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Thursday 13 June 2013
Federal Inmate Pleads Guilty to Escaping from PrisonRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, an inmate who escaped from the Federal Prison Camp in Duluth in March 2013 and was on the run for six days pleaded guilty to that crime. Michael Joseph Krzyzaniak, age 64, of Minneapolis, specifically pleaded guilty to one count of escape from custody. Krzyzaniak, who was indicted on April 22, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Krzyzaniak admitted that on March 30, 2013, he left the custody of the federal prison camp without authorization. He was arrested on April 5, 2013, at a Burnsville motel. He was serving a 151-month sentence for a 2012 conviction in the District of Minnesota for wire fraud and tax evasion. According to a law enforcement affidavit filed in the current case, Krzyzaniak was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m.
For his crime, Krzyzaniak faces a potential maximum penalty of five years in federal prison, which may be tacked onto the sentence he is already serving. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on June 12, 2013:
Kandi Biggins , 43, of Spencerville, Indiana, was charged in an eight-count Indictment with eight counts of bank fraud.Charges were filed as a result of an investigation by the Indiana State Police and Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Bryant Rios, 25, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm.Charges were filed as a result of an investigation by the South Bend Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Abdul Amin Shabazz, 38, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm.Charges were filed as a result of an investigation by the South Bend Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. .
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictment on June 12, 2013:
Deyante Stephens, 22, of Fort Wayne, Indiana was charged in a single count Indictment with armed bank robbery on or about February 14, 2013. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, Northeast Indiana Federal Bank Robbery Task Force, and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Father and Son Sentenced to Prison in Connection with Bogus Foreclosure Rescue CompanyRead the Press Release
NEWARK, N.J. – A father and son who ran a mortgage loan fraud scheme that succeeded in obtaining $4.4 million in mortgage loans while masquerading as a foreclosure rescue operation were both sentenced to prison today, U.S. Attorney Paul J. Fishman announced.
Vito C. Grippo, 58, of Jackson, N.J., the president of Morgan Financial Equity Shares and Vanick Holdings, LLC, based in Holmdel, N.J., was sentenced to 96 months in prison. He previously pleaded guilty before U.S. District Judge Kevin McNulty to an Indictment charging him with one count of conspiracy to commit wire fraud, two counts of filing a false tax return for the years 2006 and 2007, and one count of aiding and procuring the filing of a false tax return for the year 2008.
Frederick “Freddie” Grippo, 32, of Old Bridge, N.J., formerly a loan officer at Worldwide Financial Resources and an officer of Vanick Holdings, was sentenced to 41 months in prison. He previously pleaded guilty before Judge McNulty to an information charging him with one count of conspiracy to commit wire fraud. Judge McNulty imposed both sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Between January 2008 and February 2010, Vito Grippo held Morgan Financial out to the public as a company that could help homeowners who faced foreclosure on their homes through something Grippo called the “Equity Share Program.” As described by Grippo and his associates, the Equity Share Program involved creating a limited liability company (LLC) in the name of the homeowner’s house, in which the homeowner would supposedly own a 90 percent interest with the rest to be owned by one or two private investors.
In reality, the so-called investors invested nothing and were instead straw buyers recruited by Vito Grippo or his son, Frederick Grippo, because they had good credit. The Grippos and their associates then applied for mortgages in the names of the “investors” for the purchase of the properties owned by the homeowners in distress.
A homeowner in distress would come to a closing in Vito Grippo’s office in Holmdel and be given a stack of documents to sign to prevent foreclosure. The homeowners frequently did not understand that they would be transferring title to their homes to the “investor.”
The new mortgage loan applications filled out by the Grippos or their associates in the name of one of the investors contained materially false information about the loan applicant’s monthly income, his assets and whether the residence to be bought would be applicant’s primary residence.
Once the new loan application was filled out, it would be submitted to Worldwide Financial Resources for processing, where Freddie Grippo, a loan officer at Worldwide, would see to it that the loan was approved. Once the loan was approved and the loan money was wired to the settlement agent for a given transaction, Vito Grippo would direct the settlement agent to forward a portion of those loan proceeds to bank accounts that Vito Grippo controlled.
Properties that lost money through the Equity Share Program were found throughout the metropolitan area, including homes in Rutherford, N.J., Monroe, N.J. and Brooklyn, N.Y.
For the year 2006, Vito Grippo did not report $289,780 in gross income from the activities of Vanick Holdings LLC. For the year 2007, he did not report $213,261; and for the year 2008, he did not report $1,366,261.
In addition to the prison terms, Judge McNulty sentenced Vito Grippo to five years of supervised release and Frederick Grippo to three years of supervised release. Restitution will be determined at a hearing on July 17, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents from IRS—Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and postal inspectors in the Newark Division, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentences.
The government is represented by Assistant U.S. Attorney Bohdan Vitvitsky of the U.S. Attorney’s Economic Crimes Unit in Newark.
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Defense counsel:
Vito Grippo: Patrick N. McMahon Esq., Assistant Federal Public Defender, Newark
Frederick Grippo: Stacy A. Biancamano Esq., West Orange, N.J.Fate of Kaboni Savage Co-Defendant DeterminedRead the Press Release
PHILADELPHIA - The federal jury that voted in favor of death for drug kingpin Kaboni Savage, today voted in favor of life for Savage co-defendant Steven Northington, 41. Savage was formally sentenced to death last week by U.S. District Court Judge R. Barclay Surrick. He is the first defendant in the Eastern District of Pennsylvania to receive the death penalty in federal court. He 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 October 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. The jury had found Northington guilty 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 on June 19, 2013.
Co-defendants Kidada Savage, Kaboni Savage’s sister, and Robert Merritt face mandatory life sentences. They were convicted at trial of the RICO conspiracy and Kidada Savage was also convicted of the Coleman family murders.
Today’s penalty verdict was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, and Special Agent-in-Charge Edward J. Hanko of the FBI’s Philadelphia Division.
“Achieving justice sometimes requires us to ask the citizens on a jury to make the most difficult sentencing decision imaginable,” said 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.”
“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.”
“Kaboni Savage and his crew murdered men, women, and children – for money, power, and, ultimately, just for revenge,” said Edward J. Hanko, FBI Special Agent in Charge. “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 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 murders of the six people inside the Coleman home, Savage was convicted of:
- the March 19, 1998, murder of Kenneth Lassiter, age 44, of Lansdale, PA, near the corner of 8th and Butler Streets in Philadelphia;
- the September 6, 2000 murder of Mansur “Shafiq”Abdullah, age 22, of Philadelphia. Abdullah was shot and his burned body was later recovered in the 4200 block of North Park Avenue, in Philadelphia;
- the September 13, 2001 murder of Carlton “Mohammed” Brown, age 27, of Philadelphia;
- the February 26, 2003 murder of Barry Parker, age 32, of Philadelphia, in the 3900 block of North Franklin Street, in Philadelphia;
- the March 14, 2003 murder of Tyrone Toliver, age 26, of Cherry Hill, NJ, in the 3500 block of North Palmetto Street in Philadelphia; and
- the March 1, 2004 murder of Tybius Flowers, age 32, in the 3700 block of N. 8th Street in Philadelphia;
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, 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 HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin, of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525East St. Louis Man Sentenced for Crack Cocaine OffensesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Joshwa Givens was sentenced to 57 months in prison for offenses relating to the sale of crack cocaine.
Givens, 28, of East St. Louis, had pled guilty in federal district court on February 27, 2013, to three counts of Possession of Crack Cocaine with Intent to Distribute and to one count of Possession of Crack Cocaine. Givens has been confined in federal custody since his arraignment on January 14, 2013.
At his change of plea hearing in February, Givens admitted possessing crack cocaine with intent to distribute it in St. Clair County on August 7, 2011 and March 16, 2012, and in Madison County on January 2, 2012. Police seized a total of 22 grams of crack cocaine (over 3/4 of an ounce) from Givens, along with $2,579 in cash. Givens admitted that the cash came from the sale of crack cocaine. Givens was on state probation for two separate crack cocaine felony convictions when he was arrested on the federal charges.
The investigation which resulted in Givens’ arrest and conviction was conducted by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI), the Drug Enforcement Administration (DEA), the Fairview Heights Police Department, the Belleville Police Department, the Caseyville Police Department, and the Collinsville Police Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Eagle Pass Businessman Indicted in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Eagle Pass last night, Federal Bureau of Investigation agents along with Texas Department Public Safety investigators arrested 52-year-old Salvador Castillon, owner of South Texas Concrete based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed this morning, charges Castillon with two counts of paying a bribe to an agent of an organization receiving federal funds. According to the indictment, Castillon was awarded Maverick County construction contracts totaling $416,800 in 2010 and $148,000 in 2011. The indictment alleges that in exchange for each Maverick County construction contract he was awarded, Castillon agreed to pay a Maverick County commissioner between $3,000 and $5,000.
Upon conviction, Castillon faces up to ten years in federal prison and a maximum $250,000 fine per count.
Castillon appeared before U.S. Magistrate Judge Collis White in Del Rio this morning for his initial appearance. Judge White ordered that Castillon remain in custody pending the outcome of a detention hearing scheduled for 9:00am on Monday, June 17, 2013.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Director of Cleveland Non-Profit Pleads Guilty to Tax ChargesRead the Press Release
The director of a Cleveland non-profit organization pleaded guilty today to withholding taxes from employees but not paying them over to the government, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Edward G. Kramer, 62, also evaded his personal income tax obligations when he falsified his income tax returns for two years and did not file a file return in two other years.
He pleaded guilty to a 10-count criminal information in U.S. District Court Thursday. He is scheduled to be sentenced Sept. 13.
“We all have an obligation to truthfully report our income and pay taxes,” Dettelbach said. “It is especially incumbent on those who work in our legal system to follow the law themselves.”
Kramer was director and chief counsel of Housing Advocates, Inc., a non-profit organization in Cleveland that received federal funding from the U.S. Department of Housing and Urban Development. Kramer also maintained a private law practice and owned a property leasing business called Remark, according to the information.
Kramer underreported his income for calendar years 2007 (underreported by $79,262) and 2008 (underreported by $101,571), the understatement consisting of unreported payments from Housing Advocates accounts for his benefit as well as unreported income from his private law practice, according to the information.
Kramer also failed to file income tax returns for 2009 and 2010, despite the fact that he had taxable income of approximately $149,884 in 2009 and $270,687 in 2010, according to the information.
Collectively, Kramer sought to avoid paying taxes on approximately $500,000 in income between 2007 and 2010, according to the information.
Kramer was responsible for collecting, accounting for and paying over quarterly to the Internal Revenue Service income and FICA taxes on behalf of Housing Advocates, Inc. The organization deducted and collected the required taxes from the wages of its employees but Kramer willfully failed to pay over the taxes, according to the information.
The taxes collected but not paid over from January 2009 until September 2010 total nearly $80,000, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Housing and Urban Development – Office of Inspector General.
Department of Justice Reaches Landmark Settlement Agreement with Rhode Island and City of Providence Under the ADARead the Press Release
The Justice Department announced today that it has entered into an interim settlement agreement with the State of Rhode Island and the City of Providence that will resolve violations of the Americans with Disabilities Act (ADA) for approximately 200 Rhode Islanders with intellectual and developmental disabilities (I/DD).
This first-of-its-kind agreement addresses the rights of people with disabilities to receive state- and city-funded employment and daytime services in the broader community, rather than in segregated sheltered workshops and facility-based day programs exclusively with other people with disabilities. The department launched an ADA investigation in January 2013 into Rhode Island’s day activity service system for people with I/DD. The department’s initial investigation found that the majority of people receiving state- and city-funded employment and daytime services through segregated programs can and want to work and receive services in more integrated community settings. Under the ADA people with disabilities have the right to receive services in the most integrated settings appropriate for them.
