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7 August 2013
Antiques Dealer Pleads Guilty in New York City Federal Court to Wildlife Smuggling ConspiracyRead the Press Release
Qiang Wang, a/k/a Jeffrey Wang, a New York antiques dealer, pleaded guilty today in federal court in New York City to conspiracy to smuggle Asian artifacts made from rhinoceros horns and ivory and violate wildlife trafficking laws, announced Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, Preet Bharara, U.S. Attorney for the Southern District of New York, and Dan Ashe, Director of the U.S. Fish and Wildlife Service.
Wang was arrested in February 2013 as part of “Operation Crash,” a nation-wide crackdown in the illegal trafficking in rhinoceros horns, for his role in smuggling libation cups carved from rhinoceros horns from New York to Hong Kong and China. He pleaded guilty today before U.S. District Judge Katherine B. Forrest of the Southern District of New York.
“Wang and others conspired in an illegal trade that is threatening the future of these species,” said Acting Assistant Attorney General Dreher. “This prosecution and continuing investigation should send a clear message to buyers and sellers that we will vigorously investigate and prosecute those who are involved in this devastating trade.”
“Today’s guilty plea ensures that Qiang Wang, who flouted domestic and international regulations by smuggling artifacts made from an endangered species out of the United States, will be held to account for his crimes,” said U.S. Attorney Bharara. “This Office will continue to work with its law enforcement partners to hold to account anyone engaged in this illegal trade.”
“Poaching and profiteering are undermining decades of work by conservationists to stabilize and rebuild rhino and elephant populations,” said Fish and Wildlife Service Director Ashe. “As this latest guilty plea demonstrates, we continue working with our partners in the United States and overseas to stop the slaughter and crack down on the illegal trafficking that fuels it.”
According to the information, plea agreement, and statements made during court proceedings: In China, there is a tradition dating back centuries of intricately carving rhinoceros horn cups. Drinking from such a cup was believed by some to bring good health, and antique carvings are highly prized by collectors. Libation cups and other ornamental carvings are particularly sought after in China and in other Asian countries, as well as in the United States. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including fake antiques made from recently hunted rhinoceros.
Between approximately January 2011 and February 2013, Wang conspired with at least two others to smuggle objects containing rhinoceros horn and elephant ivory out of the United States knowing that it was illegal to export such items without required permits. Due to their dwindling populations, all rhinoceros and elephant species are protected under international trade agreements. Wang made and used false U.S. Customs Declarations for the packages containing rhinoceros horn and ivory objects in order to conceal the true contents of the packages, and did not declare them to the U.S. Fish and Wildlife Service or U.S. Customs and Border Protection as required under U.S. law and international trade agreements.
Wang, 34, of Flushing, N.Y., pleaded guilty to one count of conspiracy, which carries a maximum penalty of five years in prison. Under the terms of the plea agreement, items recovered from Wang’s apartment, including an ivory statute found hidden behind his bed, will be forfeited. He is scheduled to be sentenced by Judge Forrest on Oct. 25, 2013.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Mr. Bharara and Mr. Dreher commended the U.S. Fish and Wildlife Service for its outstanding work in this investigation. They also thanked the New York State Department of Environmental Conservation Division of Law Enforcement and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance.
The case is being handled by the U.S. Attorney’s Office Complex Frauds Unit and the Justice Department’s Environment and Natural Resources Division. Assistant United States Attorney Janis M. Echenberg and Senior Trial Attorney Richard A. Udell of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.Antiques Dealer Pleads Guilty in Manhattan Federal Court to Wildlife Smuggling ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, announced that QIANG WANG, a/k/a Jeffrey Wang, a New York antiques dealer, pled guilty today in Manhattan federal court to conspiracy to smuggle Asian artifacts made from rhinoceros horns and ivory and violate wildlife trafficking laws. WANG was arrested in February 2013 as part of “Operation Crash,” a nation-wide crackdown in the illegal trafficking in rhinoceros horns, for his role in smuggling libation cups carved from rhinoceros horns from New York to Hong Kong and China. He pled guilty today before U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “Today’s guilty plea ensures that Qiang Wang, who flouted domestic and international regulations by smuggling artifacts made from an endangered species out of the United States, will be held to account for his crimes. This Office will continue to work with its law enforcement partners to hold to account anyone engaged in this illegal trade.”
Acting Assistant Attorney General Robert G. Dreher said: “Wang and others conspired in an illegal trade that is threatening the future of these species. This prosecution and continuing investigation should send a clear message to buyers and sellers that we will vigorously investigate and prosecute those who are involved in this devastating trade.”
According to the information, plea agreement, and statements made during court proceedings:
In China, there is a tradition dating back centuries of intricately carving rhinoceros horn cups. Drinking from such a cup was believed by some to bring good health, and antique carvings are highly prized by collectors. Libation cups and other ornamental carvings are particularly sought after in China and in other Asian countries, as well as in the United States. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including fake antiques made from recently hunted rhinoceros.
Between approximately January 2011 and February 2013, WANG conspired with at least two others to smuggle objects containing rhinoceros horn and elephant ivory out of the United States knowing that it was illegal to export such items without required permits. Due to their dwindling populations, all rhinoceros and elephant species are protected under international trade agreements. WANG made and used false U.S. Customs Declarations for the packages containing rhinoceros horn and ivory objects in order to conceal the true contents of the packages, and did not declare them to the U.S. Fish & Wildlife Service or U.S. Customs and Border Protection as required under U.S. law and international trade agreements.
WANG, 34, of Flushing, New York, pled guilty to one count of conspiracy, which carries a maximum penalty of five years in prison. Under the terms of the plea agreement, items recovered from WANG’s apartment, including an ivory statute found hidden behind his bed, will be forfeited. He is scheduled to be sentenced by Judge Forrest on October 25, 2013 at 3 p.m.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”), a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service, in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of Rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Mr. Bharara and Mr. Dreher commended the U.S. Fish and Wildlife Service for its outstanding work in this investigation. They also thanked the New York State Department of Environmental Conservation Division of Law Enforcement and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance.
The case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Janis M. Echenberg and Senior Trial Attorney with the Environmental Crimes Section of the United States Department of Justice Richard A. Udell are in charge of the prosecution.
Wang, Qiang Information
Aberdeen Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that an Aberdeen, South Dakota, man has pled guilty to Assault With a Dangerous Weapon.
Katlin Vine Tiger, age 21, appeared before U.S. District Judge Charles B. Kornmann on July 29, 2013, and pled guilty to the charge.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on or about the 25th day of August, 2012, when the Defendant and a juvenile male accompanied the victim to a private residence. While they were walking, the Defendant and the juvenile male assaulted the victim by striking him with their fists until he fell to the ground, and then began to kick the victim in the body and head. At the time of the attack, the Defendant was wearing steel-toed boots.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Tiger was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for October 21, 2013.2nd Defendant Sentenced to Federal Prison in International Conspiracy to Import and Distribute Prescription Drugs and Anabolic SteroidsRead the Press Release
PROVIDENCE, R.I. – Patrick Cunningham, 44, of Cranston, RI, has been sentenced to 18 months in federal prison for his participation in an international conspiracy to import and distribute prescription drugs and anabolic steroids, announced United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigation.
U.S. District Court Judge John J. McConnell, Jr., also ordered Cunningham to serve three years of supervised release upon completion of his prison term. Cunningham pleaded guilty on March 12, 2013, to one count each of conspiracy to distribute steroids and distribution of a misbranded drug.
Edmond Paolucci, 54, of Coventry, RI, a co-defendant in this matter, pleaded guilty in November 2012 to one count each of conspiracy to distribute steroids, possession with the intent to distribute steroids, distribution of a misbranded drug, and money laundering. He was sentenced on April 9, 2013, by U.S. District Court Judge John J. McConnell, Jr., to serve 33 months in federal prison followed by three years of supervised release.At the time of their guilty pleas, Cunningham and Paolucci admitted that from at least November 2009 until November 2011 they participated in a conspiracy to import various misbranded prescription drugs and bulk quantities of pills and injectable oil-based drugs shipped from Israel, Turkey and Bulgaria to postal boxes in Rhode Island, Massachusetts and Connecticut. Through his co-conspirators in Rhode Island, including Patrick Cunningham, Mr. Paolucci used an underground laboratory to repackage the drugs into retail-size pill packets and 10 ml vials, bearing Sciroxx and Xsorox labels. The repackaged drugs were shipped to customers in the United States who had made purchases on websites operated by Mr. Paolucci and his Israeli co-conspirators. A significant portion of the proceeds from the sale of the misbranded drugs was sent back to co-conspirators in Israel.
According to information presented to the court, records obtained from money transfer service companies showed that from February 2009 to September 2011 Mr. Paolucci transferred in excess of $76,000 in proceeds from steroid and prescription drug sales to individuals in Israel.
The cases were prosecuted by Assistant U.S. Attorney Richard B. Myrus.
A task force led by the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation. The task force partnerships include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, U.S. Postal Inspection Service, Homeland Security Investigations, Rhode Island State Police, North Providence Police, East Providence Police, and the Rhode Island National Guard.
United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigation, acknowledged the assistance of international counterparts at the Israel Ministry of Health, Division of Enforcement and Inspection, and Jerusalem Customs and VAT who provided significant assistance in the successful investigation and prosecution of this matter.
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[email protected]139 Individuals Indicted for Drug Trafficking in the Municipality of CaguasRead the Press Release
SAN JUAN, Puerto Rico – On July 29, 2013, a federal grand jury in the District of Puerto Rico returned three separate indictments against 139 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD) collaborated during the investigations. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) also collaborated during the arrests.
The first indictment charges 79 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Turabo Heights Public Housing Project, a housing facility owned by a public housing authority, and other areas nearby and within the Municipality of Caguas, Puerto Rico.
According to the indictment, beginning in 2005, as part of the manner and means of the conspiracy, the defendants would use electricity boxes known as “dangers” to stash packages or bundles of decked narcotics which were to be distributed to the sellers in a controlled manner. Sellers were not allowed to get more bundles or packages before tallying with the owner or his runner for the packages or bundles received. Tallies would be written in notebooks or sheets of paper.It was further a part of the manner and means of the conspiracy that during the span of the conspiracy, the marihuana drug points were identified by the colors blue (“Las Azules”) and yellow (“Las Amarillas”). Leaders would supply firearms to other drug trafficking organization members for protection of the narcotics and their proceeds. Lookouts would be posted with two way radios (walkie-talkies) in specific areas of the Turabo Heights Public Housing Project in order to alert other organization members of police presence or the presence of rival gangs.
During the span of the conspiracy, in order to be able to have a drug point at Turabo Heights, “rent” would be paid to the leaders of the drug trafficking organization and their family members. It was a part of the manner and means of the conspiracy that control of the drug points at Turabo Heights was, obtained and maintained by the use of force, violence, and intimidation which operated twenty-four (24) hours a day in 3 shifts per day, including a “midnight marihuana” shift. Facilitators would act as intermediaries in drug sale transactions when clients did not want to go into the housing project.
According to the indictment, the 79 co-conspirators had many roles in order to further the goals of the conspiracy. These were: two leaders; seven drug point owners (including the two leaders); four suppliers; three enforcers; 14 runners; 31 sellers; and 19 facilitators. Nine defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of forty-five million dollars.
The second indictment charges 31 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine, heroin, crack, marihuana, Percocet, and Xanax, within one thousand (1,000) feet of the real property comprising housing facilities owned by a public housing authority, to wit: the Brisas del Turabo Public Housing Project in the municipality of Caguas, PR. The object of the conspiracy was to distribute controlled substances for significant financial gain and profit.
The defendants and their co-conspirators would act in different roles in order to further the goals of the conspiracy, to wit: leaders who directed and supervised enforcers, suppliers, runners, sellers, drug processors, lookouts, and facilitators. Twenty defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of ten million dollars.
