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11 July 2013
McKinney, Texas, Man Sentenced to 10 Years in Federal Prison for Trying to Meet A 14-Year-Old Girl at A Local Mall for SexRead the Press Release
DALLAS — Rodney Allen Thompson, 44, of McKinney, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 10 years in federal prison, following his guilty plea in April 2013 to one count of transferring obscene material to a minor. He has been in custody since his arrest in December 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Thompson admits that in December 2012, he communicated with “Jane Doe,” an individual he believed to be a 14-year-old girl, whom he friended via Yahoo! Messenger. Jane Doe was in reality an officer with the Garland Police Department, acting in an undercover capacity. Thompson admitted that he communicated with Jane Doe in a sexually explicit manner, indicating that the wanted to engage in sexual activity with her. Using his computer and cell phone, Thompson ultimately persuaded, or attempted to persuade, Jane Doe to meet him at a mall in Garland to engage in illegal sexual activity with him. He also admitted that he sent Jane Doe, via webcam, an obscene video of himself engaging in sexually explicit conduct. On December 13, 2012, Thompson drove to meet Jane Doe at the mall, as they had arranged, and was arrested.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.
McComb Man Charged with Aiming Laser Pointer at Medical HelicopterRead the Press Release
An indictment was filed charging Ronald E. Deal, Sr., age 56, of McComb, Ohio, with aiming a green laser pointer at a Mercy St. Vincent Medical Center Life Flight helicopter en-route from the hospital to Bluffton Airport, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The conduct took place on June 17, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Long Island Doctor Pleads Guilty to Conspiracy to Distribute OxycodoneRead the Press Release
William J. Conway, a Baldwin, New York physician, pled guilty today in United States District Court for the Eastern District of New York to conspiring to illegally distribute the highly addictive painkiller oxycodone to patients, who the defendant knew were addicts and without performing any meaningful medical examination. When sentenced, Conway faces up to 20 years in prison, a $1 million fine and loss of his license to practice medicine.
The guilty plea was announced by Loretta E. Lynch, the United States Attorney for the Eastern District of New York, Brian R. Crowell, Special Agent-in-Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, and Thomas V. Dale, Commissioner, Nassau County Police Department. The plea was entered before the Honorable Leonard D. Wexler at the United States Courthouse in Central Islip, New York.
Conway was arrested on June 6, 2012 as part of the Eastern District of New York’s Prescription Drug Initiative, led by the United States Attorney’s Office and the DEA, working with the Nassau County Police Department, the New York State Police and numerous other local, state and federal law enforcement agencies. He has been held in custody since the arrest.
According to court filings and records of the New York State Bureau of Narcotics Enforcement, between January 2009 and November 2011, Conway issued 5,554 oxycodone prescriptions – for a total of 782,032 pills – to numerous individuals. During the execution of a federal search warrant at his offices on March 1, 2012, Conway surrendered his DEA registration authorizing him to prescribe controlled substances. Despite that surrender, Conway continued to engage in the conspiracy to illegally distribute oxycodone after that date.
On April 23, 2011, Giovanni Manzella, a 34 year-old man from Long Beach, New York, died of an overdose of oxycodone less than 48 hours after Conway provided him with two prescriptions totaling 450 pills. On October 27, 2011, 29 year-old Christopher Basmas of Hicksville, New York was pronounced dead of an overdose, also within two days after receiving a prescription from Conway for 180 pills of oxycodone. Patient files seized by the DEA revealed that neither man received meaningful medical examinations from Conway. The files for these and other patients typically consisted of little more than notations of a patient’s height, weight and blood pressure. After Basmas’ death, Conway attempted to alter patient files to cover his tracks, but still continued to issue prescriptions – in some instances, in the names of individuals he had never treated, or even met.
In September 2012, Conway’s office assistant, Robert Hachemeister, was charged with conspiring with Conway to illegally distribute oxycodone, and with distributing oxycodone to Conway’s patients. Hachemeister, who had worked as an office assistant for Conway since approximately 1995, distributed thousands of oxycodone pills using prescription pads that were pre-signed by Conway between 2011 and 2012. On January 9, 2013, Hachemeister pled guilty to conspiring to illegally distribute oxycodone and is currently awaiting sentencing.
“Instead of providing needed medical services to his community, Dr. Conway directly contributed to the tragedy of prescription drug abuse that has swept across our district and our nation. On Conway’s watch, oxycodone pills might as well have been mints in a candy jar. Even the death of his patients only led him to try to conceal his actions, rather than truly care for his patients. Today’s conviction should serve as a warning to those who would violate their oath as medical professionals to do no harm: if you illegally distribute prescription drugs, you will be held accountable,” stated United States Attorney Lynch. “I want to thank our partners at the DEA, Nassau County Police and the New York State Police for their effective work in investigating this case.”
DEA Special Agent-in-Charge Crowell stated, “One of DEA’s top priorities is to stop overdoses and deaths by fully identifying and prosecuting those responsible for putting diverted drugs in the hands of those abusing opiates. Dr. Conway has been tied to local overdoses that bring home the enormity of the country’s prescription pill epidemic. One out of every ten high school seniors has abused oxycodone or hydrocodone for recreational use. Investigating rogue doctors and increasing the awareness of the dangers associated with Rx abuse are two significant steps our law enforcement team takes to curtail this problem and to protect our communities.”
The Prescription Drug Initiative is a joint effort led by the United States Attorney’s Office for the Eastern District of New York, the DEA and the five District Attorneys in Kings, Nassau, Queens, Richmond and Suffolk Counties, working in conjunction with the New York City Police Department and the Nassau and Suffolk County Police Departments, as well as the Department of Health and Human Services, the Internal Revenue Service, New York/New Jersey HIDTA, the New York State Department of Health and the New York State Medicaid Inspector General. The Prescription Drug Initiative is a broad and comprehensive approach to the epidemic of prescription drug trafficking and abuse, involving not only criminal investigation and prosecution at the federal, state and local level, but also the targeted use of civil law enforcement, regulatory action and community outreach. The Initiative has expanded information-sharing among federal and state enforcement agencies to better identify and target suspected traffickers, and ensure greater use of criminal, civil, forfeiture, injunctive and other tools.
The government’s case is being prosecuted by Assistant United States Attorneys Sean C. Flynn and Michael P. Canty.
The Defendant
Name: WILLIAM J. CONWAY
Age: 70Local Attorney Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO - STEPHEN B. EVANS was sentenced to 15 months in prison and ordered to pay $154,000 restitution on mail and wire fraud charges involving his failure to pay clients and expenses, and instead keeping client settlement funds for himself.
According to court documents, between 2007 and 2012, Evans was a local attorney with a general practice, including the representation of people who were injured or had claims based on contract or negligence where he would enter into a contingent fee arrangement. With such fee arrangements, Evans would receive a certain percentage of any successful settlement, with the rest to be paid to the client and to pay the client's expenses. Insurance companies mailed settlement checks to Evans at his law firm's address. The checks were typically made payable to Evans and the client. As part of his fraud scheme, Evans often falsely represented to his clients that he was withholding a portion of the settlement funds for use in paying medical or similar expenses. On many occasions, Evans kept and spent those funds. Evans' scheme resulted in fraud losses in excess of $150,000.
Evans, St. Louis County, pled guilty in January to one felony count of mail fraud and one felony count of wire fraud. He appeared today for sentencing before United States District Judge Jean C. Hamilton.
The case was investigated by the United States Postal Inspection Service with the assistance of attorney disciplinary authorities in Missouri and Illinois. Assistant United States Attorney John Bodenhausen handled the case for the U.S. Attorney's Office.
Life Sentences Ordered for Three Sikeston Men in Federal Cocaine Conspiracy CaseRead the Press Release
Cape Girardeau, MO: This morning, three Sikeston, Missouri, men previously found guilty by a jury of conspiracy to possess more than 5 kilograms of cocaine with the intent to distribute, as well as multiple distribution charges, were sentenced to life imprisonment by United States District Judge John A. Ross.
The evidence previously presented at trial showed that beginning in the Fall of 2009, Corey E. Turner, Sr., Antonio Turner and Donald R. Turner, Jr., who are all cousins, along with others, entered into an agreement to pool their money together as often as they could, to purchase large quantities of cocaine from various suppliers. Some of the suppliers were located in Missouri, however, much of the cocaine was coming from suppliers located in Blytheville, Arkansas. The members of the conspiracy then split that cocaine amongst themselves, cooked the powder cocaine into crack cocaine and sold it on the streets.
COREY E. TURNER, SR., ANTONIO TURNER and DONALD R. TURNER, JR., were all sentenced to life imprisonment for the conspiracy charge and 360 months imprisonment on the individual distribution and aiding and abetting the distribution of controlled substance charges.
The fourteen co-conspirators who previously entered guilty pleas for their roles in the conspiracy, include: Joe Lenzie Turner of Sikeston, Missouri (sentenced to 240 months); Dwayne Woods of Caruthersville, Missouri (not yet sentenced); Derrick L. Turner of Sikeston (sentenced to 192 months); Cemond Brooks of Blytheville, Arkansas (sentenced to 135 months); Mario Baker of Sikeston (sentenced to 180 months); Roderick Marks of Sikeston (sentenced to 138 months); Elgin Mills of Sikeston (sentenced to 132 months); Corey Weatherspoon of Blytheville, Arkansas (sentenced to 120 months); David Turner of Sikeston (sentenced to 120 months); Corey E. Turner, Jr., of Sikeston (sentenced to 120 months); Dawnika Hunt of Caruthersville (sentenced to 72 months); Shelby “Kay” White of Sikeston (sentenced to 60 months); Anthony Wilder of Sikeston (sentenced to 60 months); and Jerriereneika Dorsey of Sikeston (sentenced to 54 months).
The seventeen convictions in this case are the result of a complex and long-term investigation. This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Sikeston Department of Public Safety, the Southeast Missouri Drug Task Force, the Missouri State Highway Patrol, the Bootheel Drug Task Force, the Second Judicial Drug Task Force of Mississippi County, Arkansas, and the Scott County Prosecuting Attorney’s Office. Assistant United States Attorney Abbie Crites-Leoni handled the prosecution for the U.S. Attorney’s Office.
Las Vegas Agent Convicted in Mortgage Fraud SchemeRead the Press Release
A Las Vegas mortgage agent has been convicted for his role in a “cash back at closing” mortgage fraud scheme that netted $1.43 million in fraudulent mortgage loans, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, and Acting Special Agent in Charge William C. Woerner of the FBI’s Las Vegas Field Office.
After a three-day trial before U.S. District Judge Larry Hicks in the District of Nevada, a federal jury convicted Jawad “Joe” Quassani, 42, on July 10, 2013, of one count of conspiracy to commit wire fraud and mail fraud, two counts of wire fraud, and two counts of mail fraud.
According to court documents and evidence presented at trial, Quassani participated in a scheme in which the prices of two homes were falsely inflated, mortgage loans were obtained through the submission of loan applications containing false and fraudulent information about the buyer’s income and intent to occupy the homes as primary residences, a portion of the loan proceeds was diverted at the close of escrow to the defendant’s co-conspirators, and commissions on the fraudulent loans were paid to Quassani and his co-conspirator. Evidence at trial established that Quassani, a licensed mortgage agent at Rapid Funding Group, conceived the scheme together with two of his co-conspirators, prepared one of the loan applications and arranged for the preparation of the other, and shared in the commissions generated by transactions that had no purpose other than to generate profits for the co-conspirators.
Co-conspirators Anita Mathur and Shirjil “Sean” Qureshi previously pleaded guilty in related cases in Las Vegas to one count of conspiracy to commit bank fraud, wire fraud and mail fraud. Both are awaiting sentencing.
This case was investigated by the FBI. Trial Attorneys Stephen J. Spiegelhalter and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case.
