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2 July 2013
Canadian National Pleads Guilty to Conspiring to Provide Material Support to the Tamil TigersRead the Press Release
Earlier today, defendant Suresh Sriskandarajah pleaded guilty in federal court in Brooklyn, New York, to conspiring to provide material support to a foreign terrorist organization, the Liberation Tigers of Tamil Eelam (“LTTE”), also known as the Tamil Tigers, in connection with his attempt to procure sophisticated military technology, including submarine and warship design software and night vision equipment, for the LTTE. Sriskandarajah faces a maximum term of 15 years’ imprisonment. Six of Sriskandarajah’s co-defendants were previously convicted of terrorism-related offenses in connection with their support for the LTTE.
Sriskandarajah’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; Aaron T. Ford, Special Agent-in-Charge, Federal Bureau of Investigation, Newark Field Office, and Raymond W. Kelly, Commissioner of the New York City Police Department. The guilty plea was accepted by United States District Judge Raymond J. Dearie.
As detailed in court filings, between September 2004 and April 2006, Sriskandarajah and several co-conspirators assisted a principal LTTE procurement officer in researching and acquiring aviation equipment, submarine and warship design software, night vision equipment and communications technology. Sriskandarajah used students as couriers to smuggle prohibited items into territory in Sri Lanka that was controlled by the LTTE at that time. Additionally, Sriskandarajah helped the LTTE launder its proceeds in the United States and elsewhere. Following his indictment in the Eastern District of New York, Sriskandarajah, who is a Canadian citizen, was extradited to the United States from Canada, arriving in 2012.
The LTTE was founded in 1976 and uses illegal methods to raise money, acquire weapons and technology, and publicize its cause of establishing an independent Tamil state in northern Sri Lanka. The LTTE began its armed conflict against the Sri Lankan government in
1983, and utilizes a guerrilla strategy that often includes acts of terrorism. At its height, the LTTE controlled most of the northern and eastern coastal areas of Sri Lanka. Over the past 19 years, the LTTE has conducted approximately 200 suicide bombings, resulting in the deaths of hundreds of victims, and carried out numerous political assassinations, including the May 1991 assassination of former Indian Prime Minister Rajiv Gandhi, the 1993 assassination of the President of Sri Lanka, Ranasinghe Premadasa, the July 1999 assassination of Neelan Thiruchelvam, a member of the Sri Lankan parliament, the June 2000 assassination of C.V. Goonaratne, the Sri Lankan Industry Minister, the August 2006 assassination of the Sri Lankan government’s peace secretariat, Ketheshwaran Loganathan, the January 2008 assassination of Sri Lankan Minister for Nation Building, D.M. Dassanayake, and the April 2008 assassination of Sri Lankan Highways Minister, Jeyaraj Fernandopulle. In May 2009, the LTTE’s forces in Sri Lanka were defeated by the Sri Lankan government.In 1997, the LTTE was designated by the U.S. State Department as a Foreign Terrorist Organization, and the LTTE therefore may not legally raise money or procure equipment or materials in the United States.
“The defendant helped the LTTE, an organization that pioneered terrorist tactics and has killed numerous civilians in brutal terrorist attacks, obtain sophisticated military technology and equipment,” stated United States Attorney Lynch. “Claiming to fight for freedom, the LTTE instead created a climate of fear and bloodshed, systematically assassinating those who stood in the way of their terrorist goals. We will continue to locate and prosecute those who fund and support terrorist organizations, wherever they reside.” Ms. Lynch extended her grateful appreciation to the New York and Newark Field Offices of the FBI, and the New York City Police Department.
The government’s case is being prosecuted by Assistant U.S. Attorney Alexander Solomon.
The Defendant
Name: SURESH SRISKANDARAJAH
Age: 32Burlington Man Pleads Guilty to Selling More Than $600,000 in Stolen MerchandiseRead the Press Release
BOSTON – A Burlington man pleaded guilty today to shoplifting more than $600,000 worth of merchandise from retail stores in Massachusetts and New Hampshire, then selling it on Ebay’s Half.com website.
John C. Strang, 67, pleaded guilty before U.S. District Judge Rya W. Zobel to interstate transportation of stolen property.
From at least 2007 through 2013, Strang shoplifted large quantities of merchandise - primarily books, audiobooks, and Lego products - from retail stores such as Barnes & Noble and The Paper Store. In total, Strang stole tens of thousands of items, with a total retail value of at least $600,000. He then sold them online at Half.com, an Ebay subsidiary, using the name “booksgoodtome.” Strang listed the stolen items at prices which were typically 40-50% of their retail prices. Strang then sold and shipped the stolen merchandise to purchasers throughout the United States. He routinely received payment of more than $2,000 every two weeks from Half.com.
Sentencing is scheduled for Oct. 15, 2013. The maximum statutory penalty is 10 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service, and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Boise Man Sentenced for Conspiring to Distribute MethRead the Press Release
BOISE – Terry Lee O’Brien, 53, of Boise, Idaho, was sentenced today in United States District Court to 66 months in prison followed by three years of supervised release for conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. O’Brien appeared this morning before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
On April 11, 2013, O’Brien pleaded guilty to count one of the indictment charging him and two others with conspiracy to distribute methamphetamine in Idaho. According to court documents, O’Brien admitted that between March 29 and May 21, 2012, he conspired with his co-defendants, Christopher Palacios and Krystal Amber Reese, to distribute methamphetamine in the Twin Falls area.
Christopher Palacios, a/k/a “Paco,” 40, of Filer, Idaho, pleaded guilty on February 26, 2013, to count one of the indictment. He faces a minimum term of 10 years in prison, a maximum fine of $10 million, and at least five years of supervised release. Sentencing is set for August 13, 2013.
Krystal Amber Reese, 31, of Filer, pleaded guilty today to count 10 of the indictment charging her with possession with intent to distribute methamphetamine. According to court documents, Reese admitted that she knowingly possessed with intent to distribute approximately 27.10 grams of a mixture and substance containing at least five grams of actual methamphetamine. She faces a minimum term of five years in prison, a maximum fine of $5 million, and at least four years of supervised release. Sentencing is set for September 23, 2013.
The case was investigated by the Idaho State Police.
Bay Area Law Firm Paralegal Pleads Guilty to FraudRead the Press Release
OAKLAND – Ana Lissa Reyes pleaded guilty in federal court in Oakland today to mail fraud and tax evasion, announced United States Attorney Melinda Haag.
In pleading guilty, Reyes admitted to having worked as a secretary, office manager, and paralegal for a Bay Area law firm. Reyes admitted that from about 2006 through June 2011, she, without authorization, settled claims without the knowledge of the law firm or its clients and stole the settlement proceeds. Reyes admitted to engaging clients without the law firm’s knowledge and to stealing clients’ retainer fee payments. Reyes also admitted that in carrying out the scheme to defraud, she created a bogus company, Lincoln Litigation, to correspond with clients without the law firm’s knowledge, and to defraud the clients into believing that their cases were ongoing. Reyes admitted to embezzling a total of $327,795.05 from the law firm and its clients.
Reyes also admitted to under-reporting her income for the calendar years 2006 through 2011. For each of these tax years, Reyes admitted that she knew her joint taxable income was substantially in excess of the amount stated on the return, resulting in additional tax due and owing to the United States.
Reyes, 42, of San Lorenzo, California, was charged by an information on January 25, 2013 with five counts of mail fraud in violation of Title 18 U.S.C. § 1341, and six counts of tax evasion in violation of Title 26 U.S.C. § 7201. Reyes is currently on pre-trial release on a $100,000 bond.
Reyes’ sentencing hearing is scheduled for October 10, 2013 at 2:00 p.m. before the Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge, in Oakland. The maximum statutory penalty for each count of mail fraud, in violation of Title 18 U.S.C. § 1341, is 20 years’ imprisonment and a fine of $250,000, plus restitution. The maximum statutory penalty for each count of tax evasion, in violation of Title 26 U.S.C. § 7201, is 6 years’ imprisonment and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Wade Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Assistant Janice Pagsanjan and Paralegal Patty Lau. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
Barry Diller to Pay $480,000 Civil Penalty for Violating <br /> Antitrust Premerger Notification RequirementsRead the Press Release
Corporate investor Barry Diller will pay a $480,000 civil penalty to settle charges that he violated premerger reporting and waiting requirements when he acquired voting securities of The Coca Cola Company, the Department of Justice announced today.The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Diller for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
The HSR Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements on individuals and companies over a certain size before they consummate acquisitions resulting in holding stock or assets above a certain value, which at the time of Diller’s violations ranged from $63.4 million to $68.2 million and is currently $70.9 million.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
For further details on this matter, contact the FTC’s Office of Public Affairs, 202-326-2180.Augusta Man Sentenced to 15 Years in Prison for Fraud at Funeral and Nursing HomesRead the Press Release
AUGUSTA, GA: BRYANT KEITH EVANS WEBB, 44, of Augusta, Georgia, was sentenced on June 27, 2013 by United States District Court Dudley H. Bowen, Jr. to 15 years imprisonment based on WEBB’s earlier guilty pleas to three counts of bank fraud, one count of wire fraud, and one count of aggravated identity theft.
Evidence presented at hearings in this case showed that while working at Peoples Funeral Home in Augusta, Georgia, WEBB defrauded his employer and deceased individuals’ families out of more than $215,000 from insurance policy proceeds and bank accounts. After leaving Peoples Funeral Home, WEBB began working at Mother and Daughter Personal Care Home in Augusta, Georgia, where he stole over $33,000 from disabled nursing home residents, some of whom are veterans.
United States Attorney Edward J. Tarver said, “Even though this defendant had an extensive history of financial crimes, he obtained employment that gave him access to some of the most vulnerable victims possible. In those positions of trust, he took advantage of the elderly, the disabled, and grieving families. The lengthy prison sentence in this case protects the community from the defendant’s continued crimes and sends a message that such reprehensible conduct cannot be tolerated.”
Judge Bowen has delayed ordering WEBB to pay restitution to the victims of his crimes for 90 days to allow time for anyone who believes that they are a victim of WEBB’s crimes to come forward with that information. If you believe you are a victim, please contact:
David M. Stewart
United States Attorney’s Office
P.O. Box 2017
Augusta, Georgia 30903
(706) 724-0517After he is released from prison, WEBB will serve five years of supervised release. Regarding the length of the prison sentence, Tarver noted that there is no parole in the federal system.
Investigator Michael Lanham of the Richmond County Sheriff’s Office and FBI Special Agent Paul Kubala conducted the investigation of WEBB. Assistant United States Attorney David Stewart prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Anchorage Woman sentenced to 95 months in prison for drug and gun crimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for her conviction of possession of a controlled substance with intent to distribute and felon in possession of firearms.
