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Thursday 20 June 2013
Reading Man Indicted on Child Porn ChargesRead the Press Release
Danny Ray Evans, Jr., age 26, of Reading, PA was charged today by Indictment with two counts of production of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 60 years imprisonment, with a 15 year mandatory minimum sentence, a $500,000 fine, a lifetime of supervised release and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Berks County Detectives, and the Berks County District Attorney's Office. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
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, 215-861-8525Plea of Guilty Entered to Conspiracy to Commit Bank FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Gary Patton Hall, Jr., 47, of Tifton, Georgia, entered a plea of guilty today to Conspiracy to Commit Bank Fraud before the Honorable Hugh Lawson, Senior United States District Judge in Macon, Georgia.
In entering his plea of guilty, Mr. Hall admitted that from 2005 continuing through 2010, he committed bank fraud involving the Tifton Banking Company during his employment as President and CEO of the bank. Mr. Hall admitted that he conspired with others to obtain money, funds, credits, assets, securities, and other property of the Tifton Banking Company while carrying on a practice of replacing non-performing loans with new loans, including a Small Business Administration (SBA) guaranteed loan, to make the bank appear financially stronger than it was. The actions caused monetary losses to the bank and SBA of approximately $2.8 million. Mr. Hall continued these illegal activities even during the time that the bank applied for and received assistance from the Troubled Asset Relief Program (TARP), a government program established to help financial institutions during a financial crisis in an attempt to save the failing bank.
The plea agreement entered into by Mr. Hall and the United States Attorney calls for a sentence of sixty-five months in federal prison based upon an agreement as to what would be the appropriate calculations for determining sentence length under the federal sentencing guidelines. The decision as to whether or not to accept this recommendation will be made by the Court at the time of sentencing. The maximum possible sentence under the law is thirty years imprisonment, a maximum fine of $1,000,000.00, or both, a term of supervised release of up to five years, and a mandatory assessment fee of $100.00. Sentencing is currently set for September 30, 2013.
The case was investigated by the Federal Deposit Insurance Corporation, the Special Inspector General for TARP (SIG-TARP), the Federal Bureau of Investigation, the U.S. Small Business Administration, and the Tift County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Pittsburgh Man Sentenced to 7 Years in Prison for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to 84 months imprisonment for his convictions of violating federal drug and firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Rayshaun Jones, 25, who is currently incarcerated.
According to information presented to the court, between Sept. 14, 2010, and Sept. 15, 2010, Jones conspired to distribute and possess with intent to distribute less than 50 kilograms of marijuana and to rob the Swap Meet, a business engaged in interstate commerce, as well as its owner, vendors, employees and customers of money, merchandise and marijuana. On Sept. 15, 2010, Jones and other co-defendants robbed the Swap Meet and as a result obtained among other things, $300-$400 and one kilogram of marijuana. During the robbery, Jones carried, used and possessed firearms.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Rayshaun Jones.
Pilot and Passenger from San Francisco, Whose Plane Was Met by CBP Air Interdiction as It Landed in Lubbock, Plead Guilty to Federal Drug ChargesRead the Press Release
LUBBOCK, Texas — Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, each appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of possession with intent to distribute more than 50 kilograms, but less than 100 kilograms, of marijuana. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Judge Cummings ordered presentence investigation reports with sentencing dates to be set after the completion of those reports. Both defendants remain on bond. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gallanter and Wynne-Wade were arrested after their arrival in Lubbock and charged in a federal criminal complaint. Subsequently, on May 15, 2013, a federal grand jury in Lubbock indicted them for possession with intent to distribute marijuana, hashish and psilocin/psilocybin.
According to documents filed in the case, U.S. Customs and Border Protection (CBP) Air Interdiction agents had received information that that a Piper PA28-181 aircraft, tail number N342TA, was operating under suspicious circumstances, in that the occupants of the aircraft paid for their fuel with cash, fueled their own plane, had a large amount of luggage in the aircraft’s passenger compartment and departed in poor weather conditions. Agents also had information that the aircraft had been rented from the Travis Air Force Base Aero Club in Rio Vista, California, where some individuals renting aircraft were breaking flight rules and procedures.
CBP launched a Citation Interceptor Jet in an attempt to locate the aircraft. On April 17, 2013, at approximately 10:15 p.m., CBP Air Interdiction agents contacted the aircraft to conduct a ramp check as it was about to refuel at Lubbock Aero, a refueling location located at the Lubbock International Airport. Agents identified Gallanter as the pilot and Wynne-Wade as the passenger.
CBP Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork. After a drug detector dog alerted to the presence of drugs, the plane was then searched by federal agents. Agents located six large military-style duffle bags and four smaller bags inside the passenger compartment. Agents opened the bags and located 98 plastic bags of marijuana, four plastic bags of hashish and two plastic bags of psilocin mushrooms. In total, agents located approximately 69 kilograms of marijuana, four kilograms of hashish, and 1.37 kilograms of psilocin mushrooms.
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Owner of GeneRx Discount Pharmacy Admits Conspiring to Structure TransactionsRead the Press Release
Defendant Will Forfeit More Than $476,000 in Seized Funds to Government
DALLAS — Linus Nwosu appeared this morning before U.S. District Judge Reed C. O’Connor and pleaded guilty to an Information charging one count of conspiracy to commit structuring. He faces a maximum statutory penalty of five years in federal prison, a fine not to exceed $250,000, or twice any pecuniary gain to the defendant or loss to the victim (s) and restitution. In addition, according to the terms of the plea agreement, Nwosu will forfeit $476,390, that has been seized, to the government. He will remain on bond pending sentencing, which is set for October 10, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Nwosu owns and operates two pharmacies, with his wife, in the Dallas – Fort Worth area under the name of GeneRx Discount Pharmacy, Inc. From October 2011 to May 2012, Nwosu and his wife agreed to structure GeneRx’s cash deposits to avoid the currency reporting requirements. During this time, Nwosu and his wife made approximately 77 cash deposits totaling $476,190; each of the deposits was made with the intent to avoid the currency reporting requirements as required by law.
The case is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
Orlando Man Pleads Guilty to More Than $300,000 in Attempted Tax FraudRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Hussein Chery pleaded guilty yesterday to two counts of mail fraud and one count of access device fraud. Chery faces a maximum penalty of 20 years in federal prison for each mail fraud count, and up to 10 years in federal prison for the access device fraud count. A sentencing date has not been scheduled. Chery was indicted on May 8, 2013.
According to his plea agreement, Chery was stopped by an Orange County Sheriff’s Office deputy on March 22, 2012, for a traffic violation. A consent search of Chery’s vehicle resulted in the discovery of 38 cash/debit cards that were issued in the names of other people, a bundled assortment of delivered mail addressed to individuals other than Chery, and four notebooks containing handwritten information that corresponded to the debit cards.
Further investigation determined that Chery was part of a group of individuals who used stolen personal information to submit false income tax returns. The fraudulently obtained refunds were deposited onto prepaid debit cards that were issued in the victims’ name. Those prepaid debit cards were mailed to abandoned homes and others addresses located in Central Florida, where they were then retrieved by Chery and others. The participants in the scheme then attempted to use the debit cards to withdraw cash or pay for personal items.
The debit cards and notebooks found in Chery’s possession contained approximately 200 names of victims whose identities were used in some aspect of this scheme. Agents have found more than $340,000 in actual and attempted losses associated with the fraudulent tax returns that were filed using the stolen identities of the victims found in Chery’s notebooks.
This case was investigated by the Orange County Sheriff’s Office, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Operator of Local Frison Flea Market Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO - JACK FRISON, SR. was indicted on multiple charges relating to his alleged involvement in the sale of counterfeit goods and DVD’s.
According to the indictment, Frison owns the Frison Flea Market, located in Pagedale, MO. Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market, and many of these vendors openly sold counterfeit goods from their booths at the Market. The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs. Many of the counterfeit items including purses, were of such price, quality and appearance that it was apparent that the items were counterfeit. Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. The indictment alleges that Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods.
"This type of crime takes jobs from Americans, introduces cheap and sometimes dangerous products into the marketplace and oftentimes funds criminal organizations. HSI is focused on disrupting and deterring counterfeiters, while protecting the intellectual property of American companies that is so critical to our nation's job growth and economic recovery," said Special Agent in Charge of HSI-Chicago Gary Hartwig.
"This is one of the largest seizures of counterfeit goods in St. Louis history," said Dean C. Bryant, Special Agent in Charge of the FB- St. Louis Division. "In addition to the monetary harm caused by illegal sales, items such as counterfeit perfume can pose a significant public health risk when hazardous materials are used to manufacture such products."
Frison, of Town and Country, MO, was indicted by a federal grand jury on one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting copyright infringement and one felony count of trafficking counterfeit goods. The indictment was returned on June 12, but remained sealed until the defendant turned himself in to authorities earlier today.
If convicted, the conspiracy and copyright infringement charges each carry a maximum penalty of five years in prison and/or fines up to $250,000 and trafficking in counterfeit goods carries a maximum of 10 years in prison and/or fines up to $2,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant United States Attorneys John Bodenhausen and Jennifer Roy are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Oklahoma Man Arrested and Charged with Stealing More Than $2.8 Million in Textbooks from Former EmployerRead the Press Release
NEWARK, N.J. – An Oklahoma man who was previously employed as a textbook salesman at Hoboken-based John Wiley & Sons will appear in court today on charges he stole more than $2.8 million in textbooks from his former employer through an elaborate scheme that involved diverting free educational samples intended for professors, U.S. Attorney Paul J. Fishman announced.
Christopher J. Brock, 44, of Yukon, Okla., was arrested in Tampa, Fla., today by FBI special agents on a criminal Complaint charging him with wire fraud. The defendant is scheduled to have his initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Anthony E. Porcelli in Tampa, Fla., federal court.
According to the Complaint unsealed today in Newark federal court:
Christopher J. Brock executed a scheme to defraud his former employer, John Wiley & Sons (Wiley), out of more than $2.8 million worth of textbooks.
