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Friday 10 May 2013
20 Charged with Drug TraffickingRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana — United States Attorney David Capp announced today that a Grand Jury sitting in Fort Wayne returned 14 Indictments on March 28, 2013 charging several conspiracies to distribute narcotics as well as firearm charges.
In March 2011, an investigation by the Fort Wayne Safe Streets Task Force under the direction of the Federal Bureau of Investigation revealed the existence of a large scale narcotics distribution conspiracy operating in northeastern Indiana. The initial stages of the investigation identified Pedro Salud Rubio-Garcia an alleged drug supplier in the Steuben County area, and the subsequent use of several court authorized wiretaps of various telephones identified Manuel Herrera and Armando Herrera-Velasquez and others, as operating an illegal drug supply network in northeast Indiana.The following 20 individuals are named in the 14 Indictments:
#1
Pedro Salud Rubio-Garcia, 25, of Fremont, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and methamphetamine, distribution of methamphetamine and the selling and transfer of a firearm to a known convicted felon.
Jose Noe Perea Casteneda, 40, of Goshen, Indiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and methamphetamine.
#2
Armando Herrera-Velasquez, 41, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine.
Manuel Herrera, 43, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and maintaining a residence for the purpose of distributing cocaine.
Elida Herrera, 51, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and maintaining a residence for the purpose of distributing cocaine.
Maria Patricia Herrera, 52, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine.
Efren Paniagua-Pizano, 24, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine.
Luis Tapia, 42, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and maintaining a residence for the purpose of distributing cocaine.
#3
Armando Gonzales-Gutierrez, 43, of Fort Wayne, Indiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#4
Darwin Altamirano, 29, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#5
Juan Corona, 33, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#6
Damian Dubose, 37, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine, distribution of cocaine and use of a communication facility.
#7
Leobardo Gaona, 39, of Huntertown, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#8
Gelacio Marintez, 36, of Sturgis, Michigan is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#9
Gerardo Martinez-Gaston, 42, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine, distribution of cocaine and use of a communication facility.
#10
Juan Pena, 20, of Sturgis, Michigan is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#11
Guadalupe C. Luna, of Fremont, Indiana is charged with distribution of cocaine.
#12
Cynthia L. Sanchez, 42, of Fort Wayne, Indiana is charged with distribution of cocaine.
#13
Jerry Sell, 45, of Van Wert, Ohio is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#14
John Bennett, 35, of Sturgis, Michigan is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine and use of a communication facility.
These charges were filed as a result of an investigation conducted by the Federal Bureau of Investigation Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and the Fort Wayne Police Department. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Marshals Service; Angola City Police Department; Elkhart County Interdiction and Covert Enforcement Unit; IMAGE Drug Task Force; Michigan State Police; New Haven Police Department; South Bend Police Department; and the Steuben County Sheriff's Department assisted with this investigation.
On Thursday May 9, 2013, law enforcement arrested the following individuals in the Fort Wayne area: Efren Paniagua-Pizano, Luis Tapia, Pedro Salud Rubio-Garcia, Guadalupe Carmona Luna, Armando Gonzalez – Gutierrez, Gerardo Martinez – Gaston, Juan Corona, Jose Noe Perea Casteneda, Jerry Sell, Maria Patricia Herrera, Cynthia Lynn Sanchez, Damian Dubose, Juan Pena, and Leobardo Gaona.Arrested in Las Vegas Nevada were Manuel Herreraand Elida Herrera.Arrested in Michigan were Gelacio Martinez and John Bennett.
On that same date, the FBI served search warrants on several residences and seized multiple vehicles to include:
1606 Saint Louis Avenue, Fort Wayne, IN 46819
117 E. DeWald Street, Fort Wayne, IN 46803
3026 Pennsylvania Street, Fort Wayne, IN 46803
1024 East Paulding Road, Fort Wayne, IN 46806
600 West North, Lot 13, Fremont, IN
3009 Oliver Street Fort Wayne, IN
7555 Decatur Road lot 28, Fort Wayne, IN
Blue 2012 Chevrolet Cruze
Silver 2009 Pontiac Vibe
Red 2006 Ford F-150
Black 2007 GMC Yukon
White 2009 Lincoln MKS
Black 2003 GMC Yukon
White 2008 Pontiac G6
United States Court Magistrate Judge Roger B. Cosbey has set initial appearances for the arrested individuals from this area which were held May 9 and to be held on May 10, 2013.The individual defendants have made and will be making their appearances, detention hearings and arraignments in front of Magistrate Judge in the coming days.
These cases have been assigned to and will be prosecuted by Assistant United Attorney Lesley Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Thursday 9 May 2013
Westfield Man Sentenced for Possessing Child PornographyRead the Press Release
BOSTON – A Westfield man was sentenced today in U.S. District Court in Springfield for possession of child pornography.
Richard Starr, 56, of Westfield, was sentenced by U.S. District Judge Michael A. Ponsor to 42 months in prison, followed by 10 years of supervised release, restitution of $3,800 and forfeiture of various computer media. In February 2013, Starr pleaded guilty to possession of material involving the sexual exploitation of minors.While federal agents were conducting a consensual interview with Starr at his residence he admitted that he had requested files from a child pornography-related website. In response to agents’ request to search Starr’s computers for child pornography, he responded that “chances are you’ll find something.” Starr subsequently did not consent to the search so agents contacted the Westfield Police Department who obtained a state search warrant for the residence and proceeded to seize multiple computers and computer media. The FBI conducted a forensic examination of the computer media and discovered tens of thousands of digital images and video files depicting minors engaging in sexually explicit conduct. Many of these files were located in folders that contained suggestive or explicit titles, such as "Candydolls," and "eternal-nymphets."
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of Federal Bureau of Investigation Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was investigated with the assistance of the Westfield Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
United Courier Service Owner Goes to Jail for Filing False Tax ReturnsRead the Press Release
GRAND RAPIDS, MICHIGAN – Thomas Richard Fulger, age 65, of Lansing, Michigan, was sentenced to 9 months imprisonment and 1 year of supervised release for willfully filing false tax returns for the tax year 2005, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
In addition, U.S. District Judge Janet T. Neff also ordered Fulger to pay a special assessment of $200 and restitution to the Internal Revenue Service of $139,988.
According to court records, Fulger who is the owner of United Courier Service in Lansing, evaded taxes by routinely under-reporting his S Corporate income and under-reporting his individual income on the corresponding federal income tax returns. For 2005, Fulger reported his personal gross income was negative $23,123 when in fact his true gross income was $293,750.
In addition to pleading guilty to filing false tax returns for the tax year 2005, the defendant admitted that he deliberately failed to pay $139,988 in taxes between 2004 and 2007. In addition to a sentence of 9 months’ imprisonment, the defendant will be required to pay his unpaid tax balance.
“Fulger’s sentence emphasizes the importance that everyone must honestly report their income,” said Special Agent in Charge Erick Martinez. “IRS Criminal Investigation will investigate individuals that deliberately file false returns and there are severe consequences for those who violate the law.”
The investigation of this case was conducted by special agents of the Internal Revenue Service, and prosecuted by Assistant U.S. Attorney Rene Shekmer.
END
U.S. Attorney's Office Announces Significant Management ChangesRead the Press Release
LEXINGTON, KY - The U.S. Attorney for the Eastern District of Kentucky, Kerry B. Harvey, announced a number of leadership changes today including a new top assistant.
Harvey announced that Carlton Shier IV will serve as the First Assistant U.S. Attorney, Robin Gwinn will lead the office’s civil division and Bob McBride will manage the Fort Mitchell, KY., branch office.
As First Assistant, Shier will serve as Harvey’s top advisor and support him in managing the operations of the Lexington headquarters and branch offices located in Fort Mitchell and London, KY., which, altogether, includes a staff of nearly 100 employees and contractors. He will work closely with leaders of the office’s administration, appellate, asset forfeiture, criminal and civil divisions, and will participate in all aspects of managing the operation.
Shier, a Lexington native, had served as chief of the office’s civil division since September of 2010. During his tenure, the division marked several accomplishments, including negotiating a settlement with an Erlanger nursing home in a landmark case. It marked the first time in Kentucky that the False Claims statute was used in a case in which a nursing facility was sued alleging a systemic failure of care for its residents.
Prior to joining the U.S. Attorney’s Office, Shier worked as the Deputy General Counsel for the Kentucky Cabinet of Health and Family Services. He also has worked at the Kentucky Attorney General’s Office and with the Fayette County Attorney’s Office. Shier graduated from Henry Clay High School and Centre College. He received his Master’s Degree in Justice Administration in 1994 and his law degree from the University of Louisville in 1997.
Gwinn, of Lexington, will lead a civil division consisting of approximately 20 attorneys and legal assistants. The civil division represents the United States in a wide array of litigation filed in the Eastern District of Kentucky, including affirmative efforts to recover taxpayer dollars lost to fraud and the defense of suits seeking damages against federal agencies and officers.
In 2010, U.S. Attorney General Eric Holder presented Gwinn with the “Exceptional Service Award” for her efforts in a case that resulted in the largest pharmaceutical settlement in the Department of Justice’s history at the time. The case involved pharmaceutical giant Pfizer, which agreed in September of 2009 to pay the Government $2.3 billion for illegally marketing drugs to doctors in Kentucky’s Eastern District and several other states.
Gwinn has been with the U.S. Attorney’s Office since 2002, primarily working civil cases. She has prior experience in state and county government. Gwinn received her law degree from the University of Kentucky in 1985.
McBride will oversee the operations of the Fort Mitchell branch office, which has a total of 14 attorneys and legal assistants. McBride has been with the U.S. Attorney’s Office since 2002 and was the office’s criminal division chief from the fall of 2007 through 2009. Prior to coming to the U.S. Attorney’s Office, he served in the Navy as a Lieutenant Commander. McBride received his law degree from the University of Dayton in 1992.
The U.S. Attorney’s Office in the Eastern District of Kentucky prosecutes criminal cases and represents the United States in civil litigation filed in the federal courts of the Eastern District of Kentucky which encompasses 67 counties stretching from southeastern Kentucky to the Ohio border.
U.S. Attorney Ortiz Honored with Leadership AwardRead the Press Release
The Boys and Girls Club of Dorchester held the New England Women’s Leadership Awards (NEWLA) ceremony where they recognized U.S. Attorney Carmen Ortiz and two other remarkable women for their accomplishments both professionally and personally. Massachusetts First Lady Diane B. Patrick, Esq, and Margaret Blood, founder and president Mil Milagros, Inc. and founder of Strategies for Children, were recognized along-side U.S. Attorney Ortiz at the event held on May 9. More than 550 guests attended this year’s 20th anniversary event which was emceed by Lisa Hughes of WBZ-TV.
Since 1992, New England Women’s Leadership Awards (NEWLA) has recognized over 104 women throughout New England for their accomplishments in athletics, business, education, health and human services politics and more. The event was created to provide role models for the young women of Boys and Girls Clubs of Dorchester, in an effort to inspire and build leaders of the future.
