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23 July 2013
Rapid City Man Guilty of Illegally Possessing A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Shawn Muldoon, age 30, of Rapid City, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 19, 2013, and pled guilty to a charge of Domestic Violence Offender in Possession of a Firearm and Ammunition.
The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
In July 2012, near Rapid City, Pennington County sheriff’s deputies assisted a vehicle stuck on forest service land. The vehicle was occupied by Muldoon and others. During the vehicle search, the deputies located a 9mm handgun and ammunition owned by Muldoon, who is prohibited from possessing firearms due to a 2003 domestic violence conviction.
The investigation was conducted by the Pennington County Sheriff’s Office and the U.S. Forest Service. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.A presentence investigation was ordered and a sentencing date will be set. The defendant was released on bond pending sentencing.
Portsmouth Man Sentenced to Federal Prison for Sixty Four Months for Drug and Gun CrimesRead the Press Release
CONCORD, N.H. – Christian Jennings, 27, of Portsmouth was sentenced in United States District Court for the District of New Hampshire to 64 months in prison for possession of methylenedioxy methamphetamine (MDMA or “Ecstasy”) and marijuana with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney John P. Kacavas.
During a routine traffic stop in Portsmouth on January 2, 2011, Portsmouth police officers found distribution quantities of both MDMA and marijuana and other controlled substances in Jennings’ car, more than $42,000 in cash, and drug distribution paraphernalia. At the time of the traffic stop, Jennings was carrying a fully loaded Smith & Wesson, .38 caliber revolver in the waistband of his pants. A search of Jennings’ Portsmouth home yielded three additional firearms and additional quantities of controlled substances.
This case was investigated by the Portsmouth Police Department and was prosecuted under Project Safe Neighborhoods, a federal program to reduce gun violence in New Hampshire by aggressive investigation and prosecution of firearm offenders, education of the public, and training of law enforcement officers about federal firearm laws. The case was prosecuted by Assistant United States Attorney Bill Morse.
Pensacola Man Indicted for Counterfeit “viagra” TraffickingRead the Press Release
PENSACOLA, FLORIDA – The U.S. Attorney’s Office for the Northern District of Florida announced that Robert P. Galea, 53, of Pensacola, Florida, was indicted by a federal grand jury on charges that he trafficked in counterfeit “Viagra” and fraudulently executed a scheme to deliver the misbranded pharmaceuticals through the United States Postal Service.
Galea made his initial appearance in federal court on July 19, 2013, on ten counts of trafficking in counterfeit drugs, selling misbranded drugs, and mail fraud. The Indictment alleges the counterfeit drugs were obtained from sources in other countries, including India.
A jury trial for Galea has been scheduled before the Honorable M. Casey Rodgers on September 9, 2013. If found guilty of trafficking in counterfeit drugs or mail fraud, Galea faces up to twenty years in prison.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.
An Indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
Peach Springs Man Sentenced to 15 Years in Prison for Sexual Abuse of A MinorRead the Press Release
PHOENIX – On July 22, 2013, Terry Harris Lee, 66, of Peach Springs, Ariz., an enrolled member of the Hualapai Nation Indian Tribe, was sentenced by U.S. District Judge David G. Campbell to 180 months in federal prison, followed by a term of lifetime supervised release. Lee pleaded guilty on May 2, 2013 to sexual abuse of a minor.
According to the plea agreement, on March 18, 2012, the 12 year old victim was having a sleepover with a friend at Lee’s residence located on the Hualapai Nation Indian Reservation. Lee entered the bedroom where the victim was staying, and sexually abused the victim.
The investigation in this case was conducted by the Hualapai Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8247-PCT-DGC
RELEASE NUMBER: 2013-057_LeeFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Oregon Woman Sentenced to 275 Months in Prison for Being an Armed Career CriminalRead the Press Release
Defendant committed four armed bank robberiesEUGENE, Ore. – Lorinda Marie Goodin, 44, a resident of Lane County, Oregon, was sentenced today by U.S. District Chief Judge Ann Aiken to 22 years and 11 months in prison for committing two armed bank robberies in Multnomah County, two armed bank robberies in Lane County, and to possessing ammunition after having been previously convicted of eight bank robberies.
Goodin pled guilty on February 20, 2013, to robbing the Bank of the West in Portland on November 8, 2011, the Clackamas County Bank in Gresham on November 14, 2011, and the Pacific Continental Bank in Eugene on August 1 and again on November 25, 2011. Goodwin wore disguises, brandished what appeared to be a large caliber pistol, and threatened to shoot or kill bank tellers during the robberies.
Goodin was arrested on December 7, 2011, by an FBI agent and Springfield police officers after she was seen driving a stolen vehicle in Springfield, Oregon. She had a large caliber toy pistol in her possession along with various disguises. During a subsequent court-authorized search of Goodin’s residence, police found numerous rounds of .22 caliber ammunition.
Goodin also pled guilty in federal court to being a felon in possession of ammunition and agreed to be sentenced as an armed career criminal. She was convicted after a jury trial in 2003 and sentenced to six years and five months in prison by U.S. District Judge Anna Brown for robbing eight banks in Multnomah, Clackamas and Marion Counties.
When pleading guilty, Goodin admitted that from August 2011 until her arrest in December 2011, she robbed 25 businesses located in Lane County, Multnomah County, Clackamas County, Wasco County and Douglas County. When committing her robberies, Goodin carried what appeared to be a large caliber pistol and threatened to shoot employees. During several of these robberies, Goodin had an accomplice.
Goodin’s guilty pleas, admissions and agreed sentence recommendation were part of her plea agreement. As part of her overall agreement, Goodin agreed that she will also plead guilty in Oregon state courts to the multiple robberies she admitted committing, and that she should receive a sentence of up to 18 years in prison for each robbery, to be served concurrently with her federal sentence.
This case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco & Firearms, the Portland Police Bureau, Clackamas County Sheriff’s Office, Lane County Sheriff’s Office, Eugene Police Department, Roseburg Police Department, The Dalles Police Department, Milwaukie Police Department, Gresham Police Department, and the Springfield Police Department. The case was prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr.Oglala Man Pleads Guilty to Assaulting A WomanRead the Press Release
United States Attorney Brendan V. Johnson announced that Billy Bores a Hole, age 28, of Oglala, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 19, 2013, and pled guilty to a charge of Assault with a Dangerous Weapon.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
In March 2013, at Oglala, Bores a Hole assaulted a woman by kicking her and stabbing her in the head, neck, back, and stomach, causing life-threatening injuries.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.Multiple Arrests in Alleged Marijuana Conspiracy Out of Starr CountyRead the Press Release
McALLEN, Texas - A total of 12 individuals have been arrested in connection with a conspiracy to possess with intent to distribute marijuana from March 1, 2012 through June 25, 2013, United States Attorney Kenneth Magidson announced today. The indictment, returned June 25, 2013, was partially unsealed upon the arrests today and yesterday. It remains sealed as to those charged but not as yet in custody.
The arrests stem from a year-long Organized Crime Drug Enforcement Task Force (OCDETF) investigation targeting the illegal importation and distribution of marijuana from Starr County to other locations within the United States.
Delfino Bazan, 44, of Rio Grande City and Houston, and his common law wife, Alejandrina Martinez, 43, of Houston, were arrested at their Houston residence on Monday, July 22. Both are charged with conspiring to launder proceeds from drug trafficking. Bazan is also charged with conspiracy to possess with intent to distribute more than 100 kilograms of marijuana as well as several substantive drug trafficking counts. Bazan and Martinez both made their initial appearances yesterday before U.S. Magistrate Judge John R. Froeschner in Galveston. U.S. Magistrate Judge Froeschner ordered Bazan into custody pending a detention hearing to be held at a later date in McAllen. Martinez was permitted release upon posting bond and ordered to appear in court in McAllen on July 30, 2013.Today, nine others were taken into custody for conspiring with Bazan to possess with intent to distribute marijuana. Baldemar Montalvo, 45, Enrique Montalvo, 40, Thomas Garcia, 52, Ivan D. Campos-Landa, 31, and David Ulloa Correa, 47, all of Rio Grande City; Jose Luis Palacios Jr., 37, of Mission; Edmundo Canales, 23, and Jose Luis Palacios Sr., 63, both of Edinburg; and Elee Campos Camargo, 37, of McAllen, are all charged in the overall drug conspiracy.
On July 19, 2013, Mexican citizen Sostenes Ferreira-Garcia, 50, illegally residing in Rio Grande City, was arrested by law enforcement agents in relation to this case. He made his initial appearance yesterday before U.S. Magistrate Judge Dorina Ramos and was ordered detained pending a detention hearing on July 25, 2013, at 11:00 a.m.
All defendants, except for Martinez, are charged in the overall drug conspiracy which carries a potential range of punishment of five to 40 years and a possible $5 million fine. If convicted of conspiracy to launder drug proceeds, Baldemar Montalvo, Martinez and Bazan all face a potential punishment of up to 20 years in prison and a $500,000 fine. With the exception of Martinez, each defendant further faces one or more substantive drug trafficking charges, with amounts ranging from 14 to 1,959 kilograms in each instance. The punishment range on these charges, upon conviction, varies depending on the amount of drugs involved, from no more than five years up to a maximum of life in prison.
All those arrested today are expected to make their initial appearances before Judge Ramos on Wednesday, July 26, 2013, at which time they are expected to remain in custody pending further criminal proceedings.
The OCDETF investigation dubbed "Operation Casanova" is being conducted by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation and the Starr County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of lawMan Sentenced to Prison for Mortgage Fraud CrimesRead the Press Release
LAS VEGAS, Nev. – A local man who used friends and family members to serve as straw buyers to fraudulently purchase homes in the Las Vegas area so he could skim part of the loan proceeds for himself, has been sentenced to 51 months in prison, five years of supervised release, and ordered to pay approximately $1.3 million in restitution announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Oudom Somee, 46, currently in custody, but most recently a resident of Las Vegas, Nev., was sentenced on Monday, July 22, 2013, by U.S. District Judge Miranda M. Du. Somee was convicted by a jury in November 2012 of one count of conspiracy to commit mail fraud, wire fraud, and bank fraud, and eight counts of wire fraud, one count of bank fraud, and one count of mail fraud.
Somee and his co-conspirators recruited persons with high credit scores, often friends and family members, to purchase homes in the Las Vegas area, which Somee would control. Somee told these straw purchasers that he would use their names and credit to buy the houses and that they would not have to pay the mortgages. Somee and the co-conspirators prepared the paperwork and submitted the loan applications to the financial institutions. These applications and the supporting documentation contained materially false and fraudulent information concerning the applicant’s identity, income, assets and intent to occupy the homes to ensure that the straw buyers would qualify for the mortgage loans. Somee orchestrated the transactions for the purpose of receiving cash at the closing of the transactions. The cash was disbursed either to Somee personally or to his company, Vegas Golden Investments, Inc. Somee tried to conceal his role in the scheme by using bank accounts belonging to fictitious entities and others, including his sister. Eight homes were purchased in Henderson and Las Vegas, Nev. using this scheme. The homes generally went into foreclosure after Somee made a few mortgage payments. The losses to the financial institutions were over $2.6 million.
A loan officer and escrow officer were also charged and convicted in the scheme.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Sarah E. Griswold.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Livingston County Man Indicted for Manufacturing Child PornographyRead the Press Release
Matthew Lewis Colston, 30, of Livingston County was indicted by a federal grand jury in Flint on charges of manufacturing child pornography, use of a facility in interstate commerce to entice a minor, and transfer of obscene matter to a minor, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Robert D. Foley III, FBI Special Agent in Charge and Kriste Kibbey Etue, Director of the Michigan State Police.