Wiley is based in Hoboken, N.J., and is one of the largest publishers of technical writing in the world, with an estimated market value of approximately $3 billion. A portion of Wiley’s publications are collegiate textbooks, which are distributed to schools and universities that accept them into their curricula. Co-existing with Wiley’s retailers are resellers of used or unwanted books that buy and sell directly to students.
Brock lived in Oklahoma and was employed by Wiley, first as a higher education publishing representative, and most recently as a district sales supervisor based in Oklahoma.
Brock accessed the corporate systems of Wiley – including computers located in New Jersey – and diverted to himself more than 16,000 textbooks and other items he fraudulently designated as free educational samples.
To avoid detection in an internal review of his employee records, Brock designated both actual and fabricated professors as the purported recipients of the items and listed his own home address and other addresses that he controlled as alternate shipping addresses for those professors, directing that the books be shipped to those addresses. This made it appear in the records of Wiley that the free education samples were legitimately going to professors when, in reality, they were being sent to Brock.
Once Brock received the diverted textbooks he sold them to resellers and received payment through PayPal accounts that he controlled. PayPal, in turn, would deposit the funds into bank accounts that Brock controlled. Brock caused an approximate loss to Wiley of more than $2.8 million. The money that Brock earned as a result of the scheme was largely used for personal expenditures, including, among other things, high-end home furnishings and scuba diving equipment.
The wire fraud count with which Brock is charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation. U.S. Attorney Fishman also thanked John Wiley & Sons for its cooperation and assistance with the investigation.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Brock, Christopher Complaint
New Jersey Man Sentenced to Prison for Lying to Terrorism InvestigatorsRead the Press Release
NEWARK, N.J. – A Bayonne, N.J., man was sentenced today to 18 months in prison for lying to officials investigating Mohamed Alessa and Carlos E. Almonte – who were subsequently convicted of a conspiracy to travel from New Jersey to kill on behalf of a terrorist group in Somalia – U.S. Attorney Paul J. Fishman announced.
Mohamed Osman, 21, previously pleaded guilty before U.S. District Judge Dickinson R. Debevoise to making materially false statements to investigators in a matter involving international terrorism.
According to documents filed and statements made in Newark federal court:
During a June 2010 interview with members of the FBI’s Joint Terrorism Task Force (JTTF), Osman falsely denied knowing about Alessa and Almonte’s plans to travel to Somalia to fight against government and multinational peacekeeping forces there.
Among other things, Osman specifically admitted that he had learned about Alessa and Almonte’s ideology and beliefs during their interactions, and that he had heard Alessa say he would start killing in the United States if he was unable to do it abroad. Osman also admitted that he willfully lied to investigators after being informed that they were conducting an international terrorism investigation and that it was against the law to make false statements during the interview.In addition to the prison term, Judge Debevoise ordered Osman to serve three years of supervised release.
U.S. Attorney Fishman praised the outstanding work of the FBI; members of the Newark JTTF, including the New Jersey State Police; and the New York City Police Department in the investigation.
The government is represented by Andrew Kogan, Chief, and Assistant U.S. Attorney L. Judson Welle of the United States Attorney’s Office National Security Unit in Newark.
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Defense counsel: Stacy Ann Biancamano Esq., West Orange, N.J.New Jersey Husband and Wife Tax Preparers Charged with Tax Fraud, Wife ArrestedRead the Press Release
NEWARK, N.J. – A tax preparer was arrested this morning at her Union, N.J., home for allegedly teaming up with her tax preparer husband to get unearned tax refunds for their clients to make extra money for themselves, U.S. Attorney Paul J. Fishman announced.
Special agents of IRS-Criminal Investigation (IRS-CI) arrested Carol Johnson, 42, on an indictment charging her and her husband, Courtney Johnson, 43, each with one count of conspiracy to defraud the United States and six counts of assisting in the preparation of fraudulent tax returns. Courtney Johnson remains at large. The pair operated tax preparation businesses in South Orange and Jersey City, N.J., through which they allegedly committed crimes resulting in tax losses of nearly $400,000.
Carol Johnson is expected to appear this afternoonbefore U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the indictment unsealed today:
From tax years 2005 through 2007, the Johnsons sought to generate increased referrals, enhance their business and enrich themselves by preparing and filing income tax returns that were based on false information for the purpose of generating tax refunds.
To do this, the Johnsons routinely used a number of fraudulent practices, including falsely claiming a filer was a “head of household”; inventing and inflating deductions; creating fictitious businesses with bogus incomes and losses; and creating false credits for education, childcare and moving expenses.
Although taxpayers generally met with one of the defendants to provide information to prepare their tax returns, it was routinely the other defendant whose name appeared as preparer of the return.
On several occasions, the defendants stole part of the refunds by issuing Santa Barbara Bank cashier’s checks payable to their clients, forging the client’s signatures and depositing the checks into a bank account they controlled.
On at least one occasion, the Johnsons filed two federal income tax returns for the same year for the same client, providing a copy of the return with a several-hundred-dollar refund to the taxpayer and a copy with a several-thousand-dollar refund to the IRS.
The bogus returns resulted in a tax loss of nearly $400,000.
The conspiracy charge carries a maximum potential penalty of five years in prison. Each false tax return count carries a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-CI, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.
The government is represented by Assistant U.S. Attorney Lorraine Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:Carol Johnson: Leslie Sinemus Esq., South Orange
Johnson, Courtney and Carol Indictment
Memphis Man Sentenced to 27 Years in Prison for Heroin DistributionRead the Press Release
Memphis, TN – Harold McDuffie, 49, of Memphis was sentenced yesterday by Chief U.S. District Judge Jon P. McCalla to 27 years in prison for his role in masterminding a heroin distribution ring, announced U.S. Attorney Edward L. Stanton III.
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According to facts revealed during sentencing, McDuffie was one of the principal organizers of a heroin trafficking organization based in the Hyde Park area of Memphis. After the heroin was brought into the city from Chicago, McDuffie was responsible for identifying and organizing stash houses in the neighborhood where drugs were stored.
Before his indictment in May 2012, McDuffie conspired to distribute and did distribute heroin worth thousands of dollars throughout the area. Testimony during sentencing held McDuffie personally responsible for distributing up to three kilograms of heroin, and the organization for distributing as much as seven kilograms of heroin.
The investigation began as a result of a series of heroin overdose deaths in the Hyde Park area. McDuffie pleaded guilty on November 7, 2012, to one count of conspiracy to distribute heroin and one count of heroin distribution. In addition to the prison sentence, Chief Judge McCalla ordered McDuffie to serve eight years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Daniel French represented the government.
This case was prosecuted under the authority of the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Massachusetts Man Pleads Guilty to Human Trafficking and Production of Child PornographyRead the Press Release
Jackson, Miss - Jemery Hodges, 26, a Jackson native residing in Cambridge, Massachusetts, pled guilty in federal court today to human trafficking of a minor child and the production of child pornography, announced U.S. Attorney Gregory K. Davis and Raymond R. Parmer, Jr., Special Agent in Charge of ICE Homeland Security Investigations in New Orleans.
At today’s hearing, Hodges admitted that he traveled to Mississippi for the purpose of engaging in sexual intercourse with a child under the age of 10 years old. Hodges also admitted that he produced videos of himself engaging in sexually explicit conduct with the child.
The investigation of this case began when the Cambridge, Massachusetts Police Department received information about illegal sexual activities conducted in Mississippi and the production of videos depicting sexual intercourse with a child. The Cambridge Police Department contacted the Department of Homeland Security (“HSI”) in Atlanta who worked with HSI in Jackson to conduct the investigation leading to the identity of the minor child in the videos. Assistant U.S. Attorney Glenda Haynes is prosecuting the case.
“The sexual abuse of children is absolutely horrific,” said United States Attorney Gregory K. Davis, “I commend the law enforcement agents who worked tirelessly on the investigation of this case. We will continue to aggressively prosecute offenders who victimize innocent children.”
“Today’s guilty plea results from a monumental effort by HSI and its law enforcement partners to identify and rescue an innocent child from unspeakable abuse,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. “Sexual predators destroy lives and pose a threat to children everywhere. HSI will continue to investigate and seek prosecution of these dangerous criminals to make our communities a safer place.” Parmer oversees a five-state region including Alabama, Arkansas, Louisiana, Mississippi and Tennessee.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Martin Man Found Guilty of Distribution of MorphineRead the Press Release
United States Attorney Brendan V. Johnson announced that on June 20, 2013, Alex Lee Salway, age 54, of Martin, South Dakota was found guilty by a federal jury in U.S. District Court on two counts of Distribution of a Controlled Substance
Each charge carries a maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, or both.
Salway was indicted by a federal grand jury on June 19, 2012 as part of Operation Prairie Pharm, a controlled substance investigation that resulted in 12 individuals being indicted for drug distribution offenses in Bennett County.
The charges against Salway stem from him selling and distributing morphine pills, within 1,000 feet of a public elementary school in Martin, on two separate occasions on January 27, 2012.
This case was investigated by the South Dakota Division of Criminal Investigation, the Bureau of Indian Affairs Office of Justice Services, the Martin Police Department, and the Northern Plains Safe Trails Drug Enforcement Task Force. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Salway remains in the custody of the U.S. Marshal. A sentencing date has not been set.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of Florida Man in Connection with $8 Million Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced today that SETH BEOKU BETTS, a principal of Betts and Gambles Global Equities, LLC (“Betts and Gambles”), was arrested today on the charge of wire fraud for operating a scheme to defraud a public university (the “University”) in the Midwest of more than $8 million. BETTS is alleged to have solicited the money from the University for the purposes of trading in collateralized mortgage obligations (“CMOs”). He then misappropriated the funds, including at least $2 million to purchase luxury automobiles and a personal residence in Florida. BETTS was arrested in Durham, North Carolina this morning, and is expected to be presented in federal court in the Eastern District of North Carolina, Western Division, this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the main investment Seth Betts made was in himself. He induced a public university to make a large investment on which he promised a quick, safe return, but instead he pocketed the university’s money to buy luxury cars, property and to fund other expenses, delivering a full-fledged fraud as the university’s only return, as described in the complaint. With his arrest, this Office continues its work to hold financial professionals accountable for cheating investors.”
