Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
24 July 2013
Jose Roberto Pacheco-alvarado Pleads Guilty to Illegal Re-entryRead the Press Release
JOSE ROBERTO PACHECO-ALVARADO, age 23, a citizen of Honduras, pled guilty today in federal court before U. S. District Judge Kurt D. Engelhardt to a one-count indictment charging him with illegal re-entry of a removed alien, announced U.S. Attorney Dana J. Boente.
According to court documents, PACHECO admitted to being an alien who had previously been removed from the United States, was found in the Eastern District of Louisiana, on April 29, 2013, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging PACHECO with illegal re-entry also included a notice of sentencing enhancement based on his prior felony conviction. With the enhancement, the offense carries a maximum statutory penalty of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for October 16, 2013 at 9:00 A.M.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Factual Basis )
Joplin Sex Offender Indicted for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man who is a registered sex offender has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
Donnie Ray Sumner, 43, of Joplin, was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, July 23, 2013.
The federal indictment alleges that Sumner received and distributed child pornography over the Internet between July 1, 2012, and Jan. 21, 2013. The indictment also contains a forfeiture allegation, which would require Sumner to forfeit to the government any property used to commit the alleged offense, including a desktop computer and a laptop computer.
Sumner is a prior sex offender with a 2001 conviction for possessing child pornography. Under federal statutes, a conviction would therefore result in a mandatory minimum sentence of 15 years in federal prison without parole, up to 40 years in federal prison without parole.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Homeland Security Investigations and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jasper Wade Half Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 24, 2013, before Senior U.S. District Judge Jack D. Shanstrom, JASPER WADE HALF, a 37-year-old resident of Crow Agency and an enrolled member of the Crow Tribe of Indians, was sentenced to a term of:
Prison: 15 months
Special Assessment: $100
Supervised Release: 3 years
HALF was sentenced in connection with his guilty plea to assault with a dangerous weapon.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On May 20, 2011, HALF and the victim were drinking alcohol in Hardin. They left together and were on the off-ramp outside Hardin, when they began to argue. They pulled over and began to fist-fight. The victim beat up HALF. HALF got into his car and drove away across the interstate. He then turned around and returned to the exit. When HALF was on the on ramp, he stopped, pulled out a .22 caliber rifle from the trunk, and shot at the victim. HALF individually loaded the second round and fired again.
Shortly after HALF shot the gun, he was arrested by Big Horn County Sheriff's deputies. HALF initially stated that he had aimed the gun "in the air." Later, HALF reconsidered his previous statement and explained that he had pointed the gun at the victim and then up in the air.
A witness saw the incident and explained that, to her, it looked like HALF was pointing the gun at and shooting at the victim.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HALF will likely serve all of the time imposed by the court. In the federal system, HALF 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 Federal Bureau of Investigation.
Idaho Man Convicted of Obstruction of Justice in Key West Marine Life CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Miami Field Office, announced that Peter C. Covino, IV, 20, of Eagle, Idaho, was convicted today after a jury trial, for knowingly and corruptly attempting to persuade another to alter, destroy, mutilate, or conceal an object with the intent to impair the object’s integrity and availability for use in an official proceeding, in violation of Title 18, United States Code, Sections 1512(b)(2)(B) and 2.
According to testimony presented in Court, and documents in the case file, in February 2013 Covino made two phone calls to a business in the Florida Keys involved in the wholesale marine life trade. His purpose in doing so was in part to direct one of the business owners “to erase all the text messages, and emails, or any other evidence” linking the Florida business to Ammon Covino, the uncle of defendant Peter Covino.
In a separate criminal proceeding, United States v. Ammon Covino, et al., Case No. 12-10020-CR-Martinez, Ammon Covino had been arrested on February 21, 2013, in connection with allegations that he engaged in conspiracy and various violations of the federal Lacey Act by purchasing and transporting wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise, Idaho. According to the charges, the wildlife included spotted eagle rays and lemon sharks, for which the required Florida licenses and permits were never acquired. Testimony established at trial that Ammon Covino had made the arrangements for the illegal purchases by emails, text messages, and telephone calls.
Prior to the two calls made by defendant Peter Covino on February 21, 2013, and before the arrest and initial court appearance of Ammon Covino, Peter Covino had never been involved with the acquisition of wildlife from Florida and had no prior direct dealings with the Florida-based supplier. Unknown to Peter Covino, the business owner was cooperating with federal authorities and his phone conversations were recorded. During his trial testimony, Peter Covino admitted that he made the calls at the direction of Ammon Covino.
Peter Covino faces a possible sentence of up to 20 years imprisonment, a fine of up to $250,000, and a term of supervised release of up to three years. United States District Judge Jose E. Martinez, who presided over the trial, set sentencing in this matter for September 24, 2013 at 1:00 p.m. in the Key West Courthouse.
Mr. Ferrer commended the investigative efforts of NOAA Office for Law Enforcement and the U.S. Fish & Wildlife Service, Office of Law Enforcement. Mr. Ferrer also thanked the Officers of the Idaho Department of Fish & Game. This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Hobbs Man Sentenced to Ten Years in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Donald Keith Colvin, 40, of Hobbs, N.M., was sentenced this afternoon in Las Cruces federal court to 121 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction. Colvin’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, 5th Judicial District Attorney Janetta B. Hicks, Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division, and Commander Michael Wilson of the Lea County HIDTA Drug Task Force.
Colvin was arrested on Oct. 9, 2012, on a criminal complaint alleging that he unlawfully possessed firearms in Lea County, N.M., on Sept. 14, 2012. Colvin was prohibited from possessing firearms or ammunition because he previously had been convicted of involuntary manslaughter and negligent use of a deadly weapon. On Jan. 16, 2013, Colvin entered a guilty plea to a felony information charging him with possession of methamphetamine with intent to distribute and was remanded into federal custody.
According to court filings, on Sept. 14, 2012, the Lea County HIDTA Drug Task Force executed a state search warrant at Colvin’s residence in Hobbs. During the execution of the search warrant, the officers seized 59.91 net grams of methamphetamine which were found in Colvin’s bedroom and in a safe in his bathroom. The officers also seized four operational firearms, including a loaded Smith & Wesson .38 special revolver, and a non-operational firearm from Colvin’s bedroom. Colvin was arrested on state charges, which were dismissed after his arrest on federal charges.
“I want to commend all of the hard work of the officers and prosecutors in this case,” said District Attorney Janetta B. Hicks. “It is that kind of cooperation between local law enforcement and our federal partners that make our community safer.”
This case was investigated by the Las Cruces offices of ATF and DEA and the Lea County HIDTA Drug Task Force, with assistance from officers of the Lea County Sheriff’s Department and the Hobbs Police Department, and was prosecuted by Senior Litigation Counsel Terri L. Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
The Lea County HIDTA Task Force is comprised of officers from the Lea County Sheriff’s Department, Hobbs Police Department, Eunice Police Department, Jal Police Department, Lovington Police Department and Tatum Police Department. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Gadsden Man Convicted of Bank RobberyRead the Press Release
Birmingham – A federal jury on Wednesday convicted a Gadsden man of bank robbery and conspiracy, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The jury convicted MARCUS TYSHUN PORTER, 33, of joining in a conspiracy and acting as a lookout during the July 16, 2008, robbery of the Wachovia Bank in Lenlock, Alabama. Two of Porter’s co-conspirators have already been convicted in the Northern District of Alabama of this robbery and of carjacking. Immediately after robbing the bank, the co-conspirators forced two women at gunpoint to drive them back to Gadsden, where they met up with Porter and split up the proceeds. Previously convicted for this bank robbery were GABRIEL RICE, WILLIS LEACH, and JESSE KEY. U.S. District Judge Abdul K Kallon scheduled Porter’s sentencing for November 7, 2013.
“All of the people responsible for these horrible and violent crimes have finally been brought to justice,” Vance said. “This case is part of a larger investigation involving a string of bank robberies occurring in Gadsden and the surrounding area since 2007. I commend the FBI and the entire Etowah County law enforcement community for their efforts over the past five years to solve these crimes,” she said.
The maximum sentence for these crimes is 25 years in prison and a $250,000 fine.
The FBI investigated the case, and it was prosecuted by Assistant U.S. Attorney L. James Weil Jr. and Special Assistant U.S. Attorney E. Wilson Hunter.
Freeport Man Sentenced to 29 Months in Federal Prison for Wire FraudRead the Press Release
ROCKFORD — A Freeport, Ill. man was sentenced today in federal court for wire fraud. U.S. District Judge Frederick J. Kapala sentenced ANTHONY TAYLOR, 44, to 29 months in federal prison, in addition to 3 years of supervised release following his release from prison, and ordered Taylor to pay restitution of $212,542.44
Taylor pled guilty to the charge on April 15, 2013, admitting that between mid-2010 and January 2012 he defrauded large retail chain stores by fraudulently acquiring tens of thousands of dollars of merchandise and returning the items for cash. In the written plea agreement, Taylor admitted that as part of the scheme he and other individuals created and used counterfeit checks and counterfeit identifications to purchase merchandise from large chain stores such as Wal-Mart and Farm and Fleet located in various states. After Taylor and the others purchased merchandise from those stores, they returned the merchandise to a different store location for a cash refund. Taylor admitted he knew at the time that some of the names and addresses on the checks and identification he used, and some of the bank account information, were fictitious and some were real.
Three other individuals have been charged for their roles in the wire fraud scheme with Taylor:
ANTHONY HARDY, 42, of Rockford, pled guilty on Feb. 19, 2013, to one count of wire fraud and one count of identity theft, and was sentenced on June 4, 2013, to 65 months in prison, 5 years of supervised release following imprisonment, and ordered to pay restitution of $212,542.44.
CAMERON LOVE, 28, of Rockford, pled guilty on Feb. 28, 2013, to one count of wire fraud, and was sentenced on June 28, 2013, to 15 months in prison, 3 years of supervised release following imprisonment, and ordered to pay restitution of $212,542.44.
WILLIAM DORN, 25, also of Rockford, pled guilty on May 30, 2013, to one count of wire fraud. Dorn is scheduled to be sentenced on Sept. 9, 2013 at 2:30 p.m.
The sentencing today was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Pete Zegarac, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Rockford Police Department and Freeport Police Department assisted in the investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Former Tax Preparers Plead Guilty to Tax FraudRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Brenda Jeffries-Silmon, 55, of Cheektowaga, N.Y., and Marcel Richardson-Redden, 58, of Buffalo, N.Y., pleaded guilty before Chief U.S. District Court Judge William M. Skretny to conspiring to defraud the Internal Revenue Service by preparing false tax returns. the charge carries a maximum penalty of five years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that Jeffries-Silmon and Richardson-Redden owned and operated a tax preparation business called R Services. Between January 2005 and January 2009, the defendants filed approximately 58 tax returns on behalf of clients that contained false information, such as improper filing statuses, false dependent exemptions, false claims to the Earned Income Credit, false charitable contributions, false business expenses, and false child care expenses. The false tax returns were filed with the Internal Revenue Service and the New York State Department of Taxation and Finance and resulted in a loss of tax revenue of $195,980.
The pleas are the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-In-Charge, Toni M. Weirauch, and with the assistance of the New York State Department of Taxation and Finance, under the direction of Deputy Commissioner Risa Sugarman.Former Priest Pleads Guilty to Distributing and PossessingChild PornographyRead the Press Release
Timothy Murray, 62, of Novi, pleaded guilty to one count of distributing child pornography and one count of possession child pornography, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Acting Special Agent in Charge William Hayes of the Department of Homeland Security (DHS) in Detroit.
According to court records, Murray used peer-to-peer software to trade child pornography with others, including an undercover DHS Homeland Security Investigations (HSI) special agent. A search warrant executed at Murray’s home recovered at least seven different computer devices containing videos and images of child pornography. Murray’s collection included over 650 movies and over 450 images of child pornography. Murray had previously served as a Catholic priest within the Archdiocese of Detroit before being removed from public ministry when substantiated allegations of Murray’s prior sexual abuse of a young boy came to light.
United States Attorney McQuade stated, “With his guilty plea, this defendant acknowledges his continued criminal sexual interest in children. The hands-on sexual abuse that led to his removal from public ministry by the Catholic church had long-lasting effects on the defendant’s prior victim. Similarly, the victims depicted in his extensive collection of child pornography suffered greatly not only at the hands of their abusers, but by those, like the defendant, who collect and continue to view the permanent depictions of their abuse.”
“This case serves as a reminder that child predators often try to portray themselves as trustworthy members of the community and parents everywhere should remain vigilant to potential dangers,” said acting special agent in charge of HSI Detroit William J. Hayes. “HSI and its law enforcement partners will continue to work aggressively to identify, investigate and seek prosecution for the perpetrators of these horrendous crimes.”
Murray will be sentenced on December 4, 2013 at 2pm, by the Honorable Victoria A. Roberts. Under the terms of his plea agreement, Murray faces a sentence of 262-327 months in federal prison.McQuade praised the work of the HSI agents for their professionalism and dedication in their aggressive and thorough investigation of these cases.
Assistant United States Attorney Kevin M. Mulcahy prosecuted this case for the United States.
Former Owner of Louisville Pharmaceutical Company Pleads Guilty to FDA ViolationsRead the Press Release
– Company received more than $2 million in payments from Medicare for misbranded, adulterated and contaminated inhalation medications
LOUISVILLE, Ky. – The former owner of National Respiratory Services, LLC (NRS) and a former minority shareholder have pleaded guilty, in United States District Court, before Magistrate Judge James D. Moyer, to charges of misbranding and altering drugs and the company admitted to committing health care fraud, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Christopher Keegan, age 55, of Lexington, Kentucky, the former owner of NRS, pleaded guilty yesterday to count two, of a federal Information and agreed to a restitution payment of $2,030,343.11, to the Centers for Medicare and Medicaid Services, jointly and severally with co-defendants.
