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Thursday 13 June 2013
St. Helena Parish Man, Christien Scott, Sentenced After Pleading Guilty to Drug ChargesRead the Press Release
CHRISTIEN SCOTT, 29, a resident of St. Helena Parish, was sentenced today by U. S. District Court Judge Jane Triche Milazzo to seventy months imprisonment after pleading guilty to cocaine and marijuana charges, announced U. S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Milazzo ordered that SCOTT be placed on four years of supervised release following his term of imprisonment and risks an additional term of imprisonment should be violated any terms of supervised release.
SCOTT pled guilty on March 12, 2013 to one count of conspiracy to distribute and possess with the intent to distribute crack cocaine and marijuana and one count each of possession with intent to distribute crack cocaine and possession with intent to distribute marijuana.
The investigation was conducted by Special Agents of the Drug Enforcement Administration. The case was prosecuted by Assistant U. S. Attorney Andre’ Jones.
Springfield Man Sentenced to 17 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for receiving and distributing child pornography over the Internet.
Benjamin Orona, 31, of Springfield, was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, June 12, 2013 to 17 years and six months in federal prison without parole.
On Nov. 6, 2012, Orona pleaded guilty to receiving and distributing child pornography over the Internet.
On June 27, 2011, the Missouri State Highway Patrol ran a routine criminal history check on Orona in connection with his employment at Prime Trucking in Springfield and his commercial driver’s license. This check revealed a felony arrest warrant out of Georgia for sexual exploitation of a minor. Orona was arrested on the outstanding warrant. Officers searched Orona’s hotel room and seized the computers and other items. A forensic review of the items was conducted and investigators discovered images and videos of child pornography. Orona used a peer-to-peer file-sharing program to download child pornography.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Slidell Woman, Nicole Nicholas, Charged with ForgeryRead the Press Release
NICOLE NICHOLAS, age 39, a resident of Slidell, Louisiana, was charged in a bill of information today with forgery, announced U. S. Attorney Dana Boente. According to court documents, the defendant was employed by Company "A" from 1999 until June 22, 2010. NICHOLAS was in charge of the accounting, banking and finances, including the accounts payable, of the business conducted by Company "A." On May 22, 2009, the defendant intentionally possessed a $3,398.09 counterfeit check of Company “A” and used it to pay for private school tuition.
If convicted, NICHOLAS faces a maximum term of imprisonment of ten years, as well as a fine of $250,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Bill of Information )
Six Defendants Indicted in Conspiracy Involving Mortgage Fraud Losses of over $1 MillionRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted six defendants in a mortgage fraud conspiracy in which lenders provided over $3.5 million for fraudulently obtained loans:
Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 44, of Severn, Maryland;
Flavia Makundi, age 41, of Severn, Maryland;
Carmen Johnson, age 46, of Gambrills, Maryland;
Mokorya Cosmas Wambura, age 40, of Mount Ranier, Maryland;
Cane Mwihava, age 42, of Bowie, Maryland; and
Annika Boas, age 36, of Mount Ranier, Maryland.
The indictment was returned on June 10, 2013, and the last defendant, Wambura, was arrested today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General David A. Montoya, U.S. Department of Housing and Urban Development; Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; Brian Crane, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) .
According to the 21 count indictment, Tibakweitira was a real estate agent for Century 21 Advantage Realty and its successor, Elite Real Estate Group. Tibakweitira recruited his wife Makundi, and others, including Wambura, Mwihava and Boas, to act as straw purchasers of homes. Johnson owned CJ Lending and Able Estate & Company which provided credit repair services.
The indictment alleges that from March 2007 to November 2008, the defendants sought mortgages for properties at values in excess of the properties’ actual market values. Tibakweitira allegedly procured inflated appraisals and created false addendums to the sales contracts requiring large amounts of loan proceeds to be disbursed for renovations or repairs. The defendants allegedly used stolen or false identities, false documents – including W-2 forms, earnings statements, and bank statements – and false credit information to induce lenders to provide residential mortgage loans to the straw buyers. Large amounts of the proceeds of the fraudulently obtained loans were allegedly disbursed from escrow accounts to Destiny Property Management, LLC and Destiny Property Management Company, which were shell companies owned by Tibakweitira, for repairs and renovations that were never made. These funds were in turn paid to the defendants. The defendants did not make or stopped making the mortgage payments and allowed the properties, including 10 properties located in Severna Park, Baltimore, Hyattsville and Silver Spring, to go into foreclosure.
The indictment alleges that as a result of the conspiracy, lenders provided over $3.5 million for fraudulently obtained loans, which resulted in losses of over $1 million to the lenders, the Federal Housing Administration which insured some of the loans, and the Federal National Mortgage Corporation (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), who purchased some of the loans in the secondary mortgage market.
All of the defendants face a maximum sentence of 30 years in prison and a $1 million fine for the conspiracy and wire fraud; and a mandatory minimum of two years for aggravated identity theft consecutive to any other sentence. The defendants have had their initial appearances in federal court in Greenbelt. Tibakweitira, Makundi and Boas are currently detained and Johnson and Mwihava were released. A hearing is scheduled later today for Wambura regarding his detention.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage‑Fraud/index.html.
Today's announcement is part of efforts underway by President Obama=s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys= offices and state and local partners, it=s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG,
U.S. Secret Service, IRS-Criminal Investigation and Baltimore HSI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin DiGregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who are prosecuting the case.
Sentences for June 10 – 12, 2013Read the Press Release
Joseph Richard Adams, 55, of Los Angeles, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 12, 2013, for conspiracy to commit mail fraud and wire fraud. Adams was arrested in Los Angeles, California. He received 24 months imprisonment, to be followed by two years of supervised release. In addition, The Court determined restitution was mandatory; however, final determination was delayed for 90 days. The preliminary figure for restitution is $4,475.034.63, inclusive of penalties and interest, if applicable. Restitution will be imposed jointly and severally on all co-defendants in 12CR-00058S. The Court ordered forfeiture in the amount of $584,051.99. This case was investigated by the Wyoming Secretary of State’s Office, the U.S. Postal Service, U.S. Secret Service and the Federal Bureau of Investigation.
Efrain Tzompa-Herdandez, 33, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 10, 2013, for illegal re-entry of a previously deported alien into the United States. Tzompa-Hernandez was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Donnie Lue Neice, 42, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 10, 2013, for being a felon in possession of a firearm and ammunition. Neice was obtained via a Writ from state custody. He received 38 months of imprisonment, to run concurrent with his state conviction for grand larceny. In addition, Neice will serve three years of supervised release after serving his sentence and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Science Applications International Corporation Pays<br /> $11.75 Million to Settle False Claims AllegationsRead the Press Release
The Justice Department and U.S. Attorney Kenneth J. Gonzales of the District of New Mexico announced today that Science Applications International Corporation (SAIC) has paid $11.75 million to settle allegations filed in the U.S. District Court for the District of New Mexico that it violated the False Claims Act by charging inflated prices under grants to train first responder personnel to prevent and respond to terrorism attacks. SAIC provides scientific, engineering, and technical services to commercial and government customers and is headquartered in Northern Virginia.
Between 2002 and 2012, the New Mexico Institute of Mining and Technology (New Mexico Tech) received six federal grants from the Department of Justice, the Department of Homeland Security, and the Federal Emergency Management Agency to train first responder personnel to prevent and respond to terrorism events involving explosive devices. New Mexico Tech awarded subgrants to SAIC to provide course management, development, and instruction. The United States alleged that SAIC’s cost proposals falsely represented that SAIC would use far more expensive personnel to carry out its efforts than it intended to use and actually did use, resulting in inflated charges to the United States.
“To ensure that federal tax dollars are properly spent, federal grant recipients and contractors must provide cost proposals and estimates that reflect their honest judgment about project costs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “We will continue to ensure that funds designated for vital programs such as this one are properly used for their intended purpose.”
The False Claims Act is sometimes referred to as “Lincoln’s Law” because it was enacted at the urging of President Lincoln to combat widespread fraud which was being perpetrated on the Union Army by Civil War defense contractors. While originally enacted to combat defense contractor fraud, the False Claims Act has long been successfully employed to combat false claims against the United States in many other contexts, including healthcare fraud. The Act prohibits the submission of false claims for government money or property and allows the United States to recover up to three times the actual damages and penalties for a violation.
The lawsuit against SAIC was originally filed under the whistleblower provisions of the False Claims Act by Richard Priem, SAIC’s former project manager for the first responder training program. Under the Act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery, and the United States may elect to intervene and take over the case, as it did here. Mr. Priem’s share has not yet been determined.
“The False Claims Act is a critical tool for weeding out fraud and protecting taxpayers,” said U.S. Attorney Kenneth J. Gonzales of the District of New Mexico. “The Act provides an incentive for individuals with knowledge of fraud against the government to disclose that information. When whistleblowers bring fraud allegations to the government’s attention and assist us in this public-private partnership to fight fraud, the public benefits and potential fraudsters are deterred.”
The case was jointly handled by Trial Attorneys Don Williamson and Daniel Hugo Fruchter of the Commercial Litigation Branch of the Justice Department’s Civil Division and Assistant U.S. Attorney Howard R. Thomas and Auditor Julie A. Ford of the U.S. Attorney’s Office for the District of New Mexico. The claims resolved by this settlement are allegations only and there has been no determination of liability. The case is United States ex rel. Priem v. SAIC, No-12-cv-148 (D.N.M.).
Science Applications International Corporation Pays $11.75 Million to Settle False Claims AllegationsRead the Press Release
WASHINGTON – The Justice Department and U.S. Attorney Kenneth J. Gonzales of the District of New Mexico announced today that Science Applications International Corporation (SAIC) has paid $11.75 million to settle allegations filed in the U.S. District Court for the District of New Mexico that it violated the False Claims Act by charging inflated prices under grants to train first responder personnel to prevent and respond to terrorism attacks. SAIC provides scientific, engineering, and technical services to commercial and government customers and is headquartered in Northern Virginia.
Between 2002 and 2012, the New Mexico Institute of Mining and Technology (New Mexico Tech) received six federal grants from the Department of Justice, the Department of Homeland Security, and the Federal Emergency Management Agency to train first responder personnel to prevent and respond to terrorism events involving explosive devices. New Mexico Tech awarded subgrants to SAIC to provide course management, development, and instruction. The United States alleged that SAIC’s cost proposals falsely represented that SAIC would use far more expensive personnel to carry out its efforts than it intended to use and actually did use, resulting in inflated charges to the United States.
“To ensure that federal tax dollars are properly spent, federal grant recipients and contractors must provide cost proposals and estimates that reflect their honest judgment about project costs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “We will continue to ensure that funds designated for vital programs such as this one are properly used for their intended purpose.”The False Claims Act is sometimes referred to as “Lincoln’s Law” because it was enacted at the urging of President Lincoln to combat widespread fraud which was being perpetrated on the Union Army by Civil War defense contractors. While originally enacted to combat defense contractor fraud, the False Claims Act has long been successfully employed to combat false claims against the United States in many other contexts, including healthcare fraud. The Act prohibits the submission of false claims for government money or property and allows the United States to recover up to three times the actual damages and penalties for a violation.
The lawsuit against SAIC was originally filed under the whistleblower provisions of the False Claims Act by Richard Priem, SAIC’s former project manager for the first responder training program. Under the Act’s whistleblower provisions, a private party may file suit on behalf of the United States and share in any recovery, and the United States may elect to intervene and take over the case, as it did here. Mr. Priem’s share has not yet been determined.
“The False Claims Act is a critical tool for weeding out fraud and protecting taxpayers,” said U.S. Attorney Kenneth J. Gonzales of the District of New Mexico. “The Act provides an incentive for individuals with knowledge of fraud against the government to disclose that information. When whistleblowers bring fraud allegations to the government’s attention and assist us in this public-private partnership to fight fraud, the public benefits and potential fraudsters are deterred.”