The 10-count indictment charges Colston with seven counts of manufacturing child pornography the dates of which extend over a five-month period. The indictment further alleges that for approximately one year Colston used a cellular telephone to attempt to persuade, induce and entice a minor to engage in sexual activity which, under the laws of the State of Michigan, could be charged as first and/or second degree criminal sexual conduct. The indictment further charges Colston with using the same cell phone to transfer obscene material to a minor.
"These despicable crimes victimize and exploit innocent children. Through the SEMCAC task force, the FBI is committed to the arrest and prosecution of criminals who engage in such deplorable, heinous behavior,” said Special Agent in Charge Robert D. Foley III; FBI Detroit Division.
“The Michigan State Police is committed to working with our federal and local law enforcement partners involved with the SEMCAC Task Force to protect children from being exploited in the State of Michigan,” said Michigan State Police Captain Monica Yesh. “The sexual assault of children and the production of child pornography are horrific crimes. The perpetrators who commit these acts of violence will be vigorously sought out and brought to justice.”
If convicted for manufacturing child pornography defendant faces a minimum sentence of 15 years and up to 30 years imprisonment and/or a fine of up to $250,000 on each count. If convicted of using a phone to entice a minor, Colston faces a minimum sentence of 10 years and up to life imprisonment and/or a fine of up to $250,000 on each count. Transferring of obscene material to a minor carries a maximum penalty of 10 years and/or a fine of up to $250,000.
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 guilty beyond a reasonable doubt.
The case was investigated by the FBI, Michigan State Police, Livingston County Prosecutor's Office and the Southeast Michigan Crimes Against Children Task Force.
Lieutenant Colonel who Served in Iraq Pleads Guilty to Criminal Conflict of Interest for Contracting SchemeRead the Press Release
A retired Lieutenant Colonel in the U.S. Army who served in Iraq as a contracting officer pleaded guilty in U.S. District Court in Tacoma today to criminal conflict of interest for using his position of authority to benefit himself to the detriment of the United States. HAROLD L. BROEK, 49, who served as Chief of Contracting at the Tikrit Regional Contracting Center in Tikrit, Iraq, established a company, Global Motion, that received contracts from an Iraqi company to which he had awarded contracts.
BROEK is scheduled to be sentenced by U.S. District Judge Benjamin H. Settle on October 15, 2013. Criminal conflict of interest is punishable by up to five years in prison.
According to the records filed in the case, BROEK used his position of authority in the U.S. Army, his knowledge of government contracting, and his relationship with Rohit Goel and “Avalon International Limited” to contract with Goel and Avalon on government contracts. Before BROEK left Iraq in 2007, he directed his family in Washington State to form a company, Global Motion, for the purpose of receiving contracts from Goel and Avalon. While in Iraq, BROEK had entered into an illegal agreement with Goel whereby Goel would send certain government contracts, awarded by the United States to Goel and Avalon, to the new company formed by BROEK and his family. Pursuant to this arrangement, Goel agreed to award government contracts to BROEK’s new company, to pay BROEK’s new company 30% of the profit on such contracts, and to front necessary funds or finance any contract expenditures BROEK’s company would incur in purchasing goods to perform under the contracts.
Before leaving Iraq and returning to the United States, BROEK participated in awarding contracts to Avalon. Specifically, in July 2007, shortly before he left Iraq to return to Lacey, Washington, BROEK signed a waiver shortening the deadline on a contract for the purchase and delivery of line-of-sight radios. By shortening the deadline, BROEK decreased the chances that Avalon’s competitors might win the contract. Later in July 2007, one of BROEK’s subordinates in Iraq awarded a contract for line-of-sight radios, valued at $162,151.00, to Goel and Avalon. Goel, in turn, awarded the contract for line-of-sight radios to BROEK’s company, Global Motion.
In September 2007, Avalon fronted $99,978.00 to Global Motion to finance the purchase of the line-of-sight radios. To fill the line-of-sight radio contract, Global Motion spent $58,733 to purchase the radios and have them shipped to Iraq. Global Motion retained the balance of the funds from Avalon, making a profit of $29,871.90 on this deal.
According to tax returns, Global Motion made a profit in 2007 and 2008 of $52,400.16. Pursuant to the plea agreement, BROEK will make restitution payments to the United States in the amount of $52,400.16.
The case was investigated by the Special Inspector General for Iraq Reconstruction, Federal Bureau of Investigation, and Defense Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorney David Reese Jennings.
Leroy Township Man Sentenced to Nearly Six Years in Prison for FraudRead the Press Release
A Leroy Township man was sentenced to nearly six years in prison for fraud that occured during his employment as a project manager with The Fowler Company which cost the company nearly $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jeffrey A. Boring, 50, previously pleaded guilty to two counts of mail fraud involving schemes to defraud The Fowler Company and ESI, Inc., a company which employed Boring after his employment with The Fowler Company terminated.
U.S. Judge Sara Lioi sentenced him to 71 months in prison and ordered him to pay a total of $978,810 in restitution. Boring’s term of imprisonment was increased for obstruction after he altered documents and submitted them to the government as proposed exhibits to be used in his defense at trial.
“Perhaps with six years in federal prison, plus just under a million reasons to think about his conduct, Mr. Boring will finally get the message that crime does not pay,” Dettelbach said.
From on or about June 27, 2006, through on or about January 18, 2011, Boring, while employed as a project manager with The Fowler Company, created and approved fraudulent invoices from a company he created called Fairport Industrial Group. In addition, Boring instructed vendors, which provided materials and services for Boring’s personal purposes, to invoice the cost to Fowler, according to court documents.
From on or about August 10, 2011, through on or about February 8, 2012, Boring, while employed as a project manager at ESI, Inc., approved purchase orders and invoices for payment for product purportedly needed for ESI customer contracts. In fact, ESI paid for product needed by Boring for contracts he had through Fairport Industrial Group with the Defense Logistics Agency, according to court documents.
This case was the result of an investigation conducted by Special Agent Russell G. Csaszar with the Federal Bureau of Investigation and Special Agent Brandee Kemer with the Office of the Inspector General, Defense Criminal Investigation Service. This case was prosecuted by Assistant United States Attorneys Henry F. DeBaggis and Mark S. Bennett.
Leader of Irvington, N.J., Gang Sentenced to More Than 27 Years in Prison for Crack Cocaine Distribution ConspiracyRead the Press Release
NEWARK, N.J. – The leader of the Irvington, N.J., Brick City Brims set of the Bloods street gang was sentenced to 325 months in prison today for his involvement in a large-scale conspiracy to distribute more than 280 grams of crack cocaine, U.S. Attorney Paul J. Fishman announced.
Mark Manasse, a/k/a “M-Ease,” 28, of Irvington, previously pleaded guilty before U.S. District Court Judge Jose L. Linares to one count of a superseding indictment, charging him with knowingly and intentionally conspiring to distribute 280 grams or more of the drug. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: Manasse was a leader of the Bloods street gang known as the Brick City Brims, who were distributing significant amounts of crack cocaine in and around the city of Irvington and elsewhere from February 2010 through April 2011. Manasse and his conspirators controlled the drug trafficking in and around the areas of 18th Street and Columbia Avenue in Irvington. Manasse maintained control of drug trafficking in these areas through the use of violence and intimidation.
Manasse and more than a dozen others were arrested on April 19, 2011, by special agents with U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) along with officers of the N.J. State Police and Irvington Police Department.
During the investigation, federal agents used a confidential source who was able to infiltrate the gang. Federal agents identified two cell phones Manasse used to conduct his narcotics trafficking activity and obtained court orders authorizing interception of drug-related phone calls. The agents intercepted thousands of calls during which Manasse discussed, orchestrated and directed the distribution of drugs. The calls also showed that Manasse directed, ordered and participated in acts of violence in order to maintain and protect the drug trafficking activity of the Brick City Brims in Irvington.
In addition to the prison term, Judge Linares sentenced Manasse to five years of supervised release. As a special condition of the supervised release, Judge Linares also banned Manasse from associating with any known street gang or organized crime members.
U.S. Attorney Fishman credited special agents of ICE HSI in Newark, under the direction of Special Agent in Charge Andrew M. McLees; the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; the Irvington Police Department, under the direction of Deputy Chief of Police Dwayne Mitchell, Senior Law Enforcement in Charge and Director Joseph Santiago; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray.
The government is represented by Assistant U.S. Attorney Michael H. Robertson of the U.S. Attorney’s Office Criminal Division in Newark.13-304
Defense counsel: Kathleen M. Theurer Esq., Jersey City, N.J.
Krystel A. Buckland Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 23, 2013, before U.S. District Judge Donald W. Molloy, KRYSTEL A. BUCKLAND, a 32-year-old resident of Billings, pled guilty to acquiring a controlled substance by subterfuge. Sentencing has been set for October 23, 2013. She is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
On August 19, 2012, a task force officer with the Drug Enforcement Administration (DEA) received a phone call from the pharmacy district manager for the K-Mart in Billings. The manager indicated that there were numerous prescription pills missing from the pharmacy department. The prescription pills first started to appear missing in February of 2012.
K-Mart then installed video cameras in the pharmacy department. On August 29, 2012, BUCKLAND, a pharmacist at the store, was seen on the video camera entering into the pharmacy after pharmacy hours and stealing numerous prescription pills. The video showed BUCKLAND taking the pills and then stuffing them into her clothing. BUCKLAND had been hired in February of 2012.
On August 31, 2012, BUCKLAND was interviewed by a DEA task force officer. She admitted that she did steal all of the prescription pills, and that she started stealing pills when she first began working at K-Mart. According to BUCKLAND, she used all of the pills herself. She indicated that she would use approximately 100 pills per day. After the interview, BUCKLAND gave consent to search her car and recovered numerous pill bottles and a small amount of pills in the vehicle.
The records from K-Mart indicate that approximately 18,000 hydrocodone and oxycodone pills were taken from the pharmacy from February of 2012 through August of 2012.
BUCKLAND faces possible penalties of 4 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Drug Enforcement Administration.
Justice Department Settles with Louisiana Tech University over Inaccessible Course MaterialsRead the Press Release
The Justice Department announced today that it has reached a settlement with Louisiana Tech University and the Board of Supervisors for the University of Louisiana System to remedy alleged violations of the Americans with Disabilities Act (ADA). The settlement resolves allegations that the University violated the ADA by using a version of an online learning product that was inaccessible to a blind student. The student’s lack of access to the course materials persisted nearly one month into the University quarter, at which point the student was so far behind in his coursework that he felt compelled to withdraw from the course. The settlement also resolves allegations that in a subsequent course, the same student was not provided accessible course materials for in-class discussion or exam preparation in a timely manner.
Under the settlement agreement, the university will adopt a number of disability-related policies, including the requirement to deploy learning technology, web pages and course content that is accessible in accordance with the Web Content Accessibility Guidelines (WCAG) 2.0 Level AA standard in the university setting. The university will also make existing web pages and materials created since 2010 accessible. The agreement also requires the university to train its instructors and administrators on the requirements of the ADA, and secured a total of $23,543 in damages for the student from the university and the Board.
“Emerging technologies, including internet-based learning platforms, are changing the way we learn, and we need to ensure that people with disabilities are not excluded or left behind,” said Eve L. Hill, Deputy Assistant Attorney General for the Civil Rights Division.
“This a positive move by Louisiana Tech University and the Board of Supervisors. Their efforts reflect a commitment to ensuring that all individuals with disabilities have full access to the University,” said Stephanie A. Finley, U.S. Attorney for the Western District of Louisiana.
The ADA protects individuals with disabilities from discrimination in the services, programs or activities of state and local government entities. Under Title II of the ADA, state and local governments must afford individuals with disabilities an equal opportunity to participate in or benefit from aids, benefits or services provided. For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.
Justice Department Seeks to Shut Down Southern Illinois Tax PreparerRead the Press Release
The Justice Department announced today that it has asked a federal court to bar Ronald Manis of Carbondale, Ill., from preparing tax returns for others. The civil injunction suit, filed in the U.S. District Court for the Southern District of Illinois, alleges that Manis routinely prepares federal tax returns for individuals and corporations improperly claiming deductions that result in his customers understating their federal tax liabilities.
