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21 June 2013
Leland Neil Lapier, Jr. Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on June 20, 2013, in Great Falls, after a federal district court trial before Chief U.S. District Judge Dana L. Christensen, LELAND NEIL LAPIER, JR., a 28-year-old resident of Great Falls, was found guilty of conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. Sentencing is set for September 24, 2013.
At trial, the following evidence and testimony was presented to the jury.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case for the United States.
In January 2012, Great Falls law enforcement became alerted to a large scale methamphetamine conspiracy. Subsequently, Louis Kanyid, Joelle Jones, Ann Wetzel, Joe Wetzel, Mark Kness, Linda Reynolds, Robert Boucher, Ron Leeson, Tammie Lapie, and Mark Abresch have pleaded guilty to various methamphetamine crimes. Through independent investigation, as well as through debriefs of these defendants, law enforcement learned that LAPIER was also an active participant in this conspiracy and responsible for the distribution of methamphetamine throughout Great Falls.
From September 2011, through September 2012, Louis Kanyid brought pounds of actual (pure) methamphetamine from Kennewick, Washington, to Great Falls. Kanyid spoke with law enforcement and said one of his original contacts in Great Falls was LAPIER's sister. Kanyid met her through Craig's List, and she began to purchase and sell methamphetamine provided by Kanyid. Eventually, though, LAPIER took over her position. Kanyid found the methamphetamine market in Great Falls to be extremely profitable, and from April 2012, and forward, he never brought less than a pound of methamphetamine with him on each trip to Great Falls.
Kanyid regularly provided LAPIER with half of the methamphetamine that he brought to town. LAPIER lived with his girlfriend in Great Falls and he conducted his methamphetamine business from the garage. Customers met LAPIER and Kanyid in the garage so that neighbors would not witness the drug transactions. Kanyid paid his methamphetamine supplier $1,200 per ounce and never sold an ounce of methamphetamine in Great Falls for less than $2,000. Kanyid claimed an ounce of methamphetamine could actually be bought for $3,200 in Great Falls. At one point, Kanyid and LAPIER engaged in a contest to see how much methamphetamine each could sell in one day in Great Falls. According to Kanyid, himself and LAPIER made $6,000 each in one day.
In August 2012, Kanyid sold five pounds of methamphetamine in Great Falls, including two pounds directly to LAPIER. Law enforcement eventually seized approximately 38 grams of pure methamphetamine from Kanyid's hotel room.
Law enforcement also arrested Kanyid's girlfriend, Joelle Jones, for her involvement in this methamphetamine conspiracy. Jones later told agents that Kanyid spent a great amount of time with LAPIER. In fact, when police arrested Kanyid, LAPIER immediately called Jones to warn her of the arrest. Jones later took a taxi to LAPIER's house that night and LAPIER's girlfriend provided Jones with a car to drive back to Washington. Jones returned to Great Falls again a week later to meet with LAPIER. After Kanyid's arrest, LAPIER encouraged Jones to bring methamphetamine to him in Great Falls.
After a grand jury indicted Kanyid, Jones, Ann Wetzel, Joe Wetzel, Mark Kness, and Linda Reynolds, LAPIER turned elsewhere to buy methamphetamine. Following the initial indictment and arrests, LAPIER then turned to Robert Boucher in order to purchase methamphetamine.
Boucher was from Spokane, Washington, and began selling methamphetamine in December 2009. He originally made contact with Great Falls methamphetamine dealers through a female Great Falls resident, who traveled to Spokane to purchase methamphetamine. Mark Abresch also accompanied this woman on trips to Spokane. After approximately six months, Boucher began to travel to Great Falls to sell methamphetamine. He normally brought six to eight ounces of methamphetamine on each trip. Boucher stayed at Tammy Lapie's home, and became associated with selling methamphetamine with Lapie, Abresch, and Ron Leeson. Boucher also told agents that he met LAPIER in Great Falls. Boucher regularly sold LAPIER two ounces of methamphetamine at a time, and did that approximately three or four times. LAPIER paid $1,700 per ounce, and last bought methamphetamine from Boucher about one week before Boucher's arrest in December 2012.
Tammy Lapie told agents that LAPIER began to come to her home in October 2012. LAPIER began to look for larger amounts of methamphetamine and turned to Boucher for methamphetamine. Lapie believed LAPIER purchased one ounce of methamphetamine from Boucher on one occasion, and between one to four ounces of methamphetamine on another occasion. Law enforcement seized approximately 44 grams of actual methamphetamine from Lapie's home. Chris Leeson also told agents that people knew that Kanyid was LAPIER's original source of methamphetamine. Leeson once traded a car speaker to LAPIER for an eight ball of methamphetamine.
Mark Abresch originally worked as a confidential informant with the Great Falls Police Department before being dropped as an informant due to continued drug dealing. During the summer of 2012, Abresch bought approximately 60 grams of actual methamphetamine from Boucher through controlled drug buys. Abresch alerted agents in July 2012, that LAPIER always had methamphetamine in Great Falls. Abresch did not purchase methamphetamine from LAPIER because he charged $2,000 per ounce.
In September 2012, Abresch told agents that he had hung out at LAPIER's house on numerous occasions and saw LAPIER with large amounts of methamphetamine. In the spring of 2012, Abresch saw LAPIER with four to six ounces of methamphetamine. Abresch then saw numerous customers purchase the methamphetamine. During mid-summer 2012, Abresch observed Kanyid drop off a half pound of methamphetamine to LAPIER in LAPIER's garage. LAPIER again started distributing the methamphetamine from the garage. Lastly, in August or early September 2012, Abresch observed LAPIER sell four ounces of methamphetamine from his garage.
LAPIER faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) Task Force - Russell Country Drug Task Force.
Law Enforcement Targets Social Security FraudRead the Press Release
A Seattle woman who illegally collected her dead father’s Social Security benefits for more than 19 years after his death, was sentenced today in U.S. District Court in Seattle to 18 months in prison and three years of supervised release for theft of government funds, announced U.S. Attorney Jenny A. Durkan. PATTY BUCHANAN, 57, was prosecuted as part of an initiative with the Social Security Administration Office of Inspector General to combat benefit fraud. BUCHANAN forged a power of attorney, submitted false documentation to the Social Security Administration and even had someone impersonate her father on the telephone to continue collecting his benefits after his death in 1993. At sentencing Chief U.S. District Judge Marsha J. Pechman ordered her to pay $239,083 in restitution.
“Fraud against Social Security harms the poor, the disabled, and those most in need, including the elderly,” said U.S. Attorney Jenny A. Durkan. “These prosecutions are aimed at preserving the integrity of the Social Security safety net so that it remains available for vulnerable people who need these benefits to survive.”
BUCHANAN is one of the largest Social Security benefit fraud cases prosecuted as part of the initiative in the Western District of Washington. BUCHANAN’s father died in May 1993, but she continued to receive and cash his benefit checks using a check cashing business. She told the outlet her father was infirm and homebound and that she had power of attorney. Every month for 19 years she cashed the checks – in all, 235 checks for a total of $239,083. When one of the tellers at the check cashing business became suspicious, BUCHANAN forged a fraudulent power of attorney document. When staffers at the outlet called to try to speak with BUCHANAN’s father, BUCHANAN had a male friend pretend to be her father. Ultimately, an anonymous tip to Social Security ended the fraud in December 2012. In addition, between March 2003 and November 2012, BUCHANAN also applied for and fraudulently collected $11,271 in Washington State Department of Social and Health Services benefits to which she was not entitled. BUCHANAN has one prior conviction for fraud against the state welfare system.
Five other defendants have been charged this year with theft of government funds for fraudulently collecting Social Security benefits for years after their parents’ death. All five have entered guilty pleas and await sentencing. The following are the longest running of these frauds.
CLAUDIA RUTH GREENAMYER, 72, of University Place, fraudulently collected $219,960 following the death of her mother in 1996 and her father in 2000. The payments were made to bank accounts GREENAMYER held jointly with her parents. GREENAMYER continued to use the money without telling Social Security her parents were deceased. She forged signatures to continue the theft, and when confronted by agents in February 2013, she claimed to have seen her parents one month earlier. GREENAMYER pleaded guilty to theft of government funds on May 15, 2013.
DENNIS JAY GORIN, 76, of Eatonville, fraudulently collected about $100,000 in Social Security benefits belonging to his mother following her death in around 2003. GORIN did not notify federal or state authorities of his mother’s death and personally disposed of his mother’s body on property in a rural area. Between 2003 and 2013, GORIN forged his mother’s signature to embezzle an estimated $100,000 worth of Social Security benefits. GORIN pleaded guilty on May 21, 2013.
DAVID MICHAEL COSTA, 77, of Sammamish, fraudulently collected $297,948 of his mother’s Social Security benefits following her death in 1989. While COSTA originally thought the payments coming to the joint bank account were from an annuity, in 1992 he learned they were Social Security payments. Rather than alert authorities and pay back the $40,000 that had wrongly been paid, COSTA continued to collect the benefits for more than 15 more years. COSTA forged his mother’s name on documents and substituted his address for hers on all records, updating it three different times over the years. COSTA pleaded guilty on June 3, 2013.
These cases were investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and are being prosecuted by Special Assistant United States Attorney Seth Wilkinson as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Kentucky Pain Clinics, Pharmacy and Owner Convicted by Jury on All CountsRead the Press Release
LEXINGTON, KY - The owner of pill mills in Georgetown, KY., and Dry Ridge, KY., which illegally dispensed prescription drugs to thousands of patients, was found guilty on all 21 counts of drug trafficking, money laundering, opening and maintaining a drug involved premise and conspiracy charges.
On Thursday, the jury returned guilty verdicts against 45 year-old Ernest William Singleton and his corporate fronts— Double D Holdings, LLC and S and R Medical Enterprises, LLC. These entities, controlled by Singleton, in turn owned Central Kentucky Bariatric and Pain Management; Central Kentucky Family Pharmacy of Georgetown and the Grant County Wellness Center in Dry Ridge, KY. The two clinics were convicted of the same charges as Singleton. Double D Holdings was convicted on drug trafficking and money laundering offenses. The pharmacy was convicted of money laundering charges. The jury returned the verdict after approximately three hours of deliberation, following three weeks of trial.
According to evidence presented at trial, starting in October of 2010 and continuing until February 2013, doctors at the clinics prescribed Diazepam and Ultram outside the scope of professional practice, not for a legitimate medical purpose, and under Singleton’s direction. Singleton then used his businesses to launder the proceeds gained from the drug trafficking.
Additionally, the jury found that Singleton used the drug proceeds to purchase a house in Willisburg, KY., a boat, farmland, and farm equipment, among other items. Singleton will have to forfeit bank accounts consisting of $427,834.34, more than 20 firearms, over 40 pieces of farm equipment, vehicles, and livestock that either facilitated the crimes or were purchased with proceeds obtained from his criminal offenses.
The evidence at trial established that Singleton oversaw the daily operations of the clinics, influenced doctors to overprescribe drugs to patients, and pressured them to see as many patients as possible. Witnesses testified that, at Singleton’s direction, one of the doctors saw more than 90 patients in a day and another doctor visited with some patients for as little as three minutes, before prescribing medication.