Today’s conviction 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.La Cosa Nostra Underboss Sentenced to 188 Months in PrisonRead the Press Release
PHILADELPHIA - Joseph Massimino, 63, of Philadelphia, was sentenced today to 188 months in prison for his participation in a racketeering conspiracy involving extortion, loan sharking, and illegal gambling. In addition to the prison term, U.S. District Judge Eduardo C. Robreno ordered three years of supervised release. Massimino must also pay a $5,000 fine.
On Feb. 5, 2013, after a four-month trial, a jury convicted Massimino 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, Massimino, as a “made” member and underboss, extorted “street tax” payments from a bookmaker, used threats of violence against debtors to collect loan sharking payments, and forced the owners of a vending company to sell the portion of their business related to the operation of illegal video poker machines. In addition, Massimino ran an illegal electronic gambling device business for the mob, providing video poker machines and other gambling devices for bars, restaurants, convenience stores, coffee shops and other locations in Philadelphia and its suburbs. In one of these locations, Massimino also operated an illegal sports bookmaking business.
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 was 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, 215-861-8525Kewa Pueblo Man Pleads Guilty to Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Preston Coriz, 32, a member of Kewa Pueblo, pleaded guilty this morning to an indictment charging him with aggravated sexual abuse of a child under the age of 12 year. Under the terms of his plea agreement, Coriz will be will be sentenced to a federal prison term within the range of 15 to 18 years followed by a term of supervised release to be determined by the court. Preston also will be required to register as a sex offender.
Coriz’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Coriz was arrested in Nov. 2012, on an indictment charging him with sexually abusing a child in Nov. 2008, in Indian Country (Kewa Pueblo) within Sandoval County, N.M. Today, Coriz entered a guilty plea to the indictment and admitted sexually assaulting a child under the age of 12 by touching the child’s genitals with his hand and finger.
This case was investigated by the Santa Fe office of the FBI and the Southern Pueblos Agency of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback. It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Justice Department Releases Educational Video About Discrimination in Employment Eligibility VerificationRead the Press Release
The Justice Department announced today the launch of a new educational video to assist employers in avoiding charges of discrimination in the employment eligibility verification form I-9 process and in the use of E-Verify. The video also helps educate employees about their legal rights. The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) within the department’s Civil Rights Division enforces the anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employers from discriminating against work-authorized individuals in hiring, firing, recruitment or referral for a fee, regardless of their citizenship status or national origin. The law also prohibits discrimination during the form I-9 and E-Verify processes.
OSC developed its latest video to address issues that frequently arise from calls to its hotline and charges filed. Employers sometimes incorrectly believe that they need to request more documents than are necessary for the employment eligibility verification form I-9. Additionally, employers using E-Verify may improperly request specific documents due to misunderstanding of E-Verify requirements. OSC’s new video highlights some practices that are not permissible and may lead to claims under the anti-discrimination provision.
“We believe this video will help both employers and employees across the country understand employment eligibility verification rules,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “Federal law prohibits discrimination in the employment eligibility verification process, and the Justice Department is committed to enforcing the law.”
The video may be viewed at http://youtu.be/VNHFDusJqRg
The latest OSC video is part of OSC’s educational video series that can be found here: http://go.usa.gov/2P6m . OSC also operates a hotline for employers and workers, frequently providing guidance to employers on how to avoid discrimination and educating employees on rights protected by the anti-discrimination provision. OSC offers live webinars for both employers and employees to educate employers on avoiding workplace discrimination and to educate employees about their rights. For more information about protections against employment discrimination under the immigration law, call OSC’s worker hotline at: 1-800-255-7688 (1-202-616-5525, TTY for the hearing impaired); call OSC’s employer hotline at: 1-800-255-8155 (1-202-616-5525, TTY for the hearing impaired); send an e-mail to: [email protected] ; or visit OSC’s website http://www.justice.gov/crt/about/osc .
Justice Department Releases Educational Video About Discrimination in Employment Eligibility VerificationRead the Press Release
WASHINGTON - The Justice Department announced today the launch of a new educational video to assist employers in avoiding charges of discrimination in the employment eligibility verification form I-9 process and in the use of E-Verify. The video also helps educate employees about their legal rights. The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) within the department’s Civil Rights Division enforces the anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employers from discriminating against work-authorized individuals in hiring, firing, recruitment or referral for a fee, regardless of their citizenship status or national origin. The law also prohibits discrimination during the form I-9 and E-Verify processes.
OSC developed its latest video to address issues that frequently arise from calls to its hotline and charges filed. Employers sometimes incorrectly believe that they need to request more documents than are necessary for the employment eligibility verification form I-9. Additionally, employers using E-Verify may improperly request specific documents due to misunderstanding of E-Verify requirements. OSC’s new video highlights some practices that are not permissible and may lead to claims under the anti-discrimination provision.
“We believe this video will help both employers and employees across the country understand employment eligibility verification rules,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “Federal law prohibits discrimination in the employment eligibility verification process, and the Justice Department is committed to enforcing the law.”
The video may be viewed at http://youtu.be/VNHFDusJqRg
The latest OSC video is part of OSC’s educational video series that can be found here: http://go.usa.gov/2P6m. OSC also operates a hotline for employers and workers, frequently providing guidance to employers on how to avoid discrimination and educating employees on rights protected by the anti-discrimination provision. OSC offers live webinars for both employers and employees to educate employers on avoiding workplace discrimination and to educate employees about their rights. For more information about protections against employment discrimination under the immigration law, call OSC’s worker hotline at: 1-800-255-7688 (1-202-616-5525, TTY for the hearing impaired); call OSC’s employer hotline at: 1-800-255-8155 (1-202-616-5525, TTY for the hearing impaired); send an e-mail to: [email protected]; or visit OSC’s website http://www.justice.gov/crt/about/osc.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Justice Department Files Lawsuit Against California Department of Corrections and Rehabilitationfor Sex DiscriminationRead the Press Release
The Department of Justice announced today the filing of a lawsuit, against the California Department of Corrections and Rehabilitation (CDCR), alleging that CDCR discriminated against Joe B. Cummings on the basis of his sex in violation of Title VII of the Civil Rights Act of 1964, as amended. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin and religion.
The lawsuit filed in the U.S. District Court for the Central District of California, alleges that Cummings’s former co-worker at CDCR sexually harassed him for more than a year until she was placed on administrative leave, for unrelated reasons, in October 2009. According to the complaint, Cummings, a male cook with CDCR, was subjected to frequent unwanted and unwelcomed sexual advances made towards him by a female co-worker, including frequent profane and suggestive comments and inappropriate touching of his person. The complaint alleges that the female co-worker’s misconduct escalated in August 2008, when she forced her hand down Cummings’s pants and struck him in the head.
The United States alleges that Cummings made numerous complaints to his supervisors about the sexual harassment and that CDCR failed to take timely steps to end the harassment or to discipline the harasser. The complaint alleges that the CDCR failed to follow its own anti-discrimination policy, which charges CDCR’s supervisors with preventing and correcting allegations of sexual harassment of which they become aware through either a report made to them or by personal observation. Through this lawsuit, the United States seeks declaratory and injunctive relief requiring the CDCR to develop and implement policies that would prevent CDCR employees from being subjected to sexual harassment. The United States also seeks monetary relief for Cummings to compensate him for the damages he sustained as a result of the alleged discrimination.
Cummings originally filed a charge of sex discrimination with the California Department of Fair Employment and Housing, which referred the charge to the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC’s Los Angeles District Office investigated the matter, determined that there was reasonable cause to believe that discrimination had occurred, and referred the matter to the Department of Justice.
“Employees, regardless of their sex, have the right to work in an environment that is free from sexual harassment,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division will continue to vigorously enforce that right."
The enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Department of Justice is available on its website at www.usdoj.gov/crt.
Janice D. Rey and Devon Mclean Sentenced to Prison for Fraudulent Investment SchemeRead the Press Release
St. Thomas, USVI - District Court Chief Judge Curtis V. Gomez today sentenced Janice D. Rey to 125 months in prison and ordered her to pay restitution to individual victims in the amount of $3,006,260 for her role in a scheme that defrauded investors of millions of dollars, announced United States Attorney Ronald W. Sharpe and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service - Criminal Investigation. Rey also was ordered to pay restitution to the Virgin Islands Bureau of Internal Revenue in the amount of $550,681.31.
Rey’s co-conspirator, Devon McLean was sentenced to 70 months in prison, and also ordered to pay restitution in the amount of $3,006,260. The court also entered a forfeiture money judgment in the amount of $5.5 million against both Rey and McLean.
On April 4, 2013, a federal jury convicted Rey of one count of conspiracy, eight counts of wire fraud, 43 counts of money laundering, and four counts of tax evasion under Virgin Islands law. Rey was sentenced to 60 months in prison for her conviction on the territorial tax charges, to be served concurrently with her sentence on the federal charges. On March 5, 2013, McLean pleaded guilty to wire fraud conspiracy.
According to the evidence presented at Rey’s trial, Rey and co-conspirator Devon McLean organized Paramount Group, LLC, and opened a bank account for the partnership in Nevada. Rey opened a store front location in St. Thomas called Rey Financial, which she used to meet with potential investors. Rey made false material representations and material factual omissions to potential investors in order to induce them to invest with Paramount Group. For example, Rey told the investors that their investments were safe, that Paramount Group was a part of Haliburton, that the investors were investing in “platform investments,” and that they would double their money in less than a year.
The case was investigated by the IRS Criminal Investigation Division. It was prosecuted by Assistant U.S. Attorneys Kim L. Chisholm and Everard Potter.
Inmate Charged with Escaping from Marion Prison Camp 13 Years AgoRead the Press Release
Donald E. Bruce, 74, of Elberfeld, Indiana, was arraigned today in United States District Court in Benton on an indictment charging him with escaping from the Federal Prison Camp at Marion, Illinois, 13 years ago, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on July 9th, alleged that the offense occurred on October 6, 2000. At that time, a Criminal Complaint was filed and an arrest warrant issued for Bruce. He was arrested on that warrant on June 28, 2013, in Indiana by the United States Marshal’s Service after its fugitive investigation led them to him.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
At the time of his escape, Bruce was serving a 135 month sentence for conspiring to possess with intent to distribute methamphetamine and had approximately 9 years of that sentence left to serve. If convicted of the escape offense, Bruce faces an additional 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Bruce was remanded to the custody of the United States Marshal to await further proceedings.
The case was investigated by the United States Marshal’s Service and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Indictment: Postal Employee Stole Pain Pills Being Delivered by MailRead the Press Release
KANSAS CITY, KAN. – A U.S. Postal Service employee in Kansas City, Kan., is charged with stealing pain pills that were being delivered to patients by mail, U.S. Attorney Barry Grissom said today.
Sherry Robertson, 40, Kansas City, Kan., is charged with five counts of theft of mail by a postal employee and one count of possession with intent to distribute Hydrocodone. The indictment alleges Robertson removed the pills from mail on Sept. 20, 2012, Jan. 25, 2013, March 1, 2013, April 13, 2013, and May 8, 2013.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Postal Service and the VA Office of Inspector General investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
OTHER INDICTMENTSWesley J. Kelley, 36, is charged with one count of unlawful possession of a firearm while under indictment, one count of unlawful possession of a firearm while a fugitive from justice, one count of theft occurring at Fort Leavenworth and one count of interstate transportation of a stolen vehicle. The crimes are alleged to have occurred in February and March 2013 in Douglas and Leavenworth counties in Kansas.
Upon conviction, the crimes carry the following penalties: Unlawful possession of a firearm while under indictment: A maximum penalty of five years in federal prison and a fine up to $250,000.
Unlawful possession of a firearm while a fugitive from justice: A maximum penalty of 10 years and a fine up to $250,000.
Theft occurring at Fort Leavenworth: A maximum penalty of five years in federal prison and a fine up to $250,000.
