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27 June 2013
Montgomery Woman Pleads Guilty to Taking Nearly $200,00 in SSA Payments over 22 YearsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Mary Elizabeth Kilpatrick, 57, of Montgomery, La., pleaded guilty before U.S. District Judge Dee D. Drell to theft of government money.
According to evidence presented at the guilty pleas, Kilpatrick spent her mother’s Social Security Administration (SSA) payments for more than 22 years after her mother died. Kilpatrick’s mother died June 5, 1990, and until then, had been receiving widow’s benefits. The money continued to be placed in Kilpatrick and her mother’s joint account, and Kilpatrick continued to spend it. The SSA deposited $176,714 total in widow’s benefits into the joint account. Additionally, the SSA disbursed $15,954 in Medicare premiums after the death, and there was a $250 Economic Recovery Payment paid out to Kilpatrick’s mother in May 2009. The total loss was $192,918.
Kilpatrick faces a maximum penalty of 10 years in prison, a $250,000 fine, restitution, and three years of supervised release. Kilpatrick is scheduled to appear Sept. 27, 2013 for sentencing.
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Mission Man Sentenced for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man convicted of Larceny was sentenced on June 24, 2013 by U.S. District Judge Roberto A. Lange.
Harvey LaPointe, age 62, was sentenced to 18 months’ probation, $4,900 in restitution, and $100 to the Federal Crime Victims Fund.
LaPointe was indicted by a federal grand jury on February 13, 2013 and pled guilty to the charge on April 8, 2013.
The conviction stems from incidents that took place between August 1, 2009, and December 31, 2010, when LaPointe took money and property from the St. Francis Volunteer Fire Department to which he was not entitled.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
LaPointe was remanded to the custody of the U.S. Marshals Service.
Midtown Neurology Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Midtown Neurology, P.C. to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
An investigation was initiated by a complaint filed with the United States alleging that on at least three occasions Midtown Neurology failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainant (“V.M.”) is deaf and uses American Sign Language as her primary means of communication. On three separate visits to Midtown Neurology, V.M. alleged Midtown Neurology failed to provide a qualified sign language interpreter when necessary to ensure effective communication. During one of the visits to Midtown Neurology, V.M. alleged she underwent an elective medical procedure which was very painful. Because V.M. did not have effective communication before and during this visit, she was scared and did not understand what was happening. According to V.M., she cried, yelled, and tried to ask the doctor to stop the procedure. Because the doctor did not understand her request, the doctor continued the procedure despite V.M’s request. Midtown Neurology denied these allegations but agreed to cooperate with the United States Attorney’s Office to resolve the complaint.
“Every person should have the ability to fully participate in their own health care decisions as well as the decisions that impact their loved ones,” said United States Attorney Sally Quillian Yates. “Our office will continue to devote resources to eradicate barriers to health care for persons with disabilities.”
“The Department of Justice takes these civil rights violations seriously,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. The U.S. Attorneys are key partners in stopping discrimination against individuals with disabilities in the critical area of health care and we are very pleased to be working with them.”Under the settlement agreement, Midtown Neurology agreed to ensure that it provides effective communication to patients who are deaf and hard of hearing in the future. In the future, at the time a person who is deaf or hard of hearing makes an appointment, Midtown Neurology will consult with the person who is deaf to determine which aids and services are appropriate. Among other things, Midtown Neurology agreed to hire an outside group to conduct mandatory ADA training for all its employees and to provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement. Midtown Neurology also agreed to pay $20,000 to the complainant and a civil penalty in the amount of $2,000 to the United States.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf and hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.Assistant United States Attorney Aileen Bell Hughes is representing the United States in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Midtown Neurology Settlement Agreement
Mexican Citizen Living in Emporia Indicted on Document Fraud ChargesRead the Press Release
TOPEKA, KAN. – A Mexican citizen who has been living in Emporia, Kan., has been indicted on charges of document fraud, U.S. Attorney Barry Grissom said today.
Olegaria Cruz-Juarez, 39, a citizen of Mexico, is charged with one count of unlawful possession of false identification documents and one count of aggravated identity theft.
She and her husband, Sergio Tapia-Martinez, have been under investigation as suspected distributors of identification documents to unauthorized workers in central Kansas, Grissom said. Tapia-Martinez was charged in a separate case with unlawfully re-entering the United States after being convicted of an aggravated felony and deported.
A criminal complaint filed in the case against Cruz-Juarez alleges that Kansas Department of Revenue agents arrested her for driver’s license fraud during a criminal investigation that revealed she had renewed her Kansas driver’s license claiming to be lawfully present in the United States when she was not. They served a search warrant at her home in Emporia, where they found another person’s Social Security card between the pages of a Bible in her bedroom. They also found a small notebook containing the names, dates of birth and Social Security number for 13 different identities. Agents ran the numbers against records maintained by the Social Security Administration and the Kansas Department of Revenue. Eight of the identities were used in the state of Kansas to obtain a driver’s license or identification card.
An affidavit filed in the case states that agents developed evidence that Cruz had previously purchased documents belonging to another person in order to obtain an identification card and secure employment. She needed to purchase documents that employers would accept. Agents also developed evidence that she had helped relatives and others do the same thing in the past. Immigration records indicate that Cruz is a Mexican national who was denied permanent resident status in Sept. 30, 2004, and is in the United States unlawfully.
If convicted, she faces a maximum penalty of 15 years in federal prison and a fine up to $250,000 on the document charge, and a mandatory two years to run consecutively to the underlying sentence and a fine up to $250,000 on the aggravated identity theft count. Immigration and Customs Enforcement, the Kansas Department of Revenue - Office of Special Investigations, the Emporia Police Department, the Lyon County Sheriff’s Office, the Social Security Administration - OIG and the Lyon County Attorney’s Office investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
OTHER INDICTMENTS
Joseph S. Buschbom, 30, Topeka, Kan., is charged with unlawful possession of a firearm after felony convictions. The crime is alleged to have occurred June 12, 2013, in Shawnee County, Kan.If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Gabriel Chavez, 23, Dallas, Texas, is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred May 31, 2013, in Ellsworth County, Kan.
If convicted, he faces a penalty of not less than 10 years and not more than life and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Omar Gonzalez-Nunez, 25, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being convicted of a felony and deported. He was found June 12, 2013, in Geary County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Shawn Rene Pigorsch, 43, Abilene, Kan., is charged with possession with intent to distribute methamphetamine. The crime is alleged to have occurred Nov. 28, 2012, in Dickinson County, Kan.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Dickinson County Sheriff’s Office investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Kathy Rivera, 46, Ft. Riley, Kan., is charged with unlawful possession of a dangerous weapon with intent to do bodily harm. The crime is alleged to have occurred Jan. 15, 2013, on the Fort Riley Military Installation.
If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Ft. Riley Police investigated. Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Christine Kenney are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Media AdvisoryRead the Press Release
There will be a press conference held on Friday, June 28, 2013, at 1:00 p.m., at the Cedar Rapids Police Department, 505 First Street SW, in Cedar Rapids. United States Attorney Sean Berry and other law enforcement officials, including those from the Federal Bureau of Investigation and the Cedar Rapids Police Department, will discuss the Cedar Rapids Safe Streets Task Force and will announce several new arrests and indictments in federal firearms cases.
The Cedar Rapids Safe Streets Task Force is a federal, state, and local law enforcement initiative aimed at addressing gang-related and violent crime in the Cedar Rapids area.
Press releases and interview opportunities will be available.
McLaughlin Man Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man convicted of Assault With a Dangerous Weapon and Domestic Assault by a Habitual Offender Resulting in Substantial Bodily Injury was sentenced on June 24, 2013 by U.S. District Judge Roberto A. Lange.
Benedict Iron Thunder, Jr. age 36, was sentenced to 38 months imprisonment, 2 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Iron Thunder was indicted by a federal grand jury in January of 2013, and pled guilty on March 15, 2013.
The conviction stems from an incident on June 18, 2010. On that date, an officer with the Standing Rock Police Department was dispatched to McLaughlin in response to a call of a female being assaulted. Upon arrival, the officer made contact with the victim who stated that she was struck numerous times in the head and kicked repeatedly in the back. As a result of the attack, the victim received a large lump on the top of her head, a swollen and bloody nose, multiple injuries to the mouth, and various bruises on her body. Also visible in the pictures were the bloody footprints of her attacker on her back.
The Defendant has been found guilty on two or more separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. Both of the previous assaults involved this same victim.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case was prosecuted by Assistant U.S. Attorney Troy Morley.
Iron Thunder was remanded to the custody of the U.S. Marshal Service to begin serving his sentence.
McLaughlin Man Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man convicted of Assault With a Dangerous Weapon and Domestic Assault by a Habitual Offender Resulting in Substantial Bodily Injury was sentenced on June 24, 2013 by U.S. District Judge Roberto A. Lange.
Benedict Iron Thunder, Jr. age 36, was sentenced to 38 months imprisonment, 2 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Iron Thunder was indicted by a federal grand jury in January of 2013, and pled guilty on March 15, 2013.
The conviction stems from an incident on June 18, 2010. On that date, an officer with the Standing Rock Police Department was dispatched to McLaughlin in response to a call of a female being assaulted. Upon arrival, the officer made contact with the victim who stated that she was struck numerous times in the head and kicked repeatedly in the back. As a result of the attack, the victim received a large lump on the top of her head, a swollen and bloody nose, multiple injuries to the mouth, and various bruises on her body. Also visible in the pictures were the bloody footprints of her attacker on her back.
The Defendant has been found guilty on two or more separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner. Both of the previous assaults involved this same victim.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case was prosecuted by Assistant U.S. Attorney Troy Morley.
Iron Thunder was remanded to the custody of the U.S. Marshal Service to begin serving his sentence.
McAllen Man Gets More Than 15 Years in Prison for Possessing MethamphetamineRead the Press Release
CORPUS CHRISTI, Texas – Rolando Reyna, 28, of McAllen, has been ordered to prison for nearly 16 years following his conviction for possession with intent to distribute approximately 29.76 kilograms of methamphetamine, United States Attorney Kenneth Magidson announced today. Reyna pleaded guilty April 10, 2013.
Today, U.S. District Judge Hayden Head, who accepted the guilty plea, handed Reyna a total sentence of 188 months. He was further ordered to serve a term of five years of supervised release following completion of the prison term.
Reyna was arrested on Nov. 18, 2012, at the United States Border Patrol checkpoint in Sarita after agents found 44 bundles of methamphetamine hidden in a concealed compartment in his pick-up truck.
At the plea hearing in April, Reyna admitted that he drove the methamphetamine into the United States from Guadalajara, Mexico, and that he intended to transport it to Atlanta, Ga. He also admitted he expected to be paid $10,000 upon successful delivery. DEA agents believe this is the largest single seizure of methamphetamine within the Corpus Christi division in the last five years.
Reyna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being investigated by the DEA and prosecuted by Assistant United States Attorney Sam Brown IV.Marshalltown Man Pleads Guilty to Mail Fraud ChargeRead the Press Release
DES MOINES, IA – On June 25, 2013, Michael James Allison, age 48, of Marshalltown, Iowa, pled guilty to mail fraud, in connection with a scheme to defraud his employer through the mailing of fraudulent expense reports for reimbursement announced United States Attorney Nicholas A. Klinefeldt.
According to the written plea agreement, Michael Allison, while in his position as Chief Financial Officer and Director of Finance of a regional subsidiary of Airgas, Incorporated, with headquarters in Chicago, IL, mailed falsified expense reports to the region’s accounting office. Allison categorized personal expenses as business expenses and fabricated expenses on the reports. In one instance, Allison claimed he was entitled to approximately $9,000 in reimbursements for Ryder Cup golf tickets and expenses, when the tickets were for his personal use. From 2003 – 2012, Allison obtained at least $300,000 as a result of his scheme.
Michael Allison will be sentenced on October 9, 2013, before the Honorable John A. Jarvey.
Mail fraud is punishable by a term of imprisonment of up to 20 years and a fine of up to $250,000.
