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16 July 2013
Providence Gang Member Sentenced to Federal Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Nimera Seng, 31, of Providence, a member of the Providence Street Boyz, a Providence street gang, was sentenced today to 30 months in federal prison for being in possession of a loaded 9mm handgun after having been convicted of a domestic violence charge, announced United States Attorney Peter F. Neronha, Kenneth J. Croke, Acting Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Seng to serve 3 years of supervised release upon completion of his prison term. Seng pleaded guilty on April 15, 2013, as charged in an indictment returned on September 12, 2012, to one count of possession of a firearm by an individual convicted of a misdemeanor crime of domestic violence.
According to information presented to the court, a court authorized search of Seng’s residence on September 12, 2012, by ATF agents and Providence Police, resulted in the seizure of a 9mm handgun loaded with 17 rounds of ammunition. Seng admitted to the court that the firearm, which was discovered stashed in a bedroom bureau wedged alongside a drawer, belonged to him. Seng told police that he had purchased the gun on the street for $600 for protection.According to information presented to the court, Seng’s residence had previously been shot at on multiple occasions; and that multiple firearms had been seized from the residence in the past.
According to information on file with the court, in 2005, Seng was convicted in Rhode Island state court on a charge of domestic assault.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Contact: 401-709-5357
[email protected]Pizza Franchise Owner and Four Others Indicted for Tax FraudRead the Press Release
The Justice Department announced today that Happy Asker, franchise owner of multiple “Happy’s Pizza” franchises, was indicted by a federal grand jury in Detroit along with Maher Bashi, Tom Yaldo, Arkan Summa and Tagrid Bashi for multiple tax offenses arising from a conspiracy to underreport taxable income and payroll taxes of nine Happy’s Pizza franchises. All defendants with the exception of Happy Asker were arrested.
A multiple count indictment was unsealed in the Eastern District of Michigan charging Happy Asker, Maher Bashi and Tom Yaldo with conspiracy to defraud the United States by keeping fraudulent accounting records and falsely reporting income taxes and payroll taxes due and owing.
The indictment alleges that from approximately June 2004 through April 2011, the defendants conspired with each other to divert business receipts, underreport wages and understate the true income and expenses of specified Happy’s Pizza franchises. According to the indictment, the scheme resulted in the specified franchises paying more than $2.1 million in unreported wages to employees and shareholders
Additional charges in the indictment include three counts of filing a false individual income tax return as to Happy Asker; 21 counts of aiding in the filing of false payroll tax returns as to Happy Asker and Maher Bashi; 23 counts of aiding in the filing of false payroll tax returns as to Tom Yaldo on behalf of specified Happy’s Pizza franchises; and 11 counts as to Happy Asker and Maher Bashi for aiding in filing false corporate tax returns on behalf of specified Happy’s Pizza franchises.
Finally, the indictment also charges Happy Asker and Maher Bashi with one count of obstructing the due administration of the internal revenue laws. Arkan Summa and Tagrid Bashi are also charged together in a count of obstructing the due administration of the internal revenue laws and Tom Yaldo is also charged with one count of obstructing the due administration of the internal revenue laws.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted of the conspiracy charge, the defendants face up to 5 years in prison and a $250,000 fine. The charges of filing a false income tax return and aiding or assisting in filing a false return carry a maximum penalty of three years in prison and a fine of $250,000 for each count. The obstruction charge carries a maximum penalty of three years in prison and a fine of $250,000 for each count.
This case was investigated by Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration and the FBI and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Related Materials:
United States v. Happy Asker, et al.
Indictment ((PDF)Pill Mill Doctor Pleads Guilty to Oxycodone ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced today that Dr. Scott Becker, 54, of Pembroke Pines, Florida, pleaded guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Becker also pleaded guilty to money laundering. Becker faces maximum terms of imprisonment of five years on the drug conspiracy charge and ten years on the money laundering charge.
According to the terms of the plea agreement, Becker agreed to forfeit $470,400 in money and property representing the illegal narcotics proceeds he earned as a result of his involvement as a physician at All Pain Management in Dania Beach. As set forth in the plea agreement, between February 16 and September 17, 2010, Becker was employed as a clinic doctor at All Pain Management which, at the time, was owned by co-conspirators Vincent Colangelo and several other unnamed individuals. Colangelo pleaded guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and a pharmacy in Broward and Miami-Dade Counties. According to a review of medical records, while at All Pain Management, Becker prescribed 932,259 oxycodone, 30 milligram pills during the course of 4,821 patient visits and more than 98% of Becker’s patients received prescriptions for oxycodone. Becker also laundered approximately $24,142 in illegal narcotics proceeds.
Today’s case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer thanked the DEA, IRS-CI and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case is being prosecuted by Assistant U.S. Attorneys Scott Behnke and Roger Powell and Tax Division Trial Attorney Greg Tortella.
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.
Philadelphia Man Charged Robbing Haverford Jewelry StoreRead the Press Release
Stephen Easterling, 28, of Philadelphia, Pennsylvania was charged by Information today with one count of Hobbs Act Robbery, announced United States Attorney Zane David Memeger. According to the indictment, the defendant attempted to rob K/V Jewelers, Inc., trading as Main Line Jewelers, located at 7553 Haverford Avenue, Philadelphia, Pennsylvania on February 1, 2013.
If convicted, the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $250,000 fine, restitution, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia La Cosa Nostra Member Sentenced to <br /> 137 Months in PrisonRead the Press Release
Damion Canalichio was sentenced today to serve 137 months in prison for his participation in a racketeering conspiracy involving loan sharking and illegal gambling, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division.
Canalichio, 43, of Turnersville, N.J., was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Canalichio was sentenced to serve three years of supervised release.
On Feb. 5, 2013, after a four-month trial, a jury convicted Canalichio of conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. The evidence at trial proved that, in furtherance of the racketeering conspiracy, Canalichio, as a “made” member, engaged in loan sharking and illegal sports bookmaking activities on behalf of the mob. Canalichio exploited the violent reputation of the Philadelphia LCN Family in extending usurious loans and collecting payments on the loans, leaving the borrowers in fear of physical harm if they did not pay promptly. Canalichio also directed and supervised the participation of associates in his crew to carry out these racketeering crimes.
A total of 12 leaders, members and associates of the Philadelphia LCN Family have pleaded guilty or been convicted by a jury as part of this case. Seven of the defendants, including Canalichio, have been sentenced, and five are awaiting sentencing.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being investigated by the FBI, Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, New Jersey State Police, Philadelphia Police Department, U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.Pennsylvania Man Sentenced for Terrorist Solicitation and Firearms OffenseRead the Press Release
Emerson Winfield Begolly, 24, of New Bethlehem, Penn., was sentenced today in Pittsburgh to 102 months in prison for soliciting others to engage in acts of terrorism within the United States and for using a firearm during and in relation to an assault on FBI agents.
In addition, he was sentenced to serve five years supervised release. Begolly pleaded guilty on Aug. 9, 2011, to charges filed in the Eastern District of Virginia and the Western District of Pennsylvania.
The sentence was announced by David J. Hickton, U.S. Attorney for the Western District of Pennsylvania; Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gary Perdue, Special Agent in Charge of the FBI’s Pittsburgh Division.
“Emerson Begolly used the Internet to solicit likeminded radical jihadists to commit atrocities and murder,” stated U.S. Attorney Hickton. “Through effective use of court-sanctioned investigative tools, mass tragedy was averted.”
“We now find ourselves in an era where one of the greatest innovations of the modern era – the Internet—is being utilized by radical jihadists who seek to use that medium to endanger American lives,” said U.S. Attorney MacBride. “Those, like Mr. Begolly, who solicit others to engage in acts of terrorism will be brought to justice and prosecuted to the fullest extent of law.”
“This case highlights the need for continued vigilance against homegrown extremism and use of the Internet to incite violence,” said Acting Assistant Attorney General Carlin. “I want to thank the agents, analysts and prosecutors whose work resulted in today’s sentence.”
“Today’s sentence is the result of the effective coordination and enduring resolve of law enforcement to protect our citizens,” said Assistant Director Parlave. “Together with our partners, we will continue to work to combat the threat of violent homegrown extremism and keep our country safe.”
“The case against Mr. Begolly is an important reminder that online-inspired terrorism can occur anywhere, including Western Pennsylvania. Our efforts to detect and disrupt this threat are enduring,” said Special Agent in Charge Perdue. “The FBI, along with our law enforcement partners in the FBI Joint Terrorism Task Force, will continue to proactively employ all necessary resources in order to predict and prevent terrorist attacks from occurring and to ensure the ongoing safety of our communities.”
According to information presented by the government in court, Begolly was an active administrator on the Ansar al-Mujahideen English Forum (AMEF), which is an internationally used Islamic extremist Internet forum. Using the pseudonym of Abu Nancy, Begolly systematically solicited jihadists to use firearms, explosives and propane tanks against targets such as police stations, post offices, Jewish schools and daycare centers, military facilities, train lines, bridges, cell phone towers and water plants.
In the summer of 2010, Begolly urged jihadists on the AMEF to “write their legacy in blood.” Begolly promised a special place in the afterlife for violent action in the name of Allah. Following the reported shootings in Northern Virginia at the Pentagon and the Marine Corps Museum in October 2010, Begolly posted a comment online that praised the shootings and hoped the shooter had followed his previous postings encouraging similar acts of violence. On Dec. 28, 2010, Begolly further solicited his AMEF audience to violence by posting a manual on how to manufacture a bomb.
Days later, on Jan. 4, 2011, FBI agents were assaulted by Begolly as they attempted to prevent him from reaching a loaded 9 mm semi-automatic handgun, which he had concealed on his body. While violently struggling with the agents, Begolly bit the agents on their fingers in an attempt to free himself to reach his firearm. His actions are consistent with a posting in which he urged his audience not to be taken alive by law enforcement, to always carry a loaded firearm, and to aggressively resist any law enforcement encounter including biting fingers if necessary.
These cases were investigated by the FBI Washington Field Office and the FBI Pittsburgh Field Office. Assistant U.S. Attorney Neil Hammerstrom of the U.S. Attorney’s Office for the Eastern District of Virginia’s National Security and International Crime Unit, Assistant U.S. Attorney James Kitchen of the U.S. Attorney’s Office for the Western District of Pennsylvania’s National Security and Cybercrime Section, and Trial Attorney Stephen Ponticiello of the Counterterrorism Section in the Justice Department’s National Security Division are prosecuting the cases.
Pennsylvania Man Sentenced to Two Years in Prison for Selling Thousands of Dollars Worth of Firearms to New Jersey ResidentRead the Press Release
NEWARK, N.J. – A Pennsylvania man was sentenced today to 24 months in prison for illegally selling firearms and ammunition on multiple occasions for thousands of dollars in cash, U.S. Attorney Paul J. Fishman announced.
Eduardo Velasquez, 63, of Reading, Pa., previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of illegally dealing in firearms. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Velasquez admitted that he traveled from Pennsylvania to Jersey City, N.J., on five separate occasions, between July 5, 2012, and Oct. 18, 2012, for the purpose of selling firearms. Velasquez sold 11 firearms to a New Jersey resident for more than $9,000. The firearms sold by Velasquez included: (1) two SKS 39 mm rifles; (2) a Mossberg Model 88 shotgun; (3) a Winchester Model 1300 12-gauge shotgun; (4) a Mossberg Model 190 16-gauge shotgun; (5) a stolen Ruger 9 mm semi-automatic handgun; (7) a Smith & Wesson .41 caliber revolver; (8) a Taurus PT917 9 mm semi-automatic pistol; (9) a Desert Eagle .44 caliber semi-automatic pistol; and (10) a Smith & Wesson SW99 .40 caliber handgun.
Velasquez sold multiple high-capacity magazines and more than 80 rounds of ammunition, including several hollow-point bullets. Velasquez indicated to the buyer that he often shipped firearms to the Dominican Republic, and could procure additional long guns, such as double-barrel shotguns and military rifles.
In addition to the prison term, Judge Walls sentenced Velasquez to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
13-288Defense counsel: Tomas Espinosa Esq. Union City, N.J.
Pennsylvania Man Sentenced for Terrorist Solicitation and Firearms OffenseRead the Press Release
WASHINGTON – Emerson Winfield Begolly, 22, of New Bethlehem, Penn., was sentenced today in Pittsburgh to 102 months in prison for soliciting others to engage in acts of terrorism within the United States and for using a firearm during and in relation to an assault on FBI agents.
In addition, he was sentenced to serve five years supervised release. Begolly pleaded guilty on Aug. 9, 2011, to charges filed in the Eastern District of Virginia and the Western District of Pennsylvania.
The sentence was announced by David J. Hickton, U.S. Attorney for the Western District of Pennsylvania; Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gary Perdue, Special Agent in Charge of the FBI’s Pittsburgh Division.