The third indictment charges 29 individuals for conspiracy to knowingly and intentionally possess with intent to distribute cocaine, heroin, marihuana, crack, Percocet, and Xanax, within one thousand (1,000) feet of the real property comprising housing facilities owned by a public housing authority, to wit: the Gautier Benitez Public Housing Project in the municipality of Caguas, PR. The object of the conspiracy was to distribute controlled substances for significant financial gain and profit.
It was further part of the manner and means of the conspiracy that the drug point would move through different locations within the Gautier Benitez Public Housing Project in order to avoid detection by law enforcement. The defendants and their co-conspirators would act in different roles in order to further the goals of the conspiracy, to wit: leaders who directed and supervised enforcers, runners, sellers, drug processors, lookouts, and facilitators. Seventeen defendants are facing one charge of conspiracy to possess firearms in furtherance of a drug trafficking crime. All defendants are facing a forfeiture allegation of seventeen million dollars.
“Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, while ensuring that they face justice for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and to bring narcotics and firearms violators to justice.”
Special Agent in Charge of the DEA in Puerto Rico and the Caribbean stated: “Reducing violent crime in our community requires a commitment by federal and local law enforcement to combat illegal drug trade and the violence associated with it. This joint operation, which has been conducted for almost three years by the Drug Enforcement Administration, Federal Bureau of Investigations and Puerto Rico Police Department, represents that type of commitment of resources. We believe that today’s arrests will significantly reduce violence in Caguas by dismantling these notorious drug operations from top to bottom. We are hopeful that this will have a lasting community impact by reducing the level of crime in Puerto Rico.”
“The FBI's message is clear and unequivocal, we will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
Assistant US Attorneys Alberto López-Rocafort and Teresa Zapata and Special Assistant US Attorney Victor Acevedo are in charge of the prosecution of the cases. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, responsible for drug trafficking in Puerto Rico. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
6 August 2013
Woman Found Guilty for Theft of Government Property and Aggravated Identity TheftRead the Press Release
Defendant facing a forfeiture of $153,896.45SAN JUAN, PR – Yesterday evening, Allison Gonzàlez-Martínez was convicted of 21 counts of theft of government property, one count of attempted theft of government property and one count of aggravated identity theft, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Gonzàlez-Martínez deposited or attempted to deposit 22 Treasury Checks for over $153,000 issued by the IRS in connection with false and fraudulent tax returns. The defendant spent some of the proceeds at Casa Febus, Capri, and Victoria’s Secret.
The tax returns were filed using the personal identifying information of the victims, when in reality, the victims never filed such tax returns with the IRS. According to the evidence presented at trial, the false and fraudulent tax returns were filed without the consent of the taxpayers whose identities appear in the returns.
“The Department of Justice is strongly committed to promoting compliance with federal tax laws,” said Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “We congratulate our attorneys who held this defendant accountable for the harm she caused to her victims and our tax system. We will continue to vigorously pursue this issue.”
The case was investigated by the Internal Revenue Service with the collaboration of the Puerto Rico Police Department. The case was prosecuted by Assistant U.S. Attorney Mariana Bauza and Senior Litigation Counsel Charles Walsh.
Williamsville Man Pleads Guilty to Bomb MakingRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced that Duncan Badding, 25, of Williamsville, N.Y., pleaded guilty before United States District Chief Judge William M. Skretny, to unlawfully making and unlawfully possessing destructive devices. This offense carries a maximum penalty of 10 years in prison, a $250,000 or both.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that on August 8, 2012, the Amherst Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search of the defendant’s residence, at 66 Williamsburg Square in Williamsville. During the search, law enforcement officers discovered different volatile and explosive substances, chemicals and mixtures. Upon further inspection, several of the substances were homemade explosives, including, Triacetone Triperoxide (TATP), a mixture of ammonium nitrate and fuel oil (ANFO), and a mixture of Tannerite. In addition, several apparent destructive devices, or combination of parts and devices designed or intended to be used or converted into destructive devices, were also found. The explosive materials were later detonated by law enforcement officials so as to remove the threat of harm to the community.
The guilty plea was the culmination of an investigation on the part of officers from the Amherst Police Department, under the direction of Chief John Askey, Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
A Sentencing date will be scheduled, at a later date.
Wilkes-BarreRead the Press Release
Man Charged With Counterfeiting
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the filing of a felony Information in U.S. District Court in Scranton charging Fabian Forbes, age 23, of Wilkes-Barre, Pennsylvania, with a conspiracy to deal in counterfeit United States Federal Reserve Notes.
According to United States Attorney Peter J. Smith, the Information charges that Forbes conspired with others in a scheme that involved the bleaching of genuine $1 Federal Reserve Notes for the purpose of printing over those notes with a genuine $100 Federal Reserve Note. The Information charges that Forbes engaged in this activity from December 2012 through June 2013.
The case was investigated by the United States Secret Service. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
White Eagle Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a White Eagle, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on August 2, 2013, by U.S. District Judge Charles B. Kornmann.
Ace Makes Him First, age 38, was sentenced to 33 months of imprisonment, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Makes Him First was indicted by a federal grand jury on September 19, 2012. He pled guilty to Count II of an Indictment on April 23, 2013.
The conviction stems from an incident in December of 2011 when the Defendant and the victim, who were in a domestic relationship, were involved in an altercation where the Defendant struck the victim around the head and face causing her lip to become swollen and split. The Defendant had been found guilty on two or more separate occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner in Standing Rock Tribal Court. All the offenses occurred against the same victim.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Makes Him First was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.West Hartford Attorney Pleads Guilty to Participating in Mortgage Fraud and Money Laundering ConspiraciesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that GABRIEL SERRANO, 47, of West Hartford, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to conspiracy charges stemming from his role in an extensive mortgage fraud scheme. SERRANO, an attorney, is a partner in the law firm of Serrano & Serrano, LLC.
According to court documents and statements made in court, from approximately June 2005 to at least November 2008, SERRANO was involved in a mortgage fraud conspiracy that involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms for the purchase of numerous houses in Hartford, New Haven, and Middlesex counties. SERRANO served as the closing attorney on at least two dozen fraudulent transactions.
SERRANO often served as the closing attorney when a co-conspirator purchased properties with financing from private lenders. Later, when SERRANO’s co-conspirator sold many of the properties to a buyer, SERRANO usually represented the buyer. In connection with many of the transactions where SERRANO’s co-conspirator sold properties, SERRANO knew that his co-conspirator, and not the borrower, had provided the required down payment checks on behalf of the borrower. SERRANO often released the seller’s proceeds checks to his co-conspirator before receiving a down payment, and he knew that his co-conspirator would use the seller’s proceeds checks to obtain the down payment check for the same transaction. In this way, contrary to what SERRANO led the mortgage lenders to believe, the borrowers were purchasing the properties with no down payment funds of their own.
In addition, some of the borrowers purchased multiple properties from SERRANO’s co-conspirator and represented to the mortgage lenders that they were purchasing each of the properties as primary residences. SERRANO knew that the borrowers did not intend to use the properties as primary residences.
In the course of many of the fraudulent closings involving his co-conspirator’s sale to borrowers, SERRANO received mortgage proceeds from banks and mortgage lenders. SERRANO would frequently disburse some of those proceeds to private lenders who had loaned his co-conspirator money to purchase those properties.
SERRANO has agreed that the loss attributable to his conduct is approximately $3.5 million.
SERRANO pleaded guilty to one count of conspiracy to commit mail and bank fraud, a charge that carries a maximum term of imprisonment of 30 years, and one count of conspiracy to commit money laundering, a charge that carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on October 29, 2013.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David T. Huang and Paul H. McConnell.
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(203) 821-3722 [email protected]Wayne County Tax Preparer Sentenced to Federal PrisonRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced Tracie jones mathis , 47, of Goldsboro, North Carolina, to 57 months imprisonment, followed by 3 years of supervised release. Additionally, she was ordered to pay $1,094,742.00 in restitution joint and severally with Evelyn Gomez-Allen.
MATHIS was named in a Criminal Information filed on September 20, 2012, charging her with conspiring to defraud the United States with respect to claims, in violation of Title 18, United States Code, Section 286. On January 16, 2013, MATHIS pled guilty to that charge.
According to the investigation, MATHIS and her co-conspirators agreed to defraud the United States by engaging in a scheme to obtain the payment of fraudulent claims through the filing of materially false income tax forms. Particularly, MATHIS and her co-conspirators engaged in the fraudulent manufacturing of W-2 forms and identification documents to serve as supporting documentation for fraudulent 1040 forms.
"The defendant pleaded guilty to defrauding the government of nearly $2 million in phony tax returns, thereby enriching herself at the expense of the American tax payer," said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. "HSI will continue to work with our partners at the IRS and the U.S. Attorney’s Office to hold accountable those who seek to game the system through criminal activity.” Nicholson oversees HSI investigations in Georgia and the Carolinas.
"Tax fraud schemes rob the United States of needed funds," stated Special Agent in Charge, Jeannine A. Hammett, Internal Revenue Service Criminal Investigation. "IRS-CI will vigorously pursue those who perpetrate these crimes in an effort to defraud the United States government."
Investigation of this case was conducted by Homeland Security Investigations, the Internal Revenue Service Criminal Investigation, and the Wilson Police Department.
Waterloo Man Sentenced for Distribution of MethamphetamineRead the Press Release
A Black Hawk County man was sentenced August 5, 2013, to 15 years in federal prison for distributing methamphetamine in the Mason City area.
Michael Patrick Geraghty, age 42, of Waterloo, Iowa, received his prison term after a March 15, 2013, guilty plea to two counts of distributing methamphetamine, having previously been convicted of a felony drug offense in Black Hawk County, Iowa, in May 2007.
Information provided by the United States at the sentencing and change of plea hearings revealed that, during July 2012, Geraghty supplied ice methamphetamine to a confidential source on two separate occasions.
Geraghty was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Geraghty was sentenced to 180 months’ imprisonment. Geraghty was initially facing a 120 month sentence, but the district court imposed an additional 60 months imprisonment because Geraghty tried to hire a hit man to kill a confidential informant. A special assessment of $200 was imposed. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
Geraghty is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, and Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3002.
Utah Commission on Criminal and Juvenile Justice Gets $1,619,555 Department of Justice GrantRead the Press Release
Funding will Support Several Local InitiativesSALT LAKE CITY – The U.S. Department of Justice’s Office of Justice Programs has awarded a $1,619,555 Edward Bryne Memorial Justice Assistance Grant (JAG) to the Utah Commission on Criminal and Juvenile Justice.
JAG funding allows states and units of local government to support a broad range of activities to prevent and control crime based on their own state and local needs. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support and information systems for criminal justice programs.
The Utah Commission on Criminal and Juvenile Justice will use the JAG funds to enhance statewide public safety services, support evidence-based projects, support of the Utah Residential Substance Abuse Treatment (RSAT) program; and continue evidence-based projects that support the juvenile justice system. Utah JAG priority areas include gang prevention, education or enforcement; prescription drug abuse prevention, education or enforcement; sexual assault or domestic violence; mental health and problem solving courts; the needs of law enforcement, prosecution or county corrections; and programs that address alternatives to incarceration.
U.S. Attorney's Office on Pace for Record Number of Firearms IndictmentsRead the Press Release
The United States Attorney’s Office for the Northern District of Ohio filed 124 illegal firearms indictments in the first half of this year, U.S. Attorney Steven M. Dettelbach announced.
“Our office and law enforcement partners continue to work around the clock enforcing our nation’s firearms laws,” Dettelbach said. “We are on pace to file more firearms indictments than ever before.
“While we will continue to lock up the worst of the worst, who are forbidden from having guns but get them anyway, we must also continue to work to find systemic solutions to curbing the epidemic of gun violence,” Dettelbach said.
Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 53. That was followed by the Youngstown office (43), Toledo office (16) and Akron office (12).
There were 73 defendants sentenced so far this year for firearms crimes and the average sentence was nearly six years in prison (71.6 months).
