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8 August 2013
Three Members of Matusiewicz Family Indicted for Federal Stalking Crimes Resulting in Courthouse MurdersRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, Stephen Vogt, Special Agent in Charge, Federal Bureau of Investigation, Baltimore Division, and Nathaniel McQueen, Jr., Colonel, Delaware State Police, announced that a federal grand jury sitting in Delaware returned a four-count indictment on August 6, 2013, charging David T. Matusiewicz, his mother, Lenore Matusiewicz, and his sister, Amy Gonzalez, with one count of conspiring to commit interstate stalking and cyberstalking, in violation of Title 18, United States Code, Sections 371 and 2261A(1)-(2), two counts of interstate stalking, in violation of Title 18, United States Code, Section 2261A(1), and one count of cyberstalking, in violation of Title 18, United States Code, Section 2261A(2).
David T. Matusiewicz’s father, Thomas Matusiewicz, was named as a deceased co-conspirator in the indictment, which was unsealed this morning following the arrests of Lenore Matusiewicz and Amy Gonzalez in McAllen, Texas. David T. Matusiewicz has been in federal custody on a supervised release violation since the February 11, 2013 murders of his ex-wife, Christine Belford, and her friend, Laura Mulford, in the lobby of the New Castle County Courthouse in Wilmington, Delaware.
Pursuant to Title 18, United States Code, Section 2261, if convicted of the most serious charges and aggravating factors contained in the indictment, all three defendants face a maximum sentence of life in prison, a $250,000 fine, and a 5-year term of supervised release. Additionally, because David T. Matusiewicz and Lenore Matusiewicz were subject to “no contact” orders in place during their alleged criminal conduct, they also face a mandatory minimum term of one year in prison if convicted.
According to the indictment and court documents filed in this case and in prior cases, David T. Matusiewicz and Christine Belford were engaged in divorce and child custody proceedings in the Family Court of Delaware in 2007. In August 2007, David T. Matusiewicz and his mother, Lenore Matusiewicz, kidnapped the three young children born of his marriage to Christine Belford and fled to South America. In March 2009, David and Lenore Matusiewicz and the young children were found living in a motor home in Nicaragua. David and Lenore Matusiewicz were arrested and prosecuted in Delaware, and the children were returned to the care of their mother, Christine Belford.
In September 2009, David and Lenore Matusiewicz both pled guilty to crimes relating to their kidnapping of the children. In December 2009, David T. Matusiewicz was sentenced to 48 months in prison to be followed by 5 years of supervision by the United States Probation Office.
In the days following his December 2009 sentencing, David T. Matusiewicz began to orchestrate, from a prison cell, a course of conduct designed to stalk, harass, and intimidate Christine Belford and her children. He enlisted his father, mother, sister and various other persons in this effort, which stretched from December 2009 to February 2013.
The Matusiewicz family began their stalking campaign by broadly disseminating -- by mail, email, websites, Internet postings, and other means -- false allegations that Christine Belford had, among other things, abused her children, suffered from mental illness and had attempted to harm Lenore Matusiewicz. They used a website, posted YouTube videos, and sent letters to Christine Belford’s church and her children’s schools repeating their false and defamatory allegations. Christine Belford and her children were well aware of the Matusiewicz family’s widespread, public dissemination of this false and defamatory information.
In August 2011, the Family Court of the State of Delaware terminated David T. Matusiewicz’s parental rights as to his children with Christine Belford. In doing so, the Family Court rejected David T. Matusiewicz’s assertion that Christine Belford was abusing the children, referring to those allegations as “baseless” and “made up.” Following the completion of the Family Court termination of parental rights proceeding, the Matusiewicz family recruited and used a variety of people to conduct physical and online surveillance of Christine Belford and her children.
After his release from federal custody, David T. Matusiewicz resided in southern Texas first with Amy Gonzalez and then with Lenore and Thomas Matusiewicz. Between September and November 2012, the United States Probation Office twice denied David T. Matusiewicz’s requests for permission to travel from Texas to “New Jersey.” On November 9, 2012, David T. Matusiewicz filed a petition to reduce the monthly child support arrearage payments he owed Christine Belford in the Family Court of the State of Delaware. That petition ultimately resulted in the scheduling of the February 11, 2013 court hearing. Christine Belford was ordered to attend that hearing in the New Castle County Courthouse.
On January 8, 2013, David T. Matusiewicz sought and received permission from the United States Probation Office in Texas to travel to Delaware to attend the child support arrearage hearing scheduled for February 11, 2013. David T. Matusiewicz never informed the probation officer that he intended to travel to Delaware with Thomas and Lenore Matusiewicz.
Between February 4 and 7, 2013, David, Lenore and Thomas Matusiewicz traveled from Texas to the Delaware Valley in two vehicles – a Honda Civic and Honda CRV – later found to contain numerous weapons, ammunition, restraints, an electric shock device, several gas cans, a shovel, and numerous pictures of Christine Belford’s children and residence.
On the morning of February 11, 2013, David and Thomas Matusiewicz drove to a hotel parking garage near the New Castle County Courthouse in the Honda CRV, which contained ammunition, a military style knife, three sets of restraints of progressively smaller sizes, a bullet proof vest, an electric shock device, binoculars, and photographs of Christine Belford’s children and residence. After entering the courthouse lobby at approximately 7:30 a.m., David T. Matusiewicz entered and stayed in the security screening line, while Thomas Matusiewicz moved around the lobby, occasionally approaching and talking to David T. Matusiewicz.
Shortly before 8:00 a.m., David T. Matusiewicz passed through courthouse security screening and walked to another floor of the building. Thomas Matusiewicz remained in the lobby, where he shot Christine Belford multiple times as she entered the courthouse lobby, killing her. He then shot Laura Mulford multiple times as she attempted to flee. After a shootout during which he shot and injured two Capitol Police officers, Thomas Matusiewicz died on the sidewalk of the courthouse of a self-inflicted gunshot wound.
On February 15, 2013, Amy Gonzalez filed a petition for custody of Christine Belford’s three children in the New Castle County Courthouse, which houses the Family Court of the State of Delaware. The enclosed check written to the Family Court was dated February 12, 2013 – the day after the Courthouse murders.
Acting United States Attorney Weiss stated the following: “From 1976 through 2005 over 64,000 people were killed as a result of domestic violence. These staggering numbers contributed to the enactment of the federal stalking statutes that are part of the Violence Against Women’s Act, passed initially in 1994 and reauthorized on multiple occasions, most recently in February of this year. This Office is staunchly committed to the enforcement of federal domestic violence laws. I want to thank the Federal Bureau of Investigation, Delaware State Police and the Delaware Attorney General’s Office for their extraordinary work on this case.”
This case is being investigated by Federal Bureau of Investigation and the Delaware State Police, and is being prosecuted by Assistant United States Attorneys Jamie M. McCall and Edward J. McAndrew
Matusiewicz Indictment Unsealed Redacted 8-8-13.pdf
Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
Three Area Men Sentenced to Lengthy Federal Prison Terms Under Project Safe Neighborhoods for Gun CrimesRead the Press Release
CHICAGO — Three Chicago area men were sentenced to lengthy federal prison terms after being convicted in three separate cases of federal firearms charges. Each case demonstrates the constant efforts of federal agencies – in these three instances, the Bureau of Alcohol, Tobacco, Firearms and Explosives – working together with the Chicago Police Department, to investigate and prosecute firearms-related crimes throughout the city.
NORVELL MOORE, 31, and MICHAEL BOBO, 32, both of Chicago, and ARCADIO HERNANDEZ, 42, of Northlake, were sentenced yesterday in three separate cases in U.S. District Court to 20, 15, and 10 years in federal prison, respectively. All three cases fall under the umbrella of Project Safe Neighborhoods, and were investigated by the Chicago Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. For more information about PSN Chicago, see www.psnchicago.org.
Details of three cases follow:
- U.S. District Judge John Grady sentenced Moore to 20 years in prison for using a firearm during a crime of violence and for being a felon-in-possession of a firearm. Moore was convicted by a jury in July 2012 of illegal possession and use of a firearm on July 14, 2010. Evidence showed that Moore approached a woman who was sitting in her car in the 7200 block of West Foster Avenue in Chicago, placed a firearm to her head, and told her to get out of the car or he would shoot her. When the victim fled from her car, Moore got in and drove away. Chicago police officers, who responded to the carjacking call, quickly found Moore driving on the Kennedy Expressway. Moore sped away, crashed the victim’s car on the Ohio Street ramp, and then ran up the embankment and down a street where he was caught by the police, who later found Moore’s loaded 9mm pistol in the victim’s car. Moore has several prior felony convictions, including robbery, aggravated robbery and gun related offenses. The government was represented by Assistant U.S. Attorney Barry Jonas.
- U.S. District Judge Elaine Bucklo sentenced Bobo as an armed career criminal to 15 years in prison for being a felon-in-possession of a firearm. Bobo pleaded guilty in October 2012 to illegally possessing a firearm on Nov. 16, 2010. Evidence showed that Bobo kept a loaded .32 caliber revolver in the pocket of his jacket, which was hanging in his closet in his residence in the 500 block of North St. Louis Avenue in Chicago. Chicago police officers executed a court-authorized search warrant at Bobo’s residence and recovered the firearm. Bobo has several prior felony convictions for drug trafficking and other narcotics-related offenses. The government was represented by Assistant U.S. Attorney Paul Tzur.
- U.S. District Judge Samuel Der-Yeghiayan sentenced Hernandez to 10 years in prison for being a felon-in-possession of a firearm. Hernandez was convicted by a jury in December 2012 for illegally possessing a firearm on Nov. 23, 2010. Evidence showed that Hernandez was walking in an alley near the 1100 block of North Ridgeway Avenue in Chicago, and when he noticed that Chicago police officers were looking at him, he dropped the red plastic bag that he was carrying. The officers found a loaded .38 caliber revolver among the items inside the bag. Hernandez later admitted to the officers that he had just stolen the gun from drug dealers who had previously beat him up. Hernandez has several prior felony convictions, including residential burglary, criminal sex abuse, and drug trafficking offenses. The government was represented by Assistant U.S. Attorney Derek Owens.
The sentences were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Larry Ford, Special Agent-in-Charge of the Chicago Office of ATF; and Garry McCarthy, Superintendent of the Chicago Police Department.
Ten Overtown Defendants Indicted on Drug Conspiracy and Distribution ChargesRead the Press Release
Indictment Stems from USAO’s Overtown Violence Reduction Partnership
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, Drug Administration Enforcement (DEA), Miami Field Division, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, Manuel Orosa, Chief, City of Miami Police Department, John E. Brooks, Chief, City of Sunrise Police Department, and announce the indictment of ten individuals for their alleged participation in various heroin, cocaine, crack cocaine, and marijuana distribution conspiracies. Some of the defendants are expected to make their initial appearances today at 1:30 p.m. in front of U.S. Magistrate Andrea M. Simonton.
This indictment is, in large part, the result of the Overtown Violence Reduction Partnership, launched by the U.S. Attorney’s Office in October 2011. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in the Overtown neighborhood, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
The 21-count indictment, returned on August 6, 2013, and unsealed today, charges the defendants with conspiracy to possess controlled substances with the intent to distribute, in violation of Title 21, United States Code, Section 846 (Counts 1, 17, 18, and 19); and possession of controlled substances with the intent to distribute, in violation of Title 21, United States Code, Section 841(a)(1) (Counts 2-16, 20, and 21). The indictment charges the following ten individuals:
Mark Brown, 29, of Overtown; Anthony Donnell Mcclain, 29, of Overtown; Omar Abdul Lewis, 39, of Overtown; Oliver Salguero, 24, of Overtown; Gregory Timothy Robinson, 27, of Overtown; Eldridge Raynard White, Jr., 23, of Overtown; Edward Keith Mcclain, 23, of Overtown; Javon Jones, 29, of Overtown; John Jones, Jr., 22, of Overtown; Marcus Marcell Brown, 23, of Overtown.
U.S. Attorney Wifredo A. Ferrer stated, “Today, for the second time in the last eight months, we announce the results of the Overtown Violence Reduction Partnership, which has yet again brought together federal, state, and local law enforcement to combat violent crime in the historic Overtown neighborhood. This indictment effectively removed from Overtown’s streets violent and notorious drug traffickers that had been entrenched in that area. Federal law provides stiff penalties for narcotics traffickers and career offenders. Through the Overtown Violence Reduction Partnership, we stand committed to reducing street violence and narcotics trafficking, with the goal of helping to make our communities safer.”
DEA Special Agent in Charge Mark R. Trouville stated, “Whether you live in the suburbs or the inner city, residents should be able to walk the streets and go about their lives without fear or exposure to drugs and violence. These indictments stand as a warning to those individuals whose greed drives them to pollute our streets with poison and bully the community. This collaborative effort between law enforcement and community leaders is a step in the right direction for a neighborhood that is considered one the most dangerous in Miami.”
ATF Special Agent in Charge Hugo Barrera stated, “The citizens of the Overtown can breathe a little easier tonight. Violence should never become the order of the day. The message is clear that if you choose to use a firearm to inflict violence on the innocent people of this or any other community in South Florida, you will be dealt with swiftly. Together with this seamless integration of federal, state and local law enforcement we can ensure solid investigations, successful prosecutions and long stays in prison for these predators.”
“This indictment is part of our continuing efforts to help the Overtown Community, by ridding the streets of violent crime, illegal drugs and the ill effects that they have,” said Miami Police Chief Manuel Orosa. “We will continue to partner with members of the community and our partners in law enforcement at all levels to work for the betterment of Overtown and all of Miami.”
Chief John Brook of the Sunrise Police Department stated, “Acknowledging that crime in the 21st century knows no boundaries, the Sunrise Police Department is always willing to assist our partners in the Federal Government in combating violent crime and drug trafficking across South Florida. We take pride in our role in the indictments obtained by this partnership.”
This year-long, multi-agency investigation into Mark Brown’s alleged drug trafficking network was the result of the unparalleled, cooperative, investigative efforts of five different law enforcement agencies, including the DEA, the FBI, ATF, the City of Miami Police Department, and the City of Sunrise Police Department. These separate investigations were merged into a single operation under the auspices of the USAO’s Overtown Violence Reduction Partnership, resulting in today’s charges.
If convicted of the charges, the defendants face a possible statutory maximum sentence of up to forty years in prison.