“Emerson Begolly used the Internet to solicit likeminded radical jihadists to commit atrocities and murder,” stated U.S. Attorney Hickton. “Through effective use of court-sanctioned investigative tools, mass tragedy was averted.”
“We now find ourselves in an era where one of the greatest innovations of the modern era – the Internet—is being utilized by radical jihadists who seek to use that medium to endanger American lives,” said U.S. Attorney MacBride. “Those, like Mr. Begolly, who solicit others to engage in acts of terrorism will be brought to justice and prosecuted to the fullest extent of law.”
“This case highlights the need for continued vigilance against homegrown extremism and use of the Internet to incite violence,” said Acting Assistant Attorney General Carlin. “I want to thank the agents, analysts and prosecutors whose work resulted in today’s sentence.”
“Today’s sentence is the result of the effective coordination and enduring resolve of law enforcement to protect our citizens,” said Assistant Director Parlave. “Together with our partners, we will continue to work to combat the threat of violent homegrown extremism and keep our country safe.”
“The case against Mr. Begolly is an important reminder that online-inspired terrorism can occur anywhere, including Western Pennsylvania. Our efforts to detect and disrupt this threat are enduring,” said Special Agent in Charge Perdue. “The FBI, along with our law enforcement partners in the FBI Joint Terrorism Task Force, will continue to proactively employ all necessary resources in order to predict and prevent terrorist attacks from occurring and to ensure the ongoing safety of our communities.”
According to information presented by the government in court, Begolly was an active administrator on the Ansar al-Mujahideen English Forum (AMEF), which is an internationally used Islamic extremist Internet forum. Using the pseudonym of Abu Nancy, Begolly systematically solicited jihadists to use firearms, explosives and propane tanks against targets such as police stations, post offices, Jewish schools and daycare centers, military facilities, train lines, bridges, cell phone towers and water plants.
In the summer of 2010, Begolly urged jihadists on the AMEF to “write their legacy in blood.” Begolly promised a special place in the afterlife for violent action in the name of Allah. Following the reported shootings in Northern Virginia at the Pentagon and the Marine Corps Museum in October 2010, Begolly posted a comment online that praised the shootings and hoped the shooter had followed his previous postings encouraging similar acts of violence. On Dec. 28, 2010, Begolly further solicited his AMEF audience to violence by posting a manual on how to manufacture a bomb.
Days later, on Jan. 4, 2011, FBI agents were assaulted by Begolly as they attempted to prevent him from reaching a loaded 9 mm semi-automatic handgun, which he had concealed on his body. While violently struggling with the agents, Begolly bit the agents on their fingers in an attempt to free himself to reach his firearm. His actions are consistent with a posting in which he urged his audience not to be taken alive by law enforcement, to always carry a loaded firearm, and to aggressively resist any law enforcement encounter including biting fingers if necessary.
These cases were investigated by the FBI Washington Field Office and the FBI Pittsburgh Field Office. Assistant U.S. Attorney Neil Hammerstrom of the U.S. Attorney’s Office for the Eastern District of Virginia’s National Security and International Crime Unit, Assistant U.S. Attorney James Kitchen of the U.S. Attorney’s Office for the Western District of Pennsylvania’s National Security and Cybercrime Section, and Trial Attorney Stephen Ponticiello of the Counterterrorism Section in the Justice Department’s National Security Division are prosecuting the cases.
Passaic County, N.J., Man Sentenced to 15 Months in Prison for Importing and Selling Counterfeit MerchandiseRead the Press Release
NEWARK, N.J. – A Passaic County, N.J., man was sentenced today to 15 months in prison for importing and selling counterfeit merchandise, U.S. Attorney Paul J. Fishman announced.
Wesam Abedrabbo, 29, of Clifton, N.J., previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with trafficking in counterfeit goods. Judge Hayden imposed sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Abedrabbo admitted that from March 2010 through May 2012, he imported counterfeit merchandise from Asian locations, including China, Taiwan, and Japan, for resale in the United States. The counterfeit merchandise purported to be from companies including the North Face and UGG, and professional sports associations, such as the NFL, NHL, and MLB. Abedrabbo advertised the counterfeit merchandise on the Web site tophotnamebrands.com and sold the counterfeit merchandise on eBay. Abedrabbo also paid other individuals a commission to sell the counterfeit merchandise for him over the Internet. In connection with his illicit efforts, Abedrabbo sold more than $350,000 worth of counterfeit goods.
In addition to the prison term, Judge Hayden sentenced Abedrabbo to one year of supervised release. She also ordered Abedrabbo to forfeit $387,516, representing the gross proceeds of his sale of counterfeit merchandise.
U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Joseph B. Shumofsky of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Jay V. Surgent Esq., Lyndhurst, N.J.
13-289Owner and Operators of Gun Shop in Hobbs Arraigned on Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal grand jury has returned a seven-count indictment charging Carlos Jonathan Cruz, 30, the owner of Hobbs Satellite Company Guns & Ammo, and his parents, Carlos Carlon Cruz, 59, and Norma M. Cruz, 56, with violations of the federal firearms laws. The three defendants were arraigned on the indictment today in Las Cruces federal court and entered not guilty pleas. They were released under pretrial supervision pending trial of the case.
Counts 1 and 2 of the indictment allege that on two occasions in April 2013, the three defendants made false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser” and buying firearms on behalf of others. Counts 3 and 4 charge Carlos Jonathan Cruz with unlawfully selling thousands of rounds of ammunition to an individual whom he had reason to believe was an alien illegally in the United States in April 2013 and May 2013. Count 5 charges Carlos Jonathan Cruz with unlawfully possessing an unregistered sawed-off shot gun and Counts 6 and 7 charge him with unlawfully possessing firearms with obliterated serial numbers in May 2013. The indictment alleges that all seven offenses were committed in Lea County, N.M.
Counts 1, 2, 6 and 7 of the indictment each carry a maximum possible sentence of five years in prison on conviction. Counts 3, 4 and 5 each carry a maximum penalty of ten years in prison on conviction. Charges in indictments are merely accusations and defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Drug Enforcement Administration and the Hobbs Police Department, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Ocean County, N.J., School Bus Driver Sentenced to 10 Years in Prison for Distributing Images of Child Sexual Abuse over InternetRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., school bus driver was sentenced today to 120 months in prison for distributing images of child sexual abuse over the internet through his home computer, U.S. Attorney Paul J. Fishman announced.
Frank J. Bognar, 31, of Jackson, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court: As early as Oct. 27, 2011, Bognar downloaded and distributed videos and images of child pornography on the Internet via a peer-to-peer file sharing network, through which others had access to the material on a shared drive. The FBI seized a computer containing videos and photographs of child sexual abuse, including images of sadistic and masochistic conduct against children, during a search of his residence on Feb. 9, 2012. He was arrested later that day.
As part of his plea, Bognar agreed to surrender six firearms and assorted ammunition that were seized on the day of his arrest.In addition to the prison term, Judge Pisano sentenced Bognar to 10 years of supervised release and ordered to pay $2,000 in restitution.
U.S. Attorney Fishman credited the FBI Cyber Crimes Task Force in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing. He also thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato; the Jackson Township Police Department, under the direction of Chief of Police Matthew D. Kunz; and the Essex County Prosecutor’s Office task force officers, under the direction of Acting Prosecutor Carolyn Murray, for their assistance.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender,Trenton
Newington Man Who Stole Firearms from Colebrook Residence Sentenced to 10 Years in PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHAEL KENNEDY, also known as “Chavo,” 26, of Newington, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 97 months of imprisonment, followed by 3 years of supervised release, for stealing, possessing and selling firearms. In issuing his sentence, Judge Chatigny gave KENNEDY credit for the 23 months he has already served in state prison for a total effective term of 120 months’ imprisonment.
According to court documents and statements made in court, on May 9, 2011, KENNEDY and Edward N. Ortiz, also known as “Heavy,” of New Britain, entered a residence in Colebrook and stole 12 firearms. The investigation has revealed that the majority of the stolen firearms were later sold to others, including street-level drug dealers.
Prior to May 2011, KENNEDY had been convicted of multiple felony offenses, including possession of narcotics, robbery, larceny and violation of a protection order.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
KENNEDY is currently detained. On February 5, 2013, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
On September 27, 2012, Ortiz pleaded guilty to one count of conspiracy to steal firearms and possess stolen firearms, and one count of possession of firearms by a previously convicted felon. He awaits sentencing and is also detained.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the New Britain Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
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(203) 821-3722 [email protected]New Arrest: DEA agents executed a search warrant this morning in Huntington Station, Long Island. Adrian Bonilla, 34, of Huntington Station was placed under arrest. the search yielded 11 kilos of cocaine and $3 million in USC.Read the Press Release
New Arrest: DEA agents executed a search warrant this morning in Huntington Station, Long Island. Adrian Bonilla, 34, of Huntington Station was placed under arrest. The search yielded 11 kilos of cocaine and $3 million in USC.
Moon Twp. Man Sentenced to 6 Years in Prison, Ordered to Pay Restitution for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been sentenced in federal court to 72 months imprisonment, followed by 15 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today. In advance of sentencing, Winter agreed to make a $2,000 restitution payment to the victim identified as "Vicky".
United States District Judge Terrence F. McVerry imposed the sentence on Lawrence M. Winter, 45.
According to information presented to the court, on or about Nov. 2, 2010, Winter, a former Allegheny County Jail guard, was found to be in unlawful possession of thousands of still images and hundreds of videos depicting the sexual exploitation of children, many of whom had not attained the age of 12 years and some of whom were depicted bound.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Moon Township Police Department for the investigation leading to the successful prosecution of Winter.
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.
Marine Police Commander Found Guilty in Miramar Bribery SchemeRead the Press Release
A federal jury convicted former U. S. Marine Sergeant Luis Gilbert Menchaca of conspiracy and false claims in connection with a fraud and bribery scheme at Marine Corps Air Station (MCAS) Miramar in San Diego, California. As part of the scheme, Menchaca – while serving as a watch commander for the military police at Miramar – paid thousands of dollars of bribes to another Marine in order to obtain tens of thousands of dollars in fraudulent lodging reimbursements.
Last year, Menchaca was charged in an indictment with one count of conspiracy and three counts of false claims. The case was tried before a jury beginning on Monday, July 15, 2013. This afternoon, after less than 30 minutes of deliberations, the jury returned a verdict of guilty on all counts.
The evidence presented at trial showed that Menchaca first joined the Marine Corps in 1998, and after an initial four-year term, was discharged and entered the Marine Corps Reserve. From time to time thereafter, Menchaca, who had attained the rank of Sergeant, received orders placing him on active duty. In connection with his mobilization orders, Menchaca became eligible to receive certain travel payments, including lodging reimbursement and a per diem allowance, for the entire duration of his active duty service. These travel payments were in addition to the compensation and basic housing allowance (“BAH”) that he, like other Marines, received.
The evidence at trial showed that in May 2007, after being placed on active duty at Miramar, Menchaca entered into a conspiracy with another Miramar Marine, Manuel Ramos-Padilla. Ramos worked in an administrative office at Miramar that processed travel claims for reservists like Menchaca. In connection with the scheme, Menchaca and Ramos agreed to submit falsely completed travel vouchers that claimed reimbursement for thousands of dollars in lodging expenses that Menchaca had not incurred or paid. In addition to submitting these false travel vouchers, the conspirators submitted a fake rental receipt, for an address on Mission Village Drive in San Diego. In fact, the address listed on the fake receipt did not exist.
Menchaca and Ramos repeated the scheme month after month, for a period of ten months. In total, Menchaca submitted approximately $38,000 in false lodging claims. The proceeds of the scheme were deposited directly into Menchaca’s bank account every month.
In exchange for Ramos’s part in the conspiracy, Menchaca made cash payments to Ramos of up to $1,000 per month. On occasion, Menchaca also paid bribes to Ramos of up to $1,500 in the form of personal checks.
While on active duty with the Marine Corps, Menchaca spent over four years in the military police. During the time period of the fraud, Menchaca served as a watch commander within the military police. In that role, he supervised patrol supervisors, who in turn supervised lower-ranking military police officers. Menchaca had responsibilities for overseeing the enforcement of federal laws, including the Uniform Code of Military Justice; as well as for enforcing the California Vehicle Code and Miramar regulations.
United States Attorney Duffy stated, “Investigating and prosecuting bribery is one of our top priorities. With our nation’s military budget strained to the breaking point, we cannot afford to allow public corruption to drain much-needed U. S. Marine Corps resources.”
Menchaca’s case is set for sentencing on October 4, 2013, before U. S. District Judge Dana M. Sabraw.
Menchaca’s co-conspirator, Manuel Ramos-Padilla, pled guilty on April 9, 2013 to conspiring to commit bribery and make false claims. Ramos’s case is set for sentencing on August 9, 2013, also before Judge Sabraw.