According to the plea agreement, while owner and majority shareholder of NRS, Keegan and others, through NRS, caused compounded medications to be sent to patients, through interstate commerce, which were sub-potent, super-potent, non-sterile, and therefore adulterated and misbranded in violation of the Food Drug & Cosmetic Act. Further, Keegan and others, through NRS, then submitted to Medicare, false and fraudulent billings which indicated that the medications they were providing to patients were non-compounded and FDA-approved when they were not. The total loss of this activity is $2,030,343.11. Compounded medications are not FDA approved, but FDA regulations permit pharmacists to make compounded drugs, including prescription drugs, in limited amounts and under narrow circumstances, for particular patients, and at the direction of a physician when other available drugs cannot be prescribed.
Also, co-defendant James Rives, age 71, of Louisville, Kentucky, a former minority shareholder of NRS, pleaded guilty yesterday to count two of the federal Information and agreed to a restitution payment of $75,996.85. As a result of the plea agreement, the United States will not pursue felony charges of conspiracy to commit health care fraud against Rives for the activity he engaged in during the period of 2006 through 2008 while defendant Rives was associated with NRS.
At sentencing the defendants face a maximum term of one year in prison, a fine, restitution, and a period of supervised release.
In separate Indictments, Johnny Perry, of Mt. Washington, Kentucky, and the former vice-president of NRS, was charged on August 3, 2011, and pleaded guilty to a five count felony Indictment. Perry admitted that between June of 2006 and June of 2008, as vice-president of NRS, she provided compounded medications to patients, but led both Medicare and the patients’ doctors to believe that the pharmaceutical company was providing non-compounded medications. Also, Perry admitted to submitting false and fraudulent claims to Medicare for the cost of FDA-approved, commercially manufactured, prescription inhalation drugs, when they were not. Sentencing is scheduled for August 5, 2013, at 11:00 AM in Louisville, before Chief Judge Joseph H. McKinley Jr.
Former NRS pharmacists Leo Parrino and Linda Schmidt, pleaded guilty to introducing compounded inhalation drugs that bore false and misleading labelling and represented them to be of greater strength and potency than they actually had. Parrino pleaded guilty to the charge on September 8, 2011 and was sentenced by Magistrate Judge Moyer to one year probation and restitution in the amount of $14,098.24 and Schmidt was sentenced to one year probation and restitution in the amount of $20,000.00.
The case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and it was investigated by the Food and Drug Administration Office of Criminal Investigations, Health and Human Services Office of Inspector General, United States Postal Inspection Service, and the Federal Bureau of Investigation.
Former Investment Banker and His Associate <br /> Sentenced for Insider Trading SchemeRead the Press Release
A former San Francisco investment banker and his college friend were sentenced yesterday to 16 months in prison for their roles in an insider trading scheme involving two impending corporate mergers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Melinda Haag of the Northern District of California.
Jauyo Lee, or “Jason Lee,” 29, of Palo Alto, Calif., and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty on April 16, 2013, to one count of conspiracy to commit securities fraud and one count of securities fraud.
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink’s client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela’s stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
Between June 1 and June 13 of 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen were charged in a criminal information on March 21, 2013.
The sentence was handed down by U.S. District Judge Richard G. Seeborg of the Northern District of California. Judge Seeborg also sentenced Lee and Chen each to a two-year period of supervised release and ordered that restitution and forfeiture be considered at a subsequent hearing. Chen paid $610,099 in forfeiture prior to sentencing.
This case was investigated by the FBI with substantial assistance from the Chicago Regional Office of the U.S. Securities and Exchange Commission. It is being prosecuted by Assistant U.S. Attorney Robert S. Leach and Trial Attorney Brian R. Young of the Criminal Division's Fraud Section with the assistance of Rayneisha Booth and Mary Mallory.
This prosecution 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.Former Investment Banker and His Associate Sentenced to 16 Months in Prison for Insider Trading SchemeRead the Press Release
SAN FRANCISCO - A former San Francisco investment banker and his college friend were sentenced yesterday to 16 months in prison for their roles in an insider trading scheme involving two impending corporate mergers, announced U.S. Attorney Melinda Haag and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Jauyo Lee, aka “Jason Lee,” 29, of Palo Alto, Calif., and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty on April 16, 2013, to one count of conspiracy to commit securities fraud and one count of securities fraud.
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink’s client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela’s stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
In addition, according to the plea agreements, between June 1 and 13, 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen were charged in a criminal Information on March 21, 2013.
The sentence was handed down by The Honorable Richard Seeborg, U.S. District Court Judge. Judge Seeborg also sentenced Lee and Chen each to a 2-year period of supervised release and ordered that restitution and forfeiture be considered at a subsequent hearing. Chen paid $610,099 in forfeiture prior to sentencing. The defendants will begin serving the sentences on September 30, 2013.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Leach and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section with the assistance of Rayneisha Booth and Mary Mallory. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation with substantial assistance from the Chicago Regional Office of the U.S. Securities and Exchange Commission.
This prosecution 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.
Former Illinois State Representative Connie Howard Pleads Guilty to Fraud SchemeRead the Press Release
Springfield, Ill. – Former Illinois State Representative Constance ‘Connie’ Howard, today waived indictment and entered a plea of guilty to mail fraud related to her misuse of funds from 2003 to 2007, that she raised on behalf of a charity golf outing she sponsored, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Howard, 70, appeared before U.S. Magistrate Judge Byron G. Cudmore. Sentencing has been scheduled for Nov. 21, 2013, before U.S. District Judge Richard Mills.
In court documents and during today’s hearing, Howard admitted that, as a result of the scheme, from 2003 to 2007, she solicited and obtained approximately $76,700, representing that such funds would be used to provide scholarships. Howard admitted that, in fact, no more than five scholarships of $2,500 each, totaling $12,500, were issued during the course of the scheme, and as much as approximately $28,000 of the funds raised were converted to her personal and political use. Misuse of the funds included expenses associated with the promotion of her campaign, and campaign events, and to the benefit of Individual A, identified in court documents as Howard’s legislative aide and employee / office manager.
At the time of the fraud, Howard was a member of the Illinois House of Representatives. She served as Chairwoman of the Computer Technology Committee for the House of Representatives and the Eliminate the Digital Divide Advisory Committee of the Illinois Department of Commerce and Economic Opportunity. Howard’s legislative and campaign offices were located in Chicago.
In 2003, Howard created an organization known as “Tee Off for Technology,” (TOFT), which was not a tax-exempt organization. Howard also established the “Constance A ‘Connie’ Howard Computer Technology Scholarship Fund. Howard represented that the purpose of the fund was to provide scholarships to persons in need who were seeking a degree in computer science and related fields.
In July 2003, Howard established an annual event known as the “Tee Off for Technology Celebrity Golf Outing.” Howard represented that the purpose of the organization and the annual golf outing was to serve as a fundraising mechanism for the scholarship fund. Because TOFT was not a tax-exempt organization, it partnered with tax-exempt organizations to serve as TOFT’s fiscal agent to ensure that donations to TOFT and the scholarship fund were tax deductible.
In the plea agreement between Howard and the government, at sentencing, the government agrees to recommend to the court a sentence of no more than 12 months to be served as six months in prison to be followed by a term of supervised release that includes a condition that six months of supervised release be served as home detention. The parties agree that the advisory sentencing guidelines for the offense would be 12 to 18 months in prison. Under terms of the plea agreement, if the court does not accept the plea agreement, the defendant has a right to withdraw her plea of guilty. Howard has not been detained and remains free on her own recognizance pending sentencing.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Former Campaign Worker and Policy Analyst for the Arizona House of Representatives Found Guilty of Wire FraudRead the Press Release
PHOENIX – John Rowland Mills, 49, of Glendale, Ariz., a former policy analyst for the Arizona House of Representatives, was found guilty of nine counts of wire fraud by a federal jury in Phoenix. The case was tried before U.S. District Judge James A. Teilborg from July 9 through July 23, 2013. Sentencing is set before Judge Teilborgon Tuesday, Oct. 8, 2013.
“The theft and misuse of approximately $133,000 of campaign funds, consisting primarily of contributions from individuals, is a serious offense. My office stands ready to assist the people of Arizona in guaranteeing that campaign workers are not tempted to steal or misuse such funds in the future,” said John S. Leonardo, U.S. Attorney, District of Arizona.
FBI Special Agent in Charge Douglas G. Price, Phoenix Division, stated “Whenever an individual utilizes their position to defraud the public for their own personal gain by taking campaign contributions it tarnishes our political process. John Rowland Mills’ actions were fostered by greed. The voice of justice has spoken with a jury of his peers holding him accountable for defrauding the public. The FBI and the United States Attorney’s Office are committed to investigating and prosecuting those who choose to line their pockets with public funds.”
The evidence at trial showed that from December 2006 through January 2009, Mills embezzled approximately $133,000 from the James P. Weiers 2008 campaign account (which consisted primarily of contributions from individuals) and used the embezzled funds to make mortgage payments, to pay for personal items such as clothing, food, and credit card bills, and to make various investments, including investments via multiple E*Trade accounts. Mills also made a variety of false statements in an attempt to avoid detection, including forging the candidate’s signature on nine campaign account checks and filing six campaign finance reports with the Arizona Secretary of State that falsely overstated the amount of money in the campaign account. Finally, just before the 2008 election, Mills deposited money back into the campaign account in an attempt to avoid detection.
Each conviction for wire fraud carries a maximum penalty of 20 years, a maximum fine of $250,000, or both.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1660-PHX-JAT (LOA)
RELEASE NUMBER: 2013-059_MillsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Former Biller for RGV DME Gets More Than 11 Years in Federal Prison for His Role in $11 Million Health Care Fraud SchemeRead the Press Release
McALLEN, Texas – One of the billers for a now defunct McAllen area durable medical equipment (DME) business has been ordered to prison for his role in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. Ramon De La Garza, 52, of Mission, was a biller for RGV DME from approximately August 2004 through approximately April 2009. The scheme involved approximately $11.1 million in false claims to Medicare and Medicaid.
Today, De La Garza, was handed a sentence of 110 months for conspiracy to defraud Medicare and Medicaid and an additional mandatory 24-month-term for aggravated identity theft which must be served consecutively to the other sentence imposed, resulting in a total sentence of 134 months in federal prison. He will also serve three years of supervision following his release. In addition to the prison sentence, he was ordered to pay restitution to Medicare and Medicaid in the amount of $5,059,198.96, and a money judgment will be entered against him for that amount.
De La Garza and Former RGV DME Owner Marcello Herrera, 40, along with his wife Carla Cantu Herrera, 32, both from Mission, pleaded guilty on Feb. 21, 2013, to conspiring to defraud Medicare and Texas Medicaid. Beatriz Ramos, 28, of Edinburg, another former biller for RGV DME, pleaded guilty to the conspiracy on Oct. 16, 2012. Marcelo Herrera and De La Garza also pleaded guilty to one count of aggravated identity theft for unlawfully using the identity of a beneficiary to bill Medicare and Medicaid $5,000 for a power wheelchair that was not requested, prescribed, needed or delivered.
Marcelo Herrera was sentenced earlier this month to 120 months for the conspiracy as well as the mandatory 24 months for aggravated identity theft for a total of 144 months in federal prison. The court ordered him to pay restitution to Medicare and Medicaid in the amount of $6,103,953.74 and that he forfeit wheelchairs, scooters and other DME items discovered in his leased storage facility in Alamo, which had been rented by him and ultimately seized by the FBI.
From early 2004 through late 2011, Marcello Herrera, who did business as RGV DME in the McAllen area, engaged in and directed a scheme to submit fraudulent claims to Medicare and Texas Medicaid for power wheelchairs, scooters, incontinent supplies, hospital beds and mattresses as well as other DME supplies. At various times, his wife - who admitted to being marketing director, chief financial officer, chief operating officer, office manager, human resources manager and co-owner of RGV DME - and billers De La Garza and Ramos all participated in the conspiracy and aided Marcello Herrera and each other in the submission of fraudulent billings, wire fraud and theft of the identities of beneficiaries and doctors.
In court on Feb. 21, 2013, De La Garza admitted that during his participation in the conspiracy the fraudulent billing exceed $9.6 million for which payments exceeded $5 million. Marcelo Herrera acknowledged he submitted or caused the submission of more than $11.1 million in false and fraudulent claims to Medicare and Texas Medicaid for which he illegally received in excess of $6.1 million, while Carla Herrera admitted that during her participation in the conspiracy, the fraudulent billings exceeded $9.9 million for which they received illegal payments exceeding $5.5 million. Marcelo Herrera, his wife and De La Garza also admitted that approximately 85% of their Medicare and Texas Medicaid billings were false and fraudulent.
The three defendants in court on Feb. 21, 2013, also admitted that marketers were used to obtain Medicare and Medicaid identification numbers and other information from beneficiaries which they in turn used to fraudulently bill Medicare and Medicaid for DME that was either never prescribed or prescribed but never delivered.
Ramon De La Garza has been in custody since his arrest on June 28, 2012. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Sentencing for Carla Herrera and Ramos are set for Sept. 18, and 26, 2013, respectively.
The investigation leading to the charges was conducted by the FBI, the U.S. Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Grady Leupold are prosecuting the case.
Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Grady Leupold are prosecuting the case.
