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Thursday 27 June 2013
Two Men Sentenced After Pleading Guilty to Drug ChargeRead the Press Release
JAMES SELF, 29, a resident of St. Helena Parish, was sentenced today to 70 months imprisonment and 3 years of supervised release by U. S. District Judge Jane Triche Milazzo after pleading guilty to cocaine and marijuana charges.
SELF pled guilty on November 13, 2012, to one count of conspiracy to distribute and possess with the intent to distribute crack cocaine and marijuana, and one count each of possession with intent to distribute crack cocaine and possession with intent to distribute marijuana.
In a separate case, TULLIE WHITEN, 28, a resident of Clinton, Louisiana, was sentenced today to 53 months imprisonment and 3 years of supervised release by U. S. District Judge Jane Triche Milazzo after pleading guilty to cocaine and marijuana charges, announced U. S. Attorney Dana J. Boente.
WHITEN pled guilty on June 14, 2012, to one count of conspiracy to distribute and possess with the intent to distribute crack cocaine and marijuana and one count each of possession with intent to distribute crack cocaine and possession with intent to distribute marijuana.
The investigations were conducted by Special Agents of the Drug Enforcement Administration. Both cases were prosecuted by Assistant U. S. Attorney Andre’ Jones.
Two Harrisburg-Based U.S. Postal Inspectors Receive Award for Consumer Fraud WorkRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a U.S. Postal Inspector and a Consumer Fraud Analyst were awarded the Federal Trade Commission’s (FTC) Criminal Liaison Unit’s Consumer Shield Award for their dedicated efforts related to the investigation of the MoneyGram fraud case.
Nicholas Alicea and Michael Hartman were presented the Consumer Shield Award today by James Kohm, Associate Director for the FTC’s Division of Enforcement. It is the first time the FTC has presented this award established to recognize extraordinary work by a criminal law enforcement officer in fighting consumer fraud. Both men will be the only recipients of the award this year.
Alicea and Hartman were nominated for the award by United States Attorney Peter J. Smith.
Alicea and Hartman led the long-term investigation that resulted in the settlement with MoneyGram forfeiting $100 million to be used to compensate thousands of victims of mass marketing and consumer fraud schemes perpetrated by MoneyGram agents between 2004 and 2009.
In addition to the $100 million settlement, approximately 25 former MoneyGram agents have been prosecuted by the United States Attorney’s Office for the Middle District of Pennsylvania. Those defendants victimized individuals throughout Central Pennsylvania many of them elderly, from central and northeastern PA, including residents of: York; Mifflinburg; Sugarloaf; Lehighton; Chambersburg; Moosic; Dover; Stroudsburg; Harrisburg; Clark Summit; Jim Thorpe; Lairdsville; Montgomery; Milford; Bloomsburg; Mount Pocono; Palmyra; Tunkhannock; Montandon; State College; St. Clair; Lewisburg; Shenandoah; Montoursville; Wilkes-Barre; Northumberland; and Elizabethville.
The MoneyGram case was prosecuted by the U.S. Department of Justice Trial Attorney Craig Timm of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and Assistant U.S. Attorney Kim Douglas Daniel of the U.S. Attorney’s Office for the Middle District of Pennsylvania. The forfeiture was handled by Acting Assistant Deputy Chief Jeannette Gunderson of AFMLS’ Forfeiture Unit. The case was investigated by the Harrisburg, PA, office of the United States Postal Inspection Service, Philadelphia Division.
U.S. Postal Inspectors and the U.S. Attorney’s Office are continuing the investigation and prosecutions of consumer fraud schemes that use international money transfer services to victimize U.S. Citizens.
Persons who believe they were victims of the fraud scheme should visit http://www.justice.gov/criminal/vns/caseup/ or call 1-877-282-2610 (United States Only) or 317-324-0390 (International) for instructions on how to request compensation.
Two Broward Residents Arrested on Charges of FraudRead the Press Release
Criminal Complaint Charges Individuals with Scheme to Defraud Spanish-Speaking Consumers by Threatening Them with Deportation
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division and Ronald Verrochio, Postal Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announced yesterday that two individuals were arrested on a federal warrant alleging that they operated a series of fraudulent businesses targeting Spanish-speaking consumers. The criminal complaint, charged Daniel Carrasco, 54, and Federico Martin Gioja, 45, both of Miramar, alleging that the pair incorporated, owned, and ran Florida companies that used a phone room in Argentina to extract money from consumers using lies and extortion.
In addition to the criminal complaint, the Justice Department filed a civil case against Carrasco, Gioja, Romina Tasso and their businesses, seeking an injunction to prevent further fraud and an asset freeze to prevent dissipation of funds obtained from consumers.
Carrasco and Gioja made their first appearances in court yesterday.
According to the civil complaint and the affidavit filed in support of the criminal complaint, the case was the result of a referral from Spanish-language television station, Univision. Companies belonging to Carrasco and Gioja are alleged to have falsely claimed an affiliation with Univision and purported to sell products such as vitamins, lotions, medical insurance, and English-language training products. However, according to the documents, the companies frequently did not deliver products ordered by consumers. The companies allegedly did not have many of the products they promised to send to consumers, and so consumers received other products instead.
According to the civil and criminal complaints, after consumers refused delivery of the companies’ shipments, employees of the Argentinian phone room used by Carrasco and Gioja called and falsely threatened the consumers with arrest, deportation, or fines on their gas and electric bills.
Mr. Ferrer stated, “These defendants specifically targeted Spanish-speaking victims, pretending to be affiliated with the Univision television network, to sell their products from their phone room in Argentina. In fact, however, the defendants had absolutely no connection to Univision, and their companies did not deliver the products ordered by consumers. As this case illustrates, the U.S. Attorney’s Office is committed to investigating and prosecuting fraudsters, both domestic and international, whose schemes defraud American consumers.”
“This case demonstrates our commitment to use every tool at our disposal -- including asset freezes, injunctive relief, and criminal prosecution -- against companies that seek to lie, extort, threaten, and defraud Americans,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Protecting consumers from fraud continues to be a top priority for the Department of Justice.”
“Postal Inspectors will continue to investigate cases involving fraud against consumers and will vigorously pursue those individuals who use the mail in furtherance of their criminal schemes,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.
According to the criminal and civil complaints, Carrasco and Gioja routinely changed the names of the companies under which they did business to evade complaints, regulators, and law enforcement. The businesses allegedly were contacted by a variety of state agencies regarding their illicit practices. In emails cited in the affidavit in support of arrest, those working with Carrasco and Gioja referred to companies tainted by complaints as “burnt.” Rather than changing their practices, the defendants allegedly incorporated new companies and started the same illegal practices again.
Mr. Ferrer commended the investigative efforts of the Postal Inspection Service. The civil case is being handled by Trial Attorney Jessica Gunder of the U.S. Department of Justice’s Consumer Protection Branch. The criminal case is being prosecuted by Assistant Director Richard Goldberg with the Consumer Protection Branch.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. A civil complaint contains allegations only and the defendants will have the opportunity to challenge those allegations in court.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tonawanda Man Sentenced in Child Pornography CaseRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Rosan J. Mack, 39, of Tonawanda, N.Y., who was convicted of possession of child pornography, was sentenced to 10 years in prison U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that Mack's roommate delivered a DVD containing a video of child pornography to the Tonawanda Police along with a note identifying the defendant. After receiving the DVD, detectives were able to establish that the DVD did in fact belong to the defendant.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Tonawanda Police Department, under the direction of Chief Anthony Palombo.
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.Toledo Man Sentenced to 15 Years in Prison for Sex Trafficking of MinorsRead the Press Release
A Toledo man was sentenced to 15 years in prison for sex trafficking of children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Roy Calhoun, 30, guilty to multiple charges last year, including sex trafficking of children, conspiracy to obstruct a sex trafficking investigation and conspiracy to possess with intent to distribute Oxycodone.
“This defendant profited from children in the commercial sex trade,” Dettelbach said. “Our office will continue to pursue human trafficking cases with vigor.”
Calhoun was arrested in 2010 and accused of recruiting females, including minor children, to work as prostitutes between 2007 and 2010. He advertised a minor on craigslist.com on different occasions and drove the minor to Toledo-area hotels, according to court documents.
Calhoun beat and assaulted the females who worked for him and threatened those who left or attempted to quit working as prostitutes, according to court documents.
This case was prosecuted by Assistant United States Attorney James V. Moroney following an investigation by the Northwest Ohio Violent Crimes Against Children Task Force.
The NWOVCACTF includes members of the Federal Bureau of Investigation, Ohio Bureau of Criminal Identification and Investigation, Toledo Police Department, Lima Police Department, Perrysburg Township Police Department, Fulton County Sheriff's Office and the Ottawa County Sheriff's Office.
Three Miami Men Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Sergio Velazquez, Chief, Hialeah Police Department, announced that defendants Lineten Belizaire, 22, Earnest Baldwin, 36, and Earl Baldwin, 42 all of Miami, were sentenced today for their participation in a $1.7 million identity theft tax refund fraud scheme. Specifically, U.S. District Judge Cecilia M. Altonaga sentenced Belizaire to 129 months in prison, to be followed by 3 years of supervised release. Defendant Earnest Baldwin was sentenced to 172 months in prison, to be followed by 4 years of supervised release and defendant Earl Baldwin was sentenced to 84 months in prison, followed by 4 years of supervised release. Judge Altonaga ordered that a restitution hearing be held within 90 days.
Lineten Belizaire pled guilty to access device fraud and aggravated identity theft on March 18, 2013. Earnest and Earl Baldwin were convicted at trial on April 10, 2013, on charges of conspiracy to defraud the government, conspiracy to commit access device fraud, access device fraud, and multiple counts of aggravated identity theft. On April 17, 2013 co-defendant Marckell Steward, 21, of Miami, was sentenced to 72 months in prison, to be followed by 3 years of supervised release for his participation in the identity theft tax refund fraud scheme. Steward had previously pled guilty to conspiracy to commit access device fraud and aggravated identity theft.
According to court documents and testimony, Lineten Belizaire, along with co-conspirators Earnest and Earl Baldwin, and Marckell Steward, were involved in an identity theft tax fraud scheme that operated from July 2011 through June 2012. During the course of their fraud scheme, approximately $1.7 million in fraudulent refund claims were submitted to the IRS for payment.
According to documents filed in court, Belizaire conspired with Steward and Earnest and Earl Baldwin on a plan to use stolen personal identification information of others to file fraudulent and unauthorized tax returns claiming refunds on debit cards. Some of the refund claims were filed from Earl Baldwin's residence. According to the factual proffer, Belizaire exchanged text messages with Steward in which the defendants sent and received personal identification information of victims and also sent and received debit card account numbers that were used for receiving victims’ tax refunds.