Interstate transportation of a stolen vehicle: A maximum penalty of 10 years and a fine up to $250,000.The Lawrence Police Department; the U.S. Army Criminal Investigation Command, Fort Leavenworth; the Marion County Sheriff’s Office; and the White Springs (Florida) Police Department investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
Bryan Schuck, 31, is charged with failing to register as required by the Sex Offender Registration and Notification Act. The crime is alleged to have occurred May 10, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
Derek T. Brownlee, 35, Kansas City, Mo., is charged with one count of bank robbery. The indictment alleges he robbed the Metcalf Bank at 7800 College Boulevard in Overland Park on July 1, 2013.
Brownlee initially was charged in a criminal complaint filed July 2 in U.S. District Court in Kansas City, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. The FBI, the Overland Park Police Department and the Kansas City, Mo., Police Department investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
Jose A. Aleman, 31, is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Jan. 9, 2013, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Jesus Enrique Moreno, 25, is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred June 20, 2013, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of not less than 10 years in federal prison and a fine up to $250,000. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Adrienne Lopez, 26, Pico Rivera, Calif., and Angela Marie Lopez, 34, El Monte, Calif., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred June 21, 2013, in Seward County, Kan.
If convicted, they face a penalty of not less than 10 years and a fine up to $4 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Harrisburg Man Sentenced to over 17 Years in Prison for Crack Cocaine and Firearm OffensesRead the Press Release
Remus Octavris Henning, 35, of Harrisburg, Illinois, was sentenced today in United States District Court in Benton to a total term of 211 months in prison for possessing crack cocaine with the intent to distribute it and carrying a loaded .45 caliber firearm during and in relation to that crime, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The offenses occurred on July 20, 2012, in Harrisburg. On that date, while being taken into custody on an outstanding warrant by the Harrisburg Police Department, officers found approximately 16 grams of crack cocaine in numerous individually wrapped packages in his pocket and a loaded .45 caliber semi-automatic pistol in his waistband.
In addition to the term of imprisonment, Henning was ordered to pay the United States fines and special assessments totaling $400, was placed on a 5 year term of supervised release to follow his incarceration, and the firearm and ammunition he possessed was forfeited to the United States. Henning was returned to the custody of the United States Marshal to await designation by the Federal Bureau of Prisons to one of its facilities.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and was prosecuted by Assistant United States Attorney James M. Cutchin.
Hamburg Man Sentenced on Firearm ChargeRead the Press Release
COUNCIL BLUFFS, IA – On July 11, 2013, David Shane Anderson, age 41, of Hamburg, Iowa, was sentenced in United States District Court in Council Bluffs, Iowa, on a charge of felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Anderson to 46 months in prison, to be followed by 2 years of supervised release. Anderson was also ordered to pay a $100 special assessment for the Crime Victim Fund, and to forfeit the .410 shotgun and ammunition seized from him by law enforcement officers. Anderson remained in the custody of the United States Marshal’s Service pending return to Ringgold County, Iowa, where Anderson is facing a State of Iowa methamphetamine charge.
Anderson was sentenced upon his plea of guilty entered on April 4, 2013, to felon in possession of a firearm, having possessed a .410 shotgun on March 20, 2012, near Hamburg, Iowa. A Fremont County Sheriff Deputy, answering a call for “shots fired”, seized the shotgun from Anderson as he was found carrying it out of a field. Anderson was in the company of some minor children. Prior to possessing the shotgun, Anderson had, among other convictions, been convicted of separate felony charges of burglary in Iowa and in Missouri.
This case was investigated by the Fremont County Sheriff’s Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Grand Jury Indicts 14 in Inland Empire on Charges of Defrauding Federal Government to Obtain Money and U.S. PassportsRead the Press Release
RIVERSIDE, California – A federal grand jury has indicted 14 defendants on various fraud charges, including theft of government benefit funds and passport fraud.
Over the past two weeks, a federal grand jury issued indictments, with the final cases being filed yesterday afternoon. The grand jury has now returned 13 indictments, one of which charges two defendants.
Eleven of the 14 indicted defendants are charged with theft of government property. These defendants allegedly took and spent government benefit payments to which they knew they were not entitled. Some of these cases involve payments the government had issued to their deceased family members, while others concern payments made after the defendants made false statements to the government. The alleged false statements related to, among other things, identities, social security numbers, military service history, and employment or marital status.
The remaining three defendants are charged with making false statements to the Department of State to obtain United States passports. These false statements related to, among other things, the defendants’ identities, dates and places of birth, and social security numbers.
The 13 indictments are the result of a joint enforcement initiative by the United States Department of Veterans Affairs’ Office of Inspector General, the Social Security Administration’s Office of Inspector General, the Department of State’s Diplomatic Security Service, and the United States Attorney’s Office.
The 11 defendants charged with theft of government property in excess of $1,000 are: Audrey Owens, 60, of Upland, who is scheduled to be arraigned on the charges on July 24;
Sarah Rose, 57, of San Bernardino, who is scheduled to be arraigned on the charges on July 24;
Michele King, 42, of San Bernardino, who is scheduled to be arraigned on the charges on July 24;
James Cramer, 78, of Banning, for whom an arrest warrant has been issued;
Wilma Welsh, 82, of Perris, who is scheduled to be arraigned on the charges on July 31;
Zandria Rhone, 61, of Riverside, who is scheduled to be arraigned on the charges on July 31;
Thomas Fothergill, 73, of Perris, who is scheduled to be arraigned on the charges on August 7;
Martin Munoz Villa, 42, of Riverside, who is also charged with aggravated identity theft and who is scheduled to be arraigned on the charges on August 7;
Josie Lee Anderson, 64, of San Bernardino, who is also charged with submitting a false written statement to a government agency and for whom an arrest warrant has been issued;
Walton Monagan, 70, of Hemet, who is scheduled to be arraigned on the charges on August 7; and
Editha Pagdilao, 66, of Redlands, who is scheduled to be arraigned on the charges on August 7.
All of the defendants who have received summons for arraignments have been directed to appear in United States District Court in Riverside.
Arrest warrants have been issued for the three defendants charged with passport fraud in connection with this initiative. Those three defendants are:
Nelida Alcauter, 36, of Temecula; Maria Altemose, of Temecula; and
Angela Alicia Sanker, 56, of San Bernardino.
Indictments contain allegations that a defendant has committed a crime. Every defendant is presumed innocent unless proven guilty in court.Those convicted of theft of government property in excess of $1,000 or passport fraud face a maximum statutory penalty of 10 years in federal prison. Those convicted of submitting a false written statement to a federal agency face a maximum statutory penalty of five years in federal prison. Those convicted of aggravated identity theft face a statutory minimum, consecutive sentence of two years in federal prison.
Release No. 13-094
Georgia Man Sentenced to 15 Years in Prison on Federal Child Pornography ChargesRead the Press Release
Jacksonville, Florida - U.S. District Judge Timothy J. Corrigan yesterday sentenced Stephen Joseph Woods (34, Savannah, Georgia) to 15 years in prison for sending notices over the Internet offering to produce and receive child pornography. Woods was also ordered to serve a life term of supervision and to register as a sex offender, following his release from prison. Woods has been in custody since his arrest on November 2, 2012, in St. Augustine, Florida. Woods pleaded guilty to this charge on March 14, 2013.
According to court documents, during October and November 2012, the Volusia County Sheriff’s Office (“VCSO”), the St. Johns County Sheriff’s Office (“SJCSO”) and other law enforcement officers conducted undercover Internet operations targeting individuals seeking to have sex with minor children. On October 12, 2012, Woods responded to an Internet bulletin board posting, indicating that Woods could teach a 14-year old “child” about sex. During the ensuing email conversation, Woods confirmed that the “child” was 14 years old.
During the next two weeks, Woods and the undercover detective, who used the personae of a 14-year old female “child,” engaged in online conversations by instant messaging and email. During these conversations, Woods indicated his desire to have sex with the “child.” On October 29, 2012, Woods and the “child” engaged in an online conversation and discussed a location for their meeting, during which Woods offered to produce videos of the “child” engaged in sexually explicit conduct. That same day, Woods asked if he could “come see [‘the child’]” that weekend.
On October 31, 2012, Woods and the undercover detective arranged to meet in St. Augustine at a motel, at a later date. On the evening of November 2, 2012, Woods arrived at the motel in his vehicle. Woods approached the undercover detective, whom he believed was the “child’s” relative, and subsequently asked the detective to have the “child” come outside. At that point, Woods was arrested.
This case was investigated by the St. Johns County Sheriff’s Office, the Clay County Sheriff’s Office, the Volusia County Sheriffs’ Office, the Bay County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fridley Man Pleads Guilty to Transporting A Minor to Engage in ProstitutionRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 27-year-old Fridley man pleaded guilty to transporting a minor to engage in prostitution. Napoleon Long, Jr., pleaded guilty to one count of transportation of a minor with intent to engage in criminal sexual activity. Long, who was charged via an Information, entered his plea before United States District Court Judge Richard H. Kyle.
In his plea agreement, Long admitted that in or about October 2011, he transported a 17-year-old girl from Minnesota to Colorado Springs, Colorado, with the intent that she engage in prostitution. Long also admitted knowing the girl was 17, and that she engaged in at least one sexual act while in Colorado and a pattern of sexual activity while working as a prostitute for him.
For his crime, Long faces a potential maximum penalty of life in prison. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Anoka County Sheriff’s Office and U. S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorneys David P. Steinkamp and Manda M. Sertich.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/Former U.S. Army Corps of Engineers Manager Sentenced to More Than 19 Years in Prison for $30 Million Bribery and Kickback SchemeScam Involved Steering of Government Contracts; Defendant Is Among 15 People to Plead GuiltyRead the Press Release
WASHINGTON - Kerry F. Khan, 55, a former program manager for the U.S. Army Corps of Engineers, was sentenced today to 19 years and seven months in prison on federal charges stemming from his leadership of a ring of corrupt public officials and government contractors that engaged in bribery and kickbacks and that stole over $30 million through inflated and fictitious invoices.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
To date, a total of 15 people and one company have pled guilty to charges in the largest domestic bribery and bid-rigging scheme in the history of federal contracting cases. Khan was the ninth defendant to be sentenced. According to the government’s evidence, Khan was paid, directly and indirectly, over $12 million through the bribery scheme. The government contracts were awarded from 2007 until 2011 through the U.S. Army Corps of Engineers and the Department of the Army.
The scheme involved six companies, and could have resulted in even more losses for the government. Before his arrest, Khan was attempting to steer a planned $1 billion federal contract to a favored contractor in return for payments.
Among other things, Khan used his share of the stolen proceeds to pay off a mortgage and refurbish his primary residence, and also in connection with the purchase of another dozen pieces of real property. The money also was used for home improvements; flat screen televisions; computer equipment; furniture; two Rolex watches; airlines tickets and luxury international hotel accommodations; high-end liquor, and other major personal expenses.
Khan, formerly of Alexandria, Va., pled guilty in May 2012 to charges of bribery and conspiracy to commit money laundering. He was sentenced by the Honorable Emmet G. Sullivan of the U.S. District Court for the District of Columbia.
In addition to the prison term, Judge Sullivan ordered Khan to pay $32.5 million in restitution to the U.S. Army Corps of Engineers. The judge also entered a forfeiture money judgment against Khan for $11,082,687, and forfeited to the United States more than $1.3 million in bank account funds, 13 properties in Virginia, Florida, and West Virginia, and a 2011 GMC Yukon Denali truck. Khan has previously forfeited over $700,000 in bank account funds and four luxury automobiles.
All of those sentenced so far have received prison terms. The investigation is continuing.
Kerry Khan was the ringleader of the largest bribery and bid-rigging scheme in the history of federal contracting,” said U.S. Attorney Machen. “His corrupt network of public officials and private contractors looted the U.S. Treasury for years. Khan is now headed to prison for more than 19 years, where the friends, family, and colleagues he brought into his criminality will be joining him. His lengthy prison sentence is an appropriately forceful response to this brazen scheme.”“Through a series of deals laced with bribes and kickbacks, Mr. Khan stole more than $30 million from the American taxpayer for his personal benefit. If it had not been for law enforcement intervention, a $780 million federal contract may also have been awarded as part of the scheme,” said Assistant Director in Charge Parlave of the FBI. “Today’s sentencing serves as a reminder that corruption will not be overlooked or downplayed, and those who take part in such activity will pay the price for their crimes.”