The government complaint also alleges that Manis prepares federal tax returns for his customers, claiming as business expenses his customers’ non-deductible personal expenses, including the cost of lavish personal vacations. According to the government complaint, Manis engages in this conduct “in a misguided attempt to mint his reputation as a uniquely skilled and knowledgeable tax return preparer.”
In September 2011, Manis pleaded guilty to willfully failing to file his own federal income tax returns for 2003, 2004, 2005 and 2006, and was initially sentenced to probation. In May 2012, his probation was revoked and he was sentenced to three months in prison. According to the government complaint, Manis was released from federal prison on July 20, 2013.
The government suit also alleges that Manis falsely represented himself as a fully licensed Certified Public Accountant to customers and the Internal Revenue Service (IRS) and that Manis illegally used an electronic filing number belonging to a friend to electronically file customers’ returns after the IRS denied Manis’s application for an electronic filing number.
In the past decade 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 on the Justice Department's website.
Related Materials:
United States v. Ronald Manis
Complaint for Permanent Injunction and Other Relief (PDF)
Justice Department Seeks to Shut Down Southern Illinois Tax PreparerRead the Press Release
WASHINGTON – The Justice Department announced today that it has asked a federal court to bar Ronald Manis of Carbondale, Ill., from preparing tax returns for others. The civil injunction suit, filed in the U.S. District Court for the Southern District of Illinois, alleges that Manis routinely prepares federal tax returns for individuals and corporations improperly claiming deductions that result in his customers understating their federal tax liabilities.
The government complaint also alleges that Manis prepares federal tax returns for his customers, claiming as business expenses his customers’ non-deductible personal expenses, including the cost of lavish personal vacations. According to the government complaint, Manis engages in this conduct “in a misguided attempt to mint his reputation as a uniquely skilled and knowledgeable tax return preparer.”
In September 2011, Manis pleaded guilty to willfully failing to file his own federal income tax returns for 2003, 2004, 2005 and 2006, and was sentenced to three months in prison. According to the government complaint, Manis was released from federal prison on July 20, 2013.
The government suit also alleges that Manis falsely represented himself as a fully licensed Certified Public Accountant to customers and the Internal Revenue Service (IRS) and that Manis illegally used an electronic filing number belonging to a friend to electronically file customers’ returns after the IRS denied Manis’ application for an electronic filing number.
In the past decade 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 on the Justice Department's website.
Justice Department Obtains Comprehensive Agreement to Ensure New York City Adult Home Residents with Mental Illness Are Afforded Opportunities to Live in the CommunityRead the Press Release
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of New York announced today that they, along with plaintiff adult home residents, entered into a comprehensive settlement agreement with the state of New York under the Americans with Disabilities Act (ADA). The settlement agreement will provide relief to thousands of people with mental illness unnecessarily segregated in 23 adult homes in New York City. Adult homes are institutional, segregated settings that house large numbers of people with mental illness.
Under the settlement agreement, New York will offer supported housing to people with mental illness currently residing in adult homes. Supported housing is apartments scattered throughout the community for which the state provides rental assistance and housing-related support services. Supported housing residents have access to community-based services and supports that promote their inclusion, independence, and full participation in community life. The settlement agreement has been filed with the U.S. District Court for the Eastern District of New York for the court’s approval.
The Supreme Court made clear in its landmark decision Olmstead v. L.C, that people with disabilities have a civil right under the ADA to receive services in the most integrated setting appropriate to their needs. The state worked cooperatively with the department and private plaintiffs to negotiate a settlement that resolves the allegations that the New York mental health service system violates the ADA by relying on large, institutional adult homes instead of supported housing units that are scattered throughout the community. A state is responsible for segregation when it designs and implements a system that unnecessarily relies on institutional facilities, regardless of whether they are privately owned and operated.
“Today’s settlement agreement reaffirms the right of people with disabilities to live independently and participate in all aspects of community life,” said Eve L. Hill, Deputy Assistant Attorney General for the Civil Rights Division. “This agreement creates opportunities for thousands of New Yorkers with mental illness to participate fully in community life, enriching local communities and ending the stigmatization of institutional life. Governor Andrew Cuomo played a crucial role in making this agreement a reality, and I commend his leadership.”
Over the next five years, New York will provide scattered-site supported housing to at least 2,000, and potentially more than 4,000, adult home residents. New York has also committed to providing people moving to supported housing with the community-based services and supports that will allow them to thrive in the community. The agreement also will ensure that adult home residents have the information they need to make an informed choice about where to live. If they choose to move to supported housing, they will participate in a person-centered, transition planning process. An independent reviewer with extensive experience in mental health systems will monitor the state’s compliance with the agreement.
Because of this agreement, people like Ilona Spiegel, one of the named plaintiffs, will get the opportunity to live independently and “become emancipated” after 15 years in an adult home. Spiegel lived independently in her own apartment until she received psychiatric treatment in a hospital in 1998. When she left the hospital, her only discharge option was to move into an adult home. In the adult home, Spiegel shares a small room with a roommate, has scheduled mealtimes and no opportunity to cook for herself, has little privacy as staff have entered her room without permission and finds living in the adult home extremely isolating. Spiegel has said that she cannot wait to live in her own apartment again and have autonomy over her life, including doing her own cooking, cleaning and shopping, have personal privacy in her home, and be free from intrusion into her personal belongings.
Loretta E. Lynch, U.S. Attorney for the Eastern District of New York stated: “With this agreement, thousands of New Yorkers will be able to leave the shadow of institutional living and instead live in and contribute to their communities. Because of this cooperative effort, their lives will be immeasurably better and our communities all the richer for their presence.”
The individual plaintiff adult home residents, on behalf of themselves and a class of adult home residents with mental illness, are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP; Disability Advocates Inc.; Bazelon Center for Mental Health Law; New York Lawyers for the Public Interest; MFY Legal Services Inc.; and Urban Justice Center.
The Civil Rights Division enforces the ADA, which authorizes the attorney general to investigate whether a state is serving individuals with disabilities in the most integrated settings appropriate to their needs. Visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA, and other laws enforced by the Justice Department’s Civil Rights Division.
This agreement is due to the efforts of the following Civil Rights Division and U.S. Attorney’s Office staff: Alison Barkoff, Special Counsel for Olmstead Enforcement; Rebecca B. Bond, Chief of the Disability Rights Section; Sheila Foran, Special Legal Counsel; Amanda Maisels and Nicholas Lee, Trial Attorneys; Lance Simon, Contractor; and Michael J. Goldberger, Chief of Civil Rights in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York.
Justice Department Obtains Comprehensive Agreement to Ensure New York City Adult Home Residents with Mental Illness Are Afforded Opportunities to Live in the CommunityRead the Press Release
WASHINGTON. – The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of New York announced today that they, along with plaintiff adult home residents, entered into a comprehensive settlement agreement with the state of New York under the Americans with Disabilities Act (ADA). The settlement agreement will provide relief to thousands of people with mental illness unnecessarily segregated in 23 adult homes in New York City. Adult homes are institutional, segregated settings that house large numbers of people with mental illness.
Under the settlement agreement, New York will offer supported housing to people with mental illness currently residing in adult homes. Supported housing is apartments scattered throughout the community for which the state provides rental assistance and housing-related support services. Supported housing residents have access to community-based services and supports that promote their inclusion, independence, and full participation in community life. The settlement agreement has been filed with the U.S. District Court for the Eastern District of New York for the court’s approval.
The Supreme Court made clear in its landmark decision Olmstead v. L.C, that people with disabilities have a civil right under the ADA to receive services in the most integrated setting appropriate to their needs. The state worked cooperatively with the department and private plaintiffs to negotiate a settlement that resolves the allegations that the New York mental health service system violates the ADA by relying on large, institutional adult homes instead of supported housing units that are scattered throughout the community. A state is responsible for segregation when it designs and implements a system that unnecessarily relies on institutional facilities, regardless of whether they are privately owned and operated.
“Today’s settlement agreement reaffirms the right of people with disabilities to live independently and participate in all aspects of community life,” said Eve L. Hill, Deputy Assistant Attorney General for the Civil Rights Division. “This agreement creates opportunities for thousands of New Yorkers with mental illness to participate fully in community life, enriching local communities and ending the stigmatization of institutional life. Governor Andrew Cuomo played a crucial role in making this agreement a reality, and I commend his leadership.”
Over the next five years, New York will provide scattered-site supported housing to at least 2,000, and potentially more than 4,000, adult home residents. New York has also committed to providing people moving to supported housing with the community-based services and supports that will allow them to thrive in the community. The agreement also will ensure that adult home residents have the information they need to make an informed choice about where to live. If they choose to move to supported housing, they will participate in a person-centered, transition planning process. An independent reviewer with extensive experience in mental health systems will monitor the state’s compliance with the agreement.
Because of this agreement, people like Ilona Spiegel, one of the named plaintiffs, will get the opportunity to live independently and “become emancipated” after 15 years in an adult home. Spiegel lived independently in her own apartment until she received psychiatric treatment in a hospital in 1998. When she left the hospital, her only discharge option was to move into an adult home. In the adult home, Spiegel shares a small room with a roommate, has scheduled mealtimes and no opportunity to cook for herself, has little privacy as staff have entered her room without permission and finds living in the adult home extremely isolating. Spiegel has said that she cannot wait to live in her own apartment again and have autonomy over her life, including doing her own cooking, cleaning and shopping, have personal privacy in her home, and be free from intrusion into her personal belongings.
Loretta E. Lynch, U.S. Attorney for the Eastern District of New York stated: “With this agreement, thousands of New Yorkers will be able to leave the shadow of institutional living and instead live in and contribute to their communities. Because of this cooperative effort, their lives will be immeasurably better and our communities all the richer for their presence.”
The individual plaintiff adult home residents, on behalf of themselves and a class of adult home residents with mental illness, are represented by Paul, Weiss, Rifkind, Wharton & Garrison, LLP; Disability Advocates Inc.; Bazelon Center for Mental Health Law; New York Lawyers for the Public Interest; MFY Legal Services Inc.; and Urban Justice Center.
The Civil Rights Division enforces the ADA, which authorizes the attorney general to investigate whether a state is serving individuals with disabilities in the most integrated settings appropriate to their needs. Visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA, and other laws enforced by the Justice Department’s Civil Rights Division.
This agreement is due to the efforts of the following Civil Rights Division and U.S. Attorney’s Office staff: Alison Barkoff, Special Counsel for Olmstead Enforcement; Rebecca B. Bond, Chief of the Disability Rights Section; Sheila Foran, Special Legal Counsel; Amanda Maisels and Nicholas Lee, Trial Attorneys; Lance Simon, Contractor; and Michael J. Goldberger, Chief of Civil Rights in the Civil Division of the U.S. Attorney’s Office for the Eastern District of New York.
Joseph Daniel Bahr, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 22, 2013, before U.S. District Judge Donald W. Molloy, JOSEPH DANIEL BAHR, JR., a 42-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, pled guilty to attempted sexual abuse. Sentencing has been set for October 23, 2013. He is currently detained.
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 June 23, 2011, the victim and a friend stayed overnight at BAHR's home in Lame Deer, which is within the boundaries of the Northern Cheyenne Indian Reservation. The victim, the friend, and BAHR were drinking that evening at BAHR's house. Between 10:00 p.m. and 11:00 p.m., the victim went to sleep in BAHR's daughter's bedroom. Around 5:00 a.m. the next morning, the victim woke up with BAHR on top of her. The victim told BAHR numerous times to stop and to get off of her. Eventually, the victim was able to push BAHR off of her, get dressed, and leave BAHR's residence. Before leaving, the victim confronted BAHR about the sexual assault in the presence of the friend who was also staying at BAHR's home. BAHR admitted to having sexual intercourse with the victim during this confrontation and this admission was overheard by the friend.