Two People Indicted on Charges of Selling Stolen Items on EbayRead the Press Release
St. Louis, MO - JAMES BAGGIO and MARY SUE SCOTT, both of St. Joseph, Missouri, were indicted for allegedly stealing products from local Sam’s Clubs and re-selling them on eBay. The indictment alleges that they stole approximately $100,000 worth of merchandise from Sam’s Club locations in seven different states and sold the products to purchasers across the United States.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
According to the indictment, between February 2011 and October 2012, Baggio and Scott visited Sam’s Club locations in a number of states, including stores in the St. Louis and St. Charles areas. They would select either a large container, such as a trash can, or a cheap item that was packaged in a large box, remove the contents and hide the box on shelves throughout the store. They filled the empty box with more expensive products, usually electronics or a pet product known as Frontline. When they checked out, the cashier scanned the box and charged them for the cheaper item. The items were then allegedly sold on eBay.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, the Des Peres Police Department and Walmart/Sam's Club Global Security. Assistant United States Attorney Stephen Casey is handling the case for the U.S. Attorney's Office.Two Defendants Sentenced for Involvement in International Criminal Network Organized to Sexually Exploit ChildrenRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Canadian and a California man were sentenced by U.S. District Judge S. Maurice Hicks for their roles in an internet-based international criminal child pornography and sexual exploitation network called Dreamboard.
Paul Graham Fry, 55, of Ontario, Canada, was sentenced to 20 years in prison and a lifetime of supervised release. According to the evidence presented at the guilty plea, Fry joined Dreamboard Dec. 2, 2009, and posted 2,722 child pornography posts to the online bulletin board.
Kevin Casey, 40, of Palos Verdes, Calif., was sentenced to 60 months in prison and five years of supervised release. According to the evidence presented at the guilty plea, Casey joined Dreamboard April 27, 2010, and posted advertisements offering to distribute child pornography to other members of the board.
Dreamboard was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection. Fry and Casey were charged in an indictment unsealed on Aug. 3, 2011. The charges are the result of Operation Delego, an ongoing investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard.
A total of 72 individuals, including Fry and Casey, have been charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Forty-seven individuals have pleaded guilty, and one was convicted after trial. Forty-four of the 48 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging from five years to life in prison. Three defendants have received life sentences, including one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.“Members of this board traded graphic images and videos of adults molesting young children – often violently; and created a massive private library of images of child sexual abuse. They encouraged, and incentivized, the creation of child pornography,” Finley said. “My office will continue to work with our federal, state and local partners and international counterparts to identify, investigate and apprehend those who prey on or exploit children. This work is a priority for the Western District of Louisiana, and I hope these sentences send another strong message that we will continue to vigorously prosecute this kind of activity to the fullest extent of the law.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.
The investigation was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers and foreign-national predators whose crimes make them deportable.ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Two Claremont Men Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges two men from the southeastern Minnesota community of Claremont with conspiring to distribute more than 500 grams of methamphetamine. The indictment, which was filed on May 6, 2013, charges Clancy Shane Amy, age 38, and Michael Steven Schoenfelder, age 33, with one count of conspiracy to distribute methamphetamine. In addition, Amy was charged with three counts of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of using and carrying a firearm during and in relation to a drug-trafficking crime. The indictment was unsealed following the defendants’ initial appearance in federal court.
The indictment alleges that from at least August 2012 through March 2013, the defendants conspired with others to distribute more than 500 grams of methamphetamine. It also alleges that Amy distributed approximately one ounce of methamphetamine on January 16, January 24, and again on March 15, 2013. In addition, on April 18, 2013, Amy allegedly possessed with intent to distribute approximately four ounces of methamphetamine while in possession of a 12-gauge shotgun; a nine-millimeter, semi-automatic pistol; and a .22-caliber, semi-automatic handgun.If convicted, the defendants face a potential maximum penalty of life in prison on the conspiracy charge. In addition, Amy faces a potential maximum penalty of 20 years on each distribution count, ten years on the possession count, and a consecutive term of five years to life on the firearm count. Any sentence, of course, would be determined by a federal district court judge.
This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota South Central Drug Investigation Unit and the Southeastern Minnesota Gang and Narcotics Task Force. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Tunisian Man Charged with Visa Fraud Related to Terrorism, Intended to Remain in U.S. to Facilitate an Act of International TerrorismRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), today announced the unsealing of charges against AHMED ABASSI, a Tunisian citizen, for fraudulently applying for a work visa in order to remain in the United States to facilitate an act of international terrorism. ABASSI was arrested on April 22, 2013, and was presented and arraigned on May 2 before U.S. District Judge Miriam Goldman Cedarbaum. Judge Cedarbaum has scheduled a conference in the case for 3:00 p.m. today.
Manhattan U.S. Attorney Preet Bharara said: "As alleged, Ahmed Abassi had an evil purpose for seeking to remain in the United States – to commit acts of terror and develop a network of terrorists here, and to use this country as a base to support the efforts of terrorists internationally. Thanks to the extraordinary vigilance of our prosecutors and law enforcement partners, Abassi has been thwarted and is being prosecuted for his alleged crimes. Protecting the residents of the Southern District, and all Americans, from terrorists is the number one priority of this Office."
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Mr. Abassi came to the United States to pursue terrorist activity and support others in the same shameful pursuit. What Mr. Abassi didn’t know was that one of his associates, privy to the details of his plan, was an undercover FBI agent. The FBI and its Joint Terrorism Task Force partners will continue working tirelessly to protect the country from those who seek to do us harm. “
NYPD Commissioner Raymond W. Kelly said: “The allegations in this case serve as still another reminder that terrorism has not abated, that we must remain vigilant, and that when we do, terrorist plots against us can be thwarted.”
As alleged in the Indictment unsealed today in Manhattan federal court and other documents filed in the case:
ABASSI, who previously resided in Canada, traveled to the United States in mid-March 2013, where he remained until his arrest. While in the United States, ABASSI, who was under surveillance by law enforcement agents at all times, maintained regular contact with an FBI undercover officer (the “UC”), and also met with Chiheb Esseghaier in New York City. Esseghaier, who was recently arrested in Canada and is currently incarcerated there on terrorism charges, was previously radicalized by ABASSI. During ABASSI’s discussions with Esseghaier and with the UC, which were recorded by the UC, ABASSI discussed his desire to engage in terrorist acts against targets in the United States and other countries, and his intention to provide support and funding to organizations engaged in terrorist activity – including the al Nusrah Front, which is recognized by the U.S. Department of State as an alias for al Qaeda in Iraq – and to recruit other individuals for terrorist plots. In particular, ABASSI discussed with the UC a number of individuals known to ABASSI and/or to his associates, whom he described as like-minded and who, in his view, would be willing to engage in terrorist activity.
On April 12, 2013, ABASSI and the UC discussed ABASSI’s efforts to recruit others for terrorist plots, and that he might be able to obtain immigration documents to remain in the United States, purportedly in order to work for the UC’s U.S.-based company. In reality, ABASSI made clear that he wanted to obtain immigration documents and to remain in the United States so that he could engage in “projects” relating to future terrorist activities, including recruitment. Thereafter, ABASSI made false statements on two immigration forms, under penalty of perjury, and subsequently mailed those forms to U.S. Citizenship and Immigration Services for processing.
The Indictment charges ABASSI with two counts of knowingly making false statements in an application to the immigration authorities for a green card and work visa, in order to facilitate an act of international terrorism. Each count carries a maximum term of 25 years in prison.
The charges and arrest of ABASSI are the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which principally consists of agents and detectives of the FBI and the NYPD – and U.S. Immigration and Customs Enforcement. Mr. Bharara also thanked the National Security Division and the Royal Canadian Mounted Police for their ongoing assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys John P. Cronan, Michael Ferrara, and Benjamin A. Naftalis are 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. Ahmed Abassi Indictment
Topeka Man Pleads Guilty to RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to a federal charge of robbing a commercial store , U.S. Attorney Barry Grissom said today.
Alonzo Nathan Lax, 26, Topeka, Kan., pleaded guilty to one count of robbery and one count of brandishing a firearm in a crime of violence. In his plea, Lax admitted that on March 1, 2013, he participated in the robbery of Little Caesars Pizza at 2620 SW Sixth, Suite B, in Topeka.
Sentencing is set for Aug. 5. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery charge; and a penalty of not less than seven years, consecutive to the underlying penalty, on the firearms charge.
Co-defendants include:
Johnnie Lee McCall, who is scheduled for a change of plea hearing May 20.
Jordan Christopher Lucas, who is awaiting trial.
David Pierre Wigfall, who is awaiting trial.Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Three Individuals Sentenced for Selling Meth on the Spirit Lake Indian ReservationRead the Press Release
GRAND FORKS - U.S. Attorney Timothy Q. Purdon announced that on May 9, 2013, Fulton Merrick, Jr., Garrick Mini, and Rayone Sherman, were sentenced before U.S. District Judge Ralph R. Erickson on charges of distribution of a controlled substance.
Merrick, Jr., 37, Devils Lake, N.D., pleaded guilty on Feb. 19, 2013, to distributing a substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in August of 2011. Judge Erickson sentenced Merrick, Jr., to 21 months’ imprisonment to be followed by three years of supervised
release. Merrick, Jr., was ordered to pay a $100 special assessment to the Crime Victim’s Fund.Mini, 32, Devils Lake, ND, pleaded guilty on Feb. 19, 2013, to distributing methamphetamine in August of 2011. Judge Erickson sentenced Mini to 24 months’ imprisonment to be followed by three years of supervised release. Mini was ordered to pay a $100 special assessment to the Crime Victim's Fund.
Sherman, 44, Fort Totten, N.D., pleaded guilty on Feb. 19, 2013, to distributing a substance containing a detectable amount of methamphetamine in May of 2011. Judge Erickson sentenced Sherman to 13 months’ imprisonment to be followed by three years of supervised release. Sherman was ordered to pay a $100 special assessment to the Crime Victim's Fund.
The incidents occurred on the Spirit Lake Indian Reservation.
The case was investigated by the Drug Enforcement Administration, Bureau of Indian Affairs, North Dakota Bureau of Criminal Investigation, and Devils Lake Police Department.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Three Holyoke Residents Charged with Oxycodone ConspiracyRead the Press Release
BOSTON – Three Holyoke residents were charged today with conspiring to possess with intent to distribute oxycodone.
Angel Luis Medina, 31, Doel Vega, 24, and Luz Eneida Morales, all residents of Holyoke, were indicted with conspiring to possess with intent to distribute the prescription drug oxycodone.
The indictment alleges that between January 2009 and April 11, 2013, the defendants were part of a conspiracy to possess with intent to distribute oxycodone, a Schedule II controlled substance.
The charge of conspiring to possess with intent to distribute the prescription drug oxycodone carries a statutory maximum penalty of 20 years in prison, to be followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; John J. Arvinitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kevin Niland, Postal Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
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.