“Criminal conspiracies involving financial fraud of this magnitude are frequently described as a house of cards, and the underlying structure oftentimes falls apart and exposes the individuals’ responsible for what they are, greedy criminals,” said Special Agent in Charge Kelly of IRS-CI. “Mr. Khan's contributions to this massive bribery and bid-rigging scheme were extensive and significant. Today's sentence should be a warning to those involved in criminal activities that they, like Mr. Khan, will be held accountable for their actions.”
“The consequence to those who betray the public trust in exchange for bribe payments is evident by today’s announcement,” said Inspector General Gustafson of the SBA. “Kerry Khan served as the ringleader in an extraordinary conspiracy to defraud the government, and his sentence demonstrates there is no tolerance for criminal activity by Federal employees who hold positions of trust in the federal contracting process. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“At a time when Government and taxpayer resources are being stretched to their limits and our service members continue to make sacrifices to protect our national security, it is detestable that officials trusted with the oversight of Department of Defense resources and programs blatantly conspired with contractors to defraud the Government and, eventually, the American warfighter,” said Special Agent in Charge Craig of DCIS. “The sentence imposed in this case sends a clear message to those who may follow in the defendant’s footsteps—the Defense Criminal Investigative Service and our law enforcement partners will take aggressive action to identify and investigate those that endeavor to take advantage of the Department of Defense and the men and women of the uniformed services.”
“Army CID and its law enforcement partners joined together in bringing Mr. Khan and his co-conspirators to justice and we are very pleased with the sentencing handed down today," said Director Robey. “Our highly trained agents are determined to root out cases of bribery and bid-rigging and we will continue to pursue all allegations of fraud perpetrated against the U.S. Army with a great sense of importance and urgency."
***Khan was among four men arrested on Oct. 4, 2011 and, according to the government’s evidence, he was the mastermind of the scheme. The others arrested that day - Michael A. Alexander, a former program manager for the U.S. Army Corps of Engineers, businessman Harold F. Babb, and Khan’s son, Lee A. Khan - earlier pled guilty to charges. Khan, Lee Khan, Babb, and Alexander have been in custody since their arrests.
Khan worked for the Army Corps of Engineers from 1994 until the time of his arrest, in October 2011. He was a program manager and contracting officer’s technical representative with the Directorate of Contingency Operations. In that position, Kerry Khan had authority to, among other things, place orders for products and services through federal government contracts. He also had authority to certify that the work on orders had been completed.
According to the government’s evidence, Khan carried out the scheme with others, including Alexander, a colleague, who was then a program manager with the Army Corps of Engineers; Babb, the former director of contracts at Eyak Technology LLC (EyakTek), an Alaska Native-owned small business; Alex N. Cho, the former chief technology officer of Nova Datacom, LLC, a provider of information assurance and security services to federal agencies and commercial companies; Larry G. Corbett, owner of Core Technology LLC and Enterprise Technical Solutions, Inc.; Robert L. McKinney, the president of Alpha Technology Group, Inc., a provider of program management services, James Edward Miller, the owner of Big Surf Construction Management LLC, and Nick Park, a former employee of Nova Datacom who later opened his own business, Unisource Enterprise Inc. (UEI).Also participating in the scheme, according to the government’s evidence, were Khan’s son, Lee, and his youngest brother, Nazim Khan. All have pled guilty to charges.
Nova Datacom, LLC pled guilty to a federal charge of conspiracy to defraud the United States. Others who have pled guilty as part of the investigation include Min Jung Cho, the former president of Nova Datacom, LLC; Theodoros Hallas, the former Executive Vice President of Operations for Nova Datacom, LLC; John Han Lee, a co-founder of Unisource Enterprise Inc.; King Everett Johnson, a former employee of Unisource Enterprise Inc. and the founder of Integrated Business and Technology Solutions, LLC, and Oh Sung Kwon, also known as Thomas Kwon, the co-founder and chief executive officer of Avenciatech, Inc.
According to a statement of offense signed by Khan, in or around 2006, he and Alexander agreed to work together to obtain government contracts for corrupt contractors who would reward them with bribes. Among others, Khan and Alexander worked with Babb on a scheme to use EyakTek as a vehicle for channeling contracts awarded by the Army Corps of Engineers. EyakTek, in turn, hired Nova Datacom and other sub-contractors that submitted fraudulently inflated or fictitious quotes for equipment and services. As directed by Khan and Alexander, the sub-contractors kicked back a significant portion of the payments to them, as bribes for keeping the money flowing their way from the Army Corps of Engineers.
Khan and the others attempted to obtain more than $30 million through the bribery scheme primarily through the submission of fraudulently inflated invoices to the government, according to the statement of offense. In most cases, the corrupt companies provided the equipment and services legitimately included in the contracts, but also billed for inflated and fictitious equipment and services. Khan referred to the fraudulently inflated amounts as “overhead.” Khan, Alexander, and the contractors agreed to split the “overhead.”
Khan admitted obtaining, directly and indirectly, more than $12 million from Nova Datacom; Alpha Technology Group; Big Surf Construction; Core Technology LLC and Enterprise Technical Solutions, Inc.; and Ananke, LLC. He also admitted that, at the time of his arrest, he was owed more than $14 million in additional “overhead” payments from the contractors.
***Alexander, Babb, Corbett, McKinney, and Miller have been sentenced to prison terms for their roles in the scheme. Hallas, Lee Khan, and Nazim Khan also were sentenced to prison.
Alex Cho, Min Jung Cho, Kwon, Park, Lee and Johnson are awaiting sentencing.
In the overall investigation, to date, the United States has seized for forfeiture or recovered approximately $7.5 million in bank account funds, cash, and repayments, 20 real properties, eight luxury cars, and multiple pieces of fine jewelry.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, Special Agent in Charge Kelly, Inspector General Gustafson, Special Agent in Charge Craig, and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency; the Washington Field Office of the Internal Revenue Service-Criminal Investigation, and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.
They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson, Bryan Seeley, and James Smith of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section. Finally, they expressed thanks for assistance provided by Stephanie Brooker, former Chief of the office’s Asset Forfeiture and Money Laundering Section; former Special Assistant U.S. Attorney Christopher Dana; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Lenisse Edloe, Shanna Hays, Taryn McLaughlin, Christopher Samson, and Nicole Wattelet, and Legal Assistants Krishawn Graham and Jessica McCormick.
13-242Former Tinker Official Convicted of Accepting BribesRead the Press Release
Oklahoma City, Oklahoma – JAMES LEE LOMAN, 70, of McLoud, Oklahoma, a former Item Manager at Tinker Air Force Base, was convicted today on charges of conspiring to commit wire fraud, accepting bribes, and participating in government contracting under an illegal conflict of interest, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The jury heard that from approximately 2002 to 2006, Loman accepted large cash payments from an individual associated with Daytona Aerospace, Inc., of Deerfield Beach, Florida, in exchange for favorable treatment in the Air Force’s purchasing of aircraft replacement parts. The evidence included numerous faxes that Loman sent from his home in McLoud to the individual in Florida. Some of these faxes calculated his bribe payments based on a percentage of aircraft sales to the Air Force, beginning at 5% and ending at 10%. Other faxes kept track of the amount of bribes due and the amount already paid to him. Still other faxes were "collection letters" that used coded language. Loman drove to Florida on multiple occasions to pick up the cash in increments of approximately $50,000. The faxes showed total cash bribes in the amount of $838,200.
Loman could be sentenced to twenty years in prison for conspiracy, fifteen years for accepting bribes, and five years for being involved in federal contracting while under a personal conflict of interest. He could also be fined up to $250,000 on each count. He could also be ordered to serve three years of supervised release after incarceration. Sentencing will take place in approximately 90 days.
This conviction is the result of an investigation by the Defense Criminal Investigative Service and the United States Air Force Office of Special Investigations, with assistance from the Federal Bureau of Investigation and the Office of Inspector General for the U.S. Department of Transportation. The case was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Chris M. Stephens.
Former Stamford Resident Sentenced to Federal Prison for Distributing CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SCOTT VELTRI, 34, of New York, N.Y., was sentenced today by United States District Judge Janet C. Hall in New Haven to six months of imprisonment, followed by four years of supervised release, for distributing cocaine. Judge Hall also ordered VELTRI to serve the first six months of his supervised release in home confinement, and to forfeit $30,000.
According to court documents and statements made in court, in 2009 and 2010, VELTRI, a former resident of Stamford, was part of a Fairfield County-based drug trafficking ring. The investigation, which included the use of court-authorized wiretaps and physical surveillance, revealed that VELTRI acquired cocaine from his co-conspirators and sold it in smaller quantities to customers in Fairfield County.
On March 6, 2013, VELTRI pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force and the Stamford Police Department. The Task Force is composed of members of the FBI, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police.
The case is being prosecuted by Assistant United States Attorney Hal Chen.
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(203) 821-3722 [email protected]Former PHA Employee Charged in Fraud ConspiracyRead the Press Release
PHILADELPHIA - Richard Lewis, 54, of Philadelphia, Pennsylvania, was charged by indictment unsealed today, with conspiracy to steal property from the Philadelphia Housing Authority where Lewis was employed at the time, in the amount of approximately $348,910, announced United States Attorney Zane David Memeger. Lewis was arrested this morning by the FBI.
According to the indictment, between September 2002 and July 2011, Lewis conspired with Richard Perri, Jaquel Crews, and Mark Miller, each charged elsewhere, and others known and unknown to the grand jury, to purchase building materials with PHA funds, sell those materials at a discount, and conceal those fraudulent sales. Crews, Miller and others ordered the building materials from Lewis who then directed Perri - a materials coordinator for PHA - to purchase materials from Sawbell Lumber and Home Depot. Perri fraudulently disguised the purchases as for PHA use, submitted the bills to the PHA Accounts Payable Department for payment, and arranged for the fraudulently purchased materials to be delivered to private properties specified by Lewis, Crews, Miller and others. Lewis and Perri were paid approximately 30 to 50-percent of the value of the materials by the purchasers and they split those payments. The indictment further alleges that Lewis made false statements about the purchase of those materials to law enforcement officers and provided false information about his sales of those building materials.
If convicted, Lewis faces a maximum possible sentence of 5 years imprisonment and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation, the United States Department of Housing and Urban Development Office of Inspector General, and the PHA Police Department, with assistance from the Drug Enforcement Administration, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney K.T. Newton.
Click here to view the indictment
1An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Former Chief Executive Officer of Hospital for Special Surgery Pleads Guilty in Manhattan Federal Court to Fraudulent Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN R. REYNOLDS, the former Chief Executive Officer (“CEO”) of the Hospital for Special Surgery (the “Hospital”), pled guilty today in Manhattan federal court to participating in a fraudulent scheme in which he was paid nearly $300,000 in undisclosed kickbacks from a subordinate Hospital employee. REYNOLDS, who was arrested in September 2012, also pled guilty to making false statements to a law enforcement agent. U.S. Magistrate Judge Debra Freeman presided over today’s plea proceeding.
Manhattan U.S. Attorney Preet Bharara said: “John Reynolds demonstrated a shocking disregard for his obligations as the leader of a world-renowned New York hospital when he exploited his position to line his own pockets and later lied about it to law enforcement. His guilty plea today shows that when people abuse positions of authority and responsibility for illicit personal gain, this Office will do everything in its power to hold them accountable.”
According to the allegations in the Indictment and Superseding Information filed in Manhattan federal court, as well as statements made in open court today at the plea proceeding:
From 1986 until 1997, REYNOLDS served as the Chief Financial Officer of the Hospital, the oldest orthopedic hospital in the United States. In 1997, he was promoted to the position of CEO, and served in that capacity as a full-time Hospital employee until October 2006. In order to effectuate a smooth transition in Hospital leadership to a newly hired CEO, REYNOLDS served as a contract employee in the same position through December 2008.