This case was investigated by the Federal Bureau of Investigation, following a referral from Airgas, Inc., and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Many Couple Sentenced for Counterfeiting $20 BillsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Larry Maurice Malmay, 36, of Zwolle, La., and Kellie Amanda Craig, 29, of Many, La., were sentenced by U.S. District Judge Tom Stagg for making counterfeit Federal Reserve notes. Malmay received 27 months in prison followed by three years of supervised release. Craig received five years of probation. The equipment and items used to produce the counterfeit money were ordered forfeited to the government.
According to evidence presented at the guilty pleas, a Sabine Parish Sheriff’s Deputy came to Craig’s home June 12, 2012 in response to a domestic complaint. While talking to Craig, it was learned that there were counterfeit $20 bills in the home. Craig told authorities that Malmay and another person had printed most of the fake Federal Reserve notes. A search of the home revealed cut and uncut counterfeit bills, a paper cutter, cotton paper and a printer. Malmay later told authorities he had planned to print $16,500 worth of fake money to pay a drug dealer.The U.S. Secret Service-Shreveport Office and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Manhattan U.S. Attorney Announces Extradition of Felix Trujillo-Manrique from Colombia on Heroin Trafficking ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian R. Crowell, Special Agent-in-Charge of the New York Field Office of the U.S. Drug Enforcement Administration (“DEA”), today announced that FELIX TRUJILLO-MANRIQUE was extradited yesterday from Colombia for allegedly conspiring to import heroin from Colombia into the U.S. TRUJILLO-MANRIQUE, a citizen of Colombia, was arrested by Colombian National Police in October 2010, at the request of the U.S. He will be presented and arraigned today in federal court before U.S. Magistrate Judge Andrew J. Peck. U.S. District Court Judge J. Paul Oetken is assigned to the case.
As alleged in the Indictment unsealed yesterday in Manhattan federal court and other court documents:
TRUJILLO-MANRIQUE was a leader of an international conspiracy to traffic kilogram quantities of heroin from Colombia through Ecuador and ultimately into the U.S. TRUJILLO-MANRIQUE, who was based in Colombia, supplied couriers in Ecuador with heroin which they then smuggled into the U.S. via international flights, including flights into John F. Kennedy International Airport in New York City. In connection with the investigation into TRUJILLO-MANRIQUE, more than ten kilograms of heroin were seized in South America and New York City.
The Indictment charges TRUJILLO-MANRIQUE, 42, with one count of conspiracy to distribute heroin and one count of conspiracy to import heroin into the United States. If convicted, TRUJILLO-MANRIQUE faces a maximum sentence of life in prison.
Mr. Bharara praised the outstanding efforts of the DEA’s New York Drug Enforcement Task Force Group T-23, which conducted the investigation along with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations New York Narcotics Group II. The DEA’s New York Drug Enforcement Task Force is comprised of members of the DEA, the New York City Police Department, and the New York State Police. Mr. Bharara also thanked U.S. Customs and Border Protection, the New Jersey Field Division of the Federal Bureau of Investigation, the DEA Bogota Country Office, the DEA Guayaquil Resident Office, the DEA Baltimore District Office, the U.S. Attorney’s Office for the Eastern District of New York, the Colombian National Police, the U.S. Department of Justice Office of International Affairs, the U.S. Department of State, and Interpol for their assistance in this matter.
The case is being handled by the Narcotics Unit. Assistant United States Attorney Robert L. Boone is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Felix Trujillo-Manrique Indictment
Man Sentenced for Attempting to Smuggle Roosters into Mexico for Cockfighting; Mutilated Birds Had to Be EuthanizedRead the Press Release
A man who attempted to smuggle more than two dozen roosters and hens into Mexico for the purposes of cockfighting was sentenced today by U.S. District Judge William Q. Hayes to time served, which amounted to 65 days in custody.
Marco Marquez-Avila, 41, of Tijuana, was returned to the United States on April 22, 2013, by Mexican authorities who discovered that he had 28 adult roosters and hens that were covered by floor mats in his Toyota Camry.
Each bird was individually encased in a nylon sock with the head covered and the feet bound with a velcro strap. Additionally, the birds had had their combs and wattles removed, a common mutilation for birds intended for cockfighting. All birds required euthanasia.
While cockfighting is legal in Mexico, it is not legal in the state of California. Federal law in the U.S. prohibits the transportation of animals that are to be used in an animal fighting venture. Additionally, federal regulations require that poultry exported to Mexico be eligible to be freely transported and marketed in the United States, which cockfighting birds are not.
This is the fifth case of cockfighting birds being smuggled southbound to Mexico this year, and the second time someone has been turned around by Mexican authorities and returned to Customs and Border Protection officers in as many months because adult poultry are not allowed to be exported to Mexico without prior inspection and certification.
DEFENDANT Case Number: 13cr01845 MARCO MARQUEZ-AVILA SUMMARY OF CHARGESUnlawful transportation of animals used in animal fighting venture – Title 7, United States Code, 2156
AGENCIES
Maximum penalties: 5 years imprisonment and $250,000 fineU.S. Department of Agriculture, Office of Inspector General
U.S. Customs and Border ProtectionMadden Sentenced to PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that ROY E. MADDEN, age 46, of Denham Springs, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve four (4) months in federal prison. MADDEN was also ordered to serve a two-year term of supervised release following his release from imprisonment.
MADDEN previously pled guilty to forging and counterfeiting the seal of a department and agency of the United States, namely, the United States Army Corps of Engineers, in violation of Title 18, United States Code, Section 506. MADDEN admitted that, while employed as an environmental consultant and having been engaged by a client to determine whether a particular parcel of property contained wetlands, MADDEN fraudulently altered and manipulated a Corps of Engineers letter so that it falsely indicated that the property did not contain wetlands. To make the document appear genuine, MADDEN included the USACE seal and the forged signature of a Corps official. MADDEN then provided the fraudulent letter to his client, knowing that the property contained wetlands. Relying on the fraudulent letter, the defendant’s client and another individual finalized a sale of the property. When MADDEN’s fraud was discovered, the transaction had to be rescinded.
This investigation was conducted by the Criminal Investigation Division of the Environmental Protection Agency and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Alan A. Stevens.
Lower Brule Man Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on June 25, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Marty LaRoche, age 20, was sentenced to 1 year probation and a $25 special assessment to the Federal Crime Victims Fund. LaRoche is to undergo substance abuse treatment and anger management treatment.
LaRoche was indicted for the above charge by a federal grand jury on March 13, 2013, and pled guilty to an Information on April 25, 2013.
The charge stems from an incident on February 8, 2013, wherein Marty LaRoche, and his sister Lauren LaRoche, did forcibly assault, resist, oppose, impede, intimidate, and interfere with an officer, constituting simple assault. During the incident, LaRoche actively tried to interfere and prevent the arrest of his sister. Lauren LaRoche previously pled guilty and was sentenced on May 15, 2013.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Local Tax Advisor Sentenced for Tax EvasionRead the Press Release
St. Louis, MO - FRANK L. "TIGER" ZERJAV, JR., Wildwood, MO, was sentenced to 18 months in prison on charges of tax evasion for 2001 through 2004. United States District Judge Catherine D. Perry concluded two days of hearings as she imposed the sentence today in federal court in St. Louis.
In December 2012, Zerjav plead guilty to four counts of federal income tax evasion relating to the joint income tax returns filed by him (and his wife) for the years 2001 through 2004. The government claimed that he attempted to evade some $183,000 in taxes by running over $850,000 in income through corporate entities and then deducting personal expenses on the tax returns filed by those corporations. In court documents submitted at the time of the guilty plea, there was a listing of expenses that were improperly taken as deductions for those years including: payments for a condominium at the Lake of the Ozarks; a 37-foot boat; two Seadoo water craft; a home entertainment system; payments on Zerjav's student loans; payments for the BMW vehicles driven by Zerjav and his wife and thousands of dollars in fast food and other restaurant expenses. Zerjav did not agree with the tax loss figure alleged by the Government and the two-day sentencing hearing was the result.
In court today, Judge Perry found that the corporations created by Zerjav were "conduits" to receive his income and she also found that the corporations served no legitimate business purpose other than to avoid taxes. She stated that Zerjav's use of the corporations made the scheme especially complex. The judge went on to find that the extensive deductions for personal expenditures were improper as well. She ordered Zerjav to pay restitution to the Internal Revenue Service in the amount of $181,000.
"In today's economic environment, it's more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe," said Sybil A Smith, IRS Criminal Investigation Special Agent in Charge. "Honest taxpayers deserve our vigilance in investigating and prosecuting those who evade the payment of their fair share of taxes."
According to court documents, during 2000-2007, Frank L. “Tiger” Zerjav, Jr., and his father, Frank L. Zerjav, Sr., who is a CPA, were the principals in two entities: Zerjav & Company, PC, a full service accounting firm that primarily prepared business and personal tax returns, and the Advisory Group USA, LC, which offered tax planning and asset protection strategies to clients. Tiger Zerjav managed the activities of the accountants working at the firm and advised existing clients. Through 2003 he also prepared returns and reviewed the returns prepared by firm accountants. Clients of the Advisory Group included many small business owners and self-employed individuals. They were typically advised to create S-corporations into which the income from their businesses would be funneled. Since the net income from an S-Corporation flows through to the owner for inclusion on the owner’s personal income tax return, there is an obvious incentive to maximize deductions on the S-corporation return. Tiger Zerjav used this strategy in preparing his tax returns for the years 2001 through 2004.
In March 2010, Tiger Zerjav and Frank Zerjav Sr., and the Advisory Group entities entered into an agreement with the United States which included the following stipulations: (1) the Advisory Group would cease doing business; (2) Tiger Zerjav would not be involved in tax preparation activities for a three-year period and (3) Zerjav & Company would cease using many of the tax strategies mentioned above.
Tiger Zerjav was released on his bond and will voluntarily surrender to the prison facility when designated.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney James E. Crowe, Jr., handled the case for the U.S. Attorney’s Office.
Liang Wang and Ke Xu Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on June 27, 2013, before U.S. District Judge Sam E. Haddon, LIANG WANG, a 25-year-old resident of San Gabriel, California, and KE XU, a 30-year-old resident of Monterey, California, were each sentenced to a term of:
Prison: 33 months
Special Assessment: $100
Restitution: $76,398
Supervised Release: 3 years
They were sentenced in connection with their guilty pleas to wire fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
WANG, XU, and others stole credit cards and credit card account information and then used the information from the stolen credit cards to create counterfeit means of identification. The counterfeit means of identifications were then presented to merchants in Montana wherein the defendants impersonated the true credit card account holders and thereby used the credit cards to purchase gift cards and other merchandise without authorization.
On July 28, 2012, WANG rented an automobile in Alhambra, California. WANG, XU, and others then drove from California to Montana to commit their fraud. Upon reaching Helena on July 29, 2012, WANG, XU, and their co-conspirators entered local merchants such as Home Depot, Albertsons stores, Macy's Department Store, Target, Walmart, Staples, and Office Depot to make purchases with the counterfeit credit cards. Most of the items purchased by WANG, XU, and their co-conspirators were gift cards. The gift cards varied in value ranging from approximately $200, $500, $1,000, $1,500, to $1,800 in value.
WANG, XU, and their co-conspirators charged merchandise and goods on the victims' credit accounts until the account reached its credit limit. They then discarded the counterfeit credit cards. Some of these discarded cards were later found in trash.
After making all their purchases in Helena, WANG, XU, and their co-conspirators traveled that same day to Butte and/or Bozeman where they continued their fraudulent scheme. Evidence would have shown that the total value of the goods and merchandise purchased by members of the conspiracy using the counterfeit credit cards on July 29th totaled over $76,000.
In total, members of the conspiracy possessed and used more than 50 different means of identification to carry out their fraud scheme.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Lakeland Man Sentenced to Fifteen Years in Prison for Selling Firearms to Law EnforcementRead the Press Release
Tampa, FL - U.S. District Judge Richard A. Lazzara today sentenced Jacques D. Randolph (31, Lakeland) to fifteen years in federal prison for being a felon in possession of a firearm. Randolph pleaded guilty before Judge Richard A. Lazzara on April 4, 2013.