Nancie Caridad Modeste, 27, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon L. Gleason to 95 months in prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Modeste possessed over 100 grams of crack cocaine and over 12 grams of powder cocaine on September 5, 2012. At the time of her arrest, Modeste was in a vehicle with a large amount of crack cocaine located in a box beneath her driver’s seat. Law enforcement found Modeste’s fingerprints on the box and they found a scale commonly used to weigh drugs for sale inside of the box. Law enforcement also found three semi-automatic firearms inside of the vehicle’s center console. Modeste admitted to possessing the illegal controlled substances, and the firearms. She further admitted to selling crack cocaine. Modeste has a prior conviction for felony evidence tampering dating back to 2005.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, along with Modeste’s history of serious crimes. Judge Gleason also noted a need to protect the public and to deter this type of criminal behavior.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alaska State Troopers for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
1 July 2013
York City Man Indicted for Drug Trafficking and Possession of A FirearmRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment on June 26 charging a York City man for drug trafficking and possession of a firearm.
According to United States Attorney Peter J. Smith, on December 12, 2012, the Pennsylvania State Police and York City Police arrested Charlie Rivera, age 23, from York. Rivera was wanted by local officials for failing to report for service for a drug trafficking sentence. When officers arrested Rivera, they allegedly found in his vehicle crack cocaine, powder cocaine, heroin, oxycodone, and a firearm.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio and Special Assistant United States Attorney David Sunday from the York County District Attorney’s Office.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 these particular cases, the maximum penalty under the federal statute is life imprisonment for the defendant and 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.
Yonkers Gang Leader Convicted in Federal Court of Racketeering Charges, Murder, Conspiracy to Murder, Attempted Murder, Narcotics, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN KNOWLES, 25, was convicted today in White Plains of various racketeering charges, murder, conspiracy to murder, attempted murder, narcotics conspiracy, and firearms offenses following a four-week jury trial before the U.S. District Judge Kenneth M Karas. The jury convicted KNOWLES of charges arising out of his involvement, from 2000 through 2013, in the criminal activities of the Elm Street Wolves gang (the “Wolves”) – a violent street gang that was involved in drug-trafficking and multiple acts of violence, including murder and attempted murder, in Yonkers, New York.
Manhattan U.S. Attorney Preet Bharara said: “It was four years ago almost to the day, July 4, 2009, that Steven Knowles shot down rival gang member Christopher Cokley, killing him in cold blood. With today’s verdict, Knowles is now held accountable for not only Cokley’s murder, but for the years of violence and drug dealing committed by Knowles on the streets of Yonkers. This conviction is a continuation of the long-standing commitment by federal, state, and local law enforcement authorities to rid Yonkers and other communities in the Southern District of New York of violent drug gangs. Law enforcement has pledged itself to this cause for several years now and has not stood down.”
According to the Superseding Indictment and evidence admitted at trial:
From 2000 through 2013, KNOWLES was a member, and then leader, of a racketeering enterprise – the Elm Street Wolves. As part of his participation in that enterprise, KNOWLES conspired to murder a member of a rival gang, the Strip Boyz, which culminated in the violent murder by KNOWLES and others of Christopher Cokley on July 4, 2009. On October 14, 2007, KNOWLES also participated in an attempted murder of Tremaine Garrison, a/k/a “Triggermain,” also a member of the Strip Boyz. Further, KNOWLES participated in a more than decade-long conspiracy to distribute kilograms of crack cocaine within a several block radius of Elm Street and Oak Street in Southwest Yonkers, New York. The evidence at trial also showed that KNOWLES and other members of the Wolves possessed, brandished, and discharged a number of firearms in connection with their drug trafficking and racketeering activities with the Elm Street Wolves gang.
KNOWLES was convicted of one count of racketeering, one count of racketeering conspiracy, one count of conspiracy to murder in aid of racketeering, one count of murder in aid of racketeering, one count of conspiracy to distribute or possess with intent to distribute 280 grams and more of crack cocaine, two counts of discharging a firearm in furtherance of a crime of violence or a drug-trafficking crime, and one count of discharging a firearm in connection with the murder of Christopher Cokley on July 4, 2009. He was acquitted of one count of conspiracy to commit murder, one count of attempted murder, and one count of possession, use, and carrying a firearm in furtherance of a crime of violence, all stemming from shooting another member of the Strip Boyz. KNOWLES faces a mandatory sentence of life in prison, plus 35 years. KNOWLES is scheduled to be sentenced on May 29, 2014, at 10:00 a.m. before Judge Karas.
Mr. BHARARA praised the outstanding investigative work of the FBI and the Yonkers Police Department. He also thanked the Westchester County Department of Public Safety and the Westchester County District Attorney’s Office for their assistance in the case. He added that the investigation is continuing.
This case is being handled by the Office’s White Plains Division and Violent Crimes Unit. Assistant United States Attorneys Andrew Bauer and Jessica Ortiz are in charge of the prosecution.
Wisconsin Man Pleads Guilty to Defrauding Local RetailersRead the Press Release
A man who defrauded local retailers by switching UPC codes on consumer products pled guilty today in federal court in Cedar Rapids.
Jeremy J. Fishnick, age 26, from Lancaster, Wisconsin, was convicted of one count of wire fraud.
In a plea agreement, Fishnick admitted that, between at least July 2012 and November 20, 2012, he using home computer equipment and a printer to create fraudulent UPC codes on adhesive labels. He then entered retail stores and covered real UPC codes on higher-priced models of certain products using the fraudulent UPC codes he created. In so doing, Fishnick caused the items to reflect substantially lower prices when electronically scanned at checkout. Fishnick admitted fraudulently purchasing products from stores in, at least, Dubuque, Iowa, Maquoketa, Iowa, Anamosa, Iowa, Cedar Rapids, Iowa, Coralville, Iowa, Monticello, Iowa, and Prairie Du Chien, Wisconsin. Fishnick also admitted his scheme caused a loss to retailers of more than $30,000.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Fishnick was released on bond pending sentencing. Fishnick faces a possible maximum sentence of twenty years’ imprisonment, a $250,000 fine, a $100 special assessment, 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 Dubuque, Iowa, Police Department; the Maquoketa, Iowa, Police Department; the Anamosa, Iowa, Police Department; the Cedar Rapids, Iowa, Police Department; the Coralville, Iowa, Police Department; the Monticello, Iowa, Police Department; the Vinton, Iowa, Police Department; the Lancaster, Wisconsin, Police Department; and the Prairie Du Chien, Wisconsin, Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-1009 LRR.
White River Woman Charged and Sentenced for Simple Assault and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota woman convicted of Simple Assault and Aiding and Abetting has pled guilty to the charges and was sentenced on June 28, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Jarashae Vanderwalker, age 20, was sentenced to 12 months’ probation and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 3, 2011, when Vanderwalker and others assaulted the victim with a bat. The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services.
The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Vanderwalker was released.
U.s. Attorney’s Office Remembers Colleague Albert J. Winters, Jr.Read the Press Release
U.S. Attorney Dana Boente, on behalf of the U.S. Attorney’s Office for the Eastern District of Louisiana, noted the passing of Albert J. Winters, Jr., who served the Department of Justice for nearly 35 years in the New Orleans area.
After graduating from Loyola Law School in 1968, Winters became a member of the Louisiana Bar in the same year and maintained a general practice for a few years. Winters joined the United States Attorney’s Office located in New Orleans in 1972 as an Assistant U.S. Attorney. In 1983, Winters became the Organized Crime and Racketeering Section Strike Force Chief, a Department of Justice Section which worked closely with, but was separate from, the local U.S. Attorney’s Office. In 1987, Winters returned to the U.S. Attorney’s Office where he remained until he retired in April, 2006.
Winters’ service was highlighted by the various positions he held within the U.S. Attorney’s Office over the years. Winters was Chief of Narcotics, Chief of the Criminal Division, First Assistant U.S. Attorney on two occasions, and Senior Litigation Counsel in addition to his service as Strike Force Chief. Winters also served as a Special Assistant U.S. Attorney for the Southern District of Florida in Miami from 1986 through 1990 during which he participated in investigations and prosecutions of high level Colombian drug cases and contract murder cases involving the killing or attempts to kill federal witnesses.
Various prosecutions highlighted Winters’ career including the prosecution of Carlos Marcello and the sitting Louisiana Commissioner of Administration, Charles Roemer; the Gem Stone marijuana conspiracy case which resulted in 117 convictions including law enforcement officers and a State Judge and which resulted in approximately 25 million dollars in forfeiture and seizure of over one and a quarter million pounds of marijuana and the Len Davis case which resulted in 16 convictions of various individuals involved in cocaine trafficking and the protection of traffickers by police officers.
The U.S. Attorney’s Office in the Eastern District of Louisiana wishes to acknowledge the dedicated service of our friend and colleague and hopes to celebrate his life and service with all who served with him from 5:00 p.m. until 7:00 p.m. at the Cannery, 3803 Toulouse St. in New Orleans on Tuesday, July 2, 2013.
Two-time Convicted Sex Offender Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PETER LYNN SCHUETT, 54, of Manchester, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of receipt and distribution of child pornography.
According to court documents and statements made in court, on February 1, 2013, the Connecticut State Police, Manchester Police Department and Homeland Security Investigations executed an arrest warrant on SCHUETT for violation of Connecticut’s state sex offender registry law. Prior to execution of the warrant, SCHUETT consented to a search of his mobile phone, which revealed that he had received and distributed images and videos of child pornography.
Subsequent forensic analysis of SCHUETT’s phone and email accounts has revealed hundreds of images and videos of child pornography. The images and videos contained depictions of prepubescent minors and minors under the age of 12 engaged in sexually explicit conduct, as well as material depicting sadistic and masochistic conduct or other depictions of violence. The investigation revealed that SCHUETT also engaged in sadistic and masochistic chats with other individuals that advocated graphic violence against children.
SCHUETT has previous convictions in Texas in 2000 for possession of child pornography, and in Connecticut in 2008 for importing child pornography and promotion of a minor in an obscene performance.
Judge Arterton has scheduled sentencing for October 1, 2013, at which time SCHUETT faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years. The penalties in this case are enhanced because of SCHUETT’s criminal history.
SCHUETT has been detained since his arrest on February 1, 2013.
This case is being investigated by Homeland Security Investigations, with assistance from the Connecticut State Police and the Manchester Police Department. The case is being prosecuted by Assistant United States Attorney Sarala V. Nagala.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Charged for Trying to Provide A Cell Phone to Federal InmateRead the Press Release
A two-count information was filed charging two people with aiding and abetting each other in an attempt to provide a cell phone to an inmate of a federal correctional facility, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that.