Details of selected cases:
Warren Operation
More than 150 firearms were seized as part of an investigation that resulted in charges against 55 people for violations of federal firearms and narcotics laws in April. An additional 42 people were charged in state court. In just one example, Lewis Powell of Warren was indicted for illegally possessing 14 firearms, as well as body armor and weapons with obliterated serial numbers, as part of a conspiracy that brought heroin and cocaine from Detroit to Warren.
U.S. v. Schmidt
Richard Schmidt, of Toledo was indicted in January on a variety of firearms charges after investigators found him in possession of 18 firearms, body armor and more than 40,000 rounds of ammunition, despite a previous manslaughter conviction. Schmidt pleaded guilty and is scheduled to be sentenced in October.
U.S. v. Clements
Raymone Clements was sentenced to nearly 23 years in prison in July after a jury previously found him guilty of one count each of being a felon in possession of a firearm and being a felon in possession of ammunition.
Testimony at his trial showed Clements was shot a dog in a park in Cleveland Heights and has possession of a firearm and ammunition, despite 15 felony convictions, including rape, drug trafficking and aggravated robbery.
U.S. v. Romero
Jose Romero, of Lorain, was pleaded guilty in June to possessing 40 rifles, pistols and revolvers despite a 2005 conviction for domestic violence which precluded him from having firearms. He is scheduled to be sentenced in September.
Project Safe Neighborhoods is a nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime, and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.
PSN prosecution statistics for calendar year 2002 through 2012 are as follows (these numbers reflect indictments for the full calendar year, while the 124 figure above is just through the first half of 2013):
2002: 117 indictments
2003: 155 indictments
2004: 184 indictments
2005: 220 indictments
2006: 187 indictments
2007: 191 indictments
2008: 157 indictments
2009: 156 indictments
2010: 166 indictments
2011: 218 indictments
2012: 176 indictments
Two Men Charged in Texas and Arrested <br /> for Smuggling Counterfeit ViagraRead the Press Release
Two men were arrested today for allegedly conspiring to traffic in counterfeit and misbranded medicine, specifically Viagra. The arrests were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Jamal Khattab, 49, of Katy, Texas, and Fayez Al-Jabri, 45, of Chicago, were charged in an 11-count indictment, which was unsealed today in the Southern District of Texas. Khattab will appear tomorrow before U.S. Magistrate Judge Nancy Johnson in Houston, while Al-Jabri made his appearance today before U.S. Magistrate Judge Arlander Keys in Chicago, at which time he was ordered into custody pending an identity and detention hearing scheduled for Thursday morning.
The indictment charges Khattab with one count of conspiracy, one count of smuggling goods into the United States, two counts of trafficking in counterfeit goods, two counts of trafficking in misbranded drugs and two counts of trafficking in counterfeit drugs. Al-Jabri is charged with one count of trafficking in counterfeit goods, one count of trafficking in misbranded drugs and one count of trafficking in counterfeit drugs.
According to the indictment, from June 2010 through March 2012, the defendants smuggled counterfeit Viagra from China into the United States. The counterfeit Viagra would then allegedly get shipped either to Chicago or to Houston in bulk for later distribution in smaller quantities.
The indictment further alleges that law enforcement initially became aware of the smuggling in July 2010. At that time, Khattab was identified as an intended recipient of a package of counterfeit Viagra that was shipped from China to Houston and was intercepted by law enforcement agents in San Francisco. U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) and U.S. Food and Drug Administration Office of Criminal Investigations (FDA-OCI) agents in Houston were notified of the shipment and commenced an investigation.The indictment further alleges that from January 2011 through September 2011, Khattab and Al-Jabri delivered approximately 17,000 counterfeit and misbranded Viagra tablets to an undercover agent who had successfully infiltrated the counterfeit pharmaceutical trafficking organization.
Both men face up to five years in prison for the conspiracy, upon conviction, as well as a $250,000 fine. Trafficking in misbranded drugs and counterfeit drugs carries as possible punishment up to three years in prison and a $10,000 fine, while trafficking in counterfeit goods could result in a possible maximum sentence of 10 years in prison and a $250,000 fine. Finally, if convicted of smuggling goods into the U.S., Khattab could be sentenced to up to 20 years in prison and faces a possible maximum fine of $2.5 million.An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by HSI, FDA-OCI, U.S. Diplomatic Security Service (DSS), the Houston Police Department and the Chicago Police Department. The case is being prosecuted by Assistant U.S. Attorney Kebharu Smith of the Southern District of Texas and Senior Counsel John Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section.
Related Materials:
Indictment
Two Mayors and Two Lobbyists Charged in Separate Corruption InvestigationsRead the Press Release
Mayor of Sweetwater Received More Than $40,000 in Bribes; Mayor of Miami Lakes Received $6,750 in Bribes
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that four individuals have been charged in two separate complaints involving public corruption allegations. The first complaint charges Manuel L. Maroño, 41, the Mayor of Sweetwater, and two lobbyists, Jorge L. Forte, 41, and Richard F. Candia, 49, all of Miami, for their alleged participation in a kickback and bribery scheme (the Maroño complaint) in connection with purported federal grants for the City of Sweetwater. The second complaint charges Michael A. Pizzi, 51, the Mayor of Miami Lakes and Town Attorney for the Town of Medley, and Richard F. Candia, in a separate kickback and bribery scheme in connection with purported federal grants for both Miami Lakes and Medley (the Pizzi complaint). Both complaints charge the defendants with conspiracy to commit extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a).
U.S. Attorney Wifredo A. Ferrer stated, “Our democracy suffers when, as in these cases, elected officials use their power and political influence for personal gain instead of for the public good. Public corruption, at any level of government, corrodes and undermines the public’s confidence in our system of government. We are committed to stopping this corrosion and to help restore transparency to local government.”
“For the public to have confidence in their government, they must be certain that their elected officials will not use their position for personal gain,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “We encourage anyone who may have information about corruption to come forward and report it. This information is critical to our work. The South Florida community can be assured that public corruption will remain a top priority for the FBI.”
The defendants made their initial appearances in federal court today at 1:30 p.m. before U.S. Magistrate Judge Andrea Simonton. If convicted, the defendants face a maximum statutory penalty of up to twenty years in prison.
Investigation Background
The investigation began in approximately June 2011, when Candia began dealing with an FBI confidential source and two undercover FBI agents posing as the owners of a Chicago-based grant administration business. During meetings, the undercover agents represented to Candia that, with the aid of corrupt local public officials, they could obtain federal grant moneys, which they would then keep and distribute among themselves. After listening to the undercover agents’ proposal, Candia identified Maroño and Pizzi as potential participants in the scheme.
The Sweetwater Deal—Manuel Maroño
According to the Maroño complaint affidavit, after identifying Maroño as a potential participant in the proposed scheme, Candia introduced Maroño to the undercover agents. Maroño caused the passage of a resolution in Sweetwater that authorized the undercover agents’ company to apply for federal grant moneys on behalf of the City of Sweetwater. After the resolution was passed, Maroño and Forte personally met and negotiated with the undercover agents and accepted a series of cash payments in exchange for Maroño’s official action in support of the grant scheme. During these negotiations and meetings, Forte acted as the front man for Maroño.
To further the scheme and avoid detection, Maroño also participated in what he believed to be audit telephone calls from a federal grant auditor to confirm the grantee’s performance on the grant. During two separate audit calls, both of which were recorded, Maroño lied to and misled the auditor, who was in fact an undercover FBI agent, about the actual use of the grant money and the grantee’s performance. For their actions, Maroño and Forte received $40,000 and Candia received at least $5,000 in kickbacks in connection with the Sweetwater deal.
Lastly, Maroño, Forte and Candia received additional payments for their assistance in identifying other public officials whom they claimed might also be interested in participating in similar grant schemes in their cities. To this end, Maroño, Forte, and Candia used Maroño’s position as President of the Florida League of Cities to introduce the scheme to other officials. Maroño and Forte received an additional $20,000 in cash for these introductions, but no other public officials ultimately participated in the scheme.
The Miami Lakes/Medley Deals—Michael Pizzi
The second complaint charges Michael Pizzi and Candia with engaging in a similar grant scheme in Miami Lakes and Medley. As more fully explained in the affidavit filed in support of the Pizzi complaint, Candia introduced Pizzi to the undercover FBI agents to help implement the grant scheme in Medley, where Pizzi was the Town Attorney. After a series of meetings with Candia and the undercover agents, Pizzi initially agreed to participate in the scheme in exchange for $750 in campaign contributions, which he received in three separate checks delivered to his office by the FBI confidential source.
Thereafter, to aid in the grant scheme’s success, Pizzi backdated a document that endorsed the undercover agents’ company. Pizzi also handled what he believed to be an audit telephone call from a federal grant auditor to confirm the grantee’s performance on the grant. During that call, which was recorded, Pizzi lied to and misled the auditor, who was in fact an undercover FBI agent, about the actual use of the grant money and the grantee’s performance. In return for Pizzi’s help in Medley, Pizzi received a $1,000 cash kickback and other things of value.
Later, with the intent of expanding the grant scheme to Miami Lakes, Pizzi worked to get a resolution passed in Miami Lakes that would authorize the undercover FBI agents’ company to seek additional grant funds for the City of Miami Lakes. In exchange for his work in Miami Lakes, Pizzi received additional $2,000 and $3,000 cash pay-offs.
These cases were investigated by the FBI Miami Area Public Corruption Task Force with assistance from the City of Miami Police Department, Hialeah Police Department, Miami Beach Police Department, Miami Dade Police Department and Customs and Border Protection – Internal Affairs. The cases are being prosecuted by Assistant U.S. Attorney Jared E. Dwyer.
A complaint is only an accusation and a defendant is presumed innocent until and unless proven guilty.
Attachment:
Manuel Marono etal Complaint (PDF)
Michael Pizzi etal Complaint (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Chicago Men Accused of Violating U.S. Sanctions by Providing Services to Zimbabwean Officials, Including President MugabeRead the Press Release
CHICAGO — Federal charges were unsealed today against two Chicago men for allegedly violating U.S. sanctions in late 2008 and 2009 by agreeing to assist Zimbabwe President Robert Mugabe and others in an effort to lift economic sanctions against them in exchange for $3.4 million. The defendants, PRINCE ASIEL BEN ISRAEL and C. GREGORY TURNER, allegedly met multiple times in the United States and in Africa with Zimbabwean government officials, including President Mugabe and Gideon Gono, governor of the Reserve Bank of Zimbabwe, who were individually subject to U.S. sanctions. During these meetings, Ben Israel and Turner allegedly agreed to engage in public relations, political consulting, and lobbying to have sanctions removed by meeting with and attempting to persuade U.S. federal and state government officials, including Illinois members of Congress and state legislators, to oppose the sanctions.
The sanctions against President Mugabe and other specially designated individuals in Zimbabwe were initially imposed in 2003 by President George W. Bush, and have been continued annually by President Obama, starting in March 2009, through the most recent 2 extension in March 2013. President Mugabe and his ruling ZANU-PF party have governed Zimbabwe since its independence in 1980. President Mugabe uses funds from Zimbabwe’s industries, particularly the diamond trade, to enrich himself and his family and to purchase the loyalty of subordinates, according to reports cited in the charges. The sanctions neither bar travel to Zimbabwe nor prohibit public officials from meeting with specially designated nationals to discuss removing the sanctions, but individuals may not provide lobbying, public relations, and media consulting services on behalf of or for the benefit of specially designated nationals.
Ben Israel, 72, appeared today before U.S. Magistrate Judge Arlander Keys in U.S. District Court in Chicago, and was released on his own recognizance with certain conditions. Turner, 71, also known as “Greg Turner,” of Chicago, is believed to be living in Israel and a warrant was issued for his arrest. Both defendants were charged with violating the International Emergency Economic Powers Act (IEEPA) in a criminal complaint filed last month and unsealed today.
The arrest and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; John Carlin, Acting Assistant Attorney General for National Security; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The Justice Department’s Counterespionage Section assisted in the investigation, which is continuing.
