two years in federal prison and a term of supervised release to be determined by the court. He will be required to register as a sex offender when he completes his prison sentence.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services. It is being prosecuted by Assistant U.S. Attorney Paul H. Spiers 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/.
Richland County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
A Richland County man was sentenced on August 15, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Brian Kelly Jenner, 50, of Olney, was sentenced to 120 months in prison, to be followed by four years supervised release, and fined $200. Jenner had previously pleaded guilty to a two count federal indictment. Count 1 charged that from April 2010, until on or about September 2012, in Richland County, Jenner conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine. Count 2 charged that from April 23, 2010, to September 13, 2012, in Richland County, Jenner possessed pseudoephedrine pills knowing and having reasonable cause to believe that the pills would be used to manufacture methamphetamine.
The investigation was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Retired Educator Sentenced to Prison for FraudRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Gloria Donoghue was sentenced today in federal court in the Eastern District of New York to18 months in prison for using the mail in her tax refund scheme. Donoghue was also ordered to pay restitution of $320,621 to the IRS.
According to the superseding indictment, Donoghue was charged with making false claims against the United States, through the filing of three trust returns, each of which claimed false refunds of $300,000. She was also charged with causing Treasury checks for those years to be mailed to Roosevelt, N.Y. In April 2013, Donoghue pleaded guilty to one count of mail fraud. As part of her plea agreement, Donoghue agreed to the forfeiture of over $579,378.
This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorneys Jennifer R. Laraia and Erin Pulice of the Justice Department's Tax Division.
Rapid City Man Sentenced for Illegally Possessing FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on August 14, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Daniel Thomas, age 31, was sentenced to 46 months of imprisonment, 2 years of supervised release, and was ordered to pay $100 to the Federal Crime Victims Fund.
On July 23, 2012, at Red Shirt, South Dakota, Thomas went to a residence with a .38 caliber Colt Cobra revolver, and when the person in the house got to the door, Thomas displayed the gun in his hand and asked where his “stuff” was. On that same date, Thomas kicked another individual and pointed the gun at that person. Thomas is prohibited from possessing firearms based on previous felony convictions, including possession of heroin, manufacturing or delivering a controlled substance, and taking a motor vehicle without permission.Pleasant Hill Man Sentenced to 15 Years for Distribution of Child PornographyRead the Press Release
OAKLAND – Laurence Pullen was sentenced today to 15 years in prison for distribution of child pornography, announced United States Attorney Melinda Haag.
Pullen, 60, of Pleasant Hill, was indicted by a federal grand jury on November 29, 2012. He pleaded guilty on April 22, 2013. According to the plea agreement, Pullen admitted to distributing over the Internet videos of minors engaged in sexually explicit conduct with adults.
The sentence was handed down by U.S. District Court Judge Claudia Wilken following a guilty plea on Count One of the Indictment in violation of 18 U.S.C. § 2252(a)(2). Judge Wilken also sentenced the defendant to a ten year period of supervised release and ordered him to register as a sex offender and to participate in a sex offender treatment program.
Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by Homeland Security Investigations.
Pierre Woman Convicted of Theft of Governement FundsRead the Press Release
United States Attorney Brendan V. Johnson announced that Brandis Rose Rose, age 37, from Pierre, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 14, 2013, and pled guilty to Theft of Government Funds.
The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; restitution; and $100 to the Federal Crime Victims Fund.
The conviction stems from incidents that occurred when Rose embezzled, stole, purloined or knowingly converted to her own use over $8,000 in Old Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) program funds to which she was not entitled.
South Dakota CARES (SD CARES) is a Social Security Administration (SSA) approved fee-for-service organizational payee that serves Social Security and SSI beneficiaries in South Dakota. Rose was an employee of SD CARES from July 6 through November 16, 2009. During that time, Rose handled the accounts for 14 beneficiaries that were under her care and control.SD CARES became concerned about the possibility of misappropriated funds in February 2010 and reported it to the SSA District Office in Huron. The SSA Office of Inspector General conducted an audit and interviewed the 14 beneficiaries under Rose’s care and control. They determined that Rose misappropriated $8,718.08 and converted it to her own use.
The investigation was conducted by the SSA Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Jay Miller.
A presentence investigation was ordered and a sentencing date was set for October 28, 2013. Rose was released on bond pending sentencing.Physician Sentenced to Prison in Million Dollar Power Wheelchair ScamRead the Press Release
United States Attorney Laura E. Duffy announced that Irving J. Schwartz, M.D. was sentenced today to 5 months in prison, followed by 5 months in a half-way house, for his involvement in a scheme to defraud the Medicare trust fund by writing hundreds of false and fraudulent prescriptions for costly medical equipment that was not medically necessary. Dr. Schwartz was also ordered to pay restitution of $593,429.81 to the Medicare trust fund, and to forfeit $55,800 in kickbacks that he received for his role in the fraudulent scheme.