This matter was initially brought to light by an investigation by the U.S. Department of Labor’s Wage & Hour Division, regarding improper subminimum wages being paid to people with disabilities working at TTP. This week, the Department of Labor revoked TTP’s certificate under the Fair Labor Standards Act Section 14(c).
The Department of Justice’s investigation has initially focused on a private provider, Training Thru Placement (TTP), as one of the largest facility-based employment service providers in the state’s system. The investigation also revealed that the school-based sheltered workshop at the Harold A. Birch Vocational Program at Mount Pleasant High School (Birch), was the point of origin for many people entering TTP. Since the department began its investigation earlier this year, the state and the city have worked cooperatively with the department to reach an agreement to resolve the violations.
The department found that the approximately 90 workers with disabilities at TTP were not in the most integrated setting appropriate for them and that the students in the sheltered workshop at Birch were at serious risk of unnecessary placement at TTP following their exit from school. TTP is located in a residential neighborhood, without easy access to stores, offices or public spaces. People with I/DD typically remain at TTP all day, packaging and labeling medical supplies, wrapping television remote controls in plastic or hand-sorting jewelry. The typical tenure at TTP is 15 to 30 years. TTP workers have little or no contact with persons without disabilities. According to TTP’s reports, TTP workers with disabilities make an average hourly wage of $1.57 per hour, with one individual making as little as 14¢ per hour.
The department found that people with disabilities at TTP are capable of working in real jobs with supports, and participating in activities in the community, such as volunteering, exercising, taking classes, going to museums, plays and sporting events. Many TTP clients had specifically and repeatedly asked for help to find and be supported in real jobs in the community. However, the state and city did not respond to their requests and did not make integrated employment services and community-based daytime activities available. For example, one person with I/DD, who has worked at TTP for approximately 30 years, said that he asked nearly every year to work in a hardware store, yet he was never assessed or received services or supports necessary for him to do so. When asked how he would feel about working in integrated employment, he said, “I’d feel I accomplished something . . . something to be happy about.”
The sheltered workshop at Birch was also found to discriminate against its approximately 85 students with I/DD because it cultivated, trained and prepared students to work at TTP as adults. The work that Birch’s students performed in the school’s sheltered workshop was similar to tasks performed by TTP’s service recipients. Students ages 14 to 21 with I/DD would participate in the Birch sheltered workshop for one or two 55-minute periods per day, sometimes to do work for TTP. At times when the Birch sheltered workshop faced deadlines, some students were removed from their regular classes and spent large portions of their school days in the workshop. Students were generally denied diplomas and received only “certificates of attendance.” Students at the Birch sheltered workshop were paid between 50¢ and $2 per hour, or were not paid at all, no matter what job function they performed or how productive they were.
The school provided virtually no opportunities for students to experience or prepare for real jobs and made direct referrals to adult sheltered workshops as the students neared the end of school. Because of the lack of integrated opportunities and direct referrals, invariably, the students would move on to an adult sheltered workshop, TTP, after they left school instead of to integrated work places.
“The Supreme Court made clear over a decade ago that unnecessary segregation of people with disabilities is discriminatory. Such segregation is impermissible in any state or local government program, whether it be residential services, employment services, or other programs,” said Eve Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. “Unfortunately, the type of segregation and exploitation we found at TTP and Birch is all too common when states allow low expectations to shape their disability programs. The reforms the state and city will undertake under this interim agreement will support people with disabilities to participate in their communities. Thanks to the vision and leadership of the State and the City, both the individuals and their communities will benefit.”
The state has now stopped providing services or funding for new participants at TTP’s sheltered workshop and facility-based day program, and the city has stopped providing services or funding to Birch’s in-school sheltered workshop. Over the next year, the state and city will provide supported employment services and placements to all adults at TTP and youth in transition from Birch to help them find, get, keep and succeed in real jobs. The services will be designed to help people access jobs in typical work settings where they can interact with non-disabled coworkers and customers, and enjoy the same employment benefits as non-disabled peers. When individuals are not working, they will have access to integrated day services.Under the agreement, individuals will receive supported employment and integrated day services sufficient to support a normative 40 hour work week, with the expectation that individuals will work, on average, in a supported employment job at competitive wages for at least 20 hours per week.
For students leaving Birch, the agreement requires a robust career development and transition planning process to ensure that youth can successfully move into community-based jobs, rather than to segregated settings like TTP. The department’s statewide investigation of the state’s day activity service system for people with I/DD will continue. The interim agreement is due to the efforts of the following Civil Rights Division staff: Regina Kline, Sheila Foran, Justin Park, Lance Simon and Chloe Holzman.Please visit www.ada.gov/olmstead to learn more about the Division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division.
Related Materials:
Agreement
ComplaintDepartment of Justice Reaches Landmark Settlement Agreement with Rhode Island and City of Providence Under the ADARead the Press Release
WASHINGTON – The Justice Department announced today that it has entered into an interim settlement agreement with the State of Rhode Island and the City of Providence that will resolve violations of the Americans with Disabilities Act (ADA) for approximately 200 Rhode Islanders with intellectual and developmental disabilities (I/DD).
This first-of-its-kind agreement addresses the rights of people with disabilities to receive state- and city-funded employment and daytime services in the broader community, rather than in segregated sheltered workshops and facility-based day programs exclusively with other people with disabilities. The department launched an ADA investigation in January 2013 into Rhode Island’s day activity service system for people with I/DD. The department’s initial investigation found that the majority of people receiving state- and city-funded employment and daytime services through segregated programs can and want to work and receive services in more integrated community settings. Under the ADA people with disabilities have the right to receive services in the most integrated settings appropriate for them.
This matter was initially brought to light by an investigation by the U.S. Department of Labor’s Wage & Hour Division, regarding improper subminimum wages being paid to people with disabilities working at TTP. This week, the Department of Labor revoked TTP’s certificate under the Fair Labor Standards Act Section 14(c).
The Department of Justice’s investigation has initially focused on a private provider, Training Thru Placement (TTP), as one of the largest facility-based employment service providers in the state’s system. The investigation also revealed that the school-based sheltered workshop at the Harold A. Birch Vocational Program at Mount Pleasant High School (Birch), was the point of origin for many people entering TTP. Since the department began its investigation earlier this year, the state and the city have worked cooperatively with the department to reach an agreement to resolve the violations.
The department found that the approximately 90 workers with disabilities at TTP were not in the most integrated setting appropriate for them and that the students in the sheltered workshop at Birch were at serious risk of unnecessary placement at TTP following their exit from school. TTP is located in a residential neighborhood, without easy access to stores, offices or public spaces. People with I/DD typically remain at TTP all day, packaging and labeling medical supplies, wrapping television remote controls in plastic or hand-sorting jewelry. The typical tenure at TTP is 15 to 30 years. TTP workers have little or no contact with persons without disabilities. According to TTP’s reports, TTP workers with disabilities make an average hourly wage of $1.57 per hour, with one individual making as little as 14¢ per hour.
The department found that people with disabilities at TTP are capable of working in real jobs with supports, and participating in activities in the community, such as volunteering, exercising, taking classes, going to museums, plays and sporting events. Many TTP clients had specifically and repeatedly asked for help to find and be supported in real jobs in the community. However, the state and city did not respond to their requests and did not make integrated employment services and community-based daytime activities available. For example, one person with I/DD, who has worked at TTP for approximately 30 years, said that he asked nearly every year to work in a hardware store, yet he was never assessed or received services or supports necessary for him to do so. When asked how he would feel about working in integrated employment, he said, “I’d feel I accomplished something . . . something to be happy about.”
The sheltered workshop at Birch was also found to discriminate against its approximately 85 students with I/DD because it cultivated, trained and prepared students to work at TTP as adults. The work that Birch’s students performed in the school’s sheltered workshop was similar to tasks performed by TTP’s service recipients. Students ages 14 to 21 with I/DD would participate in the Birch sheltered workshop for one or two 55-minute periods per day, sometimes to do work for TTP. At times when the Birch sheltered workshop faced deadlines, some students were removed from their regular classes and spent large portions of their school days in the workshop. Students were generally denied diplomas and received only “certificates of attendance.” Students at the Birch sheltered workshop were paid between 50¢ and $2 per hour, or were not paid at all, no matter what job function they performed or how productive they were.
The school provided virtually no opportunities for students to experience or prepare for real jobs and made direct referrals to adult sheltered workshops as the students neared the end of school. Because of the lack of integrated opportunities and direct referrals, invariably, the students would move on to an adult sheltered workshop, TTP, after they left school instead of to integrated work places.
“The Supreme Court made clear over a decade ago that unnecessary segregation of people with disabilities is discriminatory. Such segregation is impermissible in any state or local government program, whether it be residential services, employment services, or other programs,” said Eve Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. “Unfortunately, the type of segregation and exploitation we found at TTP and Birch is all too common when states allow low expectations to shape their disability programs. The reforms the state and city will undertake under this interim agreement will support people with disabilities to participate in their communities. Thanks to the vision and leadership of the State and the City, both the individuals and their communities will benefit.”
The state has now stopped providing services or funding for new participants at TTP’s sheltered workshop and facility-based day program, and the city has stopped providing services or funding to Birch’s in-school sheltered workshop. Over the next year, the state and city will provide supported employment services and placements to all adults at TTP and youth in transition from Birch to help them find, get, keep and succeed in real jobs. The services will be designed to help people access jobs in typical work settings where they can interact with non-disabled coworkers and customers, and enjoy the same employment benefits as non-disabled peers. When individuals are not working, they will have access to integrated day services.Under the agreement, individuals will receive supported employment and integrated day services sufficient to support a normative 40 hour work week, with the expectation that individuals will work, on average, in a supported employment job at competitive wages for at least 20 hours per week.
For students leaving Birch, the agreement requires a robust career development and transition planning process to ensure that youth can successfully move into community-based jobs, rather than to segregated settings like TTP. The department’s statewide investigation of the state’s day activity service system for people with I/DD will continue. The interim agreement is due to the efforts of the following Civil Rights Division staff: Regina Kline, Sheila Foran, Justin Park, Lance Simon and Chloe Holzman.Please visit www.ada.gov/olmstead to learn more about the Division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Delaware Resident Sentenced in Manhattan Federal Court to Six Years in Prison for Trafficking in Stolen Identification Information for over 100,000 Online AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JUSTIN MILLS was sentenced today in Manhattan federal court to six years in prison for trafficking in tens of thousands of access devices, including stolen credit card numbers and stolen login information for online accounts at Paypal and other financial websites. MILLS pled guilty on January 3, 2013, and was sentenced today by U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “With his sentence today, Justin Mills joins the growing ranks of cybercriminals to be punished for abusing the Internet to access and exploit people’s personal financial information. Together with our law enforcement partners, including the extraordinary efforts of the FBI, this Office continues its work to disrupt the networks that incubate the expanding cyber threat.”
According to the Information, the Complaint previously filed in the case, and statements made during today’s sentencing proceeding:
MILLS was arrested in June 2012 as part of “Operation Card Shop,” an international law enforcement operation in which 30 defendants were ultimately arrested in 13 countries for their involvement in various “carding” crimes – offenses in which the Internet is used to traffic in and exploit stolen credit card, bank account, and other personal identification information. As part of the investigation, from June 2010 to May 2012, the Federal Bureau of Investigation (“FBI”) operated an undercover carding forum (the “UC Site”), which, like other underground forums commonly used by carders, enabled its users to discuss various topics related to carding, and to buy, sell, and exchange goods and services related to carding, including stolen credit card data. The FBI established the UC Site in an effort to identify cybercriminals engaged in carding and to detect and investigate their crimes. The UC Site was configured to allow the FBI to monitor and to record the discussion threads posted to the site, as well as private messages sent through the site between registered users.