According to court documents, Randolph met with undercover law enforcement officers on multiple dates for the purpose of selling firearms. Over a three-month period, Randolph sold sixteen firearms to undercover officers. Randolph has been a convicted felon since 1997. On the dates that he sold the firearms to law enforcement, Randolph was on felony probation.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Justice Department Settles Race Discrimination Lawsuit Against Owners and Managers of Mobile Home Parks in Alabama and GeorgiaRead the Press Release
The Justice Department announced today that Lawrence Properties Inc., Lawrence at Lakewood LLC, Michael Lawrence, and Williams Bounds have agreed to pay $35,000 to settle a lawsuit involving violations of the Fair Housing Act. The lawsuit alleged that the defendants denied housing to an African American woman and her family because of race. The lawsuit also alleged that the owner and the regional manager of Lawrence Properties communicated to employees a company policy of not renting to African Americans.
Under the consent order, which was approved today by the U.S. District Court for the Middle District of Alabama, the defendants will pay $25,000 to the family who was denied housing and $10,000 to the United States as a civil penalty. In addition, the order prohibits the defendants from discriminating in the future against prospective tenants based on race, mandates the implementation of a non-discriminatory rental policy, and requires the defendants and their employees to receive training on the Fair Housing Act.
“No family should be denied housing because of their race,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “We are committed to enforcing the Fair Housing Act to ensure that everyone has the freedom to choose where they live.”
“Housing is a need that everyone shares,” stated George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. “To deny someone their choice of housing based on discrimination should not and will not be tolerated.”
The lawsuit, filed in September 2012, arose as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department. The lawsuit alleged that the defendants violated the Fair Housing Act by refusing to rent a lot at a mobile home park to the HUD complainant and her family due to a discriminatory policy against renting to African Americans. The suit also alleged that, as a result of the discriminatory policy, the defendants engaged in a pattern or practice of discrimination or denied rights protected by the Fair Housing Act to a group of persons.
“No residential community can maintain an exclusion based on race,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Justice Department are committed to taking action anytime a family is subjected to unlawful discrimination.”
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, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777.Justice Department Reaches Settlement with National Retailer to Resolve Immigration-Related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it has reached an agreement with Macy’s Retail Holdings and other Macy’s entities (Macy’s) resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). Macy’s employs approximately 180,000 employees in the United States.
The investigation was initiated based on several calls to the Justice Department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) worker hotline regarding potential immigration-related unfair employment practices. Based on the investigation, the department determined that Macy’s engaged in unfair documentary practices against work-authorized immigrant employees during the employment eligibility reverification process and that some employees suffered economic harm through lost work or seniority as a result. The INA’s anti-discrimination provision prohibits employers from treating workers differently in the employment eligibility verification or reverification process by demanding more or different documents, or by limiting the worker’s choice of documents, based on an individual’s immigration status or national origin.
According to the settlement agreement, Macy’s agrees to revise its employment eligibility reverification policies and procedures and to provide training to its human resources personnel across the country on the INA’s anti-discrimination provision. Macy’s also agrees to pay $175,000 in civil penalties to the United States, and to create a $100,000 back pay fund to compensate any individuals who suffered lost wages or loss of seniority as a result of its practices. Under the agreement, Macy’s employment eligibility verification practices will be subject to monitoring by the department and reporting requirements for a period of two years.
“Employers must ensure that they follow correct procedures during the reverification of employment authorization of non-U.S. citizens,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “Given the size of their workforce, national employers are particularly encouraged to evaluate their policies and practices and make use of the division’s no-cost technical assistance to ensure compliance with the INA’s anti-discrimination provision.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by Liza Zamd and Ronald Lee, OSC trial attorneys. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc.Justice Department Files Lawsuit Against the Reading, Pa. Parking Authority for National Origin Discrimination and RetaliationRead the Press Release
The Justice Department announced today the filing of a lawsuit against the Reading Parking Authority in the city of Reading, Pa., alleging that the Reading Parking Authority discriminated against former employee Henry Perez, as well as other current and former employees, in violation of Title VII of the Civil Rights Act of 1964 by subjecting them to harassment based upon their national origin. According to the complaint, after Perez complained about the harassment, he was subjected to retaliation, also in violation of Title VII. Title VII is a federal statute that prohibits discrimination on the basis of race, color, national origin, sex and religion and prohibits retaliation against an employee who opposes an unlawful employment practice or because the employee has made a charge or participated in an investigation, proceeding or hearing under the Act.
The suit, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that these employees were subjected to pervasive ethnic slurs, offensive comments and threats of physical harm by their co-workers and supervisors beginning as early as 2007 and continuing over a period of years. The complaint further alleges that, despite timely complaints about the harassment by the workers to their supervisors, the Reading Parking Authority failed to take meaningful steps to stop the harassment, prevent further harassment or discipline the harassers but, instead, disciplined Perez because his complaints of discrimination were offensive to his co-workers. Through this lawsuit, the United States seeks declarative and injunctive relief requiring the Reading Parking Authority to develop and implement policies that prevent its employees from being subjected to harassment based upon national origin and retaliation, as well as monetary damages for the victims of the employer’s discriminatory actions.
“No one should have to endure unlawful harassment due to their national origin or retaliation for speaking out against such discrimination,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “Through our partnership with the EEOC, the Civil Rights Division continues to vigorously enforce the nation’s laws barring discrimination in employment and to work to realize the promise of equal employment opportunity.”
Perez filed a charge of discrimination and retaliation with the Equal Employment Opportunity Commission (EEOC), whose Philadelphia District Office investigated the matter, determined there was reasonable cause to believe that discrimination and retaliation had occurred, and referred the matter to the Department of Justice.
“The EEOC is committed to ensuring that employees are not subjected to unlawful discrimination and harassment based on their national origin. Employers must stop cruel and humiliating victimization of vulnerable employees when it is brought to their attention, instead of taking adverse action against them," said EEOC District Director Spencer H. Lewis Jr., of the EEOC’s Philadelphia District Office. “Our close collaboration with the Department of Justice is vital to ensuring that workplaces are free from bias.”
The continued enforcement of Title VII has been a priority of the Justice Department’s Civil Rights Division. Additional information about the work of Civil Rights Division is available on its website at www.usdoj.gov/crt/emp/index.htmlInformational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 27, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
TYE DUSTIN ALBRIGHT, a 41-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine the intent to distribute methamphetamine, and distribution of methamphetamine. He is currently detained. If convicted of these charges, ALBRIGHT faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Billings Drug Task Force.
The defendant pled not guilty to the charges.
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.
Idaho Falls Apartment Owner Sentenced for Release of Asbestos Air PollutantRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced that Tyler Harwood, 30, of Idaho Falls, was sentenced yesterday to one year probation for violating the Clean Air Act by negligently releasing a hazardous air pollutant. U.S. Magistrate Judge Ronald E. Bush also fined Harwood $250, and ordered him to take a class for property owners on following EPA guidelines. Harwood pleaded guilty on April 25, 2013.
According to the court documents, Harwood arranged for and caused a boiler wrapped in asbestos material to be removed from the basement of his “D Street Apartments.” During the dismantling and removal of the boiler, residents of the apartment building were exposed to powdered air-borne asbestos dust released into the ambient air of the apartment building.
“Exposure to asbestos can cause cancer and serious respiratory illness,” said Tyler Amon, Special Agent-in-Charge of EPA's Office of Criminal Enforcement. “Cutting corners when it comes to handling asbestos is not just a health hazard, but in this case was a criminal act that put people at risk.”
The case was investigated by agents of the U.S. Environmental Protection Agency.
Hundreds of Youths Attend Third Annual Anti-Violence Summit Led by U.S. Attorney’s Office and Community Partners- U.S. Attorney Machen: “Your Future Is Your Responsibility”-Read the Press Release
WASHINGTON – More than 500 youths gathered at Friendship Collegiate Academy in Northeast Washington today for a summit sponsored by the U.S. Attorney’s Office for the District of Columbia that featured presentations about issues facing young people here and nationwide, including bullying, sexual assaults, street gangs, and drug abuse.
U.S. Attorney Ronald C. Machen Jr. and other speakers addressed the summit’s theme of “Breaking the Silence on Youth Violence.” The free event also included workshops for older and younger youth, a dance-off, and entertainment from a variety of performers, including nationally known recording artist Marcus Canty.
“You must protect your future at all times,” U.S. Attorney Machen said in his opening remarks. “Your future is your responsibility and no one else’s.”
U.S. Attorney Machen talked about the importance of making good decisions, warning “Never let somebody without a future take yours away.” He urged the youths, ages 8 through 18, to stay out of bad situations, act with integrity, and work hard to achieve long-term goals.
“You have to ask yourself, ‘are you willing to stand up for what you believe in? You can be a voice of positive change,” U.S. Attorney Machen declared.
This was the office’s third annual Youth Summit, which assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. Each of the previous summits also drew hundreds of students. For today’s event, youths began arriving in the morning at Friendship Collegiate Academy, 4095 Minnesota Avenue NE, and remained well into the afternoon.
This year’s summit was organized with help from the Project Safe Neighborhoods Task Force, the East River Family Strengthening Collaborative, and law enforcement and community partners. The goal of the Youth Summit is to reach out to area youth on current public safety topics in an informative and inspiring way.
Several collaborative partners, including the Columbia Heights Shaw/Family Collaborative, the District of Columbia Department of Health, the D.C. Rape Crisis Center, Street Wize Foundation, and the National Center for Missing and Exploited Children, joined together to present the day’s programs. Assistance was provided by the Metropolitan Police Department (MPD) and other District of Columbia government agencies.
The youth summit is one in a series of community events sponsored by the U.S. Attorney’s Office for the District of Columbia, including town hall meetings, crime prevention presentations, and various outreach programs for people of all ages.
13-231Hearing Scheduled for Professional Hunter Accused of Violating Federal ProbationRead the Press Release
KANSAS CITY, KAN. – A professional hunter from Tennessee is set for a hearing in federal court today on a government motion accusing him of hunting in violation of his probation, U.S. Barry Grissom said today.
William “Spook” Spann, 50, Dickinson, Tenn, was sentenced in February to three years on supervised release for a misdemeanor Lacey Act violation in Kansas. He pleaded guilty to transporting across state lines a white-tailed deer that was unlawfully taken in Stafford County, Kan. As part of the probation he was prohibited from hunting for six months, admonished not to commit any further federal crimes and ordered to pay a $10,000 fine and $10,000 restitution.
On June 10, the federal probation office in Kansas filed a petition alleging Spann violated his probation by hunting in Tennessee and violating a Tennessee law against baiting wildlife. In court documents, Spann is alleged to have been caught on surveillance cameras hunting in Tennessee. Agents also monitored his use of social media. They found pictures on his Facebook page of Spann dressed in camouflage and posing with other hunters next to harvested turkeys. Although Spann is not accused of shooting a turkey, according to court documents he hunted by calling turkeys, carrying hunting equipment, carrying dead turkeys and placing feed as bait.
The government is proposing Spann have his probation revoked and he be ordered to serve 90 days in jail.
The U.S. Fish and Wildlife Services and Tennessee Wildlife Resource Agency investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Haitian Native Admits to Running Ponzi SchemeRead the Press Release
PHILADELPHIA - Constant Damas, 45, of Philadelphia, Pennsylvania, pleaded guilty today to two counts of wire fraud in connection with a “Ponzi” scheme that defrauded more than 20 investors out of more than $1 million, announced United States Attorney Zane David Memeger. A sentencing hearing is scheduled for September 30, 2013.
Between 2007 through the end of 2012, Damas, who was an account manager at Coca-Cola Company, misrepresented to various individuals, including family members and friends in his Haitian community, that he was an investment manager at Coca-Cola. He told his victims that, through this position, he could invest their money in Coca-Cola’s investment opportunities. In fact, Damas did not hold this position and no such opportunities existed. To entice his victims, Damas often made the following false representations to them: he would collect a sum of money from the victims as their “principle” investment; the victims would receive an interest payment of a certain amount every month; and they could receive their principle payment upon request. Damas, however, did not return the full “principle” investment amount back to his victims, and many of the victims did not receive any of their funds back or any interest payments. Upon his arrest in February 2013, Damas admitted to federal agents that this was a “scam business.”
Damas faces a maximum possible sentence of 40 years in prison, a three-year period of supervised release, a $500,000 fine, a $200 special assessment, and the imposition of full restitution.
