Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 11 June 2013
Pittsburgh Man Charged with Distributing and Possessing Pornographic Images of MinorsRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment named Christopher Malinak, 29, as the sole defendant.
According to the indictment, from on or about April 28, 2013, to on or about May 7, 2013, Malinak distributed images containing material depicting the sexual exploitation of minors to an individual located in Madison, Wis. The indictment further alleges that on or about May 1, 2013, Malinak distributed images containing material depicting the sexual exploitation of minors to an individual in Scranton, Pa. Finally, the indictment alleges that on or about May 15, 2013, Malinak possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County District Attorney's Office, Lackawanna County Police Department and Madison, Wisconsin Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty
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.justice.gov/psc.
Pierce County Hard Money Lender Indicted for Conspiracy, False Statements and Mail Fraud in Mortgage Fraud SchemeRead the Press Release
A hard money lender who resides in University Place, Washington was arrested today after being indicted by the grand jury for conspiracy, making false statements on loan applications and mail fraud. EMIEL A. KANDI, 36,was taken into custody by the FBI this morning and will make his initial appearance on the indictment in U.S. District court in Tacoma at 2:30 today.
“The business practices of this defendant harmed individuals who lost their homes. Then the lies told in mortgage documents harmed taxpayer funded institutions such as the Federal Housing Administration,” said U.S. Attorney Jenny A. Durkan. “These mortgage fraud cases result from thorough and intensive investigations. I’m grateful for the hard work of the dedicated agents and investigators working to hold Mr. Kandi accountable.”
According to the indictment, between 2008 and 2009, KANDI submitted false information to obtain home mortgage loans. Some of these loans were designed to let KANDI cash out of properties that KANDI owned through his hard money lending. KANDI’s lending activities were typically secured by a borrower’s home and charged a high rate of interest. The hard money loans were structured, in some instances, to allow KANDI to seize control of a home if the borrower missed a single payment. Other loans included an inflated and often disguised commission payment to KANDI. In at least 19 loans, KANDI and his co-schemers submitted false information regarding the borrowers’ employment, salary, and intention to live in the home. Some of the loan paperwork included inflated appraisals so that KANDI could maximize the money he obtained in the scheme. The false statements were designed to make the loans appear legitimate and ensure that they would meet federal lending standards. Many of the loans were processed by Pierce Commercial Bank and were insured by the Federal Housing Administration (FHA), a unit within the federal Department of Housing and Urban Development (HUD).
The indictment details the false statements that were made in loan applications on properties in Kent, Puyallup, Roy, Gig Harbor and Vancouver, Washington. In one instance detailed in the indictment, the falsified forms were sent to a lender in Texas via U.S. Mail resulting in the charge of mail fraud.
Mail fraud is punishable by up to 20 years in prison and a $250,000 fine. Conspiracy is punishable by up to five years in prison and a $250,000 fine. Making false statements in a loan application is punishable by up to 30 years in prison and a $1 million fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI and the Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Brian Werner and Special Assistant United States Attorney Hugo Torres. Mr. Torres is a King County Deputy Prosecutor specially funded by the Washington Department of Financial Institutions (DFI) to handle mortgage fraud cases in state and federal court.
Picuris Pueblo Woman Sentenced to Probation for Embezzling $132,000 from Picuris PuebloRead the Press Release
ALBUQUERQUE –Norma Mermejo, 62, a member and resident of Picuris Pueblo, was sentenced this morning to five years of probation for her conviction on an embezzlement and theft from an Indian tribal organization charge. Mermejo also was ordered to pay $132,000 in restitution to Picuris Pueblo.
In Oct. 2012, Mermejo pleaded guilty to embezzling approximately $132,000 belonging to Picuris Pueblo between Feb. 2008 and April 2010. At the time, Mermejo was employed as a file clerk in the Pueblo’s accounting office. Picuris Pueblo terminated her employment in April 2010, when Pueblo officials learned of her unlawful activities. During her plea hearing, Mermejo admitted embezzling an aggregate of $132,000 of funds belonging to Picuris Pueblo on 144 occasions during a two-year period. She also admitted that she used the money to support her gambling habit and make ends meet with regard to such matters as utility bills.
The case was investigated by the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Picuris Pueblo Woman Sentenced to Probation for Embezzling $132,000 from Picuris PuebloRead the Press Release
ALBUQUERQUE –Norma Mermejo, 62, a member and resident of Picuris Pueblo, was sentenced this morning to five years of probation for her conviction on an embezzlement and theft from an Indian tribal organization charge. Mermejo also was ordered to pay $132,000 in restitution to Picuris Pueblo.
In Oct. 2012, Mermejo pleaded guilty to embezzling approximately $132,000 belonging to Picuris Pueblo between Feb. 2008 and April 2010. At the time, Mermejo was employed as a file clerk in the Pueblo’s accounting office. Picuris Pueblo terminated her employment in April 2010, when Pueblo officials learned of her unlawful activities. During her plea hearing, Mermejo admitted embezzling an aggregate of $132,000 of funds belonging to Picuris Pueblo on 144 occasions during a two-year period. She also admitted that she used the money to support her gambling habit and make ends meet with regard to such matters as utility bills.
The case was investigated by the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Northampton Man Charged with Having Drugs on A Federal InstallationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that federal charges were filed Monday in Harrisburg against a Northampton, Pennsylvania man for having drugs and drug paraphernalia on a federal installation in New Cumberland, Pennsylvania.
According to United States Attorney Peter J. Smith, Paul Transue, Jr., age 51, was charged with possessing marijuana and cocaine on November 14, 2012 while on the grounds of the Defense Distribution Center Susquehanna (DDCS), New Cumberland. Transue, a civilian contractor, consented to the search of his vehicle after it had been stopped for speeding. A search of his car led to the recovery of cocaine and marijuana as well as a variety of drug use paraphernalia such as glass pipes, rolling papers, a razor blade and a straw. The amount of marijuana and cocaine recovered was consistent with possession for personal use, especially given the fact that paraphernalia for using the drugs was also recovered from Transue’s car.
The investigation was handled by the DDCS Security and Emergency Services. Prosecution has been assigned to Assistant U.S. Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is one year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Norfolk Man Sentenced to more than 12 Years Imprisonment for Selling MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Adrian Barron-Valdez, was sentenced on June 10, 2013, to 151 months in prison by United States District Judge John M. Gerrard. Barron-Valdez had previously pled guilty for his involvement in a conspiracy to distribute multiple ounces of “ice” methamphetamine in the Norfolk, Nebraska, area from March 1, 2011, and continuing to October 24, 2012. Barron-Valdez will be deported after serving his sentence as he was in the country illegally at the time of the offense.
This case was the result of a joint investigation by the Drug Enforcement Administration, the Nebraska State Patrol, and Homeland Security Investigations.
New Hampshire Firearm Purchaser Sentenced to Federal Prison for Providing False Information During the Acquisition of FirearmsRead the Press Release
CONCORD, NH –Ulrick Lucien, 25 was sentenced in United States District Court for the District of New Hampshire to eighteen months in prison for providing false information in connection with the acquisition of three firearms, announced United States Attorney John P. Kacavas.
Lucien, a Massachusetts resident, presented a false New Hampshire address in order to purchase three firearms from a federally licensed firearms dealer in Manchester, New Hampshire. He was indicted and charged with one count of making a false statement during the acquisition of a firearm, and one count of making a false statement in information required to be kept by a federal firearms dealer. After a three-day trial, the jury returned guilty verdicts against Lucien on both counts presented.
Lucien’s prosecution arose from an investigation undertaken by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Debra Walsh and Assistant U.S. Attorney Nick Abramson.
Netzahualcoyotl Guinto-ascenscio Sentenced for Unlawfully Transferring A Fraudulent Identification DocumentRead the Press Release
NETZAHUALCOYOTL GUINTO-ASCENSCIO, age 37, a citizen of Mexico, was sentenced today in federal court by U. S. District Judge Jay C. Zainey, announced U. S. Attorney Dana Boente. GUINTO was sentenced to approximately six months imprisonment. In addition to the term of imprisonment, Judge Zainey ordered that GUINTO be placed on one year of supervised release following his term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release. He will be turned over to U.S. Immigration and Customs Enforcement for immigration processing upon his release from imprisonment.
According to court documents, on March 21, 2013, GUINTO pled guilty to one count of a three-count indictment admitting that on or about October 16, 2012, he sold a counterfeit Social Security card, knowing that the identification document was produced without lawful authority, and the false identification document appeared to have been issued by or under the authority of the United States. The two remaining counts were dismissed by Judge Zainey on the government’s motion pursuant to GUINTO’s guilty plea.
The case was investigated the U. S. Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Montana Mines Resident Sentenced to 10 Years Imprisonment on Firearms ChargeRead 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
Two Individuals in Synthetic Drug Investigation Sentenced
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II
announced that the following individuals recently appeared in Federal Court in Clarksburg.THOMAS RANDALL, age 41, of Montana Mines, West Virginia, was sentenced to 120 months imprisonment to be followed by one year of supervised release pursuant to an earlier entered plea of guilty to “Felon in Possession of a Firearm.” RANDALL was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
JEREMIA J. PHILLIPS, age 30, of and DERRICK L. CALIP, age 40, of Clarksburg were sentenced to 21 months imprisonment to be followed by three years of supervised release, with credit for time served since April 18, 2012, pursuant to their earlier entered pleas of guilty to “Conspiracy to Distribute Schedule I Controlled Substances and Schedule I Controlled Substance Analogues, referred to as ‘bath salts’ from September 7, 2011, to April 17, 2012, in Harrison County. PHILLIPS and CALIP were remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Harrison County Drug and Violent Crimes Task Force and the Drug Enforcement Administration, the Three Rivers Drug Task Force and the Internal Revenue Service-Criminal Investigations.
Meadows Place Resident Detained on Child Pornography ChargesRead the Press Release
HOUSTON - William Butler Myers, 41, has been detained on allegations of production of child pornography, United States Attorney Kenneth Magidson announced today.
At a hearing held this morning, U.S. Magistrate Judge Francis Stacy found probable cause that Myers, of Meadow Place, committed the crime of production of child pornography and that he is a flight risk and danger to the community.
Officers with the Meadows Place Police Department arrested Myers on Friday, May 31, 2013, and a criminal complaint was filed in federal court on Monday, June 3.
The arrest came as the result of evidence found on a cell phone Myers took in for service. A cell phone repair shop employee notified law enforcement that he had found what he thought were images of child pornography on Myers’ phone. Law enforcement reviewed the images and obtained a warrant for Myers residence in Meadows Place, at which time agents seized several items, including computers.
Law enforcement has identified at least one alleged victim in relation to this case.
If convicted, Myers faces a mandatory minimum sentence of 15 and up to 30 years for producing child pornography as well as a possible $250,000 fine. Additionally, he could face a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet.
The allegations against Myers are the result of an investigation conducted by members of the Innocent Images Unit of the Houston FBI, including members of the Houston Police Department, which focuses its attention on investigating offenses involving the exploitation of children.