Testimony also revealed that when some doctors complained to Singleton, about the volume of patients, he instructed them not to reduce their patient load and told them “if we don’t give them (patients) what they want, they won’t come back.” Doctors testified that they could not provide adequate medical care under Singleton’s guidelines. Two of the doctors employed by Singleton, Lea Marlow and Gregory White, pleaded guilty earlier this month to conspiring to distribute controlled substances outside the scope of professional practice and without a legitimate medical purpose.
Other evidence established that the pain clinics operated on a cash-only basis and did not accept insurance. New patients paid approximately $250 on the first visit and $300 on subsequent visits. Investigators estimate that approximately 5,000 patients visited the clinics during the course of the conspiracy.
“Mr. Singleton is a drug dealer who used his business as a front for his criminal scheme,” said Kerry Harvey, U.S. Attorney for the Eastern District of Kentucky. “We will continue to pursue those who operate pill mills that bring so much pain to our communities. This successful prosecution exemplifies the sort of interagency collaboration that is necessary to effectively combat the scourge of illegal drug trafficking in our Commonwealth. We congratulate our law enforcement partners in this case and appreciate the great work of our trial team.”
“This verdict sends a clear message that drug and money laundering violations are serious crimes against the American public. IRS Criminal Investigation, along with our law enforcement partners, plays a very important role in the successful investigation and prosecution of these types of financial crimes,” said Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation, Nashville Field Office.
“The defendant’s greed came at a substantial cost to many families in the Commonwealth,” said Attorney General Jack Conway. “This case is a perfect example of why entrepreneurs should not be in control of pain management clinics, I appreciate the hard work of my Drug Investigative Branch and prosecutors who worked in coordination with our state and federal law enforcement partners to bring the defendant to justice and obtain this guilty verdict."
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration; Christopher A. Henry, Special Agent in Charge of IRS, Criminal Investigation Division; Jack Conway, Kentucky Attorney General; and Rodney Brewer, Commissioner of Kentucky State Police, jointly made the announcement.
The investigation was conducted by the DEA, IRS Criminal Investigation Division, the Kentucky Attorney General’s Office and Kentucky State Police. Assistant U.S. Attorneys Ron Walker and Patrick Molloy with the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Shawna Kincer, who is the Executive Director of Special Prosecutions with the Kentucky Attorney General’s Office, prosecuted the case.
Singleton faces up to 20 years in prison for both the money laundering and drug trafficking conspiracies. The businesses face a maximum of fine of $250,000. However, any sentences following conviction would be imposed after the Court reviews the U.S. Sentencing Guidelines and the federal statutes.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on June 21, 2013:
Shamekka Thomas, 25, of Gary, Indiana, was charged with making a false material statement to a licensed firearms dealer with the intent of deceiving as to legality of purchase, knowingly making a false statement to a licensed firearms dealer with respect to information required to be kept on record and aiding and abetting.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Tom McGrath.
Timothy Thomas, 29, of Gary, Indiana, was charged with making a false material statement to a licensed firearms dealer with the intent of deceiving as to legality of purchase, knowingly making a false statement to a licensed firearms dealer with respect to information required to be kept on record and aiding and abetting.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Tom McGrath.
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.
Illegal Alien Sentenced to 46 Months for Transporting Women for Interstate Prostitution RingRead the Press Release
ALEXANDRIA, Va. – Angel Campos Tellez, 27, an illegal alien from Mexico, who lived in Greenbelt, Md., was sentenced today to 46 months in prison, followed by three years of supervised release, for conspiring to transport more than 100 women to engage in commercial sex acts in Virginia, Maryland, and Delaware.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kenneth T. Cuccinelli, II, Attorney General of Virginia; and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after sentencing by United States District Judge Claude M. Hilton.
“There are many moving parts in the vile sex trafficking industry – the recruiters, the transporters, and the so called ‘pimps.’ Here, Tellez, a leader, drove victims up and down the eastern seaboard to be prostituted in various localities. This reprehensible conduct will not be tolerated,” said U.S. Attorney Neil H. MacBride.
“For three years, Campos Tellez led a network that exploited women to a dangerous life of prostitution, violence, and gangs,” said Cuccinelli. “Whatever their role may be in a sex trafficking ring, we want these criminals to know: we will find you, we will prosecute you, and we will lock you up for your crimes. Virginia will not turn a blind eye to this abusive and disgusting criminal enterprise.”“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations," said John P. Torres, Special Agent in Charge of HSI Washington. "HSI special agents will continue to work with our law enforcement partners to identify victims of human trafficking and to pursue the criminals who prey on them."
Campos Tellez pleaded guilty on March 27, 2013, to conspiracy to transport women to engage in prostitution. According to court records, from 2009 through July 2012, Campos Tellez was a leader of a network that transported women to engage in commercial sex acts in Manassas, Woodbridge, Virginia Beach, Norfolk, Newport News, Va., Baltimore, and Delaware. As a leader, Campos Tellez was responsible for collecting prostitution proceeds, advertising the prostitution scheme, and obtaining lodging for the victims he prostituted. Campos Tellez instructed the women he prostituted to charge $30 for 15 minutes of vaginal sex, and he personally received at least $15,000 in proceeds from commercial sex acts.
This case was investigated by the Transnational Gang Unit of HSI, which is a member of the Northern Virginia Human Trafficking Task Force. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.
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.
Hayward Tax Preparer Sentenced to Two Years in Jail for Tax FraudRead the Press Release
Oakland, Calif. – Naushad Buksh was sentenced yesterday to 24 months in prison for filing a false tax return and assisting in the preparation of a false tax returns, announced United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martínez.
Buksh pleaded guilty on January 24, 2013. According to his plea agreement, Buksh has prepared tax returns for approximately 20 years. During 2007, 2008, 2009, and 2010, he operated a tax return preparation business in Hayward, California, and was responsible for all income and expenses of the business. His taxable income earned from this business was $116,387, $134,843, $178,167, and $210,683, respectively. Buksh intentionally omitted this income from his tax returns, which resulted in a tax loss of $160,528.
Buksh admitted in his plea that, in addition to filing false returns for himself, he also prepared tax returns on behalf of his clients that included false deductions and credits for the purpose of creating fraudulent tax refunds. Buksh admitted that knew the deductions and credits were false because he fabricated them. Specifically, some of the false deductions and credits included home mortgage interest and points, unreimbursed employee expenses, inflated education credits, student loan interest and/or tuition fee deductions, false personal property tax deductions, and false or inflated tax preparation fees. By adding these false claims to his clients’ tax returns he caused a tax loss to the government totaling $109,077.
Buksh is scheduled to self-surrender to the custody of the U.S. Marshalls on August 20, 2013.
Special Assistant U.S. Attorney Charles Parker and Assistant U.S. Attorney Thomas Moore are prosecuting the case. The prosecution is the result of an investigation by IRS-CI.
(Buksh Indictment )
Gayle Patrick Skunkcap, Jr., Jessie Jay St. Goddard, and Woodrow Jay Wells Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 20, 2013, before U.S. District Judge Dana L. Christensen, GAYLE PATRICK SKUNKCAP, JR., age 42, JESSIE JAY ST. GODDARD, age 50, and WOODROW JAY WELLS, age 45, residents of Browning, Montana, were each sentenced to a term of:
Probation: 3 years
Special Assessment: $200
Restitution: $56,625
They were sentenced in connection with their guilty pleas to violating the Lacey Act (illegal sale of tribal wildlife) and Theft from a Tribal Government Receiving Federal Funding.
In an Offer of Proof filed by Assistant U.S. Attorneys Carl E. Rostad and Ryan G. Weldon, the government stated it would have proved the following at trial:
All wildlife on the Blackfeet Indian Reservation are owned by the Blackfeet Indian Tribe. In managing such wildlife, hunting is allowed. Hunting by non-members on the Blackfeet Indian Reservation is a highly regulated activity. The 2010 and 2011 Blackfeet Regulations set forth the number of tags that may be given to non-members and the price of payment required for each tag. These tags are required, are limited in number, and are highly lucrative. There are only between five and ten hunting licenses for each big-game species available to non-tribal members each year, with each license costing between $1,500 and $12,000, depending on the animal.
SKUNKCAP, Jr., was the Director of the Blackfeet Fish and Wildlife Department, and ST. GODDARD and WELLS were Tribal Councilmen on the Blackfeet Tribal Business Council. In 2010 and 2011, the Blackfeet Fish and Wildlife Department received federal funding in excess of $220,000, each year.
Between 2010 and 2011, SKUNKCAP, ST. GODDARD, and WELLS held four big-game hunts for country musicians participating in an outdoors television show on the Blackfeet Indian Reservation without obtaining the limited and expensive hunting licenses for non-tribal members to shoot elk, moose, deer, and a black bear. They also used tribal funds and personnel to outfit and guide the musicians, television show hosts, and a fly fishing expert.
Michael W. Cotter, United States Attorney for Montana said, "These defendants were public officials of the Blackfeet Tribe and leaders in the community who used their positions to steal property from the Blackfeet Tribal Nation. Public corruption is a crime that will be prosecuted by the Montana United States Attorney's Office whenever it occurs and wherever it is discovered. This prosecution is an example of great investigative collaboration between the U.S. Fish and Wildlife Service, The Federal Bureau of Investigation, and the Blackfeet Internal Affairs Office."
Fridley Man Pleads Guilty to Robbing Two Twin Cities’ Shoe StoresRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 42-year-old Fridley man pleaded guilty to robbing two Twin Cities’ shoe stores in early January. Peter Christopher Nunn specifically pleaded guilty to two counts of interference with commerce by robbery, pursuant to the Hobbs Act. Nunn, who was indicted on February 5, 2013, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Nunn admitted that on January 5, 2013, he stole approximately $300 from the Payless ShoeSource store, located at 8510 Springbrook Drive in Coon Rapids, while threatening employees with a weapon that was later determined to be a BB gun. He also admitted ordering two people into a bathroom, barricading the bathroom door with a chair, and then leaving the store.
In addition, Nunn admitted that on January 7, 2013, he stole approximately $700 from the Famous Footwear store located at 1593 E. 17th Avenue in Shakopee in the same manner. Following that robbery, police arrested Nunn after a high-speed chase.As stated, Nunn was charged in federal court under the Hobbs Act, which was passed by Congress in1946. The Act allows federal prosecutors to prosecute violent habitual criminals who commit armed robberies in places of business that involve interstate commerce.
For his crimes, Nunn faces a potential maximum penalty of 20 years in prison on each count. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the police departments in Coon Rapids and Shakopee. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.Fort Worth Man Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — Richard D. Anderson, 59, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge John McBryde to 97 months in federal prison, after pleading guilty to an indictment charging one count of possession of child pornography. Anderson has been in custody since he entered that guilty plea in March 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in September 2012, officers with the Fort Worth Police Department’s Internet Crimes Against Children (ICAC) Unit executed a search warrant at Anderson’s home and seized computers and removable storage media. A forensic exam revealed images and videos of child pornography. Anderson admitted that he had downloaded images of child pornography from the Internet using newsgroups and that he had moved images from his computer to his flash drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Fort Worth Police Department’s ICAC and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Aisha Saleem was in charge of the prosecution.