MILLS was a user of the UC Site who used malicious software to steal usernames and passwords from Internet users that could be used to access various types of online accounts, including financial accounts at banks and online payment services such as Paypal. MILLS trafficked in this stolen login information, advertising to others on the UC Site that he had login information for well over 100,000 online accounts for sale, including accounts at Amazon, Facebook, Ebay, and other popular websites. A search of MILLS’ computer following his arrest recovered login information for 15,000 Paypal accounts alone, along with login information for tens of thousands of online accounts associated with other online services. MILLS also trafficked in stolen credit card data. In addition to trafficking in stolen login information and credit card accounts, MILLS himself used the access devices he stole to effect fraudulent purchases of gift cards and goods on the Internet, which he sold to others.
In addition to the prison term, Judge Castel sentenced MILLS, 20, of Smyrna, Delaware, to three years of supervised release. MILLS was also ordered to pay restitution and forfeiture of $50,000.
In sentencing Mills, Judge Castel said, “This man was running a business, and a business that was spreading misery and had the potential of further spreading misery to people throughout the country. Think of the disruption to the individuals, think of the losses to those who have to make good on credit card transactions, or online transactions, or frauds. There was a ripple effect that flowed from it.”
Judge Castel added, “There is also a need to deter others from crimes of this nature. This is an offense which is very difficult to detect, very difficult to find people who perpetrate it, and when they are unmasked, it is important that the word go forth that the punishments are severe.”
Mr. Bharara praised the investigative work of the FBI’s Cyber Crime Task Force.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Serrin Turner is in charge of the prosecution.
Convicted Child Sex Offender Sentenced to More Than 21 Years in Prison for Receipt of Child PornographyRead the Press Release
Orlando - U.S. District Judge Anne C. Conway today sentenced Michael F. Callahan (63, Palm Bay) to 21 years and eight months in federal prison for receipt of child pornography. The court also ordered him to forfeit the computer he used to commit the offense. As part of Callahan's sentence, he was ordered to serve a life term of supervised release and to register as a sex offender, following his release from prison. Callahan pleaded guilty on January 24, 2013.
According to court documents, on June 22, 2012, Callahan was convicted of illegal sexual contact with a minor and possession of child pornography in Connecticut Superior Court. Callahan returned to Florida to his Palm Bay home pending his sentencing hearing. Two weeks later, a Federal Bureau of Investigation task force agent downloaded several videos of child pornography from Callahan, that Callahan had made available on a file sharing network. On August 2, 2012, federal agents executed a search warrant at Callahan's home and seized his computer. Callahan admitted that he continued to download and possess child pornography after his Connecticut conviction. A forensic examination of Callahan’s computer revealed 736 movies and 12 pictures showing the sexual abuse of prepubescent girls.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Colorado Man Sentenced for Identity Fraud, Passport Fraud, Possession of Stolen Goods, and Possession of A Firearm by A Convicted FelonRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced thatWilliam Lyman Agnew, 55, of Cripple Creek, Colo., was sentenced Tuesday by U.S. District Court Judge Tom Stagg, to 51 months in prison with three years supervised release for identity fraud, passport fraud, possession of stolen goods, and possession of a firearm by a convicted felon.
According to evidence presented in court hearings, Agnew fled Cripple Creek, Colo., after stealing property and possessions from a residence there in October 2010. Agnew came to Louisiana in January 2011. While in Louisiana, he obtained and used four false identities and obtained driver’s licenses, Social Security cards, birth certificates, and other forms of identification. He also attempted to obtain a U.S. Passport using one of his false identities. The FBI in Monroe, La., discovered Agnew was living and working in Monroe at a local business and arrested Agnew on April 3, 2012. After Agnew’s arrest, many of the items stolen in Colorado were found and seized by federal agents at a storage unit in Monroe that Agnew had rented under one of his false names.The Cripple Creek, Colo., Police Department; the ATF in Colorado and Louisiana; the FBI, the Social Security Administration-Office of the Inspector General; and the U.S. Department of State-Diplomatic Security Service investigated the case. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Coldspring Man Federally Indicted in Death of U.S. Postal Service WorkerRead the Press Release
HOUSTON – A grand jury sitting in Houston has returned a two-count indictment against James Wayne Ham, 36, of Coldspring, in the recent murder of a mail carrier with the United States Postal Service (USPS), United States Attorney Kenneth Magidson announced today along with Inspector in Charge Robert Wemyss, United States Postal Inspection Service (USPIS) and San Jacinto County District Attorney Richard Countiss.
Ham is charged with one count of murder and one count of using a firearm in the commission of a crime of violence. The indictment alleges that on or about May 17, 2013, Ham committed premeditated murder of a USPS employee while she was engaged in the performance of her official duties and that he intentionally carried, brandished and discharged a firearm in the commission of that murder.
A criminal complaint was filed Monday, May 20, 2013, the day after his arrest. He made an initial appearance the following day, at which time he was ordered held without bond pending further criminal proceedings. He is expected to make an initial appearance on the indictment in the near future.
The investigation began shortly following the receipt of a 911 call from the son of the now deceased USPS worker on Friday, May 17. He indicated he had been speaking with his mother via cell phone and heard two loud noises. His mother allegedly told him she had been shot. Shortly thereafter, the phone was disconnected, according to the complaint.
The complaint alleges the victim was shot on Friday shortly after delivering mail at Ham’s residence. The victim was on her normal rural delivery route in her personal vehicle. Ham allegedly shot her multiple times at close range with a .30/30 caliber rifle.
Ham then allegedly drove the vehicle to a nearby secluded area and set it on fire.
According to the complaint, the victim’s body was discovered Friday in her burning vehicle in San Jacinto County. Firefighters extinguished the flames and found the woman inside.
The investigation eventually led to Ham after it was discovered he had allegedly complained previously about not getting his mail delivered properly, according to the complaint.
Ham was located after an extensive manhunt and arrested without incident Sunday, May 20, 2013, near his home in San Jacinto County.
If convicted, he could potentially face the death penalty.
A variety of local, state and federal law enforcement agencies have been and will continue to work together in furtherance of the investigation and prosecution of this matter to ensure the proper administration of justice.
The case is being investigated by the USPIS, San Jacinto County Sheriff’s Office, Texas Rangers, San Jacinto Constable Precinct 4, Texas Department of Criminal Justice, Montgomery County Sheriff’s Department, Texas Parks and Wildlife, San Jacinto County Fire Marshall and the San Jacinto County District Attorney’s Office. Also providing assistance was the Bureau of Alcohol, Tobacco, Firearms and Explosives and the volunteer fire departments in Point Blank and Cape Royale. Assistant United States Attorneys Casey MacDonald, Suzanne Elmilady and Joe Magliolo are prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
Clifton, N.J.-based CPA and Client Arrested, Charged for Attempted Bribes of IRS Revenue AgentRead the Press Release
NEWARK, N.J. – A Certified Public Accountant with an office in Clifton, N.J., and one of his clients were arrested this morning by federal agents for allegedly trying to bribe an IRS revenue agent to reduce the client’s tax liability of more than $900,000, U.S. Attorney Paul J. Fishman announced.
Hamed Aref, 41, of Clifton, N.J., and his client Yousef Zaben, 62, of North Bergen, N.J., are each charged in a criminal complaint with one count of conspiracy to bribe a public official and two counts of bribery of a public official. Both men are variously charged for alleged bribes related to Zaben’s tax liability. One of the bribery charges against Aref also alleges he attempted to pay an IRS revenue agent to reduce the tax liability of another client, Zaben’s son.
The men were arrested this morning at their homes by special agents of the Department of the Treasury’s Office of Inspector General for Tax Administration (TIGTA) and are expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case:
An IRS revenue agent working in the Mountainside, N.J., IRS office – referred to in the complaint as “R.A.” – was assigned to conduct an audit in February 2012 of Zaben’s son, a client of Aref’s. During a meeting with Aref that month, R.A. told him that approximately $90,000 in bank discrepancies for the 2010 tax year would require additional tax payments.
Aref ran his own accounting and tax preparation firm. In a conversation begun in Aref’s office and continued outside the building, per the CPA’s request, Aref asked R.A. to reduce the tax liability by $20,000, offering approximately $2,000 to the agent in exchange. R.A. pretended he would think about the offer and set a date for another meeting with Aref, then immediately reported the bribe attempt to law enforcement officers from TIGTA.
When Aref and R.A. met again in March 2012, R.A. was outfitted with video and audio recording equipment provided by law enforcement. At that meeting, Aref asked for documentation reflecting a reduction in his client’s income of more than $32,000 for tax years 2009 and 2010, and R.A. produced a false audit report reflecting the requested numbers. Aref then asked R.A. to leave the office and placed an envelope with $3,000 cash on R.A.’s chair. When R.A. returned, Aref told the agent the money was from Zaben, and stood guard while R.A. counted the cash out on the desk.
A subsequent IRS audit of Zaben revealed a number of large, unexplained bank deposits in 2009 and 2010, totaling more than $1.6 million, on which Zaben owed the IRS approximately $904,367. During meetings in February and March 2013, Aref and R.A. met at the Clifton office to discuss the liability. Aref provided false figures to R.A. that showed a total tax liability of approximately $1,137.94 for those years, and suggested a meeting between Zaben and R.A.
At that meeting, in April 2013, R.A. showed Zaben both the correct and falsified audit reports, and Zaben paid R.A. the falsely reduced amount of $1,137.94. Zaben then produced $10,000 in cash, which both defendants said was for R.A. Zaben also said he would pay R.A. an additional $5,000, some of which he gave to R.A. at a later meeting.
Each of the meetings in which bribes were paid was recorded by law enforcement.
The conspiracy count carries a maximum potential penalty of five years in prison, and the bribery counts each carry a maximum potential penalty of 15 years in prison. Each of the counts also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of TIGTA, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Aref, Hamed et al. Complaint
Cleveland Man Guilty of Trying to Destroy A Bridge with ExplosivesRead the Press Release
A Cleveland man was found guilty of trying to use explosives to destroy a bridge in Northeast Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation.
Joshua Stafford, 24, was found guilty of conspiracy to use weapons of mass destruction, attempted use of weapons of mass destruction and malicious use of an explosive device to destroy property used in interstate commerce following a three-day trial before U.S. District Judge David Dowd. Stafford is scheduled to be sentenced on Sept. 11 at noon.
“We all need to thank the FBI and its law enforcement partners,” Dettelbach said. “The evidence in this trial made clear that their actions saved innocent lives. By being diligent, smart and responsible, law enforcement agents were able to not only literally defuse a dangerous situation, but they also were able to catch a dangerous group of violent men before they were able to harm anyone else.”
“This defendant took it upon himself to operate the cell phone he believed to be the device that would detonate two IED devices and cause potentially significant damage to the Route 82 Brecksville-Northfield High Level Bridge,” Anthony said. “This defendant’s callous disregard for our community, all in the name of making his own ideological views known, reinforces the need for law enforcement to work diligently to confront and stop terrorists from committing violent acts against our fellow citizens.”
Stafford is the last of five men to be found guilty for their roles in a conspiracy to destroy the Route 82 Brecksville-Northfield High Level Bridge. Cars travel over the bridge, which crosses from Brecksville, Ohio to Sagamore Hills, Ohio over the Cuyahoga Valley National Park.
Douglas L. Wright, of Indianapolis, was sentenced to 11 ½ years in prison followed by a lifetime of supervised release.Brandon L. Baxter, of Lakewood, Ohio, was sentenced to nine years and nine months in prison followed by a lifetime of supervised release.