The Medicare program is a federally-funded health insurance program that provides health care services and equipment — including power wheelchairs to qualifying individuals who cannot walk without assistance. Prior to receiving this expensive equipment, however, a medical doctor must write a prescription certifying that the Medicare beneficiary has a medical need for the power wheelchair. In this case, Dr. Schwartz abused his position as a licensed physician by writing prescriptions for pricey medical equipment without any regard for the wants or needs of his patients.
The scheme focused on the sale of fraudulent power wheelchair prescriptions, with the end-goal being to obtain reimbursements from Medicare for power wheelchairs that patients did not need. Dr. Schwartz and a Co-conspirator named Gloria Hernandez would travel to El Centro, California in search of elderly Medicare patients. Schwartz would then write the patients prescriptions for power wheelchairs, even though the patients did not need the equipment and could walk without assistance. Schwartz collected a $300 cash kickback in exchange for each power wheelchair prescription. Hernandez would then sell the power wheelchair prescriptions to a medical supply owner named Jose Melendez (another Co-Conspirator), charging him $1,000 per fraudulent prescription.
Melendez, in turn, sold some of the power wheelchair prescriptions to other co-conspirators, charging an additional mark-up on each prescription. As the last step in the scheme, Melendez and the other co-conspirator owners of medical supply companies would submit the fraudulent prescriptions to Medicare for reimbursement, billing up to $5,865 for each power wheelchair.
In his plea agreement, Dr. Schwartz admitted that he wrote at least 186 fraudulent power wheelchair prescriptions for Medicare beneficiaries in exchange for more than $55,000 in bribes and kickbacks. Melendez, the owner and operator of Oceanside Medical Services, purchased these 186 fraudulent prescriptions and used them to submit over $830,000 in false claims to Medicare. In a related case, co-conspirators Aristeo and Laura Tavares admitted to submitting more than $250,000 in false claims, based on Dr. Schwartz’s fraudulent prescriptions. In total, the scheme resulted in more than $1 million in false claims to the Medicare trust fund.
During today’s hearing, prosecutors described Dr. Schwartz’s conduct as an egregious breach of trust and an abuse of his position as a medical doctor. In one case, Dr. Schwartz wrote two power wheelchair prescriptions for a husband and wife living in El Centro. Four years after Medicare paid for the expensive equipment, the power wheelchairs were still wrapped in the original plastic covering and sat unused in the couple’s home – except during Christmas when one wheelchair was used as a Christmas tree stand. The husband and wife were both able to walk without difficulty, and they told federal agents that they never asked for the costly equipment, never needed it, and never used it. United States District Court Judge Marilyn L. Huff chastised Dr. Schwartz in open court, remarking that “he should have known better,” and reminding Dr. Schwartz that these types of schemes take valuable government resources away from elderly patients who actually need expensive medical equipment.
United States Attorney Duffy said, “As a physician, Dr. Schwartz was licensed to operate in a system dependent on trust and honesty. He knew it was illegal to write false and fraudulent prescriptions, yet he purposefully engaged in criminal activity in order to line his own pockets at the expense of the Medicare program and the American taxpayer.”
DEFENDANTS CRIMINAL CASE NO. 12cr2599-H Irving Schwartz SUMMARY OF CHARGESCount 1: Conspiracy to Pay and Receive Health Care Kickbacks and Defraud -Title 18, United States Code, Section 371; Maximum Penalties: Five years in custody; $250,000 fine; 3 year of supervised release; and mandatory restitution
INVESTIGATING AGENCIESFederal Bureau of Investigation
Department of Health and Human Services, Office of Inspector GeneralParkersburg Pedophile Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
Jeffrey Kesterson had more than 600 images of child pornography on two computers
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that a Parkersburg pedophile faces up to 10 years in prison after pleading guilty today to a federal child pornography offense. Jeffrey E. Kesterson, 54, pleaded guilty to possession of child pornography today before Chief United States District Judge Robert C. Chambers in Huntington. On November 16, 2011, Kesterson possessed on his computers more than 600 pictures and videos of children having sex or performing sexual acts.
The child pornography was found on two of Kesterson’s computers after he downloaded it from the Internet. Kesterson received and shared child pornography using a peer-to-peer file sharing program called LimeWire, which allows Internet users to download files from other people’s computers around the world.
Kesterson is scheduled to be sentenced on November 18, 2013.