Mr. Ferrer commended the investigative efforts of the DEA, FBI, ATF, City of Miami Police Department, and the City of Sunrise Police Department. This case is being prosecuted by Assistant U.S. Attorney Roy Altman.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Ten Charged in Area Identity Theft RingRead the Press Release
ALEXANDRIA, Va. – Ten individuals have been charged in Alexandria for their alleged involvement in a large-scale identity theft ring operating in the Washington, D.C. metropolitan area since at least January 2012. The seven individuals arrested were:
Janero Blalock, 31, of Fort Washington, Maryland; Christopher Bush, 39, of District Heights, Maryland; Adrienne Pritchett, 42, of District Heights, Maryland; Segale Battle, 30, of Washington, D.C.; Jamille Ferguson, 31, of New York, New York, and Virginia; Tekia Thomas, 20, of Alexandria, Virginia; and
Elizabeth Monika Hunter, 19, of Fredericksburg, Virginia.Two additional defendants were already in state custody when federal charges were filed: Jennifer Scruggs, 44, of Hyattsville, Maryland; and Rungnatee Pearson, 45. An arrest warrant was issued for the remaining defendant, Kevin Middleton, 32, of Charleston, South Carolina.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kathy A. Michalko, Special Agent in Charge for the United States Secret Service’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after a number of the defendants made their initial appearances before U.S. Magistrate Judge John F. Anderson in Alexandria, Va.
According to the 16-count indictment and a related criminal complaint, Blalock and Bush allegedly recruited women to steal personal information, such as social security numbers, addresses, and dates of birth, from their employers, which included a local dental practice, insurer, and rental car company. To date, over 600 potential victims have been identified, including many overseas employees of the U.S. Department of State, the U.S. Department of Defense, and the U.S. Agency for International Development. Members of the ring are alleged to have used the stolen identity information to manufacture fraudulent identification documents bearing their photographs and victims’ personal information, and would then use those fraudulent identification documents and victims’ social security numbers to open credit lines under victims’ names. Through this scheme, members of the ring were allegedly able to obtain merchandise from various retailers, including Macy’s, Jared the Galleria of Jewelry, and Kay Jewelers. To date, law enforcement has recovered 284 suspected fraudulent identification documents bearing victim information and ring members’ photographs.
The indictment charges the following offenses: Conspiracy to commit bank fraud, access device fraud, and identity theft, which is punishable by a maximum term of imprisonment of five years; bank fraud, which is punishable by a maximum term of imprisonment of thirty years; access device fraud, which is punishable by a maximum term of imprisonment of ten years; identity theft, which is punishable by a maximum term of imprisonment of fifteen years; and aggravated identity theft, which is punishable by a mandatory term of imprisonment of two years in addition to any other sentence.
The investigation was conducted by the United States Secret Service and the Fairfax County Police Department, with assistance from the City of Fairfax Police Department, Prince George’s County W.A.V.E. (Washington Area Vehicle Enforcement), Prince George’s County Financial Crimes Section, the Metropolitan Washington Airport Authority, Delaware State Police, Maryland State Police, D.C. Metropolitan Police Department, U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Agriculture, and the Office of the Inspector General of the U.S. Department of State.
Assistant United States Attorney Lindsay A. Kelly and Special Assistant United States Attorney Peter V. Roman are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Tampa Area Business Executive Sentenced to Ten Years in Prison for Tax CrimesRead the Press Release
Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington today sentenced John D. Stanton, III (64, Tampa) to 10 years in federal prison for attempting to interfere with the Internal Revenue laws and failing to file income tax returns. The court also ordered Stanton to pay restitution to the Internal Revenue Service in the amount of $37,816,875.00. Stanton was found guilty on December 17, 2012 by a federal jury.
According to evidence presented at trial, Stanton was the former president of Florida Engineered Construction Products Corporation ("FECP"), more commonly known as Cast Crete Corporation. FECP/Cast Crete manufactured and sold concrete construction products. As president of the company, Stanton interfered with the administration of the tax laws by impeding an Internal Revenue Service ("IRS") audit of the company, creating and backdating two fraudulent demand promissory notes totaling $500,000,000, causing false Forms 1099 to be filed with the IRS, failing to file corporate tax returns on behalf of the company, and other acts of obstruction and concealment. During approximately 2004 through 2008, the company made well over $100 million and failed to file a single corporate income tax return.
Additional trial evidence showed that Stanton failed to file corporate tax returns on behalf of Denouement Strategies, Inc., for 2006 and 2007. Stanton controlled Denouement Strategies and transferred over $43 million worth of FECP/Cast Crete profits into the Denouement Strategies bank accounts in 2005, 2006, and 2007. Stanton also failed to file personal income tax returns for 2005 and 2007.
“Today the Internal Revenue Service continued its core mission to protect the integrity of the tax system as John D. Stanton III’s was sentenced to 10 years in prison following a trial and guilty verdict earlier this year,” stated James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service-Criminal Investigation. “Stanton used his education and skills as a MBA and CPA to purposefully impede the Internal Revenue Service, depriving the U.S. government and its citizens of in excess of $60 million in tax revenue and now he, and those close to him, are paying a high price for this breach of trust. Violations of Internal Revenue laws are not victimless crimes and this sentence should serve as a reminder to all Americans of the consequences of purposefully flouting their civic responsibilities and the Internal Revenue laws.”
This case was investigated by Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorneys Robert Monk and Matthew Mueller.
Statement on the February 2, 2012, Shooting of 18-Year-Old Ramarley GrahamRead the Press Release
“Consistent with our Office’s practice in cases of this kind, we will review all of the available evidence with respect to the shooting of 18-year-old Ramarley Graham on February 2, 2012, in the Bronx, New York, including the evidence collected during the state’s investigation, to determine whether there were any violations of the federal criminal civil rights laws,” said Jerika Richardson, a spokeswoman for the U.S. Attorney's Office for the Southern District of New York.
Slidell Woman, Keishandra Houston, Sentenced for Wire Fraud in Aftermath of Bp Oil SpillRead the Press Release
KEISHANDRA HOUSTON, age 36, of Slidell, Louisiana, was sentenced today by U. S. District Court Judge Carl J. Barbier, to one year of probation for committing wire fraud relating to an application for financial assistance in the aftermath of the Deepwater Horizon oil spill, announced U. S. Attorney Dana Boente. HOUSTON was also ordered to pay BP America restitution in the amount of $5,900.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, in September 2010, HOUSTON falsely represented to the GCCF that she worked as a cook at a seafood restaurant and suffered financially due to lost employment as a result of the Deepwater Horizon incident. To support this fraudulent claim, HOUSTON wired to the GCCF false earnings statements which incorrectly indicated that she was employed by a seafood restaurant. In response to the claim, the GCCF paid HOUSTON $5,900.
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 the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Chandra Menon.
Shipping Corporation and Two Engineers Convicted in ‘Magic Pipe’ Case in Norfolk, Va.Read the Press Release
Diana Shipping Services S.A., a Panamanian corporation headquartered in Greece, Ioannis Prokakis and Antonios Boumpoutelos, both citizens of Greece, were convicted today after an 12-day bench trial on charges related to the illegal discharge of waste oil and oil-contaminated waste water from the M/V Thetis, a cargo vessel operated by Diana Shipping Services, announced Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region, and David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program for the Middle Atlantic States.
All the defendants were convicted of conspiracy, knowing failure to fully maintain an oil record book, falsification of records and concealing tangible objects in a federal investigation. In addition, Prokakis was also convicted of obstruction of justice for ordering crewmembers to lie to U.S. Coast Guard inspectors on board the ship. The guilty verdicts were handed down by U.S. District Judge Mark S. Davis of the Eastern District of Virginia.
“The pollution of our oceans, the falsification of environmental records, and lying to the U.S. Coast Guard are serious crimes,” said Acting Assistant Attorney General Dreher. “Companies and individuals that intentionally attempt to cover up these crimes and obstruct U.S. Coast Guard investigations, will be prosecuted to the fullest extent of the law.”
“These defendants not only violated the law when they illegally discharged contaminated waste into our waters, but then conspired to cover up their nefarious conduct,” said United States Attorney Neil H. MacBride. “Those who choose to continue to violate the law, even after being confronted, will find themselves in the same, serious trouble as these defendants.”
“The Coast Guard protects not only the environment of our nation, but the world’s,” said Capt. John Little, Commander of Coast Guard Sector Hampton Roads. “Our Port State Control Teams board thousands of vessels annually to ensure compliance with U.S. law, regulations, and international treaties on pollution prevention. This case affirms the strength of our partnerships with the Department of Justice, the U.S. Attorney’s Office and our Coast Guard Investigative Service in holding accountable those vessel operators who deliberately discharge oil and falsify ship records.”
“The oceans must be protected from shipping companies that cut corners and dump waste improperly,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program for the Middle Atlantic States. “The defendants conspired to discharge oily waste from the M/V Thetis into the open water, falsified the ship’s record books and attempted to thwart the investigation. Today's guilty verdict should send a clear message that our collaborative efforts will lead to the vigorous prosecution of those who despoil our oceans and violate our nation’s environmental laws.”
Diana Shipping Services, S.A. faces a maximum fine of $5.5 million and five years of probation. Prokakis and Boumpoutelos face a maximum sentence of five years for the conspiracy conviction, six years per failure to maintain an oil record book conviction, and 20 years per falsification of record conviction. Prokakis faces an additional five year sentence for obstruction of justice. All three defendants will be sentenced on Nov. 8, 2013.
Diana Shipping Services S.A., Prokakis, and Boumpoutelos, were indicted on May 22, 2013, in an 11-count superseding indictment alleging the illegal discharging of waste oil and oil-contaminated waste water in violation of the Act to Prevent Pollution from Ships. In September 2012, crewmembers of the M/V Thetis, a cargo vessel operated by Diana Shipping Services, reported that the vessel was discharging its bilge waste and sludge illegally by various means, including a “magic pipe” that bypassed the oily water separator. Coast Guard inspectors boarded the vessel when it entered port in Norfolk and discovered the “magic pipe” and that the oily water separator was non-functioning. The inspectors were also presented with an oil record book that contained false entries made by the ship’s Chief Engineer, Ioannis Prokakis and the Second Engineer Antonios Boumpoutelos. During the inspection, Prokakis lied to inspectors about the “magic pipe” and told other members of the engineering crew to not disclose its existence to the Coast Guard inspectors.
This case was investigated by the Coast Guard Investigative Service and the EPA’s Criminal Investigations Division. Assistant U.S. Attorney Joseph L. Kosky of the Eastern District of Virginia and Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting the case on behalf of the United States.
Sex Offender Convicted of Failing to RegisterRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Joseph P. DeMarco, 48, was convicted today of failing to register as a sex offender. DeMarco was convicted by a jury in the United States District Court for the Southern District of Alabama following a one-day trial. According to the evidence at trial, DeMarco was required to register as a sex offender following a 2003 conviction for Sex Abuse 1st Degree involving an eight-year old victim. Testimony at trial showed that DeMarco was employed in Louisiana and moved from his registered address in Mobile County, but failed to register as required in Louisiana or update his registration in Alabama.
DeMarco is scheduled to be sentenced December 6, 2013 by United States District Judge Kristi K. DuBose. He faces up to ten years in prison and a fine of up to $250,000, and up to three years of supervised release following his release from prison.
The case was investigated by the United States Marshals Service and the Mobile County Sheriff’s Office. Assistant United States Attorney Maria Murphy handled the prosecution on behalf of the United States.
Sentences for August 6 – 8, 2013 Northern Arapaho Men Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney Christopher A. Crofts announced that on August 8, 2013, 20-year old Shawn Antelope, Jr., an enrolled Northern Arapaho Tribal member, was sentenced by United States District Court Judge Alan B. Johnson to 36 months imprisonment, three years of supervised release, and a $100.00 special assessment. Mr. Antelope, Jr. previously pled guilty to the offense of assault resulting in serious bodily injury. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
U.S. Attorney Christopher A. Crofts announced that on August 6, 2013, 40-year old Leo Lone Bear III, an enrolled Northern Arapaho Tribal member, was sentenced by United States District Court Judge Scott W. Skavdahl to 168 months imprisonment, a life time period of supervised release, a $400.00 fine, and a $100.00 special assessment. Mr. Lone Bear previously pled guilty to the offense of sexual abuse of a minor. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
U.S. Attorney Christopher A. Crofts announced that on August 6, 2013, 23-year-old Bryson Brown, and enrolled Northern Arapaho Tribal member, was sentenced by United States District Court Judge Scott W. Skavdahl to 96 months imprisonment, five years of supervised release, restitution in the amount of $440.87 and a $200.00 special assessment. The charges stemmed from an incident which occurred on February 15, 2013, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with assistance from the Bureau of Indian Affairs, and members of the Fremont County Sheriff's Office and the Riverton Police Department.
Second Member of Hacking Group Sentenced to over Year in Prison for Stealing Customer Information from Sony Pictures ComputersRead the Press Release
LOS ANGELES – A member of the LulzSec hacking group was sentenced this morning to one year and one day in federal prison for participating in an extensive computer attack that compromised the computer systems of Sony Pictures Entertainment and resulted in personal information of more than 138,000 people being posted on the Internet.
Raynaldo Rivera, known by the online moniker “neuron,” of Chandler, Arizona, 21, was sentenced by United States District Judge John A. Kronstadt. In addition to the prison sentence, Judge Kronstadt ordered Rivera to serve 13 months of home detention, to perform 1,000 hours of community service and to pay $605, 663 in restitution.
Rivera pleaded guilty last October to conspiring to cause damage to a protected computer after participating in the attack on Sony Pictures in 2011.
Lulzsec’s goal in the attacks on Sony Pictures and other corporate and government entities, according to a court document, was to see the “raw, uninterrupted, chaotic thrill of entertainment and anarchy” and to provide stolen personal information “so that equally evil people can entertain us with what they do with it.”
Another member of LulzSec, Cody Andrew Kretsinger, who used the online moniker “recursion,” was sentenced in April to one year and one day in federal prison. In addition to the prison term, Judge Kronstadt ordered Kretsinger to serve one year of home detention following the completion of his prison sentence, to perform 1,000 hours of community service, and to pay $605,663 in restitution.
Rivera and Kretsinger studied together at the University of Advancing Technology in Tempe, Arizona. Kretsinger first joined LulzSec, and then he recruited Rivera to join the group, prosecutors said.
Rivera, Kretsinger and others involved in the intrusion obtained confidential information from Sony Pictures’ computer systems by using an “SQL injection” attack against Sony Pictures’ website. The attackers distributed the stolen data on the Internet, information that included names, addresses, phone numbers and e-mail addresses for tens of thousands of Sony customers.
LulzSec is known for its affiliation with “Anonymous,” which is a loose collective of computer hackers and others around the world who conduct cyber attacks and disseminate confidential information stolen from victims’ computers. In 2011, LulzSec engaged in “a two-month rampage of cyber attacks against various corporate and government entities in the United States and the United Kingdom,” according to a sentence memorandum filed by prosecutors.