DEFENDANTS
Case Number: 12cr5099-DMS Manuel Ramos-Padilla
Luis Gilbert Menchaca SUMMARY OF CHARGESConspiracy to commit bribery and make false claims, in violation of Title 18, United States Code, Section 371 (Menchaca and Ramos) - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.
Three counts of false claims, in violation of Title 18, United States Code, Section 287 (Menchaca) - Maximum penalties (per count): Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYNaval Criminal Investigative Service
MS-13 Members Convicted in Atlanta for Murders <br /> and Attempted MurdersRead the Press Release
After a four-week trial, a federal jury has convicted Miguel Alvarado-Linares, Ernesto Escobar, Dimas Alfaro-Granados and Jairo Reyna-Ozuna for committing multiple murders, attempted murders, armed robberies and firearms offenses in Gwinnett and DeKalb Counties.
The convictions were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Northern District of Georgia Sally Quillian Yates; Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE) – Homeland Security Investigations (HSI) in Atlanta; and Mark F. Giuliano, Special Agent in Charge of the FBI Atlanta Field Office.
Miguel Alvarado-Linares, aka “Joker,” 24, of Norcross, Ga.; Ernesto Escobar, aka “Pink Panther,” 30, of Norcross; Dimas Alfaro-Granados, aka “Toro,” 30, of Duluth, Ga.; and Jairo Reyna-Ozuna, aka “Flaco,” 28, of Norcross, were convicted late yesterday in U.S. District Court in the Northern District of Georgia.
“These four MS-13 members committed a host of brutal crimes that devastated countless lives in Northern Georgia,” said Acting Assistant Attorney General Raman. “As a result of the tireless work by the prosecutors and investigators who tackled this case, the defendants will be removed from the streets they have terrorized.”
“These defendants were the leaders of MS-13, an international gang known for its gratuitous murders,” said U.S. Attorney Yates. “They spread fear throughout the community by killing suspected rival gang members and others who cross their path. We will continue to work with our law enforcement partners to protect our streets from turning into battlegrounds.”“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of Atlanta communities.”
“Removing these violent gang members from the streets of metro Atlanta not only makes for a safer community but further weakens the Southeastern U.S. roots of this international criminal enterprise known as MS-13,” said Special Agent in Charge Mark F. Giuliano of the FBI Atlanta Field Office. “The FBI will continue to work with its various law enforcement partners in targeting this group, and others like them, in a unified and effective manner.”
According to the charges and other information presented in court, MS-13 is an international gang that has operated in the Atlanta area since at least 2005. During the course of this investigation, which ended in 2010, more than 75 MS-13 members were arrested, charged and/or deported. MS-13 members were organized into “cliques,” or groups, but they operated under the larger umbrella of MS-13. Each clique had a leader, usually referred to as “the first word,” who conducted weekly meetings, where members discussed their crimes against rival gang members and their plans to retaliate against their rivals. The clique leader collected dues from the gang members and used the money to buy guns and post bail for jailed members. Some of the money was sent back to the MS-13 leaders in El Salvador and Honduras. Clique leaders communicated with MS-13 leaders in their home countries to update them on gang activities in the Atlanta area. The gang members staked out Gwinnett and DeKalb Counties as their home territory, where they committed murders, attempted murders and armed robberies. They also sold cocaine as part of their gang activity.
The evidence presented at trial showed that the defendants committed the following crimes:
• Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006. Ko was a fellow MS-13 member, but Alvarado-Linares, one of the gang leaders, thought that Ko was cooperating with police and ordered his murder.
• In December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13. On Christmas Eve 2006, that gang member, following orders, shot at a car on Highway 316 that he believed contained rival gang members. The passenger, Angel Gonzalez, was murdered. He was 20 years old.
• On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged gang hand signs and insults with two members of the rival gang SUR-13. Alvarado-Linares then pulled out a gun and shot the men.
• In August 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County. Escobar reported the incident to Reyna-Ozuna, who was the gang leader at the time. Reyna-Ozuna gave Escobar a .45 caliber semi-automatic handgun to retaliate. Escobar went back to the Shell station and shot and killed one of the teenagers as he was painting lines in the parking lot. The victim was only 16 years old.
• In October 2007, Alvarado-Linares was in Gwinnett County and came across a suspected member of the 18th Street gang. Alvarado fired a shotgun and killed the victim, who was 15 years old.
Alvarado-Linares, Escobar and Alfaro-Granados were convicted of RICO conspiracy involving murder, which carries a maximum penalty of life in prison. Reyna-Ozuna was convicted of RICO conspiracy, which carries a maximum penalty of 20 years in prison. Alvarado-Linares, Escobar and Alfaro-Granados were also convicted of committing violent crimes in aid of racketeering, which carries a mandatory sentence of life in prison. All of the defendants were convicted of firearms offenses, which carry a sentence of up to and including life in prison. There is no parole in the federal system.
The sentencing for the four defendants will be scheduled at a later date before U.S. District Judge Richard W. Story in the Northern District of Georgia.
This case is being investigated by Special Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Norcross Police Department, Chamblee Police Department and Gwinnett County Sheriff’s Office.
Assistant U.S. Attorneys Paul R. Jones and Kim S. Dammers of the Northern District of Georgia and Trial Attorney Joseph K. Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
MS-13 Members Convicted for Murders and Attempted MurdersRead the Press Release
Gang Wreaked Havoc in Gwinnett and DeKalb Counties
ATLANTA – After a four-week trial, a federal jury has convicted Miguel Alvarado-Linares, Ernesto Escobar, Dimas Alfaro-Granados, and Jairo Reyna-Ozuna, for committing multiple murders, attempted murders, armed robberies, and firearms offenses in Gwinnett and DeKalb counties.
“The defendants were the leaders of MS-13, an international gang known for its gratuitous murders,” said United States Attorney Sally Quillian Yates. “They spread fear throughout the community by killing suspected rival gang members and others who cross their path. We will continue to work with our law enforcement partners to protect our streets from turning into battlegrounds.”
“These four MS-13 members committed a host of brutal crimes that devastated countless lives in Northern Georgia,” said Acting Assistant Attorney General Raman. “As a result of the tireless work by the prosecutors and investigators who tackled this case, the defendants will be removed from the streets they have terrorized.”
“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of Atlanta communities.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, said: “Removing these violent gang members from the streets of metro Atlanta not only makes for a safer community but further weakens the Southeastern U.S. roots of this international criminal enterprise known as MS-13. The FBI will continue to work with its various law enforcement partners in targeting this group, and others like them, in a unified and effective manner.”
According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang that has operated in the Atlanta area since at least 2005. During the course of this investigation, which ended in 2010, more than 75 MS-13 members had been arrested, charged, and/or deported. MS-13 members were organized into “cliques,” or groups, but they operated under the larger umbrella of MS-13. Each clique had a leader, usually referred to as “the first word,” who conducted weekly meetings. At these meetings, members discussed their crimes against rival gang members and their plans to retaliate against their rivals. The clique leader collected dues from the gang members. The leaders used the money to buy guns and post bail for jailed members. Some of the money was sent back to the MS-13 leaders in El Salvador and Honduras. Clique leaders communicated with MS-13 leaders in their home countries to update them on gang activities in the Atlanta area. The gang members staked out Gwinnett and DeKalb Counties as their home territory, where they committed murders, attempted murders, and armed robberies. They also sold cocaine as part of their gang activity. The evidence presented at trial showed that the defendants committed the following crimes:
- Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006. Ko was a fellow MS-13 member, but Alvarado-Linares, one of the gang leaders, thought that Ko was cooperating with police and ordered his murder.
- In December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13. On Christmas Eve 2006, that gang member, following orders, shot at a car on Highway 316 that he believed contained rival gang members. The passenger, Angel Gonzalez, was murdered. He was 20 years old.
- On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged gang hand signs and insults with two members of the rival gang SUR-13. Alvarado-Linares pulled out a gun and shot the men.
- In August 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County. Escobar reported the incident to Reyna-Ozuna, who was the gang leader at the time. Reyna-Ozuna gave Escobar a .45 caliber semi-automatic handgun to retaliate. Escobar went back to the Shell station and shot one of the teenagers as he was painting lines in the parking lot. The victim, David Hernandez, was only 16 years old.
- In October 2007, Alvarado-Linares was in Gwinnett County and came across a suspected 18th Street member. Alvarado fired a shotgun and killed Pablo Archila-Baires. Archila-Baires was only 15 years old.
The sentencing for Miguel Alvarado-Linares, a/k/a Joker, 24, of Norcross, Ga., Ernesto Escobar, a/k/a Pink Panther, 30, of Norcross, Ga., Dimas Alfaro-Granados, a/k/a Toro, 30, of Duluth, Ga., and Jairo Reyna-Ozuna, a/k/a Flaco, 28, of Norcross, Ga., will be scheduled at a later date before United States District Judge Richard W. Story. Alvarado-Linares, Escobar and Alfaro-Granados were convicted of RICO conspiracy involving murder, which carries a sentence up to and including life. Reyna-Ozuna was convicted of RICO conspiracy, which carries a sentence of up to 20 years. Alvarado-Linares, Escobar and Alfaro-Granados were also convicted of committing Violent Crime in Aid of Racketeering, which carries a mandatory sentence of life in prison. All of the defendants were convicted of firearms offenses, which carry a sentence of up to and including life. Parole has been abolished in the federal system.
This case is being investigated by Special Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Norcross Police Department, Chamblee Police Department, and Gwinnett County Sheriff’s Office.
Assistant United States Attorneys Paul R. Jones and Kim S. Dammers and U.S. Department of Justice, Organized Crime and Gang Section, Trial Attorney Joseph K. Wheatley are 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 Home Page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lynn Man Sentenced to 15 Years on Drug, Firearm ChargesInvestigation Revealed Plot to Kill A Lynn Police OfficerRead the Press Release
BOSTON – A Lynn man, who discussed murdering a Lynn police officer, was sentenced late yesterday to 188 months in prison.
U.S. District Judge Denise J. Casper sentenced Modesto Cruz, 37, to 188 months in prison, followed by four years of supervised release. In March, Cruz pleaded guilty to conspiracy to distribute more than 100 grams of heroin, distribution of heroin, and being a felon in possession of a firearm.
In 2012, while Cruz was on pretrial release from a 2010 Lynn gun arrest, a cooperating witness working with the FBI’s North Shore Gang Task Force made four controlled buys of over 100 grams of heroin from Cruz. During the course of those recorded buys, Cruz and the cooperating witness talked about Cruz’s plan to kill one of the Lynn police officers that had arrested him on the gun charge. An undercover law enforcement officer, posing as a hitman, was ultimately introduced to Cruz by the cooperating witness. Cruz and the undercover talked about the price and logistics of the hit on the police officer. Cruz was arrested the next day.
United States Attorney Carmen M. Ortiz; Jeffrey S. Sallet, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan Blodgett; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; Lynn Police Chief Kevin Coppinger; and Essex County Sheriff Frank G. Cousins, Jr. made the announcement today.
The case was investigated by the FBI’s North Shore Gang Task Force, which consists of the FBI, the ATF, the Massachusetts State Police, the Lynn, Chelsea and Revere Police Departments, and the Essex County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorneys in Ortiz’s Organized Crime and Gang Strike Force Unit.
Lower Brule Woman Sentenced for Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Deborah Beardsley, age 50, of Lower Brule, South Dakota, pled guilty to a Superseding Information that charged her with Simple Assault.
Beardsley was sentenced on July 15, 2013, by U.S. Magistrate Judge Mark A. Moreno to 6 months of imprisonment and a $10 special assessment to the Federal Crime Victims Fund.
The charge stems from an incident occurring on February 12, 2013, when Beardsley and her uncle were drinking together and an argument ensued about Beardsley’s daughter. Beardsley became upset at the victim and retrieved a butcher knife, raised it shoulder high and swung it down in an attempt to stab the victim. The victim was able to avoid being stabbed, but both parties have stipulated that Beardsley swung the knife with the intent to do bodily harm to the victim.
The investigation was conducted by the Bureau of Indian Affairs, and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Beardsley was immediately turned over to the custody of the U.S. Marshals Service.Local Couple Indicted on Charges of Selling Stolen MerchandiseRead the Press Release
St. Louis, MO – CHRISTIAN OUNANIAN and GINA VOGEL were indicted on charges of selling merchandise stolen from Walgreens and CVS drug stores.
According to the indictment, Ounanian owned Xtra Wholesale in St. Louis City. Between 2007 and September 2012, Ounanian and Vogel hired people to steal over the counter drugs and other items from Walgreens and CVS stores. The shoplifters were paid for the items and Ounanian and Vogel conspired to resell the items.