Charged are Anyelina Lespin, age 34, of the Bronx, New York, and Kendy Hernandez, age 29, of the Northeast Ohio Correctional Center.
Count one charges that Lespin, aided and abetted by Hernandez, attempted to provide a prohibited object, to-wit, a cell phone, to an inmate of a federal correctional facility on Jan. 12, 2013.
Count two charges that Hernandez, an inmate of a federal correctional facility, aided and abetted by Lespin, attempted to obtain a prohibited object, to-wit, a cell phone.
The information was filed by Assistant United States Attorney Gregory C. Sassé after investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the 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.
An information 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.
Twelfth Defendant Pleads Guilty in Dodge City Racketeering CaseRead the Press Release
TWICHITA, KAN. – A member of a Dodge City street gang charged in a federal racketeering case has pleaded guilty, U.S. Attorney Barry Grissom said today.
Juan Torres, 22, Dodge City, Kan., pleaded guilty to one count of aiding and abetting attempted murder, which was a violent crime in aid of racketeering. He admitted he was involved in an Oct. 4, 2008, incident in which two people were shot.
In his plea, Torres admitted he was a Diablos Viejos (DV) gang member associated with the Norteno street gang when he accompanied two co-defendants in an attack at the home of a member of the rival Sureno gang. On Oct. 4, 2008, Torres and two co-defendants gathered in a barn behind a house at 10770 Kettle Way near Dodge City, which was a hangout for the gang. Later that day, Torres and the two co-defendants drove to the home of Abel Hernandez, a known Sureno gang member, and Rumalda Hipolito. Outside the home, Hernandez’s brother and others were drinking beer. One of the Nortenos began harassing them and shouting Norteno slogans. After someone threw a beer bottle at the Nortenos’ car, Torres and the two co-defendants drove away. The three Nortenos obtained a firearm, an SKS or AK-47 style weapon and returned to Hernandez’s house, parking in an alley half a block away. After approaching the house on foot, co-defendant Gonzalo Ramirez discharged multiple rounds from the firearm. The gunshots hit the house, striking Abel Hernandez and Rumalda Hipolito. Hipolito suffered a gunshot wound to the arm. Hernandez suffered a gunshot wound to the leg. Investigators found 10 bullet holes in the house and recovered 20 shell casings at the scene. After the shooting, Torres and the two co-defendants returned to the house on Kettle Way, where they hid the car in the barn.
Sentencing is set for Sept. 16. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, the Ford County Attorney’s Office, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
Three Florida Residents Arrested on Charges of FraudRead the Press Release
Three individuals charged in connection with operating a series of fraudulent business opportunity companies were arrested Friday following their indictment by a federal grand jury in Miami on June 25, 2013, the Justice Department and the U.S. Postal Inspection Service announced today. Mitchell Berman (aka Brian Griffin), of Boca Raton, Fla., Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo), of Coconut Creek, Fla., and Steven Axelrod (aka Michael Hutton), of Wellington, Fla., were arrested and charged with conspiracy to commit mail fraud and mail fraud. Mitchell Berman was also charged with criminal contempt of court.
The indictment alleges that the defendants operated a series of fraudulent companies that sold coffee display racks business opportunities. Buyers were told they would receive display racks and packets of coffee, as well as assistance in establishing and maintaining a business selling the coffee.
Beginning in August 2000 and continuing through October 2011, the indictment charges that Berman, Gallo, and Axelrod operated a series of five coffee display rack business opportunity companies: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee and South Beach Coffee. The business opportunities the defendants sold cost a minimum of approximately $10,000. Each company operated for six months to a year, and after one company closed, the next opened.
The indictment alleges that Berman and Gallo ran the companies, while working as salesman together with Axelrod. All three defendants allegedly made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the misrepresentations alleged in the indictment are that purchasers would likely earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts,” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts, and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman was violating a December 2000 federal court order barring him from misrepresenting profits, locations, and other aspects of business opportunities.
According to the indictment, once purchasers began filing complaints with the Better Business Bureau or state authorities, the defendants shut down each of their companies in turn, and opened the next one. In order to evade detection, all the defendants allegedly used aliases and gave out false addresses for the company. The indictment alleges that Berman and Gallo also avoided listing their own names on corporate and promotional documents, and instead paid people who did not work at the companies to be titular presidents.
“The Department of Justice is committed to protecting consumers from business opportunity fraud schemes,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “As this indictment demonstrates, we will continue to prosecute individuals who seek to swindle innocent Americans out of their hard-earned money.”
All three defendants were charged with conspiracy to commit mail fraud. In addition, Berman was charged with 8 counts of mail fraud and 9 counts of criminal contempt; Gallo was charged with 8 counts of mail fraud; and Axelrod was charged with 4 counts of mail fraud. If convicted, Berman, Gallo, and Axelrod face a maximum statutory term of 20 years in prison, a possible fine, and mandatory restitution on each conspiracy and mail fraud count. Berman faces a maximum statutory term of up to life in prison, a possible fine, and mandatory restitution on each of the criminal contempt counts.
“Business opportunity schemers use deceit to target and victimize hard-working Americans who are seeking opportunities to better provide for themselves and their families,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “We will continue to vigorously pursue these individuals who seek to steal the American Dream from their victims.”
“Cases like this one illustrate the Postal Inspection Service’s dedication to investigating business opportunity fraud that insidiously targets innocent victims,” said Ronald Verocchio, U.S. Postal Inspector in Charge in Miami.
The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.stopfraud.gov
Acting Assistant Attorney Stuart Delery commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Assistant Director Richard Goldberg and Trial Attorney Cindy Cho of the Consumer Protection Branch of the Civil Division of the Department of Justice.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Three Florida Residents Arrested on Charges of FraudRead the Press Release
Indictment Alleges that Defendants Operated Fraudulent Companies for Years Despite December 2000 Court Order
Three individuals charged in connection with operating a series of fraudulent business opportunity companies were arrested Friday following their indictment by a federal grand jury in Miami on June 25, 2013, the Justice Department and the U.S. Postal Inspection Service announced today. Mitchell Berman (aka Brian Griffin), of Boca Raton, Fla., Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo), of Coconut Creek, Fla., and Steven Axelrod (aka Michael Hutton), of Wellington, Fla., were arrested and charged with conspiracy to commit mail fraud and mail fraud. Mitchell Berman was also charged with criminal contempt of court.
The indictment alleges that the defendants operated a series of fraudulent companies that sold coffee display racks business opportunities. Buyers were told they would receive display racks and packets of coffee, as well as assistance in establishing and maintaining a business selling the coffee.
Beginning in August 2000 and continuing through October 2011, the indictment charges that Berman, Gallo, and Axelrod operated a series of five coffee display rack business opportunity companies: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee and South Beach Coffee. The business opportunities the defendants sold cost a minimum of approximately $10,000. Each company operated for six months to a year, and after one company closed, the next opened.
The indictment alleges that Berman and Gallo ran the companies, while working as salesman together with Axelrod. All three defendants allegedly made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the misrepresentations alleged in the indictment are that purchasers would likely earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts,” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts, and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman was violating a December 2000 federal court order barring him from misrepresenting profits, locations, and other aspects of business opportunities.
According to the indictment, once purchasers began filing complaints with the Better Business Bureau or state authorities, the defendants shut down each of their companies in turn, and opened the next one. In order to evade detection, all the defendants allegedly used aliases and gave out false addresses for the company. The indictment alleges that Berman and Gallo also avoided listing their own names on corporate and promotional documents, and instead paid people who did not work at the companies to be titular presidents.
“Business opportunity schemers use deceit to target and victimize hard-working Americans who are seeking opportunities to better provide for themselves and their families,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “We will continue to vigorously pursue these individuals who seek to steal the American Dream from their victims.”
“The Department of Justice is committed to protecting consumers from business opportunity fraud schemes,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “As this indictment demonstrates, we will continue to prosecute individuals who seek to swindle innocent Americans out of their hard-earned money.”
All three defendants were charged with conspiracy to commit mail fraud. In addition, Berman was charged with 8 counts of mail fraud and 9 counts of criminal contempt; Gallo was charged with 8 counts of mail fraud; and Axelrod was charged with 4 counts of mail fraud. If convicted, Berman, Gallo, and Axelrod face a maximum statutory term of 20 years in prison, a possible fine, and mandatory restitution on each conspiracy and mail fraud count. Berman faces a maximum statutory term of up to life in prison, a possible fine, and mandatory restitution on each of the criminal contempt counts.
“Cases like this one illustrate the Postal Inspection Service’s dedication to investigating business opportunity fraud that insidiously targets innocent victims,” said Ronald Verocchio, U.S. Postal Inspector in Charge in Miami.
The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.stopfraud.gov.
Acting Assistant Attorney Stuart Delery commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Assistant Director Richard Goldberg and Trial Attorney Cindy Cho of the Consumer Protection Branch of the Civil Division of the Department of Justice.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
St. Landry Parish School Board Member Pleads Guilty to Bribery ConspiracyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that St. Landry Parish School Board member John Miller, 72, of Opelousas, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of conspiracy to commit bribery.
According to evidence presented at the guilty plea, Miller admitted that he and fellow St. Landry Parish School Board member Quincy Richard Sr., 51, of Opelousas, conspired to receive bribe money from school board superintendent candidate Joseph Cassimere in return for their support. During July, August and September of 2012, Miller admitted that he and Richard had a number of private meetings with Cassimere where they negotiated price and payment from Cassimere in exchange for their favorable individual votes as school board members in support of Cassimere’s candidacy for superintendent. At the same time the screening process for the superintendent position was ongoing and by the week of Sept. 16, 2012, five applicants had been publicly named. The final vote was scheduled for Sept. 26, 2012.
The defendants met with Cassimere on Sept. 24, 2012 at the Quarters Restaurant in Opelousas and received $5,000 each in return for their votes. They made it clear that Cassimere had also secured their services, efforts, influence and due diligence to secure the votes of other members of the school board for Cassimere’s candidacy. Richard added that Cassimere could also recoup his $10,000 bribe by adding that amount to his salary request. Miller instructed Cassimere on how to make and justify a meritorious salary request above the amount listed for the superintendent’s salary as advertised. This conversation of Sept. 24, 2012 had been under video and audio surveillance. After the defendants exited the restaurant, they were confronted by authorities who recovered the $5,000 payments. Miller was indicted on Oct. 24, 2012.United States Attorney Finley stated, “This is a positive first step for the School Board to move forward so they can take care of the educational work that needs to be addressed for the children and citizens of this community.”