This investigation into the attack on Sony Pictures’ computer systems was conducted by the Electronic Crimes Task Force (ECTF) in Los Angeles. The ECTF is comprised of agents and officers from the FBI, the United States Secret Service, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the United States Attorney’s Office, the Los Angeles County District Attorney’s Office and the California Highway Patrol.
Release No. 13-102
Scam Alert: Caller Using Ruse Involving Federal Jury Duty in Attempt to Victimize UtahnsRead the Press Release
SALT LAKE CITY – You answer your phone this week to hear a caller tell you that you failed to appear on a summons for jury duty in federal court in Salt Lake City. The caller, who identifies himself using a variation of the name of the clerk of the court, tells you that a warrant will be issued for your arrest.
The caller, who is talking to you late in the afternoon, says you have until 5 p.m. to put more than $400 on a MoneyPak card (a reloadable debit card available at many retail stores) and call him back with the MoneyPak serial number to avoid being arrested.
Frightened at the thought of officers putting handcuffs on you at work, you get the MoneyPak and call the person back to give him the serial number. Before you realize what has happened, your money and the scammer are gone into a world of untraceable deception.
Utahns are being targeted by this scheme this week .Law enforcement agencies and other consumer protection groups say there has been a significant increase in schemes where fraudsters try to collect payments using a MoneyPak. When the serial number of the card is given to someone or falls into the hands of a scammer, they have instant access to your money and can drain the money from your card. Unlike a credit card, the transaction is untraceable and cannot be reversed or challenged. The best advice, consumer advocates say, is to never give a MoneyPak serial number to anyone you don’t know.
U.S. District Court officials say none of the individuals who reported receiving these calls were actually called for jury duty, something these individuals could have discovered had they called the court when they received the initial call, as some individuals have done.
Individuals who are called for jury duty receive a summons to appear in the mail or by e-mail. If they fail to appear for jury duty, a court official will contact them to determine why they failed to appear. Individuals are never fined for non-appearance without receiving an order from the court directing them to appear before the judge, the opportunity to explain their non-appearance to the judge, and a written order from the court setting the amount of the fine. Most importantly, payment of a fine is never demanded by a telephone call.
U.S. Attorney David Barlow encourages Utahns to be on guard for fraud schemes involving the use of MoneyPaks. “Don’t give the serial number to someone you don’t know and to anyone calling you. Our best advice is to hang up and call the agency or business yourself. As we are seeing with the individuals who were solicited as a part of the jury-duty scheme, those who called the court were able to quickly discover that the call was fraudulent. While there are legitimate uses for these cards, if you are not cautious you end up giving your money to fraudsters.”
"Scammers are constantly dreaming up new ways to take your money,” warned Francine A. Giani, Executive Director of the Utah Department of Commerce, "Always be very cautious if someone demands you pay a fine or a fee by wire transfer or by placing funds on a MoneyPak debit card. If you are unsure, check with the brick and mortar location of the government agency by phone or in person before responding to any financial demands made over the phone."
Rochester Man Pleads Guilty to Attempting to Produce Child PornographyRead the Press Release
Defendant Attempted to Produce Sexually Explicit Videos of a Twelve-Year-Old Girl
ALBANY, NEW YORK — JASON FRANK, age 27, of Rochester, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of attempted production of child pornography, announced United States Attorney Richard S. Hartunian and Joseph D’Amico, Superintendent of the New York State Police. FRANK faces a mandatory minimum sentence of at least fifteen years of imprisonment and up to a maximum sentence of thirty years of imprisonment. FRANK was detained pending his sentencing.
Pursuant to a written plea agreement, FRANK admitted that in February 2013 he began chatting online with what he believed was a twelve-year-old girl located in Albany, New York. The girl was actually an undercover investigator with the New York State Police. The online chat sessions quickly became sexual and over a span of approximately two months FRANK sent the girl still images and videos of child pornography in an effort to convince her to meet with him at a Syracuse hotel in order to film a sexual encounter with FRANK. On April 9, 2013, FRANK arrived at a hotel in Syracuse expecting to meet the twelve-year-old girl and engage in sexual acts with the girl. Instead, FRANK was arrested by the New York State Police. At the time of FRANK’s arrest, he was in possession of a digital camera with video recording capabilities and a thumb drive that contained still images and video of child pornography.
Sentencing is scheduled for November 27, 2013, at 9:00 a.m. in Albany, New York. This case was investigated by the New York State Police.
Rapid City Woman Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Child Abuse.
Crystal Reeder, a/k/a Crystal Taylor, age 29, was indicted on June 12, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 5, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to incidents that allegedly occurred in May of 2012 in Isabel, South Dakota, when Reeder allegedly committed child abuse upon the victim.
The charge is merely an accusation and Reeder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Reeder was released on conditions pending trial. A trial date has been set for September 24, 2013.Port St. Lucie Securities Broker Charged in Wire Fraud Embezzlement SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Addy Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), announce the indictment of Paul Elvidge, Jr., 53, of Port St. Lucie, for embezzling more than $1,000,000 from client investment accounts while acting as a securities broker for Cape Securities, Inc. and Seacoast Investor Services, Inc.
The indictment charges Elvidge Jr. with thirty-six counts of wire fraud and six counts of aggravated identity theft. Elvidge Jr. had a first appearance in federal court in Fort Pierce on August 8, 2013 before U.S. Magistrate Judge Frank Lynch, Jr. If convicted, he faces a maximum statutory sentence of up to twenty years in prison on each of the wire fraud counts, and a consecutive penalty of two years on the aggravated identity theft counts.
According to the indictment, Elvidge Jr. managed and operated Seacoast Investor Services, Inc., which later became Cape Securities, Inc., as a brokerage and investment firm in Port St. Lucie. As a registered representative and investment advisor, Elvidge, Jr. had access to clients’ brokerage accounts and was able to direct wire transfers from these brokerage accounts. From July 2010 to October 2012, Elvidge Jr. embezzled approximately $1,113,594 from client accounts by preparing fraudulent forms and forging account holders’ signatures. Elvidge Jr. used the fraudulently obtained monies to pay for personal and business expenses, and to fund his personal day-trading activities.
Mr. Ferrer commended the investigative efforts of the FBI and FDLE. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
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.
Pontchatoula Man, Anthony Smith, Sentenced for Drug TraffickingRead the Press Release
ANTHONY SMITH, age 50, a resident of Pontchatoula, Louisiana, was sentenced today by U. S. District Judge Jane Triche Milazzo to 183 months (15.25 years) imprisonment for his role in a conspiracy involving the trafficking of more than five kilograms of cocaine from the Houston, Texas area, to Bogalusa, Louisiana, announced U. S Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Milazzo imposed 10 years of supervised release following the term of imprisonment. During the 10-year term the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
On December 12, 2011, SMITH previously entered a guilty plea admitting to the actions he took during the conspiracy. SMITH drove to Texas on several occasions with and on behalf of co-defendant DEREK MOSS for the purposes of obtaining cocaine from LUIS COLON, a source in that area. Agents observed SMITH meet with COLON on one occasion. On a later occasion, agents followed SMITH, MOSS, and TODD MARK back from Texas to the Laplace area. SMITH was stopped as he traveled toward Pontchatoula on Interstate 55. MARK and MOSS were arrested later that day following a car chase through Metairie, which ended on the Mississippi River levee, where MARK and MOSS attempted to discard nearly four kilograms of cocaine.
After sentencing, SMITH was remanded to the custody of the United States Marshal’s Service to begin his term of imprisonment.
This case was investigated by Special Agents of the Drug Enforcement Administration, Louisiana State Police, and Bogalusa Police Department. The case was prosecuted by Assistant United States Attorney Kevin G. Boitmann.
Ponchatoula Home Elevation Company and Owner, Christopher Benson, Sentenced for Structuring Financial TransactionsRead the Press Release
LOUISIANA HOME ELEVATIONS, L.L.C., a Ponchatoula-based home elevation and shoring company, and its owner, CHRISTOPHER BENSON, age 32, a resident of Ponchatoula, was sentenced today in federal court by U. S. District Judge Carl J. Barbier, announced U.S. Attorney Dana Boente. BENSON was sentenced to 21 months imprisonment. In addition to the term of imprisonment, Judge Barbier ordered that BENSON be placed on one year of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release. LOUISIANA HOME ELEVATIONS was sentenced to five years probation.
According to court documents, on December 20, 2012, LOUISIANA HOME ELEVATIONS and BENSON pled guilty to their roles in a scheme that occurred in March 2010 whereby they issued two checks each in amounts below $10,000, but together totaling in excess of $10,000, from the company’s bank account to an individual named Adolfo Hernandez, who then cashed the checks on separate days at a Central Progressive Bank branch. LOUISIANA HOME ELEVATIONS and BENSON assisted Hernandez to engage in these structured currency transactions knowing of the bank’s obligation to report transactions in excess of $10,000, and the defendants intended to avoid those reporting requirements. Hernandez pled guilty in May 2012 to conspiracy to harbor illegal aliens, a scheme wherein he used the funds paid to him by LOUISIANA HOME ELEVATIONS and BENSON to pay illegal aliens who worked at LOUISIANA HOME ELEVATIONS worksites.
The case was investigated by U. S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations and the Internal Revenue Service (IRS) - Criminal Investigation Division. The case was prosecuted by Special Assistant U. S. Attorney Robert Weir and Assistant U. S. Attorney Michael McMahon.
Polk County Man Convicted of Federal Firearms ChargesRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Alexis Antoine Davis, a/k/a "Big Mike," (32, Polk County) guilty of three counts of being a felon in possession of firearms. Davis faces a maximum penalty of life in federal prison. His sentencing hearing will be scheduled at a later date. Davis was indicted on January 8, 2013.
According to evidence presented at trial, on August 30, 2012, September 4, 2012, and September 5, 2012, Davis possessed and sold five firearms to undercover agents, as part of an ongoing undercover operation in Polk County. At the time the transactions took place, Davis was a convicted felon. As a convicted felon, Davis is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorneys Joseph W. Swanson, Stacie B. Harris, and Adam M. Saltzman.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, 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.
Pharmacist Pleads Guilty to Money Laundering Scheme Tied to Illegal Internet PharmacyRead the Press Release
PHILADELPHIA – Eric Vern Fox, 45, a pharmacist living in Berwyn, Pennsylvania, pleaded guilty today to a money laundering conspiracy, in violation of federal money laundering laws. These charges were transferred from the Eastern District of Texas for guilty plea and sentencing. Between June 2002 and September 2007, Fox owned and operated two compounding pharmacies in this district: the Medicine Shoppe, located at 578 Lancaster Avenue, Berwyn, PA, and Compounding Rx Apothecary, located at 81 Lancaster Avenue, Store #4, Malvern, PA.
The indictment alleges that from June 2002 until September 2007, Fox agreed with the owners and operators of an illegal internet pharmacy, the Madison Pain Clinic, located in Texas, to compound millions of hydrocodone pills that the Madison Pain Clinic sold to internet customers under fraudulent “prescriptions,” outside the usual course of professional practice and not for a legitimate medical purpose.
The money laundering charge, to which Fox pleaded guilty, alleges that between June 2002 and September 2007, Fox was paid by the Madison Pain Clinic for the hydrocodone pills that the clinic sold to its internet customers, and agreed to launder the proceeds of this illegal activity totaling at least $4.5 million. The plea agreement calls for Fox to receive an agreed-upon sentence of 12 months and a day in prison, followed by three years of supervised release. The plea agreement also requires Fox to forfeit the sum of $2 million and pay an assessment of $100. U.S. District Court Judge R. Barclay Surrick scheduled a sentencing hearing for November 8, 2013.
The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. In this district it is being prosecuted by Assistant United States Attorney Mary E. Crawley.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pharmacist Pleads Guilty to Money Laundering Conspiracy in Connection with Compounding Millions of Hydrocodone Pills for Illegal Internet PharmacyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN – A pharmacist has pleaded guilty in Philadelphia, Pennsylvania to charges originating in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Eric Vern Fox, 45, a pharmacist living in Berwyn, Pennsylvania, pleaded guilty to money laundering conspiracy, in violation of federal money laundering laws, announced United States Attorney Zane David Memeger. These charges were transferred from the Eastern District of Texas for guilty plea and sentencing. According to the charges, from June 2002 until September 2007, Fox owned and operated two compounding pharmacies in this district: the Medicine Shoppe, located at 578 Lancaster Avenue, Berwyn, PA, and Compounding Rx Apothecary, located at 81 Lancaster Avenue, Store #4, Malvern, PA. The indictment alleges that from June 2002 until September 2007, Fox agreed with the owners and operators of an illegal internet pharmacy, the Madison Pain Clinic, located in Texas, to compound millions of hydrocodone pills that the Madison Pain Clinic sold to internet customers under fraudulent “prescriptions,” outside the usual course of professional practice and not for a legitimate medical purpose.
The money laundering charge to which Fox pleaded guilty alleges that between June 2002 and September 2007, Fox was paid by the Madison Pain Clinic for the hydrocodone pills that the clinic sold to its internet customers, and agreed to launder the proceeds of this illegal activity totaling at least $4,500,000. The plea agreement calls for Fox to receive an agreed-upon sentence of twelve months and a day in prison, followed by three years of supervised release. The plea agreement also requires Fox to forfeit the sum of $2,000,000 and pay an assessment of $100. At the hearing today, the Honorable R. Barclay Surrick accepted the plea agreement, scheduling sentencing to take place on November 8, 2013.
The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigation Division. It was prosecuted by Assistant United States Attorney Steven Buys in the Eastern District of Texas. In the Eastern District of Pennsylvania, the case is being prosecuted by Assistant United States Attorney Mary E. Crawley.
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106Ocean County, N.J., Man Sentenced to 37 Months in Prison for Possessing Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, N.J. man, was sentenced today to 37 months in prison for possessing more than 600 images of child sexual abuse and using his computer to send and store them, U.S. Attorney Paul J. Fishman announced.Christopher Seufert, 32, of Brick, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of possession of child pornography. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Seufert admitted he possessed more than 600 images of child pornography on a computer located in his residence in March 2010. He admitted using his America Online email account to send some of the images to himself and store them. Seufert acknowledged that among the images he possessed were images which depicted minors engaging in sexually explicit conduct with other minors and adults, including material portraying sadistic or masochistic conduct or other depictions of violence. The criminal images were brought to the attention of law enforcement by a tip from America Online.