The case was investigated by the Federal Bureau of Investigation and Immigration and Customs Enforcement Homeland Securities Investigations. It is being prosecuted by Assistant United States Attorney Patrick J. Murray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Gwynn Oak Man Pleads Guilty to Fraudulently Obtaining Social Security and Veterans BenefitsRead the Press Release
Baltimore, Maryland – Dwight McCloud Newman, age 63, of Gwynn Oak, Maryland pleaded guilty today to Title II program fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael McGill of the Social Security Administration (SSA) - Office of Inspector General, Philadelphia Field Division; and Inspector General Kim R. Lampkins, Special Agent in Charge, Mid Atlantic Field Office, Washington, DC of the U.S. Department of Veterans Affairs (VA).
According to his plea agreement, Newman’s father received Social Security retirement and Veteran disability benefits at the time of his death on January 7, 2007. The benefits were directly deposited into a checking account in which Newman and his father were joint account holders. Newman failed to notify SSA or VA of his father’s death. As a result, from January 7, 2007 to November 3, 2011, SSA deposited $62,110 into the checking account, and VA deposited $16,995 from January 7, 2007 to November 30, 2012. Newman withdrew or spent substantially all of these benefits for his own benefit.
Newman faces a maximum sentence of five years in prison and a $250,000 fine for Title II program fraud. Newman agrees to pay restitution of $79,105, including $7,000 to be paid at the time of sentencing. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for October 15, 2013 at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the SSA–OIG and VA-OIG for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Paul K. Nitze of the SSA, who is prosecuting the case.
Greeneville Physician and Wife Indicted for Misbranded Drugs and Health Care FraudRead the Press Release
Clinic obtained unapproved foreign drugs for three years
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on June 11, 2013, against Dr. Anindya Kumar Sen, 64, his wife, Patricia Posey Sen, 65, and their business, East Tennessee Cancer & Blood Center, P.C. (ETCBC), all of Greeneville, Tenn., for introduction of misbranded drugs with intent to defraud and mislead, importing drugs contrary to law, conspiracy to commit those offenses, and conspiracy to commit health care fraud.
Dr. and Mrs. Sen appeared in court on June 27, 2013, before U.S. Magistrate Judge Dennis H. Inman and pleaded not guilty. They were released pending trial, which has been set for September 4, 2013 in U.S. District Court, in Greeneville.
According to the indictment on file with the U.S. District Court, Sen was the owner and managing physician of ETCBC, a cancer clinic with locations in Greeneville and Johnson City; Posey was practice manager for the clinic. Beginning in April 2009, they began obtaining foreign drugs not approved for use by the Food & Drug Administration (FDA) in the United States. The drugs were “misbranded,” as defined in the Food, Drug and Cosmetic Act, because, among other things, the drugs had not been manufactured at facilities registered with the FDA and the drugs’ packaging contained foreign languages. The Sens purchased over $3 million in unapproved drugs which were administered to patients at ETCBC. Claims were then submitted to Medicare, TennCare, and other health care programs falsely representing that FDA-approved drugs had been administered.
If convicted, the Sens face terms of up to 20 years in prison on the health care charge and each of the unlawful importation charges, along with fines of up to $250,000 per count and up to three years of supervised release.
This indictment is the result of an investigation by the Food & Drug Administration Office of Criminal Investigation, Federal Bureau of Investigation, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Neil Smith and Special Assistant U.S. Attorney Ben Cunningham will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Fourth Adams Produce Official Charged in Scheme to Defraud U.S. GovernmentRead the Press Release
BIRMINGHAM – The U.S. Attorney's Office has charged a fourth official of Adams Produce Company in a scheme to defraud the federal government of $481,000, announced U.S. Attorney Joyce White Vance FBI Special Agent in Charge Richard D. Schwein Jr. and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.Prosecutors this week filed an information in U.S. District Court charging STANLEY JOEL BUTLER II, a former purchasing agent for Adams, with conspiracy to defraud the United States. In an agreement with the government, also filed this week, Butler agrees to plead guilty to the conspiracy charge and, along with co-conspirators in the case, to pay $481,000 in restitution to the government.
"In an attempt to address Adams Produce's deteriorating financial situation, officers and employees of the company resorted to fraud. That fraud harmed Adams employees, customers and U.S. taxpayers," Vance said. "We are holding the perpetrators accountable for the crimes that were committed."
Three other officials of Adams Produce – Scott David Grinstead, David Andrew Kirkland and Christopher Alan Pfahl – have been charged and pleaded guilty in connection with fraud at the Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years. Adams Produce was founded as a family-owned business more than 100 years ago. The family sold the company to executives and a private equity firm in 2010. The company shut down and filed for bankruptcy in 2012.
Butler, 42, of Trussville, worked at the corporate office in Birmingham and reported to Kirkland, the company's director of purchasing. Butler's duties included gathering produce pricing information from other Adams employees, including Kirkland, Phafl and the general manager of the company's Pensacola, Fla., distribution center, according to Butler's plea agreement. Butler also prepared a weekly pricing catalog that was submitted to the government.
The federal government, through the Defense Supply Center Philadelphia, was one of Adams' customers. The supply center contracted with Adams Produce to provide fresh fruits and vegetables to military bases, public schools systems, junior colleges and universities. Adams Produce entered into contracts with the government worth millions of dollars, according to court records.
Butler, along with Pfahl and Kirkland, engaged in a scheme to create false records that reflected a higher purchasing cost for fruits and vegetables from a national distributor than Adams Produce actually paid. The inflated costs were then presented to the government, which had agreed to pay a certain amount over Adams cost for produce.
According to Butler's, and other plea agreements in the case, Adams bought from TLC, one of the largest distributors of fresh produce in the United States, with offices located across the country. Beginning in about August 2011, Adams employees arranged and conduced transactions with TLC in Marietta, Ga., designed to create purchase orders and invoices that reflected inflated costs to Adams Produce.
Butler received the false purchase orders and invoices and, knowing they were created to represent Adams paid more than it actually did for the produce, used them to create the weekly pricing catalogs that he presented to the government Defense Supply Center, according to his plea agreement.
Between Aug. 4, 2011, and Dec. 7, 2011, Adams employees and officers conspired to conduct at least 82 transactions with TLC designed to create false invoices and purchase orders, according to the plea agreement. Through those false invoices submitted to the Defense Supply Center, Adams Produce fraudulently received about $481,000 from the government.
The conspiracy charge Butler faces carries a maximum penalty of five years in prison and a $250,000 fine.
The FBI and the IRS investigated the cases, which Assistant U.S. Attorney George A. Martin Jr. is prosecuting.
Four Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
Four Northern California real estate investors have agreed to plead guilty for their role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Wesley Barta of Oakland, Irma Galvez of Pacheco, Calif., Stan Kahan of Berkeley, Calif., and Joseph Vesce of San Francisco.
To date, as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California, 35 individuals, including Barta, Galvez, Kahan and Vesce, have agreed to plead or have pleaded guilty.
“These conspirators manipulated and suppressed the competitive process through their fraudulent and collusive conduct to the detriment of lenders and distressed homeowners,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division will continue to pursue those responsible for these illegal activities.”
According to court documents, for various lengths of time between June 2008 and January 2011, Barta and Vesce conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa County, Calif. Barta and Vesce were also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Contra Costa County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
The same charges were brought against Galvez and Kahan for their involvement in similar conduct in Alameda County, Calif., from November 2008 through May 2010.
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Alameda and Contra Costa County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The continued success of our investigation into the bid rigging conspiracies at Northern California public foreclosure auctions is evident in today’s four guilty pleas,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI will remain focused with the Antitrust Division in holding those accountable for such illegal acts.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400.
Today's charges were brought in connection with the President'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 including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Four Individuals Sentenced for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, four individuals were sentenced for their roles in a large, multi-state, identity theft ring. United States District Court Judge Paul A. Magnuson sentenced Donyea Terrell Collins, age 27, of Richfield, to 55 months in prison; Derek Charles Estelle, age 25, of Stillwater, to 30 months in prison; and Kelly Jenelle Scott, age 44, no known address, to 46 months in prison. All three had earlier pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Judge Magnuson also sentenced Lee Vang, age 32, of St. Paul, to 30 months in prison on one count of conspiracy to commit money laundering and one count of aggravated identity theft. Vang had also previously pled guilty to these charges.
These individuals, along with over 100 others, were involved in a conspiracy from 2006 through December of 2011 to defraud banks, bank customers, and businesses. The co-conspirators used victim information to create counterfeit checks and false identification documents to conduct fraudulent transactions at retail establishments, where expensive merchandise was purchased and returned for cash, and at banks, where the conspirators posed as customers and withdrew money from victims’ bank accounts. The members of the conspiracy conducted these fraudulent transactions throughout Minnesota and in at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole victim information from their places of employment, from individuals employed at area banks, from those who stole the information from the mail, during vehicle break-ins, and business burglaries, among other sources.
Following sentencing, Patrick Henry, the head of the Minnesota Financial Crimes Task Force, said, “This investigation came together as a result of the partnerships between agencies and the extraordinary efforts of all involved. The Minnesota Financial Crimes Task Force led this investigation, but this is an example of successful collaboration of local, state, and federal criminal justice agencies.”
Kelly R. Jackson, Special Agent in Charge of IRS Criminal Investigations, St. Paul Field Office, which also participated in the investigation, said, “Individuals who commit identity fraud of this magnitude deserve to be punished to the fullest extent of the law. These individuals caused immeasurable hardship to innocent victims. IRS Criminal Investigations remains committed to the pursuit of identity theft, and together with our law enforcement partners and the U.S. Attorney’s Office, we will hold those who engage in similar behavior fully accountable.”
Several other defendants have been sentenced in this case thus far. On June 20, 2013, Patricia Grace Pnewski, age 52, of South St. Paul, was sentenced to time served on one count of conspiracy to commit bank fraud. She pleaded guilty on February 6, 2012. Also on June 20, Cynthia Andrea Maxwell, age 45, of St. Paul, was sentenced to 12 months and one day in prison on one count of conspiracy to commit concealment money laundering. She pleaded guilty on July 12, 2012. Judge Magnuson also sentenced Vinicia Andrell Williamson, age 28, of Minneapolis, to 24 months in prison on one count of conspiracy to commit bank fraud and one count of aggravated identity theft. She pleaded guilty on August 1, 2012.
On June 19, 2013, five co-conspirators were sentenced each on one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Christeena Janell Barker, age 46, no known address, was sentenced to 48 months in prison. She pleaded guilty on January 19, 2012. Brianna Marie Blegen, age 26, of Ham Lake, was sentenced to 24 months in prison. She pleaded guilty on June 6, 2012. Jacqueline Cleveland, age 55, of Bloomington, was sentenced to 26 months in prison. She pleaded guilty on April 11, 2012. Melissa Jean Beaman, age 37, of St. Louis Park, was sentenced to 24 months and one day in prison. She pleaded guilty on January 9, 2012. Robin Dawn Finger, age 44, of St. Paul, was sentenced to 34 months in prison. She pleaded guilty on June 21, 2012.
Also on June 19, Brianna Marie Darwin, age 27, of St. Paul, was sentenced to 24 months in prison on one count of conspiracy to commit money laundering and one count of aggravated identity theft. She pleaded guilty on July 20, 2011.
On June 14, 2013, four co-conspirators were sentenced each on one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Jamie Hubert Branson, age 47, of Minneapolis, was sentenced to 43 months in prison. He pleaded guilty on January 19, 2012. Ginger Loucina Halliburton, age 46, of St. Paul, was sentenced to 30 months in prison. She pleaded guilty on February 8, 2013. Majorie Marie Neely, age 51, of Red Wing, was sentenced to 43 months in prison. She pleaded guilty on January 10, 2012. Darryl Alan Brant, age 55, of St. Paul, was sentenced to 30 months in prison. He pleaded guilty on January 19, 2012.
In a related case, four additional individuals, Jemall Ronta Williams, Jerome Davis, Jr., Tierra Samantha Catrina House, and Shanell Collette Brewer pleaded guilty. Gordon Lamarr Moore was convicted in April 2013 following a jury trial. He remains a fugitive.
These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They were prosecuted by Assistant U.S. Attorney Karen B. Schommer and Assistant U.S. Attorney Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.Founder of Kansas-Based Franchising Business Pleads Guilty to Misleading SECRead the Press Release
KANSAS CITY, KAN. – The founder of a Kansas-based insurance franchising business has pleaded guilty to filing an annual report with the Securities and Exchange Commission that contained misleading statements about the now-defunct company’s finances, U.S. Attorney Barry Grissom said today.