The case was jointly handled by Trial Attorneys Don Williamson and Daniel Hugo Fruchter of the Commercial Litigation Branch of the Justice Department’s Civil Division and Assistant U.S. Attorney Howard R. Thomas and Auditor Julie A. Ford of the U.S. Attorney’s Office for the District of New Mexico. The claims resolved by this settlement are allegations only and there has been no determination of liability. The case is United States ex rel. Priem v. SAIC, No-12-cv-148 (D.N.M.).
Schuyler County Man Convicted of Drug Trafficking and Firearms ChargesRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that John Anthony Barton, 33, of Dix, N.Y., was convicted of conspiracy to manufacture 500 grams or more of methamphetamine, possession with intent to distribute 500 grams of more of methamphetamine, possession of marijuana with intent to distribute, using his residence to manufacture, distribute and use methamphetamine and marijuana, and possession of firearms in furtherance of drug trafficking crimes following a jury trial before U.S. District Judge Charles J. Siragusa. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.
Assistant U.S. Attorneys Jennifer Noto and Charles E. Moynihan, who handled the case, stated that Barton was arrested on May 18, 2011, after members of the New York State Police, Schuyler County Sheriff’s Office, Schuyler County District Attorney’s Office, Village of Watkins Glen Police Department and the Drug Enforcement Administration executed a search warrant at Barton’s residence on Roloson Hollow Road in Dix. During the search, law enforcement officers discovered an active methamphetamine laboratory, which was in the process of producing methamphetamine, in a shed on the property. In the shed, law enforcement officers also recovered a total of eight firearms, including a loaded .45 caliber handgun, more than 30 grams of methamphetamine, and more than $8,700 in cash. Officers also recovered approximately a pound of marijuana from the house located on the property.
Testimony at the trial also revealed that Barton, together with others, manufactured methamphetamine and distributed as much as 900 grams between 2009 and May 18, 2011.
“Methamphetamines are a highly dangerous and addictive substance,” said U.S. Attorney Hochul. “In addition to being a serious health threat, they are also a growing problem in many parts of the country. Today’s verdict ensures that this defendant will no longer be able to fill the streets of Schuyler County communities with this substance. The outcome should also serve as a warning to others that our Office will continue to work vigorously with our law enforcement partners to take down other similar laboratories.”
Drug Enforcement Administration Special Agent in Charge Brian R. Crowell stated, “This case highlights the dangers of methamphetamine production, use and distribution. Methamphetamine use and abuse is not the only danger to our society, the production of meth is also a significant danger to first responders, neighbors, and non-users as well. One in every six methamphetamine labs results in an explosion making it a severe threat to community members. I commend the men and women of the DEA Rochester Resident Office, the United States Attorney’s Office Western District of New York, Schuyler County District Attorney’s Office, New York State Police CNET the Schuyler County Sheriff’s Department, Watkins Glen Police Department.”At the time of Barton’s arrest, two others – Shawn Rickard and Chad Speicher – were also arrested. Rickard pleaded guilty to narcotics conspiracy involving 500 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime. Speicher pleaded guilty to narcotics conspiracy. Both defendants are awaiting sentencing.
These verdict is the result of an investigation on the part of the Schuyler County District Attorney’s Office, under the direction of District Attorney Joseph Fazzary, Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, New York State Police Community Narcotics Enforcement Team (CNET) under the direction of Major Wayne C. Olson, the Schuyler County Sheriff’s Department, under the direction of Sheriff William Yessman, and the Watkins Glen Police Department, under the direction of Chief Thomas R. Struble.
Sentencing is scheduled for September 24, 2013 before Judge Siragusa.Salt Lake City Woman Sentenced to Five Years in Federal Prison for Investment Fraud SchemeRead the Press Release
Ordered to Pay More Than $11 Million in Restitution to Victims
SALT LAKE CITY – Emilee Peterson Buckley, age 39, of Salt Lake City, will serve five years in federal prison after pleading guilty to three counts of wire fraud in connection with an investment fraud scheme she operated as the owner of Calypso Financial, LLC in Salt Lake City.U.S. District Judge Dee Benson imposed the sentence Friday. As a part of the sentencing hearing, Judge Benson ordered Buckley to pay $11,272, 908.74 in restitution in the case. Buckley, who pleaded guilty to all charges in an indictment returned in 2010, will be allowed to self-surrender to begin serving her prison sentence.
As a part of the plea agreement, Buckley admitted that from January 2007 through October 2007, she devised a scheme to get money from investors through false and misleading representations. She said she knew that her companies were making little, if any, money and had significant outstanding monthly financial obligations and debts of about $500,000. She admitted knowing that the only way Calypso could continue to meet its monthly financial obligations was through debt financing.
Despite Calypso’s negative financial situation, she represented to investors that Calypso was successful and making money from its business activities, which included residential properties, real estate developments, central Utah property with valuable water rights, a precious metals mine, and foreign trading platforms in Hong Kong, Europe, and elsewhere.
She told investors that based on Calypso’s success, she could provide them with monthly returns ranging from 4 to 15 percent per month. She also admitted providing investors with a balance sheet which reflected Calypso had a net worth in excess of $60 million and she told investors that Calypso’s assets were more than sufficient to pay them back and make them whole in the event its business went bad.
Buckley concealed from investors the fact that much of their investment would be used to make interest payments to or to pay off older investors, commonly known as Ponzi payments. Throughout the fraud period, she accepted money from investors ranging in amounts from $100,000 to as much as $3.5 million.
The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of the FBI with assistance from the Securities and Exchange Commission (SEC).
Romanian Citizen Involved in Phishing Scheme Sentenced to More Than Six Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that DRAGOS NICOLAE DRAGHICI, 28, a citizen of Romania, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 78 months of imprisonment for participating in an extensive Internet “phishing” scheme.
A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers. Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies. The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company. At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.
According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank. The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile. The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota. Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.
DRAGHICI and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing. The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers. The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.
The investigation revealed that DRAGHICI was involved in phishing from at least 2004 through 2010, harvesting email addresses, spamming, setting up counterfeit websites and collecting stolen data. DRAGHICI identified himself as “a hacker,” and he was involved in obtaining unauthorized access to computers that could be used for spamming and for hosting counterfeit websites. Analysis of DRAGHICI’s email accounts revealed more than 6,000 stolen debit or credit card account numbers.
In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.
This investigation has resulted in criminal charges against 19 Romanian citizens. On January 18, 2007, a grand jury in New Haven returned an indictment charging seven defendants with various offenses stemming from this scheme. On November 10, 2010, a grand jury returned a second superseding indictment charging an additional 12 defendants, including DRAGHICI.
The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada. DRAGHICI and seven other defendants were extradited from Romania following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States.
On December 3, 2012, DRAGHICI pleaded guilty to one count of conspiracy to commit fraud in connection with access devices.
This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.
Acting U.S. Attorney Daly and Special Agent in Charge Mertz also acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.The case is being prosecuted by Assistant United States Attorney Edward Chang.
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[email protected]Richard Mcneal Pleads Guilty to Selling Counterfeit Bcs National Championship & Super Bowl TicketsRead the Press Release
RICHARD MCNEAL, age 47, a resident of Randallstown, Maryland, pled guilty in federal court today before U.S. District Judge Mary Ann Vial Lemmon to Trafficking in Counterfeit Goods, announced United States Dana J. Boente. MCNEAL is scheduled to be sentenced on September 19, 2013.
According to Court documents, the defendant travelled to New Orleans on or about January 8, 2012 in order to sell counterfeit tickets to the 2012 Allstate BCS National Championship game. Because there were no available hotel rooms in New Orleans, the defendant travelled to Picayune, Mississippi and stayed at a Days Inn motel. While staying at the Days Inn, the defendant sold four counterfeit tickets, for a total of $3,000.00, to victims who wanted to attend the BCS National Championship Game. When the victims tried to enter the Louisiana Super Dome to attend the game, the tickets were rejected for being counterfeit. The victims then returned to Picayune, Mississippi and reported the crime to local police.
On or about February 2, 2013, the defendant travelled to New Orleans to sell counterfeit tickets to the Super Bowl. During the events leading up to the Super Bowl, Homeland Security Investigations (HSI) and the National Football League (NFL) set up the NFL Ticket Reconciliation Office (TRO), located at 1515 Poydras Street, as part of an effort to investigate counterfeit Super Bowl ticket sales. On February 3, 2013, at approximately 11:45 a.m., HSI Special Agents were contacted by a victim who sought to verify the authenticity of two tickets she had purchased from the defendant for a total of $1650.00. After it was determined that the tickets were counterfeit, the victim provided the defendant’s contact information to HSI Special Agents.
On February 3, 2013, at approximately 12:10 p.m., HSI Special Agents, acting in an undercover capacity, arranged to meet the defendant at a local coffee shop in order to purchase Super Bowl tickets. At the coffee shop, the defendant offered to sell two Super Bowl tickets, for a total of $2,600.00, to an undercover HSI Special Agent. Officers of the New Orleans Police Department, who were working with the HSI Special Agents, then arrested the defendant after it was determined that the tickets were counterfeit.
On February 3, 2013, at approximately 2:40 p.m., a second victim entered the TRO and was in possession of two counterfeit tickets he had purchased from the defendant for a total of $1000.00. The victim had the defendant’s telephone number, and positively identified a photo of the defendant as the person who had sold him the counterfeit tickets.
“Counterfeit goods steal revenue from legitimate businesses that pay taxes and employ workers, but counterfeit tickets also rip off unsuspecting fans who are left without their money and without a ticket,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “Organized criminals prey on the excitement surrounding big events; the public should remember any item that seems ‘too good to be true’ should be cause for caution and concern.” Parmer oversees a five-state area of responsibility including Louisiana, Alabama, Arkansas, Mississippi and Tennessee.
This case was investigated by Homeland Security Investigations, Customs and Border Protection, the Picayune Police Department, the Pearl River County District Attorney’s Office, the New Orleans Police Department and the Orleans Parish District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney G. Dall Kammer.
(Download Factual Basis )
Red Lake Man Sentenced for Committing Domestic Assault by an Habitual OffenderRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 35-year-old Red Lake man was sentenced for committing domestic assault involving a woman on the Red Lake Indian Reservation. United States District Court Judge Donovan W. Frank sentenced Brian Gordon Graves to 21 months in federal prison on one count of assault with a dangerous weapon and one count of domestic assault by a habitual offender. Graves was indicted on November 5, 2012, and convicted on January 31, 2013.
According to the indictment and evidence presented at trial, on October 6, 2012, Graves assaulted the victim with a 12-gauge shotgun. This assault was committed after Graves was convicted for assault on at least two prior occasions in Red Lake Indian Tribal Court (criminal domestic violence in 1997 and first-degree assault in 1998).
This is the second time the United States Attorney’s Office for the District of Minnesota has prosecuted someone under the federal “domestic assault by a habitual offender” law. That law was enacted in 2006 by Congress as support to the Violence Against Women Act of 2000. The 2006 statute is a valuable tool for federal prosecutors because research shows that many domestic violence offenders are repeat offenders and because domestic violence rates are extremely high in Indian Country.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
This case was the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Putnam Man Charged with Child Pornography OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that DARRICK COLLETTE, 32, of Putnam, was arrested today and charged by federal criminal complaint with receipt, distribution, and possession of child pornography.
The criminal complaint alleges that on March 19, 2013, an FBI special agent logged onto a publicly available Internet file sharing network and downloaded images and videos of child pornography from a computer connected to the network with an Internet Protocol (IP) address assigned to COLLETTE’s residence. During a search of COLLETTE’s residence this morning, law enforcement officers seized a computer and multiple external hard drives.