In addition to the prison term, Judge Cooper sentenced Seufert to five years of supervised release with computer monitoring and restricted contact with minors. He must also register as a sex offender.
U.S. Attorney Fishman credited special agents of the Newark FBI’s Child Exploitation Taskforce and credit, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and the N.J. State Police Internet Crimes Against Children Taskforce, under the direction of Col. Rick Fuentes, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys John Clabby and Sarah Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.Defense Counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
New Orleans Woman, Clarissa O. Morgan, Pleads Guilty to Mail FraudRead the Press Release
CLARISSA O. MORGAN, age 27, a resident of New Orleans, Louisiana, pled guilty today in federal court before U. S. District Judge Carl J. Barbier, to a one-count indictment charging her with mail fraud, announced U. S. Attorney Dana Boente.
According to court documents, MORGAN submitted a fraudulent claim to the Gulf Coast Claims Facility on September 27, 2010. In her claim application she stated that she lost income from her job at Queen and Crescent Hotel in New Orleans as a result of the oil spill. In support of her claim, MORGAN submitted a fraudulent letter from the hotel stating that her work hours had been cut due to lack of business. Shortly after submitting the claim form, the Gulf Coast Claims Facility mailed two payments totaling $10,300 to MORGAN’S home in New Orleans. After the payments were issued, an investigator with the Gulf Coast Claims Facility contacted the Queen and Crescent Hotel to discuss MORGAN’S work history. The Director of Human Resources stated that the signer of the fraudulent letter submitted by MORGAN in support of her claim was not, nor had ever been, employed at the hotel; and further, that MORGAN did not become laid off nor have her hours cut because of the oil spill. On September 26, 2012, an agent with the FBI interviewed MORGAN about the matter. MORGAN admitted that the claim she filed with the Gulf Coast Claims Facility was fraudulent.
MORGAN faces a maximum term of imprisonment of 20 years, a fine of up to $250,000, and three years of supervised release following imprisonment. Sentencing is scheduled for November 14, 2013, at 9:30 am.
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 special agents with the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Spiro Latsis.
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New Orleans Woman, Alicia Wells, Sentenced for Defrauding Gulf Coast Claims FacilityRead the Press Release
ALICIA WELLS, age 29, of New Orleans, Louisiana, was sentenced today in federal court by U. S. District Judge Carl J. Barbier to 4 years probation for mail fraud relating to a fraudulent application she made to the Gulf Coast Claims Facility (GCCF) for financial assistance in the aftermath of the Deepwater Horizon oil spill in the Gulf of Mexico, announced U. S. Attorney Dana J. Boente. In addition to the term of probation, Judge Barbier ordered the defendant to pay restitution in the amount of $13,200 to BP America.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. On September 25, 2010, WELLS applied for disaster assistance funds, representing that she was working at Center Plate before the oil spill. However, WELLS had never worked for Center Plate and that she submitted false documentation to establish that she was employed at Center Plate and to establish her false loss earnings. Based on WELLS’ fraudulent application, the GCCF issued three checks totaling $13,200 to which WELLS was not entitled.
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 the United States Secret Service and prosecuted by Assistant United States Attorney Loan “Mimi” Nguyen.
Nevada Man Pleads Guilty to Filing a False Federal Income Tax ReturnRead the Press Release
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally and U.S. Attorney Daniel G. Bogden for the District of Nevada today announced that Arthur Risser Jr., of Las Vegas, pleaded guilty to filing a false personal tax return for 2008.
According to the plea agreement, Risser earned over $100,000 each year during 2006 through 2008 while employed as a large engine mechanic from 2006 to 2008, at Aggregate Industries Southern Nevada Paving Inc. and, during 2006 and 2007, at Las Vegas Paving Corporation. Risser intentionally understated his wages and listed inflated amounts for withheld taxes to increase his refund on his individual income tax returns for 2006, 2007 and 2008. According to the indictment, Risser earned over $300,000 from 2006 to 2008 but only reported $54,472 of income on his federal tax returns for those three years.
Risser faces a potential maximum prison term of three years and a maximum fine of $250,000. His sentencing is scheduled for Nov. 13, 2013, before U.S. District Judge Andrew P. Gordon.
Assistant Attorney General Kathryn Keneally and U.S. Attorney Daniel G. Bogden thanked special agents of the Internal Revenue Service-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Nicholas Dickinson and Tax Division Trial Attorney Sonia M. Owens, who prosecuted the case.
NYPD Officer Pleads Guilty in Manhattan Federal Court to Tax Fraud and Identity TheftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JONATHAN WALLY, a Police Officer with the New York City Police Department (“NYPD”), pled guilty today in Manhattan federal to tax fraud and identity theft offenses related to his preparation and filing of false and fraudulent U.S. individual income tax returns (“tax returns”) on behalf of himself and others. WALLY pled guilty before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “Jonathan Wally spent his off-duty time breaking the law he enforced as a police officer. With his guilty plea today, he will now pay the price for his crimes of identity theft and tax fraud, including the return of all the money he swindled from the IRS.”
According to the court filings and statements made today in court:
WALLY has been employed by the NYPD as a Police Officer assigned to the 34th precinct located in the Washington Heights/Inwood section of New York, New York since 2003. Since at least 2008, he also served as a registered tax preparer with the Internal Revenue Service (“IRS”). Although the NYPD requires its Police Officers to obtain written authorization to engage in off-duty employment, WALLY never sought or obtained such authorization to work as a tax preparer.
From 2010 through April 2012, WALLY defrauded the IRS by causing it to issue tax refunds to other individuals based on fraudulent and false tax returns prepared and filed by WALLY on behalf of those taxpayers. Among other things, the tax returns claimed deductions for false dependents. During that time period and continuing through January 2013, WALLY further defrauded the IRS by preparing and filing fraudulent and false tax returns on his own behalf that claimed false dependents and failed to declare certain income, causing him to receive tax refunds to which he was not entitled.
In connection with the fraudulent tax return scheme, WALLY obtained the personal identifying information and Social Security cards of children, which he used to declare the children as dependents on false and fraudulent tax returns he prepared and filed on behalf of others and himself.
As a result of the false and fraudulent tax returns prepared and filed by WALLY on behalf of other individual taxpayers, the IRS paid them at least $146,818 in fraudulent tax refunds. As a result of the false and fraudulent tax returns prepared and filed by WALLY on his own behalf, and his failure to declare the income he earned as a tax preparer, the IRS paid WALLY at least $48,990 in fraudulent tax refunds. In total, WALLY’s tax scheme defrauded the IRS in the amount of $195,808.
WALLY, 34, of Bronx, New York, pled guilty to four counts. Counts One and Two charged WALLY with the tax offenses of aiding and abetting the filing of a false and fraudulent tax return and subscribing to a false and fraudulent tax return, respectively. Each of Counts One and Two carries a maximum sentence of three years in prison. Counts Three and Four charged WALLY with identify theft. Count Three carries a maximum sentence of 15 years in prison, and Count Four carries a maximum sentence of five years in prison.
In addition, WALLY has agreed to forfeit and make restitution to the IRS of $195,808. He further has agreed to file accurate amended returns for himself for calendar years 2009 through 2013, and not to contest any interest or penalties assessed against him by the IRS in connection with such amended returns. He also has agreed not to engage in any tax preparation work on behalf of others in the future. WALLY is scheduled to be sentenced before U.S. District Judge Lorna G. Schofield on December 9, 2013 at 2:30 p.m.
Mr. Bharara praised the investigative work of the Internal Revenue Service-Criminal Investigation, the New York State Department of Taxation and Finance, and the Internal Affairs Bureau of the NYPD.
This prosecution is being handled by the Office's Public Corruption Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecution.
U.S. v. Jonathan Wally Information
U.S. v. Jonathan Wally Consent Order of ForfeitureMortgage Broker Indicted in $2.2 Million Loan Fraud and Kickback SchemeRead the Press Release
SAN DIEGO - Donald V. Totten, an unlicensed mortgage broker who operated a mortgage brokerage business from Rancho Santa Fe, was indicted today by a federal grand jury on charges that he obtained $2.2 million in mortgage loans using false information and then siphoned off hundreds of thousands of dollars from the sale of the properties.
Totten was arrested on July 24, 2013, and made his initial appearance in the Northern District of California. He is currently in federal custody and will be transported to the Southern District of California for the proceedings.
According to the indictment, Totten arranged a series of real estate transactions with a Chula Vista property owner who was struggling to make his mortgage payments. In a complicated set of transactions, Totten first entered into a partnership with an investor from Carlsbad, promising to share the costs of maintenance of the properties and then split the proceeds from an eventual re-sale.
To purchase the properties, Totten employed a straw buyer (his investor’s girlfriend) who never intended to live in the properties despite certifications to the contrary on her loan applications. In addition to providing significant down payments from his own funds, Totten falsified the straw buyer’s loan applications and, among other things, inflated her income and assets in order to induce the financial institutions to grant the mortgages.
According to the indictment, Totten and his loan processor, Shellie Lockard, who worked for his brokerage business Money World, then sent fabricated supporting documents to the mortgage lenders to bolster the bogus claims in the loan applications. The indictment charges Totten with purchasing four homes for the same straw buyer simultaneously – by intentionally failing to disclose to each lender that the borrower was in the process of buying multiple properties.
Last week, Lockard admitted falsifying applications for dozens of Money World mortgage loans. Lockard pled guilty on July 30, 2013. According to court documents, in addition to the four Chula Vista properties, Lockard processed dozens more fraudulent loan applications for Totten involving the purchase and re-finance of properties around the country. In each case, Lockard admitted that the loan paperwork she provided to mortgage lenders contained false information about the borrowers’ income, assets, debts, intent to occupy the properties, and other lies.
According to the indictment, Totten earned substantial commissions on the four Chula Vista sales, and at the same time he secretly arranged for almost $192,000 in sale proceeds to be sent directly to his own bank accounts as kickbacks. He concealed his receipt of these payments from the lenders by directing them to Island Financial, a company which he controlled. According to the indictment, after the sales closed, Totten had the straw buyer sign over the deeds to the properties to a trust that he controlled, effectively obtaining ownership. Eventually, however, each of the four mortgages defaulted and the properties were foreclosed. The lenders and secondary mortgage purchasers, including Fannie Mae and Freddie Mac, suffered losses as a result of the foreclosures.
“Prosecuting people who have contributed to the mortgage meltdown is one of my top priorities because they have played such a significant role in our nation’s financial turmoil, and because the economic damage to taxpayers is immense,” said U.S. Attorney Laura Duffy.
FBI Special Agent in Charge Daphne Hearn commented, “Mortgage fraud costs taxpayers billions of dollars every year and is a threat to our nation's economy. The FBI will continue to lend our agent and analyst resources to investigate these important cases.”
“Totten allegedly participated in a fraudulent scheme involving over $2 million in mortgage loans that ultimately defaulted, to the detriment of Fannie Mae, Freddie Mac and American taxpayers,” said Federal Housing Finance Agency Inspector General Steve A. Linick . “We are proud to support our law enforcement partners in investigating and prosecuting this case.”
“Mortgage fraud causes tremendous financial damage to everyone, including financial institutions, borrowers and the American taxpayer,” said Jose A. Gonzalez, Special Agent in Charge for IRS Criminal Investigation’s (IRS CI) Los Angeles Field Office. “IRS CI is firmly committed to supporting our law enforcement partners and the U.S. Attorney’s Office in the investigation and prosecution of fraudsters committing mortgage fraud crimes.”
These charges are the result of an active, ongoing criminal investigation. Anyone with information relating to these charges should contact the San Diego branch of the Federal Bureau of Investigation at (858) 565-1255, or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
The public is reminded that an indictment is not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Criminal Case No. 13MJ2783 Donald V. Totten SUMMARY OF CHARGESTitle 18, U.S.C., Section 1349 -- Conspiracy to Commit Wire Fraud. Maximum Penalty: 30 years custody, a maximum fine of $1,000,000 or twice the gain derived from or loss caused by the offense, five years supervised release, and $100 special assessment.
Title 18, U.S.C., Section 1343 -- Wire Fraud Affecting a Financial Institution. Maximum
DEFENDANT Criminal Case No. 13MJ2783 Shellie Lockard Age: 43 Westlake Village, CA SUMMARY OF CHARGES
Penalty: 30 years custody, a maximum fine of $1,000,000 or twice the gain derived from or loss caused by the offense, five years supervised release, and $100 special assessment.Title 18, U.S.C., Section 1349 -- Conspiracy to Commit Bank Fraud and Wire Fraud. Maximum
INVESTIGATING AGENCIES
Penalty: 30 years custody, a maximum fine of $1,000,000 or twice the gain derived from or loss caused by the offense, five years supervised release, and $100 special assessment.Federal Bureau of Investigation
Internal Revenue Service-Criminal Investigation
Federal Housing Finance Agency-Office of Inspector GeneralMexican Citizen Indicted for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, announced today that a 28-year-old year-old native and citizen of Mexico has been charged with Illegal Reentry into the United States.
According to United States Attorney Peter J. Smith, Estevan Almanza-Mendoza, age 28, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg Wednesday.
The indictment alleges that Almanza-Mendoza, an alien who has been convicted on December 21, 2009, of Illegal Re-Entry into the United States by a Previously Deported Alien, was previously arrested and deported from the United States on January 11, 2010, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in York County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Metro Denver Man Sentenced to over 11 Years in Federal Prison for Firearm and Drug CrimesRead the Press Release
DENVER – Juan Antonio Martinez, age 25, of Denver, was sentenced earlier this week by Chief Judge Marcia S. Krieger to serve 135 months (over 11 years) in federal prison for firearm and drug crimes, U.S. Attorney John Walsh and ATF Special Agent in Charge Andrew Traver announced. Following his prison sentence, Chief Judge Krieger ordered Martinez to serve 5 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was immediately remanded at its conclusion.
Martinez was first charged by Criminal Complaint on February 2, 2012. He was indicted by a federal grand jury in Denver on February 8, 2012. He pled guilty to selling crack cocaine and firearms on March 20, 2013. Martinez was sentenced by Chief Judge Krieger on August 5, 2013.
According to court documents, including the stipulated facts in Martinez’s plea agreement, between November 3, 2011 and February 3, 2012, the ATF conducted a series of controlled purchases of crack cocaine from the defendant and his co-conspirator. The conspiracy involved the sale of approximately 236.928 grams of crack.
In addition to the sale of crack cocaine, the defendant also contacted the informant and offered to sell an SKS Rifle for $650 and a sawed-off shotgun for $350. The defendant ultimately sold both firearms to the informant for a total of $1,000 in cash. The sawed-off shotgun was not registered in the National Firearms Registry and thus was contraband. Prior to possessing both firearms, Martinez was convicted in 2006 of possession with intent to distribute a Schedule II controlled substance. This conviction made Martinez a prohibited person, meaning it was a violation of law for him to possess any firearm.