As stated in trial testimony and evidence, Earnest Baldwin possessed more than 1,000 names, dates of birth, and Social Security numbers and approximately 40 pre-paid debit cards in other people’s names. Among the papers seized were high school report cards with identity information and data from an organization for disabled persons containing identity information. The evidence at trial also showed that Earnest and Earl Baldwin withdrew money from debit cards loaded with fraudulently obtained refunds. According to plea documents, more than 80 fraudulent tax returns using stolen identifications were electronically filed from the IP address belonging to the Belizaire. Defendant Belizaire was also observed on ATM video withdrawing money on multiple occasions from debit cards loaded with fraudulent tax refunds.
Mr. Ferrer commended IRS-CID, USPIS, and the Hialeah Police Department for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Maurice Johnson.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Suburban Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
CHICAGO — A former suburban man was sentenced today to one month more than the mandatory minimum of 10 years in federal prison for possessing child pornography. The defendant, BRIAN PERRON, 41, formerly of Wood Dale, pleaded guilty in April 2012, admitting then that he had sexually molested two children he was babysitting when he was 19 years old. He faced the 10-year mandatory minimum sentence because of a 2006 state conviction for possessing child pornography, and he was attempting to obtain additional child pornography depicting sexual abuse when he was arrested on the federal charges.
Perron, who has been in federal custody almost four years, was sentenced to 121 months in prison, followed by five years of supervised release, by U.S. District Judge Robert Gettleman. He must serve at least 85 percent of his federal sentence before he is eligible for release and there is no parole in the federal prison system.
Perron was arrested in July 2009 after Homeland Security Investigations agents executed a search warrant at his home and seized an external computer hard drive that contained 97 images and 21 videos depicting child pornography. The search and arrest stemmed from an HSI investigation of a commercial website that advertised and sold videos of children being forced to perform sexual acts with adults.
Perron “not only collected images and videos of child pornography, but he was attempting to purchase a membership to a child pornography library to obtain more material,” the government argued in a sentencing memo.
The sentence was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of Homeland Security Investigations in Chicago.
The government was represented by Assistant U.S. Attorney Tony U. Iweagwu, Jr.
Spencer Man Sentenced to Federal Prison for Drug ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 13, 2013, to ten years in federal prison.
Gabriel Ginger, 26, from Spencer, Iowa, received the prison term after a January 30, 2013, guilty plea to one count of conspiring to distribute methamphetamine.
At the guilty plea, Ginger admitted his involvement in a conspiracy from about 2010 through August 2011 that distributed more than 50 grams of actual (pure) methamphetamine. On July 21, 2011, law enforcement officers executed a search warrant at Ginger’s residence and seized over 10 grams of methamphetamine which Ginger planned to distribute to others.
Ginger was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Ginger was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ginger is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Department of Narcotics Enforcement, Spencer Police Department, Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, and the Iowa Division of Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4049.
Sioux Falls Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 25, 2013 by U.S. District Judge Roberto A. Lange.
Alexis Salgado, age 40, was sentenced to 37 months of imprisonment; a $1,000 fine; 3 years of supervised release; and a $100 special assessment to the Federal Crime Victims Fund.
Salgado was indicted by a federal grand jury on July 18, 2012 and he pled guilty to the charge on April 9, 2013.
The charge stems from an incident wherein a South Dakota Highway Patrol Trooper came upon a vehicle with its hood up sitting on the side of Highway 44. There was smoke coming from under the hood and the vehicle’s hazard lights were on. The Trooper stopped to provide assistance and encountered three men with the vehicle. During the Trooper’s contact with the men, a pack of Newport cigarettes stuffed with a plastic bag containing 12.8 grams of methamphetamine was found near the air intake by the front left fender of the vehicle. Additionally, trace amounts of marijuana were located inside the head band of a baseball cap located in the back seat, and a glass pipe was found in between the rear seat cushions. A urine sample was obtained from Salgado who tested positive for methamphetamine, amphetamine and marijuana.
The investigation was conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Salgado was immediately turned over to the custody of the U.S. Marshals Service.
Sioux City Sex Offender Sentenced to 18 Years on Child Pornography ChargesRead the Press Release
A man who distributed and received child pornography was sentenced June 26, 2013, to eighteen years in federal prison.
Jeffrey Huygens, age 47, of Sioux City, Iowa, received the sentence after a February 25, 2013, guilty plea to one count of distributing child pornography and one count of receiving child pornography. At the guilty plea, Huygens admitted he knowingly used the Internet to distribute and receive child pornography. Huygens also admitted that, in 1990, in Island County, Washington, he was convicted of Child Molestation in the First Degree.
Huygens was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Huygens was sentenced to 216 months’ imprisonment. A special assessment of $200 was imposed, and Huygens must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4094.
Sioux City Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
A man who distributed child pornography was sentenced June 25, 2013, to fifteen years in federal prison.
Chad Carver, age 28, of Sioux City, Iowa, received the sentence after a February 28, 2013, guilty plea to one count of distributing child pornography. At the guilty plea, Carver admitted he knowingly used the Internet to distribute child pornography.Carver was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Carver was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed, and Carver must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4079.
Sinovel Corporation and Three Individuals Charged in Wisconsin with Theft of Amsc Trade SecretsRead the Press Release
A manufacturer and exporter of wind turbines based in the People’s Republic of China, two employees of that manufacturer and a former employee of a subsidiary of AMSC, a United States-based company formerly known as American Superconductor Inc., were charged today with stealing trade secrets from AMSC causing an alleged loss of more than $800 million to the company, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Wisconsin John W. Vaudreuil.
A federal grand jury in the Western District of Wisconsin returned an indictment charging Sinovel Wind Group Co. Ltd., dba Sinovel Wind Group (USA) Co. Ltd.; Su Liying, 36, the deputy director of Sinovel’s Research and Development Department; Zhao Haichun, 33, a technology manager for Sinovel; and Dejan Karabasevic, 40, a former employee of AMSC Windtec GmbH, a wholly-owned subsidiary of AMSC, with one count each of conspiracy to commit trade secret theft, theft of trade secrets and wire fraud.
“Today, we announce charges against Sinovel and three individuals for stealing proprietary wind turbine technology from AMSC in order to produce their own turbines powered by stolen intellectual property,” said Acting Assistant Attorney General Raman. “This charged IP theft caused significant harm to a domestic company that develops cutting edge technology and employs Americans throughout the country. Stamping out intellectual property theft is a top priority for this administration, and we will continue to work with our IP Task Force partners to ensure that American ingenuity is protected.”
“The allegations in this indictment describe a well-planned attack on an American business by international defendants--nothing short of attempted corporate homicide," said U.S. Attorney Vaudreuil. “The Department of Justice and this office are committed to protecting American commerce and aggressively prosecuting those who seek to steal and use our intellectual property. I commend the efforts of the FBI and their Austrian counterparts in this long-term international investigation, and the assistance provided by the owners and operators of the Massachusetts turbines."
"The Sinovel case is a classic example of the growing insider threat facing our nation's corporations and their intellectual property,” said FBI Executive Assistant Director Richard McFeely. “The FBI will not stand by and watch the hemorrhage of U.S. intellectual property to foreign countries who seek to gain an unfair advantage for their military and their industries. We are actively working with our private sector and government partners to disrupt and impact those who have made it their mission to steal U.S. military and corporate secrets. Since 2008, our economic espionage arrests have doubled; indictments have increased five-fold; and convictions have risen eight-fold.”
Karabasevic headed the automation engineering department at AMSC Windtec in Klagenfurt, Austria. Su and Zhao are Chinese nationals living in China, and Karabasevic is a Serbian national who lived in Austria, but now lives in Serbia.
According to the indictment, AMSC developed and sold software and equipment to regulate the flow of electricity from wind turbines to electrical grids, and it considered the software and equipment to be trade secrets and proprietary information. The software that runs the PM3000, a part of AMSC’s wind turbine electrical control system, was developed in Wisconsin and was stored on a computer in AMSC’s office in Middleton, Wis. The PM3000 worked with other products, including AMSC’s Low Voltage Ride Through (LVRT) software. The LVRT system is designed to keep a wind turbine operational when there is a temporary sag or dip in flow of electricity in the electrical grid.
Sinovel purchased software and equipment from AMSC for the wind turbines that Sinovel manufactured, sold and serviced. According to the indictment, in March 2011, Sinovel owed AMSC more than $100 million for products and services previously delivered and had entered into contracts to purchase more than $700 million in products and services from AMSC in the future.
The indictment alleges that the four defendants conspired to obtain AMSC’s copyrighted information and trade secrets in order to produce wind turbines and to retrofit existing wind turbines with LVRT technology, without having to pay AMSC for previously-delivered products and services, thereby cheating AMSC out of more than $800 million.The indictment alleges that Sinovel, through Su and Zhao, recruited Karabasevic to leave AMSC Windtec and join Sinovel, and to secretly copy intellectual property from the AMSC computer system. The four defendants are charged with stealing the PM3000 source code from AMSC on March 7, 2011, and transmitting it by downloading it from an AMSC computer in Wisconsin to a computer in Klagenfurt.
The indictment alleges that following the theft of AMSC’s intellectual property, Sinovel commissioned several wind turbines in Massachusetts and copied into the turbines software compiled from the software stolen from AMSC. The U.S.-based builders and operators of these Massachusetts turbines have cooperated in this investigation.
If convicted, Sinovel faces a maximum penalty on each count of five years of probation and a fine of twice the gross gain or loss, meaning Sinovel would face a fine for each count charged of up to twice the alleged loss of more than $800 million.
If convicted, Su, Zhao and Karabasevic each face a maximum penalty of five years in prison on the conspiracy charge, 10 years in prison for theft of a trade secret and 20 years in prison for wire fraud.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the Madison, Milwaukee and Boston offices of the FBI; the FBI Legal Attachés’ Offices in Vienna, Austria and Beijing; the FBI Criminal Investigative Division; the FBI Intellectual Property Rights Unit; the Bundeskriminalamt (Federal Criminal Intelligence Service) and the Bundesministerium Fuer Justiz (Federal Ministry of Justice) in Austria; the Landeskriminalamt - Klagenfurt and the Staatsanwaltschaft - Klagenfurt (Criminal Investigative Police and State Prosecutor's Office – Klagenfurt, Austria); and with the assistance of the Justice Department’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorneys Timothy M. O’Shea and Munish Sharda, and Trial Attorney Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force, which is led by the Deputy Attorney General, to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. To learn more about the IP Task Force, go to: www.justice.gov/dag/iptaskforce.
Shelton Man Sentenced to 30 Months in Federal Prison for Trading Child Pornography on the InternetRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ARTHUR GALLOWAY, 38, of Shelton, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by 10 years of supervised release, for trading child pornography on the Internet.