Between 2000 and 2005, REYNOLDS demanded and received approximately $298,500 in kickbacks from a subordinate employee of the Hospital in exchange for negotiating payment of that employee’s annual bonus. During this same time period, REYNOLDS also repeatedly made false statements to, and deliberately withheld information from, the Hospital’s board of directors about certain conflicts of interest, including his undisclosed financial arrangement with the subordinate Hospital employee.
In addition, in May 2008, during the course of the investigation of his involvement in this fraudulent scheme, REYNOLDS made a number of false statements to an agent of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), about his relationship with that Hospital employee and the funds he had received from that employee.
REYNOLDS, 64, of Venice, Florida, pled guilty to one count of wire fraud and one count of making false statements to the federal government. He faces a maximum sentence of 25 years in prison and is scheduled to be sentenced by U.S. District Judge Harold Baer, Jr. on November 7, 2013.
Mr. Bharara praised the investigative work of the HHS-OIG.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Christopher D. Frey is in charge of the prosecution.
U.S. v. John Reynolds S1 Information
Feds Sue Under Clean Water Act to Prevent Sewage Overflow into the Cape Fear River WatershedRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today a Clean Water Act (CWA) settlement with the City of Wilmington, New Hanover County and the Cape Fear Public Utility Authority (Authority) in North Carolina. The proposed settlement set forth in a consent decree will resolve these parties’ liability for violations of the Federal Clean Water Act, including unauthorized overflows of untreated raw sewage. The consent decree requires the parties to pay a civil penalty of $300,000 and implement measures to bring the sewer system into compliance.
“Sewage overflows into the Cape Fear watershed cannot be tolerated. This action shows our continued commitment to protecting our environment,” said United States Attorney Thomas G. Walker.
In 2008, the City and the County transferred its respective sewer systems to the newly formed Authority. Since taking over responsibility for these sewer systems, the Authority has implemented numerous remedial measures to the sewer systems. Pursuant to the proposed settlement announced today, the Authority has agreed to make further improvements to the sewer systems to eliminate unauthorized overflows with the goal of achieving compliance with the CWA. When wastewater systems overflow, untreated sewage and other pollutants can be released into local waterways, threatening water quality and contributing to beach closures and disease outbreaks.
“Sewage overflows are a significant problem in the Southeast because of inadequate and aging infrastructure,” said EPA Acting Regional Administrator, Stan Meiburg. “Through this agreement, the Authority, the City of Wilmington and New Hanover County are taking positive steps in correcting long-standing sewage overflow problems. Ultimately, this will benefit the local community and improve water quality in the Cape Fear River watershed.”
The consent decree requires the Authority to implement specific programs designed to ensure proper management, operation and maintenance of its sewer systems. In order to address the problem of wet weather overflows of raw sewage from the sewer lines, the Authority will develop and implement a comprehensive sewer system assessment and rehabilitation program. The Authority will also implement certain capital projects designed to remediate known defects in the sewer systems.
Keeping raw sewage and contaminated stormwater out of the waters of the United States is a primary enforcement initiative for 2011 to 2013. The initiative focuses on reducing sewer overflows, which can present a significant threat to human health and the environment. These reductions are accomplished by obtaining municipalities’ commitments to implement timely, affordable solutions to these problems, including the increased use of green infrastructure and other innovative approaches.
Federal Jury Convicts Two Men of Tax Fraud ConspiracyRead the Press Release
St. Thomas, USVI - After a three-day trial in district court on St. Thomas, a federal jury convicted Hansel Bailey, 36, of Orange County, California, and David Haddow, 61, of St. Thomas, of conspiracy to defraud the United States in the collection of taxes, and conspiracy to evade and defeat tax due and owing the Virgin Islands, United States Attorney Ronald W. Sharpe announced today.
According to the evidence presented at trial, in 2004 Bailey incorporated a business in St. Thomas called Compass Diversified, and in 2005, that company was granted EDC benefits. Bailey and another co-conspirator marketed a tax-savings scheme that would allow clients of Compass Diversified to claim bogus business deductions on their income tax returns by making payments to Compass, allegedly for management or consulting services. The clients would then recoup a substantial portion of the payment made to Compass in the form of a tax-free gift from a Virgin Islands-born resident. The scheme consisted of nothing more than a three-step circuitous money flow. In the first step, Compass clients made payments to Compass or wired money directly into Compass’ bank account. In step two, Haddow, at the direction of Bailey, transferred by check a substantial portion of that money into the personal bank account of a Compass employee. The last step consisted of a substantial portion of the original payment being returned by check or wire transfer to the Compass clients who made the payments to Compass on the front end of the transaction. As part of their scheme, Bailey and Haddow convinced a Virgin Islands-born resident to open a personal bank account for the sole purpose of sending tax-free gifts back to Compass clients. Compass Diversified never offered consulting or management services to any of their clients even though the clients were encouraged to claim deductions on their tax returns.
Bailey and Haddow face a maximum penalty of five years in prison for each count, a maximum fine of $250,000, and a special assessment of $100. Sentencing is scheduled for October 17, 2013 at 9:00 a.m. Co-conspirator Dwight Padilla pled guilty in June to conspiracy to defraud the United States. His sentencing is scheduled for September 19, 2013 at 9:00 a.m.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by First Assistant United States Attorney Bryan E. Foreman.
Federal Jury Convicts Detroit Couple on Oxycodone Distribution Conspiracy ChargesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Detroit couple was convicted on July 11 by a federal jury sitting in Charleston on oxycodone distribution conspiracy charges. Ciara Dawkins, also known as “C,” 27, was found guilty on two counts of an indictment: conspiracy to distribute oxycodone and oxymorphone, also known as “Opana,” and being aided and abetted by another person while in possession of oxymorphone with intent to distribute. Also found guilty by a federal jury was Dawkins’ co-defendant, Mack Brooks, 41, of conspiracy to distribute oxycodone and oxymorphone.
Evidence at trial proved that from in or about October 2009 until February 3, 2012, Dawkins and Brooks knowingly distributed oxycodone and oxymorphone in and around Kanawha, Lincoln and Boone counties. Trial evidence further revealed that on February 3, 2012, Dawkins, aided and abetted by another person, distributed oxymorphone at or near Mineral Wells, W.Va. Evidence presented at trial also proved that during the conspiracy, Brooks ran the illegal pill distribution scheme while he was incarcerated at the Noble Correctional Institution, located in Caldwell, Ohio.
Dawkins and Brooks each face up to 20 years in prison when they are sentenced on November 4, 2013 by United States District Judge Thomas E. Johnston.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorneys John Frail and Gregory McVey handled the prosecution.
The matters were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Federal Grand Jury Indicts Brownwood, Texas, Man on Several Child Pornography Felony OffensesRead the Press Release
LUBBOCK, Texas — A federal grand jury has returned a seven-count indictment charging Jacob Aniceto Jose Villarreal, 29, of Brownwood, Texas, with various felony child pornography offenses. Specifically, the indictment charges Villarreal with one count of production of child pornography, four counts of receipt of child pornography and two counts of possession of child pornography. Villarreal has been in federal custody since his arrest on June 25, 2013, on related charges outlined in a criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that in March 2013, Villarreal induced a minor male to engage in sexually explicit conduct while he recorded the conduct. The indictment further alleges that on four occasions, from October 2012 through May 2013, Villarreal received visual depictions of minors engaging in sexually explicit conduct. The indictment also charges Villarreal with possessing images of child pornography on two occasions from April 2010 to June 25, 2013.
On June 25, 2013, agents with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Villarreal’s home and five computers, two telephones and three thumb drives were found.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, the production count carries a maximum statutory penalty of not less than 15 years or more than 30 years in federal prison; each of the receipt counts carries a maximum statutory penalty of not less than five or more than 20 years in federal prison and each of the possession counts carries a maximum statutory penalty of 20 years in federal prison. In addition, upon conviction, each count carries a maximum statutory fine of $250,000 and up to a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by ICE HSI, the U.S. Marshals Service and the Brown County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Farmington Men Arraigned on Federal Charges for Allegedly Dumping Residential Septic Tank Waste onto Federal LandsRead the Press Release
ALBUQUERQUE – Anthony Wiggins, 54, and Alex Wiggins, 51, both of Farmington, N.M., were arraigned this morning on a four count indictment charging them with conspiracy and depredation of government property, announced U.S. Attorney Kenneth J. Gonzales, Bruce Bigelow, Assistant Special Agent in Charge of Region 5 of the Office of Law Enforcement Services of the Bureau of Land Management (BLM), and San Juan County Sheriff Ken Christesen. The two men entered not guilty pleas to the indictment and were released pending trial.
The indictment charges Anthony Wiggins, the primary operator of A-1 Septic, a residential septic tank waste disposal company in Farmington, and his brother Alex Wiggins with conspiracy to depredate government property between Feb. 2013 and March 2013, in San Juan County, N.M., by dumping liquid waste pumped from residential septic tanks onto federal land administered by the BLM. The indictment also charges the two men with three counts of depredation of government property for allegedly dumping residential septic tank waste onto federal lands on three separate occasions in March 2013.
Court filings reflect that the investigation of this case began in early March 2013, after a private citizen reported seeing a black sludge-like substance on a remote rural road in San Juan County to the San Juan County Sheriff’s Office (SJCSO). After it was determined that the property at which the substance was dumped was federal land, the BLM partnered with the SJCSO to conduct the investigation. During the course of the investigation, covert cameras photographed a septic vacuum pumper truck and the defendants as they allegedly dumped residential septic tank waste onto BLM administered federal lands on March 6 and 9, 2013.
“It is important that public lands, which are held in trust for the benefit of all citizens, are appropriately protected by our land management agencies,” said U.S. Attorney Kenneth J. Gonzales. “I commend the BLM and San Juan County Sheriff for their commitment to ensuring that those who unlawfully encroach on these lands and cause damage will be prosecuted.”
BLM Assistant Special Agent in Charge Bruce Bigelow said, “This investigation represents the strong partnership between the BLM and the San Juan County Sheriff’s Office and the dedication of both agencies towards the protection of New Mexico’s public lands. The successes of this investigation would not have been possible without the diligence of the BLM Special Agents and Rangers and the assistance of the hard working men and women of the San Juan County Sheriff’s Office.”
“We are not going to tolerate people dumping raw sewage in San Juan County,” said Sheriff Ken Christesen
If convicted of the conspiracy charge, Anthony Wiggins and Alex Wiggins each face a maximum possible penalty of five years in prison and a $250,000 fine. Each also faces a maximum possible sentence of ten years in prison and a $250,000 fine on each of the three depredation charges. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the BLM and the SCJSO and is being prosecuted by Assistant U.S. Attorney John C. Anderson.
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Indictment
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English Citizen Sentenced for Distributing Adulterated and Counterfeit Cancer DrugsRead the Press Release
St. Louis, MO - RICHARD J. TAYLOR of Warwickshire, England, was sentenced to 18 months of imprisonment and a fine of $800,000 for distributing adulterated prescription drugs used for cancer treatment to multiple physicians in the United States, including Town and Country, Missouri, oncologist Abid Nisar.
According to his plea agreement, during 2008-2011, Taylor distributed prescription drugs used for cancer treatment from the United Kingdom to physicians located in the United States. One of his customers was Dr. Abid Nisar of Town and Country, MO. To be safe and effective, some of these prescription drugs distributed by Taylor needed to be shipped and stored at constant cold temperatures, and should not have been shaken or frozen. While distributing these prescription drugs, Taylor learned that multiple doctors in the United States had received shipments of "cold chain" cancer prescription drugs that were warm upon arrival and damaged during shipment, but still kept shipping adulterated drugs to the United States. Taylor’s illegal drug shipments included an October 2010 shipment of the cancer drug marketed in the United States as Rituxan® that was sent to Dr. Nisar’s local medical office.