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."
A defendant is presumed innocent unless convicted through due process of law.Maryland Man Sentenced to 46 Months in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Marc Gange, 35, of Silver Spring, Md., was sentenced today to a prison term of 46 months on a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gange pled guilty in February 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, Gange will be placed on 10 years of supervised release.
According to the government's evidence, on Nov. 15, 2012, Gange contacted a man he believed to be the father of a 12-year-old girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next several days, Gange engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Gange sent the undercover officer approximately 79 images of child pornography which depicted, among other things, adult men engaged in sexual acts with children. Following Gange’s arrest on Dec. 5, 2012, the FBI’s Child Exploitation Task Force conducted a search of his work space and residence. Officers recovered approximately three videos and over 1,000 images of child pornography from a USB drive and the defendant’s computer.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force who investigated the case. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-201Marlys Young Running Crane Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 10, 2013, before Chief U.S. District Judge Dana L. Christensen, MARLYS YOUNG RUNNING CRANE, a 59-year-old resident of Browning, appeared for sentencing. YOUNG RUNNING CRANE was sentenced to a term of:
Prison: 12 months
Special Assessment: $100
Supervised Release: 1 year
YOUNG RUNNING CRANE was sentenced in connection with her guilty plea to misprision of a felony.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
Beginning in November 2010, Louis Romero, Henry Lopez, and several other individuals facilitated the distribution of methamphetamine in Browning and Great Falls.
During this time, YOUNG RUNNING CRANE had full knowledge that several of the other individuals were all involved in illegal methamphetamine distribution. YOUNG RUNNING CRANE failed to notify any authorities of these illegal activities. In fact, when law enforcement questioned YOUNG RUNNING CRANE, she provided an untruthful statement that this drug activity was not occurring, which in effect, concealed the crime.
Romero and Lopez pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that YOUNG RUNNING CRANE will likely serve all of the time imposed by the court. In the federal system, YOUNG RUNNING CRANE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Montana Violent Crimes Task Force.
Marine Life Dealers Charged for Illegal Harvest and Sale of Nurse SharksRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge for the National Oceanic and Atmospheric Administration, Office of Law Enforcement, Southeast Division, and David G. Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, announced the unsealing of criminal charges against Allan Wagner, formerly a resident of Monroe County, Florida, and Dean Trinh, 43, of Milpitas, California. More specifically, the indictment against Wagner and Trinh alleges that they engaged in a conspiracy to take, harvest, capture, transport, and sell quantities of juvenile nurse sharks from Florida state waters, for commercial sale and distribution in interstate commerce to their financial gain, in violation of the laws and regulations of the State of Florida, all in violation of the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(1) and (2). Dean Trinh has been arrested and made his initial appearance on the charges in California; his court appearance date in Florida remains to be set. Allan Wagner passed away prior to the unsealing of the indictment.
The case has been assigned to U.S. District Judge Jose E. Martinez. If convicted on the charges, Trinh faces possible terms of imprisonment of up to five years on each of the six charges brought against him.
According to the indictment, Wagner held a Florida Saltwater Products License but lacked the necessary federal annual vessel permit for sharks. He was the registered owner of a 40’ commercial fishing vessel. Trinh operated a business in Milpitas, California, known as AQUATOP USA, LLC, which, among other things, advertised the sale of nurse sharks on eBay and Craig’s List. Specifically, the indictment alleges that Wagner harvested nurse shark pups from lobster traps he placed in state waters and thereafter he and Trinh negotiated over the internet for the sale and transfer of the juvenile nurse sharks. The sharks were shipped to California by commercial air cargo, for further sale by Trinh. Over the period from August 2009 through October 2009, the defendants are alleged to have sold and transferred approximately 74 sharks.
Florida Administrative Code, Section 68B-44.005, “Commercial Harvest of Sharks: Federal Permit Required” provides in relevant part: “(1) No person shall harvest sharks in or from the waters of the state for commercial purposes or sell any shark harvested from such waters unless such person is in possession of a valid federal annual vessel permit for sharks issued pursuant to 50 C.F.R. §635.4. The federal Lacey Act, among other things, makes it unlawful for any person to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce, any fish or wildlife, taken, possessed, transported, or sold in violation of any law or regulation of any State. 16 U.S.C. §3372(a)(2)(A).
Mr. Ferrer commended the investigative efforts of the Special Agents of NOAA-OLE and FWS-OLE in this case, and the U.S. Attorney’s Office for the Northern District of California for their assistance in the preliminary proceedings in that District. The case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney Settles Civil Rights Lawsuit That Ensures Accessibility at Manhattan Rental ComplexRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has settled a civil rights lawsuit in Manhattan federal court against the developer, architect, and current owner of RiverEast, a residential apartment complex in Manhattan, alleging that the apartment complex is inaccessible to persons with disabilities. Specifically, the lawsuit alleges that THE JOHN BUCK COMPANY, LLC; BUCK DEVELOPMENT LLC; BUCK 92ND/1ST LLC; BUCK INVESTORS I, LLC; 92ND & FIRST RESIDENTIAL TOWER LLC; and THE JBC ACQUISTION & DEVELOPMENT FUND 1, LP (collectively, the “JOHN BUCK ENTITIES”), the developers of RiverEast, and SLCE ARCHITECTS LLP (“SLCE”), the architectural firm that designed the building, violated the design and construction provisions of the federal Fair Housing Act, which require that new multi-family housing complexes include certain features to make them accessible to persons with disabilities. The United States also sued RIVER EAST APARTMENTS INVESTORS, LLC, the current owner of RiverEast, to ensure that retrofits making the apartment complex accessible to persons with disabilities could be implemented. The consent decree was approved yesterday by U.S. District Judge Lorna G. Schofield.
Manhattan U.S. Attorney Preet Bharara said: “Developers and architects working in New York City have no excuse for failing to comply with the Fair Housing Act, and this Office will find and pursue offenders aggressively, particularly repeat offenders as we had here. Today’s settlement ensures that RiverEast will be made accessible to people with disabilities, and that people who were unlawfully denied full use of the complex will be compensated appropriately.”
According to the allegations contained in the Complaint:
RiverEast, a 196-unit apartment building located at 408 East 92nd Street in Manhattan, was designed and constructed with many inaccessible features. These include insufficient clear floor space in trash rooms and within bathrooms for maneuvering at lavatories and toilets; impediments to the installation of bathroom grab bars; kitchen and bathroom electrical outlets not fully usable to persons with mobility impairments; mailboxes that are too high for people who use wheelchairs; and inaccessible common area bathrooms. Inaccessible features at RiverEast were first brought to the attention of the United States by testing performed by the Fair Housing Justice Center. The U.S. Attorney’s Office frequently relies on testers to determine whether property owners are engaging in discrimination on the basis of race, disability, or other protected characteristics, and frequently files lawsuits based on the results of such testing. This is the ninth case filed by the Office in recent years based on testing.
The consent decree approved today requires the JOHN BUCK ENTITIES and SLCE to retrofit inaccessible features throughout the property and train employees on the requirements of the Fair Housing Act.
In addition, because one of the JOHN BUCK ENTITIES previously entered into a consent decree with the United States in the Northern District of Illinois to resolve allegations of Fair Housing Act violations, the United States sought increased penalties for this repeat violation of the Fair Housing Act. The JOHN BUCK ENTITIES and SLCE agreed to pay an increased civil penalty of $72,000, and to dedicate $125,000 to compensate people who have been harmed by inadequate accessibility at RiverEast.
Under the settlement, a person may be entitled to receive monetary compensation if he or she was:
- Discouraged from living at RiverEast because of a lack of accessible features;
- Limited in the full use or enjoyment of an apartment or amenity at RiverEast due to a lack of accessible features;
- Financially affected by having to make an apartment at RiverEast more accessible to persons with disabilities;
- Prevented from having visitors because of a lack of accessible features at RiverEast; or
- Otherwise injured by the lack of accessible features or discriminated against on the basis of disability at RiverEast.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-0840 (a TDD line is available at (212) 637-0039), using the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website, http://www.justice.gov/usao/nys/civilrights.html, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York, 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Emily E. Daughtry, Li Yu, and Carina H. Schoenberger are in charge of the case.
U.S. v. RiverEast et al. Consent Order
Longtime Fugitive Who Ran Telemarketing Fraud Scheme That Cost Victims over $16 Million Sentenced to 6½ Years in Federal PrisonRead the Press Release
LOS ANGELES – A former Arizona resident who previously admitted running a “work-at-home” telemarketing fraud scheme that caused thousands of victims to lose more than $16 million has been sentenced to 78 months in federal prison.
Matthew Craig Rubin, 46, who until 2006 resided in Scottsdale, Arizona, was sentenced yesterday afternoon by United States District Judge R. Gary Klausner. In addition to the 6½-year prison term, Judge Klausner ordered Rubin to pay a $16 million judgment obtained for his fraud victims by the Federal Trade Commission.
Matthew Rubin – along with his brother, Andrew Rubin – ran Medicor, LLC, a Van Nuys-based marketing company that deceived customers into believing that the customers could set up home-based medical billing businesses. Matthew Rubin and his brother executed a scheme to defraud consumers who purchased medical billing software, in part by making false claims about customers receiving a list of doctors who needed medical billing services.
Medicor placed advertisements in the “help wanted” section of numerous publications. Generally, the advertisements stated that a person could earn $20 to $40 an hour from home by helping doctors submit medical bills to insurance companies. Between July 1999 and March 2001, Medicor sold more than 30,000 Kwic-Claim Medical Billing Software packages for approximately $400 each, but only 65 people were actually able to successfully bill using Medicor software.
Matthew Rubin also set up National Business Information Systems (NBIS), which functioned solely as a reference for Medicor. Following a script provided by Matthew Rubin, Medicor employees referred potential Medicor customers to NBIS, which existed solely to provide positive references for Medicor.
In September 2005, Matthew Rubin pleaded guilty to two counts of money laundering and one count of witness tamperingadmitting that he laundered the proceeds of a telemarketing fraud scheme through foreign bank accounts. Matthew Rubin also admitted that he persuaded the former controller of his company to lie in the Federal Trade Commission case against him and his company.
In 2006, Andrew Rubin, pleaded guilty to two counts of money laundering related to the telemarketing fraud scheme and, in 2007, was sentenced to three years in prison and three years of supervised release. Two weeks ago, Judge Klausner sentenced Andrew Rubin to another year in prison for violating the terms of his supervised release.
In 2001, the Federal Trade Commission filed a civil lawsuit against Medicor and the Rubins in United States District Court in Los Angeles. During this litigation, Rubin convinced the Medicor controller to lie for him so that he would be excluded from a federal court injunction and asset freeze order. Free from the asset freeze, Rubin wire transferred his fraud proceeds from New Zealand to the U.S. and withdrew $665,000 in $100 bills from his bank account. In 2002, the FTC prevailed in the lawsuit, and a federal judge ordered Medicor and the Rubins to pay more than $16.5 million (see: http://www.ftc.gov/opa/2002/07/medicor.shtm).