FBI Assistant Director-in-Charge George Venizelos said: “Seth Betts allegedly committed the most brazen form of investment fraud. Worse than misrepresenting how he would invest the University’s money, Betts made few investments at all – other than in luxury goods for himself. You can’t take someone’s money to invest in mortgages and spend it on Maseratis.”
According to a Complaint unsealed today in Manhattan federal court:
Between July 2008 and December 2008, BETTS presented himself to the University as a principal of Betts and Gambles. In that capacity, he solicited the University’s investment in CMOs, which he would then sell to third-party buyers in short order at predicted profits. CMOs are fixed income mortgage-backed securities which permit investment in different tranches based upon the maturity of the underlying mortgages. As a result of his solicitation, the University invested approximately $8.165 million dollars of the University’s money with BETTS.
BETTS misappropriated the money and never delivered any CMOs to the University or returned any funds. For example, on December 10, 2008, BETTS transferred $325,000 of the University’s investment money to a car dealership for the purchase of a Ferrari automobile and a Maserati automobile. Approximately one week later, he transferred $1,545,000 of the University’s investment money to an attorney trust account in connection with his purchase of a personal residence in Florida. BETTS also spent at least $455,000 on additional personal expenses, including more than $150,000 in additional payments to car dealerships.
BETTS, 37, of Boynton Beach, Florida, is charged with one count of wire fraud. The charge carries a maximum sentence of 20 years in prison, or twice the gross gain or loss from the offense.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney's Office and the FBI, which jointly investigated this case.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Michael A. Levy and Telemachus P. Kasulis are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Betts, Seth Complaint
Macandrews & Forbes Holdings Inc. to Pay $720,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
MacAndrews & Forbes Holdings Inc. will pay a $720,000 civil penalty to settle charges that the company violated premerger reporting and waiting requirements when it acquired voting securities of Scientific Games Corporation, the Department of Justice announced today.
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against MacAndrews & Forbes for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
MacAndrews & Forbes is a holding company based in New York and is wholly-owned by Ronald O. Perelman. Scientific Games is a New York-based provider of lottery and gaming services.
According to the complaint, MacAndrews & Forbes failed to comply with the antitrust premerger notification requirements of the HSR Act before acquiring voting securities of Scientific Games in June 2012. As a result of these acquisitions, MacAndrews & Forbes held Scientific Games voting securities in excess of $68.2 million, the HSR reporting threshold then in effect. Although certain stock acquisitions relating to a previous HSR Act notification are exempt from additional notice and waiting requirements, MacAndrews & Forbes’ June 2012 acquisitions of Scientific Games voting securities fell outside of the five-year time period for that exemption.
The Hart-Scott-Rodino Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements on individuals and companies over a certain size before they consummate acquisitions resulting in holding stock or assets above a certain value, which was $68.2 million in 2012 and is currently $70.9 million.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
Local Man Sentenced in Nationwide Fraud SchemeTargeting Prisoners and Their FamiliesRead the Press Release
A Yale, Michigan man was sentenced to 240 months’ imprisonment today on convictions pertaining to a mail fraud scheme that defrauded thousands of prisoners and their families across the country, United States Attorney Barbara McQuade announced today. McQuade was joined in the announcement by Postal Inspector in Charge E.C. Woodson, U.S. Postal Inspection Service, Detroit Division and Special Agent in Charge Erick Martinez, Internal Revenue Service, Criminal Investigation.
John Wilson, age 57 of Yale, Michigan, pleaded guilty last December to devising and executing a scheme to defraud and to obtain more than $2.6 million from the family members and friends of defendants incarcerated across the United States. Specifically, John Wilson raised false hopes that Wilson could overturn the convictions or reduce the sentences of the inmates if their friends and family members hired Wilson’s companies.
According to the indictment, John Wilson operated three businesses in Southeastern Michigan: University Legal Services LLC (ULS), University Research Services LLC (URS), and Appellant Research Services LLC (ARS). Co-defendant, Lari Zeka was an employee of ARS and URS. ULS, URS, and ARS sent direct mailings to inmates across the country offering to conduct legal and appellate work on the inmate’s behalf. When a family member or friend telephoned John Wilson or Lari Zeka, they explained that payment was required for two phases: legal research and attorney retainer. Wilson and/or Zeka promised that legal research would be provided during the first phase which would help win the inmate’s appeal. Wilson and/or Zeka promised during the second phase, the “attorney retainer” phase, that an attorney would be provided to assist in the case. These representations by Wilson and Zeka induced people across the United States to mail large amounts of money to URS and ARS, purportedly for appellate research and appellate representation when, in fact, any research provided would not assist the inmate and no attorney would ever be provided to work on the inmate’s appeal.
According to the indictment, Wilson and/or Zeka frequently used fictitious names in correspondence with the victims and both repeatedly represented themselves as attorneys or represented that attorneys were on the staff. Neither Wilson nor Zeka is licensed to practice law and no attorneys were on staff at any of the companies.
Wilson also pleaded guilty to the federal offense of failing to file income tax returns.
United States Attorney Barbara McQuade said, “This fraud scheme preyed upon family members who were desperate to obtain help for loved ones. Not only did this scheme exploit people in need of legal services, but it also denied them access to justice.”
E.C. Woodson US Postal Inspector in Charge said, “Today marks a victory for all who entrust their money to others within the U.S. economy, including individuals who are incarcerated. Postal Inspectors have protected Americans from those who use the U.S. Mail for fraudulent purposes since the passage of the Mail Fraud Statute in 1872. The sentencing of John Henry Wilson demonstrates the Postal Inspection Service's continuing commitment to protect all citizens of the United States.”"Wilson both took advantage of his clients and failed to file his tax returns claiming his income," said IRS Special Agent in Charge Erick Martinez. "He now faces prison time for his actions."
In addition to a sentence of 240 months, the district court ordered over $2 million in a money judgment for the monies he obtained from the victims of his scheme. In a companion civil forfeiture lawsuit, the government has already successfully forfeited a 2003 auto trailer and two vintage Jeeps restored by Wilson with proceeds from the fraud. As part of his plea, Wilson also agreed to abandon thirteen firearms seized from his home.
McQuade congratulated the hard work of the inspectors at the United States Postal Service and the agents at the Criminal Investigations Division of the Internal Revenue Service for their efforts in pursuing this case.
The case was prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen and Assistant U.S. Attorney Margaret Smith. Assistant U.S. Attorney Gjon Juncaj handled the criminal forfeiture allegations and the civil forfeiture action.
Loan Broker Sentenced to over 15 Years in Prison in Conspiracy to Fraudulently Obtain over $100 Million in Sba-backed LoansRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, today to 188 months in prison followed by five years of supervised release for conspiring to commit bank fraud in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Judge Quarles also ordered Park to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“SBA underwriters approved $100 million in business loans brokered by Jade Capital based on fraudulent bank statements, checks, gift letters, resumes and tax returns that made it appear as if the borrowers had invested money in the businesses,” said U.S. Attorney Rod J. Rosenstein. “When borrowers and brokers submit false information and fraudulent documents, the underwriting process is defeated and the taxpayers bear the loss.”
According to his plea agreement, Joon Park and his brother, Loren Park, owned and operated Jade Capital, a loan brokerage company specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the indictment, Joon and Loren Park and others under their direction encouraged prospective borrowers to apply for business loans through an SBA program which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under the program, the principals of the small business seeking the loan were required to invest a certain amount of their own money before they qualified for a loan. The banks and other lenders bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Joon Park admitted that from 2003 until October 2011, he and others under his direction including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashier’s checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.
The Parks charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.
Joon Park also worked with settlement attorney Seung E. Oh, to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, by misrepresenting to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions. In addition to conducting fraudulent closings, Oh wired money to Jade Capital clients to make it appear as though they qualified for loans when they did not, and received, at Joon Park’s direction, loan proceeds to repay those loans.
Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively. Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia, pleaded guilty to conspiracy to commit bank fraud and money laundering, and is scheduled for sentencing on July 9, 2013 at 1:00 p.m.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who prosecuted the case.
Lakewood Oncologist to Pay $3.1 Million to Settle Health Care Fraud ClaimsRead the Press Release
Dr. Alfred H. Chan, an oncologist in Lakewood, Washington, and his family, have agreed to pay the United States $3.1 million to settle allegations that he and his wife defrauded federal health care programs by significantly and repeatedly overbilling for cancer treatment medications. From at least April 2006 through April 2009, the government contends that Dr. Chan and his wife Judy Chan intentionally inflated claims to Medicare, TRICARE, and other federal health care programs, resulting in a loss to the government estimated at over $1 million. Today’s settlement represents a recovery of almost three times the estimated loss to federal health care programs.
“Dr. Chan and Judy Chan blatantly and persistently defrauded the government of more than a million dollars and traded the safety of cancer patients for their own personal gain,” said U.S. Attorney Jenny A. Durkan. “They continue to try to avoid criminal sanctions by remaining outside the U.S. This civil settlement recoups the financial damage they inflicted on taxpayer funded programs.”
The government was alerted to the Chans’ fraud through a “qui tam” or “whistleblower” lawsuit brought under the False Claims Act by one of Dr. Chan’s former employees, Ruth Ruckman. Ms. Ruckman observed that Dr. Chan – with the assistance of his wife, Judy – routinely billed federal healthcare programs for twice (or more) the amount of cancer treatment drugs actually administered to his patients. The couple then destroyed records and falsified patients’ medical records in order to conceal the fraud. Ms. Ruckman provided the government with Dr. Chan’s treatment orders, which showed the actual dosages of drugs administered to certain patients, and the invoices, which showed how much Dr. Chan overbilled for the treatments.
Upon learning of the government’s investigation, the Chans attempted to sell, transfer, and conceal millions of dollars in assets in an ultimately unsuccessful attempt to prevent the government from recovering its overpayments. In February 2011, the Chans fled to Taiwan. A grand jury sitting in the Western District of Washington has returned a criminal indictment against Alfred and Judy Chan relating to their fraudulent conduct.