“When a felon possesses a firearm and illegal drugs, he commits a serious federal offense – and as today’s prison sentence demonstrates, the court agrees,” said U.S. Attorney John Walsh.
“This investigation exemplifies ATF’s core mission,” said Denver Special Agent in Charge, Andrew Traver. “We make it a top priority to target convicted felons who continue to engage in illicit crime gun trafficking and drug dealing in our communities.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Denver Police Department, the Aurora Police Department and the Lakewood Police Department as part of the Project Safe Neighborhoods initiative.
The defendant was prosecuted by Assistant U.S. Attorney Richard Hosley, chief of the U.S. Attorney’s Office Major Crimes section.
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Mental Health Counselor Receives Six-Year Prison Sentence for Defrauding Medicaid of $6.1 MillionRead the Press Release
Defendant Used Proceeds To Purchase $500,000 In Jewelry And Vehicles
CHARLOTTE, N.C. – A mental health counselor who admitted overseeing a health care scheme that defrauded Medicaid of at least $6.1 million for sham mental and behavioral health services was sentenced to 72 months in prison today, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Linda Smoot Radeker, 72, of Shelby, N.C. was also sentenced to serve two years under court supervision and to pay $6,156,674.68 as restitution to Medicaid.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID); John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI); and Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
In September 2012, Radeker pleaded guilty to one count of health care fraud conspiracy and two counts of money laundering. In her plea agreement filed with the court, Radeker admitted that from 2008 to 2011 she obtained at least $6.1 million in fraudulent reimbursement payments from false claims submitted to Medicaid. According to filed court documents and today’s sentencing hearing, Radeker, a licensed professional counselor enrolled with North Carolina Medicaid, falsely claimed in billings submitted to Medicaid that she was the attending clinician for services provided to Medicaid recipients, when no such services were provided. Court records show that Radeker “rented out” her Medicaid provider number to a network of co-conspirators operating in Gaston and Cleveland Counties and elsewhere and, in return, kept a percentage of the fraudulent Medicaid reimbursements, sometimes as much as 50%.
Court records show that the co-conspirators used on the fraudulent claims primarily the Medicaid numbers of children whose parents thought were being enrolled in after school programs located in Shelby, Kings Mountain and Bessemer City, N.C. These after school programs were, in fact, owned and operated by Radeker’s co-conspirators.
According to court documents, Radeker made several large purchases using criminal proceeds including $21,500 to purchase a 2010 Ford Ranger and $44,440 to purchase a 2010 Lincoln MKS SUV. Radeker also used Medicaid money to purchase a recreational vehicle (RV) and at least $500,000 in jewelry.
In making today’s announcement, U.S. Attorney Tompkins stated, “Health care fraud harms all of us – government programs, private insurers, health care providers and individual patients. We remain committed to finding and prosecuting those who steal from important health care programs and putting a stop to the egregious assault of precious health care resources.”
North Carolina Attorney General Roy Cooper said, “This type of fraud hurts patients who really need care, wastes taxpayers’ money, and drives up health care costs for all of us. Our investigators and attorneys will continue to work with their federal partners to find and root out Medicaid cheaters.”
“Instead of assisting North Carolina families in need, Linda Radeker exploited them, using their Medicaid benefits to file false claims for her own profit. Today’s sentencing should be a warning to those who abuse their position of trust within the medical community, the FBI and our law enforcement partners will investigate and prosecute such fraud to the fullest extent of the law,” said John A. Strong, Special Agent in Charge, FBI Charlotte.
“The State’s Medicaid program is intended to serve those in need – not purchase luxury vehicles for criminals at taxpayer expense,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina. “Along with our law enforcement partners, we will ferret out and prosecute those defrauding our government health programs.”
“This is a very serious matter because health care fraud damages everyone,” said Jeannine A. Hammett, Special Agent in Charge, IRS-Criminal Investigation. “Ms. Radeker received money she was not entitled to and she created false documents to hide the true nature of the funds.”
In sentencing the defendant, U.S. Chief District Judge Frank D. Whitney noted that “health care costs have been skyrocketing” and that “legitimate providers like [Radeker] . . . take scarce resources and stretch them even further” through theft and fraud. Judge Whitney observed that this was a “glaring example of health care fraud” where Radeker “personally pocketed in excess of $3 million.” In announcing the six year sentence, Judge Whitney stated that we have to make it clear that we trust health providers and that the trust placed on the individual is critical. Radeker breached that trust and the message has to be sent to others.
Radeker will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation into Radeker was handled by the FBI, MID, IRS, and HHS-OIG. Special Assistance to the Task Force was provided by the North Carolina Division of Medical Assistance, Program Integrity Section. The prosecution was handled by Assistant U.S. Attorneys Kelli Ferry and Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Mayfield Men Charged with Production of Child PornographyRead the Press Release
Defendants Produced Sexually Explicit Images of Seven-Year-Old Child
ALBANY, NEW YORK — United States Attorney Richard S. Hartunian, Matthew Scarpino, Resident Agent in Charge, Homeland Security Investigations, and Captain Timothy Munro, New York State Police Troop G, Bureau of Criminal Investigation, announce the filing of two criminal complaints charging RICHARD HASTINGS, age 21, and ROBERT HASTINGS, age 18, of Mayfield, New York, with production of child pornography.1 The defendants are brothers who live together. If found guilty of production of child pornography, each of the defendants faces a statutory minimum of at least fifteen years of imprisonment and up to a maximum sentence of thirty years of imprisonment, and a maximum fine of $250,000. The defendants had their initial appearances in Albany on August 8, 2013 before United States Magistrate Judge Randolph F. Treece. Both defendants were detained. They will have detention hearings on August 9, 2013 at 1:30 p.m.
According to the complaints:
Between July 27, 2013 and July 29, 2013, RICHARD HASTINGS produced sexually explicit photographs of a seven-year-old child, posted some of those photographs on a website, and e-mailed some of them to an undercover investigator with Queensland (Australia) Police
Services. In addition, on August 2, 2013, his brother, ROBERT HASTINGS, produced a sexually explicit video of the child.
This case is being investigated by Homeland Security Investigations and the New York State Police. This case is being prosecuted by Assistant United States Attorney Sean O’Dowd.
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1The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
Martin Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Martin, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on August 2, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Edwin Johnson, age 62, was sentenced to 5 years of imprisonment, followed by 5 years of supervised release. Johnson was also ordered to pay $100 to the Federal Crime Victims Fund and $542.40 in restitution.
Johnson was indicted by a federal grand jury on November 19, 2012, and pled guilty to the charge on April 18, 2013.
The charge relates to Johnson having sexual intercourse with a 15-year old girl over 50 times in Bennett County in 2010 and 2011.
This case was investigated by the Martin Police Department, the South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation.
Johnson was immediately turned over to the custody of the U.S. Marshal.Maria Lourdes Moe 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 August 8, 2013, before U.S. District Judge Sam E. Haddon, MARIA LOURDES MOE, a 42-year-old resident of Helena, was sentenced to a term of:
Prison: 66 months
Special Assessment: $100
Supervised Release: 4 years
MOE was sentenced after a federal district court trial in which she was found guilty of conspiracy to possess with intent to distribute methamphetamine.
Assistant U.S. Attorney Paulette L. Stewart prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MOE will likely serve all of the time imposed by the court. In the federal system, MOE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, the Missouri River Drug Task Force, the Drug Enforcement Administration, and the Spokane Regional Drug Task Force.
Manhattan U.S. Attorney Charges 23 Members of Bronx Drug Trafficking Crew with Distributing Crack Cocaine, Cocaine, Marijuana, Mdma and OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Brian R. Crowell, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Raymond W. Kelly, the Commissioner of the Police Department for the City of New York (“NYPD”), Joseph Anarumo Jr., the Special Agent-in-Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and Anthony J. Annucci, the Acting Commissioner of the New York State Department of Corrections and Community Supervision (“DOCCS”), announced charges today against 23 members of a criminal organization known as the Burnside Money Getters (“BMG”) for conspiracy to distribute crack cocaine, cocaine, marijuana, MDMA (commonly known as ecstasy), and Oxycodone. The defendants allegedly controlled the areas from West Burnside Avenue to West Tremont Avenue, and from Sedgwick Avenue to Jerome Avenue, in the University Heights neighborhood of the Bronx, New York.
Of the 23 defendants named in the Indictment, 22 were taken into custody as part of a coordinated operation involving federal, state, and local law enforcement officers, two were in state custody on other charges, and one defendant, JONATHAN CRUZ, remains at large. The defendants who were taken into custody today were presented in Manhattan federal court this afternoon. The case is assigned to U.S. District Judge Sidney H. Stein.
Manhattan U.S. Attorney Preet Bharara said: “Today’s takedown is the fourth our Office has announced of a Bronx drug trafficking crew this year alone. Alleged drug trafficking gangs like the Burnside Money Getters not only pollute the neighborhoods they infiltrate with poisonous drugs and guns, but they also strike fear into the residents living in those neighborhoods. I want to thank our law enforcement partners for continuing to work with this Office in our efforts to pursue and prosecute those who think they can carry out illegal drug activity and inject violence into our communities in the process.”
DEA Special Agent-in-Charge Brian R. Crowell said: “Known throughout the West Bronx as the ‘light side’, ‘dark side’ and ‘D block’, the Burnside Money Getters bullied community members and residents living in the vicinity of the gangs’ daily criminal activity. As evidenced in this one year investigation, drug trafficking was the main source of profit for this gang which employed violence, threats and the use of guns in the course of their lives of crime. The residents within the 46th precinct will benefit from this joint federal, local and state law enforcement initiative bringing 23 alleged gang members to justice and giving families and residents a quality of life without fear or exposure to drugs and the violence associated with the drug trafficking of this gang.”
NYPD Commissioner Raymond W. Kelly said: “Drugs kill those it addicts, destroy families, and ruin entire neighborhoods. It’s always a good day when its traffickers are brought to justice. I want to commend the agents, prosecutors, and, of course, our detectives particularly, for the dangerous but crucial job they performed in going undercover to penetrate these narcotics crews.”
ATF Special Agent-in-Charge Joseph Anarumo Jr. said: “This investigation demonstrates the outstanding achievements that can be reached when local, state and federal law enforcement agencies work together for a common goal, which is to protect the public.”
ICE HSI Special Agent-in-Charge James T. Hayes said: “The BMG gang members arrested today allegedly peddled a wide variety of illegal drugs throughout the Bronx and violently and relentlessly defended their “turf.” HSI continues to work to rescue communities affected by transnational gang crime and violence.”
NYS DOCCS Acting Commissioner Anthony J. Annucci said: “The critical commission of helping keep our communities safe and secure is our highest priority. I acknowledge and greatly appreciate the work carried out today by the various law enforcement agencies, including our own Community Supervision officers. This cooperation will always be key in the effectiveness of these joint efforts.”
According to the Indictment unsealed today in Manhattan federal court:
From 2007 through August 2013, BMG had over 20 members who were engaged in the sale of crack cocaine, cocaine, marijuana, MDMA, and Oxycodone. During the course of the investigation, undercover officers with the NYPD made several purchases of crack cocaine and other narcotics from drug dealers in the area controlled by BMG. During the buys, officers were able to purchase significant street level quantities of cocaine and crack cocaine. In addition, BMG members possessed and discharged firearms during the course of the conspiracy to secure and enforce their drug territory. Several defendants were also intercepted on Title III court-authorized wiretaps discussing the sale of various narcotics and the use and purchase of firearms.
During the arrests and searches, agents and officers seized what is believed to be crack cocaine, MDMA and marijuana, as well as $14,000 in cash, ammunition, and counterfeit money.
KEYEWANIE BLACKLEDGE, ABDUL RAHM ABDULLAH, KWAME ANDERSON, CLEMENT BOATENG, FRANK BOATENG, TROY CARTER, MALIK CROCKER, SHONDELL CROCKER, JONATHAN CRUZ, JOVAN FIELDS, MARK FRIERSON, GLEN GILLIARD, DAIVON HENRY, LARRINGTON HENRY, MARKEEN JORDAN, MARIO MARTINEZ, MAURICE MARTINEZ, NATHANIEL MEDINA, ROBERT PIZARRO, RAYMOND RODRIGUEZ, JOSHUA TORRES, BENJAMIN TOWNES, and SHAQUAN WILSON, are each charged with one count of conspiring to distribute and possessing with intent to distribute crack cocaine, cocaine, marijuana, MDMA and Oxycodone. Each defendant faces a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison.
A chart identifying the defendants’ ages, and residencies is attached.
Mr. Bharara praised the outstanding investigative work of the DEA, the NYPD, the ATF, ICE HSI, and DOCCS. He added that the investigation is continuing.
The Office’s Violent Crimes Unit is overseeing the case. Assistant U.S. Attorneys Andrew Bauer and Jessica Ortiz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
Lee Police Chief Indicted for Extortion and Money Laundering Alleged Activity Includes Coercing Payment from Individuals Facing Prostitution Charges and Diverting Money Through Children’s Toy FundRead the Press Release
BOSTON – A federal grand jury in Springfield returned an indictment today against Lee Police Chief Joseph Buffis for extortion and three counts of money laundering.
It is alleged that in February 2012 Buffis, 55, of Pittsfield, acting in his official capacity as Lee Police Chief, extorted a $4,000 “donation” from two individuals who were facing prostitution-related charges. The “donation” was made payable to the Edward J. Laliberte Toy Fund, a holiday toy fund that Buffis controlled. Buffis deposited the $4,000 check into the Toy Fund’s bank account and quickly withdrew $3,990 which he then deposited into a joint bank account that he operated with his wife. The diverted money was then used to pay for various personal expenses. Buffis is alleged to have lied to law enforcement about the disposition of the funds.“To be entrusted to serve and protect is a great honor and privilege. The alleged actions of Chief Buffis disgrace the many incredible law enforcement stewards who uphold and enforce the law. Actions like these threaten the credibility of our justice system, and we will not stand idly by and allow the trust of our communities to be violated,” said United States Attorney Carmen M. Ortiz.