In 2006, just before he was to be sentenced in this case, Matthew Rubin was arrested in Arizona on suspicion of committing another fraud. He was released on bond in that case, and he fled to Mexico, where he remained a fugitive for well over five years. With the assistance of the U.S. Postal Inspection Service and the Mexican government, Rubin was returned to the United States last year.
The criminal case against Rubin was investigated by the IRS - Criminal Investigation and the United States Postal Inspection Service.
Release No. 13-079
Lapwai Man Sentenced for Illegally Possessing FirearmRead the Press Release
COEUR D’ALENE – Alex James Ellenwood, 24, of Lapwai, Idaho, was sentenced today in United States District Court in Coeur d’Alene to 40 months in prison for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Ellenwood to serve three years of supervised release and forfeit the firearm he illegally possessed. Ellenwood pleaded guilty to the charge on March 19, 2013.
According to the plea agreement, on September 5, 2012, Ellenwood was arrested at a Clearwater County campground on an outstanding warrant. During a search incident to the arrest, law enforcement found a Ruger .44 pistol in Ellenwood’s backpack. Ellenwood is prohibited from possessing firearms due to his 2008 conviction for assault with a deadly weapon, a felony punishable by a term of imprisonment exceeding one year.
The case was investigated by Nez Perce Tribal Police, Clearwater County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Kissimmee Couple Pleads Guilty to Stealing $2.8 Million from Clients in Medicaid Planning Fraud SchemeRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces that Ross Littlefield (48, Kissimmee) and Linda Littlefield (41, Kissimmee) have each pleaded guilty to one count of conducting a prohibited monetary transaction. They each face a maximum penalty of 10 years in federal prison. The Littlefields were charged by information on April 29, 2013.
According to their plea agreements, Linda Littlefield, a former attorney, formed The Littlefield Law Group, P.A. The law group ultimately matured to specialize in Medicaid planning. In 2007, Ross Littlefield, Linda Littlefield, and others became the new directors of a non-profit organization called the JNN Foundation, Inc. The JNN Foundation established the JNN Special Needs Asset Preservation Pooled Trust. This type of trust can lawfully shelter assets and not affect the beneficiary’s Medicaid or Social Security Income eligibility.
Between 2007 and 2010, Ross and Linda Littlefield induced approximately 26 clients to contribute more than $4.7 million to the JNN Foundation under false pretenses. Once the client funds were received by the foundation, the Littlefields began transferring money to other accounts, which they controlled. They then used the money for their own personal benefit. Specifically, they used client deposits to purchase property, vehicles, and make personal loans to their other business. The deposits received from clients were made under the guise of Medicaid planning. To conceal their scheme, the Littlefields sent false quarterly statements to their clients. The falsified quarterly statements showed the client’s balance, when in fact, the Littlefields did not have the money in the bank accounts to cover all of the clients’ expenses. Consequently, the Littlefields stole $2,897,604.49 from their clients.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney David Haas.
Kewa Pueblo Man Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Cruz Tenorio, 29, a member and resident of Kewa Pueblo, N.M., was sentenced this afternoon to six months in federal prison followed by six months in a half-way house. He will then be on supervised release for a year.
Tenorio pleaded guilty on March 11, 2013, and admitted abusing a three-year-old Indian child in 2011 by negligently tattooing the letter “I” on the child’s arm. Tenorio admitted using rudimentary, homemade instruments, tools and unsterilized materials to tattoo the child, and that he did not take sufficient precautions to prevent possible infection. Tenorio also acknowledged that he had no formal training in the application of tattoo body art when he tattooed the child at his home on Kewa Pueblo.
During today’s sentencing hearing, Tenorio also was ordered to pay restitution in an amount adequate to ensure that the child victim is able to obtain any psychological and medical services necessary arising from the offense, including the removal of the tattoo. Tenorio also is required to pay restitution to cover the costs of removing the tattoos he applied to another victim in March 2012, when the victim was 15 years old.
The case was investigated by the Southern Pueblos Agency of BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Kewa Pueblo Man Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Cruz Tenorio, 29, a member and resident of Kewa Pueblo, N.M., was sentenced this afternoon to six months in federal prison followed by six months in a half-way house. He will then be on supervised release for a year.
Tenorio pleaded guilty on March 11, 2013, and admitted abusing a three-year-old Indian child in 2011 by negligently tattooing the letter “I” on the child’s arm. Tenorio admitted using rudimentary, homemade instruments, tools and unsterilized materials to tattoo the child, and that he did not take sufficient precautions to prevent possible infection. Tenorio also acknowledged that he had no formal training in the application of tattoo body art when he tattooed the child at his home on Kewa Pueblo.
During today’s sentencing hearing, Tenorio also was ordered to pay restitution in an amount adequate to ensure that the child victim is able to obtain any psychological and medical services necessary arising from the offense, including the removal of the tattoo. Tenorio also is required to pay restitution to cover the costs of removing the tattoos he applied to another victim in March 2012, when the victim was 15 years old.
The case was investigated by the Southern Pueblos Agency of BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Kansas Man Sentenced to 19+ Years for Interstate Travel to Have Sex with A ChildRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man has been sentenced to 235 months in federal prison after pleading guilty to interstate travel for the purpose of engaging in sex with a child, U.S. Attorney Barry Grissom said today.
Robert Poe, III, 39, Kansas City, Kan., pleaded guilty to three counts of traveling from Kansas to Missouri for the purpose of engaging in sex acts with a child.
“Protecting children against sexual predators and achieving justice for victims of those crimes are our highest priorities,” said U.S. Attorney Barry Grissom. “In this era of instant communication and interaction in cyberspace the threats to our children continue to grow and evolve.”
During hearings, prosecutors told a federal judge the crimes occurred in 1999 and 2000. They said the investigation began in November 2000 when the Kansas City, Kan., Police Department received a complaint from the mother of a 7-year-old boy. The mother said Poe had engaged in sexual acts with her son. At the time, Poe was a friend of the mother’s boyfriend, Michael Arnett, and Poe sometimes served as a babysitter for the boy. Arnett was charged in a separate federal criminal case, pleaded guilty and was sentenced to 30 years in federal prison.
Prosecutors told the judge that one incident (count one) occurred in April 2000 when Poe was babysitting the boy at Poe’s home. Poe showed the boy photos of nude children and then made the boy perform oral sex on him.
Another incident (count two) occurred in July 2000 when Poe was babysitting. The boy said Poe held a gun to his head and forced him to perform oral sex.
Another incident (count three) occurred in 1999 or 2000. A victim told federal agents that he and his now deceased brother were molested by Poe and Arnett while the victim was between 10 and 12 years old. The victim said he first met Arnett in 1997 when his brother was a patient at the Children’s Mercy Hospital in Kansas City. The victim’s brother had cystic fibrosis and died in May 2003. The victim said Arnett befriended him and his brother. The victim said the molestation started when Arnett’s friend Poe started showing up with Arnett in 1998. The victim said Poe held a gun to his head and forced him to perform oral sex on him. The victim said Poe first molested him at the house of Poe’s father in Shawnee Mission, Kan. The victim said Arnett and Poe took him and his brother out of town on weekend trips and molested both boys. The trips were to St. Louis, Mo., Bennet Springs, Mo., and Oklahoma City, Okla.
Grissom commended the Kansas City, Kan., Police Department, ICE’s Homeland Security Investigations and Assistant U.S. Attorney Kim Martin for their work on the case.
Kansas City Man Sentenced for Sex Trafficking in KansasRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Mo., man has been sentenced to federal prison for sex trafficking, U.S. Attorney Barry Grissom said today.
Tony A Rogers, Jr., 25, Kansas City, Mo., was sentenced to 57 months in prison. Rogers pleaded guilty to one count of interstate transportation of an individual with intent to engage in prostitution. In his plea, he admitted he was arrested Aug. 9, 2012, when the Special Investigations Unit of the Prairie Village Police Department conducted a prostitution sting. An investigator working undercover called a number on an Internet site and arranged for a woman to meet him in Prairie Village, Kan.
At approximately 8 p.m. that day, Rogers and a co-defendant left Independence, Mo., with a woman identified in the indictment as K.C., with the intent that K.C. would engage in prostitution. Police took K.C. into custody when Rogers dropped her off. Rogers and the co-defendant were stopped and arrested after they dropped off K.C.
Co-defendant Danyelle N. Putman pleaded guilty to the same charge as Rogers did. She is set for sentencing June 25.
Grissom commended the Prairie Village Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Kamiah Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
COEUR D'ALENE – Nicholas P. Allman, 22, of Kamiah, Idaho, pleaded guilty today in federal court to one count of involuntary manslaughter, U.S. Attorney Wendy J. Olson announced.
According to statements made in court, on October 28, 2011, Allman and two friends attended an outdoor party outside of Kooskia, Idaho. Witnesses at the party recalled that Allman was drinking alcohol and appeared to be intoxicated. In the early morning hours of October 29, 2011, the men left the party with Allman driving the vehicle. Approximately one hour later, Allman failed to negotiate a turn on Harris Ridge Road. His vehicle left the roadway and rolled down a steep embankment onto U.S. Highway 12 below. The three men were ejected from the vehicle. James Oatman Jr. died during the rollover and was pronounced dead at the scene. Allman’s blood was drawn by police later that morning and it was determined that he was intoxicated, having a blood alcohol level above .08.
The charge of involuntary manslaughter is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for August 26, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation, Idaho State Police, and Nez Perce Tribal Police, with assistance from the Idaho County Sheriff’s Office.
Justice Department Settles Sex Discrimination Lawsuit Against the Town of Griffith, IndianaRead the Press Release
The Justice Department announced today that it has entered into a consent decree with the town of Griffith, Ind. that, if approved by the court, will resolve allegations that the Griffith Police Department discriminated against Sergeant Marlene Starcevich based on her sex in violation of Title VII of the Civil Rights Act of 1964. Title VII prohibits employment discrimination based on race, color, sex, national origin, or religion and retaliation for engaging in protected activity.
The department’s complaint was filed today along with a notice informing the court of the simultaneous filing of a consent decree to resolve the complaint. The complaint alleges that the Griffith Police Department violated Title VII when it failed to assign Starcevich to a shift commander position because of her sex. Starcevich is a 22-year veteran of the Griffith Police Department and the only female officer in the police department’s history. According to the complaint, while the Griffith Police Department routinely assigned its male sergeants to shift commander positions, when a shift commander position became available in July 2010, Griffith denied Starcevich the position because of her sex.
According to the complaint, instead of assigning Starcevich to the open and available shift commander position, the Griffith Police Department promoted a male corporal to sergeant and assigned him as shift commander. The police department did not make Starcevich a shift commander but, instead, placed Starcevich as second-in-command to another male sergeant.