Fort Dodge Man Charged with Federal Child Pornography OffensesRead the Press Release
Brian Skou, age 26, of Fort Dodge, Iowa, has been indicted on federal child pornography charges. The charges are contained in an Indictment unsealed June 19, 2013, in United States District Court in Sioux City.
The Indictment alleges that, between 2007 and 2012, Skou received and possessed child pornography.
If convicted on all charges, Skou faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, $750,000 in fines, a $300 special assessment, and at least 5 years and up to life on supervised release following any imprisonment.
Skou appeared on June 19, 2013, in federal court in Sioux City and was released on bond. Skou’s next appearance for trial is set for August 5, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Webster County Sheriff’s Office and the Fort Dodge Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3019.
Former Workers at Los Alamos National Laboratory<br /> Plead Guilty to Atomic Energy Act ViolationsRead the Press Release
The Justice Department today announced that a scientist and his wife, who both previously worked as contractors at the Los Alamos National Laboratory (LANL) in New Mexico, have pleaded guilty to charges under the Atomic Energy Act and other charges relating to their communication of classified nuclear weapons data to a person they believed to be a Venezuelan government official.
The guilty pleas, which were entered today by Pedro Leonardo Mascheroni, 77, a naturalized U.S. citizen from Argentina, and Marjorie Roxby Mascheroni, 70, a U.S. citizen, in the U.S. District Court for the District of New Mexico, were announced by John Carlin, Acting Assistant Attorney General for National Security; Kenneth J. Gonzales, U.S. Attorney for the District of New Mexico and Carol K.O. Lee, Special Agent in Charge of the FBI’s Albuquerque Division.
According to court filings, Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in Sept. 2010, and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure to an advantage to a foreign nation. The indictment also charged the couple with conspiracy to convey and conveying classified Restricted Data. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Today, Mascheroni pleaded guilty to Counts 7 and 8 of the indictment, charging him with conversion of government property, and Counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to an information charging him with two counts of communication of Restricted Data and one count of retention of national defense information. Mascheroni admitted that in Nov. 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in Nov. 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in Oct. 2009.
Roxby Mascheroni pleaded guilty to Count 6 of the indictment, charging her with conspiracy, and Counts 16 through 22, charging her with making false statements. She also pleaded guilty to an information charging her with conspiracy to communicate Restricted Data. In entering her guilty plea, Roxby Mascheroni admitted that between Oct. 2007 and Oct. 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in Oct. 2009.
Under the terms of the plea agreements, which are subject to court approval, Mascheroni will be sentenced to a prison term within the range of 24 to 66 months followed by ten years of supervised release, and Roxby Mascheroni will be sentenced to a prison term of 12 to 24 months followed by nine years of supervised release. The couple’s sentencing hearings have yet to be scheduled.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution is being handled by Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico, and Trial Attorneys Kathleen Kedian and David Recker of the Counterespionage Section of the Justice Department’s National Security Division.
Former State Representative Hudson Hallum and Father Sentenced for Conspiracy to Commit Election FraudRead the Press Release
Little Rock - Patrick C. Harris, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, and Federal Bureau of Investigation Special Agent in Charge Randall C. Coleman announced the sentencing of former State Representative Hudson Hallum, age 31, and his father, Kent Hallum, age 54, on a charge of conspiracy to commit election fraud. The Hallums were sentenced by United States District Judge Kristine G. Baker. Hudson Hallum was sentenced to three years probation with nine months of home confinement on electronic monitoring, fined $20,000 and ordered to perform 100 hours of community service. Kent Hallum was sentenced to three years probation with nine months home confinement on electronic monitoring and was ordered to pay a fine of $10,000. Kent was also sentenced to perform100 hours of community service. During the period of home confinement for both Hudson and Kent, employment is excepted as well as other activities approved in advance by probation.
"The activities of Mr. Hallum and his associates are very disappointing. It erodes the very basis for our democracy," said Harris. "The United States Attorney's Office considers protecting the integrity of the electoral process a priority for the people of Arkansas. Investigating and prosecuting voter fraud schemes such as this case, are essential to restoring confidence in elected public officials."
"Today's sentencings of a father and son for their roles in a voter fraud scheme demonstrate just how pervasive public corruption can be," stated FBI Special Agent in Charge Randall C. Coleman. "My office will continue to aggressively investigate those public officials who choose to violate the trust of Arkansans by engaging in these corrupt schemes."
Both Hudson and Kent Hallum waived indictment and entered guilty pleas to a conspiracy charge in an Information on September 5, 2012. In doing so, each acknowledged his participation in a conspiracy to bribe voters to influence absentee votes in the Arkansas District 54 primary, its runoff election, and the general election, all of which were held between February and July 2011. Hudson Hallum was a candidate in that election and won the District 54 House seat.
Former West Memphis Police Officer Sam Malone, age 32, and former West Memphis City Councilman Phillip Wayne Carter, age 44, who also pled guilty to the conspiracy charge, were sentenced in hearings held May 21 and May 22, 2013. Malone was sentenced to three years probation, the first 7.2 months of which will be spent on home confinement with electronic monitoring, plus 100 hours of community service. Malone will be restricted to his home while on confinement except for the hours of his employment. Carter was sentenced to three years probation, the first five months of which will be spent on home confinement with electronic monitoring, a $2,500 fine plus 100 hours of community service. Carter will also be restricted to his home while on confinement except for the hours of his employment.
According to the felony Information to which the defendants pled guilty, Hudson Hallum, was elected to House Seat 54 on July 12, 2011. Kent Hallum, age 53, managed the finances and certain logistics of his son's campaign for the District 54 seat, including the campaign's effort to solicit and secure votes cast by absentee ballot. Hudson Hallum hired Carter who was both a West Memphis City Councilman and a Crittenden County Juvenile Probation Officer, to implement the Hallum campaign's absentee ballot strategy. Malone who was a West Memphis police officer, assisted Carter in implementing the Hallum campaign's absentee ballot strategy.
Hudson Hallum, along with others, declared his candidacy as a Democrat in the special primary election for House Seat 54, which took place on April 20, 2011. Because neither Hudson Hallum nor any other Democratic candidate obtained the required majority of votes in the special primary election, a special primary runoff election took place on May 10, 2011. Hudson Hallum was certified as the winner in the special primary runoff by 8 votes. Hudson Hallum also won the special general election held on July 12, 2011, and was subsequently certified as the winner of the House District 54 special election. At the time of the elections, District 54 included West Memphis, Marion, Earle, and Turrell, Arkansas, as well as other rural areas of Crittenden County.
Hudson Hallum and Kent Hallum tasked Carter, Malone, and others with identifying absentee ballot voters within District 54; obtaining and distributing absentee ballot applications to particular voters; determining when absentee ballots were mailed to absentee voters by the Crittenden County Clerk's Office; and making contact with recipients of absentee ballots to assist those voters in completing the ballots. Once such absentee ballots were completed, the absentee voters typically placed their ballots in unsealed envelopes, which were retrieved by Carter, Malone and others and then subsequently delivered to either Hudson Hallum or Kent Hallum for inspection to ensure that the absentee ballot votes had been cast for Hudson Hallum. After inspection by Hudson Hallum or Kent Hallum, the absentee ballots that contained votes for Hudson Hallum were sealed and mailed to the Crittenden County Clerk's Office. If a ballot contained a vote for Hudson Hallum's opponent, it was destroyed.
At the plea hearing held September 5, 2012, the defendants admitted that certain absentee ballot voters received things of value in exchange for their votes being cast for Hudson Hallum. For example, in or about May 2011, Carter and Malone provided a chicken dinner to an individual in exchange for the absentee ballot votes of that individual and one other individual. Further, on or about May 4, 2011, Carter contacted Hudson Hallum about a family of eight who had requested a "family meal" in exchange for their absentee ballot votes being cast in favor of Hudson Hallum. Carter requested $20 from Hudson Hallum to pay for the food, to which request Hudson Hallum agreed.
In addition, on or about May 5, 2011, Carter notified Hudson Hallum that some absentee ballot voters were "holding on" to their absentee ballots because they needed money for food. Hudson Hallum instructed Carter to obtain money for the absentee voters from Kent Hallum. Hudson Hallum further told Carter that $20 to $40 was too much to pay for one vote, but that this amount was acceptable to pay for the votes of multiple members of a household. On that same date, Hudson Hallum also told Carter, "We need to use that black limo and buy a couple of cases of some cheap vodka and whiskey to get people to vote." Two days later, Carter and Kent Hallum spoke with an individual in Memphis, Tennessee about getting a discounted price for the purchase of 100 half pints of vodka for the campaign.
The investigation was conducted by the Federal Bureau of Investigation and the Arkansas State Police.
Former Soldier Convicted of Stealing from the GovernmentRead the Press Release
Hattiesburg, Miss – Christopher Chase Bradshaw, 28, of Hattiesburg, pled guilty to conspiracy to defraud the United States and theft of government funds, U.S. Attorney Gregory K. Davis announced today. Bradshaw was a cashier in a military finance unit stationed in Afghanistan. As a result of his access to a military sponsored debit card program, Bradshaw was able to add money to his debit card, along with the debit cards of two others, without having those funds withdrawn from his personal bank account. During the course of the conspiracy, Bradshaw and others stole almost $30,000 from the government.
Bradshaw is scheduled to be sentenced on August 29, 2013 by United States District Judge Keith Starrett in Hattiesburg, Mississippi. He faces a maximum sentence of ten years in prison and a fine of up to $500,000.
The case was investigated by the Army Criminal Investigation Division, and was prosecuted by the United States Attorney’s Office and the Fraud Section of the Department of Justice.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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Former Security Contractor CEO Sentenced for Masterminding $31 Million Disadvantaged Small Business Fraud SchemeRead the Press Release
The former chief executive officer of a Virginia-based security contracting firm was sentenced in the Eastern District of Virginia to 72 months in prison for creating a front company to obtain more than $31 million intended for disadvantaged small businesses and for bribing the former regional director for the National Capital Region of the Federal Protective Service (FPS) as part of the scheme. The front company obtained the contracts through the Small Business Administration’s (SBA) Section 8(a) program, which allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
“Keith Hedman used his expertise gleaned from decades as a government contractor to cheat the system and steal tens of millions from minority-owned small business owners,” said Acting Assistant Attorney General Raman. “Today’s sentence shows that those who resort to deceit and bribery to secure federal contracts will be caught and held accountable.”
“Keith Hedman tried to game the system and take advantage of a government program designed to help minority-owned small businesses,” said U.S. Attorney Neil H. MacBride. “He committed fraud, he undermined the trust of the U.S. government and this type of conduct will not be tolerated. My office is committed to prosecuting those who cheat the government to the fullest extent of the law.”
“I commend the outstanding efforts of our agents and the other law enforcement agencies involved in this case in protecting the integrity of the Federal Government’s procurement program and taxpayer dollars” said NASA Inspector General Paul K. Martin.Keith Hedman, 53, of Arlington, Va., was sentenced today after pleading guilty to major government fraud and conspiracy to commit bribery on March 13, 2013. Hedman was also ordered to forfeit approximately $6.1 million.