Miller faces a maximum penalty of five years in prison, a $250,000 fine, and three years of supervised release for conspiracy to commit bribery. A sentencing date has not been set.
The FBI-Alexandria Resident Agency conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Somerset County Resident Pleads Guilty in Cocaine Trafficking SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Winder, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
Jamie H. Porcher, 28, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Nov. 2011 to July 18, 2012, Porcher conspired to possess and distribute 500 grams or more of cocaine.
Judge Gibson scheduled sentencing for Dec. 3, 2013, at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Porcher on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. conducted the investigation that led to the prosecution of Porcher.
Sevierville Developer Receives Five Year Sentence for Wire and Bank Fraud Conspiracy and Money Laundering in $6 Million Mortgage Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. – Jeffrey Whaley, 49, of Sevierville, Tenn., was sentenced on July 1, 2013, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve five years in prison for his May 2012 federal convictions for wire fraud, bank fraud, money laundering, all arising from a mortgage fraud scheme. Whaley’s sentencing today followed his co-defendant and Sevierville title attorney Jerry Kerley’s four-year sentence imposed on June 6, 2013.
Whaley and Kerley were convicted of conspiring to defraud Citizens Bank, located in New Tazewell, Tenn., and SunTrust Mortgage, Inc., located in Richmond, Va., through a mortgage fraud scheme. The conspiracy involved a "straw borrower" mortgage fraud scheme in which straw borrowers were induced to obtain mortgage loans in their names based on promises that they would not have to make a down payment or mortgage payments for the property, would receive cash at closing, and would share in the profit following a resale of the property. As part of the conspiracy, materially false representations were made to Citizens Bank and SunTrust Mortgage, which, among other things, included false representations related to the straw borrowers’ source of funds for down payments and amounts recorded as "cash from borrower" on HUD-1 Settlement Statements and loan applications, for the purpose of inducing Citizens Bank and SunTrust Mortgage to disburse the mortgage loan proceeds it had wired to and entrusted with Kerley's title company Guaranty Land Title.
Kerley and Whaley concealed eight real estate transactions from Citizens Bank and SunTrust Mortgage that the borrower did not provide at closing the money identified as the "cash from borrower" on the HUD-1 Settlement Statement. In those eight transactions, Citizens Bank and SunTrust Mortgage, in total, wired more than $6 million in loan proceeds to Guaranty Land Title Company for disbursement. Kerley, a Tennessee licensed attorney, was the owner of Guaranty Land Title Company where the fraudulent loans were closed. Whaley conducted business through a company known as GBO Enterprises which received substantial sums of money from the loan proceeds. Kerley and Whaley committed money laundering offenses through financial transactions that involved proceeds from the mortgage fraud scheme.
“As we know from the all too recent financial crisis, fraud on mortgage lenders has the potential to disrupt our nation’s economic stability. The five- and four-year prison sentences for Whaley and Kerley demonstrate that mortgage fraud will be vigorously prosecuted by the U.S. Department of Justice,” said U.S. Attorney Bill Killian.
This investigation was conducted jointly by the Internal Revenue Service, Criminal Investigation, Federal Bureau of Investigation, and United States Secret Service. Assistant U.S. Attorneys Trey Hamilton and Zac Bolitho represented the United States.
San Anselmo Resident Sentenced to 5 months for Tax FraudRead the Press Release
SAN FRANCISCO, Calif. – John Kieran Hynes was sentenced today to 5 months in prison for filing a false tax return, announced United States Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez.
According to court documents, during 2005, Hynes was the owner of Newtown Construction. Hynes admitted that when he received check payments for contracted construction services rendered during the 2005 tax year, he would either deposit the entire check into his business bank account, cash the entire amount of the check, or cash a portion of the check and deposit the remainder of the check into his business account. The amount Hynes received back in cash when he deposited only a portion of the check was called a “less-cash withdrawal.”
Hynes’ bookkeeper relied on the deposited amounts shown on his monthly bank statements to determine his gross business receipts in 2005. Hynes intentionally did not tell his bookkeeper about the less-cash withdrawals to prevent his bookkeeper from including the less-cash withdrawal amounts among the gross receipts that the bookkeeper tracked in the company accounting records.
In order to file his 2005 tax return, Hynes provided his tax return preparer with the company accounting records prepared by his bookkeeper. Hynes knew those accounting records understated the gross receipts earned under the name Newtown Construction because the gross receipts recorded did not include the less-cash withdrawals.
On his 2005 tax return, Hynes knowingly failed to report additional gross receipts of $214,595 earned by Newtown Construction which resulted in a tax loss to the United States of $66,524.
On March 12, 2013, Hynes, 46, of San Anselmo, California, pleaded guilty to one count of filing a false tax return.
In addition to 5 months imprisonment, the Court imposed one year of supervised release including 5 months of home detention, a $3,000 fine, and restitution of $66,524, to the Internal Revenue Service.
Special Assistant United States Attorney Charles Parker is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rosebud Man Sentenced for Assaulting, Resisting, or Impeding Certain OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Assaulting, Resisting, or Impeding Certain Officers was sentenced on June 28, 2013 by U.S. District Judge Mark A. Moreno.
Jesse Young, age 36, was sentenced to 12 months in custody and $25 to the Federal Crime Victims Fund.
Young was indicted by a federal grand jury on December 11, 2012, and pled guilty to the charge on March 15, 2013.
The conviction stems from an incident that took place on May 29, 2012 when the victim was escorting Young to a restraint chair. Young was non-compliant and spat at the victim, hitting the victim with saliva on his face and ear.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Young was remanded to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Assaulting, Resisting, or Impeding Certain OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Assaulting, Resisting, or Impeding Certain Officers was sentenced on June 28, 2013 by U.S. District Judge Mark A. Moreno.
Jesse Young, age 36, was sentenced to 12 months in custody and $25 to the Federal Crime Victims Fund.
Young was indicted by a federal grand jury on December 11, 2012 and pled guilty to the charge on March 15, 2013.
The conviction stems from an incident that took place on May 29, 2012, when the victim was escorting Young to a restraint chair. Young was non-compliant and spat at the victim, hitting the victim with saliva on his face and ear.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Young was remanded to the custody of the U.S. Marshals Service.
Restaurateur Pleads Guilty to Income Tax EvasionRead the Press Release
PITTSBURGH, Pa. - A resident of Presto, Pa., pleaded guilty in federal court to a charge of federal income tax evasion, United States Attorney David J. Hickton announced today.
Donald J. DeBlasio pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that, as owner of DeBlasio's, the defendant engaged in the practice of "skimming" cash from restaurant sales, resulting in a total tax loss of $341,128.62 from the filing of false personal, corporate and payroll tax returns during the years 2007-2009.
Judge Cercone scheduled sentencing for 11 a.m. on Dec. 3, 2013. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court released the defendant on bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of DeBlasio.
Redby Man Pleads Guilty to Assaulting Another with A MacheteRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 19-year-old Redby man pleaded guilty to assaulting another person with a machete while in Redby, a community on the Red Lake Indian Reservation. Dale Clinton White, Jr., pleaded guilty to one count of assault resulting in serious bodily harm. White, who was indicted on May 6, 2013, entered his plea before United States District Court Chief Judge Michael J. Davis.
In his plea agreement, White admitted that on March 22, 2013, he repeatedly struck another man with a machete as that man slept in the bedroom of a Redby residence. As a result of the assault, the victim suffered fractures to the skull, left arm, and front sinus, as well as lacerations on the scalp, face, and arms. The victim also had soft tissue damage and hemorrhagic shock, which required multiple blood transfusions.
For his crime, White faces a potential maximum penalty of ten years in federal prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Clifford B. Wardlaw.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.President and Project Manager of Hubtec International Corporation SentencedRead the Press Release
Young C. Kim, President and project manager of co-defendant Hubtec International Corporation (“Hubtec”), was sentenced to two years of probation and ordered to pay a $200 special assessment fee based upon his participation in defrauding the U.S. Department of Transportation Federal Highway Administration (“FHWA”) and the Government of Guam Department of Public Works in connection with Hubtec’s contract to reconstruct and rehabilitate the Route 2 culverts and Cetti Bay slide repair in Agat and Umatac. Funded in part under the American Recovery and Reinvestment Act (“ARRA”) of 2009, the contract required that all steel and iron that were to be permanently incorporated into the project be manufactured in the U.S. pursuant to the Buy America requirement unless FHWA granted a waiver. Kim and Hubtec falsely represented that they used U.S.-made reinforcement steel bars for the project, when in fact, the defendants knew they incorporated Korean-made reinforcement steel bars which were not in compliance with applicable Buy America requirements. The Honorable Ramona V. Manglona, Designated Chief Judge, sentenced Kim in the U.S. District Court of Guam on June 27, 2013.
Kim pleaded guilty in October 29, 2012 to two counts of making false statements in connection with a highway project. The FHWA has debarred Kim and Hubtec for its willful violation of the Buy America provisions for a period of three years which has the effect of excluding them from being a participant or principal in federally-funded programs and projects unless an agency grants an exception. The sentencing for Hubtec is set for August 14, 2013 at 1:30 p.m.
The investigation was conducted by the Federal Bureau of Investigation (“FBI”) and the U.S. Department of Transportation, Office of Inspector General (“DOT-OIG”). The case was handled by Assistant U.S. Attorney Marivic P. David.
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, stated that “this prosecution reflects that strong commitment of the U.S. Attorney’s Office, FBI, and DOT-OIG to ensure that ARRA funds are used for their intended purpose.”Pittsburgh Man Pleads Guilty to Drug ChargesRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Donald Lyles a/k/a Chief, 39, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about April 25, 2013, Lyles possessed with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
Judge Cercone scheduled sentencing for Dec. 3, 2013 at 10:00 a.m. The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Drug Enforcement Administration, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Donald Lyles.
Pine Ridge Man Found Guilty of Firearm OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man indicted for Felon in Possession of a Firearm has been found guilty by a federal jury.
Timothy George Buckman, age 28, was convicted by a federal jury on June 26, 2013 for the firearm offense.
He was indicted in April 2013 following an investigation conducted by the Bureau of Indian Affairs Office of Justice Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The investigation produced evidence from the social media site Facebook, where pictures were posted of Buckman holding a 12-gauge shotgun.
The maximum penalty upon conviction is 10 years imprisonment and/or a $250,000 fine.
The charge stems from an incident occurring between January and September 2012 when Buckman possessed a 12-gauge shotgun. A prior felony conviction in 2009 prohibits Buckman from possessing a firearm.