According to the charges, in early November 2008, Ben Israel and Turner began having discussions with Mugabe, Gono, and other ZANU-PF leaders regarding the influence Ben Israel and Turner could wield to have the sanctions removed. The defendants discussed with Mugabe, Gono, and others their association with many public officials who purportedly had close connections with then President-Elect Obama. Ben Israel and Turner allegedly violated IEEPA by engaging in public relations, political consulting, and lobbying efforts on behalf of President Mugabe and other Zimbabwe officials pursuant to a Nov. 26, 2008, “Consulting Agreement” that called for an initial payment of $90,000 and three subsequent equal installments of $1,105,000. In early December 2008, Ben Israel’s U.S. bank blocked a wire transfer of $89,970 into his account from a Zimbabwe official affiliated with ZANU-PF.
According to the complaint affidavit, Ben Israel and Turner:
- arranged for trips by federal and state government officials to meet with President Mugabe and other Zimbabwean officials, including in November and December 2008, and January, August, and December 2009;
- attempted to have Gono and other Zimbabwean officials speak at an issues forum in Washington, D.C., sponsored by a then U.S. Representative from California, and to assist those officials in obtaining visas to travel to the U.S. to attend the event;
- arranged for President Mugabe to meet with federal and state government officials in New York;
- lobbied a caucus of state legislators on behalf of Zimbabwean officials; and
- failed to apply to the Treasury Department for a license to engage in transactions and services on behalf of specially designated nationals.
In November 2008, the defendants allegedly arranged for Illinois State Senator A to meet with President Mugabe, after which Turner wrote an email to an associate stating that Turner and State Senator A “now understand the issues and will convey back to the President Elect.” Later that month, Turner sent an email to Ben Israel’s assistant stating they should see if State Senator A could “get 2 to 3 members of the House” and others to travel to Harare, Zimbabwe’s capital, in the coming weeks for a “fact finding vacation.” The defendants’ planning for a delegation of Illinois legislators to visit Zimbabwe included Turner asking Ben Israel to have State Senator A issue a letter to Gono, and Turner provided a draft of the letter to Gono, stating that State Senator A hoped the U.S. presidential election would cause the U.S. to take a fresh look at the sanctions. It also mentioned a potential State of Illinois trade office in Zimbabwe. The defendants and another individual allegedly arranged for Ben Israel, Illinois State Senator A and Illinois State Representative A to travel to South Africa in early December 2008. Travel records show the two legislators traveled to Israel but did not return as scheduled and extended their overseas stay.
Three days after they returned, a scheduler for President-Elect Obama’s transition team sent an email to another transition team member stating that State Representative A “wants a phone call from [transition team officials] regarding a meeting he had last week in Zimbabwe. I am not sure who to pass this on to but it’s the second time they have called.” The transition team forwarded this email to the FBI based on its concerns that State Representative A may have violated sanctions by traveling to Zimbabwe.
Ben Israel and Turner further planned for State Senator A and State Representative A to travel to Zimbabwe in January 2009, with additional emails indicating that Ben Israel would arrive with them, and wanted to provide Gono with an update on their progress to oppose and remove the sanctions. State Senator A cancelled his trip but travel records show that State Representative A traveled to South Africa and returned to the U.S. from Senegal in late January 2009.
Throughout 2009, Ben Israel and Turner allegedly continued to pass communications between Zimbabwean leaders and U.S. public officials while seeking payment for their services from Gono. In June 2009, Turner sent an email to Ben Israel and attached a letter Gono had written to U.S. Senator A. The letter stated that Gono had been “fully briefed about your [U.S. Senator A’s] current efforts on the sanctions issue by the very able” Turner. In the email to Ben Israel, Turner asked for a similar letter from State Senator A on the intent to solicit the support of national elected officials regarding the sanctions.
In September 2009, Turner emailed a Zimbabwean official letters that the two Illinois state legislators had written in July 2009, expressing their commitment to assist President Mugabe and Gono. State Senator A’s letter stated that he would use his leadership position with the international committee for the National Black Caucus of State Legislators to organize a delegation to travel to Zimbabwe.
In August 2009, an individual forwarded to Turner two official letters that U.S. Representative A, from Chicago, wrote to President Mugabe and Gono, stating that U.S. Representative A had been briefed by Ben Israel, and requesting a meeting with them in Harare in late August or early September. About the same time, Turner forwarded to a Zimbabwean official an itinerary for U.S. Representative B, also from Chicago, to travel to Africa as part of an official Congressional delegation that stopped in South Africa.
The affidavit further describes details of an effort by Ben Israel and Turner to have Gono speak at an issues forum hosted by then U.S. Representative C from California in September 2009. Turner allegedly attempted to assist Gono, as well as two other Zimbabwean officials, obtain visas to ensure that they could attend and participate in the forum.
Ben Israel and Turner also allegedly lobbied a caucus of state legislators to advocate for the removal of sanctions: Ben Israel spoke at the caucus’s convention in December 2009; they sought for the caucus to pass a resolution asking for the removal of sanctions; and they made plans to take caucus members to Zimbabwe as part of a December 2009 delegation before that trip was cancelled.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and William Ridgway, and David Recker, a trial attorney with the Justice Department’s Counterespionage Section.
Violating IEEPA carries a maximum penalty of 20 years in prison and a $1 million fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt against each defendant.
Complaint
Two Arrested for Smuggling Counterfeit ViagraRead the Press Release
HOUSTON – A federal indictment has been unsealed charging two men with conspiring to smuggle/traffic in counterfeit and misbranded medicine, specifically Viagra, United States Attorney Kenneth Magidson announced today along with Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.The 11-count indictment, was unsealed upon the arrest today of Jamal Khattab, 49, of Katy, and Fayez Al-Jabri, 45, of Chicago, Ill. Khattab will appear before U.S. Magistrate Judge Nancy Johnson in Houston tomorrow, while Al-Jabri made his appearance before U.S. Magistrate Judge Arlander Keys in Chicago, at which time he was ordered into custody pending an identity and detention hearing for Thursday morning.
The indictment charges Khattab with one count of conspiracy, one count of smuggling goods into the United States, two counts of trafficking in counterfeit goods, two counts of trafficking in misbranded drugs and two counts of trafficking in counterfeit drugs. Al-Jabri is charged with one count of trafficking in counterfeit goods, one count of trafficking in misbranded drugs and one count of trafficking in counterfeit drugs.
According to the indictment, from June 2010 through March 2012, the defendants conspired to and smuggled counterfeit Viagra from China into the U.S. The counterfeit Viagra would then allegedly be shipped either to Chicago or Houston in bulk for later distribution in smaller quantities.
According to the indictment, law enforcement initially became aware of the counterfeit Viagra smuggling in July 2010. At that time, Khattab was identified as an intended recipient of a package of counterfeit Viagra shipped from China to Houston which was intercepted by law enforcement agents in San Francisco. Agents with Homeland Security Investigations (HSI) and Food and Drug Administration - Office of Criminal Investigations (FDA-OCI) were notified of the shipment and commenced an investigation.
The indictment further alleges that from January through September 2011, Khattab and Al-Jabri delivered approximately 17,000 counterfeit and misbranded Viagra tablets to an undercover agent who successfully infiltrated the counterfeit pharmaceutical trafficking organization.
Both men face up to five years for the conspiracy, upon conviction, as well as a $250,000 fine. Trafficking in misbranding drugs and counterfeit drugs carries as possible punishment up to three years in prison and a $10,000 fine, while trafficking in counterfeit goods could result in a possible maximum sentence of 10 years in federal prison and another possible $250,000 fine. Finally, if convicted of smuggling goods into the U.S., Khattab could be sentenced to up to 20 years in prison and face a possible maximum fine of $2.5 million.
This matter was investigated by HSI, FDA-OCI, Department of State - Diplomatic Security Service, Houston Police Department and Chicago Police Department – Intelligence Section of the Organized Crime Bureau. The case is being prosecuted by Assistant United States Attorney Kebharu Smith and Senior Counsel John Zacharia of the Department of Justice’s Criminal Division’s Computer Crime and Intellectual Property Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Twin Brother Pharmacists Admit to Defrauding Patients and Insurance Companies of $1.5 MillionRead the Press Release
NEWARK, N.J. – Two pharmacists – twin brothers who previously owned the West Orange Pharmacy – today admitted reaping at least $1.5 million in illicit gains by defrauding patients, Medicaid and insurance companies over the past 15 years, U.S. Attorney Paul J. Fishman announced.
Robert Carlucci, 69, and William Carlucci, 69, both of Florham Park, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to separate informations charging them with conspiring to commit health care fraud.
According to documents filed in this case and statements made in court:
Robert Carlucci, William Carlucci, and another conspirator (identified as “L.S.” in the charging documents) participated in a variety of schemes designed to cheat customers and bilk insurance companies out of at least $1.5 million.
They used a practice they referred to as “TRADE-QUICK” to under-fill prescriptions. Each letter in “TRADE-QUICK” corresponded to a number, beginning with “T” for “1” through “K” for “0.” The conspirators would enter a two-letter code into the West Orange Pharmacy computer system that indicated how much of the prescription they intended to fill. The code “QK” indicated that a prescription for 90 dosage units would instead be filled with 60 dosage units, because the “Q” stood for the number “6” and the “K” stood for the number “0.” After under-filling the prescription, the co-conspirators billed Medicaid and other insurance companies for the fully filled prescription.
Without informing the patients, the conspirators substituted generic drugs for the brand-name drugs prescribed by the patients’ physicians. Then they billed Medicaid and other insurance companies for the full amount of the brand-name drugs. The co-conspirators entered the prescribing physicians’ phone numbers into the West Orange Pharmacy computer system as a code to indicate that they were utilizing this particular scheme.
The conspirators also filled outstanding refills on a given prescription without the patients’ knowledge and then billed Medicaid and the private insurers for the refills. They entered a dot (“.”) into the West Orange Pharmacy computer system as a code to indicate that they were utilizing this particular scheme.The conspirators would sometimes lose money on a given prescription. On those occasions, they looked through a patient’s profile and found additional costs that they could pass on to Medicaid and other insurance companies. They would submit bills for these additional costs, and they would enter the code “COV” into the West Orange Pharmacy computer system to reflect this scheme.
The conspirators purchased prescription drugs back from their customers and would reuse those drugs to fill other patient prescriptions. They billed Medicaid and other insurance companies for the full amount of the filled prescriptions.
The conspirators purchased prescription drugs from non-licensed wholesalers at a substantial discount to the drugs’ wholesale price, then dispensed these discounted drugs to patients and billed Medicaid and private insurers for the full costs associated with the drugs.
The health care fraud conspiracy charge to which Robert Carlucci and William Carlucci pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the scheme. As part of their guilty pleas, the defendants are agreeing to pay restitution of $1.5 million. Additionally, Robert Carlucci is forfeiting $849,568 and William Carlucci is forfeiting $558,717. Sentencing for both is scheduled for Nov. 12, 2013.U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski; and special agents of the Food & Drug Administration’s Office of Criminal Investigations, under the direction of Mark Dragonetti, with the investigation leading to today’s guilty pleas. He also thanked the Elizabeth, Clinton, Toms River, West Orange, and Marlboro Police Departments, along with the Essex County Sheriff’s Department for their work on this case.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Robert Carlucci: Ricardo Solano Esq., Newark
William Carlucci: Mark Berman Esq., River Edge, N.J.
Carlucci, William Information
Carlucci, Robert InformationTwice Convicted Sex Offender Sentenced to 15 Years for Receiving Child Pornography While on Federal Probation for Prior Sex OffenseRead the Press Release
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Larry Poole, age 50, of Laurel, Maryland today to 15 years in prison, followed by a lifetime of supervised release, for receipt of child pornography. Chief Judge Chasanow ordered that upon his release from prison, Poole 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; Chief Richard McLaughlin of the Laurel Police Department; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, on June 11, 2012 the Child Protective Services (CPS) received a report that Poole was sending text messages claiming to be molesting an unidentified nine year old girl. CPS referred the matter to the Laurel Police Department, who were not able to locate any child in Poole’s neighborhood matching the description used by Poole in his texts.