Five from Mahoning Valley Indicted on Federal Firearms ChargesRead the Press Release
Five men from the Mahoning Valley were indicted this week on unrelated cases of being felons in possession of firearms or ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Michael Harver, 24, of Poland; Jawonn Hymes, 22, of Boardman; Andre L. Owens, 38, of Warren; Thomas I. Sledge, 33, of Struthers, and Carl D. Washington, 25, of Warren.
“We will continue to work to get firearms and ammunition off the street and out of the hands of felons who are forbidden by law from having them in the first place,” Dettelbach said. “Cases like this are possible because of the efforts of federal agents and local police working together.”
Harver is accused of having an FIE .38-caliber pistol and ammunition on April 28, 2013, despite a conviction for felonious assault in Mahoning County.
Hymes is accused of having a Smith and Wesson .40-caliber pistol and ammunition on June 27, 2013, despite previous convictions of trafficking in drugs and possession of cocaine in Mahoning County.
Owens is accused of having 9 mm Winchester bullets on May 27, 2013, despite numerous convictions in Trumbull County and Washington County (Pennsylvania) for crimes including sexual battery and multiple cocaine offenses.
Sledge is accused of having a CZ .40-caliber pistol and ammunition on June 5, 2013, despite numerous convictions in Trumbull County, including attempted murder with a firearm specification, felonious assault, having weapons under disability and other crimes.
Washington is accused of having an H&R .22-caliber revolver and ammunition on May 30, 2013, despite previous convictions for felonious assault, aggravated burglary and tampering with evidence in Trumbull County.
These cases are being prosecuted by Assistant United States Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Youngstown Field Office, the Warren Police Department, the Struthers Police Department, the Youngstown Police Department and the Boardman Police Department.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Eight defendants indicted for defrauding the Municipality of Anchorage of cigarette tax revenueRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that eight defendants were indicted last week on charges of mail fraud, money laundering conspiracy, conspiracy to make false statements regarding the distribution of cigarettes and aggravated structuring currency transactions.
Michael Butler, 42, Sun Sims, 50, Kimberly Sims, 29, In Sook Baik, 28, Kyong Hee Kim, 55, Jae Ho Lee, 58, Jae Gak Lee, 60, and Jerry Lee, 58, were charged in a single 20-count indictment. The indictment also alleges forfeiture of funds totaling over $ 1 million dollars and seeks a money judgment in the amount of $3.6 million dollars.
According to lead Assistant U.S. Attorney Stephan A. Collins, the indictment explains that the Municipality of Anchorage imposes an excise tax upon each cigarette purchased within the municipality. The tax is approximately equal to $2.20 per pack of cigarettes. The Municipality provides for an exemption to this excise tax for cigarettes that merchants purchase within the municipality and that are then transported outside of the municipality for resale. The Kenai Peninsula Borough does not impose an excise tax upon cigarettes sold within the borough. Michael Butler and Sun Sims owned and operated Up In Smoke, a tobacco shop located within the Municipality of Anchorage. In addition to Up In Smoke, Butler and Sun Sims owned and operated Golden Eagle Tobacco and Longmere Lake Liquor, both located within the Kenai Peninsula Borough. The indictment alleges that in an effort to avoid paying the municipal cigarette excise tax, Butler and Sun Sims purchased cigarettes after falsely reporting that the majority of the cigarettes were intended for sale at either of their two tobacco stores within the Kenai Peninsula Borough, when in fact those cigarettes were being sold within the municipality.
In addition to selling cigarettes within their own smoke shops, Butler and Sims sold untaxed cigarettes to In Sook Baik, Kyong Hee Kim, Jae Ho Lee, Jae Gak Lee and Jerry Lee, who all operated smoke shops within the Municipality of Anchorage. Baik owned and operated the Arctic/Tudor Shell and Mountain View Shell, where she sold cigarettes. Kim owned and operated the Mini Stop Grocery. Jae Ho Lee owned and operated Cheap Smokes. Jae Gak Lee owned and operated Party Time Liquor. Jerry Lee owned and operated the Lucky Seven Foodmart.
The indictment alleges that between 2009, and continuing up until October 10, 2012, the defendants collectively ordered and purchased approximately 12,350,000 cigarettes, intended for resale within the Municipality of Anchorage through October 10, 2012.
By falsely representing that the ultimate destination for the sale of these cigarettes was outside of the Municipality of Anchorage, the defendants caused the Municipality to lose cigarette excise tax revenue in excess of $1,375,000. During the course of this scheme, Butler, Sun Sims and Kimberly Sims collected and received fees and costs for the wholesale cigarettes totaling approximately $3.6 million dollars from the other defendants.
The indictment also alleges that while participating in this scheme, In Sook Baik evaded financial reporting requirements by structuring deposits made to Northrim Bank and Wells Fargo Bank, N.A. Baik made these deposits between January 4 and July 17, 2012, and the deposits totaled over $225,000.
The United States District Court for the District of Alaska has summoned all of the defendants to appear for their respective arraignments on August 28 and 29, 2013.Assistant U.S. Attorney Stephan A. Collins and Special Assistant U.S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison for mail fraud, a fine of $250,000, or both. The law provides for a maximum total sentence of 20 years in prison for money laundering conspiracy, a fine of $500,000, or both. The law provides for a maximum total sentence of 5 years in prison for conspiracy to make false statements regarding the distribution of cigarettes, a fine of $250,000, or both. The law provides for a maximum total sentence of 10 years in prison for aggravated structuring currency transactions, a fine of $500,000, or both.
Ms. Loeffler commends the Internal Revenue Service, Criminal Investigation Division, the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Anchorage Police Department for the investigation of this case.
The case was investigated under the purview of the Organized Crime and Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, and the Anchorage Police Department. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Douglas Vance Crooked Arm and Kenneth G. Shane Plead Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, before U.S. District Judge Donald W. Molloy, on July 23, 2013, DOUGLAS VANCE CROOKED ARM, age 36, and on July 24, 2013, KENNETH G. SHANE, age 45, residents of Crow Agency, pled guilty to conspiracy to traffic in eagles and migratory birds and unlawfully trafficking in migratory birds. Sentencing has been set for October 22, 2013. They are currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Mark S. Smith, the government stated it would have proved at trial the following:
Operation Hanging Rock" was a U.S. Fish & Wildlife Service investigation into the unlawful sale of migratory bird feathers. As part of that operation, on August 17, 2008, FWS Special Agents (SAs) went to the Crow Fair in Crow Agency. While there undercover, the agents encountered SHANE and his brother-in-law, CROOKED ARM. SHANE gave the agents his contact information and invited them to visit his house.
On November 13, 2008, the agents met with SHANE and CROOKED ARM at SHANE's father's house, south of Garryowen. An agent noticed two golden eagles flying around the area, and said to the other agent, "There's your tail, Liz." SHANE asked "Are you looking for tails?" The agent told SHANE she needed a fan for her dress. SHANE said "My brother-in-law (CROOKED ARM) has got some made, beaded and everything. He likes to hunt and everything." SHANE said "My brother-in-law got some white-tail buck and a muley buck and he is going to leave the carcasses out there." SHANE said CROOKED ARM was "bringing his carcasses out because that's what we're hunting right now," indicating they would put out the carcasses as bait to attract eagles. SHANE also said, "We put the carcass out here and we drive up and ... the black and whites haven't been so good lately, we are waiting for some more snow."
SHANE called CROOKED ARM's cell phone, asked him whether he had any fans for sale. SHANE told CROOKED ARM that the agents might be interested in purchasing them. SHANE then generally pointed out areas where he and CROOKED ARM placed deer and elk carcasses for hunting hawks and eagles. CROOKED ARM arrived at the residence and showed the agents parts of deer carcasses lying in the back of his truck. The agents asked CROOKED ARM if he needed help putting carcasses out, but CROOKED ARM said he could do it himself. One of the agents asked CROOKED ARM how he could get nice deer like those. CROOKED ARM responded, "Poach." The group noticed a golden eagle flying nearby, and SHANE told CROOKED ARM to drop a carcass in that area.
CROOKED ARM then removed one immature golden eagle fan and one magpie fan from his truck cab and showed them to the agents. CROOKED ARM then left to put out the deer carcass. SHANE told the agents he and CROOKED ARM wanted $1,500 for the golden eagle fan and $800 for the magpie fan. SHANE told one of the agents that he and CROOKED ARM had obtained the golden eagle used to make the fan the previous Christmas. The agent paid SHANE $1,500 cash and received the golden eagle fan from him. The agents also placed an order for a magpie fan. One of the agents later saw SHANE give CROOKED ARM a portion of the $1,500 they had paid for the golden eagle fan. SHANE told the agents that CROOKED ARM needed this money to make a payment on his pickup truck. SHANE said he and CROOKED ARM had a good thing going, working hard all winter to kill and trap eagles. SHANE told the agents that CROOKED ARM made regalia to sell while he stayed home taking care of his kids, and this helped the family get by during the winter.
On January 29, 2009, an agent called SHANE, and SHANE said he and CROOKED ARM were still putting out deer and elk carcasses to trap and kill eagles and hawks. The agent asked SHANE for a nice tail, and SHANE said CROOKED ARM had several so they would save one for him.
On February 11, 2009, an agent met with SHANE and they drove to CROOKED ARM's residence, in Hardin. The agent told CROOKED ARM that the other agent wanted to buy another eagle fan and a winter hawk fan. CROOKED ARM said he had plenty of tails and had sold four golden eagle fans and several hawk fans the previous week to some people from New Mexico. CROOKED ARM produced two eagle feathers from an adjoining room, and told the agent that several of his tails were similar to these feathers. CROOKED ARM agreed to a $500 deposit, and told the agent to e-mail him the specifics for the fans. CROOKED ARM gave the agent his phone numbers. The agent paid CROOKED ARM the $500 deposit.
On March 8, 2009, CROOKED ARM sent one of the agents an e-mail containing photos of a bald eagle fan and a winter hawk (rough-legged) tail he intended to use for her hawk fan. CROOKED ARM wrote that he only had two weeks to finish the agents's hawk fan before a powwow in Denver. He asked the agent if the hawk in the photo was acceptable. Later that day, in a second e-mail to the agent, CROOKED ARM wrote that the bald eagle fan from the photo took extra time because he had to send it to a friend to clean off the blood, and there was a lot of blood.
The next day, March 9, 2009, CROOKED ARM called the agent and asked what colors she wanted on her fan. On March 10, 2009, CROOKED ARM called the other agent to tell him that his $500 deposit would be payment for the "winter hawk" fan, but the bald eagle tail fan from the photo would cost $1,000 because he had to pull a few strings to get it in time for the Denver powwow.
On the morning of March 11, 2009, a FWS Special Agent served a search warrant on CROOKED ARM's residence in Hardin. They seized, among other things, a hand-written note containing the undercover agent's order for a winter hawk feather fan, and one bald eagle feather fan. After agents read him his rights, CROOKED ARM signed an Advice of Rights Form, and agreed to cooperate. CROOKED ARM retrieved the undercover agent's order from the top of his refrigerator and admitted he knew the two undercover agents in connection with the note.
That same morning, another FWS Special Agent, accompanied by six other special agents, served a search warrant on SHANE's father's home south of Garryowen. SHANE arrived a few minutes after the agents. The agents advised SHANE of the search warrant and SHANE agreed to speak with them briefly. A Special Agent told SHANE he would not be arrested and explained the undercover agent's true identity. SHANE admitted that he knew it was illegal to sell hawk and eagle parts.
SHANE admitted that CROOKED ARM sold a golden eagle peyote fan to the undercover agents, but claimed he never counted the money they paid him, having given the entire amount to CROOKED ARM. SHANE also told the agents he saw one of the undercover agents show CROOKED ARM a sketch and discuss purchasing a hawk fan with beadwork to match her skirt. SHANE said he had a permitted eagle from the U.S. Fish and Wildlife Service, which he had used to make a bustle for his dance costume, stored in the basement. The agents photographed this bustle, but did not seize it. SHANE said that CROOKED ARM had called him the day before to ask for one of the undercover agent's phone number to complete the sale of a bronze hawk fan and bald eagle tail fan.
They each face possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release on Count I, and possible penalties of 2 years in prison, a $250,000 fine and 1 year supervised release on Count II.
The investigation was conducted by the U.S. Fish and Wildlife Service.
Doctor Admits Accepting $1.8 Million in Bribes for Test Referrals to New Jersey Clinical LaboratoryRead the Press Release
NEWARK, N.J. – A Morris County, N.J., doctor today admitted accepting $1.8 million in bribes to refer millions of dollars in business to Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.
Frank Santangelo, 43, of Boonton, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with violating the Travel Act, money laundering and failing to file tax returns.
“Patients should be able to trust that their doctors are prescribing only tests that are necessary and are recommending providers who are best qualified to perform those tests,” U.S. Attorney Fishman said. “In pleading guilty today to the charges against him, Dr. Santangelo admitted he violated that trust. He committed the type of fraud that drives up the cost of health care and compromises patient care.”“The investigation of Dr. Santangelo is another sad story of a doctor putting his greed ahead of his oath of fidelity to his patients,” FBI New Jersey Special Agent in Charge Aaron T. Ford said. “The plea today is a direct result of the joint efforts of Health and Human Services-Office of Inspector General, United States Postal Inspection Service, Internal Revenue Service, and Federal Bureau of Investigation, who remain committed to protecting the American public from those who would abuse the health care needs of innocent patients for their own financial gain.”
According to documents filed in this and other cases and statements made in court:
Santangelo, who has offices in Montville, N.J., and Wayne, N.J., received more than $1.8 million in bribe payments from BLS for referrals for which the lab was paid more than $6 million by Medicare and various insurance companies. After receiving more than $800,000 from BLS through sham lease agreements and sham service agreements between 2006 and 2010, Santangelo began receiving bribes from BLS through a third party – often tens of thousands of dollars a month – totaling more than $1 million between 2010 and his arrest in April 2013.