Pursuant to the False Claims Act, Ms. Ruckman is entitled to share in the government’s recovery and will receive $620,000 of the $3.1 million settlement for exposing the Chans’ fraudulent conduct.
Government agencies supporting and/or participating in the successful resolution of this matter include: the Office of Inspector General of the Department of Health and Human Services; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; the Office of Inspector General of the Office of Personnel Management; the TRICARE Management Activity Office of General Counsel; the Washington State Health Care Authority; and the Washington State Attorney General’s Office.
Keith Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that MATTHEW KEITH, age 36, pled guilty yesterday before Chief United States District Court Judge Brian Jackson to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program.”) KEITH faces a sentence of up to five (5) years imprisonment, three (3) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.
At today’s hearing, KEITH admitted that he owned and operated DMG Holdings, LLC and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures. KEITH admitted, within a nine-day period beginning on June 10, 2009, he conspired with others, including an individual identified only as D.G., to transfer $1,000,000 D.G. received from an investor through four separate film production companies. These transfers created cancelled checks which D.G. later used as false documentation for $4,000,000 of motion picture productions.
The Louisiana Economic Development Office (“LED”) is a state entity which mission is to lead economic development for the State of Louisiana. LED operated the Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”) which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable.
Between June 10, 2009 and March 31, 2010, D.G. applied for, and received, tax credits from the LED for various movies. In total, $4,000,000 of the purported expenditures related to films was based upon the false expenditures created in the scheme described above. The tax credits issued by LED, based upon the false expenditures, totaled $1,200,000. KEITH’s role in the conspiracy resulted in the receipt of improperly obtained tax credits totaling $300,000.
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.
KC Man Indicted for Distributing KhatRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been indicted by a federal grand jury for distributing cathinone, a controlled substance found in graba, a dried form of khat.
Omar Nur, also known as “Juello” or “J’ello,” 29, an American citizen of Somalian nationality, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on June 18, 2013. That indictment was unsealed and made public today upon Nur’s arrest and initial court appearance.
Khat is green leafy plant grown in East Africa, which when consumed (normally by chewing) produces delusions, hallucinations, or feelings of euphoria. In this form it contains cathinone, a controlled substance. When the khat is dried it is commonly referred to as graba and can still test for the presence of cathinone.
The federal indictment alleges that Nur participated in a conspiracy to distribute khat between March 16, 2011 and April 1, 2013. In addition to the conspiracy, Nur is charged with three counts related to distributing khat.
The indictment also contains a forfeiture allegation, which would require Nur to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $50,000, representing income from Nur’s illegal sale and distribution of khat, as well as $20,533 that was seized by law enforcement officers at Nur’s residence.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Settles Complaint Against Vermont Dairy Farm for Improper Medication PracticesRead the Press Release
The United States has filed suit in the U.S. District Court for Vermont against Lawson Farm, Robert Lawson, George R. Lawson, and Lonnie A. Griffin to block them from violating the Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food. The Justice Department filed the suit on behalf of the Food and Drug Administration (FDA).
Defendants Lawson Farm, Robert Lawson, and George R. Lawson have agreed to settle the litigation and be bound by a Consent Decree of Permanent Injunction that enjoins them from committing violations of the FDCA. The proposed consent decree has been filed with the court and is awaiting judicial approval. The lawsuit continues against defendant Lonnie Griffin.
“When farms fail to maintain appropriate controls concerning the medication of food-producing animals, they jeopardize the public health,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “We are committed to making sure food producers have put in place the procedures and documentation necessary to help ensure that consumers receive safe foods for their family table.”
The government’s action results from a series of inspections of the Irasburg, Vermont farm, which revealed, according to the FDA, that the defendants failed to maintain complete treatment records for their animals and that they sold animals for slaughter containing excessive and illegal drug residues in its edible tissues. The complaint also alleges that the defendants have dispensed prescription new animal drugs on more than one occasion without a lawful order from a veterinarian.
The complaint states that excess drug residues in animal tissues can harm consumers by causing allergic reactions and by contributing to the spread of antibiotic-resistant bacteria. Both FDA and the U.S. Department of Agriculture (USDA) have warned the defendants that their conduct violates the FDCA. Nonetheless, according to the complaint, the most recent FDA inspection, concluded in August 2012, documented the continuing nature of the defendants’ violations, and established their responsibility for illegal drug residues found in edible tissues sampled by USDA.
The government’s complaint asserts that the defendants have introduced adulterated food into interstate commerce, caused new animal drugs to become misbranded and adulterated while held for sale after shipment in interstate commerce, and failed to comply with statutory and regulatory requirements concerning the extra-label use of new animal drugs.
The FDA referred the case to the Department of Justice. The matter was filed by the Department of Justice’s Consumer Protection Branch, the U.S. Attorney’s Office for the District of Vermont, and FDA’s Office of the General Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Jury Finds Davenport Man Guilty of Conspiracy to Distribute More Than 100 Grams of HeroinRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that a federal jury found Henry Negron (59, Davenport) guilty of conspiracy to possess with intent to distribute over 100 grams of heroin and four counts of possession and distribution of heroin. He faces a maximum penalty of 40 years on the conspiracy count and up to 20 years on each of the possession and distribution counts. Negron’s sentencing hearing is scheduled for September 16, 2013, before Senior U.S. District Judge Gregory A. Presnell. Negron was indicted on February 27, 2013.
According to evidence presented at trial, from October 12, 2012, through January 28, 2013, Negron was part of a heroin distribution conspiracy based out of Osceola County. On four separate dates, Negron worked with a co-conspirator to sell more than 100 grams of heroin to an undercover agent who was posing as a drug dealer. During the conspiracy, Negron drove his co-conspirator to all four heroin deals. On one occasion, he stored more than four ounces of heroin in his vehicle. He also participated in a phone conversation with the undercover agent leading to one of the deals.
This case was investigated by the Drug Enforcement Administration and the Osceola County Investigative Bureau. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and E. Jackson Boggs.
Jefferson County Woman Pleads Guilty in Meth Distribution SchemeRead the Press Release
PITTSBURGH - A Jefferson County resident pleaded guilty in federal court to a charge of violating the federal drug laws, United States Attorney David J. Hickton announced today.
Tina Smith, 43, of Brookville, Pa., pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between 2010 and September 2011 Smith was a distributer of methamphetamine for a drug conspiracy centered in the Jefferson County area, around Brookville and DuBois. Her supplier was Joshua Shaffer of Florida, who provided several pounds of methamphetamine and thousands of oxycodone tablets to the other eight members of the conspiracy.
Four members of the conspiracy have now pleaded guilty, with five other alleged conspirators awaiting trial.
Judge Cercone scheduled sentencing for Nov. 1, 2013. The law provides for a total sentence of not more than 20 years, a fine of not more than $1, 000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation that led to the prosecution of Tina Smith.
James D. Acfalle Sentenced to 100 Months ImprisonmentRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that JAMES D. ACFALLE, age 39, was sentenced today, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to 100 months (8 years and four months) imprisonment with credit for time served and five years supervised release upon his release from prison, for the offense of Conspiracy to Distribute Methamphetamine (Ice).
ACFALLE along with defendant Roland Nauta were charged with conspiracy to distribute methamphetamine. The ice was sent through the U.S. Postal Service. Dogs from Guam Customs and Quarantine alerted on a package sent to Nauta through the U.S. Postal Service. Roland Nauta, age 39, was sentenced on June 7, 2012 to 157 months (13 years and one month) imprisonment with credit for time served and five years supervised release, for the offenses of Conspiracy to Distribute Methamphetamine and Using, Carrying or Possessing a Firearm During and In Relation to a Drug Trafficking Crime.Assistant United States Attorney Clyde Lemons prosecuted the case. The investigation was conducted by Guam Customs and Quarantine, U.S. Postal Service Inspectors, DEA, Superior Court of Guam Probation Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Department of Homeland Security, Homeland Security Investigations.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on June 19, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
JOSHUA HAMPTON MURPHY, a 29-year-old resident of Flint, Michigan, appeared on charges of conspiracy to distribute heroin and possession with the intent to distribute heroin. He is currently detained. If convicted of these charges, MURPHY faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine and 4 years supervised release. Assistant U.S. Attorney Timothy J. Racicot is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Missouri River Drug Task Force.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on June 20, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
DONALD WILLIAM FORREST, a 51-year-old resident of Butte, appeared on a charge of possession with the intent to distribute methamphetamine. He is currently released on special conditions. If convicted of this charge, FORREST faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Bryan R. Whittaker is the prosecutor for the United States. The investigation was a cooperative effort between the Montana Division of Criminal Investigation and the Drug Enforcement Administration.
The defendant pled not guilty to the charge.
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.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on June 20, 2013:
Subir Maitra, 73, of Chicago, Illinois, was charged with health care fraud and forfeiture.This charge was filed as the result of an investigation by the Federal Bureau of Investigation and the Department of Labor.This case has been assigned to and will be prosecuted by Assistant United States Attorney Diane Berkowitz.
David Alan Resnick, 33, of Lucie, Florida, was charged with aggravated sexual abuse of a minor, transportation of child pornography, brandishment of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm.This charge was filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Hermitage Man Pleads Guilty ToDistribution of Child PornographyRead the Press Release
William John Patterson, 41, of Hermitage, Tennessee pleaded guilty yesterday in U.S. District Court in Nashville to distribution of child pornography, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
According to the plea agreement and other statements made during the hearing yesterday, on September 9, 2012, police were called to the home of William John Patterson in Hermitage, Tennessee, after receiving a report that Patterson had engaged in domestic violence, had sold and used drugs, and was in possession of child pornography. Responding law enforcement officers from the Metropolitan Nashville Police Department obtained and executed search warrants for Patterson’s home and mobile phone. Analysis of the electronic equipment revealed that Patterson had obtained 7,300 images and approximately 300 videos depicting the sexual exploitation of minor children and many of the files were located in hidden or unexpected places on the computer.