According to court documents and statement made in court, on March 14, 2012, the Connecticut State Police Computer Crimes Unit, Shelton Police Department and Federal Bureau of Investigation conducted a court-authorized search of GALLOWAY’s residence and seized a laptop computer, an external hard drive and other items. Investigators determined that GALLOWAY used the Internet to trade numerous images and video of child pornography, and he was arrested at that time.
Subsequent forensic analysis of the seized items revealed that GALLOWAY possessed 11 printed photographs, 913 images and 45 videos of children engaging in sexually explicit conduct. Some of the videos exceeded 20 minutes in length.
On January 11, 2013, GALLOWAY pleaded guilty to one count of receipt and distribution of child pornography.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Shelton Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorneys Felice M. Duffy and Neeraj N. Patel.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Serial Bank Robber Sentenced to 15 Years in PrisonRead the Press Release
PHILADELPHIA - Aaron Thomas, 47, of Philadelphia, was sentenced today to 15 years in prison for committing six bank robberies. On March 14, 2013, Thomas pleaded guilty to robbing six banks: (1) PNC Bank located on Old York Road in Abington on August 10, 2012; (2) TD Bank located on City Avenue in Philadelphia, on August 8, 2012; (3) TD Bank located on City Avenue in Philadelphia on May 17, 2011; (4) TD Bank located on Moreland Road in Abington, on September 17, 2009; (5) TD Bank located on Grant Avenue in Philadelphia, on September 17, 2009; and (6) TD Bank located on Old York Road in Abington on July 24, 2009. Thomas was apprehended by Abington Police following the PNC Bank robbery on August 10, 2012 after a vehicle and foot pursuit through the streets of Abington and Philadelphia which resulted in two police officers being injured and several vehicles damaged. Thomas has two prior convictions for bank robbery.
In addition to the prison term, U.S. District Court Judge Lawrence F. Stengel ordered Thomas to pay $30,905 in restitution, a $600 special assessment, and ordered three years of supervised release.
The case was investigated by Federal Bureau of Investigation, the Abington Township Police Department, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Robert J. Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Sentences for on June 21 - June 26, 2013Read the Press Release
Jesus Abel Lopez-Perez, 29, of Las Vegas, Nevada, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 26, 2013, for conspiracy to possess with intent to distribute, and to distributing methamphetamine. Lopez-Perez was arrested in Las Vegas, Nevada. He received 37 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Julia Cox, 59, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 26, 2013, on one count of conspiracy to possess with intent to distribute, and to distributing a synthetic cannabinoid, a Schedule I Controlled Substance, resulting in serious bodily injury and one count of distribution of a synthetic cannabinoid, a Schedule I Controlled Substance, resulting in serious bodily injury, and aiding and abetting. Cox was arrested in Casper, Wyoming. She received 50 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment and a $100.00 fine. This case was investigated by the Casper Police Department and the U.S. Drug Enforcement Administration.
Jennifer Nicole Tuttle, 31, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 25, 2013, for making of false claims to obtain Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits. Tuttle appeared pursuant to a summons. She received five years of supervised probation and was ordered to pay restitution in the amount of $55,080.32. This case was investigated by the State of Wyoming, Department of Family Services’ Fraud and Recovery Unit.
Jorge Arrendondo-Mireles, 35, of Portland, Oregon, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 25, 2013, for distribution of methamphetamine and distribution of cocaine. Arrendondo-Mireles was arrested in Oregon. He received 12 months and one day imprisonment, was ordered to pay a $200.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the Casper and Mills Police Departments, the Natrona County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Ramon Erik Slater, 23, of Chicago, Illinois, was sentenced by Federal District Court Judge Alan B. Johnson on June 21, 2013, for receiving a firearm while under felon indictment and for making false statements to acquire a firearm. Slater was obtained via Writ from state custody. He was sentenced to time served, was ordered to pay a $700.00 fine and released to state custody to complete his term of 5-10 years of imprisonment. Upon release from state custody, Slater will serve a term of three years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Chris L. George, 29, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 21, 2013, for conspiracy to possess with intent to distribute and distribution of between 200 and 350 grams of methamphetamine. George was arrested in Gillette. He received 51 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Santa Cruz Woman Sentenced in Foreclosure Assistance ScamRead the Press Release
SAN JOSE - Tara Denise Bonelli was sentenced to 37 months in prison by United States District Judge Edward J. Davila in San Jose, California, on June 25, 2013, for defrauding investors of over $3,000,000, announced United States Attorney Melinda Haag.
On February 12, 2013, Bonelli pleaded guilty in federal court to Wire Fraud, in violation of 18 USC § 1343. Bonelli admitted that, beginning no later than May 2006, and continuing to at least until October 2008, she promoted false and fraudulent real estate investments by knowingly making false promises about how investor funds were to be invested and repaid.
According to her plea, in May 2004, Bonelli founded Vista Holding Company, a holding company that owned and operated eight entities, including Vista Funding, Inc., a pre-foreclosure services company that helped refinance properties or purchased properties to develop, rent, and/or sell; Independent Financial, a company that bought mortgage notes from banks; Equity Advisors, a mortgage company that matched lenders with borrowers; Bonelli Properties, a real estate company; Lost Dollar Services, a company formed to facilitate collection of homeowner overages; Equity Inquiries, a real estate research company; Outlook Enterprises, a development company; and Sovereign Property Management, a property management company. Although Bonelli established all of these entities under Vista Holding Company, she primarily conducted business under Vista Funding Inc., and controlled all of its business transactions.
In furtherance of her scheme, Bonelli told investors that their money would be used to purchase properties for resale or conversion to condominiums, and to engage in the business of foreclosure assistance. In some instances, to lure their investments, Bonelli promised a return of up to 1000%. Rather than use investor money for the stated purpose, Bonelli used some of the investor funds to pay for her personal expenses.
Bonelli, 33, of Santa Cruz, California, was indicted by a federal grand jury on March 16, 2011. She was charged with eighteen counts of Wire Fraud, in violation of 18 United States Code § 1343. Under the plea agreement, Bonelli pleaded guilty to one count that encompassed the loss due to fraud in all of the counts, which was over $3,000,000. The sentencing court also ordered that Bonelli pay restitution in an amount to be settled at a hearing to be held on August 5, 2013, at 3:00 p.m. before Judge Davila in San Jose.
Matt Parrella and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of a 2-year investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division.
Sacramento Woman sentenced to 38 months in prison for role in drug trafficking and money laundering conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Sacramento woman was sentenced in Juneau to federal prison for drug trafficking and money laundering conspiracy.
Jennifer McGrath, 26, of Sacramento, California, was sentenced June 26, 2013, by U.S. District Court Judge Timothy M. Burgess to 38 months in prison for her role in a drug trafficking and money laundering conspiracy.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of oxycodone and money laundering offenses in Alaska.Between January 2009, and continuing through July 2010, McGrath was involved in a large scale drug trafficking conspiracy transporting oxycodone from California for later sale in Juneau, Alaska. As part of the conspiracy, McGrath made multiple airline trips from California to Juneau carrying the oxycodone pills on her person. McGrath distributed the pills to local dealers and collected the drug proceeds. McGrath either laundered the drug proceeds using commercial wire transfers or body carried drug proceeds back to California for members of the conspiracy. During the course of the conspiracy, McGrath transported approximately 1500 pills of oxycodone and laundered over $14,000 in drug proceeds. On July 22, 2010, McGrath was contacted by law enforcement at the Seattle-Tacoma (SEA-TAC) Airport where she was scheduled to fly from Juneau to California while in possession of approximately $7,000 in cash, which was seized by law enforcement.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant. He also emphasized the need to protect the public from further crimes of the defendant, to provide treatment in the most effective manner, and to avoid unwarranted sentencing disparities as reasons for imposing the 38 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit for the investigation leading to the successful prosecution of McGrath.
Rowlett, Texas, Man Sentenced to One Year and One Day in Federal Prison for Selling Firearms Without A LicenseRead the Press Release
Defendant Sold Used Firearms for Resale from His Print Screen Shop in Garland, Texas
DALLAS — Jackie Don Burke, 68, of Rowlett, Texas, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to one year and one day in federal prison, following his conviction at trial in February 2013 for engaging in the business of firearms without a license. Burke was ordered to surrender to the Bureau of Prisons on July 30, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The government presented evidence at trial that Burke repeatedly bought used firearms for resale, a business that he conducted out of his print screening shop in Garland, Texas. According to Burke’s own records, not particularly well kept, he sold at least 135 firearms in a 14-month period.
In one instance, Burke sold a pistol to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) without even asking if he was a prohibited person, i.e., a convicted felon. Burke only asked the agent if he had a Texas driver’s license, which Burke only glanced at. Burke had a sign outside his print screening business that declared that he was in the business of selling guns and maintained that he was simply selling firearms from his personal collection, which is lawful. Burke testified at trial and told the jury that he was too old to go to jail.
The case was investigated by ATF; Assistant U.S. Attorneys Taly Haffar and Katherine Pfeifle prosecuted.
Rochester Woman Sentenced for Stealing from VA Death Pension ProgramRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Wanda Williams, 52, of Rochester, N.Y., who was convicted of theft of government property, was sentenced by U.S. District Judge Frank Geraci to five years probation, 100 hours of community service and was ordered to repay $13,181 to the United States Department of Veterans Affairs.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Williams stole and cashed over $13,000 worth of checks issued to her deceased grandmother by the United States Department of Veterans Affairs as part of their Death Pension Program. This program was designed to provide financial assistance to surviving spouses of veterans who served on active duty during a period of war.
The defendant's grandfather was a veteran who served in the United States Army during World War Two. As a result of his service and sacrifice, and due to her financial condition, his widow was entitled to a monthly pension check from the V.A. following his death in 1982. These monthly benefits should have ended when the defendant's grandmother died in 2007, however, the defendant continued to cash them until 2010, when her conduct was uncovered by federal investigators.
The sentencing is the culmination of an investigation on the part of Special Agents from the United States Department of Veterans Affairs - Office of Inspector General, under the direction of Special Agent In Charge Jeffrey G. Hughes.Rochester Man Charged with Making False StatementsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tuffek Mohammed Ali Saleh, 41, a citizen and national of Yemen, was arrested in Rochester and charged by criminal complaint with making a false statement on an immigration document, making a false statement to an Immigrant Official and making a false claim of United States Citizenship. The charges carry a maximum penalty of 10 years in prison, and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, in April 2012, the defendant applied for U.S. Citizenship under the name Yehya Muthana Ali. During the processing of Saleh's application, it was determined that the defendant had previously applied to enter the United States using a different identity. The complaint further alleges that during a subsequent interview with immigration officials, Saleh failed to disclose that he in fact previously went by other names.