Santangelo acknowledged the authenticity of text messages between himself and BLS president and part owner David Nicoll in which Santangelo referred to ordering unnecessary tests to increase referrals to BLS in exchange for bribes. In one text message conversation, Santangelo said he and another doctor had “put our heads together and added a significant amount of testing…. The testing is 90 percent legit.” Santangelo detailed his plan to send $1 million per month in blood testing referrals to BLS by increasing the number of blood tests being ordered, including medically unnecessary tests.
In another text message conversation, David Nicoll wrote to Santangelo about the status of their referral agreement, stating that BLS “really can’t afford the 40-50,000 [dollars] a month if the girls aren’t going to be drawing any blood,” to which Santangelo responded by stating, “U no u can count on me!” and “I never let u down!”
He also pleaded guilty to money laundering, admitting that he used another individual in an attempt to hide the bribes from BLS, and to failing to file tax returns from 2009-2011 and pay taxes owed during that time period.
On April 9, 2013, federal agents arrested David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo. Last month, David and Scott Nicoll and four other associates of BLS pleaded guilty to charges related to their involvement. So far, nine employees or associates of BLS, and four physicians have pleaded guilty to their roles in the bribery scheme.
“When a doctor prescribes a medical test, patients should feel confident that it is in their best interest,” said Thomas O’Donnell, Special Agent in Charge, Office of Inspector General, Department of Health and Human Services, New York region. “But when that doctor accepts more than a million dollars in bribes as Dr. Santangelo did, he jeopardizes patient-doctor trust, his patients’ health, and the integrity of the Medicare program, and will be prosecuted accordingly.”
The bribery count to which Santangelo pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. He also faces a maximum potential penalty of 20 years in prison and a $500,000 fine on the money laundering charge, or twice the gross gain or loss from the offense, and a maximum potential penalty of one year in prison and a $100,000 fine on the tax charge. Sentencing for Santangelo is scheduled for Oct. 24, 2013.
Santangelo has also agreed to forfeit more than $1.8 million. The investigation has so far recovered more than $2 million through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell; IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.
The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
13-308
Defense counsel: Thomas Ambrosio Esq., Lyndhurst, N.J.
Santangelo Information
District Man Pleads Guilty to Possession of Child PornographyRead the Press Release
WASHINGTON – Dustin Metz, 30, of Washington, D.C., pled guilty today to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., John P. Torres, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), Washington, D.C., and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Metz entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Senior Judge Royce C. Lamberth is to sentence him on Oct. 17, 2013. Metz faces a maximum sentence of 20 years of imprisonment, as well as a potential fine of $250,000.
According to a statement of offense signed by the defendant as well as the government, between September 2012 and April 2013, Metz possessed child pornography on his personal computer at his residence in Washington, D.C. On various dates during that time-frame, Metz used a peer-to-peer file sharing program to download to his computer numerous images and videos depicting child pornography and at the same time make those images and videos available for other users of the program to download themselves. Metz viewed the images and videos and then deleted them.
On April 17, 2013, law enforcement executed a search warrant at Metz’s home and seized various items, including two laptop computers. Law enforcement subsequently discovered evidence showing that Metz had possessed child pornography on both of the computers, including at least one video depicting child pornography and remnants of additional video and image files indicative of child pornography. Metz was arrested on May 9, 2013.
In announcing the guilty plea, U.S. Attorney Machen, Special Agent in Charge Torres, and Chief Lanier praised the work of the HSI special agents and MPD detectives who investigated the case. They also commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who is prosecuting the case.
13-258Court Bars South Carolina Tax Return Preparer from Preparing Returns for OthersRead the Press Release
The Justice Department announced today that a federal district judge in Charleston, S.C. permanently barred Stacy Middleton from preparing federal income tax returns for others.
According to the government’s complaint, Middleton and a second defendant, George Jenkins, prepared federal income tax returns in Charleston through a business named MBM Tax and Accounting Services LLC. As alleged, Middleton prepared returns for his clients that unlawfully understated his clients’ income tax liabilities and overstated his clients’ refunds through a variety of schemes. The complaint alleged that Middleton prepared returns that unlawfully created fictitious deductions and credits as well as overstating and duplicating existing deductions and credits. The complaint further alleged that Middleton created fraudulent copies of Form 1099 on behalf of customers, creating fake income to enable Middleton to claim the Earned Income Tax Credit on behalf of his clients. According to the complaint, the Internal Revenue Service (IRS) examined 842 returns prepared by Middleton and Jenkins, and over 93 percent of those examinations resulted in an adjustment to their client’s tax liability. According to the complaint, the IRS estimated that the U.S. Treasury lost as much as $55 million in revenue on account of Middleton’s and Jenkins’ misconduct.
Middleton consented to the entry of the injunction. The government’s claims remain pending against Jenkins and will be addressed in further court proceedings.
In the past 10 years the Justice Department’s Tax Division has obtained injunctions against hundreds of tax return preparers and tax fraud promoters. Information about these cases is available at www.justice.gov/tax/taxpress2013.htm.
Related Materials:
United States v. Stacy Middleton, et al.
Permanent Injunction (PDF)
Conspirator Sentenced to 3 Years in Prison in Bank Fraud SchemeRead the Press Release
Used His Employment With a Residential Mental Health Program To Steal
Identity Information of Clients to Open Fraudulent Bank Accounts
for Personal Use
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Derrick Elrod, age 35, of Philadelphia, Pennsylvania, today to three years in prison, followed by three years of supervised release, for bank fraud and aggravated identity theft in connection with a scheme to use stolen, personal identifying information of individuals to open bank accounts and fraudulently obtain cash, merchandise and services.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Wicomico County Sheriff Michael A. Lewis; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
“The investigation of financial crimes is an HSI priority,” said HSI Special Agent in Charge in Baltimore William Winter. “Derrick Elrod abused his position of trust by stealing identity information that was entrusted to him to facilitate a fraud scheme for his own personal benefit. HSI will continue using all its resources to bring to justice individuals like Elrod who think that their illegal actions can go undetected.”
“Today's sentencing is another example that crime really does not pay,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation welcomes opportunities to assist the Department of Justice and their law enforcement partners with dismantling criminal conspiracies profiting from bank fraud and identity theft.”
Elrod worked for Resources for Human Development, Inc. (RHD), a nonprofit social services organization headquartered in Philadelphia. Elrod was an advisor at a residential program that supports individuals with mental health needs.
According to Elrod’s plea agreement, in at least April 2010, Elrod became part of a bank fraud conspiracy led my Christopher Devine when he opened a checking account into which Devine and his co-conspirators deposited fraudulent checks totaling $4,800. Devine and others at his direction then made approximately $2,028.83 in cash advances and retail purchases before the bank returned the checks for insufficient funds.
After that, Elrod used his position at RHD to steal the personal identifying information of past or present residents of RHD. Elrod sold the personal information of at least 40 individuals who were residents of RHD programs to Devine during Devine’s many trips to Philadelphia.
Over the course of the scheme, Devine and his conspirators used the stolen information of at least four RHD residents to open checking accounts at banks, and deposited at least $11,598 in fraudulent checks into those accounts. Approximately $9,858 in cash advances and retail purchases were made from those accounts before the banks returned the checks for insufficient funds. Devine even paid a friend to create a fraudulent driver’s license using the stolen information of one of the victims, but with Devine’s photo.
In addition, Devine used the stolen personal information of RHD program residents to file at least 13 false tax returns for the 2010 tax year, claiming $51,987 in fraudulent refunds. Many of the false refunds were direct deposited into bank accounts controlled by Devine through the bank fraud scheme. The fraudulent refunds received through the tax scheme totaled $36,552.
The stolen personal information of 15 RHD program residents was used in the bank fraud and tax schemes.
Christopher Andre Devine, age 33; Quanishia Williamson-Ross, age 31; Quashonna Williamson, age 26, and Lenee E. Williamson, age 22, all of Salisbury, Maryland, Frederica, Delaware and Philadelphia, Pennsylvania; and John Waters, age 38, of Philadelphia, previously pleaded guilty to their participation in the conspiracy. Devine was sentenced to 121 months in prison, Williamson-Ross was sentenced to 42 months in prison; Lenee and Quashonna Williamson were each sentenced to three years in prison; and Waters was sentenced to 27 months in prison.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore, the Wicomico County Sheriff’s Office, IRS-CI and the Social Security Administration - Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Paul E. Budlow and Kristi N. O’Malley, who prosecuted the case.
Commodities Trader Indicted for $300,000 Ponzi SchemeRead the Press Release
Earlier today, a 28-count federal indictment was unsealed in federal court in Brooklyn charging Jeffrey Shalhoub with operating a Ponzi scheme to defraud investors in his unregistered commodities trading pool.1 The indictment alleges that Shalhoub solicited his alleged victims to invest money in his company, The 9 Group, Ltd., which purportedly pooled investor money and used the money to trade in the commodities futures markets. Shalhoub told his investors that they would receive returns of up to 10% of their principal investment every week through his investments in commodities futures. The indictment charges that after he solicited approximately $300,000 of investor money, Shalhoub lost a substantial sum of this money through his trading activities, and misappropriated much of the remaining funds by keeping the money for himself. The defendant allegedly concealed the theft and losses by sending his investors fraudulent account statements which falsely showed that his investors’ accounts were earning a rate of return of up to 5.2% each week. The indictment further alleges that because of his trading losses and theft of investor funds, Shalhoub could not pay his existing investors their expected investment returns and, therefore, had to use new investor money to pay purported earnings to the existing investors.
Shalhoub was arrested earlier today. He will be arraigned in United States District Court for the Eastern District of New York before United States Magistrate Judge Robert M. Levy. The case has been assigned to United States District Judge Sterling Johnson, Jr.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service.
“As alleged in the indictment, Shalhoub employed fraud and deceit to take advantage of victims who sought to invest in America’s markets. His promises of high returns were all a criminal mirage, propped up by account statements that were no more than fairy tales,” stated United States Attorney Lynch. “Today’s arrest demonstrates the Department of Justice’s continuing commitment to investigate and prosecute those who commit financial crimes, particularly those who haven’t gotten the message that we will not tolerate Ponzi schemes.” Ms. Lynch thanked the United States Postal Inspection Service for its work on the investigation and also acknowledged the Commodities Futures Trading Commission for its assistance.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler Smith, David C. Woll, Jr., and Brendan G. King.
This prosecution was the 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. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant
JEFFREY SHALHOUB
Age: 38
Residence: Staten Island, NY_____________________________
1The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Church Youth Leader Pleads Guilty to Sexual Exploitation of ChildrenRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Norwood, Mo., man who volunteered as a church youth leader has pleaded guilty in federal court to two counts of enticing minors for illegal sexual activity.
Brent “Pete” Turley, 22, of Norwood, pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, July 23, 2013, to the charges contained in a July 24, 2012, federal indictment.
Turley pleaded guilty to using the Internet and a cell phone to attempt to entice a child victim to engage in illegal sexual activity. A law enforcement officer was using the child victim’s phone to investigate after the parents contacted authorities. Turley made arrangements with the undercover officer to meet the child victim at a local park, where he was arrested on March 19, 2012.
Turley also pleaded guilty to a separate count of using the Internet and a cell phone to entice a child victim to engage in illegal sexual activity. Turley admitted that he engaged in illicit sexual activity with a 15-year-old victim.
Under federal statutes, Turley is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Child Pornography Charges Filed on Sherrodsville ManRead the Press Release
Robert S. Terry, 62, of Sherrodsville, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 12, 2013, through on or about May 18, 2013, Terry knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.
On June 21, 2013, images of child pornography were also found on his 8GB flash drive, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Canton Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chief Engineer from M/t Stolt Facto, Inigo Albina, Sentenced for Obstruction of JusticeRead the Press Release
INIGO ALBINA, age 57, a citizen of the Phillipines, was sentenced today to 3 years probation and fined $10,000 by U. S. District Judge Stanwood R. Duval, Jr., for obstruction of justice in violation of Title 18, United States Code, Section 1505, announced U. S. Attorney Dana J. Boente.
According to the court documents, ALBINA served as the Chief Engineer of the M/T Stolt Facto, a 26,328 gross ton oil tanker,from October 18, 2012 until on or about January 30, 2013. ALBINA was responsible for the overall operation of the engine room which included maintaining the Oil Record Book. During his tenure as Chief Engineer of the M/T Stolt Facto, ALBINA made and signed all the entries in the Oil Record Book. ALBINA’s entries stated that the bilge water on the vesselhad passed through the Oil Water Separator prior to being discharged overboard.
Contrary to the statements in the Oil Record Book, the contents of the bilge wells and bilge holding tank were actually pumped into the sewage holding tank with hoses that stretched upward onto the uppermost deck of the engine room and around the floor of the engine control room by-passing the Oil Water Separator. From the sewage holding tank, the bilge water was discharged into the ocean. ALBINA did not record these exceptional discharges in the Oil Record Book.
On or about January 15, 2013, the M/T Stolt Facto was boarded by the United States Coast Guard pursuant to its 89(a) authority while the vessel was anchored in the Mississippi River, near New Orleans, Louisiana, and within the Eastern District of Louisiana. During the boarding, the Coast Guard inspectors found the hoses and pump used to by-pass the Oil Water Separator. When the Coast Guard inspectors questioned the engine room crew about the purpose for the equipment and the operation of the Oil Water Separator, all except one engineer, denied that they by-passed the Oil Water Separator despite some of them having been ordered to assist with the connection of the hoses and pumps.