The victim then left the residence and went home. She told her husband about the sexual assault, immediately reported the assault to the police, and then went to the hospital for a sexual assault examination.
BAHR was interviewed by law enforcement and despite the admission made by BAHR to the victim and overheard by the friend at BAHR's house, when confronted by the victim, BAHR denied that he had sex with the victim.
BAHR faces possible penalties of life in prison, a $250,000 fine and lifetime supervision.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Jioio’s Restaurants Owner Pleads Guilty to Income Tax EvasionRead the Press Release
PITTSBURGH, Pa. - A resident of Greensburg, Pa., pleaded guilty in federal court to a charge of federal income tax evasion, United States Attorney David J. Hickton announced today.
Jeanean C. Smith pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that, as owner of Jioio's Restaurants in Latrobe and North Huntingdon, defendant engaged in the practice of "skimming" cash from restaurant sales, resulting in a total tax loss of $438,661 from the filing of false personal, corporate and payroll tax returns during the years 2006-2009.
Judge Diamond scheduled sentencing for Nov. 12, 2013 at 10:00 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court released the defendant on bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Jeanean C. Smith.
Jersey County Man Convicted of $1.2 Million Dollar Tax Evasion and Unlawful Firearms PossessionRead the Press Release
A Jersey County resident pleaded guilty to felony charges of tax evasion and possession of a firearm by a user of controlled substances on July 23, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. David Ray, 54, of Fieldon, Illinois, waived his right to face a grand jury indictment and pled guilty to charges brought directly by the US Attorney’s Office.
Documents filed in District Court established that Ray committed tax evasion by using his various businesses to pay personal expenses, by vesting ownership of personal assets in the name of his businesses, and by filing false tax returns with the IRS or refusing to file a US Individual Tax Return all together. In tax years 2005-2010, Ray concealed income from the IRS for the purpose of limiting his tax liability resulting in him avoiding $1,272,904.83 in federal income taxes that he otherwise would have been required to pay. Ray agreed to make full restitution to the IRS as a condition of his guilty plea.
Ray was also convicted for possessing firearms while being a cocaine user. Evidence presented at the plea hearing established that federal agents seized 96 firearms and more than 2,500 rounds of ammunition from Ray’s home when it was searched on February 13, 2012. In addition, agents also seized 110 grams of cocaine from Ray’s home. Ray admitted possessing the firearms as a hunter and gun collector. But he also acknowledged a serious cocaine habit, admitting that he purchased and used 3-5 ounces of cocaine every 2-3 weeks prior to his home being raided. Under federal law, drug users are categorically prohibited from possessing firearms.
Tax evasion is punishable by not more than five years in prison, and/or a $100,000 fine, and not more than three years of supervised release. Possession of a firearm by a user of controlled substances is punishable by not more than 10 years in prison, and/or a $250,000 fine, or both, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Ray will be sentenced in US District Court on November 8, 2013.
US Attorney Wigginton said, “We will zealously pursue gun crimes wherever they occur. This case was unique because it is rare to see complicated white-collar tax crime alongside gun and drug offenses. This case is a model for how state and federal agencies should partner to successfully combat diverse criminal activity. I would like to personally thank each of the agencies for working tirelessly to ensure that this case was brought to justice.”
The investigation was conducted by agents from the Internal Revenue Service / Criminal Investigations, the Jersey County Sheriff’s Department, the Bureau of Alcohol Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Idaho Falls Man Charged with Possessing Child PornographyRead the Press Release
POCATELLO – Daniel Joseph Dalton, 37, of Idaho Falls, Idaho, was indicted today by a federal grand jury in Pocatello for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. An initial appearance has not been set.
The indictment alleges that on or about March 14, 2011, Dalton unlawfully and knowingly possessed visual depictions of minors engaging in sexually explicit conduct, on a desktop computer and two hard drives. The government is seeking forfeiture of the computer equipment used in the offense.
The charge of possessing sexually explicit images of minors is punishable by up to ten years in prison, a maximum fine of $250,000, and at least five years of supervised release.
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.”
Home Builder Sentenced to Prison for Mortgage Fraud CrimesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas-area homebuilder has been sentenced to 14 years in prison, five years of supervised release, and ordered to pay $4.4 million in restitution for selling houses at inflated prices in order to fraudulently obtain mortgage loans, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Paul Wagner, 59, was sentenced on Monday, July 22, 2013, by U.S. District Judge Miranda M. Du. Wagner was convicted by a jury in October 2012 of one count of conspiracy to commit bank fraud and wire fraud, six counts of bank fraud, and three count of wire fraud.
“Since the inception of our mortgage fraud program in the spring of 2008, over 200 persons have been charged with federal mortgage fraud crimes in Nevada,” said U.S. Attorney Bogden. “Most of those individuals were convicted and are in prison. Wagner is the first home builder to be charged and convicted.”
Wagner was a home builder in Las Vegas for 20 years, building tract homes in the northwest part of the Las Vegas valley. From about 2007 to 2009, Wagner created a scheme to provide large cash incentives to buyers, real estate agents and others to sell his homes. The incentives included Wagner paying buyers’ mortgage payments, making large cash payments to real estate agents and others to find buyers, and paying buyers’ down payments. To pay the incentives, Wagner inflated the value of the homes by causing appraisers to create false appraisals. Wagner concealed the incentives from the lenders, who would not have made the loans had they known about his methods. Using this fraudulent scheme, Wagner sold about 85 houses from March 2007 to mid-2009. Most of the homes went into foreclosure after Wagner stopped making the mortgage payments. The losses to the financial institutions were more than $18 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Daniel R. Schiess.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Herrin Man Sentenced for Child Pornography OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on July 23, 2013, Steven J. Perry, 38, of Herrin, Illinois, was sentenced for accessing child pornography images online. Perry had earlier pled guilty to accessing the child pornography on his computer. The District Court in Benton sentenced Perry to 24 months in prison, a $500 fine, and 10 years supervised release.
“As I have often said, people who access this filth are not simply perverts looking at dirty pictures. They are, in fact, people who aid and abet the ongoing abuse and exploitation of innocent children. Prison terms are well deserved by these people.” said United States Attorney Wigginton.
The evidence at sentencing established that Perry had accessed child pornography videos of children under the age of 10. Some of the child pornography videos Perry accessed also included a minor being subjected to sadistic conduct by their abuser.
The investigation in this case was conducted by the Secret Service Southern Illinois Cyber Crimes Task Force, and a number of state and local law enforcement agencies.
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.”
The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Hamilton County Man Charged with Illegally Possessing A FirearmRead the Press Release
Sonny D. Southall, 28, of McLeansboro, Illinois, was arraigned today in United States District Court in Benton on an indictment charging him with being a felon in possession of a firearm, 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 Southall possessed a loaded 9 mm semi-automatic pistol in White County on June 2, 2013. Prior to that date, Southall had been convicted of two felony offenses, making it illegal under federal law for him to possess firearms or ammunition.
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, Southall faces up to 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearm he illegally possessed is also subject to forfeiture to the United States.
Southall was remanded to the custody of the United States Marshal to await a detention hearing at which time it will be determined whether bond will be set or if he will be ordered held without bond. That hearing was scheduled for Friday, July 26th at 10:00 a.m. in Benton.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the White County Sheriff’s Department with the assistance of the Illinois State Police, the Enfield Police Department, and the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Habersham County Woman Pleads Guilty to Making Pipe BombsRead the Press Release
GAINESVILLE, Ga. - Celia Alchemy Savage pleaded guilty in federal district court to making and possessing two pipe bombs found at her residence that were not registered in the National Firearms Registration and Transfer Registry, as is required by federal law.
“This defendant said she made and detonated pipe bombs as a hobby,” said United States Attorney Sally Quillian Yates. “Making bombs out of heavy metal pipe, explosive powder, and fuses is a serious crime, not a hobby, that carries significant penalties.”“The plea today is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Special Agent in Charge Christopher Shaefer.
According to United States Attorney Yates, the charges and other information presented in court: Savage came to the attention of federal agents after a concerned citizen reported seeing what appeared to be explosive devices in Savage’s home. Federal agents applied for and received a search warrant to search Savage’s residence. When federal, state, and local agents executed the search warrant on May 30, 2012, they found two completed pipe bombs, firearms, small amounts of controlled substances, drug paraphernalia, and material to manufacture more explosive devices in a bedroom. Savage was present at her residence when the search warrant was executed. She admitted that she had previously manufactured approximately five to seven pipe bombs of various sizes at her residence. She described the bedroom where the pipe bombs, materials for making more explosive devices, drugs, and drug paraphernalia were found as her “lab.” She also stated that she knew that it was unlawful to manufacture explosive devices, but that she had a passion for it and considered manufacturing and detonating explosive devices to be her hobby.
Savage, 24, of Cornelia, Ga., was indicted on June 26, 2012, on one count of making two unregistered pipe bombs, one count of possessing two unregistered pipe bombs, and one count of being a prohibited person in possession of firearms. Today Savage pleaded guilty to making and possessing the pipe bombs. She could receive a maximum sentence of 20 years in prison and a fine of up to $500,000. In addition, she could be ordered to serve up to six years of supervised release after any term of imprisonment.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. In the negotiated plea agreement filed in Court today the Government and the defendant agreed to jointly recommend a calculation of the Sentencing Guidelines that could result in an advisory Sentencing Guidelines range of 57-71 months of incarceration. However, Savage retains her right to advocate at her sentencing hearing for a sentence that is below the advisory Sentencing Guidelines range.
Sentencing will be scheduled before United States District Judge Richard W. Story after a pre-sentence report is prepared.
This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.
Assistant United States Attorney William L. McKinnon, Jr. is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Grand Jury Returns Indictment Charging Fourteen Individuals with Conspiracy to Distribute Spice, Money LaunderingRead the Press Release
Indictment follows arrests, search warrants in St. George last monthSALT LAKE CITY – A federal grand jury returned an indictment Tuesday charging 14 individuals with conspiracy to distribute spice in connection with a nationwide law enforcement operation targeting synthetic drug trafficking organizations. Nine defendants are also charged with money laundering in the indictment, which includes one conspiracy count and 10 counts of money laundering.
The indictment also includes a notice of intent to seek the forfeiture real property located in Hurricane, Heber City, and Spanish Fork; funds from several bank accounts; money orders; and vehicles.
Charged in the Utah indictment are Brian Merrill, age 28, of Hurricane; Joshua Davis, age 37, of Hurricane; Buck Andersen, age 33, of St. George; Joseph Givogre, age 42, of Washington; Gary Jolley, age 58, of St. George; Alicia Brandom, age 31, of Hurricane; Curtis McOsker, age 40, of Las Vegas, a former resident of Santa Clara; Malin Pavelka, age 34, of St. George; Jennifer Barlow, age 22, of St. George; Richard Lewis, age 61, of St. George; David Flores, age 32, of West Jordan; James Hardwick, age 27, of South Jordan; David Carter, age 33, of Spanish Fork; and Becky Young, age 36, of West Jordan.
The Utah case is a part of “Project Synergy,” a national initiative which includes cases led by DEA, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); IRS-Criminal Investigation; and the FBI. The operation was announced in late June.
The investigation in Utah started when Illinois law enforcement officers, conducting a Spice investigation connected to a chain of smoke shops, found 9,644 packets of Spice which appeared to have been shipped to Illinois from St. George. The Spice packets were marketed under brands called “Gods of Spice” and “Blue Heaven.” Based on the information from Illinois officials, federal, state, and local law enforcement agencies in the St. George area, including the DEA, IRS-Criminal Investigation, HSI, BLM, the Washington County Drug Task Force, the Washington County Sheriff’s Office, the St. George Police Department, and the Hurricane Police Department launched an investigation.