Taylor’s plea agreement also discusses his involvement with importing a counterfeit cancer drug. Taylor admitted that he and others imported Altuzan, an intravenous cancer treatment drug marketed in Turkey that contains the same active ingredient as the drug marketed in the United States as Avastin® into the United States. Taylor and others believed that the drug was “a high risk play with the Turkish labeling and packaging.” On May 10, 2011, Taylor was notified that “we had an unfortunate experience” after an oncology nurse of a U.S. doctor reported that two patients had “immediate bad reactions” during infusions of Altuzan. One of these patients “who has been on Avastin for awhile started to shake in the middle of being transfused and had to be disconnected from treatment.” The nurse advised that she had been administering Avastin for years and never had a patient reaction like this before. Ultimately, the U.S. Food and Drug Administration (“FDA”) seized packages marked “altuzan” from several of Taylor’s customers in the United States and tested the substances, determining that Taylor’s customers had received counterfeit versions of Altuzan that did not contain any of the active drug ingredient bevacizumab that is found in legitimate versions of Altuzan and Avastin®. FDA previously warned multiple doctors in the United States about the dangers of counterfeit altuzan with a public safety alert that can be found on the agency’s website, www.fda.gov.
Taylor also agreed to forfeit his interest in approximately $3.2 million dollars, some of which was seized during the investigation at a bank in the United Kingdom.This sentence aptly reflects the serious nature of this crime," said Special Agent in Charge Patrick J. Holland of FDA's Office of Criminal Investigations, Kansas City Field Office. "Americans must have confidence that their health care providers are receiving and administering drugs that fully comply with U.S. laws. The FDA will aggressively pursue all those who seek to profit from causing the importation and distribution of foreign drugs that are adulterated and misbranded."
This case was investigated by the Office of Criminal Investigation for the United States Food and Drug Administration and the Office of Inspector General for the United States Department of Health and Human Services.
Edgard Enrique Le Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 23, 2013, before U.S. District Judge Dana L. Christensen, EDGARD ENRIQUE LE, a 29-year-old resident of Escondido, California, was sentenced to a term of:
Prison: 10 years
Special Assessment: $100
Forfeiture: cell phone
Supervised Release: 5 years
LE was sentenced in connection with his guilty plea to transportation with intent to engage in criminal sexual activity.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
The victim was born in 1999. In February 2012, the victim resided in Flathead County. At that time, LE resided in California. LE engaged in an online romantic relationship with the 12-year-old victim. Electronic records show conversations about the victim and LE being in love, that they were "engaged" and that they were going to get married. LE used his cell phone to communicate with the victim.
In early February 2012, LE drove from California to the victim's residence in Flathead County. On February 13 and 14, 2012, LE transported the victim in an automobile out of the State of Montana. The intended destination was LE's residence in California. Prior to reaching his residence, the vehicle they were riding in was stopped by law enforcement southwest of the Nevada/California border in California. During an interview with law enforcement, LE stated that his intent was to take the victim to California with him to live. Once in California, LE intended to have a physical and romantic relationship with the victim that included sex acts.
When an individual commits a crime involving a child in Montana, law enforcement will use all available resources to apprehend and prosecute that person to the fullest extent of the law. As a result of the sentence imposed today and the incarceration of Mr. Lee, he will be prohibited from committing further crimes against children for many years. This sentence will also deter others from similar conduct. Due to the diligent investigation and rapid response of the law enforcement agents and officers of the Federal Bureau of Investigation, the Montana Internet Crimes Against Children (ICAC) Task Force, the Las Vegas Metro Fugitive Unit, and the Flathead County Sheriff's Office, this young girl was extricated from a very dangerous situation." U.S. Attorney Michael W. Cotter.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LE will likely serve all of the time imposed by the court. In the federal system, LE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Internet Crimes Against Children (ICAC) Task Force, the Las Vegas Metro Fugitive Unit, and the Flathead County Sheriff's Office.
Drug Trafficker Sentenced in Operation “No Quarter”Read the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge Malcolm J. Howard sentenced FILIBERTO COBARRUBIAS-HERRERA, 39,of Madison, North Carolina, to 72 months of imprisonment and 4 years of supervised release upon his release from the Bureau of Prisons. COBARRUBIAS-HERRERA previously pled guilty to conspiracy to distribute and possess with the intent to distribute 100 kilograms or more of marijuana.
COBARRUBIAS-HERRERA was arrested in Greenville on June 1, 2012, after hefacilitated a delivery of approximately 118 pounds of marijuana to an undercover law enforcement officer. The investigation revealed that COBARRUBIAS-HERRERA and other members of the conspiracy were responsible for the distribution of over 1,000 kilograms of marijuana throughout North Carolina between March 2011 and June 1, 2012.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Drug Kingpin Convicted of Operating a Criminal Enterprise; Brings to Six the Total Number of Defendants ConvictedRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mohamed Taher, 34, of Lackawanna, N.Y., was convicted following a jury trial of operating a continuing criminal enterprise, conspiracy to import marijuana into the United States, conspiracy to possess with intent to distribute marijuana, false statements and aggravated identity theft. The charges carry a mandatory minimum sentence of 22 years in prison and a maximum of life.
Defendants Abdulfatah Mosed, Salah Mohamed Ahmed, Basheer Saleh, Yasin Abdulla and Bradley Parry were previously convicted of conspiracy to possess with intent to distribute marijuana and are awaiting sentencing.
Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti, who handled the trial, stated that between late 2005 and May of 2007, Taher operated a criminal enterprise that employed five or more individuals. The enterprise imported marijuana into the United States from Canada, and then distributed the marijuana to customers in Detroit, Chicago and Buffalo. In furtherance of the defendant’s enterprise, Taher utilized fraudulent identifications to enter into Canada to meet with his associates and his marijuana supplier. In doing so, Taher made false statements to Customs and Border Protection Officers when he claimed to be another individual when he was encountered at the U.S.-Canada border.
“Today’s verdict, combined with previous convictions obtained in this case, remove the ring leader and members of a criminal enterprise and illegal drugs from the streets of our community,” said U.S. Attorney Hochul. “Because these defendants can no longer harm our neighborhood, today is truly a good day for the residents of this community.”
Taher was convicted of the charges following a four week jury trial before Chief U.S. District Judge William M. Skretny. Defendant Kaleel Albanna was acquitted of similar charges.
The verdict is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Customs and Border Protection, under the direction James Engleman, Director of Field Operations, the New York State Police, under the direction of Major Michael Cerretto, the Michigan State Police and the Willoughby Hills, Ohio Police Department.
Sentencing is scheduled for October 24, 2013 at 9:00 a.m. before Judge Skretny.Defendants Sentenced After Pleading to Rico Violations, Violations of the Federal Gun Control and Controlled Substances Acts, and Obstruction of JusticeRead the Press Release
TRAVIS HUDSON, age 29; RODERICK WIGGINS, age 22; DANTE CARSON, age 21; DWIGHT CARSON, age 22; SHAYNE LEBLANC, age 40; and AKAI SULLIVAN, age 27, all from the New Orleans area, were sentenced today before U.S. District Judge Lance M. Africk, after pleading guilty to Violations of the Racketeer Influenced Corrupt Organization Act, the Violent Crime in Aid of Racketeering Act, the Federal Gun Control and Controlled Substances Acts, Aiding and Abetting, and Obstruction of Justice.
TRAVIS HUDSON was sentenced to 20 years imprisonment and 5 years of supervised release. Travis Hudson pled guilty to Count 1 RICO Conspiracy and Count 21 Distribution of Cocaine Base.
RODERICK WIGGINS was sentenced to 14 years imprisonment and 5 years of supervised release. Roderick Wiggins pled guilty to Count 1 RICO Conspiracy, Count 2 Conspiracy to Distribute and Possess with Intent to Distribute over 280 grams Cocaine Base and Count 5 Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses.
DANTE CARSON was sentenced to 30 years imprisonment and 5 years of supervised release. DANTE CARSON pled guilty to Count 1 RICO Conspiracy, Count 5 Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses and Count 10 Aiding and Abetting in the Unlawful Acquisition of a Firearm. As part of the RICO Conspiracy, DANTE CARSON admitted that both he and other Murder Squad members participated in the murder Reginald Francois on April 1, 2010. DANTE CARSON pled guilty pursuant to an 11(c)(1)(C) plea agreement.DWIGHT CARSON was sentenced to 20 years imprisonment and 10 years of supervised release. DWIGHT CARSON pled guilty to Count 1 RICO Conspiracy, Count 2 Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base over 280 grams of Cocaine Base, Count 5 Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses and Count 11 Aiding and Abetting in the Unlawful Acquisition of a Firearm. DWIGHT CARSON pled guilty pursuant to an 11(c)(1)(C) plea agreement.
SHAYNE LEBLANC was sentenced to 6 years imprisonment and 3 years of supervised release. LEBLANC pled guilty to a one count Bill of Information with violations of Conspiracy to Manufacture and Possess with the Intent to Distribute a Quantity of Cocaine Base.AKAI SULLIVAN, was sentenced to 3 years probation along with 6 month home detention. SULLIVAN pled guilty to Count 6 Obstruction of Justice.
This case arose out of a joint investigation by FBI, ATF, and the Jefferson Parish Sheriff’s Office. This investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution. Federal and local law enforcement officers interviewed witnesses, confidential informants, as well as state defendants, relative to the targeted individuals. It was revealed that a group of individuals operated in various areas of Harvey Louisiana, specifically the neighborhoods known as Scottsdale and Haydel. This group controlled these areas for their narcotics distribution activities through violence and through threats of violence, to include murder, attempted murder, obstruction and assaults. They were referred to as the Harvey Hustlers and/or Murder Squad.
The “Murder Squad,” or “MS,” was a faction of the Harvey Hustlers composed primarily of individuals residing in the Harvey, Louisiana area of Jefferson Parish, Louisiana. While they primarily operated on the Westbank of Jefferson Parish, members conducted business in other parts of the Eastern District of Louisiana. The “Harvey Hustlers” also referred to as “HH” originated in the Harvey area in the mid-1980s. Members of the organization “hustled” meaning they distributed illegal narcotics. The original goal of the Harvey Hustlers was to make money from sales of illegal narcotics.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms, Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Duane A. Evans and Bill McSherry.
Crook County Man Sentenced to Two and Half Years in Prison for Possessing a Loaded Firearm After Being Convicted for a Crime of Domestic ViolenceRead the Press Release
EUGENE, Ore. – Today, United States District Judge Anne Aiken sentenced Willard Bryan Wilhelm, 34, of Crook County, Oregon, to two and one-half years in prison and three years of supervision after his release from prison for possessing a firearm and ammunition after being convicted in an Oregon court of the misdemeanor crime of domestic violence.
Wilhelm pled guilty without a plea agreement to possessing a firearm and ammunition after being convicted in an Oregon court for an “Assault in the Fourth Degree Constituting Domestic Violence.” Wilhelm was warned he could no longer lawfully possess a firearm and ammunition. On July 19, 2012, Prineville officers were called to Wilhelm’s residence and arrested him for possessing a loaded rifle. Two female adults and four children were present in the residence when Wilhelm was taken into custody. Witnesses testified at Wilhelm’s sentencing about his history of possessing firearms while intoxicated and his abuse of women and children.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the
Prineville Police Department, and was referred to the U.S. Attorney’s office for prosecution by the Crook County Deputy District Attorney Katherine Krauel-Hernberg. It is being prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr..
Council Bluffs Man Sentenced on Machine Gun ChargeRead the Press Release
COUNCIL BLUFFS, IA – On July 11, 2013, Jordan James Collier, age 24, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on a charge of illegal possession of a machine gun, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Collier to 51 months in prison, to be followed by 1 year of supervised release. Collier was also ordered to pay a $100 special assessment for the Crime Victim Fund, and to forfeit the machine gun and two other firearms he had possessed. In addition, Chief Judge Gritzner ordered Collier to pay $1,200 in restitution to the person from whom Collier had stolen the firearms. Collier remained in the custody of the United States Marshal’s Service pending either designation of the Federal Bureau of Prisons facility at which he will serve his federal sentence, or surrender to Pottawattamie County or Kossuth County authorities regarding State of Iowa charges pending against Collier in those counties.