Robert D. Orr, 59, Denver, Colo, pleaded guilty to one count of making false statements in a report to the Securities and Exchange Commission. In his plea, he admitted that while he served as founder and non-executive chairman of the board of directors of Brooke Corporation, the company filed a 2007 annual report (Form 10-K) that presented a more financially robust position for Brooke Corporation’s investment in Brooke Capital Corporation than was supported by the actual financial conditions within the company. Orr knew that the report omitted material facts including the specific number of failed Brooke Capital Corporation franchise locations and the exact or total amount of financial assistance being provided by Brooke Capital Corporation to under-performing franchises.
Co-defendant Leland Orr is set for trial Feb. 24, 2014. Robert Orr is set for sentencing Oct. 7. The parties have agreed to recommend a sentence of three years probation and a fine of $48,000.
Grissom commended the FBI and Assistant U.S. Attorney Mike Warner for their work on the case.
Former VP of Lending Convicted of Bank EmbezzlementRead the Press Release
HOUSTON – Shawn Nelson, 39, of Houston and a former vice-president at Members Choice Credit Union, has entered a plea of guilty to embezzling approximately $340,000 from the bank, United States Attorney Kenneth Magidson announced today.
Court records reflect that Nelson was a vice-president of lending at Members Choice Credit Union in Houston. From 2001 through 2009, Nelson opened signature loan accounts in his friends’ and family members’ names without their authorization and then withdrew money from accounts without their authorization. By the time the fraud was discovered, Nelson had stolen more than $340,000 from the credit union.
U.S. District Judge Keith P. Ellison, has set sentencing for Sept. 26, 2013, at which time Nelson faces up to 30 years in federal prison and a possible $1 million fine. Additionally, as part of his plea agreement, Nelson has agreed to forfeit approximately $340,000.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorneys Sharad S. Khandelwal and Kristine Rollinson are prosecuting.
Former New Jersey Lawyer Sentenced to 33 Months in Prison for Embezzling More Than $885,000 in Law Firm FundsRead the Press Release
TRENTON, N.J. – A former partner of a law firm based in Freehold, N.J., was sentenced today to 33 months in prison for defrauding the firm and its clients by improperly diverting more than $885,000 from the law firm, U.S. Attorney Paul J. Fishman announced.
Timothy Provost, 58, of Millstone Township, N.J., previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of mail fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Provost admitted that between April 2004 and January 2011, he embezzled from the law firm, which was not identified in court documents, by wrongfully writing checks from its attorney trust and business accounts to himself and his personal creditors to pay for his and his family’s personal expenses, including his mortgage, his children’s tuition and horse stable expenses. Provost then mailed some of the checks to his personal creditors. He further admitted to attempting to hide his theft by using the stolen funds to purchase cashier’s checks payable to his creditors or to himself.
Provost, who was a partner at the firm, had access to the law firm’s bank accounts in order to conduct real estate transactions on behalf of clients, including closings and refinancings. Provost’s embezzlement left several clients with double mortgages, which insurance then stepped in to cover. In total, Provost stole more than $885,000 from the attorney trust and business accounts for his personal benefit.
In addition to the prison term, Judge Shipp sentenced Provost to three years of supervised release and ordered him to pay $887,134 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Nicholas Caliendo Esq., Freehold, N.J.
Former Highland Park Police Officer Sentenced to Prison for BriberyRead the Press Release
A former Highland Park Police officer was sentenced to prison today for conspiring with three other police officers to commit extortion and protect a shipment of cocaine, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Robert D. Foley, III.
During a hearing before U.S. District Judge Avern Cohn, Craig Clayton, 55, of Highland Park, Michigan, was sentenced to 12 months and one day in prison and two years of supervised release based on his plea of guilty to conspiring to commit extortion. Clayton had agreed with three other Highland Park police officers to take money in exchange for delivering a four-kilogram shipment of cocaine. Clayton brought his badge and gun to protect the shipment, and Clayton accepted $1,500 in cash from an FBI informant for his work.
United States Attorney McQuade said, "The court’s sentence today sends a strong message that police officers who take bribes will go to prison, and that no one is above the law.”
FBI Special Agent in Charge Foley stated, “Police officers who swear an oath to serve and protect are held to the highest standards of ethics and integrity. The FBI is committed to ensuring those standards are maintained, and in cases of abuse, will pursue and prosecute those responsible."Thus far in the investigation, three of the four Highland Park police officers charged have pleaded guilty and been convicted. Former Officer Shawn Williams pleaded guilty on May 2, 2013 to conspiring to commit extortion, and former officer Anthony Bynum pleaded guilty on May 23, 2013 to conspiring to commit extortion and bribery.
The case was investigated by agents of the FBI. It is being prosecuted by Assistant United States Attorney David A. Gardey.
Former Hartford Resident Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that KAMAR JAMES, also known as “Sean Steppa,” “Sean Lawson” and “Akamar Lawson,” 30, a citizen of Jamaica last residing in Hartford, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, in 2011, JAMES recruited a minor victim whom JAMES knew to be under the age of 18 to engage in prostitution. On multiple occasions, JAMES transported the minor victim from Connecticut to streets in New York City where the victim would meet men who would pay her for sexual encounters. JAMES also posted pictures of the minor victim on the Internet to advertise the victim’s prostitution services. He then transported the victim to hotels in the New York City area when the victim engaged in pre-arranged prostitution encounters. The victim turned over all of the proceeds from the prostitution encounters to JAMES.
JAMES is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on September 19, 2013, at which time he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life.
JAMES has been detained since his arrest on February 3, 2012.
This matter has been investigated by the Federal Bureau of Investigation and the Hartford Police Department, with the assistance of U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Employee Pleads Guilty to Stealing Funds from Postal ServiceRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a former employee of the United States Postal Service (“USPS”) pleaded guilty to embezzling postal funds from the Brooklyn Park Post Office. Kathleen M. Warner, age 53, of Otsego, pleaded guilty to one count of misappropriation of postal funds. Warner, who was indicted on March 12, 2013, entered her plea before United States District Court Judge Paul A. Magnuson.
In her plea agreement, Warner admitted that from in or about February 2010 to in or about August 2012, while performing her duties as a service associate for the USPS, she stole funds exceeding $1,500. Warner admittedly recorded cash sales of postage stamps incorrectly to benefit herself, used postage stamps for personal mailings without paying for them, took money out of her cash drawer to purchase Post Office merchandise, and took money from the cash drawer for her own benefit. Warner’s activities were discovered through the use of a surveillance camera.
For her crime, Warner faces a potential maximum penalty of ten years in prison. Judge Magnuson will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the USPS-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.Former Department of Health and Human Services Employee<br /> Sentenced to Prison for Wire Fraud SchemeRead the Press Release
A former employee of the Department of Health and Human Services’ Office of the Assistant Secretary for Preparedness and Response (HHS-ASPR) was sentenced today to serve six months in prison for his role in a scheme to defraud the United States by submitting fraudulent employment offers in order to claim retention bonuses totaling $138,875, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Michael A. Balady, 62, of Springfield, Va., was sentenced by U.S. District Judge Rudolph Contreras in the District of Columbia. In addition to his prison term, Balady was sentenced to serve six months of home confinement and two years of supervised release, and he was ordered to pay a fine of $22,000.
Balady worked in the HHS-ASPR initially as the director of acquisition management systems in ASPR’s Biological Advanced Research and Development Authority and later as the acting director of ASPR’s Office of Acquisitions, Management, Contracts and Grants. As part of his plea agreement, Balady admitted that he conspired with an employee of a communications firm based in Alexandria, Va., to fabricate employment offers for a position with that firm in order to justify retention bonuses paid to him by HHS. Retention bonuses are monetary incentives paid by HHS to employees deemed essential to its mission who would be likely to leave in the absence of such a bonus.
From 2009 until 2012, Balady improperly received retention bonus payments totaling $94,940. In June 2012, HHS approved another retention bonus in the amount of $38,875, but that bonus was never paid to Balady.
This case was investigated by the HHS Office of the Inspector General and was prosecuted by Trial Attorneys Richard B. Evans and Mark Angehr of the Criminal Division’s Public Integrity Section.
Former CEO of London-Based Company Sentenced to 41 Months in Prison for $2.1 Million Fraud Scheme-Defendant Used Nearly $1.7 Million of Proceeds to Buy Home in Great Falls, Va.-Read the Press Release
WASHINGTON – Kevin Richard Halligen, 51, an Irish citizen, was sentenced today to 41 months in prison for carrying out a scheme in which he defrauded $2.1 million from a Netherlands-based commodities trading company, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Halligen pled guilty in May 2013 to one count of wire fraud, the first of two counts of an indictment that was returned against him in 2009 in the U.S. District Court for the District of Columbia. As part of the plea agreement, the government agreed to dismiss the second count of the indictment, which was a money laundering charge stemming from the same scheme. He was sentenced by the Honorable Colleen Kollar-Kotelly.
Under the plea agreement, Halligen also must pay $2.1 million in restitution to the company that was the victim of his scheme.
Halligen was incarcerated in the United Kingdom from the date of his arrest in November 2009 until his extradition in December 2012. When he was presented for his initial appearance in the U.S District Court for the District of Columbia, in December 2012, he was ordered to be held without bond and he has been incarcerated since that time. He will get credit for the time he has served in the United States and abroad. He has voluntarily requested that he be removed from the United States immediately.
The wire fraud charge stems from actions taken by Halligen in 2006 and 2007, when he was the Chief Executive Officer of Red Defence International (RDI), a London-based security consulting and crisis management firm, which was hired by Trafigura Beheer BV (Trafigura), a Netherlands-based international commodities trading company, and its London-based law firm, Waterson Hicks. Trafigura hired RDI as a consultant in crisis management after two Trafigura executives were captured and imprisoned in the Ivory Coast while visiting there for the purpose of determining the company’s next steps to address an environmental issue caused by the leakage of toxic waste material from Trafigura vessels in an Ivory Coast port.
While employed by Trafigura, Halligen claimed to have incurred $2.1 million in expenses related to pursuing a strategy in the United States aimed at convincing the United States to assist in securing the release of the Trafigura executives; in reality, Halligen spent the money on a home in Great Falls, Va., which was to be his personal residence, as well as other personal expenses, according to the government’s evidence.
According to a Statement of Offense, signed by the defendant as well as the government, at the request of Trafigura, Waterson Hicks hired RDI in October 2006 to help secure the release of two Trafigura executives who were arrested and detained in Abidjan, Ivory Coast. The arrests followed an environmental spill off the coast of Abidjan. Under a contract that took effect in October 2006, RDI was to provide security intelligence and public relations services related to Trafigura’s presence in the Ivory Coast and to assist with facilitating the release of the Trafigura executives. Under the contract with RDI, Waterson Hicks paid RDI and then, in turn, the law firm was reimbursed by Trafigura.
During November 2006, after other efforts to secure the executives’ release proved unsuccessful, Halligen suggested that the U.S. government should be involved with facilitating negotiations with the Ivory Coast. His stated strategy was to utilize his contacts in the United States to encourage Ivory Coast officials to release the executives. Halligen said the “American Strategy” would cost an additional $2.1 million, on top of the money RDI already was receiving. In total, Halligen received close to $12 million under this contract.
The $2.1 million supposedly was to be used to pay expenses incurred by Halligen in the United States to hire consultants and lobbyists to influence officials in the United States on Trafigura’s behalf. In December 2006, Halligen was informed that the law firm had received the $2.1 million from Trafigura. Then, in January 2007, Halligen told the law firm to wire $2.1 million from their bank account in London to his personal bank account in the United States.
Between November 2006 and January 2007, Halligen traveled to the United States on numerous occasions, claiming to have met with U.S. officials in Washington, D.C., allegedly in furtherance of the “American Strategy.” While in Washington, D.C., he began dating a woman who resided in the area and subsequently became engaged to her.
Halligen gave his fianceé a $2 million budget to find a suitable house in which they would live after their marriage. Shortly thereafter, she found a six-bedroom, 4 ½-bathroom residence in Great Falls, Va. On Jan. 11, 2007 - the day after $2.1 million was wired to Halligen’s personal bank account for the American strategy - Halligen wired nearly $1.7 million from his account to complete the purchase of the Great Falls residence.