Ten Indicted in Operation Black WidowRead the Press Release
United States Attorney Brendan V. Johnson announced today that ten individuals have been arrested and indicted in federal court as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Operation Black Widow has been a multi-year investigation and has resulted in the following indictments:
Sean Jason Romanjenko, 39, of Deadwood: Charged with Felon in Possession of Firearm. If convicted, Romanjenko could face a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Tracy Kay Voss, 31, of Watertown: Charged with Making False Statements in the Acquisition of Firearms. If convicted, Voss could face a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Todd Karl Bramer, 46, of Watertown: Charged with Possession of Firearms by a Prohibited Person. If convicted, Bramer could face a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Robert Gray Graham, 72, of Watertown: Charged with Wire Fraud. If convicted, Graham could face a maximum sentence of 30 years in prison, a $1 million fine, or both.
Eric Allen Block, 37, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Patricio Rodriguez Pena, 55, of Sioux Falls: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Robin Lee Engel, 41, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Christopher McDaniel Schmidt, 39, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Richard Donald Ruml, 42, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Chad Everic Haight, 40, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
If convicted, Block, Pena, Engel, Schmidt, Ruml, and Haight could face a mandatory minimum of 10 years in prison, maximum life, a $10 million fine, or both.
"Operation Black Widow is an extensive criminal investigation into a wide variety of alleged criminal activity, including illegal gun and drug trafficking. The Operation is led by the ATF with significant assistance from other law enforcement agencies including the Watertown Police Department, the Codington County Sheriff, the SD Division of Criminal Investigation, and the Drug Enforcement Administration,” said U.S. Attorney Johnson.
Special Agent in Charge Scott Sweetow of the ATF St. Paul Field Division added, "This ongoing proactive investigation has resulted in the arrest of several individuals who have allegedly violated numerous federal and state laws, including violent crimes, in the state of South Dakota. ATF will continue to pursue those who pose a danger to our community.”
The charges contained in the indictments are merely accusations, and all of the individuals named are presumed innocent unless and until they are proven guilty. The case is being prosecuted by Assistant U.S. Attorney John E. Haak.
Pena, Block, Haight, and Romanjenko were detained. All other defendants were released on conditions.
Tax Preparer Charged with Filing False Tax Returns on Behalf of His ClientsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announced that Efrain Felipe, 41, of Hallandale Beach, was charged in a two count Information with making and subscribing a false tax return on behalf of a client, and aiding and abetting, in violation of Title 26, United States Code, Sections 7206(1) and 7206(1). Defendant Felipe made his initial appearance in federal court yesterday before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
According to the charges, Felipe operated a tax preparation business in Broward County, and prepared fraudulent tax returns on behalf of his customers by claiming that some customers were entitled to a First Time Home Buyers Credit (FTHBC) of $7,500.00, for properties they did not own or for properties that were purchased years earlier. Felipe also falsely claimed the FTHBC on his own personal tax return.
If convicted, Felipe faces a maximum statutory sentence of up to 3 years in prison on each count. Trial has been set for June 17, 2013 before U.S. District Judge Robert N. Scola, Jr. in Fort Lauderdale.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
An Information is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Statement of United States Attorney Loretta E. Lynch Regarding the Sentencing of Former New York State Senator Shirley HuntleyRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, former New York State Senator Shirley Huntley was sentenced to one year and one day in prison, followed by three years of supervised release. Huntley previously pleaded guilty to engaging in a mail fraud conspiracy. As part of her sentence, Huntley was ordered to make restitution of $87,700 to the New York State Department of Education for funds she embezzled, and $1,000 in connection with an unrelated bribery scheme involving a cargo-handling business at John F. Kennedy International Airport.
“The crux of this case has always been the defendant Shirley Huntley’s greed and self-interest. Promising to provide much needed assistance to the parents of New York City public schoolchildren, she set up a nonprofit organization that received state funding. Instead of serving the parents, Huntley helped herself and her family to state funds. Shirley Huntley violated the public trust and betrayed her constituents by stealing public funds for her own benefit,” stated United States Attorney Lynch. “Today’s sentence should send a clear message: we will bring to justice those who corrupt the system of laws upon which our community relies.”
Spencerport, New York - Indictment announced of two individuals and Crane-Hogan Structural Systems, Inc.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today the Indictment of Mark Pullyblank, 52, of Caledonia, NY, William Clements, 52, of Victor, New York, and Crane-Hogan Structural Systems, Inc., 3001 Brockport Road, Spencerport, New York, which employs Pullyblank and Clements.
Crane-Hogan is a company engaged in hydro-demolition in which high pressure water is used to remove concrete from buildings such as parking garages prior to resurfacing. The waste-water from the hydro-demolition process contains a slurry of industrial waste including remnants of concrete which has a very high pH. Mark Pullyblank and William Clements were project supervisors in charge of demolition projects at the Binghamton Governmental Center Parking Garage and Johnson City Wilson Hospital Parking Garage throughout 2008 and 2009.
The Clean Water Act was enacted into law in 1972. Since that time it has prohibited the discharge of pollutants into waters of the United States without approved waste-water treatment and a permit, or into a permitted publically owned treatment works (POTW), unless in compliance with an approved pretreatment program. The Susquehanna River is a navigable water of the United States that provides drinking water to numerous individuals. It drains into the Chesapeake Bay and into the Atlantic Ocean.
The three defendants are charged in a nine count felony Indictment with discharging untreated industrial waste-water from a hydro-demolition process without a permit in violation of the Clean Water Act. More specifically, Mark Pullyblank and Crane-Hogan are charged in counts one through six with discharging untreated industrial waste-water directly into the Susquehanna River from a hydro-demolition project conducted at the Binghamton Governmental Center Parking Garage. Crane-Hogan is charged in Count Seven with similar industrial waste-water discharges into the Susquehanna River from the Wilson Parking Garage, Johnson City, New York. William Clements, Mark Pullyblank, and Crane-Hogan are charged in counts 8 and 9 with discharging industrial waste-water into the Binghamton-Johnson City Joint Sewage Treatment Plant, without an approved industrial pretreatment permit, in violation of the Clean Water Act.
The allegations in the Indictment are mere accusations and all persons are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by Investigators with the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigations and Special Agents of the Environmental Protection Agency. Assistance with this case has been provided by the New York State Office of General Services, the Binghamton City Engineer, and the Binghamton-Johnson City Publically Owned Treatment Works. The case is being prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-448-0726.
Spencer, Iowa Couple Plead Guilty to Meth ConspiracyRead the Press Release
A Spencer, Iowa, couple who conspired to manufacture and distribute methamphetamine pled guilty May 8, 2013, in federal court in Sioux City.
Vicki Shannon, 50, and John Gekas, 46, from Spencer, Iowa, were convicted of conspiring to manufacture and distribute methamphetamine.
At the plea hearing, Shannon and Gekas each admitted their involvement in a conspiracy from about 2010 through January 2013 that manufactured and distributed more than 50 grams of actual (pure) methamphetamine. According to pseudoephedrine purchase logs obtained in the investigation, starting in January 2010 through December 2012, Gekas acquired at least 96.48 grams of pseudoephedrine and starting in August 2010 through January 2013, Shannon acquired at least 136.9 grams of pseudoephedrine for the manufacture of methamphetamine.
Sentencing before United States District Court Judge Mark W. Bennett will be set after presentence reports are prepared. Shannon and Gekas were taken into custody by the United States Marshal after the guilty pleas and will remain in custody pending sentencing. Each face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a special assessment of $100, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement and the Clay County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4007.
South Bay Man Sentenced to More Than 2 Years in Prison for Stealing Government Money in Tax Fraud SchemeRead the Press Release
Tampa, FL - U.S. District Judge Mary S. Scriven sentenced Larry Lee Northern, Jr. to 32 months in federal prison for theft of government funds and aggravated identity theft. Northern pleaded guilty on January 19, 2013.
According to court documents, on October 6, 2011, Northern was stopped by law enforcement for excessive speeding. During the stop, he was found to be in possession of illegal narcotics and various prepaid debit cards. Specifically, Northern possessed 15 prepaid debit cards in the names of various individuals, as well as 17 Wal-Mart Money Cards. In addition, Northern had internal corporate documents from a local healthcare company. The documents contained the personal identification information of numerous individuals. The individuals were later identified as current or former clients of a healthcare company. Northern also had $15,700.00 in cash.
Subsequent investigation determined that 12 of the 15 prepaid debit were credited with U.S. Treasury income tax refunds. The refunds on the prepaid cards, totaling $93,879.00, were obtained as a result of the filing of fraudulent income tax returns. The fraudulent returns were filed in the names of individuals who had not given Northern permission to file the returns for them. Of the 17 Wal-Mart Money Cards possessed by Northern, nine of the cards had a total of $65,463.00 loaded onto them. These were also determined to be the proceeds of fraudulently filed income tax returns.
This case was investigated by the Internal Revenue Service Criminal Investigation, the U. S. Department of Health and Human Services, Office of the Inspector General, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Sentences for May 02 - 09, 2013Read the Press Release
Cecilio Cisneros-Cuapio, 32, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 9, 2013, for illegal re-entry of a previously deported alien into the United States. Cisneros-Cuapio was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Alem Sanchez-Rangel, 36, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 9, 2013, for possession with intent to distribute 500 grams or more of methamphetamine. Sanchez-Rangel was arrested in Albany County, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Guillermo Francisco Barrera-Corona, 47, of Glenrock, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 6, 2013, for illegal re-entry of a previously deported alien into the United States. Barrera-Corona was arrested in Glenrock, Wyoming. He received time served plus ten day, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Ismael Ramirez-Andrade, 22, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 6, 2013, for illegal re-entry of a previously deported alien into the United States. Ramirez-Andrade was arrested in Gillette, Wyoming. He received time served plus ten day, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Clarence Darling, 50, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 29, 2013, for being a felon in possession of a firearm. Darling was arrested in Casper, Wyoming. He received 12 months plus one day of imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Casper Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service.
Michael J. Plake, 48, of West Lafayette, Indiana, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 6, 2013, for conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Plake appeared via a summons. He received 30 months of imprisonment, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment and restitution in the amount of $1,693,704.77. This case was investigated by the U.S. Postal Service and the Federal Bureau of Investigation.
Sergio Guzman-Ceja, 25, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 2, 2013, for conspiracy to possess with intent to distribute and to distributing at least 50 grams but less than 150 grams of methamphetamine. Guzman-Ceja was arrested in Rock Springs, Wyoming. He received 87 months of imprisonment, to be followed by four years of supervised release and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Rochester Man Pleads Guilty to Software Mail Fraud SchemeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Raymond Locklin, 29, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to conspiracy to commit mail fraud. The charge carries a maximum penalty of 20 years in prison, a fine of 250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant, a former employee of Sutherland Global Services, conspired with co-defendant Christi Meehan, to obtain copies of Intuit Inc. software. The two then sold the software online. Locklin and Meehan placed false orders for free copies of replacement Intuit software, including TurboTax and Quicken, while employed by Sutherland Global Services. After receiving the software at addresses in Rochester, the defendants sold the software online, including on eBay.com, to customers throughout the United States. The defendants then kept the proceeds for themselves which resulted in a loss to Intuit of approximately $260,000. Christi Meehan previously pleaded guilty to conspiring to commit mail fraud.