Ounanian and Vogel, both of St. Louis City, were each indicted by a federal grand jury on one felony count of conspiracy to transmit stolen goods and one felony count of interstate transportation of stolen goods. They are expected to appear in federal court later this week.
If convicted, conspiracy to transmit stolen goods carries a maximum penalty of five years in prison and/or fines up to $250,000. Interstate transportation of stolen goods carries a maximum of 10 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 Federal Bureau of Investigation. Assistant United States Attorney Anthony Franks 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.
Leader in Bank Fraud Scheme Sentenced to PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Lemoyne Veney, age 44, of Clarksville, Maryland, today to 51 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft. Judge Bennett also ordered Veney to pay restitution of $87,928.16.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office; and Harford County Sheriff L. Jesse Bane.
According to his plea agreement, from November 2007, through February 2011, Veney conspired with Theresa Smithrick, Kevin Pittman, and others in a scheme to use stolen personal identifying information (PII) to fraudulently obtain money from financial institutions. Specifically, in 2010 Veney met Smithrick, who was employed as a clerk at the Baltimore City District Court. Veney asked Smithrich to help him to gather personal identifying information, which she agreed to do. On approximately eight occasions, Veney gave Smithrick a sheet with eight to 10 names and accompanying PII, with some fields missing, such as driver’s license number, date of birth, or middle name. Smithrick completed the missing fields by accessing a secure Maryland Motor Vehicle Administration database and faxed the completed sheets to another co-conspirator, as directed by Veney. The co-conspirator who received the completed sheets provided driver’s licenses to Veney in exchange for the PII. In turn, Veney and other co-conspirators used the stolen PII, as well as the counterfeit driver’s licenses, to perpetuate the scheme.
Veney also created false businesses and supporting business documents, which he shared with his co-conspirators, including Kevin Pittman, so that he and his co-conspirators might incorporate some of the fraudulent businesses with the Maryland Department of Assessments and Taxation (“MDAT”) and other states’ departments of state. Veney and a co-conspirator would either sell the business information to others, or keep the information and attempt to establish related business checking accounts.
For example, Veney provided Pittman with fake identification, counterfeit supporting business documents, and counterfeit checks that Veney made in his home, which contained the stolen PII of unwitting victims but the pictures of Veney, Pittman and other conspirators. Pittman then used the counterfeit documents and compromised identities provided by Veney to incorporate fraudulent businesses. Veney also established matching business checking accounts for those fraudulent businesses for use in the scheme. Veney drove Pittman to various financial institutions in Frederick, Columbia and other locations in Maryland, where Pittman used the fake documents to open business and personal bank accounts. Pittman deposited the counterfeit business checks into these fraudulently opened bank accounts, then withdrew the funds before the checks could be identified as fraudulent. Pittman was paid a commission for each transaction. Veney also drove Pittman to supermarkets, where they cashed counterfeit checks, or purchased gift cards and other merchandise, with counterfeit checks drawn on real persons’ accounts, using the fraudulent identification documents provided by Veney as proof of identity.
As a result of the scheme, more than 50 victims lost a total of at least $70,000.
Theresa Smithrick age 47, of Baltimore, and Kevin Pittman, now using the name “Breona Pittman,” age 34, of Chesapeake, Virginia, both pleaded guilty to their roles in the scheme. Smithrick was sentenced to three months of home detention followed by three months of probation and was ordered to pay restitution of $71,752.72. Pittman was sentenced to 39 months in prison and was ordered to pay restitution of $87,928.16.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Harford County Sheriff’s Office for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Mark W. Crooks, who prosecuted the case.
La Cosa Nostra Member Sentenced to 137 Months in PrisonRead the Press Release
PHILADELPHIA – Damion Canalichio, 43, of Turnersville, NJ, was sentenced today to 137 months in prison and a $1,000 fine for his participation in a racketeering conspiracy involving loan sharking and illegal gambling. In addition to his prison term, U.S. District Judge Eduardo C. Robreno ordered three years of supervised release.
On Feb. 5, 2013, after a four-month trial, a jury convicted Canalichio of conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. The evidence at trial proved that, in furtherance of the racketeering conspiracy, Canalichio, as a “made” member, engaged in loan sharking and illegal sports bookmaking activities on behalf of the mob. Canalichio exploited the violent reputation of the Philadelphia LCN Family in extending usurious loans and collecting payments on the loans, leaving the borrowers in fear of physical harm if they did not pay promptly. Canalichio also directed and supervised the participation of associates in his crew to carry out these racketeering crimes.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.The case is being prosecuted by Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole, and Trial Attorney John S. Han of the Department of Justice’s Organized Crime and Gang Section. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Quardale M. Lewis, 33, of Kansas City, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 15 years in federal prison without parole. Lewis was sentenced as an armed career offender due to his prior felony convictions.
On March 15, 2013 Lewis pleaded guilty to being a felon in possession of a firearm. Lewis admitted that he was in possession of a Hi-Point .45-caliber pistol on July 25, 2011. Lewis discarded the firearm while fleeing from police officers during a car stop.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lewis has two prior felony convictions for possession of a controlled substance with the intent to distribute as well as prior felony convictions for burning or exploding, endangerment of a child, assault, unlawful use of a weapon and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.KC Man Pleads Guilty to Resisting Federal OfficerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to resisting a federal officer after he threatened workers at a local Social Security office and fought with Federal Protective Service (FPS) security officers.
Leonard C. Williams, 46, of Kansas City, pleaded guilty before U.S. District Judge Greg Kays to the charge contained in a Sept. 4, 2012 federal indictment.
Williams entered the Social Security Administration office at 2021 Independence Ave., Kansas City, on Aug. 1, 2012. Williams was upset about a letter he had received and repeatedly told an employee that he would return with a gun. Employees then called for the assistance of the FPS officers.
FPS officers ordered Williams, who was leaving the building, to stop. He ignored the order, and when an officer attempted to handcuff Williams he resisted. Williams shoved the officer and struck him in his struggle to resist detention and leave the office. Officers brought Williams to the ground and he began kicking. An officer sprayed him with pepper spray as he continued kicking, striking several officers. When officers handcuffed Williams, he became compliant. Williams threatened to return and shoot the officers in the back.
During the struggle to detain Williams, one officer sustained a cut above his left eyebrow and a contusion of the abdominal wall. Another officer sustained a laceration on his neck, and another sustained an elbow abrasion.
As a result of Williams’ actions, the Social Security office was shut down for the remainder of the afternoon of Aug. 1, 2012, and was closed the entire next day.
Under federal statutes, Williams is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Kate Hoey. It was investigated by the Federal Protective Service.
Irene Paster and Yolanda Paster Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Butte, on July 11, 2013, before U.S. District Judge Sam E. Haddon, IRENE PASTER, age 65, and YOLANDA PASTER, age 40, residents of Big Sky, pled guilty to willful failure to file a tax return. Sentencing has been set for October 25, 2013. They are currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Chad C. Spraker, the government stated it would have proved at trial the following:
A married person filing a joint return must file a tax return if his or her income exceeds $18,700 in gross income for the 2009 calendar year. During the 2009 calendar year, IRENE PASTER and her spouse had gross income totaling $91,322.
IRENE filed an extension of time to file an IRS Form 1040 for the 2009 tax year, which created an extension date of October 15, 2010. IRENE however, willfully failed to file a 2009 return on or before October 15, 2010.
An unmarried person, who is not a surviving spouse or head of household, must file a tax return if his or her income exceeds $9,350 in gross income for the 2009 calendar year. During the 2009 calendar year, YOLANDA PASTER, Irene's daughter, had a gross income totaling $60,413.
YOLANDA filed an extension of time to file an IRS Form 1040 for the 2009 tax year, which created an extension date of October 15, 2010. YOLANDA, however, willfully failed to file a 2009 return on or before October 15, 2010.
They each possible penalties of 1 year in prison, a $100,000 fine and 1 year supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Criminal Investigation Division of the Internal Revenue Service, and the U.S. Secret Service.
Investigation Leads to Indictment of Eleven People on Federal Gun and Drug ChargesRead the Press Release
Six People Arrested Today With the Help of FBI SWAT
BOISE – U.S. Attorney Wendy J. Olson announced the arrests earlier today of Jeramie Ethan Mahler, 26, of Star, Idaho; Michelle Christina Ritch, 35, Nearia “Nick” William Pinnell, 42, Wendy Demirdjian Harrison, 52, and Daniel Eric Vaughan, 51, all of Nampa, Idaho; and Scott Vicente Hernandez, 42, of Oakland, California, on federal charges of conspiring to distribute methamphetamine. The Treasure Valley Metro Violent Crimes Task Force, assisted by FBI SWAT, executed the federal arrest warrants today at four Treasure Valley locations.
On July 9, 2013, a federal grand jury in Boise returned a superseding indictment charging eleven defendants, including the six named above, with conspiracy to distribute over 500 grams of methamphetamine; two defendants also face charges for illegally possessing firearms. Hernan Gomez-Gutierrez, 30, a Mexican national, and Carlos Eberardo Tovar, 28, of Nampa, charged in the original indictment filed on May 16, 2013, were arrested previously. Both are set for trial on September 10 before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. Two defendants, Darrell Ray Zirschry, 32, of Nampa, and Bobbi Eileen Woolsey, 35, of Boise, are currently in custody on state charges. The final defendant, Juan Luis Mojica-Barragan, 24, a Mexican national, has an outstanding warrant for his arrest.
The charge of conspiracy to distribute over 500 grams of methamphetamine is punishable by a minimum term of ten years up to life in prison and a maximum fine of $10 million. Two defendants, Gomez-Gutierrez and Mojica-Barragan, were also indicted for distributing methamphetamine and cocaine, which is punishable by up to twenty years in prison and a maximum fine of $1 million. Zirschry is charged with unlawfully possessing a firearm, which is punishable by up to ten years in prison and a maximum fine of $250,000. Mahler is charged with brandishing and discharging a firearm in furtherance of a drug trafficking crime, which is punishable by a minimum term of ten years up to life in prison and a maximum fine of $250,000.
The indictment is the result of an investigation by the Treasure Valley Metro Violent Crimes Task Force and the Drug Enforcement Administration. The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and Idaho Department of Probation and Parole.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individual Plead Guilty of Threatening Interstate CommunicationsRead the Press Release
SAN JUAN, Puerto Rico – Yesterday evening Joseph Joel Morales-Serrano entered a straight plea and was sentenced to time-served and three years of supervised release for his violation of 18 U.S.C. section 875(c), a Class D felony, which is Threatening Interstate Communications, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On May 6, 2013, at approximately 11:31 p.m., the defendant Joseph Joel Morales Serrano using Twitter name, “Carlito anti Bhatia@leonidadpr,” stated the following directly to Pedro Julio Serrano: “watch out in the march, it can end like in Boston asshole.” Joseph Joel Morales Serrano knowingly sent this message in interstate commerce, online from Puerto Rico and Pedro Julio Serrano received it while in New York.
Defendant admitted that the message contained a true threat to injure Pedro Julio Serrano insofar that it referenced the April 15, 2013 terrorist attack in Boston. The defendant also admitted to law enforcement officers after his arrest that he was trying to upset Pedro Julio Serrano by making his threat.
The victim, Pedro Julio Serrano felt threatened upon receipt of this message, contacted the FBI, and was under the guard of New York Police Department officers for a period of time.
This is the first case in the District of Puerto Rico that has resulted in a felony conviction for threatening hate speech against an individual and specific group in our community.
The case was prosecuted by Assistant United States Attorney Luke Cass.Indictment: Former Branch Manager Embezzled $99,000+ from Garden City BankRead the Press Release
WICHITA, KAN. – A former branch manager at Landmark National Bank in Garden City, Kan., has been charged with embezzling more than $99,999 from the bank, U.S. Attorney Barry Grissom said today.
Sheri L. Green, 52, Garden City, Kan., was charged with one count of misapplication of bank funds. The indictment alleges that she stole the money from the bank over a period of time from Aug. 16, 2012, to Dec. 26, 2012.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
OTHER INDICTMENTS
Gonzalo Ramirez, 28, Dodge City, Kan., and Mariza Tinoco, 22, Dodge City, Kan., are charged with brandishing a firearm during an aggravated robbery, which was a crime of violence in aid of racketeering; and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred July 24, 2008, in Dodge City, Kan.If convicted, they face a penalty of not less than seven years in federal prison and a fine up to $250,000 on the charge of brandishing a firearm; and a maximum penalty of 10 years and a fine up to $250,000 on the other charge. The Dodge City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Mario Diaz, 25, Wichita, Kan., and Vanity Johnson, 24, Wichita, Kan., are charged with one count of bank fraud and one count of aggravated identity theft. The indictment alleges the defendants used checks stolen from the home of an account holder and the account holder’s Social Security number to change the contact information on the account holder’s account at Intrust Bank and to forge and present for payment nine checks for a total of $12,253.31. The crimes are alleged to have occurred at various times from Feb. 4, 2013, to March 26, 2013, in Sedgwick County, Kan.