None of the proceeds from the $2.1 million payment from Waterson Hicks to RDI were ever directed toward reimbursement of expenses related to the “American Strategy.” In addition to spending nearly $1.7 million on the purchase of the Great Falls residence, the rest of the money was spent on other personal expenses, including a lavish fake wedding to his Washington, D.C. fiancé which was held at an exclusive location in Georgetown, two purebred dogs, and other luxury personal items.
The Trafigura executives ultimately were released in February 2007.
At the time of his indictment in November 2009, Halligen was no longer residing in the United States. On Nov. 25, 2009, he was arrested at a hotel in Oxford, the United Kingdom, so that he could be extradited to the United States. At the time of his arrest, Halligen was using an alias. Subsequent to his arrest in the United Kingdom, Halligen litigated issues surrounding his extradition to the United States. He ultimately was extradited in December 2012.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the Special Agents from the FBI’s Washington Field Office who handled the case. They also expressed appreciation to those who worked on the case for the U.S. Attorney’s Office, including paralegals Donna Galindo, Tasha Harris, and Krishawn Graham. Finally, they commended the efforts of Assistant U.S. Attorneys Maia L. Miller and Matt Graves, who prosecuted the case, and former Assistant U.S. Attorney Vasu Muthyala who investigated the matter.
13-230Former Bishop of Trumbull Church Sentenced to 46 Months in Prison for Investment Fraud SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JULIUS C. BLACKWELDER, 59, formerly of Stratford, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 46 months of imprisonment, followed by three years of supervised release, for operating an investment fraud scheme.
According to court documents and statements made in court, beginning in 2005, BLACKWELDER persuaded individuals to invest their money with him as part of an investment pool known as the “Friend’s Investment Group.” At the time, BLACKWELDER was the Bishop of the Bridgeport Ward of the Church of Jesus Christ of Latter-day Saints located in Trumbull, and he solicited investments from, among others, members of his congregation.
BLACKWELDER misrepresented to investors that he would invest their money in safe, long-term commodities futures contracts, and that he was an experienced and successful commodities investor. In some instances, BLACKWELDER guaranteed investors’ principal and a specific return on their investment. He documented his misrepresentations to investors in promissory notes, offering memoranda and account updates that he prepared.
In fact, BLACKWELDER used investors’ money to fund his construction of a 7,000 square-foot home on the Housatonic River in Stratford, to pay other personal expenses and to repay personal bank loans, including a line of credit from a Troubled Asset Relief Program (TARP) recipient bank. BLACKWELDER also used some invested funds to pay earlier investors.
Through this scheme, BLACKWELDER defrauded investors of nearly $500,000.
One victim of BLACKWELDER’s scheme, who was nearing retirement, took out a $100,000 home equity loan on his house and withdrew $130,000 from his 401k to invest with BLACKWELDER.
“This defendant exploited his position in his church to mislead other church members into believing he was an accomplished investor who could help them protect and increase their wealth,” stated Acting U.S. Attorney Daly. “Instead, he used much of the money he took from his victims to construct a luxurious waterfront mansion so that he could live in comfort while his victims struggled to make ends meet. I want to thank the U.S. Postal Inspection Service, SIGTARP, IRS-Criminal Investigation and the Connecticut Department of Banking who investigated this matter, as well as our other law enforcement partners who are working diligently to protect investors by identifying and rooting out fraudulent financial schemes.”
On February 20, 2013, BLACKWELDER pleaded guilty to one count of wire fraud and one count of money laundering.
This matter was investigated by the United States Postal Inspection Service, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Internal Revenue Service – Criminal Investigation, and the State of Connecticut Department of Banking. The case was prosecuted by Assistant United States Attorney Jonathan N. Francis and Acting United States Attorney Daly.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by the President’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Bellevue Travel Agent Sentenced for Stealing Money and Miles from ClientsRead the Press Release
A former Bellevue travel agent who used her access to clients’ credit card numbers and mileage plan awards to steal cash, travel and tickets worth more than $300,000 was sentenced today by U. S. District Judge James L. Robart to 24 months in prison and three years of supervised release, announced U.S. Attorney Jenny A. Durkan. KAREN YEAKEL, 64, was ordered to pay $339,242 to those she defrauded and to her employer who incurred thousands of dollars investigating the embezzlement.
According to records filed in the case, between 2005 and 2011, YEAKEL used her close relationship with some of her clients to steal their money and their miles. In some instances, YEAKEL would use their credit card accounts to charge airplane tickets to Hawaii or Mexico and then would resell the tickets as “travel vouchers” at a discount to other clients, pocketing the cash. She put more than $180,000 in fraudulent charges on the clients’ credit cards. The other prong of the scheme involved using clients’ miles to book her own travel or travel for her family members. YEAKEL booked more than 152 flights for family members using other people’s frequent flyer miles. When clients wanted to use their miles, YEAKEL claimed no mileage seats were available, when in fact she had simply drained the miles from the accounts. The value of the miles is estimated at more than $132,000.
YEAKEL pleaded guilty January 28, 2013.
Writing to the court prosecutors described how YEAKEL betrayed clients, many of whom were close friends, with her scheme. “Year after year, month after month, day after day, defendant Yeakel misused credit card and airline mile accounts her clients had entrusted to her. During this lengthy period, defendant Yeakel led her clients to believe that she was acting in their best interests, when in fact, she was embezzling hundreds of thousands of dollars from them to support her own lifestyle….. here is simply no excuse for an educated defendant, entrusted with private financial information by her clients, to engage in a multi-year fraud which caused significant emotional pain and significant losses,” prosecutors wrote in their sentencing memo.
The case was investigated by the Bellevue Police Department and was prosecuted by Assistant United States Attorney Justin Arnold.
Press contact for the U.S. Attorney’s Office is Thomas Bates at (206) 553-7970 or [email protected].
Former Air Guard Member Convicted of Wire FraudRead the Press Release
WICHITA, KAN. – A former Kansas Air National Guard senior airman who was assigned to McConnell Air Force Base in Wichita has been convicted on a federal charge of wire fraud, U.S. Attorney Barry Grissom said today.
After a trial in U.S. District Court in Wichita, a jury found Eledria J. Bradley, 28, Wichita, Kan., guilty of one count of wire fraud.
During trial, prosecutors presented evidence that Bradley collected more than $50,000 in travel reimbursements by claiming she lived in Arizona while she was working at McConnell. Evidence showed that Bradley accessed her file via a virtual MPF, an online personnel system in which military members can access and change their personal information, and changed her residential address from Wichita to Chandler, Ariz. The change in address placed her outside the commuting distance for McConnell Air Force Base, As a result, she received lodging and per diem benefits to which she was not entitled from April 22, 2009, to April 23, 2011, totaling $54,992.
Sentencing will be set for a later date. She faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Air Force - OSI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Five Indicted for $4.1 Million Mortgage Fraud Involving Homes in Medina and Gates MillsRead the Press Release
A federal indictment was filed charging five people with taking part in a $4.1 million mortgage fraud scheme involving six luxury properties in Medina, Ohio, and one property in Gates Mills, Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The seven-count indictment charges one count of conspiracy to commit bank fraud and wire fraud, one count of conspiracy to commit bank fraud and five counts of bank fraud.
Those charged are: Thomas G. France, age 43, of Strongsville; Katen S. Pabley, a.k.a. Keith Pabley, age 40, of Shaker Heights; Su Chi Straka, age 37, of Parma; Lisa R. Nagle, age 42, of Houston, Texas; and, Ranjeet Pabley, age 67, of Lombard, Illinois.
Previously charged via information were Joseph Beccia, age 60, of Parma; and, Alex Blackmore, age 49, of Bronx, New York.
As part of the first mortgage fraud scheme, the indictment charges that from in or around May 2006 through on or about June 20, 2007, Beccia and his company, Horizon Construction, built six new, luxury properties in Medina. Although some of the properties were not fully completed, Beccia listed five of the six properties for sale at purchase prices that were equal to the true market value of each property, starting on or about May 13, 2005.
Specifically, Beccia listed the five properties for sale as follows: 2940 Sutton Lane, Medina for $599,000, on or about August 30, 2006; 4281 Fox Glen Drive, Medina for $395,000, on or about May 13, 2005; 4320 Perian Court, Medina for $399,000, on or about November 9, 2005; 3006 Sutton Lane, Medina for $529,500, on or about August 30, 2006; and, 4740 Lake Forest Trial, Medina for $925,000, on or about August 30, 2006.
Beccia incurred the cost of the construction of these homes without having known purchasers for these properties. Beccia was not able to sell these properties for an extended period of time and began to experience financial difficulties. Joseph Jones, an individual previously convicted in another mortgage fraud scheme, met Beccia through France, a real estate agent working in the area. France advised Beccia that Jones had a system by which Jones could sell these properties so that Beccia could pay off his debts on the properties, according to the indictment.
The indictment charges further that Jones and France explained to Beccia that Jones had individuals willing to have properties purchased in their names. Jones and France also advised Beccia that in order to make Jones’ system work the properties would need to be removed from the market and re-listed at significantly higher purchase prices. Finally, Jones and France advised Beccia that they would handle the interactions with the loan officers and securing the mortgage loans. All Beccia had to do was participate in the sale of the properties at the significantly inflated purchase prices and sign off on the loan documents as the seller, which Beccia agreed to do, according to the indictment.
The indictment also charges that Beccia advised Jones and France the amount of money he required from the sale of each the properties in order for him to repay the amounts he had borrowed to construct the homes. Then, Jones determined the additional amount of money he wanted to receive over and above the amount of money required to be distributed to Beccia after the sale of each property. Beccia and France prepared new purchase agreements for each of the six properties with the inflated purchase price necessary to satisfy the amounts of money required. After the newly inflated purchase agreements were created, the purchase agreements were provided to Straka and Nagel, knowing that they would provide appraisal reports to support the inflated purchase prices, according to the indictment.
Jones enlisted K. Pabley and Blackmore to be straw buyers/investors of Beccia’s properties. Jones advised K. Pabley and Blackmore that if they would agree to allow these luxury homes to be purchased in their names, they would not have to provide any down payment funds because Jones would provide the down payment, and Jones would provide K. Pabley and Blackmore with a significant amount of cash back after the closing of each property for allowing their names to be used as the purchasers. K.Pabley’s credit could not support the purchase of the luxury properties, so K.Pabley recruited R.Pabley, his mother, to serve as the straw buyer/investor. Both R.Pabley, at the direction of K.Pabley, and Blackmore signed the loan documents containing false information in order for them to qualify to purchase the properties, according to the indictment.
The indictment charges that France re-listed five of the six properties for sale at the inflated purchase prices determined by Beccia and Jones as follows: 2940 Sutton Lane, Medina from $599,000 to $950,000; 4281 Fox Glen Drive, Medina from $395,000 to $647,000; 4320 Perian Court, Medina from $399,000 to $650,000; 3006 Sutton Lane, Medina from $529,500 to $920,000; and, 4740 Lake Forest Trial, Medina from $925,000 to $1,400,000.
Finally, the indictment charges that Jones enlisted the services of Marilyn Mannarino, an individual previously convicted in another mortgage fraud scheme, and Tower City Title on all six of Beccia’s properties. Tower City prepared the HUD-1s to make it appear to the financial institutions and mortgage lenders that R.Pabley and Blackmore provided the down payments from their own personal funds, when in fact Jones provided the down payments. Beccia, R.Pabley, and Blackmore signed the HUD-1s knowing that R.Pabley and Blackmore had not provided the down payments from their own personal funds.
Each of the properties for which defendants secured a mortgage loan went into foreclosure, resulting in a total loss of approximately $3,327,333, with Flagstar Bank incurring a loss of approximately $1,053,000, Lehman Brothers Bank incurring a loss of approximately $752,500, J.P. Morgan Chase incurring a loss of approximately $422,000, Suntrust Mortgage, Inc. incurring a loss of approximately $420,833, and American Brokers Conduit, a division of American Home Mortgage, Inc. incurring a loss of approximately $679,000, according to the indictment.