The Laurel police subsequently learned that Poole was on federal probation, and was registered as a sex offender based on two prior convictions: in 2003, for child abuse, in Baltimore County Circuit Court; and in 2006, for attempting to entice a minor to engage in sex, and possession of child pornography, in federal court for the District of Columbia.
Laurel police alerted Poole’s federal probation officer who made a surprise visit to Poole’s home on June 25, 2012. Poole consented to a preview of his cell phone, and the probation officer discovered videos and images of child pornography. Poole admitted that an individual brought child pornography to Poole’s home the previous day on a thumb drive or SD card and helped Poole load pornographic images of girls under 14 years old onto Poole’s computer and cell phone.
Laurel police and the FBI executed a search warrant, seized Poole’s cell phone and computer, and discovered approximately six videos and 120 images of child pornography.
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 Laurel Police Department and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Twenty-two People Charged with Firearm and Drug Violations in TuscaloosaRead the Press Release
TUSCALOOSA -- Federal Bureau of Alcohol, Tobacco, Firearms and Explosives agents working with local and state partners today completed a roundup of 22 individuals charged with violating federal and state firearms and narcotics laws, announced U.S. Attorney Joyce White Vance, ATF Special Agent in Charge Jeffrey Fulton, Tuscaloosa Police Chief Steven D. Anderson and Tuscaloosa County Sheriff's Lt. Andy Norris.This on-going law enforcement partnership has led to the indictment of 20 individuals on federal charges and two individuals on state charges. Six of the 22 defendants were arrested today in the Tuscaloosa area.
"Today ATF partnered with the Tuscaloosa Police Department and the Tuscaloosa County Sheriff's Office to take some of the worst offenders off the streets in areas that have become saturated with violent crime," Vance said. "As Americans, we all have Second Amendment rights, but this does not mean we should or will tolerate the use of firearms by criminals. People in our community who use guns to commit violent acts or to further drug crimes need to know there are federal prison cells waiting on them," she said.
"ATF's Frontline strategy utilizes every available resource to make our communities a safer place to live," Fulton said. "Violent criminals and gang members continue to use firearms as their tools of the trade to prey upon communities," he said.
"The Tuscaloosa Police Department is pleased to get these offenders out of our community and see them be held responsible for the crimes they have committed," Anderson said . "This has been an ongoing investigation and we are thankful that the U.S. Attorney's Office is prosecuting the cases. Working with the ATF and other law enforcement agencies to keep Tuscaloosa a safe community will always be a top priority," he said.
Thirteen people were arrested in the operation before today. Three remain to be arrested.
Arrested today were:
Matthew Sims, 27, McCalla.
Michael Barrett, 42, Gordo.
Florencewel Welch, 38, Tuscaloosa.
Timothy Wooley, 20, Tuscaloosa.
Raregus Rice, 29, Tuscaloosa.
LaJohnagan Sterling, 22, Tuscaloosa.Three MS-13 Leaders Found Guilty of Racketeering and Additional<br /> Charges for Multiple Murders and AttacksRead the Press Release
Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.
The verdicts, which followed a month-long trial, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Washington, D.C., Metropolitan Police Department (MPD).
“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman. “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”
“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen. “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights. I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang. The District is safer with these murderers behind bars.”
“This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”
“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier. “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible. Our communities will be safer as a result.”
Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia. At sentencing, scheduled for Nov. 4, 2013, each of the defendants faces a maximum sentence of life in prison.
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence. Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.
According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique. The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together. According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador. The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.
The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation. Twelve others have pleaded guilty to charges in the case.
The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.
Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.
The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos. Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.
The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008. Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington. Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.
According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md. Enriquez, another fellow MS-13 member, was fatally shot. Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.
This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
The case was investigated by ICE-HSI and the MPD. Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
ThreeRead the Press Release
MS-13 Leaders Found Guilty of Racketeering
And Additional Charges for Multiple Murders and Attacks
-Twelve Others Have Pled Guilty in the CaseWASHINGTON – Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.
The verdicts, which followed a month-long trial, were announced by U.S. Attorney Ronald C. Machen Jr.; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen. “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights. I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang. The District is safer with these murderers behind bars.”
“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman. “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”
“This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”
“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier. “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible. Our communities will be safer as a result.”
Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia. At sentencing, scheduled for Nov. 4, 2013 before the Honorable Senior Judge Royce C. Lamberth, each of the defendants faces a maximum sentence of life in prison.
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence. Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.
The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.
According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique. The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together. According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador. The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.
The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation. Twelve others have pleaded guilty to charges in the case.
The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.
Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.
The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos. Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.
The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008. Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington. Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.
According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md. Enriquez, another fellow MS-13 member, was fatally shot. Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.
This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section. Those providing assistance from the U.S. Attorney’s Office included Assistant U.S. Attorney Bill O’Malley; Victim/Witness Services Supervisor David Foster; Paralegal Specialists Candace Battle, Catherine O’Neal, and Candice Sisco; Legal Assistant Diane Brashears, and Litigation Technology Specialists Paul Howell, William Henderson, and Kimberly Smith.
The case was investigated by ICE-HSI and the MPD. Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).
13-278Texas Businessman Agrees to Settle False <br /> Claims Allegations Involving the E-Rate ProgramRead the Press Release
Larry Lehmann of Giddings, Texas has agreed to pay $400,000 to settle allegations that he violated the False Claims Act in connection with the Federal Communications Commission’s E-rate Program, the Department of Justice announced today. The E-rate Program, created by Congress in the Telecommunications Act of 1996, subsidizes eligible equipment and services to make Internet access and internal networking more affordable for public schools and libraries. The Houston Independent School District (HISD) was one of the applicants that successfully sought and received E-rate subsidies from 2004 through 2006.
“The E-rate Program provides vital support for our nation’s students and schools,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the Department of Justice. “We are committed to protecting the integrity of this important program, which helps our children connect to the digital world.”
“Our office is committed to protecting the integrity of government initiatives,” said U.S. Attorney Kenneth Magidson. “We will continue to work closely with the Department in cases such as this one to ensure the E-rate and other federal programs are free from fraudulent and deceitful claims.”
Lehmann functioned as the CEO and managing partner of Acclaim Professional Services (Acclaim), which partnered with other companies to provide E-rate funded equipment and services to HISD during this period. The United States contended that, in violation of E-rate competitive bidding requirements and HISD procurement rules, Lehmann provided gifts and loans to HISD employees, including tickets to sporting events and two loans totaling $66,750 to an HISD employee who was involved in the procurement and administration of HISD’s E-rate projects.
The United States also alleged that Lehmann helped devise a scheme in which HISD outsourced some of its employees to Acclaim, which allowed them to continue to work for HISD while passing the cost on to the E-rate Program. The United States further alleged that, with Lehmann’s approval, Acclaim hid the cost of these employees in its E-rate Program invoices by rolling them into the cost of eligible goods and services.
The settlement with Lehmann is part of a broader investigation by the United States of E-rate funding requests submitted by HISD and the Dallas Independent School District (DISD). The government previously recovered $16.25 million from Hewlett-Packard, $850,000 from HISD, and $750,000 from DISD. The government’s investigation was initiated, in part, by a qui tam or whistleblower lawsuit filed under the False Claims Act by Dave Richardson and Dave Gillis, who investigated allegations of improprieties based on Richardson’s experience bidding for contracts at HISD and DISD. The False Claims Act authorizes private parties to file suit for false claims on behalf of the United States and share in the government’s recovery. The United States intervened in Richardson and Gillis’ lawsuit, and added Lehmann as a defendant.
“E-rate is one of the FCC’s biggest success stories, helping connect nearly every U.S. library and school to the Internet,” said Julie Veach, Chief of the FCC Wireline Competition Bureau. “We take any abuse of our rules seriously and thank the Department of Justice for their assistance in protecting the integrity of the E-rate Program for students, teachers, and libraries across the country. Today’s action is a signal to those interested in profiting at the expense of our nation’s schools and libraries: fraud doesn’t pay.”
This case was handled by the U.S. Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Southern District of Texas, and the FCC’s Office of the Inspector General and Office of the General Counsel.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against Lehmann is captioned United States ex rel. Dave Richardson and Dave Gillis v. Larry Lehmann, Civil Action No. 4:05-cv-3836 (S.D. Tex.).Texas Businessman Agrees to Settle False Claims Allegations Involving the E-rate ProgramRead the Press Release
WASHINGTON – Larry Lehmann of Giddings, Texas has agreed to pay $400,000 to settle allegations that he violated the False Claims Act in connection with the Federal Communications Commission’s E-rate Program, the Department of Justice announced today. The E-rate Program, created by Congress in the Telecommunications Act of 1996, subsidizes eligible equipment and services to make Internet access and internal networking more affordable for public schools and libraries. The Houston Independent School District (HISD) was one of the applicants that successfully sought and received E-rate subsidies from 2004 through 2006.
“The E-rate Program provides vital support for our nation’s students and schools,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the Department of Justice. “We are committed to protecting the integrity of this important program, which helps our children connect to the digital world.”
“Our office is committed to protecting the integrity of government initiatives,” said U.S. Attorney Kenneth Magidson. “We will continue to work closely with the Department in cases such as this one to ensure the E-rate and other federal programs are free from fraudulent and deceitful claims.”
Lehmann functioned as the CEO and managing partner of Acclaim Professional Services (Acclaim), which partnered with other companies to provide E-rate funded equipment and services to HISD during this period. The United States contended that, in violation of E-rate competitive bidding requirements and HISD procurement rules, Lehmann provided gifts and loans to HISD employees, including tickets to sporting events and two loans totaling $66,750 to an HISD employee who was involved in the procurement and administration of HISD’s E-rate projects.
The United States also alleged that Lehmann helped devise a scheme in which HISD outsourced some of its employees to Acclaim, which allowed them to continue to work for HISD while passing the cost on to the E-rate Program. The United States further alleged that, with Lehmann’s approval, Acclaim hid the cost of these employees in its E-rate Program invoices by rolling them into the cost of eligible goods and services.
The settlement with Lehmann is part of a broader investigation by the United States of E-rate funding requests submitted by HISD and the Dallas Independent School District (DISD). The government previously recovered $16.25 million from Hewlett-Packard, $850,000 from HISD, and $750,000 from DISD. The government’s investigation was initiated, in part, by a qui tam or whistleblower lawsuit filed under the False Claims Act by Dave Richardson and Dave Gillis, who investigated allegations of improprieties based on Richardson’s experience bidding for contracts at HISD and DISD. The False Claims Act authorizes private parties to file suit for false claims on behalf of the United States and share in the government’s recovery. The United States intervened in Richardson and Gillis’ lawsuit, and added Lehmann as a defendant.
“E-rate is one of the FCC’s biggest success stories, helping connect nearly every U.S. library and school to the Internet,” said Julie Veach, Chief of the FCC Wireline Competition Bureau. “We take any abuse of our rules seriously and thank the Department of Justice for their assistance in protecting the integrity of the E-rate Program for students, teachers, and libraries across the country. Today’s action is a signal to those interested in profiting at the expense of our nation’s schools and libraries: fraud doesn’t pay.”
This case was handled by the U.S. Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Southern District of Texas, and the FCC’s Office of the Inspector General and Office of the General Counsel.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against Lehmann is captioned United States ex rel. Dave Richardson and Dave Gillis v. Larry Lehmann, Civil Action No. 4:05-cv-3836 (S.D. Tex.).
Stone Mountain Man Sentenced for Eight Armed RobberiesRead the Press Release
ATLANTA - Laquan Smith was sentenced to 18 years in federal prison for the armed robbery of eight businesses and for possession of a stolen firearm.
“Over a short three-week span in December 2011, this defendant—who was already on state parole for armed robbery and on bond for burglary—went on an armed robbery rampage in the Memorial Drive area, going so far as to tie up his victims during three robberies,” said United States Attorney Sally Quillian Yates. “With this conviction and sentence, his life of crime on the streets has ended for the foreseeable future.