Under the terms of the consent decree, which must still be approved by the U.S. District Court for the Northern District of Indiana, the Griffith Police Department agreed to injunctive relief that prohibits Griffith from denying Starcevich assignments because of her sex, or otherwise unlawfully discriminating against her. The Police Department has already assigned Starcevich to shift commander duties and must also pay her $5,000 in monetary relief. In addition, the town of Griffith must revise its equal employment opportunity policies to protect its employees from discrimination, and conduct training of its personnel regarding these policies.“Gender discrimination in employment of any kind will not be tolerated,” said Jocelyn Samuels, Principal Assistant Attorney General of the Civil Rights Division. “This lawsuit should send a clear message that the department is committed to eliminating and remedying all forms of gender discrimination in the work place and that we will take necessary action to vigorously protect the rights of those in the public sector facing discrimination.”
Additional information about Title VII can be found on the Justice Department website, www.justice.gov/crt/emp , as well as on the Equal Employment Opportunity Commission’s website at www.eeoc.gov.
Justice Department Issues New Guidelines for Payment of<br /> Attorneys’ Fees, Expenses, in Large Chapter 11 Bankruptcy CasesRead the Press Release
The Department of Justice today announced new guidelines for the payment of attorneys’ fees and expenses in large chapter 11 bankruptcy cases in order to enhance disclosure and transparency in the compensation process and to help ensure that attorneys’ fees and expenses are based on market rates. The guidelines, which will go into effect on Nov. 1, 2013, were developed by the U.S. Trustee Program (USTP), the component of the department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
“The costs of bankruptcy fall on the creditors and employees of the debtor companies,” said Acting Associate Attorney General Tony West. “At a time when both the public and the most sophisticated participants in the bankruptcy process say bankruptcy attorneys’ costs are rising too rapidly, these guidelines are designed to ensure that statutory requirements limiting bankruptcy fees to market rates – not premium rates – are followed.”
The Bankruptcy Code allows professionals who provide services during a chapter 11 case to be compensated from funds of the debtor company if statutory requirements are met and the bankruptcy court approves payment. Reviewing and, where appropriate, objecting to professionals’ applications for fees and expenses is a statutory duty of the USTP. The guidelines explain the criteria that U.S. Trustees use in reviewing and objecting to those applications. They do not supersede statutes, rules or court orders.
The update to the guidelines takes into account the significant changes that have occurred in the legal industry as well as the increasing complexity of business bankruptcy reorganization cases. The guidelines were originally issued in 1996 and are being updated in phases; the first phase, announced today, governs the USTP’s review of fees and expenses requested by attorneys in chapter 11 cases with $50 million or more in assets and $50 million or more in liabilities. Although the guidelines are not subject to the notice and comment process of the Administrative Procedure Act, the USTP nevertheless modified earlier drafts of the guidelines after two public comment periods and a public meeting.“We were pleased by the many helpful suggestions we received as we drafted the guidelines,” said Clifford J. White III, Director of the Executive Office for U.S. Trustees. “The U.S. Trustee Program went to great lengths to solicit public input while developing the updated guidelines, reviewing and incorporating suggestions from academics, attorneys and other participants in the bankruptcy system.”
The guidelines require a showing that the rates charged reflect market rates outside of bankruptcy.The guidelines also provide for the:
• Use of budgets and staffing plans;
• Disclosure of rate increases that occur during the representation;
• Use of rates that are based on the attorney’s home office location;
• Submission of billing records in an open, searchable electronic format;
• Use of independent fee committees and fee examiners; and
• Use of model forms and templates for applications for compensation and expenses.The updated guidelines apply to attorneys’ fees and expenses in cases filed on or after Nov. 1, 2013, that meet the large case threshold. Until the USTP adopts additional superseding guidelines in the next phases of revisions, the 1996 guidelines will continue in effect for the review of fee applications filed in larger chapter 11 cases by professionals who are not attorneys; in all chapter 11 cases below the large case threshold; and in cases under other chapters of the Bankruptcy Code.
USTP attorneys in districts throughout the country will vigorously enforce the guidelines, defending them in bankruptcy court and through appeals as appropriate. The USTP also will educate bankruptcy attorneys regarding the guidelines and encourage bankruptcy courts to incorporate the guidelines in their local rules of bankruptcy procedure, as many have done with the 1996 guidelines.
The guidelines and explanatory materials are posted at www.justice.gov/ust.Justice Department Issues New Guidelines for Payment of Attorneys’ Fees, Expenses, in Large Chapter 11 Bankruptcy CasesRead the Press Release
New Guidelines Enhance Disclosure and Transparency in Bankruptcy Compensation Process
and Ensure Attorneys’ Fees are Based on Market RatesWASHINGTON — The Department of Justice today announced new guidelines for the payment of attorneys’ fees and expenses in large chapter 11 bankruptcy cases in order to enhance disclosure and transparency in the compensation process and to help ensure that attorneys’ fees and expenses are based on market rates. The guidelines, which will go into effect on Nov. 1, 2013, were developed by the U.S. Trustee Program (USTP), the component of the department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
“The costs of bankruptcy fall on the creditors and employees of the debtor companies,” said Acting Associate Attorney General Tony West. “At a time when both the public and the most sophisticated participants in the bankruptcy process say bankruptcy attorneys’ costs are rising too rapidly, these guidelines are designed to ensure that statutory requirements limiting bankruptcy fees to market rates – not premium rates – are followed.”
The Bankruptcy Code allows professionals who provide services during a chapter 11 case to be compensated from funds of the debtor company if statutory requirements are met and the bankruptcy court approves payment. Reviewing and, where appropriate, objecting to professionals’ applications for fees and expenses is a statutory duty of the USTP. The guidelines explain the criteria that U.S. Trustees use in reviewing and objecting to those applications. They do not supersede statutes, rules or court orders.
The update to the guidelines takes into account the significant changes that have occurred in the legal industry as well as the increasing complexity of business bankruptcy reorganization cases. The guidelines were originally issued in 1996 and are being updated in phases; the first phase, announced today, governs the USTP’s review of fees and expenses requested by attorneys in chapter 11 cases with $50 million or more in assets and $50 million or more in liabilities. Although the guidelines are not subject to the notice and comment process of the Administrative Procedure Act, the USTP nevertheless modified earlier drafts of the guidelines after two public comment periods and a public meeting.
“We were pleased by the many helpful suggestions we received as we drafted the guidelines,” said Clifford J. White III, Director of the Executive Office for U.S. Trustees. “The U.S. Trustee Program went to great lengths to solicit public input while developing the updated guidelines, reviewing and incorporating suggestions from academics, attorneys and other participants in the bankruptcy system.”
The guidelines require a showing that the rates charged reflect market rates outside of bankruptcy. The guidelines also provide for the:
- Use of budgets and staffing plans;
- Disclosure of rate increases that occur during the representation;
- Use of rates that are based on the attorney’s home office location;
- Submission of billing records in an open, searchable electronic format;
- Use of independent fee committees and fee examiners; and
- Use of model forms and templates for applications for compensation and expenses.
The updated guidelines apply to attorneys’ fees and expenses in cases filed on or after Nov. 1, 2013, that meet the large case threshold. Until the USTP adopts additional superseding guidelines in the next phases of revisions, the 1996 guidelines will continue in effect for the review of fee applications filed in larger chapter 11 cases by professionals who are not attorneys; in all chapter 11 cases below the large case threshold; and in cases under other chapters of the Bankruptcy Code.
USTP attorneys in districts throughout the country will vigorously enforce the guidelines, defending them in bankruptcy court and through appeals as appropriate. The USTP also will educate bankruptcy attorneys regarding the guidelines and encourage bankruptcy courts to incorporate the guidelines in their local rules of bankruptcy procedure, as many have done with the 1996 guidelines.
The guidelines and explanatory materials are posted at www.justice.gov/ust.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411To view the Guidelines and other informational material, click here.
Johnson City Physician Sentenced to Serve Two Years in Prison for Unapproved Foreign DrugsRead the Press Release
GREENEVILLE, Tenn. – William Ralph Kincaid, 68, of Johnson City, Tenn., was sentenced on June 10, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 24 months in federal prison.
Kincaid pleaded guilty in December 2012, to receiving misbranded drugs with intent to defraud or mislead in violation of the Food, Drug and Cosmetics Act. Kincaid faced a term of up to three years in prison and fines of up to $250,000.
As set out in his plea agreement, Kincaid was a physician and managing partner for East Tennessee Hematology-Oncology Associates, P.C., doing business as McLeod Cancer and Blood Center, Johnson City, Tennessee (McLeod Cancer), a professional corporation providing care and treatment for patients with cancer and blood diseases. McLeod Cancer purchased large amounts of prescription drugs, to include chemotherapy drugs, which were administered through the clinic; McLeod Cancer then sought reimbursement through the Medicare and Medicaid/TennCare programs as well as other health benefits programs.
Beginning in 2007, McLeod Cancer began obtaining drugs from a Canadian business, Quality Specialty Products (QSP). The drugs had been obtained from foreign sources and had not been approved by the U.S. Food and Drug Administration (FDA) for distribution or use in the United States. The FDA has responsibility for enforcing the Food, Drug and Cosmetics Act to ensure the health and safety of the American public. The safety and efficacy of drugs is protected by requiring that any manufacturer or distributor of drugs in the United States be registered with and approved by the FDA. Drugs with labeling in a language other than English or from foreign sources not registered with the FDA are considered “misbranded.” Further, the FDA regulates the distribution of drugs to ensure they are handled properly so as not to lose their efficacy (such as becoming too hot or cold).
After nurses at McLeod Cancer raised concerns in late 2007 and early 2008 about chemotherapy drugs with foreign labeling, the clinic stopped ordering drugs from QSP. However, in August 2009, Kincaid and Michael Combs, McLeod Cancer’s business manager, met with a QSP representative and began ordering misbranded unapproved drugs. Dr, Kincaid directed Combs to have the drugs shipped to a storage business in Johnson City which Dr. Kincaid owned in part. The drugs, after having been received at the storage business, were transported to Combs' office at McLeod Cancer and then placed by a pharmacy technician into the clinic's drug storage and control system where the misbranded drugs were mingled with FDA-approved drugs from legitimate sources. FDA-approved drugs obtained from legitimate U.S. drug manufacturers and distributors were still shipped directly to McLeod Cancer and not to the storage business.
McLeod Cancer obtained misbranded unapproved drugs, to include the drugs ABRAXANE®, ALIMTA®, AVASTIN®, ELOXATIN®, GEMZAR®, HERCEPTIN®, RITUXAN®/MABTHERA®, TAXOTERE®, and ZOMETA®, from approximately September 2007 to early 2008 and from August 2009 to February 2012, purchasing over $2 million in misbranded unapproved drugs, providing those drugs to their patients, and billing Medicare, TennCare, and other government health benefits programs approximately $2.3 million for the unapproved drugs.
In imposing sentence, Judge Greer stated “it was about greed” and the “motivation was to make more money.” Judge Greer acknowledged that while it was impossible to know which patients had received the unapproved drugs, the “emotional harm” to patients from not knowing whether they had received unapproved drugs contributed to the seriousness of the offense.