In April 2013, Saleh walked into a New York State Lottery Claims Center in Rochester and presented a torn scratch off ticket claiming to have won $3,000,000. As a result, the defendant filled out a Claim Form Worksheet and indicated that he was United States Citizen. According to the New York State Lottery, citizenship is material to the awarding of any lottery winnings because citizens and non-citizens are taxed at different rates.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson. Saleh is due back in court on July 24, 2013 at 9:00 a.m.
The criminal complaint is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Robert Packnett Pleads Guilty to Bank FraudRead the Press Release
ROBERT PACKNETT, age 47, a resident of New Orleans, Louisiana, pled guilty as charged today before the U.S. District Judge Carl J. Barbier to a bill of information charging him with one count of bank fraud, announced United States Attorney Dana J. Boente.
According to court documents, PACKNETT was the owner of numerous residential properties throughout New Orleans. From July 2011 through March 2012, PACKNETT applied for at least 6 mortgages, refinanced mortgages, and commercial lines of credit from First NBC Bank for various properties. As part of the application process, PACKNETT had to detail his income so First NBC could determine whether he was a candidate for a refinanced mortgage and, if so, the interest rate for which he qualified. On all of his applications PACKNETT overstated the amount of rental income he received from his properties. In some cases, PACKNETT simply overstated the amount he received in rent. In others, he claimed that he was receiving rental income from properties when the properties were actually vacant. As a result of the false statements on just one of the applications to refinance his primary residence, PACKNETT received approximately $256,000 to which he was not entitled.
PACKNETT faces a maximum penalty of 30 years, followed by up to 5 years of supervised release, and a $250,000 fine. Sentencing in this matter has been scheduled for October 4, 2013, at 9:30 a.m.
This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the New Orleans Office of Inspector General. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg and Trial Attorney Hayden Brockett of the U.S. Department of Justice Tax Division.
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Randallstown Man Sentenced to over 7 Years in Prison for Bankruptcy Fraud and Filing False Tax ReturnsRead the Press Release
Failed to Report Income and Assets Totaling Over $740,000 and Attempted to Fraudulently Discharge
Debts of Over $1.1 Million Through Bankruptcy
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Ricardo O. Curry II, age 43, of Randallstown, Maryland, today to 87 months in prison, followed by three years of supervised release for assisting in the filing of false tax returns, bankruptcy fraud, falsifying bankruptcy records and false testimony under oath at a bankruptcy proceeding. Judge Quarles also ordered Curry to pay restitution of $1,114,988.51 to the creditors in his bankruptcy case and $118,182 to the IRS. Curry was convicted by a federal jury on March 20, 2013 and has been detained since that time.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and U.S. Trustee Judy Robbins and the Baltimore Office of the United States Trustee Program, the Department of Justice component that supervises the administration of bankruptcy cases.
According to evidence presented at his three day trial, Curry worked for Peerless Real Estate Services, Inc., a North Carolina corporation that oversaw the sale of property in North Carolina, including a development which contained more than 2000 lots. Curry recruited at least 12 investors to purchase at least 23 lots in the development and he received referral fees based on these sales. In 2005, 2006, and 2007, respectively, Curry earned referral fees of $41,455, $43,200, and $330,546. Although Curry reported the income he received as a sales representative for a pharmaceutical company on his 2005, 2006, and 2007 tax returns, he failed to report these referral fees, totaling $415,201.
On March 12, 2009, Curry filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the District of Maryland. On April 21, 2009, Curry filed a Statement of Financial Affairs with the bankruptcy court, which reported the income he earned as a pharmaceutical sales representative for tax years 2005, 2006, and 2007, but failed to report the $415,201 he earned in referral fees from Peerless. Curry also failed to disclose his ownership interest in a home worth approximately $325,000. On July 28, 2009, Curry filed an Amended Statement of Financial Affairs, which again failed to disclose the $415,201 in referral fees, and his ownership interest in the home. On October 20, 2009, Curry testified under oath at meeting of the creditors, falsely stating that all of his assets were listed in his bankruptcy filing, when in fact, Curry knew that he had not reported the referral fees, nor his home ownership. Ultimately, Curry never provided documents to the trustee overseeing his bankruptcy case regarding either the referral fee income or the home, and as a result, on April 12, 2010, Curry’s attempt to discharge his debts through bankruptcy was denied.
United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who prosecuted the case.
Ramiro Nava-delgadillo Pleads Guilty to Illegal ReentryRead the Press Release
RAMIRO NAVA-DELGADILLO, age 33, a citizen of Mexico, pled guilty in federal court today before U. S. District Judge Jane Triche Milazzo to a one-count indictment charging him with illegal re-entry of a removed alien, announced U. S. Attorney Dana J. Boente.
According to court documents, NAVA admitted to being an alien who had previously been removed from the United States, was found in the United States, on April 10, 2013, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging NAVA with illegal reentry also included a notice of sentencing enhancement based on his prior felony conviction. With the enhancement, the charge carries a maximum statutory penalty of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for September 26, 2013 at 10:00 A.M.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
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Pulaski County, Ky. Sheriff’s Deputy Indicted for Federal Civil Rights ViolationsRead the Press Release
U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky, and Assistant Attorney General Thomas E. Perez of the Civil Rights Division, announced today that Stephen Molen, a Sheriff’s Deputy with the Pulaski County Sheriff’s Office in Pulaski County, Ky., was indicted by a federal grand jury on two counts of violating the civil rights of victims by using excessive force in October 2009 and October 2011.
Count one of the indictment alleges that on Oct. 2, 2009, Molen assaulted a victim identified in the indictment as “D.W.,” resulting in bodily injury. Count two of the indictment alleges that on Oct.7, 2011, Molen assaulted a victim identified in the indictment as “G.C.,” also resulting in bodily injury.
If Molen is convicted of these charges, he will face a statutory maximum punishment of 10 years in prison for each count.The investigation was conducted by the Louisville Division of the FBI. The case will be prosecuted by Assistant U.S. Attorneys Pat Molloy and Ron Walker of the Eastern District of Kentucky and Civil Rights Division Trial Attorney Ali Ahmad.
The charges set forth in an indictment are merely accusations and the defendant is presumed innocent until proven guilty.
Pulaski County, KY. Sheriff's Deputy Indicted for Federal Civil Rights ViolationsRead the Press Release
WASHINGTON, DC - U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky, and Assistant Attorney General Thomas E. Perez of the Civil Rights Division, announced today that Stephen Molen, a Sheriff’s Deputy with the Pulaski County Sheriff’s Office in Pulaski County, KY., was indicted by a federal grand jury on two counts of violating the civil rights of victims by using excessive force in October 2009 and October 2011.
Count one of the indictment alleges that on Oct. 2, 2009, Molen assaulted a victim identified in the indictment as “D.W.,” resulting in bodily injury. Count two of the indictment alleges that on Oct.7, 2011, Molen assaulted a victim identified in the indictment as “G.C.,” also resulting in bodily injury.
If Molen is convicted of these charges, he will face a statutory maximum punishment of 10 years in prison for each count.
The investigation was conducted by the Louisville Division of the FBI. The case will be prosecuted by Assistant U.S. Attorneys Pat Molloy and Ron Walker of the Eastern District of Kentucky and Civil Rights Division Trial Attorney Ali Ahmad.
The charges set forth in an indictment are merely accusations and the defendant is presumed innocent until proven guilty.
Portland, Ore. Couple Indicted on Charges Related to an Anti-gay AssaultRead the Press Release
Yesterday a federal grand jury in Portland, Ore., indicted George Allen Mason Jr., 23, and his wife, Saraya Sophia Lisa Gardner, 23, on charges related to the assault of a 26-year-old gay man who was walking his dog with his boyfriend on the streets of Hillsboro, Ore., which occurred because of animus against the victim’s sexual orientation.
Mason is charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that Mason struck the victim with a metal tool because of the victim’s actual or perceived sexual orientation, thereby causing bodily injury to the victim.
Gardner is charged with one count of obstruction of justice for knowingly and intentionally misleading Hillsboro Police Department (HPD) officers in statements she provided in connection with the investigation of Mason. The indictment alleges that Gardner lied about Mason’s whereabouts at the time HPD officers were searching for him and that she further misled HPD officers when she repeatedly changed her story as to the weapon that Mason used to strike the victim.
Mason faces a statutory maximum penalty of 10 years in prison. Gardner faces a statutory maximum penalty of 20 years in prison.
This case is being investigated by the Portland Division of the FBI in cooperation with HPD. It is being prosecuted by Assistant U.S. Attorney Hannah Horsley of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Portland Couple Indicted on Charges Related to Anti-Gay AssaultRead the Press Release
PORTLAND, Ore. — A federal grand jury in Portland, OR, has indicted George Allen Mason, Jr., 23, and his wife, Saraya Sophia Lisa Gardner, also 23, on charges related to a the assault of a 26-year old gay man who was walking his pink-dyed poodle with his boyfriend on the streets of Hillsboro, a Portland suburb, which occurred because of animus against the victim’s sexual orientation.
Mason is charged with violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that Mason struck the victim with a metal tool because of the victim’s actual or perceived sexual orientation, thereby causing bodily injury to the victim.
Gardner is charged with one count of obstruction of justice for knowingly and intentionally misleading Hillsboro Police Department (HPD) officers in statements she provided in connection with the investigation of Mason. The indictment alleges that Gardner lied about Mason’s whereabouts at the time HPD officers were searching for him and that she further misled HPD officers when she repeatedly changed her story as to the weapon that Mason employed to strike the victim.
Mason faces a statutory maximum penalty of ten years in prison. Gardner faces a statutory maximum penalty of twenty years in prison. Both defendants will appear before a U.S. Magistrate Judge at the Mark Hatfield Federal Courthouse at a time to be set in the near future.
This case is being investigated by the Portland Division of the FBI in cooperation with HPD. It is being prosecuted by Assistant U.S. Attorney Hannah Horsley for the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Owner of Avalanche Car Washes in Dallas-Fort Worth Area Is Sentenced to Six Months in Federal Prison and Six Months Home Confinement for Structuring Currency TransactionsRead the Press Release
DALLAS — Mohamdad Jabal was sentenced yesterday afternoon by U.S. District Judge Ed Kinkeade to six months in federal prison and six months home confinement, following his guilty plea in March 2013 to one count of structuring. According to the plea agreement filed in the case, Jabal has made full restitution, in the amount of $403,736, to the victims in the case prior to entering into the plea agreement with the government. Today’s announcement was made by U.S Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Jabal owns two car washes in the Dallas-Fort Worth area under the name of Avalanche Wash, Inc., and currently has a third one under construction. He maintains two bank accounts related to his car wash business. Between March 15 and April 30, 2012, Jabal made 19 cash deposits for a total of $182,050 into his Avalanche Wash Inc. Interim Construction Account at First National Bank of Burleson. Each of these deposits ranged from $9,000 to $9,800 and many of the deposits were on consecutive days. Jabal admitted that he was aware of the $10,000 reporting requirement and purposefully kept his cash deposits below the requirement so he wouldn’t “raise a red flag.”