“The criminal history of Smith shows a complete and utter disregard for the law and lives of others,” said ATF Special Agent in Charge Christopher Shaefer. “As an agency and unified law enforcement community, we will not tolerate armed violent felons terrorizing and reducing the quality of life in the neighborhoods where we live, work, and play.”
“The sentencing of Laquan Smith exemplifies the joint commitment of local and federal law enforcement agencies to ensure violent offenders are brought to justice and are not allowed to continue to victimize our community. This type of lawless behavior is not acceptable and we are steadfast in our efforts to arrest those who engage in such crimes,” said DeKalb County Police Chief Cedric Alexander.
According to United States Attorney Yates, the charges and other information presented in court: From December 8 through December 27, 2011, Smith, who was aided by Troy Thomas in two robberies, robbed eight different businesses, including two Dollar General stores on December 20, and 27, 2011; three Family Dollar stores on December 8, 14, and 22, 2011; Pet Supermarket on December 18, 2011; Orbit Video on December 19, 2011; and a Subway on December 22, 2011. During the robberies, Smith took a total of approximately $7,410. Smith was arrested two weeks after the December 27, 2011, Dollar General robbery, after an alert individual recorded the license plate number of the getaway car used in that robbery and reported it to law enforcement.
Smith, 24, of Stone Mountain, Ga., was sentenced today by United States District Judge Richard W. Story to serve 18 years in federal prison to be followed by 5 years of supervised release, and fined $900. Smith was convicted of these charges on January 31, 2013, upon his plea of guilty.
Troy Thomas, Smith’s co-defendant who participated in two of the robberies, was sentenced to 11 years, 2 months on April 29, 2013, by Judge Richard W. Story.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DeKalb County Police Department.
Assistant United States Attorney Joseph Plummer prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information 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.Statement of Manhattan U.S. Attorney Preet BhararaOn the Convictions in U.S. V. Lesniewski, Et Al.Read the Press Release
“Today, Peter Lesniewski, Marie Baran and Joseph Rutigliano stand convicted of participating in the massive LIRR disability fraud that turned a safety net for the truly disabled into a gravy train for the corrupt. Dr. Lesniewski enabled hundreds of LIRR employees to dupe the government through medical paper trails filled with bogus diagnoses, while Baran and Rutigliano, in exchange for payments of thousands of dollars, helped lard the employees’ disability benefit applications with lies. Lesniewski, Baran and Rutigliano served as engines of this fraud that led to a staggering 79% of LIRR retirees from 1998 to 2011 receiving federal disability benefits, costing the government hundreds of millions of dollars. Like the 25 people who previously pled guilty, these defendants now have been brought to justice and will pay for their central roles in this brazen scheme.”
St. Francis Woman Sentenced for Making False Statements to A Federal AgencyRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, woman convicted of Making False Statements to a Federal Agency was sentenced on August 5, 2013, by U.S. District Judge Roberto A. Lange.
Waln was remanded to the custody of the U.S. Marshals Service.
Candice Waln, age 34, was sentenced to 1 month in custody, 1 year of supervised release, and $100 to the Federal Crime Victims Fund.
Waln was indicted by a federal grand jury on December 11, 2012, and pled guilty to the charge on April 30, 2013.
The conviction stems from an incident that took place on November 9, 2012, when Federal agents arrived at Waln’s residence to serve an arrest warrant on an individual. Waln told the agents that individual was not present and was in another community, when in fact he was actually hiding nearby.
The investigation was conducted by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.Spokane Valley Man Sentenced to Five Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael A. McGuffy, age 33, of Spokane Valley, Washington, was sentenced today after having previously plead guilty on April 17, 2013, to Receipt of Child Pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced McGuffy to a five year term of imprisonment, to be followed by a twenty year term of court supervision after he is released from Federal prison. In addition, McGuffy was ordered to forfeit the computer and USB devices he used to receive the child pornography images.
According to information disclosed during the court proceedings, in March of 2012, a Spokane County Sheriff's Office Internet undercover investigation discovered that McGuffy was sharing images of child pornography with other individuals, via the Internet, using a peer to peer file sharing program. On April 12, 2012, law enforcement from the Eastern District of Washington, Internet Crimes Against Children (ICAC) Task Force executed a search warrant at McGuffy's residence in Spokane Valley. The officers discovered McGuffy had downloaded in excess of 2000 images and 57 videos of child pornography onto his computer, which included images of minors under the age of twelve and sadistic and masochist images.
Michael C. Ormsby stated, "that our office and law enforcement partners take these cases very seriously and are committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is particularly important because of the tender age of the innocent victims."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the United States Secret Service and the Spokane County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-0025-RMP
Shiprock Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Tyrell Elliot Frank, 26, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to a federal assault charge. Under the terms of his plea agreement, Frank will be sentenced to 41 months in federal prison followed by a term of supervised release to be determined by the court.
Frank was arrested in April 2012, based on a criminal complaint charging him with assault. He subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury. According to court filings, on April 1, 2012, Frank repeatedly struck another Navajo man with a machete. As a result of the assault, the victim suffered severe cuts to his left arm and his back.
During today’s proceedings, Frank pleaded guilty to Count 2 of the indictment, charging him with assault resulting in serious bodily injury. In his plea agreement, Frank admitted that during the early hours of April 1, 2012, people arrived at his residence and approached him. Frank stated that, because he recently had been released from the hospital after having been assaulted, he struck a person he did not know with a machete causing him serious bodily injury. Frank stated that he later learned that the victim did not intend to harm him.
Frank has been in federal custody since his arrest on April 1, 2012, and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Romanian National Sentenced for Immigration FraudRead the Press Release
BOISE – Lucian Ioan Belean, 30, a Romanian national, was sentenced today in United States District Court to two years of probation for making fraudulent statements in an application for immigration registration, a misdemeanor, U.S. Attorney Wendy J. Olson announced. U.S. Magistrate Judge Ronald E. Bush also ordered Belean to pay a $1,000 fine and to voluntarily depart from the United States within 60 days. The defendant previously spent two months incarcerated pending his transfer to the District of Idaho.
According to the plea agreement, on November 2, 2007, Belean entered into a fraudulent marriage with a United States citizen for the sole purpose of obtaining immigration benefits. On December 23, 2007, he filed an application with U.S. Citizenship and Immigration Services (USCIS) seeking lawful permanent resident (LPR) status based on the fraudulent marriage. USCIS approved the application on March 14, 2008. According to the plea agreement, Belean would not have been granted LPR status had USCIS known of the fraudulent nature of the marriage.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Puerto Rico Man Sentenced to Life in Prison <br /> for Murdering a Federal WitnessRead the Press Release
Xavier Jiménez-Benceví, aka “Xavi,” 28, was sentenced to life in prison following his conviction for murdering a federal witness on a drug trafficking case.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement after sentencing by U.S. District Judge Jose A. Fuste.
On April 30, 2013, Jiménez-Benceví was convicted of the murder of a federal witness, possession of a firearm, attempted kidnapping and possession of a machine gun. According to evidence presented in court, on June 21, 2010, Jimenez-Benceví enlisted the help of others to lure Delia Sánchez-Sánchez – a woman he believed was about to report his drug trafficking activities to federal agents – to the parking lot of a supermarket, where Jimenez-Benceví executed her with a fully automatic 9mm handgun.
Evidence provided in court also showed that Jimenez-Benceví was previously convicted in Puerto Rico of murdering Eduardo Cabrerra-Arriba on Aug. 28, 2007, and shooting at three police officers in the Falin Torrech public housing project on Sept. 16, 2010. In addition, the court heard evidence that Jimenez-Benceví wounded 11 people with a shooting at the Victory Shopping Center on May 25, 2011.
The case was investigated by the FBI and the Puerto Rico Police Department, and prosecuted by Assistant U.S. Attorneys José Capó-Iriarte, Ilianys Rivera-Miranda and Luke V. Cass, and Trial Attorneys James D. Peterson and Rich Burns of the Criminal Division’s Capital Case Unit.
Press Conference in Utica to follow the last sentencing in the McGinn Smith caseRead the Press Release
ALBANY, NY- Defendants Timothy M. McGinn and David L. Smith will be sentenced on Wednesday, August 7, 2013. McGinn will be sentenced at 10 am; Smith will be sentenced at 2 pm. Both sentencings will take place before United States District Judge David N. Hurd at the Alexander Pimie Federal Building, 10 Broad Street, Utica, New York.
A press conference will be held following the 2 pm sentencing in the Bankruptcy Hearing Room on the first floor of the Alexander Pirnie Federal Building, 10 Broad Street, Utica, NY 13501.
Press Conference to Follow Arraignments August 8, 2013, at 11:00 A.m. (MDT) in Great Falls, Montana Regarding A Case Investigated as Part of the Guardians Project of the United States Attorney's OfficeRead the Press Release
United States Attorney for the District of Montana Michael W. Cotter, Federal Bureau of Investigation Assistant Special Agent in Charge Scott Vito, Health and Human Services, Office of Inspector General Special Agent in Charge Gerald T. Roy, and Internal Revenue Service, Criminal Investigations Division Assistant Special Agent in Charge Lilia Ruiz and Supervisory Special Agent Brian Payne, will hold a press conference on August 8, 2013, at 11:00 a.m. (MDT) following arraignments. The press conference will be held at the U.S. Attorney's Office, 119 1st Ave. N., #300, in Great Falls, Montana.
The purpose of the press conference will be to comment on the ongoing efforts of the Guardians Project and the extraordinary efforts that have resulted from focused, inter-agency cooperation in the investigation of fraud in Indian Country in Montana.
Plainfield, N.J., Woman Admits She Was Lookout, Getaway Driver for Armed Bank RobberiesRead the Press Release
NEWARK, N.J. – A Plainfield, N.J., woman admitted today to playing a role in three armed robberies of banks in Somerset and Middlesex, N.J., U.S. Attorney Paul J. Fishman announced.
Andrea Dorsey, 54, of Plainfield, N.J., pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with three counts of bank robbery.
According to documents filed in this case and statements made in court: Claude Williams, 61, of Elizabeth, N.J., was charged in July 2012 by superseding complaint with six counts of bank robbery and two counts of using a firearm in furtherance of a crime of violence. Those charges remain pending.
Williams would usually send an accomplice into banks shortly before robbing them. Dorsey admitted she went into banks to gather information for Williams about how many employees were working and served as the getaway driver during the armed robberies of the Financial Resources Federal Credit Union located in Somerset, N.J., on Sept. 26, 2011, and the Somerset Savings Bank located in Somerville, N.J., on Nov. 21, 2011.
Williams and Dorsey were arrested on July 30, 2012, blocks from a Unity Bank in Somerset. Williams was wearing a bandana and law enforcement found a handgun and white gloves in the car.
Dorsey faces a maximum potential penalty of 25 years in prison and a $250,000 fine, or twice the gain or loss from the offense, on each of the three counts. Sentencing is currently scheduled for Oct. 30, 2013.
The charges and allegations contained in the superseding complaint against Williams are merely accusations and the defendant is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their excellent work.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office General Crimes Unit in Newark.13-323
Defense counsel: Anthony J. Iacullo Esq., Nutley, N.J.
Dorsey, Andrea Information
Pine Ridge Man Pleads Guilty to Domestic AssaultsRead the Press Release
United States Attorney Brendan V. Johnson announced that Jon Craig Dillon, a/k/a JC Dillon, a/k/a Jon Craig Goings, age 25, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on August 2, 2013, and pled guilty to Assault with a Dangerous Weapon and Assault by Striking, Beating or Wounding.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charges relate to Dillon assaulting his female companion numerous times in 2012. The assaults resulted in a kidney injury, a head injury, choking injuries, and extensive bruising covering her body.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.Pennsylvania Man Convicted of Attempted Enticement of A MinorRead the Press Release
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian announced that, following a jury trial, WILLIAM KEITH JAMIESON, (52, of Lancaster, PA) was found guilty in U.S. District Court in Albany, N.Y. of the felony offense of Attempted Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b). JAMIESON is facing a statutory mandatory minimum sentence of 10 years and a maximum sentence of up to life imprisonment, a term of supervised release of at least five years and up to lifetime supervision, a maximum fine of $250,000.00 and mandatory registration as a sex offender. JAMIESON is scheduled to be sentenced on November 26, 2013, before Chief Judge Gary L. Sharpe, in Albany, New York.