Kincaid, through his attorney, advised Judge Greer that he had entered into an agreement with the United States and the State of Tennessee to pay $2.55 million in settlement of civil claims under the False Claims Act for false and fraudulent claims for reimbursement submitted to the Medicare and TennCare programs for unapproved drugs. Kincaid also made an initial payment of $500,000 pursuant to the settlement agreement.
Judge Greer allowed Kincaid to remain on bond pending designation of an institution for service of sentence by the U.S. Bureau of Prisons.
“This conviction sends a message to all medical providers and practitioners that federal criminal penalties await those who distribute misbranded and potentially unsafe drugs, especially those used in cancer treatment. The FDA's regulatory system is designed to protect patients from substances such as these." said U.S. Attorney William C. Killian.
“The FDA's Office of Criminal Investigations is committed to protecting the public health by aggressively pursuing unscrupulous medical practitioners who jeopardize their patients' safety with unapproved medications," said John Roth, Director of FDA’s Office of Criminal Investigations. “The FDA applauds the hard work of the U.S. Attorney's Office, the Federal Bureau of Investigation, and the Tennessee Bureau of Investigation in bringing about this successful result."
Agencies involved in this investigation included Food & Drug Administration Office of Criminal Investigation, Federal Bureau of Investigation, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Neil Smith represented the United States.
Isleta Pueblo Man Pleads Guilty to Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – James Anzara, 34, a member and resident of the Isleta Pueblo, N.M., pleaded guilty this afternoon to an indictment charging him with involuntary manslaughter. Anzara’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Acting Police Chief Kevin Mariano of the Pueblo of Isleta Police Department.
During today’s plea hearing, Anzara admitted killing a man while driving while under the influence of alcohol on Iselta Pueblo on Apr, 21, 2012. Anzara also acknowledged his blood alcohol concentration was .08 grams or higher within three hours after he killed the victim.
At sentencing, which has yet to be scheduled, Anzara faces a maximum penalty of egiht years of imprisonment to be followed by a term of supervised release to be determined by the court.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Isleta Police Department, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Irving Spotted Eagle, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in
Great Falls, on June 10, 2013, before U.S. Magistrate Judge Dana L. Christensen, IRVING SPOTTED EAGLE, JR., a 27-year-old resident of Billings and an enrolled member of the Blackfeet Tribe of Indians, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for September 26, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On November 12, 2011, SPOTTED EAGLE was so angry that S.T. would not return his amorous advances that he pinned her against a wall in his house and repeatedly punched her until his knuckles started to bleed. As she tried to flee the house, SPOTTED EAGLE grabbed S.T. by the hair and continued assaulting her. He did not stop until a neighbor began yelling at him to stop. S.T. was transported to the hospital, where she was treated for a concussion, nasal bone fracture, and blunt force trauma to her face.
The assault occurred within the exterior boundaries of the Blackfeet Indian Reservation.
SPOTTED EAGLE faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Blackfeet Law Enforcement.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 11, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
JOSHUA DAVID CARRENO, a 29-year-old resident of Shepherd, appeared on charges of possession with the intent to distribute prescription drugs and possession of stolen firearms. He is currently detained. If convicted of these charges, CARRENO faces possible penalties of 20 years in prison, a $1,000,000 fine, and 3 years supervised release. Assistant U.S. Attorney Brendan P. McCarthy is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration.
ARIK ALAN MACBLANE, a 33-year-old resident of Glendive, appeared on a charge of conspiracy to possess with the intent to distribute methamphetamine. He is currently detained. If convicted of this charge, MACBLANE faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $4,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Jessica T. Fehr is the prosecutor for the United States. The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
ADAM RONALD TOTTEN, a 34-year-old resident of Billings, appeared on a charge of possession of stolen mail. He is currently detained. If convicted of this charge, TOTTEN faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Jessica T. Fehr is the prosecutor for the United States. The investigation was conducted by the U.S. Postal Inspector Service.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 11, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
JESS JAMES RUTHERFORD, JR., a resident of Browning, appeared on a charge of assault resulting in serious bodily injury. He is currently detained. If convicted of this charge, RUTHERFORD faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
DUSTIN JAY AFTER BUFFALO, age 21, and MICHAEL THOMAS BAD OLD MAN, age 21, residents of Browning, appeared on a charge of burglary. They are currently detained. If convicted of these charges, they each face possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Indian Affairs and the Blackfeet Law Enforcement Services.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on June 11, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
IRENE PASTER, age 66, and YOLANDA PASTER, age 41, residents of Big Sky, appeared on charges of conspiracy to structure currency transactions with domestic financial institutions for the purpose of evading IRS currency transaction reports and currency structuring. They are currently released on special conditions. If convicted of these charges, they each face possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release on each count. Assistant U.S. Attorney Chad C. Spraker is the prosecutor for the United States. The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 6, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
MICHAEL CONNELLY, SR., a 56-year-old resident of Browning, appeared on charges of sexual abuse, deprivation of rights under color of law, and making a false statement to a federal officer. He is currently released on special conditions. If convicted of these charges, CONNELLY faces possible penalties of life in prison for the sexual abuse count, 1 year in prison for the deprivation of rights under color of law count, and 8 years in prison for the false statement to a federal officer count. He also faces a $250,000 fine and lifetime supervision. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Goodwin Unveils Report and Recommendations on Safe SchoolsRead the Press Release
U.S. Attorney also debuts video for young people on the dangers of prescription drug abuse
CHARLESTON, W.Va. – United States Attorney Booth Goodwin today unveiled a comprehensive report and a set of recommendations resulting from the Summit on West Virginia Safe Schools that was held in February. The report was officially announced during the West Virginia Department of Education Office of Healthy Schools 2013 KidStrong Conference held today at theCharleston Civic Center.
Goodwin convened the statewide Summit on Feb 6, 2013. It brought together educators, law enforcement professionals, parents, mental health professionals, government officials and students to exchange ideas and develop practical steps to prevent and prepare for school violence.
U.S. Attorney Booth Goodwin said, “Last December’s horrific mass murder at Sandy Hook Elementary School in Newtown, Connecticut, was an unthinkable national tragedy. It was also an urgent call to action on the issue of school safety.”
“This report summarizes the Summit’s most critical lessons. It begins with an immediate agenda for West Virginia safe schools: ten things that we must get to work on right now if we want to make our schools safer,” Goodwin said.
“We owe it to our children and our educators to do everything in our power to keep our schools safe. Anything less is unacceptable,” Goodwin continued.
The report features an agenda of ten items for preparedness and response that should be implemented as soon as possible: 1) Establish a single, locked point of entry for every school, where a school official can see and identify would-be visitors before they enter. 2) Install classroom doors that lock quickly from inside the classroom – or keep doors locked all the time. 3) Install emergency buttons that sound a school-wide alarm and automatically call the police. 4) Explore the use of shatter-resistant materials on glass windows and door panels in schools (a requirement that the West Virginia School Building Authority recently adopted for all new schools built in the state). 5) Establish a Prevention Resource Officer Corps to place more law enforcement officers---including retired police officers and military veterans---in schools as prevention resource officers. 6) Bring together local police and educators to develop closer ties between law enforcement and schools. 7) Conduct active-shooter drills in every school at least annually, with full participation from law enforcement. 8) Develop a statewide program to identify potentially violent students early and intervene immediately. 9) Introduce a proven anti-bullying program in every school. 10) Implement a communication system to immediately disseminate information about violent or disruptive incidents to parents, other schools and child care facilities.
The report also features a section that focuses on preventing violence. The report’s prevention strategies include developing a concerted effort to address bullying; identifying and intervening with troubled children early; placing a greater emphasis on school climate; developing a system to comprehensively collect information about students with behavior issues; and expanding the number and role of school counselors and prevention resource officers.
In addition to unveiling the school safety report, Goodwin debuted a newly created video on prescription drug abuse. The video, developed through a partnership between the U.S. Attorney’s Office for the Southern District of West Virginia and the Huntington Police Department, and funded by a grant from the West Virginia Division of Justice and Community Services, is designed as an educational tool for young people to illustrate the harmful effects of abusing prescription drugs.
Click here to view the Report and Recommendations on West Virginia Safe Schools
Gang Member Pleads Guilty to Nuestra Familia RICO ChargesRead the Press Release
OAKLAND – United States Attorney Melinda Haag announced the guilty plea of Elias Gonzalez in a Nuestra Familia racketeering case.
Elias Gonzalez, a/k/a “Hammer”, 30, of Mabton, Washington, pleaded guilty on June 7, 2013, to conspiring to conduct the affairs of a racketeering enterprise, Nuestra Familia, in violation of Title 18, United States Code, Section 1962(d). According to court documents, Nuestra Familia is a violent Latino prison gang based within the California and Federal prison systems whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime.
In his guilty plea, Gonzalez admitted that since 2005, he was a member of a Norteño gang in Yakima, Washington, and operated under the direction of members of Nuestra Familia in the Northern District of California. As part of his participation in the racketeering conspiracy, Gonzalez moved portions of the proceeds of his drug trafficking to Nuestra Familia members’ prison accounts. Gonzalez admitted that the racketeering conspiracy involved acts of violence, including assault and murder, against rival gang members and others who defied or betrayed Nuestra Familia, such as individuals who cooperated with law enforcement. The maximum penalties for his crimes include life in prison and $250,000 in fines.
This case is part of Operation Red Dawn, an investigation targeting members and associates of Nuestra Familia,. Operation Red Dawn is an investigation by the FBI’s Safe Streets East Bay Task Force, the Oakland Police Department, the Red Bluff Police Department, the Campbell Police Department, the San Jose Police Department, the Livermore Police Department, and the Special Services Unit of the California Department of Corrections and Rehabilitation. The case is being prosecuted by the Strike Force and Violent Crimes Unit of the United States Attorney’s Office.
Gonzalez is the third of the eleven defendants in this case to plead guilty. On April 5, 2013, Peter Cuen, a/k/a “Mijo,” and Peggy Larez also pleaded guilty to conspiring to conduct the affairs of Nuestra Familia, in violation of Title 18, United States Code, Section 1962(d). Cuen pleaded guilty to an additional charge of possession of a firearm in furtherance of that conspiracy, in violation of Title 18, United States Code, Section 924(c). Sentencing for Cuen and Larez is scheduled for August 22, 2013, while sentencing for Gonzalez is scheduled for September 19, 2013.
Franklin Troy Caplette Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 10, 2013, before Chief U.S. District Judge Dana L. Christensen, FRANKLIN TROY CAPLETTE, a 28-year-old resident of Havre, was sentenced to a term of:
Prison: 62 months
Special Assessment: $100
Supervised Release: 4 years
CAPLETTE was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
CAPLETTE had been known throughout the Rocky Boy's and Havre communities to be a source of methamphetamine for the past several years. Law enforcement began their investigation into CAPLETTE in 2010.
Several witnesses would have testified that they purchased methamphetamine numerous times from CAPLETTE between 2010 and August 2012.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CAPLETTE will likely serve all of the time imposed by the court. In the federal system, CAPLETTE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Havre Police Department.