Connor C. Stevens, of Berea, Ohio, was sentenced to eight years and one month in prison followed by a lifetime of supervised release.
Anthony M. Hayne, 35, of Cleveland, was sentenced to six years in prison followed by a lifetime of supervised release.
Those four men pleaded guilty last year to conspiracy to use weapons of mass destruction, attempted use of weapons of mass destruction and malicious use of an explosive device to destroy property used in interstate commerce.
Hayne, Wright, Baxter, Stevens and Stafford were arrested on April 30.
According to court documents, Wright, Baxter, Hayne, Stevens and Stafford were self-proclaimed anarchists who formed into a small group and considered a series of evolving plots over several months.
The initial plot involved the use of smoke grenades to distract law enforcement in order for the co-conspirators to topple financial institution signs atop high rise buildings in downtown Cleveland, according to the complaint.
The plot later developed to the utilization of explosive materials. The defendants conspired to obtain C-4 explosives contained in two improvised explosive devices to be placed and remotely detonated, according to the complaint.
The defendants discussed various bridges and physical targets in and around the Cleveland, Ohio metropolitan area over the course of several months. The final plan resulted in the Route 82 Brecksville-Northfield High Level Bridge being the designated target.
The public was never in danger from the explosive devices, which were controlled by an undercover FBI employee. The defendants were closely monitored by law enforcement. The explosives that the defendants allegedly purchased and attempted to use were inoperable and posed no threat to the public.
This case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown, Justin E. Herdman and Thomas E. Getz following an investigation by the FBI and the FBI’s Joint Terrorism Task Force.
Agencies represented on the FBI’s Joint Terrorism Task Force include: Cuyahoga County Sheriff’s Office, Federal Air Marshal Service, Cleveland Police Department, Cleveland Heights Police Department, U.S. Secret Service, U.S. Coast Guard Investigative Service, Ohio Bureau of Criminal Investigation and Intelligence, Westlake Police Department, U.S. Diplomatic Security Service, Immigration and Customs Enforcement, Customs and Border Protection, RTA Police, Ohio State Highway Patrol, Transportation Security Administration, Alcohol, Tobacco and Firearms, Shaker Heights Police Department, North Olmstead Police Department, US Postal Inspectors, and the Defense Criminal Investigative Service. Assistance in this case was also provided by the U.S. National Park Service Park Rangers, Sagamore Hills Police Department and Brecksville Police Department, and the Summit County Sheriff’s Office.
Citizen of Brazil Who Twice Reentered U.S. After Deportation Sentenced to 15 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHRISTIANO HENRIQUE De PAULA, also known as “Christiano DePaula,” “Christian DePaula,” and “Christiano Decamargo,” 27, a citizen of Brazil, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 15 months of imprisonment for illegally reentering the U.S. after he was deported.
According to court documents and statements made in court, De PAULA was deported from the U.S. to his native Brazil in May 2008 after his conviction in New Jersey for aggravated assault with a weapon. He illegally returned to the U.S. and, on August 25, 2008, pleaded guilty in U.S. District Court in the Southern District of Texas to illegal entry of a removed alien. De PAULA was sentenced to 20 days of imprisonment and, in October 2008, was deported to Brazil.
On June 27, 2012, De PAULA was arrested by Bridgeport Police after he was involved in an altercation with another individual at a local restaurant. De PAULA had been using the name “Christiano Decamargo.”
De PAULA has been detained since his arrest. On March 6, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Bridgeport Police Department. The case was prosecuted by Assistant United States Attorney Hal Chen.
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[email protected]Church Rock, N.M., Man Sentenced to 162 Months in Federal Prison for Second Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Danny Dan Don Brown, 25, a member of the Navajo Nation who resides in Church Rock, N.M., was sentenced this afternoon to 162 months in federal prison followed by two years of supervised release for his second degree murder conviction. He also was ordered to pay restitution in the amount of $1200 to cover the cost of the victim’s funeral and related expenses.
Brown and his co-defendant, Melvyn Lee Morgan, 29, a member of the Navajo Nation who resides in Gallup, N.M., were arrested on Dec. 27, 2011, based on a criminal complaint charging them with the Dec. 3, 2011 murder of Robert L. Smith, also a member of the Navajo Nation. According to the criminal complaint filed in the case, the murder was committed in Church Rock, which is within the Navajo Indian Reservation. Brown and Morgan, who have been in federal custody since their arrests, were indicted on Jan. 24, 2012, and charged with second degree murder.
According to court records, late on the night of Dec. 3, 2011, Brown, Morgan and the victim were involved in a fight after drinking alcohol. During the fight, Brown and Morgan repeatedly kicked and punched the victim, who died as a result of injuries he sustained. Brown entered a guilty plea to the indictment in March 2013.
Morgan has entered a not guilty plea to the indictment and is scheduled for trial on July 8, 2013. The charges in the indictment as to Morgan are only accusations and he is presumed innocent unless proven guilty.
This case was investigated by the Gallup office of the FBI and the Crownpoint Office of the Navajo Nation Division of Public Safety with assistance from the McKinley County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
California Woman Charged with Aiding and Assisting the Preparation of False Tax Returns and Identity FraudRead the Press Release
Lanisha D. Applewhite of Richmond, Calif., was indicted by a federal grand jury in San Francisco, for aiding and assisting the preparation and presentation of false and fraudulent federal income tax returns as well as identity fraud, the Justice Department and Internal Revenue Service (IRS) announced today.
According to the indictment, from 2008 through 2011, Applewhite, a return preparer, aided and assisted in the preparation and presentation of false and fraudulent federal income tax returns containing claims for deductions and credits to which her clients were not entitled. In addition, six counts allege that Applewhite used individuals’ Social Security numbers without lawful authority in preparing false federal income tax returns.
The maximum penalty for aiding and assisting the preparation of false claims is three years in prison and a fine of $250,000 for each count of conviction. The maximum penalty for each count of identity fraud is 15 years in prison and a fine of $250,000.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty.
This case is being investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles O’Reilly, Erin Mellen and Sonia Owens of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Buffalo man pleads guilty to illegal selling identification documentsRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jorge Garcia, 37, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession with intent to use or transfer unlawfully five or more identification documents. The charge carries a maximum penalty of 15 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Garcia sold nine sets of identification documents in exchange for $6,300 in cash. The documents consisted of Puerto Rican birth certificates, New York state birth certificates, Michigan state birth certificates and U.S. Social Security Cards. The defendant was led to believe that the nine sets of authentic identification documents would be used to allow illegal immigrants to remain and work in the United States unlawfully.
Sentencing is scheduled for September 19, at 1:00 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-In-Charge James C. Spero.Buffalo Man Arrested on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Keith Goss, 44, of Buffalo, N.Y., was arrested and charged by criminal complaint with conspiracy and possession with intent to distribute 100 kilograms or more of marijuana. The charges carry a minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that according to the complaint, on June 12, 2013, the defendant attempted to take possession of a crate which was to be delivered to an address on Fillmore Avenue in Buffalo after being shipped from Tucson, Arizona. The crate contained 315 pounds of marijuana valued in excess of $250,000. The complaint further states that law enforcement officers intercepted the crate of marijuana before it was delivered to the Fillmore Avenue address where the defendant was awaiting its arrival.
Goss made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy. The defendant is being held pending a detention hearing on June 19, 2013 at 2:00 p.m.The criminal complaint is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division and the Tonawanda Police Department, under the direction of Anthony Palombo, with the assistance of the DEA Office in Nogales, Arizona.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Benjamin Bennett Pleads Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
BENJAMIN BENNETT, age 23, a resident of New Orleans, Louisiana, pled guilty in federal court today before U. S. District Judge Nannette Jolivette Brown to one count of conspiracy to commit mail fraud relating to a fraudulent application he made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill, announced U. S. Attorney Dana J. Boente.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. On October 12, 2010, BENNETT applied for disaster assistance funds, representing that he was operating a commercial fishing business before the oil spill. However, BENNETT had never worked as a commercial fisherman and he submitted or caused to be submitted false documentation to establish his false earnings. Based on BENNETT’S fraudulent application, BENNETT received approximately $43,400 to which he was not entitled.
BENNETT faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. Sentencing is set for October 3, 2013.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The case was investigated by the U.S. Postal Inspection Service and the U. S. Secret Service, and prosecuted by Assistant U. S. Attorney Julia K. Evans.
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Beclabito, N.M., Woman Pleads Guilty to Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – Krisohn Adakai, 21, an enrolled member of the Navajo Nation who resides in Beclabito, N.M., pleaded guilty this morning to a second degree murder charge under an agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Adakai will be sentenced to 11 years in federal prison followed by a term of supervised release to be determined by the court.
Adakai was arrested in July 2012, and charged by criminal complaint with the murder of Crystal Tom, a 26 year-old Navajo woman. According to the criminal complaint, the murder occurred on July 28, 2012, at Adakai’s home in Beclabito, which is located on the Navajo Reservation. Adakai and the victim got into a fight while drinking alcohol together. During the fight, Adakai repeatedly punched and stabbed the victim, who died as a result of the injuries she sustained. Adakai then fell asleep and awoke to find the victim’s unresponsive body. Adakai attempted to conceal her crime by disposing of the body, the alcohol bottles and other evidence of the murder in a remote area on the Navajo Indian Reservation. When confronted by law enforcement authorities on July 30, 2012, Adakai admitted committing the murder and led officers to the victim’s body and other evidence.
During today’s plea hearing, Adakai admitted that the United States would be able to prove beyond a reasonable doubt that she murdered a Navajo woman on July 28, 2013, in San Juan County, within the Navajo Indian Reservation.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Baldwinsville Man Enters Guilty Plea to False Tax ReturnRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that CHRISTOPHER BEVANS, (38 of Baldwinsville, NY) entered a guilty plea to the felony offense of subscribing a false income tax return, in violation of Title 26, United States Code, Section 7206(1). The defendant is facing a statutory maximum sentence of 3 years imprisonment, a maximum fine of $250,000.00 and restitution to the IRS in the amount of $75,725. BEVANS is scheduled to be sentenced on October 9, 2013, before the Honorable Mae D’Agostino, in Albany, New York.
During the plea hearing on June 13, 2013, BEVANS admitted that in 2007 and 2008 he was an employee of Velocitel, Inc., a telecommunications company, and during that employment he earned additional income from another Velocitel employee and Velocitel subcontractor. This income was in addition to the wages disclosed on his W-2 forms. The additional income paid to CHRISTOPHER BEVANS for 2007 was $59,600, and for 2008 was $162,550, for a total of $222,150. BEVANS failed to include the $59,600 as income on his 2007 personal federal tax return and $162,550 as income on his 2008 personal federal tax return. Each of these returns were made and signed by him under penalty of perjury. BEVANS knew these tax returns were false because each substantially under reported his income and tax liability for that year. The foregoing resulted in a tax deficiency to the IRS totaling $75,725.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation, Syracuse, N.Y. The case was prosecuted by Assistant United States Attorney Tamara B. Thomson. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Amarillo Man Sentenced to A Total of 35 Years in Federal Prison for Committing Armed Bank Robbery and Other Firearms OffensesRead the Press Release
AMARILLO, Texas — Donald Joseph West, 49, of Amarillo, Texas, an armed career criminal, was sentenced today by U.S. District Judge Mary Lou Robinson to a total of 35 years in federal prison following his conviction at trial in March 2013 on all counts of a superseding indictment charging felony offenses in connection with the November 5, 2012, armed robbery of FirstBank Southwest in Amarillo. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. Attorney Saldaña said, “In short, Donald West, a violent career criminal, presented a clear danger to the Amarillo community and, in particular, to the brave and dedicated law enforcement officers who serve it. Because of their extraordinary work on this case, all can rest easier tonight knowing that he will spend the next 35 years in prison.”
Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division, said, “Combined efforts of the public’s assistance and a joint investigation by the Amarillo Police Department, Potter and Randall County Sheriff’s Offices and the FBI led to Donald West’s successful conviction and subsequent sentencing that reflects law enforcement’s commitment to protecting communities from dangerous career criminals.”
Donald West was convicted on one count of aggravated bank robbery, one count of being a felon in possession of a firearm and one count of using a firearm during and in relation to a crime of violence (the bank robbery). During the same trial, his nephew, David West, 43, who remains on bond, was convicted on one count of the unlawful sale and disposition of a firearm. His sentencing is set for June 26, 2013.
The government presented evidence at trial that on Monday, November 5, 2012, Donald West, wearing a mask, entered the FirstBank Southwest, located at 5701 Southwest 34th Street, in Amarillo, pointed a gun at a teller and demanded cash. The teller placed money in a bag and Donald West left the bank. He was arrested the next evening by officers with the Amarillo Police Department and special agents with the FBI and has been in custody since that time.
The government presented further evidence that during the robbery, Donald West used a semiautomatic pistol. When he was arrested, a firearm, that was given to him by David West shortly before the robbery, was recovered. Donald West is a convicted felon, having been convicted 1) in Randall County, Texas, of committing aggravated robbery with a deadly weapon in 1988; 2) in U.S. District Court for the Northern District of Texas, with conspiracy to commit bank robbery and bank robbery in 1987; and 3) in Randall County for evading detention in 2011. The government presented further evidence that David West knowingly gave the 9mm caliber pistol to his uncle, well knowing that he was a convicted felon.
The investigation was conducted by the FBI, the Amarillo Police Department and the Potter and Randall County Sheriff’s Offices. Assistant U.S. Attorneys Jeff Haag, Justin Cunningham and Christy Drake prosecuted.
Allen County, Kentucky, Residents Charged with Conspiring to Sell Hydrocodone Stolen from A Scottsville, Kentucky, PharmacyRead the Press Release
– Former pharmacy employee charged in the conspiracy
BOWLING GREEN, Ky. – Allen County residents were charged this week, by a federal grand jury in Bowling Green, Kentucky, with a conspiracy to distribute the pain killer, Hydrocodone, that was stolen from a pharmacy by a former employee, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the seven count federal indictment, beginning in May 2012, and continuing to October 2012, in Allen County, Kentucky, Lynn Harper Denton, age 46, a former employee of Stovall’s Prescription Shop, and Katherine Virginia Rookstool, age 34, conspired to sell over $5,000 of stolen Hydrocodone that had not been made available to consumers for retail purchase. This is a violation of 18 USC § 670 (theft of medical products) and is the first such prosecution in the Western District of Kentucky.
Further, Denton, Rookstool, and Jeffrey Clay Stinson, age 47, were charged with conspiracy to possess with intent to distribute Hydrocodone. Additionally, Stinson faces four charges of knowingly possessing and distributing hydrocodone.
If convicted at trial, Denton could be sentenced to no more than 30 years in prison, a $750,000 fine, and a period of five years of supervised release. Defendant Rookstool could be sentenced to no more than 25 years in prison, a $750,000 fine, and a period of five years of supervised release. Defendant Stinson could be sentenced to 60 years in prison, a $3,000,000 fine and a period of no less than four years of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the U.S. Food and Drug Administration's Office of Criminal Investigations, Owensboro domicile, the Allen County Sheriff’s Department, and the Scottsville, Kentucky Police Department.
Additional Charges against Springfield, Kirbyville Men Indicted for K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man and two Kirbyville, Mo., men have been indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Travis E. Butchee, also known as “Donkey,” 37, of Springfield, and Michael J. Saguto, 42, and Christian L. Turner, 45, both of Kirbyville, were charged in a six-count indictment returned by a federal grand jury in Springfield on Wednesday, June 12, 2013. The indictment replaces a federal criminal complaint that was filed against Butchee and Saguto on May 17, 2013, adding Turner as a co-defendant and additional charges.
Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
The federal indictment alleges that Butchee, Saguto and Turner participated in a mail fraud conspiracy from March 1, 2011 to May 16, 2013. They allegedly devised a scheme to defraud the Food and Drug Administration and to defraud the public in order to profit from false claims that synthetic marijuana products (such as Blazed, Red Eyed, Donkey Punch, Jolly Grape Giant, South of the Tracks, Baby Face, Scarface, Hillbilly Hay and others) – which were mailed or delivered by commercial carriers – were “incense” or “potpourri” and “not for human consumption.” In reality, the indictment says, these substances were synthetic cannabinoids that contained controlled substances and were intended for human consumption as a drug.
The indictment also alleges that Butchee, Saguto and Turner participated in a conspiracy to distribute a controlled substance. They allegedly manufactured and distributed synthetic cannabinoids using ingredients obtained through the mail from China and Thailand.
Butchee and Saguto are also charged with three counts of maintaining a place for the purpose of unlawfully storing and distributing a controlled substance. They allegedly used residences in Kirbyville, Merriam Woods, Mo., and Springfield to store and distribute synthetic marijuana.
Turner is also charged with being a felon in possession of firearms. Turner, having been convicted of a felony, allegedly possessed a Ruger .22-caliber rifle, a Marlin 30-30 caliber rifle, a Rossi .243-caliber rifle with an interchangeable 20-gauge barrel, a Remington 12-gauge shotgun and a Remington .270-caliber rifle.
The indictment also contains a forfeiture allegation, which would require Butchee, Saguto and Turner to forfeit to the government any property obtained from the proceeds of the alleged mail fraud and drug-trafficking conspiracies, including a money judgment of $280,490 as well as $31,580 that was seized by law enforcement officers, a Hummer H2 and several firearms.
According to an affidavit filed in support of the original criminal complaint, Southern Spice manufactured synthetic cannabinoids under various labels, which was distributed to several businesses for resale. Search warrants were executed from January to December 2012 at several businesses – including Doobies (at two Springfield locations), Zak’s Place in Springfield, Beer and Bottle liquor store in Hollister, Mo., and Big E’s in Lebanon, Mo. – at which law enforcement officers seized hundreds of packages of K2 manufactured by Southern Spice, which were being sold by the businesses.
According to the affidavit, a total of $169,859 in checks from various head shops, tattoo parlors and other businesses were deposited into the Southern Spice bank account between April 10 and Nov. 20, 2012. Money was wired by Southern Spice to accounts in Hong Kong and China. An analysis of transactions from this bank account, the affidavit says, also showed purchases of other herbal products that are typically used as the plant ingredient in K2.
The affidavit cites four undercover purchases of K2 from The Man Cave by law enforcement officers in April and May 2013.
On May 16, 2013 law enforcement officers executed search warrants at the residences of Saguto and Butchee, as well as at a Merriam Woods residence owned by Butchee. At Saguto’s residence, officers seized the components of a synthetic cannabinoid manufacturing laboratory and a significant amount of cash contained in an ammo box. At the Merriam Woods residence, officers seized three five-gallon buckets containing a plant substance identified as synthetic cannabinoids as well as packages filled with a substance believed to be synthetic cannabinoids, which were labeled Hillbilly Hay.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.Abilene Resident Sentenced to Nearly Four Years in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
ABILENE, Texas — Robert Jade Lopez-Parker, 40, most recently a resident of Abilene, Texas, was sentenced Wednesday by U.S. District Judge Jorge A. Solis to 46 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A federal jury in Abilene convicted Lopez-Parker in January 2013 on a one-count indictment charging that he failed to register as a sex offender.
The U.S. Marshals Service received information that Lopez-Parker, a sex offender from Washington and Oregon, was living in Abilene. He was arrested on July 6, 2012, on a warrant out of Scurry County, Texas, and has been in custody since that time.
According to evidence presented at trial, Lopez-Parker lived in the Abilene area at least three months prior to his arrest, and he never registered in Texas as a sex offender, as required by the Sex Offender Registration and Notification Act. He was required to register as a sex offender because he had been convicted of a sex offense, Child Molestation in the Third Degree in Clark County Washington, for which he was sentenced on January 8, 2002. He last registered in Oregon on January 30, 2012.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the U.S. Marshals Service, the Texas Department of Public Safety, the Abilene Police Department, the Taylor County Sheriff’s Office, the Callahan County Sheriff’s Office, and the Oregon State Police. Assistant U.S. Attorney Steven M. Sucsy and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
10th Street Gang Member Sentenced for RICO ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Hector Rodriguez, 25, of Buffalo, N.Y., who was convicted of Racketeering Influenced Corrupt Organizations (RICO) Conspiracy, was sentenced to 86 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that the defendant was a member of the 10th Street Gang who was involved in drug dealing and firearms possession as a part of his participation in the gang. On May 22, 2006, Rodriguez learned that rival drug dealers were making what he believed to be a substantial amount of money selling crack cocaine in the turf controlled by the 10th Street Gang. The defendant dressed in old and dirty clothes and, pretending to be a crack cocaine user, purchased crack cocaine from the rival drug dealers who were selling in the 10th Street Gang's turf. Following the purchase, Rodriguez returned to a 10th Street Gang drug house and told fellow gang members, adding that he did not see any guns in the possession of the rival drug dealers. Armed 10th Street gang members then went to the location and shot the rival drug dealers using an AK-47 in an effort to force the rival drug dealers out of the neighborhood.
In 2010, the defendant was indicted along with 34 other 10th Street Gang members or associates. Eighteen defendants have been convicted to date.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, along with the New York State Police, under the direction of Acting Major Craig Hainsworth, the Buffalo Police Department, under Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under Agent Frank J. Christiano, Resident Agent in Charge.
Wednesday 12 June 2013
Wood County Woman Sentenced for Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A37-year-old Mineola, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Denise Marie Meeks pleaded guilty on Feb. 6, 2013, to possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime and was sentenced to 144 months in federal prison today by U.S. District Judge Michael H. Schneider. The court also imposed a $2,000 forfeiture judgment against Meeks.
According to information presented in court, up until July 19, 2012, Meeks possessed and distributed more than 20 grams of methamphetamine in East Texas. Meeks also admitted that she carried a firearm during, and in relation to, her drug trafficking activities. A federal grand jury returned an indictment on Dec. 6, 2012, charging Meeks with federal violations.
This case was investigated by the Drug Enforcement Administration and the Canton Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Wilmington Man Sentenced for Armed Robbery – Victor McClainRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court yesterday VICTOR MCCLAIN, 61, was sentenced by Chief United States District Chief Judge James C. Dever to 235 months imprisonment, 5 years supervised release, and was ordered to pay a $200.00 special assessment. MCCLAIN was sentenced pursuant to the Armed Career Criminal Act.
On January 9, 2013, MCCLAIN pled guilty to Robbery of a Business Engaged in Interstate Commerce and Possession of a Firearm by a Felon for an offense that occurred on December 7, 2011.
On December 7, 2011, MCCLAIN and his co-defendant, Aaron Monroe robbed the Game Giant in Wilmington, North Carolina. After pretending to shop for various items, the men brandished firearms and stole money from the store and three individuals present in the store. After stealing the money, MCCLAIN and his co-defendant barricaded the three victims into the bathroom to facilitate their escape. One of the men managed to free himself from the bathroom and ran out of the store where an officer with the Wilmington Police Department was nearby. The victim yelled to the officer that a robbery had taken place and pointed out the defendants who were leaving in a car.