Berkshire District Attorney David F. Capeless said, “The allegations contained in the federal indictment describe a serious breach of the public trust, and my Office will continue to work with United States Attorney Ortiz and her Office to see that justice is done and order restored. It should be made clear that these accusations are made against one man, Joseph Buffis, not the Lee Police Department or any other members of its force. My Office will continue to work proudly alongside the Lee Police Department to ensure safety and justice in the town of Lee and throughout Berkshire County.”“This is another example of a successful investigation and extraordinary teamwork between the FBI, the Massachusetts State Police, United States Attorney and Berkshire District Attorney’s Offices. The conduct charged in this indictment demonstrates law enforcement’s commitment to pursue public corruption at any level. We will not tolerate these acts, especially from those who have sworn to serve and protect the community and its citizens,” said FBI Special Agent in Charge Vincent B. Lisi.
If convicted, Buffis faces a maximum of 20 years in prison on each of the counts followed by five years of supervised release, and $250,000 fine. Buffis will be summoned to appear in court for his initial appearance.
U.S. Attorney Ortiz; District Attorney Capeless; FBI Special Agent in Charge Lisi; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The U.S. Attorney’s Office would like to thank District Attorney Capeless and the Massachusetts State Police Berkshire Detective Unit for uncovering the alleged violations and initiating the investigation which led to today’s indictment.
The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz=s Springfield Branch Office.
We are seeking the public’s assistance in this case. For those who have donated cash or toys to the Edward J. Lalilberte Toy Fund or for those who have applied to the Edward J. Laliberte Toy Fund, please contact the Federal Bureau of Investigation, Springfield Resident Agency, at (413) 732-0159. Please contact the FBI if you have any information, questions or concerns regarding this matter.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lake Charles Man Sentenced to 20 Years in Prison for Receiving Child PornographyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that David Shelton, 35, of Lake Charles, was sentenced by U.S. District Judge Patricia Minaldi to 20 years in prison and a lifetime of supervised release for receiving child pornography.
According to the evidence presented at the guilty plea and sentencing, authorities detected the defendant using the E-Mule file sharing program to download child pornography. A search of his home was conducted July 12, 2012. Federal agents discovered approximately 80 movies and 1,292 images of child pornography that had been downloaded by the defendant to his computer. Most of the images were of children about 9 years of age. Some of the images were sadistic prepubescent child pornography. Shelton pleaded guilty on April 11, 2013.“The individual in this case used his computer to download images of abused children,” Finley said. “His actions contributed to a worldwide trade of such material. Our office will not stop prosecuting those who download images and videos depicting abuse of children. This case should send a clear message that there are serious consequences for this type of criminal activity.”
“Child pornography distributors enable the re-victimization of innocent children who have already experienced horrific abuse,” said Homeland Security Investigations New Orleans Special Agent in Charge Raymond R. Parmer, Jr. “These predators do severe damage to our society, and HSI will continue to investigate and seek prosecution wherever these criminals may be found.”
Homeland Security Investigations and the Lake Charles Police Department investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
LSUE Academic Assistance Director, Assistant Director Plead Guilty to Stealing Federal FundsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Dr. Marvette J. Thomas, 60, of Grambling, La., and Carra Sergeant, 60, of Ragley, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to theft of government funds.According to evidence presented at the guilty plea, Thomas served as director of the office of academic assistance, and Sergeant served as assistant director of academic assistance at Louisiana State University at Eunice (LSUE). From Sept. 1, 2008 until Feb. 28, 2012, Thomas and Sergeant used their positions to take funds from federal grants meant for the Upward Bound and Student Support Services projects, which are designed to assist students at LSUE in their education efforts and goals. They used grant funds for their personal benefit and attempted to cover up their activities by altering receipts and submitting false records.
They admitted to buying clothes, shoes, handbags, cosmetics, jewelry, children’s clothing, personal electronic devices, cookware, tools, toys, recreational vehicle parts, pet supplies, household items, outdoor items, exercise equipment, religious books, and gifts for family, friends and co-workers. LSU auditors, U.S. Department of Education-Office of Inspector General and the FBI estimate that Thomas spent at least $68,464 and Sergeant $74,653. Additionally, they allowed and encouraged subordinate co-workers to make personal purchases as well. The co-workers’ purchases total $16,050. A total of $159,167 was illegally spent under Thomas’ and Sergeant’s watch.
“The defendants in this case were entrusted with managing funds that were supposed to benefit students seeking to expand their education,” Finley stated. “They now potentially face years in jail, fines and other penalties for their actions. We will continue to pursue cases where taxpayer money is used for personal benefit.”
“These federal programs exist so that individuals can pursue and make their dream of a higher education a reality,” said Neil E. Sanchez, Special Agent in Charge, U.S. Department of Education/Office of Inspector General, South Central Region. “That’s why OIG special agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students.”Thomas and Sergeant face up to 10 years in prison, a $250,000 fine, restitution, and three years of supervised release for theft of government funds. A sentencing date of December 12, 2013 was set.
The FBI, U.S. Department of Education-Office of Inspector General and Louisiana State University auditors conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Kenneth J. Gonzales Resigning as U.S. Attorney for the District of New MexicoRead the Press Release
ALBUQUERQUE – Kenneth J. Gonzales is resigning as U.S. Attorney for the District of New Mexico today in anticipation of taking his judicial oath as a U.S. District Judge tomorrow, Aug. 9, 2013.
Mr. Gonzales was commissioned as U.S. Attorney by President Obama on April 30, 2010, after the U.S. Senate unanimously confirmed his appointment. He was sworn in as the 44th U.S. Attorney for the District of New Mexico on May 3, 2010. As U.S. Attorney, Mr. Gonzales served as the top federal law enforcement official in New Mexico and represented the United States interests in civil cases. He also served as the Co-Chairman of the Border and Immigration Subcommittee of the Attorney General’s Advisory Committee (AGAC) in addition to serving on the AGAC’s Native American Issues Subcommittee, Civil Rights Subcommittee, Environmental Issues Working Group, and Resource Allocation Working Group.
“It has been an honor and a privilege to serve the United States and the people of New Mexico as U.S. Attorney and to work alongside the fine women and men of the U.S. Attorney’s Office (USAO), our partner federal, state, local and tribal law enforcement agencies, and the federal officials and employees we work with and represent on a daily basis,” said Mr. Gonzales. “I am profoundly grateful for the trust placed in me by the President and the Attorney General, and am humbled by the opportunity to continue to serve the public as a federal judge.”
Shortly after assuming the mantle of U.S. Attorney, Mr. Gonzales restructured the USAO’s Criminal Division in Albuquerque to enable the Office to more expeditiously prosecute reactive cases and devote more time and expertise to significant investigations and prosecutions. As reorganized, the Criminal Division was comprised of the General Crimes & Border Security Section (General Crimes), the OCDETF & Gangs Section (OCDETF), the Major Economic Public Integrity & Nation Security Section (Major Crimes), and the first Indian Country Crimes Section ever constituted in any USAO.
Although the Obama Administration and Justice Department identified public safety in Indian Country as a national priority, for Mr. Gonzales, who grew up in the vicinity of the Pueblos of Pojoaque, Tesuque and Nambe, this was a personal priority. Accordingly, one of his first acts as U.S. Attorney was to replace the USAO’s Violent Crimes Section with an Indian Country Crimes Section devoted solely to combating crime in New Mexico’s Indian Country pursuant to a community prosecution strategy. The strategy, based on the community policing model, requires immersion into in the community; getting to know the community’s leaders, police and social services providers; and developing a sense of confidence and trust in the community. By fostering relationships of trust and developing confidence in the justice system, Mr. Gonzales sought to create an environment that encouraged members of New Mexico’s Native communities to more readily report crimes, fact witnesses to come forward, and victims to trust that federal prosecutors would seek justice for them. To implement this strategy, Mr. Gonzales assigned Assistant U.S. Attorney (AUSAs) in the Section as Tribal Liaisons to individual pueblos and tribes, and tasked them with getting to know their assigned communities so that the USAO was better equipped to meet the public safety needs of each pueblo and tribe. Examples of the cases routinely prosecuted by the Indian Country Crimes Section include a life sentence for Nathan Jack who was convicted of suffocating his common-law wife by packing her throat with dirt; a 40 year sentence for Reehahlio Carroll for the felony murder of a nun during a burglary; and a 50 year sentence for a Navajo man who kidnapped and sexually assaulted a disabled teenager.
Mr. Gonzales also implemented two Indian Country pilot projects and expanded on a third. The first was one of only three community prosecution teams funded by the Justice Department as part of its on-going efforts to increase engagement, coordination and action on public safety in tribal communities. Mr. Gonzales’ community prosecution team is stationed in the Eastern Agency of the Navajo Nation. The second was the Tribal Special AUSA Pilot Project sponsored by the Justice Department’s Office on Violence Against Women in response to the epidemic of violence against Native women. Through this pilot project, tribal prosecutors are trained in federal law, procedure and investigative techniques to increase the likelihood that violent offenses against Native women are prosecuted in federal court or tribal court, or both. With respect to the third, Mr. Gonzales supported the Navajo Nation Department of Public Safety’s application to continue the Dlo’ ayazhi Indian Country Project Safe Neighborhoods (PSN) Pilot Project in the Crownpoint District and to expand the program to the Shiprock District. This project – the first PSN project in Indian Country – supports an anti-gang, anti-drug and anti-firearms violence school-based prevention program and a domestic violence reduction program.
Mr. Gonzales charged the General Crimes Section with prosecuting immigration, firearms, bank robbery and non-Indian Country violent crime as well as reactive narcotics cases and discrete white collar crime cases thus enabling the OCDETF and Major Crimes Sections to focus on long-term, proactive investigations and prosecutions. The Section also prosecutes cases brought under “the worst of the worst” anti-violence initiative implemented by Mr. Gonzales in summer of 2010. Under this initiative, the USAO and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing them from communities in New Mexico for as long as possible. Examples of the cases routinely prosecuted by the General Crimes Section include a sentence of life imprisonment for Jeremiah Jackson for killing two women while fleeing the scene of a bank robbery; 40 and 35 year sentences for two El Salvadorans for the felony murder of a cook at a Denny’s Restaurant; the conviction after trial of an El Paso man for possession of 32 pounds of heroin with a retail value of $2.9 million, one of the top ten heroin seizures in the U.S. that year; and a 40 year sentence for an Albuquerque armed career criminal convicted on drugs and firearms charges. In addition, AUSAs in this Section and in the Las Cruces Branch Office prosecuted more than 2500 felony immigration cases and more than 2400 misdemeanor immigration cases.
The OCDETF Section was charged with targeting and dismantling large-scale drug trafficking organizations, prosecuting gang violence, and facilitating enforcement actions against prescription drug trafficking. AUSAs in this Section and in the USAO’s Las Cruces Branch Office lead the investigation and prosecution of major drug trafficking organizations through the OCDETF Program, the centerpiece of the DOJ counter-narcotics strategy that uses prosecutor-led, multi-agency task forces to combat the most serious drug cartels. Given statistics reflecting that, per capita, New Mexico has the nation’s highest heroin and prescription drug overdose death rates and that its drug addiction rates are among the highest in the nation, Mr. Gonzales worked with federal law enforcement agencies and partnered with state, local and tribal law enforcement agencies to investigate and dismantle the drug trafficking organizations that distribute narcotics within New Mexico. Their accomplishments included investigations that resulting in the arrests and prosecution of: 84 defendants in Chaves County on narcotics and firearms charges in Sept. 2011; 20 members of a methamphetamine ring operating in Eddy County in Nov. 2011; eight members of an Albuquerque prescription drug trafficking ring in Feb. 2012; 15 members of an Albuquerque methamphetamine trafficking ring in March 2012; ten members of a Las Cruces methamphetamine trafficking ring in May 2012; 14 members of a Santa Fe cocaine trafficking ring in June 2012; 25 defendants from San Miguel County on drug trafficking charges in Aug. 2012; 18 defendants from Lincoln and Otero Counties on drug trafficking charges in Aug. 2012; 20 individuals on marijuana and cocaine trafficking charges in Sept. 2012; nine defendants on methamphetamine trafficking charges in Oct. 2012; 19 members of an Albuquerque drug trafficking and money laundering ring in Dec. 2012; 21 individuals in Albuquerque on prescription drug charges in Feb. 2013; and 29 individuals from Dona Ana County on drug trafficking charges in May 2013.
Significant accomplishments in the area of political corruption by the Major Crimes Section include a 70 month sentence for Laurie Chapman, the former facilities manager for the New Mexico Corrections Department (NMCD), for soliciting and accepting bribes in exchange for steering NMCD jobs to a roofing company; the conviction after trial of former Albuquerque Police Officer Brad Ahrensfield for obstruction of justice; the convictions after trial of Joseph and Elizabeth Kupfer on tax evasion charges, and Joseph Kupfer and Armando Gutierrez for theft of $2.5 million in federal “Help America Vote Act” funds and obstruction of justice charges; guilty pleas from the former Executive Director of the Taos County Housing Authority and her husband for stealing more than $785,000 in federal funds; and the indictment of former Santa Ana Pueblo Governor Bruce Sanchez for allegedly embezzling $3.6 million from the Indian Pueblo Federal Development Corporation.
The Major Crimes Section’s accomplishments also include a 70 month sentence for a Washington, D.C.-based financial consultant following his conviction after trial on wire fraud charges; a 12 year sentence for Doug Vaughan for operating a Ponzi scheme that defrauded more than 600 investors of $74 million; a 27 month sentence for Albuquerque real estate developer Vincent Garcia for bank fraud; and the indictment of Governor Susana Martinez’s former campaign manager on computer intrusion and false statement charges. On the national security front, the Major Crimes Section recently secured guilty pleas from a former Los Alamos National Laboratories scientist and his wife for violating the Atomic Energy Act and other charges relating to their communication of classified nuclear weapons data to a person they believed to be a Venezuelan government official, and the indictment of a scientist formerly employed by Sandia National Laboratories for allegedly using U.S. government resources and equipment to conduct research for Chinese research institutions.
Mr. Gonzales developed a strong partnership with the Justice Department’s Civil Rights Division that resulted in the joint prosecution of several significant cases and initiation of numerous investigations. This partnership extends not only to criminal matters, but also to civil matters and Mr. Gonzales established a Civil Rights Unit, comprised of AUSAs from both the Criminal and Civil Divisions, to support this important partnership and facilitate its work. Significant accomplishments in the civil rights arena include the conviction of three Farmington men for the racially-motivated assault on a young disabled Navajo man which included the branding of a swastika into the victim’s arm – this was the first case brought under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. They also include the conviction of three former corrections officers in Albuquerque for beating a DUI suspect and attempting to obstruct the investigation into that beating. On the civil front, the USAO obtained a favorable settlement for a disabled tenant in a Fair Housing Act case against his landlord, and reached a settlement with an Albuquerque restaurant under the Americans with Disabilities Act that ensures equal access for individuals with disabilities who use service animals. The USAO’s Civil Division, together with the Special Litigation Unit of the Civil Rights Division, is investigating allegations that Albuquerque Police Department officers engaged in a pattern or practice of use of excessive force, including deadly force, in violation of individuals’ Fourth Amendment rights. In addition to case related work, attorneys from the Civil Rights Division and USAO have collaborated in community outreach activities by making presentations at civil rights and Indian Country conferences and training programs, and have participated in community meetings relating to civil rights concerns within the District of New Mexico.
