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18 July 2013
San Francisco Man Pleads Guilty to Attempted Sexual Exploitation of a Minor in MexicoRead the Press Release
SAN FRANCISCO - Gary Hardeman pleaded guilty in federal court in San Francisco today to committing a felony offense involving a minor while under a duty to register as a sex offender, United States Attorney Melinda Haag announced.
In pleading guilty, Hardeman admitted to traveling from San Francisco to Mexico City, Mexico, and attempting to engage in sexual acts with a 13-year-old girl between December 13 and 17, 2007. At the time of the offense, Hardeman was required by California law to register as a sex offender, based on his previous convictions for sex offenses in California.
Hardeman, 58 of San Francisco, was indicted by a federal Grand Jury on November 23, 2010. He was charged with one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c), and one count of committing this crime while under a legal obligation to register as a sex offender, in violation of 18 U.S.C. § 2260A. Under the plea agreement, Hardeman pled guilty to the second of these two counts.
“As this case shows, those who engage in crimes involving the sexual exploitation of minors cannot escape justice by traveling beyond our borders,” said Clark Settles, Special Agent in charge for Homeland Security Investigations, San Francisco. “Protecting young people both here and abroad from sexual predators continues to be a top priority for HSI. We are putting these predators on notice that HSI and its law enforcement partners stand ready to pursue and prosecute those who prey on innocent children. ”
Hardeman, who is currently in custody, will be sentenced on October 22, 2013, by The Honorable Richard Seeborg, U.S. District Court Judge, in San Francisco. The mandatory statutory penalty for a violation of 18 U.S.C. § 2260A is ten years and a maximum fine of $250,000, plus restitution. 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.
Owen Martikan and Janaki Gandhi are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Hui Chen. The prosecution is the result of a multi-year investigation by the Department of Homeland Security, Homeland Security Investigations, in the United States and Mexico.
Rowlett, Texas, Man Sentenced to 250 Months in Federal Prison for Attempted Enticement of ChildrenRead the Press Release
DALLAS — Joshua David Watson, 37, of Rowlett, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 250 months in federal prison, following his guilty plea in November 2012 to an indictment charging two counts of attempted enticement of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, from approximately July 25 to August 18, 2012, Watson used the Internet and a cell phone to persuade, induce and entice a purported parent of two minor children to allow him to engage in sexual activity with the children. Not only did Watson engage in a number of sexually explicit conversations with the purported parent of the children about engaging in sexual activity with them, but he also made plans to meet the purported parent and children and engage in sexual activity with the children. In fact, he arrived at a pre-arranged location on August 18, 2012, where he was arrested.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Pill Dealer GetsRead the Press Release
FEDERAL PRISON TIME FOR SELLING OXYCODONE IN BECKLEY
BECKLEY, W.Va. – A 27-year-old pill dealer was sentenced today to one year in federal prison for selling oxycodone in Beckley, announced U.S. Attorney Booth Goodwin. Carlos McMillion, of Beckley, previously pleaded guilty in March to distribution of oxycodone. On November 9, 2012, McMillion sold oxycodone pills to a confidential informant working in cooperation with law enforcement authorities. The illegal pill transaction took place near Beckley.
The Beckley Police Department conducted the investigation. Assistant United States Attorney Miller Bushong handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Philadelphia Man Charged with Sex Trafficking A MinorRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Rahim McIntyre, 36, of Philadelphia, PA, with three counts of sex trafficking of a minor and by force, announced United States Attorney Zane David Memeger. McIntyre was arrested today.
According to the indictment, McIntyre, a/k/a “King Kobra,” caused Internet advertisements to be created in which he advertised various females as available for purchase for purposes of prostitution. One of these females, whom McIntyre recruited, was under the age of 18. The advertisements featured pictures of the females, either scantily clad or partially nude, a description of each female, and a phone number to call to arrange a meeting with a female employed by McIntyre as a prostitute.
If convicted, the defendant faces a maximum possible sentence of life imprisonment, with a minimum mandatory of 15 years, a $750,000 fine, five years supervised release and a $300 special assessment.
McIntyre’s brother, Rashaad McIntyre, was charged in December 2012 with sex trafficking of minors and production of child pornography.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police Criminal Intelligence Center, and the Philadelphia First Judicial Court Warrant Unit. It is being prosecuted by Assistant United States Attorney Michelle Morgan. The defendant’s arrest is part of the FBI’s Operation Cross Country, a nationwide effort during July 2013 to apprehend sex traffickers and identify and rescue victims of human trafficking.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pharmaceutical Company Agrees to Pay $3.5 Million to Settle False Claims Act AllegationsRead the Press Release
SAN FRANCISCO - Mallinckrodt LLC, a pharmaceutical manufacturer, has agreed to pay $3.5 million to settle allegations that it made improper payments to physicians and, as a result, caused the submission of false claims to Medicare and Medicaid between January 2005 and June 2010, United States Attorney Melinda Haag announced.
The civil settlement resolves a lawsuit filed in the United States District Court for the Northern District of California in April 2008 by a former employee of Mallinckrodt. The action was filed under the qui tam provisions of the federal False Claims Act and several state False Claims Acts, which permit private citizens, called "relators," to bring lawsuits on behalf of the United States or a state or commonwealth and receive a portion of the proceeds of a settlement or judgment awarded against a defendant. The relator in this action will receive approximately $603,000 as his statutory share of the proceeds of this settlement.
The lawsuit alleged that, among other things, Mallinckrodt paid certain physician consultants for their participation in speaker programs, clinical trials, and meetings, or for the completion of certain forms, in order to induce them to write prescriptions for Mallinckrodt's drug products, namely Restoril, Magnacet, Tofranil-PM, and their generic equivalents. As a result of these payments, the suit alleged that Mallinckrodt caused the submission of tainted, false claims for payment to the Medicare and Medicaid programs.
"This settlement demonstrates this Office's commitment to protecting the integrity of the Medicare and Medicaid programs and ensuring that physicians are making care decisions without undue influence," said U.S. Attorney Haag.
The majority of the settlement funds, approximately $3.173 million, will be paid to the United States which not only funds the Medicare program, but also contributes to the various Medicaid programs around the country. The remainder of the funds will be split between eight states and commonwealths including, California, Maryland, Missouri, New York, Ohio, Rhode Island, Utah, and West Virginia.
AUSA Erica Blachman Hitchings handled the case with the assistance of Lucille Yee, Michael Zehr, Kathy Terry, and Jessica Meegan. The settlement is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General, U.S. Food and Drug Administration Office of Criminal Investigations, the Federal Bureau of Investigation, and the National Association of Medicaid Fraud Control Units.
Panasonic and Its Subsidiary Sanyo Agree to Plead Guilty <br /> in Separate Price-Fixing Conspiracies Involving Automotive Parts <br /> and Battery CellsRead the Press Release
Panasonic Corp. and its subsidiary, SANYO Electric Co. Ltd., have agreed to plead guilty and to pay a total of $56.5 million in criminal fines for their roles in separate price-fixing conspiracies involving automotive parts and battery cells, the Department of Justice announced today. LG Chem Ltd., a leading manufacturer of secondary batteries, has agreed to plead guilty and to pay a $1.056 million criminal fine for price fixing involving battery cells.
Osaka, Japan-based Panasonic agreed to pay a $45.8 million criminal fine for its role in the automotive parts conspiracy. SANYO agreed to pay a $10.731 million criminal fine for its role in the battery cells conspiracy. The guilty pleas against SANYO and LG Chem are the first in the department’s ongoing investigation into anticompetitive conduct in the cylindrical lithium ion battery cell industry.
The three-count felony charge against Panasonic was filed in U.S. District Court for the Eastern District of Michigan. Separate one-count felony charges were filed against SANYO and LG Chem in U.S. District Court for the Northern District of California. As part of the plea agreements, which are subject to court approval, the charged companies have agreed to cooperate in the department’s ongoing antitrust investigations.
Panasonic has agreed to plead guilty for its role in a conspiracy to fix prices of switches, steering angle sensors and automotive high intensity discharge (HID) ballasts installed in cars sold in the United States and elsewhere. SANYO and LG Chem Ltd. have agreed to plead guilty for their roles in a conspiracy to fix the prices of cylindrical lithium ion battery cells sold worldwide for use in notebook computer battery packs.
“Panasonic is charged with participating in separate price-fixing conspiracies affecting numerous parts used in cars made and sold in the United States while its subsidiary was also fixing prices on battery cells used by consumers of notebook computers,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Pleading guilty and cooperating with the division’s ongoing investigations is a necessary step in changing a corporate culture that turned customers into price-fixing victims.”
According to the first count of a three-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Panasonic participated in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of steering wheel switches, turn switches, wiper switches, combination switches and door courtesy switches sold to Toyota Motor Corp. and Toyota Motor Engineering & Manufacturing North America Inc. in the United States and elsewhere. According to the court document, Panasonic and its co-conspirators carried out the conspiracy from at least as early as September 2003 until at least February 2010.
The second count charges that Panasonic, during this same time period, participated in a conspiracy to rig bids for, and to fix, stabilize, and maintain the prices of steering angle sensors sold to Toyota in the United States and elsewhere. The department said that Panasonic and its co-conspirators agreed, during meetings and conversations, to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize, and maintain the prices of steering angle sensors sold to Toyota Motor Corp. and Toyota Motor Engineering & Manufacturing North America Inc. in the United States and elsewhere.
According to the third count of the charge, from at least as early as July 1998 and continuing until at least February 2010, Panasonic and its co-conspirators participated in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing, during meetings and conversations, to rig bids for, and to fix, stabilize, and maintain the prices of automotive HID ballasts sold to Honda Motor Co. Ltd. and American Honda Motor Co. Inc., Mazda Motor Corp. and Mazda Motor of America Inc., and Nissan Motor Co. Ltd. and Nissan North America Inc. in the United States and elsewhere.
I ncluding Panasonic, 11 companies and 15 executives have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $874 million in criminal fines as a result of the auto parts investigation. Additionally, 12 of the individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. The three additional executives have agreed to serve time in prison and are currently awaiting sentencing.
“The FBI remains committed to protecting American consumers and businesses from corporate corruption. The conduct of Panasonic, SANYO, and LG Chem resulted in inflated production costs for notebook computers and cars purchased by U.S. consumers,” said Joseph S. Campbell, FBI Criminal Investigative Division Deputy Assistant Director. “These investigations illustrate our efforts to ensure market fairness for U.S. businesses by bringing corporations to justice when their commercial activity violates antitrust laws.”
According to the one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, SANYO and LG Chem engaged in a conspiracy to fix the price of the cylindrical lithium ion battery cells used in notebook computer battery packs from about April 2007 until about September 2008. Cylindrical lithium ion battery cells are rechargeable batteries that are often incorporated in groups into more powerful battery packs commonly used to power electronic devices.
According to the charges, SANYO, LG Chem and their co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and conversations to price cylindrical lithium ion battery cells for use in notebook computer battery packs to customers at predetermined levels and issuing price quotations to customers in accordance with those agreements. The department also said that SANYO, LG Chem and their co-conspirators collected and exchanged information for the purpose of monitoring and enforcing adherence to the agreed-upon prices and took steps to conceal the conspiracy.
Panasonic, SANYO and LG Chem are each charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine for the company may be increased to twice the gain derived from the crime or twice the loss suffered by the victims, if either of those amounts is greater than the statutory maximum fine.
Today’s charges arose from an ongoing investigation in the cylindrical lithium ion battery cells industry being conducted by the Antitrust Division’s San Francisco Office and the FBI in San Francisco as well as an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s automotive parts charges were brought by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323. Anyone with information concerning illegal or anticompetitive conduct in the battery industry is urged to call the Antitrust Division’s San Francisco Office at 415-436-6660 or visit www.justice.gov/atr/contact/newcase.htm.Owner of el jimador mexican restaurant sentenced for harboring an illegal alienRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that J. Guadalupe Hernandez, 29, of Farmington, N.Y., who was convicted of harboring an illegal alien, was sentenced three years probation, a $5,000 fine and a forfeiture of $20,000 by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that an investigation by the Immigration and Customs Enforcement discovered illegal aliens working at the defendant's business, El Jimador Mexican Restaurant. During the execution of a search warrant, special agents found three Mexican nationals living in the basement of the restaurant. Hernandez hired the aliens knowing that they were not authorized to work in the United States. The defendant paid the individuals in cash "under the table" and allowed them to live in the basement of the restaurant.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Owner of Los Angeles-area DME Company Pleads Guilty to<br /> Conspiring to Defraud Medicare and Medi-CalRead the Press Release
The owner of a Los Angeles-area durable medical equipment (DME) supply company has pleaded guilty to conspiring to defraud Medicare and Medi-Cal of more than $650,000.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Special Agent in Charge Glenn R. Ferry for the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Assistant Director in Charge Steven Martinez of the FBI’s Los Angeles Field Office; and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse, made the announcement.