In the second mortgage fraud scheme, the indictment charges Jones and K.Pabley of conspiring with D.C., owner of Perl Building Corporation, to fraudulent purchase the property located at 1924 Epping Road, Gates Miles, Ohio, in R.Pabley’s name. Similar to Beccia, Jones identified D.C. as a builder in financial trouble and contacted D.C. with an offer to purchase the Epping Road property that D.C. had not been able to sell. Jones explained that he had an individual willing to purchase the property, but that in order to make the transaction work they would need to inflate the purchase price of the property significantly over the fair market value of the property so that Jones could obtain the excess funds from the inflated purchase price. Just as Jones had done with Beccia, Jones advised D.C. that he would handle all the aspects of the transaction. All D.C. had to be willing to do was sign the HUD-1 containing the inflated purchase price, which D.C. agreed to do, according to the indictment.
Again, K.Pabley’s credit score would not support the purchase of the property, so he recruited R.Pabley to have the property purchased in her name. And, again, Jones enlisted the services of Mannarino and Tower City Title to prepare the HUD-1 and handle the closing. The loan application and HUD-1 were falsified in a similar manner as those in the Medina scheme and those involved in the Epping property signed the loan documents knowing they contained false information in order to induce the lender, Washington Mutual, to approve and fund the loan. The Epping Road property, also, went into foreclosure creating a loss to Washington Mutual of approximately $807,000, according to the indictment.
If convicted, defendants’ sentences will be determined by the Court after review of factors unique to this case, including defendants’ prior criminal records, if any, each defendant’s role in the offense, and the characteristics of the violation. In all cases the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Mark S. Bennett, following an investigation by the Cleveland Offices of the Federal Bureau of Investigations and the United States Secret Service. An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Final Defendant Sentenced to 120 Months in Large Warren County Marijuana Distribution RingRead the Press Release
– 21 defendants prosecuted on multiple charges of money laundering and distribution of more than 1000 kilograms of marijuana
BOWLING GREEN, Ky. - United States Attorney David J. Hale announced the sentencing of the last of 21 defendants prosecuted in a large marijuana distribution ring operating from June 2008 to February 2010, in Warren County, Kentucky.
Senior Judge Thomas B. Russell late yesterday sentenced Brian Miller of Bowling Green, to 120 months in prison for his role in a conspiracy to distribute more than 1,000 kilograms of marijuana in the Western District of Kentucky.
“The successful conclusion of this multi-defendant drug trafficking case follows from an effective and coordinated law enforcement effort,” stated U.S. Attorney Hale. “We commend the good work of the Bowling Green-Warren County Drug Task Force and the DEA. These important federal and local partnerships are working to reduce the drug trafficking and the violent crime that all too often is associated with drug trafficking organizations, throughout the Western District of Kentucky.”
“This is what can be accomplished when we all work together, share information,” stated Thomas M. Loving, Director, Bowling Green-Warren County Drug Task Force.
All defendants pleaded guilty to various drug trafficking and/or money laundering charges while some pleaded guilty to reduced charges. The indictments in U.S. District Court were returned by a grand jury on November 3, 2010, April 6, 2011, and March 14, 2012. Defendants were sentenced in United States District Court, in Bowling Green, on December 4, 2012, and on February 28, 2013. The following is a listing of sentences received: Tony Barber to 30 months imprisonment; Paul Cuen to 37 months imprisonment; Bryson Hall to 18 months imprisonment; Carl Gene Jones Jr. to 97 months imprisonment; Roger Kollman to 60 months probation; Craig Larry to 60 months probation; Tim Manning to 60 months probation; Brian Scott Miller to 120 months imprisonment; Jacob Paul Miller to 87 months imprisonment; Darrell Morgan to 60 months probation; Michael Perry to 41 months imprisonment; Julius Price to 60 months imprisonment; Ralph Rich to 60 months probation; Scott Rich to 41 months imprisonment; Troy Rich to 84 months imprisonment; Stephanie Rich to 60 months probation; Michael Rich to 45 months imprisonment; Jonathan Watkins to 37 months imprisonment; and Paul Michael Wilson to 27 months imprisonment.
Differences between the sentences received for the same charge are attributable to the individual defendant’s criminal history record, which is an important factor in federal sentencing procedures. In addition to the sentences noted above, all defendants who received a prison sentence would be placed on supervised release for a period of at least three years after serving the imposed sentence. There is no parole in the federal prison system.
Two defendants had charges dismissed on a motion by the United States and one defendant, Francisco Parra of Rio Pico, Arizona, was acquitted at trial.
In addition to the sentences, the investigation resulted in the forfeiture of approximately $200,000 in U.S. currency and approximately $800,000 in real and personal property.
The cases were prosecuted by Assistant United States Attorney Larry Fentress, and investigated by the Bowling Green-Warren County Drug Task Force and the United States Drug Enforcement Administration.
Final Defendant Sentenced in Alien Harboring ConspiracyRead the Press Release
HOUSTON – Carlos Alejandrez, the final defendant convicted in a conspiracy to harbor and induce illegal aliens to reside in the country, has been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Alejandrez, 30, of Houston, entered a plea of guilty Feb. 5, 2013.
Today, U.S. District Judge Sim Lake handed Alejandrez a 97-month term of imprisonment to be followed by three years of supervised release. Four others - Jabier Alejandre, 22, of Houston, and Ismael Melgoza-Arredondo, 39, Miguel Granados-Lupian, 33, and William Dubon-Milla, 22, all illegal aliens residing in Houston - have also pleaded guilty in the case. Dubon-Milla and Granados-Lupian both received sentences of 37 months, while Alejandre and Melgoza-Arredondo were sentenced to respective terms of 51 and 97 months.
All five admitted they conspired to harbor undocumented aliens for financial gain.
The investigation began on Dec. 17, 2012, after special agents with Homeland Security Investigations (HSI) responded to a call for assistance from the Houston Police Department (HPD) regarding a possible alien stash house on the 7300 block of Northleaf in Houston.
Earlier that day, HPD had responded to the residence, began surveillance and subsequently observed a black GMC pickup departing the residence. Officers initiated a traffic stop and discovered Alejandrez was driving and Granados-Lupian was a passenger in the car as was an undocumented female from Honduras who had entered the U.S. illegally. The alien had paid $1,700 to the alien smuggling organization and was being delivered to relatives in Houston who were to pay an additional $1,700 upon her arrival.
Shortly thereafter, a Toyota pickup was seen leaving the same house and was also stopped by law enforcement. Melgoza-Arredondo was driving and had as passenger a female undocumented alien from El Salvador who had arrived in the U.S. approximately one month prior. She had already paid $8,000 to the smuggling organization to be brought to New Jersey from El Salvador and still owed another $800.
HPD officers and HSI agents entered the Northleaf residence, at which time they discovered Alejandre, the brother of Alejandrez, and Dubon-Milla as well as 43 recently smuggled undocumented aliens. The aliens were all interviewed and admitted they were smuggled illegally into the country and were being housed at this residence until their delivery. The vast majority of the males were wearing nothing but their underwear, which court records indicate is a common practice used by alien smugglers to discourage men from attempting escape. Among those in the residence were an unaccompanied five-year-old boy and 12 other juveniles.
During the course of the search, agents seized various documents and items including ledgers commonly referred to as "polio lists" which are used to keep track of the smuggled aliens as well as a .22 caliber handgun and a 12-gauge shotgun, two baseball bats and numerous cell phones.
Previously released on bond, Alejandrez was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by HSI with the assistance of HPD. Assistant United States Attorney Suzanne Elmilady is prosecuting the case.
Federal, State and Local Officials to Hold Press Conference to Discuss New Mexico’s Role in Yesterday’s Nationwide Synthetic Drug TakedownRead the Press Release
ALBUQUERQUE – Federal, state and local officials will hold a press conference on THURSDAY, JUNE 27, 2013 at 2:00 P.M. to discuss the role of New Mexico law enforcement community in yesterday’s nationwide synthetic drug takedown.
WHO: U.S. Attorney Kenneth J. Gonzales Joseph M. Arabit, Special Agent in Charge, El Paso Division of the DEA Other Federal, State and Local Law Enforcement Officials
WHAT: Press conference to discuss role of New Mexico law enforcement community in yesterday’s nationwide synthetic drug takedown.
WHEN: THURSDAY, JUNE 27, 2013 2:00 P.M.
WHERE: U.S. Attorney’s Office 10th Floor Multi-Media Room (Reception on 9th Floor) 201 Third Street NW Albuquerque, NM 87102 OPEN PRESSNOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 1:45 p.m. Press inquiries regarding logistics should be directed to Jessica Masoner at (505) 224-1448 or (505) 366-1463.
Federal Jury Convicts Wisconsin Man for Possessing Cocaine and Crack Cocaine with Intent to DistributeRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a jury found a 33-year-old man from Green Bay, Wisconsin, guilty of conspiring to possess with intent to distribute cocaine and crack cocaine. On June 26, 2013, the jury convicted Travis Sentell Peeler of one count of conspiracy to possess with intent to distribute five or more kilograms of cocaine and 280 or more grams of crack cocaine. Peeler was indicted on July 23, 2012, along with six co-defendants.
The evidence presented at trial proved that between March 2009 and March 2012, Peeler conspired with others to possess with intent to distribute cocaine and crack cocaine. Earlier, six of Peeler’s co-defendants pleaded guilty to one count of conspiracy to distribute controlled substances. In their plea agreements, the co-defendants admitted that between March 2009 and March 2012, they conspired with each other to possess with intent to distribute cocaine and crack cocaine.
On March 4, 2013, Rossco Antonieo Ross, age 35, of Columbia Heights, pleaded guilty. In his plea agreement, Ross admitted that he obtained the cocaine, “cooked” it into crack cocaine, and sold it to the others. He also admitted responsibility for 340 grams of crack cocaine. On January 11, 2013, William Elisha Carter, age 28, of Plymouth, pleaded guilty. In his plea agreement, Carter admitted responsibility for between 5 and 15 kilograms of cocaine.
On December 18, 2012, Musaaleh Waheed Muhammad, age 36, of Brooklyn Park, pleaded guilty. In his plea agreement, Muhammad admitted that he distributed cocaine to others to sell. Muhammad admitted responsibility for between 5-15 kilograms of cocaine. On November 21, 2012, Charles Eric Jackson, Jr., age 45, of Minneapolis, pleaded guilty. In his plea agreement, Jackson admitted that he purchased crack cocaine from Ross and sold it to others. Jackson admitted responsibility for 161 grams of crack cocaine.
On November 19, 2012, Gregory Leroy Carter, age 26, of Brooklyn Park, pleaded guilty. In his plea agreement, Carter admitted that he purchased cocaine from Ross and sold it to others. He also admitted responsibility for 56 grams of crack cocaine. In addition, Carter admitted that he carried firearms, including a nine-millimeter pistol while he was trafficking in narcotics on February 5, 2012. On November 14, 2012, Heriberto Sanchez, age 25, of Lucerne, California, pleaded guilty. In his plea agreement, Sanchez admitted securing the transport of cocaine from Mexico through California to Minnesota. He also admitted responsibility for between 5 and 15 kilograms of cocaine.
For their crimes, Peeler, Sanchez, Ross, Muhammad, and William Carter face a potential maximum penalty of life in prison. Jackson and Gregory Carter face a potential maximum penalty of 40 years in prison. United States District Court Judge Richard H. Kyle will determine their sentences at future hearings, yet to be scheduled.
This case is the result of an investigation conducted by the Safe Streets Task Force, with assistance from the Wisconsin State Patrol and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. Safe Streets is a FBI-sponsored task force that focuses on combating violent street crime as well as gang and drug trafficking offenses. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.Federal Grand Jury Returns 30-Count Indictment Related to <br /> Boston Marathon Explosions and Murder of MIT Police Officer Sean CollierRead the Press Release
A federal grand jury returned a 30-count indictment against Dzhokhar A. Tsarnaev for his alleged role in using weapons of mass destruction at the Boston Marathon to kill three individuals and maim or seriously injure many others, as well as for using a firearm to intentionally kill Massachusetts Institute of Technology (MIT) Police Officer Sean Collier.