Former VA Hospital Federal Credit Union President Pleads Guilty to an Information Charging EmbezzlementRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Brian T. Marr, Special Agent in Charge of the United States Secret Service Little Rock Field Office, announced the waiver of Indictment and a plea of guilty by Former VA Hospital Federal Credit Union President Karen York, age 45, to a federal Information charging credit union embezzlement.
At the change of plea hearing, the defendant admitted that she engaged in a check kiting scheme and made false deposit entries to her account, and subsequently, falsified records to hide the fact that funds were missing from the VA Hospital Federal Credit Union. The defendant also admitted to using VA Hospital Federal Credit Union funds for an unauthorized pay increase and unreimbursed health insurance. An audit from December 2000 through June 2012 determined a fraud loss of $62,513.09 attributed to the defendant, but the defendant repaid a portion of that loss on the day she was suspended. The parties agreed that the defendant owes restitution in the amount of $43,940.59.
The statutory penalty for credit union embezzlement, in violation of 18 U.S.C. § 657, is not more than 30 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not more than 5 years supervised release.
The investigation was conducted by the United States Secret Service.
(York Information )
Former U.S. Corrections Officer Sentenced for Theft of Government PropertyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former correctional officer at the United States Penitentiary-Lewisburg was sentenced today in Williamsport by U.S. District Court Judge Christopher C. Conner to 12 months’ probation for the theft of government property. The Court ordered restitution in the amount of $1,545.76, which represented the cost of the materials.
According to United States Attorney Peter J. Smith, a criminal Information was filed in January 2013 charging Fred Hagenbuch, age 52, of Danville, with theft of government property. The property stolen was from the Federal Corrections Complex at Allenwood and included electrical conduit, fence post, and mesh fencing. At the time of the theft in December 2010, Hagenbuch was employed as a Senior Officer Specialist at the Lewisburg Penitentiary.
Hagenbuch pleaded guilty in February 2013.
The case was investigated by the U.S. Department of Justice’s Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney William Simmers.
Former Suburban Police Chief and Husband Charged with Hiding Business Income and $500,000 from State Grant in False Tax ReturnsRead the Press Release
CHICAGO — REGINA EVANS and her husband, RONALD EVANS, the former police chief and the former inspector general, respectively, of suburban Country Club Hills, were each charged today with three counts of filing false federal income tax returns for allegedly failing to report all of their income during calendar years 2007-09. They were charged in a felony information filed today in U.S. District Court in Chicago.
Regina Evans’ attorney has authorized the government to disclose that she will be pleading guilty to the tax charges after the government files a request to transfer the case against her to the Central District of Illinois in Springfield for disposition. Regina Evans, 50, who was Country Club Hills police chief from 2009 to 2011, and Ronald Evans, 46, are scheduled to appear in U.S. District Court in Springfield on June 18.
The defendants were charged with failing to report all of their income in 2009, when they allegedly converted to personal income more than $500,000 of a $1.25 million state grant. They also allegedly failed to report all of their income in 2007, 2008, and 2009 from Prime Time Limousine, a Chicago transportation and security services company that they jointly owned and operated.
According to the charging document, Regina Evans founded and ran an organization called We Are Our Brother’s Keeper that, in 2009, received a $1.25 million employment opportunities grant from the Illinois Department of Commerce and Economic Opportunity to provide pre-apprenticeship educational and vocational training for people employed in building trades, such as bricklayers and electricians. The couple allegedly used more than $500,000 for non-grant-related personal purposes, making that money personal income.
On their federal income tax return for 2009, the couple stated that Prime Time’s gross receipts were approximately $150,000, knowing that its gross receipts totaled more than $201,297. They also allegedly stated that they did not have any other income, knowing that they had converted at least $500,000 in grant money.
In 2007, the defendants allegedly filed a false tax return by reporting Prime Time’s gross receipts were approximately $205,290, when the business actually had gross receipts totaling more than $360,649, and they allegedly filed a false 2008 tax return stating Prime Time’s gross receipts were approximately $150,630, when it actually had gross receipts of more than $291,414.
The charges were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The Chicago Office of the Federal Bureau of Investigation participated in the investigation.
Filing a false federal income tax return carries a maximum penalty of three years in prison and a $250,000 fine. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. If convicted, the Court must determine a reasonable sentence to be imposed under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Joel Hammerman.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Former IRS Worker Sentenced for Extortion and Tax FraudRead the Press Release
PHILADELPHIA - Former Internal Revenue Service employee Patricia Fountain, 36, of Philadelphia, was sentenced today to 19 years in prison for a series of tax refund schemes that defrauded the U.S. Government. Fountain was convicted on March 13, 2013, along with co-defendants Larry Ishmael, and Calvin Johnson, Jr., also of Philadelphia, who are awaiting sentencing. A federal jury found each of the three defendants guilty of multiple counts of both conspiracy and filing false claims/tax returns to the IRS. For abusing her public office, Fountain was also found guilty of extortion under color of official right. Collectively, the defendants’ schemes cost the IRS well over $3 million. U.S. District Court Judge Stewart Dalzell also ordered Fountain to pay restitution in the amount of $1.7 million, a $1,300 special assessment, and ordered three years of supervised release.
“Our system of government is based upon a tax system which requires truthful disclosure by taxpayers of the amounts due to the IRS,” said Memeger. “When individuals defraud the system to avoid their obligation to pay taxes or steal money from the United States Treasury, the rest of the tax paying public bears the cost. Today’s sentence sends a strong message to deter this type of criminal behavior. We will continue to prosecute tax cheats to the fullest extent of the law, particularly those government employees who abuse the public trust and tarnish the reputation of honest and hard-working federal employees.”
“Federal employees must not use their positions of public trust for private gain, especially those employees who are entrusted with the fair and honest administration of our Nation’s tax laws,” said J. Russell George, the Treasury Inspector General for Tax Administration. “In safeguarding the integrity of the Federal system of tax administration, TIGTA will vigorously investigate allegations of corruption and ensure that those responsible for misconduct are held accountable.”
“At the IRS, protecting taxpayer money is a matter we take extremely seriously,” said Internal Revenue Service Criminal Investigation Special Agent-in-Charge Akeia Conner. “The defendants who perpetrated this scheme systematically defrauded the government and the taxpaying public. Today's sentencing of Patricia Fountain and prior sentencings of her co-defendants Calvin Johnson Sr., William S. Martin, and Andre Bruce demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers.”
Each of the defendants solicited claimants whose personal information the defendants used to file false tax returns claiming the Telephone Excise Tax Refund (TETR) in 2007 and the First Time Homebuyer Credit in 2009. Fountain also claimed the TETR by filing false tax returns for herself and for Ishmael, and used one of the claimant’s information to file a false tax return in 2008. Fountain also filed false claims claiming the American Opportunity Tax Credit between 2010 and 2012. Johnson, Jr. also used claimants’ information to file false tax returns in 2012, including while he was being supervised on pretrial release in this case.For each of the schemes, the defendants charged claimants a cash fee. With respect to her TETR scheme, which Fountain engineered using inside information from the IRS, Fountain warned that she would “red flag” those claimants who received a refund without paying her $400 fee. She then filed amended returns for certain claimants whom she believed had not paid the fee, causing the IRS to demand repayment from them. Fountain and Ishmael pooled their cash fees for their mutual use, including an $11,299 down payment on a Mercedes Benz R350, which Fountain structured by paying $9,900 in cash and charging the rest to a credit card.
Johnson’s sentencing hearing is scheduled for June 18, 2013 and Ishmael’s sentencing hearing is scheduled for July 26, 2013. Pending sentencing, Ishmael and Johnson Jr. are being detained in federal custody. Judge Dalzell previously sentenced co-defendants Andre Bruce, Howard Chilsom, William Martin, and Calvin Johnson, Sr. in April 2013.
The case was investigated by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Joe Khan and Department of Justice, Tax Division Trial Attorney Tiwana L. Wright.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Hertford County, N.C., Chief Deputy Pleads Guilty for Assault on InmateRead the Press Release
The Justice Department announced today that Timothy Lassiter, the former chief deputy of the Hertford County, N.C., Sheriff’s Office, pleaded guilty today in federal court in Elizabeth City, N.C., to violating the civil rights of an inmate during a court appearance.
According to information presented to the court, on June 12, 2012, the inmate created a verbal disturbance during a court appearance. After removing the inmate from the courtroom, Lassiter repeatedly and unjustifiably punched the inmate in his face and body at a time when the inmate was handcuffed and posed no threat to law enforcement. The inmate was injured as a result of the assault.
“The Civil Rights Division of the Department of Justice works to ensure that no law enforcement officer abuses his power to assault a person in his custody,” said Deputy Assistant Attorney General for Civil Rights Roy L. Austin Jr. “This assault by a sheriff’s deputy which started in a courtroom – the very place where the constitutional rights of all Americans, including those accused of crimes, are applied and enforced on a daily basis. This plea demonstrates that the department will vigorously defend the integrity of our legal system.”
U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker stated, “This deputy’s deliberate abuse of authority undermines the efforts of the vast majority of law enforcement officers who honor their oath to uphold the law.”
“Every citizen has the right to expect law enforcement officers to act legally and in accordance with the Constitution. Former Chief Deputy Timothy Lassiter's actions were inexcusable. The charges against him should serve as a reminder that no one is above the law,” said John Strong, the Special Agent in Charge of the Charlotte Division of the FBI.
Lassiter pleaded guilty to one count of deprivation of rights under color of law. He faces a statutory maximum sentence of 10 years in prison. A sentencing hearing has been scheduled for Sept. 9, 2013.
This case was investigated by the FBI and prosecuted by Civil Rights Division Trial Attorney Betsy Biffl and Assistant U.S. Attorney for the Eastern District of North Carolina Toby Lathan.
Former Congressman Richard G. Renzi Convicted of <br /> Extortion and Bribery in Illegal Federal Land SwapRead the Press Release
A former U.S. Congressman and a real-estate investor were convicted today by a federal jury in Tucson, Ariz., of conspiring together to extort and bribe individuals seeking a federal land exchange, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney John Leonardo of the District of Arizona and Special Agent in Charge Douglas F. Price of the FBI’s Phoenix Division.
Richard G. Renzi, 55, of Burke, Va., was found guilty of 17 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right, racketeering, money laundering and making false statements to insurance regulators.
James W. Sandlin, 62, of Sherman, Texas, was found guilty of 13 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right and money laundering.
Sentencing is set before U. S. District Judge David C. Bury on Aug. 19, 2013.
“Former Congressman Renzi’s streak of criminal activity was a betrayal of the public trust and abuse of the political process,” said Acting Assistant Attorney General Raman. “After years of misconduct as a businessman, political candidate and member of Congress, Mr. Renzi now faces the consequences for breaking the laws that he took an oath to support and defend.”
“Our democracy is undermined whenever our elected officials misuse the power entrusted to them by the voters to serve their own private interests rather than in the service of the public interest,” said U.S. Attorney Leonardo. “The jury’s verdict reinforces the fundamental principle that our society is governed by the rule of law, and that no citizen, including the most influential and powerful among us, is above the law.”