Kim Ricks, of Moreno Valley, Calif., pleaded guilty on July 17, 2013, before U.S. District Judge Fernando M. Olguin in the Central District of California to one count of conspiracy to commit health care fraud.
In court, Ricks admitted that she owned and operated Kim’s Medical Supplies (“KMS”), a DME company that was located in Moreno Valley. Ricks enrolled KMS in both Medicare and Medi-Cal, which allowed her to submit claims to both programs. Ricks admitted that between approximately December 2005 and September 2012, she submitted claims to Medicare and Medi-Cal for power wheelchairs (PWCs) and other DME on behalf of people who did not have a legitimate medical need for the equipment, a practice that, Ricks admitted in court, she knew violated Medicare and Medi-Cal rules and regulations.
Ricks also admitted that she submitted claims to Medicare and Medi-Cal for PWCs and other DME that neither she nor her co-conspirators delivered to KMS’s customers, which Ricks knew violated the rules and regulations of both Medicare and Medi-Cal. In some cases, Ricks obtained the Medicare billing and personal information of individuals and, without their knowledge, used that information to submit claims to Medicare and Medi-Cal for PWCs and other DME that neither she nor her co-conspirators provided to the individuals. Ricks admitted that she submitted these types of claims to Medicare and Medi-Cal because she needed the money to keep KMS viable. Ricks also admitted that she submitted claims to Medicare and Medi-Cal for power wheelchairs and DME that she knew were supported by fraudulent prescriptions forged by her co-conspirators.
Ricks admitted that she was responsible for the claims that KMS submitted to Medicare and Medi-Cal, although, at times, her co-conspirators used her Medicare and Medi-Cal provider numbers to submit false and fraudulent claims to both programs. As a result of this conspiracy, Ricks admitted that she and her co-conspirators submitted and caused the submission of approximately $643,468 in fraudulent Medicare claims and received approximately $236,882 in ill-gotten reimbursement payments. Ricks admitted further that she and her co-conspirators submitted and caused the submission of approximately $11,849 in fraudulent Medi-Cal claims and received approximately $8,660 in ill-gotten reimbursement payments.
At sentencing, scheduled for Oct. 24, 2013, Ricks faces a maximum penalty of 10 years in prison.
The case is being prosecuted by Trial Attorney Jonathan T. Baum of the Criminal Division’s Fraud Section. The case is being investigated by the HHS-OIG and the California Department of Justice.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Ohio Man Sentenced to 21 Months in Prison for Failing to Register as A Sex OffenderRead the Press Release
PITTSBURGH - A resident of Steubenville, Ohio, has pled guilty to a charge of failure to register as a sex offender, and has been sentenced in federal court to 21 months imprisonment, to be followed by 20 years of supervised release, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Boyd Dale Stacey, 54.
According to information presented to the court, between on or about Nov. 4, 2011, and in or around January, 2012, Stacey failed to register as a Sex Offender, as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the successful prosecution of Stacey.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Norwalk Resident Sentenced to 30 Months in Federal Prison for Trafficking NarcoticsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE MENDEZ-LUNA, 31, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 30 months of imprisonment and a three year term of supervised release for trafficking narcotics.
According to court documents and statements made in court, on March 27, 2012, New York Police Department officers conducting a narcotics trafficking investigation contacted the Drug Enforcement Administration in Bridgeport with information that individuals operating out of 18-20 Taylor Avenue and 20 Woodbury Avenue in Norwalk had just received a multiple-kilogram shipment of cocaine. Based upon this information, on the morning of March 28, members of the DEA Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department’s Special Services Division executed a court-authorized search of 20 Woodbury Avenue and encountered MENDEZ-LUNA, Hector Valle and others. In a bedroom that MENDEZ-LUNA had been using, officers located a 9-millimeter firearm, a magazine with four rounds of ammunition, approximately 262 grams of cocaine, two digital scales, narcotics packaging materials and nine cell phones. A search of Valle’s bedroom revealed quantities of cocaine and heroin, drug ledgers and approximately $8,000 in cash. Approximately one ounce of heroin was also recovered from the kitchen of the residence.
A subsequent court-authorized search of 18-20 Taylor Avenue yielded approximately five kilograms of heroin, 10 pounds of Methamphetamine, $279,000 in cash, one handgun, ammunition and narcotics packaging materials.
MENDEZ-LUNA, a citizen of Venezuela, has been detained since his arrest on March 28, 2012. On April 17, 2013, he pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
Valle also has pleaded guilty and awaits sentencing.This matter was investigated by Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which is composed of members of the Bridgeport, Milford, Norwalk, Stamford, Stratford and Westport Police Departments. The investigation was significantly assisted by the Norwalk Police Department’s Special Services Division and the New York Police Department.
This case is being prosecuted by Assistant United States Attorney Sarah Karwan.
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ALEXANDRIA, Va. – Stacey Lorenzo Reed, 44, of Manassas, Va., was sentenced today to 270 months in prison, followed by three years of supervised release, for conspiracy to commit robbery and aiding and abetting the discharge of a firearm during or in relation to a crime of violence.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Lieutenant Colonel Edwin C. Roessler Jr., Acting Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Anthony J. Trenga.“Nothing can bring back the life that was taken during this horrific crime, but today’s sentence sends a clear message that there are severe consequences for all those who conspire to commit crimes,” said U.S. Attorney Neil H. MacBride. “Mr. Reed, while not physically present at the murder, put this tragic and terrifying sequence of events in motion. He will now have over 20 years in federal prison to contemplate his greed fueled involvement in the crime.”
Reed previously pleaded guilty on April 18, 2013. According to court documents, Reed obtained information that a business owner, “D.B.,” kept substantial proceeds of his check cashing business at his home in Centreville, Virginia. Armed with this “inside information,” Reed took coconspirator, Tasheik Ashanti Champean, to D.B.’s home to surveil the property for a future robbery. On May 17, 2010, Reed drove Champean and Reynard Lazaro Prather, an individual Champean had recruited for the robbery, to Centreville and dropped off the two coconspirators in a wooded area near D.B.’s home. Prather and Champean – both armed with semi-automatic pistols – entered D.B.’s garage to await his arrival. When D.B.’s son and an employee, Jose Cardona, arrived at the residence, they were confronted by Prather and Champean. During the struggle, Cardona was shot and killed by one of the two men. Following Cardona’s murder, Prather and Champean fled the area. Eventually, Prather and Champean met up with Reed and Reed drove Prather and Champean out of Virginia and back to Maryland.
Champean and Prather, both of whom pleaded guilty, were both previously sentenced to 360 months in prison for their role in the offense.
This case was investigated by the Fairfax County Police Department’s Homicide Unit. Assistant United States Attorneys Michael E. Rich and Zachary Terwilliger prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Niskayuna Man Sentenced for Receiving Child PornographyRead the Press Release
Defendant Who Received Thousands of Still Images and Videos of Child Pornography Sentenced to 96 Months in Prison
ALBANY, NEW YORK — RONALD J. LOVETT, age 67, of Niskayuna, New York, was sentenced today by United States District Court Judge Mae A. D’Agostino, in Albany to ninety-six (96) months of imprisonment for receiving child pornography images, announced United States Attorney Richard S. Hartunian and Matthew Scarpino, Resident Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations. LOVETT, who had entered a guilty plea on March 20, 2013, was also ordered to pay a fine of $17,500.00, to pay restitution totaling $5,661.83, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between May 2007 and February 10, 2012, LOVETT used the Internet to access various child pornography websites and various file sharing networks. While accessing some of the child pornography websites or file sharing networks, LOVETT downloaded multiple still images and videos of child pornography onto his home computer, thumb drives, and external hard drives.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
New Jersey Pharmacist Pleads Guilty in Scheme to Illegally Distribute Pharmaceutical DrugsRead the Press Release
TRENTON, N.J. – Randy Binder, a pharmacist and the former proprietor of Texas Road Pharmacy in Manalapan, N.J., admitted today that he conspired to illegally distribute oxycodone to people without a legitimate need for the drug, U.S. Attorney Paul J. Fishman announced.
Binder, 60, of Matawan, N.J., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute oxycodone.
According to documents filed in the case and statements made in court:
Binder admitted that he participated in a conspiracy to distribute oxycodone for no legitimate medical purpose and beyond the bounds of medical practice between January 2009 and June 2012.
Oxycodone, the active ingredient in brand name pills such as OxyContin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Users will often crush and snort the pills or dissolve and inject them to get an immediate high. This abuse can lead to addiction, overdose and death.
Binder would meet fellow conspirators in the parking lot of Texas Road Pharmacy to provide them with pills, or would leave the pills in a car in the parking lot, which conspirators would then pick up. Binder would also accept prescriptions which he knew to be invalid.
The charge to which Binder pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is currently scheduled for Oct. 24, 2013.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Jonathan Romankow of the U.S. Attorney’s Office Criminal Division and Tino Lisella, Trial Attorney with the Department of Justice, Tax Division. 13-297
Defense counsel: Steven Altman Esq., New Brunswick, N.J.Binder, Randy Information
Mesquite Man Sentenced to 188 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Jeremy Blackburn, 33, was sentenced today by U.S. District Judge Jane J. Boyle to 188 months in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Blackburn has been in custody since he entered that guilty plea in March 2013.
According to documents filed in the case, an undercover operation to identify persons who participate in the distribution of child pornography and the sexual exploitation of children through the use of peer-to-peer file sharing networks resulted in the identification of Blackburn. A search warrant was executed at his residence in Mesquite, Texas, in July 2012, and computer equipment was seized. There were more than 600 images and videos of child pornography available to share on his file-sharing program.
Blackburn admitted than in February 2012, he used the Internet and file-sharing software to share and transmit image and video files depicting minors engaged in sexually explicit conduct. He admitted that he preferred younger girls but not babies, and he admitted to downloading child pornography just 30 minutes prior to the execution of the search warrant. He also admitted that he sought, received and possessed images and videos that included bondage and other sadistic acts involving minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
Men Sentenced in Federal Court for Role in Arson for Profit SchemesRead the Press Release
James L. Santelle, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 15, 2013, Mathew Lemberger (age: 33) was sentenced to 120 months imprisonment by United States District Judge William C. Griesbach. Lemberger had previously pled guilty to two counts of arson of a building. According to the plea agreement and other documents filed in court, Lemberger admitted collaborating with Thomas Wank (age: 55), James Kannenberg (age: 65) and Adam Jaehnig (age: 36) to intentionally burn his business property in December 2010 for purposes of later collecting insurance proceeds for the loss. Lemberger also admitted that he and Kannenberg also burned Lemberger’s residence in March 2009 to collect the insurance proceeds.
Judge Griesbach previously sentenced Wank on April 22, 2013, and Kannenberg on May 14, 2013 to 36 month terms of imprisonment following their guilty plea to the December 2010 arson to the building containing Lemberger’s business equipment. Jaehnig was sentenced on June 24, 2013 to 12 month’s imprisonment based on his guilty plea to making a false statement to law enforcement in connection to that arson.
In addition to the above terms of imprisonment, Lemberger, Wank, Kannenberg, and Jaehnig were ordered to serve three years of supervised release. As conditions of that release, they were ordered to pay restitution for the insurance payout for the December 2010 arson totaling $328,145. Lemberger was also ordered to pay restitution to the insurance company for the money fraudulently received resulting from the March 2009 residence fire totaling $451,263.