The West Virginia Internet Crimes Against Children Task Force and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Omaha Man Sentenced in Spa Prostitution CaseRead the Press Release
United States Attorney Deborah R. Gilg announced that William Knox, age 64, was sentenced today in Omaha by Chief United States District Judge Laurie Smith Camp to 12 months plus 1 day in federal prison, followed by 2 years of supervised release following his convictions on two counts of violating federal law. He was also fined $50,000 for each count. Mr. Knox had previously pled guilty to one count of conspiracy to use facilities in interstate commerce in aid of a racketeering enterprise, that is, a business enterprise involving prostitution, and to induce travel in interstate commerce with intent to engage in prostitution, and one count of conspiracy to commit money laundering. Mr. Knox also forfeited a 2005 Ford Expedition, a 2004 Nissan Roadster and three bank accounts totaling $4,641.89. In addition, Mr. Knox paid $225,000.00 in satisfaction of a money judgment for proceeds of the offense.
Starting in the late 1990’s, and continuing to 2012, Mr. Knox owned and managed a “spa” in Omaha, Nebraska. The spa had different names over time, but was frequently referred to as the Ninety Third Street Spa.
Ninety Third Street Spa was, in fact, a front for prostitution. The majority of customers received sex acts from the workers, rather than legitimate spa services, in exchange for money. Some customers traveled to the spas from Iowa and from other states to obtain sex acts for money.
Mr. Knox generally hired someone to work at the front desk, take appointments, collect money and schedule workers. Customers paid a fee that varied by the length of the “session.” That fee was kept by Ninety Third Street Spa. Customers separately negotiated a “tip” with the worker, which the worker kept. Mr. Knox had “sessions” with workers, during which he obtained sex acts in exchange for money.Mr. Knox also negotiated agreements with others to buy Ninety Third Street Spa as an ongoing business and make payments to Mr. Knox over time. Mr. Knox never ultimately completed the sale of Ninety Third Street Spa.
Mr. Knox and others acting at his direction deposited revenue generated by the operation of Ninety Third Street Spa into a bank account which Mr. Knox opened and controlled, under the name NTS Spa, Ltd. dba Ninety Third Street Spa (“Spa Bank Account”). Mr. Knox wrote checks drawn on the Spa Bank Account for “management fees” and deposited them into another account he had opened, under the name Knox Contracting & Development, William R. Knox (“KCD Bank Account”). Mr. Knox wrote checks drawn on the KCD Bank Account for particular “pay periods” and deposited them into a personal checking account he had opened under his name.
Mr. Knox placed advertisements for Ninety Third Street Spa on the internet. Customers arranged appointments using cellular telephones and other facilities in interstate commerce.
During the time when Mr. Knox owned and managed Ninety Third Street Spa, there were five or more participants operating and managing it and an overall total of more than twenty workers providing commercial sex acts.
The investigation was conducted by the Federal Bureau of Investigation, the Omaha Police Department and the Internal Revenue Service, under the auspices of the Child Exploitation Task Force, which also includes the Council Bluffs Police Department, the Douglas County Sheriff’s Office, the La Vista Police Department, the Mills County Sheriff’s Office and the Nebraska State Patrol.
North Huntingdon Man Sentenced for Mail Fraud, Witness Tampering & False StatementsRead the Press Release
PITTSBURGH, Pa. - A resident of North Huntingdon, Pa. has been sentenced in federal court to three years of probation; eight months of home detention with electronic monitoring; restitution of $14,639.86, and he has been ordered to pay a fine of $10,000 on his conviction of mail fraud, witness tampering and false statements to the government, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerr y imposed the sentence on Danny A. Patel, 46.
According to information presented to the court, Patel managed a BP gas station in McKeesport, Pa. Patel submitted false insurance claims to Harleysville Insurance Company arising from a December 25, 2011 accident at the BP. Patel also admitted that he lied to FBI agents and obstructed justice by asking witnesses to lie to FBI agents.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U. S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Patel.
Non-Native Man from Shiprock Pleads Guilty to Federal Child Sex Abuse Charge Involving Navajo ChildRead the Press Release
ALBUQUERQUE – Bruce Hamilton, 77, a non-Native who resides in Shiprock, N.M., pleaded guilty this morning to sexually abusing a minor. Under the terms of his plea agreement, Hamilton will be sentenced to a federal prison term within the range of two to five years followed by a term of supervised release to be determined by the court. Hamilton will be required to register as a sex offender when he completes his prison sentence.
Hamilton and co-defendants Herbert Ben, Sr., 63, and Rosabelle Ben, 58, both members of the Navajo Nation from Shiprock, were arrested in May 2012, based on a criminal complaint alleging child sex abuse offenses. All three subsequently were indicted and charged with sexual abuse of a child between the age of 12 and 16 years, and aiding and abetting the sexual abuse of a child.