The case was prosecuted by Assistant United States Attorney Sarah B. Collins. A sentencing date has not been set.
Pierre Woman Charged with Theft from an Indian Tribal OrganizationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota woman has been indicted by a federal grand jury for Theft From an Indian Tribal Organization.
Ravae Bowman, age 40, was indicted by a federal grand jury on June 12, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on June 27, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to an alleged embezzlement in October 2012 from a Subway store in Eagle Butte when Bowman was the manager. The Subway store is an entity of the Cheyenne River Sioux Tribe Telephone Authority and the Cheyenne River Sioux Tribe.
The charge is merely an accusation and Bowman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case. Bowman was released to a third party custodian pending trial.
A trial date has not been set.
Parole Officers Charged with Accepting PayoffsRead the Press Release
HOUSTON – Four parole officers from two Texas Department of Criminal Justice (TDCJ) offices in Houston have been indicted for accepting payoffs from parolees, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen L. Morris, Brad Livingston, TDCJ Executive Director and Bruce Toney, Inspector General of TDCJ – Office of Inspector General (OIG).
"Public officials suspected of corruption can undermine our trust and confidence in government and can tarnish virtually every aspect of American society,” said Morris. “Despite the fact that the vast majority of our country’s public officials are honest hard working Americans, who have dedicated their lives to serve the American people, there are unfortunately a small number who allegedly make decisions for the wrong reasons. The FBI will continue to pursue public corruption as a top priority and encourages anyone with information about potential wrongdoing by a public official to please contact the FBI."
April L. Carson, 35, of Missouri City, and Crystal M. Washington, aka Crystal Bureau, 52, of Houston, were employed at the TDCJ office located at 2410 Hamilton Street in Houston, while Darlene J. Muhammad, 42, and Ernie Rogers, 56, both of Houston, worked at the Houston TDCJ Parole Office at 8345 Telephone Road.
The four were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge George Hanks at 2:00 p.m. this afternoon.
“These arrests are the result of an effective partnership with TDCJ - OIG and other law enforcement entities,” said Livingston. “We fully support their efforts to investigate, arrest and ultimately prosecute employees that are suspected of breaking the law.”
The indictment, unsealed today, indicates all of the defendants are responsible for the supervision of inmates within the state of Texas. Included in this responsibility is the supervision of parolees who travel between states and the supervision of their activities to ensure they do not engage in criminal conduct.
Each parole officer named in the indictment allegedly chose to accept money from a parolee in order to allow the parolee to continue his/her illegal narcotics trafficking and distribution activity. Specifically, the indictment alleges each officer accepted payoffs from parolees in the amount of $1000 - $3000 on at least one occasion in order to allow them to continue their criminal behavior.
“The alleged actions of these employees can erode the public’s confidence and damage the integrity of parole officers across the state that perform their duties faithfully every day,” said Toney. “We are committed to rooting out suspected corruption within the criminal justice system.”
If convicted, each faces up to 20 years imprisonment and a possible $250,000 fine.
Anyone suspecting criminal activity or abuse within the TDCJ can make a report by calling the toll-free TDCJ waste/fraud abuse hotline at 1-866-372-8329.
The operation was a combined public corruption task force effort conducted by the FBI, Texas Rangers, Houston Police Department and Office of Inspector General for the Texas Department of Criminal Justice. The case is being prosecuted by Southern District of Texas with the assistance of the Harris County District Attorney’s Office.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Parole Officers Charged with Accepting PayoffsRead the Press Release
HOUSTON – Four parole officers from two Texas Department of Criminal Justice (TDCJ) offices in Houston have been indicted for accepting payoffs from parolees, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen L. Morris, Brad Livingston, TDCJ Executive Director and Bruce Toney, Inspector General of TDCJ – Office of Inspector General (OIG).
"Public officials suspected of corruption can undermine our trust and confidence in government and can tarnish virtually every aspect of American society,” said Morris. “Despite the fact that the vast majority of our country’s public officials are honest hard working Americans, who have dedicated their lives to serve the American people, there are unfortunately a small number who allegedly make decisions for the wrong reasons. The FBI will continue to pursue public corruption as a top priority and encourages anyone with information about potential wrongdoing by a public official to please contact the FBI."
April L. Carson, 35, of Missouri City, and Crystal M. Washington, aka Crystal Bureau, 52, of Houston, were employed at the TDCJ office located at 2410 Hamilton Street in Houston, while Darlene J. Muhammad, 42, and Ernie Rogers, 56, both of Houston, worked at the Houston TDCJ Parole Office at 8345 Telephone Road.
The four were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge George Hanks at 2:00 p.m. this afternoon.
“These arrests are the result of an effective partnership with TDCJ - OIG and other law enforcement entities,” said Livingston. “We fully support their efforts to investigate, arrest and ultimately prosecute employees that are suspected of breaking the law.”
The indictment, unsealed today, indicates all of the defendants are responsible for the supervision of inmates within the state of Texas. Included in this responsibility is the supervision of parolees who travel between states and the supervision of their activities to ensure they do not engage in criminal conduct.
Each parole officer named in the indictment allegedly chose to accept money from a parolee in order to allow the parolee to continue his/her illegal narcotics trafficking and distribution activity. Specifically, the indictment alleges each officer accepted payoffs from parolees in the amount of $1000 - $3000 on at least one occasion in order to allow them to continue their criminal behavior.
“The alleged actions of these employees can erode the public’s confidence and damage the integrity of parole officers across the state that perform their duties faithfully every day,” said Toney. “We are committed to rooting out suspected corruption within the criminal justice system.”
If convicted, each faces up to 20 years imprisonment and a possible $250,000 fine.
Anyone suspecting criminal activity or abuse within the TDCJ can make a report by calling the toll-free TDCJ waste/fraud abuse hotline at 1-866-372-8329.
The operation was a combined public corruption task force effort conducted by the FBI, Texas Rangers, Houston Police Department and Office of Inspector General for the Texas Department of Criminal Justice. The case is being prosecuted by Southern District of Texas with the assistance of the Harris County District Attorney’s Office.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Parkersburg Man Who Possessed More Than A Kilo of Cocaine During Drug Buy Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
Curry fired a .40 caliber pistol during attempt to escape police custody
CHARLESTON, W.Va. – A Parkersburg man faces a mandatory minimum of 10 years to life in prison after pleading guilty today to federal drug and firearm charges. Richard Curry Jr, also known as “Cheese” and “Curtus Javon McDonald,” 31, pleaded guilty to possession with intent to distribute cocaine and discharging a firearm during a drug trafficking crime. On May 3, 2013, a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) arranged to purchase cocaine from Curry. Police observed Curry, who was driving a tan Hummer SUV, pull into the parking lot of the informant’s Charleston apartment complex. Curry later entered the informant’s residence where he was immediately grabbed by police. Curry, who began resisting arrest, fired a single shot from a Taurus .40 caliber pistol that he had hidden inside of his jacket. No one was injured as a result of the shooting. Police determined that the bullet entered into the floor of the residence.
A short time later, officers placed Curry under arrest. Police conducted a search of the defendant and found a package wrapped in electrical tape hidden on Curry’s person. The package contained cocaine weighing 1211 grams.
Police also obtained a search warrant for the defendant’s Hummer SUV. During a search of the vehicle, officers found 68 grams of crack cocaine and 73 grams of cocaine. Officers performed a check of the vehicle’s registration and determined that it had been registered to Curtus Javon McDonald.
On May 6, 2013, Curry appeared before United States Magistrate Judge Dwayne L. Tinsley, for an initial appearance on a criminal complaint that was filed against him. During the hearing, Curry represented to the Court that his name was Curtus Javon McDonald. However, after a fingerprint scan was performed on the defendant by the United States Marshals Service, his true identity was determined to be that of Richard L. Curry Jr.
Curry is responsible for distributing cocaine to a confidential informant on at least six other occasions. During the drug transactions, Curry distributed half-kilogram quantities of cocaine in exchange for cash.
Curry faces up to 20 years on Count One (cocaine possession charge) and a consecutive mandatory minimum of 10 years to life in prison on Count Two (use of firearm charge) when he is sentenced on October 21, 2013 by United States District Judge Thomas E. Johnston.
The investigation was conducted by MDENT and the DEA. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
Owner of Bay Area Home Health Care Providers Charged with Tax Fraud and Structuring Cash TransactionsRead the Press Release
OAKLAND, Calif. – Muzaffar Hussain, of Hayward, was charged on June 25, 2013 with four counts of tax evasion, 13 counts of filing a false tax return, 18 counts of willful failure to truthfully account for and pay payroll taxes, and nine counts of structuring transactions to evade reporting requirements, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martinez.
According to the indictment, between July 2004 and December 2008, Hussain owned and operated Cross Roads Health Care and Hospice, Inc. (Cross Roads). As the corporate officer, he was responsible for collecting, accounting for and paying over Cross Roads’ employment withholdings taxes to the IRS. For a period of 18 quarters, Hussain failed to truthfully account for and pay over the required withholdings taxes to the IRS, in the amount of $534,728.15.
It is further alleged that Hussain filed tax returns with understated income for tax years 2005 and 2006, and he failed to file personal income returns altogether for 2007 and 2008. During all four years, according to the indictment, Hussain used corporate funds to pay personal expenses including payments for rent, marriage dissolution obligations, luxury cars, motor-home, and motorcycles in an attempt to conceal from the IRS his true and correct income.
The Indictment further alleges that Hussain signed and filed corporate income tax returns on behalf of three separate home health care providers that omitted gross receipts earned by the businesses. It is alleged that from 2004 through 2008, Hussain omitted gross receipts from the Corporate Income Tax Returns of Cross Roads in the amounts of $506,925, $795,384, $901,794, $372,930 and $312,992. From 2004 through 2006, Hussain allegedly omitted gross receipts from the Corporate Income Tax Returns he signed on behalf of Horizon Health Care, Inc. in the amounts of $264,928, $603,702 and $157,285. The indictment also alleges that from 2004 through 2008, Hussain omitted gross receipts from the Corporate Income Tax Returns of Sunshine Home Health Care, Inc. in the amounts of $363,917, $648,197, $140,390, $736,542 and $277,968.
The Indictment further alleges that between March 6, 2010, and May 24, 2010, Hussain knowingly structured money transactions for the purpose of evading reporting requirements.
The maximum statutory penalty for each count of tax evasion, in violation of Title 26, U.S.C § 7201 is five years in prison and a fine of $250,000. The maximum penalty for willful failure to collect or pay over taxes in violation of Title 26, U.S.C § 7202 is five years in prison and a fine of $250,000. The maximum statutory penalty for each count of filing a false tax return, in violation of Title 26, U.S.C § 7206(1) is three years in prison and a fine of $250,000. The maximum statutory penalty for each count of structuring transactions to evade the reporting requirement, in violation of Title 31, U.S.C § 5324(a)(3) is five years in prison and a fine of $250,000.