Officers with the Wilmington Police Department attempted to stop the vehicle in which the defendants were traveling, however, the defendants refused to stop. During the chase, MCCLAIN threw the handguns used in the course of the robbery out of the window. When the defendants came to a stop, MCCLAIN attempted to flee the area on foot, however, he was apprehended very quickly.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Wetzel County Heroin Suppliers IndictedRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Pipeline from Pittsburgh Disrupted by Federal Indictment
WHEELING, WV – A Pittsburgh man who was supplying large amounts of heroin to Wetzel County has been indicted by a federal grand jury, according to United States Attorney William Ihlenfeld, II.
Damon Rashad Reese, also known as “Mac”, age 25, of Pittsburgh, Pennsylvania, has been charged with “Conspiracy to Distribute More than 100 Grams of Heroin” between January and May of 2013. Reese is also charged with two counts of “Use of a Telephone to Facilitate the Distribution of Heroin.”
In addition to Reese, two others were indicted as part of the same investigation. Kimberly Lynn Nelson, age 30, and Matthew Scott Hedrick, age 32, both of New Martinsville, also face the felony charge of “Conspiracy to Distribute More than 100 Grams of Heroin”, along with a separate count of “Aiding & Abetting the Possession with Intent to Distribute Heroin.”
It is alleged that Nelson and Hedrick traveled regularly to Pittsburgh to acquire heroin from
Reese and then returned to Wetzel County to redistribute the drug.Each of the defendants face a sentence of 5 to 40 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of each defendant.
The case will be prosecuted by Assistant United States Attorney Randolph J. Bernard and was investigated by the West Virginia State Police - Bureau of Criminal Investigations.
Reese, Nelson, and Hedrick are presumed innocent until and unless proven guilty.
Wayne County Man Pleads Guilty to Selling Counterfeit Merchandise OnlineRead the Press Release
BUFFALO, N.Y.- U.S. Attorney William J. Hochul, Jr. announced today that Ryan Breen, 33, of Savannah, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara to trafficking in counterfeit goods involving the sale of unauthorized merchandise from the popular FX Network Television series "Sons of Anarchy." The charge carries a maximum penalty of 10 years in prison and a $2,000,000 fine.
According to Special Assistant U.S. Attorney Fauzia K Mattingly, who is handling the case, Breen was identified as the owner and operator of various websites which offered for sale over the Internet counterfeit t-shirts and goods using the Sons of Anarchy trademark without the permission of the Twentieth Century Fox Entertainment Group, the producer and exclusive owner of the Sons of Anarchy TV series. The defendant's websites were seized by federal agents as part of a nationwide crackdown aimed at combating intellectual property theft. Through his websites, Breen had sold over $75,000 worth of customized Sons of Anarchy clothes, hats, and other items that infringed the trademark of Fox.
Sentencing is scheduled for September 27, 2013 at 1:00 p.m. before Judge Arcara.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.Washington State Man Sentenced to 24 Months in Prison for Attempting to Send Obscene Images to A MinorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Michael David Honan, 59, of Gig Harbor, Wash., was sentenced to 24 months in prison by U.S. District Court Judge Richard T. Haik for attempting to send obscene materials to a minor. Honan is also required to complete three years of supervised release and pay a $4,000 fine. Honan pleaded guilty on Nov. 27, 2012.
According to the evidence presented at the guilty plea, Honan, who traveled to Houma, La., from Washington state for work, engaged in online communication from August 2011 to September 2011 with what he thought was a 14-year-old girl. It was in fact an undercover law enforcement officer. Honan admitted to sending obscene images of himself via webcam and directing who he thought was a 14-year-old girl to websites displaying pornography. Honan was arrested in a Houma hotel Sept. 16, 2011 while chatting online with an undercover officer.
Homeland Security Investigations, the Lafayette Police Department and the Houma Police Department investigated the case. Assistant U.S. Attorney Myers P. Namie prosecuted the case.This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
Virginia Doctor Indicted for Perjury in Orthofix InvestigationRead the Press Release
BOSTON – A Virginia woman was charged today with making a false declaration to a grand jury.
Ilene Terrell, 65, of Fredericksburg, Va., was indicted with making a false declaration to a grand jury.
The indictment alleges that Terrell, a podiatrist, and representatives of Orthofix, Inc., manipulated patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare’s payment guidelines. When Terrell was asked about these matters before the grand jury, she lied, claiming that she was not aware that any records had been manipulated. Bone growth stimulators are externally-worn medical devices that help regenerate bone cells and are used to assist the healing of broken bones. Medicare only pays for a bone growth stimulator if the medical supplier provides records demonstrating that fracture healing has ceased for three or more months. If the bone may heal on its own, Medicare will not pay for a stimulator, which can cost upwards of $4,000.
On numerous occasions, Terrell prescribed a stimulator for a patient where the claim would not have met Medicare’s guidelines. When this occurred, the Orthofix territory manager, Terrell, and an employee at Terrell’s direction often manipulated the patient’s medical records, making it appear as though the stimulator was not prescribed until three months had elapsed without healing, when in fact that was not true and Medicare should not have paid the claim. On some occasions, Terrell prescribed a stimulator for a patient and the patient’s bone healed within the prohibited three-month window. When that occurred, Terrell, an Orthofix representative, and an employee at Terrell’s direction deleted references in chart notes that the patient was using the stimulator and was healing, and they created a new, fictitious note at the end of the 90-day period stating that the bone was still broken and that a stimulator would be ordered. Terrell also created fictitious prescriptions to support the bogus claims.
On May 22, 2012, Terrell testified before the grand jury. She was asked several times if she was aware that patient records had been manipulated. Terrell lied to the grand jury, emphatically denying that she manipulated patient records or that she was even aware that anyone had done so. Terrell lied about other matters as well, including her communications with an Orthofix representative about the government’s investigation and her role in obstructing an audit performed by Orthofix when the company requested that she provide medical records related to claims for bone growth stimulators.
If convicted, Terrell faces a statutory maximum penalty of five years in prison, to be followed by three years of supervised release and a $250,000 fine on each count.
United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David S. Schumacher of Ortiz’s Health Care Fraud Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Upper Marlboro Man Pleads Guilty to TransportingRead the Press Release
Case Prosecuted by Maryland’s Child Exploitation Task Force;
Defendant Faces Minimum Federal Sentence of 10 Years For Taking Teenager to Sex Parties
Greenbelt, Maryland – Troy Walker, a/k/a ‘Caveman,” age 48, of Upper Marlboro, Maryland, pleaded guilty today to transporting a minor with the intent to engage in prostitution.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“Maryland’s Child Exploitation Task Force investigates many cases involving juvenile prostitutes and pursues federal prosecution because of the lengthy sentences,” said U.S. Attorney Rod J. Rosenstein. “Anyone who transports a juvenile under the age of 18 to engage in prostitution faces a mandatory minimum sentence of ten years in federal prison.”
According to his plea agreement, Walker met a 17 year old girl in March of 2012 through a friend who worked at parties hosted by Walker. Walker asked the victim to work for him at a party he was hosting. Walker hosted parties through a company called Quest For Fire. These parties were advertised as sex parties or “gang bangs” on the internet. Interested individuals would text Walker at the cell phone number listed in the ad and Walker would text back the party’s location. Guests paid for entry to a residence which would allow them to engage in sexual acts with girls provided by Walker.
In August 2012, Walker rented an apartment for the victim and had her engage in sex acts with guests at his parties. The victim’s photo was also posted in ads for the parties on the internet. Walker provided transportation for the victim to the sex parties, which included transportation from Washington, D.C. to Maryland. According to the victim, Walker assaulted her several times.
The victim worked for Walker at the parties hosted in Prince George’s County from April 1 to September 15, 2012, while she was 17 years old.
As part of his plea agreement, Walker must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Walker faces a mandatory minimum sentence of 10 years in prison, and a maximum of life in prison, followed by up to lifetime supervised release. U.S. District Judge Peter J. Messitte scheduled sentencing for August 14, 2013.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), which was created in 2010 to combat child prostitution, and includes members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human‑Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi O’Malley, who are prosecuting the case.
United States Attorney to Leave OfficeRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that he will be relinquishing his post as United States Attorney for the Middle District of Louisiana effective July 1, 2013. After his resignation, he plans to join a private law practice in the Baton Rouge, Louisiana area.
“It has been an enormous privilege to serve the Middle District of Louisiana as its U.S. Attorney,” Cazayoux stated. “This office, with its wonderful women and men, represents the best of public service. Being part of our great justice system, with its many dedicated local, state and federal law enforcement personnel, has been an honor. While it is personally the right time to leave for my family and me, I do so with utmost humility and gratitude for this opportunity to serve, given to me by the President and the Attorney General, at the recommendation of Senator Landrieu.”
As U.S. Attorney, Cazayoux’s priorities have been protecting Americans from terrorism and threats to national security, combating violent crime, and fighting public corruption and fraud. Cazayoux has supervised the prosecution of financial, health care, and disaster fraud. Protecting the country’s vulnerable populations – children, the elderly, hate crime victims, and victims of human trafficking and exploitation – has also been a focus of Cazayoux.
Cazayoux joined District Attorney Hiller Moore and state and local law enforcement to curtail violent crime in the City of Baton Rouge through the Brave Initiative, a community-policing effort aimed to disrupt gang activity. The Organized Crime Drug Enforcement Task Force flourished during his tenure, with over ninety-eight defendants charged with drug trafficking offenses and over $1,455,000 in property and money seized in connection with these offenses.
The Health Care Strike Force, under Cazayoux’s leadership, indicted sixty-nine defendants for committing health care fraud offenses. Over $32,400,000 was ordered to be paid back to victims, including federal agencies.
Cazayoux oversaw the public corruption prosecution and conviction of several high-profile defendants. These include: Deputy Commissioner for the Louisiana Department of Insurance; Director of Governor’s Program on Abstinence; Program Manager for Governor’s Office of Safe and Drug Free Schools and Communities; Attorney for Municipal Police Employee’s Retirement System of Louisiana; Mayor of St. Gabriel and President of the National Conference of Black Mayors; Mayor of Port Allen; Mayor of White Castle; Mayor of New Roads; Port Allen Chief of Police; Port Allen City Council Member; and Baton Rouge City Court Clerk.
During his term, Cazayoux ensured that over $17,600,000 in criminal and civil collections were collected by the Civil Division and returned to victims of crimes, the United States Treasury and other federal agencies.
Cazayoux is also the Executive Director of the National Center for Disaster Fraud (“NCDF”), located in Baton Rouge, Louisiana. The National Center for Disaster Fraud currently coordinates disaster fraud prevention and investigations for all Presidential disaster declarations in the United States.
The Middle District of Louisiana is a nine-parish region that includes the following parishes: Ascension, East Baton Rouge, East Feliciana, Iberville, Livingston, Pointe Coupee, St. Helena, West Baton Rouge, and West Feliciana. The United States Attorney's Office is responsible for representing the federal government in virtually all of the litigation involving the United States in the Middle District of Louisiana, including all criminal prosecutions for violations of federal law, civil lawsuits against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers.
Donald J. Cazayoux, Jr. is a native of New Roads, Louisiana. He earned his B.S. and M.A. from Louisiana State University and his J.D. from Georgetown University Law School in 1991. He was elected to the Louisiana House of Representatives from the 18th district in 1999 where he served until 2008. Cazayoux was elected to the U.S. House of Representatives, Louisiana’s 6th District, and served in Congress until January 2009. He was sworn in as the United States Attorney for the Middle District of Louisiana in June 2010.
U.S. Attorney's Office Donates 132 Phones to St. Landry Parish Sheriff's OfficeRead the Press Release
SHREVEPORT/LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that 132 phones have been donated to the St. Landry Parish Sheriff’s Office, which has helped Sheriff Bobby J. Guidroz realize savings of more than $20,800 for his office.