Today, Hamilton pleaded guilty to sexual abuse of a ward or minor and admitted sexually abusing a Navajo child between the age of 12 and 15 years on a date between Aug. 2010 and Dec. 2011. Hamilton further admitted committing this crime in a building located within the Navajo Indian Reservation.
Co-defendant Ben, Sr., pleaded guilty on July 31, 2013, to sexual abuse of a minor and admitted that, on a day between Aug. 2010 and Dec. 2011, he sexually abused the victim at a location within the Navajo Reservation. Under the terms of his plea agreement, Ben, Sr., will be sentenced to a federal prison term within the range of two to five years followed by a term of supervised release to be determined by the court. Ben, Sr., also will be required to register as a sex offender.
Co-defendant Rosabelle Ben has entered a not guilty plea and is pending trial. The charges against Rosabelle Ben are merely accusations and she is presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. It is being prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Novaline D. Wilson 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/.
Mull Sentenced to 37 Months in PrisonRead 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
Court also orders forfeiture of vehicles, payment of money judgment
WHEELING, WV – United States Attorney William J. Ihlenfeld, II, announced today that KYMBERLY MULL, 44 years of age of Wheeling, WV, was sentenced to 37 months in federal prison for her role in a drug trafficking conspiracy.
In June, MULL pleaded guilty to the offense of “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.” MULL agreed that between September of 2011 and February of 2012 she conspired with others to sell heroin, cocaine, and oxycodone pills. MULL admitted to delivering or aiding the delivery of these drugs to undercover officers and confidential informants on at least twelve occasions during a six month period.
The investigation leading to the charges included extensive surveillance, controlled purchases of narcotics, executions of search warrants, and seizures of narcotics, automobiles, and United States Currency. The source state for most of the heroin referenced in the Mull indictment was Pennsylvania, while the pain pills came from Pennsylvania, Ohio, and West Virginia.
As part of her sentence, MULL must make payment of $11,000 to the Ohio Valley Drug Task Force as reimbursement for funds that were paid to her during the controlled purchases of narcotics. She must also pay a money judgment of $50,000 to the United States of America as well as forfeit a 2011 Chevrolet Corvette, a 2005 Hummer H2, and a 2003 Dodge Ram 2500 Quad Cab. She will be placed onto three years of supervised release after she has served the prison sentence.
Assistant United States Attorney Randolph J. Bernard was the lead prosecutor and was assisted by Ihlenfeld. The matter was investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police, and the Drug Enforcement Administration. Substantial assistance was provided by the Hancock-Brooke -Weirton Drug Task Force, which includes Weirton Police Officers, Hancock County Sheriff’s Deputies, and DEA Agents. Assistance was also provided by the Pennsylvania State Police.
Mobridge Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man has been charged by Criminal Complaint for Failure to Register as a Sex Offender.
Troy Justin Plenty Chief, age 31, was charged on August 8, 2013, and appeared before U.S. Magistrate Judge William D. Gerdes on August 15, 2013, and pled not guilty to the Complaint.
The maximum penalty upon conviction is up to 10 years of imprisonment, a $250,000 fine, a mandatory minimum term of 5 years of supervised release, an additional mandatory minimum of 5 years up to life of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Plenty Chief is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Plenty Chief was released on bond pending trial. A trial date has not been set.Marietta Man Sentenced to Federal Prison for Filing False Claims with the IRSRead the Press Release
ATLANTA - Arnold Tobias Gervais, has been sentenced for defrauding the IRS out of more than $3.4 million in federal income tax refunds while he was in state custody.
“Those who cheat the IRS take money away from everyone who pays his or her fair share of taxes,” said United States Attorney Sally Quillian Yates. “The United States Attorney’s Office and the IRS are on the lookout for tax cheats and will aggressively pursue those individuals who try to beat the system.”
“Today’s sentence hopefully reassures the public that individuals who attempt to enrich themselves at the expense of the United States Treasury will be held accountable.” stated Special Agent in Charge, Veronica Hyman-Pillot. “IRS Criminal Investigation will continue to aggressively pursue those individuals who utilize fraudulent methods to steal from the American taxpayer.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “It is hoped that today’s sentencing of Mr. Gervais, the second conviction for him on false tax filing related charges, will have a sufficient deterrent impact on him. The FBI will continue to work with its various law enforcement partners in investigating such matters involving income tax refund fraud.”
According to United States Attorney Yates, the charges and other information presented in court: Gervais was convicted in May 2008 and sentenced to five years in prison by the Superior Court of Cobb County, Ga., for theft by taking after he submitted a fraudulent tax return in an attempt to obtain a tax refund of more than $600,000 from the State of Georgia. Gervais was incarcerated on that charge from July 13, 2007, through February 26, 2010.