The plea is the culmination of a joint investigation on the part of Inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland, Boston Division, and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Locklin will be sentenced on scheduled for August 13, 2013 at 10 a.m. before Judge Larimer. Co-defendant Christi Meehan will be sentenced by Judge Larimer on July 16, 2013 at 10 a.m.
Plant City Woman Sentenced to Prison for Tax FraudRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich sentenced Rhonda Yvette Brooks to three years and six months in federal prison for tax fraud and aggravated identity theft. As part of her sentence, the court also ordered a forfeiture money judgment and restitution order in the amount of $23,096 for funds traceable to proceeds of the offense. Brooks pleaded guilty on February 20, 2013.
According to court documents, Brooks submitted fraudulent tax returns electronically through Turbo Tax from her residence. She also submitted tax returns for several fictitious identities provided by the IRS in an undercover operation. Overall, Brooks submitted fraudulent tax returns totaling more than $70,000.
This case was investigated by members of the Tampa Bay Alliance, including IRS-Criminal Investigation and the Plant City Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Philadelphia Man Charged with Hobbs Act Robbery and Gun OffensesRead the Press Release
Anthony Robinson, 39, of Philadelphia, Pennsylvania, was charged today by indictment with two counts of robbery which interferes with interstate commerce and two counts of using a firearm during a crime of violence, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of life imprisonment, a mandatory minimum sentence of 32 years imprisonment, up to 5 years supervised release, a $1,000,000 fine, a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Passaic County, N.J., Man Charged with Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, N.J., man was arrested today after law enforcement officers discovered alleged child pornography at his residence, U.S. Attorney Paul J. Fishman announced.
Anthony Chiampi, 48, of Totowa, N.J., is charged by criminal Complaint with one count of possessing images of child sex abuse. Chiampi is scheduled to appear today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the criminal Complaint;
Chiampi is a Megan’s Law registrant, having been previously convicted in New Jersey Superior Court, Passaic County, for endangering the welfare of a child. He is subject to community supervision for life. On March 14, 2013, as part of that supervision, N.J. Division of Parole (“N.J. Parole”) officers conducted a home visit and discovered 63 disks that contained alleged images and videos depicting child sexual abuse, including material that involved prepubescent minors.
Because of his prior conviction, Chiampi faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of 20 years, and a $250,000 fine.U.S. Attorney Fishman credited the N.J. State Parole Board and special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-187
Defense counsel:Chiampi, Anthony Complaint
Owner of Multiple Real Estate Companies Pleads Guilty to Two Mortgage Fraud Conspiracies Involving More Than $20 MillionRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Oscar Torres (47, Weston) pleaded guilty today to participating in two separate mortgage fraud conspiracies. He faces a maximum penalty of 30 years in federal prison on each of the two counts.
According to the plea agreement, Torres was the owner and operator of a real estate business called Realty Alliance, LLC, and a mortgage brokerage company called Synergy Lending Group. In addition, Torres was the co-owner of a title agency called Title Executives of Broward, Inc. In or about 2005, Realty Alliance, Synergy Lending, and Title Executives (“Torres Companies”) were all consolidated in the same business location in Weston, Florida. These real estate businesses operated throughout Florida.
The first conspiracy began in June 2006, and continued through April 2007. Torres conspired with others to execute a scheme to defraud various financial institutions. The ultimate goal of the fraud scheme was to sell condominium units at The Arbors at Carrollwood, a 390-unit condominium complex located at 3939 Ehrlich Road, in Tampa. During the time frame of the conspiracy, The Arbors was in the process of being converted from an apartment complex into a condominium complex.
Torres and his co-conspirators directed their fraudulent activities at Corus Bank, N.A., and a variety of FDIC-insured and non-FDIC insured mortgage lending businesses (the “mortgage lenders”) for purposes of influencing them to approve millions of dollars in mortgage loans. In June 2006, the developers hired the Torres Companies to sell condo units at The Arbors. To entice buyers to purchase the condo units, the conspirators offered unlawful cash payments to buyers, either before or after closing. These cash payments were concealed from the lenders that were funding loans to individual buyers.
To induce mortgage lenders to approve loans for the purchase of condo units at The Arbors, the conspirators made material misrepresentations and omitted material facts from purchase and sale agreements, Uniform Residential Loan Applications, and on the HUD-1 Settlement Statements. The false and fraudulent statements included, the property’s actual purchase/sale price; the buyers intended use of the property; the buyer’s employment, gross monthly income, assets, liabilities, and bank account balances; the source of down payments and closing costs; and/or the actual disbursement of the loan proceeds at the closing. As a result of these false and fraudulent statements, Torres and his co-conspirators caused and induced the mortgage lenders to fund millions of dollars in mortgage loans. Ultimately, these mortgage lenders sustained a loss of more than $15 million as a result of this mortgage fraud conspiracy.
The second conspiracy began around the summer of 2006, and continued through about March 2007. Torres conspired with others to execute a scheme to defraud various financial institutions in connection with the sale of condominium units at The Preserve at Temple Terrace, a 392-unit condominium complex located at 7735 Fletcher Avenue, in Temple Terrace. During the time frame of the conspiracy, The Preserve was also being converted from an apartment complex into a condominium complex. The Preserve hired the Torres Companies to sell condo units at the complex.
Torres and his co-conspirators marketed the condo units at The Preserve with a series of “buyers incentives,” including a rental income guarantee, property management at no additional cost, payment of homeowner’s association fees, limited escrow deposit due at closing, and a 3% closing cost credit. In reality, the conspirators enticed buyers by offering cash payments. For each transaction, the enticements amounted to thousands of dollars paid in cash to buyers before and after closing. These payments to buyers amounted to more than $1 million in undisclosed cash incentives. The conspirators intentionally and fraudulently concealed these cash payments from the lenders through the use of a shell company called Capital Property Investments, LLC.
Torres and his co-conspirators again made false and fraudulent statements on various mortgage-related documents. In this scheme, the mortgage lenders who financed the purchase of condo units at The Preserve sustained a loss of approximately $5.6 million.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Owner of Mississippi River Construction Company Sentenced to Jail for Violating the Clean Air ActRead the Press Release
Franklin A. (“Al”) Bieri, 54, of Lebanon, IL, was sentenced in federal court today for violating the Clean Air Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The court ordered Bieri to serve an eight-month sentence with five months’ imprisonment and three months’ home confinement, all to be followed by three years’ supervised release. The court also ordered Bieri to pay a fine of $3,000 and a special assessment of $100.
The charges stem from Bieri’s activities at the Emerson Electric Facility, a seven-acre site in Washington Park, which Bieri purchased in order to demolish and salvage the buildings on the site. Bieri knew that the buildings on the site contained asbestos, but, in April 2010, he used untrained workers who failed to use proper removal and disposal procedures, such as wetting asbestos to limit airborne emissions and proper labeling of asbestos waste to alert others to the danger and ensure the waste went to an appropriate section of the landfill. Bieri admitted that he failed to provide written notification to the Illinois Environmental Protection Agency at least ten working days prior to beginning asbestos stripping and removal work, an offense punishable under the Clean Air Act. Asbestos is a declared hazardous air pollutant by the United States Environmental Protection Agency.
At sentencing, the district court told Bieri that this was “a profoundly serious crime” and that Bieri put “people’s lives on the line.”
“This well-heeled businessman tried to save a few bucks by sending in untrained and improperly protected people, then had them dispose of this dangerous material improperly, exposing unsuspecting landfill workers.” United States Attorney Wigginton stated. “This conduct is breathtaking, literally. This jail sentence should demonstrate that no one is above the law, and my office will continue to aggressively pursue those who threaten the environment and public safety.”
The investigation was conducted by the United States Environmental Protection Agency and the Illinois Environmental Protection Agency. The prosecution of the case is being handled by Assistant United States Attorneys Kevin F. Burke and William E. Coonan.
If you suspect an environmental crime, please call the United States Environmental Protection Agency’s hotline at 800.621.8431.
Newport News Man Sentenced for Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Glenn Rodger McGuire, 41, of Newport News, Va. was sentenced today to 188 months in prison and a lifetime of supervised release for receipt of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Henry C. Morgan, Jr.
McGuire pled guilty on February 6, 2013. According to court documents, McGuire was a Cox Communications employee who set up his neighbors’ wireless router for a fee. During an FBI investigation the neighbors’ wireless router was identified as possibly being linked to a computer that was accessing and downloading child pornography. Agents contacted the neighbors believing their computer was being used, but no child pornography was found. The agents then went to the home of McGuire and after obtaining McGuire’s consent, seized his computers. Following execution of a search warrant, a forensic exam was conducted which revealed over 6,000 images of child pornography.
This case was investigated by FBI. Assistant United States Attorney Lisa R. McKeel prosecuted this case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Jersey Man Sentenced for Bogus Read Estate SchemeRead the Press Release
PHILADELPHIA - William Kevin Kelly, 59, of Ocean City, NJ, was sentenced today to 60 months in prison for a real estate scam that victimized clients and investors in the Lancaster area. Kelly pleaded guilty on January 22, 2013 to wire fraud and money laundering charges. Through businesses such as Homelynx, Bantry Property Solutions, Multi County Properties, and For Sale by Seller Plus, which he owned and operated, Kelly - who had his real estate license revoked - promised clients and investors quick returns or results on their funds. After the victims turned over their funds, Kelly would take their money, spend it for personal purposes, and string them along with various excuses, and provide them with checks that bounced. As a result of his scheme, Kelly has victimized at least 40 clients of over $718,700.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered Kelly to pay restitution in the amount of $718,700 and ordered three years of supervised release.
The case was investigated by the Federal Bureau of Investigation and the Elizabethtown Borough Police Department It was prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mission Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Frank Swalley, age 29, was indicted by a federal grand jury on July 18, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 8, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Swalley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Swalley was remanded to the custody of the U.S. Marshal pending trial. A trial date is set for July 9, 2013.
Metro-West Drug Traffickers Charged in Oxycodone Distribution RingRead the Press Release
BOSTON – Fifteen individuals were charged today with conspiracy to distribute Oxycodone.
Charged in a criminal complaint with the drug conspiracy were Michael Bourque, 42, of Natick; Robert Hagenaars, 37, of Waltham; Brian Chisholm, 44, of Newton; Barry Goolst, 52, of Waltham; Phillip Goolst, 49, of Waltham; Thomas Ehwa, 26, of Waltham; Frank McGuire, 42, of Natick; Michael Roy, 32, of Milford; Christopher Yancey, 41, of Natick; Corey Assencoa, 43, of Hopkinton; Sean Cotter, 41, of Acton; Mark Newton, 27, of Hudson; Mark Ouellette, 43, of Shirley; John Kinney, 29, of Woburn; and Raymond Panaggio, 44, of Newton. All were arrested this morning.