The USAO’s Civil Division, together with the Justice Department’s Commercial Litigation Branch secured an $11.75 million payment from Science Applications International Corporation to settle allegations that it violated the False Claims Act by charging inflated prices under federal grants to train first responder personnel to prevent and respond to terrorism attacks. It also has developed an affirmative environment justice practice and works with the Justice Department’s Environmental and Natural Resources Division in representing the United States in matters concerning the stewardship of the nation’s natural resources and public lands.
Under Mr. Gonzales’s stewardship, the USAO’s prosecution of cases brought under Project Safe Childhood (PSC), a Justice Department initiative that combats the epidemic of child sexual exploitation and abuse, increased by almost 60% and the number of defendants sentenced to prison terms exceeding 60 months increased by more than 230%.
In July 2011, Mr. Gonzales established a new Asset Recovery Unit staffed with USAO and U.S. Marshal Service personnel and tasked the Unit with responsibility for the USAO’s criminal and civil forfeitures and financial litigation. The new Unit was part of Mr. Gonzales’s multi-pronged approach to combating and dismantling criminal organizations; targeting individuals who were profiting from their illicit activities; and putting the USAO in a stronger position to recover debts owed to the people of the United States. The Asset Recovery Unit’s success is best demonstrated by the $9,841,037 it collected in calendar year 2012, including $8,735,655 collected for criminal and civil fines, penalties and debt, and $1,105,382 from criminal and civil forfeitures, which is almost tripled the amount collected by the USAO in 2011.
Mr. Gonzales, a native New Mexican from Pojoaque, received both his undergraduate and law degrees from the University of New Mexico. After graduating from law school, he served as a Judicial Law Clerk to New Mexico Supreme Court Chief Justice Joseph F. Baca and then joined Senator Jeff Bingamans Washington Office as a Legislative Assistant. From 1999 to May 2010, when he began his tenure as U.S. Attorney, Mr. Gonzales was an AUSA in the USAO for District of New Mexico and prosecuted a wide range of federal offenses. Since 2001, he has served as a Judge Advocate in the United States Army Reserve, and currently holds the rank of Major. He has served as Senior Trial Counsel for the Office of the Staff Judge Advocate, 18th Airborne Corps, Fort Bragg, North Carolina, in support of Operation Enduring Freedom. He presently is assigned to The Judge Advocate Generals Legal Center and School in Charlottesville, Virginia, where he is an Adjunct Professor of Criminal Law.
The U.S. Attorney’s Office for the District of New Mexico is charged with enforcing federal criminal laws in New Mexico, and with representing the federal government in civil litigation in the District. The Office is staffed by 76 AUSAs, four Special AUSAs, 66 support staff members and 14 contractors at offices in Albuquerque and Las Cruces. First Assistant U.S. Attorney Steven C. Yarbrough will be Acting U.S. Attorney until a new U.S. Attorney is nominated by the President and confirmed by the Senate.Justice Department Signs Agreement with the City of Fort Morgan, Colo. to Ensure Civic Access for People with DisabilitiesRead the Press Release
The Justice Department announced today an agreement with the city of Fort Morgan, Colo., to improve access to all aspects of civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
PCA ensures that people with disabilities have an equal opportunity to participate in civic life. As part of PCA, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify changes needed to comply with the ADA. The agreements detail the actions a city must take to improve access to the city. This agreement is the 208th entered into under the department’s PCA initiative.
Under the agreement, which may be viewed at www.ada.gov/fort-morgan-pca/fort-morgan-pca-sa.htm, the city will remove barriers to accessibility at the animal shelter, cemetery, city complex, city hall, library and museum, municipal court, police department and airport, as well as City Park, Fulton Heights Park, Gateway Park, Jaycee Park, Old Fort Park and Optimist Park. The city will also request the school district to remove barriers to access within the areas of the high school and the middle school that are currently used for emergency shelters.
The agreement also requires the city to address emergency management policies and procedures for persons with disabilities, develop a method for providing information for persons with disabilities about the existence and location of the city’s accessible services, establish and implement a policy to make the city’s web pages accessible and i mplement a plan to make sidewalks and curb cuts accessible throughout the city.
“Access to a city government’s programs, services and activities is one of the most basic civil rights guaranteed to community members, including those with disabilities,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “By signing this agreement, the city of Fort Morgan, Colo. is committing to ensuring its doors are open to people with disabilities.”
“One of the important roles the Department of Justice plays is ensuring that anyone can access their government,” said Walsh, U.S. Attorney for the District of Colorado. “With the signing of this agreement with Fort Morgan, those with disabilities will be able to interact with their government, free of any barriers that may have previously blocked their access.”
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The agreement requires the actions to be completed within three years. The department will actively monitor compliance with the agreement throughout this timeframe.
This agreement is among the first to be posted on the department’s newly redesigned PCA web page and may be viewed at www.ada.gov/civicac.htm . The web page allows users to identify PCA agreements in two different ways: by geographic location using a clickable map or a state list and by chronological order, when the agreement became effective.
People interested in finding out more about the ADA, today’s agreement with the city of Fort Morgan, the Project Civic Access initiative or the ADA Best Practices Tool Kit for State and Local Governments may access the ADA web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 8, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
FRANCIS KAY ONSTAD, a 60-year-old resident of Valier, appeared on Counts I, II-XXII, XXIII - XXVIII, and XXX - XXXIII.
DELYLE SHANNY AUGARE, a 57-year-old resident of Browning, appeared on Counts I, II - XXVIII, and XXXIV - XXXVII.
GARY JOSEPH CONTI, a 67-year-old resident of Three Forks, appeared on Counts I, II - XXVIII, and XXIX.
DOROTHY MAY STILL SMOKING, a 64-year-old resident of East Glacier, appeared on Counts I, and II - XXV.
KATHERYN ELIZABETH SHERMAN, a 66-year-old resident of East Glacier, appeared on Counts I, and II - XXV.
CHARLOTTE B. NEW BREAST, a 52-year-old resident of East Glacier, appeared on Counts I, II-XXII, and XXVII.
The defendants pled not guilty to the charges and were released on special conditions.
CHARGES:
Count I: Conspiracy to Defraud The United States
Penalty: 5 years imprisonment, $250,000 fine and 3 years supervised release
Counts II-XXII: Scheme to Defraud the United States and the Blackfeet Tribe/Wire
Penalty: 20 years imprisonment, $250,000 fine and 3 years supervised release
Count XXIII: Federal False Claims Act Conspiracy
Penalty: 10 years imprisonment, $250,000 fine and 3 years supervised release
Count XXIV: Federal False Claims Act
Penalty: 5 years imprisonment, $250,000 fine and 3 years supervised release
Count XXV: Theft of Federal Property by Fraud
Penalty: 10 years imprisonment, $250,000 fine and 3 years supervised release
Counts XXVI & XXVII: Theft from an Indian Tribal Government Receiving Federal Grants
Penalty: 10 years imprisonment, $250,000 fine and 3 years supervised release
Count XXVIII: Money Laundering
Penalty: 10 years imprisonment, $250,000 fine and 3 years supervised release
Count XXIX: Bankruptcy Fraud
Penalty: 5 years imprisonment, $250,000 fine and 3 years supervised release
Counts XXX-XXXII, XXXV: Willful Failure to File Tax Return
Penalty: 1 year imprisonment, $25,000 fine and 1 year supervised release
Counts XXXIII-XXXIV, XXXVI-XXXVII: Income Tax Evasion
Penalty: 5 years imprisonment, $100,000 fine and 3 years supervised release
Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment Charges Serial Bank Robber in New HeistsRead the Press Release
PHILADELPHIA - Carl Anthony Goodwin, 28, of Philadelphia, PA, was charged today by indictment in several robberies in Philadelphia, one of which was committed while he was a resident of a halfway house, announced United States Attorney Zane David Memeger. Goodwin is charged with five robberies, one attempted robbery, and escape from the residential reentry center.
Goodwin had been released to the Kintock Residential Reentry Center at 301 East Erie Avenue (“Kintock”) after completing a 30-month prison sentence for two attempted robberies on banks in Philadelphia. According to the indictment, on June 17, 2013, Goodwin robbed the Dunkin Donuts store at 3705 Germantown Ave. It is further alleged that on June 19, 2013, Goodwin escaped from confinement at the Kintock Residential Reentry Center. It is further alleged that on June 20, 2013 and July 2, 2013, Goodwin robbed the Citizens Bank branch, at 6324 Stenton Ave., and that on June 21, 2013, Goodwin attempted to rob the Bank of America branch located at 3705 Aramingo Avenue. Goodwin is also charged with the June 24, 2013 robbery of the Beneficial Bank branch at 5301 Chew Ave., and the July 7, 2013 robbery of the Wells Fargo Bank branch at 861 East Allegheny Avenue.
If convicted of all charges, Goodwin faces a maximum possible sentence of 125 years in prison, a fine of up to $1.75 million, three years of supervised release, and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Harrisburg Mother and Grandmother Indicted and Charged with Social Security Fraud and Theft of Government FundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Oriana Merino, age 31 and Raquel Cuni, age 65, both of Harrisburg, were indicted Wednesday and charged with theft of government funds and social security fraud.
According to U.S. Attorney Peter J. Smith, from March 2010 to May 2013, Merino and Cuni received Supplemental Security Income and disability benefit payments as Representative Payees for their son/grandson and used the money for themselves. The child had been removed from the home and transferred to the custody of Dauphin County Children and Youth Services.
This case is being investigated by Social Security Office of Inspector General and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Fort Polk Man Sentenced for Sexual Abuse of A MinorRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Satonius Gaines, 19, of Fort Polk, La., was sentenced by U.S. District Judge Patricia Minaldi to 18 months in prison with five years of supervised release for sexual abuse of a minor.
According to evidence presented at the guilty plea, Gaines admitted that on July 22, 2012, he engaged in oral sex with a 13-year-old minor on the Fort Polk Military base. He pleaded guilty May 1, 2013.
The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.Former Wilton Manors Resident Sentenced for Defrauding the State of Florida Unemployment Compensation ProgramRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Cynthia R. Lorenzo, Interim Executive Director, Florida Department of Economic Opportunity, announce that defendant Denny Ray Hughes, 40, formerly of Wilton Manors, FL, was sentenced before U.S. District Court Judge William P. Dimitrouleas, in connection with his previous conviction for wire fraud, in violation of Title 18, United States Code, Section 1343, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A for his role in defrauding the Unemployment Compensation Programs of both the State of Florida and the Commonwealth of Massachusetts.
At the hearing, Judge Dimitrouleas sentenced defendant Hughes to 41 months in prison for the wire fraud and a consecutive 24 months in prison for the aggravated identity theft, for a total imprisonment of 65 months, to be followed by three years of supervised release, and ordered that he pay $219,970 in restitution to the State of Florida and $70,524 in restitution to the Commonwealth of Massachusetts.
According to the indictment and court documents, between January 2011 and April 2012, defendant Hughes obtained the personal identifying information of approximately 21 individuals, including their names, dates of birth, and social security numbers, and in order to obtain and build wage credits for the purported employees filed or caused to be filed fraudulent quarterly UCT-6 forms with the Florida Department of Revenue classifying them as employees of Mortgage Relief America, LLC (MRA). Alternatively, defendant Hughes submitted falsified W-2’s to the Florida Department of Economic Opportunity to create the appearance that these individuals had previously worked for MRA. The defendant thereafter classified these individuals as laid off employees and fraudulently filed applications with the Florida Department of Economic Opportunity seeking unemployment compensation benefits on their behalf utilizing their personal identifying information. Once these fraudulent unemployment compensation applications had been submitted to the Florida Department of Economic Opportunity, the defendant made materially false, misleading, and fraudulent claims to the Florida Department of Economic Opportunity Unemployment Compensation Program over the internet and/or over the telephone on either a weekly or bi-weekly basis, and thereby caused unemployment compensation funds from the Florida Department of Financial Services to be deposited directly into the defendant’s bank account via electronic funds transfers. Moreover, the investigation also disclosed that Hughes devised a similar scheme by creating another fictitious company under the name of Commonwealth Global Corp (CWGC) located in Massachusetts. In that scheme, Hughes utilized personal identifying information of at least 23 individuals to fraudulently apply for and receive approximately $70,524.00 in Massachusetts UI benefits.
Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of the Inspector General and the Florida Department of Economic Opportunity. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
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.
Former Union President Pleads Guilty to TheftRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Calvin Sanders Sr., 52, of Franklin, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote, to embezzling union funds.According to evidence presented at the guilty plea, Sanders admitted that he was president of the United Food and Commercial Workers, Local 638C, union from June 2007 to February 2010, and that he was responsible for maintaining their financial records and funds. He admitted to not maintaining the necessary financial records needed to explain and clarify the reports he is required to submit under federal law. Sanders admitted he made unauthorized withdrawals from Local 638C’s general and strike fund checking accounts, in addition to paying for his personal utility bills with Local 638C funds. The evidence established that he took $24,028 in union funds.
Sanders faces up to five years in prison, a $10,000 fine, restitution, and three years of supervised release for embezzling union funds. A sentencing date of Dec. 12, 2013, 2013 was set.
The U.S. Department of Labor-Office of Labor Management Standards conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Former Heber City, Utah, Resident Sentenced to Prison for Filing False Claims for Tax RefundsRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that April J. Rampton, 42, formerly of Heber City, Utah, was sentenced today to 21 months in prison for filing false claims for income tax refunds. U.S. District Judge Dee Benson also ordered Rampton to pay $230,678.36 in restitution to the IRS and to serve three years of supervised release upon her release from prison.
Rampton was convicted at trial in December 2012 of nine counts of filing false claims for refund. According to the indictment and the proof at trial, in July 2011, Rampton filed a false individual income tax return, based on false Forms 1099-OID, which sought a refund of more than $225,000. On these false Forms 1099-OID, Rampton listed items of debt, such as her home mortgage and credit cards, as if the bank or loan holder had withheld the entire amount of her debt as a federal income tax payment. Rampton received a refund check from the IRS, photocopied the check, and showed it to friends and family members. Rampton then began preparing returns for friends, family members, acquaintances and strangers, all using false Forms 1099-OID that sought tax refunds corresponding to their debts.