If convicted, they face a maximum penalty of 30 years and a fine up to $1 million on the bank fraud count, and a mandatory two years to run consecutively and a fine up to $250,000 on the identity theft charge. The Wichita Police Department and the U.S. Postal Service - OIG investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
Jimmie L. Banks, 50, Hutchinson, Kan., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred June 12, 2012, in Reno County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Hutchinson Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Juan Carlos Triana-Mireles, 27, a citizen of Mexico, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found June 21, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison without parole and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Sergio Tapia-Martinez, 39, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported, one count of possession of false identification documents, and one count of aggravated identity theft. The crimes are alleged to have occurred June 10, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison without parole and a fine up to $250,000 on the re-entry charge, a maximum penalty of 10 years and a fine up to $250,000 on the false document charge and a mandatory two years to run consecutively on the aggravated identity theft charge. Immigration and Customs Enforcement and the Kansas Department of Revenue investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illinois Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Andrew C. Henley, a 25-year old, Illinois, man was sentenced on July 15, 2013, in federal district court in East St. Louis, Illinois, on one count of failure to register as a sex offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Henley was sentenced to 34 months in prison, five years of supervised release, and ordered to pay a $100 special assessment.
The violation occurred between 2011 and 2012, when after registering as a Sex Offender in the State of Illinois on July 11, 2011, Henley traveled to the State of Michigan. Henley knew that he was required to either update his sex offender registration in Illinois to reflect this change of address, or register as a sex offender in Michigan. Henley failed to comply with either requirement, thus violating the federal Sex Offender Registration and Notification Act (SORNA). Henley was apprehended on August 23, 2011, in Kalamazoo, Michigan for a domestic assault, following an altercation with his girlfriend. Officers learned that Henley had not registered as a sex offender in Illinois, nor had he updated his sex offender registration in Missouri.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Homero Varela Sentenced to 135 Months for his Conviction on Federal Drug-Trafficking and Financial CrimesRead the Press Release
ALBUQUERQUE – Homero Varela, 30, of Albuquerque, N.M., was sentenced today to 135 months in federal prison followed by five years of supervised release for his conviction on drug-trafficking and money laundering charges. Varela also was ordered to pay a $150,000 money judgment and to forfeit his right, title and interest in his Albuquerque residence.
Varela’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Joseph M. Arabit of the El Paso Field Division of the DEA, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Varela was arrested in Jan. 2012, on a 29-count federal indictment charging him and 14 co-defendants with drug trafficking, money laundering and currency structuring offenses. The indictment charged Varela and his 14 co-defendants with conspiracy to distribute cocaine, methamphetamine and marijuana in New Mexico between May 2011 and January 2012. It also charged Varela and two co-defendants with participation in a money laundering conspiracy. Varela also was charged with distributing methamphetamine, money laundering, and using a communications device to facilitate drug trafficking offenses. The indictment included provisions seeking forfeiture of property constituting, or derived from proceeds obtained from the defendants’ illegal drug trafficking and financial crimes.
On Jan. 29, 2013, Varela pleaded guilty to the following three counts of the indictment: Count 1, charging him with conspiracy to distribute controlled substances; Count 5, charging him with conspiracy to launder money; and Count 6, charging him with money laundering. In entering his guilty plea, Varela admitted using cellular telephones on a regular basis to facilitate the distribution of illegal drugs in and about Albuquerque and his money laundering activities.
In his plea agreement, Varela acknowledged the nature and extent of his drug trafficking activities by admitting that he distributed half a kilogram of methamphetamine to a DEA source in July 2011 and again in Sept. 2011. He also admitted facilitating the distribution of 244 kilograms of marijuana and 26 kilograms of cocaine in early Nov. 2011. The marijuana and cocaine were seized on Nov. 10, 2011, when law enforcement authorities arrested co-defendant Ramon Gonzales, Sr., as he was transporting the drugs. Varela also admitted that he and co-defendant Roy Madrid arranged for others transport a large amount of currency to Mexico in July 2011. On July 22, 2011, law enforcement authorities seized $112,270 from individuals who were taking drug proceeds from Varela’s drug trafficking activities to Mexico. Varela also acknowledged the nature and extent of his money laundering activities in his plea agreement.
Seven of Varela’s co-defendants have entered guilty pleas. Another six co-defendants have entered not guilty pleas to the indictment and are pending trial. The 14th co-defendant, Manuel Villa-Mayorquin, has not been apprehended and is considered a fugitive. The charges in the indictment against the seven co-defendants who have not pleaded guilty are only accusations, and they are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by DEA, IRS and FBI with support from the New Mexico State Police, the Albuquerque Police Department and, the El Paso County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Reeve Swainston and Assistant U.S. Attorneys Stephen R. Kotz and Cynthia L. Weisman are handling the related forfeiture proceedings.
The indictment in this case was the result of a multi-agency investigation into a major drug trafficking and money laundering organization operating out of the Albuquerque metropolitan area that was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.Hartford Man Admits Producing Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ELIEZER MALDONADO, 25, of Hartford, pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of production of child pornography.
According to court documents and statements made in court, on June 8, 2012, Homeland Security Investigations and Hartford Police conducting a child exploitation investigation executed a state search warrant at MALDONADO’s residence. On that date, MALDONADO admitted that on multiple occasions he had engaged in sexual acts with a minor victim who was under the age of 12. He also admitted that he had used a smartphone to take several photographs of the minor victim engaged in sexually explicit poses, and then posted the images to an online file-sharing service, and had traded additional images of child pornography with others via email and online storage accounts.
Investigators seized MALDONADO’s smartphone. Subsequent forensic examination of the device revealed eight images of the minor victim engaged in sexually explicit conduct. Examination of MALDONADO’s email and online storage accounts also revealed approximately 5,500 images and 267 videos of child pornography. The vast majority of these images and videos depicted prepubescent children under the age of 12.
Judge Underhill has scheduled sentencing for October 8, 2013, at which time MALDONADO faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
MALDONADO has been detained since his arrest on June 8, 2012.
This case is being investigated by ICE Homeland Security Investigations in Hartford, with the assistance of ICE HSI in Philadelphia, the Connecticut State Police and the Hartford Police Department. The case is being prosecuted by Assistant United States Attorneys Sarala V. Nagala and Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Harlan County Mining Company Sentenced for Violation of Health and Safety StandardsRead the Press Release
LONDON, KY - A federal judge imposed a fine and ordered a period of probation for a Harlan County underground mining company, which violated mandatory safety and health standards established by the Mine Safety Health Administration (MSHA).
According to a sentencing document filed with the court on Monday, Manalapan Mining Company, Inc., received three years of probation and a $150,000 fine for allowing miners to work in hazardous conditions.
The sentence represents the largest criminal fine in the last 20 years imposed on a mining company in the Eastern District of Kentucky (district includes 67 counties). Mine officials previously pleaded guilty and were sentenced for their roles in the case.
As part of the probationary period, a probation officer is permitted to visit the mine to observe business practices. In addition, the conditions prohibit the company from attempting to hide assets. Specifically, the company can’t sell or transfer assets, without first notifying the probation officer, until the fine is paid off. Manalapan will pay $5,000 per month over a three year period to satisfy the fine. If the company fails to make payments, probation officers can conduct unannounced examinations of the company’s finances and records.
According to court records, from June 11, 2011 until June 29, 2011 the defendants allowed miners at the Harlan County P1-mine to work under roof conditions and operate electrical equipment that did not meet MSHA’s mandatory safety standards. Specifically, miners used mobile bridge carriers without a canopy, which is needed to protect miners from roof falls. Court records state that the canopies were available but never installed.
Under MSHA regulations, certain mine officials are required to perform daily inspections of the working sections of the mine and examine the equipment before allowing miners to work. After inspecting the mine, these officials are required to make written records of any hazardous conditions and address safety issues prior to the miners working in those sections of the mine.
Two of the defendants admitted they intentionally failed to document the hazardous working conditions in the mine and falsely signed and certified records stating that there were no hazardous conditions.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Joseph A. Main, Assistant Secretary of Labor, Mine Safety and Health Administration, jointly announced the sentence today.
The investigation was conducted by MSHA. The case was prosecuted by Assistant U.S. Attorney Patrick H. Molloy and Jason Grover with the Department of Labor.
Harlan County Mine Officials Sentenced for Violating Safety StandardsRead the Press Release
LONDON, KY - Former officials from an underground coal mine operation in Harlan County, KY., were sentenced today for violating mine safety standards.
U.S. District Judge Gregory Van Tatenhove sentenced mine foreman, Bryant Massingale, 53, of Cawood, KY., mine superintendent, Joseph Miniard, 54, of Smith, KY., and operations manager, Jefferson Davis, 47, of Harlan, KY., for violations of the Mine Safety and Health Administration’s (MSHA) mine safety standards.
Miniard received a $3,000 fine and three years of probation for a misdemeanor and felony offense of failing to report and record a hazardous condition. Judge Van Tatenhove ordered Miniard to serve his initial six months in home incarceration to be followed by a six month period of home detention. Massingale was fined $3,000 and sentenced to three years of probation, with six months to be served in home confinement, for failing to report and record a hazardous condition. Davis was fined $5,000 and sentenced to three years of probation for a misdemeanor offense of failing to provide protective canopies over persons operating mining equipment.
Judge Van Tatenhove scheduled a hearing to determine what fine, if any, to impose for Manalapan Mining Company.
According to court records, from June 11, 2011 until June 29, 2011 the defendants allowed miners at the Harlan County P1-mine to work under roof conditions and operate electrical equipment that did not meet MSHA’s mandatory safety standards. Specifically, miners used mobile bridge carriers without a canopy, which is needed to protect miners from roof collapses. Court records state that the canopies were available but never installed.
Under MSHA regulations, certain mine officials are required to perform daily inspections of the working sections of the mine and examine the equipment before allowing miners to work. After inspecting the mine, these officials are required to make written records of any hazardous conditions and address safety issues prior to the miners working in those sections of the mine.
Massingale and Miniard admitted they intentionally failed to document the hazardous working conditions in the mine and falsely signed and certified records stating that there were no hazardous conditions.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Joseph A. Main, Assistant Secretary of Labor, Mine Safety and Health Administration, jointly announced the sentences today.
The investigation was conducted by MSHA. The case was prosecuted by Assistant U.S. Attorney Patrick H. Molloy and Jason Grover with the Department of Labor.
Greensboro Man Sentenced for Smuggling Goods from the United StatesRead the Press Release
NORFOLK, Va. – Muhaned Abbas Mohamed, 26, of Greensboro, N.C., was sentenced today to 24 months in prison, followed by three years of supervised release, for conspiracy to smuggle goods from the United States and to make a false and fictitious statement in connection with the acquisition of a firearm from a licensed dealer.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division, made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
Mohamed pled guilty on February 25, 2013. According to court documents, on September 21, 2011, United States Customs inspectors in Norfolk received a tip from the Greensboro Police Department indicating that a shipping container sent from a business in Greensboro to the Port of Norfolk and destined for Port Said, Egypt contained hidden contraband. U.S. Customs inspectors in Norfolk located a container sent from an auto parts business in Greensboro. The bill of lading indicated that inside the container were auto parts consisting of four chopped cars and three motorcycles. Upon further inspection, six Mossberg 12 gauge pistol grip pump action shotguns were found concealed in the rear seat of one of the cars. Further investigation revealed that Mohamed had concealed the shotguns, failed to disclose the bill of lading, failed to obtain the required license from the Department of Commerce needed to export the shotguns, and that Mohamed had made a straw purchase of the six shotguns on August 18, 2011 at a Federal Firearms Licensee in Greensboro for a business partner in Egypt.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of Homeland Security Investigations Border Enforcement Security Task Force, Customs and Border Protection and the Greensboro Police Department. Assistant United States Attorney Darryl J. Mitchell 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.Fugitive Apprehended and Sentenced to Federal Prison for Role in Prostitution ConspiracyRead the Press Release
Tampa, FL - United States District Judge James D. Whittemore sentenced Blanca Ceballos (49, Orlando) yesterday to three years in federal prison for conspiring with others to promote a prostitution ring in Polk County. Ceballos pleaded guilty on November 7, 2007.
According to the indictment and testimony in court, Ceballos, who was a citizen of the Dominican Republic, conspired with others to operate numerous houses of prostitution in the Middle District of Florida. She aided that conspiracy by arranging for the transport of women to the houses to work as prostitutes, and by collecting and depositing the proceeds from their prostitution activity. In 2007, Ceballos pleaded guilty and then failed to appear for sentencing before the court in 2008. Ceballos apparently fled the United States at that time and law enforcement was unable to apprehend her. She was arrested in April 2013 when she flew back into the United States from the Dominican Republic.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Jay L. Hoffer of the Tampa Division.