Independent of the investigation launched by the information from Illinois, HSI agents seized two packages of Spice chemicals coming into the country to co-conspirators in the case, including a shipment from China.
The indictment alleges that from about March 2011 through about June 2013, the defendants conspired with each other and with other persons to distribute spice. The money laundering counts charge several of the defendants with engaging in monetary transactions involving property derived from an unlawful activity – which in this case is conspiracy to unlawfully distribute a controlled substance.
Davis, Carter, Givogre, and Flores are in custody. Andersen, Hardwick, and Jolley have been in custody since their arrest, but were released following a detention hearing Monday afternoon. Merrill, Brandom, Pavelka, Barlow, Lewis, and Young were released on conditions of supervised release following their arrest last month. McOsker has not been arrested.
Defendants in the case are scheduled for an arraignment on the indictment on Aug. 5, 2013, at 1:30 p.m. before U.S. Magistrate Judge Robert T. Braithwaite in St. George. The potential maximum penalty for the conspiracy count is 20 years in federal prison and a fine of $1 million. Each count of money laundering carries a potential 10-year penalty and a fine of $250,000.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Government Seizes Dietary Supplements Containing Unsafe Food Additive in Three StatesRead the Press Release
The Department of Justice has favorably resolved three actions it filed in Arizona, Pennsylvania and South Carolina, to seize and condemn dietary supplements containing the unsafe food additive 1,3-dimethylamylamine, commonly known as DMAA, an amphetamine-like stimulant that has been linked to at least 86 adverse health events. According to the U.S. Food and Drug Administration (FDA) and federal law, the sale of DMAA in interstate commerce is illegal, and consumers should not buy or use dietary supplements containing DMAA.
“Although DMAA is sometimes found in seemingly ordinary, over-the-counter dietary supplements, it has been linked to serious health problems,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The FDA and the Department of Justice are dedicated to protecting Americans by getting products containing DMAA off the shelves.”
In June, in coordination with the FDA, the U.S. Attorney’s Office for the Western District of Pennsylvania, the U.S. Attorney’s Office for the District of South Carolina and the Department of Justice’s Consumer Protection Branch filed actions in Pittsburgh; Anderson, S.C.; and Phoenix, to seize and condemn three caches of DMAA-containing products, located in warehouses owned by General Nutrition Centers Inc. (GNC). After the seizure actions were filed, GNC voluntarily agreed to destroy all DMAA-containing products remaining at the three warehouses. Subsequently, FDA personnel witnessed the destruction of DMAA-containing products located in the Pennsylvania and Arizona warehouses, and the FDA has made arrangements to witness the destruction of these products in the South Carolina warehouse. As a result of these efforts, the government has dismissed all three seizure actions.
In a related matter, the manufacturer of the dietary supplements containing DMAA, Dallas-based USPlabs LLC, recently destroyed all DMAA-containing products in its possession. USPlabs, along with at least 10 other manufacturers of DMAA-containing products, has agreed to stop producing products containing DMAA.
The Department of Defense maintains a list of products containing DMAA that may still be in the marketplace. The list is available at http://hprc-online.org/dietary-supplements/files/DMAA_List.pdf.Four Defendants Charged in Federal Court for Participating in Nationwide Timeshare Telemarketing Fraud SchemeRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that earlier today, a federal grand jury returned indictments against Mark S. Parks (age: 39) of Denmark, Wisconsin, Mindy L. Parks (age: 34) of Denmark, Wisconsin, Ashley M. Conant (age: 28) of Green Bay, Wisconsin, and Eileen M. Goltz (age: 51) of Port Charlotte, Florida, charging each of them with one count of Conspiracy to Commit Mail and Wire Fraud.
Each defendant faces up to twenty years’ imprisonment, a fine of up to $250,000, a $100 special assessment, and up to three years of supervised release. In addition, pursuant to the “Senior Citizens Against Marketing Scams” or SCAMS Act, if the United States proves that at least ten individuals over age 55 were victimized as a result of the conspirators’ telemarketing efforts, each defendant could face an enhanced penalty of up to ten years’ imprisonment (added to the underlying sentence for the conspiracy to defraud).
According to a criminal complaint previously filed in the case, the defendants operated a fraudulent timeshare resale scheme in Green Bay, Wisconsin, which resulted in over a thousand victims in all fifty states and Canada being defrauded of over $2,300,000. The defendants operated from 2007 to 2011 under several different names, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Victims were told that interested buyers were prepared to purchase their existing timeshares in exchange for upfront “administrative fees” ranging from a few hundred dollars to a few thousand dollars depending on how much the telemarketers believed they could collect. According to the complaint, many of the victims are elderly and had previously been victimized by similar schemes.
This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service with assistance of the Brown County Sheriff’s Office, the Door County Sheriff’s Office, the Waupaca County Sheriff’s Office, the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove each of them guilty beyond a reasonable doubt.
Fort Thompson Man Charged with Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury.
Bryant James Ross, age 39, was indicted by a federal grand jury on July 17, 2013, for Felon in Possession of Firearm. Ross appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Ross is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Ross was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Former University of rochester employee pleads guilty to fraudRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Debra Bulter pleaded guilty to conspiracy to commit mail fraud and to money laundering before U.S. District Judge Frank P. Geraci, Jr. Conspiracy carries a maximum sentence of 20 years in prison and a fine of $250,000. Money laundering carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant worked as the Program Administrator for the Department of Anesthesiology at the University of Rochester in Rochester. The Department of Anesthesiology provides anesthesia services to patients undergoing surgery or other procedures at Strong Memorial Hospital, Highland Hospital and other medical facilities in Rochester. A physician, known as the Chair, oversees the Anesthesiology Department's management and operations. The Program Administrator oversees administrative duties and reports to the Chair.
From 2001 through 2012, an anesthesia medical group, the “Anesthesia Medical Group,” contracted with the Department of Anesthesiology to provide anesthesiologists at medical facilities served by the Department of Anesthesiology. Between 2003 to 2008, two doctors (the “two Group doctors”) from the Anesthesia Medical Group individually contracted with the Department of Anesthesiology purportedly to provide additional administrative services to the Department of Anesthesiology.
From 2007 through 2012, the defendant participated in several schemes to defraud the Department of Anesthesiology and the Anesthesiology Medical Group. One scheme involved deceiving the Department of Anesthesiology from 2007 to 2009 into making fraudulent payments to the two Group doctors and the Anesthesia Medical Group. The Department of Anesthesiology was provided fraudulent documents, including fraudulent requisition forms and invoices, which made it appear that the two Group doctors and the Anesthesia Medical Group had provided adequate services to the Department of Anesthesiology for such payments. As a result of the fraudulent documents, the Department of Anesthesiology was deceived into paying the two Group doctors $930,000 and the Anesthesia Medical Group $530,000 to which they were not entitled. To compensate the defendant for her participation in the scheme, the Anesthesia Medical Group was deceived into paying the fraudulent money it received from the Department of Anesthesiology to a business started by the defendant, DJA Solutions, Inc.
From January 2010 to September 2012, the Department of Anesthesiology and the Anesthesia Medical Group were deceived into causing a large portion of the compensation earned by the Anesthesia Medical Group from the Department of Anesthesiology to be diverted to the two Group doctors. As a part of the scheme, the two Group doctors each executed fraudulent contracts with the Department of Anesthesiology for the fiscal years 2010 through 2013 which stated that they intended to provide additional administrative services to the Department of Anesthesiology worth more than $3,000,000. These contracts were improperly signed by the defendant on behalf of the Department of Anesthesiology and concealed from the Chair of the Department of Anesthesiology and the other anesthesiologists at the Anesthesia Medical Group. The two Group doctors also caused invoices in their own names to be submitted to the Department of Anesthesiology which falsely represented that they had provided the services listed on such invoices. The scheme caused the Department of Anesthesiology to divert compensation actually earned by the Anesthesia Medical Group to the two Group doctors in the total amount of $1,909,156. To compensate the defendant for her role in this scheme, the Anesthesia Medical Group was deceived into to paying the defendant’s business, DJA Solutions, LLC, more than it was entitled. For the years 2010 through 2012, DJA Solutions, LLC received $1,169,606 from the Anesthesia Medical Group.
Another of the defendant's schemes involved causing the Department of Anesthesiology to make a fraudulent and unauthorized loan to a doctor working for the Department of Anesthesiology. The defendant disguised various payments to the doctor as extra compensation earned by the doctor. The defendant did this by preparing fraudulent payroll documents, which were submitted to the Chair of the Department of Anesthesiology for authorization to pay the extra compensation to the doctor. The Chair signed such forms believing that the doctor was entitled to such extra compensation and was unaware that such payments were actually an improper loan to the doctor. The total amount of the fraudulent payments to the doctor was $510,726.
From October 2012 to May 2012, the defendant also caused the Department of Anesthesiology to pay a former employee of the Department of Anesthesiology $7,168 by disguising the payments as compensation earned by the former employee, when in fact, the former employee was no longer working for the Department of Anesthesiology.
Finally, from March 2009 to June 2012, the defendant submitted expense reimbursement forms totaling $13,097.67 to the Department of Anesthesiology for expenses which she either had already been reimbursed for or were not actual business expenses.
"In a scheme such as this, American taxpayers are defrauded twice," said U.S. Attorney Hochul. "They are defrauded a first time when medicare and medicaid funding is misspent and a second time when private insurance companies are impacted which could ultimately lead to higher premiums. This case serves as an example of the need for checks and balances in any organization. All employees, even those considered to be trusted individuals, need to have their work reviewed by another person."
The plea is the culmination of an joint investigation on the part of the United States Postal Inspection Service, under the direction of Kevin Niland, Inspector in Charge, Boston Division, United States Postal Inspection Service, and the Internal Revenue Service, under the direction of Toni M. Weirauch, Special Agent-In-Charge, New York Field Office.
The defendant is scheduled to be sentenced on November 21, 2013 at 9:30 a.m.
Former Senior Executive of ArthroCare Corp. Pleads<br /> Guilty in $400 Million Securities Fraud SchemeRead the Press Release
A former senior executive of ArthroCare Corp., a publicly traded medical device company based in Austin, Texas, pleaded guilty for his role in a scheme to defraud the company’s shareholders and members of the investing public by falsely inflating ArthroCare’s earnings, announced Acting Assistant Attorney Mythili Raman of the Department of Justice’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas. The plea was taken under seal on June 24, 2013, and unsealed late yesterday.
John Raffle, 45, of Austin, pleaded guilty before U.S. Magistrate Judge Mark Lane in Austin to conspiracy to commit securities, mail and wire fraud and two false statements violations. Raffle was the senior vice president of Strategic Business Units at ArthroCare, overseeing all sales and marketing staff at the company. Raffle admitted that he and other co-conspirators falsely inflated ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors and that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 and Form 10-Q for the first quarter of 2008 with the U.S. Securities and Exchange Commission that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings. As part of his plea, Raffle agreed that his conduct and the conduct of his co-conspirators caused more than $400 million in losses to shareholders.
According to court documents, Raffle and others determined the type and amount of product to be shipped to distributors – notably ArthroCare’s largest distributor, DiscoCare Inc. – based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders. Raffle and others then caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
According to the superseding information, DiscoCare agreed to accept shipment of approximately $37 million of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars. To conceal the fact that DiscoCare owed ArthroCare a substantial amount of money on the unused inventory, Raffle and others caused ArthroCare to acquire DiscoCare on Dec. 31, 2007.
According to court documents, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
Raffle faces a maximum prison sentence of five years in prison for each charge. A sentencing date has yet to be scheduled. Raffle’s co-defendant David Applegate pleaded guilty on May 9, 2013. ArthroCare’s Chief Executive Officer, Michael Baker, and Chief Financial Officer, Michael Gluk, were indicted as part of the same alleged securities fraud scheme on July 16, 2013. An indictment is merely a charge, and the defendants are presumed innocent until proven guilty.