The investigation was conducted by Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Brian Poe.
North Texans Sentenced for Roles in A Drug Trafficking Organization That Mailed Large Quantities of Marijuana from DFW to St. CroixRead the Press Release
FORT WORTH, Texas — Three North Texans, who were convicted for their role in a drug trafficking operation that mailed large quantities of marijuana from the Dallas/Fort Worth (DFW) area to St. Croix, U.S. Virgin Islands, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
This week, April Michelle Greene, 37, of Fort Worth, was sentenced to 78 months in federal prison following her guilty plea in November 2012 to one count of conspiracy to possess with intent to distribute a controlled substance.
Earlier this month, Neil Nick Rene, 37, of Duncanville, was sentenced to 151 months in federal prison following his guilty plea in October 2012 to one count of conspiracy to possess with intent to distribute a controlled substance and one count of conspiracy to launder monetary instruments. Defendant Carl Gayheart Schou, 48, pleaded guilty in November to the same offenses and is scheduled to be sentenced in October 2013.
Kareem Ambrose, 33, was sentenced on May 1, 2013, to 12 months in federal prison and a $1,000 fine following his guilty plea the previous month to one count of possession of a controlled substance.
According to documents filed in the case, over the course of the conspiracy from December 2009 until March 2012, Greene, Rene and Schou were involved in the sale and shipment of marijuana from the DFW area to buyers located in St Croix, in the U.S. Virgin Islands. In fact, Ambrose was stopped by law enforcement in St. Croix, in a vehicle that contained a package with 2.2 pounds of marijuana that had been mailed to him from North Texas.
Greene, Rene and Schou would mail parcels of marijuana, each weighing approximately two – five kilograms, from multiple post offices in DFW to buyers in St. Croix. Fictitious return addresses were used on the drug parcels to avoid detection. In return for the drug parcels, the buyers would mail the defendants parcels containing proceeds of the sales of the trafficked marijuana, most commonly in the form of U.S. Postal money orders. At times, in order to disguise the source of the proceeds of the marijuana trafficking, Rene and Schou would use false information in the return addresses and would mail the proceeds to third parties. Schou or Greene would then deposit the money orders into their personal bank accounts, or cash them at their member bank, a check cashing facility or a U.S. Postal facility.
This case was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, U.S. Customs and Border Protection, Internal Revenue Service - Criminal Investigation and the U.S. Virgin Islands Police Department. Assistant U.S. Attorneys Joshua T. Burgess and John de la Garza are prosecuting.
Nedra Bell Sentenced for Katrina Related Fraud and Making False Statements to Housing Authority of New OrleansRead the Press Release
NEDRA BELL, age 40, a resident of New Orleans, was sentenced today in federal court by U. S. District Judge Lance M. Africk to serve 5 years probation to include one year of home confinement, after pleading guilty to theft of government funds, and to making false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente. In addition, BELL has been ordered to pay $113,252.97 in restitution to the United States Department of Housing and Urban Development (“HUD”).
According to court documents, BELL applied for a Louisiana Road Home Program (“LRHP”) grant for property she was renting from her brother at the time of Hurricane Katrina. BELL applied for the grant on behalf of her brother, falsely stating that he was residing in the property at the time of Hurricane Katrina. As a result of her false statements in her application, BELL fraudulently received approximately $54,372 from HUD. BELL is also convicted of making false statements to a federal agency on a re-certification application and HUD Income Questionnaire to the Housing Authority of New Orleans (“HANO”) for HUD rental subsidized housing under its Section 8 program. BELL denied that she received self-employment income or owned property, when in truth and in fact, she received income from her business as a hair stylist and owned property. As a result of BELL’s misrepresentations, she received a total of $58,881 in rental assistance from HUD.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The case was investigated by agents with the U.S. Department of Housing and Urban Development, Office of Inspector General, and was prosecuted by Assistant United States Attorney Julia K. Evans.
Multi-Agency Violent Crime InitiativeRead the Press Release
110 Arrested During Multiagency, Violent Crime Initiative from April to June 2013
TULSA, Okla. — United States Attorney for the Northern District of Oklahoma Danny C. Williams Sr., joined by members of federal, state and local law enforcement agencies and community counseling services, today announced a first series of arrests as the result of the Violent Crime Initiative to remove violent offenders from the 61st Street and Peoria Avenue area.
The joint effort of federal and state law enforcement resulted in the arrest of 110 offenders.
The Violent Crime Initiative began in April and will continue with ongoing operations until the streets and community are safe for all citizens. Violent Crime Initiative partners include the Tulsa Police Department, Tulsa County District Attorney’s Office, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), Department of Housing and Urban Development-Office of Inspector General, U.S. Probation Office, Tulsa County Juvenile Bureau, and Inspira Mentoring and Counseling.
“The U.S. Attorney’s Office will continue to work closely in a combined effort with federal, state and local law enforcement agencies to fight violent crime to improve the quality of life for the City of Tulsa and the Northern District of Oklahoma,” said U.S. Attorney Williams. “The U.S. Attorney’s Office is committed to strengthening these partnerships and developing new initiatives that safeguard our community from harm.”Tulsa County District Attorney Tim Harris said, “The prosecution of violent crime is the Tulsa County District Attorney’s Office number one priority. Individuals or groups of individuals that commit violent crimes are placed on notice. We will find you, we will arrest you and we will prosecute you. We will continue our cooperation in collaboration with all law enforcement partners at both the state and federal level to accomplish our goal of making Tulsa a safer place.”
The Violent Crime Initiative end-goals are to create safe neighborhoods by prosecuting criminals. Second, increase the potential for economic and business growth in the area by reducing crime, and third, to address the socio-economic component of stopping the cycle of crime by assisting the offenders through individual counseling.
Multi-Agency Enforcement Operation in New Mexico Significant Part of Nationwide Synthetic Drug TakedownRead the Press Release
ALBUQUERQUE – During a press conference this afternoon, federal, state and local officials announced the results of the multi-agency enforcement operation in New Mexico which was part of yesterday’s DEA-led enforcement operations in 35 states targeting the upper echelon of dangerous designer synthetic drug trafficking organizations that have operated without regard for the law or public safety.
“Project Synergy” which was coordinated by DEA’s Special Operations Division, began in Dec. 2012. Leading up to yesterday’s nationwide takedown, Project Synergy included 75 arrests, the seizure of nearly $15 million in cash and assets, and the seizure of more than 1550 kilograms of synthetic drugs at express consignment facilities. According to DEA, during yesterday’s nationwide takedown, law enforcement executed more than 150 arrest warrants and 375 search warrants in 35 states, 49 cities and five countries.
New Mexico played a significant role in Project Synergy that involved a multi-agency investigation by the Albuquerque office of the DEA, the Albuquerque Police Department, the McKinley County Sheriff’s Office, the Grants Police Department and the Region II Narcotics Task Force that began in Nov. 2012. The investigation, which was code-named “Operation Old Spice, New Money,” initially targeted synthetic cannabinoid (“Spice”) distribution in Cibola, McKinley and San Juan Counties and expanded to Bernalillo County. During yesterday’s enforcement operation, officers arrested four individuals on federal charges and executed 28 federal search warrants and 22 seizure warrants resulting in the seizure of more than 100,000 retail sale packets of Spice and 15 pounds of bulk Spice, more than $1.2 million from bank accounts, more than $135,000 in cash, 18 vehicles and 13 firearms.
The results of the investigation were announced by U.S. Attorney Kenneth J. Gonzales, Joseph M. Arabit, Special Agent in Charge of the El Paso Division of the Drug Enforcement Administration (DEA), U.S. Marshal Conrad E. Candelaria, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Field Division of the FBI, Chief Kyle Westall of the Farmington Police Department, Bernalillo County Sheriff Dan Houston, McKinley County Sheriff Felix T. Begay, San Juan County Sheriff Ken Christesen, and Fire Marshal Victor Padilla of the Albuquerque Fire Department.
In announcing New Mexico’s role in yesterday’s nationwide takedown, U.S. Attorney Gonzales said, “Synthetic cannabinoid products, commonly known as Spice, or packaged as purported incense or potpourri, are the latest dangerous designer drugs to reach our neighborhoods. These products have proven to be a public health hazard with serious and sometimes deadly consequences. It is imperative that everyone, especially unwary young people, realize that Spice is not for sport, and we will prosecute those who know the dangers but push it for profit behind a facade of a legitimate business. I thank DEA and its federal, state and local partners here in New Mexico for working very hard not just to eradicate these dangerous drugs from our community but also for their efforts to educate the public about the dangers they present, particularly for our young people.”
“The abuse of dangerous synthetic drugs has become a nationwide concern. DEA, in collaboration with our law enforcement partners, will continue to identify, investigate, arrest, and seize the illicit assets of those who manufacture and deal in these substances,” said DEA Special Agent in Charge Joseph M. Arabit. “Individuals, retailers and organizations that continue to circumvent the law and engage in the trafficking of these dangerous drugs should be on notice that law enforcement agencies will utilize all available resources to hold them accountable for their actions.”
The individuals arrested yesterday are: Khaled Assi, 39, of Gallup, N.M.; Mohammed Kayed Assi, 26, of Farmington, N.M.; Nael Assi, 41, of Gallup, N.M.; and Amro Assi, 33, of Grants, N.M. Mohammed Assi is a United States citizen. Khaled Assi is a Jordanian national pending an immigration review to continue to reside legally in the United States; and Nael and Amro Assi are Jordanian nationals who are legal permanent residents of the United States. All four defendants made their initial appearances in federal court this morning and are temporarily detained pending detention hearings scheduled for tomorrow.
Khaled Assi, Mohammed Assi and Nael Assi are charged with conspiracy to distribute a controlled substance analogue in an indictment filed on June 25, 2013. According to the indictment, these three defendants conspired to distribute Spice in San Juan and McKinley Counties from Jan. 2012 through April 2013. The indictment also charges Khaled Assi with distributing Spice on Feb. 14, 2012 in San Juan County. Amro Assi is charged with conspiracy and distribution of a controlled substance analogue in a criminal complaint filed on June 26, 2013. If convicted, each defendant faces a maximum penalty of 20 years in prison and Khaled Assi, Nael and Amro Assi will be deported after serving their prison sentences.