The examination further revealed that Patterson had been receiving such images since October 2009. The collection predominately consisted of very young girls engaged in sexual activity, including toddlers and very young children being raped and tortured by a variety of methods.
Patterson was subsequently indicted by a federal grand jury on November 14, 2012.
Patterson faces a maximum sentence of 20 years in prison. A first offense of distribution of child pornography carries a minimum mandatory sentence of five years in prison. Patterson is scheduled for sentencing before U.S. District Court Judge Kevin H. Sharp, on September 23, 2013, at 3:30 p.m.
This matter was investigated by the Metropolitan Nashville Police Department, the Dickson County Sheriff’s Office, and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.Heather Louise Manyen Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 20, 2013, before U.S. District Judge Sam E. Haddon, HEATHER LOUISE MANYEN, a 32-year-old resident of Laurel, was sentenced to a term of:
Prison: 34 months
Special Assessment: $100
Community Service: 400 hours
Supervised Release: 5 years
MANYEN was sentenced in connection with her guilty plea to conspiracy to possess methamphetamine with intent to distribute and distribution.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M., D.M. and A.H. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. C.M., D.M. and A.H., had several distributors that sold the methamphetamine for the organization. One of the distributors was Julie Rozell. Rozell admitted to distributing approximately four pounds of methamphetamine for the organization. One of her distributors was HEATHER MANYEN.
During the investigation law enforcement learned that HEATHER MANYEN was a distributor of methamphetamine for Rozell from approximately March 2011, and continuing thereafter until late January 2012. HEATHER MANYEN worked with Frank Manyen to distribute the methamphetamine obtained from Rozell. HEATHER MANYEN and Frank Manyen together distributed the methamphetamine they obtained from Rozell in the greater Billings area. HEATHER MANYEN and Frank Manyen obtained approximately 700 grams of methamphetamine from Rozell, which they in turn distributed to their own customers.
Frank Manyen and Julie Rozell pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MANYEN will likely serve all of the time imposed by the court. In the federal system, MANYEN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force and High Intensity Drug Trafficking Area (HIDTA) Task Force.
Halethorpe Man Sentenced to 7 Years in Prison for Possession, Receipt and Transportation of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Alan Clifton, age 27, of Halethorpe, Maryland, today to 7 years in prison, followed by 30 years of supervised release, for possession, receipt and transportation of child pornography. Judge Bennett ordered that upon his release from prison Clifton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his four day trial, Clifton used a file sharing program to share images of child pornography. On October 11, 2011, an undercover detective downloaded three videos depicting minors engaged in sexually explicit conduct from Clifton’s files. A search warrant was subsequently executed at Clifton’s residence by the Baltimore County Police Department Crimes Against Children Unit and officers seized Clifton's laptop computer, which was found in his bedroom, another computer, an external hard disk drive, and other digital media. An on-scene forensic scan of Clifton's laptop computer revealed images of child pornography. A subsequent forensic examination of the external hard drive recovered 3700 files of child pornography, including the three videos that had been downloaded by the undercover detective.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Peter J. Martinez, who prosecuted the case.
HOUSTON Man Arrested in Health Care Fraud SchemeRead the Press Release
HOUSTON – Mathew U. Okorocha, 63, has been indicted on charges of conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today. Okorocha, of Houston, joins Lawrence T. Tyler, 41, also of Houston, in a 10-count superseding indictment, returned June 12, 2013.
Okorocha is expected to make an initial appearance this afternoon.
The indictment alleges Okorocha sold medical equipment through his company called KC International in Houston. He allegedly created false invoices to assist Tyler in order for his durable medical equipment company to pass its Medicare inspection. In May 2008, Medicare sought invoices from Tyler to verify medical equipment billings to Medicare, according to the indictment. Okorocha allegedly helped create false invoices reflecting more than $300,000 in purchases of orthotic equipment – back, knee, elbow, wrist and ankle braces. Tyler sent these invoices to Medicare twice – in June 2008 and again in December 2008 – in an effort to keep his billing number, according to the indictment. Medicare revoked Tyler at the end of December 2008.
The indictment alleges that from 2007 to 2009, Tyler falsely billed Medicare and Medicaid for so-called “ortho kits” which consisted of assorted braces. Tyler allegedly billed for equipment that was never delivered, billed for equipment using prescriptions from a physician who never treated the patients and up coded - billed for a higher reimbursed brace but delivered a cheaper brace that either did not fit the billing code or did not qualify for any Medicare reimbursement. In addition, as part of the conspiracy, the indictment alleges Tyler paid a marketer for patient billing information, a violation of the federal anti-kickback statute.
Tyler, under the company name, 1866ICPAYDAY.COM LLC, allegedly billed Medicare and Medicaid approximately $2.3 million and was paid approximately $1.4 million.
If convicted, both face up to five years in prison and a possible $250,000 fine.
The charges are the result of the investigative efforts of the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations and the United States Attorney’s Office. Special Assistant United States Attorneys Suzanne Bradley and Adrienne Frazior are prosecuting the case.An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Franklin County Dance Instructor Sentenced to 274 Months and Lifetime Supervised Release in Child Pornography CaseRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today BRUCE ARTHUR HOWARD, 55, was sentenced by Federal District Court Judge Louise W. Flanagan to 274 months imprisonment and lifetime supervised release for receipt of child pornography. HOWARD had been convicted of Taking Indecent Liberties With A Child in Forsyth County in a separate case in 1987. Prior to his arrest, HOWARD had been employed as a dance instructor in multiple studios, including studios in Zebulon, Wilson, and Knightdale.
The North Carolina State Bureau of Investigation developed a lead in August of 2011 that an individual in Louisburg, North Carolina was sharing child pornography over the Internet. The crime was traced to the defendant’s residence, where detectives executed a search warrant in October 2011 and found numerous images and videos of child pornography. Subsequent forensic examination demonstrated that HOWARD’s collection included images depicting the sexual abuse of prepubescent children and the sadistic abuse of children. The investigation further revealed that the defendant had induced a child to create and send pornographic images of the child to the defendant, and had engaged the child in a discussion about engaging in sex acts. Notwithstanding his prior sex offense, HOWARD was not required to register as a sex offender.
“This case is an excellent illustration of the strong connection between child pornography crimes and the sexual abuse of children,” said U.S. Attorney Thomas G. Walker. “Child pornography crimes represent a grave danger, both direct and indirect, to the children in our community. We will continue to make a priority of combating crimes that exploit and abuse children.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation with the assistance of the Franklin County Sheriff’s Office. Prosecution was coordinated with the Franklin County District Attorney’s Office. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Four Charged in Multi-Million Dollar Ponzi SchemeRead the Press Release
MOBILE, AL - United States Attorney Kenyen R. Brown announces today that Yaman Sencan, David Petersen, Stephen Merry and Timothy Durkin were indicted on May 29, 2013 for the roles in a multi-million dollar Ponzi scheme. The indictment was unsealed today.
The indictment charges that the defendants conspired to operate a nationwide Ponzi scheme, with several victim investors in Mobile and Baldwin County, Alabama. According to the indictment, the defendants falsely represented to the investors, among other things, that: they had developed a high speed, computerized arbitrage trading system that was designed to take of advantage of, and profit from, stock price differentials among different markets; a billionaire real estate mogul in New York financially backed the system; there was little, if any, risk of losing money in the arbitrage system; any trading losses, in the rare event they occurred, would be capped at $5,000; and they could withdraw their principal and earned income at any time.
In actuality, although the real estate developer had a prior business relationship with one of the defendants, he did not financially support, nor was he associated with, the defendants’ purported investment system. Further, the funds were not invested as promised. In fact, once the investors wired their funds to participate in the investment system, they were quickly diverted by the defendants to make Ponzi payments to other investors or converted to their personal use. Despite that, each week the defendants sent account statements to the investors falsely representing that their funds were being invested and that they were recognizing a continual profit regardless of market conditions. At one point, many investors unexpectedly requested the return of their funds. In response, the defendants repeatedly stalled these requests by claiming that the funds could not be returned until a purported sale of the system to another investment group could be completed. To this date, no such sale has been finalized, and no investors have received the return of their funds.
All defendants are charged with one count of conspiracy to commit securities and wire fraud, under 18 U.S.C. § 371, one count of substantive securities fraud, under 15 U.S.C. § 77q, and 18 counts of wire fraud, under 18 U.S.C. § 1343. The maximum terms of imprisonment for these charges range from five to 20 years.
The indictment also includes a forfeiture notice seeking a $4.9 million money judgment against the defendants, which represents the total amount of funds invested in the Ponzi scheme.
The case is being investigated by the Federal Bureau of Investigation and the Alabama Securities Commission. Assistant United States Attorneys Adam W. Overstreet and Gregory A. Bordenkircker and will prosecute the case for the United States. As in all criminal cases, the indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by the defendants. The defendants, of course, are presumed innocent until and unless they are proven guilty at trial.
Former Union Officers Sentenced to PrisonRead the Press Release
A former President and Secretary-Treasurer of Communication Workers Local 84555 in Webberville have been sentenced to prison for embezzling union funds, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by District Director Ian Burg, Office of Labor-Management Standards of the United States Department of Labor.
U.S. District Judge Gershwin A. Drain sentenced former union President James Killingsworth, 40, of Webberville, and Billie Jo Killingsworth, 42, of Williamston, to six months’ imprisonment restitution of $19,197.02. Judge Drain emphasized that the money had been embezzled from the defendants’ fellow union members. The defendants were married at the time of the offense, but have since divorced.
Both defendants pleaded guilty on February 21, 2013. As part of their plea agreements, they admitted that between January 30, 2008 and June 21, 2010 they had cooperated in embezzling the money by making cash withdrawals from the local’s bank account and using it for their personal expenses.
“Labor union officials who steal from the workers they are entrusted to represent will be held accountable for their actions,” McQuade said.
The case was investigated by the Office of Labor-Management Standards of the United States Department of Labor.