According to court documents, in or about 2011 Hedman formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected an employee, Dawn Hamilton, 48, of Brownsville, Md., to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances, allocation of personnel, and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In 2010, Hedman withdrew $1 million in cash from Company B’s accounts and gave the funds in cash to Hamilton and three other conspirators. In 2011, Hedman approached Hamilton’s brother about starting another shell company to continue the scheme. The trio submitted another fraudulent application to the SBA, but it was rejected.
Later in 2011, Hedman agreed to pay Derek Matthews, 47, of Harwood, Md., the former FPS Regional Director for the National Capital Region, $50,000 and a percentage of new business in exchange for Matthews helping Company B obtain contracts. During the bribery scheme, Matthews served as FPS Deputy Assistant Director for Operations, a law enforcement position in which he had daily oversight of physical security programs and oversight of approximately 13,000 FPS officers at approximately 9,000 federal buildings.
In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments. Seven other defendants have pleaded guilty in the scheme.
This case is being investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
Former Security Contractor CEO Sentenced for Masterminding $31 Million Disadvantaged Small Business Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – The former chief executive officer of a Virginia-based security contracting firm was sentenced in the Eastern District of Virginia to 72 months in prison for creating a front company to obtain more than $31 million intended for disadvantaged small businesses and for bribing the former regional director for the National Capital Region of the Federal Protective Service (FPS) as part of the scheme. The front company obtained the contracts through the Small Business Administration’s (SBA) Section 8(a) program, which allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
“Keith Hedman used his expertise gleaned from decades as a government contractor to cheat the system and steal tens of millions from minority-owned small business owners,” said Acting Assistant Attorney General Raman. “Today’s sentence shows that those who resort to deceit and bribery to secure federal contracts will be caught and held accountable.”
“Keith Hedman tried to game the system and take advantage of a government program designed to help minority-owned small businesses,” said U.S. Attorney Neil H. MacBride. “He committed fraud, he undermined the trust of the U.S. government and this type of conduct will not be tolerated. My office is committed to prosecuting those who cheat the government to the fullest extent of the law.”
“I commend the outstanding efforts of our agents and the other law enforcement agencies involved in this case in protecting the integrity of the Federal Government’s procurement program and taxpayer dollars” said NASA Inspector General Paul K. Martin.
Keith Hedman, 53, of Arlington, Va., was sentenced today to 72 months in prison and two years of supervised release after pleading guilty to major government fraud and conspiracy to commit bribery on March 13, 2013. Hedman was also ordered to forfeit approximately $6.1 million and pay a $15,000 fine.
According to court documents, in or about 2011 Hedman formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected an employee, Dawn Hamilton, 48, of Brownsville, Md., to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances, allocation of personnel, and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In 2010, Hedman withdrew $1 million in cash from Company B’s accounts and gave the funds in cash to Hamilton and three other conspirators. In 2011, Hedman approached Hamilton’s brother about starting another shell company to continue the scheme. The trio submitted another fraudulent application to the SBA, but it was rejected.
Later in 2011, Hedman agreed to pay Derek Matthews, 47, of Harwood, Md., the former FPS Regional Director for the National Capital Region, $50,000 and a percentage of new business in exchange for Matthews helping Company B obtain contracts. During the bribery scheme, Matthews served as FPS Deputy Assistant Director for Operations, a law enforcement position in which he had daily oversight of physical security programs and oversight of approximately 13,000 FPS officers at approximately 9,000 federal buildings.
In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments. Seven other defendants have pleaded guilty in the scheme.
This case is being investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Rhode Island Bank Employee Pleads Guilty to Embezzling Funds from Federal Tax ChecksRead the Press Release
PROVIDENCE, R.I. – Elvy Gomez, 39, of Providence, a former employee of Bank of America, has pleaded guilty in federal court in Providence to embezzling more than $95,000 from stolen federal tax checks. Gomez admitted to the court that he used his position at the bank to access a dormant checking account which he used to deposit stolen treasury checks and then withdraw the funds. Gomez pleaded guilty to one count each of theft of government property, forging an endorsement on treasury checks and money launderings.
Gomez’s guilty plea was announced by United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston Field Office of Internal Revenue Service, Criminal Investigation (IRS-CI).
According to information presented to the court, an investigation by IRS-CI determined that in January 2011, Gomez use his position as an employee of the bank to access a dormant checking account of an individual who moved to the Dominican Republic in 2009. He also obtained an ATM card in that person’s name. Gomez admitted that between April 2012 and August 2012, he deposited fourteen stolen treasury checks totaling $95,559 into the bank account and then withdrew the funds for his own personal use.
At sentencing, Gomez faces up to 10 years in federal prison; 3 years of supervised release and a fine of up to $250,000 on each charge. He is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on September 6, 2013.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
Agents from the U.S. Secret Service assisted in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Former Illinois Legislative Aide Faces Fraud Charges Related to $1.2 Million GrantRead the Press Release
SPRINGFIELD, Ill. – A former legislative aide to an Illinois state representative, Lloyd Kelly, is scheduled to appear in federal court in Springfield next week for an initial pretrial conference related to an indictment that charges Kelly with a single count of mail fraud.
A federal grand jury returned a superseding indictment against Kelly, 52, in September 2012; the initial indictment was returned in July 2012. The indictment had remained sealed pending Kelly’s arrest and court appearance. Kelly was arrested on May 20, 2013, and appeared before Senior U.S. District Judge Richard Mills. At that time, Kelly was ordered released on bond, and trial was scheduled on Jul. 2, 2013.
The superseding indictment charges Kelly with one count of mail fraud related to the alleged fraudulent use of a $1.2 million grant awarded in 2007 by the Illinois Department of Public Health to the Let’s Talk Let’s Test Foundation, a non-profit organization founded by Kelly and a member of the Illinois House of Representatives, referred to in the indictment as Public Official A, in 2003. From June 2007 to February 2009, the indictment alleges that Kelly participated in a scheme to defraud the state of the grant funds.
According to the indictment, the African-American HIV/AIDS Response Act was enacted in Illinois in 2005, co-sponsored by Public Official A, to address the legislative finding that HIV/AIDS in the African-American community was a crisis separate and apart from the issue of HIV/AIDS in other communities. In 2006, the Act established a grant program to fund programs to prevent the transmission of HIV and to create a service delivery system to reduce the disparity between African Americans and other population groups in Illinois.
In or about January 2007, according to the indictment, Public Official A met with the Illinois Department of Public Health and others to determine grant recipients. The state transferred $3 million to the grant program, and the Department selected approximately 50 recipients to receive grants from $25,000 to $50,000. Only one recipient, the Let’s Talk Let’s Test Foundation, received two grant awards totaling $1.2 million, representing 40 percent of the total 2007 funding.
Under the terms of the grant agreements, signed by Kelly, the indictment alleges the Foundation agreed to provide a variety of services and programs, including development of a statewide African-American HIV Prevention Plan and a plan for creating and maintaining at least 17 one-stop shopping HIV/AIDS facilities statewide.
The indictment alleges that Kelly falsely represented that the Foundation would perform the requirements of the grant when he well knew the Foundation was neither capable of performing nor intended to perform the requirements, did not in fact perform a substantial number of the grant requirements, and diverted a substantial amount of the Foundation’s grant funds for other purposes, including Kelly’s personal benefit and that of Public Official A and their associates.
The indictment alleges that Kelly diverted grant funds to himself to pay personal expenses and a bonus payment to himself, toward purchase of his personal residence, and for personal expenses, as well as payments to others, including to an organization that paid wages to individuals for work performed for the Illinois representative, to pay rent for the representative’s legislative and campaign office; and $7,000 to purchase tickets, two skyboxes, food and alcohol for the 2007 Chicago Football Classic, which Kelly attended with the representative and others. The indictment further alleges that Kelly made false statements to Illinois Department of Public Health during its monitoring and auditing of the Foundation’s grants.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. The Illinois Department of Public Health is also cooperating in the investigation. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
If convicted, the statutory penalty for the offense of mail fraud is up to 20 years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
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Former Fugitive Pleads Guilty to Multi-Million Dollar Sophisticated Fraud Scheme with Ties to NigeriaRead the Press Release
ALEXANDRIA, Va. – Tobechi Eyinna Onwuhara, 33, of Dallas, Texas, pleaded guilty today to charges of conspiracy to commit bank fraud, conspiracy to commit money laundering, and computer fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; David E. Beach, Special Agent in Charge of the United States Secret Service’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police; made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.
Onwuhara was charged with conspiracy to commit bank fraud and a federal warrant was issued for his arrest on Aug. 1, 2008. He was later indicted by a federal grand jury on April 21, 2011. He was arrested in Australia after more than four years as a fugitive. Onwuhara faces a maximum penalty of thirty years in prison on the conspiracy to commit bank fraud charge alone when he is sentenced on September 20, 2013.
According to court records, Onwuhara is the ringleader of a group of Nigerians who used fee-based web databases to search for potential victim account holders with large balances in home equity line of credit (HELOC) accounts. This information included name, address, date of birth, and social security number. Once the conspirators identified a victim, they used other online databases to obtain information commonly used in security questions, such as the victim’s mother’s maiden name. The conspirators then obtained credit reports on the victims in order to verify personal information and account balances.
Armed with a victim’s personal information, the conspirators called the victim’s financial institution, impersonated the victim, and transferred the majority of the available money from the HELOC account into an account from which a wire transfer could be sent. The conspirators would then wire transfer hundreds of thousands of dollars to domestic or overseas accounts controlled by members of the conspiracy. The conspirators used caller-ID spoofing services, prepaid cell phones and PC wireless Internet access cards, and transferred victims’ home telephone numbers in order to impersonate the victim and avoid identifying themselves.
Once the fraudulently-transferred funds arrived in the destination bank, a conspirator with access to the account would withdraw funds and transfer them to other members of the conspiracy after taking a portion of the proceeds for himself.
This case was investigated by the FBI’s Washington Field Office, United States Secret Service’s Washington Field Office, and the Alexandria Police Department, with assistance from the U.S. Marshals Service. Assistant United States Attorneys Alexander T.H. Nguyen and Lindsay Kelly are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Enron CEO Jeffrey Skilling <br /> Resentenced to 168 Months for Fraud, Conspiracy ChargesRead the Press Release
Former Enron Chief Executive Officer Jeffrey K. Skilling has been resentenced to 168 months in prison on conspiracy, securities fraud, and other charges related to the collapse of Enron Corporation. In addition to the prison sentence, Skilling, 59, was ordered to forfeit approximately $42 million to be applied toward restitution for the victims of the fraud at Enron.
Acting Assistant Attorney General Mythili Raman of the Criminal Division made the announcement after Skilling was resentenced before U.S. District Judge Sim Lake at the U.S. District Court in Houston.
“The sentence handed down today ends years of litigation, imposes significant punishment upon the defendant and precludes him from ever challenging his conviction or sentence,” said Acting Assistant Attorney General Raman. “With today’s court action, victims of Skilling’s crimes will finally receive more than $40 million that he owes them. We appreciate the hard work and dedication of all the prosecutors and agents who have handled this important case from the initial investigation to today’s successful conclusion.”