“I am happy that the Sheriff’s Office is able to use these phones,” Finley said. “The residents we serve will see this technology used to increase law enforcement operations in the Western District of Louisiana. Anything that we can do to help our law enforcement partners, benefits the whole community.”
“The phones will be a useful tool at the new sheriff’s office complex,” Guidroz stated. “We hope to be in our new Law-Enforcement Complex by Christmas 2014, and having these new phones installed there will save us money and add a new dimension to our interoffice communications. I am grateful that U.S. Attorney Stephanie Finley has decided to donate this $20,800 cache of telephones to the St. Landry Parish Sheriff’s Office. The phones are speaker phones with alpha numeric display that shows a clock, calendar and call timer.”
Two Sentenced for Involvement in an International Criminal Network That Sexually Exploited ChildrenRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that two additional defendants were sentenced on Tuesday by U.S. District Judge S. Maurice Hicks Jr. for their involvement in an international criminal network organized to sexually exploit children in connection with their participation in the Dreamboard child exploitation bulletin board.
Todd Stumpf, 61, of Buffalo, N.Y., was sentenced to 20 years in prison with five years of supervised release for engaging in a childhood exploitation enterprise. According to evidence presented at the guilty plea, Stumpf joined Dreamboard on Jan. 19, 2008. He posted 1,042 posts and many contained child pornography.William Jewell, 44, of Burbank, Ill., was sentenced to 20 years in prison with a lifetime of supervised release for conspiracy to distribute child pornography. According to evidence presented at the guilty plea, Jewell joined Dreamboard on May 8, 2010. During his time using the site, he posted 13 advertisements offering to distribute child pornography and five of the posts contained child pornography. He also posted six posts to another section of the site and some contained images of prepubescent children engaging in sexual activities.
Stumpf and Jewell were charged in an indictment unsealed on Aug. 3, 2011. The charges are the result of Operation Delego, an ongoing investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard. Dreamboard was a members-only bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection.A total of 72 individuals, including Stumpf and Jewell, have been charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Forty-seven individuals have pleaded guilty, and one was convicted after trial. Forty-six of the 48 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging between five years to life in prison. Three defendants have received life sentences, including one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE attaches offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.The investigation was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers and foreign-national predators whose crimes make them deportable.
ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at http://www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Three Gang Members Plead Guilty in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. –Three members of a Dodge City street gang charged in a federal racketeering case have pleaded guilty, U.S. Attorney Barry Grissom said today.
Angel Cerda, 27, Dodge City, Kan., pleaded guilty to one count of aiding and abetting attempted murder, which was a violent crime in aid of racketeering. He admitted he was involved in an Oct. 4, 2008, incident in which two people were shot.
Jesus Torres, 29, Dodge City, Kan., pleaded guilty to one count of aiding and abetting assault with a dangerous weapon, which was a violent crime in aid of racketeering. He admitted he was involved in an Aug. 27, 2011, incident in which two people were stabbed with knives.
Fabian Neave, 26, Dodge City, Kan., pleaded guilty to one count of racketeering conspiracy. He admitted that from 2008 to 2012 he acted as a principal conspirator with the gang, and he was involved in acts of robbery, attempted murder and drug trafficking.
In his plea, Angel Cerda admitted he was a Diablos Viejos (DV) gang member associated with the Norteno street gang when he accompanied two co-defendants in an attack at the home of a member of the rival Sureno gang. On Oct. 4, 2008, Cerda and two co-defendants gathered in a barn behind a house at 10770 Kettle Way near Dodge City, which was a hangout for the gang. Later that day, Cerda and the two co-defendants drove to the home of Abel Hernandez, a known Sureno gang member, and Rumalda Hipolito. Outside the home, Hernandez’s brother and others were drinking beer. One of the Nortenos began harassing them and shouting Norteno slogans. After someone threw a beer bottle at the Nortenos’ car, Cerda and the two co-defendants drove away.
Cerda and his associates obtained a firearm, an SKS or AK-47 style weapon, and returned to Hernandez’s house, parking in an alley half a block away. They approached the house on foot where co-defendant Gonzalo Ramirez discharged multiple rounds from the firearm. The gunshots hit the house, striking Abel Hernandez and Rumalda Hipolito. Hipolito suffered a gunshot wound to the arm. Hernandez suffered a gunshot wound to the leg. Investigators found 19 bullet holes in the house and recovered 20 shell casings at the scene. After the shooting, Cerda and the two co-defendants returned to the house on Kettle Way, where they hid the car in the barn. Dodge City police arrested Cerda there.
In his plea, Jesus Torres admitted that he was a member of the Diablos Viejos on Aug. 27, 2011, when he urged Norteno associates to join him in an assault on a group of people he mistakenly believed were members of the Surenos, a rival gang. The assault took place at 703 E. 9th Avenue in Dodge City. During the fight, two people were stabbed, Gabriel Rivera and Carlos Ramirez. Rivera’s injuries were life-threatening, requiring a life-flight to a Wichita hospital.
In his plea, Fabian Neave admitted he was a member of the Diablos Viejos and associated with the Norteno street gang. He admitted being involved in three incidents including taking part in the Aug. 27, 2011, assault at 703 E. 9th Ave., and possessing methamphetamine with intent to distribute on Dec. 27, 2011. In the third incident, on July 2, 2008, he and other Nortenos robbed Bryant Licon. During the robbery, Neave held a knife to Licon. He and two other Nortenos split the money from the robbery.
All three defendants admitted that robberies, assaults and other crimes were part of the way Norteno gang members built their reputations and kept their rivals at bay.
Cerda is set for sentencing Sept. 3. He faces a maximum penalty of 10 years and a fine up to $250,000.
Torres is set for sentencing Sept. 3. He faces a maximum penalty of 20 years and a fine up to $250,000.
Neave is set for sentencing Sept. 9. He faces a maximum penalty of 20 years and a fine up to $250,000.Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
Third Person Charged in Relation to Financial Investigation and Multiple Area BusinessesRead the Press Release
CORPUS CHRISTI, Texas – Leroy Mitchan Jr., 33, of Corpus Christi, has been indicted as a result of the efforts of a multi-agency investigation into the structuring of financial transactions, United States Attorney Kenneth Magidson announced today.
Mitchan is the third person indicted as part of this structuring conspiracy. Kimberly Davis, 27, and Justin Colmenero, 30, both of Corpus Christi, were indicted last month.
This indictment, returned just moments ago, alleges the defendants conspired to structured more than $100,000 in cash deposit transactions over a 12-month period with a domestic financial institution in order to avoid the legal reporting requirements of the bank.
Mitchan was arrested upon the filing of a criminal complaint on May 31, 2013. At the time of his arrest, he was allegedly in possession of synthetic marijuana. He later appeared before U.S. Magistrate Judge Jason B. Libby for a detention hearing, at which time the government detailed searches that had been executed at four local businesses as well as Mitchan’s residence. A Drug Enforcement Administration (DEA) agent testified that agents located hydroponic marijuana, synthetic marijuana, hash and THC oil at Mitchan’s residence. Testimony further revealed that agents located a safe with approximately $360,000 and synthetic marijuana at Uncle Mike’s Rent To Own as well as six firearms, one of which was reported stolen, at Mr. Nice Guys Auto in Corpus Christi.
An agent with Internal Revenue Service – Criminal Investigation (IRS-CI) also testified at the hearing that the structuring conspiracy involved several transactions totaling more than $450,000.
Mitchan was permitted to remain on bond pending further criminal proceedings. If convicted, he faces up to 10 years in federal prison and a possible $500,000 fine.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by IRS-CI, DEA and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorneys Hugo R. Martinez and Lance A. Watt.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Test Prep Company Owner Who Was Extradited from Latvia Ordered to Pay $700,000 in Restitution for Stealing Questions from Medical Licensing ExamRead the Press Release
NEWARK, N.J. – One of the owners and operators of a Totowa, N.J., test preparation business, who was extradited from Latvia in October 2012, was ordered to pay $700,000 in restitution for her role in stealing “live” licensing examination questions from the National Board of Medical Examiners, U.S. Attorney Paul J. Fishman announced.
Egija Kuka, 40, who owned and operated Optima University with her former husband, co-defendant Eihab Suliman, 50, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to two counts of an indictment charging her with mail and wire fraud and conspiracy to commit mail and wire fraud. Judge Chesler imposed the sentence, which also included eight months’ time served, in Newark federal court. Suliman remains a fugitive.
According to documents filed in this case and statements made in court:
Optima University was a test preparation business that provided courses designed to prepare students for the U.S. Medical Licensing Examination (USMLE), which is created and administered by the National Board of Medical Examiners (NBME), an independent, not-for-profit organization headquartered in Philadelphia.
The USMLE is used by medical licensing authorities throughout the United States to evaluate physicians seeking an initial license to practice medicine. The test assesses whether international medical school graduates are ready to enter accredited residency or fellowship programs in the United States. Medical school graduates – whether they graduated from a United States medical school or a foreign medical school – generally must complete at least some parts of the USMLE as a prerequisite to enter into residency training or receive a medical license. NBME goes to extensive lengths to keep test questions secure and examinees are advised that the test questions used in the USMLE are copyrighted and not to be distributed or reproduced.
Beginning in December 2007, Kuka and Suliman solicited potential Optima University students by guaranteeing that the students would pass the USMLE, even if the student had previously failed it. Kuka and Suliman also assured potential students that any tuition paid to Optima University would be “risk-free,” and that any student who did not pass the USMLE could retake the Optima course at no additional cost.
On Dec. 2, 2007, Kuka applied via the internet to take the USMLE in Milan, Italy, falsely stating that she had graduated from the University of Oradea, an accredited medical school in Romania, with a doctorate in medicine. On Dec. 18, 2007, Kuka submitted a “Certification of Identification Form” along with a copy of a fabricated diploma from University of Oradea’s medical school to enable her to take the exam and gain access to, steal and reproduce the live test questions.
Kuka took Steps 1 and 2 of the USMLE on April 7, 2008, and April 14, 2008, in Milan. Video surveillance from those test sessions show Kuka using a small digital video recording device to record the live test questions that were displayed on the computer monitor. On May 28, 2008, Kuka sat again for Step 1 of the USMLE examination.
On May 28, 2008, a search was conducted at Optima University and live test questions were found. These live test questions were used by Suliman and Kuka on practice examinations provided to Optima University students.
The indictment was returned in July 2011. Kuka had already fled to Latvia. In September 2011, U.S. authorities requested Kuka’s extradition pursuant to the extradition treaty between the United States and Latvia.
In addition ordering her to pay restitution to the National Board of Medical Examiners and sentencing her to time served, Judge Chesler sentenced Kuka to two years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation that led to today’s sentence. He also thanked the Office of International Affairs, Criminal Division, at DOJ and Officials in the Republic of Latvia for their assistance in this matter.The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
13- 245Defense counsel: Peter Carter Esq., Assistant Public Defender’s Office, Newark
Suwanee Man Sentenced for Violating Tax LawsRead the Press Release
Sroufe Falsely Claimed $1.7 Million Tax Refund
ATLANTA – Donus R. Sroufe has been sentenced to over four years in prison for interfering with the administration of the revenue laws and for making a false claim for a $1.7 million tax refund.
“The defendant lied on his tax return and tried to defraud the U.S. Treasury out of $1.7 million,” said United States Attorney Sally Quillian Yates. “Fortunately, the IRS caught his fraudulent return before any taxpayer funds were paid out.”“This was a case of greed, deceit, manipulation and theft directed at the United States Department of Treasury and the American taxpayer,” stated Veronica Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “The prison time received by Mr. Sroufe should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path.”