COLLETTE was arrested after the search.
COLLETTE appeared this afternoon before United States Magistrate Judge Thomas P. Smith in Hartford, who ordered COLLETTE detained pending a hearing that is scheduled for June 18.
If convicted of the charge of receipt and distribution of child pornography, COLLETTE faces a minimum term of imprisonment of five years, a maximum term of imprisonment of 20 years, and a fine of up to $250,000. If convicted of the charge of possession of child pornography, COLLETTE faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. The penalties in this matter are enhanced because it is alleged that the defendant possessed depictions of prepubescent minors and minors under the age of 12.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State Police and Putnam Police Department have assisted the investigation. The case is being prosecuted by Assistant United States Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Provider of Home Health Care Services Sentenced for Medicaid FraudRead the Press Release
Norfolk, Va. – Angie L. Gilchrist, 58, of Suffolk, Va., was sentenced today to 33 months in prison, followed by a three year term of supervised release, for defrauding the Virginia Medicaid Program, a health care program for indigent persons that is jointly funded by the federal government and the State of Virginia. She was also ordered to make restitution to the Virginia Medicaid Program in the amount of $294,713.00.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Virginia Attorney General Ken Cuccinelli made the announcement after sentencing by United States District Senior Judge Henry C. Morgan, Jr.
Gilchrist pleaded guilty on February 19, 2013 to health care fraud. According to court documents, Gilchrist owned and operated A-Z Alpha Omega In Home Personal Care Service LLC, a business located in Suffolk that was authorized to provide respite care to Medicaid recipients. Respite care is designed to provide temporary, substitute care for a Medicaid recipient that is normally provided by the family or another unpaid primary caregiver of the recipient. These services are provided on a short-term basis because of the emergency absence or need for routine or periodic relief of the primary caregiver. Between October 2008 and October 2012, Gilchrist filed approximately 385 false and fraudulent claims for reimbursement with the Virginia Medicaid program. These fraudulent claims represented that respite care had been provided by her company to 38 Medicaid recipients, when in fact no such care had been provided. As a result, Gilchrist obtained health care benefit payments in the approximate amount of $294,713.00 to which she was not entitled.
This case was investigated by the FBI and the Office of the Virginia Attorney General, Medicaid Fraud Control Unit. Assistant United States Attorney Alan M. Salsbury prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pittsburgh Man Sentenced to 51 Months in Prison for Possessing Violent Pornographic Images and Videos of ChildrenRead the Press Release
PITTSBURGH, Pa - A Pittsburgh man has been sentenced in federal court to 51 months imprisonment followed by 20 years supervised release on his conviction of possessing child pornography, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on James E. Tronsberg, age 26.
According to information presented to the court, on Jan. 27, 2010, Tronsberg possessed visual depictions, in the form of numerous still images and videos contained in computer graphics files, that depicted minors, some of whom had not reached the age of 12, engaging in sex acts. Some of the pornographic videos involved acts which were sadistic, masochistic, or otherwise violent in nature.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pittsburgh High Tech Crimes Task Force for the investigation leading to the successful prosecution of Tronsberg.
Philadelphia Man Charged with Fraud of the VARead the Press Release
Richard M. Gordon, 65, of Philadelphia, Pennsylvania was charged today by Information with one count of theft of Government funds, announced United States Attorney Zane D. Memeger. The information alleges that between June 4, 2004 and December 31, 2012, Richard Gordon implemented a scheme to steal funds from the Department of Veterans Affairs (VA) by using his brother’s identity to obtain unauthorized medical care. It is further alleged that he used the identity of his brother to receive VA non-service connected disability pension benefits resulting in total losses to the government of approximately $178,607.20.
If convicted the defendant faces a maximum possible sentence of ten years incarceration, a $250,000.00 fine, and three years supervised release.
The case was investigated by the Department of Veterans Affairs Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with "Secret Shopper" and Craigslist ScamRead the Press Release
PHILADELPHIA - David Brister, 56, of Philadelphia, was charged by indictment, unsealed today, in a counterfeit check scheme that victimized dozens of people across the United States, announced United States Attorney Zane David Memeger. Brister is charged with one count of conspiracy, five counts of mail fraud, 12 counts of wire fraud, two counts of presenting and transmitting counterfeit money orders, and four counts of passing and uttering counterfeit checks. He was arrested this morning.
According to the indictment, Brister teamed up with at least one person located outside the United States to defraud Americans in a series of Internet-based schemes. He allegedly duped the recipients of counterfeit checks and money orders into depositing the items into their bank accounts and wiring money to him. In one alleged scheme, Brister and his co-conspirators posted advertisements on the website, Craigslist.com, for fake jobs, which included phony positions such as “secret shoppers” and “administrative assistants.” Whenever a person answered the advertisement and was “hired” for the fake job, Brister or a co-conspirator would allegedly send counterfeit money to the “new employee” along with a set of instructions on how to complete their new “employment” obligations. The instructions generally involved depositing the checks or money orders into their own bank accounts, keeping a portion as their “salary,” performing some simple task, and sending the rest of the money to Brister via Western Union or MoneyGram. Only after wiring the funds to Brister did the would-be employees learn that the checks and money orders they had deposited into their bank accounts were counterfeit.
In a different scheme, an alleged co-conspirator of Brister’s would respond to advertisements on Craigslist.com for the sale of merchandise, agree to buy the advertised item, send counterfeit checks or money orders to the seller in excess of the sales price, and indicate that the difference was to be spent on a third-party delivery company. Brister’s co-conspirator would identify Brister as the representative of the third-party delivery company and ask the seller to deposit the check or money order into his account, keep enough to cover both the sales price and a little bonus, and then wire the rest to Brister. As with the fake job-offer scheme, the sellers followed the instructions and wired thousands of dollars to Brister, only to learn that the monetary instruments they had received were counterfeit, and their bank accounts had been debited.
In total, Brister allegedly received more than $98,000 in fraudulent proceeds from the various Internet-based schemes between January 2008 and August 2012. It is further alleged that Brister and at least one co-conspirator planned to send more than $5.8 million worth of additional counterfeit checks and money orders to unsuspecting victims in the United States as part of their schemes
Each mail fraud count and each count of wire fraud count carries a maximum possible sentence of 20 years in prison; each counterfeit check count carries a maximum possible sentence of 10 years in prison; each conspiracy and each money order transmittal count carries a maximum possible sentence of five years in prison. Brister also faces a fine of up to $6 million, a $2,500 special assessment, and three years of supervised release, if convicted.
If convicted of all charges, Brister faces a maximum possible sentence of 395 years in prison, three years of supervised release, a fine of up to $6 million, and a $2,500 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia La Cosa Nostra Associate Pleads Guilty to Loan SharkingRead the Press Release
PHILADELPHIA – Robert Ranieri, 37, of Glendora, N.J., pleaded guilty today to committing loan sharking activities on behalf of the Philadelphia La Cosa Nostra (LCN) Family. U.S. District Judge Eduardo C. Robreno scheduled a sentencing hearing for September 25, 2013. Ranieri faces a maximum penalty of 40 years in prison.
Through court documents and statements made in court, Ranieri admitted that he conspired with Philadelphia LCN Family capo Anthony Staino and others to make a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan.
The case was investigated by the FBI, the Internal Revenue Service Criminal Investigations, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Assistant U.S. Attorneys Frank A. Labor III, Suzanne Ercole, and Trial Attorney John S. Han of the Department of Justice’s Organized Crime and Gang Section. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia La Cosa Nostra Associate <br /> Pleads Guilty to Loan SharkingRead the Press Release
Robert Ranieri, 37, of Glendora, N.J., pleaded guilty today to committing loan sharking activities on behalf of the Philadelphia La Cosa Nostra (LCN) Family.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, made the announcement after the plea was accepted by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania.
Through court documents and statements made in court, Ranieri admitted that he conspired with Philadelphia LCN Family capo Anthony Staino and others to make a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan.
At sentencing, scheduled for Sept. 25, 2013, Ranieri faces a maximum penalty of 40 years in prison.
The case was investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
Philadelphia Drug Kingpin Sentenced to Death, <br /> Co-defendant to Face Life in PrisonRead the Press Release
A federal jury in the Eastern District of Pennsylvania that voted in favor of death for a North Philadelphia drug kingpin, Kaboni Savage, today voted in favor of life for a co-defendant, Steven Northington. Savage was sentenced to death last week by U.S. District Court Judge R. Barclay Surrick.
Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, and Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Division made the announcement after the jury’s decisions.
On May 31, 2013, a jury voted in favor of death for Savage, 38, who is the first defendant in the Eastern District of Pennsylvania to receive the death penalty in federal court. Savage was convicted on May 13, 2013, of 12 counts of murder in aid of racketeering, one count of retaliating against a witness by murder, conspiracy to commit murder in aid of racketeering, and one count of conspiracy to participate in a racketeering enterprise. Savage ordered the Oct. 9, 2004, firebombing of the home of Eugene Coleman’s family. Coleman was a federal witness at the time. Six people were killed in the arson murder, including four children. Savage was sentenced to death on June 3, 2013.
Today, the same jury voted in favor of life for Northington, 41, who was convicted of the murders of Barry Parker in 2003 and of Tybius Flowers in 2004 in addition to racketeering (RICO) conspiracy. Northington will be formally sentenced by U.S. District Judge Surrick on June 19, 2013.
“For more than a decade, Kaboni Savage and members of his organization used murder and violence to intimidate and retaliate against anyone who threatened their drug trade, and along the way mercilessly killed a cooperating witness’s family members, including innocent children,” said Acting Assistant Attorney General Raman. “We are hopeful that the jury’s verdict brings some measure of justice to the victims of Savage’s heinous crimes.”
“Achieving justice sometimes requires us to ask the citizens on a jury to make the most difficult sentencing decision imaginable,” said U.S. Attorney Memeger. “In this case, after convicting the defendants of crimes involving murder, the jurors chose death for Kaboni Savage and life for Stephen Northington. The defendants’ horrific conduct struck at the very heart of our criminal justice system, which depends on witnesses testifying without fearing for their lives or the lives of their family members. We appreciate the time and effort that the jury committed to reaching a fair verdict as to each defendant. While the verdicts cannot restore the loss of life taken by members of the Kaboni Savage drug organization, we hope that the jury verdicts bring some sense of closure to the victims’ families and friends. I want to thank the phenomenal investigative and trial team that worked so hard over many years to bring the defendants to justice for their despicable crimes.”
“Kaboni Savage and his crew murdered men, women, and children – for money, power, and, ultimately, just for revenge,” said FBI Special Agent in Charge Hanko. “They thought no more of taking lives than of taking a phone call. After more than a decade of brutality, Northington’s life sentence and Savage’s death sentences are justly deserved.”
Savage’s sister and co-defendant, Kidada Savage, was also found guilty of the RICO conspiracy and the Coleman family murders. Co-defendant Robert Merritt was found guilty of the RICO conspiracy. They each face a mandatory life sentence at sentencing.
Savage’s drug enterprise operated primarily in the North Philadelphia area from at least late 1997 to 2010. After Savage was indicted on drug charges in 2004, he ordered the murders of the family of government witness Eugene Coleman. Lamont Lewis, who has pleaded guilty, firebombed the Coleman family home on Savage’s orders which Kidada Savage relayed to Lewis.In addition to the six people inside the Coleman home, Savage was convicted of the following murders:
• Kenneth Lassiter, 44, of Lansdale, Pa., on March 19, 1998, near the corner of 8th and Butler Streets in Philadelphia;
• Mansur “Shafiq” Abdullah, 22, of 11th Street, Philadelphia, on Sept. 6, 2000. Abdullah was shot and his burned body was later recovered in the 4200 block of North Park Avenue in Philadelphia;
• Carlton “Mohammed” Brown, 27, of Darien Street, Philadelphia, on Sept. 13, 2001;
• Barry Parker, 32, of Susquehanna Avenue, Philadelphia, on February 26, 2003, in the 3900 block of North Franklin Street in Philadelphia;
• Tyrone Toliver, 26, of Cherry Hill, N.J., on March 14, 2003, in the 3500 block of North Palmetto Street in Philadelphia; and
• Tybius Flowers, 32, of K Street, Philadelphia, on March 1, 2004, in the 3700 block of N. 8th Street in Philadelphia.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and the Philadelphia/Camden High Intensity Drug Trafficking Area Task Force also assisted in the investigation. The case was prosecuted by Trial Attorney Steven Mellin of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice and Assistant United States Attorneys David E. Troyer and John M. Gallagher.