On March 16, 2009, while in state custody, Gervais caused his then wife to file a phony 2008 Form 1040 with the IRS. The tax return contained a claim for payment of an income tax refund in the amount of $811,073, which Gervais knew to be false, fictitious, and fraudulent.
In addition, Gervais filed, or caused to be filed, six more false claims for federal income tax refunds - five in his own name for tax years 2004, 2005, 2006, 2007, and 2009, and one in the name of an acquaintance for tax year 2009. All seven of the returns claimed false wages and federal tax withholding. And all seven of the returns falsely claimed that the taxpayer had earned a significant amount of wages from a fictitious company called “Safety Shoes & More, Inc.,” which was allegedly located in Rome, Ga. The returns also falsely claimed that the corporation had withheld from those wages a significant amount of federal income tax. The total amount of fraudulent tax refunds that Gervais sought from the IRS was $3,488,135. Of that amount, the IRS paid $2,832,268.
The United States Attorney’s Office filed two civil forfeiture actions, which resulted in the seizure of $2,232,012 from accounts controlled by Gervais, thereby reducing the out-of-pocket loss to the IRS.
Gervais, 34, of Marietta, Ga., was sentenced by United States District Judge Timothy C. Batten, Sr. to serve the statutory maximum of 5 years in prison. He was also ordered to serve 3 years on supervised release following his prison term and ordered to pay $2,832,268 in restitution to the IRS. On January 16, 2013, Gervais pleaded guilty to a Criminal Information charging him with filing false claims for income tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
Assistant United States Attorneys Russell Phillips and Michael J. Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.Man Admits Enticing Minor to Engage in Sexual ActivityRead the Press Release
Defendant Pleads Guilty on Friday; Trial Was to Have Begun Today
DALLAS, Texas — Phillip Amisano-Camillo, 42, a resident of Canada, pleaded guilty on Friday, before U.S. District Judge Jorge A. Solis, to one count of enticement of a minor. His trial, on a two-count indictment charging not only enticement, but also one count of traveling with intent to engage in sexual acts with a minor, was to have begun this morning in federal court in Dallas. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the plea agreement filed in the case, the parties agree that the appropriate term of imprisonment is not more than 480 months, if the court accepts the plea agreement. Sentencing is set for December 18, 2013, before Judge Solis.
According to documents filed in the case, Camillo admits that he met John Doe in an Internet chat room in April 2012. In the days and weeks after he met Doe, who he knew was a 14-year-old minor, Camillo “chatted” online with him via Skype. Camillo admits that in May 2012 he traveled from Washington State to Dallas to meet John Doe for a sexual encounter. Camillo also admits that before and during his time in the Dallas/Fort Worth area, he enticed and persuaded John Doe to sneak out of his home and meet him to engage in unlawful sexual activity. Camillo admits that he took John Doe to a local hotel and engaged in sexual activity with him.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Irving Police Department. Assistant U.S. Attorney Lisa J. Miller is in charge of the prosecution.
Local Business Executive Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
The former Vice President of a Detroit based construction management firm entered a plea of guilty today as part of the ongoing federal investigation and prosecution involving the Garden View Estates public housing project in Detroit, Michigan, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation (FBI), Randall Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CI), and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development - Office of Inspector General (HUD-OIG).
Calvin Hall, 45, of Detroit, entered the guilty plea in United States District Court before Judge David M. Lawson.
According to court documents, Hall and others prepared and submitted a proposal for XCEL Construction Services, Inc. which included false information. Based upon the false documents, XCEL Construction Services, Inc. was awarded a contract worth more than $11 million to act as the construction manager of the infrastructure phase of the Garden View Estates public housing project, which was funded by a $24 million grant from the U.S. Department of Housing and Urban Development. At the time, Hall was the Vice President of XCEL Construction Services.
During the plea hearing, Hall stated that he conspired with Michael Woodhouse, the President of XCEL Construction Services, Inc., and Bobby W. Ferguson, the founder and original owner of XCEL Construction Services, Inc.
United States Attorney McQuade stated, "We hope that this conviction will deter people from committing fraud against public housing programs, which are intended to provide housing to needy people in our community.”
FBI Special Agent in Charge Foley said, "Those who use false documents to receive millions of dollars in government contracts will face severe consequences for their illegal acts. The FBI will remain committed to pursuing and prosecuting such criminals."
HUD-OIG Special Agent in Charge McLaughlin said, The funds for this project were dedicated to improve the quality of life for Detroit’s neediest families. Working with our law enforcement partners, the Office of Inspector General for HUD will redouble our efforts to combat the fraud that limits that opportunity”.”