This case was investigated by the FBI’s Austin office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
Former National Guard Transportation Officer Pleads Guilty to Accepting an Illegal GratuityRead the Press Release
Officer Awarded Contracts to Freight Shipper in Return for Cash and Plane Tickets
ATLANTA - Keith Glenn, a former Installation Transportation Officer for the Georgia Army National Guard, pleaded guilty to one count of accepting an illegal gratuity for accepting cash and other benefits from a private freight shipper to whom he awarded contracts to transport military equipment.
United States Attorney Sally Quillian Yates said, “This defendant was responsible for ensuring that contracts to move Georgia Army National Guard military equipment were awarded in compliance with federal rules and regulations. He personally profited from his position by accepting cash and gifts from a freight shipper and will now be held accountable for breaking the law and the public trust.”
“We are fully committed to tirelessly pursuing all those who knowingly attempt to defraud the government or accept bribes with respect to military contracts, particularly while we at war,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Our commitment is to ensure taxpayer dollars are not wasted or stolen and we will continue to fully investigate those who think they are above the law. During the last 10 years alone, Army CID Special Agents have been instrumental in recovering and returning millions of dollars to the Treasury and the Army from fraudulent practices involving contractors.”
According to United States Attorney Yates, the charges and other information presented in court: In 2008, Glenn became the Installation Transportation Officer for the Georgia Army National Guard (the “Guard”) facility located on Confederate Avenue in Atlanta. As the Installation Transportation Officer, Glenn was a federal employee working in the United States Property and Fiscal Office (“USPFO”). The USPFO is the primary focal point for federal funds and property allotted to the Guard. The Transportation Office of the USPFO is responsible for the award and oversight of all commercial transportation contracts (paid with federal funds) for the movement of Guard equipment and personnel. Glenn’s responsibilities included supervising the Transportation Office’s day-to-day operations and awarding contracts to private freight carriers for Guard freight shipments.
In March 2008, soon after he began working in the USPFO Transportation Office, Glenn met an individual who owned and controlled multiple companies in the freight shipping or brokerage business. Several months later, the USPFO Transportation Office began awarding business to that individual’s companies to ship Guard equipment and freight. Glenn selected the individual’s companies and awarded them shipment contracts to move Guard equipment and freight.
In making these selections, Glenn violated federal rules and regulations governing the selection of freight carriers and the process for awarding freight contracts. Glenn accepted cash and other personal benefits, including plane tickets, from that individual for or because of the contracts he awarded to the individual’s companies. On one occasion, the individual placed $5,000 in cash in Glenn’s car while meeting him at a local restaurant. Shortly before this payment, Glenn awarded multiple shipping contracts to the individual’s companies.
On June 4, 2013, Glenn, 48, of Lilburn, Georgia, was charged in a Criminal Information with one count of accepting an illegal gratuity. Today he pleaded guilty to the information and could receive a maximum sentence of two years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for September 27, 2013, at 9:30 a.m. before United States District Judge William S. Duffey, Jr.
This case is being investigated by the United States Army Criminal Investigation Command.
Assistant United States Attorney Doug Gilfillan is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Indian Point Supervisor Charged in White Plains Federal Court with Falsifying Records to Conceal Information from the Nuclear Regulatory CommissionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DANIEL WILSON, a former supervisor at Indian Point Energy Center (“Indian Point”), a nuclear power plant in Westchester County, was charged in a criminal Complaint (the “Complaint”) with engaging in deliberate misconduct in violation of rules of the Nuclear Regulatory Commission (“NRC”), making false statements in connection with a matter within the jurisdiction of the NRC, and fabricating records to conceal a violation of NRC requirements at the facility. This Complaint was based on the results of an investigation by the NRC’s Office of Investigations, led by Director Cheryl McCrary. WILSON was arrested today on the charges in the Complaint and was presented before United States Magistrate Judge Paul E. Davison in the White Plains federal courthouse, who ordered him released on bail conditions.
U.S. Attorney Preet Bharara stated: "Any alleged deliberate misconduct at a facility like Indian Point is a matter of grave concern to this Office. One need look no further than recent natural disasters to know that at important facilities, backup generators and other systems must be maintained in working order because in an emergency they may be critical."
NRC Region I Administrator Bill Dean stated: “The NRC relies on nuclear power plant employees to behave in a responsible and trustworthy manner. When it comes to ensuring the operability of a plant's emergency diesel generators, or any other vital nuclear safety equipment, there can be no room for anything other than employees adhering to the highest standards of integrity. In coordination with the Department of Justice, the NRC will move forward with any civil enforcement action in this matter."
As charged in the Complaint, Indian Point must comply with technical specifications; otherwise Indian Point may be required to shut down until it complies. Indian Point maintains a backup system of emergency generators for use in part to provide power in the event of a power outage and shutdown. WILSON, the Chemistry Manager at Indian Point from 2007 through 2012, was responsible for, among other things, ensuring that certain aspects of the operation at Indian Point were in compliance with the required technical specifications. One such requirement regards the amount of particulate matter in the diesel fuel used to power emergency generators at Indian Point, which must not exceed a set limit. In 2011, tests of the diesel fuel maintained for use in powering the emergency generators at Indian Point showed that the ratio of particulate matter in the diesel fuel exceeded the limit set by the NRC.
In February 2012, WILSON concealed material facts from his employer and the NRC by fabricating test data for non-existent resamples of the diesel fuel, falsely showing that the resamples of diesel fuel tested below the applicable NRC limit. In fact, no such resamples were taken, and the purported test data were fabrications. Later in February 2012, WILSON, in response to questioning by other employees of Indian Point in advance of an inspection by the NRC, wrote a report – the kind on which the NRC ordinarily relies in inspecting nuclear facilities for safety – in which he gave a false explanation for the lack of supporting documentation for his fabricated test results. In a subsequent interview with NRC personnel, WILSON admitted that he had fabricated the test results so that Indian Point would not have to shut down.
WILSON, 57, of Walden, New York, is charged in a two-count Complaint with willfully violating rules of the NRC by engaging in deliberate misconduct, in violation of Title 42, United States Code, Section 2273, and with making false statements in a matter within the jurisdiction of the NRC, in violation of Title 18, United States Code, Section 1001. If convicted, WILSON faces a maximum sentence of seven years in prison.
Mr. Bharara praised the efforts of the NRC Office of Investigations in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Benjamin Allee is in charge of the prosecution.
The charges in the Complaint are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
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WilsonDaniel.ComplaintFormer Bay Area Resident Pleads Guilty to Conspiracy to File False Claims for Tax RefundsRead the Press Release
SAN FRANCISCO, Calif. – Charmetra Urssery pleaded guilty yesterday to conspiracy to file a false tax returns, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez, announced.
According to the plea agreement, beginning in June 2008, Urssery engaged in a scheme to obtain fraudulent tax refunds. As part of her role in the scheme, Urssery gathered identities to use in false tax return filings that were submitted to the Internal Revenue Service (IRS). Urssery also used her bank account number to receive the fraudulent tax payments. When Urssery withdrew the money from her own bank account, she and others in the conspiracy would split the proceeds from the scheme. As part of her plea, Urssery agreed to repay $196,766 to the United States Treasury.
Urssery, 36, of Sacramento, was indicted on July 12, 2012. She pleaded guilty to the single charge in the Indictment – Conspiracy to File False Claims, in violation of 18 U.S.C § 286.
Urssery is scheduled to be sentenced on November 13, 2013. Urssery was charged along with Angela Pellette, who pleaded guilty to conspiracy to file false tax returns on June 12, 2013, and agreed to repay the United States $197,659. Pellette is scheduled for sentencing on September 18, 2013.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of 18 U.S.C § 286, is ten years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. sentencing guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Newman is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the IRS-CI.
Florida Man, Roger Brent Churchwell, Charged with Crimes Involving the Sexual Exploitation of ChildrenRead the Press Release
ROGER BRENT CHURCHWELL, age 58, of Vero Beach, Florida, was charged in a one-count bill of information today for crimes involving the sexual exploitation of children, announced United States Attorney Dana J. Boente.
If convicted, CHURHCWELL faces a mandatory minimum of five years, and a maximum of twenty years in prison, followed by up to a life term of supervised release, and a $250,000 fine. CHURCHWELL can also be required to register as a sex offender.
United States Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Bill of Information )
Florida Man Sentenced for Selling Counterfeit GoodsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Ormand Beach, Florida, man convicted of Trafficking in Counterfeit Goods or Services was sentenced on July 18, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nir Giist, age 55, was sentenced to one year of probation, ordered to pay a $10,000 fine, and $70,000 in restitution to the victims, which include Monster Energy, The North Face, American Eagle, and Rovio Entertainment (Angry Birds.) Giist also owes $100 to the Federal Crime Victims Fund.
Between February 2010 and August 2011, Giist intentionally sold counterfeit, wearable items through a corporation named Sturgis Black Hills Rally S.D., LLC. Through that corporation, Giist and others owned or leased seven stores in the Black Hills where they sold counterfeit products, as well as legitimate products. The sale of the counterfeit goods, such as t-shirts, hats, pants, shorts, and other wearable items, were deliberately designed and marketed to deceive consumers, and violated the trademarks held by the victims.
“This case serves as a timely reminder that with an event the magnitude of the upcoming Sturgis Motorcycle Rally, there is an increased chance of counterfeit goods being sold or counterfeit money being used. I urge the public to be aware, and if there is a suspicion of counterfeit trafficking, they should contact law enforcement authorities immediately,” cautioned Johnson.
U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) will have special agents on hand at the 2013 Sturgis Motorcycle Rally to investigate allegations of illegal counterfeiting of trademark items.
"HSI takes violations of copyright and trademark laws seriously," said Eugene Paulauskas, acting deputy special agent in charge of HSI St. Paul, which covers South Dakota. “We will continue to pursue criminals who break these laws at events such as these in order to protect the public's health and safety.”
This case was investigated by HSI. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.Executive Recycling Company and Executives Sentenced for Fraud and International Environmental CrimesRead the Press Release
DENVER – Executive Recycling, Inc. (a corporation) and Brandon Richter, age38, of Highlands Ranch, Colorado, the owner and chief executive officer of Executive Recycling, were sentenced today by U.S. District Court Judge William J. Martinez for their roles in a fraudulent scheme related to the disposal and exportation of electronic waste to foreign countries, announced United States Attorney John Walsh, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble and EPA Criminal Investigation Division Special Agent in Charge Jeffrey Martinez. Executive Recycling, the corporation, was sentenced to pay a $4,500,000 fine and serve 3 years on probation. Richter was ordered to serve 30 months in federal prison, followed by 3 years on supervised release. Judge Martinez also ordered Richter to pay a $7,500 fine and $70,144 in restitution joint and several with the victims of the crime. Richter was ordered to report to a Bureau of Prisons facility within 15 days of designation. Judge Martinez also ordered $142,241.10 in asset forfeiture.
The defendants were convicted in December 2012 of multiple counts of mail and wire fraud and environmental crimes related to the illegal disposal of electronic waste, smuggling, and obstruction of justice, following an 11-day trial.
Last week former vice president of operations, Tor Olson, age38, of Parker, Colorado, was sentenced to serve 14 months in prison, pay a $5,000 fine, and pay over $15,000 in restitution. Olson remains free on bond pending appeal.
Executive Recycling, Inc., as a corporation, Brandon Richter and Tor Olson were indicted by a federal grand jury in Denver on September 15, 2011. The jury trial before Judge Martinez began on December 3, 2012. The jury reached their verdict on December 21, 2012. Olson was sentenced on July 17, 2013.
According to the indictment, as well as the facts presented at trial, Executive Recycling was an electronic waste recycling business located in Englewood, Colorado with affiliated locations in Utah and Nebraska. The company collected electronic waste from private households, businesses, and government entities. Executive Recycling was registered with the Colorado Department of Public Health and Environment as a “Large Quantity Handler of Universal Waste.” Richter, as owner and CEO, was responsible for supervising all aspects of the company. Olson, the vice president of operations, was responsible for running day-to-day operations.