A federal jury found Skilling guilty in Houston on May 25, 2006, of one count of conspiracy, 12 counts of securities fraud, one count of insider trading, and five counts of making false statements to auditors. Judge Lake initially sentenced Skilling to serve 292 months of imprisonment on Oct. 23, 2006. On Jan. 6, 2009, the United States Court of Appeals for the Fifth Circuit affirmed Skilling’s convictions but vacated his sentence and remanded for a new sentencing hearing. The court of appeals concluded that the district court erred by increasing Skilling’s sentence for having substantially jeopardized the safety and soundness of a financial institution – that is, Enron’s pension plan. As a result, the court of appeals effectively reduced Skilling’s guidelines range of imprisonment by approximately nine years.
In May 2013, the government and Skilling entered into an agreement to recommend jointly to the district court a sentence between 168 months and 210 months of imprisonment, a limited reduction in Skilling’s guidelines range of imprisonment in exchange for Skilling agreeing, among other things, not to contest the original forfeiture and restitution order and to waive all appeals and other litigation. As court documents make clear, the government entered into this agreement, in part, to bring finality to Skilling’s convictions and thereby allow the government to promptly seek the distribution of approximately $42 million to victims of Skilling’s crimes.
Skilling’s convictions stemmed from a scheme to deceive the investing public, the U.S. Securities and Exchange Commission, and others about the true performance of Enron’s businesses. The scheme was designed to make it appear that Enron was growing at a healthy and predictable rate, consistent with analysts’ published expectations, that Enron did not have significant write-offs or debt and was worthy of an investment-grade credit rating, that Enron was comprised of a number of successful business units, and that the company had an appropriate cash flow. This scheme had the effect of artificially inflating Enron’s stock price, which increased from approximately $30 per share in early 1998 to over $80 per share in January 2001, and artificially stemming the decline of the stock during the first three quarters of 2001.
The fraud scheme eventually unraveled and Enron filed for bankruptcy in December 2001, making its stock virtually worthless.
The investigation into Enron’s collapse was conducted by the Enron Task Force, a team of federal prosecutors supervised by the Justice Department’s Criminal Division, and Special Agents from the FBI and IRS Criminal Investigation. The Task Force received considerable assistance from the Securities and Exchange Commission. The resentencing hearing was handled by Patrick Stokes, Albert Stieglitz and Robert Heberle of the Criminal Division’s Fraud Section.
Former Elementary School Teacher Sentenced to 120 Months in Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – Robert Fenn, 27, of Herndon, Va., was sentenced today to 120 months in prison, followed by 20 years of supervised release, for receipt and possession of child pornography. Prior to his June 2012 arrest on related, local charges, Fenn was a special education teacher at Poplar Tree Elementary School in Chantilly, Va.
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.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Lt. Colonel Edwin C. Roessler, Jr., Acting Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge James C. Cacheris.
“We vigorously investigate and prosecute all those who commit child pornography offenses,” said U.S. Attorney Neil H. MacBride. “This is especially so when those same criminals have been entrusted with the care of our children. The defendant will now have the next ten years to consider the consequences of his actions.”
On April 3, 2013, a federal jury returned a verdict of guilty against Fenn for one count of receipt of child pornography and one count of possession of child pornography. According to court records and evidence adduced at trial, Fenn was identified through an international initiative originated with Italian law enforcement that investigated a website offering access to child pornographic images and/or video files identified by the domain name “liberalmorality.com.” The website was hosted in the United States and HSI obtained internet records showing each internet account that accessed the website and the specific images each account accessed.
Fenn taught special education at Poplar Tree Elementary School in Chantilly, Va. and gave private music lessons to children in their homes. Fenn admitted an interest in girls between the ages of nine and 14, which corresponded to the ages of the victims of child pornography depicted in images and videos found on Fenn’s computers and external hard drives.
This case was investigated by HSI’s Child Exploitation Section in the Washington Field Office and the Fairfax County Police Department. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, and Assistant United States Attorneys Lindsay Kelly and Jay Prabhu are prosecuting the case on behalf of the United States.
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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”Former Army Soldier Sentenced for Murder-for-Hire and Gun PossessionRead the Press Release
LAREDO, Texas – A fourth man charged in relation to a murder-for-hire conspiracy has been handed a significant federal sentence, United States Attorney Kenneth Magidson announced today. Samuel Walker, 29, of Sharon, Miss., was convicted in November 2012 along with Calvin Epps, following a seven-day trial.
Today, Senior United Sates District Court Judge George P. Kazen sentenced Walker to respective sentences of 120 and 60 months for conspiracy to commit murder for hire and for possessing a firearm during in and in relation to a crime of violence. Following his 15-year sentence, he will be on supervised release for five years.
According to the evidence presented at trial, the investigation began in January 2011 when co-defendant Marcus Mickle, 21, of Columbia, S.C., began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. According to the testimony of DEA agents, the discussions concerned the distribution of marijuana in the Columbia area and how Mickle and co-defendant Calvin Epps, 29, of Hopkins, S.C., told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to co-defendant Kevin Corley, 30, of Columbia, who identified himself as an active duty officer in the Army responsible for training soldiers. According to the agents’ testimony, Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
Over the next several months, Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience and access to information/equipment afforded him as an active duty soldier.
On Jan. 7, 2012, Corley traveled to Laredo and met with undercover agents. During this meeting, he stated that he could raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there. Corley stated he would need to bring his own team and agreed to the raid and killing for a $50,000 fee and five kilograms of cocaine.
During March 2012, Corley allegedly arranged for 300 pounds of marijuana to be delivered to Mario Corley, 41, of Saginaw, Texas, in Charleston, S.C. Kevin Corley also assisted in brokering 500 pounds of marijuana and five kilograms of cocaine for Mickle and Epps and discussed with agents the distribution of these narcotics in South Carolina, Texas and Colorado.
Agents testified that on March 5, 2012, Kevin Corley delivered two AR-15 assault rifles with scopes, an airsoft assault rifle, five allegedly stolen ballistic vests and other miscellaneous equipment to an undercover agent in Colorado Springs, Colo., in exchange for $10,000. At the meeting, Kevin Corley and the undercover agent again discussed the contract killing and the retrieval of the cocaine which was to occur on March 24, 2012. Kevin Corley stated he had purchased a new Ka-Bar knife to carve a “Z” into the victim’s chest and was planning on buying a hatchet to dismember the body. Evidence at trial demonstrated how Kevin Corley told agents he had discussed the plan with Walker and that Walker was going to be a part of the team that would come to Texas to commit the murder for hire. The jury also heard evidence that he and Walker had gone to the rifle range and test-fired Walker’s scoped rifle.
On March 24, 2012, Kevin Corley, Walker and Shavar Davis, 30, of Denver, Colo., traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim, the logistics of performing the contract kill and their respective roles.
During the trial, the jury heard about this meeting and that Walker contended he could hit the intended victim from more than two football fields away with his rifle. Agents testified that immediately thereafter, the three were arrested and a fourth suspect was shot and killed. A subsequent search of the vehicle in which Corley and the other co-conspirators arrived revealed two semi-automatic rifles with scopes, one .300 Caliber Weatherby Magnum bolt-action rifle with a scope and bipod, one hatchet, one Ka-Bar knife, one bag of .223 caliber ammunition and one box of .300 caliber ammunition.
During trial, Kevin Corley testified that the .300 caliber Weatherby Magnum rifle and ammunition belonged to Walker and that Walker was supposed to take the long-distance shot at the intended victim with this weapon. Walker also testified and admitted that rifle was his but claimed he came to Laredo, not to kill anyone, but to train clients for security purposes that Kevin Corley had met in Laredo.
Both Kevin Corley and Walker testified that they served in the Army together and were deployed to Afghanistan. Walker was a Sergeant at the time and served for a time in Kevin Corley’s infantry platoon. Walker and Kevin Corley returned to Fort Carson, Colo., after their deployment to Afghanistan in the summer of 2011.
Mickle was sentenced last week, also to 15 years, while Davis received a sentence of 10 years in federal prison. Robert Corley, who pleaded guilty to the marijuana conspiracy, was previously sentenced to 30 months in prison. The remaining co-defendants - Kevin Corley, Calvin Epps and Mario Corley - have not yet been scheduled for sentencing.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.
Florida Businessman Sentenced in Manhattan Federal Court to 11 Years in Prison in Connection with $13 Million Fraud Scheme Involving Phony Facebook and Groupon StockRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOHN A. MATTERA was sentenced in Manhattan federal court to 11 years in prison for his role in a $13 million scheme to defraud investors through false ownership claims of stock in Facebook, Inc. (“Facebook”) and Groupon, Inc. (“Groupon”) before their initial public offerings, and in other private companies. MATTERA pled guilty to securities fraud and wire fraud charges in October 2012, and he agreed to pay restitution to the victims of his offense and consented to the entry of a $13 million forfeiture order. MATTERA was sentenced today by U.S. District Judge Richard J. Sullivan.
Manhattan U.S. Attorney Preet Bharara stated: “John Mattera enjoyed a lavish lifestyle, funded by approximately $13 million he procured from investors with false promises of profit from high-profile stocks. He then took millions for dollars for himself. Today’s sentence ensures he will pay a substantial price for his fraud.”
According to the charging instruments filed in this case and statements made during court proceedings:
In 2010 and 2011, MATTERA served as Chairman of the Advisory Board of Praetorian Global Fund Ltd. (“Praetorian”), a professional mutual fund, where he was responsible for the day-to-day management decisions. Beginning in the late summer of 2010, MATTERA and others offered investors the opportunity to invest in special purpose entities related to Praetorian (the “G Power Entities”). MATTERA falsely represented that the G Power Entities owned shares in companies such as Facebook and Groupon when they were still private. Ownership of stock in these private companies was particularly attractive to certain investors because, as MATTERA and others communicated, there was an expectation that initial public offerings would soon occur, thereby potentially increasing the value of the shares. In reality, neither MATTERA, Praetorian, nor the G Power Entities held these shares of stock.
Based on the misrepresentations of MATTERA and others, investors sent more than $11 million into “escrow accounts” maintained at a Florida bank. MATTERA reassured investors that their money would be held in the escrow accounts until either the offering was completed or another triggering event took place. Investors were told they would then receive their ownership interest in the particular special purpose entity. However, instead of maintaining the investor money in the escrow accounts as MATTERA promised, MATTERA caused the vast majority of the funds to be transferred to other entities with which he was associated. Ultimately, MATTERA misappropriated approximately $13 million of investor money, spending nearly $4 million on personal items for himself and his family, such as expensive jewelry, interior decorating, and luxury cars.
In addition to the prison term, Judge Sullivan sentenced MATTERA, 51, of Boca Raton, Florida, to three years of supervised release. MATTERA was also ordered to forfeit $11.8 million and pay restitution to be determined, as well as a $400 special assessment fee.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office and the Internal Revenue Service, Criminal Investigation, which jointly investigated this case. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Assistant United States Attorneys Eugene Ingoglia, David Miller, and Paul Monteloni are in charge of the prosecution.