After the Coast Guard’s initial interviews of the engine crew, ALBINA asked each one how he had responded to the Coast Guard’s questions. ALBINA then conducted an all-hands meeting with the engineers and lower level engine room crew. The illegality of the operation was discussed, but ALBINA told everyone in the meeting to deny knowledge of the hoses going to the sewage holding tank by-passing the Oil Water Separator. ALBINA admits that he was trying to influence the Coast Guard inspection by telling the crew to lie in order to prevent the Coast Guard from detecting that the hoses and pump were used to by-pass.
The case was investigated by the United States Coast Guard. The case was prosecuted by Emily Greenfield.
Canton Man Sentenced to More Than 17 Years in Federal Prison for Producing Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHAEL CRAWFORD, 36, of Canton, was sentenced today by United States District Judge Michael P. Shea in Hartford to 210 months of imprisonment, followed by a lifetime term of supervised release, for producing child pornography.
“The U.S. Attorney’s Office aggressively prosecutes child exploitation crimes, and this lengthy prison sentence should send a loud and clear message that the penalties associated with these crimes are appropriately severe,” stated Acting U.S. Attorney Daly. “I commend Homeland Security Investigations, the Connecticut State Police and the Canton Police Department for investigating this matter and protecting children from future harm by this defendant.”
According to court documents and statements made in court, in July 2012, law enforcement officers discovered that an individual from Connecticut had been posting photographs of children on a Russian file-sharing website. On July 5, 2012, officers executed a state search warrant at CRAWFORD’s residence. On that date, CRAWFORD admitted that he posted images to the Russian website, that he had taken photographs of a three-year-old minor victim and posted them on the site, and that he had exchanged photographs of the minor victim in order to receive better photos from others in trade. A subsequent search of CRAWFORD’s email account revealed seven sexually explicit photographs of the minor victim taken by CRAWFORD. CRAWFORD had e-mailed four of the images to other individuals.
In addition to the pictures of the minor victim that he had taken, CRAWFORD’s email account contained approximately 777 images and 24 videos of child pornography.
CRAWFORD has been detained since his arrest on January 9, 2013. On May 1, 2013, he pleaded guilty to one count of production of child pornography.
This matter was investigated by Homeland Security Investigations, with assistance from the Connecticut State Police and the Canton Police Department. The case was prosecuted by Assistant United States Attorneys Sarala V. Nagala and Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]California Man Pleads Guilty to Interference with A Flight CrewRead the Press Release
Bryan Ray Allen, 32, of San Juan Capistrano, California, faces an agreed sentence of forty-eight (48) months in federal prison after admitting to interference with a flight crew, United States Attorney Robert Pitman, FBI Special Agent in Charge Mark Morgan, El Paso Division, and Midland Police Chief Price Robinson announced today.
Appearing in United States District Court before Judge Robert Junell in Midland this afternoon, Allen pleaded guilty to one count of interference with a flight crew. According to the factual basis filed in the case, on May 23, 2013, Allen boarded Southwest Airlines flight 863 in Los Angeles, California, with a final destination of Dallas, Texas. The flight had stops in Las Vegas, Nevada, and Midland, Texas. Allen admitted that in the twenty-four hours before the flight he smoked methamphetamine twice and drank whiskey at the airport. On the flight from Las Vegas to Midland, Allen began hallucinating. He believed the pilots of the plane were evil and that it was a “plane ride to hell”. Allen felt he needed to either get off the plane or get into the cockpit to stop the pilots. As the plane began its descent into Midland, after all the passengers were instructed to remain seated, Allen approached the cockpit door, ignoring flight crew instructions to return to his seat and attempted multiple times to enter the cockpit. Once the plane landed, Allen pushed a flight attendant out of the way of the cabin door and ran up the jet way ramp into the airport where he was met by Midland Police Department officers who had to physically subdue him.
Allen has been and will remain in the custody of the United States Marshals pending a sentencing hearing on October 10, 2013, before United States District Judge Robert A. Junell in Midland.
This case was investigated by the Federal Bureau of Investigation with assistance from the Midland Police Department. Assistant United States Attorney V. LaTawn Warsaw is prosecuting this case on behalf of the Government.
Branson Restaurant Manager Indicted for Meth, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the manager of the La Iguana Mexican Restaurant in Branson, Mo., has been indicted by a federal grand jury on charges related to drug trafficking and illegally possessing firearms.
Jose Antonio Garcia-Gonzalez, 39, of Branson, was charged in a two-count indictment returned by a federal grand jury in Springfield on Tuesday, July 23, 2013. Garcia-Gonzalez is the manager of the La Iguana Mexican Restaurant in Branson.
The federal indictment alleges that Garcia-Gonzalez possessed 500 grams or more of methamphetamine on July 16, 2013, with the intent to distribute. The indictment also alleges that Garcia-Gonzalez was an illegal alien in possession of several firearms. Garcia-Gonzalez allegedly possessed a Jennings Jimenez Arms 9mm semi-automatic firearm, a KelTek 9mm semi-automatic firearm, a Springfield Armory 9mm semi-automatic firearm, a Spikes Tactical AR-15 (7.62X39) rifle and ammunition, all of which was seized by law enforcement officers from his residence on July 16, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Department of Homeland Security’s Customs and Border Protection Unit, the Drug Enforcement Administration, the Branson, Mo., Police Department and the Missouri Department of Revenue.Boardman Man Charged with Aiming Laser Pointer at Medical HelicopterRead the Press Release
A federal grand jury returned a one-count indictment charging Travis D. Krzysztofiak, age 34, of Boardman, Ohio, with aiming a laser pointer at an aircraft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about June 15, 2013, Krzysztofiak aimed the beam of a laser pointer at a medical helicopter on approach to Akron’s Children’s Hospital in Boardman, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigaton and the Boardman Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Apple Valley Woman and Farmington Man Sentenced for Armed Robbery of Northfield HotelRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 23-year-old Apple Valley woman was sentenced in connection with the armed robbery of America’s Best Value Inn and Suites in Northfield. United States District Court Judge Paul A. Magnuson sentenced Julie Ann Campana to 36 months in prison on one count of aiding and abetting interference with commerce by robbery. Campana was indicted on December 3, 2012, and pleaded guilty on April 2, 2013.
On July 17, 2013, Campana’s co-defendant Eric Wayne Forcier, age 27, of Farmington, was sentenced to 240 months on two counts of interference with commerce by robbery pursuant to the Hobbs Act; one count of using, carrying, possessing and brandishing a firearm during and in relation to a crime of violence; and one count of being a felon in possession of a firearm. He also pleaded guilty on April 2, 2013.
In his plea agreement, Forcier admitted that on October 29, 2012, he entered the hotel wearing a Halloween mask, pointed a handgun at the night manager, and demanded money from the cash register and the safe. After receiving $114, he ran outside to an awaiting vehicle. Shortly after the car left the scene, police stopped it and arrested Campana, the driver. Forcier fled from police, discharging his handgun, but was arrested later in the day. Officers recovered items from the vehicle as well as along the path that Forcier took in running from the police. Those items included the Halloween mask and a .32-caliber, semi-automatic pistol.
Forcier also admitted robbing four other businesses. On October 22, 2012, he stole $1,850 from Eddy’s Bar & Grill in Inver Grove Heights. He admittedly entered the bar, pointed a handgun at several employees, and fired it at the ceiling. On October 15, 2012, he stole $60 from an Apple Valley Domino’s Pizza; on October 18, 2012, he stole $154.41 from a Bloomington SuperAmerica; and on October 19, 2012, he stole $200 from an Apple Valley Jiffy Lube.
Because he is a felon, Forcier is prohibited under federal law from possessing firearms at any time. His prior Dakota County convictions include second-degree drug possession (2008), possession of stolen property (2008), two counts of fifth-degree drug possession (2007), and fleeing police in a motor vehicle (2007).
In her plea agreement, Campana admitted she was the lookout and get-away driver for Forcier on October 29. Campana also admitted that before the robbery, she questioned the hotel’s night manager about the hotel’s nighttime operations. In addition, Campana admitted she was Forcier’s get-away driver for the robberies at Eddy’s, SuperAmerica, and Domino’s.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Dakota County Sheriff’s Office; the Rice County Sheriff’s Office; and the police departments of Apple Valley, Bloomington, Inver Grove Heights and Northfield. It was prosecuted by Assistant U.S. Attorneys Amber M. Brennan and Allen A. Slaughter.Another Plea in Panama Unit CaseRead the Press Release
McALLEN, Texas – Alexis Espinoza, 30, has entered a guilty plea to one count of conspiring to possess with the intent to distribute more than five kilograms of cocaine and more than 500 grams of methamphetamine, United States Attorney Kenneth Magidson announced today.
Espinoza, of McAllen, admitted that during 2012, he utilized his position as a law enforcement officer to traffic narcotics. Espinoza, a former officer with the Mission Police Department (MPD), along with other MPD officers and deputies of the Hidalgo County Sheriff’s Offic, used his law enforcement authority to steal narcotics which were then sold to local drug dealers.
U.S. District Judge Randy Crane, who accepted the guilty plea, has set sentencing for Sept. 10, 2013, at which time he faces a minimum of 10 years and up to life in prison, along with a potential fine up to $10 million. Espinoza was permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by the Drug Enforcement Administration, Homeland Security Investigations, FBI, Homeland Security Investigations - Office of Professional Responsibility and Texas Department of Public Safety. Assistant United States Attorneys James Sturgis and Anibal Alaniz are prosecuting the case.
Anchorage Man sentenced to 60 months in prison for assault on a federal officerRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage was sentenced here in federal court to prison for an assault on a Federal Officer.
Kyle Scott Hansen, 26, from Anchorage, Alaska, was sentenced on July 23, 2013, by U.S. District Court Judge Sharon L. Gleason to 60 months in prison and 3 years of supervised release. Hansen was also ordered to pay $78,310.44 to the Joint Base Elmendorf-Richardson for damage he caused. Hansen had previously pled guilty to count one of an indictment charging him with assault on a federal officer.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, just after midnight on January 19, 2013, Hansen drove a blue GMC pickup truck through the Boniface Gate of the Joint Base Elmendorf-Richardson (“JBER”). When Hansen drove onto JBER, he was unauthorized to be on the facility and drove through a closed lane at the gate. Once on JBER, Hansen ignored JBER security police attempts to conduct a traffic stop and continued driving through JBER at speeds up to 60 miles per hour. When Hansen reached the Government Hill Gate, he discovered it was closed and turned around and headed back towards the Boniface Gate and in the process of turning around, he damaged one security police vehicle.
Security police set up a roadblock in an attempt to stop Hansen and at the roadblock, Hansen drove his vehicle through an opening between a vehicle and a light pole. While driving through this opening, Hansen struck a Senior Airman’s service rifle that he was holding and the rifle then struck the Senior Airman in the throat and caused him to fall down an embankment. Hansen then continued through the now closed Boniface Gate causing significant damage to the gate. Hansen was contacted and arrested later in the day in Eagle River, Alaska. His vehicle was later recovered in the Airport Heights neighborhood of Anchorage on January 20, 2013. The investigation revealed that prior to entering JBER, Hansen had consumed Coricidin D, a cold and flu medicine that Hansen used as a replacement for illegal drugs and alcohol.
At the sentencing hearing, Judge Gleason was “troubled” by a “26 year old man who already has 4 prior convictions for driving under the influence of alcohol and one prior conviction for felony eluding”. The Judge echoed Mr. Cavanaugh’s comments that Hansen has been fortunate to have not seriously injured anyone as a result of his prior impaired driving offenses. Judge Gleason also noted that the prior sentences Hansen had received as a result of his prior alcohol/driving and felony eluding convictions, had not served sufficiently as a deterrent to future behavior, given that the incident at JBER happened so soon after he had been released from jail for his most recent conviction.
Judge Gleason recognized that “protection of the public” was one of her main sentencing goals and that, “when intoxicated; Hansen was a danger to the community and the public needs to be protected from him.”
Ms. Loeffler commended the United States Air Force Office of Special Investigations at JBER and the Anchorage Police Department for the investigation leading to the successful prosecution of Hansen.
Alabama Man Pleads Guilty in Connection with Assault of U.S. Border Patrol Agents Near Langtry, TexasRead the Press Release
Incident resulted in the deaths of two area residents and serious injury to a third
David Steiner, a 39–year-old Vinegar Bend, AL, resident faces 20 years in federal prison after pleading guilty to felony assault of a U.S. Border Patrol agent announced United States Attorney Robert Pitman and Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol.
Appearing before United States Magistrate Judge Collis White in Del Rio this morning, Steiner pleaded guilty to one count of assaulting, resisting, or impeding an officer by using a deadly or dangerous weapon. By pleading guilty, Steiner admitted that on May 25, 2012, he used his vehicle to charge at three Border Patrol agents near Langtry, Texas, during an attempt to avoid potential detention after fleeing from a traffic stop near Comstock, Texas.
As a result of Steiner’s actions, the agents were forced to drive off the paved roadway to avoid being struck by Steiner. Agents gave chase and the pursuit continued toward Sanderson, Texas. The pursuit ended when Steiner hit an oncoming vehicle killing two occupants and gravely injuring the driver.
Steiner, who has remained in custody since his arrest, is scheduled to be sentenced at 9:00am on December 17, 2013, before United States District Judge Alia Moses.
This case was investigated by agents with the Department of Homeland Security – U.S. Customs and Border Protection Office of Internal Affairs with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kinney County Sheriff’s Office, Terrell County Sheriff’s Office and the Texas Department of Public Safety. Assistant United States Attorney Ralph Paradiso is prosecuting this case on behalf of the Government.