Special Assistant U.S. Attorney Charles Parker is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Operators of University of Louisville Hospital to Pay $2,833,408.60 to Settle False Medicare BillingsRead the Press Release
– University self-reported the over-billing for professional services
LOUISVILLE, Ky. – University Medical Center, doing business as University of Louisville Hospital, has voluntarily entered into a settlement agreement with the United States to pay $2,833,408.60 to settle allegations that it submitted or caused to be submitted false claims for payment to the Medicare program in violation of the Federal False Claims Act, announced David J. Hale, United States Attorney for the Western District of Kentucky, and the Office of Inspector General of the Department of Health and Human Services.
“Pursuing health care fraud is a priority of my Office, the Department of Justice, and the Department of Health and Human Services,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “Those that do not follow the rules designed to safeguard our nation’s health care resources will be held to account.”
University of Louisville Hospital operates a separate fast track unit within the emergency department to address non-urgent care. This in-house immediate care center, FirstCare, is staffed by UMC-employed physician assistants (PAs) and nurse practitioners (NPs) under the direction of the Department of Emergency Medicine physicians – who in turn operate as University Emergency Medicine Associates.
According to the settlement agreement, from January 1, 2006 through December 31, 2010, the salaries and benefits paid to FirstCare PAs and NPs were claimed on UMC cost reports filed with Medicare between 2006-2010. At the same time, University Emergency Medicine Associate (UEMA) physicians generally treated the FirstCare PAs and NPs as their own employees including, to various degrees, billing and collecting from Medicare for their professional services.
In April 2011, counsel for UMC disclosed to the United States Attorney’s Office for the Western District of Kentucky that UMC may have violated federal law concerning the relationships it had with certain health care providers.
University Medical Center, Inc. is the 501(c) (3) organization which leases, operates and manages the University of Louisville Hospital and the James Graham Brown Cancer Center. UMC bills federal government health care programs, including Medicare, the TRICARE Program and Medicaid, for services it performs.
This settlement agreement is neither an admission of liability by UMC nor a concession by the United States that its claims are not well founded.
This matter was handled by Assistant U.S. Attorney Benjamin S. Schecter with assistance from the Department of Health and Human Services, Office of Counsel to the Inspector General.
Operation Winter's End Results in Drug Trafficking Charges Against 22 IndividualsRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced today the unsealing of a federal Indictment that charges a total of 22 defendants with drug trafficking offenses. The Indictment, which was filed on March 26, 2013, and unsealed today, is the result of Operation Winter’s End, a long-term, multi-agency investigation into the activities of an alleged drug trafficking organization that has purportedly been dealing heroin and methamphetamine on and around the Fort Berthold Reservation in northwest North Dakota.
In Bismarck, U.S. Attorney Purdon said, “The charges filed as a result of Operation Winter’s End are a first step to address the increased organized drug distribution activities on the Fort Berthold Reservation and in northwestern North Dakota. This Indictment will help make both reservation and non-reservation communities in the Bakken oil patch stronger and safer. The U.S. Attorney’s Office is committed to an anti-organized crime strategy in the Bakken oil patch that is built on close cooperation between federal, state, local, and tribal law enforcement agencies. With the help of these law enforcement partners, we will continue to do everything we can to address the growing threat of organized crime in this area.”
Special Agent in Charge Chris Warrener of the Federal Bureau of Investigation’s Minneapolis Field Office which includes North Dakota said, “Today’s 22 defendant Indictment of an ongoing investigation named Operation Winter’s End underscores the hard work and coordination of the FBI, BIA, various tribal law enforcement personnel of the Fort Berthold Reservation, along with the prosecutorial skills of the United States Attorney’s Office of North Dakota. This multi-jurisdictional investigation has struck a blow against a large national drug trafficking organization, which has plagued the good people of North Dakota.”
“Jurisdictional issues exist throughout Indian Country and working together with other federal, state and local agencies in a common goal is essential for Indian Country law enforcement,” said Bureau of Indian Affairs Special Agent in Charge Mario RedLegs. “This Operation affirms to the people of Fort Berthold that we are watching vigilantly and ensuring that they do have a safe place to live.”
Those charged with conspiracy to distribute and possess with intent to distribute methamphetamine and conspiracy to distribute and possess with intent to distribute heroin:
Horatio Lopez, a/k/a “Happy,” 33, Wasco, Calif.
Oscar Lopez, 28, Wasco, Calif.
Nathan David McKenzie, a/k/a/ Nate McKenzie, 33, Trenton, N.D.
Jaelyn Faith Crows Breast, 21, New Town, N.D.
Cassie Lynn Packineau, 22, New Town, N.D.
Donald T. Rasmussen, 26, New Town, N.D.
Kealoha Asaga Aulaumea, a/k/a “Sunga,” 21, New Town, N.D.
Bonita June Casarez, 29, New Town, N.D.
LaToya Christine Lone Bear, 31, Mandaree, N.D.
Guy Curtis Slates, 58, New Town, N.D.
Ashly June White, 27, New Town, N.D.
Elizabeth Ann Rodriguez, a/k/a Elizabeth Lockwood, a/k/a Liz Rodriguez, 27, New Town, N.D.
Sean Ray Conklin, 35, New Town, N.D.
Connie Rae Azure, 38, New Town, N.D.
Michael Jason Smith, 32, Evergreen, Colo.
Tomas David Hale, 20, New Town, N.D.
Gary Ray Foote, Jr., a/k/a “Bear,” 20, New Town, N.D.
Hailey Jo Deane, a/k/a Hailey Baker, 25, New Town, N.D.
Avis Gean Finley, 47, New Town, N.D.
Justin Lloyd Price, 24, New Town, N.D.
Akaka Katrina Aulaumea, 24, New Town, N.D.
Megan Darlene Overlie, 21, Minot, N.D.This investigation was a joint investigation by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Drug Enforcement Unit, assisted by the Bureau of Indian Affairs – Law Enforcement Services, the Three Affiliated Tribes Police Department, the Three Affiliated Tribes Criminal Investigations, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Purdon stressed that an Indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Assistant U.S. Attorney Rick Volk is prosecuting the case.
Omaha, Nebraska Man Pleads Guilty to Helping Fort Dodge Bank Robber Escape ArrestRead the Press Release
A man who was an accessory in robbing a bank in Fort Dodge, Iowa pled guilty June 27, 2013, in federal court in Sioux City.
Christopher Anderson, II, age 26, from Omaha, Nebraska, was convicted of one count of accessory-after-the-fact to bank robbery.
Information presented by the United States at the plea hearing revealed that on February 7, 2013, Anderson, drove another party to a location near a bank in Fort Dodge, Iowa. After robbing the bank, the other party returned to Anderson’s car, appeared to be in a hurry, appeared to be holding a bag, and urged Anderson to drive away quickly. Based on these observations Anderson concluded the other party had just committed a robbery. Anderson then drove the other party to Omaha, Nebraska, in order to help the bank robbery escape arrest, prosecution and imprisonment for the Fort Dodge, Iowa, robbery. Anderson was given $1,000 and he concluded this money was stolen and given to him in exchange for his help.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Anderson remains free on bond previously set pending sentencing. Anderson faces a possible maximum sentence of not more than 10 years’ imprisonment, a $125,000 fine, a $100 in special assessment, and up to five years of supervised release following any imprisonment.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3021.
This case was investigated by officers of the Fort Dodge, Iowa, Police Department, the Omaha, Nebraska Police Department, and Special Agents of the Department of Justice’s Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Nebraska Man Arrested on Bank Robbery ChargesRead the Press Release
Michael Clayton, age 43, from Omaha, Nebraska, has been charged with one count of bank robbery. The charges are contained in an Indictment filed on May 22, 2013, in United States District Court in Sioux City.
The Indictment alleges that, on or about February 7, 20132, Clayton robbed the C.S. Bank in Fort Dodge, Iowa.
If convicted Clayton faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3-years of supervised release following any imprisonment.
Clayton appeared on June 12, 2013 in federal court in Sioux City and was held without bond. Clayton’s next appearance will be his trial which is set for August 5, 2013.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 13-3022.As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case was investigated by the Fort Dodge Police Department and the DOJ’s Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Forde Fairchild.
Morrison Man Pleads Guilty to Possession of Destructive DevicesRead the Press Release
DENVER – Richard Lawrence Sandberg, age 35, of Morrison, Colorado, pled guilty late last week before U.S. District Court Judge Philip A. Brimmer to two counts of possession of firearms (which includes destructive devices) which are not registered in the National Firearm Registration and Transfer Record, United States Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Andrew Traver announced. Sandberg, who appeared in custody, was remanded at the conclusion of the hearing. Sandberg is scheduled to be sentenced by Judge Brimmer on September 25, 2013 at 9:00 a.m.
Sandberg was arrested on January 24, 2013 based on a Criminal Complaint obtained on January 23, 2013. He was indicted by a federal grand jury in Denver on January 28, 2013. He pled guilty on June 27, 2013.
According to court documents, including the stipulated facts contained in the plea agreement, the investigation began when a Denver Police detective learned from a confidential informant that there was an individual who possessed destructive devices. The detective contacted ATF regarding this information. ATF, acting on this information, worked to introduce an undercover agent to meet the subject, who turned out to be Richard Sandberg. Eventually, the undercover agent met with Sandberg at his residence, where he was shown the destructive devices. Sandberg reportedly said he wanted to trade the devices for cocaine, or sell them for $300 each.
During the meeting, Sandberg made numerous threatening statements towards law enforcement and specifically the ATF. At the conclusion of the meeting, Sandberg gave the undercover agent three devices, which contained explosive powder, a fuse and shrapnel in the form of stainless steel ball bearings. ATF confirmed that Sandberg was not allowed to possess such devices.
Following Sandburg’s arrest, law enforcement officers conducted a search of his residence. During the search, law enforcement located an additional 28 homemade destructive devices, several hundred rounds of ammunition, and 3 firearms.
For each count of possession of a firearm (which includes destructive devices) which is not registered in the National Firearms Registration and Transfer Record; Sandberg faces not more than 10 years in federal prison, and a fine of not more than $250,000. Additionally, the defendant agrees to relinquish all claims, title, and interest the defendant has to all the ammunition seized in this case; 5.56 caliber rifle, model Low 16; a Remington, model 870 12 gauge shotgun; and a Beretta, model 92FS, 9mm pistol to the United States of America.