“Today's conviction is a culmination of the investigative efforts of the FBI and IRS-Criminal Investigation over a period of several years,” said FBI Special Agent in Charge Price. “Public corruption is one of the top criminal priorities of the FBI, and it is imperative that elected public officials be held accountable to uphold the public's trust. The FBI remains committed to this criminal priority in combating public corruption at all levels.”
According to evidence at trial, Renzi, then a member of Congress from Arizona’s 1st Congressional District, promised in 2005 to use his legislative influence to profit from a federal land exchange that involved property owned by Sandlin, a real-estate investor.
At the time, Sandlin owed Renzi $700,000 in future payments from their business dealings, and Renzi threatened a proponent of the land exchange that he would not support it unless they purchased Sandlin’s property in Cochise County, Ariz. When that individual refused, Renzi promised a second proponent of a land exchange that he would support the exchange if they purchased Sandlin’s property. According to an agreement reached in May 2005, Sandlin was paid $1 million in earnest money, out of which he paid $200,000 to Renzi. Just before Sandlin received the $1.6 million balance owed on the exchange, he paid an additional $533,000 to Renzi.
Evidence at trial further showed that from 2001 to 2003, Renzi engaged in insurance fraud by diverting his clients’ insurance premiums to fund his first campaign for Congress, and he provided false statements to various state regulators who were investigating his activities.
Renzi was indicted in February 2008, and in October 2008, Renzi moved to dismiss the indictment under his rights as a member of Congress under the Speech or Debate Clause. The court denied his motion in February 2010, and Renzi pursued an interlocutory appeal. After Renzi’s appeal was unsuccessful, trial was set for May 2013.
Honest services wire fraud, extortion under color of official right, concealment money laundering and racketeering each carry maximum penalties of 20 years in prison. Conspiracy carries a maximum penalty of five years in prison, and making false statements to insurance regulators and transactional money laundering each carry maximum penalties of 10 years in prison.
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Trial Attorneys David Harbach and Sean Mulryne of the Department of Justice’s Public Integrity Section and Assistant U.S. Attorneys Gary Restaino and James Knapp of the District of Arizona.
Former Congressman Richard G. Renzi Convicted of Extortion and Bribery in Illegal Federal Land SwapRead the Press Release
Office of the United States Attorney, John S. Leonardo
District of Arizona
CRM
(202) 514-2007
TTY (866) 544-5309
WWW.JUSTICE.GOVWASHINGTON – A former U.S. Congressman and a real-estate investor were convicted today by a federal jury in Tucson, Ariz., of conspiring together to extort and bribe individuals seeking a federal land exchange, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney John Leonardo of the District of Arizona.
Richard G. Renzi, 55, of Burke, Va., was found guilty of 17 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right, racketeering, money laundering and making false statements to insurance regulators.
James W. Sandlin, 62, of Sherman, Texas, was found guilty of 13 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right and money laundering.
Sentencing is set before U. S. District Judge David C. Bury on August 19, 2013.
“Former Congressman Renzi’s streak of criminal activity was a betrayal of the public trust and abuse of the political process,” said Acting Assistant Attorney General Raman. “After years of misconduct as a businessman, political candidate and member of Congress, Mr. Renzi now faces the consequences for breaking the laws that he took an oath to support and defend.”
U.S. Attorney John Leonardo stated, “Our democracy is undermined whenever our elected officials misuse the power entrusted to them by the voters to serve their own private interests rather than in the service of the public interest. The jury’s verdict reinforces the fundamental principle that our society is governed by the rule of law, and that no citizen, including the most influential and powerful among us, is above the law.”
FBI Special Agent in Charge Douglas G. Price stated, “Today’s conviction is a culmination of the investigative efforts of the FBI and IRS-Criminal Investigation over a period of several years. Public corruption is one of the top criminal priorities of the FBI, and it is imperative that elected public officials be held accountable to uphold the public’s trust. The FBI remains committed to this criminal priority in combating public corruption at all levels.”
According to evidence at trial, Renzi, then a member of Congress from Arizona’s 1st Congressional District, promised in 2005 to use his legislative influence to profit from a federal land exchange that involved property owned by Sandlin, a real-estate investor.At the time, Sandlin owed Renzi $700,000 in future payments from their business dealings, and Renzi threatened a proponent of the land exchange that he would not support it unless they purchased Sandlin’s property in Cochise County, Ariz. When that individual refused, Renzi promised a second proponent of a land exchange that he would support the exchange if they purchased Sandlin’s property. According to an agreement reached in May 2005, Sandlin was paid $1 million in earnest money, out of which he paid $200,000 to Renzi. Just before Sandlin received the $1.6 million balance owed on the exchange, he paid an additional $533,000 to Renzi.
Evidence at trial further showed that from 2001 to 2003, Renzi engaged in insurance fraud by diverting his clients’ insurance premiums to fund his first campaign for Congress, and he provided false statements to various state regulators who were investigating his activities.
Renzi was indicted in February 2008, and in October 2008, Renzi moved to dismiss the indictment under his rights as a member of Congress under the Speech or Debate Clause. The court denied his motion in February 2010, and Renzi pursued an interlocutory appeal. After Renzi’s appeal was unsuccessful, trial was set for May 2013.
Honest services wire fraud, extortion under color of official right, concealment money laundering and racketeering each carry maximum penalties of 20 years in prison. Conspiracy carries a maximum penalty of five years in prison, and making false statements to insurance regulators and transactional money laundering each carry maximum penalties of 10 years in prison.
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Assistant U.S. Attorneys Gary Restaino and James Knapp of the District of Arizona and Trial Attorneys David Harbach and Sean Mulryne of the Department of Justice’s Public Integrity Section.
Former Chief Executive of Mortgage Servicing Company <br /> Pleads Guilty to Bank Fraud for Scheme <br /> to Withhold Funds from Wells Fargo BankRead the Press Release
The former president and chief executive officer of U.S. Mortgage, a loan servicing company in Nevada, pleaded guilty today for his role in a scheme to defraud Wells Fargo Bank out of more than $8 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada made the announcement after the plea was accepted by U.S. District Judge Andrew P. Gordon.
Earl Gross, 75, of Las Vegas, pleaded guilty to one count of bank fraud. Gross faces a maximum penalty of 30 years in prison when he is sentenced on Sept. 19, 2013. Gross has agreed to forfeit $8,440,439 pursuant to his plea agreement.
According to plea documents, Wells Fargo Bank contracted with U.S. Mortgage to service pools of residential mortgage loans held by investors in mortgage-backed securities. Under the agreement, Gross and U.S. Mortgage were obligated to collect from the borrowers the monthly payments that the borrowers made toward their mortgage obligations and forward these proceeds to Wells Fargo Bank. In the event that a borrower paid off the loan – usually by selling the mortgaged property – U.S. Mortgage was obligated to remit to Wells Fargo Bank the full payoff amount. U.S. Mortgage agreed to provide Wells Fargo Bank with monthly reports, which described the status of the loans, such as the balance, principal and interest, and payment status and received servicing fees for each loan it serviced.
According to the indictment, from 2004 to 2009, Gross and U.S. Mortgage withheld more than $8 million in loan payoffs that were due Wells Fargo Bank by submitting to the bank reports stating that numerous borrowers were continuing to make monthly payments when in fact they had paid off the loans in full. Rather than remit to Wells Fargo Bank the full payoff amount, Mr. Gross and U.S. Mortgage forwarded only what the borrowers’ monthly payment would have been and retained the difference in U.S. Mortgage’s bank account. To deceive Wells Fargo Bank about the status of paid off loans, Mr. Gross and U.S. Mortgage created fake amortization schedules indicating that borrowers who had sold and paid off homes were continuing to make monthly payments. In addition to withholding loan payoff amounts to which he was not entitled, Mr. Gross charged Wells Fargo Bank fees to service mortgage loans that had been paid off.
The case was investigated by the FBI. This case is being prosecuted by Brian R. Young and Charles La Bella of the Criminal Division’s Fraud Section, with assistance from Roberto Iraola of the Office of International Affairs and the United States Attorney’s Office for the District of Nevada.
Today’s guilty plea was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.StopFraud.gov.
East St. Louis Man Sentenced for Illegally Possessing A FirearmRead the Press Release
ReSean Ridgel, a 25-year old East St. Louis, Illinois resident, was sentenced in the United States District Court on June 10, 2013, to 46 months in federal prison for illegally possessing a firearm, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
According to court documents, Ridgel pled guilty to being a felon in possession of a firearm and possessing an unregistered firearm, commonly referred to as a sawed-off shotgun, in February 2011 after having been convicted of retail theft. Having considered these facts and Ridgel’s multiple prior criminal convictions, the Court sentenced Ridgel to 46-months in federal prison. There is no parole in the federal prison system. In addition to the prison sentence, Ridgel must serve 3 years of supervised release following imprisonment. According to United States Attorney Stephen R. Wigginton, “My office remains committed to prosecuting criminals who illegally arm themselves. We will continue to protect our communities from unauthorized gun possession. A sentence such as Ridgel’s serves to exemplify that unwavering commitment.”
This case was investigated by the East St. Louis Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Monica A. Stump prosecuted the offense.
Doctor Convicted of Running Pill Mill and Contributing to A DeathRead the Press Release
PHILADELPHIA – A federal jury, today, found Dr. Norman Werther, 74, of Ft. Washington, PA, guilty of more than 300 counts, including distribution of a controlled substance resulting in death. In addition to the charge of distribution resulting in death, the jury found Werther guilty of 184 counts of illegally distributing oxycodone, 116 counts of money laundering, six counts of conspiracy to distribute controlled substances, and one count of maintaining a drug-involved premises. Werther faces a mandatory 20 years and maximum sentence of life in prison. A sentencing hearing has not yet been scheduled. Werther remains free on bail until Friday, June 14, 2013.
Werther was part of a multi-million dollar drug conspiracy involving illegal prescriptions, phony patients, and multiple drug trafficking organizations. At the time, Werther was a Montgomery County physician, running a physical therapy and rehabilitation practice in Willow Grove. He conspired with six separate groups of drug dealers.
“Dr. Werther turned his back on his professional code of ethics, becoming nothing more than a common drug pusher,” said First Assistant U.S. Attorney Louis Lappen. “He is the antithesis of a physician. The sentence mandated for his crimes should ensure that he will never again be free to harm another human being.”
“Drug diversion is a growing epidemic in our society made worse by the professional people who turn their backs on their ethics to line their pockets at great risk to others,” said DEA Special Agent-in-Charge David G. Dongilli. “We will continue our diligent efforts to crackdown on this growing problem.”
“The diversion of dangerous prescription drugs is a public health epidemic and a serious problem,” said Special Agent-in-Charge Nick DiGiulio with Health and Human Services Office of Inspector General in Philadelphia. “We work with our partners to dismantle these lethal drug trafficking organizations and to bring physicians like Dr. Werther to justice.”