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.
Former Security Guard Sentenced to 27 Months in Prison for Using Identifying Information from Nursing Home Residents in Identity Theft and Tax Fraud Scheme-He Stole Identification Information from Nursing Home Residents-Read the Press Release
WASHINGTON – Derek Johnson, a former security guard at a nursing home, was sentenced today to 27 months in prison for various crimes committed in a far-reaching identity theft and tax fraud scheme. Johnson stole identifying information from current and former residents of the nursing home, which was used to obtain more than $400,000 in fraudulent tax refunds.
Johnson is among nine people who have pled guilty so far in one of the largest prosecutions to date involving the use of stolen identifying information. He is the first of the defendants to be sentenced. All told, the case involves the filing of returns seeking more than $20 million in fraudulent refunds.
The sentence, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr.; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Eric M. Thorson, Inspector General, U.S. Department of Treasury; and Kathy A. Michalko, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Johnson, 34, of District Heights, Md., pled guilty in February 2013 to three charges: conspiracy to defraud the United States with respect to claims; aiding and abetting in the making of false claims for refund, and aiding and abetting in fraud and related activity involving identification information. He was sentenced by the Honorable James E. Boasberg.
Judge Boasberg ordered Johnson to pay a total of $435,764 in restitution to the IRS. Upon completion of his prison term, Johnson will be placed on three years of supervised release.
According to evidence presented to the Court by Assistant U.S. Attorney Sherri L. Schornstein, Johnson was among participants in a massive identity theft and false tax refund scheme involving an extensive network of more than 100 people, many of whom were receiving public assistance. The scheme also involves bank tellers and postal carriers. From 2006 to date, they allegedly caused the filing of at least 7,000 fraudulent federal income tax returns seeking more than $20 million in refunds. The case remains under investigation.
According to the government’s evidence in this case, the refunds were sought in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners.
“Derek Johnson was hired to protect the residents of a nursing home, but instead he stole these vulnerable citizens’ identities to file for bogus tax refunds,” said U.S. Attorney Machen. “His callous conduct was typical of these criminals who exploit senior citizens, people with disabilities, drug addicts, and prisoners in an effort to fleece the taxpayers. Today Mr. Johnson became the first member of this $20 million tax fraud ring to be sentenced for his crimes, but there are many more to come.”
“Criminal conspiracies involving financial fraud of this magnitude are often described as a house of cards. The underlying structure oftentimes falls apart and exposes the individuals responsible without warning,” said Special Agent in Charge Kelly. “Identity theft is a loathsome, despicable crime that victimizes honest Americans and causes immense hardship to those individuals whose identities were stolen. Today’s sentence is a reminder that the IRS will remain vigilant in our investigation of these schemes and will continue to work with prosecutors to combat this type of criminal conduct.”
“The Treasury Office of Inspector General is proud to be a part of this joint effort to stop those who prey on the most vulnerable and unsuspecting victims,” said Inspector General Thorson.
Johnson worked from August 2009 to January 2010 as a security guard at the Grant Park Nursing Home in Northeast Washington. This facility provides short-term rehabilitation care for residents with conditions such as stroke, fractures, joint replacements, amputations, and circulatory problems, as well as long-term care for dementia and Alzheimer’s patients.
The government’s evidence showed that Johnson provided identifying information about current and former nursing home residents to others in the conspiracy. More than 150 fraudulent federal tax forms were filed in the names of these current and former residents with the IRS, claiming fraudulent tax refunds totaling about $404,832. Some of the refund checks were negotiated by Johnson. Other checks were negotiated by co-conspirators. Johnson endorsed his name on 45 checks totaling $90,809, which included 31 checks totaling $30,932 payable to then current or former nursing home patients, and deposited the funds into his own bank account. He kept a portion of the money and provided the rest to one or more of the others in the scheme.
One resident of the nursing home, who had not worked in many years, was recovering from a stroke. His Social Security benefits were reduced as a result of this crime. The IRS reported the man’s filing to the Social Security Administration, which led to the reduction in benefits. His benefits are being restored.
Johnson also endorsed and deposited another 14 checks in the names of others, totaling $30,923.
At sentencing, the government pointed out that tax fraud is a drain on the U.S. treasury and takes away money that could go to a wide variety of essential programs.
In announcing the guilty plea, U.S. Attorney Machen, Special Agent in Charge Kelly, Inspector in Charge Barksdale, Inspector General Thorson, and Special Agent in Charge Michalko commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo, and Assistant U.S. Attorney Sherri L. Schornstein, who is prosecuting the case.
13-246Former Postal Service Contractor Sentenced to 51 Months for Stealing Credit Cards from the MailRead the Press Release
BOSTON – A former contractor to the United States Postal Service was sentenced today for stealing credit cards from a mail-sorting facility while on the job, and then using the credit cards to commit fraud.
Gerald K. Acholonu, 33, of Braintree, was sentenced by U.S. District Judge Richard G. Stearns to four years and three months in prison, to be followed by three years of supervised release, forfeiture, and restitution of $183,992 to the credit card company. In March 2013, Acholonu pleaded guilty to credit card fraud and stealing mail.
From August 2010 through May 2011, Acholonu worked for a contractor that sorted mail for the U.S. Postal system. In late April 2011, another employee spotted Acholonu leaving his employer’s restroom with a tray of U.S. mail. Investigators then searched Acholonu’s trash at home and found 11 stolen Discover credit cards and other evidence that he had used or was planning to use the Discover customers’ identities by setting up telephone accounts in their names. Further investigation proved that Acholonu was involved with theft of almost 400 other Discover credit cards. Using these cards, Acholonu and others tried to ring up nearly $430,000 in fraudulent transactions, about $184,000 of which were successful.
When agents arrested Acholonu, they found further evidence of identity theft and thus obtained a warrant to search his apartment. That search turned up USB thumb-drives that contained information associated with 21 victims of identity fraud who were unassociated with the Discover fraud. This information included the new victims’ true names, personal identifying information, credit card numbers, and credit reports in their names. It also included digital images of Acholonu’s Social Security card and driver’s license, both modified to remove his own information, such as his name or picture, apparently with the intent of modifying those documents further for other identities. Acholonu’s laptop computer itself had been purchased under the name of another identity theft victim who had experienced approximately $30,000 in fraud against his credit and whose name and other personal identifying information were found handwritten on a piece of paper at Acholonu’s residence.
U.S. Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Office, made the announcement today. The case was prosecuted Scott L. Garland and Eric Christofferson, respectively of Ortiz's Cybercrimes and Economic Crimes Units.Former Law Enforcement Officers Sentenced for Theft of Government FundsRead the Press Release
Jackson, Miss. – Two former law enforcement officers were sentenced today by U.S. District Judge Tom S. Lee for theft of government funds and property.
Zach Robinson, a former Deputy with the Hinds County Sheriff’s Office, and Kent Daniels, a former Jackson Police Officer and Investigator for the Hinds County District Attorney’s Office, were each sentenced to twelve months in federal prison. They were also ordered to pay joint restitution in the amount of $21,996.00.
In March, 2013, Robinson and Daniels pled guilty to robbing a motel room which they believed was being used by a drug dealer. They took $23,000 and seven iPads which had actually been placed in the room by the FBI.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Jerry Rushing and Mike Hurst.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Former IRS Official Sentenced in Manhattan Federal Court for Violating Conflict of Interest and Audit Disclosure LawsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DENNIS LERNER, a former employee of the Internal Revenue Service (“IRS”), was sentenced today in Manhattan federal court to three years of probation for violating a criminal conflict of interest law and to illegally disclosing confidential audit information during the time he was an IRS employee. LERNER pled guilty in March 2013 to one count of violating a criminal conflict of interest law and one count of illegally disclosing confidential audit information while he was an IRS employee before United States District Judge John F. Keenan, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Whether you cheat on complying with the tax laws or cheat on enforcing the tax laws, you corrupt our tax system. Dennis Lerner discredited his office and the integrity of the audit process by disregarding his responsibilities as an IRS Examiner in order to land himself a job. This Office will not hesitate to root out corruption wherever we find it, including among government officials.”
According to the allegations in the Criminal Complaint and the Criminal Information, along with statements made at Lerner’s plea and during today’s sentencing proceeding:
From June 2010 until his resignation in August 2011, LERNER worked as an International Examiner in the New York office of the IRS. For several months leading up to his resignation from the IRS, one of his chief responsibilities involved conducting an audit of an international bank (“Bank-1”) related to approximately $1 billion in allegedly unreported income. Shortly before his resignation, LERNER led negotiations on behalf of the IRS which resulted in a proposed $210 million settlement between Bank-1 and the IRS. The settlement was still pending final approval at the time of his departure. Unbeknownst to his colleagues and supervisors, LERNER applied for, interviewed for, and accepted the position of Tax Director at Bank-1 during the time period in which he was representing the IRS in the Bank-1 settlement discussions. He also sent multiple emails to an individual in which he expressed both his dissatisfaction with his job at the IRS and his hope that he would secure the Bank-1 job. At no time did he notify the IRS of his efforts to obtain employment with Bank-1.
LERNER also engaged in improper disclosure of IRS tax return information during the time period that he worked as an IRS International Examiner. Specifically, he revealed the identity of a bank he was auditing to an individual who was not employed by the IRS.
In addition to his probation, LERNER, 60, of Edgewater, New Jersey, was ordered to pay a $10,000 fine and a $200 special assessment fee.
Mr. Bharara praised the outstanding investigative work of the Treasury Inspector General for Tax Administration, which included the assistance and cooperation of IRS management.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Randall W. Jackson is in charge of the prosecution.
Former Bank Ceo Sentenced for Money Laundering and Bank FraudRead the Press Release
Jackson, Miss. -- Larry Barnette Hill, 58, of Meadville, Mississippi, was sentenced in federal court today to 78 months in federal prison followed by five years of supervised release for money laundering and bank fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Hill was also ordered to pay $1,243,703 in restitution to People’s Bank of the South.
From 2004 through 2012, while serving as CEO of People’s Bank of the South in Bude, Mississippi, Hill fraudulently withdrew money from the bank’s Payroll Clearing Account and deposited those funds into the bank accounts of his family members and into a “shell” bank account he created for his own use. He also used the bank’s credit card to pay personal expenses without the bank’s authorization and he used third-party checks issued in the name of People’s Bank for his own personal benefit including making payments on a personal loan at another bank.
Hill concealed his fraudulent activities by creating false general ledger tickets at the bank which appeared to be for bank expenses and inflating the bank’s budget each month in order to cover up his embezzlement.
This case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation’s Office of Inspector General. It was prosecuted by Assistant U.S. Attorney Mike Hurst.
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Florida Health Care Medical Director and Six Therapists<br /> Arrested for Alleged Roles in $63 Million Fraud SchemeRead the Press Release
The former medical director at defunct health provider Health Care Solutions Network (HCSN) and six therapists were arrested today, accused of conspiring to fraudulently bill Medicare and Florida Medicaid more than $63 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement after the indictment was unsealed following the arrests.
The former HCSN medical director, Roger Rousseau, 71, of Miami, was indicted on July 11, 2013, and charged with conspiracy to commit health care fraud and two counts of health care fraud. In addition, six therapists from Miami – Doris Crabtree, 61; Angela Salafia, 65; Liliana Marks, 46; Ruben Busquets, 49; Alina Fonts, 47; and Blanca Ruiz, 59 – were also charged in the same indictment with conspiracy to commit health care fraud. Fonts was also charged with two counts of health care fraud, and Crabtree, Salafia, Marks and Busquets were each charged with two counts of making false statements related to health care matters. The indictment also seeks forfeiture of proceeds from the alleged healthcare fraud offenses.
According to the indictment, HCSN purported to provide intensive mental health treatment to Medicare and Medicaid beneficiaries in Miami and Hendersonville, N.C., from approximately 2004 through 2011 for purported mental health services that were not medically necessary and often never provided. The indictment also alleges that in Miami, HCSN paid kickbacks to assisted living facility owners and operators who, in exchange, referred beneficiaries to HCSN. In total, HCSN is alleged to have fraudulently billed Medicare and Medicaid approximately $63.7 million, from which HCSN allegedly received payments totaling approximately $28 million.
Rousseau served as the medical director for HCSN in Florida, and the indictment alleges that he routinely signed what he knew to be fabricated and altered medical records without ever reviewing the materials, and, in most instances, without ever meeting with the patient. The indictment also alleges that Crabtree, Salafia, Marks, Busquets, Fonts and Ruiz fabricated HCSN medical records to support false and fraudulent claims for partial hospitalization program services that were not medically necessary and were not provided.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and HHS-OIG, and 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 Southern District of Florida. The case is being prosecuted by Fraud Section Trial Attorney Allan J. Medina.