Collier was sentenced upon his plea of guilty entered on February 8, 2013, to illegal possession of a machine gun. Collier was arrested subsequent to an investigation by the Council Bluffs Police Department regarding two rifles which Collier pawned at a local pawn shop. The firearms were determined to have been stolen from a residence in Kossuth County, Iowa. Collier had also attempted to pawn the machine gun. The machine gun was a functional Swiss K Vietnam War era automatic rifle. The sentence imposed upon Collier also took into account that the three firearms were stolen.
This case was investigated by the Council Bluffs, Iowa, Police Department, with assistance from the Kossuth County Sheriff’s Department, and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Correctional Institution Employee Sentenced on Bribery Related OffenseRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today RHONDA BOYD, 28,a formercorrectional officer at the Rivers Correctional Institution, Winton, North Carolina, was sentenced today by United States District Judge Louise W. Flanagan to 20 months imprisonment, to be followed by 2 years of supervised release.
The investigation revealed that BOYD, while employed as a correctional officer at the Rivers Correctional Institution, conspired to commit bribery in violation of Title 18 United States Code, Sections 371. The evidence showed that for approximately 6 months in 2011 and 2012, BOYD accepted payments from inmates within the facility in return for smuggling in contraband items such as cell phones and cigarettes.
Investigation of this case was conducted by the Department of Justice, Office of Inspector General and the Federal Bureau of Investigation, with assistance provided by the United States Postal Inspection Service.
Conroe Man Guilty of Interstate Transportation of A MinorRead the Press Release
HOUSTON – Jacob Daniel West, 33, has entered a plea of guilty to transporting a minor with the intent to engage in sexual activity, United States Attorney Kenneth Magidson announced today.
According to the factual basis as presented in court, West travelled with the 14-year-old minor female from Texas through several states over the course of approximately a week in January 2013. They travelled together through Oklahoma, Arkansas, Tennessee, New York, Virginia and the Carolinas before arriving in Florida.
The victim had engaged in sex acts on previous occasions with West, who was a neighbor of her mother and father in Conroe. She was legally in the custody of her grandmother but had been staying with her parents on occasion at the time she left the area with West.
On Jan. 28, 2013, the St. Lucie County Sheriff’s Office in Ft. Pierce, Fla., located West’s car at a Sleep Inn hotel. West had rented a room at the hotel the previous night during which time he engaged in sexual activity with the victim. Officers had observed the room and arrested West as he exited.
West admitted he stole an AR-15, hand guns, money and credit cards from a deceased friend in Texas prior to leaving the state with the victim.
U.S. District Judge Sim Lake, who accepted the guilty plea today, has set sentencing for Sept. 25, 2013, at which time West faces a minimum of 10 years and up to life in prison as well as a $250,000 fine.
FBI and the U.S. Marshals Service investigated.This case, prosecuted by Assistant United States Attorney Sherri Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Columbia Woman Pleads Guilty to $576,000 Mortgage Fraud, Embezzlement SchemesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., woman pleaded guilty in federal court today to charges of bank fraud and money laundering, which were part of a $576,000 mortgage fraud and embezzlement scheme at the title company where she was employed.
Terri Lynn Johnson, 48, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in a Dec. 13, 2012 federal indictment.
Johnson was hired for a clerical position with Guaranty Land Title Company in 2001, and was eventually promoted to become the branch manager of the Fulton, Mo., office after the company was acquired by Landchoice Company, LLC. She remained in that position until her termination on Dec. 4, 2008.
Johnson admitted that she engaged in a $300,000 mortgage fraud scheme while she was employed as the Fulton branch manager. Johnson refinanced the mortgage on her residence twice. As a result of the false and fraudulent information provided by Johnson, two banks approved mortgage loans for $175,000 in 2007 and for $125,000 in 2008. The combination of those two loans clearly exceeded the appraised value of Johnson’s residence, which was used to secure both loans.
Johnson also admitted that she embezzled $276,173 from Landchoice. Johnson diverted income checks from Landchoice into a bank account that had been opened for Guaranty Land Title Company and which her employer didn’t know existed. She also diverted escrow funds which had been obtained by Landchoice for loan closings into that account.
Johnson then wrote checks to herself which she deposited into her personal checking account. Johnson wrote checks totaling approximately $59,465 payable to herself or to cash. Johnson also wrote checks to Johnson Gardens (her personal business) totaling approximately $12,500. Johnson also wrote checks believed to be for her personal use totaling approximately $19,916. In addition, Johnson utilized a debit card issued for the account, which she used to access $184,292 from that account for her personal benefit. The total personal benefit realized by Johnson from this embezzlement scheme is estimated to be approximately $276,173.
Under federal statutes, Johnson is subject to a sentence of up to 40 years in federal prison without parole, plus a fine and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, IRS-Criminal Investigation, the Fulton, Mo., Police Department, the Missouri State Highway Patrol and the Missouri Department of Insurance.Child Pornography Charged Filed on Rossford ManRead the Press Release
An indictment was filed chagring James Rynn, age 33, of Rossford, Ohio, with receiving, distributing, and possessing child pornography between February and April 2012, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cedar Rapids Man Pleads Guilty to Defrauding InvestorsRead the Press Release
An man who defrauded investors through his company, Virtual Vision, Inc., pled guilty today in federal court in Cedar Rapids.
Jeffrey J. Kinseth, age 58, from Cedar Rapids, Iowa, was convicted of one count of wire fraud.
In a plea agreement, Kinseth admitted he was the president and principal shareholder of Virtual Vision, Inc. Kinseth admitted that, between March 2008 and September 2009, he solicited and accepted hundreds of thousands of dollars from at least eleven individual investors. Kinseth admitted falsely telling the investors all of their money would be invested through Virtual Vision as a purported pooled investment vehicle. Kinseth admitted he told the investors this, knowing he would, at least at times, fail to invest all of the investors’ money and use some of the money to make payments to earlier investors and for other purposes. Kinseth also admitted that, of the investor funds actually traded, he consistently sustained losses. Kinseth admitted fraudulently concealing his misappropriation and trading losses by creating and issuing false account statements to investors that falsely reflected purported profits from their trading.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Kinseth remains free on bond pending sentencing. Kinseth faces a possible maximum sentence of twenty years’ imprisonment, a fine equal to the greater of twice the gross gain or loss resulting from the offense, or $250,000, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Federal Bureau of Investigation in cooperation with the Commodity Futures Trading Commission and the Office of the United States Trustee.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-51 LRR.
Cardiologist Sentenced to Prison for Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – An Edison, N.J., cardiologist was sentenced today to 30 months in prison for referring patients for diagnostic testing in exchange for cash kickbacks as part of a cash-for-patients scheme with a diagnostic facility in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
Shashi Agarwal, 61, who had his own cardiology practice in East Orange, N.J., previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of soliciting and receiving more than $100,000 in cash kickbacks in violation of the federal health care anti-kickback statute. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From early 2009 through December, 2011, Orange MRI paid Agarwal for each MRI and CAT scan he referred. According to Agarwal, Orange MRI gave him $100 cash for each Medicare or Medicaid patient he referred for an MRI. Agarwal also received $50 for each CAT scan referral. Agarwal admitted that he agreed to refer as many as 20 MRIs to Orange MRI each month.
During his plea proceeding, Agarwal identified two occasions on which he was paid kickbacks. On Oct. 11, 2011, Agarwal received $2,600 in cash from a government informant at Salvadoreño restaurant in Elizabeth, N. J., in exchange for MRI and CAT scan referrals. On Nov. 10, 2011, at his office in East Orange, N.J., Agarwal received another kickback for patient referrals of $2,500 in cash.
Agarwal was one of 12 doctors and one nurse practitioner arrested Dec. 13, 2011, and charged with accepting cash kickback payments.
In addition to the prison term, Judge Cecchi sentenced Agarwal to two years of supervised release and ordered him to perform 100 hours of community service. At his plea hearing, Agarwal also agreed to forfeit $101,750 in bribe money.The investigation ultimately led to the arrest of and charges against 15 individuals, including those arrested in December 2011. Of those charged, 12 have pleaded guilty to date.
Daisy Deguzman, a doctor practicing in Newark, was sentenced to six months in prison and six months of home confinement on Jan. 31, 2013. Dov Rand, a doctor practicing in West Orange, N.J., was sentenced to five months in prison and five months of home confinement on Feb.13, 2013. Rameshcha Kania, an East Orange, N.J., doctor, was sentenced to three months in prison and three months of home confinement on June 24, 2013. Lucio Cardoso, a North Arlington, N.J., doctor, was sentenced to four months in prison and four months of home confinement on June 25, 2013. The defendants were also ordered to forfeit their illegal gains.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, as well as criminal and civil investigators with the U.S. Attorney’s Office, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Scott B. McBride and Joseph G. Mack of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
As for the defendants with charges pending as a result of this investigation, they are considered innocent unless and until proven guilty.
13-282
Defense counsel: William R. Lundsten Esq., Teaneck, N.J.
Bluford Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Craig L. Fenton, 47, of Bluford, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on May 9th, alleged that Fenton was found to be in possession of a loaded Colt .38 special caliber revolver on April 2, 2013. The firearm was located by a Wayne County Deputy Sheriff during the course of a traffic stop. Prior to that date Fenton had been convicted of two felony offenses which made it illegal under federal law for him to possess firearms or ammunition.
Sentencing was set for November 1, 2013, at 11:00 a.m. at the United States District Courthouse in Benton. At that time, Fenton faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearms and ammunition he illegally possessed will also be forfeited to the United States.
Fenton has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Baltimore “financial Advisor” Sentenced to over 3 Years in Prison for Defrauding over 22 Clients of $890,000Read the Press Release
Targeted Older, Retired Homeowners, Some of Whom Lost Their Life Savings
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Casey Charles, age 34, of Baltimore, today to 41 months in prison followed by three years of supervised release for mail fraud in connection with a scheme in which he promised to help clients make safe investments when in fact he diverted their money for his personal benefit. Judge Blake also ordered that Charles pay restitution and forfeiture of $890,356.90.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Maryland Attorney General Douglas F. Gansler.
According to his plea agreement, beginning in 2007, Charles owned a company named Infinite Equity Strategies, LLC which he promoted as a financial strategies company that had not “lost a dime in the recession.” Charles held himself out as a financial specialist and safe money advisor, who could help his clients put their retirement funds into products that would provide “high returns without high risk.” Charles solicited potential clients by using direct mailings, newspaper ads and TV commercials. For these mailings, Charles targeted clients who were retired and/or between the ages of 55 and 80, married, owned their home and had an annual income over $25,000. Charles was not registered in Maryland, nor with the Securities and Exchange Commission, as an investment adviser.
Charles executed his scheme by using two methods. Under the first method, Charles told his clients to liquidate their current investments and provide him with the funds, so that he could place the money into safer investment accounts with higher returns. However, Charles instead deposited the funds into his own accounts. He used some of the fraudulently obtained funds to invest in risky and unauthorized investments on behalf of his clients, and for his own personal and business expenses, including credit card and mortgage payments. To conceal his scheme, Charles created fraudulent letters and account statements purporting to be from well-known financial products and services providers, in order to lead his clients into believing that he had in fact deposited their money into safe investment products as promised.
The second method used by Charles to defraud his clients involved recommending that his clients open accounts with a reputable self-directed IRA custodian where, he told them, they would be able to have more control over where to invest their funds. After his clients transferred their investment funds, however, Charles submitted forged documents to the trust company, directing it to transfer his clients’ funds to a bank account that he controlled. Charles used most of these funds for his own personal benefit and to promote his other businesses including a diamond investment scheme in Sierra Leone and the career of hip hop artist “Mullyman.”