Former Lt. Governor’s Sentence Increased to 108 MonthsRead the Press Release
Saipan, MP – United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on June 12, 2013, following a successful appeal by the United States, Timothy P. Villagomez, former Lieutenant Governor of the Commonwealth of the Northern Mariana Islands, was re-sentenced to a term of imprisonment of 108 months on corruption charges. Mr. Villagomez had initially been sentenced to 87 months in prison.
The bribery and fraud charges related to the purchase by the Commonwealth Utilities Corporation of a chemical -- at a 400% mark-up -- from companies owned by Mr. Villagomez’s sister and brother-in- law, co-defendants James and Joaquina Santos. The scheme resulted in a loss of $346,125 and extended over ten years, beginning when Mr. Villagomez was executive director of the utility, and lasting through
2007, when he was Lieutenant Governor of the CNMI, exercising de facto control over the utility. The sentence is the result of a guilty verdict returned on April 24, 2009, after a 19-day jury trial. Mr. Villagomez received an original sentence of 87 months. He unsuccessfully appealed his conviction. The United States cross-appealed, arguing that his sentencing range should be enhanced because the offense involved corruption by an elected public official or other public official in a high-level decision-making position. The Court of Appeals agreed and remanded the case to the district court for re- sentencing. On remand the district court applied the enhancement and increased Mr. Villagomez’s sentence to 108 months. Upon completion of his term of imprisonment, the defendant will be subject to a three-year term of supervised release.Mr. Villagomez, along with his co-defendants, is jointly and severally liable for restitution in the amount of $346,125, which is to be paid to the Commonwealth Utilities Corporation. The case was prosecuted by Assistant U.S. Attorney Eric O’Malley and First Assistant U.S. Attorney Jeff Strand and investigated by the Federal Bureau of Investigation. The CNMI Office of the Public Auditor assisted in the investigation. Assistant U.S. Attorney Ross Naughton handled the re-sentencing.
Former Jasper County Official Sentenced for Document FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former public administrator of Jasper County, Mo., was sentenced in federal court today for document fraud, which was part of a scheme in which she illegally obtained federal benefits for her public wards.
Rita Frances Hunter, 60, of Joplin, Mo., was sentenced by U.S. District Judge Dean Whipple to 12 months and a day in federal prison without parole. The court also ordered Hunter to pay $120,000 in restitution to the Department of Health and Human Services. Hunter must report on Aug. 1, 2013 to begin serving her prison sentence.
“This elected official betrayed the public trust and defrauded the government,” Dickinson said. “The citizens of Jasper County deserve to have honest public servants who fulfill their civic obligations lawfully, and in this case, they deserved better.”
Hunter, who pleaded guilty to document fraud on Nov. 6, 2012, was the elected Public Administrator for Jasper County from Jan. 1, 2005, to Dec. 31, 2008.
Hunter admitted that her scheme involved a total fraud of $70,000 to $120,000. Hunter directed her employees to submit materially false Medicaid applications for wards of the state who were under the custody of the Public Administrator=s office. These applications falsely stated that the wards had assets below the $1,000 threshold to be eligible to receive Medicaid benefits, when in fact, the wards had more than $1,000 in assets.
Hunter specifically pleaded guilty to directing her staff to prepare a fraudulent Medicaid eligibility statement for a ward identified only as T.V. Hunter knew the statement, which was submitted to Missouri Health Net on Aug. 6, 2008, contained false information. The written statement in the document indicated that T.V. had a total bank account balance of $827.27, when in fact, T.V. had funds totaling $6,919. This false statement was made on this document to ensure that T.V. would meet the monetary threshold (no more than $1,000) imposed by Medicaid, and was material to Medicaid’s determination that T.V. was eligible for Medicaid benefits.
Hunter caused this statement to be stamped with her signature verifying that it was true, when in fact it was false. Hunter instructed her employees to fabricate T.V.’s bank statements to ensure T.V. would qualify for Medicaid benefits, when she was, in fact, not eligible.
The court also considered additional criminal conduct in which Hunter engaged in calculating today’s sentence.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the U.S. Department of Health and Human Services, the U.S. Social Security Administration, the FBI, the Missouri State Highway Patrol and the Missouri Department of Social Services Legal Investigation Section.
Former Boxing Champ Indicted for Robbing Six Banks in the East BayRead the Press Release
OAKLAND, Calif. - A federal grand jury in Oakland indicted James Quindale Page today with six counts of bank robbery, announced United States Attorney Melinda Haag.
The indictment alleges that James Quindale Page, 42, of Pittsburg, robbed the following banks:
Date
Bank
Location
Amount Stolen
3/6/2013
Chase Bank
1510 Palos Verdes Mall, Walnut Creek
$1,856
3/12/2013
Wells Fargo
4767 Hopyard Road, Pleasanton
$670
5/29/2013
Bank of America
2545 Main Street, Oakley
$1,507
6/3/2013
Chase
5747 Christie Avenue, Emeryville
$7,033
6/7/2013
US Bank
3636 Lone Tree Way, Antioch
$1,280
6/8/2013
Wells Fargo
3525 Mount Diablo Boulevard, Lafayette
$5,450
Page was arrested on June 10, 2013, and made his initial appearance in federal court in Oakland on June 13, 2013. Page is currently in custody. His next scheduled appearance is at 9:30 a.m. on June 27, 2013, for arraignment on the indictment before U.S. Magistrate Judge Donna M. Ryu.
The maximum statutory penalty for each count of bank robbery in violation of 18 U.S.C. § 2113(a) is 20 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI, the Walnut Creek Police Department, the Pleasanton Police Department, the Antioch Police Department, the Oakley Police Department, the Emeryville Police Department, and the Lafayette Police Department.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Page must be presumed innocent unless and until proven guilty.
(Page Complaint )
(Page Indictment )
Former Background Investigator for Federal Government Pleads Guilty to Making A False StatementRead the Press Release
WASHINGTON – Ramon S. Davila, 59, a former background investigator under contract with the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Davila, of Fredericksted, St. Croix, U.S. Virgin Islands, pled guilty in the U.S. District Court for the District of Columbia to making a false statement. The Honorable Chief Judge Royce C. Lamberth scheduled sentencing for Sept. 3, 2013, before Judge Amy Berman Jackson. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000. As part of his plea agreement, Davila must pay $79,468 in restitution to the federal government.
According to a statement of offense submitted to the Court, Davila worked for three contractors that did federal background investigations on behalf of OPM’s Federal Investigative Services.
Between August 2006 and August 2007, in multiple Reports of Investigations on background investigations, Davila represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. His reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances.
Davila’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $79,468 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia in the last four years involving false representations by background investigators and record checkers working on federal background investigations. In addition to Davila, 15 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.1 million investigations during the 2012 fiscal year. More than 770,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the plea, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Special Agents Nunzio Orlando, OPM, Office of the Inspector General, and Philip Kroop and David Newcomer, OPM, Federal Investigative Services. Mr. Machen and Mr. McFarland also acknowledged the work of Paralegal Specialist Diane Hayes, Assistant U.S. Attorneys Ellen Chubin Epstein and Maia L. Miller, and former Assistant U.S. Attorney Mary Chris Dobbie, who investigated and prosecuted this matter.
13-217Florida Man, George W. Potter, Indicted for Distribution of Child PornographyRead the Press Release
GEORGE W. POTTER, 27, of Navarre, Florida, was indicted by a federal grand jury today for crimes involving the sexual exploitation of children, announced U. S. Attorney Dana J. Boente.
POTTER was charged in an Indictment for Distribution of Child Pornography. According to today’s indictment, on January 6, 2012, POTTER distributed images of child pornography through the use of a computer.
If convicted, POTTER faces a mandatory minimum penalty of five years and a maximum penalty of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine. In addition, POTTER will likely be required to register as a sex offender.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by special agents from the U. S. Department of Homeland Security, HSI. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
Florida Man Convicted on All 11 Counts Related to Scheme to Defraud Navy Federal Credit UnionRead the Press Release
ALEXANDRIA, Va. – Michael Wellington Logan, 52, of Clermont, Fl., was convicted late yesterday by a federal jury on all 11 counts with which he was charged including conspiracy, wire fraud, and money laundering.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director of FBI’s Washington Field Office, made the announcement after the jury's verdict was accepted by United States District Judge Liam O’Grady.
Logan faces a maximum penalty of thirty years on each count of conspiracy and wire fraud, and ten years on each money laundering count when he is sentenced on September 20, 2013.
Logan was indicted on March 27, 2013, by a federal grand jury in Alexandria, Va. According to court records and evidence adduced at trial, Logan engaged in a brazen scheme to defraud the Navy Federal Credit Union (“NFCU”) in Vienna, Va. Logan worked with co-conspirator Theodric Delur Bingham, 42, of Snellville, Ga., to found a company doing business as “Cash Money Brothers, LLC” to convince unwitting borrowers to apply for loans to obtain purchase mortgages. In advance of the loans from NFCU, Logan filed quit claim deeds to make it appear that borrowers already owned the properties, in order to apply for secondary equity loans instead of purchase mortgage loans, which have stricter requirements. After submitting false membership applications to NFCU, Logan and Bingham also paid NFCU insider Duane Gerarda Nixon, 40, of Dumfries, Va., to push false loan applications to fund the loans. After Logan and Bingham convinced borrowers to turn over loan proceeds, rather than use them to pay the mortgages on the investment properties as promised, Logan used the proceeds to personally enrich himself. In other instances, following approval of the fraudulent loan applications, Logan and his co-conspirators would direct the loaned funds into the Cash Money Brothers’ account without the knowledge of the investment property owners and convert those funds to their own personal use. As a result of the scheme, NFCU lost more than $476,000. Bingham and Nixon had previously been convicted and await sentencing.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Alexander T. H. Nguyen and Lindsay A. Kelly are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Federal Jury in Rhode Island Convicts Indiana Man in Black Money ScamRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence, R.I., on Wednesday convicted Alvin Pennue, 32, of Indianapolis, Ind., with passing altered United States currency on two occasions and inducing a victim to transport $5,000 from Massachusetts to Rhode Island as part of a Black money scam, announced United States Attorney Peter F. Neronha and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the United States Secret Service.