In sentencing the defendants, Judge Griesbach noted the seriousness of arson offenses, specifically, the often life-threatening danger that such offenses creates for firefighters and potentially other citizens. He added that buildings and property are needlessly destroyed resulting in significant monetary losses to insurance companies and fraudulently obtained cash windfalls for arsonists. The sentences imposed served in part to deter other individuals contemplating arson for profit schemes.
The case was investigated by special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wisconsin Department of Justice-Division of Criminal Investigation, and detectives from the Brown County Sheriff’s Office and the Washington County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William J. Roach.
Members of Crack Cocaine Distribution Ring Sent to Federal PrisonRead the Press Release
McALLEN, Texas – Alfredo Barrientos, 30, of Rio Grande City, and Mexican National Esteban Trevino, 39, have been ordered to prison following their convictions in relation to a crack cocaine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. The two men pleaded guilty on March 4, 2013.
Today, U.S. District Judge Micaela Alvarez handed Barrientos and Trevino federal prison sentences of 85 and 30 months, respectively, for possessing with the intent to distribute crack cocaine. Barrientos also received a three-year-term of supervised release. Not a U.S. citizen, Trevino is expected to face deportation proceedings following completion of his prison term.
In August 2011, agents of the Drug Enforcement Administration (DEA) with assistance from the Rio Grande City Police Department launched an investigation into a crack cocaine distribution network in Rio Grande City. Following an investigation that included 20 drug transactions involving informants and undercover agents that resulted in the seizure of more than 180 grams of crack cocaine, a federal grand jury indicted 11 Rio Grande City residents including the defendants on Nov. 13, 2012. The investigation revealed the crack cocaine distribution network relied upon the use of at least four residential homes in Rio Grande City where drug buyers could purchase crack cocaine around the clock.
The evidence presented during the hearing today showed Barrientos assisted his brother, Emmanuel Barrientos, in the crack distribution ring that included Juan Trevino and Esteban Trevino. The group sold large quantities of crack from two adjacent residences in Rio Grande City. In handing down these sentences, Judge Alvarez noted the harm the defendants had inflicted upon their community and strongly admonished them for dealing drugs from their residences in the midst of their families including small children.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The remaining nine defendants ensnared in the year-long investigation have been convicted. On May 21, 2013, Judge Alvarez sentenced Emmanuel Barrientos, 33, to 168 months in federal prison, Juan Trevino, 38, to 82 months of confinement, while Jose Huerta, 29, and Eliza Escobar, 30, each received sentences of 12 months imprisonment.
Nancy Cantu, 32, was sentenced to 48 months in federal prison by Chief U.S. District Judge Ricardo H. Hinojosa, while Melissa Wolf, 48, received 33 months of incarceration. Luciano Lopez III, 46, and Nancy Clarke, 39, await sentencing before Judge Hinojosa on Aug. 16, 2013, at 9:30 a.m. Israel Pena is scheduled for sentencing on Sept. 27, 2013, at 9:30 a.m.
This case was investigated by the DEA and the Rio Grande City Police Department and is being prosecuted by Assistant United States Attorneys Grady J. Leupold and Jason Honeycutt.
Marysville Man Receives 25-year Sentence for Coercing A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Justin Stewart Mote, 33, of Marysville was sentenced in U.S. District Court to 300 months in prison for coercing or enticing a minor to engage in illegal sexual activity. Mote will also be under court supervision for the rest of his life.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC) and William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.
Mote pleaded guilty on February 21, 2013 to one count of using the internet to coerce or entice a minor to engage in unlawful sexual activity. According to testimony presented during the plea hearing, Mote met a 12-year old online and went to Connecticut and Pennsylvania to visit the minor in 2012. Franklin County ICAC investigators received information from a Newtown, Connecticut police officer on October 16, 2012 after the child’s father found letters, text messages and gifts from Mote. Investigators executed a search warrant at Mote’s residence on October 19 and found fully nude photographs of the victim on various media devices including a tablet computer belonging to Mote.
“Sexual predators present a grave danger to the community,” U.S. Attorney Stewart said. “Few crimes damage our society more than crimes of child exploitation.”
Mote, who was under indictment on state charges of attempted unlawful sexual contact with a minor and importuning in connection with a separate incident, that occurred in August 2011, was arrested. He has been in custody since his arrest.
“A substantial prison sentence like the one handed down today should serve as a stark reminder of what awaits those who sexually exploit children,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. HSI will continue to aggressively target those who prey upon and sexually exploit our children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Judge Sargus also ordered Mote to undergo a sexual offender treatment program offered by the U.S. Bureau of Prisons. Mote will also be required to register as a sex offender for the rest of his life anywhere that he lives, works or goes to school.
U.S. Attorney Stewart commended the investigation by HSI agents and ICAC task force officers, as well as Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
Louisiana Stolen Identity Tax Refund Fraud Defendant Sentenced to Federal PrisonRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Angela Myers, a resident of Baton Rouge, La., was sentenced today in the Middle District of Louisiana to 132 months in federal prison for wire fraud, making false claims, subscribing to false tax returns and aggravated identity theft.
Based on the evidence presented during a four-day trial in March 2013, Myers operated “Angie’s Tax Service,” a tax preparation business located in Baton Rouge Myers electronically filed false claims for tax refunds using the names and Social Security numbers of identity theft victims. Myers filed the identity theft tax returns using a unique preparer identification number assigned to her daughter. Many of the victims were nursing home patients who resided at Port Allen Care Center in Port Allen, La., and who did not have the ability to leave the nursing home.
The evidence also revealed that Myers lied on her own 2007 and 2008 federal income tax returns, failing to report hundreds of thousands of dollars of tax preparation fees that she earned at Angie’s Tax Service and used to buy various items, including an RV and a $50,000 investment product.
“This thief victimized vulnerable nursing home patients and stole from all honest taxpayers,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The severe prison sentence handed down today demonstrates that such crimes will not be tolerated.”
“We are very pleased with the sentencing of Angela Myers, many of whose victims were residents of a nursing home,” said Richard Weber, Chief of IRS-Criminal Investigation. “The IRS aggressively pursues those that use stolen social security numbers to file false tax returns. This sentence should serve as a reminder that there is a price to pay for scamming innocent people and defrauding the government. Many taxpayers put their trust in return preparers and when that trust is violated, the taxpayers and the tax system suffer.”
In addition to the prison sentence, the court ordered Myers to pay $202,685 in restitution to the IRS in addition to $39,030 that was already forfeited in this case.
Assistant Attorney General Keneally commended the efforts of special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Justin Gelfand and Jason Poole, who prosecuted the case.
Logan County Man Sentenced to 25 Years in Prison for Secretly Video Recording Young Children in His House and Swapping Images for Child PornRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Mickell E. Close, 32, of Quincy, Ohio was sentenced in U.S. District Court to 300 months in prison for recording nude images of three young children in his house and exchanging them on the Internet for images of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, Franklin County Sheriff Zach Scott who heads the Franklin County Internet Crimes Against Children (ICAC) Task Force, and Logan County Sheriff Andrew J. Smith announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr.
Close pleaded guilty on January 17, 2013 to one count of using minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. According to a statement read by an HSI agent during the plea hearing, law enforcement officials patrolling the internet in June 2012 identified an email account connected to sharing child pornography. Investigators traced the account to Close.
Further investigation found that Close had placed cameras in his house to surreptitiously record video of three minor females as young as three years old as they were nude in the bathroom. He created hundreds of videos and thousands of still images of the victims and posted and traded the photos and videos by email and the internet in exchange for images and videos of child pornography.
“Once images of exploitation are on the internet, they never go away,” U.S. Attorney Stewart said. “This adds to the indignity and humiliation the victims are already facing.”
“The defendant’s actions in this case involve his ongoing abuse of the trust that was placed in him by three pre-pubescent girls and their families,” Assistant U.S. Attorney Heather Hill wrote in a memorandum filed with the court prior to sentencing. “This devastating invasion of the privacy of young girls was further exacerbated by the defendant’s trading of the images and videos he had created to others who shared his perverted interests.”
Logan County Sheriff’s deputies working with HSI arrested Close on November 9. He has been in custody since his arrest.
“Today's sentencing is another step toward healing for the victims of the depraved acts perpetrated by the defendant in this case,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. “While we cannot restore the innocence stolen from the young victims in cases like these, we will continue to make the aggressive pursuit of their predators among our highest priorities.”
“Individuals who represent the worst of the worst are the reasons why we do what we do,” Franklin County Sheriff Scott said. “Close’s sentence can prevent other children from horrific and unimaginable abuse. It's because of the cooperative effort between all of the agencies that make up the Franklin County Internet Crimes Against Children Task Force and HSI, that predators are identified and brought to justice.”
Close was also ordered to forfeit all computer equipment and visual depictions of the child pornography that were seized from him at the time of the execution of the search warrant in this case. Close will be under court supervision for 20 years after he completes his prison term. U.S. Probation Office to install monitoring software on any computer he owns, uses or has access to during his period of supervised release. He will also be required to register as a sex offender anywhere he lives, works or goes to school.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Local Real Estate Business Owner Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - RICHARD SADDLER owned Omicron Capital LLC, a company in the business of assisting customers in refinancing commercial and real estate loans.
According to the indictment, between January 1, 2010 and March 31, 2012, Saddler accepted roughly $250,000 from at least five customers and said that the money would be used for down payments or appraisals. Instead, Saddler actually used the money to pay the mortgage on his home, which was in danger of foreclosure, as well as airline tickets, meals and other personal expenses.
Saddler, St. Louis County, was indicted by a federal grand jury on three felony counts of wire fraud.
If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Local Physician, Clinic and Nurse Practitioner Indicted on Health Care Fraud ChargesRead the Press Release
St. Louis, MO – DR. MEL LUCAS, PATTERSON MEDICAL CLINIC, INC. and nurse practitioner, ROBYN LEVY, were indicted on multiple health care fraud related charges for their alleged false billing for services never rendered and false statements in patients’ medical records.
According to the indictment, from June 2008 to June 2011, the Patterson Medical Clinic Inc. and osteopath Mel E. Lucas billed Medicare, Tricare and private insurers for more X-rays than were actually taken. The clinic had X-ray equipment in-house. The indictment also alleges that from 2008 to 2011, the clinic and Dr. Lucas billed for Lucas' services on 573 occasions when he was actually out of town or in Cabo San Lucas, Mexico.
The indictment states that insurers were also billed for Lucas' services on Fridays, when he did not come into the clinic. Instead the patients were seen by medical assistants, who took their vital signs and drew their blood or gave them an injection. Lucas reviewed the records when he returned and billed insurers as if he had actually examined the patients.
Finally, the indictment alleges that Patterson, Lucas and nurse practitioner Robyn Levy also billed insurers for an FDA-approved drug when Lucas had actually bought a non-approved version in Canada for hundreds of dollars less. The patients were not told they were receiving a drug that was not FDA-approved.
Lucas, Florissant, MO; and Patterson Medical Clinic, Inc. were indicted by a federal grand jury on eight felony counts of health care fraud and seven felony counts of false statements related to health service. Levy was indicted on two felony counts of health care fraud and three felony counts of false statements related to health service.
If convicted, each count of health care fraud carries a maximum penalty of ten years in prison and/or fines up to $250,000 and each count of making false statements carries a maximum of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.Additionally, upon a finding of guilt, the defendants will be subject to forfeiture, which will require them to forfeit to the government all money derived from their illegal activity.
This case was investigated by the Department of Health and Human Services-Office of Inspector General and the FBI. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Loan Modification Scam Resulting in Foreclosed Homes and over One Million Dollars in Losses Sends San Diego Man to 57 Months in PrisonRead the Press Release
United States Attorney Laura E. Duffy announced that Jose Ruiz of San Diego was sentenced today to 57 months of custody by District Court Judge William Q. Hayes for crimes arising from a mortgage loan-modification scheme that cheated 289 families out of over $1.1 million, and resulted in the loss of many victims’ homes to foreclosure. Ruiz was also ordered to pay full restitution to all of his victims.
Between approximately March 2009 and October 2011, Ruiz falsely told victims facing foreclosure that he could lower their mortgage loan payments. Ruiz made these false claims through his business entities based in San Diego and Chula Vista, California, including: “Equity Choice,” “Casa Nuestra,” and “UHUD National Reserve.” Ruiz pleaded guilty on August 2, 2012 to one count of mail fraud (18 U.S.C. § 1341), and one count of money laundering (18 U.S.C. § 1357).