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 and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Florida Health Care Medical Director and Six Therapists Arrested for Alleged Roles in $63 Million Fraud SchemeRead the Press Release
The former medical director at defunct health provider Health Care Solutions Network (HCSN) and six therapists were arrested today, accused of conspiring to fraudulently bill Medicare and Florida Medicaid more than $63 million.
U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement after the indictment was unsealed following the arrests.
The former HCSN medical director, Roger Rousseau, 71, of Miami, was indicted on July 11, 2013, and charged with conspiracy to commit health care fraud and two counts of health care fraud. In addition, six therapists from Miami – Doris Crabtree, 61; Angela Salafia, 65; Liliana Marks, 46; Ruben Busquets, 49; Alina Fonts, 47; and Blanca Ruiz, 59 – were also charged in the same indictment with conspiracy to commit health care fraud. Fonts was also charged with two counts of health care fraud, and Crabtree, Salafia, Marks and Busquets were each charged with two counts of making false statements related to health care matters. The indictment also seeks forfeiture of proceeds from the alleged healthcare fraud offenses.
According to the indictment, HCSN purported to provide intensive mental health treatment to Medicare and Medicaid beneficiaries in Miami and Hendersonville, N.C., from approximately 2004 through 2011 for purported mental health services that were not medically necessary and often never provided. The indictment also alleges that in Miami, HCSN paid kickbacks to assisted living facility owners and operators who, in exchange, referred beneficiaries to HCSN. In total, HCSN is alleged to have fraudulently billed Medicare and Medicaid approximately $63.7 million, from which HCSN allegedly received payments totaling approximately $28 million.
Rousseau served as the medical director for HCSN in Florida, and the indictment alleges that he routinely signed what he knew to be fabricated and altered medical records without ever reviewing the materials, and, in most instances, without ever meeting with the patient. The indictment also alleges that Crabtree, Salafia, Marks, Busquets, Fonts and Ruiz fabricated HCSN medical records to support false and fraudulent claims for partial hospitalization program services that were not medically necessary and were not provided.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and HHS-OIG, and 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 Southern District of Florida. The case is being prosecuted by Fraud Section Trial Attorney Allan J. Medina.
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 and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Felon Sentenced to 100 Months in Prison for Possession of A FirearmRead the Press Release
DENVER – Daniel S. Prieto, age 33, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 100 months (over 8 years) in federal prison for possession of a firearm by a prohibited person, United States Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Andrew Traver announced. After serving his prison sentence, Judge Jackson ordered Prieto to serve 3 years on supervised release. Prieto, who appeared at the hearing in custody, was remanded at the conclusion of the hearing.
Prieto and co-defendant Saul Galvan, age 26, were indicted by a federal grand jury in Denver on December 4, 2012. Each faces one count of being a felon in possession of a firearm. Prieto requested a jury trial. That trial started on March 11, 2013, before Judge Jackson. That same day, in Judge Jackson’s courtroom, co-defendant Galvan pled guilty to being a felon in possession of a firearm. Galvan was sentenced that same day by Judge Jackson to serve 21 months in federal prison, followed by 3 years on supervised release. On March 13, 2013, following a three-day jury trial, Prieto was convicted of being a felon in possession of a firearm.
According to court documents, including a sentencing statement filed by the government, on August 3, 2012, a Greely Police Officer, who was parked at a street corner, heard the music from a vehicle from over 100 yards away. The officer then pulled over the vehicle for a violation of a Greeley Municipal Ordinance for loud music as it passed his location. The driver, Prieto, and passenger, Galvan occupied the vehicle. When the officer approached the vehicle he observed a glass pipe with white residue in the center console area of the vehicle. The officer assumed that the white residue was methamphetamine based on his experience. In addition, the officer observed an open box of beer bottles inside the vehicle and could smell the odor of alcohol.
Based on the pipe and alcohol as probable cause, officers pulled the defendants out of the vehicle. Officers on both sides of the vehicle observed firearms between the seats and their respective doors. The firearm located by Galvan was a Hi-Point .45 caliber pistol with one .45 caliber round of ammunition in the chamber. The firearm located by Prieto was a Jimenez Arms .380 caliber pistol with a fully loaded magazine and one round of ammunition in the chamber. Record checks determined that Prieto and Galvan were prior convicted felons. Both were then transported to jail.
“Felons in possession of firearms will be prosecuted, and face stiff prison sentences that take years of their life away from them and their families,” said U.S. Attorney John Walsh. “Thanks to the Greeley Police Department and the ATF, two felons sitting in a car in possession of firearms are now sitting in federal prison.”
“This investigation illustrates the collaborative effort of law enforcement agencies at the federal, state, and local levels working together to keep crime guns out of the hands of convicted felons,” said Special Agent in Charge Andrew Traver, ATF Denver Field Division. “We will continue to combine resources to protect our citizens and make our communities a safer place to live.”
This case was investigated by the Greely Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Prieto and Galvan were prosecuted by Assistant U.S. Attorney Jeremy Sibert.
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Federal, State and Local Officials to Hold Press Conference to Discuss Continuing Efforts to Combat Drug Trafficking and Addiction in Northern New MexicoRead the Press Release
ALBUQUERQUE – Federal, state and local officials will hold a press conference on WEDNESDAY, JULY 17, 2013 at 10:00 A.M. to discuss their continuing efforts to combat drug trafficking and addiction in northern New Mexico, including a new push to encourage the public to anonymously report drug trafficking in their neighborhoods through the DEA’s tip line.
WHO: U.S. Attorney Kenneth J. GonzalesSpecial Agent in Charge Joseph M. Arabit, El Paso Division of the DEA
Secretary Gorden Eden, Jr., New Mexico Department of Public Safety
WHAT: Press conference to discuss a multi-agency continuing collaborative effort to
Mayor Alice A. Lucero, City of Espanola
Deputy Director Jose Ramirez, New Mexico HIDTA
Chairman Herman L. Silva, Northern New Mexico Anti-Drug Summit
Implementation Team
Members of the Northern New Mexico Anti-Drug Summit Implementation Teamcombat drug trafficking and addiction in northern New Mexico.
WHEN:WEDNESDAY, JULY 16, 2013
10:00 A.M.
WHERE: DEA Tip Line Billboard US Highway 84/285 one mile north of Junction 503 (West Side)Pojoaque, NM
(Map Attached) OPEN PRESSNOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Press inquiries regarding logistics should be directed to Ron Lopez at (505) 224-1466 or (505) 249-4702.
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Federal Jury Convicts Former Denton County Insurance Agent in FraudRead the Press Release
Defendant Used Elderly as Straw Buyers
DALLAS — Following a three-day trial before U.S. District Judge Reed C. O’Connor, a federal jury in Dallas deliberated just one hour before convicting Vincent Bazemore, 39, formerly of Aubrey, Texas, on all counts of an indictment charging four counts of mail fraud related to a scheme he ran to defraud various life insurance companies. Today’s announcement was made by U.S. Attorney Sarah R. Saldana of the Northern District of Texas.
Bazemore is currently in federal custody, serving a five-year sentence on a federal securities fraud conviction in the district in 2009. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution on each of the four counts of conviction. In addition, there is a penalty enhancement as Bazemore was found to have committed these offenses while he was pre-trial release on the securities fraud case, and under this enhancement, Bazemore is subject to an additional 10 years imprisonment to run consecutive to any sentence that he may receive on any of the mail fraud counts. Sentencing is set for December 12, 2013, before Judge O’Connor.
The government presented evidence at trial that between October 2007 and April 2009, Bazemore, an insurance agent, engaged in a scheme to obtain substantial commissions by inducing life insurance companies to issue policies on applications of individuals who appeared to be wealthy and seeking insurance for estate planning purposes, when in fact, the applicants were of modest financial means, and the policies were intended to be transferred to investors.
Further evidence presented in court showed that Bazemore solicited elderly individuals to apply for policies by representing that the life insurance was an investment with no financial cost or exposure and would result in a sizable monetary benefit to the individual’s heirs. Bazemore prepared the applications and related documents, on behalf of the applicants that contained forged signatures and falsified financial information to induce the life insurance companies into issuing the policies. Bazemore also submitted the false and fraudulent applications and related documents to financial institutions to obtain premium financing on the policies. In fact, the applicants were of modest financial means and that the policies were obtained for the purpose of being transferred to investors. Bazemore had agreements with insurance companies and managing agents which provided that he would receive, for each policy issued on an application he submitted, a commission of 95 to 105 percent of the first year’s premium paid on the policy.
Today’s announcement is related to efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorneys Christopher Stokes and P.J. Meitl.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the July 2013 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. The return of an indictment is a method of informing the defendant of alleged violations which must be proven in a court of law beyond a reasonable doubt to overcome the defendant’s presumption of innocence.
Roy Dee Robinson. Firearm Possession by a Felon. Robinson, 52, of Vinita, Oklahoma, is charged with possessing a 20-gauge shotgun after prior convictions for burglary, driving under the influence and possessing a firearm after a felony conviction. If convicted, the maximum sentence is a term imprisonment up to 10 years, a $250,000 fine, and the forfeiture of the shotgun involved in the offense. The Federal Bureau of Investigation is the lead agency in the case.
Kennan Anthony Lamirand. Possession of Firearm and Drug Conspiracy. Lamirand, 33, of Tulsa, is accused of possessing a pistol with ammunition as convicted felon, possessing a firearm in furtherance of a drug trafficking crime and possessing methamphetamine with the intent to distribute. Upon conviction Lamirand would face a 5 year minimum to life imprisonment, up to a $5,000,000 fine and shall forfeit the pistol with ammunition. The Oklahoma Bureau of Narcotics and Dangerous Drugs is the lead agency.
Wayde Martin White and John Heath Neighbors. Possession of Synthetic Marijuana with Intent to Distribute. White, 53, and Neighbors, 42, both of Pryor, Oklahoma, are accused of drug conspiracy and possession of synthetic marijuana XLR-11 with the intent to distribute. Upon conviction, the defendants would face 20 years maximum imprisonment, up to a $1,000,000 fine and shall forfeit two vehicles. U.S. Department of Homeland Security is the lead agency.
Michael Kukla. Wire Fraud, Money Laundering, Falsified Tax Returns. Kukla, 64, of Tulsa, is charged with wire fraud, money laundering and filing false tax returns. Kukla owned and operated Real Estate Closing Company (RECC), and worked as a title insurance agent at First American Title Insurance Company. The RECC maintained accounts at Arvest Bank and First American Title Insurance Company. Kukla is accused of transferring account funds for personal expenses and defrauding the insurance company about one account which was used to transfer funds and pay outstanding payments. From 2007-2009, Kukla filed false tax returns to the Internal Revenue Service of a lesser taxable amount than he actually earned. Upon conviction, Kukla would face a maximum of 20 years imprisonment and shall forfeit at least $2 million dollars representing proceeds obtained as a result of the wire fraud. The Internal Revenue Service and Federal Bureau of Investigation are the lead agencies in the case.
Christopher Matthew Campbell and Kelsey Campbell. Drug Conspiracy and Possession of a Firearm by a Felon. Christopher Campbell, 30, and his wife Kelsey Campbell, 29, both of Tulsa are accused of drug conspiracy and possession of 50 grams or more of methamphetamine with intent to distribute. Those counts are punishable by five to forty years and up to a $5,000,000 fine. Further, Christopher Campbell, a convicted felon, is charged with possession of a 20 gauge shotgun and ammunition, which is punishable for up to ten years and a $250,000 fine. The Government is also seeking the forfeiture of four vehicles and a shotgun. The Bureau of Indian Affairs and the Tulsa Police Department are the lead agencies.
Jorge Camacho. Illegal Alien in Possession of Methamphetamine with Intent to Distribute. Camacho, 20, of Oklahoma City, is charged with possession of methamphetamine with the intent to distribute. Upon conviction, Camacho would face up to 40 years imprisonment with minimum 5 years and $5,000,000 fine. The Tulsa Police Department, Special Investigation Division and Drug Enforcement Administration are the lead agencies.
Stanley Eugene Hill. Attempted Bank Robbery and Firearm Possession. Hill, 26, of Tulsa, is charged for his participation in the September 23, 2009, attempted robbery of Arvest Bank. He is also charged with using a firearm during the attempted bank robbery. Upon conviction, Hill faces a statutory maximum sentence for the attempted robbery of up to twenty-five years as well as a twenty-five year minimum sentence on the firearms count. By statute, the firearms sentence must run consecutive to any sentence imposed for Hill’s commission of the attempted robbery.