Black money scams are schemes to defraud whereby individuals attempt to obtain money from a victim by persuading that person that large quantities of banknote-sized paper are really U.S. currency that has been dyed black, typically to avoid detection by customs agents. The victim is persuaded, with the prospect of sharing in the proceeds, to supply real currency to purchase supplies and otherwise facilitate a chemical transformation that will remove the black dye covering the supposedly genuine currency. In reality, except for a few genuine currency bills used to advance the scheme, the black money is usually black construction paper.
The government’s evidence, presented to the jury during two days of testimony, showed that during October 2011, Alvin Pennue, through another person, passed to an undercover U.S. Secret Service agent two blackened U.S. $100 bills and passed to a victim two blackened $20 bills. Mr. Pennue persuaded the victim to withdraw $5,000 in $100 bills from his bank account in Massachusetts on October 21, 2011, and to bring that money to Providence to invest in the black money scam.
At the time of his arrest on October 28, 2011, Mr. Pennue and a second person were in possession of a black suitcase containing supplies used to facilitate a black money scam. Mr. Pennue was also in possession of over $2,700, including twenty-three $100 bills.
Alvin Pennue was convicted of two counts of passing altered obligations of the United States and one count of interstate transportation of stolen property - inducing a victim to transport U.S. currency in interstate commerce as part of a scheme to defraud.
Passing altered currency is punishable by up to 20 years in federal prison; up to 5 years supervised release; and up to a $250,000 fine. Inducing interstate transportation of money for fraud is punishable by up to 10 years in federal prison; up to 3 years of supervised release; and up to a $250,000 fine.
Pennue, who was detained following the verdict, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on September 4, 2013.
Arrests warrants have been issued for two co-defendants in this matter, Saah Johnson, 36, of Fall River, Mass., and Anthony Chadheen, 35, of Providence.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose and Special Assistant U.S. Attorney Benjamin S. Towbin.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Providence Police Department, and the Rhode Island State Fire Marshal’s Office assisted the U.S. Secret Service in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Fabio Noel-Rodriguez Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 19, 2013, before U.S. District Judge Sam E. Haddon, FABIO NOEL-RODRIGUEZ, age 37, was sentenced to a term of:
Prison: 148 months
Special Assessment: $ 100
Supervised Release: 5 years
NOEL-RODRIGUEZ was sentenced in connection with his guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On the evening of January 24, 2011, the Yellowstone County Sheriff's Office (YCSO) received a phone call from a desk clerk at a hotel in Lockwood. The desk clerk told law enforcement that a man and woman had just checked into the motel using a stolen driver's license. In a twist of fate, only possible in a state like Montana, the desk clerk was a friend of the woman whose identification was stolen earlier on the same day and recognized the license immediately when it was presented by the female upon check in.
Deputies were sent to the motel and spoke with the desk clerk. The desk clerk provided law enforcement with a copy of the Wyoming ID card used for check-in. The desk clerk also provided law enforcement with a copy of the room registration receipt that showed the vehicle listed as belonging to the male and female that rented the room. The vehicle was listed as having a Florida license plate.
A deputy went to the parking lot and drove through it looking for a Florida license plate. As he approached the rear of the motel the deputy saw a vehicle with a Florida license plate beginning to leave the motel parking lot. There were no other vehicles in the motel parking lot with a Florida license plate. The vehicle was pulled over.
The driver of the car was identified as NOEL-RODRIGUEZ. The passenger was identified as Michelle Steinfeldt. NOEL-RODRIGUEZ was arrested for driving without a driver's license. The car was secured and later a drug sniffing K9 was run around the car. The dog alerted for the odor of narcotics. A search warrant was obtained for the vehicle. Law enforcement found four cellular telephones, two packages containing 266.4 grams of pure methamphetamine, $3,909 in cash, a digital scale with methamphetamine residue, ziploc bags, and a lap top. The cash, the drugs and the digital scale were found in a hidden, false compartment in the vehicle.
Steinfeldt pled guilty to federal charges and has been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that NOEL-RODRIGUEZ will likely serve all of the time imposed by the court. In the federal system, NOEL-RODRIGUEZ does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Employee Pleads Guilty to Theft of Government PropertyRead the Press Release
Misused Her Government Credit Card to Purchase Personal Items
Greenbelt, Maryland – Mary Michelle Thompson, age 42, of Glen Burnie, Maryland, pleaded guilty today to theft of government property in connection with her misuse of her government credit card.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
According to her plea agreement, between January 2010 and February 2012, Thompson was an employee of the Department of Health and Human Services (HHS) and was authorized to use a government credit card to purchase items for official use in her office or by HHS employees in their work.
Thompson admitted that beginning no later than January 2010, she began to buy personal items that were not needed or used for the operations of her office at HHS and were not delivered to or used by HHS personnel. These items included electronics, sporting goods and gift cards to retailers. The total value of the purchases was over $16,000.
In June 2012, an HHS auditor asked Thompson to provide copies of documents supporting some of the purchases made with her government credit card. Thompson submitted forged vendor invoices altered to reflect fictitious legitimate purchases in the amounts of her unauthorized expenditures. When confronted with the discrepancies between her documentation and the documentation obtained directly from the vendors, Thompson claimed that she did not recall receiving or ordering the items. Thompson resigned from HHS shortly thereafter.
A search of her residence on December 18, 2012, recovered many of the person items purchased with her government credit card including a 32GB iPod Touch and iPod accessories, a Blackberry Playbook, a Bose headset, roller skates, pool cues and shoes. The serial number on the iPod Touch recovered from Thompson’s residence matched the serial number on the invoice obtained directly from Apple which showed that it was purchased with Thompson’s government credit card.
Thompson faces a maximum sentence of 10 years in prison and a fine of $250,000. U.S. District Judge Alexander Williams, Jr. has scheduled sentencing for October 2, 2013.
United States Attorney Rod J. Rosenstein praised the HHS-OIG Special Investigations Branch for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.
According to the indictment, the Smiths also caused more than $1 million, which had been transferred from Platinum One to their bank accounts and to casinos on their behalf, to be falsely recorded in Capitol Contractors’ books and records as corporate expenses paid for subcontractors, and concealed this fact from their tax preparer. As a result, the indictment alleges that their tax preparer prepared corporate tax returns for Capitol Contractors which falsely overstated the company’s expenses, and prepared personal income taxes for the Smiths which falsely understated their taxable income, thereby falsely understating the amount of taxes owed to the IRS.
The defendants face a maximum sentence of five years in prison for the conspiracy; and three years in prison for making and subscribing a false tax return and for aiding and assisting in the preparation of false tax returns. Vernon J. Smith III also faces a maximum of 20 years in prison for each count of wire fraud. No court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty on June 18, 2013, to his role in the scheme and is scheduled to be sentenced on September 30, 2013.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
Eleven Face Federal Charges in Metroplex Prostitution RingRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – Eleven individuals have been indicted in connection with a prostitution ring operating in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A seven-count indictment was returned by a federal grand jury on June 12, 2013, charging eleven individuals in the illegal enterprise. The indictment specifically charges one count of conspiracy to use interstate facility to promote, manage, establish, carry on and facilitate unlawful activity; four counts of use of interstate facility to promote, manage, establish, carry on, and facilitate unlawful activity; and two counts of bribery concerning programs receiving federal funds. Those named in the indictment include:
*Quyen Thuc Ha, aka Tony Ha, 53, of Richardson, Texas;
*Yu Lin Chang, aka Rica, aka Jennifer, 37, of Plano, Texas;
*Kim Sey Lau, aka John Wang, aka Tony, 56, of Dallas;
Lai Iong Chiu, aka Mindy, aka Winnie, aka Wendy, aka Li Yan Zhou, 46, of Plano, Texas;
Xia Xu, aka Coco, 46, of Dallas;
*Yu Qian, aka Maggie, 45, of Flower Mound, Texas;
*Li Meng Shank, 42, of Plano;
Prapatson Verhotz, 46, of Garland, Texas;
*Tin Min Lo, aka Gordon, 51, of Coppell, Texas;
*Michael Gene Jones, 64, of Georgetown, Texas; and
*Jia-Her Hwang, aka Jack, 65, of Richardson.According to court documents, Ha is the owner of nine businesses located in Plano, Dallas, and Hurst, Texas, which are identified as massage parlors. The indictment alleges that the massage parlors actually operate as places of prostitution, or brothels. Ha is accused of conspiring with the other defendants to use the massage parlors to facilitate prostitution. As part of the conspiracy, apartments and homes were rented in Missouri, Oklahoma and Texas; brothel locations were advertised on internet sites and in a local newspaper; and prostitutes were transported from locations including California, Nevada, and Georgia to engage in sexual activity for a fee. Ha is also alleged to have paid bribes to two local police detectives working in an undercover capacity in exchange for their assistance in keeping the brothels open and operating free from law enforcement detection.
Arrest warrants were executed on June 17, 2013, and those defendants arrested made initial appearances on June 18, 2013, before U.S. Magistrate Judge Amos Mazzant in Sherman.
If convicted of the conspiracy charge, the defendants each face up to five years in federal prison. The use of interstate facility charges also carry a maximum penalty of five years in federal prison and the bribery charges carry a maximum penalty of 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) and ICE’s Enforcement and Removal Operations (ERO), U.S. Department of State’s Diplomatic Security Service, the Plano Police Department, the Dallas Police Department, the Collin County District Attorney’s Office and the Texas Attorney General’s Office. This case is being prosecuted by Assistant U.S. Attorney Mandy Griffith.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
District Man Found Guilty of 2010 Murder of His Mother and Assault on His Younger Brother-Jury Rejects Defendant’s Insanity Defense-Read the Press Release
WASHINGTON - Christopher Martin, 28, of Washington, D.C., was found guilty by a jury today of charges stemming from the May 2010 murder of his mother and a subsequent attack on his brother, U.S. Attorney Ronald C. Machen Jr. announced.