In order to carry out his fraud, Ruiz sent hundreds of solicitation letters in which he falsely represented that his businesses were affiliated with the U.S. Department of Housing and Urban Development (“HUD”), and its Home Affordable Modification Program (“HAMP”). The letters directed the recipients to contact one of Ruiz’s business entities by telephone, or obtain information from one of the websites he had created to advertise his services. Ruiz specifically targeted low-income persons with Hispanic surnames by obtaining marketing leads with these specific criteria.
When the victims responded to the solicitation letters, Ruiz or one of his employees promised to provide relief under the HAMP program, despite having no connection with this government program. Ruiz and his employees then falsely represented that they would negotiate a modified mortgage payment on behalf of the victims with the victims’ respective lenders. In exchange, the victims were instructed to send mortgage payments directly to one of Ruiz’s business entities instead of their lenders.
Although Ruiz and his employees promised the victims that their payments would be held untouched in an impound account, and ultimately sent to the victims’ lenders at the end of negotiations, none of the money was forwarded. Many of his victims lost their homes to foreclosure as a result of the lenders’ failure to receive mortgage payments.
Rather than maintaining the victims’ funds, Ruiz spent the proceeds on a variety of luxury furnishings and personal items, including a diamond ring, computers, and a large-screen television. All of these items were seized by the United States and forfeited as part of Ruiz’s sentence. The items will be sold at auction, with proceeds going to the victims. Additionally, Ruiz was ordered to pay $1,122,031 in restitution to the victims.
Ruiz’s scheme was discovered after Special Agents from the United States Postal Inspection Service of the Downtown San Diego Station received over 750 undeliverable solicitation letters in April 2011 sent by Ruiz and his associates. The solicitation letters appeared to offer loan modification services and a free consultation regarding HAMP, or another HUD home-loan restructure program. Because the letters bore non-existent or incorrect return addresses, Postal Inspection agents began investigating the legitimacy of the offered services. In conjunction with the HUD Office of the Inspector General, agents interviewed hundreds of victims, conducted various searches, and seized property purchased with proceeds obtained pursuant to Ruiz’s fraudulent scheme.
On May 20, 2013, Judge Hayes sentenced Christian Hidalgo (Case Number: 12CR1658-WQH), a former associate of Ruiz, to 57 months of custody and ordered he pay restitution of over $687,000, for perpetrating the identical scam on over 120 additional victims. Judge Hayes also ordered Hidalgo forfeit various items he purchased from fraud proceeds, including a BMW, diamond rings, a large-screen television, and firearms.
United States Attorney Duffy added, “Although we are pleased with the successful investigation by the U.S. Postal Inspection Service and HUD-OIG, the swift prosecution, and the fruitful seizure of many valuable items purchased with the fraud proceeds, we are dismayed by the continued suffering of many innocent victims who have suffered the loss of their home and significant funds as a result of this repugnant scam. The victims suffered financially and emotionally from the defendant’s exploitation of their belief they were obtaining necessary relief from a government agency. They were targeted both because of their financial predicament and their Hispanic surnames. We will continue to seek redress for all victims of home-loan modification scams and hope that the defendant’s punishment serves as a strong deterrent to others who are committing, or plan to commit, similar crimes.”
DEFENDANT Case Number: 12CR1657-WQH Jose Ruiz SUMMARY OF CHARGESCount 5 Title 18, United States Code, Section 1341, 2 (mail fraud, aiding and abetting)
Maximum penalty: 20 years of custody; $1,000,000 FineCounts 10 Title 18, United States Code, Section 1957 (money laundering)
AGENCIES
Maximum penalty: 10 years of custody; $250,000 FineUnited States Postal Inspection Service (“USPIS”)
United States Department of Housing and Urban Development, Office of the Inspector General (“HUDOIG”)An indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Lewiston man pleads guilty to Marijuana conspiracyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Kevin C. Farrell, 30, of Lewiston, N.Y., pleaded guilty to conspiring to possess and distribute over 50 kilograms of marijuana before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000, or both. The defendant will also forfeit $100,000 in cash or property.
Assistant U.S. Attorney Robert C. Moscati, who is handling the case, stated that between 2002 and April 2010, Farrell conspired with David Davis to purchase 1/2 lb and 1 lb quantities of marijuana from Davis. The defendant then redistributed the marijuana in smaller quantities to a number of customers in Niagara County. Similar charges against David Davis are pending.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero; the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division; the New York State Police, under the direction of Major Michael Cerretto; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Niagara County Sheriff's Department, under the direction of Sheriff James Votour; the United States Border Patrol, under the direction of Chief Border Patrol Agent Kevin W. Oaks; Customs and Border Protection, under the direction of James Engleman, Director of Field Operations; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Frank Christiano; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in-Charge Edward T. Bradley; Toronto Police Services, under the direction of Chief William Blair; Niagara Regional Police, under the direction of Chief Jeffrey McGuire; Peel Regional Police, under the direction of Chief Jennifer Evans; Ontario Provincial Police, under the direction of Commissioner Chris Lewis; and the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General.
Sentencing is scheduled for January 13, 2014 at 2:00 p.m. before Judge Arcara.Jury Verdict: Greenwood County Man Guilty of Unlawful Possession of Explosive MaterialsRead the Press Release
WICHITA, KAN. – A Greenwood County man has been found guilty by a federal jury of unlawful possession of explosive materials, U.S. Attorney Barry Grissom said today.
Alfred C. Dutton, 67, Eureka, Kan., was convicted on one count of possession of an unregistered destructive device. During trial, prosecutors presented evidence that on Aug. 23, 2011, in Greenwood County, Kan., Dutton possessed grenade bodies and other parts for use in constructing a destructive device.
Sentencing will be set for a later time. Dutton faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greenwood County Sheriff’s Department, the Greenwood County Fire Department, the Wichita Police Department Bomb Squad, the Kansas State Fire Marshal’s Office, the Greenwood County Attorney’s Office, and Assistant U.S. Attorney Alan Metzger for their work on the case. The ATF had Special Agents, Special Agent/Certified Explosives Specialists, Explosives Enforcement Officers, Forensics Chemists and National Firearms Act personnel participate in the investigation.
July Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 24 indictments charging 32 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jacqueline Alba, age 31, of Omaha, is charged with possession with intent to distribute 50 grams or more of actual methamphetamine on or about November 2, 2012. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Dominic D. Alicea, age 36, of Bellevue, is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on or about April 16, 2013. The maximum possible penalty is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Justin T. Boe, age 26, is charged with being a felon in possession of a firearm on or about May 21, 2013. The maximum possible penalty is imprisonment of 10 years, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Lee Cary, age 34, of Omaha, is charged with possession and possession with intent to distribute gamma-butyrolactone, also known as “GBL”, a controlled substance analogue. The maximum possible penalty is imprisonment of 20 years, a $1 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Jesus Gomez, age 31, Marcial Corona, age 21, Daniel Alberto, also known as Daniel Padilla-Rodriguez, age 19, Rachel Galvan, age 28, and Alexander Studer, age 26, are charged in a two count indictment. Count I alleges that beginning on an unknown date, but at least as early as November 1, 2012, and continuing to on or about March 9, 2013, the defendants conspired together and with others to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II alleges that on or about, March 8, 2013, the defendants possessed with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Salvador Gonzalez-Luna, age 47, is charged with illegal reentry into the United States on or about June 23, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted includes imprisonment of 20 years, a fine of $250,000, followed by 3 years of supervised release and a $100 special assessment.
* Zenon Gutierrez-Reyes, age 28, is charged with illegal reentry into the United States on or about July 2, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Francisco Mateo Juan, age 43, of Madison, Nebraska, is charged with illegal reentry into the United States on or about May 23, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Paul Brooks Leetch, age 35, is charged with being a felon in possession of a firearm on or about June 6, 2013. The maximum possible penalty is imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release, and a special assessment of $100.
* Yohan Noe Lopez-Acosta, age 27, Edgar Herberto Rodriguez-Morales, age 37, Juan Carlos Vargas-Garcia, age 35, all of Omaha, and Carlos Armando Corona-Sanchez, age 26, of Downey, California, are charged in a four count indictment. Count I alleges that beginning on or about November 27, 2012, and continuing to on or about July 16, 2013, the defendants conspired together and with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II alleges that on or about July 15, 2013, Yohan Noe Lopez-Acosta possessed with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count III alleges that on or about July 16, 2013, Edgar Herberto Rodriguez-Morales possessed with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count IV alleges that on or about July 16, 2013, Juan Carlos Vargas-Garcia possessed with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges $17,400.00 in United States currency seized on July 16, 2013, should be forfeited to the United States.
* Jennifer Lovings, age 36, is charged in a five count indictment. Count I alleges that beginning on an unknown date, but at least as early as November 1, 2012, and continuing to on or about March 9, 2013, the defendant conspired with others to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Counts II, III, and IV allege that on or about January 30, February 5, and February 20, 2013, the defendant distributed 5 grams or more of actual methamphetamine. The maximum possible penalty for each count is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release, and a $100 special assessment. Count V alleges that on or about March 8, 2013, the defendant possessed with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Alejandro Nieves-Osorio, age 31, of Omaha, is charged with illegal reentry into the United States on or about July 12, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Hugo Ortega-Romero, age 35, of Omaha, is charged with illegal reentry into the United States on or about April 29, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Michael Peitzmeier, age 48, of Fremont, is charged in a two count indictment. Count I alleges that from on or about October 18, 2011, through and including to on or about June 10, 2013, the defendant converted to his own use funds or property having a value in excess of $1,000, which came into his hands or under his control as an employee of the United States Postal Service. The maximum possible penalty includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II alleges that from on or about October 18, 2011, through and including to on or about June 10, 2013, the defendant, while an employee of the United States Postal Service and charged with the duty of receiving, holding, and paying over monies to and on behalf of the United States Postal Service made a false report of such monies. The maximum possible penalty includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Lawrence Pyle, age 30, of Omaha, is charged in a two count indictment. Count I alleges that on or about June 11, 2013, the defendant distributed 5 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about June 20, 2013, the defendant possessed with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* Jeffrey Ritchison, age 28, of Omaha, is charged with being a felon in possession of a firearm on or about June 13, 2013. The maximum possible penalty for this count is imprisonment of 15 years, a $250,000 fine, a 3 year term of supervised release, and a special assessment of $100.
* Javier Rochin-Rochin and Uriel Guadalupe Chaparro-Acosta, are charged with conspiring together and with others to possess and possess with intent to distribute 50 grams or more of actual methamphetamine beginning on an unknown date but at least from June 26, 2013, and continuing to June 27, 3013. The maximum possible penalty is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. The indictment also alleges $49,944.00 in United States currency seized on June 27, 2013, should be forfeited to the United States.
* David B. Romanski, age 39, of Lincoln, is charged in the first count of an indictment with receipt and distribution of child pornography from at least on or about October 8, 2008, and continuing to on or about May 18, 2013. If convicted, the maximum possible penalty includes imprisonment of not less than 5 years or more than 20 years, a fine of $250,000, supervised release for life, and a $100 special assessment. The defendant is charged in Count II with possession of child pornography on or about May 24, 2013. The maximum possible penalty for this count includes imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of these violations should be forfeited to the United States.
* Pedro Salgado-Ocampo, age 33, of Sioux Falls, South Dakota, is charged with illegal reentry into the United States on or about June 2, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Victor Sandoval-Venosa, age 34, of Omaha, is charged with illegal reentry into the United States on or about April 23, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Martin Tovar-Garcia, age 41, is charged in a two count indictment. Count I alleges that beginning on or about June 1, 2012, and continuing to on or about March 14, 2013, the defendant conspired with others to distribute and possess with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II alleges that on or about March 14, 2013, the defendant possessed with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release, and a $100 special assessment.