During yesterday’s enforcement operation, 15 search warrants were executed at the following businesses: ABQ Shop, From Rags 2 Riches II, WARZONE aka Rags 2 Riches III, The Moon Smoke Shop, Pyros Smoke Shop and Pyros Smoke Shop 2 in Albuquerque, N.M.; VIP Smoke Shop and Rollet Smoke Shop in Kirtland, N.M.; Rollet Smoke Shop #1 in Aztec, N.M.; Cohiba Cigar Shop and Up N Smoke in Farmington; Fu King Smoke Shop #1, Fu King Smoke Shop #2, Fu King Smoke Shop #3, and Fu King Smoke Shop #4 in Gallup, N.M.; Santa Fe Smoke Shop in Grants, N.M., and Lava Lounge in Las Cruces, N.M. Search warrants also were executed at six residences in Albuquerque, three residences in Gallup, two residences in Farmington and one residence in Grants. Seizure warrants were executed on 21 checking accounts and one savings account.
“The joint federal and state multi-agency investigation that culminated in today’s charges demonstrates the seriousness and scope of the problem and the strength of our resolve to eradicate the threat posed by these synthetic drugs, said U.S. Marshal Conrad E. Candelaria. “Synthetic marijuana, its producers, distributors and sellers have been added to our list of targets on our continuing war on drugs and the U.S. Marshals Service is proud to support that effort.”
FBI Special Agent in Charge Lee said, “Many communities in New Mexico are safer today because of the close collaboration and teamwork demonstrated by the federal, state and local law enforcement agencies involved in this operation. I would like to congratulate the DEA for their leadership and also thank the FBI Special Agents and Professional Support staff from the Gallup and Farmington Resident Agencies who helped make this operation a success.”
Farmington Police Chief Kyle Westall added, “The regional distribution of synthetic cannabinoids has seen an exponential increase in our community in the past few years. Without the help of the DEA it would have been impossible for us to inhibit the flow of these dangerous drugs.”
“Synthetic drugs have been an increasing problem within McKinley County for some time now,” said McKinley County Sheriff Felix T. Begay. “We have been receiving countless complaints from both citizens and the business community within McKinley County concerning the sales and the use and abuse of spice. We are proud to have been involved in this operation and we applaud the Drug Enforcement Administration for their outstanding dedication to our community.”
Bernalillo County Sheriff Dan Houston said, “We at the Bernalillo County Sheriff’s Office very much value our partnerships with our local federal agencies. In fighting crime, we know without a doubt that the more we work together, the harder it is for criminals to operate. We are proud to have been a part of this significant endeavor.”
The cases resulting out of “Operation Old Spice, New Money” are being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado and related forfeiture proceedings are being handled by Assistant U.S. Attorneys Stephen R. Kotz and Cynthia L. Weisman. The cases were investigated by the Albuquerque Office of the DEA, the Albuquerque Police Department, the McKinley County Sheriff’s Office, the Grants Police Department, and the Region II Narcotics Task Force. The following agencies participated in yesterday’s enforcement operation: the Albuquerque, Farmington and Gallup offices of the FBI, the U.S. Marshals Service, the U.S. Fish & Wildlife Service, the U.S. Border Patrol, the New Mexico State Police, the Bernalillo County Sheriff’s Office, Albuquerque Fire Department, the Corrales Police Department, the Farmington Police Department, the Gallup Police Department, the San Juan County Sheriff’s Office, and the Region I Narcotics Task Force.
“Operation Old Spice, New Money” was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is continuing.
Background on Designer Synthetic Drugs
Designer synthetic drugs are often marketed as herbal incense, potpourri, bath salts, jewelry cleaner, or plant food, and have caused significant abuse, addiction, overdoses, and emergency room visits. Those who have abused synthetic drugs have suffered vomiting, anxiety, agitation, irritability, seizures, hallucinations, tachycardia, elevated blood pressure, and loss of consciousness. They have caused significant organ damage as well as overdose deaths.
Smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been impregnated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. Synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as “Spice,” “K2,” “Blaze,” and “Red X Dawn” are labeled as incense to mask their intended purpose. In 2012, a report by the Substance Abuse and Mental Health Services Administration (SAMHSA) reported 11,406 emergency department visits involving a synthetic cannabinoid product during 2010. In a 2013 report, SAMHSA reported the number of emergency department visits in 2011 involving a synthetic cannabinoid product had increased 2.5 times to 28,531. The American Association of Poison Control Centers reported 5,205 calls related to human exposure of synthetic cannabinoids.
For the past several years, there has also been a growing use of, and interest in, synthetic cathinones (stimulants/hallucinogens) sold under the guise of “bath salts” or “plant food.” Marketed under names such as “Ivory Wave,” “Purple Wave,” “Vanilla Sky,” or “Bliss,” these products are comprised of a class of dangerous substances perceived to mimic cocaine, LSD, MDMA, and/or methamphetamine. Users have reported impaired perception, reduced motor control, disorientation, extreme paranoia, and violent episodes. The long-term physical and psychological effects of use are unknown but potentially severe. The American Association of Poison Control Centers reported 2,656 calls related to synthetic cathinone (“bath salts”) exposures in 2012 and overdose deaths have been reported as well.
These products have become increasingly popular, particularly among teens and young adults and those who mistakenly believe they can bypass the drug testing protocols of employers and government agencies to protect public safety. They are sold at a variety of retail outlets, in head shops, and over the Internet. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
Controlled Substance Analogue Enforcement Act
While many of the designer drugs being marketed today that were seized as part of Project Synergy are not specifically prohibited in the Controlled Substances Act (CSA), the Controlled Substance Analogue Enforcement Act of 1986 (AEA) allows many of these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. A number of cases that are part of Project Synergy will be prosecuted federally under this analogue provision, which is being utilized to combat these new and emerging designer drugs.
DEA has used its emergency scheduling authority to combat both synthetic cathinones (the so-called “bath salts” with names like Ivory Wave, etc.) and synthetic cannabinoids (the so-called incense products like K2, Spice, etc.), temporarily placing several of these dangerous chemicals into Schedule I of the CSA. Congress has also acted, permanently placing 26 substances into Schedule I of the CSA in 2012.
For more information about this operation and synthetic designer drugs, visit www.dea.gov<http://www.dea.gov>.
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Montgomery Woman Pleads Guilty to Taking Nearly $200,00 in SSA Payments over 22 YearsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Mary Elizabeth Kilpatrick, 57, of Montgomery, La., pleaded guilty before U.S. District Judge Dee D. Drell to theft of government money.
According to evidence presented at the guilty pleas, Kilpatrick spent her mother’s Social Security Administration (SSA) payments for more than 22 years after her mother died. Kilpatrick’s mother died June 5, 1990, and until then, had been receiving widow’s benefits. The money continued to be placed in Kilpatrick and her mother’s joint account, and Kilpatrick continued to spend it. The SSA deposited $176,714 total in widow’s benefits into the joint account. Additionally, the SSA disbursed $15,954 in Medicare premiums after the death, and there was a $250 Economic Recovery Payment paid out to Kilpatrick’s mother in May 2009. The total loss was $192,918.
Kilpatrick faces a maximum penalty of 10 years in prison, a $250,000 fine, restitution, and three years of supervised release. Kilpatrick is scheduled to appear Sept. 27, 2013 for sentencing.
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Mission Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man convicted of Larceny was sentenced on June 24, 2013 by U.S. District Judge Roberto A. Lange.
Harvey LaPointe, age 62, was sentenced to 18 months’ probation, $4,900 in restitution, and $100 to the Federal Crime Victims Fund.
LaPointe was indicted by a federal grand jury on February 13, 2013 and pled guilty to the charge on April 8, 2013.
The conviction stems from incidents that took place between August 1, 2009, and December 31, 2010, when LaPointe took money and property from the St. Francis Volunteer Fire Department to which he was not entitled.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
LaPointe was remanded to the custody of the U.S. Marshals Service.
Midtown Neurology Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Midtown Neurology, P.C. to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
An investigation was initiated by a complaint filed with the United States alleging that on at least three occasions Midtown Neurology failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant (“V.M.”) is deaf and uses American Sign Language as her primary means of communication. On three separate visits to Midtown Neurology, V.M. alleged Midtown Neurology failed to provide a qualified sign language interpreter when necessary to ensure effective communication. During one of the visits to Midtown Neurology, V.M. alleged she underwent an elective medical procedure which was very painful. Because V.M. did not have effective communication before and during this visit, she was scared and did not understand what was happening. According to V.M., she cried, yelled, and tried to ask the doctor to stop the procedure. Because the doctor did not understand her request, the doctor continued the procedure despite V.M’s request. Midtown Neurology denied these allegations but agreed to cooperate with the United States Attorney’s Office to resolve the complaint.
“Every person should have the ability to fully participate in their own health care decisions as well as the decisions that impact their loved ones,” said United States Attorney Sally Quillian Yates. “Our office will continue to devote resources to eradicate barriers to health care for persons with disabilities.”
“The Department of Justice takes these civil rights violations seriously,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. The U.S. Attorneys are key partners in stopping discrimination against individuals with disabilities in the critical area of health care and we are very pleased to be working with them.”Under the settlement agreement, Midtown Neurology agreed to ensure that it provides effective communication to patients who are deaf and hard of hearing in the future. In the future, at the time a person who is deaf or hard of hearing makes an appointment, Midtown Neurology will consult with the person who is deaf to determine which aids and services are appropriate. Among other things, Midtown Neurology agreed to hire an outside group to conduct mandatory ADA training for all its employees and to provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement. Midtown Neurology also agreed to pay $20,000 to the complainant and a civil penalty in the amount of $2,000 to the United States.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.Assistant United States Attorney Aileen Bell Hughes is representing the United States in this matter.
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.
Midtown Neurology Settlement Agreement
Mexican Citizen Living in Emporia Indicted on Document Fraud ChargesRead the Press Release
TOPEKA, KAN. – A Mexican citizen who has been living in Emporia, Kan., has been indicted on charges of document fraud, U.S. Attorney Barry Grissom said today.
Olegaria Cruz-Juarez, 39, a citizen of Mexico, is charged with one count of unlawful possession of false identification documents and one count of aggravated identity theft.
She and her husband, Sergio Tapia-Martinez, have been under investigation as suspected distributors of identification documents to unauthorized workers in central Kansas, Grissom said. Tapia-Martinez was charged in a separate case with unlawfully re-entering the United States after being convicted of an aggravated felony and deported.
A criminal complaint filed in the case against Cruz-Juarez alleges that Kansas Department of Revenue agents arrested her for driver’s license fraud during a criminal investigation that revealed she had renewed her Kansas driver’s license claiming to be lawfully present in the United States when she was not. They served a search warrant at her home in Emporia, where they found another person’s Social Security card between the pages of a Bible in her bedroom. They also found a small notebook containing the names, dates of birth and Social Security number for 13 different identities. Agents ran the numbers against records maintained by the Social Security Administration and the Kansas Department of Revenue. Eight of the identities were used in the state of Kansas to obtain a driver’s license or identification card.