Panamanian National Charged with Receipt and Possession of Child Pornography and Possession of A Counterfeit Alien Registration CardRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on June 12, 2013, Jean Paul Jimenez-Kuchler, 29, a citizen of Panama, living illegally in the United States in Glen Carbon, IL, was arraigned on a three-count Information charging him, in Count 1, with Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in Count 2, with Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, and, in Count 3, Possession of a Counterfeit Alien Registration Card. Jimenez-Kuchler was ordered detained, that is , held without bail, pending further proceedings.
The offenses charged in the Information allege that on June 5, 2013, Jimenez-Kuchler received visual depictions of minors engaged in sexually explicit conduct by downloading the images from the internet, and that he was in possession of the visual depictions on June 6, 2013, when he was arrested on the above offenses. In addition, the information alleges that Jimenez-Kuchler was in possession of a counterfeit Alien Registration Card on the date of his arrest.
A trial date had not been set. If convicted of Receipt of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, Jimenez-Kuchler faces a term of imprisonment of not less than five years, but not more than 20 years in prison, a fine up to $250,000, and a term of supervised release of not less than five years, to life. If convicted of Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, the penalties include an enhanced term of imprisonment because some of the visual depictions depicted minors under the age of 12, within a term of ii prison of not more than 20 years, a fine up to $250,000, and a term of supervised release of not less than five years, to life. If convicted of Possession of a Counterfeit Alien Registration Card, Jimenez-Kuchler faces a prison term of not more than 10 years, a fine up to $250,000, or both, and a term of supervised release of not more than three years.
An information is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Department of Homeland Security, Homeland Security Investigations. The case is assigned to Assistant United States Attorney Angela Scott.
Owner of Northern New Jersey Auto Part Stores Admits Fraud in Tax Returns, Not Including More Than $1.1 Million in Cash IncomeRead the Press Release
TRENTON, N.J. – The owner of several auto parts stores in northern New Jersey admitted today to underreporting on his tax returns more than $1.1 million in cash income that he kept for his personal benefit, U.S. Attorney Paul J. Fishman announced.
Emanuel Marques, of Whippany, N.J., pleaded guilty to an information charging him with one count of subscribing to false personal federal income tax returns. He entered his guilty plea before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and statements made during Marques’s guilty plea proceeding:
Marques admitted that for the tax years 2009 through 2011 he filed U.S. individual income tax returns in which he claimed to report all of his income from his auto parts stores, but which omitted the approximately $1,153,579 in cash he had diverted from the businesses for his personal use. Marques’ intentional failure to disclose true, correct and complete information to the IRS resulted in a tax loss to the United States of approximately $375,869.
As part of his guilty plea, Marques has agreed to make full restitution to the IRS for all losses resulting from his filing of false tax returns. He has also agreed to forfeit $1 million in a related civil case with the U.S. Attorney’s office.
The subscribing to false tax returns charge carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 18, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
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Defense counsel: George Schneider Esq., NewarkMarques, Emanuel Information
Norfolk Man Sentenced on Firearms ChargesRead the Press Release
NORFOLK, Va. – Alton B. Couther, III, 31, of Norfolk, Va., was sentenced today to 180 months in prison, followed by 5 years of supervised release, for two firearms charges stemming from a volatile altercation with law enforcement last fall. Couther was also ordered to pay $7,571.75 in restitution to Geico Auto Insurance in connection with a vehicle he totaled during the commission of his offense.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Couther pleaded guilty on March 13, 2013, to possessing a firearm in furtherance of a drug trafficking crime and possessing a firearm as a convicted felon. According to court documents, on October 17, 2012, an officer with the Norfolk Police Department witnessed Couther drive his car through a red light. The officer attempted to pull Couther over in order to issue a citation but, rather than stop, Couther instead led the officer on a high-speed chase during which he jumped a median and drove the wrong direction on a one-way span of road. The chase ended when Couther crashed into a utility pole and totaled the car he was driving; he then attempted to flee on foot. Norfolk police quickly apprehended Couther and found a Kel-Tec .380 in his pants pocket, and marijuana, scales, and cash in a backpack in the car. Prior to these events, Couther had been convicted of multiple counts of possession with intent to distribute cocaine, as well as for possession of a firearm while in possession of narcotics.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Norfolk Police Department. Assistant United States Attorney V. Kathleen Dougherty prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Haven Man Sentenced to 57 Months in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE DeJESUS, also known as “Flaco,” 29, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
DeJESUS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that DeJESUS conspired with others to purchase and redistribute heroin.
DeJESUS has been in federal custody since May 21, 2012. On March 13, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
DeJESUS’s criminal history includes two prior felony convictions for selling heroin.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mescalero Apache Woman Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Tenya Lester-Gonzales, 37, a member and resident of the Mescalero Apache Nation, pleaded guilty yesterday afternoon in Las Cruces federal court to a felony information alleging an assault with a dangerous weapon charge.
During her plea hearing, Lester-Gonzales admitting assaulting her husband with a hatchet in their home on the Mescalero Apache Reservation on March 30, 2012. In her plea agreement, Lester-Gonzales acknowledged intentionally striking the victim in the head and causing him serious bodily injury.
According to court filings, Lester-Gonzales and the victim both were intoxicated when they got into a verbal fight outside their residence on the night of March 30, 2012. After a witness separated the two, Lester-Gonzales went into the residence and returned with a hatchet which she used to strike the victim in the head. The victim sustained a cut on the face that was four inches long and a quarter inch wide as a result of the assault.
Lester-Gonzales was arrested on assault charges in Jan. 2013, after she was transferred from state custody to federal custody and has been in federal custody since that time. Lester-Gonzales remains detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Lester-Gonzales faces a maximum penalty of ten years in prison and three years of supervised release.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
McCracken County, Kentucky, Man Sentenced to 240 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
PADUCAH, Ky. – A McCracken County, Kentucky man was sentenced today, by Senior Judge Thomas B. Russell, in United States District Court, to 240 months in prison, followed by a life-time term of supervised release for violating child pornography laws, announced David J. Hale, United States Attorney for the Western District of Kentucky.
On November 9, 2012, a superseding indictment was filed against Matthew Francis Ferreira, age 28, by a federal grand jury meeting in Paducah, Kentucky. Ferreira was charged with three counts of distribution of child pornography and one count of possession of child pornography, via a computer.
On February 26, 2013, Ferreira pleaded guilty to all counts of the superseding indictment, and admitted that he utilized peer-to-peer software and Skype software to knowingly distribute images of child pornography. According to the plea agreement, in January 2012, Ferreira distributed, through the internet, several video files containing child pornography images, from the peer-to-peer software on his computer. In February 2012, he distributed files of child pornography directly to another individual. In March 2012, he possessed multiple images of child pornography. Ferreira agreed to forfeiture of personal items used in the commission of the crimes.
This case was prosecuted by Assistant United States Attorney David Sparks and was investigated by the Kentucky Attorney General’s Cybercrime Unit.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Maiden, N.C. Man Sentenced to More Than Five Years in Prison for Possession with Intent to Distribute Crack CocaineRead the Press Release
STATESVILLE, N.C. – On Monday, June 10, 2013, U.S. District Judge Richard Voorhees sentenced Kelly McClain, 31, of Maiden, N.C. to serve 63 months in federal prison followed by four years of supervised release for trafficking in crack cocaine, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Sheriff David M. Carpenter, of the Lincoln County Sheriff’s Office.
According to filed court documents and court proceedings, on September 13, 2011, during a traffic stop of McClain’s vehicle, Lincoln County Sheriff’s deputies found 109.4 grams of crack cocaine under the mat at the driver’s side floorboard. In June 2012, McClain entered a plea of guilty to one count of possession with intent to distribute cocaine base, commonly referred to as crack cocaine. According to official court documents, Kelly McClain admitted the 109.4 grams of crack cocaine located in his vehicle belonged to him. McClain also admitted to supplying cocaine to other distributors in the area.
McClain has been in local federal custody in the Western District of North Carolina since his arrest in March of 2012. Upon designation of a federal facility he will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was led by the Lincoln County Sheriff’s Office with the assistance of the Maiden Police Department. The prosecution for the government was handled by Special Assistant U.S. Attorney Erin Elizabeth Comerford of the U.S. Attorney’s Office in Charlotte.
Long-Lost “Rosenberg Diary” RecoveredRead the Press Release
A close confidant of Adolf Hitler, Alfred Rosenberg was one of the most influential members of the “Third Reich” and of the Nazi Party. His tome The Myth of the Twentieth Century articulated the philosophical underpinnings of National Socialist ideology. Rosenberg served as head of the Nazi Party’s foreign affairs department and as the Reich Minister for the Occupied Eastern Territories, which included the Baltic States, Ukraine, and parts of Belorussia. As Reich Minister, Rosenberg played a significant role in the mass murder of the Jewish people in the Occupied Eastern Territories, as well as the deportation of civilians to forced labor camps to support the German war effort. Rosenberg also established and headed an organization, Einsatzstab Reichsleiter Rosenberg, the mission of which was to loot cultural property from all over Europe.
Rosenberg was a defendant at the International Military Tribunal, held at Nuremberg, Germany from 1945 – 1946. He was found guilty on all four counts of the indictment for conspiracy to commit aggressive warfare, crimes against peace, war crimes, and crimes against humanity. Rosenberg was hanged on October 16, 1946.
Rosenberg was privy to much of the planning for the Nazi racial state, the mass murder of the Jewish people and other civilians, the planning and conduct of the Second World War, and the occupation of Soviet territory. His diary entries are a potential wealth of information, hitherto unknown, regarding the history of this period.
Allied forces advancing through Germany seized documents, books, and other records of strategic or tactical importance. After the surrender of Germany in May 1945, governmental authority for Germany was placed into Allied hands. This authority included ownership of all documents created by the defeated German government or captured by Allied forces. To prepare for war crimes trials after the cessation of hostilities, agencies of the United States Government examined and selected relevant documents as potential evidence.
Among the documents seized by Allied forces was the Rosenberg Diary. On August 10, 1945, the Records Subsection of the Documents Unit of the War Crimes Branch, United States Army, received from the Berlin Documents Control Center, the “…private papers of Alfred Rosenberg, former Reichsminister for the Occupied Eastern Territories.” Among these papers, according to the receipt prepared on August 15, 1945, were “Handwritten diary notes” from the years 1934 – 1944. These included notes, dated 1941, “dealing in the early part of (Apr 41) with the conspiracy to dominate Russia and preparations for this occupation (conferences with HITLER and others).”
Dr. Robert M.W. Kempner was a German lawyer who fled Germany for the United States during the war. At the conclusion of the war, Dr. Kempner served as the Deputy Chief Counsel and was the Chief Prosecutor in the “Ministries Case” in the Nuremberg International Military Tribunal. In this role, Dr. Kempner had access to seized Nazi documents in his official capacity as an employee of the United States Government. At the conclusion of the Nuremberg Tribunals, Dr. Kempner returned to the United States and lived in Lansdowne, Pennsylvania. Contrary to law and proper procedure, Dr. Kempner removed various documents, including the Rosenberg Diary, from United States government facilities in Nuremberg and retained them until his death in 1993.