Akron Man Indicted for Heroin DistributionRead the Press Release
A federal grand jury returned an indictment charging an Akron man with possession with intent to distribute and distribution of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Willie L. Sanders, Jr., age 27, is accused of possessing appoximately 27.9 grams of heroin on March 21, 2013, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Akron Police Department Street Narcotics Uniformed Detail (SNUD), and the Summit County High Intensity Drug Trafficking Area (HIDTA) initiative. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
23 July 2013
former Department of Defense Auditor sentenced to two years probation and $5000 fineRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was sentenced in federal court in Anchorage for violating conflict of interest laws by representing a contractor on issues she previously handled for the government.
Jodi Ann Andres, 48, of Anchorage, Alaska, was sentenced July 22, 2013, by U.S. District Court Judge Sharon L. Gleason to two years’ probation and ordered to pay a $5000 fine.
According to Assistant U.S. Attorney Retta-Rae Randall, who prosecuted the case, and information presented in court, Andres was an auditor with the Department of Defense’s Defense Contract Audit Agency (DCAA) from January 2003 to September 2006. During that time, she was the primary auditor of cost proposals, labor rates and claims for the Missile Defense Agency. The Missile Defense Agency is responsible for developing, testing and fielding an integrated Ballistic Missile Defense System for the United States.
The Alaska Aerospace Corporation, formerly the Alaska Aerospace Development Corporation, was established in 1991 by the State of Alaska to develop a high technology aerospace industry in the state. Alaska Aerospace became a contractor for the Missile Defense Agency in 2003, when pursuant to a five year contract; Alaska Aerospace provided support for launches from the Kodiak Launch Complex in Kodiak, Alaska.
In September 2006, Andres left employment with the DCAA and began employment with Alaska Aerospace as its Controller. In July 2008 Andres represented Alaska Aerospace during communications and negotiations with the DCAA about the same Missile Defense Agency contract she had previously audited, with the intent to influence the DCAA about that contract, in violation of a lifetime restriction which barred such communications.
Ms. Loeffler commends the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, for the investigation of this case and the Defense Contract Audit Agency who referred the matter to the Office of Inspector General, Defense Criminal Investigative Service
Vancouver Man Sentenced to 14 Months in Prison for Lying About his Ability to Conduct Lead TestingRead the Press Release
PORTLAND, Ore. – Martin Glaves Kuna, 66, of Vancouver, Washington, was sentenced yesterday to 14 months in prison by the U.S. District Judge Michael H. Simon after pleading guilty today to one count of wire fraud. Kuna falsely advertised and told customers that he was certified to perform lead-based paint inspections and testing in homes where children resided, when in fact, he was not properly qualified or certified by state authorities to do so.
In response to medical studies on the health hazards presented to children by lead-based paint, Congress passed the Residential Lead-Based Paint Hazard Reduction Act (“Lead Hazard Act”). The Lead Hazard Act authorized the Environmental Protection Agency to develop regulations to ensure, among other things, that individuals engaged in lead-based paint inspections and testing were properly trained and certified. Oregon’s rules for the certification of individuals and firms engaged in lead-based paint inspections and testing prohibit any person or firm to perform lead-based paint inspections and testing in target housing or child-occupied facilities without first receiving appropriate certification.
From May 2008 to September 2012, Kuna advertised his services to conduct lead-based paint inspections and testing, and indicated to individuals via the internet and in person that he was certified to do so. Kuna, however, had not received the required certification and training to inspect and test target housing or child-occupied facilities for lead-based paint despite his representations that he had. Over the course of the scheme, Kuna conducted more than ten (10) such inspections. In one instance where Kuna performed lead-based paint inspections and testing, children resided in the home and Kuna provided the home owner a false negative for the detection of lead. Evidence introduced by the government at sentencing demonstrated that the defendant failed to perform the appropriate tests to determine lead in the home. As a result, some of the children in the home experienced increased lead levels in their blood.
In January 2012, civil EPA investigators intervened in Kuna’s business activities and ordered him to stop lead-based paint inspections and testing. Despite EPA’s order, Defendant Kuna continued to advertise and perform lead-based paint inspections and testing through September 2012. In sentencing Kuna, Judge Simon declared, “Our first duty in society as adults is to protect children.” Following his findings and imposition of 14 months in prison, Judge Simon told the defendant, “The bottom line is, the actions you engaged in put children at risk. Our society just cannot allow that.”
“Protecting children and families is the guiding principle behind our work,” said U.S. Attorney Amanda Marshall. “This investigation and prosecution uncovered a significant public health risk. The defendant’s lies caused young children to be exposed to dangerous levels of lead. This office, along with our partners at EPA, will continue to seek criminal penalties for those who break the law and threaten the health of our children.”
“Defendant Kuna, untrained and uncertified to perform the lead-based paint inspection and testing services he sold to unsuspecting families, put children’s health in jeopardy,” said Tyler Amon, Special Agent-in-Charge of EPA’s Criminal Investigation Division in Seattle. “I commend the diligence of the Smith family, who by questioning the services of Mr. Kuna, started a federal investigation and prevented further exposure and injury to their children. This prosecution and conviction speaks for itself – if ‘business-as-usual’ includes exposing children to lead, you will pay the price.”
The investigation was conducted by the Environmental Protection Agency, and the prosecution was handled by Assistant U.S. Attorney Michelle Holman Kerin.
Two Women Sentenced for Nevada Medicaid Fraud SchemeRead the Press Release
RENO, Nev. – Two women were sentenced today for their guilty pleas to federal health care fraud charges after they defrauded the Nevada Medicaid program of approximately $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Cassandra Little, 49, of Reno, was sentenced to 33 months in prison, three years of supervised release, and ordered to pay $81,400 in restitution. Little pleaded guilty in March to 28 counts of health care fraud and 10 counts of money laundering.
Susan Hill, 66, of Las Vegas, was sentenced to 18 months in prison, three years of supervised release, and ordered to pay $81,400 in restitution. Hill pleaded guilty in March to one count of health care fraud and one count of money laundering.
Senior U.S. District Judge Howard D. McKibben in Reno sentenced both women, and allowed them to self-report to federal prison by Oct. 15, 2013.
“As this case demonstrates, health care fraud is a serious criminal offense with serious consequences that can land you in federal prison,” said U.S. Attorney Bogden. “The U.S. Department of Justice is committed to investigating and prosecuting persons who commit this type of crime.”
“Our attorneys and investigators work closely with our partners to find Medicaid violators and prosecute them to the fullest extent of the law for cheating the system,” said Nevada Attorney General Catherine Cortez Masto. “We hope today's prison sentence and combined restitution of approximately $81,000 sends a strong message to others who may consider stealing from taxpayers. We will not tolerate those that take advantage of the system."
According to the court records, from about January 2007 to January 2011, Hill and Little defrauded the Nevada Medicaid program of approximately $1 million by fraudulently billing for expensive therapy-related services such as psychosocial rehabilitation and basic skills training which were never provided. To execute their scheme, Hill and Little formed a company, the Hill/Little LLC, and entered into a contract with Nevada Medicaid to provide health care services to children who were eligible for Medicaid. Hill was the president of the LLC. Little, a PhD and licensed social worker, was to provide the clinical services to the children. Hill and Little then created a program to obtain aid for the parents of the children who were eligible to receive the Medicaid funding; however, the program was not authorized or allowed under their Medicaid contract with the state. Hill recruited parents and guardians to provide services to their own children following minimal training provided by Hill/Little LLC. The services were nothing more than what parents normally do without reimbursement. Hill/Little LLC then billed Medicaid approximately $8,000 per month for each child, using a billing code which was only authorized for services that could have been provided by Little, the licensed social worker. Hill/Little kept $5,000 per month for each child and paid each parent/guardian approximately $3,000. The parents/guardians reported that their children received little or no services from Hill or Little, and none of the services billed by Hill/Little from January 2007 to January 2011 were ever properly provided or authorized under Medicaid rules. Using this scheme, Hill and Little unlawfully received approximately $1 million from Medicaid for services they did not provide.
The case was investigated by the State of Nevada Medicaid Fraud Control Unit, the State of Nevada Attorney General’s Office, and IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Ronald C. Rachow and Senior Deputy Attorney General Andrew Schulke, designated as a Special Assistant U.S. Attorney, with assistance from the Nevada Attorney General’s Office.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
If you suspect that Medicaid Fraud may be occurring, complete and submit this form http://ag.nv.gov/uploadedFiles/agnvgov/Content/Complaints/Medicaid_Complaint_Form_Print_Handwrite.pdf,
and mail it to the Office of the Attorney General, Medicaid Fraud Control Unit (MFCU), 100 North Carson Street, Carson City, NV 89701. You can also call the Nevada MFCU at 775-684-1191, 702- 486-3187 or the toll free number at 1-800-266-8688.Two Shipping Firms Sentenced to Pay $10.4 Million for Obstructing Justice and Environmental Crimes for Concealing Vessel PollutionRead the Press Release
Two shipping firms based in Germany and Cyprus were sentenced today in federal court in Newark, N.J., to pay a $10.4 million penalty for felony obstruction of justice charges and violating the Act to Prevent Pollution from Ships related to the deliberate concealment of vessel pollution from four ships that visited ports in New Jersey, Delaware and Northern California, the U.S. Attorney’s Offices in New Jersey and Delaware, the U.S. Department of Justice Environment and Natural Resources Division and the U.S. Coast Guard announced.
Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), a Cypriot company, were sentenced to pay a $10.4 million criminal penalty, $2.6 million of which will be directed to the National Fish and Wildlife Foundation to fund community service projects selected to help restore the coastal environment of New Jersey and Delaware hit by Hurricane Sandy. The remaining $7.8 million is designated as a criminal fine. In addition, the companies were placed on four years of probation. During probation, the companies will be subject to the terms of an environmental compliance plan that requires outside audits by an independent company and oversight by a court appointed monitor. The shipping firms admitted that four of their ships - three oil tankers and one container ship - had intentionally bypassed required pollution prevention equipment and falsified the oil record book, a required log regularly inspected by the U.S. Coast Guard. The case is the largest vessel pollution settlement in either New Jersey or Delaware.The companies previously pleaded guilty before U.S. District Judge Susan D. Wigenton on March 21, 2013, to six counts involving three vessels in New Jersey and four counts involving one ship in Delaware. The counts consist of violations of the Act to Prevent Pollution from Ships for failing to maintain an accurate oil record book, obstruction of justice and making false statements.
According to documents filed in this case and statements made in court:
The investigation into the M/T King Emerald was launched on May 7, 2012, after several crew members provided cell phone photos and other evidence to Coast Guard officers conducting a routine inspection. The King Emerald was engaged in various types of illegal discharges of bilge waste dating back to at least 2010. The defendants admitted that illegal discharges of both sludge and oily bilge waste were discharged at night off the coast of Central America, including a discharge within the Exclusive Economic Zone of Costa Rica where a national park is located. The ship’s second engineer pleaded guilty previously and was sentenced in Newark on April 3, 2013.
The Delaware investigation began in October 2012 after several crew members of the M/T Nordic Passat provided the Coast Guard with a thumb drive containing photographs and video showing how illegal discharges had been sent overboard through the ship’s sewage system. They also alleged that sludge had been put into the ship’s cargo tanks and that logs showing sludge had been incinerated onboard had been falsified. The charges involving the M/V Cape Maas stem from a whistleblower report to the Coast Guard when the ship visited the port in San Francisco. The whistleblower provided a video showing the operation of the oily water separator pumping overboard without the use of the oil content monitor to detect and prevent oil from being illegally discharged.
Violations on a fourth ship, the M/T Cape Taft, which was anchored in New York waters and destined for New Jersey, were uncovered just weeks before the March plea, after the ship disclosed problems to CSM-D. An internal investigation revealed that the ship’s oily water separator had been used improperly for some time. Instead of sensing a sample of overboard discharges, it was instead flushed with fresh water by the crew. The ship’s oil record book was revised by CSM-D to reveal 16 instances where it was false. The defendants cooperated with the investigation and provided the government with video replays of the oil content monitor showing when the crew had “tricked” the sensor with fresh water.This prosecution was made possible through the combined efforts of the U.S. Coast Guard Districts 1, 5 and 11; Coast Guard Sectors New York, Delaware Bay, and San Francisco; Coast Guard Investigative Service; Coast Guard Office of Maritime and International Law; and Coast Guard Office of Investigation and Analysis.
The United States is represented by Kathleen P. O’Leary, Assistant U.S. Attorney in New Jersey; Richard Udell, Senior Counsel, and Stephen Da Ponte, Trial Attorney, of the Environmental Crimes Section of the Department of Justice Environment and Natural Resources Division; and Edmond Falgowski, Assistant U.S. Attorney in Delaware. Assistance was also provided by the U.S. Attorney’s Office for the Northern District of California.
Two Men Sentenced to Federal Prison in Heroin Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Luis Marte, 34, of Pawtucket, and Luis Fernandez, 26, of Providence, were sentenced to lengthy federal prison terms today for conspiring to possess and possessing with the intent to distribute over 800 grams of heroin, announced United States Attorney Peter F. Neronha and Cranston Police Chief Marco Palombo, Jr.
U.S. District Court Chief Judge Mary M. Lisi sentenced Marte to 70 months imprisonment to be followed by 5 years of supervised release; Fernandez was sentenced by Chief Judge Mary M. Lisi to 57 months imprisonment to be followed by 5 years supervised release. Marte and Fernandez pleaded guilty in April as charged in a federal indictment to one count each of conspiracy to possess with intent to distribute 100 grams or more of heroin and possession with the intent to distribute 100 grams or more of heroin.