An affidavit filed in the case states that agents developed evidence that Cruz had previously purchased documents belonging to another person in order to obtain an identification card and secure employment. She needed to purchase documents that employers would accept. Agents also developed evidence that she had helped relatives and others do the same thing in the past. Immigration records indicate that Cruz is a Mexican national who was denied permanent resident status in Sept. 30, 2004, and is in the United States unlawfully.
If convicted, she faces a maximum penalty of 15 years in federal prison and a fine up to $250,000 on the document charge, and a mandatory two years to run consecutively to the underlying sentence and a fine up to $250,000 on the aggravated identity theft count. Immigration and Customs Enforcement, the Kansas Department of Revenue - Office of Special Investigations, the Emporia Police Department, the Lyon County Sheriff’s Office, the Social Security Administration - OIG and the Lyon County Attorney’s Office investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
OTHER INDICTMENTS
Joseph S. Buschbom, 30, Topeka, Kan., is charged with unlawful possession of a firearm after felony convictions. The crime is alleged to have occurred June 12, 2013, in Shawnee County, Kan.If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Gabriel Chavez, 23, Dallas, Texas, is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 31, 2013, in Ellsworth County, Kan.
If convicted, he faces a penalty of not less than 10 years and not more than life and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Omar Gonzalez-Nunez, 25, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being convicted of a felony and deported. He was found June 12, 2013, in Geary County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Shawn Rene Pigorsch, 43, Abilene, Kan., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred Nov. 28, 2012, in Dickinson County, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Dickinson County Sheriff’s Office investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Kathy Rivera, 46, Ft. Riley, Kan., is charged with unlawful possession of a dangerous weapon with intent to do bodily harm. The crime is alleged to have occurred Jan. 15, 2013, on the Fort Riley Military Installation.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Ft. Riley Police investigated. Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Christine Kenney are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Media AdvisoryRead the Press Release
There will be a press conference held on Friday, June 28, 2013, at 1:00 p.m., at the Cedar Rapids Police Department, 505 First Street SW, in Cedar Rapids. United States Attorney Sean Berry and other law enforcement officials, including those from the Federal Bureau of Investigation and the Cedar Rapids Police Department, will discuss the Cedar Rapids Safe Streets Task Force and will announce several new arrests and indictments in federal firearms cases.
The Cedar Rapids Safe Streets Task Force is a federal, state, and local law enforcement initiative aimed at addressing gang-related and violent crime in the Cedar Rapids area.
Press releases and interview opportunities will be available.
McLaughlin Man Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man convicted of Assault With a Dangerous Weapon and Domestic Assault by a Habitual Offender Resulting in Substantial Bodily Injury was sentenced on June 24, 2013 by U.S. District Judge Roberto A. Lange.
Benedict Iron Thunder, Jr. age 36, was sentenced to 38 months imprisonment, 2 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Iron Thunder was indicted by a federal grand jury in January of 2013, and pled guilty on March 15, 2013.
The conviction stems from an incident on June 18, 2010. On that date, an officer with the Standing Rock Police Department was dispatched to McLaughlin in response to a call of a female being assaulted. Upon arrival, the officer made contact with the victim who stated that she was struck numerous times in the head and kicked repeatedly in the back. As a result of the attack, the victim received a large lump on the top of her head, a swollen and bloody nose, multiple injuries to the mouth, and various bruises on her body. Also visible in the pictures were the bloody footprints of her attacker on her back.
The Defendant has been found guilty on two or more separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. Both of the previous assaults involved this same victim.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case was prosecuted by Assistant U.S. Attorney Troy Morley.
Iron Thunder was remanded to the custody of the U.S. Marshal Service to begin serving his sentence.
McLaughlin Man Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man convicted of Assault With a Dangerous Weapon and Domestic Assault by a Habitual Offender Resulting in Substantial Bodily Injury was sentenced on June 24, 2013 by U.S. District Judge Roberto A. Lange.
Benedict Iron Thunder, Jr. age 36, was sentenced to 38 months imprisonment, 2 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Iron Thunder was indicted by a federal grand jury in January of 2013, and pled guilty on March 15, 2013.
The conviction stems from an incident on June 18, 2010. On that date, an officer with the Standing Rock Police Department was dispatched to McLaughlin in response to a call of a female being assaulted. Upon arrival, the officer made contact with the victim who stated that she was struck numerous times in the head and kicked repeatedly in the back. As a result of the attack, the victim received a large lump on the top of her head, a swollen and bloody nose, multiple injuries to the mouth, and various bruises on her body. Also visible in the pictures were the bloody footprints of her attacker on her back.
The Defendant has been found guilty on two or more separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. Both of the previous assaults involved this same victim.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case was prosecuted by Assistant U.S. Attorney Troy Morley.
Iron Thunder was remanded to the custody of the U.S. Marshal Service to begin serving his sentence.
McAllen Man Gets More Than 15 Years in Prison for Possessing MethamphetamineRead the Press Release
CORPUS CHRISTI, Texas – Rolando Reyna, 28, of McAllen, has been ordered to prison for nearly 16 years following his conviction for possession with intent to distribute approximately 29.76 kilograms of methamphetamine, United States Attorney Kenneth Magidson announced today. Reyna pleaded guilty April 10, 2013.
Today, U.S. District Judge Hayden Head, who accepted the guilty plea, handed Reyna a total sentence of 188 months. He was further ordered to serve a term of five years of supervised release following completion of the prison term.
Reyna was arrested on Nov. 18, 2012, at the United States Border Patrol checkpoint in Sarita after agents found 44 bundles of methamphetamine hidden in a concealed compartment in his pick-up truck.
At the plea hearing in April, Reyna admitted that he drove the methamphetamine into the United States from Guadalajara, Mexico, and that he intended to transport it to Atlanta, Ga. He also admitted he expected to be paid $10,000 upon successful delivery. DEA agents believe this is the largest single seizure of methamphetamine within the Corpus Christi division in the last five years.
Reyna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being investigated by the DEA and prosecuted by Assistant United States Attorney Sam Brown IV.Marshalltown Man Pleads Guilty to Mail Fraud ChargeRead the Press Release
DES MOINES, IA – On June 25, 2013, Michael James Allison, age 48, of Marshalltown, Iowa, pled guilty to mail fraud, in connection with a scheme to defraud his employer through the mailing of fraudulent expense reports for reimbursement announced United States Attorney Nicholas A. Klinefeldt.
According to the written plea agreement, Michael Allison, while in his position as Chief Financial Officer and Director of Finance of a regional subsidiary of Airgas, Incorporated, with headquarters in Chicago, IL, mailed falsified expense reports to the region’s accounting office. Allison categorized personal expenses as business expenses and fabricated expenses on the reports. In one instance, Allison claimed he was entitled to approximately $9,000 in reimbursements for Ryder Cup golf tickets and expenses, when the tickets were for his personal use. From 2003 – 2012, Allison obtained at least $300,000 as a result of his scheme.
Michael Allison will be sentenced on October 9, 2013, before the Honorable John A. Jarvey.
Mail fraud is punishable by a term of imprisonment of up to 20 years and a fine of up to $250,000.
This case was investigated by the Federal Bureau of Investigation, following a referral from Airgas, Inc., and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Many Couple Sentenced for Counterfeiting $20 BillsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Larry Maurice Malmay, 36, of Zwolle, La., and Kellie Amanda Craig, 29, of Many, La., were sentenced by U.S. District Judge Tom Stagg for making counterfeit Federal Reserve notes. Malmay received 27 months in prison followed by three years of supervised release. Craig received five years of probation. The equipment and items used to produce the counterfeit money were ordered forfeited to the government.
According to evidence presented at the guilty pleas, a Sabine Parish Sheriff’s Deputy came to Craig’s home June 12, 2012 in response to a domestic complaint. While talking to Craig, it was learned that there were counterfeit $20 bills in the home. Craig told authorities that Malmay and another person had printed most of the fake Federal Reserve notes. A search of the home revealed cut and uncut counterfeit bills, a paper cutter, cotton paper and a printer. Malmay later told authorities he had planned to print $16,500 worth of fake money to pay a drug dealer.The U.S. Secret Service-Shreveport Office and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Manhattan U.S. Attorney Announces Extradition of Felix Trujillo-Manrique from Colombia on Heroin Trafficking ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian R. Crowell, Special Agent-in-Charge of the New York Field Office of the U.S. Drug Enforcement Administration (“DEA”), today announced that FELIX TRUJILLO-MANRIQUE was extradited yesterday from Colombia for allegedly conspiring to import heroin from Colombia into the U.S. TRUJILLO-MANRIQUE, a citizen of Colombia, was arrested by Colombian National Police in October 2010, at the request of the U.S. He will be presented and arraigned today in federal court before U.S. Magistrate Judge Andrew J. Peck. U.S. District Court Judge J. Paul Oetken is assigned to the case.
As alleged in the Indictment unsealed yesterday in Manhattan federal court and other court documents:
TRUJILLO-MANRIQUE was a leader of an international conspiracy to traffic kilogram quantities of heroin from Colombia through Ecuador and ultimately into the U.S. TRUJILLO-MANRIQUE, who was based in Colombia, supplied couriers in Ecuador with heroin which they then smuggled into the U.S. via international flights, including flights into John F. Kennedy International Airport in New York City. In connection with the investigation into TRUJILLO-MANRIQUE, more than ten kilograms of heroin were seized in South America and New York City.
The Indictment charges TRUJILLO-MANRIQUE, 42, with one count of conspiracy to distribute heroin and one count of conspiracy to import heroin into the United States. If convicted, TRUJILLO-MANRIQUE faces a maximum sentence of life in prison.
Mr. Bharara praised the outstanding efforts of the DEA’s New York Drug Enforcement Task Force Group T-23, which conducted the investigation along with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations New York Narcotics Group II. The DEA’s New York Drug Enforcement Task Force is comprised of members of the DEA, the New York City Police Department, and the New York State Police. Mr. Bharara also thanked U.S. Customs and Border Protection, the New Jersey Field Division of the Federal Bureau of Investigation, the DEA Bogota Country Office, the DEA Guayaquil Resident Office, the DEA Baltimore District Office, the U.S. Attorney’s Office for the Eastern District of New York, the Colombian National Police, the U.S. Department of Justice Office of International Affairs, the U.S. Department of State, and Interpol for their assistance in this matter.