According to the criminal complaint affidavit, a Court-authorized wiretap was utilized to intercept communication between the defendants over the course of approximately four months. It is alleged that Bourque, the owner and operator of DEX Corporation, a shipping company located in Natick, used DEX Corporation as a front for his drug trafficking operations. The criminal complaint affidavit details Bourque’s distribution of thousands of Oxycodone (Percocet) pills to both re-distributors and drug customers. Bourque is alleged to have acquired Oxycodone from multiple sources of narcotics supply, and utilized Yancey, Phillip Goolst, Barry Goolst, and McGuire, among others, as “runners” to distribute pills and collect drug proceeds.
On March 29, 2013, it is alleged that Ouellette and Cotter distributed 700 Oxycodone pills to Bourque. In a search of Ouellette’s home, law enforcement recovered 1,500 to 2,000 pills of suspected Oxycodone, over $30,000 in cash, and a loaded firearm.
According to court documents, from at least February 2011 through April 2013, Bourque, Hagenaars, Chisholm, Barry Goolst, Phillip Goolst, Ehwa, McGuire, Roy, Yancey, Assencoa, Cotter, Newton, Ouellette, Kinney, and Panaggio purchased, sold, and/or distributed wholesale quantities of Oxycodone.
“The U.S. Attorney’s Office is committed to working alongside our law enforcement partners to investigate and prosecute those who wreak havoc in Massachusetts cities and towns through the distribution and sale of illegal drugs,” said United States Attorney Carmen M. Ortiz. “We will continue to keep a vigilant eye over the communities and neighborhoods that we serve in an effort to ensure the highest degree of safety and quality of life for all residents. This investigation exemplifies the commitment and cooperation between all levels of law enforcement which strive, above all else, to protect their communities from crime and those that perpetrate illegal activities.”
“With these arrests today we hope to send a strong message that trafficking and distributing prescription pain medication will not be tolerated and we will utilize the full breadth of our law enforcement resources to bare. We are committed to identifying, investigating, arresting, prosecuting and sending to prison those responsible for this illegal drug trafficking,” said Special Agent in Charge Arvanitis. “This case highlights the strengths of our law enforcement partnerships and the dedication of the men and women who participated in the investigation.”
The charge of conspiracy to distribute Oxycodone carries a statutory maximum penalty of 20 years in prison, a lifetime of supervised release and a $1 million fine.
U.S. Attorney Ortiz; John J. Arvanitis, SAC of the Drug Enforcement Administration, Boston Field Division; and Middlesex County District Attorney Marian T. Ryan, made the announcement today.
The case was investigated by DEA Boston; Federal Bureau of Investigation (Boston); Homeland Security Investigations (Boston); Internal Revenue Service (Boston); Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Police Departments of Framingham, Waltham, Millis, Natick, Newton, Lexington, Arlington, Holliston, Boston, Stoughton, Haverhill, Shirley, Hopkinton, Watertown, Braintree, Woburn, Acton, Milford; Massachusetts State Police; Metropolitan Law Enforcement Council (MetroLEC); and Butte (CA) Interagency Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorneys Neil J. Gallagher and Michael I. Yoon of Ortiz's Organized Crime Drug Enforcement Task Force.
The details contained in complaint affidavit are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Man Pleads Guilty to Trafficking Stolen VehiclesRead the Press Release
PITTSBURGH - A Maryland resident pleaded guilty in federal court to a charge of conspiracy to transport stolen motor vehicles across state lines, United States Attorney David J. Hickton announced today.
Rodney D. Deminds, Jr., 23, of Belcamp, Md., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that, on at least 14 occasions between July of 2011 and April of 2012, Deminds, along with Harvey Leemore, Collin D. Powell and Trea C. Powell, and at least one other individual, traveled from Baltimore, Md., to various retail dealerships in Pennsylvania and Virginia for the purpose of stealing motorcycles and tractors from those retail dealerships. After stealing these items, the thieves took the items back to Baltimore and sold them. The items were stolen from retail dealerships located in Gibsonia, Ebensburg, Gaines and Altoona, Pa., and in Purcellville, Va. The value of the stolen items exceeded $200,000.
Judge McVerry scheduled sentencing for Aug. 15, 2013, at 10:30 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Western PA Auto Theft Task Force, the Federal Bureau of Investigation, and detectives from Harford County, Maryland, conducted the investigation that led to the prosecution of Deminds.
Manhattan Man Pleads Guilty to Armed RobberyRead the Press Release
TOPEKA, KAN. – A man from Manhattan, Kan., has pleaded guilty to taking part in an armed robbery that set in motion a series of events leading ultimately to a deadly arson in which a Kansas State University researcher died, U.S. Attorney Barry Grissom said today.
Dennis James Denzien, 20, Manhattan, Kan., pleaded guilty to one count of aiding and abetting a robbery. In his plea, Denzien admitted that on Feb. 6, 2013, he drove co-defendant Frank Joseph Hanson to Dara’s Fast Lane at 1816 Claflin Road in Manhattan. Wearing a mask and brandishing a revolver, Hanson entered the store. After Hanson robbed the store, Denzien drove him away from the scene of the robbery.
Later that day, Riley County Police Department officers served two search warrants at a residence where Denzien lived with another defendant, Patrick Martin Scahill. Ultimately, investigators recovered a mask, gloves, a backpack and a firearm used in the robbery.
Manchester Man Sentenced to 30 Months in Prison for Drug and Firearms OffensesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that ROBERT GENTILE, 76, of Manchester, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 30 months of imprisonment, followed by three years of supervised release, for controlled substances and firearms offenses. GENTILE also was ordered to spend the first three months of his supervised release in home confinement.
According to court documents and statements made in court, in October and November 2011, GENTILE and his associate, Andrew Parente, distributed Schedule II controlled substances, including oxycodone, in a form commonly known as OxyContin, and hydromorphone, in a form commonly known as Dilaudid.
GENTILE was arrested on February 10, 2012. Subsequent court-authorized searches of his Manchester residence resulted in the seizure of 200 Percocet tablets packaged for distribution, two .38 caliber Smith & Wesson revolvers, a .22 caliber North American Arms revolver, a .22 caliber derringer, a 12 gauge pistol-grip shotgun, numerous rounds of ammunition, boxes of 12 gauge shotgun shells, five handgun silencers, other items and approximately $22,000 in cash.
GENTILE is a previously convicted felon and, under federal law, it is illegal for a person with a previous felony conviction to possess any firearm or ammunition that has traveled in interstate or foreign commerce. Further, it is illegal under federal law for any person to possess a silencer for a firearm unless that silencer has been properly registered with the National Firearms Registry in Washington, D.C.
GENTILE has been detained since his arrest on February 10, 2012. On November 14, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute a Schedule II controlled substance, five counts of possession with intent to distribute a Schedule II controlled substance, one count of possession of firearms by a previously convicted felon, one count of possession of ammunition by a previously convicted felon, and one count of possession of unregistered silencers.
On January 3, 2013, Parente, 76, of Hartford, pleaded guilty to one count of possession with intent to distribute and distribution of a Schedule II controlled substance. He awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Health and Human Services, Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Man Sentenced to 81 Months in Prison for Traveling from France to the United States to Have Sex with Under-Aged ChildRead the Press Release
WASHINGTON - Jean Frederic Godoc, 30 of Paris, France, was sentenced today to an 81-month prison term after earlier pleading guilty to traveling to the United States to have sex with an under-aged child and one count of transportation of child pornography.
The sentencing, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, Cathy L. Lanier, Chief of the Metropolitan Police Department, and Earl L. Cook, Chief of the Alexandria, Va., Police Department.
Godoc, who pled guilty in May 2012, was sentenced by the Honorable Beryl A. Howell. Upon completion of his prison term, he will be placed on 10 years of supervised release. Godoc also must register as a sex offender for 25 years.
According to a factual proffer of evidence presented during the plea proceeding, between Sept. 1, 2011, and Dec. 22, 2011, a detective from the Alexandria, Va. Police Department, who was operating undercover as part of a Virginia statewide law enforcement initiative, entered a website which is frequented by those who have a sexual interest in children. Godoc and the undercover officer communicated online over the three-month period, and the defendant indicated an interest in traveling to the United States and having a sexual relationship with an underage girl. In arranging the visit, Godoc offered to bring presents for the girl and her younger sister. On Dec. 22, 2011, Godoc boarded a plane in Paris and traveled to the United States. Once he arrived, bearing his computer and the promised gifts, he was arrested.
A search of Godoc’s computer revealed that the defendant had transported several hundred images of child pornography to the United States.
This case was the result of collaboration by the FBI’s Child Exploitation Task Force, the Virginia Attorney General’s Office, the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, the Alexandria City Police Department, the Virginia Department of State Police, and the MPD, with assistance from other law enforcement agencies.
The prosecution was brought as part of the Department of Justice's Project Safe Childhood initiative. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, Chief Lanier and Chief Cook praised the work of Alexandria Police Department Detective Betty Sixsmith. They also commended the work of the Virginia Attorney General’s Office and the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, as well as the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. Finally, they commended the efforts of those who handled the case at the U.S. Attorney’s Office, including Criminal Investigator John Marsh, Legal Assistant Charmonique Price, and the Asset Forfeiture and Money Laundering Section. Finally, they praised the work of Assistant U.S. Attorney Julieanne Himelstein, who prosecuted the case.
13-163Man Claiming to Be Son of the President of the Congo Indicted for Defrauding Victims Out of $1.6 MillionRead the Press Release
SAN FRANCISCO – Earlier this week a federal grand jury in San Francisco indicted Blessed Marvelous Herve, a/k/a Rodrigue Herve Ngandou, a/k/a Herve Rodrigue Ngandou, a/k/a Blessed Roll Herve, of San Francisco, for wire fraud, United States Attorney MELINDA HAAG announced.
According to the Indictment, Herve, 41, devised and executed a scheme to defraud victims out of approximately $1.6 million. Herve claimed that his father was the President of the Congo and a multi-billionaire, but that the United States government had seized Herve’s assets, in excess of $43,000,000. Herve promised to pay bonus sums of more than $1,500,000 to victims in exchange for the victims’ financial support of Herve’s quest to obtain the $43,000,000 that the government purportedly had seized.
Herve also claimed that as a result the federal court case involving his seized funds, he was sent to federal prison from 2009 through 2012. During this time, Herve solicited funds from victims to assist with his alleged ongoing court proceedings and his incarceration. Herve again promised full repayment of victims’ money plus large bonuses upon the completion of his federal case and release of his funds. Specifically, in October 2012, Herve solicited and received $47,000 from a victim by falsely claiming that he needed the money to pay the Internal Revenue Service to satisfy the final judgment entered against him.