According to United States Attorney Yates, the charges and other information presented in court: In March 2009, Sroufe filed a United States Individual Income Tax Return (Form 1040) for 2008, claiming a tax refund of $1.7 million. On the tax return, Sroufe falsely claimed: (1) to have received $2.5 million from a United States Treasury bond, and (2) that he had paid over $2.6 million in federal taxes. In fact, the $2.5 million bond was a fake and Mr. Sroufe had not paid any income taxes for 2008.
In April 2009, the Internal Revenue Service (IRS) notified Sroufe that his 2008 tax return was “frivolous” and warned him that he could face a penalty for filing a false return. Moreover, in June 2009, two IRS Special Agents met with Sroufe in person and notified him that the $2.5 million bond appeared to be a fictitious financial instrument.
Despite those warnings, in August 2009, Sroufe mailed an identical copy of the 2008 tax return to the United States Department of the Treasury, including a copy of the fake $2.5 million bond, and demanded a $1.7 million tax refund.On March 13, 2013, a jury found Sroufe guilty of interfering with the administration of the revenue laws and for making a false claim for a tax refund.
Today, Sroufe, 55, of Suwanee, Ga., was sentenced to four years, three months in prison to be followed by three years of supervised release, and ordered to pay a fine of $75,000.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Jeffrey W. Davis, Steven D. Grimberg, and Shanya J. Dingle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Sneads Man Convicted for Threatening to Use Biological Agents and Explosives Against Federal InstitutionRead the Press Release
TALLAHASSEE, FLORIDA – A Sneads resident was found guilty yesterday afternoon on three counts of conveying false and misleading information involving the unlawful use and threatened use of a weapon of mass destruction involving a biological agent and toxin, and a destructive device. Jamie Lee Wambles, 32, was also convicted of a fourth count of mailing threatening communications to a federal agent, involving the potential bombing of the Federal Courthouse in Tallahassee.
Evidence presented at trial revealed that on December 17, 2012, Wambles wrote his first threatening letter from a Jackson County jail facility to the Clerk’s Office at the Federal Courthouse in Tallahassee claiming it contained anthrax. This letter was received at the courthouse by court security officers. On December 18, 2012, Wambles wrote a second threatening letter to the Clerk’s Office at the same address with a white powder claiming it was anthrax. It turned out to be finely crushed Tylenol pills. He wrote a third threatening letter on December 20, 2012, to the same Federal Courthouse, this time claiming he would bomb the building unless his demands were met. Wambles was aggrieved over the shooting death of his pit bull during his state arrest and wanted the officers responsible to be investigated. Finally, on January 7, 2013, Wambles mailed a fourth letter to an FBI agent claiming he had the materials to bomb the Tallahassee Federal Courthouse if his concerns were not mollified.
Wambles faces up to five years in prison and a $250,000.00 fine on each of the first three counts, and up to ten years in prison and a $250,000 fine on the fourth count. The sentencing of Wambles is scheduled for August 29, 2013. Wambles is currently serving seven years in state prison on unrelated state firearm charges.
United States Attorney Pamela C. Marsh praised the efforts of the Federal Bureau of investigation and the United States Marshals Service who investigated this threat case.
The case was prosecuted by Assistant U.S. Attorney James Ustynoski.Smith County Man Sentenced for Dealing Meth in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A32-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Sipriano Relles pleaded guilty on Sep. 4, 2012, to possession with intent to distribute methamphetamine and was sentenced to 140 months in federal prison today by U.S. District Judge Michael H. Schneider. The court also imposed a $2,000 forfeiture judgment against Relles.
According to information presented in court, on Feb. 20, 2012, Relles was found in possession of approximately 66.9 grams of actual methamphetamine, which he intended to deliver to others in and around the Eastern District of Texas. A federal grand jury returned an indictment on Apr. 11, 2012, charging Relles with federal violations.
This case was investigated by the Drug Enforcement Administration and the Tyler Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Shreveport Doctor Sentenced for Health Care FraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced thatEdozie Chukwudinma Okereke, 57, of Shreveport, was sentenced Monday by U.S. District Judge S. Maurice Hicks Jr. to 21 months in federal prison with three years supervised release for health care fraud. Okereke was also ordered to pay $679,836 in restitution to Medicare.
According to evidence presented at the guilty plea, Okereke, who was the owner/operator of Family Foot and Ankle Clinic, was a doctor of podiatric medicine for patients at the Shreveport clinic, and he was responsible for making sure that the correct treatment was billed by accurately submitting claims for the treatments and services he performed. Starting in 2005, Okereke submitted billing codes for treatment not covered under Medicare. Okereke was providing routine foot care, such as toenail clipping, and then “upcoding” or submitting codes for services that Medicare would cover.
“The defendant’s scheme was designed to defraud a government program that provided medical services to the elderly and the disabled,” U.S. Attorney Finley stated. “His actions were detrimental to the program and ultimately hurt U.S. taxpayers. This office will continue to vigorously pursue charges against those who steal from these types of programs.”
The U.S. Department of Health and Human Services-Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Shiprock Man Sentenced to Eighty-One Months in Federal Prison for Conviction on Assault and Firearms ChargesRead the Press Release
ALBUQUERQUE – Raydell Billy, 22, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced yesterday afternoon to 81 months in federal prison followed by three years of supervised release for his conviction on assault and firearms charges.
Billy was arrested in Jan. 2013, on a criminal complaint charging him with assault and firearms offenses, and has been in federal custody since that time. Billy subsequently was indicted and charged with two counts of being a felon in possession of a firearm, assault with a dangerous weapon; and using a firearm during a crime of violence. Billy was charged with committing these offenses on the Navajo Indian Reservation in San Juan County, N.M., on Nov. 15, 2012 and Jan. 12, 2013.Billy pled guilty on March 12, 2013 to a felony information charging him with assault with a dangerous weapon and using a firearm in furtherance of a crime of violence. In entering his guilty plea, Billy admitted that on Jan. 12, 2013, he assaulted an individual with a .22 caliber Winchester rifle by pointing the rifle at the victim and pulling the trigger. Billy also admitted hitting the victim in the head with the butt-stock of the rifle.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Shakopee Man Pleads Guilty to Using Other People’s Food StampsRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 47-year-old Shakopee man pleaded guilty to using other people’s food stamps. Chin Son Kim specifically pleaded guilty to one count of food stamp fraud. Kim, who was charged on April 18, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Kim admitted that between November 2010 and July 2012, he obtained Supplemental Nutrition and Assistance Program (“SNAP”) cards, commonly known as food stamps, from the true recipients of those benefits. To acquire the cards, he waited near a charity facility in St. Paul, as well as at other locations, and then approached people he thought might be in possession of them.
After obtaining a card, Kim would go to cooperating local markets, where he would use the card in an unauthorized manner. Typically, he would present the card to the grocer, who would swipe it through a food-stamp scanner, routinely noting a transaction of approximately $200. Kim would then receive cash, groceries, or store credit in that amount. Afterwards, he would return the card to its rightful owner, providing that person with cash in the amount of approximately half the transaction total. The loss to the SNAP program because of Kim’s action was approximately $29,816.
Each individual who receives SNAP benefits is issued an electronic benefit transfer (“EBT”) card, which contains a monthly allocated benefit amount that can be used at authorized retailers. The U.S. Department of Agriculture (“USDA”) reimburses those retailers for the benefit amounts redeemed. Only eligible food items may be acquired with food stamps, and some items, such as alcoholic beverages, tobacco products, and cell phone minutes are not eligible. Moreover, food stamps may not be redeemed for cash.
For his crime, Kim faces a potential maximum penalty of five years in federal prison. Judge Magnuson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the USDA-Office of Inspector General, the Ramsey County Sheriff’s Office, and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.Sex offender sentenced to 15 years prison for child sexual exploitationRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Washington man was sentenced in federal court in Anchorage for advertising child pornography in Alaska.
Matthew Edward Shubart, 33, from Yakima, Washington, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess to 15 years in prison. Judge Burgess also ordered that upon release from prison Shubart will serve a lifetime term of supervised release, with specific conditions to register as a sex offender, to have no unsupervised contact with any person under the age of 18, and to participate in sex offender assessment and treatment.
According to Assistant U.S. Attorney Audrey Renschen, who prosecuted the case, Shubart used social networking and emails to advertise that he was seeking and offering to exchange, distribute and receive child pornography. Shubart admitted in his plea agreement that in 2012, he socially networked with a group of 109 members of an emailing group who traded child pornography. Shubart further admitted that on January 25, 2012, he emailed seven pictures of child pornography to an Alaska resident. Before sending the images to Alaska, Shubart remarked in his email, “I have some hidden camera pics....got lucky and got a cutie....wanna see? they were done by me, not off the internet....”
Over 800 images of child pornography were found on Shubart’s computer and email account. Several child victims who were identified in those images submitted letters describing the serious harms they had suffered as the result of being sexually exploited. Judge Burgess acknowledged those harms and the seriousness of child pornography crimes when he sentenced Shubart to the 15 year prison sentence and the supervised release for the rest of his life.
Ms. Loeffler commends Homeland Security Investigations for their extensive investigation of this case, and acknowledges the agencies persistent dedication to rescuing child victims from sexual exploitation, and pursuing the sexual predators that harm children.
Sex Offender Indicted for Producing Child Porn Overseas, Distributing Child Porn OnlineRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a prior sex offender was indicted by a federal grand jury today for producing child pornography with five child victims in the Philippines and for distributing child pornography over the Internet.
Kenneth Gaylord Stokes, 68, a U.S. citizen who resided near the city of Cebu in the Philippines, was charged in a seven-count superseding indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal indictment that was returned under seal on Nov. 7, 2012 and contains five additional counts of traveling overseas to engage in illicit sexual conduct (the production of child pornography).
The original indictment was unsealed on March 4, 2013, when Stokes was transported to the U.S. District Court in Springfield for his initial appearance. He has been in federal custody since his arrest on Dec. 3, 2012 and is being held without bond. Stokes has a prior conviction for the statutory rape of a 7-year-old child in the state of Washington.
According to court documents, a federal agent located a Craigslist advertisement offering photography services in the Philippines in July 2012. Given the nature of the advertisement, the agent suspected that Stokes was actually engaged in illegal activities involving child pornography. The agent later exchanged messages via e-mail in which Stokes allegedly asserted that he had married a Filipino woman to get to her daughter and that he had “no limits” in terms of his photography services.
On July 10 and July 26, 2012, according to court documents, Stokes sent the agent e-mails containing photographs of child pornography.
On Dec. 3, 2012 the agent met Stokes at his residence in the Philippines. Stokes, who allegedly told the agent that he sexually abused many prepubescent children, was arrested.
A forensic examination of Stokes’ computer is ongoing. In a motion filed with the court, the government asserts that the preliminary examination suggests that Stokes used child victims to produce a large quantity of movies and images of child pornography.
Today’s indictment maintains the original charges against Stokes, who was charged in the original indictment with two counts of distributing child pornography over the Internet to Greene County, Mo., on two separate occasions in July 2012.
Stokes is also now charged with five additional counts of traveling overseas to produce child pornography. Between Sept. 26, 2009, and Dec. 3, 2012, Stokes allegedly used five separate child victims (identified as Jane Doe #1, #2, #3, #4, and #5) to produce child pornography.
Under federal statutes, today’s charges carry a mandatory minimum penalty of 15 years in federal prison without parole for each count of distributing child pornography (due to Stokes’ prior sex offense), up to a sentence of 40 years in federal prison without parole for each count. Each of the five counts of traveling overseas to engage in illicit sexual conduct carries a maximum penalty of 60 years in federal prison without parole.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
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."