Five Individuals Indicted and Arrested for Conspiracy to Smuggle Goods into the United States and Money LaunderingRead the Press Release
SAN JUAN, P.R. – Yesterday, a Federal grand jury returned a three-count indictment against five individuals and three companies for conspiracy to smuggle goods into the United States, and conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was conducted by the Immigration and Customs Enforcement (ICE) Department of Homeland Security (HIS) and Customs and Border Patrol (CBP) Import Specialist Branch.
According to the indictment, the defendants knowingly and willfully combined, conspired, confederated, and agreed with each other to smuggle and clandestinely introduce, or attempt to smuggle or clandestinely introduce, merchandise imported from China, to wit: aluminum, by passing false and fraudulent invoices and documents through a CBP customhouse with the intent to defraud the United States of approximately $26.7 million in lawful antidumping and countervailing duties accruing upon said merchandise.
The defendants and entities are:
- Samuel García-Adarme - the owner of Sultana Screens & Aluminum Sales and Vice President of Aluwest Industries;
- Edrick García -Vàzquez - the President of PRP Trading Corp;
- Armando García-Vàzquez - the Vice President of PRP Trading and the Chief Financial Officer of Sultana Screens & Aluminum Sales;
- Carlos Minguela-Ortiz - the accountant for Sultana Screens & Aluminum Sales and PRP Trading;
- William Tang Piu Wong - the owner of AGI Trading Corporation, facilitated the importation of Chinese manufactured goods into United States commerce;
- Sultana Screens & Aluminum Sales - located in Mayagüez, and two additional locations in Caguas and Ponce, P.R., imported aluminum and manufacturing related products for sale;
- PRP Trading Corp. - located in Arecibo, P.R., imported aluminum; and
- Aluwest Industries - located in Ponce, P.R., manufactured aluminum products.
The object of the conspiracy was that defendants Samuel García-Adarme, Edrick García-Vàzquez, Armando García-Vàzquez and Carlos Minguela-Ortiz, owners and/or principals of Sultana Screens & Aluminum Sales, PRP Trading, and Aluwest Industries, with the assistance of William Tang Piu Wong, would purchase aluminum from China, transship the aluminum to Malaysia, repackage the aluminum and create false invoices to make it appear as though the aluminum originated in Malaysia, and then import the aluminum into Puerto Rico in order to avoid payment of the antidumping and countervailing duties (ADD/CVD).
ADD and CVD are additional duties imposed on goods entering into U.S. commerce for consumption. The imposition of ADD/CVD is a prerogative of the U.S. Department of Commerce (DOC) to avoid imported merchandise being sold below fair market value. Since November 2010, the Department of Commerce imposed antidumping and countervailing duties on Chinese-origin aluminum, which ranged from 30 - 33% of the declared value of the imported aluminum, and 374.15% of the declared value of the imported aluminum, respectively.
Count two of the indictment charges defendants Edrick and Armando García-Vàzquez, Minguela Ortiz and Wong, along with the three companies, with conspiracy to commit wire fraud. The defendants, having devised a scheme or artifice to defraud the United States by means of false and fraudulent pretenses did cause to be transmitted by means of wire communications in interstate and foreign commerce electronic mailings for the purpose of executing such scheme or artifice.
Count three charges all defendants with conspiracy to commit money laundering. They conspired to transfer and attempted to transfer funds, that is $6,907,985.43 in United States currency from Puerto Rico to Malaysia, with the intent to promote the carrying on of a specified unlawful activity, which was smuggling goods into the United States.
The forfeiture allegations include a money judgment of $26,758,437.86 for the unpaid ADD/CVD and a money judgment of $6,907, 985.43 for the money laundering count. The government seeks to forfeit real estate properties and bank accounts as substitute assets.
“These individuals are charged with defrauding the United States government of tens of millions of dollars in lawfully imposed duties,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue to investigate and prosecute those who engage in corrupt acts which directly affect fair market competition in imported goods” stated Rodríguez-Vélez.“The ICE HSI Anti-Dumping and Countervailing Duties (ADD/CVD) Program is one way that HSI protects U.S. businesses from fraudulent trade practices. ADD/CVD orders are issued by the Department of Commerce (DOC) and collected and distributed by CBP. Antidumping duties are assessed when importers sell merchandise at less than fair market value, which causes material injury to a domestic industry producing a comparable product. The United States can also impose countervailing duties to offset foreign government subsidy payments on exports of foreign businesses. Duties are imposed to offset the dumping or subsidies provided by the foreign country in order to maintain the competitiveness of United States industry and to foster a level business playing field,” said Ángel Meléndez, special agent in charge of HSI San Juan. “HSI is responsible for investigating importers who evade the payment of ADD/CVD on imported merchandise. ADD/CVD cases are long-term, transnational investigations that require significant coordination between domestic and international offices and with our foreign law enforcement counterparts.”
“CBP is responsible for enforcing the antidumping and countervailing duties (AD/CVD) law and collecting the ADD/CVD duties assessed against applicable imports. Importers who willfully circumvent the provisions of the ADD/CVD law through illegal transshipment, undervaluation or misclassification of merchandise in order to avoid paying these duties will be identified and investigated,” said Marcelino Borges, Director of Field Operations for Puerto Rico and the USVI. “Our officers and trade experts remain vigilant to detect these violators and enforce all trade related laws.”
The case is being prosecuted by Senior Litigation Counsel, Assistant United States Attorney Scott Anderson. If found guilty, the defendants could face a possible sentence of twenty (20) years in prison.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.Fifteen-year Sentence for Jefferson County Man Who Received Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Ryan D. Kasler, 31, of Mt. Pleasant, Ohio was sentenced to 15 years in prison for downloading images of child pornography from the internet.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service and William A. Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, announced the sentence imposed today by Senior U.S. District Judge James Graham.
Kasler pleaded guilty on March 14, 2013 to one count of illegal receipt of child pornography. According to testimony presented during the plea hearing, Kasler was identified during an investigation by Postal Inspectors into subjects who received child pornography through the U.S. Mail. Investigation of a company that was suspected of distributing child pornography indicated that Kasler had purchases 17 separate videos or photo collections of child pornography, which he had downloaded or received through the mail.
Investigators executed a search warrant at Kasler’s home in December 2012 and seized videos, a computer and storage media containing child pornography. Agents arrested Kasler, who has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the cooperative investigation by Postal Inspectors and HSI agents, as well as Assistant U.S. Attorney Heather Hill, who is representing the United States in this case.
Farmers Branch Man Arrested and Charged with Armed Bank RobberyRead the Press Release
FBI Says Luis Delagarza is the “Mesh Mask Bandit”
DALLAS — Luis Delagarza, 59, of Farmers Branch, Texas, has been arrested and charged in a federal criminal complaint with committing the armed bank robbery of a Wells Fargo Bank in Dallas in April 2013. This afternoon, Delagarza made his initial appearance in federal court before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody. A preliminary hearing and motion to detain the defendant will be conducted on Tuesday, June 25, 2013. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division.
“The identification of the ‘Mesh Mask Bandit’ by the FBI’s Bank Robbery Task Force was the result of collaborative local and federal investigation across nine cities,” said Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division. “The arrest of this dangerous individual illustrates the effectiveness of task forces, the support provided by the U.S. Attorney’s Office and cooperation within the law enforcement community.”
According to the complaint and affidavit filed in the case, on April 22, 2013, the FBI was notified that the Wells Fargo Bank, located at 13297 Josey Lane, in Farmers Branch, had been robbed by a Hispanic male wearing a disguise and armed with a handgun. When law enforcement arrived at the bank, a special agent with the FBI interviewed a witness who worked in the bank. The witness advised that he/she was at his/her desk when he/she observed a Hispanic male walk past a window, adjacent to his/her desk, and head toward the Bank’s main entrance. The witness advised that as the man was entering the bank he/she saw him pull down a mask to cover his face. The witness further noted that as the man entered the bank and approached the bank tellers, he pointed a handgun at them and demanded money. As the bank tellers were scared for their well-being, they complied with the robber’s demands. The witness stated that as the robber was leaving the bank, he removed his mask, and again, this witness saw the robber’s face. This witness later positively identified Delagarza in a photo line-up.
The investigation is being conducted by the FBI and the Farmers Branch Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
Drug Dealing Armed Career Criminal SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Timothy McNeal, 31, of Moultrie, Georgia, today before the Honorable Hugh Lawson, Senior United States District Judge in Macon, Georgia.
On March 5, 2013, after a two-day trial, a jury convicted Mr. McNeal of Possession with Intent to Distribute Cocaine Base (“crack” cocaine), Possession with Intent to Distribute Marijuana, and Possession of a Firearm by a Convicted Felon.
Court records reveal that Mr. McNeal was determined to be both a Career Offender under the United States Sentencing Guidelines and an Armed Career Criminal under federal law.
The case developed when agents learned through complaints and interviews that Mr. McNeal was selling illegal drugs from his residence. A search warrant was executed at the residence which revealed quantities of crack cocaine and marijuana, which were packaged and ready for distribution. In addition to the illegal drugs, a Hi-Point 9mm pistol and ammunition was also discovered in the residence.
Judge Lawson sentenced Mr. McNeal to two hundred sixty-two months imprisonment to be served consecutively to an existing State of Georgia sentence on a separate crime, followed by six years of supervised release.
“The federal sentencing guidelines have special provisions to substantially increase sentences for repeat offenders such as Timothy McNeal. As with all federal sentences, this sentence will be served without parole. Being a consecutive sentence, Mr. McNeal will not even begin serving this lengthy federal incarceration until he has served the full remaining time on his current sentence with the State of Georgia. It is extremely unlikely that he will ever again have the opportunity to sell illegal drugs in this community or anywhere else,” said United States Attorney Michael Moore.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Colquitt County Sheriff’s Office, and the Colquitt County Drug Enforcement Team. The case was prosecuted by Assistant United States Attorneys Peter D. Leary and Robert McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Documentary Promotes Awareness of Gun and Gang ViolenceRead the Press Release
BOSTON – The Office of United States Attorney Carmen M. Ortiz has partnered with Stop Handgun Violence, Inc. to produce a 30-minute television documentary entitled “Hitting Home” which will air on WBZ-TV on June 23 at 2:00 pm and on myTV38 (WSBK) on June 26 at 10:30 pm.
The objective of “Hitting Home” is to raise awareness about the impact of gun and gang violence on residents in the areas where these problems are most prevalent. Additionally, the film encourages people to engage with local anti-violence community programs.
“Hitting Home” focuses on the cities of Boston and Springfield, providing a forum for people who have been affected by gun and gang violence in those cities. The film demonstrates what it is really like to live with these issues every day. The documentary further describes several effective grass-roots community groups making inroads of positive change in their neighborhoods.
“While the components of our mission include enforcing the law and providing leadership to prevent crime, it’s important for people to realize that we need them to be a part of the solution and work together with us and local law enforcement to improve the quality of life in our cities,” said United States Attorney Carmen M. Ortiz.