Under the plea agreement, Hall faces up to 18 months of imprisonment, as well as a fine of up to $40,000. In addition, Hall agreed to forfeit more than $2.2 million in assets, including multiple bank accounts and certificates of deposit seized from XCEL Construction Services, Inc. during the course of the federal investigation.
This case is being prosecuted by Assistant United States Attorneys J. Michael
Buckley, Bruce Judge and Rita Foley.Kansas City, Kan., Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
KANSAS CITY, KAN. – A tax preparer from Kansas City, Kan., has pleaded guilty to preparing false federal income tax returns for other people, U.S. Attorney Barry Grissom said today.
Kelly N. Kittrell, 42, pleaded guilty to count two of an indictment charging her with preparing false income tax returns. The indictment alleged Kittrell prepared false tax returns for 13 clients. Count two alleged that on April 6, 2009, she submitted a form 1040A for tax year 2008 in which she falsely stated that a client had received $13,859 in wages and paid $2,698 in taxes. As a result of the falsely claimed wages and tax payments, the tax return prepared by Kittrell fraudulently demanded a refund of $9,226, to which her client was not entitled.
Sentencing is set for Feb. 10, 2014. She faces a penalty of not more than three years in federal prison and a fine up to $250,000. Grissom commended IRS - Criminal Investigation, Justice Department Tax Division Trial Attorney Matthew Kluge and Assistant U.S. Attorney Scott Rask for their work on the case.Justice Department Reaches Interim Olmstead Settlement with the State of TexasRead the Press Release
The Justice Department’s Civil Rights Division announced today that it has joined with private plaintiffs in entering an interim settlement agreement with the state of Texas intended to enable Texans with intellectual and other developmental disabilities to live in community settings rather than nursing facilities. The interim agreement calls for the state to begin expanding community alternatives to nursing facilities for thousands of persons with these types of disabilities, while the parties temporarily suspend their ongoing litigation and work to negotiate a comprehensive settlement of all remaining issues in the case.
The litigation involves claims that the state has not complied with the Americans with Disabilities Act (ADA), other federal statutes and the Supreme Court’s landmark decision in Olmstead v. L.C. in ways leading to the needless institutionalization of people with intellectual and other developmental disabilities in nursing facilities.
“We applaud the state’s commitment to initiate steps providing real options to Texans with intellectual and other developmental disabilities, so that they can live and engage in their own communities, rather than spend their lives in nursing facilities,” said Acting Assistant Attorney General for Civil Rights Jocelyn Samuels. “The Supreme Court made clear more than a decade ago that people with disabilities must be provided the same opportunities to participate in community life as those without disabilities. This agreement is an important step to making that promise a reality in Texas.”
The interim agreement offers meaningful improvement in the lives of people like plaintiff Eric Steward. After spending nearly a decade in a nursing facility, Mr. Steward recently moved to his own home in San Antonio and, for the first time, attended the city’s annual celebration and street festival. There are thousands of people who remain unnecessarily segregated, and the interim agreement will help ensure that they, like Mr. Steward, have opportunities to live their lives as they want.
The interim agreement calls for the state to identify people with developmental disabilities in nursing facilities, inform them about community options and help those who want to move to the community receive the services that they need there, instead of in a nursing facility. In addition, the state will establish a system to help divert people from avoidable nursing facility admission.
Private plaintiffs filed suit against the state in 2010, represented by Disability Rights Texas, the Center for Public Representation, and the law firm of Weil, Gotshal & Manges LLP. The Justice Department intervened in the case in 2012. The department and private plaintiffs subsequently entered into extensive settlement negotiations with the state, leading to this interim agreement. It is the Department of Justice’s first statewide settlement to vindicate the Olmstead rights of individuals in nursing facilities.
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit http://www.justice.gov/crt and http://www.ada.gov to learn more about the ADA and other laws enforced by the Justice Department’s Civil Rights Division.
This agreement is due to the efforts of Alison Barkoff, Special Counsel for Olmstead Enforcement and the following staff members of the Civil Rights Division, Special Litigation Section: Jonathan Smith, Chief ; Benjamin Tayloe, Deputy Chief; Robert Koch, Regan Rush and Alexandra Shandell, Trial Attorneys; and Gary Graca, paralegal
Houston Man Gets Significant Sentence for Drug Trafficking Through Falfurrias CheckpointRead the Press Release
CORPUS CHRISTI, Texas - Luis Perez-Barocela, 38, has been ordered to prison for more than 24 years for his participation in a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today. A federal jury in Corpus Christi found Perez-Barocela, of Houston, guilty after three days of trial and less than three hours of deliberation on Thursday, May 30, 2013.