In November, 2012, the United States Attorney’s Office for the District of Delaware and Homeland Security Investigations agents received information from an art security specialist, who was working for the United States Holocaust Memorial Museum,as to the Rosenberg Diary. The Rosenberg Diary was subsequently located and seized pursuant to a warrant issued by the United States District Court for the District of Delaware.
United States Attorney Charles M. Oberly, III said, “This seizure is the result of the joint efforts of this office and Homeland Security Investigations. The discovery and return of this long-lost, important historical document to the government of the United States is a significant achievement. Although it is a reminder of a dark time, the Rosenberg Diary is important to our understanding of history. Our hope is that it will provide valuable insight to historians.”
“Thanks to the tireless investigative work of ICE Homeland Security Investigations (HSI) special agents, and years of perseverance by both the U.S. Attorney’s Office for the District of Delaware and the U.S. Holocaust Memorial Museum, the long-lost Rosenberg Diary has been recovered, not in Germany but in the United States. This important record of the crimes of the Third Reich and the Holocaust is now preserved for all to see, study and learn from,” said ICE Director John Morton. “The work of combating the international theft of cultural heritage is a key part of our work, and no matter how long these items may appear to be lost to history, that hard but important work will continue.”
The United States Holocaust Memorial Museum is thrilled to have recovered the diary of Alfred Rosenberg, a leading Nazi ideologue. As we build the collection of record on the Holocaust, having material that documents the actions of both perpetrators and victims is crucial to helping scholars understand how and why the Holocaust happened," said Museum Director Sara J. Bloomfield. "The story of this diary demonstrates how much material remains to be collected and why rescuing this evidence is such an important Museum priority."
This case was investigated by David L. Hall and Jamie McCall, Assistant United States Attorneys. For further information, contact Assistant United States Attorney David L. Hall at (302) 573-6118.
View the Immigration and Customs Enforcement press release (contains pictures and video)
London Doctor Sentenced for Evading TaxesRead the Press Release
LONDON, KY - A London, KY., physician was sentenced today to 18 months in prison to be followed by six months of home incarceration for evading federal income taxes.
U.S. District Court Judge Gregory F. Van Tatenhove sentenced Werner Grentz, 64, for tax evasion and ordered him to pay the IRS approximately $900,000 for taxes that Grentz owes for the years 1999 to 2010.
According to the plea agreement, in one of those years, Grentz made $356,073 in taxable income in 2009 while working as an independent physician contractor for a hospital in Jellico, Tenn., and a medical office in London, KY. Grentz previously admitted that he hid his income by having his earnings deposited into bank accounts of companies that he controlled.
Grentz pleaded guilty to the charge in January 2013.
Under federal law, Grentz must serve 85 percent of his prison sentence. Following his release, he will be under the supervision of the U.S. Probation Office for three years.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Kathryn M. Keneally, Assistant Attorney General for the Tax Division, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement.
The investigation preceding the indictment was conducted by the Internal Revenue Service, Criminal Investigation Division. The United States was represented in the case by Assistant U.S. Attorney John Patrick Grant and Kenneth C. Vert, Trial Attorney, U.S. Department of Justice Tax Division.
Jury Finds Inmate Guilty of Assault Resulting in Serious Bodily InjuryRead the Press Release
Orlando, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury found Scott Michael Patrick (48) guilty of assault resulting in serious bodily injury. He faces a maximum penalty of ten years in federal prison. His sentencing hearing is scheduled for September 19, 2013. Patrick was indicted on October 6, 2010.
According to evidence presented at trial, Patrick, who was an inmate at the Federal Correctional Complex in Coleman, Florida, carried out a plan to viciously attack a fellow inmate. On February 3, 2007, Patrick went to the victim's assigned unit. Patrick then began shadow boxing and stretching inside of another inmate's cell. After the victim walked past the cell, Patrick and another inmate began brutally beating the victim. A third inmate joined in the fight and stabbed the victim six times while Patrick continued to strike the victim until he collapsed to the floor, smacking his head against a metal kick plate. The victim died as a result of the attack.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Vincent Citro and James Mandolfo.
Joseph Banner Sentenced to 170 Months in Prison for Participating in A Conspiracy to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn - Joseph Banner, 34, of Erwin, Tenn., was sentenced to serve 170 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Banner pleaded guilty to a federal indictment which was filed in September 2012, charging Banner and 20 others with Conspiracy to Manufacture Methamphetamine. All have been convicted and sentenced to serve time in federal prison. Additional separate but related conspiracy to manufacture methamphetamine cases are currently being prosecuted in federal court.
The methamphetamine manufacturing conspiracy that Banner admitted to being a part of involved a network of overlapping associates that relied on coordinated efforts to procure methamphetamine precursors, which they then used to make methamphetamine using a "shake and bake" manufacturing method. Banner was a prolific methamphetamine cook and the remnants of numerous cooks were recovered by law enforcement from the property surrounding his residence. The drugs the conspirators were responsible for making were being distributed both for profit and for use by people within the conspiracy.
The indictment and subsequent conviction of Banner was the result of an ongoing and collaborative investigation conducted by the Unicoi County Sheriff’s Department, Washington County Sheriff’s Department, Erwin Police Department, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney J. Christian Lampe represented the United States.
U.S. Attorney Bill Killian commended the hard work and cooperation of the law enforcement agencies who worked the investigation. “It took a joint effort by all agencies involved to cause this result. I want to commend all those agencies and individuals who are working together to combat the home grown methamphetamine manufacturing rings that plague our communities."
Indictment Filed for Conspiracy to Commit Mail and Wire Fraud, and Extortion by Interstate Communications; Money Laundering; Money Laundering Conspiracy; And Obstruction of JusticeRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Stuart C. Cole, 58, of St Pete Beach, Florida, Mark C. Simpson, 50, of Lake Park, Georgia, and Stephanie M. Simpson, 30, of Lake Park, Georgia, were indicted by a Federal Grand Jury sitting in Macon, Georgia on June 12, 2013 for Conspiracy to Commit Mail and Wire Fraud (Count One) and Conspiracy to Commit Extortion by Interstate Communications and by Mail (Count Two). Mr. Cole and Mr. Simpson were also indicted for Money Laundering Conspiracy (Count Three), Money Laundering (Count Four through Six), and Obstruction of Justice (Count Seven). These charges stem from activities connected with the operation of a business known as Child Support Services and occurring between 2007 and 2009. A copy of the indictment is attached.If convicted, the defendants face the following penalties:
Count One – Conspiracy to Commit Mail and Wire Fraud (all three defendants), in violation of Title 18, United States Code, Section 1349.
Imprisonment up to twenty (20) years, fine of up to $250,000.00, followed by a term of supervised release of up to three (3) years, and a mandatory assessment fee of $100.00.
Count Two – Conspiracy to Commit Extortion by Interstate Communications and by Mail (all three defendants), in violation of Title 18, United States Code, Section 371 i/c/w Sections 875(d) and 876(d).
Imprisonment up to five (5) years, $250,000.00 fine or both, followed by a term of supervised release of up to three (3) years, and a mandatory assessment fee of $100.00.
Mr. Cole and Mr. Simpson also face the following:Count Three – Money Laundering Conspiracy, in violation of Title 18, United States Code, Section 1956(h).
Imprisonment up to twenty (20) years, fine of up to twice the amount laundered (alleged at $655,896.76), or both, followed by a term of supervised release of up to three (3) years, and a mandatory assessment fee of $100.00.
Count Four through Six – Money Laundering, in violation of Title 18, United State Code, Section 1957 and Section 2.
Imprisonment up to ten (10) years, $250,000.00 fine or both, followed by a term of up to three (3) years, and a mandatory assessment fee of $100.00.
Count Seven – Obstruction of Justice, in violation of Title 18, United States Code, Section 1512(c) and 2.
Imprisonment up to twenty (20) years, fine of up to $250,000.00 or both, and a term of supervised release of up to three (3) years, and a mandatory assessment fee of $100.00
An indictment is only an accusation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt at trial.
The case was investigated by the Internal Revenue Service Criminal Investigations, United States Postal Inspection Service, along with the Georgia Governor’s Office of Consumer Protection. The case is being prosecuted by Assistant United States Attorney Robert D. McCullers.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Illegal alien convicted of unlawful reentry identity theft and firearms possessionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a citizen of the Dominican Republic was convicted by a federal jury of 12 criminal offenses.
Javier Martinez, 48, was convicted of one count of reentry after deportation, five counts of making false claims of United States citizenship, five counts of aggravated identity theft, and one count of possession of a firearm by an illegal alien.
According to Assistant U.S. Attorney Thomas C. Bradley, who prosecuted the case, Martinez was deported from Miami to the Dominican Republic in 1992, but later unlawfully returned to the United States. Evidence at trial matched the defendant’s fingerprints to those of the person removed in 1992. Martinez was also convicted of illegally using the name Victor Rodriguez Flores, a resident of Puerto Rico, to apply for an Alaska identification card and to obtain employment at Anchorage hotels including: the Sheraton; the Embassy Suites; the Quality Inn; and the Millennium Hotel. Evidence presented at trial showed that Martinez falsely claimed to be a U.S. citizen on application forms filed with the Alaska DMV and each of the hotels where he worked.
Martinez was also convicted of possession of a firearm, a Ruger .45 caliber semiautomatic pistol. Illegal aliens are prohibited from possessing firearms under federal law, as are convicted felons, drug addicts, and fugitives from justice. Witnesses testified at trial that Martinez brought the pistol to the Millennium Hotel on October 29, 2011, after having been fired from his job, and used it to shoot Kerry Fadely his former supervisor. The firearm was recovered at the scene along with a letter from Martinez explaining the reasons he was unhappy working at the hotel. The letter directed the Millennium Hotel to send his final paycheck to the Anchorage jail. Martinez faces first degree murder charges in state court in connection with the shooting.
The defendant testified, claiming that he was never actually deported from the United States in 1992, because after being placed on the flight by immigration officers, he went out the back of the plane and into the terminal. Two special agents from Homeland Security Investigations testified at trial that Martinez had admitted to them that he was deported in 1992. They also testified that when they asked Martinez about the firearm he left at the Millennium Hotel, he stated that it was easier to buy a gun in Anchorage than to buy a pack of cigarettes or a six pack of beer.
Martinez faces up to 20 years of imprisonment on the reentry charge because he was deported following a felony drug trafficking conviction. He faces up to ten years on the firearms charge, five years on each of the false claim of citizenship charges, and a mandatory consecutive two years prison for the identity theft charges. Chief U.S. District Judge Ralph R. Beistline set the sentencing for August 27, 2013.
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and by officers of the Anchorage Police Department.Houston Man Gets 101 Months for Trafficking Firearms to ColombiaRead the Press Release
HOUSTON – Patrick Regan, 41, of Houston, has been ordered to federal prison for smuggling more than 300 firearms to Colombia, United States Attorney Kenneth Magidson announced today.
Regan pleaded guilty Jan. 24, 2012, to conspiracy to make and making a false statement to a federal firearms licensee, dealing in firearms without a license, possession of firearms with obliterated serial numbers and possession of an unregistered firearm.
At the hearing today, additional evidence was presented including the fact that the guns were being supplied to organizations in Colombia that take over and control areas of the country by killing law abiding citizens and legitimate police officers. After hearing arguments from both the government and the defense, U.S. District Judge Keith P. Ellison sentenced Regan to a total of 60 months on each of the first four charges to run concurrently. He was further sentenced to 41 months for the possession of an unregistered firearm which will be served consecutively for a total sentence of 101 months in federal prison. Following completion of his sentence, Regan will have to also serve two years of supervised release during which he cannot commit any further crimes and cannot possess a firearm.