JAMIESON was arrested on July 2, 2012, at Congress Park in Saratoga Springs, New York, having traveled to the park to meet “Kara,” a teenage girl he met online and had been communicating with for four and a half months via internet chat relay, Yahoo!, and Skype. In reality, “Kara” was a female Saratoga Springs Police Investigator who was working undercover pretending to be a 14 year old girl in chat rooms policing for internet child predators. JAMIESON met “Kara” in the “dad&daughtersex” chat room. In the online communications, JAMIESON was repeatedly told “Kara’s” age was 14, and JAMIESON told “Kara” that he would travel to Saratoga Springs, rent a hotel room, and have sex with her in the hotel room. On July 2, 2012, JAMIESON rented a motel room near Congress Park, walked to a prearranged meeting spot, and instead of finding “Kara,” he met with an arrest team from the Albany Child Exploitation Task Force, including officers from the Saratoga Springs Police Department and the Rensselaer County Sheriff’s Office. A search of JAMIESON’s motel room revealed condoms, computer equipment, a camera, and a bottle of nail polish that he promised to bring as a present for “Kara.”
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, Albany, N.Y., the Saratoga Springs Police Department, and the Rensselaer County Sheriff’s Office, as part of the Albany Child Exploitation Task Force. The case was prosecuted by Assistant United States Attorney Tamara B. Thomson. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Oldcastle Precast, Inc. to Pay False Claims Act SettlementRead the Press Release
Oldcastle Precast, Inc. (“Oldcastle”), headquartered in Atlanta, Georgia, has agreed to pay the United States $95,000.00 to settle False Claims Act (“FCA”) allegations, announced David Rivera, Acting United States Attorney for the Middle District of Tennessee.
The settlement resolves allegations that Oldcastle submitted false claims for payment to the United States for products that did not meet required specifications. These products included concrete catch basins that are typically used in and adjacent to roadway construction.
The United States alleged that Oldcastle submitted these claims after repeatedly certifying that its products were in reasonable compliance and were produced pursuant to applicable procedures. The investigation found, however, that many of the products did not meet specifications as they related to the strength and placement of rebar within the pre-cast products.
Although Oldcastle provided these products for projects primarily administered by the Tennessee Department of Transportation, a substantial portion of the funding for these projects was provided by the United States through the Federal Highway Administration, an agency within the U.S. Department of Transportation (“DOT”).
“Enforcement of the False Claims Act remains a top priority of the Department of Justice and this office,” said Acting U.S. Attorney David Rivera. “This enforcement effort extends to all efforts to procure funds from the United States and its agencies by false pretenses. The U.S. Attorney’s Office for the Middle District of Tennessee will continue to devote the resources necessary to vigorously protect taxpayers’ interests and aggressively pursue fraud, waste, and abuse.”
The federal investigation examined conduct originally discovered by the Tennessee Department of Transportation. An efficient and thorough investigation allowed a resolution to be achieved without filing a complaint, conserving judicial resources and government funds. The settlement was consummated with the understanding that the U.S. Department of Transportation, Federal Highway Administration, may take additional steps in its discretion and pursuant to the applicable regulations to require Oldcastle to adopt compliance measures to reduce the likelihood of future violations of the FCA and other procurement regulations.
This matter was investigated by the Department of Transportation and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.Oakland County Doctor and Owner of Michigan Hemotology and Oncology Centers Charged in $35 Million Medicare Fraud SchemeRead the Press Release
Dr. Farid Fata, 48, of Oakland Township, Michigan, was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, FBI Special Agent in Charge Robert D. Foley III and Special Agent in Charge Lamont Pugh of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
“Dr. Fata allegedly perpetrated a brazen and dangerous fraud that time and again jeopardized his patients’ wellbeing,” said Acting Assistant Attorney General Raman. “The conduct alleged today is chilling, with the defendant endangering patient safety through misdiagnoses, over- or mis-prescription of chemotherapy and other treatments, and delay of hospital care for patients with serious injuries. Through the work of our dedicated prosecutors and agents, today we have taken swift action to safeguard patient safety and hold the defendant to account.”
“Our first priority is patient care,” said U.S. Attorney McQuade. “The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered.”
“Violating a patient's trust and placing them at risk through fraudulent abuse of our nation's health care system is deplorable and a crime which the FBI takes most seriously,” said FBI Special Agent in Charge Foley. “The FBI remains committed to the arrest and prosecution of those who commit health care fraud.”
“The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well,” said HHS-OIG Special Agent in Charge Pugh. “The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars.”
According to the complaint, Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO), which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park. It was through MHO that Dr. Fata allegedly submitted fraudulent claims to Medicare for medically unnecessary services, including chemotherapy treatments, Positron Emission Tomograph (PET) scans and a variety of cancer and hematology treatments for patients who did not need them. In the course of the scheme, Dr. Fata falsified and directed others to falsify documents to justify cancer treatments for billing purposes. MHO billed Medicare for approximately $35 million dollars over a two-year period, approximately $25 million of which is attributable to Dr. Fata.
The complaint further alleges that Dr. Fata directed the administration of unnecessary chemotherapy to patients in remission; deliberate misdiagnoses of patients as having cancer to justify unnecessary cancer treatment; administration of chemotherapy to end-of-life patients who would not have benefitted from the treatment; deliberate misdiagnoses of patients without cancer to justify expensive testing; fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments, and distribution of controlled substances to patients without medical necessity or through administering the drugs at dangerous levels.
Dr. Fata will be making his initial appearance in federal court this afternoon at 1 p.m. in Detroit.
Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553.
The case is being prosecuted by Assistant Chief Catherine Dick, supervisor of the Detroit Medicare Fraud Strike Force and Trial Attorney Matthew Thuesen of the Department of Justice as well as Sarah Resnick Cohen, Deputy Chief of the Health Care Fraud Unit at the U.S. Attorney’s Office, and Justin Bidwell, Special Assistant United States Attorney. The investigations were conducted jointly by the FBI and HHS-OIG, along with the assistance of the Michigan Attorney General’s Office.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team, go to: www.stopmedicarefraud.gov.
Oakland County Doctor and Owner of Michigan Hemotology and Oncology Centers Charged in $35 Million Medicare Fraud SchemeRead the Press Release
Dr. Farid Fata, 48, of Oakland Township, Michigan was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments, announced United States Attorney Barbara L. McQuade and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division
Joining in the announcement were Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation and Special Agent in Charge Lamont Pugh, Health and Human Services, Office of Inspector General (HHS-OIG).United States Attorney Barbara L. McQuade stated, “Our first priority is patient care. The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered.”
FBI Special Agent in Charge Robert D. Foley, III stated, "Violating a patient's trust and placing them at risk through fraudulent abuse of our nation's health care system is deplorable and a crime which the FBI takes most seriously. The FBI remains committed to the arrest and prosecution of those who commit health care fraud."
HHS-OIG Special Agent in Charge Lamont Pugh stated, "The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well. The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars."
According to the complaint, Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO) which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park. It was through MHO that Dr. Fata allegedly submitted fraudulent claims to Medicare for medically unnecessary services, including chemotherapy treatments, Positron Emission Tomograph (PET) scans and a variety of cancer and hematology treatments for patients who did not need them. In the course of the scheme, Dr. Fata falsified and directed others to falsify documents. MHO billed Medicare for approximately $35 million dollars over a two-year period, approximately $25 million of which is attributable to Dr. Fata.The complaint further alleges that Dr. Fata directed the administration of unnecessary chemotherapy to patients in remission; deliberate misdiagnosis of patients as having cancer to justify unnecessary cancer treatment; administration of chemotherapy to end-of-life patients who will not benefit from the treatment; deliberate misdiagnosis of patients without cancer to justify expensive testing; fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments, and distribution of controlled substances to patients without medical necessity or are administered at dangerous levels.
The complaint goes on to allege that Dr. Fata directed that chemotherapy be administered to patients who had other serious medical conditions that required immediate treatment before he would permit them to go to the hospital. In one instance, a male patient fell down and hit his head when he came to MHO. Dr. Fata insisted that the patient receive his chemotherapy before he could be taken to the emergency room. MHO administered the chemotherapy, after which the patient was taken to the emergency room. The patient later died from his head injury. In the second instance, a patient came to MHO with extremely low sodium levels, which can be fatal. Dr. Fata again directed that the patient first receive chemotherapy before being taken to the emergency room. MHO administered the chemotherapy and the patient was taken to the emergency room and hospitalized.
Dr. Fata will be making his initial appearance in federal court this afternoon at 1pm.
Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553.
The case is being prosecuted by Assistant Chief Catherine Dick, supervisor of the Detroit Medicare Fraud Strike Force and Trial Attorney Matthew Thuesen of the Department of Justice as well as Sarah Resnick Cohen, Deputy Chief of the Health Care Fraud Unit at the U.S. Attorney’s Office, and Justin Bidwell, Special Assistant United States Attorney. The investigations were conducted jointly by the FBI and HHS-OIG, along with the assistance of the Michigan Attorney General’s Office.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team, go to: www.stopmedicarefraud.gov.New Haven Man Charged with Federal Crack Cocaine, Marijuana and Firearms OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging FRANK D. GOMEZ, 34, of New Haven, with crack cocaine, marijuana and firearms offenses.
As alleged in the four-count indictment, on July 14, 2013, GOMEZ possessed with intent to distribute 28 grams or more of crack cocaine and a quantity of marijuana. The indictment further alleges that GOMEZ, a previously convicted felon, also possessed a loaded .380 caliber Kel-Tec semi-automatic pistol in furtherance of his drug trafficking activities.
The indictment charges GOMEZ with possession with intent to distribute 28 grams or more of cocaine base (“crack”), which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and with possession with intent to distribute marijuana, which carries a maximum term of imprisonment of 20 years. The indictment also charges GOMEZ with possession of a firearm in furtherance of drug trafficking, which carries a mandatory consecutive prison term of five years, and possession a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years. If GOMEZ is determined to be an Armed Career Criminal based on his prior criminal record, he faces a mandatory term of imprisonment of 15 years and a maximum term of life.
Acting U.S. Attorney Daly stressed that an Indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case has been assigned to U.S. District Judge Janet C. Hall in New Haven.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant United States Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Haven Crack Dealer Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RUFUS HUNTER, also known as “Trip,” and “Triple Black,” 31, of New Haven, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 130 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine. Phone calls intercepted during the course of the investigation revealed that HUNTER was at the center of a crack distribution ring and a member of the Bloods, which at the time was feuding with the rival Grape Street Crips. Between December 2011 and April 2012, investigators made four controlled purchases of crack cocaine from HUNTER.
On May 31, 2012, investigators executed a search and seizure warrant at a West Haven residence associated with HUNTER and seized a loaded .45 caliber pistol and a nine millimeter pistol, both of which have been identified as belonging to HUNTER.
On April 16, 2013, HUNTER pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Nespelem Man Sentenced to Federal Prison for Domestic ViolenceRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Tommie Joe Flett, age 41, of Nespelem, Washington, was sentenced on Monday, August 5, 2013, after having previously pleaded guilty on April 29, 2013, to one count of Assault With a Dangerous Weapon and one Count of Domestic Assault by an Habitual Offender. United States District Court Judge Fred Van Sickle sentenced Flett to a thirty-four month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on June 5, 2012, Flett entered an apartment where his girlfriend was watching a movie with her girlfriend. Flett entered the living room and began hitting his girlfriend, then after knocking her to the ground, Flett began kicking her. Flett then choked his girlfriend. He then brandished a knife and cut her on the shoulder. The victim fled to a bathroom, where Flett brandished another knife, held it to her throat and said he wanted to kill her. Colville Tribal Police officers entered the apartment after a witness called 9-1-1. Flett was found in the apartment and arrested.