* Armando Velasquez-Ramirez, age 32, of Gering, Nebraska, is charged with illegal reentry into the United States on or about April 28, 2013, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Chet Lee West, age 56, of Nebo, North Carolina, is charged in a three count indictment. Count I charges the defendant with tax evasion for calendar year 2007. Count II charges the defendant with tax evasion for calendar year 2008. Count III charges the defendant with tax evasion for calendar year 2009. The maximum possible penalty for each count includes imprisonment of 5 years, a fine of $250,000, 3 years of supervised release, and a $100 special assessment.
* Stephen J. Wilson, age 31, of Bellevue, Nebraska, is charged with failure to register as a Sex Offender in the State of Nebraska from on or about May 7, 2013, and continuing until June 13, 2013. The maximum possible penalty for this count is imprisonment of 10 years, a fine of $250,000, a term of supervised release for life, and a special assessment of $100.Jacksonville Man Indicted for Conspiring and Attempting to Provide Material Support to TerroristsRead the Press Release
Jacksonville, Florida - Acting United States Attorney A. Lee Bentley, III, along with Acting Assistant Attorney General John Carlin, U.S. Department of Justice, National Security Division, and Michelle Klimt, Special Agent in Charge, FBI Jacksonville Division, today announced the return by a grand jury of an indictment charging Shelton Thomas Bell (19, Jacksonville) with conspiring and attempting to provide material support to terrorists. If convicted, Bell faces a maximum penalty of 15 years in federal prison on each of the two charges. Bell is currently detained in the Duval County Jail on unrelated charges. According to the indictment, Bell devised a plan to travel to the Arabian Peninsula and join Ansar Al-Sharia ("AAS"), an alias for Al-Qa'ida in the Arabian Peninsula ("AQAP"), and participate in violent armed conflict which he termed, "jihad." AAS has taken responsibility for multiple attacks on Yemeni forces, including a suicide bombing during a parade in May 2012, that killed more than 100 Yemeni soldiers and a series of armed assaults in March 2012, killing more than 100 people, including Yemeni soldiers.
The indictment alleges that between May 2012 and September 2012, Bell and others engaged in physical, firearms, and other training in preparation for armed conflict in the Middle East, which Bell described as "the actions of jihad." Bell allegedly solicited other individuals, including juveniles, to travel overseas with him in furtherance of this conspiracy. Bell made video and audio recordings intended to be distributed to others once he arrived in the Middle East, for the purpose of soliciting and recruiting others there to participate in violent jihad. In September 2012, Bell and a juvenile traveled to Amman, Jordan and made contact with an individual who could facilitate their travel to Yemen to participate in violent jihad.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI's Jacksonville Joint Terrorism Task Force (JTTF). The JTTF is a multi-agency task force comprised of full-time personnel from the FBI, U.S. Coast Guard Investigative Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the Jacksonville Sheriff's Office, Florida Highway Patrol, the Florida Department of Law Enforcement, and the Naval Criminal Investigative Service. It will be prosecuted by Assistant United States Attorney Mac D. Heavener, III and Department of Justice Trial Attorney Mara M. Kohn from the Department's Counter terrorism Section, National Security Division.
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Inmate Pleads Guilty to Heroin Trafficking Inside the Metropolitan Correctional Center in Downtown San DiegoRead the Press Release
United States Attorney Laura E. Duffy announced today that Kirk Borja pled guilty in federal court in San Diego before United States Magistrate Judge Jan M. Adler to conspiring to distribute methamphetamine and possessing heroin with the intent to distribute it.
Borja was originally indicted on the methamphetamine trafficking charge following his arrest in January 2012, as part of “Operation Carnalismo,” an investigation into the Mexican Mafia gang and affiliated associates conducted by the Violent Crime Task Force - Gang Group (VCTF-GG), a group of federal, state, and local law enforcement agents led by the Federal Bureau of Investigation.
Since his arrest, Borja has been incarcerated at the Metropolitan Correctional Center (MCC), a federal detention facility in downtown San Diego. Borja admitted in his plea to possessing the heroin inside the MCC with the intent to distribute it to other inmates. According to his plea, Borja concealed the heroin inside his body before being discovered by the Bureau of Prison’s Special Investigative Supervisor unit.
United States Attorney Laura E. Duffy praised the VCTF-GG for marshaling the evidence of Borja’s methamphetamine trafficking that led to his arrest, as well as the work of the investigators at the MCC and the FBI’s Violent Crime squad who assisted with the investigation inside the detention facility. “This prosecution illustrates our commitment, and that of our law enforcement partners, to protect not only our streets, but our jails as well,” Duffy said. “Dangerous, addictive drugs like methamphetamine and heroin hurt any community that suffers their presence, whether it be a local neighborhood or one of our detention facilities.”
Borja’s plea is subject to final acceptance by United States District Judge Anthony J. Battaglia. Sentencing for Borja was set for Sept 27 at 9 a.m. before Judge Battaglia.
DEFENDANT’S INFORMATION Case Number: 12CR0291-AJB Kirk Borja SUMMARY OF CHARGESTitle 21, United States Code, Sections 841/846 – Conspiracy to distribute methamphetamine
Maximum penalty: 40 years in prisonTitle 21, United States Code, Sections 841 – Possession of heroin with the intent to distribute
INVESTIGATING AGENCIES
Maximum penalty: 20 years in prisonFederal Bureau of Investigation
Chula Vista Police Department
San Diego County Sheriff's Department
National City Police Department
San Diego Police Department
San Diego County District Attorney's Office
U.S. Bureau of Prisons
California Department of Corrections and Rehabilitation
San Diego County Probation
Department, Immigration and Customs Enforcement's Homeland Security Investigations
Internal Revenue Service-Criminal InvestigationsIndictment: Former Bank Employees Embezzled, Staged RobberyRead the Press Release
WICHITA, KAN. – Four former bank employees are charged with embezzling from a bank in Grant County, Kan., and staging a robbery to cover the thefts, U.S. Attorney Barry Grissom said today.
Four former employees of Western State Bank in Ulysses, Kan., are charged in a federal grand jury indictment unsealed today. The defendants are:
Amber Gutierrez, 32, Ulysses, Kan., who is charged with two counts of embezzlement by a bank employee and one count of bank robbery.
Hattie Wiginton, 32, Ulysses, Kan., who is charged with two counts of embezzlement by a bank employee, one count of bank robbery, and one count of making a false statement to the FBI.
Ashley Cravens, 28, Ulysses, Kan., who is charged with two counts of embezzlement by a bank employee and one count of bank robbery.
Linda Wise, 59, Ulysses, Kan., who is charged with one count of embezzlement by a bank employee.The indictment alleges: From 2008 to July 24, 2010, while Gutierrez was head teller and Wiginton and Cravens were clerks, they embezzled up to $84,200 from the bank.
On July 24, 2010, Gutierrez, Wiginton and Cravens staged a robbery at the bank, taking an undetermined amount of cash.
On July 24, 2010, Wiginton made false statements to the FBI, including false claims that she did not know who robbed the bank, that there were two robbers and that one of the robbers was a male with an Hispanic accent.
From late 2010 to March 2013, Gutierrez, Cravens and Wise, who were still bank employees, embezzled $24,450 from the bank. They created falsified cash deposit slips and deposited funds in their personal accounts.
If convicted, they face a maximum penalty of 30 years in federal prison and a fine up to $1,000 on the each count of theft by a bank employee; a maximum penalty of 25 years and a fine up to $250,000 on the charge of bank robbery; and a maximum penalty of five years and a fine up to $250,000 on the charge of making a false statement to the FBI. The FBI, the KBI, the Grant County Sheriff’s Office and the Ulysses Police Department investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Independence Man Sentenced for Social Security Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for a scheme to receive Social Security disability payments while running a mortgage brokerage firm that he founded in Blue Springs, Mo.
Charles Daniel Koss, 63, of Independence, was sentenced by U.S. District Judge Brian C. Wimes to seven years in federal prison without parole. The court also ordered Koss to pay $212,987 in restitution to the Social Security Administration and the Department of Treasury.
On Feb. 25, 2013, Koss was found guilty of two counts of theft of government money, one count of Social Security disability fraud, one count of mail fraud and one count of transmitting a false negotiable instrument with the intent to defraud the government.
Evidence introduced during the trial indicated that Koss fraudulently received a total of $212,768 in Social Security disability insurance payments between September 1994 and January 2010. He also fraudulently received a $250 American Recovery and Reinvestment Act payment. During that time, Koss owned and operated Embassy Mortgage in Blue Springs, a company he founded in 1994. Several witnesses during the trial confirmed that Koss worked full-time as a loan officer and ran the business; his wife did paperwork, such as paying bills and processing documents. Embassy Mortgage was involved in approximately 550 closings, nearly all of which were conducted with Koss present.
Koss, who began receiving disability payments in 1987, failed to report any change in his health condition or any income from Embassy Mortgage to the Social Security Administration. In order to qualify for and to keep receiving Social Security disability insurance benefits, a person must be so disabled that they are unable to perform substantial work. Individuals are required to report all work activity to the Social Security Administration. Koss led an active lifestyle that included bowling, golfing, horseshoes, boating, activities at his lake house and frequent visits to Ameristar Casino, where he gambled a total of $260,000 during this time.
On April 15, 2010, Koss received a billing statement from the Social Security Administration requesting repayment of the $212,768 he was overpaid as a result of his unreported work activity. About a month later, he mailed to the Social Security Administration a document entitled “Registered Private Money Order,” a false negotiable instrument purporting to draw on a trust account purportedly held at the United States Treasury. In actuality, the account did not exist and the document was fraudulent.
Koss told federal agents in interviews during the investigation that he has studied redemption theory. Redemption theory involves bogus claims that when the United States government abandoned the gold standard in 1933, it pledged its citizens as collateral so it could borrow money. The movement also asserts that common citizens can gain access to funds in secret accounts using obscure procedures and regulations. According to the theory, the government created a fictitious person (or “straw man”) corresponding to each newborn citizen and each citizen has an alleged secret trust account with the United States Treasury. The theory also claims that through obscure procedures under the Uniform Commercial Code, a citizen can “reclaim” the “straw man” and write negotiable instruments against its accounts. Its adherents sometimes call themselves “sovereign citizens.” The “sovereign citizen” movement is a loosely organized collection of groups and individuals who have adopted anarchist ideology. Its adherents believe that virtually all existing government in the United States is illegitimate and they seek to “restore” an idealized, minimalist government that never actually existed.
Redemption theory and sovereign citizen beliefs are totally without merit and they have no basis in law or fact. Individuals often use these ideas to further various fraudulent schemes.
This case was prosecuted by Special Assistant U.S. Attorney Trey Alford, Assistant U.S. Attorney Daniel M. Nelson and Special Assistant U.S. Attorney Kate Hoey. It was investigated by the Social Security Administration – Office of Inspector General, the Department of the Treasury – Inspector General for Tax Administration and the U.S. Postal Inspection Service.
Hopkins Man Pleads Guilty to Distribution of Child PornograpyRead the Press Release
GRAND RAPIDS, MICHIGAN – Ronald Eugene Mabee, 66, of Hopkins, Michigan pleaded guilty today, Thursday, July 18, 2013, to distributing child pornography via the Internet, U.S. Attorney Patrick A. Miles, Jr. announced. Mabee faces a minimum of five years and a maximum of 20 years of imprisonment, and he will be required to serve a term of supervised release after his prison term has been completed. Mabee will also be required to register as a sexual offender.
During an on-line investigation last May, an undercover officer downloaded numerous child pornography files that Mabee had made available on the Internet. Agents then interviewed Mabee, who confessed to searching out and downloading child pornography via the Internet 50-60 times over the course of several months. Forensic analysis confirmed the presence of child pornography on Mabee’s computer. In pleading guilty, Mabee admitted that he knowingly made the child pornography he had downloaded from the Internet available for others to download.
U.S. Attorney Miles commented: “My office is committed to shutting down the child pornography market. If offenders like Mr. Mabee did not seek to possess and distribute this material, others would not produce it in the first place. These are not victimless crimes. The penalties are severe and deservedly so.”