Today, Senior U.S. District Judge John Rainey, who presided over the trial, handed Perez-Barocela a 292-month sentence for conspiracy to possess with the intent to distribute more than 1000 kilograms of marijuana from October 2011 until his arrest on Oct. 24, 2012. Perez-Barocela will also be required to serve a term of five years of supervised release following completion of the prison term.
Evidence at trial established that the organization moved large amounts of marijuana in tractor-trailers hauling produce through the Falfurrias Border Patrol checkpoint and on to other major cities within the United States. From October 2011 until April 2012, approximately 4,000 kilograms of marijuana was seized. Those seizure have, to date, resulted in the convictions of three tractor-trailer drivers, Jose Benitez, 46, of Houston, Ernesto Cabrera-Enriquez, 39, of Miami, Fla., Noe Galindo, 37, of Weslaco, as well as Oscar Quijano, 43, of Dallas.The government proved Perez-Barocela was responsible for recruiting drivers in the scheme. He and his co-defendants were also tasked with escorting the loads through the checkpoint while safely situated in other passenger vehicles and maintaining contact with the drivers by phone.
Drivers Benitez, Cabrera-Enriquez, Galindo and others provided testimony they were each recruited by Perez-Barocela and offered between $15,000 and $55,000 to drive approximately 700 pounds of marijuana through the checkpoint and on to various cities within the United States. However, they learned upon their arrest that they had actually been hauling between 1,200 and 2,800 pounds.
Agents with the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI) testified as to photographs showing Perez-Barocela, his co-defendants and/or vehicles associated with the defendants passing through the checkpoint often within minutes of load vehicles. Additionally, the jury heard testimony regarding cellular telephone records that demonstrated contact between Perez-Barocela and the drivers in the days and weeks leading up to their arrest.
Perez-Barocela will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by DEA, HSI and Border Patrol. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.
Hogsett Announces Arrest of Eastern Indiana Man on Child Exploitation ChargesRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Derek Walton, age 31, of Liberty, has been charged with child exploitation. Hogsett said the filing of formal charges comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“These cases are always difficult, both as a prosecutor and as a parent,” Hogsett said. “They are even more troubling when the allegations involve a law enforcement official who was entrusted with protecting Hoosier communities. This is what Operation Community Watch was designed to do, however – hold accountable those who endanger our children, no matter who they are.”
According to a criminal complaint unsealed today, Walton has been employed as a reserve Sheriff’s Deputy at the Franklin County Sheriff’s Office since 2004, where he works as a jail officer. Walton has previously been employed by the Union County Sheriff’s Office as a reserve deputy and jail officer. Prior to that position, Walton was employed by the Richmond Police Department and served as a deputy marshal for the Laurel Police Department.
In 2011, federal law enforcement became aware of an individual allegedly sending images and videos of child pornography through an AOL email account. This account was shut down by AOL after a complaint was registered. A second email account was discovered by federal agents while investigating a sexual offender, who had exchanged child pornography with the account in question. These two email accounts, along with an additional account known to law enforcement agents, have been allegedly traced to Walton. This includes an account that was allegedly accessed repeatedly from the Franklin County Security Center.
As a result of this investigation, federal agents served a search warrant at Walton’s home on Friday, August 16. During the search, agents allegedly located a laptop, as well as a thumb drive that was hidden behind a mirror in the main bedroom of Walton’s home. That thumb drive was allegedly found to contain a number of pornographic images and videos depicting a minor female. In addition, agents found a small video camera hidden in a can in the living room. This camera was found to contain additional explicit materials showing a minor female.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney Zachary A. Myers, who are prosecuting the case for the government, Walton faces decades in federal prison if he is found guilty of child exploitation. In addition, Walton also could be sentenced to years of supervised release, and lifetime registration as a sexual predator.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, these efforts were facilitated by Federal Bureau of Investigation, the Indiana State Police, the Indianapolis Metropolitan Police Department, as well as the Franklin County Sheriff’s Department.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Informations, indictments, and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Guardian of Justice AwardRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., police detectives and an FBI agent have received the Guardian of Justice Award.
Kansas City Police Department Detectives Greg Harmon and Rebecca Mills and FBI Special Agent Jeffrey Atwood were honored on Thursday, Aug. 15, 2013, during the 11th Annual LECC Training Seminar in Springfield, Mo.
Greg Harmon & Rebecca Mills
Harmon and Mills were recognized for their singular work in the successful investigation and prosecution of Corey McKinney. McKinney pleaded guilty during the second day of his federal jury trial on Jan. 16, 2013, to child sex trafficking and producing child pornography. A sentencing hearing is scheduled for Sept. 10, 2013. Under federal statutes McKinney is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole.