In handing down the sentence, Judge Ellison noted this was one of the most serious crimes encountered by the district courts and that courts will deal with this type of conduct severely. He further stated he is concerned about the harm done to people as a result of this activity.
An investigation into the illegal export by Regan of firearms to Colombia was initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in October 2010. During the course of the investigation, ATF and Homeland Security Investigations (HSI), working jointly, learned Regan had acquired an unusually large number of firearms and related equipment beginning in or about October 2009 and had been receiving substantial sums of money via wire transfer from banks in Colombia. The results of the joint investigative effort led to the accusations that Regan made false statements to federally licensed firearms dealers to obtain firearms, obliterated the serial numbers on the firearms and unlawfully exported the firearms to Colombia.
Agents intercepted 27 firearms in Houston bound for Colombia. Regan admitted to shipping 100s of firearms to Colombia and, according to evidence at the hearing today, more than $100 thousand was wired to Regan from Colombia during the course of the conspiracy.
On Dec. 8, 2010, agents witnessed Regan ship numerous boxes addressed to recipients in Colombia. An examination of those boxes and their shipping labels resulted in a determination that the name of the addressee was fictitious, the shipping address was an abandoned residence in Colombia, the shipper’s name and address were fictitious and the description of the content of the packages identified as machine castings or pressure washers was also false. The boxes actually contained 16 firearms, including eight Fabrique-Nationale Herstal, model Five-seven, 5.7 x 28mm caliber pistols and eight Double Star, model STAR-15, 5.56mm caliber complete lower receivers. The lower receivers are components of AR-15 style semi-automatic rifles which are similar in appearance to the U.S. military’s M-4 rifle. Each firearm had its serial number obliterated.
Agents intercepted two subsequent firearms shipments made by Regan to Colombian addresses. A shipment intercepted on Dec. 15, 2010, included eight firearms. The following day, three Rock River Arms, model LAR-15, 5.56mm caliber lower receivers, were also recovered.
ATF and HSI agents executed a number of search warrants including one at Regan’s Houston area residence which resulted in the discovery and seizure of 55 additional lower and upper receivers for AR-15 style semi-automatic rifles, an unregistered fully assembled short-barrel AR-15 rifle and two pieces of metal working machinery.
In close collaboration with ATF and Department of Homeland Security liaison personnel stationed at the United States Embassy in Bogota, investigating agents passed on valuable leads to the Colombian National Police who conducted several searches in Colombia timed to coincide with the arrests in the United States. Colombian National Police have arrested several people and dismantled a workshop where firearms were being assembled from the lower receivers Regan allegedly supplied and other essential components.
Regan will remain in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The ATF and HSI conducted this investigation with the assistance of the United States Embassy in Bogota, the Colombian National Police and the Houston Police Department. Assistant U.S. Attorney (AUSA) Megan J. Paulson and former AUSA Mark White prosecuted this case.
Hanover Pennsylvania Heroin Dealer Sentenced to 20 Years in Prison in Connection with Two Heroin Overdose-Related DeathsRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Zachary Aaron Staley, age 30, of Hanover, Pennsylvania, was sentenced today by U.S. District Court Judge Sylvia H. Rambo to 20 years in prison for distributing heroin that resulted in two deaths. Judge Rambo further ordered that Staley pay $19,024.75 in restitution.
According to United States Attorney Peter J. Smith, in November 2007 and again in September 2008, Staley sold heroin to two individuals in the Hanover, Pennsylvania area who died of overdoses after using the heroin Staley sold them.
Staley was indicted in February 2012 and pleaded guilty in January 2013.
The case was investigated by the Drug Enforcement Administration and the Adams County District Attorney’s Office. Prosecution was handled by Assistant United States Attorney Joseph J. Terz.
Hanover Man Pleads Guilty to Making False Statements to the EPARead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 46-year-old man from Hanover, Minnesota, pleaded guilty to making false statements in matters within the jurisdiction of the United States Environmental Protection Agency (“EPA”) regarding the levels of toxic pollutants in the industrial wastewater discharged by Anodize, Inc., the Buffalo-based machine shop where he worked. Brent Roland Feickert specifically pleaded guilty to one count of making false statements. Feickert, who was charged on May 13, 2013, entered his plea before U.S. District Court Judge David S. Doty.
Anodize’s operations include metal plating, a process which yields industrial wastewater containing heavy metals and toxic pollutants. Anodize discharges the industrial wastewater into the sanitary sewer system pursuant to limits set forth in its discharge permit. Under the conditions of its permit, the concentration of toxic pollutants, including nickel and zinc, must be below specified limits set by the EPA. The Minnesota Pollution Control Agency (“MPCA”) monitors the permit and requires companies to submit quarterly reports.
At Anodize, Feickert was responsible for receiving and reviewing the results of tests performed on the company’s industrial wastewater and then entering those results on the quarterly discharge reports submitted to the MPCA. In his plea agreement, Feickert admitted that on five occasions between 2009 and 2011, he submitted false quarterly discharge reports to the MPCA. In each report, Feickert falsely represented that the levels of nickel or zinc in Anodize’s industrial wastewater discharge were within permit limits. In each instance, testing had revealed and Feickert knew that the levels of nickel or zinc were in excess of permit limits.
Following today’s plea, Michelle Beeman, Deputy Commissioner of the MPCA, said, “Self-reporting is a cornerstone of the environmental regulatory process. Water protection depends on truthful self-reporting and the MPCA considers any action that jeopardizes the integrity of the regulatory process to be a serious violation and a potential threat to the environment.”
“Without accurate and honest information, governments cannot fully protect the public’s health and welfare,” said Randall Ashe, Special Agent in Charge of the EPA’s criminal enforcement program in Minnesota. “If toxins contained in wastewater are not clearly identified, they cannot be properly treated. When that happens, America’s waterways end up as dumping grounds for waste materials. Today’s guilty plea should serve as a warning to anyone who puts public health at risk by not carrying out his or her responsibilities honestly.”
For his crime, Feickert faces a potential maximum penalty of five years in federal prison. Judge Doty will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Field Office of the EPA’s Criminal Investigative Division and the MPCA. It is being prosecuted by Assistant U.S. Attorney David M. Genrich.Fort Wayne, Indiana Man Sentenced to More Than 29 Years in Prison for Robbery of Springboro BankRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Anthony Marquette Phillips, 44, of Fort Wayne, Indiana was sentenced to 235 months in prison for his role in the armed robbery of a bank in Springboro on April 27, 2012 plus an additional 120 months for using and discharging a firearm during the course of the robbery.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigaiton, Cincinnati (FBI), and Springboro Police Chief Jeffrey Kruithoff announced the sentence handed down June 12 by U.S. District Judge Michael Barrett.
According to court documents, Phillips and Anton Jevon Alexander, 36, of Indianapolis, Indiana approached the bank manager as he was entering the building’s rear door at 8:30 in the morning and pushed him inside. Springboro police officers received a 911 call and arrived at the bank around 8:40. The would-be robbers attempted to flee when they heard police arriving. Phillips fired a shot at the manager. The manager escaped safely. The men remained in the bank until approximately 1:30 Friday afternoon when they emerged and were taken into custody.
Each defendant pleaded guilty on October 12, 2012. Alexander was sentenced on May 7, 2013 to 15 years in prison.
U.S. Attorney Stewart commended the prompt response and investigation by Springboro police and FBI agents, as well as District Criminal Chief Kenneth L. Parker and Special Assistant U.S. Attorney Greg Stephens with Butler County Prosecutor Mike Gmoser’s Office, who represented the United States in the case. Stewart also commended the cooperative response and investigation by the Warren County Sheriff’s Office -- Tactical Response Unit, Hostage Negotiation Team, the police departments in Miami Township, Franklin, Lebanon, Dayton and Clearcreek Township, the Clearcreek Township Fire Department, and the Ohio State Highway Patrol.
Former Youth Camp Worker Sentenced to 20 Years for Sexual Exploitation of ChildrenRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former YMCA camp employee has been sentenced in federal court for sexually exploiting children.
Matthew O’Dell, 29, of Springfield, Mo., was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, June 12, 2013 to 20 years in federal prison without parole. O’Dell, who was formerly employed at YMCA=s Camp Wakonda in Lawrence County, Mo., will spend the rest of his life on supervised release following incarceration.
O’Dell pleaded guilty on May 23, 2012. He admitted that he made a video recording of a 13-year-old minor, identified as “W.L.,” between Jan. 1, 2005, and May 30, 2006. The video, which was recorded at O’Dell’s residence, depicts W.L. engaged in sexually explicit conduct. On Aug. 4, 2009, Springfield police officers executed a search warrant upon a storage facility in which O’Dell had placed his belongings. The officers located a digital video tape containing the video recording of W.L.
Additionally, the court heard testimony concerning multiple individuals allegedly victimized by O’Dell prior to imposing the sentence upon O’Dell.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Vice President of Alberici Constructors, Inc. Indicted in Kickback SchemeRead the Press Release
St. Louis, MO - A former vice-president of St. Louis-based Alberici Constructors, Inc., was indicted by a federal grand jury in St. Louis for orchestrating a kickback scheme in which Alberici is alleged to have lost at least $4.8 million. CLONE JEFFERSON OLIVER, Apollo Beach FL, was indicted on seven counts of mail fraud, wire fraud and money laundering in an indictment returned today.
Also charged was KENNETH MARC SIMMONS, La Grange GA, who ran a business which supplied materials to an Alberici construction project in Arlington, Virginia. Oliver and Simmons are expected to surrender to authorities in St. Louis next week.
According to the indictment, Oliver was the project manager for Alberici on a project to build a water treatment plant in Arlington. Work on the project began in September 2006 and the cost of the project was $238,000,000. Oliver is alleged to have collaborated with Simmons on submitting inflated invoices and false change orders for materials provided to the project by Simmons' business, Industrial and Municipal Supply (IMS). The indictment charges that when IMS received payment on the bad invoices, Simmons kept a share and then forwarded money in the nature of kickbacks to Oliver. Simmons made many of the payments to a corporation formed by Oliver called Advanced Construction Solutions, which had the same initials (ACS) as another supplier to the Arlington project, American Construction Services. The indictment refers to Oliver's company as the "fake ACS" while the latter company is referred to as the “real ACS.”It is alleged that Oliver and Simmons used the real ACS to draw even more money out of Alberici. The owner of real ACS was directed by Oliver to inflate his company's invoices and, upon payment by Alberici, to transfer the inflated payment to IMS which, in turn, would send money on to Oliver. It is estimated that Alberici lost over $1.7 million by Oliver using the real ACS entity that way.
"No matter how sophisticated a fraud scheme, it will eventually be exposed," said Dean C. Bryant, Special Agent in Charge of the FB- St. Louis Division. "The FBI aggressively seizes items acquired with stolen money and returns the value of those items back to the victims."
"IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money," said Sybil Smith, Special Agent in Charge of the St. Louis Field Office.
Both Oliver and Simmons are charged in five counts of mail and wire fraud with each count carrying a maximum prison term of 20 years and/or fines to $250,000. Oliver is charged in two additional counts of money laundering with each count carrying a maximum prison term of 10 years and/or a fine up to $250,000. If convicted, each defendant would be subject to an order of restitution in favor of Alberici.