According to a criminal complaint filed in the same matter further, one of the victims was a real estate agent to whom Herve promised that his father, the multi-billionaire president of the Congo, would purchase tens of millions of dollars in real estate. That victim gave Herve tens of thousands of dollars to assist in the purported father’s real estate tours, such as the rental of bulletproof limousines. The criminal complaint alleges that to lure in the victims and bolster his credibility, Herve showed various documents, such as a letter written to him from a United States Senator, copies of awards of recognition he received from the City and County of San Francisco, a certificate of Special Congressional Recognition from a Member of Congress. When the victims ran out of money, Herve claimed that he was being deported to Puerto Rico and was not heard from again.
Herve, born in the Republic of Congo, was granted asylum in the United States in 1999 and became a United States citizen earlier this year.
Herve was arrested on a criminal complaint on April 24, 2013, in San Francisco, and he made his initial appearance in federal court in San Francisco the following day. He is currently being held in custody. The defendant's next scheduled appearance is May 22, 2013, at 11:00 a.m. for further detention proceedings before Magistrate Judge Nathanael Cousins. Herve’s first appearance in district court is scheduled before Judge John Tigar on May 31, 2013 at 9:30 a.m.
The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is 20 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elizabeth Garcia. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the United States Department of Homeland Security.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Herve must be presumed innocent unless and until proven guilty.
Long Island Doctor Sentenced to 30 Months’ Imprisonment for Distribution of Oxycodone and Income Tax EvasionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Frank Telang, a Long Island doctor, was sentenced to 30 months in prison by United States District Court Judge Joseph F. Bianco. Telang previously pleaded guilty to illegally distributing oxycodone, a highly addictive prescription pain killer, outside the scope of his professional practice and not for any medical purpose, as well as income tax evasion for failing to report the cash income that he received from providing the oxycodone prescriptions. Telang was also ordered to forfeit $10,500.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York, Thomas V. Dale, Commissioner, Nassau County Police Department, Joseph A. D’Amico, Superintendent, New York State Police, and Toni Weirauch, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York.
Between April 13, 2011 and October 20, 2011, Telang, who maintained offices in Bethpage and Port Jefferson Station, New York, sold prescriptions for oxycodone and other controlled substances to undercover DEA task force officers posing as patients without performing any medical examination. In addition, on the night of December 6, 2011, members of a DEA Tactical Diversion Squad, comprising DEA agents, Nassau County Police Department detectives, and New York State Police investigators, observed Telang meeting with a purported patient in a parking lot near the Long Island Expressway. When approached by law enforcement, Telang crumpled up a prescription that he had been holding and attempted to hide it in his vehicle. Telang was interviewed that night by law enforcement and subsequently returned to his office in Port Jefferson Station early the next morning where he altered the medical file of that purported patient.
Telang also failed to pay taxes on the cash he received for unlawfully providing the prescriptions.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals but only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug, and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
“Telang abandoned his oath to ‘do no harm’ for the motto ‘where’s the money.’ His sale of prescriptions for this addictive and deadly drug in exchange for cash not only violated his oath but constituted a serious crime,” stated United States Attorney Lynch. “This sentence should serve as a warning to any physicians who would engage in such conduct.” Ms. Lynch thanked the Drug Enforcement Administration, the Nassau County Police Department, the New York State Police, and the Internal Revenue Service for their invaluable assistance in the investigation.
In January 2012, the United States Attorney’s Office for the Eastern District of New York and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case was prosecuted by Assistant United States Attorney Allen L. Bode.
The Defendant:
Name: FRANK TELANG
Age: 58Lawyer Sentenced to Prison Term for Stealing Money Intended for His Clients-Scheme Cost Victims More Than $100,000-Read the Press Release
WASHINGTON – Deairich R. Hunter, 48, an attorney from Washington, D.C., was sentenced today to six months in prison, to be followed by six months of home detention, on a federal charge stemming from his theft of more than $100,000 in payments from insurance companies that were intended to settle some of his clients’ disability and personal injury claims.
The sentencing took place in the U.S. District Court for the District of Columbia and was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and William P. White, Commissioner of the District of Columbia Department of Insurance, Securities, and Banking.
Hunter pled guilty in January 2013 to a charge of theft or embezzlement in connection with health care. He was sentenced by the Honorable Beryl A. Howell. The judge ordered Hunter to pay restitution and also entered a $73,901 forfeiture money judgment against him.
According to a statement of offense, signed by the defendant as well as the government, from August 1998 until April 2009, Hunter was a member of the Bar of the District of Columbia Court of Appeals and practiced law in the District of Columbia. Also during that time period, he was a member of the bar of the state of Maryland.
Between 2003 and 2009, Hunter was retained by various individuals in disability and personal injury claim disputes. Those clients generally agreed that Hunter was entitled to one-third of any recoveries regarding their settled claims. Hunter generally agreed to notify these clients of any offers of settlement and to inform clients of significant developments, among other things. In some cases, he agreed to pay his clients’ health care expenses directly from the proceeds of the recovery in their cases.
However, on a number of occasions, Hunter settled such claims without notifying his clients and without authority to do so and then he stole the settlement proceeds, resulting in a total loss amount from this scheme in excess of $109,830. The Court sentenced Hunter to pay $253,549 in restitution for the benefit of these former clients and other former clients who were harmed by Hunter’s actions.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Commissioner White commended the efforts of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Department of Insurance, Securities and Banking. They also praised those who worked on the case from the U.S. Attorney’s Office, including Legal Assistant Donna Galindo, former Assistant U.S. Attorney Courtney G. Saleski, and Assistant U.S. Attorney Matt Graves, who prosecuted the matter.
13-162Juvenile Held Accountable for Weber Canyon FireRead the Press Release
DURANGO – A juvenile charged in the Weber Canyon Fire has been adjudicated as a juvenile delinquent for two acts of juvenile delinquency, for willfully and without authority, lighting timber on fire upon public lands and destruction of government property in excess of $1,000. The juvenile apologized for the acts of delinquency and to those who were damaged by the action of the juvenile.
The juvenile has been sentenced and the court is in the process of determining an amount of restitution.
No other information is available regarding this matter.
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Justice Department Sues to Shut Down<br /> Missouri Tax Return PreparersRead the Press Release
The United States has asked a federal court in St. Louis, Mo., to permanently bar Joseph Burns, d/b/a Electronic Tax Service, Joseph Thomas and International Tax Service Inc. (Thomas’s business), from preparing federal tax returns for others, the Justice Department announced today. The civil injunction suit alleges that Burns and Thomas, who previously worked together, prepare fraudulent tax returns for customers from the same office building in the midtown neighborhood of St. Louis.
According to the complaint, the defendants repeatedly fabricate deductions on customers’ returns and report false filing statutses in order to illegally lower their customers’ federal tax liabilities and to generate larger tax refunds. The government alleges that the defendants also prepare returns containing bogus Schedule C income which illegally allows some customers to claim the maximum earned income tax credit. Based on past audit results, the government alleges that the loss to the U.S. Treasury caused by these defendants’ ongoing return preparation activities could be as much as $6 million annually .
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.
Related Materials:
Burns/Thomas Complaint
Justice Department Signs Agreement with Stewart County, Georgia, to Ensure Civic Access for People with DisabilitiesRead the Press Release
The Justice Department today announced an agreement with Stewart County, Ga., to improve access to all aspects of civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
“Access to your county’s programs, services and activities is a basic civil right, and the doors to government must be open for people with disabilities,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “I applaud Stewart County for its dedication to ensuring that all people have full access to the county’s public resources.”
PCA ensures that persons with disabilities have an equal opportunity to participate in civic life. As part of the PCA initiative, Justice Department staff, including investigators and architects, survey government facilities, services and programs in communities across the country. The survey identifies modifications needed for compliance with the ADA. The agreements set out steps each community must take to improve access. PCA agreements require physical modifications to facilities to make them accessible to people with disabilities.
Stewart County, established in 1830, is located in southwest Georgia approximately 37 miles from Columbus, Ga. During the compliance review, the department reviewed 11 county facilities, including the sheriff’s department, health department, senior center, municipal center and RV park, as well as several polling places. The agreement requires the county to correct accessibility barriers identified at the 11 facilities, and to conduct accessibility surveys at additional polling places and voter registration sites, as well as to survey any potential new polling places. The county will also make provisions for individuals with disabilities in its emergency management plans and procedures and will increase the accessibility of its website. Other provisions address effective communication, grievance procedures, sidewalks, and domestic violence programs. The agreement will remain in effect for three years and the department will monitor the county’s compliance with the agreement.
People interested in finding out more about the ADA, today’s agreement with Stewart County, the PCA initiative or the ADA Best Practices Tool Kit for state and local governments can access the ADA webpage at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 (TDD 800-514-0383).
Related Materials:
Stewart County PCA Agreement
Indictments: Three Men Failed to Register as Sex OffendersRead the Press Release
TOPEKA, KAN. – Three men have been charged in separate cases in federal court in Kansas with failing to register as sex offenders, U.S. Attorney Barry Grissom said today.
Indictments allege each of the men failed to register as required by the federal Sex Offender Registration and Notification Act.
The National Center for Missing and Exploited Children estimates more than 700,000 sex offenders reside in the United States and more than 100,000 are classified as noncompliant or unregistered. More information is available at the National Sex Offender Public Web Site at www.nsopw.gov
Charged in separate cases were:
Billy Joe Lock, 69, Prairie Village, Kan., who was convicted in San Bernandino, Calif., on a charge of lewd and lascivious acts against a child under 14.
Jermaine Smith, 41, Brookfield, Mo., who was convicted in Wyandotte County District Court of attempted aggravated indecent solicitation of a child.
Bobby Moore, 31, Temple Hills, Maryland, who was convicted in Reno County District Court of aggravated indecent solicitation of a child and aggravated indecent liberties.
If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Prosecuting are Assistant U.S. Attorney Kim Martin and Assistant U.S. Attorney Jason Hart.OTHER INDICTMENTS
Kurt Kingsley, 30; Kyle Falkner, 30; Patricia Dornbrack, 32; and Kimberly Hogan, 36, are charged with conspiring to distribute methamphetamine. The crime is alleged to have occurred April 25, 2013, in Overland Park, Kan.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Trent Krug is prosecuting.
Elizabeth Pittman, 51, Kansas City, Kan., is charged with one count of theft of mail by a U.S. Postal Service employee. The crime is alleged to have occurred Jan. 10, 2013, in Johnson County, Kan.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Postal Service - OIG investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Marco Antonio Perez-Renya, 23, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after having been deported. He was found April 9, 2013, in Kansas City, 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 investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Allen Omar Hernandez-Maradiaga, 27, a citizen of Honduras, is charged with unlawfully re-entering the United States after being deported. He was found April 30, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000. ICE - HSI investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Alfredo Muniz-Luna, 37, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being deported. He was found March 18, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
Jimy Flores, 33, Chicago, Ill., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 16, 2013, in Kansas City, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Michael James Edwards, 35, Lawrence, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred April 28, 2013, in Lawrence, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Lawrence Police Department investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Donald G. Copeland, 29, is charged with one count of unlawfully carrying a firearm in furtherance of a drug crime and one count of possession with intent to distribute marijuana. The crimes are alleged to have occurred March 2, 2013, in Leavenworth, Kan.