The documentary was developed as the result collaboration between CBS’s Community Partnerships division and the U.S. Attorney’s Project Safe Neighborhoods program, together with its media partner, Stop Handgun Violence. Boston’s WBZ-TV and sister-station myTV38 are part of CBS Television Stations, a division of CBS Corporation.
District Man Sentenced to 27 Years in Prison for Slaying of Northeast Washington Deli Owner-DNA Linked the Defendant to the Crime Scene-Read the Press Release
WASHINGTON – Steven Williams, 47, of Washington, D.C., was sentenced today to 27 years in prison for the June 2012 slaying of Hae Soon Lim, the owner of a Northeast Washington delicatessen, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Williams pled guilty to a charge of second-degree murder while armed in April 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin. Upon completion of his prison term, Williams will be placed on five years of supervised release.
According to the government’s evidence, Ms. Lim, 64, was found by police on June 14, 2012, at about 6:15 a.m., on the floor of her delicatessen, Grace’s Deli, in the 700 block of H Street NE. Her vehicle was found parked directly outside. An autopsy determined that Ms. Lim died from a single gunshot wound that entered through the back of her neck.
The Metropolitan Police Department (MPD) has a crime surveillance camera located a block away from the delicatessen at 8th and H Streets NE. A review of the video from the camera showed that a vehicle consistent with the appearance of the vehicle belonging to Ms. Lim pulled up and parked in front of the deli at about 5:25 a.m. on June 14, 2012. The video also shows a single person, believed to be the victim, leaving the vehicle and walking toward the restaurant.
The video then shows, moments later, a single person crossing H Street rapidly on foot, moving toward the front entrance of the restaurant, where that person then proceeds to interact in close proximity with the person believed to be Ms. Lim.
An empty, brown handgun holster was found on the floor directly next to Ms. Lim’s body. DNA from that holster revealed a match to the defendant. Williams’s DNA was also recovered from an empty cash register located inside the restaurant, behind the counter and out of reach from the customer area.
The store never opened that morning and has been shuttered ever since. Williams, an occasional customer at the store who had previously met Ms. Lim, was charged with the murder in November 2012. He has previously been convicted of other violent crimes, including assault with a deadly weapon, armed robbery, and two instances of robbery with a deadly weapon.
“With a single gunshot, this career criminal senselessly executed a beloved deli owner,” said U.S. Attorney Machen. “Thankfully, DNA allowed us to connect this killer to the crime scene, driving him to accept responsibility for his brutal crime. We can only hope that this lengthy prison sentence brings some measure of comfort to Ms. Lim’s family and others who loved her.”
“This was a horrific crime against an innocent victim,” said Police Chief Lanier. “A combination of the use of technology, forensics, and diligent investigative work of our detectives led to the closure of this case. It is our hope that this sentencing brings some comfort to the Lim family.”
In announcing the sentence, U.S. Attorney Machen and Chief Lanier praised the work of those who investigated the case for the MPD. They also expressed appreciation for the work performed by the District of Columbia Department of Forensic Sciences. Finally, they commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael C. Liebman and Justin Dillon, who investigated and prosecuted the matter.
13-220District Man Sentenced to 11 Years in Prison in 2009 Slaying in Northeast Washington-Technology Provided Key Evidence in Case-Read the Press Release
WASHINGTON – Terrell Patton, 21, of Washington, D.C., was sentenced today to 11 years of incarceration on a charge of voluntary manslaughter while armed stemming from a slaying in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Patton pled guilty in April 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin. Upon completion of his prison term, Patton will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 29, 2009, at about 10:30 p.m., Patton, also, known as, “Fatman,” was observed with the victim, Deuante Ray, 20, in the area of the 1200 block of 49th Place NE. Another individual observed Patton in possession of a nine-millimeter handgun. A third person noted that the defendant was angry with Mr. Ray because he believed that Mr. Ray had taken his pack of Ecstasy pills valued at roughly $80.
At approximately midnight, Patton called Mr. Ray’s friend and asked to talk to Mr. Ray. He told Mr. Ray to meet him on 49th Street. Mr. Ray was last seen riding a bicycle and entering a rear alley off the 1100 block of 48th Street NE with Patton.
By Patton’s own admissions, he permitted Mr. Ray to use his cellphone to call Mr. Ray’s girlfriend. Mr. Ray made one call to his girlfriend at 12:20 a.m. on Oct. 30, 2009, and a second call at 12:30 a.m., which ended at 12:35 a.m. Phone records and other witnesses confirm that Mr. Ray had used Patton’s telephone.
ShotSpotter technology recorded gunfire at 12:35:15 a.m. in the rear alley. A witness heard shots and observed a thin person and a heavier individual in the alley. This witness called 911 at 12:36 a.m. This witness also saw the heavier individual, believed to be Patton, take a bike. The witness was unable to make any identification.
The Metropolitan Police Department (MPD) arrived at approximately 12:40 a.m. and found Mr. Ray’s body. He had been shot at close range in the head and also in the chest with a nine-millimeter weapon. He was found with his pants down, and his pockets turned out. Mr. Ray was known to typically carry a wallet, and none was found. His bike also was missing.
Patton was arrested in Washington, D.C. on July 2, 2011 and has been incarcerated since.
In announcing the sentence, U.S. Attorney Machen praised the work of the MPD detectives and officers who investigated the case. He also acknowledged the effort of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney, Fern Rhedrick and Phaylyn Hunt; Investigators Stephen Cohen, Durand Odom and Tommy Miller; Victim/Witness Advocate Marcia Rinker; Litigation Technology Specialist Leif Hickling, and Assistant U.S. Attorney David B. Goodhand of the Appellate Section. Finally, he commended the work of Cynthia G. Wright, of the Homicide Section, who prosecuted the case.
13-222District Man Pleads Guilty to Sexually Abusing Stepdaughter, Violating Court Orders, and Assaulting Police Officer with A Knife-Defendant Sexually Abused Victim at Family’s Home-Read the Press Release
WASHINGTON – A 47-year-old man from Washington, D.C. has pled guilty to sexually abusing his stepdaughter on two occasions, sending letters and making phone calls to her and her mother in violation of court orders not to do so, unlawfully entering the family’s house after being ordered to stay away, and assaulting a police officer who had come to assist the family in the unlawful entry, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendant, who is not named here to protect the privacy of the victim, entered the guilty plea June 20, 2013, in the Superior Court of the District of Columbia. He pled guilty to charges of first-degree child sexual abuse, attempted first-degree child sexual abuse, violating a civil protection order, criminal contempt, unlawful entry, and felony assault on a police officer. The Honorable Patricia A. Broderick scheduled sentencing for Aug. 16, 2013. Following completion of his prison sentence, the defendant must register for 10 years as a sex offender.
The defendant is the ex-husband of the girl’s mother. At the plea hearing, he admitted that in the spring of 2012, when the victim was 14, he sexually abused the girl at their home in the District of Columbia. As a result of the sexual abuse, the victim became pregnant. The defendant told the victim to say that the baby’s father was a boy from school. Early this year, the victim revealed to her mother that the baby’s father was the defendant. The baby was born a few months ago. The victim further disclosed to law enforcement that the defendant had sexually abused her over a period of time beginning in at least 2010.
Early this year, the victim’s mother filed for and was granted a civil protection order from the defendant. On or about Feb. 5, 2013, he sent the victim’s mother a text message indicating that he knew who she was with. Alarmed that the defendant was nearby and watching her, the victim’s mother contacted the Metropolitan Police Department (MPD). Officers met her outside her house and went inside to make sure the defendant was not there. Two uniformed officers went into the basement. The defendant jumped out from beneath the stairway, brandished a knife, and stabbed one of the officers in the torso, cutting through his shirt and bullet-resistant vest. The defendant was placed under arrest. He later violated court orders by mailing a hand-written letter to the victim’s mother and calling the victim numerous times.
In announcing the guilty plea, U.S. Attorney Machen acknowledged the work of the MPD, especially the detectives who led the investigation of the case. U.S. Attorney Machen also praised the work of Victim/Witness Advocates Shawn Slade and Veronica Vaughn, as well as Paralegal Specialist Jason Manuel. Finally, he commended Assistant U.S. Attorneys Amy H. Zubrensky and Jeff T. Cook, who investigated and prosecuted the case.
13-219Detroit Area Doctors Charged with Illegal Distribution of Prescription Drugs and Health Care FraudRead the Press Release
An indictment was unsealed today charging Dr.Hussein “Sam” Awada, 43, and Dr. Luis Collazo, 53, with the illegal distribution of prescription drugs and health care fraud, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Robert L. Corso, U.S. Drug Enforcement Administration (DEA), Detroit Field Division; Special Agent in Charge Lamont Pugh, Health and Human Services, Office of Inspector General; and Special Agent in Charge,Robert D. Foley, III, Federal Bureau of Investigation.
The 68-count superseding indictment charges that from December 2010 through 2012, Dr. Awada and Dr. Collazo distributed controlled substances, including the highly addictive drugs Oxycodone, Roxicodone, andOpana ER, outside the course of usual medical practice and for no legitimate purpose. Both defendants were also charged with billing Medicare and other health insurance programs for medically unnecessary testing and procedures.
The superseding indictment alleges that Dr. Awada used recruiters, including co-defendant James Lyons, 39, to bring patients to his “Midwest Family Practice” at two locations in Warren. After ordering unnecessary medical procedures, Dr. Awada gave controlled substance prescriptions to the recruiter in exchange for cash payments. The recruiter then sold the pills for profit on the illegal street market.
The superseding indictment also charges that Dr. Awada and Dr. Collazo committed health care fraud by billing for unnecessary office visits, submitting patients brought by recruiters to medically unnecessary testing and procedures (including x-rays, nuclear cardiac stress tests, electrocardiograms, blood work, and injections), and by causing Medicare and other insurance programs to pay for unnecessary controlled substances.
According to the superseding indictment, Dr. Collazo participated in the drug diversion and health care fraud scheme while he worked for Dr. Awada at the Midwest Family Practice on 12 Mile Road in Warren.
More than $600,000 in funds and three automobiles were seized during the course of the underlying investigation. The United States will pursue forfeiture of all proceeds and property traceable to the offenses charged.
U.S. Attorney McQuade said “Health care fraud diverts taxpayer dollars from needy patients to greedy criminals. We hope that our enforcement efforts will deter other doctors from engaging in fraud."
Robert L. Corso, DEA Special Agent in Charge said, "This indictment is another example of DEA's determination to combat the troubling prescription drug abuse problem in this country. These two doctors abused their positions of trust and jeopardized the lives of many individuals by illegally distributing highly addictive opiate painkillers. The DEA and our partners in law enforcement will continue to investigate and bring to justice those individuals that are responsible for the illegal distribution of prescription medicines."
"The improper distribution of controlled substances poses a significant threat not only to the financial health of the Medicare and Medicaid programs but to the wellbeing and safety of the patients that these programs serve", said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General - Chicago Region. "The OIG, along with out law enforcement partners, will aggressively investigate allegations of this nature in order to protect tax payer dollars and ensure patient safety."
Robert D. Foley III, FBI Special Agent in Charge said, "These charges represent a serious abuse of the health care system. Those motivated by greed who unlawfully take from a system designed to care for patients, will be tirelessly pursued by the FBI and prosecuted for their crimes."