“Child pornography is the permanent record of the sexual exploitation of children, and this victimization continues every time that image is transmitted, downloaded, shared, or viewed,” said William Hayes, Acting Special Agent in Charge of HSI Detroit. SAC Hayes added “HSI Special Agents will continue to aggressively target those who engage in this depraved activity.”This case is part of Operation iGuardian and Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
The Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
Gang Member Pleads Guilty to South San Francisco Triple Racketeering MurderRead the Press Release
SAN FRANCISCO – Joseph Ortiz, 23, of South San Francisco, pleaded guilty today to twenty-five federal charges, including three counts of racketeering murder, eight counts of attempted racketeering murder, two counts of robbery affecting interstate commerce, racketeering conspiracy, conspiracy to commit racketeering murder, multiple firearms violations, and multiple violations related to the obstruction of justice, announced United States Attorney Melinda Haag.
According to court documents and the defendant’s guilty plea allocution, Ortiz is a member of the 500 Block gang, a Norteño street gang in South San Francisco. Members of the 500 Block gang are allied with members of another Norteño gang in South San Francisco, the C Street gang. The united 500 Block/C Street Gang engages in crimes such as robbery, narcotics trafficking, and murder. Among other acts of violence, members of the 500 Block/C Street Gang sought to attack and kill members of rival Sureño gangs, as well as members of other rival gangs.
During the evening of December 18, 2010, in Saint Francis Square in Daly City, Ortiz saw four individuals he suspected of being Sureño gang members in a car. As a result, Ortiz went to his own car, retrieved a gun, and fired at the car carrying the suspected Sureño as it drove away, wounding three of the occupants.
Four days later, on December 22, 2010, Ortiz and several other members of the 500 Block/C Street Gang were looking for rival gang members to attack. As they drove along Eighth Lane in South San Francisco, Ortiz saw a group of young men he suspected of being rival gang members. Ortiz and some of his co-conspirators got out of their car with guns and fired into the group of suspected rivals, killing three and wounding three; one victim was uninjured.
In addition to these shootings, Ortiz pleaded guilty to robbing at gunpoint a South San Francisco jewelry store on April 5, 2010, as well as robbing at gunpoint a 7-Eleven convenience store in Pacifica four days later, on April 9, 2010. Furthermore, Ortiz pleaded guilty to various charges arising from his efforts to obstruct the investigation of the December 22, 2010 shooting in South San Francisco, including fleeing to Mexico to avoid arrest and prosecution.
Ortiz faces a mandatory minimum term of life imprisonment for each of the three counts of racketeering murder to which he has pled guilty. The maximum terms of imprisonment he faces for his twenty-five counts of conviction are as follows:
- Racketeering conspiracy --- Life
- Conspiracy to commit racketeering murder --- 10 years
- Conspiracy to commit racketeering assault with a dangerous weapon --- 3 years
- Attempted racketeering murder (8 counts) --- 10 years for each count
- Use of firearm in crime of violence (4 counts) --- Life for each count; mandatory minimum consecutive sentence of 10 years for first count, and mandatory minimum consecutive sentence of 25 years for each subsequent count
- Racketeering murder (3 counts) --- Life for each count; mandatory minimum sentence of life for each count
- Use of firearm in crime of violence causing murder --- Life
- Conspiracy to obstruct justice --- 5 years
- Obstruction of justice --- 20 years
- Concealment of object to obstruct investigation --- 20 years
- Conspiracy to commit robbery affecting commerce --- 20 years
- Robbery affecting commerce (2 counts) --- 20 years for each count
Ortiz is scheduled to be sentenced by Judge Illston on November 1, 2013 at 11:00 am.
Acadia L. Senese and W.S. Wilson Leung are the Assistant United States Attorneys who are prosecuting the case against Ortiz, with the assistance of Kevin Costello, Ponly Tu, Marina Ponomarchuk, and Daniel Charlier-Smith. This prosecution is the result of an investigation by the Daly City Police Department and the South San Francisco Police Department, working with Homeland Security Investigations, and with the assistance of the San Mateo County Sheriff’s Office. Of the nineteen defendants originally charged as a result of this investigation, twelve have pleaded guilty to racketeering-related offenses and/or offenses related to the obstruction of justice.
Four Eastern Panhandle Residents Enter Pleas of GuiltyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Martinsburg.
SCOTT D. MCDONOUGH, age 50, of Hampshire County, entered a plea of guilty to “Felon in Possession of Firearms.” As part of his plea, MCDONOUGH agreed to abandon his interest in 22 firearms. MCDONOUGH, who is free on bond pending sentencing, faces up to
10 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.FRANK BRINKMEYER, age 43, PATRICIA BRINKMEYER, age 67, and, MICHAEL SMITH, age 39, of Martinsburg, entered pleas of guilty to “Distribution of Heroin.” FRANK BRINKMEYER, who is in custody pending sentencing, and PATRICIA BRINKMEYER and MICHAEL SMITH, who are free on bond pending sentencing, face up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Eastern Panhandle Drug
& Violent Crimes Task Force. The Task Force consists of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, the Berkeley County Sheriff’s Department, and the Jefferson County Sheriff’s Department.Four Convicted of Heroin ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Greater Harrison DTF Leads Investigations
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Clarksburg.
ANDRE ABRAM, age 32, of Pittsburgh, Pennsylvania, entered a plea of guilty to “Possession with Intent to Distribute Heroin within 1,000 Feet of the Clarksburg Housing Authority” on March 28,2013. As part of his plea, ABRAM will forfeit $3,376 in United States currency seized on March 28, 2013. ABRAM, who is in custody pending sentencing, faces 1 to 40 years imprisonment and a $2,000,000 fine.
ERIC SCOTT BARKER, age 33, MEGAN EILEEN DUNIGAN, age 25 and ROBERT ALLEN HILL, age 24, of Clarksburg, entered pleas of guilty to“Possession with Intent to Distribute Heroin” on February 8, 2013, in Clarksburg. As part of his plea, BARKER will forfeit $1,505 in United States currency seized from his residence on. BARKER, DUNIGAN and HILL, who are in custody pending sentencing, face up to 20 years imprisonment and a
$1,000,000 fine, as well as a consecutive sentence for violating the conditions of Federal supervised release they were serving at the time of the commission of this offense.These cases were investigated by the Greater Harrison County Drug Task Force, consisting of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service.
The cases were prosecuted by Assistant United States Attorney & Criminal Chief
Shawn A. Morgan.
ANTWAN SHAIRD, age 28, entered pleas of guilty to three counts of “Indecent Exposure” and was sentenced to 270 days imprisonment to run consecutive to his current sentence of 180 months.PHILLIP GARRISON, age 26, entered pleas of guilty to two counts of “Indecent Exposure” and was sentenced to 180 days imprisonment to run consecutive to his current sentence of 100 months.
The SHAIRD and GARRISON cases were prosecuted by Assistant United States Attorney Brandon S. Flower and were investigated by the Special Investigative Services Staff at USP Hazleton.
BRIAN FARLEY, age 31, of Oceana, West Virginia, entered a plea of guilty to one count of “Obtaining Drugs by Fraud” and one count of “Making a Material False Statement.” FARLEY, who is on bond pending sentencing, faces up to 4 years imprisonment and a
$250,000 fine on the fraud charge and up to 5 years imprisonment and a $250,000 fine on the false statement charge.The FARLEY case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the US Department of Veterans’ Affairs/Office of Inspector General-Criminal Investigations Division.
Fort Yates Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on July 18, 2013, Duane Kidder, 24, Fort Yates, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on two counts of assault with a dangerous weapon. Kidder pleaded guilty to the charges on April 11, 2013.
Judge Hovland sentenced Kidder to serve two and one-half years on each charge. The sentences are to run concurrently followed by three years of supervised release. Kidder was also ordered to pay a $200 special assessment to the Crime Victim’s Fund. Kidder was ordered to pay restitution, joint and several with co-defendant Jewett in the 2012 charge, in the amount of $5,848.63.
On Jan. 16, 2012, Kidder assisted co-defendant Lionel Jewett in assaulting a woman in Fort Yates. Jewett assaulted the woman by using a garden hoe and a fence post pounder. Jewett pleaded guilty on Aug. 20, 2012. The victim’s injuries required medical treatment but were not life threatening.
In a separate incident, on Jan. 30, 2013, Kidder assaulted a woman by kicking her in the face with his foot while he was wearing shoes. The injury to the woman required medical treatment.
On April 29, 2013, Lionel Jewett, 21, Fort Yates, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on two counts of burglary, a count of assault with intent to commit murder, and two counts of assault with a dangerous weapon. Jewett pleaded guilty to the charges on Aug. 20, 2012.Judge Hovland sentenced Jewett to serve six years in federal prison, to be followed by three years of supervised release. Jewett was ordered to pay $500 in special assessments to the Crime Victim’s Fund and $12,041.17 in restitution.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Standing Rock Agency.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Fort Madison Man Sentenced for Production of Child PornographyRead the Press Release
DAVENPORT, IA – On Monday, July 15, 2013, Aaron Dean Norton, age 33, was sentenced by United States District Court Judge John A. Jarvey to 360 months imprisonment for producing child pornography announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Norton to serve 20 years of supervised release following the imprisonment.
On March 1, 2013, Norton pleaded guilty to the production of child pornography charge. As part of the guilty plea proceedings, Norton admitted that between April 14 and April 20, 2010, he photographed himself sexually abusing a four year old child he was babysitting.
“The prosecution of child sexual predators is a top priority of the United States Department of Justice and this office will aggressively pursue all child pornography cases, with a special emphasis on those who produce pornography with innocent children”, said U.S. Attorney Klinefeldt. “I commend the Iowa Internet Crimes Against Children (ICAC) Task Force and the Iowa Division of Criminal Investigation for their outstanding work on this difficult case.”
This case was investigated by the Iowa Internet Crimes Against Children (ICAC) Task Force and the Iowa Division of Criminal Investigation, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Former U.S. Customs and Border Protection Officer and Four Associates Sentenced for Carrying out Bribery and Alien Smuggling Activities Along Mexican BorderRead the Press Release
A former U.S. Customs and Border Protection (CBP) officer, his girlfriend, his nephew and two of their associates were sentenced today in federal court for their participation in bribery and alien smuggling activities along the U.S./Mexico border spanning approximately two years, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Former CBP Officer Juan Carlos Guerrero, 39, of Mission, Texas, was sentenced to 108 months in prison and ordered to pay a $30,000 fine by U.S. District Judge Andrew S. Hanen in the Southern District of Texas after pleading guilty last year to one count of substantive bribery, one count of conspiracy to commit bribery and one count of alien smuggling conspiracy. Guerrero’s girlfriend, Claudia Flores, 34, of Mission, was sentenced to 60 months in prison and also ordered to pay a $30,000 fine; Maribel Rivera, 43, also of Mission, was sentenced to 30 months in prison; and Rodolfo Caballero Rojas, 40, of Oklahoma City, was sentenced to 24 months in prison and ordered to pay a $6,000 fine. Each pleaded guilty last year to separate informations charging each of them with one count of conspiracy to commit bribery and alien smuggling. Guerrero’s nephew, Jose P. Cantu, 20, of Mission, was sentenced to 52 months in prison after having pleaded guilty to conspiracy to commit bribery and alien smuggling and a separate charge of conspiracy to import marijuana and cocaine.
According to court documents, between approximately October 2008 and approximately May 2011, Guerrero worked the midnight shift at the Hidalgo, Pharr and Anzaldvas Ports of Entry, where he was responsible for, among other things, vehicle inspections of northbound traffic traveling from Mexico to the United States.
According to court documents, between approximately January 2009 and approximately May 2011, Guerrero and Flores organized a bribery and alien smuggling operation, whereby Guerrero, Flores, Rivera, Rojas, Cantu and other co-conspirators arranged for aliens from Mexico to be smuggled into the United States through Guerrero’s inspection lanes in exchange for bribe payments ranging from $500 to $3,000 per alien. Guerrero admitted that he organized and directed a total of approximately 80 to 150 different smuggling events and that he knowingly permitted approximately 80 to 165 aliens to gain illegal entry into the United States.
According to court documents, Flores admitted that she helped Guerrero organize and direct a total of approximately 50 to 75 of the illegal crossings, in which approximately 50 to 100 aliens from Mexico gained illegal entry into the United States. Rivera admitted that she assisted Guerrero and Flores by identifying and soliciting aliens, communicating smuggling prices and details of the illegal crossings to the aliens and collecting bribe payments from the aliens on the behalf of Guerrero and Flores. Rojas admitted, among other things, that he assisted Guerrero by personally driving aliens through Guerrero’s inspection lane at the Anzalduas Point of Entry and that he paid Guerrero a bribe of approximately $1,500 as payment for Guerrero’s decision to permit an alien to pass illegally through his inspection lane.