The government has already filed civil forfeiture actions against two properties which are alleged to have been purchased or financed with funds from the scheme. One is a home in Apollo Beach, FL, which is alleged to have been purchased for $1.1 million in 2008. The other is a home in Zephyrhills (aka Wesley Chapel), FL, on which first and second mortgages were alleged to have been paid off with stolen funds. The following assets were also seized pursuant to court orders tracing the proceeds of the scheme: two boats and a boat trailer; two Sea Doo water crafts; a Mercedes vehicle; a diamond ring; proceeds from the sale of two Harley motorcycles and a boat dock; and proceeds from the refinancing of a property on Lake Martin in Alabama. Any proceeds from those court actions will go to Alberici as the victim of the offenses charged.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys James E. Crowe, Jr. and Anthony Franks are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Tallahassee Memorial Hospital Employees Sentenced in Tax Refund SchemeRead the Press Release
TALLAHASSEE B Spencer Larry Parson, 25, and Amber Sasha-Rashawn Simmons, 23, both of Tampa, were sentenced to 57 months in federal prison following their guilty pleas to conspiring to defraud the United States in the filing of false tax returns. Parson and Simmons also pled guilty to two counts of wire fraud and two counts of aggravated identity theft in connection with the fraudulent tax refund scheme. The sentences were announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
At their plea hearing, the government’s factual basis stated that between 2011 and 2012, Parson and Simmons prepared and filed fraudulent returns seeking more than $818,000 in tax refunds. Parson and Simmons created the fraudulent returns using taxpayer identification numbers and other personal identifying information stolen from both living and deceased individuals, who were patients of Tallahassee Memorial Hospital. Parson was a former employee of the hospital
In addition to the 57 months in prison, the judge also imposed a special monetary assessment of $700, three years of supervised release and ordered Parson and Simmons to pay $283,591.33 in restitution to the Internal Revenue Service.
The Internal Revenue Service, United States Postal Inspection Service, and Leon County Sheriff’s Office investigated this case, which was prosecuted by Assistant U.S. Attorney Jason Coody.
Former President of Galiano Career Academy Agrees to Plead Guilty to Theft of Federal Funds, Obstruction, and Aggravated Identity TheftRead the Press Release
Orlando, FL - United States Attorney Robert E. O’Neill announces that Michael Gagliano (49, Sanford) has agreed to plead guilty to theft of government property, obstruction of a federal audit, and aggravated identity theft. He faces a maximum sentence of 10 years in federal prison for the theft of government property charge, up to five years in prison for the obstruction charge, and a mandatory minimum term of 2 years in prison, which must be served consecutive to his sentence for any of the other underlying offenses. The information also notifies Galiano that the United States intends to seek a money judgment in the amount of $2,105,761.00, which are alleged to be traceable to proceeds of the offenses. Gagliano was charged by information on June 12, 2013.
According to court documents, Galiano Career Academy, Inc. (GCA), located in Altamonte Springs, was a for-profit trade school, offering career programs such as Medical Assistant, Medical Billing and Coding, Pharmacy Technician, Travel Counselor, and Travel and Tourism Specialist. Gagliano was GCA’s President and School Director. GCA was approved by the United States Department of Education (DOE) to administer Federal Student Assistance (FSA) programs, including the Federal Family Education Loan Program (FFEL) and the Federal Pell Grant program, which offered assistance to eligible students participating in post-secondary education at eligible institutions. GCA also received financial assistance for job training from Workforce Central Florida (WCF), a permanent placement agency, helping employers connect with job seekers each year in the central Florida area.
Gagliano used Columbus Academy, a high school “diploma mill” owned and operated by his wife, to make students eligible for FSA when they otherwise would not have been qualified. The GCA students who “graduated” from Columbus Academy were not eligible to receive the federal funds since these students did not receive a real high school education. From July 2007 through July 2010, 176 ineligible students enrolled at GCA through Columbus Academy received $1,221,878.00 in Direct Student Loan funds and $715,708.00 in Pell grant funds. Additionally, GCA received federal funds from the United States Department of Labor and WCF for ineligible students who attended GCA. As a result, GCA unlawfully received $168,175.00 of funds for unqualified students.
On July 13, 2009, the DOE Office of Federal Student Aid conducted a program review of GCA. The review was conducted to assess GCA’s administration of the financial aid programs in which it participated. During the program review Gagliano tampered with student records. The investigation also revealed that GCA/Gagliano electronically submitted the name and social security number of a student to the DOE in order to obtain loan funds on her behalf, well after she stopped attending GCA. Gagliano falsified the student’s attendance records to indicate that she was in attendance at GCA.
An information is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Department of Education, Office of Inspector General and the United States Department of Labor, Office of Labor Racketeering and Fraud Investigation. It will be prosecuted by Assistant United States Attorney David Haas.
Former Pennsylvania Charter School Operator Pleads Guilty to Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dennis Bloom, age 58, of Mount Pocono, Pennsylvania, pleaded guilty today to tax fraud before U.S. District Court Judge Robert D. Mariani in Scranton.
According to United States Attorney Peter J. Smith, Bloom was indicted in March 2013 following his failure to report $180,000 in income and evaded approximately $57,813 in taxes.
Bloom is the former chief executive officer of the Pocono Mountain Charter School and Pastor of Shawnee Tabernacle Church, both in Mount Pocono.
A sentencing date was scheduled for the week of September 16, 2013.
The case was investigated by the Internal Revenue Service-Criminal Investigations and the U.S. Department of Education, Office of Inspector General. Prosecution is assigned to Assistant United States Attorney Lorna N. Graham.
Former Loan Officer at Pampa Teachers Federal Credit Union Sentenced to 36 Months in Federal Prison for Stealing from Credit UnionRead the Press Release
Erin Dawn Trevathan Also Ordered to Pay More Than $400,000 in Restitution
AMARILLO, Texas — Erin Dawn Trevathan, 26, of Amarillo, Texas, was sentenced this afternoon by U.S. District Judge Mary Lou Robinson to 36 months in federal prison and ordered to pay $442,297 in restitution following her guilty plea April 2013 to one count of fraud in connection with federal credit union entries. She was remanded to custody. Today’s announcement was made U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Trevathan was employed by the Pampa Teachers Federal Credit Union as a loan officer from July 2008 until early December 2010, and during that time, she was the sole loan officer at the credit union. Her job consisted of processing personal loans and auto loans.
During an audit, irregularities were noticed. When confronted, Trevathan admitted that she had been making false entries and stealing cash from the credit union’s main account for her personal use. As a result of her false entries, loan manipulations and unauthorized activity, the Pampa Teachers Federal Credit Union suffered a loss of approximately $422,973.
The case was investigated by the FBI, with assistance from the National Credit Union Administration. Assistant U.S. Attorney Christy Drake was in charge of the prosecution.
Former FBI Fugitives Guilty of Multiple Charges Including Conspiracy to Distribute A Controlled Substance, Operating an Unlicensed Money Transmitting Business, and Lying to Obtain Federal AidRead the Press Release
LOUISVILLE, Ky. – A native of Somalia and his son, a native of Kenya, who were fugitives from the Federal Bureau of Investigation (FBI) have pleaded guilty today and last week, in United States District Court, before Judge John G. Heyburn II, to multiple charges including conspiracy to distribute a controlled substance, operating an unlicensed money transmitting business, and lying to obtain federal aid, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Abdalla Hajisufi, age 43, a naturalized citizen of the United States, having been born in Somalia, and living in Louisville, Kentucky, and his eldest son Mohamed Hajisufi, age 20, a naturalized citizen of the United States, having been born in Kenya, and living in Louisville, failed to appear in federal court for arraignment in June 2012, and were fugitives from the FBI until their arrest on January 28, 2013, by the FBI, as they attempted to reenter the United States on a flight from Europe at the Cincinnati/Northern Kentucky International Airport.
In court today and last week, both defendants pleaded guilty to conspiring to distribute Oxycodone and Hydrocodone between November 2011 and March 2012, at various times, to customers at their business, the Hana Store, formerly located on Preston Highway in Louisville. Further, Abdalla Hajisufi pleaded guilty to managing and owning an unlicensed money transmitting business operating out of the Hana Store. According to the plea agreement Hajisufi cashed payroll checks from employees of a temporary employment agency, and would deduct a small fee for the transaction, without complying with the licensing and registration requirements of Kentucky state laws. According to an FBI affidavit filed in support of a civil complaint, Hajisufi cashed nearly 107,000 payroll checks totaling over $6.6 million from July 2006 through December 2010 at the Hana Store.
Further, Abdalla Hajisufi pleaded guilty today, to stealing $41,640 in food stamp benefits from the SNAP program, which administers food stamp benefits, from January 1, 2006 through May 31, 2011, and to stealing $20,196 in Section 8 housing benefits by misrepresenting his income on benefit application forms. Hajisufi agreed to pay $119,876.87 in restitution to the Kentucky food stamp program ($41,640), the local, Jefferson County, Kentucky, Section 8 program ($20,196) and the Kentucky Medicaid program ($58,040.87), stolen in the same manner as the Section 8 and food stamp benefits but uncharged as it was not discovered until after this indictment.
Hajisufi further agreed to the forfeiture of $25,008 in United States currency which was seized at his place of business, The Hana Store, during execution of the FBI search warrant on March 13, 2012.
According to the plea agreements, Mohamed Hajisufi faces a minimum term of 20 years in prison, a fine of $1,000,000 and a three year term of supervised release. Abdalla Hajisufi faces a combined maximum term of 60 years in prison, a fine of $2,500,000 and a three year term of supervised release. Mohamed Hajisufi is scheduled for sentencing on September 3, 2013, at 3pm, in Louisville.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the FBI, Internal Revenue Service, United States Department of Housing and Urban Development (HUD), and United States Department of Agriculture (USDA).
Former East Bay Woman Pleads Guilty to Conspiring to File False ClaimsRead the Press Release
OAKLAND, Calif. – Angela Pellette pleaded guilty yesterday to conspiring to file false claims with the IRS, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
According to her plea agreement, beginning in August 2008, Pellette helped obtain tax refunds from the IRS based on false tax returns that she filed. In order to carry out the scheme, Pellette asked others to provide their personal identifying information for use in false returns. Pellette knew that the returns she filed were false because, in many instances, the person whose name appeared on the tax returns did not supply the information reported on the tax return.
Pellette used others individuals’ bank accounts, in addition to her own, to receive the fraudulent refunds. When the fraudulent tax refunds were issued, Pellette and the account holder split the proceeds if Pellette’s personal account was not used.
Pellette, 54, was indicted on July 12, 2012. Her sentencing hearing is scheduled for September 18, 2013, in front of The Honorable Charles R. Breyer, U.S. District Court Judge. The maximum statutory penalty for conspiracy to file false claims, in violation of Title 18 U.S.C. § 286 is 10 years in prison and a $250,000 fine. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Michael G. Pitman and Thomas Newman are the Assistant U.S. Attorneys who are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Former Chief of St. Clair Fire Protection District and Ladue Fire Department Sentenced on Federal Fraud and Tax ChargesRead the Press Release
St. Louis, MO -Eric Hinson was sentenced to 35 months in prison on mail fraud and multiple tax evasion charges involving his misuse of approximately $593,236 of St. Clair Fire Protection District funds between January 2006 and September 2011. As a result of the federal investigation, Hinson resigned his positions as Chief at both the St. Clair Fire Protection District and the Ladue Fire Department. In addition to the prison sentence, he was ordered to pay restitution of $615,298.
"In rural Missouri volunteer fire personnel are the backbone of public safety when it comes to our homes and property," said U.S. Attorney Richard Callahan. "Aside from our thanks, they deserve much better than this from their leaders."
The St. Clair Fire Protection District (District) provides fire protection service for Franklin County, Missouri, and has four fire houses, 18 full-time fire fighters and between 25-50 volunteer fire fighters. The District is primarily funded by public funds, through real estate tax, personal property tax and sales tax. Eric Hinson began with the District as a volunteer firefighter during 1985, was elected to the Board of Directors for the District in 1997 and as Treasurer of the District in 1999. During January 2011, he became the Fire Chief for the District while continuing to perform his duties as Treasurer, until his resignation from the District on September 28, 2011. As Treasurer, Hinson was responsible for preparing the annual budgets, facilitating the annual financial statement audit, gaining approval from the District's Board of Directors for expenditures, reconciling bank statements and performing other accounting related activities, in the QuickBooks general ledger system, other than for payroll. He also had the ability to access the QuickBooks system remotely from outside the District offices.