Charles also concealed his scheme by using new client funds to make “lulling payments” to existing clients who requested to liquidate, or receive distributions from, the investments they thought Charles had set up for them.
As a result of his scheme, Charles defrauded over 22 clients of approximately $890,000 of their retirement funds, which in some cases were their life savings.
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 praised the U.S. Postal Inspection Service - Washington Division and the Securities Division of the Maryland Attorney General’s Office for their work in the investigation, and thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.
Bail Bondsman Convicted of Tax Fraud and Identity Theft SchemeRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that a federal jury today found Freddie Wilson (40, Temple Terrace) guilty of six counts of theft of government funds, five counts of aggravated identity theft, one count of money laundering, and one count of obstruction of justice. Wilson faces a maximum penalty of ten years in federal prison on each count of theft of government funds, two years' consecutive imprisonment on each count of aggravated identity theft, ten years' imprisonment for money laundering, and five years' imprisonment for obstruction of justice. His sentencing hearing is scheduled for October 8, 2013. Wilson was indicted on April 23, 2013.
According to testimony and evidence presented at trial, Wilson was a licensed bail bondsman who operated "Against All Odds Bail Bonds, Inc." (AAO) in Tampa. In June 2012, he opened an account in the name of AAO at a local bank, under the guise that he was a check casher. Within a three month period, Wilson deposited over $318,000 in U.S. Treasury income tax refund checks into that account. The checks had been issued as a result of fraudulently filed federal income tax returns, which were derived from the identities of deceased, elderly, and disabled victims.
In January 2013, a federal search warrant was executed at AAO and agents seized a 2011 Camaro and approximately $8,600 in cash. Wilson subsequently obstructed the criminal investigation by taking records that were seized during the search warrant and failing to return them to the government. Wilson spent all of the money that he received from the fraudulent tax returns on personal expenses, including the purchase of the 2011 Chevrolet Camaro, mortgage payments, expensive restaurants, hotels, and large dollar transactions at the Seminole Hard Rock Casino.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.
Augusta Resident Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
AUGUSTA, GA - Carlton Jevon Barnette, 27, originally from Durham, North Carolina, but living in Augusta, Georgia, was sentenced on Tuesday by United States District Court Judge J. Randal Hall to 10 years in prison, followed by 20 years of supervised release, for possessing child pornography. Barnette will be required to register as a sex offender. At the conclusion of the sentencing, Barnette was returned to the custody of the United States Marshal Service to serve his sentence.
According to the evidence presented at Barnette’s plea and sentencing hearings, in May 2011, Homeland Security Investigation agents identified an Internet user in Atlanta, later identified as Barnette, who was sharing child pornography through a peer-to-peer file-sharing program on his computer. Agents learned that in June 2011, Barnette moved with his fiancé to Augusta, where he continued to download and possess child pornography, unbeknownst to his fiancé and her family. Upon the execution of a federal search warrant, several of Barnette’s computer devices were seized and found to contain at least 95 videos depicting the sexual abuse of children of various ages, including some as young as five years old. There was no evidence, however, to suggest that Barnette created any of the images he possessed. Barnette admitted to agents that he had been downloading, viewing, and sharing child pornography for over a year.
United States Attorney Edward J. Tarver stated, “Viewing and sharing images depicting the sexual exploitation of innocent children is a serious and pervasive crime. The harm inflicted on these young victims continued every time the Defendant viewed these images and shared them with others. There is no higher priority within the Department of Justice than the protection of our Nation’s children. The United States Attorney’s Office will continue to prosecute those who promote, facilitate and create markets for the exploitation of children.”
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
The case was the result of an investigation conducted by the Department of Homeland Security, Homeland Security Investigations (formerly Immigration and Customs Enforcement) out of Atlanta. Assistant U.S. Attorney Nancy Greenwood prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Alleged Bank Robber ChargedRead the Press Release
Jermaine Coleman, 31, of Philadelphia, PA, was charged today by Indictment with three counts of bank robbery, announced United States Attorney Zane David Memeger.
According to the indictment, Coleman robbed the Alliance Bank at 9 East Baltimore Avenue in Lansdowne on March 7, 2013; the Alliance Bank at 201 South 69th Street in Upper Darby on March 9, 2013; and the Beneficial Savings Bank at 727 Church Lane in Yeadon on March 11, 2013.
If convicted of all counts, the defendant faces a maximum possible sentence of 60 years in prison, a $750,000 fine, a three year period of supervised release, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Alicia M. Freind.
Click here to view the indictment
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Arms Seller Sentenced for Illegal Export of Night Vision EquipmentRead the Press Release
Sold Night Vision Goggles and Monocular on eBay
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anthony J. Torresi, age 34, of Coral Gables, Florida late yesterday to 18 months in prison followed by three years of supervised release for unlawfully exporting night vision equipment.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“One of ICE's Homeland Security Investigations top enforcement priorities is preventing U.S. military products and sensitive technology from falling into the hands of those who might seek to harm America or its interests,” said William Winter, special agent in charge for HSI Baltimore. “This investigation is an example of HSI's partnership with the U.S. Attorney's Office in Maryland to combat this threat.”
According to his plea agreement, Torresi listed night vision goggles and night vision monoculars for sale on eBay. The items were designed to enable military ground troop personnel to conduct night operations. A license from the U.S. Department of State is required to export the items. Selling such items overseas without a license is a violation of the Arms Export Control Act.
On January 21, 2011 Torresi sold two of the night vision goggles for $7,039.99 to an undercover agent he believed to be located in New Zealand, but who was in fact located in Baltimore. Torresi exported the goggles on February 11, 2011 from Miami, Florida to New Zealand. The shipping label signed by Torresi showed the contents as a “gift” described as a “Rangefinder” valued at $70. Torresi never applied for a license to export these items.
Similarly, on March 29, 2011 Torresi sold a 6015-4 night vision monocular to the undercover agent he believed to be located in New Zealand for $6,099.89. On April 29, 2011, Torresi exported from Miami to New Zealand what he represented to be the 6015-4 night vision monocular that he sold for $6,099.98. In fact, Torresi shipped a different night vision monocular that he had purchased for $266 and which did not require a license to export.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Counterproliferation Investigations Task Force, a multi-agency task force headquartered at the offices of HSI, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory Welsh, who prosecuted the case.
17 Individuals Indicted for Four-Year Methamphetamine Conspiracy Operating in Wilkes and Surrounding CountiesRead the Press Release
Law Enforcement Shut Down Over 15 Methamphetamine Labs and Seized 5 Firearms
CHARLOTTE, N.C. – A criminal indictment charging 17 men and women with a large-scale methamphetamine trafficking conspiracy and related charges was unsealed in U.S. District Court on Wednesday, July 10, 2013, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The federal indictment was returned by a grand jury sitting in Charlotte on June 19, 2013, and was unsealed following arrests of the named defendants by law enforcement on Tuesday, July 9, 2013.
The indictment is the result of a large-scale, multi-year joint federal and state investigation targeting the manufacture and distribution of methamphetamine in Western North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); Sheriff Chris Shew of the Wilkes County Sheriff’s Office; Chief Monroe Wagoner of the Elkin Police Department; Sheriff David Edwards of the Allegheny County Sheriff’s Office; and Chief Joe Rankin of the North Wilkesboro Police Department.
The defendants were charged with conspiring to distribute, possess with the intent to distribute, and manufacture more than 500 grams of methamphetamine and possession of pseudoephedrine. Those named in the indictment are:
• Stoney Shew, 32, of Wilkes County.
• Tony Lee Blevins, 45, of Wilkes County.
• Daniel Lee Foster, 36, of Wilkes County.
• Stephen Franklin Wood, 35, of Wilkes County.
• Brannon Allen McManus, 37, of Wilkes County.
• Crystal Gail Gregory, 34, of Wilkes County.
• Chad Douglas Church, 36, of Wilkes County.
• Michael Combs, A/K/A MC Hammer, 43, of Wilkes County.
• Abby Wilmoth, A/K/A Abby Jones, 33, of Wilkes County.
• Stephen James Blankenship, 36, of Wilkes County.
• Larry Don Brown, 53, of Wilkes County.
• Misty Ann Fender, A/K/A Misty Fender Gilbreath, 31, of Alleghany County.
• Matthew Chad Lovette, 32, of Wilkes County.
• Brookelyn Michelle Miller, 21, of Wilkes County.
• Rikki Ann Osborne, 37, of Wilkes County.
• Tony Steven Steelman, 26, of Wilkes County.
• Frankie Wayne Blevins, 46, of Wilkes County.
All defendants, except Shew, are also charged with possession of materials to make methamphetamine. Tony Blevins, Foster, Wood, Church, Combs, Wilmoth, Blankenship, Brown, Fender, Lovette and Osborne are also charged with maintaining a drug-involved premises. Foster, Osborne, Blackenship, Fender, Miller, and Steelman are also charged with possession of firearms in furtherance of the drug conspiracy. All defendants named in the indictment are in custody except McManus, who remains a fugitive.
According to allegations contained in the indictment, in Wilkes and other counties in Western North Carolina, between January of 2009 and June 18, 2013, the defendants conspired with each other to manufacture, possess, and distribute methamphetamine and, in furtherance of the same, possessed and distributed pseudoephedrine. The indictment also lists other materials possessed by the defendants in furtherance of their scheme, including, but not limited to, Coleman fuel, coffee filters, lithium batteries, and two-litre plastic bottles used to manufacture methamphetamine. According to court records and statements made in court, law enforcement seized the items when they detected and shut down 15 different methamphetamine laboratories.
Those arrested will remain in custody pending their detention hearings, which have been scheduled for Monday, July 15, 2013. The methamphetamine conspiracy charge carries a mandatory minimum term of 10 years in prison and a maximum of life in prison and a $10 million fine. The possession of pseudoephedrine charge carries a term of imprisonment up to 20 years in prison and a $250,000 fine. The defendants charged with maintaining a drug-involved premises face a potential 20 year prison term and a $250,000 fine for each count. The defendants charged with possession of materials to make methamphetamine face a prison term of up to 20 years and a $250,000 fine for each count. The defendants charged with possession of a firearm in furtherance of a drug trafficking crime face an additional, consecutive five-year prison term.
Including the defendants in this indictment, a total of 49 individuals have been prosecuted to date on federal charges for their involvement in conspiracies to manufacture, possess, and distribute methamphetamine in Wilkes and other counties in Western North Carolina.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until they have been proven guilty beyond a reasonable doubt in a court of law. The investigation is ongoing.
U.S. Attorney Tompkins thanked all of the law enforcement agencies involved in this investigation for their continued cooperation and assistance. The case is being prosecuted by Assistant United States Attorneys Ann Claire Phillips and Rebecca McNerney.
10 July 2013
York Resident Indicted for Failing to Register as Sex OffenderRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today the indictment of John H. Phillips, age 45, of York, by a grand jury in Harrisburg for failing to properly register in Pennsylvania as a Sex Offender.
According to United States Attorney Peter J. Smith, Phillips is charged with knowing failure to register under the Sex Offender Registration and Notification Act. Phillips was convicted of rape in Massachusetts in 2004. Phillips registered as required in Massachusetts, but he allegedly recently left Massachusetts and moved to Pennsylvania. He allegedly failed to register as a sex offender and was found by United States Marshals living at a residence in York. Phillips was arrested on June 21, 2013. He was ordered to be detained in custody after a hearing before U.S. Magistrate Judge Susan Schwab.The Sex Offender Registration and Notification Act requires not only registration, but also updates when the registrant moves to, is employed, or attends school in another state.
“The Sex Offender Registration and Notification Act, commonly known as SORNA, is part of the Adam Walsh Child Protection and Safety Act of 2006, provides a set of minimum standards for sex offender registration and notification, and was enacted to help protect society from known sex offenders. The Act’s requirements are mandatory and are enforced vigorously in the Middle District of Pennsylvania.”
The case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is -10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.