Daniel Munoz-Prieto, Keith Beets, Jerod Cody Linthicum and Javier Ponce. Possession of Methamphetamine with Intent to Distribute. Munoz-Prieto, 30, Beets, 36, Linthicum, 29, and Ponce, 25, all of Tulsa, are charged with possessing controlled substances with intent to distribute from January 2013 until July 2013. Linthecum and Ponce are charged with possessing 50 or more grams of methamphetamine with intent to distribute. Munoz-Prieto and Ponce are charged with possessing 500 or more grams of methamphetamine with intent to distribute. Upon conviction, the defendants would face a mandatory 10 years minimum up to 40 years imprisonment and $1,000,000 fine. The Federal Bureau of Investigation is the lead agency.
Leonardo Zaavedra, Noe Vergara Wuences and Andre Zaavedra. Drug Conspiracy and Firearms Charges. L. Zaavedra and A. Zaavedra, 20, both of Tulsa, along with Vergara Wuences, 37, of Austin, Texas, are charged with possessing 500 grams or more of methamphetamine with intent to distribute and with possessing firearms in furtherance of drug trafficking crimes. Upon conviction, the defendants would face a mandatory minimum of 5 years imprisonment up to 10 years and a $4,000,000 fine. The Federal Bureau of Investigation is the lead agency.
Samuel Garcia-Escalera. Alien in the United States After Deportation. Garcia-Escalera, 35, was arrested in Tulsa and charged with having returned to the United States unlawfully after being deported in February 2006 near Laredo, Texas. Upon conviction, Garcia-Escalera would face a maximum of two years imprisonment and/or a fine of $250,000. The U.S. Immigration and Customs Enforcement is the lead agency in the case.
Isiah Bernard Adams. Failure to Register as a Sex Offender.Adams, 48, of Tulsa, is charged with failure to register as a sex offender after moving from Jackson County, Missouri to Oklahoma. If convicted, Adams maximum sentence is a term of imprisonment up to 10 years and/or a fine of $250,000. The United States Marshals Service is the lead agency.
Shane Allen Boggs. Failure to Register as a Sex Offender. Boggs, 41, of Rochester, Minnesota, is charged with failure to register as a sex offender after traveling interstate. If convicted, Boggs maximum sentence is a term of imprisonment up to 10 years and/or a fine of $250,000. The United States Marshals Service is the lead agency.
Nicole Renee Hughes and John Wallace Hunter. Drug Trafficking in Indian Country. Hughes, 31, of Vinita, Oklahoma and Hunter, 68, of Bristow, Oklahoma are charged with possessing 50 grams or more of methamphetamine in Indian Country with intent to distribute it. If convicted, the defendants face imprisonment for maximum of 40 years and a mandatory minimum 5 years. Additionally they face a fine of up to $5,000,000. The Bureau of Indian Affairs is the lead agency in the case.
Darrell Robert Smith. Failure to Register as a Sex Offender. Smith, 29, of Tulsa, is charged with failure to register as a sex offender after traveling from Audrain County, Missouri to Oklahoma. If convicted, Smith faces 10 years imprisonment and/or a fine of $250,000. The United States Marshals Service is the lead agency.
Ubaldo Esparza-Ortiz. Alien in the United States After Deportation. Esparza-Ortiz, 26, was arrested in Tulsa and charged with having returned to the United States unlawfully after being deported in May 2012 near Del Rio, Texas. Upon conviction, Esparza-Ortiz would face a maximum of twenty years imprisonment. The U.S. Immigration and Customs Enforcement is the lead agency.
Edgar Hernandez Madriz. Felon in Possession of a Firearm and Ammunition and Witness Tampering. If convicted, Madriz faces a maximum 10 years imprisonment and $250,000 fine. The Federal Bureau of Investigation and the Creek Nation Lighthorse Police are the lead agencies in the case.Father and Son Charged with Tax EvasionRead the Press Release
United States Attorney Brendan V. Johnson announced that a father and son have been indicted by a federal grand jury for tax evasion.
Theodore John Nelson, Jr., a/k/a Ted Nelson, age 66, and Steven A. Nelson, age 43, both of Letcher, South Dakota, face charges of conspiracy to defraud the United States, multiple counts of failure to file income tax returns, and impeding the Internal Revenue Service.
They appeared before U.S. Magistrate Judge John E. Simko on July 10, 2013, and pled not guilty to the charges.
Upon conviction, the maximum penalty for the conspiracy charge is 5 years in prison and/or a $250,000 fine, plus restitution. The failure to file charges each carry a maximum penalty of 1 year in prison and/or a $10,000 fine, plus restitution. The impeding charge carries a maximum penalty of 3 years in prison and/or a $5,000 fine.
The charges are merely accusations and both men are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service. Assistant U.S. Attorney John E. Haak is prosecuting the case.
Both men were released on bond pending trial, which has been set for September 10, 2013.District Man Sentenced to 10-Year Prison Term in 1995 Slaying in Northwest Washington-Defendant Admitted Shooting Victim, A Friend, Then Fleeing the Scene-Read the Press Release
WASHINGTON – Maurice Fair, 35, of Washington, D.C., was sentenced today to 10 years in prison on a charge of voluntary manslaughter while armed for a slaying in 1995 at an apartment in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Fair pled guilty in May 2013 in the Superior Court of the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for a 10-year prison term. The Honorable Herbert B. Dixon, Jr. accepted the plea and sentenced Fair. Upon completion of his prison term, Fair will be placed on five years of supervised release. Judge Dixon ordered that Fair participate in mental health treatment while incarcerated and after his release.
According to the government’s evidence, the victim, James W. Belton, 18, was fatally shot on Oct. 5, 1995. Fair, who was then 17, had gone to Mr. Belton’s apartment, in the 1400 block of Sheridan Street NW, to smoke marijuana. While there, he shot Mr. Belton twice in the head with a .38-caliber revolver, causing Mr. Belton’s death. At the time of the murder, no arrests or leads were developed linking the defendant to the slaying.
On July 4, 2004, Fair approached police and told them he had set his mother’s house on fire. He was transported to a hospital for a mental health evaluation. While at the hospital, the defendant, spontaneously, told hospital staff that he shot and killed a man eight years earlier with a .38-caliber gun. He was not arrested for the homicide at that time.
Fair was arrested and interviewed on Oct. 23, 2007 by detectives from the Metropolitan Police Department (MPD) in relation to the death of Mr. Belton. He told police that while visiting Mr. Belton on Oct. 5, 1995, he became paranoid and thought that Mr. Belton and another individual (who was not present) were going to rob and hurt him. He subsequently shot Mr. Belton in the head. At the time that Mr. Belton was shot, he was seated on a couch, unarmed, and had not done anything to suggest to Fair that he was going to rob or hurt him. After the shooting, Fair left the scene on a bicycle. Fair, who has been incarcerated since 2007, will receive credit for the time he has already served.
In announcing the sentence, U.S. Attorney Machen praised the work of the MPD detectives and officers who investigated the case. He also acknowledged the effort of those who worked on the case from the U.S. Attorney’s office, including Paralegal Specialist Kelly Blakeney, and Victim/Witness Advocate Marcia Rinker. Finally, he praised the work of Assistant U.S. Attorneys Ed Burley, who indicted the case, Steve Snyder, who worked on the investigation, and Cynthia G. Wright, who prosecuted the matter.
13-245Diamond Electric Mfg. Co. Ltd. and an Autoliv Inc. Executive Agree to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
Osaka, Japan-based Diamond Electric Mfg. Co. Ltd. has agreed to plead guilty and to pay a $19 million criminal fine for its role in a conspiracy to fix prices of ignition coils installed in cars sold in the United States and elsewhere, the Department of Justice announced today. This is the first case in the department’s antitrust investigation involving parts sold directly to an automobile company headquartered in the United States – Ford Motor Co. The department also announced that an Autoliv Inc. executive has agreed to plead guilty for his role in a conspiracy to fix the prices of certain seatbelts sold to Toyota Motor Corp. for installation in cars manufactured and sold in the United States and elsewhere.
Diamond Electric has agreed to cooperate with the department’s ongoing investigation. Takayoshi Matsunaga, a current employee of Autoliv and former vice president of the Toyota Global Business Unit at Autoliv Japan, agreed to serve one year and one day in a U.S. prison, to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreements for both Diamond Electric and Matsunaga are subject to court approval.According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Diamond Electric engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of ignition coils it sold to Ford Motor Co., Toyota Motor Corp., Fuji Heavy Industries Ltd. and certain of their subsidiaries, in the United States and elsewhere, on a model-by-model basis. According to the charge, Diamond Electric and its co-conspirators carried out the conspiracy from at least as early as July 2003 until at least February 2010.
“Today’s prosecutions brings the total to 10 companies and 15 executives held accountable for fixing prices on parts used to manufacture cars in the United States,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “The Antitrust Division and its law enforcement partners will protect American businesses and consumers from harmful price-fixing cartels and bring those responsible to justice.”
Diamond Electric manufactures and sells ignition coils. Ignition coils are part of the fuel ignition system. They are responsible for quickly releasing electricity to the spark plugs for ignition.
According to a one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, Matsunaga, a Japanese national, engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of certain seatbelts sold to Toyota in the United States and elsewhere. According to the charge, Matsunaga’s involvement in the conspiracy lasted from on or about May 2008 until at least February 2011.
“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said Robert D. Foley III, Special Agent in Charge, FBI Detroit Division. “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”
According to the charge, Matsunaga and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids submitted to Toyota. Matsunaga is the 15th individual to agree to plead guilty in the department’s ongoing antitrust investigation into price fixing and bid rigging in the auto parts industry.
Stockholm-based Autoliv Inc. is a manufacturer of automotive occupant safety systems, including certain seatbelts. In June 2012, Autoliv agreed to plead guilty and to pay a $14.5 million criminal fine for its role in a conspiracy to fix the prices of certain seatbelts, airbags and steering wheels installed in U.S. cars.Including Diamond Electric and Matsunaga, 10 companies and 15 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $828 million in criminal fines. DENSO, Nippon Seiki Ltd., Tokai Rika Co. Ltd., Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc. and TRW Deutschland Holding GmbH have already pleaded guilty. Additionally, 12 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. Two additional executives have agreed to serve time in prison and are currently awaiting sentencing.
Diamond Electric and Matsunaga are charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations and 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.The charges are the result of 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 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.
Defendants Charged in String of Armed Robberies at Bay Area Walmart and Safeway StoresRead the Press Release
The Grand Jury today returned an indictment against three individuals for their involvement in a spree of armed robberies of commercial businesses in and around the Bay Area and the subsequent attempted cover-up of those robberies, announced United States Attorney Melinda Haag.
The Grand Jury charged Melvin Landry, Jr., 22, and Dominique Martin, 22, both of Oakland, with conspiracy to commit robbery affecting interstate commerce, robbery affecting interstate commerce ("Hobbs Act robbery"), and the use of a firearm during and in relation to a crime of violence. Landry is charged with 4 counts of Hobbs Act robbery and using a firearm during those robberies. Martin is charged with 2 counts of Hobbs Act robbery and using a firearm during those robberies. According to a previously-filed criminal complaint, between 2012 and continuing into 2013, Landry and Martin robbed Wal-Mart stores in Fremont, San Leandro, and Sacramento, as well as a Safeway store in Oakland, each time brandishing a firearm at employees during the robberies. The loss amount from these robberies was at least $275,000, a large portion of which was cash.
The Grand Jury also charged Landry with obstruction of justice and attempted bribery of a federal official. According to the criminal complaint, following his initial arrest in early July, Landry offered $60,000 in cash, a Rolex watch, and a luxury vehicle if Federal Bureau of Investigation (FBI) agents would allow him to escape. The Grand Jury also charged Cassandra Dam, 29, of Oakland, with making false statements to federal agents in connection with their investigation into Landry and Martin.
The criminal complaint specifies that additional robberies are also under investigation and anyone with information is asked to contact the FBI San Francisco Division at (415) 553-7400.
The maximum statutory penalty for use/possession of a firearm in furtherance of the Hobbs Act robbery, a crime of violence, in violation of 18 U.S.C. Section 924(c), is life imprisonment and a fine of $250,000, but carries a mandatory minimum consecutive prison term of 5 years for the first Section 924(c) conviction, and a 25-year mandatory minimum consecutive term in prison for each second or successive 924(c) conviction. The maximum statutory penalty for Hobbs Act robbery and conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. Section 1951(a), is 20 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Kathryn Haun is the Assistant United States Attorney who is prosecuting the case with the assistance of Kevin Costello and Daniel Charlier-Smith. The prosecution is the result of an investigation by the FBI, the Fremont Police Department, the Alameda County District Attorney’s Office, the Alameda County Sheriff’s Department, the Oakland Police Department, the San Leandro Police Department, the Sacramento Police Department, the Pinole Police Department, and the San Rafael Police Department.
Please note, indictments and complaints contain only allegations against an individual and, as with all defendants, those named herein must be presumed innocent unless and until proven guilty.