The case is being handled by the Narcotics Unit. Assistant United States Attorney Robert L. Boone is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Felix Trujillo-Manrique Indictment
Man Sentenced for Attempting to Smuggle Roosters into Mexico for Cockfighting; Mutilated Birds Had to Be EuthanizedRead the Press Release
A man who attempted to smuggle more than two dozen roosters and hens into Mexico for the purposes of cockfighting was sentenced today by U.S. District Judge William Q. Hayes to time served, which amounted to 65 days in custody.
Marco Marquez-Avila, 41, of Tijuana, was returned to the United States on April 22, 2013, by Mexican authorities who discovered that he had 28 adult roosters and hens that were covered by floor mats in his Toyota Camry.
Each bird was individually encased in a nylon sock with the head covered and the feet bound with a velcro strap. Additionally, the birds had had their combs and wattles removed, a common mutilation for birds intended for cockfighting. All birds required euthanasia.
While cockfighting is legal in Mexico, it is not legal in the state of California. Federal law in the U.S. prohibits the transportation of animals that are to be used in an animal fighting venture. Additionally, federal regulations require that poultry exported to Mexico be eligible to be freely transported and marketed in the United States, which cockfighting birds are not.
This is the fifth case of cockfighting birds being smuggled southbound to Mexico this year, and the second time someone has been turned around by Mexican authorities and returned to Customs and Border Protection officers in as many months because adult poultry are not allowed to be exported to Mexico without prior inspection and certification.
DEFENDANT Case Number: 13cr01845 MARCO MARQUEZ-AVILA SUMMARY OF CHARGESUnlawful transportation of animals used in animal fighting venture – Title 7, United States Code, 2156
AGENCIES
Maximum penalties: 5 years imprisonment and $250,000 fineU.S. Department of Agriculture, Office of Inspector General
U.S. Customs and Border ProtectionMadden Sentenced to PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ROY E. MADDEN, age 46, of Denham Springs, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve four (4) months in federal prison. MADDEN was also ordered to serve a two-year term of supervised release following his release from imprisonment.
MADDEN previously pled guilty to forging and counterfeiting the seal of a department and agency of the United States, namely, the United States Army Corps of Engineers, in violation of Title 18, United States Code, Section 506. MADDEN admitted that, while employed as an environmental consultant and having been engaged by a client to determine whether a particular parcel of property contained wetlands, MADDEN fraudulently altered and manipulated a Corps of Engineers letter so that it falsely indicated that the property did not contain wetlands. To make the document appear genuine, MADDEN included the USACE seal and the forged signature of a Corps official. MADDEN then provided the fraudulent letter to his client, knowing that the property contained wetlands. Relying on the fraudulent letter, the defendant’s client and another individual finalized a sale of the property. When MADDEN’s fraud was discovered, the transaction had to be rescinded.
This investigation was conducted by the Criminal Investigation Division of the Environmental Protection Agency and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens.
Lower Brule Man Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on June 25, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Marty LaRoche, age 20, was sentenced to 1 year probation and a $25 special assessment to the Federal Crime Victims Fund. LaRoche is to undergo substance abuse treatment and anger management treatment.
LaRoche was indicted for the above charge by a federal grand jury on March 13, 2013, and pled guilty to an Information on April 25, 2013.
The charge stems from an incident on February 8, 2013, wherein Marty LaRoche, and his sister Lauren LaRoche, did forcibly assault, resist, oppose, impede, intimidate, and interfere with an officer, constituting simple assault. During the incident, LaRoche actively tried to interfere and prevent the arrest of his sister. Lauren LaRoche previously pled guilty and was sentenced on May 15, 2013.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Local Tax Advisor Sentenced for Tax EvasionRead the Press Release
St. Louis, MO - FRANK L. "TIGER" ZERJAV, JR., Wildwood, MO, was sentenced to 18 months in prison on charges of tax evasion for 2001 through 2004. United States District Judge Catherine D. Perry concluded two days of hearings as she imposed the sentence today in federal court in St. Louis.
In December 2012, Zerjav plead guilty to four counts of federal income tax evasion relating to the joint income tax returns filed by him (and his wife) for the years 2001 through 2004. The government claimed that he attempted to evade some $183,000 in taxes by running over $850,000 in income through corporate entities and then deducting personal expenses on the tax returns filed by those corporations. In court documents submitted at the time of the guilty plea, there was a listing of expenses that were improperly taken as deductions for those years including: payments for a condominium at the Lake of the Ozarks; a 37-foot boat; two Seadoo water craft; a home entertainment system; payments on Zerjav's student loans; payments for the BMW vehicles driven by Zerjav and his wife and thousands of dollars in fast food and other restaurant expenses. Zerjav did not agree with the tax loss figure alleged by the Government and the two-day sentencing hearing was the result.
In court today, Judge Perry found that the corporations created by Zerjav were "conduits" to receive his income and she also found that the corporations served no legitimate business purpose other than to avoid taxes. She stated that Zerjav's use of the corporations made the scheme especially complex. The judge went on to find that the extensive deductions for personal expenditures were improper as well. She ordered Zerjav to pay restitution to the Internal Revenue Service in the amount of $181,000.
"In today's economic environment, it's more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe," said Sybil A Smith, IRS Criminal Investigation Special Agent in Charge. "Honest taxpayers deserve our vigilance in investigating and prosecuting those who evade the payment of their fair share of taxes."
According to court documents, during 2000-2007, Frank L. “Tiger” Zerjav, Jr., and his father, Frank L. Zerjav, Sr., who is a CPA, were the principals in two entities: Zerjav & Company, PC, a full service accounting firm that primarily prepared business and personal tax returns, and the Advisory Group USA, LC, which offered tax planning and asset protection strategies to clients. Tiger Zerjav managed the activities of the accountants working at the firm and advised existing clients. Through 2003 he also prepared returns and reviewed the returns prepared by firm accountants. Clients of the Advisory Group included many small business owners and self-employed individuals. They were typically advised to create S-corporations into which the income from their businesses would be funneled. Since the net income from an S-Corporation flows through to the owner for inclusion on the owner’s personal income tax return, there is an obvious incentive to maximize deductions on the S-corporation return. Tiger Zerjav used this strategy in preparing his tax returns for the years 2001 through 2004.
In March 2010, Tiger Zerjav and Frank Zerjav Sr., and the Advisory Group entities entered into an agreement with the United States which included the following stipulations: (1) the Advisory Group would cease doing business; (2) Tiger Zerjav would not be involved in tax preparation activities for a three-year period and (3) Zerjav & Company would cease using many of the tax strategies mentioned above.
Tiger Zerjav was released on his bond and will voluntarily surrender to the prison facility when designated.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney James E. Crowe, Jr., handled the case for the U.S. Attorney’s Office.
Liang Wang and Ke Xu Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on June 27, 2013, before U.S. District Judge Sam E. Haddon, LIANG WANG, a 25-year-old resident of San Gabriel, California, and KE XU, a 30-year-old resident of Monterey, California, were each sentenced to a term of:
Prison: 33 months
Special Assessment: $100
Restitution: $76,398
Supervised Release: 3 years
They were sentenced in connection with their guilty pleas to wire fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
WANG, XU, and others stole credit cards and credit card account information and then used the information from the stolen credit cards to create counterfeit means of identification. The counterfeit means of identifications were then presented to merchants in Montana wherein the defendants impersonated the true credit card account holders and thereby used the credit cards to purchase gift cards and other merchandise without authorization.
On July 28, 2012, WANG rented an automobile in Alhambra, California. WANG, XU, and others then drove from California to Montana to commit their fraud. Upon reaching Helena on July 29, 2012, WANG, XU, and their co-conspirators entered local merchants such as Home Depot, Albertsons stores, Macy's Department Store, Target, Walmart, Staples, and Office Depot to make purchases with the counterfeit credit cards. Most of the items purchased by WANG, XU, and their co-conspirators were gift cards. The gift cards varied in value ranging from approximately $200, $500, $1,000, $1,500, to $1,800 in value.
WANG, XU, and their co-conspirators charged merchandise and goods on the victims' credit accounts until the account reached its credit limit. They then discarded the counterfeit credit cards. Some of these discarded cards were later found in trash.
After making all their purchases in Helena, WANG, XU, and their co-conspirators traveled that same day to Butte and/or Bozeman where they continued their fraudulent scheme. Evidence would have shown that the total value of the goods and merchandise purchased by members of the conspiracy using the counterfeit credit cards on July 29th totaled over $76,000.
In total, members of the conspiracy possessed and used more than 50 different means of identification to carry out their fraud scheme.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Lakeland Man Sentenced to Fifteen Years in Prison for Selling Firearms to Law EnforcementRead the Press Release
Tampa, FL - U.S. District Judge Richard A. Lazzara today sentenced Jacques D. Randolph (31, Lakeland) to fifteen years in federal prison for being a felon in possession of a firearm. Randolph pleaded guilty before Judge Richard A. Lazzara on April 4, 2013.
According to court documents, Randolph met with undercover law enforcement officers on multiple dates for the purpose of selling firearms. Over a three-month period, Randolph sold sixteen firearms to undercover officers. Randolph has been a convicted felon since 1997. On the dates that he sold the firearms to law enforcement, Randolph was on felony probation.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Justice Department Settles Race Discrimination Lawsuit Against Owners and Managers of Mobile Home Parks in Alabama and GeorgiaRead the Press Release
The Justice Department announced today that Lawrence Properties Inc., Lawrence at Lakewood LLC, Michael Lawrence, and Williams Bounds have agreed to pay $35,000 to settle a lawsuit involving violations of the Fair Housing Act. The lawsuit alleged that the defendants denied housing to an African American woman and her family because of race. The lawsuit also alleged that the owner and the regional manager of Lawrence Properties communicated to employees a company policy of not renting to African Americans.
Under the consent order, which was approved today by the U.S. District Court for the Middle District of Alabama, the defendants will pay $25,000 to the family who was denied housing and $10,000 to the United States as a civil penalty. In addition, the order prohibits the defendants from discriminating in the future against prospective tenants based on race, mandates the implementation of a non-discriminatory rental policy, and requires the defendants and their employees to receive training on the Fair Housing Act.
“No family should be denied housing because of their race,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “We are committed to enforcing the Fair Housing Act to ensure that everyone has the freedom to choose where they live.”
“Housing is a need that everyone shares,” stated George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. “To deny someone their choice of housing based on discrimination should not and will not be tolerated.”
The lawsuit, filed in September 2012, arose as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department. The lawsuit alleged that the defendants violated the Fair Housing Act by refusing to rent a lot at a mobile home park to the HUD complainant and her family due to a discriminatory policy against renting to African Americans. The suit also alleged that, as a result of the discriminatory policy, the defendants engaged in a pattern or practice of discrimination or denied rights protected by the Fair Housing Act to a group of persons.
“No residential community can maintain an exclusion based on race,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Justice Department are committed to taking action anytime a family is subjected to unlawful discrimination.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777.