This case was investigated by ATF, the Denver Police Department and the Jefferson County Sheriff’s Office. The Denver Police Department Bomb Squad, the Jefferson County Sheriff’s Bomb Squad and the Colorado Springs Regional Explosives Unit provided assistance at Sandberg’s residence, where the destructive devices were found.
Sandberg is being prosecuted by Assistant U.S. Attorney Jeremy Sibert.
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Monett Man Pleads Guilty to Child Porn, Identified in German InvestigationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Monett, Mo., man who was identified in a law enforcement investigation in Germany pleaded guilty in federal court today to receiving child pornography over the Internet.
Donald A. Rise, 57, of Monett, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a July 24, 2012 federal indictment.
By pleading guilty today, Rise admitted that he downloaded child pornography using various Web sites.
Rise was identified by German authorities who were investigating a Web site operated by a German citizen that was used to distribute child pornography. The German investigation resulted in the seizure of files from the Web site, including child pornography and log files. Information about computers in the United States that had downloaded child pornography from the German Web site was forwarded to the FBI, including a computer identified with Rise.
When officers contacted Rise at his residence, he admitted that he had viewed child pornography on his desktop computer the night before. Rise admitted that he had images of child pornography on his computer. He said the average age of the children depicted in those images was 12 years old and some of the images depict children in obvious distress.
Investigators conducted a forensic review of Rise’s computer and found 1,681 images of child pornography, including numerous images of children from 2 to 10 years old. The images depict children as young as toddlers being sexually assaulted by adult men and other children. Some images depict the children being restrained and gagged while being sexually abused and the children appear to be in distress and crying.
Under federal statutes, Rise is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gary K. Milligan. It was investigated by the Southwest Missouri Cyber Crimes Task Force and the FBI.Mexican Man Charged with "Ticket Switch" Fraud at Home DepotRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a two-count indictment charging Luis Alcalar Vasquez, 36, a citizen of Mexico, with possessing false identification documents and unauthorized access devices. The charges carry a maximum penalty of five years in prison terms and a $250,000 fine.
Assistant U.S. Attorney Paul J. Campana, who is handling the case, stated that according to the indictment and a criminal complaint filed in April 2013, the defendant obtained high-end merchandise at various Home Depot stores in Illinois, Indiana, Ohio and New York by scanning bar codes for lower ticketed items at self check-out stations. Vasquez scanned the bar codes for the lower cost items but took the more expensive items out of the stores. For example, the defendant scanned the bar code for a sink priced at $59.95 but actually left the store with a sink costing $444.79. Vazquez then returned the higher ticketed merchandise to another Home Depot location in exchange for stored value cards.
By early March, 2013, Home Depot became aware that the “ticket-switch” and refund transactions were being executed at stores in Western New York. On March 7, 2013, at stores in West Seneca, Buffalo, and Cheektowaga, sinks costing $444.79 were exchanged for stored value cards in that amount.Later on March 7, at Home Depot’s store in Lockport, the defendant tried to use a California driver’s license bearing his picture but a different name, in order to return merchandise valued at $700.55. However, Home Depot personnel stopped the transaction and called Niagara County Sheriff’s Office deputies to the Lockport store, where they took the defendant into custody. Niagara County Sheriff’s Office investigators found Vasquez had 20 false California drivers licenses in three different names but all bearing the defendant’s picture, and 17 Home Depot stored value cards worth approximately $5,910. Two cell phones with bar codes taped to their backs were found on the defendant.
The losses to Home Depot as a result of the fraud exceeded $30,000.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Niagara County Sheriff’s Office, under the direction of James Votour.
The fact that a defendant has been charge with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Maryland Businessman Pleads Guilty to Concealing Foreign Bank Account at Israel-based Bank on His Tax ReturnRead the Press Release
The Justice Department and Internal Revenue Service, Criminal Investigation (IRS-CI) announced that Alexei Iazlovsky of Potomac, Md., pleaded guilty today in the U.S. District Court for the Central District of California to filing a false tax return for tax year 2008.
According to court documents, Iazlovsky, a U.S. citizen, maintained an undeclared bank account held in the name of a foreign corporation at the Luxembourg branch of an Israeli bank. Iazlovsky owned a corporation that produced documentaries for Russian television stations. A tax return preparer suggested to Iazlovsky that he could reduce his taxes by keeping money out of the United States and diverting payments from his Russian clients to a foreign bank account held in the name of a foreign corporation. Iazlovsky met with a banker from the Israeli bank at a New York hotel to open the Luxembourg account.
According to court documents, Iazlovsky diverted a total of $2.6 million in untaxed payments from his Russian clients to his undeclared bank account in Luxembourg. From 2002 through 2009, Iazlovsky filed false individual and corporate tax returns that failed to report his authority over and ownership of the bank account in Luxembourg. He also omitted the income diverted to and generated by the undeclared account in Luxembourg. Iazlovsky has admitted that the tax loss is more than $400,000.
Iazlovsky is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with failing to report income from undeclared accounts held at Israeli banks.
“Individuals who evade their tax obligations cheat their country and their fellow citizens,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The Department of Justice is committed to using all of the many available tools to find and prosecute those who hide income and assets in offshore bank accounts, and to pursue the taxes and penalties that are due.”
"Offshore tax evasion is a top priority for IRS-CI, and the facts in this case are clear. Earned income was placed into foreign bank accounts for the purpose of committing offshore tax fraud," said Richard Weber, Chief, IRS-CI. "Through our efforts, we are gaining access to more and more information on institutions and individuals involved in offshore tax fraud, and you can expect us to use all of our enforcement tools to stop this abuse."
U.S. citizens and residents who have an interest in, signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file a Report of Foreign Bank and Financial Reports (FBAR) with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Iazlovsky has agreed to pay a civil penalty in the amount of 50 percent of the high balance of his undeclared account to resolve his civil liability with the IRS for failing to file FBARs. Iazlovsky faces a maximum prison term of three years and a maximum fine of $250,000.
Assistant Attorney General Keneally thanked special agents of IRS-CI, who investigated the case, and Tax Division Trial Attorneys Ellen M. Quattrucci and Christopher S. Strauss, who prosecuted the case, and Assistant U.S. Attorney Sandra R. Brown of the U.S. Attorney’s Office for the Central District of California, who assisted with the prosecution.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Los Angeles-Area Doctor and Patient Recruiter Plead Guilty <br /> to Participating in a Power Wheelchair Scheme That Defrauded Medicare of over $10.1 MillionRead the Press Release
A Los Angeles-area doctor and a patient recruiter pleaded guilty today for their roles in a power wheelchair fraud scheme that defrauded Medicare of over $10.1 million.
The plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office; and Joseph Fendrick, Special Agent in Charge of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse.
Dr. Emmanuel Ayodele, 65, of Los Angeles, and Alejandro Maciel, 43, of Huntington Park, Calif., pleaded guilty before U.S. District Judge George Wu in the Central District of California to one count of health care fraud and one count of conspiracy to commit health care fraud, respectively.
Ayodele admitted that he defrauded Medicare by participating in a power wheelchair fraud scheme with the operators of fraudulent durable medical equipment (DME) supply companies. According to court documents, DME suppliers provided Ayodele with patients recruited by street-level patient recruiters or “marketers,” who illegally solicited people with Medicare benefits for power wheelchairs and other DME that the people did not need. In court documents, Maciel admitted that he was one of these marketers.
Maciel admitted that he approached people at their homes, swap meets, grocery stores and other locations, and made various misrepresentations to the people about his true identity and Medicare. Maciel admitted that these misrepresentations allowed him to gain the trust of Medicare beneficiaries and convince them to provide him with their Medicare billing and personal information, which Maciel, Ayodele, and their co-conspirators used to defraud Medicare. Maciel also admitted that, through his misrepresentations, he convinced people to travel with him to fraudulent medical clinics and DME supply companies owned and operated by his co-conspirators. Ayodele admitted that he owned one of these fraudulent medical clinics, Beth Medical Clinic, which he operated in Los Angeles.
Ayodele admitted that, at Beth Medical, he wrote medically-unnecessary prescriptions for power wheelchairs and DME. Ayodele admitted he knew that the DME supply companies used the medically-unnecessary prescriptions and documents that he wrote to submit claims to Medicare for medically-unnecessary power wheelchairs and DME. For example, Ayodele admitted that the operators of fraudulent DME supply company Bonfee Inc., who were indicted with Ayodele and Maciel on Medicare fraud charges, paid Ayodele to write a medically-unnecessary power wheelchair prescription for one of Bonfee’s customers, and then used that prescription to submit a false power wheelchair claim to Medicare that totaled over $6,000.
Maciel admitted that his profit from the scheme came in the form of illegal kickbacks paid to him for every person whose Medicare billing and personal information his co-conspirators successfully used to bill Medicare for power wheelchairs or other items of DME. According to court documents, once his co-conspirators successfully billed Medicare, Maciel delivered the power wheelchairs and other DME to the people whom he recruited. During these deliveries, Maciel observed that the people could walk, and that they did not have a legitimate need for the wheelchairs and other DME.
As a result of their conduct, Ayodele and Maciel admitted that they and the owners and operators of Bonfee, Lutemi Medical Supplies, and other fraudulent DME companies submitted and caused to be submitted over $10,132,178 in false and fraudulent claims to Medicare. Ayodele and Maciel admitted that Medicare paid Bonfee and the other DME supply companies over $5,388,754 on these false and fraudulent claims.
Two of Ayodele and Maciel’s co-defendants, Charles Agbu, a former pastor who owned Bonfee, and Dr. Juan Van Putten, have pleaded guilty to Medicare fraud charges and are scheduled for sentencing on Aug. 15, 2013, and Sept. 26, 2013, respectively. Ayodele and Maciel’s other co-defendants, Obiageli Agbu and Candalaria Estrada, are scheduled for trial on July 9, 2013.
The owner of Lutemi, Olufunke Fadojutimi, a registered nurse, was arrested on May 14, 2013, on Medicare fraud charges. Fadojutimi is scheduled for trial on Oct. 22, 2013. Defendants are presumed innocent unless proven guilty in court.
At sentencing, scheduled for Sept. 30, 2013, Ayodele and Maciel each face a maximum penalty of 10 years in prison and a $250,000 fine.