If convicted, he faces a penalty of not less than five years in federal prison and a fine up to $250,000 on the firearm charge, and a maximum penalty of five years and a fine up to $500,000 on the drug charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Reentry After Deportation ChargedRead the Press Release
Cosme Adalid Torres-Flores, a/k/a “Cosme Adalid Torres,” 22, of Telford, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about April 19, 2013, Torres-Flores, an alien, and native and citizen of Honduras, was found in the United States after having departed the United States on or about August 29, 2009, while an order of removal was outstanding, and having been deported from the United States on or about December 28, 2010.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Special Assistant United States Attorney Mark T. Sendek.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houstonian Sent to Prison for Receiving Child PornographyRead the Press Release
HOUSTON – Houston resident Sean Louis Walsh, 30, has been ordered to federal prison following his conviction for receipt of child pornography, United States Attorney Kenneth Magidson announced today. He pleaded guilty Feb. 21, 2013.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Walsh a term of 78 months in federal prison. Walsh was further ordered to serve 25 years of supervised release following completion of his prison term, during which time, among other conditions, he will not have access to a computer or the Internet. Walsh will also be ordered to register as a sex offender.
Walsh had been identified in an earlier investigation involving a company that operated a “nudist” website. On Sept. 16, 2011, inspectors with the U.S. Postal Inspection Service (USPIS) sent a mailing to Walsh at his home address in Houston. The mailing contained an undercover name and address and invited individuals to become a customer of the undercover company which was supposed to be a leader in taboo and forbidden videos. There was an invitation to request a free catalog specific to the customer’s desires and the flyer also had a checklist for the customer to note such desires.
In November 2011, inspectors received an order from Walsh for two DVDs in the mail, one of which was clearly described as containing child pornography, and a check for $50 in his name. The video depicted two prepubescent boys, approximately 9-10 years old and a pubescent female, approximately 11-12 years old engaging in oral sex and masturbation.
On Dec. 6, 2011, a search warrant was executed at the home of Sean Walsh, at which time agents seized several media devices. A forensic exam was conducted on three computers found in Walsh’s bedroom which yielded approximately 4,630 images and 322 videos of child pornography. Walsh was shown copies of the emails and correspondence and he acknowledged that he had sent or received the items.
Walsh was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorney Robert Stabe and investigated by USPIS, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Health Care Fraud and Money LaunderingRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christine Rahl, age 46, a resident of Social Circle, Georgia, entered a plea of guilty today to a multi-count Information before the Honorable C. Ashley Royal, United States District Judge in Macon, Georgia. Count One charged Ms. Rahl with Embezzlement in Connection with Health Care, in violation of Title 18 United States Code, Section 669. Counts Two through Five charged Ms. Rahl with Money Laundering, in violation of Title 18 United States Code, Section 1957.
Ms. Rahl was an employee with Marmalade Health which operates Abbey Hospice in Social Circle, Georgia. Ms. Rahl was in charge of payroll for Marmalade Health. The payroll and expense information was electronically submitted to Paychex who would then make electronic deposits into the accounts of employees. In order to receive extra pay, Ms. Rahl gave herself unauthorized raises and submitted false expenses for herself. Ms. Rahl continued this activity during a five and a half year time period. In her plea, she admitted that she illegally appropriated for her own use and benefit $1,586,847.14 from Marmalade Health. The money she received was deposited into the Wells Fargo Bank, where she would then write checks and use credit cards to purchase items for her personal use.
Ms. Rahl faces a maximum possible sentence of ten years imprisonment, a $250,000.00 fine and a $100.00 mandatory assessment fee per count.
“When Ms. Rahl committed health care fraud and embezzlement, she stole from a system designed to help those who are critically or terminally ill. We will continue to use our investigative resources to vigorously prosecute individuals who defraud the health care system,” said U.S. Attorney Michael Moore.
The case was investigated by agents of the Human Health Service and Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Sharon Ratley.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
Grand Haven Man Sentenced on Tax Evasion ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – Matthew Daniels, 46, of Grand Haven, Michigan, having pled guilty to filing a false tax return, has been sentenced to serve 6 months in prison, followed by 1 year of supervised release, and ordered to pay more than $119,000 in restitution to the Internal Revenue Service, U.S. Attorney Patrick A. Miles, Jr. announced today. Daniels was also ordered to pay a mandatory $100 special assessment. Mr. Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
According to the Plea Agreement filed on January 23, 2013, Daniels filed false tax returns for 2007 and 2008 with the Internal Revenue Service. In particular, Daniels under reported his gross receipts on his Schedule C for both 2007 and 2008. The 2008 tax return that Daniels filed was a false and fraudulent income tax return which under-reported gross receipts by $362,489. At sentencing, Judge Robert Holmes Bell found that the Government had established that Daniels had substantially underreported gross receipts and owed taxes to the Internal Revenue Service of $119,003.
“Cheating on your taxes is the same as stealing,” said IRS Criminal Investigation Special Agent in Charge, Erick Martinez. “We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS.”
This case is being prosecuted on behalf of the United States by Assistant U.S. Attorney Matthew Borgula and was investigated by Special Agents of the IRS Criminal Investigation.
END
Gates Man Pleads Guilty to Transporting a Child for Sexual ActsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Michael J. Rolfe, 48, of Gates, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, to transporting a child across state lines with the intent of engaging in illegal sexual activity. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum penalty of life, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that in August 2012 the defendant, a long distance truck driver, took a child who was less than 12 years old on a trip from Rochester, N.Y. to locations in Texas. Rolfe admitted to engaging in sexual acts with the child while outside of New York State.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, along with Investigators from the New York State Police, under the direction of Superintendent Joseph D’Amico.
Sentencing is scheduled for August 7th, at 9:30 a.m. before Judge Geraci.
Four "United Blood Nation" Gang Members Convicted of Racketeering Charges Following Six Day TrialRead the Press Release
CHARLOTTE, N.C. – A Charlotte jury convicted four gang members of the United Blood Nation (“UBN”) of racketeering conspiracy and related charges following a six day trial which ended on Wednesday, May 8, 2013, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Monroe of the Charlotte Mecklenburg Police Department join U.S. Attorney Tompkins in making today’s announcement.
Jaimel Kenzie Davidson a/k/a “I-Shine,” 29, Nathaniel Graham a/k/a “Nasty”, 24, Kentrell Tyrone McIntyre a/k/a “Mustafa,” 33, and Perry Gorontent Williams a/k/a “P-Flame” or “Flame,” 27, were found guilty of engaging in racketeering conspiracy. Graham, McIntyre and Williams were also found guilty of conspiracy to commit murder in aid of racketeering activity.
According to court documents, evidence presented at trial and witness testimony:
From in or about June 2011 to in or about July 2011, the defendants carried out the conspiracy while they were incarcerated within the North Carolina Department of Corrections (NC DOC). The defendants used smuggled cellular telephones to communicate with UBN gang members who were incarcerated in various NC DOC facilities as well as gang members who were not incarcerated. The smuggled cellular telephones were used to facilitate gang activity both in the prisons as well as in communities throughout the state of North Carolina. Jurors heard cell phone conversations in which the defendants and others discussed criminal activities, including the conspiracy to commit murder of another inmate who was not a gang member, because the inmate refused to give into the demands of UBN gang members. Jurors also heard cell phone conversation in which the defendants and others discussed the distribution of controlled substances as well as violent assaults of family members of other incarcerated inmates who disrespected the UBN. In addition, the smuggled cellular telephones were used to conduct high level gang “management meetings,” during which high ranking gang members coordinated gang business activities and discussed the assignment of gang activities outside prison to low level gang members, known as “scraps.”
“Gang-related violent crimes plague our communities and spread fear and violence in our neighborhoods. This case is particularly troubling because these four gang members continued to carry out violent criminal gang activities and even planned a murder from behind bars. I commend our law enforcement partners for their hard work on this case and for their continued efforts to pursue dangerous gangs and dismantle their illegal activities in our state and elsewhere,” said U.S. Attorney Tompkins.
“The FBI is committed to dismantling the violent gangs that threaten the safety and stability of our neighborhoods. This three year investigation is an outstanding example of what federal, state, and local law enforcement can accomplish together when we attack the gangs that terrorize our communities,” said FBI’s Special Agent in Charge John Strong.
“The Charlotte-Mecklenburg Police Department and our partner agencies will continue to be diligent in letting criminals know that these neighborhoods are not a safe haven for their illegal activities,” said Chief Monroe of CMPD.
The defendants are currently in local federal custody. The racketeering conspiracy charge carries a maximum prison term of 20 years and a $250,000 fine. The conspiracy to commit murder in aid of racketeering conspiracy charge carries a maximum prison term of 10 years and a $250,000 fine. Sentencing dates for the defendants have not been set yet.
The case was investigated by the FBI and CMPD. The prosecution is handled by Assistant U.S. Attorney Jill Westmoreland Rose and Daniel Ryan of the U.S. Attorney’s Office in Charlotte.
Former UCLA Physics Professor Agrees to Plead Guilty in Federal Contract Fraud Case and Pay Nearly $1.7 Million in DamagesRead the Press Release
LOS ANGELES – A former physics professor of the University of California, Los Angeles has agreed to plead guilty to federal fraud charges and pay nearly $1.7 million in penalties for submitting fraudulent invoices related to nanotechnology research he was performing for the Defense Advanced Research Projects Agency (DARPA) and other federal government entities.
Dr. Alfred Wong, 75, who resides in the Westwood district of Los Angeles, was charged this morning with making a false claim to the United States. Wong was charged in a criminal information filed in United States District Court in Los Angeles.
Federal prosecutors also filed a plea agreement in the criminal case and an agreement to settle a potential civil lawsuit. In those documents, Wong agreed to plead guilty to the federal fraud offense and pay a total of $1,686,000 in fines, restitution and damages to the United States and UCLA.
A longtime professor of physics at UCLA, Wong served as the director of the Plasma Physics Laboratory at UCLA, as well as the director of the High Power Auroral Stimulation (HIPAS) Observatory near Fairbanks, Alaska. About 10 years ago, Wong and two companies he founded – Non-Linear Ion Dynamics, Inc. (NID) and the
International Foundation for Science, Health, and the Environment (IFSHE), both of which were based in Van Nuys – entered into a series of contracts worth more than $25 million with the United States to research the feasibility of nanotechnology batteries for defense applications and to conduct ionospheric research at HIPAS. Wong also founded and controlled Alfred Wong Technologies (AWT), a Beverly Hills-based concern he established to manage various patent rights.According to court documents filed today, Wong created fictitious invoices at AWT that claimed AWT had manufactured and sold to NID certain nanotechnology components. Fraudulent invoices totaling $160,000 were then submitted to the Defense Department for payment.