According to information presented to the court, on January 3, 2013, Cranston Police patrol officers observed a vehicle bearing an expired registration plate. While following the vehicle, the officers observed the driver commit traffic violations. They followed the vehicle to an apartment complex parking lot.
According to information presented to the court, as the driver and passenger were exiting the vehicle at the apartment complex, the officers ordered them to remain inside. The driver, Luis Fernandez, returned to the vehicle while the passenger, Luis Marte, remained outside the vehicle holding a brown paper bag. As officers gave Marte commands he dropped the bag which officers quickly recovered. Inside the bag officers discovered 696.4 grams of heroin. The pair refused to divulge to the officers why they had driven to the apartment complex.
According to information presented to the court, at the Cranston police station, officers located keys on both defendants to an apartment at the complex where they were arrested. Cranston police conducted a court authorized search of the apartment where they seized an additional 111.9 grams of heroin and numerous items used in the packaging and distribution of heroin, including thousands of blue and pink “stamp” bags commonly used to package heroin.
The defendants have been detained since their arrest.
The cases were prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Three Men Sentenced in International Investment Fraud and Money Laundering SchemeRead the Press Release
Tampa, Florida - U.S. District Judge Mary S. Scriven today sentenced Paul Robert Gunter (64, Odessa, Florida; originally of London) to 25 years in federal prison, Simon Andrew Odoni (56, originally of Hertfordshire, UK) to 13 years, 4 months in federal prison, and Richard Sinclair Pope (55, originally of Hertfordshire, UK) to 4 years, 9 months in federal prison for their respective roles in an international investment fraud and money laundering scheme. The court also ordered all three individuals to forfeit their interests in real property and bank accounts in the U.S. and abroad, an airplane, vessels, and vehicles purchased with proceeds of the fraud scheme.
As part of the investigation, federal agents seized nearly $5 million in U.S. currency. At the sentencing hearing, the court granted the government's request to use these assets to help compensate victims for their losses. In addition, the court entered money judgments in excess of $137 million against Paul Gunter and Simon Odoni.
On April 19, 2013, Paul Gunter and Simon Odoni were found guilty by a federal jury, following a 19-day trial. Specifically, the jury returned verdicts of guilty on three counts of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as nineteen counts of mail and wire fraud, and fourteen counts of money laundering.
Prior to trial, on March 10, 2011, Richard Pope pleaded guilty to one count of conspiracy to commit wire and mail fraud. Pope cooperated with the government and testified at trial.
According to the evidence and testimony presented at trial, from at least as early as July 2004 through at least March 13, 2008, Gunter, Odoni, Pope and others engaged in a sophisticated investment fraud and money laundering scheme, in which worthless stock in hijacked dormant, publicly-traded companies in the United States was sold to victim-investors, primarily in the United Kingdom. The scheme used boiler room telemarketers, mostly in Spain, who employed high pressure and misleading sales techniques. The victim-investors wired more than $127 million to Gunter's bank accounts in the Middle District of Florida. The conspirators bilked victim-investors out of another $10 million via a FOREX currency trading scheme, which also utilized the boiler rooms in Spain.
Gunter, Odoni, Pope and their co-conspirators used the victim-investors' funds to perpetuate the fraud scheme and for their own personal enrichment. Victim-investors' funds were used to buy, among other things, an airplane, two vessels, vehicles, including a Ferrari, and real property in the Caribbean islands, England, and Florida.
In a related trial that took place in May 2012, Houston lawyers Roger Lee Shoss and Nicolette Loisel were convicted of one count of conspiracy to commit wire fraud in connection with their participation in the corporate identity theft aspect of the scheme.
The case remains pending as to one individual, Lawrence S. Hartman, a/k/a Larry Hartman, a/k/a Larry Hart, a/k/a Lawrence Scott Hartman-Grosser (48, Costa Rica; a U.S. lawyer formerly of New York and Florida), who allegedly conspired with Gunter, Odoni, Pope and others in this case. In May 2013, Hartman was arrested on an immigration violation by Nicaraguan authorities. He was expelled and deported from Nicaragua and turned over to U.S. authorities to face the charges in this case. Hartman's apprehension and expulsion was achieved with the special assistance of the U.S. Department of State Bureau of Diplomatic Security, U.S. Embassy Managua, INTERPOL Washington, and the Nicaraguan National Police.
The case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Tampa, Florida, as well as the U.S. Secret Service, Tampa, Florida and Newark, New Jersey Field Offices. The government received assistance from several other authorities, including the City of London Police, the UK's Serious Fraud Office and Norfolk Constabulary, the Spanish National Police, the U.S. Securities and Exchange Commission, the Ontario Securities Commission, and the British Columbia Securities Commission.
“This investment fraud and money laundering scheme stretched across continents. The three defendants sentenced today had no qualms with preying on innocent victims – many of them elderly U.K. citizens – to further their own assets,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “Let today’s sentences serve as notice to other fraudsters. HSI and our law enforcement partners will investigate and ensure that you are prosecuted for your crimes.” "This case is a great example of how law enforcement partnerships work on an international scale," said John Joyce, Special Agent in Charge Tampa. "The United States Attorney’s Office, HSI and the US Secret Service worked this case with their law enforcement partners from London to investigate, prosecute and convict Mr. Gunter, Mr. Odoni and Mr. Pope. Their sentences should send a clear message to other fraudsters."
"Unfortunately, this sentencing will not repair the huge damage they caused to the lives of thousands of people who were simply looking for a safe place to invest their money, but hopefully it will bring a measure of comfort and a sense of closure to those caught up in what was fraud committed on a truly significant scale. That Pope, Gunter and Odoni have now been successfully prosecuted is thanks to trans-Atlantic law enforcement cooperation, painstakingly piecing together this crime, insuring that those involved would one day face their day of reckoning," stated City of London Police Detective Inspector Kerrie Gower.
The case is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Kelley Howard-Allen.
Three Excelsior Springs Residents Charged with Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Excelsior Springs, Mo., man who called law enforcement officers to his home is among three residents charged in federal court for their roles in a conspiracy to manufacture methamphetamine.
Glenn Allen DiFalco, 50, Anthony Trurice Grayson, 29, and Clarissa Nelson Cooper, 44, all of Excelsior Springs, were charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Monday, July 22, 2013.
The criminal complaint alleges that DiFalco, Grayson and Cooper participated in a conspiracy to manufacture 50 grams or more of methamphetamine.
According to an affidavit that was filed in support of the federal criminal complaint, Grayson contacted the Ray County Sheriff’s Department on Tuesday, July 16, 2013, and told officers he was being threatened by DiFalco. Grayson, who had fled from his residence, told officers that DiFalco had a gun and that he feared for his life. Officers met Grayson about a half-mile from his residence; he gave them permission to enter his house and arrest DiFalco.
As officers were speaking to Grayson, DiFalco and Cooper approached in a Dodge truck. According to the affidavit, the vehicle abruptly turned and drove away and officers began pursuing them. When DiFalco’s vehicle stopped in a dead-end cul-de-sac, the affidavit says, Cooper fled from the vehicle on foot and was chased by officers, who apprehended and arrested her. DiFalco was also arrested.
Officers searched DiFalco’s truck and found an airsoft gun and drug paraphernalia, including glass smoking pipes, syringes and a substance that was suspected to be crystal methamphetamine. DiFalco’s vehicle was so completely filled with debris and clutter, the affidavit says, that officers couldn’t adequately search it. The significant amount of items in the vehicle impeded law enforcement’s ability to recover and appropriately process the numerous items of drug paraphernalia and what was also suspected to be crystal methamphetamine. Officers therefore had DiFalco’s vehicle towed to a secured lot for further investigation.
When they searched the vehicle the next day, the affidavit says, officers found approximately 79,669, 30mg. pills (2,390 grams) of Cold Buster pseudoephedrine hydrochloride. These pills were contained in 91 one-gallon plastic bags. They found three bags containing a ground yellow powder believed to be ground up pseudoephedrine hydrochloride pills with a total weight of 736 grams. They also found smoking pipes, numerous handwritten recipes for various methods of methamphetamine manufacture, a butane torch, a bottle of iodine solution and several packs of iodine swabs, a laptop computer and three cell phones.
Officers returned to Grayson’s home following the vehicle pursuit, the affidavit says, and observed, in plain view, numerous items of drug paraphernalia commonly used to smoke and manufacture methamphetamine. During a search of Grayson’s residence, officers located coffee filters with iodine and powder residue, a bottle of 100% household lye, small baggies normally used to package drugs, glassware/cookware and Mason jars with residue (which were altered to facilitate methamphetamine manufacture), tubing, written instructions for pseudoephedrine pill conversion, glass smoking pipes, a white crystal-like unknown substance, weighing approximately 215.8 grams (not believed to be a controlled substance but some type of cutting agent), one bag of ground yellow powder, weighing approximately 88.8 grams, believed to be ground-up Cold Buster pseudoephedrine pills and a crystal-like substance in several plastic baggies, weighing approximately 53.2 grams, which field tested positive for the presence of methamphetamine. Officers also located a suspected explosive device, which was later identified as a “booby-trap” device.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the Ray County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Drug Enforcement Administration.
Staten Island, N.Y., Man Sentenced to 114 Months in Prison for Jewelry Store RobberyRead the Press Release
TRENTON, N.J. – A Staten Island, N.Y., man was sentenced today to 114 months for his role in the robbery of Blue Stove Antiques in Fair Haven, N.J., on June 2, 2012, U.S. Attorney Paul J. Fishman announced.
Robert A. Fiolka, 69, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with Hobbs Act robbery and use of a firearm in furtherance of a crime of violence. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Fiolka entered Blue Stove Antiques in Fair Haven at approximately 9:30 a.m., on June 2, 2012, wearing a hat and flesh-colored face mask and brandishing a handgun. Fiolka approached the store owner, pointed the handgun at him and demanded that he open the store’s safe. After the owner opened the safe, Fiolka ordered him to the ground and then proceeded to empty the safe’s contents into a satchel that he had with him. After filling the bag with the safe’s contents, Fiolka exited the store with approximately $200,000 worth of jewelry.
In addition to the prison term, Judge Wolfson sentenced Fiolka to five years of supervised release and ordered him to pay $200,000 in restitution.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentence; he also thanked the Colts Neck Police Department, Fair Haven Police Department, Old Bridge Police Department, Wall Township Police Department, and the Monmouth County Prosecutor’s Office for their roles in the case.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the Criminal Division in Trenton.
13-306
Defense counsel: John W. Mitchell Esq., New York, and Jerome A. Ballarotto Esq., TrentonSix People Charged in Connection with Large-Scale Stolen Identity Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – Six people allegedly involved in an extensive scheme to obtain millions of dollars through fraudulently obtained refund checks issued by the U.S. Treasury were charged today for their involvement in the scam, U.S. Attorney Paul J. Fishman announced.
Julio C. Concepcion, 48; Angel L. Concepcion-Vasquez, 29; Jose R. Zapata, 65; and Reyes Flores-Perez, 29, all of Passaic, N.J.; and Romy E. Quezada, 22, of Lake Mary, Fla., were arrested this morning by special agents of IRS-Criminal Investigation, postal inspectors from the U.S. Postal Inspection Service, and special agents of the U.S. Secret Service. A sixth defendant, Freddy Gabino-Martinez, 24, of Passaic, remains at large. Concepcion, Concepcion-Vasquez, Gabino-Martinez, and Zapata are charged with conspiracy to steal government funds, Flores-Perez is charged with transferring false identification documents, and Quezada is charged with theft of government funds.
The four defendants arrested in New Jersey are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Michael Hammer in Newark federal court. Quezada was arrested in Florida and will make her initial appearance in Orlando federal court.
According to the criminal Complaints unsealed today:
Background on Stolen Identify Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion a year in losses to the U.S. Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund.
- They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access.
- With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control.
The Investigation
From October 2009 through December 2012, Concepcion, Concepcion-Vasquez, Gabino-Martinez, and Zapata engaged in a SIRF scheme that resulted in more than $2.5 million in losses to the U.S. Treasury. The conspirators obtained fraudulent tax refund checks, then deposited them into bank accounts that they controlled, often in the name of “dummy” corporations created to facilitate the scheme. They then transferred hundreds of dollars to others, including Concepcion’s wife, his children, and his children’s companions. Quezada is charged with depositing fraudulent treasury checks into an account that she opened and controlled, and Flores-Perez is charged with transferring fraudulent identification documents, including fake driver’s licenses and Social Security cards, used to further the SIRF scheme.
The conspiracy charge and the theft of government funds charge are punishable by a maximum potential penalty of 10 years in prison. The transfer of fraudulent documents charge is punishable by a maximum potential penalty of 15 years in prison. All charges are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense.U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s arrests and charges.
The government is represented by Assistant U.S. Attorney Andrew J. Bruck of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the Complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-303
Defense counsel: Concepcion: Paulette Pitt Esq., Perth Amboy, N.J.
Concepcion-Vasquez: Rubin Sinins Esq., Newark
Zapata: Elizabeth Smith Esq., Mendham, N.J.
Flores-Perez: John Whipple Esq., Chatham, N.J.Concepcion, Julio et al., Complaint
Flores-Perez,Reyes Complaint
Quezada, Romy ComplaintShipping Corporations Sentenced to $10.4 Million Monetary Penalty for Environmental Crimes on Four ShipsRead the Press Release
WASHINGTON – Two shipping firms based in Germany and Cyprus were sentenced today to a $10.4 million monetary penalty for felony obstruction of justice charges and violating the Act to Prevent Pollution from Ships related to the deliberate concealment of vessel pollution from four ships that visited ports in New Jersey, Delaware and Northern California, the U.S. Attorney’s Offices in New Jersey and Delaware, the Department of Justice Environment and Natural Resources Division and the U.S. Coast Guard announced.
Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), a Cypriot company, were sentenced to pay a $10.4 million criminal penalty, $2.6 million of which will be directed to the National Fish and Wildlife Foundation to fund community service projects selected to help restore the coastal environment of New Jersey and Delaware hit by Hurricane Sandy. The remaining $7.8 million is designated as a criminal fine. The companies were also placed on four years of probation, during which they will be subject to the terms of an environmental compliance plan that requires outside audits by an independent company and oversight by a court-appointed monitor. The shipping firms admitted that four of their ships (three oil tankers and one container ship) had intentionally bypassed required pollution prevention equipment and falsified the oil record book, a required log regularly inspected by the U.S. Coast Guard. The case is the largest vessel pollution settlement in either New Jersey or Delaware.
The companies previously pleaded guilty before U.S. District Judge Susan D. Wigenton on March 21, 2013, to six counts involving three vessels in New Jersey and four counts involving one ship in Delaware. The counts consist of violations of the Act to Prevent Pollution from Ships for failing to maintain an accurate oil record book, obstruction of justice and making false statements.
According to documents filed in this case and statements made in court:The investigation into the M/T King Emerald was launched on May 7, 2012, after several crew members provided cell phone photos and other evidence to Coast Guard officers conducting a routine inspection. The King Emerald was engaged in various types of illegal discharges of bilge waste dating back to at least 2010. The defendants admitted that illegal discharges of both sludge and oily bilge waste were discharged at night off the coast of Central America, including a discharge within the Exclusive Economic Zone of Costa Rica where a national park is located. The ship’s second engineer previously pleaded guilty and was sentenced in Newark on April 3, 2013, to two years of probation.
The Delaware investigation began in October 2012 after several crew members of the M/T Nordic Passat provided the Coast Guard with a thumb drive containing photographs and video showing how illegal discharges had been sent overboard through the ship’s sewage system. They also alleged that sludge had been put into the ship’s cargo tanks and that logs showing sludge had been incinerated onboard had been falsified. The charges involving the M/V Cape Maas stem from a whistleblower report to the Coast Guard when the ship visited the port in San Francisco. The whistleblower provided a video showing the operation of the oily water separator pumping overboard without the use of the oil content monitor to detect and prevent oil from being illegally discharged.
Violations on a fourth ship, the M/T Cape Taft, which was anchored in New York waters and destined for New Jersey, were uncovered just weeks before the March plea, after the ship disclosed problems to CSM-D. An internal investigation revealed that the ship’s oily water separator had been used improperly for some time. Instead of sensing a sample of overboard discharges, it was instead flushed with fresh water by the crew. The ship’s oil record book was revised by CSM-D to reveal 16 instances where it was false. The defendants cooperated with the investigation and provided the government with video replays of the oil content monitor showing when the crew had “tricked” the sensor with fresh water.
This prosecution was made possible through the combined efforts of the U.S. Coast Guard Districts 1, 5 and 11; Coast Guard Sectors New York, Delaware Bay, and San Francisco; Coast Guard Investigative Service; Coast Guard Office of Maritime and International Law; and Coast Guard Office of Investigation and Analysis.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary in New Jersey; Senior Counsel Richard Udell and Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division; and Edmond Falgowski, Assistant U.S. Attorney in Delaware. Assistance was also provided by the U.S. Attorney’s Office for the Northern District of California.
13-305Defense counsel: Thomas L. Mills Esq., Washington, D.C.
Seven Sentenced in Federal Court for Conspiracy to Traffic in Marijuana, Hashish and Ecstacy, Using the U.S. Mails to Faciliate Drug Trafficking and Money LaunderingRead the Press Release
CONCORD, NEW HAMPSHIRE – Seven defendants have been sentenced in United States District Court for the District of New Hampshire following their guilty pleas to charges of conspiracy to possess with the intent to distribute and to unlawfully distribute marijuana, hashish and MDMA, commonly known as “ecstasy”, conspiracy to use the U.S. Mail to facilitate drug trafficking offenses, and conspiracy to commit money laundering, all of which occurred in the Districts of New Hampshire, Vermont, Nevada, and the Eastern District of California, announced United States Attorney John P. Kacavas.
Braedon Bellavance, 25, of Mansfield, Massachusetts, was sentenced to 37 months in prison; his brother Shane Bellavance, 28, also of Mansfield, Massachusetts, was sentenced to 33 months in prison; Elton Bonneville, 24, of Beckett, Massachusetts, was sentenced to 24 months in prison; Lucas Mohr, 22, of Keene, New Hampshire, was sentenced to 21 months in prison; and James Mayer, 23, of Lyndonville, Vermont, was sentenced to 15 months in prison.
Taylor Canaday, 21, of Chesterfield, New Hampshire, was sentenced to two years’ probation and Steven Lauder, 24, of Breckinridge, Colorado, was sentenced to three years’ probation. James Murray, 25, of Lyndonville, Vermont, and Brian Sawyer, 25, of Marlboro, Massachusetts are awaiting sentencing. Murray will be sentenced upon completion of the United States District Court’s LASER Docket, an intensive drug court program.
During the plea hearings, the defendants admitted that, in 2009, Braedon Bellavance and Bonneville, both students at Lyndon State College in Vermont, received high grade marijuana from sources in California via U.S. Postal Service “express mail” packages. They, in turn, sold the marijuana to buyers, including Murray and Mayer. Bonneville later moved to California and began shipping marijuana and hashish to the Bellavance brothers via USPS express mail packages. The Bellavance brothers, in turn, distributed the drugs to buyers in the Lyndonville, Vermont area and in New Hampshire, including to Mohr, Lauder-a Keene State College student-and Sawyer-a Plymouth State College student.
The Bellavance brothers moved to California in 2010, joining Bonneville in shipping marijuana and hashish, as well as ecstasy to Murray for distribution in the Lyndonville area. They also shipped marijuana to Mohr in New Hampshire. Mohr eventually joined his co-conspirators in California and shipped quantities of marijuana to Lauder and Canaday for distribution in the Keene area. Proceeds from the drug sales in New Hampshire and Vermont were returned to Bonneville and the Bellavance brothers in California via the USPS express mail service. In October, 2010, an express mail package containing $27,300 in cash intended for Braedon Bellavance was intercepted at the Ashland, New Hampshire Post Office.
In November, 2010, the DEA and USPIS intercepted two suspicious express mail packages shipped by Braedon Bellavance in California intended for Mayer in Lyndonville. The packages, containing marijuana, hashish and MDMA, were delivered to Mayer by an undercover law enforcement agent acting as a postal employee, after which a search warrant was executed at the residence.
In addition to hashish and MDMA, the investigation revealed that, from 2009 through 2011, the conspirators shipped approximately 80 kilograms of marijuana with an approximate street value over $500,000 from California to Vermont and New Hampshire.
The investigation into this conspiracy was conducted by the United States Attorney’s Office for the District of New Hampshire, the Drug Enforcement Administration, the United States Postal Inspection Service, the South Lake Tahoe, California Task Force, the Somersworth, New Hampshire Police Department, the University of New Hampshire Police Department, and the State of New Hampshire Attorney General’s Drug Task Force. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.San Antonio Agrees to $1.1 Billion Upgrade of Sewer Systems to Comply with Clean Water ActRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that the San Antonio Water System (SAWS) has agreed to make significant upgrades to reduce overflows from its sewer system and pay a $2.6 million civil penalty to resolve Clean Water Act (CWA) violations stemming from illegal discharges of raw sewage. The state of Texas is a co-plaintiff in this case and will receive half of the civil penalty.
When wastewater systems overflow, they can release raw sewage and other pollutants into local waterways, threatening water quality and contributing to beach closures and disease outbreaks. To come into compliance with the CWA, including remedial measures taken during the parties’ negotiations and the comprehensive measures required under the settlement, SAWS is expected to spend $1.1 billion to achieve compliance.
“This settlement will help protect San Antonio residents from exposure to raw sewage by committing San Antonio to make immediate, badly-needed repairs to its sewers as well as long-term improvements in the operation, management and maintenance of its system,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “These improvements will benefit well over a million people living in Bexar County, with a special focus on reducing sewage overflows in communities who have suffered a historical pollution burden.”
“EPA is working with cities across the country to protect the nation’s waters from raw sewage overflows that can threaten public health,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “The improvements and upgrades agreed to in this settlement will protect the people of San Antonio and the surrounding communities by reducing raw sewage in the water.”
The Justice Department, on behalf of EPA, filed a complaint against SAWS alleging that between 2006 and 2012, SAWS had approximately 2,200 illegal overflows from its sanitary sewer system that discharged approximately 23 million gallons of raw sewage into local waterways in violation of its CWA discharge permit. The cause of these overflows stems largely from system capacity problems that result in the sewer system being overwhelmed by rainfall, causing it to discharge untreated sewage combined with storm water into local waterways. EPA confirmed these violations during a 2011 field inspection and record review.As part of the settlement, SAWS will conduct system-wide assessments, identify and implement remedial measures to address problems that cause or contribute to illegal discharges found during those assessments, and initiate a capacity management, operation and maintenance program to proactively reduce sanitary sewer overflows. The plan must be fully implemented by calendar year 2025. In the early years of the CD, SAWS will take actions that will result in reduction of sanitary sewer overflows. In addition, SAWS will conduct water quality monitoring to identify potential additional sources of bacterial contamination that could be contributing to impairment of the Upper San Antonio River.
SAWS wastewater treatment plant serves approximately 1.3 million people in Bexar County, which includes the city of San Antonio. Its wastewater collection and treatment system consists of approximately 5,100 miles of gravity sewer lines, including approximately 100,000 manholes and 170 lift stations.
Keeping raw sewage and contaminated stormwater out of the waters of the United States is one of the EPA’s national top priorities. EPA’s initiative focuses on reducing sewer overflows, which can present a significant threat to human health and the environment.
The settlement will be filed in the U.S. District Court for the Western District of Texas, San Antonio Division and is subject to a 30-day public comment period before final court approval of the consent decree. Once the consent decree has been approved and entered, SAWS will have 60 days to pay the civil penalty to the United States and the state of Texas. The proposed consent decree can be viewed online at www.justice.gov/enrd/Consent_Decrees.html.
More information about the settlement: http://www2.epa.gov/enforcement/san-antonio-water-system-saws-settlementMore information about EPA’s national enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
More information about Integrated Municipal Stormwater and Wastewater Plans: http://cfpub.epa.gov/npdes/integratedplans.cfm
Saline County Man Charged with Methamphetamine Related OffenseRead the Press Release
John David Clark, 48, of Harrisburg, Illinois, has been charged in an indictment in United States District Court in Benton with possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on July 9th, alleged that the offense occurred on June 25, 2013, in Saline County.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Clark faces up to 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Following a detention hearing held today, Clark was ordered held without bond and was remanded to the custody of the United States Marshal to await further proceedings. Clark’s next scheduled court appearance is September 12th at 9:30 a.m. for a final pretrial conference.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Rockford Man Sentenced to 85 Months in Federal Prison for Robbery of BMO Harris Bank in RockfordRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced yesterday in federal court for robbing the BMO Harris Bank, N.A., 1275 Bennington Road, Rockford, Ill., on July 22, 2010. U.S. District Judge Frederick J. Kapala sentenced Drew Yancy, 33, to 85 months in federal prison for the robbery and ordered that Yancy serve 3 years on supervised release following his release from prison, and pay restitution of $5,905 to BMO Harris Bank. Yancy will not be eligible for parole.
Yancy pled guilty to the charge on April 5, 2013. According to the written plea agreement, on July 22, 2010, Prince Williams, 27, also of Rockford, drove Yancy to Harris Bank in a stolen car where they both entered the bank. Williams stood near the front door of the bank while Yancy approached the tellers and demanded money. Yancy admitted in the plea agreement that he told a teller to give him money or he would shoot and kill her. After obtaining $5,905 from the tellers, Williams and Yancy left the bank and fled in the stolen car.
Williams, who pled guilty on April 19, 2012, to his involvement in the bank robbery, will be sentenced at a future date.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; Chet Epperson, Chief of the Rockford Police Department; and Richard Meyers, Winnebago County Sheriff.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Rio Grande City Man Gets 15 Years for Transporting Meth in A Shampoo BottleRead the Press Release
CORPUS CHRISTI, Texas – Pedro Guerra-Ruiz, 34, of Rio Grande City, has been ordered to federal prison following his conviction for possession with intent to distribute approximately 1.51 kilograms of methamphetamine, United States Attorney Kenneth Magidson announced today. Guerra pleaded guilty April 29, 2013.
Today, U.S. District Judge Nelva Gonzales Ramos, who accepted the guilty plea, handed Guerra a total sentence of 180 months. He will be required to serve a term of five years of supervised release following completion of the prison term.
Guerra was arrested on Feb. 1, 2013, at the United States Border Patrol checkpoint in Sarita as a passenger on an El Expresso bus. Border Patrol (BP) agents boarded the bus to conduct immigration inspections of its occupants and Guerra was observed carrying a backpack which contained an conspicuously altered shampoo bottle. A BP service canine alerted to the presence of contraband in the shampoo bottle which, upon further inspection, revealed an unusually watery consistency uncharacteristic of shampoo. The substance was tested and confirmed to be methamphetamine with a weight determined to be 1.51 kilograms.
At the time of his guilty plea, Guerra admitted he had agreed to transport the methamphetamine to Houston in exchange for $1000.
Guerra will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the Drug Enforcement Administration with the assistance of BP and prosecuted by Assistant United States Attorney Sam Brown IV.