Martin was found guilty, following a trial in the Superior Court of the District of Columbia, of charges of second-degree murder while armed, assault with a deadly weapon, and simple assault. The Honorable Ronna L. Beck scheduled sentencing for Aug. 30, 2013.
According to the government’s evidence, on May 20, 2010, Martin’s younger brother, Demetrius Martin, escaped from a second-floor window of a home in the 4200 block of Fourth Street SE. He alerted a neighbor that he had been beaten by his brother, Christopher, who had also stabbed their mother. When police finally gained entry to the locked apartment, they found the body of Patricia Ann Martin, 58, in an advanced stage of decomposition spurred on by the heat in the apartment and the fact that the defendant had covered her with multiple blankets.
Upon entering the apartment, it became apparent that Martin had attempted to conceal his crime from discovery by covering his mother’s body with cleanser and dryer sheets and using odor-eating gels, and various perfumes, room deodorizers and bleach to cover her scent. Later that day, when Martin was arrested, police discovered that he had a long, deep gash to the palm of his hand, consistent with his hand having slid down the blade of a knife.
At trial, the defendant proceeded on an insanity defense, calling experts to establish that because of mental illness, he lacked the substantial capacity to conform his conduct to the requirements of the law or lacked a substantial capacity to recognize the wrongfulness of his conduct. The government countered with experts to establish that, although the defendant does have a diagnosed mental illness (schizo-affective disorder), there was no evidence that his criminal conduct resulted from his mental illness. The jury found Martin guilty of all charges and rejected the defense of insanity.
In announcing the verdict, U.S. Attorney Machen commended the efforts of those who investigated the case for the Metropolitan Police Department (MPD). He also extended his appreciation to Victim/Witness Advocate Marcia Rinker; Paralegal Specialists Alesha Matthews Yette, Sandra Lane, Fern Rhedrick and Benjamin Kagan-Guthrie, and Litigation Technology Specialists Jeanie Latimore-Brown, Kimberly Smith, and Paul Howell. He also expressed thanks for the assistance provided by Patricia A. Riley, Special Counsel to the U.S. Attorney, Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and Assistant U.S. Attorney Colleen Kennedy. Finally, he praised the work of Assistant U.S. Attorney Vinet Bryant, who indicted the case and prosecuted the case at trial.
13-218Denver Man Indicted on Charges of Distribution of Child PornographyRead the Press Release
DENVER – Michael Keith Forrester, age 40, of Denver, Colorado, was indicted by a federal grand jury in Denver this week on five counts of distribution of child pornography, United States Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. Forrester made his initial appearance in U.S. District Court in Denver this afternoon before a U.S. Magistrate Judge where he was advised of his rights and the charges pending against. He is next due in court on Tuesday, June 25, 2013 at 10:00 a.m. for arraignment and a detention hearing.
According to the indictment, on five separate dates between October 19, 2009 and October 29, 2010, Forrester knowingly distributed and attempted to distribute child pornography that has been shipped and transported in and affecting interstate and foreign commerce by any means, including by computer.
If convicted, Forrester faces not less than 5 years and not more than 20 years imprisonment and up to a $250,000 fine per count for each of the five counts. He also faces not less than 5 years and not more than life on supervised release. The indictment also contains an asset forfeiture allegation where if convicted of any of the violations alleged in the indictment, Forrester shall forfeit to the United States any and all of the defendant’s right, title and interest in any property, real or personal, used or intended to be used to commit or to promote the commission of such offense or any property traceable to the crime.
This case is being investigated by the Federal Bureau of Investigation.
Forrester is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Daytona Beach Man Sentenced to over 19 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
Orlando, Florida - U.S. District Judge Charlene E. Honeywell today sentenced Antwan Derell Jackson (26, Daytona Beach) to 19 years and seven months in federal prison for being a felon in possession of a firearm. Jackson was found guilty following a bench trial on March 28, 2013.
According to court documents and testimony presented at trial, Jackson was arrested after Volusia County Sheriff's Office (VCSO) deputies conducted a traffic stop on a vehicle in which he was riding. The occupants of the vehicle, including Jackson, attempted to flee, but Jackson was apprehended. During a subsequent search of the vehicle, the deputies found a loaded .380 caliber handgun. Based upon Jackson's extensive criminal history, he qualified as an Armed Career Criminal and was subject to enhanced penalties.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Volusia County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and James D. Mandolfo.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Coweta County Man Sentenced for Illegally Obtaining Federal Contracts Reserved for Military VeteransRead the Press Release
NEWNAN, Ga. – Arthur W. Singleton has been sentenced to two years in prison for fraudulently obtaining several government construction contracts reserved for veterans with service-related disabilities.
“Driven by greed, Mr. Singleton took advantage of a service-disabled veteran of the Vietnam War to gain over a million of dollars in federal contracts,” said United States Attorney Sally Quillian Yates. “The defendant’s fraud deprived genuine disabled veteran-owned businesses of the chance to obtain these federal contracts.”
“The United States Department of Agriculture (USDA), Office of Inspector General (OIG), remains diligent in investigating matters such as these that defraud both the department and the taxpayer,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG.
“Aggressive investigative efforts through effective partnerships among several law enforcement agencies were key in bringing this defendant to justice,” said Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service. “This sentencing should serve as a deterrent to others who intend to take advantage of disabled military veterans and defraud the Federal Government.”
“These contracts are supposed to go to genuine service-disabled veteran-owned small businesses,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Federal contracts should never be awarded to persons who commit fraud to claim eligibility for contracts set-aside for our nation’s heroes. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“The Department of Veterans Affairs Office of Inspector General vigorously investigates individuals who fraudulently obtain non-competitive contracts specifically set aside for veterans with service-connected disabilities,” stated Special Agent in Charge Quentin G. Aucoin.
According to United States Attorney Yates, the charges and other information presented in court: Singleton owned a construction firm named “Singleton Enterprises” and had over 30 years of experience in the construction industry. In 2007, Singleton approached a Vietnam veteran (who was bedridden from surgeries related to his combat injuries) and advocated creating a business that would exploit the veteran’s disabled status to obtain federal government contracts that were reserved exclusively for companies owned and run by service-disabled veterans. When the veteran agreed to the scheme, Singleton formed two companies using the veteran’s name.
From September 2007 to September 2008, Singleton entered into contracts with the Department of Veterans Affairs, the Department of Agriculture, the United States Coast Guard, and the United States Army Corps of Engineers to perform construction work around the country. Singleton used the veteran’s status to bid on these contracts, knowing that he was ineligible for the contracts – given that the veteran performed no work for either company, did not have an ownership stake, and did not control the management or daily operations of either business. In total, Singleton received over $1.5 million dollars from the fraudulently-obtained contracts.
Singleton, 63, of Coweta County, Ga., was sentenced to two years in prison to be followed by two years of supervised release, and ordered to pay restitution in the amount of $181,000. On April 15, 2013, Singleton pleaded guilty to one count of making false documents.
This case was investigated by Special Agents of the Small Business Administration, Office of Inspector General - Investigations; the United States Department of Defense, Defense Criminal Investigative Service; the United States Department of Agriculture, Office of Inspector General; the United States Department of Veterans Affairs, Office of Inspector General; and the United States Department of Homeland Security, Office of the Inspector General.
Assistant United States Attorneys Jeffrey W. Davis, Glenn Baker, and Shanya Dingle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Coweta County Man Pleads Guilty to Defrauding Local and International Victims in Internet SchemeRead the Press Release
NEWNAN, Ga. – Randolph Wayne Hill has pleaded guilty to charges of wire fraud and money laundering arising out of various fraud schemes he operated over the Internet involving the supply of chemicals used in farming and other industries.
“This defendant used the Internet to steal hundreds of thousands of dollars from small businesses both here in Georgia and abroad,” said United States Attorney Sally Quillian Yates. “As today’s conviction demonstrates, it is a priority of this office to detect and aggressively prosecute fraudsters who use the Internet to target victims in our district and elsewhere.”
According to United States Attorney Yates, the charges and other information presented in court: In March and April 2008, Hill falsely advertised on the Internet through his company, Hill Resources, LLC, that he was able to deliver multiple tons of various chemicals to customers throughout the world. On or about March 15, 2008, Hill misrepresented that he was ready to ship over 120 tons of a fertilizer chemical from the United States to a collective of farmers in Suriname, even though he had no such supplier of the chemical in the United States. In reliance on Hill’s promise, the individual acting on behalf of the farmers paid Hill over $60,000.
On or about April 15, 2008, Hill misrepresented that he would supply a company operating in Cartersville, Ga., with over 160 tons of a chemical used in fireproofing fabrics, even though he had no such supplier of the chemical. In reliance on Hill’s promise, the company in Cartersville paid Hill almost $200,000.
Hill never delivered any product to either business, nor returned the money. Hill repaid another customer with $25,000 of the money from the company in Cartersville. Hill kept the rest of the money for his personal use.
Hill, 71, of Newnan, Ga., could receive a maximum sentence of 20 years in prison and a fine of up to $250,000 on each count. However, in determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for September 4, 2013, at 10:00 a.m. before United States District Judge Timothy C. Batten.
This case was investigated by Special Agents of the Federal Bureau of Investigation and the Coweta County Sheriff’s Department.Assistant United States Attorney Laurel Boatright is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Coon Rapids Man Sentenced for Shipping Firearms to LiberiaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 38-year-old Coon Rapids man was sentenced for transporting firearms to his home country of Liberia. United States District Court Judge Ann D. Montgomery sentenced McHarding Degan Galimah to 30 months in prison on one count of smuggling firearms from the United States to Liberia. Galimah was indicted on August 22, 2012, and convicted on February 14, 2013.
The evidence presented at trial proved that Galimah purchased 12 firearms from a federally licensed firearms dealer, including seven Hi-Point, nine-millimeter handguns. In November 2010 and July 2011, he exported those weapons to Liberia and then made several trips to that country to take possession of the firearms for resale at a profit. At no time did he possess a license to transport the firearms, as required by federal law. Moreover, federal regulations prohibit the export of firearms to Liberia.
This case was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.