According to court documents, Hinson used the District credit cards to pay for family vacations to Hawaii and Florida, to pay for personal items such as sporting goods and other items, limousine rentals, tickets to Six Flags, Big Surf Water Park and other entertainment expenses, restaurant meals, gasoline and hotel rooms, as well as to obtain significant cash advances. Without the knowledge and authority of the District, Hinson directed that these personal credit card charges be paid with District funds. Further, on several occasions, Hinson wrote District checks to pay for his own personal expenses, including checks to Ford Credit for a pickup truck, to Macy's for furniture, to John Deere Credit for tractor parts and checks to Bank of America and Fifth Third Bank for other personal expenses. In order to conceal his scheme, Hinson accessed the District's QuickBooks to alter reported general ledger activity by backdating certain of his fraudulent transactions and by changing the payee in order to manipulate the District's accounting records so as to hide the existence of his fraudulent transactions. Through his fraudulent conduct, Hinson obtained approximately $593,236 from the St. Clair Fire Protection District.
Additionally, Hinson filed false tax returns for the years 2006 through 2010, leaving total additional taxes due of $132,383.ERIC HINSON, St. Clair, MO, pled guilty in February to one felony count of mail fraud and five felony counts of tax evasion. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the St. Clair Police Department, Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with the assistance of the St. Clair Fire Protection District. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
Former CEO of Miami Beach Community Health Center Sentenced in Six Million Dollar ScamRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the sentencing of defendant Kathryn Abbate, 64, of Hollywood, FL, to 42 months in prison, to be followed by 3 years of supervised release.
According to the factual proffer, the defendant served as Chief Executive Officer (CEO) of the Miami Beach Community Health Center (the Center) from 2002 to mid-2012. The Center was a Federally Qualified Health Center (FQHC) during this time, and was a community-based organization providing medical care to persons regardless of ability to pay or insurance status. As an FQHC, the Center received millions of dollars of federal funding each year from 2008 to 2012
According to the factual proffer, from about 2008 through May 2012, Abbate embezzled money from the Center in a number of ways. First, Abbate caused the Center to pay her non-accrued vacation pay and other forms of compensation, totaling more than $3 million from between 2008 and 2012. Second, Abbate embezzled money from the Center by causing non-payroll checks to be issued payable to her. Specifically, from 2007 to 2012, Abbate caused the Center to disburse approximately 837 checks made payable to her totaling approximately $3 million for purported “community development.”
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former CENTCOM Employee Sentenced to 10 Years in Federal Prison for Attempted Sexual Enticement of A ChildRead the Press Release
Orlando, Florida - Chief U.S. District Judge Anne C. Conway today sentenced Stephen Governale (50, Tampa) to 10 years in federal prison for attempted enticement of a minor to engage in a sexual activity. Governale was also ordered to serve a ten-year term of supervision and required to register as a sex offender, following his release from prison. He pleaded guilty on January 29, 2013.
According to court documents, on September 11, 2012, the Federal Bureau of Investigation was contacted by the parents of a seventeen-year-old child who was receiving sexually inappropriate messages from Governale. At the time of his arrest, Governale, a United States Air Force Reserve Lieutenant Colonel, was a protocol officer at CENTCOM in Tampa. In an interview, the child victim explained that he met Governale through an organization affiliated with the military. He said that he went with Governale to conferences and stayed in Governale’s hotel room. The victim also stated that he and Governale had watched pornographic movies and engaged in sexual activity while staying together.
On September 21, 2012, as Governale was planning to travel to Central Florida for business, a Task Force Agent with the FBI assumed the child victim’s on-line identity. The agent began to communicate online with Governale. During th online chats Governale attempted to entice the child victim to engage in sexual activity. Governale also arranged to meet the victim at a location in Central Florida. When Governale arrived, he was arrested by the FBI.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
This is another 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 (CEOS), 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.
Florida Based Seafood Company Settles with the United StatesRead the Press Release
Pescanova, Inc. Failed to Comply with National and International Regulations Governing the Importation and Exportation of Chilean Sea Bass
[Albany, New York] United States Attorney Richard S. Hartunian announced today that his office has settled a civil action it brought against Pescanova, Inc. (d/b/a Pescanova USA), an international seafood company with offices in Coral Gables, Florida, based upon the company’s exportation, and subsequent re-importation, of 9,600 pounds of Patagonian toothfish (also known as Chilean Sea Bass or Dissostichus eleginoides) on October 24 and December 15, 2010. As part of the settlement, Senior United States District Court Judge Lawrence E. Kahn issued a Consent Decree which authorized civil penalties, forfeiture and permanent injunctive relief against Pescanova. As part of the settlement, Pescanova will pay civil penalties totaling $35,000.00, forfeit $96,013.76, (the proceeds from the sale of the toothfish which were exported and re-imported) and the company is enjoined from committing similar violations in the future.
The Patagonian toothfish, an Antarctic Marine Living Resource (“AMLR”), is found in deep waters around Antarctica and the sub-Antarctic islands, as well as off the coast of Patagonia, a region in the southern part of Argentina and Chile. The United States is one of the largest and most lucrative markets for toothfish in the world. This fish is particularly susceptible to the threats of illegal fishing because it is commercially valuable and, as a slow-growing species, reaches marketable size before reaching sexual maturity. There is concern that these characteristics make toothfish particularly vulnerable to serious population declines if its harvest and trade are not monitored and controlled. The United States is a party to the international Convention on the Conservation of Antarctic Marine Living Resources and a member of the Commission for the Conservation of Antarctic Marine Living Resources (“CCAMLR”). CCAMLR has adopted binding conservation measures to address the conservation of Antarctic marine living resources, including the harvest and trade of toothfish. Members of CCAMLR are required to implement these binding measures with respect to their vessels and nationals. CCAMLR has implemented a Catch Documentation Scheme (“CDS”) designed to prevent and discourage the unlawful harvest and trade of toothfish by tracking toothfish from the point of harvest to the point of import for consumption. As part of the CDS, those authorized to harvest, import or export toothfish, must complete a Dissostichus Catch Document (“DCD”), a form which seeks specific information concerning the harvesting, importation and exportation of toothfish. In order to carry out its obligations with CCAMLR, including those related to the conservation of toothfish, the United States enacted the Antarctic Marine Living Resource Convention Act (“AMLRCA”). To implement the AMLRCA, the National Marine Fisheries Service (“NMFS”) promulgated regulations imposing various requirements on those who engage in the harvest and trade of toothfish and which are designed to help prevent illegal, unregulated, and unreported catches of toothfish. The Complaint, which was filed today in U.S. District Court in Albany, alleges that Pescanova did not comply with CCAMLR’s CDS, or with the United States’ implementing laws and regulations, when it failed to complete DCDs prior to exporting and re-importing toothfish in October and December of 2010.
Richard S. Hartunian, United States Attorney for the Northern District of New York, stated that “The United States has entered into a treaty with a number of nations and my office will enforce its provisions in this district. The treaty is designed to protect and preserve an Antarctic Marine Living Resource for which there is a concern that it will become extinct if its harvesting and trade are not monitored and controlled. It is important that we aggressively protect such species so that future generations are able to enjoy them.”
"NOAA continues to work cooperatively with the Department of Homeland Security Investigations, Customs and Border Protection, the Food and Drug Administration, and with other Nations," said Logan Gregory, special agent in charge of NOAA's Office of Law Enforcement's Northeast Division. "We do this to help ensure a level playing field in all sectors of the seafood industry."
The government’s Complaint alleges in part the following: Pescanova is a corporation with its principle place of business in Coral Gables, Florida that engages in the business of, among other things, importing and exporting seafood, including Patagonian toothfish. Sometime in July of 2010, Pescanova employees were trained by an employee of the National Oceanic and Atmospheric Administration (NOAA) concerning the trade requirements pertaining to Patagonian toothfish. Later that year, in October of 2010, Pescanova sold and transported 9,600 pounds of frozen Patagonian toothfish to a Canadian company from the United States through the Champlain, New York Port of Entry. The fish in question had been legally caught, and Pescanova had previously imported it into the United States from Argentina after filing the appropriate DCD with NOAA. Pescanova transported this toothfish to Canada without first completing an application for, and obtaining, the required validated export or re-export document (“Approval Action of Catch Documentation for Toothfish” form) issued by a NMFS designee.
When the toothfish were subsequently tested by officials from the Canadian Food Inspection Agency (“CFIA”), it was determined that they did not comply with CFIA’s standards for mercury. As a result, the fish could not be sold for consumption in Canada. On December 15, 2010, Pescanova arranged to have these fish transported from Canada to the United States through the Champlain Port of Entry. Once again, Pescanova did not first submit an application and obtain the required preapproval from the NMFS prior to importing these fish. The toothfish were seized by United States Customs and Border Protection officers on January 14, 2011, and eventually auctioned for $96,013.76.
Under the terms of the settlement, Pescanova will pay a civil administrative penalty of $22,000.00 to NOAA, a civil penalty of $13,000.00 to the United States Department of Justice, and consents to the administrative forfeiture of the $96,013.76 obtained from the sale of the 9,600 pounds of fish. In addition, Pescanova and its employees are permanently enjoined from importing, re-importing, exporting, or re-exporting Patagonian toothfish, or any other Antarctic marine living resources, unless they comply with the procedures promulgated by the CCAMLR and with the United States’ implementing laws and regulations. Pescanova agreed that in the event it imports, re-imports, exports or re-exports toothfish, or any other Antarctic marine living resources in violation of law or regulation, it will pay to the United States, upon the first violation, a civil contempt penalty of one hundred dollars ($100.00) for each pound, or portion thereof, of toothfish, or any other Antarctic marine living resources it so imports or exports. For each successive violation, Pescanova will pay a contempt penalty of five hundred dollars ($500.00) for each pound, or portion thereof, of toothfish or any other Antarctic marine living resources.
This matter is assigned to Assistant U.S. Attorney Thomas Spina Jr. News inquiries should be directed to Executive Assistant United States Attorney John Duncan [(315) 448-0672]. The investigation was conducted by agents with the United States Department of Commerce, National Oceanic and Atmospheric Administration (“NOAA”), and officers with the United States Department of Homeland Security Investigations, Customs and Border Protection.
Federal Jury Convicts Harrisburg Man of Illegally Possessing A FirearmRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric Chambers, age 42, of Harrisburg, was convicted Wednesday, in federal court, for possession of a firearm by a convicted felon following a two-day trial before U.S. District Court Judge William W. Caldwell. The jury deliberated approximately 30 minutes.
According to United States Attorney Peter J. Smith, Dauphin County had an active arrest warrant for Chambers following an attempted murder in September 2011. On January 9, 2012, police received a tip that Chambers was at the Red Roof Inn, Eisenhower Blvd., Harrisburg. Federal, state and local law enforcement responded and Chambers was arrested without incident.
A subsequent search of the hotel room revealed that Chambers had a loaded .40 caliber semi-automatic handgun and a loaded magazine that was hidden in the trash can.
Chambers was indicted by a federal grand jury for the illegal possession of a firearm in April 2012 as a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harrisburg Bureau Police Department and the Swatara Police Department.
Last month, Chambers was convicted of attempted murder and other charges in Dauphin County.
Chambers is awaiting sentencing on both the federal and county convictions.
The federal case was prosecuted by Assistant U.S. Attorney Meredith Taylor.
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 particular case, the maximum penalty under the federal statute is life imprisonment. The federal statute also carries a 15 year mandatory minimum term of 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.