Tsarnaev, aka “Jahar Tsarni”, 19, a U.S. citizen residing in Cambridge, Mass., was charged today by indictment with the use of a weapon of mass destruction resulting in death and conspiracy; bombing of a place of public use resulting in death and conspiracy; malicious destruction of property resulting in death and conspiracy; use of a firearm during and in relation to a crime of violence; use of a firearm during and in relation to a crime of violence causing death; carjacking resulting in serious bodily injury; interference with commerce by threats or violence; and aiding and abetting.
“This indictment is the result of exemplary cooperation between federal prosecutors and a wide range of federal, state, and local law enforcement agencies to investigate the horrific attacks on the Boston Marathon two months ago,” said Attorney General Eric Holder. “The Department is firmly committed to achieving justice on behalf of all who were affected by these senseless acts of violence. And today’s action proves our unyielding resolve to hold accountable – to the fullest extent of the law – anyone who would threaten the American people or attempt to terrorize our great cities. I would like to thank our law enforcement partners, the FBI, the Department's National Security Division, the U.S. Attorney’s Office for the District of Massachusetts and every investigator, agent, officer, attorney, analyst, and support staff member whose courage and commitment continues to make our communities and our nation safer.”
“Today’s indictment is the result of the dedicated and collective efforts of law enforcement and intelligence partners, working with a sense of urgency and purpose to find those responsible for these deadly attacks,” said FBI Director Robert S. Mueller. “These continuing efforts reflect the pursuit of justice for those who lost their lives, and for the scores of individuals who were injured.”
“Today’s charges reflect the serious and violent nature of the events that occurred on April 15th and the tragic series of events that followed,” said Carmen Ortiz, U.S. Attorney for the District of Massachusetts. “The defendant’s alleged conduct forever changed lives. The victims, their families and this community have shown extraordinary strength and resilience in the face of this senseless violence, and it is with the hundreds of injured, as well as Krystle, Lingzi, Martin and Sean in mind that we proceed to ensure that justice is served in this case.”
“Our hearts go out to the victims of these horrendous acts of violence, and our gratitude to the courageous law enforcement officers who have given so much to protect the people of Boston and the United States,” said John Carlin, Acting Assistant Attorney General of the Justice Department’s National Security Division. “We remain committed to obtaining justice in this matter and will continue to work side by side with our partners throughout the law enforcement and intelligence communities to protect the American people from future harm.”
The indictment alleges that beginning no later than February 2013 and continuing until Tsarnaev was apprehended on April 19, 2013, Tsarnaev and his brother Tamerlan conspired to use improvised explosive devices (IEDs) against people, property and places of public use. Specifically, the indictment alleges that on April 15, 2013, during the 117th running of the Boston Marathon, Tsarnaev and his brother placed IEDs among the crowds of spectators who were cheering the runners on Boylston Street towards the marathon finish line. After placing the IEDs among the crowd, the indictment alleges, Tsarnaev and his brother detonated the bombs seconds apart, killing three people, maiming and injuring many more, and forcing a premature end to the marathon. The indictment alleges that the IEDs were constructed from pressure cookers, explosive powder, shrapnel, adhesives and other items, and were designed to shred skin, shatter bone and cause extreme pain and suffering, as well as death.
The indictment also alleges that on April 18, 2013, the FBI released photographs of Tsarnaev and his brother, identifying them as suspects in the marathon bombings. These photographs were widely disseminated on television and elsewhere. The indictment alleges that hours later on April 18, Tsarnaev and his brother, armed with five IEDs, a Ruger P95 semiautomatic handgun, ammunition, a machete and a hunting knife, drove in their Honda Civic to the MIT campus, where they shot MIT Police Officer Sean Collier and attempted to steal his service weapon.
The indictment further alleges that shortly after Tsarnaev and his brother killed Officer Collier, they carjacked a Mercedes, kidnaped the driver, and forced him to drive to a gas station, robbing him of $800 along the way. After the driver managed to escape, the brothers are alleged to have driven the carjacked vehicle to the vicinity of Laurel Street and Dexter Avenue in Watertown, Mass., where Watertown police officers located them and tried to apprehend them. The indictment alleges that the brothers fired at the police officers and used four additional IEDs against them; then Tsarnaev reentered the carjacked vehicle, drove it directly at the officers, running over his brother as he managed to escape. Tsarnaev is alleged to have hidden in a dry-docked boat in a Watertown backyard until his arrest the following night.
Seventeen of the charges authorize a penalty of up to life in prison or the death penalty. The remainder authorize a maximum penalty of life in prison or a fixed term of years. Tsarnaev is scheduled to be arraigned on July 10, 2013.
U.S. Attorney Carmen M. Ortiz; Middlesex County, Mass., District Attorney Marian T. Ryan; Suffolk County, Mass., District Attorney Daniel F. Conley; Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Division; Boston Police Commissioner Edward Davis; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Kenneth J. Croke, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) in Boston, made the announcement today during a press conference.
This investigation was conducted by the FBI’s Boston Division, the Boston Police Department, the Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force, which is comprised of more than 30 federal, state and local law enforcement agencies, including the ATF, ICE-HSI, U.S. Marshals Service, U.S. Secret Service, the Massachusetts Bay Transit Authority and others. In addition, the Watertown Police Department, the Cambridge Police Department, the MIT Police Department, the Boston Fire Department, the National Guard and police, fire and emergency responders from across Massachusetts and New England played critical roles in the investigation and response.
This case is being prosecuted by Assistant U.S. Attorneys William Weinreb and Aloke Chakravarty of the U.S. Attorney’s Office for the District of Massachusetts' Anti-Terrorism and National Security Unit, Nadine Pellegrini, Chief of its Major Crimes Unit, and Trial Attorneys of the U.S. Department of Justice's National Security Division's Counterterrorism Section and its Criminal Division.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related Materials:
Indictment
Federal Grand Jury Returns 30-Count Indictment Related to Boston Marathon Explosions and Murder of MIT Police Officer Sean CollierRead the Press Release
BOSTON – A federal grand jury today returned a 30-count indictment against Dzhokhar A. Tsarnaev for his alleged role in using weapons of mass destruction at the Boston Marathon to kill three individuals and maim or seriously injure many others, as well as for using a firearm to intentionally kill Massachusetts Institute of Technology (MIT) Police Officer Sean Collier.
Tsarnaev (aka Jahar Tsarni), 19, a U.S. citizen residing in Cambridge, was charged by indictment with use of a weapon of mass destruction resulting in death and conspiracy; bombing of a place of public use resulting in death and conspiracy; malicious destruction of property resulting in death and conspiracy; use of a firearm during and in relation to a crime of violence; use of a firearm during and in relation to a crime of violence causing death; carjacking resulting in serious bodily injury; interference with commerce by threats or violence; and aiding and abetting.
The indictment alleges that beginning no later than February 2013 and continuing until Tsarnaev was apprehended on April 19, 2013, Tsarnaev and his brother Tamerlan Tsarnaev conspired to use improvised explosive devices (IEDs) against people, property, and places of public use. Specifically, the indictment alleges that on April 15, 2013, during the 117th running of the Boston Marathon, the brothers placed IEDs among the crowds of spectators who were cheering the runners towards the Marathon finish line. After placing the IEDs among the crowd, the indictment alleges, Tsarnaev and his brother detonated the bombs seconds apart, killing three people, maiming and injuring many more, and forcing a premature end to the Marathon. The indictment alleges that the IEDs were constructed from pressure cookers, explosive powder, shrapnel, adhesives, and other items, and were designed to shred skin, shatter bone, and cause extreme pain and suffering, as well as death.
The indictment also alleges that on April 18, 2013, the FBI released photographs of Dzhokhar Tsarnaev and his brother, identifying them as suspects in the Marathon bombings. These photographs were widely disseminated on television and elsewhere. The indictment alleges that hours later on April 18, Dzhokhar Tsarnaev and his brother, armed with five IEDs, a Ruger P95 semiautomatic handgun, ammunition, a machete, and a hunting knife, drove their Honda Civic to the MIT campus, where they shot and killed MIT Police Officer Sean Collier and attempted to steal his service weapon.
The indictment further alleges that shortly after Dzhokhar Tsarnaev and his brother killed Officer Collier, they carjacked a Mercedes, kidnapped the driver, and forced him to drive to a gas station, robbing him of $800 along the way. After the driver managed to escape, the brothers are alleged to have driven the carjacked vehicle to the vicinity of Laurel Street and Dexter Avenue in Watertown, where Watertown police officers located them and tried to apprehend them. The indictment alleges that the brothers fired at the police officers and used four additional IEDs against them. Dzhokhar Tsarnaev then reentered the carjacked vehicle and drove it directly at the officers, running over his brother as he managed to escape. Tsarnaev is alleged to have hidden in a dry-docked boat in a Watertown backyard until his arrest the following night.
Seventeen of the charges authorize a penalty of up to life in prison or the death penalty. The remaining charges authorize a maximum penalty of life in prison or a fixed term of years.
U.S. Attorney Carmen M. Ortiz; Middlesex County District Attorney Marian T. Ryan; Suffolk County District Attorney Daniel F. Conley; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division; Boston Police Commissioner Edward Davis; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Kenneth J. Croke, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today during a press conference.
This investigation was conducted by the FBI’s Boston Division, Boston Police Department, Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement – Homeland Security Investigations, U.S. Marshals Service, Massachusetts Bay Transit Authority and others. In addition, the Watertown Police Department, the Cambridge Police Department, the MIT Police Department, the Boston Fire Department, the National Guard and police, fire and emergency responders from across Massachusetts and New England played critical roles in the investigation and response.
This case is being prosecuted by Assistant U.S. Attorneys William Weinreb and Aloke Chakravarty of the U.S. Attorney’s Office for the District of Massachusetts' Anti-Terrorism and National Security Unit, Nadine Pellegrini, Chief of its Major Crimes Unit, and Trial Attorneys of the U.S. Department of Justice's National Security Division's Counterterrorism Section and its Criminal Division.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
(Download Indictment )
Erie Man Sentenced to 12+ Years in Prison for Dealing CocaineRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty and was sentenced in federal court to 151 months in jail on his conviction of violating federal drug laws. United States Attorney David J. Hickton announced today. In addition, he was given a concurrent sentence of 37 months for violating his supervised release of a previous conviction.
Chief United States District Judge Sean J. McLaughlin imposed the sentences on Glenn Andre Hollingsworth, Jr., 33.
According to information presented to the court, on or about July 8, 2011, Hollingsworth possessed with intent to distribute and distributed approximately 76 grams of cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, the Erie Police Department. and the Pennsylvania Attorney General, Bureau of Narcotics Investigation for the investigation leading to the successful prosecution of Hollingsworth.
El Paso Man Convicted of Making False Statements to Law Enforcement in Reporting Threats to the PresidentRead the Press Release
A jury in El Paso, Texas, today convicted Keith Nicholas Aiken, 31, of making false statements to law enforcement while serving as a civilian military employee stationed in Afghanistan, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Western District of Texas Robert Pitman; Special Agent in Charge David Iacovetti of U.S. Secret Service Honolulu Field Office; and Resident Agent in Charge Ed Garcia of the U.S. Secret Service El Paso Resident Office
On Jan. 9, 2013, Aiken was charged in U.S. District Court in the Western District of Texas with two counts of making false statements to law enforcement.
According to evidence presented at trial, on Jan. 13, 2011, Aiken reported to the Deputy Command Office for the 4-401st Army Field Support Brigade in Kandahar, Afghanistan, that a co-worker had threatened to shoot President Obama and threatened that a friend was prepared to blow up Air Force One. Aiken repeated that statement to the U.S. Army Criminal Investigation Command (CID) and later to the U.S. Secret Service. Evidence introduced at trial established that to investigate the threat, the Secret Service deployed agents to Afghanistan, diverting resources from a significant investigation. The trial evidence further showed that approximately six weeks after reporting the alleged threat, Aiken confessed that he had fabricated the story because the co-worker was opinionated and had made statements that offended Aiken, and he was hoping that the investigation of the threat would lead to the co-worker’s transfer off the base.
At sentencing, scheduled for Sept. 13, 2013, Aiken faces a maximum penalty of five years in prison on each count.
The case was prosecuted by Senior Trial Attorney Teresa Wallbaum of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Daphne Newaz of the Western District of Texas (El Paso Division). The case was investigated by the U.S. Secret Service’s Honolulu, Hawaii and El Paso, Texas offices.