Michael C. Ormsby stated, "domestic violence is an ongoing problem that requires decisive action." "The United States Attorney's Office for the Eastern District of Washington is, and will continue to be, committed to aggressively prosecuting domestic violence crimes that occur within federal jurisdiction, including the Indian reservations in the District."
This investigation was conducted by FBI and the Colville Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, Assistant United States Attorney for the Eastern District of Washington.
CR-12-00132-FVS
Mortgage Company Executive Pleads Guilty in Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, and Drew J. Breakspear, Commissioner, State of Florida’s Office of Financial Regulation, announce that Patrick J. Mansell, 68, of Boca Raton, FL, Vice President of Coastal States Mortgage Corporation (Coastal), pled guilty to conspiracy to commit wire fraud to defraud government sponsored entities, Fannie Mae and Freddie Mac.
According to the Information, from April 2007 through November 2008, in the Southern District of Florida, Coastal was a licensed mortgage brokerage whose primary business activity was the selling and servicing of mortgage loans for both Freddie Mac and Fannie Mae. At the change of plea hearing, Mansell admitted that Coastal failed to remit some of the mortgage loan payoffs it received and processed from borrowers to Freddie Mac and Fannie Mae, as required by the contractual agreement entered into between them. This resulted in an $18,735,903.77 loss to Freddie Mac and Fannie Mae. The misappropriation was concealed by the regular submission of false financial reports and monthly mortgage payments by Coastal, via an interstate internet portal, to Freddie Mac and Fannie Mae. These monthly mortgage payments by Coastal misled the lenders into believing the loans were still performing.
The defendant faces a statutory maximum penalty of five years’ in prison, followed by a three year period of supervised release, and a fine of up to $250,000 and restitution. Sentencing is scheduled for October 15, 2013 before U.S. District Judge Robin Rosenbaum.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General and State of Florida’s Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Monroe County Man Sentenced to Prison ForRead the Press Release
Federal Cocaine Trafficking And Money Laundering Charges
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 60 months in prison on the charges of conspiracy to distribute cocaine and conspiracy to commit money laundering.
According to United States Attorney Peter J. Smith, Dickson Gutierrez, age 37, formerly of Stroudsburg, Monroe County, previously admitted to participating in a conspiracy to distribute powder cocaine and to commit money laundering in the Monroe County and Northampton County areas in 2011. As part of his plea agreement, Gutierrez also agreed to forfeit to the United States two properties in the Dominican Republic which were purchased with the proceeds of cocaine trafficking activity.
In addition to the prison term, Senior Judge Kosik also ordered that Gutierrez be supervised by a probation officer for four years following his prison sentence.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Minnesota Man Sentenced for BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that a White Earth, Minnesota, man convicted of burglary was sentenced on August 2, 2013, by U.S. District Judge Karen E. Schreier.
Raymond Jackson, age 33, was sentenced to 15 months in custody with credit for time served, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
Jackson was indicted by a federal grand jury on January 13, 2013, and pled guilty to the charge on May 13, 2013.
The conviction stems from an incident that took place August 15, 2012, when Jackson entered and remained in a residence in Marty, South Dakota, with the intent to commit a crime. Jackson made entry into the residence by walking through an unlocked door, where he surprised the sleeping resident inside the home. The resident woke up, struggled briefly with Jackson, and Jackson ran out of the home. He was arrested a short time later.
The investigation was conducted by the Bureau of Indian Affairs, Law Enforcement Services, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Thomas J. Wright.
Jackson will self-surrender to the custody of the U.S. Marshal later this month.Mexican National Pleads Guilty to Making False Statement to Obtain A U.S. PassportRead the Press Release
BOISE – Lorena Torres-Flores, 39, a Mexican national formerly living in Jerome, Idaho, pleaded guilty today in United States District Court to one count of making a false statement in an application for a passport, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on September 13, 2010, Torres-Flores filed an application for a United States passport in Jerome. The passport application falsely identified Torres-Flores as another individual, and included that individual’s date of birth, social security number and parental information. At the time that Torres-Flores filed the passport application, she intended to obtain a United States passport in the name of the individual, a lawful United States citizen.
On August 29, 2012, a special agent with the U.S. Department of State Diplomatic Security Service interviewed Torres-Flores at her Jerome residence. Torres-Flores subsequently admitted that she filed the passport application using the identity of another individual, her true name was Lorena Clara Torres-Flores, and she was born in Mexico. She further admitted that she attempted to obtain a passport to travel to Mexico and return to the United States.
Torres-Flores faces up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for October 15, 2013, before U.S. District Judge Robert J. Bryan at the James A. McClure United States Courthouse and Federal Building, in Boise.
The case was investigated by the U.S. Department of State Diplomatic Security Service.
McLaughlin Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on August 2, 2013, by U.S. District Judge Charles B. Kornmann.
Verle Janis, a/k/a Verl Janis, age 32, was sentenced to 24 months of imprisonment, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Janis was indicted by a federal grand jury on February 13, 2013. He pled guilty to a Superseding Information on April 23, 2013.
The conviction stems from an incident in January of 2013 when a BIA officer was dispatched to the Bear Soldier West housing project in McLaughlin. Upon arrival, the officer observed several individuals in the residence and requested a warrant check. He was advised that Janis was on probation with conditions that prohibited alcohol. When the officer attempted to place the Defendant in handcuffs, he became uncooperative and refused to comply. The officer removed his taser and the Defendant momentarily complied and was placed in the back seat of the patrol unit.
The officer then secured several personal items left in the house by the Defendant, and upon opening the back door to the patrol unit, was kicked in the shoulder by the Defendant. The officer was forced to remove the Defendant from the patrol unit in order to place him in leg restraints. While attempting to secure the Defendant, the officer was kicked in the leg several times.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Charges Against New York City Comptroller Candidate Kristin Davis for Illegally Distributing Prescription PillsRead 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 Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of KRISTIN DAVIS, a candidate for New York City Comptroller, on charges of selling prescription pills containing controlled substances, including oxycodone, for cash. DAVIS was arrested yesterday in Manhattan, and is expected to be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Kristin Davis sold dangerous and highly-addictive prescription pills to a known drug dealer on repeated occasions in exchange for cash. Prescription drug abuse is the fastest-growing drug problem in this country, resulting in more overdose deaths than heroin and cocaine combined, and this Office has a zero tolerance policy towards anyone who helps to spread this plague at any level.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Kristin Davis sold prescription pills not once, but rather four different times in four months to an FBI cooperating witness. This type of criminal activity is illegal for citizens, and is especially unbecoming for a person seeking public office in the City of New York. The FBI and our partners in law enforcement remain committed to investigate and bring to justice those individuals who illegally distribute prescription medicines for their own financial gain.”
According to the Complaint unsealed today in Manhattan federal court and other information in the public record:
On three separate occasions from January 2013 to March 2013, DAVIS sold hundreds of prescription pills containing amphetamine, alprazolam, zolpidem, and carisoprodol to a person she knew from prior purchases and sales to be a drug dealer. Unbeknownst to DAVIS, the person was a cooperating witness (the “CW”) with the FBI and equipped with a recording device. During these sales, DAVIS was recorded saying that the pills she was selling were “Ambien,” “Soma,” and “Xanax.” On a fourth occasion, in April 2013, DAVIS arranged for another individual to sell approximately 180 oxycodone pills to the CW.
Oxycodone, a Schedule II controlled substance, is a powerful painkiller with a high potential for addiction and abuse, and the active ingredient in OxyContin and Percocet. There is an illegal market for oxycodone, which is often used as a substitute for, or adjunct to, other illegal drugs, such as heroin.
Amphetamine, a Schedule II controlled substance, is a psycho-stimulant, and the active ingredient in Adderall. There is an illegal market for amphetamine, often referred to as “speed,” as a substitute for, or adjunct to, other illegal drugs, such as methamphetamine and cocaine.
Alprazolam, a Schedule IV controlled substance, is a psychoactive drug, and the active ingredient in Xanax. There is an illegal market for alprazolam, which is often used as a substitute for, or adjunct to, other illegal drugs, such as LSD, heroin or opiates.
Zolpidem, a Schedule IV controlled substance, is a sedative/hypnotic drug, and the active ingredient in Ambien. There is an illegal market for zolpidem, which is often used as a substitute for, or adjunct to, other illegal drugs, such as amphetamine, methamphetamine, cocaine, and MDMA (commonly known as ecstasy).
Carisoprodol, a Schedule IV controlled substance, is a skeletal muscle relaxant, and the active ingredient in Soma. There is an illegal market for carisoprodol, which is often used in conjunction with painkillers and so-called “date rape” drugs.
DAVIS, 38, of New York, New York, is charged with four counts of distributing and possessing with intent to distribute a controlled substance. Each count carries a maximum sentence of 20 years in prison.
DAVIS is the sixth person arrested as part of an ongoing investigation conducted by the FBI, the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), the New York City Police Department (NYPD), and the U.S. Attorney’s Office into the unlawful distribution of prescription drugs containing controlled substances in and around New York City. Thomas Rock was arrested on July 10, 2013, and charged with distributing and conspiring to distribute oxycodone and alprazolam. Eugene Kurochkin was arrested on July 11, 2013 for distribution of oxycodone, alprazolam, amphetamine, and zolpidem. Raoul Goldberger and Rebecca Temen were arrested on July 29, 2013, and charged with distributing and conspiring to distribute amphetamine, oxycodone, and vicodin. Erik Pichardo, who is referred to as “Individual-1” in the Complaint against DAVIS, has been charged with distributing oxycodone and is at large.
In addition, the investigation also led to the arrest of Mark Decker on July 1, 2013, on charges of distributing cocaine and ecstasy.
Mr. Bharara praised the investigative work of the FBI. Mr. Bharara also thanked HHS-OIG and NYPD for their assistance in the ongoing investigation.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Kristy J. Greenberg, Daniel C. Richenthal, and Edward A. Imperatore are in charge of the prosecution.
The charges contained in the Complaint, and the other charges brought in connection with the ongoing investigation, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Kristin Davis Complaint
Manhattan U.S. Attorney and EPA Announce Lawsuit Against Westchester County for Failing to Comply with the Federal Safe Drinking Water ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Judith Enck, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against the County of Westchester, New York (“Westchester”) alleging violations of the federal Safe Drinking Water Act (“SDWA”).
Manhattan U.S. Attorney Preet Bharara said: “The federal Safe Drinking Water Act is designed to protect public health by requiring suppliers of water to take steps to prevent water-borne diseases from being transmitted to the public. Westchester’s prolonged failure to comply with treatment rules designed to prevent cryptosporidiosis is unacceptable.”
EPA Regional Administrator Judith Enck stated: “Westchester County has an obligation to protect the public and come into compliance with the Safe Drinking Water Act. In 2013, it is hard to believe there is resistance to taking action to prevent water-borne diseases.”
The lawsuit alleges that since April 2012 Westchester, through its Water District No. 1, has failed to comply with an SDWA rule that requires municipal drinking water suppliers to treat all unfiltered surface water for Cryptosporidium, a microscopic parasite. Cryptosporidium can cause cryptosporidiosis, a potentially fatal gastrointestinal illness in humans with symptoms that include diarrhea, nausea and abdominal cramps. There is no known treatment for cryptosporidiosis, and symptoms may persist for two weeks or longer in otherwise healthy adults and can be life-threatening for more vulnerable individuals.
Westchester’s Water District No. 1 supplies water to residents of municipalities including Scarsdale, White Plains, and Yonkers. According to the lawsuit, Westchester has failed to treat a significant portion of the water supplied to customers by Water District No. 1 for Cryptosporidium, especially in the northern part of this water district.
The Complaint filed by the United States seeks an order compelling Westchester to comply with the mandatory treatment requirements and ensure the delivery of properly treated drinking water to all households served by District No. 1. The complaint also seeks civil penalties for Defendant’s violations.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Natalie N. Kuehler is in charge of the case.
WestchesterWater.Complaint