A significant portion of electronic waste collected by the defendants were Cathode Ray Tubes (CRTs). CRTs are the glass video display component of an electronic device, usually a computer or television monitor, and are known to contain lead. The defendants engaged in the practice of exporting electronic waste, including CRTs, from the United States to foreign countries, including the People’s Republic of China. The defendants regularly negotiated the sale of electronic waste to brokers who represented foreign buyers or who sold the electronic waste overseas. The foreign buyers often paid the defendants directly. To transport the electronic waste, the defendants used shipping cargo containers which were loaded at the company’s facility. The containers were then transported by rail to domestic ports for export overseas.
Executive Recycling appeared as the exporter of record in over 300 exports from the United States between 2005 and 2008. Approximately 160 of these exported cargo containers contained a total of more than 100,000 CRTs.
Between February 2005 and continuing through January 2009, the defendants knowingly devised and intended to devise a scheme to defraud various business and government entities who wanted to dispose of their electronic waste, and to obtain these business and government entities’ money by means of materially false and fraudulent pretenses. The defendants represented themselves on a website to have “extensive knowledge of current EPA requirements.” The defendants falsely advertised to customers that they would dispose of electronic waste in compliance with all local, state and federal laws and regulations. It was part of the scheme that the defendants falsely represented that they would dispose of all electronic waste, whether hazardous or not, in an environmentally friendly manner. Specifically, the defendants falsely represented that the defendant company recycled electronic waste “properly, right here in the U.S.” They also stated that they would not send the electronic waste overseas.
The defendants’ misrepresentation induced customers to enter into contracts or agreements with the defendants for electronic waste disposal. Each victim paid the defendants to recycle their electronic waste in accordance with the representations made by the defendants. Contrary to their representations, the defendants sold the electronic waste they received from customers to brokers for export overseas to the People’s Republic of China and other countries.
“The defendants in this case not only caused actual harm to the environment by shipping electronic waste overseas for dumping, they defrauded their customers by falsely claiming to be disposing of that waste in an environmentally safe way,” said U.S. Attorney John Walsh. “As cases like this one show, federal investigators and the U.S. Attorney’s Office can and will reach beyond our country’s borders to investigate crime and prosecute wrongdoers.”
“This prison sentence and fine awarded to this CEO demonstrate that there are no shortcuts to following U.S. export laws,” said Kumar Kibble, special agent in charge of HSI Denver. “This CEO also intentionally deceived the public for years by falsely advertising an environmentally friendly recycling business plan within the United States. Instead, he regularly exported tons of obsolete and discarded electronic equipment containing toxic materials to third-world countries, and took actions to illegally hide these practices from government officials.”
“The defendants claimed to safely recycle e-waste in the U.S., but regularly exported obsolete and discarded electronic equipment with toxic materials to third-world countries,” said Jeff Martinez, Special Agent in Charge of EPA’s criminal enforcement office in Colorado. “Pollution and greed respect no boundaries and EPA is committed to combating the illegal traffic of e-waste, which poses particularly significant environmental health risks in developing countries.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Environmental Protection Agency Criminal Investigation Division and the Colorado Attorney General’s Office, Special Prosecutions Unit.
The defendants were prosecuted by Assistant U.S. Attorneys Suneeta Hazra and Valeria Spencer and Special Assistant U.S. Attorney Lillian Alves.
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Drug Trafficker Sentenced to 168 Months in PrisonRead the Press Release
EUGENE, Ore. – Juan Jesus Chavez-Salazar, 26, of Lane County, Oregon, was sentenced today by Chief District Judge Ann Aiken to 168 months in prison for conspiracy to possess and distribute methamphetamine. Upon his release from prison, defendant will be on supervised release for five years.
Defendant and his associates were the target of a long-term federal and state drug investigation. Beginning in June 2010, law enforcement conducted multiple purchases of methamphetamine from an individual who was acting as a courier for defendant. A stash house in Springfield, Oregon was identified, and it appeared that the residence was being used to receive and store drugs. After significant investigation and surveillance, law enforcement identified vehicles which regularly appeared at the stash house and they attempted to locate and stop one of the vehicles.
On March 28, 2011, a vehicle driven by Rafael Soto-Mendoza was stopped near Roseburg Oregon. The vehicle, which had previously been observed at the stash house, was searched. Two pounds of methamphetamine and a loaded .45 caliber pistol were located in a hidden compartment in the dash.
Two days later, on March 30, 2011, Octavio Mendoza-Diaz and Marlo Gonzalez-Meza arrived at the stash house. They had not previously been seen during this investigation and law enforcement suspected that they were transporting methamphetamine to the stash house.
On March 31, 2011, Gonzalez-Meza was stopped after he left the stash house. His vehicle was searched and $20,000 was located in a hidden compartment. Mendoza-Diaz was stopped in a separate vehicle and a drug dog alerted to his dash board which showed signs of having been removed and replaced. Chavez-Salazar was driving a third vehicle with Uriel Hernandez-Naranjo as a passenger, and he rapidly drove away from officers when they tried to stop him. An agent searched the ground in the area where Chavez-Salazar had driven and located methamphetamine.
A search of the stash house revealed 263 grams of methamphetamine, $25,269 in currency, large amounts of wrapping material, a pistol and a shotgun with a sawed-off stock. The defendants were arrested and charged in federal court.
Several of Chavez-Salazar’s co-defendants have been convicted and sentenced as follows: Rafael Soto-Mendoza was convicted of possession with intent to distribute methamphetamine on May 22, 2012, and sentenced to 87 months in prison; Octavio Mendoza-Diaz was convicted of conspiracy to distribute methamphetamine and sentenced to 60 months in prison; and, Uriel Hernandez-Naranjo was convicted of conspiracy to distribute methamphetamine on October 16, 2012, and sentenced to 33 months in prison. Co-defendant Marlo Gonzalez-Meza has pled guilty to conspiracy to distribute methamphetamine and is set for sentencing.
This case was investigated by the Drug Enforcement Administration, Immigration and Customs Enforcement, the Interagency Narcotics Team and the Oregon State Police, and was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Drug Dealer Sentenced to 17 1/2 Years in Jail for His Participation in A Conspiracy to Import DrugsRead the Press Release
Vessels, vehicles, and real estate property forfeitedSAN JUAN, P.R. – Yesterday evening, defendant Nick Irizarry-Rosado, was sentenced by United States District Court Judge José A. Fusté to serve a term of imprisonment of 17 ½ years for his participation in a conspiracy to import narcotics into Puerto Rico, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The judge also ordered the forfeiture of multiple vessels, vehicles, and other assets named in the Indictment, as well as a parcel of land and house in La Parguera, Lajas, PR owned by Irizarry-Rosado.
Irizarry-Rosado was one of thirteen individuals accused of conspiring to import multi-kilograms amounts of cocaine from the Dominican Republic and other places abroad into Puerto Rico on board of motor vessels. The evidence obtained in this case showed that Irizarry-Rosado and other members of the drug trafficking organization would purchase motor vessels, to include a Wellcraft 33 feet and Bertram 46 feet to be used in the transportation of the narcotics by members of the conspiracy. They would pay in cash for the purchase of such vessels and would arrange for the preparation of hidden compartments in the vessels to be used in the transportation of the narcotics by members of the conspiracy. Once the narcotics were transported into Puerto Rico, some of the narcotics would be resold in Puerto Rico and some would be further transported to the continental United States for eventual resale.
The evidence against the drug trafficking organization included photographs, audio and video recordings. Nine of the thirteen defendants, including Irizarry-Rosado pleaded guilty. The two defendants who went to trial were convicted and are waiting to be sentenced. They are facing sentences ranging from 10 years to life. There is a defendant pending to be extradited from the Dominican Republic and another that is still pending trial.
The case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and prosecuted by Assistant United States Attorney Carlos R. Cardona.
District Man Sentenced to Four Years in Prison for Attempted Sexual Assault-Defendant Lured Victim into His Car by Offering A Ride Home-Read the Press Release
WASHINGTON – Ronnie Moore, 48, of Washington, D.C., was sentenced today to four years in prison on charges stemming from an incident in which he lured a woman into his car and then tried to sexually assault her, announced U.S. Attorney Ronald C. Machen Jr.
Moore pled guilty in May 2013 in the Superior Court of the District of Columbia to charges of assault with intent to commit first-degree sexual abuse and felony threats. He was sentenced by the Honorable Ronna L. Beck. As a result of the plea, Moore must register as a sex offender for the rest of his life. Upon completion of his prison term, Moore will be placed on 10 years of supervised release.
According to the government’s evidence, on March 10, 2012, at about 10 a.m., Moore was driving a car at the intersection of Branch and Pennsylvania Avenues SE. The victim, then 19, was standing at a bus stop at that location, and Moore pulled up and offered her a ride. Moore said that he knew the victim’s mother, who he mentioned by name, and the victim accepted the ride.
Once inside his vehicle, Moore began complimenting the victim on her looks and asked her if she would be willing to have sex for money. When the victim refused, Moore threatened to kill her if she did not comply. The victim then punched Moore in the face and attempted to escape. Moore struggled to keep her in his car. The victim was able to escape the car, but left several personal effects in the vehicle. Moore sped away from the area.
On June 20, 2012, the victim saw Moore in a checkout line at a supermarket on Alabama Avenue SE. She and a relative confronted Moore, and then reported the sighting to a police officer working at the supermarket. Moore was then placed under arrest.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department’s Sex Crime Investigations Division. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim Witness Advocate Lesley Richardson, Paralegal D’Yvonne Key, and Information Technology Specialist Kimberly Smith. Finally, he commended Assistant U.S. Attorneys Mervin A. Bourne, Jr. and Jeff T. Cook, who investigated and prosecuted the matter.
13-256District Man Sentenced to 14-Year Prison Term for Pair of Robberies of Metro Passengers-Defendant Was Armed with A Handgun in One of the Attacks-Read the Press Release
WASHINGTON – Alazajuan Gray, 20, of Washington, D.C., was sentenced today to a 14-year prison term on charges stemming from a series of crimes, including two robberies that took place on Metrorail trains, U.S. Attorney Ronald C. Machen Jr. announced.
Gray and a co-defendant, Clifton Smith, 21, of Oxon Hill, Md., were found guilty by a jury in May 2013 of armed robbery, robbery, obstruction of justice, threats, contempt of court, carrying a dangerous weapon and other charges. The verdicts followed a trial in the Superior Court of the District of Columbia. Gray was sentenced by the Honorable Herbert B. Dixon, Jr., and Smith is awaiting sentencing.
In addition to the prison term, Judge Dixon ordered Gray to pay $1,800 in fines and $450 in restitution and to undergo anger management and educational training. Upon completion of his prison term, Gray will be placed on five years of supervised release.
According to the government’s evidence, on Sept. 21, 2012, at about 11:30 p.m., Gray and Smith approached several college students who had recently moved to Washington, D.C. as these college students, including the victim, were on a Metrorail train at the Fort Totten station. Gray, who was armed with a handgun, took the victim’s iPhone and money. Smith encouraged Gray to take the victim’s property. The victim did not report the crime at the time; Smith told him not to “snitch” and tell the police or he would be harmed.
One week later, on Sept. 28, 2012, at 8:30 p.m. the same victim, who was returning home from his part-time job he used to pay for community college, was at the Fort Totten Metro station and again encountered Gray and Smith. Gray approached him and flashed a gun. Gray and Smith chased the victim into the station’s kiosk. While inside the kiosk, Smith demanded if he was “snitching” and then assaulted the victim. Gray and Smith fled, but soon were caught by police.