The case is being prosecuted by Trial Attorneys Jonathan T. Baum, Alexander Porter, William Kanellis and Blanca Quintero of the Criminal Division’s Fraud Section. The case is being investigated by the FBI, HHS-OIG and the California Department of Justice.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Los Angeles Medical Supply Company Owner Sentenced <br /> to Five Years in Prison for $8.4 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of a durable medical equipment (DME) supply company was sentenced today to serve five years in prison in connection with a health care fraud scheme involving Latay Medical Services, a DME company based in Gardena, Calif.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Central District of California André Birotte Jr.; Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); and Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
Bolademi Adetola, 47, of Harbor City, Calif., was sentenced today by U.S. District Judge George H. Wu in the Central District of California. In addition to her prison term, Adetola was sentenced to serve three years of supervised release and ordered to pay $4,555,198 in restitution.
On March 1, 2013, Adetola was convicted by a jury in federal court in Los Angeles of one count of conspiracy to commit health care fraud and 12 counts of health care fraud. During trial, the evidence showed that Adetola, as the former owner and operator of Latay, fraudulently billed millions of dollars to Medicare for DME that was either never provided to its Medicare beneficiaries or was not medically necessary.
The trial evidence showed that between January 2005 and October 2009, Adetola paid cash kickbacks for fraudulent prescriptions for DME, such as power wheelchairs and hospital beds. The evidence at trial showed that a co-conspirator physician wrote prescriptions for power wheelchairs and other DME that the Medicare beneficiaries did not need and ultimately never used. The co-conspirator physician testified that Adetola paid him cash kickbacks for every fraudulent prescription that he wrote for the DME and that Adetola used his prescriptions to bill Medicare for the power wheelchairs and other DME. Several Medicare beneficiaries testified that they were lured to medical clinics with the promise of a free recliner sofa, only to receive power wheelchairs that they did not need and did not want. According to the testimony, the beneficiaries were unsuccessful in their attempts to reject delivery of the power wheelchairs from Adetola’s supply company.
In addition, the trial evidence showed that Adetola billed Medicare for DME supposedly provided and delivered to Medicare beneficiaries who were deceased at the time of service. One particular claim submitted by Adetola to Medicare showed that the Medicare beneficiary’s death preceded the date the Medicare beneficiary supposedly signed for the service.As a result of this fraud scheme, Adetola submitted and caused the submission of over $8.4 million in false and fraudulent claims to Medicare, and received over $4.5 million on those claims.
The case is being prosecuted by Assistant Chief Benton Curtis and Trial Attorney Blanca Quintero of the Criminal Division’s Fraud Section. The case is being investigated by the FBI and the Los Angeles Region of HHS-OIG.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Laurel Bank Robber Sentenced to 8 Years in Prison for Four Robberies in over Three MonthsRead the Press Release
Attempted to Rob Two More Banks
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jeffrey Wayne Malcolm, age 56, of Laurel, Maryland, today to 8 years in prison followed by three years of supervised release for bank robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to his plea agreement, Malcolm robbed the following four banks: PNC Bank at 7451 VanDusen Road in Laurel of $1,327 on October 28, 2011; PNC Bank at 1621 West Liberty Road in Sykesville of $3,597 on January 17, 2012; and the Suntrust Bank at 11323 Fingerboard Road in Monrovia of $1,776 on January 25, 2012, and $4,388 on February 4, 2012.
Malcolm also attempted to rob the PNC Bank at 15290 Frederick Road in Woodbine on November 7, 2011, but the teller refused to hand over money. Two days later he attempted to rob the PNC Bank at its VanDusen branch, but when a teller saw him approach the bank wearing a ski mask, bank employees locked the front door, preventing him from entering.
United States Attorney Rod J. Rosenstein commended the FBI, Laurel Police Department, Howard County Police department, Maryland Police Department, Frederick County Bureau of Investigations and Frederick County State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.
Kansas Man Sentenced for Conspiracy to Distribute Crack and Powder CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that July 1, 2013, Jared Lance Howe, 29, of Topeka, Kansas, was sentenced to five years (60 months) in prison for his conviction for conspiracy to distribute cocaine base and powder cocaine. Howe will serve four years on supervised release after completion of the prison term.
Information provided to law enforcement indicated that between January of 2007 and June 14, 2011, Howe was involved with a group of persons who were transporting cocaine base, also known as crack cocaine, and powder cocaine from the Denver, Colorado area to the North Platte, Nebraska area and locations in Kansas. On two occasions in May and June of 2011, Howe and Megan Miller, of Denver, picked up crack cocaine from Howe’s co-defendant, Lavon Owens, in the Denver area. Howe then drove Miller to the North Platte area where Miller delivered the crack cocaine. Howe was held responsible for the distribution of at least 96 grams (approximately 3 ½ ounces) of cocaine base.
Owens also pled guilty to the conspiracy charge and was sentenced in December of 2012 to 78 months in prison. Miller was indicted separately for conspiracy to distribute crack cocaine and powder cocaine and was sentenced to 57 months in prison in April of 2012.
This case was investigated by the CODE Task Force which is made up of law enforcement agencies throughout a 22-county area in west-central/southwest Nebraska and includes the North Platte Police Department, Dawson County Sheriff=s Office, Lincoln County Sheriff=s Office, Red Willow County Sheriff=s Office, Frontier County Sheriff=s Office, Nebraska State Patrol, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI).
Justice Department Files Fair Housing Lawsuit against Owners and Managers of Rental Homes in Washington State for Discrimination against Persons with DisabilitiesRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against the owners and managers of rental homes in and near Kelso and Longview, Wash., for violating the Fair Housing Act by discriminating against persons with disabilities.
The lawsuit, filed in the U.S. District Court for the Western District of Washington, alleges that Linda Barber, Bert Barber and Lori Thompson engaged in a pattern or practice of violating the Fair Housing Act or denied rights protected by the Act. Specifically, the lawsuit asserts that the defendants established and implemented a discriminatory policy that allowed waiver of the defendants’ mandatory $1,000 “pet deposit” for service animals with specialized training, but not for other assistance animals, including emotional support animals. The suit also alleges that, by refusing a tenant’s requests for a reasonable accommodation to waive the $1,000 pet deposit for her assistance animal, the defendants violated the Fair Housing Act.
“The Fair Housing Act ensures that individuals with disabilities who live with and benefit from assistance animals have equal access to housing,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of persons with disabilities.”
“The rights of our disabled citizens need to be protected and landlords should not engage in conduct that makes their lives more difficult,” said U.S. Attorney Jenny A. Durkan for the Western District of Washington. “A tenant should not have to repeatedly prove they need a service animal or other accommodation, and should not face retaliation when they make a complaint to those tasked with protecting their civil rights.”
This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD). A low-income tenant with a mental disability repeatedly asked the defendants to waive the $1,000 pet deposit for her assistance animal and provided numerous notes from medical professionals to support her request. As a result of the defendants’ policy and their failure to grant her request, she waited for over two and a half years to obtain an assistance animal and then began to pay the deposit in monthly installments at great financial hardship. After filing her HUD complaint, she was subjected to retaliation and harassment by the defendants, and she eventually moved out of the defendants’ unit. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
“Housing providers must grant reasonable accommodations needed by residents with disabilities,” said Bryan Greene, Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice are committed to ensuring that everyone has equal housing opportunities and is able to exercise their fair housing rights without fear of retaliation.”
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendants’ actions, and a civil penalty. Any individuals who have information relevant to this case are to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743, ext. 7.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Justice Department Files Fair Housing Lawsuit Against Owners and Managers of Rental Homes in Washington State for Discrimination Against Persons with DisabilitiesRead the Press Release
The Justice Department today filed a lawsuit against the owners and managers of rental homes in and near Kelso and Longview, Wash., for violating the Fair Housing Act by discriminating against persons with disabilities.
The lawsuit, filed in the U.S. District Court for the Western District of Washington, alleges that Linda Barber, Bert Barber and Lori Thompson engaged in a pattern or practice of violating the Fair Housing Act or denied rights protected by the Act. Specifically, the lawsuit asserts that the defendants established and implemented a discriminatory policy that allowed waiver of the defendants’ mandatory $1,000 “pet deposit” for service animals with specialized training, but not for other assistance animals, including emotional support animals. The suit also alleges that, by refusing a tenant’s requests for a reasonable accommodation to waive the $1,000 pet deposit for her assistance animal, the defendants violated the Fair Housing Act.
“The Fair Housing Act ensures that individuals with disabilities who live with and benefit from assistance animals have equal access to housing,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of persons with disabilities.”
“The rights of our disabled citizens need to be protected and landlords should not engage in conduct that makes their lives more difficult,” said U.S. Attorney Jenny A. Durkan for the Western District of Washington. “A tenant should not have to repeatedly prove they need a service animal or other accommodation, and should not face retaliation when they make a complaint to those tasked with protecting their civil rights.”
This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD). A low-income tenant with a mental disability repeatedly asked the defendants to waive the $1,000 pet deposit for her assistance animal and provided numerous notes from medical professionals to support her request. As a result of the defendants’ policy and their failure to grant her request, she waited for over two and a half years to obtain an assistance animal and then began to pay the deposit in monthly installments at great financial hardship. After filing her HUD complaint, she was subjected to retaliation and harassment by the defendants, and she eventually moved out of the defendants’ unit. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
“Housing providers must grant reasonable accommodations needed by residents with disabilities,” said Bryan Greene, Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice are committed to ensuring that everyone has equal housing opportunities and is able to exercise their fair housing rights without fear of retaliation.”
The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendants’ actions, and a civil penalty. Any individuals who have information relevant to this case are to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743, ext. 7.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Jordanian Pleads Guilty to Marrying Two Women to Evade Immigration LawsRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Emad Edin Yousef Abdallah, 29, of Jordan, pleaded guilty before U.S. District Judge Richard T. Haik to marriage fraud.
According to evidence presented at the guilty plea, the defendant admitted that he entered into two fraudulent marriages to change his immigration status and evade the immigration laws of the United States. The March 3, 2009 marriage ended in divorce in June 2010, and Abdallah married another woman on June 27, 2011. He admitted that the second marriage also took place in part to change his immigration status and evade immigration laws.Abdallah faces a maximum penalty of five years in prison, a $250,000 fine, and three years of supervised release for marriage fraud. A sentencing of July 12, 2013 was set.
United States Immigrations and Customs Enforcement conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Johnstown Child Porn Possessor Sentenced to 4+ Years in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 50 months in prison and 15 years supervised release on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on James Robert Reynolds, 54.
According to information presented to the court, on March 30, 2011, Reynolds knowingly possessed videos and images as computer graphic files containing images of child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse, led by the United States Attorney's Offices, 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.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Conemaugh Township Police Department for the investigation leading to the successful prosecution of Reynolds.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 28, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
BLAYNE KYLE BRADY, a 22-year-old resident of Lame Deer, appeared on a charge of assault resulting in serious bodily injury. He is currently detained. If convicted of this charge, BRADY faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by Bureau of Indian Affairs.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.