Werther worked with drug traffickers who recruited large numbers of pseudo-patients. Werther set aside a specific block of time each business day to see the pseudo-patients recruited by Ronald Campbell, Anthony DiPasquale, Angel DuPrey, Kyle Jones, and William Stukes. With the help of Werther’s office staff, those “patients” were transported to Werther’s medical office, at 301 Davisville Road in Willow Grove, PA, for cursory examinations. The “patients” paid an office visit fee, usually $150, by cash, check, or money order, and Werther wrote prescriptions for them to obtain oxycodone-based drugs without there being a legitimate medical purpose for the prescription and outside the usual course of professional practice. The “patients” were then driven to various pharmacies, including Northeast Pharmacy, to have their prescriptions filled. The drugs were then turned over to the drug dealers so their organizations could sell the narcotics to numerous drug dealers who resold the drugs on the street.
In September 2010, Werther knowingly dispensed approximately 150 pills containing 30 milligrams each of oxycodone, and 30 pills containing 15 milligrams each of oxycodone, to Nathaniel Backes for no legitimate medical purpose and Nathaniel Backes’ death resulted from the use of that substance.
The drug conspiracy involving Dr. Werther operated between February 2009 and August 2011 and resulted in the illegal distribution of more than 700,000 pills containing oxycodone. At least one of the drug trafficking organizations working with Werther trafficked pills valued at more than $5 million that Werther illegally prescribed.
The crimes of conspiracy, distribution of controlled substance, possession with intent to distribute, and money laundering each carry a maximum possible sentence of 20 years in prison.This case was investigated by the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigations with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Philadelphia Police Department, the North Coventry Police Department, the Upper Moreland Police Department, and the Montgomery Township Police. It is being prosecuted by Assistant United States Attorneys Nancy Beam Winter and Jason Bologna.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525District Man Sentenced to More Than Nine Years in Prison for 2012 Bank Robbery in Northeast Washington-Defendant Arrested Shortly After the Crime-Read the Press Release
WASHINGTON – John Morris, 64, of Washington, D.C., was sentenced today to a prison term of nine years and seven months on a charge of bank robbery while armed, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Morris entered a plea of nolo contendere in April 2013 in the U.S. District Court for the District of Columbia. Under a nolo contendere plea, a defendant is convicted of the offense, accepts responsibility, and agrees that the government could prove him guilty beyond a reasonable doubt. However, the defendant in such a plea does not admit to the facts of the case. The Honorable Richard W. Roberts sentenced Morris today. Upon completion of his prison term, Morris will be placed on five years of supervised release.
According to the government’s evidence, just before noon on March 22, 2012, Morris walked into a TD Bank in the 1200 block of First Street NE. He was wearing a black jacket, black pants, black shoes, sunglasses and a cap. He demanded money from two bank tellers, claiming that he had a bomb. The tellers turned over about $3,700. Morris left a bag behind, which he claimed had the bomb, and warned that he could remotely control its detonation.
Two officers with the Metropolitan Police Department were in the area at the time of the robbery, and they quickly spotted Morris across the street from the bank. A third MPD officer arrived on the scene, and Morris told him, “Yeah, I did it. It’s rough out here.” Morris, who at the time of his arrest was wearing a black jacket, black pants, black shoes, sunglasses and a cap, also could be seen clearly on video surveillance photographs of the robbery.
The stolen money was recovered after the robbery. Morris’s bomb threat led to an emergency response that included the evacuation of the bank and the block surrounding the bank. The bag left inside the bank contained an alarm clock.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier thanked those who investigated the case from the MPD and FBI’s Washington Field Office, including the FBI/MPD Violent Crimes Task Force. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Stephanie Brooker, former Chief of the Asset Forfeiture and Money Laundering Section, and Paralegal Specialist Jeannette Litz. Finally, they expressed appreciation to Assistant U.S. Attorney Catherine K. Connelly, who prosecuted the matter.
13-202Defendants Face Possible Life in Prison for Drug Conspiracy and Firearms PossessionRead the Press Release
TULSA, Okla. — United States Attorney Danny C. Williams Sr. announced the return of a superseding indictment against four men by a Federal Grand Jury on June 10, 2013. The charges include drug conspiracy, distribution of methamphetamine, and firearms possession.
Harold Edward Staples, III, 59, his son, Christopher Dean Staples, 29, Buel Dean Hamilton, 61, all of Tulsa, and T.J. Cain, 41, of Stillwell are charged with conspiring to distribute more than 50 grams of pure methamphetamine. Harold Staples is also accused of firearms violations including illegal possession of machine guns, possession of unregistered silencers and a sawed-off rifle, and possession of firearms in furtherance of a drug trafficking crime.
The defendants would face a mandatory minimum ten years imprisonment up to a maximum of life imprisonment if convicted. Harold Staples would face additional charges with a minimum of 25 years imprisonment up to a maximum of life imprisonment. Defendants would face the entry of a criminal forfeiture money judgment representing proceeds obtained as a result of the conspiracy and the forfeiture of four parcels of real property and over one hundred firearms, including machine guns, silencers and assault rifles.
After the superseding indictment was returned, the U.S. Government was made aware that Harold Staples died on the same day. The U.S. Government will continue its prosecution against the remaining defendants.
A Grand Jury Indictment is one method of charging a defendant with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendants’ presumption of innocence.
Criminal Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 42-year-old Mexican national was indicted for entering the United States illegally after previously being deported as a criminal. Leopoldo Rivera-Leal was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on May 7, 2013, Rivera-Leal was found in the U.S. after being deported to Mexico in 2005, following a 1991 Texas conviction for first-degree burglary. On May 7, 2013, Rivera-Leal was turned over to U.S. Immigration and Customs Enforcement (“ICE”) by Steele County officials after he had finished serving a state sentence for drug possession.
If convicted of the federal charges now levied against him, Rivera-Leal will face a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Corwin Dallas Four Star Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in
Great Falls, on June 10, 2013, before U.S. Magistrate Judge Keith Strong, CORWIN DALLAS FOUR STAR, a 19-year-old resident of Wolf Point and an enrolled member of a federally-recognized tribe, pled guilty to sexual abuse. Sentencing has been set for September 26, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In the early morning hours of March 4, 2012, FOUR STAR got on top of the victim as she was sleeping and choked her to the point that she lost consciousness. He then sexually abused her. When the victim regained consciousness, she started screaming and trying to push him off. FOUR STAR held her arms down and punched her in the face.
The offense occurred within the exterior boundaries of the Fort Peck Indian Reservation.
FOUR STAR faces possible penalties of life in prison, a $250,000 fine and lifetime supervision..
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
Commercial Marijuana Stores in Long Beach, Antelope Valley and Portions of Los Angeles Targeted with Warning Letters and Asset Forfeiture Lawsuits Filed by U.S. Department of JusticeRead the Press Release
LOS ANGELES – The latest federal enforcement actions against the commercial marijuana industry in California came today as federal authorities moved against 103 illegal marijuana stores across Los Angeles County.
Out of the 103 storefronts targeted today, federal authorities sent warning letters to 28 stores in Long Beach, 71 in Los Angeles, and four in the Antelope Valley. Two of the stores in Long Beach are housed in buildings that are the subject of asset forfeiture lawsuits that were filed today in United States District Court.
Today’s federal actions involve all known marijuana stores in the City of Long Beach; the City of Lancaster; the high desert community of Pearblossom; and the parts of Los Angeles served by the Newton, Rampart and Harbor divisions of the Los Angeles Police Department.
In federal court this afternoon, prosecutors filed two asset forfeiture lawsuits against properties in Long Beach where marijuana stores are currently operating. The two civil asset forfeiture complaints state: “Under federal law, the distribution of marijuana (a Schedule I controlled substance under Title 21) is prohibited except under very limited circumstances not applicable here. The government further alleges on information and belief that the operation of a marijuana store on the defendant property was not (and is not) permitted under California law.”
The forfeiture lawsuits allege that the owners of the properties knowingly allowed commercial marijuana stores – and, in one case, a commercial grow – to operate. The buildings in Long Beach named in the asset forfeiture lawsuits currently house:
The Healing Tree Holistic Association (in a store which, in 2011, operated under the name Royalty Collective) and a related indoor marijuana cultivation facility in a strip mall at 3721 East Anaheim Street, which have been the subject of at least five state search warrants over the past two years; and
Naples Wellness Center at 5750 East 2ND Street, which has received at least 15 administrative citations from the City of Long Beach over the past 15 months, and in April was the subject of two state search warrants executed by the Long Beach Police Department.
In February 2012, Long Beach enacted an ordinance banning marijuana stores in the city.
In conjunction with the filing of the asset forfeiture complaints, the United States Attorney’s Office today mailed out letters to the property owners and operators of 26 additional marijuana stores that are either currently operating or were recently closed in Long Beach. The warning letters give the operators and landlords 14 days to come into compliance with federal law or risk potential civil or criminal actions.
“Marijuana dispensaries have posed significant challenges to the City of Long Beach. We always welcome the opportunity to partner with federal authorities in an effort to address these illegal operations that affect the quality of life in our community,” said Long Beach Police Chief Jim McDonnell.
In addition to the marijuana stores in Long Beach, federal prosecutors sent warning letters to three pot shops in Pearblossom, one in Lancaster and 71 in Los Angeles. The areas in Los Angeles that were targeted are served by three LAPD divisions: Newton, which serves portions of South Los Angeles and downtown; Rampart, which serves areas west and northwest of downtown; and Harbor, which serves San Pedro, Wilmington and Harbor Gateway.
Today’s enforcement actions in Los Angeles County follow similar actions across the seven-county Central District of California. Starting in October 2011, prosecutors began filing asset forfeiture lawsuits and sending letters to marijuana operations in selected areas in the Central District of California (see, for example: http://www.justice.gov/usao/cac/Pressroom/2013/053.html).
With the lawsuits filed this morning, the United States Attorney’s Office has filed a total of 32 asset forfeiture complaints against properties housing illegal marijuana operations in the district. Twenty-three of those actions have been resolved with the closure of the marijuana stores and consent decrees. In some cases, consent decrees required property owners to disgorge rent payments made by a marijuana store operator, and in all cases the consent decrees required the property owners to agree, among other things, that they would no longer rent to people associated with illegal marijuana operations or the property would be subject to an immediate forfeiture to the government.
Including today’s efforts in Long Beach, Los Angeles and the Antelope Valley, federal enforcement actions – asset forfeiture lawsuits, warning letters and related activity – have now targeted more than 625 illegal marijuana businesses in the Central District of California. The majority of those businesses previously targeted are now closed, are the subject of eviction proceedings by landlords, or have been the subject of additional federal enforcement actions.
In October 2011, the four United States Attorneys in California announced the coordinated enforcement actions targeting illegal marijuana cultivation and trafficking (see: http://www.justice.gov/usao/cac/Pressroom/2011/144a.html).
As part of this project, the United States Attorney’s Office is working with the Drug Enforcement Administration and IRS - Criminal Investigation. Today’s enforcement actions involved the cooperation of the Los Angeles District Attorney’s Office.
Release No. 13-080