Court documents further indicate that Cantu admitted to helping Guerrero separately organize and carry out approximately 40 illegal crossings, in which approximately 45 to 60 aliens from Mexico gained illegal entry into the United States. Additionally, Cantu independently smuggled 168.8 kilograms of marijuana and 3.9 kilograms of cocaine through Guerrero’s inspection lane in exchange for approximately $5,000 from another associate.
Guerrero, who was placed on administrative leave upon his arrest in October of last year, formally resigned his CBP post on Dec. 13, 2012, as part of his plea agreement.
The case was prosecuted by Trial Attorneys Edward J. Loya Jr. and J.P. Cooney of the Criminal Division’s Public Integrity Section. The case was investigated by agents from the FBI’s South Texas Border Corruption Task Force, which includes agents from the FBI, U.S. Immigration and Customs Enforcement Office of Professional Responsibility, CBP Office of Internal Affairs, U.S. Department of Homeland Security Office of Inspector General, CBP U.S. Border Patrol and the Texas Rangers Division.Former Sioux City Man Pleads Guilty to Distributing Child PornographyRead the Press Release
A man who distributed child pornography pled guilty on July 17, 2013, in federal court in Sioux City.
Patrick Persinger, age 38, formerly of Sioux City, was convicted of one count of distribution of child pornography.
At the plea hearing, Persinger admitted that, between February 2011 and October 2011, he used the Internet to distribute child pornography.Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Persinger remains in custody of the United States Marshal pending sentencing. Persinger faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4078.
Former San Antonio Police Officer Pleads Guilty to Being A Convicted Felon in Possession of A FirearmRead the Press Release
Jack Nealy, a former San Antonio Police officer, now faces up to ten years in federal prison after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Robert Pitman and ATF Special Agent in Charge Melvin D. King, Houston Division.
Appearing before U.S. Magistrate Judge Pamela Mathy yesterday afternoon, Nealy, who was convicted in federal court in the Western District of Texas of bank robbery in 1993 and served a sentence of 121 months imprisonment, admitted that in November 2011, he was in possession of a .40 caliber pistol and was wearing a replica United States Department of State badge, when he was apprehended in the parking lot of a San Antonio nightclub.
Nealy, who remains in federal custody, is scheduled to be sentenced on October 24, 2013, before U.S. District Judge Orlando Garcia in San Antonio.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives together with the San Antonio Police Department and the U.S. Diplomatic Security Service.
Former San Antonio City Employee Indicted by Federal Grand Jury in Connection with A Bribery/Money Laundering SchemeRead the Press Release
A federal grand jury in San Antonio has returned an indictment charging a former City of San Antonio employee in connection with a bribery scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
The three-count indictment, returned late yesterday, charges 49-year-old Oscar Gilberto Rodriguez of San Antonio with one count of paying a bribe concerning a program receiving federal funds and 35-year-old Irene Avina Morales of San Antonio with one count of receiving a bribe concerning a program receiving federal funds and one count of money laundering.
According to the indictment, between June 2008 and August 2009, Rodriguez paid Morales, an employee in the city’s Neighborhood Service Department $5,100 in an effort to secure a $26,040 contract with the city to clean up a lot on Maridel Avenue. The indictment further alleges that in September 2008, Morales conducted a financial transaction designed to conceal and disguise the nature of the bribe money.
Upon conviction, the defendants face up to 10 years imprisonment on the bribery related count. Morales is also subject to a maximum 20 years in federal prison upon conviction of the money laundering count.
This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation. Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Regional Director of Federal Protective Service Sentenced for Accepting Bribes from Government ContractorRead the Press Release
ALEXANDRIA, Va. – Derek Matthews, 47, of Harwood, Md., was sentenced today to 15 months in prison, followed by a one year term of supervised release for accepting bribes from a government contracting company in exchange for using his position to help the company find and win contracts.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Charles K. Edwards, U.S. Department of Homeland Security (DHS) Deputy Inspector General, made the announcement after the sentence was pronounced by United States District Judge Leonie M. Brinkema.
Matthews previously pleaded guilty on April 11, 2013. According to court documents, Matthews served as Deputy Assistant Director for Operations for the DHS’s Federal Protective Services (FPS) and was later promoted to FPS Regional Director for the National Capital Region. In the fall of 2011, Matthews agreed with Keith Hedman, an executive at an Arlington, Va., security service consulting company referred to as Company B in court records, that in exchange for a monthly payment from Company B and a percentage of any new business obtained, Matthews would use his position to help Company B find and win U.S. government contracts, including with FPS. Matthews engaged in a series of official acts, including lobbying of government officials and sharing of information with Hedman, in an effort to obtain business for Hedman and Company B. In turn, Hedman and Company B agreed to pay $50,000 in monthly installments over a year, as well as a percentage of any new business Matthews obtained for Company B. Hedman and Company B actually paid Matthews three monthly payments totaling $12,500 before the scheme was interrupted.
Hedman pleaded guilty on March 18, 2013, to conspiracy to commit bribery in connection with Matthews’ scheme, along with conspiracy to commit major government fraud as part of a separate scheme to fraudulently obtain more than $31 million in government contract payments that should have gone to disadvantaged small businesses. On June 21, 2013, Hedman was sentenced to 72 months in prison for his role in the major government fraud and 24 months for his role in the bribery scheme.
This case was investigated by the Washington Field Office for the DHS Office of the Inspector General (OIG), the National Aeronautics and Space Administration OIG, the Small Business Administration OIG, the Defense Criminal Investigative Service, and the General Services Administration OIG. Assistant United States Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Postmaster Pleads Guilty to Stealing Postal Service FundsRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Michael Kozina, 57, of Eden, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to misappropriation of postal funds by a postal service employee. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Kozina was employed as Postmaster at the Lawtons, N.Y. post office between April 2, 2005 and July 31, 2012. As the Postmaster, the defendant accepted cash payments from more than 12 United States Postal Service customers for the purchase of money orders. Instead of depositing the cash payments into the USPS register, Kozina kept a portion of the cash for his own purposes. The defendant then falsified USPS records to make it appear that customers purchased money orders in an amount which was significantly less than what was actually paid. As a result, losses to the USPS totaled $13,760.75. In addition, Kozina also stole $13,585 in post office box rental payments between January 1, 2009 and July 31, 2012.
“As the past public corruption cases brought by this Office demonstrate, no person is above the law,” said U.S. Attorney Hochul. “As head of a Post Office branch, this defendant served in a position of trust to both the Government and the public. This Office will not permit a representative or employee of any level of Government to misuse their position for personal gain.”
The plea is the culmination of an investigation on the part of Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent-In-Charge Robert Lapina.
Sentencing will be scheduled before Chief U.S. District Court Judge William M. Skretny.Former Owner of Employee Leasing Company Sentenced to Federal Prison for Failing to Pay Payroll Taxes to the IRSRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced today that Richard R. Whatley, a former owner of Alliance Staffing Management Inc. (ASM), was sentenced to 51 months in prison today for willfully failing to account for and pay over employment taxes. Whatley was also ordered to pay $541,513.61 in restitution to the IRS. Whatley appeared before U.S. District Judge David Nuffer in Salt Lake City.
In January 2010, a federal grand jury charged Whatley with five counts of willfully failing to account for and pay over employment taxes, relating to three different employee leasing companies that he allegedly operated and controlled between the years 2001 and 2006. The employee leasing companies included American Employment Group Inc., ASM and Intermountain Consulting Group Inc. The tax loss associated with Whatley’s criminal conduct during these years totaled more than $2.3 million. Whatley pleaded guilty in January 2013 to one of the charged counts.
According to the plea agreement, during the 2002 through 2004 tax years, Whatley held an ownership interest in and had the ability to control the finances of ASM, an employee leasing company. Whatley’s control included determining the amount of employment taxes that had to be paid over to the IRS and the authority to decide which bills would be paid and which bills would not be paid. As charged in the superseding indictment, in the fourth tax quarter of 2003, Whatley caused the collection of employment taxes from ASM’s employees’ wages and then willfully failed to pay over $541,513 for the employees’ portion of employment taxes to the IRS.
The case was investigated by special agents of IRS - Criminal Investigation and was prosecuted by Trial Attorneys Christopher J. Maietta and Stuart A. Wexler of the Justice Department’s Tax Division.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax .
Former Muscatine Doctor Sentenced for Distributing Controlled Substances Not for Legitimate Medical Purpose and Outside the Scope of Professional PracticeRead the Press Release
DAVENPORT, IA - On July 18, 2013, David Vincent Gierlus, age 60, formerly an osteopathic doctor in Muscatine, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 96 months imprisonment and a fine of $400,000.00 after pleading guilty to distributing hydrocodone to a patient without a legitimate medical purpose and outside the scope of professional practice, announced United States Attorney Nicholas A. Klinefeldt. Gierlus was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
In August of 2012, Gierlus was charged in a criminal complaint with three counts of illegal distribution of drugs to patients. According to the criminal complaint, Gierlus provided prescriptions for controlled substances in exchange for sex. The criminal complaint also alleged that one patient advised that the sexual contact ranged from oral sex, both during medical appointments and outside the office in Gierlus's vehicle, to intercourse in the examination room during medical appointments. That patient estimated she and Gierlus had sexual contact more than 50 times.
An indictment was filed against Gierlus in January of 2013, and on March 1, 2013, Gierlus plead guilty to one of the counts of the indictment. Pursuant to a written sentencing agreement, Gierlus agreed to the 96-month sentence.
Gierlus is no longer licensed to practice medicine and is prohibited from providing any form of health services during the five years he is on supervised release.
This case was investigated by the Federal Bureau of Investigation, the Muscatine, Iowa, Police Department, the Muscatine County Sheriff’s Office and the Muscatine County Drug Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Mortgage Broker Indicted for Defrauding First Coweta BankRead the Press Release
GAINESVILLE, Ga. – Amy B. Williams, 48, of Buford, Ga., has been indicted by a federal grand jury on charges arising out of a scheme to defraud First Coweta Bank.
“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Georgia leads the nation in bank failures since 2008, with 78 banks failing – including First Coweta Bank, the bank this defendant is charged with defrauding.”
According to United States Attorney Yates, the indictment, and other information presented in court: Williams was the sole owner of United International Mortgage (UIM) Corporation in Buford, Ga., and was in the business of arranging construction loans for residential builders.
In April 2007, UIM closed three construction loans for one of its customers, Mainstreet Builders, Inc. The loans were intended to finance the cost of constructing three new houses in Suwanee, Ga. The loans, which totaled more than $1.7 million, were funded by First Coweta Bank.
Williams directed an unindicted coconspirator to forge signatures on loan documents and caused those documents to be faxed to First Coweta Bank. The bank then wire transferred the loan proceeds to an account controlled by Williams. Williams was required to hold the money in trust for the builder and to disburse the money to the builder on a draw basis, as work on the three houses progressed. Instead, she used more than $1.1 million of this money to pay off her personal debt at another bank, and wire transferred $60,000 into her personal checking account. After converting First Coweta Bank’s money to her own use, Williams attempted to cover up her crime by emailing false documents and misleading photos to the bank.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The actions of Ms. Williams, as alleged in the indictment, directly led to the failure of the First Coweta Bank and, as such, clearly demonstrates the serious nature and impact of those actions. The FBI will continue to coordinate its bank fraud investigations with its various law enforcement partners in an effort to effectively identify, investigate, and present for prosecution those individuals who do so much harm to the banking industry.”
Jason T. Moran, Special Agent in Charge, Federal Deposit Insurance Corporation- Office of Inspector General Southeast Region, said: “The Federal Deposit Insurance Corporation is committed to its partnerships with others in the law enforcement community as we address mortgage fraud and bank fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable.”
Williams was arraigned today before United States Magistrate Judge J. Clay Fuller in Gainesville, Ga.