Neither the gun nor the victim’s iPhone were found on either of the defendants. However, police found an iPhone near the location where Smith was stopped that night by the Metro Transit Police. The iPhone was linked to a separate Sept. 28, 2012 robbery. That robbery occurred at 7:30 p.m. on a Metrorail train at the Gallery Place/Chinatown station. In that incident, Gray grabbed an iPhone from a woman who had also recently moved to Washington, D.C. She was studying her graduate school homework as the train arrived at the station. After Gray snatched the iPhone, Smith then blocked the victim’s attempt to chase after Gray.
Cellular tower evidence placed Gray’s cell phone at the scene of the first armed robbery.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also expressed appreciation to the Metro Transit Police and the FBI for assisting in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Todd McClelland, Lynette Briggs, Lynda Randolph, and Kendrell Smith; Litigation Technology Specialists Anisha Bhatia, Thomas Royal, Will Henderson, Josh Ellen, Paul Howell, Claudia Gutierrez, and Leif Hickling; Victim/Witness Advocates Jennifer Clark and James Brennan, former intern Justin Bennett, and Assistant U.S. Attorneys Suzanne Curt and Chrisellen Kolb, Deputy Chiefs of the Appellate Division. Finally, he thanked Assistant U.S. Attorney Phil Selden, of the Felony Major Crimes Section, who is prosecuting the matter.
13-257Director of Operations of North Bergen, N.J., Housing Authority Sentenced to 46 Months in Prison for ExtortionRead the Press Release
NEWARK, N.J. – The director of operations for the Housing Authority of the Township of North Bergen, N.J., was sentenced today to 46 months in prison for extorting employees of a maintenance company contracted by the authority, U.S. Attorney Paul J. Fishman announced.
John T. Kennell, 50, of North Bergen, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with extortion under color of official right and by fear of economic harm. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court: While the director of operations for the NBHA, Kennell used his official position to extort cash payments from employees of a company that provided repair and grounds maintenance services. Kennell, who supervised the employees of the company working for the Authority, accepted cash payments in amounts ranging from $100 to $400 from employees for, among other things, securing additional paid vacation days for these employees. Kennell assisted in securing these additional paid vacation days by falsely reporting to the company that the employees were working at the NBHA, when they were, in fact, traveling outside of the United States. Between February 2008 and June 2011, the company compensated employees for approximately 80 days of unauthorized vacation, totaling $12,498, because of Kennell’s actions.Kennell accepted $2,000 to $2,500 in payments for his official assistance in this fraud. He also accepted cash payments of $50 to $100 from an undocumented alien employee of the company for permitting that employee to twice change the alias that employee was using to continue working. Using his position of authority, as well as the threat of termination of employment, Kennell also regularly extorted the employees of the company – sometimes as frequently as twice a month – for cash payments in amounts ranging from $10 to $20 per employee.
In addition to the prison term, Judge Linares sentenced Kennell to three years of supervised release and ordered him to pay a $5,000 fine.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of U.S. Department of Housing and Urban Development Office of Inspector General, under the direction of Special Agent in Charge Cary A. Rubenstein, and criminal investigators from the U.S. Attorney’s Office in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr. of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense Counsel: Arthur R. Carmano Esq., Englewood, N.J.Coal Township Man Charged with Failing to Report Earned IncomeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges have been filed against Paul J. Orner, of Coal Township, Pennsylvania.
According to United States Attorney, Peter J. Smith, Orner, age 55, is charged in a one-count Information with failing to report earned income to the Railroad Retirement Board while he was receiving a disability pension. The charge arose out of a Railroad Retirement Board investigation of individuals who failed to report income to the Railroad Retirement Board.
The investigation was conducted by the United States Railroad Retirement Board, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is one year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Civilian Navy Employee Who Defrauded Navy and VA of over $350,000 in Benefit Payments to Serve 2 Years in PrisonRead the Press Release
United States Attorney Laura E. Duffy announced that veteran Leray Shurn was sentenced yesterday to serve two years in federal prison by United States District Court Judge Thomas J. Whelan for running a landscaping business while claiming worker’s compensation and unemployment benefits from the Department of the Navy (Navy) and Department of Veterans Affairs (VA) to which he was not entitled. Judge Whelan also ordered Shurn to pay $357,977 in restitution and a $5,000 fine. Shurn’s fraud spanned more than five years and cheated two U.S. government agencies out of over $350,000.
According to evidence presented during trial, Shurn falsely represented to the Navy and VA that back and later knee injuries prevented him from working as a Navy civilian employee, and that he was not engaged in any employment where he received payment of any kind, was not self-employed, was not involved in any business enterprises, and did not have an ownership interest in any business enterprises. He also falsely claimed that his disability prevented him from being able to obtain employment.
In January 2013, a jury returned guilty verdicts on all 16 counts of fraud (5 counts of mail fraud, 4 counts of wire fraud, 5 counts of fraud to obtain federal employee’s compensation, and 2 counts of false statements to the VA). During the trial, the jury heard and saw evidence, including video recordings, that Shurn operated a landscaping business in which he personally performed landscaping work for numerous customers, provided customers with his business card for “Leray’s Landscaping” as well as monthly invoices, and represented to landscaping suppliers that he was in the landscaping business. The jury also received evidence that while Shurn was concealing his landscaping business from the Navy and VA, he completed a survey in which he indicated that he was a business owner.
United States Attorney Duffy added, “During these difficult budgetary times, submission of fraudulent claims harms our community and government agencies by diverting financial resources away from those with legitimate claims who are most in need of benefits payments and prevents agencies from funding other priorities.”
DEFENDANT Case Number: 12CR1053-W Leray Shurn SUMMARY OF CHARGES16 Counts
INVESTIGATING AGENCIES
Title 18, United States Code, Section 1341 - Mail Fraud
Title 18, United States Code, Section 1343 - Wire Fraud
Title 18, United States Code, Section 1920 - False Statement or
Fraud to Obtain Federal Employee’s Compensation
Title 18, United States Code, Section 1001 - False Statement to a Government AgencyNaval Criminal Investigative Service
Department of Veterans Affairs Office of Inspector GeneralCharles City Man Charged with Multiple Firearms ViolationsRead the Press Release
Randy Patrie, age 40, from Charles City, Iowa, has been charged with committing four firearms offenses: 1) stealing firearms from a licensed firearms dealer; 2) possession of stolen firearms; 3) possession of firearms as a felon and an Armed Career Criminal; and 4) possession of sawed-off shotguns. The charges are contained in an Indictment filed on July 23, 2013, in the United States District Court in Cedar Rapids.
A prior criminal complaint alleged that, on or about July 4, 2013, Patrie was found in possession of more than 20 firearms during a search of his home by the Charles City Police Department. Officers searched Patrie’s home while investigating a burglary of a residence in Charles City that occurred on July 4, 2013. During the search, officers found 20 firearms stolen from Gilbert’s Sale Yard, located in rural Floyd, Iowa. Gilbert’s Sale Yard was burglarized on May 2, 2013. The Complaint further alleges that Patrie admitted to law enforcement officers that he committed the Gilbert’s Sale Yard burglary and stole the firearms, and he further admitted he knew he was prohibited from possessing the firearms because he was a convicted felon. According to the complaint, Patrie has the following prior felony convictions:
• Attempted Burglary in the 2nd degree, September 24, 1991, in the Iowa District Court for Mitchell County;
• Delivery of Methamphetamine on May 28, 1996, in the Iowa District Court for Floyd County; and
• Burglary 3rd Degree, on May 27, 2003, in the Iowa District Court for Floyd County.
The indictment charges Patrie in Count 1 with stealing the firearms from Gilbert’s Sale Yard, and in Count 2 with knowing possession of those stolen firearms. Count 3 charges Patrie with being a felon in possession of the firearms stolen from Gilbert’s Sale Yard, and with possessing three additional firearms. Count 3 also alleges Patrie is an armed career criminal in that he possessed the firearms after having been convicted of three or more violent crimes or serious drug offenses. Count 4 of the indictment alleges defendant also possessed two sawed-off shotguns.
If convicted, Patrie faces a possible maximum sentence of life in prison, a $1 million fine, $400 in special assessments, and 14 years of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosive, the Iowa Division of Criminal Investigation, the Charles City Police Department, and the Floyd County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-2016.
California Man Charged with Sexual Exploitation of A Child and Distribution of Material Involving the Sexual Exploitation of MinorsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sacramento, California, man has been indicted by a federal grand jury for Sexual Exploitation of a Child and Distribution of Material Involving the Sexual Exploitation of Minors.
Neal LaPointe, age 30, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 22, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 30 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and LaPointe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, Rosebud Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs, Pennington County Sheriff’s Office, Rapid City Police Department, Sioux Falls Police Department and the U.S. Marshals Service. U.S. Attorney Brendan Johnson and Assistant U.S. Attorneys Tim Maher and Sarah Collins are prosecuting the case.
LaPointe was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for September 10, 2013.Bay Village Man Sentenced to Nearly Four Years in Prison, Ordered to Pay $620,000Read the Press Release
A Bay Village man was sentenced to nearly four years in prison and ordered to pay more than $620,0000 for fraud and tax crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Frederick C. Bryant, age 45, admitted to embezzling $505,832 from a victim that he guaranteed a 5 percent rate of return. Bryant converted the money for his own personal use. Bryant also failed to report the funds to the IRS, according to court documents.
He pleaded guilty earlier this year to crimes of mail fraud and tax evasion.
U.S. District Judge Dan Polster sentence Bryant to 46 months in prison. He also ordered Bryant to pay $505,832 in restitution to the victim and more than $115,000 in interest and penalties to the Internal Revenue Service.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
Albanian National Sentenced to Nine Years in Prison for Robbing Two TD Banks in Passaic and Bergen CountiesRead the Press Release
NEWARK, N.J. – An Albanian national who was living in Clifton, N.J., was sentenced today to 108 months in prison for robbing two TD Bank branches while armed with a gun in late 2011, U.S. Attorney Paul J. Fishman announced.
Arlind Hyseni, 31, also known as “Shpend Mazari” and “Luie Belushi,” previously pleaded guilty to an information charging him with two counts of bank robbery. One of the robberies occurred on Nov. 2, 2011, in Clifton in Passaic County, N.J., and the other on Dec. 30, 2011, in Wallington in Bergen County, N.J.
Hyseni pleaded guilty before U.S. District Judge Esther Salas. He was initially charged as Mazari, but admitted at his plea hearing that Hyseni is his real name. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: On Nov. 2, 2011, Hyseni entered a TD Bank in Clifton armed with a handgun and disguised with a baseball cap and a mask covering the lower part of his face. He ordered two bank employees to go to the vault and turn over cash, which they placed into a dark nylon bag.
Hyseni left the bank with the money, which included several “bait” bills and a dye pack. Hyseni discarded the money a short distance from the scene after the dye pack exploded.
On Dec. 30, 2011, Hyseni entered a TD Bank in Wallington shortly after it opened. He vaulted over the teller counter wearing a mask and armed with a handgun. He again ordered bank employees to go to the vault and hand over cash before fleeing with the money.
In addition to the prison term, Judge Salas sentenced Hyseni to serve three years of supervised release. Hyseni was also ordered to pay $20,715 in restitution.
In arguing for an increased sentence, the government noted Hyseni was convicted in absentia in Albania of robbery resulting in death and illegal possession of military weapons and sentenced to 25 years in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Andrew M. McLees, with the investigation.
The government is represented by Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Criminal Division in Newark.
13-302Defense counsel: Assistant Federal Public Defender David Holman Esq., Newark
Accountant Charged with Filing False Tax ReturnRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced today Edda Obando, 65, of Miami, pled guilty to a two count Information charging her with making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1).
According to the Information, Obando, who worked as an accountant, prepared a false and fraudulent tax return and significantly underreported income on her personal tax return.
Obando is scheduled for sentencing on September 30, 2013 before U.S. District Judge Frederico A. Moreno. She faces a maximum statutory sentence of up to three years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
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.