Wong also caused IFSHE and NID to submit false vouchers to the Department of Interior for improvements on his privately owned land, as well as equipment and labor costs unrelated to the government Department contract.
The charge of submitting a false claim to the government a statutory maximum penalty of five years in federal prison.
Wong will be summoned to appear in federal court to be arraigned in this case on June 6.
The case against Wong is the result of an investigation by the Defense Criminal Investigative Service and the U.S. Department of the Interior’s Office of Inspector General.
Release No. 13-066
Former Senior Executive of Arthrocare Corp. <br /> Pleads Guilty in $400 Million Securities Fraud SchemeRead the Press Release
A former senior executive of Texas-based ArthroCare Corp., a publicly traded medical device company, pleaded guilty today for his role in a scheme to defraud the company’s shareholders and members of the investing public by falsely inflating ArthroCare’s earnings, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman for the Western District of Texas.
David Applegate, 54, pleaded guilty before U.S. Magistrate Judge Mark Lane in Austin, Texas, to two counts of a superseding information which charges him with conspiracy to commit securities, mail and wire fraud and with a false statements violation. Applegate was the senior vice president in charge of ArthroCare’s Spine Division. Applegate admitted that he and other co-conspirators inflated falsely ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors and that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 with the U.S. Securities and Exchange Commission that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings.
According to court documents, Applegate and others determined the type and amount of product to be shipped to distributors, notably ArthroCare’s largest distributor, DiscoCare Inc., based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders. Applegate and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
According to the superseding information, DiscoCare agreed to accept shipment of approximately $37 million of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to inflate falsely its revenue by tens of millions of dollars. To conceal the fact that DiscoCare owed ArthroCare a substantial amount of money on the unused inventory, ArthroCare, with Applegate’s knowledge, caused ArthroCare to acquire DiscoCare on Dec. 31, 2007.
According to court documents, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
Applegate faces a maximum prison sentence of five years in prison for each charge. A sentencing date has yet to be scheduled.
David Applegate’s co-defendant John Raffle is scheduled for trial on July 15, 2013. Defendants are presumed innocent unless and until proven guilty at trial.
This case was investigated by the FBI’s Austin Field Office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorney Henry P. Van Dyck of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
Former President of Port Arthur Company Guiltyof Federal Crimes Related to Employee DeathsRead the Press Release
The former president of Port Arthur Chemical and Environmental Services, LLC (PACES) has pleaded guilty in federal court to occupational safety crimes which resulted in the death of an employee, announced Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and John M. Bales, U.S. Attorney for the Eastern District of Texas.
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty to violating the Occupational Safety and Health Act (OSH Act) and making a false statement. Bowman admitted to not properly protecting PACES employees from exposure to hydrogen sulfide, a poisonous gas resulting in the death of truck driver Joey Sutter on Dec. 18, 2008. In addition, Bowman admitted to directing employees to falsify transportation documents to conceal that the wastewater was coming from PACES after a disposal facility put a moratorium on all wastewater shipments from PACES after received loads containing hydrogen sulfide. The guilty plea was entered today before U.S. Magistrate Judge Zack Hawthorn.
“Bowman’s actions showed a preference for profit above the safety of his employees, putting them and the public in life threatening situations by not properly identifying the dangerous materials PACES was handling,” said Assistant Attorney General Moreno. “The Justice Department will continue to vigorously enforce laws enacted for the protection of human health and the environment.”
“In this day and age, it seems inconceivable that workers would be exposed to the level of danger that was routine at PACES,” said U.S. Attorney Bales. “Mr. Bowman’s actions as the leader of the company were more than just cavalier, they were criminal and he is being held to account. We continue to grieve for the needless loss of life and the pain and suffering of Mr. Sutter’s family and friends. This investigation and prosecution is the result of an excellent combined effort of the identified agencies and I am grateful for their hard work.”
“The plea agreement reached today sends a strong signal to all who would illegally transport hazardous materials,” said Max Smith, regional Special Agent-in-Charge, U.S. Department of Transportation, Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to ensure safety in the transport of these materials and vigorously pursue those who violate the law.”
“Laws regarding the safe and legal handling of hazardous materials are in place for a reason – to save lives,” said Ivan Vikin, Special Agent in Charge of the U.S. Environmental Protection Agency’s (EPA) criminal enforcement program in Texas. “The defendant admitted that his actions directly led to the death of one of his employees. This plea demonstrates that EPA and its partner agencies, the Texas Commission on Environmental Quality’s Environmental Crimes Unit and the Department of Transportation’s Office of the Inspector General, will prosecute anyone whose actions place the public at risk.”
According to information presented in court, Bowman was president and owner of PACES, located in Port Arthur, Texas, and CES Environmental Services (CES) located in Houston. PACES was in operation from November 2008 to November 2010, and was in the business of producing and selling caustic materials to paper mills. The production of caustic materials involved hydrogen sulfide, a poisonous gas. According to the National Institute for Occupational Safety and Health, hydrogen sulfide is an acute toxic substance that is the leading cause of sudden death in the workplace. Employers are required by the Occupational Safety and Health Administration (OSHA) to implement engineering and safety controls to prevent employees from exposure above harmful limits of hydrogen sulfide.
Bowman was responsible for approving and directingPACES production operations, the disposal of hydrogen sulfide wastewater, and ensuring implementation of employee safety precautions. In some cases, Bowman personally handled the investigation of work-related employee injuries, directed the transportation of PACES wastewater, and determined what safety equipment could be purchased or maintained. In the cases at issue, hazardous materials were transported illegally with false documents and without the required placards. Most importantly, the workers were not properly protected from exposure to hazardous gases. The exposure resulted in the deaths of two employees, Joey Sutter and Charles Sittig, who were truck drivers, at the PACES facility on Dec. 18, 2008, and Apr. 14, 2009. Placarding is critical to ensure the safety of first responders in the event of an accident or other highway incident. Bowman and PACES were indicted by a federal grand jury on July 18, 2012.
Bowman faces up to five years in federal prison and a fine of up to $250,000 at sentencing. A sentencing date has not been set. Charges remain pending against PACES. The corporation faces a fine of up to $500,000 per count.
This case was investigated by EPA Criminal Investigation Division; the U.S. Department of Transportation Office of Inspector General; the Texas Commission on Environmental Quality - Environmental Crimes Unit, part of the Texas Environmental Enforcement Task Force; the Texas Parks & Wildlife Department - Environmental Crimes Unit; the Houston Police Department - Major Offenders, Environmental Investigations Unit; the Travis County, Texas - District Attorney’s Office; the Harris County, Texas, District Attorney’s Office - Environmental Crimes Division; the Houston Fire Department; OSHA; the U.S. Coast Guard; the Port Arthur Police Department; and the Port Arthur Fire Department.
The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Former President of Port Arthur Chemical Company Guilty of Federal Crimes Related to Employee DeathsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former president of Port Arthur Chemical and Environmental Services, LLC (PACES) has pleaded guilty in federal court to occupational safety crimes which resulted in the death of an employee, announced John M. Bales, U.S. Attorney for the Eastern District of Texas, and Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty to violating the Occupational Safety and Health Act (OSH Act) and making a false statement. Bowman admitted to not properly protecting PACES employees from exposure to hydrogen sulfide, a poisonous gas resulting in the death of truck driver Joey Sutter on Dec. 18, 2008. In addition, Bowman admitted to directing employees to falsify transportation documents to conceal that the wastewater was coming from PACES after a disposal facility put a moratorium on all shipments from PACES after it received loads containing hydrogen sulfide. The guilty plea was entered today before U.S. Magistrate Judge Zack Hawthorn.“In this day and age, it seems inconceivable that workers would be exposed to the level of danger that was routine at PACES,” said U.S. Attorney John M. Bales. “Mr. Bowman’s actions as the leader of the company were more than just cavalier, they were criminal and he is being held to account. We continue to grieve for the needless loss of life and the pain and suffering of Mr. Sutter’s family and friends. This investigation and prosecution is the result of an excellent combined effort of the identified agencies and I am grateful for their hard work.”
“Bowman’s actions showed a preference for profit above the safety of his employees, putting them and the public in life threatening situations by not properly identifying the dangerous materials PACES was handling,” said Assistant Attorney General Moreno. “The Justice Department will continue to vigorously enforce laws enacted for the protection of human health and the environment.”
“The plea agreement reached today sends a strong signal to all who would illegally transport hazardous materials,” said Max Smith, regional Special Agent-in-Charge, U.S. Department of Transportation, Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to ensure safety in the transport of these materials and vigorously pursue those who violate the law.”
“Laws regarding the safe and legal handling of hazardous materials are in place for a reason – to save lives,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “The defendant admitted that his actions directly led to the death of one of his employees. This plea demonstrates that EPA and its partner agencies, the Texas Commission on Environmental Quality’s Environmental Crimes Unit and the Department of Transportation’s Office of the Inspector General, will prosecute anyone whose actions place the public at risk.”
The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
According to information presented in court, Bowman was president and owner of PACES, located in Port Arthur, Texas, and CES Environmental Services (CES) located in Houston. PACES was in operation from November 2008 to November 2010, and was in the business of producing and selling caustic materials to paper mills. The production of caustic materials involved hydrogen sulfide, a poisonous gas. According to the National Institute for Occupational Safety and Health, hydrogen sulfide is an acute toxic substance that is the leading cause of sudden death in the workplace. Employers are required by OSHA to implement engineering and safety controls to prevent employees from exposure above harmful limits of hydrogen sulfide.
Bowman was responsible for approving and directing PACES production operations, the disposal of hydrogen sulfide wastewater, and ensuring implementation of employee safety precautions. In some cases, Bowman personally handled the investigation of work-related employee injuries, directed the transportation of PACES wastewater, and determined what safety equipment could be purchased or maintained. In the cases at issue, hazardous materials were transported illegally with false documents and without the required placards. Most importantly, the workers were not properly protected from exposure to hazardous gases. The exposure resulted in the deaths of two employees, Joey Sutter and Charles Sittig, who were truck drivers, at the PACES facility on Dec. 18, 2008 and Apr. 14, 2009. Placarding is critical to ensure the safety of first responders in the event of an accident or other highway incident. Bowman and PACES were indicted by a federal grand jury on July 18, 2012.
Bowman faces up to five years in federal prison and a fine of up to $250,000 at sentencing. A sentencing date has not been set. Charges remain pending against PACES. The corporation faces a fine of up to $500,000 per count.
This case was investigated by EPA Criminal Investigation Division; the U.S. Department of Transportation Office of Inspector General; the Texas Commission on Environmental Quality - Environmental Crimes Unit, part of the Texas Environmental Enforcement Task Force; the Texas Parks & Wildlife Department - Environmental Crimes Unit; the Houston Police Department - Major Offenders, Environmental Investigations Unit; the Travis County, Texas - District Attorney’s Office; the Harris County, Texas, District Attorney’s Office - Environmental Crimes Division; the Houston Fire Department; OSHA; the U.S. Coast Guard; the Port Arthur Police Department; and the Port Arthur Fire Department.