The McKinney case originated from a walk-in complaint by a Kansas City man who said he was the victim of an extortion attempt by McKinney, who was threatening this man for having sex with his “16-year-old sister.” Harmon and Mills interviewed this man, and in the process uncovered an unseemly story involving an illicit Internet meet-up, surreptitious recordings of sexual activity, his serial exploitation of a minor, all wrapped up in an extortionate blackmail scheme. Their proactive work in this case enabled them to quickly identify McKinney, who was arrested in the midst of collecting money as part of his ill-conceived scheme.
These detectives collaborated with various law enforcement agencies (including the FBI and the Jackson County Prosecutor’s Office) and numerous private entities to ensure that federal prosecutors received all necessary and helpful evidence to build and prosecute this case. Harmon and Mills were wholly professional and diligent as this case progressed. At trial, Harmon served as the lead case agent and Mills provided expert testimony on human trafficking and victim issues that assisted the jury in putting the evidence introduced at trial within a human trafficking context.
This investigation and prosecution consumed much of their time and resources, but, despite this fact, they continued to generate a number of cases worthy of federal prosecution during the pendency of this prosecution.
Harmon and Mills have worked closely with the U.S. Attorney’s Office to develop human trafficking investigations. Their past and ongoing work has led to numerous successful prosecutions, many originating out of Operation Guardian Angel, a proactive human trafficking initiative that has been adapted as a model replicated numerous times in various districts across the nation.
Jeffrey Atwood
Atwood was recognized for his work investigating a cold case that led to the successful prosecution of a violent offender. Mark Joseph Morris pleaded guilty to some robbery charges contained in a federal indictment and was convicted at trial on the remaining charges (of using firearms to commit the robberies) on March 22, 2013. Morris faces at least 55 years in prison for using firearms to rob two Springfield banks and a drugstore in November 2008.
Atwood focused the investigation of the unsolved armed robberies in a new direction, laying the groundwork for the firearms convictions even though no gun was recovered in the robberies and no positive identification had been made of the suspect. Morris, the master of disguise, had terrorized two Springfield banks, a drug store, two grocery stores and left scores of victims traumatized from his gun wielding antics.
Atwood relied upon old-fashioned police work, which meant he got from behind his desk and pounded the pavement. He spoke with the Springfield police investigators to see if anything was missing out of their reports. He visited the witnesses and had them go over their statements to ensure accuracy, and asked questions that previous investigators did not ask. He crawled over crime scenes again to ponder motive and escape routes. Atwood repeatedly viewed the surveillance video until discovering the most miniscule of details that linked the suspect to two of the robberies.
During the trial, Atwood worked very closely with detectives from the Springfield Police Department to develop additional evidence, including statements that greatly assisted in the cross examination of the defendant. Whether he was asked to speak to witnesses, to explore a crime scene again, or to make the evidence available for the defense, Atwood worked tirelessly to fulfill that request. During trial, he expertly handled the audio-visual component of the bank and consumer store video presentation. His unwavering enthusiasm was an encouragement throughout the criminal prosecution process.
Ultimately, Atwood’s work led to the removal of a very dangerous, repeat felon from our community. Even though Morris had numerous violent felonies on his record, these federal convictions will ensure that he will not victimize any community again.
Atwood started his law enforcement career as street cop in the Kansas City, Mo., Police Department, rising through the ranks to become a detective before joining the FBI.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.Gang Member Is Fourteenth to Plead Guilty in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – A Dodge City gang member has pleaded guilty to a conspiracy charge in a federal racketeering case, U.S. Attorney Barry Grissom said today.
Eusebio Sierra-Medrano, 33, Dodge City, Kan., pleaded guilty to one count of conspiracy to commit crimes under the federal Racketeering Influenced and Corrupt Organizations Act. In his plea, he admitted that from 2008 to May 2012 he participated in a criminal conspiracy in Dodge City involving members of the Norteno street gang and their affiliates, the Diablos Viejos and Los Carnales Chingones. Sierra-Medrano was a member of the Diablos Viejos.
On March 29, 2010, he and fellow gang members assaulted a Sureno gang member named Jose Arreola. They encountered Arreola at a convenience store at 400 E. Wyatt Earp in Dodge City. After a fellow gang member attacked Arreola with the handle of a windshield wiper, Sierra-Medrano joined in with a knife. He stabbed Arreola multiple times. The stabbing was in retaliation for the prior stabbing of two Nortenos.
On the same day as the stabbing, Sierra-Medrano was found to be in possession with intent to distribute cocaine. In his plea, he admitted that during that time he was distributing cocaine he obtained from California. The stabbing and the drug trafficking helped him to maintain his position with the Norteno enterprise.
Sentencing is set for Nov. 4. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Sierra-Medrano was one of 23 Norteno members indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. Sierra-Medrano is the fourteenth defendant in the case to enter a guilty plea.Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.