This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorneys Michael Romano and Stuart Wexler of the Justice Department’s Tax Division.
Former Army Sergeant First Class Pleads Guilty to Government Theft ChargesRead the Press Release
WASHINGTON – Mauricio Espinoza, 34, pleaded guilty today in the Eastern District of North Carolina to conspiring to commit mail fraud and wire fraud, to steal and convert monies belonging to the U.S. Government, and to smuggle currency into the United States as well as to theft and conversion of government property.
According to the Indictment and information in the public record, between July, 2009 and January, 2010, while deployed to Afghanistan, former Sergeant First Class Espinoza, 34, and former-Staff Sergeant Philip Wooten, 36, (who previously pled guilty to the same offenses) stole federal monies entrusted to them and which were earmarked for operational and reconstruction efforts.
Espinoza deployed to Afghanistan from July 2009 through July 2010 with a small detachment from the United States Army 7th Special Forces Group. Espinoza’s duties included that of Paying Agent. Wooten, who was assigned to the same detachment, was the Field Ordering Officer (FOO). As the FOO, Wooten was responsible for contracting with local vendors for various operational and reconstruction efforts in Afghanistan. As the Paying Agent, Espinoza was responsible for making payments to the local vendors to whom Wooten awarded contracts and for properly accounting for the expenditure of federal funds under his control. Together, as the Paying Agent and the Field Ordering Officer, Espinoza and Wooten were entrusted with U.S. funds allocated for military operations and reconstruction efforts in Afghanistan. Before their deployment and thereafter, the two soldiers planned how they would steal those funds.
Beginning in or about July 2009, Espinoza signed for and withdrew U.S. funds in the form of Afghani currency from the U.S. Finance Office on the military installation known as Kandahar Air Field (KAF). The funds were meant to finance purchases (such as provisions for the Special Forces Team) and construction projects near the team’s forward operating base. Espinoza knew that he would have to periodically return to the United States Finance Office at KAF in Kandahar, Afghanistan, to review the status of the funds that he withdrew. In advance of each trip to the Finance Office, Espinoza and Wooten falsified receipts from Afghani vendors to reflect greater amounts than were actually paid for goods and services that the Afghans had provided. Espinoza then handed in the falsified, inflated receipts to the Finance Office and kept for himself and his co-conspirator the difference between the inflated numbers and the amounts
actually paid. Thereafter, and while still at the military base in Kandahar, the conspirators arranged with an Afghani national to have the stolen funds converted into U.S. dollars.
Once in possession of the U.S. dollars, Espinoza and his co-conspirator then converted a portion of the stolen funds into U.S. postal money orders, $30,000 of which Espinoza shipped to the United States via an international carrier. Espinoza also purchased a Harley-Davidson motorcycle with some of the stolen funds.
In addition, Espinoza wired and caused to be wired some of the money electronically through Western Union to various locations in the United States and Peru. Espinoza directed at least one recipient of the wired money to transfer funds to his own bank account.
The total loss to the government exceeded $200,000.
“The greed exhibited by this former Army NCO and his co-conspirator subvert the actions of our brave service members putting their lives on the line each day in Afghanistan. This Office will continue to vigorously prosecute those who steal from the American taxpayer,” commented United States Attorney for the Eastern District of North Carolina Thomas G. Walker.
"Mauricio Espinoza disgraced his country, the Army, and his Special Forces brothers, said John Strong, Special Agent in Charge of the Charlotte Division of the FBI. “Not only did he steal from funds earmarked for use by his Operational Detachment in the Afghanistan war effort, he submitted false paperwork to try and hide his crimes. He violated the essential trust our Special Forces leaders must have in these elite warriors when operating in combat conditions in a foreign land. The results of this joint investigation prove those that violate this sacred trust will be held accountable."
“This guilty plea by a former senior non-commissioned officer in the Army’s Special Forces demonstrates the effectiveness of joint investigations by the Defense Criminal Investigative Service and other law enforcement partners,” stated Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. “Former Sergeant First Class Espinoza was held accountable for conspiring with others to steal Government funds intended for our Warfighters and military operations in Afghanistan, and using the money for personal benefit. DCIS continues to aggressively combat corruption and fraud that waste precious American taxpayer dollars, especially in these times of reduced Defense spending.”
"SIGAR's agents work relentlessly to protect the American taxpayer and the reconstruction efforts in Afghanistan,” stated Special Inspector General for Afghanistan Reconstruction John F. Sopko. The Espinoza case demonstrates their outstanding work and the success of working joint investigations.”
At sentencing, set for November 7, 2013, Espinoza faces up to 5 years imprisonment for the conspiracy charge and up to 10 years imprisonment for the theft charge.
Wooten plead guilty to a criminal information on Dec. 13, 2011, which charged conspiring to commit mail fraud and wire fraud, to steal and convert monies belonging to the
U.S. Government and to smuggle currency into the United States along with aiding and abetting theft and conversion of government property. Wooten is set to be sentenced on Oct. 2, 2013.
The case was investigated by the Defense Criminal Investigation Service, United States Postal Inspection Service, Office of the Special Inspector General for Afghanistan Reconstruction, United States Army Criminal Investigation Command, and the FBI from Fayetteville, NC; Fort Walton Beach, FL; and Panama City, FL. Special assistance was provided by the U.S. Immigration and Customs Enforcement – Homeland Security Investigation. The case was prosecuted by Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Fraud Section Trial Attorney Wade Weems, on detail from the Special Inspector General for Afghanistan Reconstruction (SIGAR).
Former Air Force Employee and Two Contractors Charged with Bribery, Theft of Government Funds, Fraud, and Making False Statements Relating to Air Force ContractsRead the Press Release
PENSACOLA, FLORIDA – A federal grand jury has returned a 34-count indictment charging three individuals with conspiracy, bribery, theft of government funds, disclosing or obtaining contractor bid and proposal information, honest services mail fraud, money laundering conspiracy, and making false statements. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Two of the three, who were charged, John Norman Sims and Ronald Benton Powers, were arrested on federal warrants today and made their initial appearances in United States District Court in the District of Columbia and the Middle District of Florida. The third defendant, George Guyton Cannady is expected to make his initial appearance on the charges within the next several days.
The indictment charges Sims (51), formerly of Niceville, Fla., and currently living in North Carolina; Cannady (63), a North Carolina resident; and Powers (58), of Jacksonville, Fla., with conspiring to defraud the United States Air Force (USAF) of approximately $5.4 million worth of contracts to support a USAF activity. The indictment charges that Sims, a retired USAF officer, while a contractor and civilian employee of the USAF, accepted bribes from Cannady, the owner of a company obtaining contracts from the USAF, and from Powers, who also owned companies providing services to the USAF. The bribes were allegedly paid to Sims so that he would continue to steer valuable USAF contracts to companies owned by Cannady and Powers.
According to the indictment, the three defendants agreed to obtain contracts from the USAF by using the insider knowledge, expertise, and access of Sims with respect to military operations and USAF activity, the expertise and knowledge of Cannady as a contractor with experience supporting USAF activity, and the expertise and ability of Powers to locate, lease, and provide equipment and items necessary for the USAF activity. Additionally, the indictment alleges that Sims improperly provided acquisition requirements and pricing data for future USAF contracts to Cannady and Powers, and that Sims would shape the requirements for USAF contracts to match equipment or items that Powers possessed or could readily obtain. The defendants are also charged with making false statements to USAF investigators and USAF officials concerning their financial relationships with each other and their activities.
Sims was also charged in a separate count of the indictment with the unauthorized possession of classified materials after his employment with the USAF ended.
A trial date for the three defendants will be set when the three defendants appear in this District on their arraignment on the charges. If convicted at trial, each of the three defendants face up to twenty years imprisonment, three years of supervised release, and up to a $250,000 fine on the charges in the indictment.The indictment results from an investigation by agents of the United States Air Force Office of Special Investigations and the FBI. United States Attorney Pamela C. Marsh, Assistant United States Attorney Stephen M. Kunz, and Department of Justice Trial Attorney Robert Wallace, Jr., are prosecuting this case.
An indictment is merely a formal charge by a grand jury that a defendant has committed a violation of federal criminal law. All defendants are presumed innocent unless and until the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial.
Federal Prisoner Receives an Additional 184 Months’ Imprisonment for Crimes Committed While IncarceratedRead the Press Release
Mark Nowell Basnight Sentenced to Additional Prison Time for Attempting to Distribute Heroin in Prison and Committing Identity Theft as Part of a Scheme to Defraud Financial Institutions
GRAND RAPIDS, MICHIGAN – United States Attorney for the Western District of Michigan Patrick Miles announced today that Mark Nowell Basnight, age 39, of East Lansing, Michigan, was sentenced yesterday to serve 184 months in prison for attempting to possess heroin with intent to distribute it in a federal prison, and for his role in a scheme to defraud financial institutions that included the production of false identification documents, one of which included the means of identification of a real individual residing in Lansing, Michigan. He was joined in the announcement by FBI Special Agent in Charge, Robert D. Foley. U.S. District Judge Robert Jonker’s sentence provided that all 184 months of imprisonment for these offenses will be served consecutively to the 7 years that remain to be served on Basnight’s 2009 federal court conviction for participating in a conspiracy to manufacture 100 or more marijuana plants. In handing down the sentence, the court emphasized that Basnight committed these offenses while in federal custody and that the evidence revealed that he began planning these or similar offenses even while he awaited sentencing in 2009.
In 2011, while incarcerated at a federal prison in West Virginia, Basnight attempted to obtain heroin from a source in Lansing, Michigan, so that he could distribute the heroin for profit in the federal prison. Basnight sent the source a book containing an order for heroin and containing vitamins secreted in the binding so that the source could see how he could send him drugs at the prison. At about the same time, Basnight and the source planned a scheme to defraud at least six financial institutions in several states. The scheme included the production of false identification documents, including driver’s licenses from Michigan and other states that contained the picture of another co-conspirator, who would use these false documents to obtain bank loans by fraud. One of the false identification documents contained the real personal identifiers of an individual residing in Lansing, Michigan, that were obtained by a co-conspirator through an individual that provided cleaning services to a local bank after it closed for the day.
“One of the primary goals of our federal prison system is to rehabilitate those convicted of federal crimes so that they can return as productive members of our communities,” said U.S. Attorney Miles. “This Office will vigorously prosecute those who choose to thwart this very important goal by continuing to commit crimes while serving time in our federal prisons.” FBI Special Agent in Charge, Robert D. Foley, agreed, stating, “This case is particularly troubling given that a federal prisoner committed identity theft, rather than taking steps toward being rehabilitated. Those individuals who choose to conduct further criminal activity while serving time in our federal prisons will face severe penalties for their illegal actions.”
The investigation of this case, which resulted in the conviction of five individuals in addition to Basnight, was conducted by the FBI. The case was prosecuted by Assistant U.S. Attorney Ron Stella.
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Federal Grand Jury Indicts Two Men for Obstruction of Justice in the Boston Marathon Bombing InvestigationRead the Press Release
BOSTON – A federal grand jury today returned a two-count indictment against two men previously charged with conspiracy to obstruct justice in the Boston Marathon bombing investigation.
Dias Kadyrbayev, 19, and Azamat Tazhayakov, 19, nationals of Kazakhstan who were residing in New Bedford on student visas, were charged today with conspiracy to obstruct justice and obstructing justice with the intent to impede the Boston Marathon bombing investigation. Kadyrbayev and Tazhayakov were originally charged on May 1, 2013, via criminal complaint.Today’s indictment alleges that on the evening of April 18, 2013, after the FBI posted photographs of the two men suspected of carrying out the Marathon bombings (who were later identified as Tamerlan Tsarnaev and Dzhokhar Tsarnaev), Kadyrbayev received a text message from Dzhokhar Tsarnaev suggesting that he go to Tsarnaev’s “room and take what’s there.” Kadyrbayev, Tazhayakov, and another conspirator, according to the indictment, then went to Tsarnaev’s dormitory room and removed several items, including Tsarnaev’s laptop computer and a backpack containing fireworks, and brought them to Kadyrbayev and Tazhayakov’s apartment in New Bedford. Later that night, Kadyrbayev, with Tazhayakov’s knowledge and agreement, placed Tsarnaev’s backpack, which contained several items including fireworks, in a garbage bag, and put it in a trash dumpster outside their New Bedford apartment.
If convicted Kadyrbayev and Tazhayakov face up to 20 years in prison on the obstruction of justice count and up to five years in prison on the conspiracy count, each to be followed by up to three years of supervised release and a $250,000 fine. Both face the possibility of being deported.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation was conducted by the FBI's Boston Division, the Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force (JTTF), which is comprised of more than 30 federal, state and local enforcement agencies. The University of Massachusetts Dartmouth Department of Public Safety, the City of New Bedford, New Bedford Police Department, Dartmouth Police Department, U.S. Department of Transportation – Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), Essex County Sheriff’s Office, and Internal Revenue Service, Criminal Investigations provided assistance to this investigation.
The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fairborn, Ohio, Man Pleads Guilty to Sex TraffickingRead the Press Release
Thuron L. Hammersley, 44, of Fairborn, Ohio, pleaded guilty in U.S. District Court today to one count of transporting an individual from Ohio to Kentucky for purposes of engaging in prostitution. He also admitted to enticing a woman to travel from Kentucky to Ohio to engage in prostitution and obstructing the investigation into his activities.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio; Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice; Kevin R. Cornelius, Special Agent in Charge, FBI, Cincinnati Field Office; Richard Biehl, Chief, Dayton, Ohio, Police Department; and John Sedlak, Chief, Miamisburg, Ohio Police Department announced the plea entered today before U.S. District Judge Timothy S. Black.
According to court documents, Hammersley met the women on the website plentyoffish.com and placed ads for them on the internet site backpage.com, offering the women as “escorts.” He directed the men who responded to the ads to motels in Kentucky and Ohio, where they engaged in sexual activity for money. He also enticed another woman to travel from Kentucky to the Dayton area to engage in prostitution. Hammersley enticed her by offering her employment, paying for her bus ticket and paying for condoms. Hammersley collected the money paid by the men.
The plea agreement includes a recommended sentence of 78 months in prison followed by five years of supervised release. Under the terms of the plea agreement, the court will review a pre-sentence investigation report before determining whether or not to accept the recommended sentence.
The case was investigated by the FBI and the Dayton and Miamisburg police departments. Assistant U.S. Attorneys Vipal Patel and Alex R. Sistla and Department of Justice Trial Attorney Betsy Biffl prosecuted the case.