The indictment charges one count of conspiracy and six counts of bank fraud. Each count carries a maximum sentence of 30 years in prison and a fine of up to $1,000,000. 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.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the FBI and the FDIC Office of Inspector General.
Assistant United States Attorney Russell Phillips 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 Key West Residents Sentenced for Making False Claims on BP Spill FundRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that David Bacon, 53, and Donald Sargent, 37, both former residents of Key West, Florida, were sentenced today in United States District Court in Key West on their convictions on charges arising from false claims filed in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico. Both defendants, and a third individual, Cleon Major, previously had entered guilty pleas to charges of wire fraud in the submission of fraudulent claims for lost income against the Gulf Coast Claims Facility, in violation of Title 18, United States Code, Section 1343.
U.S. District Court Judge Jose E. Martinez sentenced Bacon to a term of imprisonment of 21 months followed by a three year term of supervised release, and ordered he pay restitution to the fund in the amount of $16,000. Judge Martinez sentenced Sargent to a prison term of 33 months, also followed by a three year term of supervision, and restitution in the amount of $77,215 to the Gulf Coast Claims Facility. Defendant Major was sentenced on May 16, 2013 to a term of imprisonment of 110 months on the wire fraud charges and ordered to pay restitution in the amount of $306,228, as well as a period of supervised release of three years.
According to the Indictment, Joint Factual Statements filed by the parties, and other court records, on April 20, 2010, an explosion and fire occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico that had been drilling an exploration well. In June 2010, BP established the Gulf Coast Claims Facility (GCCF) for the purpose of administering, mediating, and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of the oil discharges due to the Deepwater Horizon incident. In August 2010, the GCCF began receiving and processing such claims, and BP ceased receiving and processing claims of individuals and businesses for costs, damages, and other losses incurred as a result of the oil discharges due to the Deepwater Horizon incident.
Major confessed in Court that on October 27, 2010, in furtherance of a scheme to obtain money from the GCCF, he filed a fraudulent electronic claim via the internet for approximately $10,000, in lost income, knowing the representations in his claim were false. To substantiate his claim of lost income, Major provided the GCCF fraudulent employment and income documents, which he transmitted via the internet from Monroe County, Florida, to the GCCF offices in Dublin, Ohio to support his demand for compensation.
In addition to his own claim, Major secured the personal identifying information, including social security numbers, of Bacon, Sargent, and others, and filed claims under their names with false supporting documentation. Major was held accountable as part of the relevant sentencing conduct for filing fraudulent claims for nine other Key West residents, in addition to Bacon and Sargent, which included false verifications of employment, fraudulent payroll records, and fictitious supporting tax forms. Compensation paid out under the false claims was shared between the individual claimant and Major.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Gainesville Resident Sentenced for Bank Fraud and Identity TheftRead the Press Release
GAINESVILLE, FLORIDA – Donald Lee Phelps, 51, formerly a resident of Gainesville, was sentenced by United States District Court Judge Mark E. Walker to five years imprisonment in federal prison for bank fraud and aggravated identity theft on Wednesday, July 17, 2013. Following his release from prison, Phelps was ordered to serve a period of five years supervised release. The sentence also included an order of restitution in the amount of $68,785.50 to victims of the fraud, announced United States Attorney Pamela C. Marsh. Phelps had pled guilty to bank fraud and aggravated identity theft on April 3, 2013 in federal court.
Phelps arrived in Gainesville in January 2005 and falsely used the identity of a soldier serving a tour of duty in Iraq. Using this identification, Phelps obtained employment, opened bank accounts and credit accounts. During the next year and a half, the defendant made multiple purchases through the credit accounts and made deposits into the bank from closed accounts. He then made withdrawals from the bank.
Phelps was indicted by the grand jury of the Northern District of Florida, Gainesville Division, on January 22, 2013, after he was apprehended in Daphne, Alabama. Phelps had been sought by the Federal Bureau of Investigation since he fled Gainesville in December 2006. Phelps had been living in Texas using an assumed name and, at the time of his arrest, was carrying the identification, including a passport, of another man.
United States Attorney Marsh said, “The Department of Justice is committed to vigorously prosecuting those individuals and groups of individuals who steal the identities of others and use those stolen identities to fraudulently obtain large amounts of money and merchandise in the name of the victim. The crimes of identity theft and identity fraud are particularly harmful because, in many cases, citizens are victimized twice – first, when their identity is stolen and used to fraudulently obtain monies and merchandise in their name, and second, when the victims suffer credit problems from nonpayment of charges to the victims based upon the fraudulent activity. We have intensified our efforts, along with our federal and state law enforcement partners, to identify and vigorously prosecute cases involving fraud and identity theft.”
Ms. Marsh praised the work of the Federal Bureau of Investigation, whose investigation led to the identification of Phelps and his apprehension in the case. The case was prosecuted by Assistant United States Gregory P. McMahon.Phelps has pending warrants outstanding in Texas, Arizona, and Pennsylvania, for probation violations for similar offenses.
Former Davenport Man Sentenced on Federal Cocaine and Marijuana ConspiracyRead the Press Release
DAVENPORT, IA - On July 17, 2013, Alan Bernard Baugh, age 32, formerly from Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 75 months imprisonment, after pleading guilty to conspiracy to distribute at least 500 grams of cocaine and 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Baugh was also ordered to serve four years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund. The district court also ordered Baugh to forfeit to the government $12,826 seized during a search warrant.
Baugh agreed in the plea proceeding that from June 2006 to February 2, 2012, he entered into an agreement with two or more individuals to distribute cocaine and marijuana. As part of the investigation, on February 5, 2012, law enforcement officers conducted a search of Baugh’s Davenport residence and seized 7.1 kilograms of marijuana, 269 grams of cocaine, and $12,826.00 in cash.
This case was investigated by the Drug Enforcement Administration, the Iowa Department of Public Safety-Division of Narcotics Enforcement, and the Davenport, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Food Exporter Employee Pleads Guilty and Is Sentenced for Forging USDA CertificateRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Samuel Santiago, Caribbean Area Manager, U.S. Department of Agriculture, Animal and Plant Health Inspection Service, Investigation and Enforcement Services (USDA-APHIS-IES), announced that Raquel Molina, 55, of Miami, pled guilty to the offense of Forging an Official Certificate, in violation of Title 7, United States Code, Section 1622(h)(4). Molina waived a Pre-Sentence Investigation Report and was simultaneously sentenced to a $500 fine.
According to the allegations of the charging instrument, Raquel Molina, an employee of a Miami, Florida food supply company, caused the export of a container of food to French Polynesia, Tahiti, which included ice cream, an animal product, milk. Merchandise containing animal products exported from the United States require the issuance and accompaniment of a Health Certificate issued by the United States Department of Agriculture Animal and Plant Inspection Service.
On May 22, 2009, Molina faxed a fraudulent Health Certificate for the cartons of ice cream, bearing the forged signature of a U.S. Export/Import Veterinary Medical Officer, to French Polynesia, Tahiti. Later that same day, Molina fraudulently filled out and signed another form, again using a false signature, under the title of Dairy Grader, bearing the seal of the United States Department of Agriculture Animal and Plant Inspection Service.
Raquel Molina pled guilty and was immediately sentenced for her role on July 17, 2013, before U.S. District Judge Robert N. Scola, Jr.
Mr. Ferrer commended the investigative efforts of the USDA-APHIS-IES. 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.
Florida Men Plead Guilty Relating to Their Involvement in Illegal Possession of A FirearmRead the Press Release
RUBEN JAUREGUI, 24, and FRANCISCO MALDONADO, 46, both of Dade City, Florida, pled guilty in federal court today before U. S. District Judge Jay C. Zainey to misprision of a felony, announced U. S. Attorney Dana Boente.
According to the factual basis, between February 6 and March 21, 2013, RUBEN JAUREGUI and FRANCISCO MALDONADO both travelled from Florida with a co-defendant, Jaime Jauregui, who was travelling to the Eastern District of Louisiana to negotiate the purchase of weapons. Jaime Jauregui possessed a weapon, specifically, a Colt M4, .233 caliber automatic assault rifle that is classified as a firearm under Federal Law. RUBEN JAUREGUI and FRANCISCO MALDONADO knew that Jaime Jauregui was a convicted felon, who could not possess a firearm, but they assisted Jaime Jauregui by willfully concealing his possession of the firearm and did not report this crime as soon as possible to the lawful authorities.
Both RUBEN JAUREGUI and FRANCISCO MALDONADO face a maximum term of imprisonment of three years, a fine of $250,000.00 and one year of supervised release following any term of imprisonment. Sentencing is scheduled for October 22, 2013.
This investigation was conducted by Special Agents of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
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(Download Factual Basis - Ruben Jauregui )
Federal Grand Jury in San Antonio Indicts Three in Fraudulent U.S. Army Contracts SchemesRead the Press Release
A federal grand jury in San Antonio has returned an indictment charging two San Antonio area men and a Manhattan, KS, woman for their roles in a scheme to defraud the United States in connection with contracts worth millions of dollars’ for medical equipment and personnel training announced United States Attorney Robert Pitman.
The 40-count indictment, returned late yesterday, charges 42-year-old Lawrence Peter Fenti of New Braunfels, TX, 50-year-old Heidi Lynn Webster and 43-year-old John Walter Hoffman, owner/operator of Hoffman Surgical Devices, Inc. in San Antonio, with one count of conspiracy to commit wire fraud. Fenti is also charged with seven counts of bribery, seven counts of wire fraud, seven counts of making false statements to U.S. Army authorities, five counts of money laundering, four counts of making false claims against the U.S., four counts of participating in a government matter affecting personal interest and one count of impersonation of a U.S. Army officer. Webster is also charged with seven counts of bribery, seven counts of wire fraud, four counts of making false claims against the U.S., and four counts of participating in a government matter affecting personal interest. Hoffman is also charged with five counts of money laundering, two counts of wire fraud and two counts of making false statements to U.S. Army authorities.
According to the indictment, Fenti was a non-commissioned officer trained as a technician who worked in the radiology departments of various Army medical facilities including Irwin Army Medical Center at Fort Riley, KS, and Brooks Army Medical Center (BAMC) at Fort Sam Houston in San Antonio. In 2008, Fenti was selected as the non-commissioned officer in charge of Base Realignment and Closure issues for BAMC radiology. From 1995 until 2006, Webster was an Army officer physician specializing in radiology at BAMC and Irwin. In 2006, Webster was discharged from the Army but continued to work under a contract with the Army to provide radiology services at Irwin. In 2007 and 2008, Webster formed two KS corporations—MRI Resources, Inc. and Pro Veteran Staffing, Inc. Data Dynamics Inc. was a Grafton, ND, company engaged in the business of transcribing medical records. It was certified by the Small Business Administration as owned by a socially and economically disadvantaged person and was eligible to obtain certain federal contracts with, or with limited, competition.
The indictment alleges that since 2007, the defendants schemed to secure multiple Army contracts and sub-contracts for radiology equipment and services by using their positions of influence, taking advantage of Data Dynamics’ non-competitive bidding status, making false statements and fraudulent claims, as well as bribing Army personnel and Army contractors. Those contracts included a $2 million BAMC magnetic resonance imaging (MRI) contract in June 2008, a $4.9 million BAMC MRI contract in July 2008, a $633,406.69 BAMC staffing contract in September 2008, and a $336,600 MRI contract in September 2009 for Womack Army Medical Center at Fort Bragg, NC.
Once contracts were secured by a prime contractor, typically by Data Dynamics, the defendants allegedly stole money from the Army by causing the prime contractor to overcharge the Army and then submitted substantially overinflated invoices from MRI Resources or Pro Veteran Staffing to prime contractors, allowing the defendants’ companies to collect monies that had not been earned.
Upon conviction, defendants face up to 20 years imprisonment for each bribery, money laundering and wire fraud count; up to five years imprisonment for each conspiracy, false statement and false claim count; and, up to three years imprisonment for the impersonation of a U.S. Army officer. The indictment also seeks a monetary judgment against Webster in the amount of $613,828 and Fenti in the amount of $542,485.35, representing the amount of proceeds obtained directly or indirectly as a result of their fraudulent scheme.
This indictment resulted from an investigation conducted by the U.S. Army Criminal Investigations Division. Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.