Dr. Collazo will be arraigned on the superseding indictment on Friday, June 21. Dr. Awada will be arraigned on Monday, June 24.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by Special Agents of the DEA, HHS-OIG, and FBI. The case is being prosecuted by Assistant U.S. Attorneys Wayne Pratt, Sarah Resnick Cohen and Gjon Juncaj and Special Assistant U.S. Attorney Justin Bidwell.
Dayton Payroll Company Owner Sentenced to 78 Months in Prison for Conspiracy in $26.7 Million Dollar Tax SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Robert R. Sacco, 62, the owner and chairman of the board of Dayton-based Paysource, was sentenced to 78 months in prison in a conspiracy and financial crimes scheme involving withholding money to pay federal employment taxes from employees’ paychecks and keeping the money instead of paying it to the IRS. In addition, Sacco must pay a $26,729,098.79 money judgment.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS) announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
Sacco previously pleaded guilty on October 26, 2012 to one count each of conspiracy to defraud the United States by impeding the Internal Revenue Service, money laundering, and tax evasion.
According to court documents, Sacco and others conspired to avoid the payment of federal employment taxes owed by Paysource for 2007 through 2009 and concealed from the IRS the legitimate tax liabilities the company owed. Sacco directed co-conspirators to prepare fraudulent IRS forms claiming that the wages paid by the company and the resulting tax liabilities were significantly lower than the wages the company actually paid.Sacco, lived in Huber Heights prior to moving to Orlando in 2010.
Paysource was a Dayton-based professional employer organization. Paysource provided services that enabled business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation and other strategic services. It did this by hiring a client company’s employees, thus becoming their employer of record for tax and insurance purposes. This practice is known as co-employment.
After serving his prison term, Sacco must serve three years of supervised release. He was also ordered to pay $26,729,098.79 in restitution, jointly and severally with Charles Painter who was also charged in the scheme, to the Internal Revenue Service.
Stewart commended the investigation by IRS Criminal Investigation agents, and Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.
# # #Danville Man to Serve 12 ½ Years in Prison for Bank RobberyRead the Press Release
URBANA, Ill. – This week, U.S. District Judge Michael P. McCuskey sentenced Frank P. Sutton, 26, of Danville, Ill., to 151 months (12years, 7 months) in prison for robbing a Danville bank last year. At sentencing, on Tuesday, June 18, Sutton was also ordered to pay restitution to the bank in the amount of $1,340.
On Feb. 11, 2013, Sutton pled guilty to the Sept. 14, 2012, robbery of Old National Bank, at 2431 N. Vermilion Street. According to court documents and statements during court proceedings, this is Sutton’s third conviction for bank robbery.
Sutton admitted that on Sept. 14, he approached a bank teller and said, “I’m on a suicide mission,” and handed the teller a note that stated, “I need your money.” The teller handed the defendant $1,340 in U.S. currency and Sutton fled the bank. Several days later, Sutton was arrested in Chicago, where Sutton said he fled by taking a freight train, and used the robbery money to buy heroin.
Sutton has remained in the custody of the U.S. Marshals Service since he was indicted by a federal grand jury in November 2012.
The investigation was conducted by the Danville Police Department. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
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Commercial fisherman charged with making false records and statements to cover up illegal fishing in AlaskaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a State of Washington resident was indicted by the federal grand jury in Anchorage, Alaska, for making false records under federal fish and wildlife laws, and making false material statements to a federal government agency.
According to the indictment, Steven Carr, 54, fishing out of Kodiak, Alaska, was the owner and operator of the Fishing Vessel (F/V) SEA MAC. In 2008, Carr held permits allowing him to participate in the entry-level Rockfish Pilot Program. In early July 2008, Carr made four voyages where he fished in Federal Statistical Area 630, which was unavailable to him. The indictment alleges that in order to cover up his illegal fishing, he stated in his Daily Fishing Logs that he fished in Area 640, which was further away from his homeport in Kodiak.
During those four voyages, Carr caught 761,421 pounds of Pacific Ocean Perch, which he sold for over $120,000.
The maximum penalty for violating the Lacey Act, which makes it illegal to make a false record related to fish, wildlife or plants valued over $350.00 and transported in interstate or foreign commerce is up to five years in prison and a $250,000 fine. The maximum penalty for making a material false statement to a government agency is also up to five years in prison and a $250,000 fine.
Ms. Loeffler commends the National Oceanic and Atmospheric Administration, Office of Law Enforcement, for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Chinese Nationals Ordered to Prison in Alien Harboring and Unlawful Employment ConspiracyRead the Press Release
HOUSTON – Song Yu, 32, and Cheng Jie Chen, 40, both from the Katy area, have been sentenced for their roles in a conspiracy to harbor and induce illegal aliens to reside in the U.S., United States Attorney Kenneth Magidson announced today. Yu and Chen both previously pleaded guilty as did a third defendant - Hue Chen, 36.
U.S. District Judge Melinda Harmon sentenced both Yu and Cheng Chen to 15 months to be followed by one year of supervised release. Chen was also assessed a $10,000 fine. Hue Chen was previously sentenced to six months in prison.
During the course of the conspiracy, the three hired unauthorized aliens from Guatemala to work at the Bamboo Village aka New Bamboo Village restaurant, some of whom were allegedly directed to obtain fraudulent work authorization documents. These people never presented identification documents and never completed I-9 forms, as required by law. Court records indicated the illegal aliens and other workers were provided housing and were transported to and from the restaurant.
Bamboo Village restaurant is a Chinese restaurant located on the 5100 block of Avenue H in Rosenberg. Cheng Jie Chen was its original director and president. On April 5, 2010, the restaurant changed the corporation name to New Bamboo Village Inc., at which time Yu, the nephew of Cheng Jie Chen, was named as the director and president.
Federal law requires employers to hire only United States citizens and aliens who are authorized to work in the United States. Further, employers must verify employment eligibility using the Employment Eligibility Verification Form (I-9). The employer is required to examine, at the time of hire, the documentation provided by the individual that establishes his identity and employment eligibility to ensure the documents presented appear to be genuine and relate to the individual. The employer must retain the I-9 forms for three years after the date of the hire or one year after the date the individual’s employment is terminated, whichever is later.
On March 24, 2009, Homeland Security Investigations (HSI) agents encountered and arrested unauthorized aliens at a residence on the 4900 block of Timber Lane in Rosenberg. These individuals, who did not have the proper I-9 documentation, allegedly worked at Bamboo Village and resided at the Timber Lane location. According to the indictment, they would be transported daily to the restaurant for work.
HSI issued a warning notice to the restaurant on or about July 1, 2010, advising then owner Chen Jie Chen of the penalties associated with knowingly hiring and employing unauthorized aliens and the lack of the I-9 forms.
On Aug. 22, 2012, HSI personnel again encountered more unauthorized aliens who were arrested at the same Timber Lane residence. At the time, all were allegedly being housed by the defendants at this location while working at New Bamboo Village.The case was investigated by Homeland Security Investigations (HSI). Assistant United States Attorney Suzanne Elmilady is prosecuting the case.
Chairman of Woodland Park, N.J., Democratic Committee Admits Bribing an IRS OfficialRead the Press Release
CAMDEN, N.J. – The chairman of the Woodland Park, N.J., Democratic Committee admitted today that he bribed two individuals he thought were IRS officials so that he could eliminate his tax debt, U.S. Attorney Fishman announced.
Michael Kazmark, 60, of Woodland Park pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of bribing a federal public official in exchange for official action. He admitted making $18,500 in corrupt payments.
According to documents filed in this case and statements made during Kazmark’s guilty plea proceeding:
Kazmark failed to pay federal income taxes from 1997 through 2005. In 2010, Kazmark owed the IRS $98,046 in unpaid federal income taxes, interest and penalties. On April 18, 2010, Kazmark made an application to the IRS for an offer in compromise, requesting that he pay $48,800 to the IRS in order to settle his entire federal tax debt.
On Oct. 5, 2010, Kazmark paid a $1,000 bribe to two individuals he thought were IRS officials in exchange for their official assistance in transferring his offer in compromise file to one of the officials so that the official could accept it. On Nov. 23, 2010, Kazmark made a $17,500 bribe payment to the individuals in exchange for their official assistance in placing his federal tax liability in noncollectible status for two years and agreeing to accept Kazmark’s offer in compromise for the amount of the check that he had already paid to the IRS – $9,760 – if he did not incur any additional federal tax liability for two years.
The count to which Kazmark pleaded guilty is punishable by a maximum potential penalty of 15 years in prison, a $250,000 fine, twice the aggregate loss to victims or gain to the defendant, or three times the amount of the bribe payments. Sentencing is scheduled for Sept. 28, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Miles Feinstein Esq., Clifton, N.J.
Kazmark Information
Belleville Man Charged with Child Pornography OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Daris A. Quinn, a/k/a “DQ,” 25, Belleville, IL, was arraigned today, June 21, 2013, on a four-count Indictment charging, in Count 1, Distribution of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in Count 2, Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in Count 3, Using a Communication Facility to Facilitate a Drug Transaction, and, in Count 4, Making a False Statement to a United States Postal Inspector. Quinn’s trial is scheduled for August 26, 2013, in East St. Louis, Illinois. Quinn was ordered detained, that is, held without bond, pending trial.
If convicted of Distribution of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, Quinn faces a term of imprisonment of not less than 5 years but not more than 20 years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life. If convicted of Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, Quinn faces a term of imprisonment of not more than 10 years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life. If convicted of Using a Communication Facility to Facilitate a Drug Transaction, Quinn faces a term of imprisonment of not more than 4 years, a fine up to $250,000, or both, and a term of supervised release of not more than 3 years. If convicted of Making a False Statement to a United States Postal Inspector, Quinn faces a term of imprisonment of not more than 5 years, a fine up to $250,000, or both, and a term of supervised release of not more than 3 years.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Collinsville Police Department, the United States Postal Inspection Service and the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Baltimore Felon Convicted of Armed Bank RobberyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Maurice Colbert, age 59, of Baltimore, Maryland on charges of armed bank robbery, forcing a bank employee at gunpoint to accompany him around that bank, and brandishing a firearm during a crime of violence.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to the evidence presented at his four day trial, Colbert robbed the First Mariner Bank in Middle River, Maryland on November 7, 2011, stealing $31,153. Witnesses testified that Colbert entered the bank, announced the robbery and brandished a gun at customers and bank employees, even forcing a bank employee at gunpoint to accompany him around the bank. After bank employees handed over the money Colbert demanded, he fled the bank. According to witness testimony, Colbert was subsequently arrested at a nearby business. At the time of his arrest, Colbert had dye stains on his pants and socks and dye stained cash was found in his pants pockets. According to trial testimony, Colbert had a previous felony conviction.
Colbert faces a maximum sentence of 25 years in prison for armed bank robbery; a mandatory minimum of 10 years in prison for forcing the bank employee to accompany him; and a minimum of seven years and a maximum of life prison, consecutive to any other sentence imposed, for brandishing a firearm during a crime of violence. U.S. District Judge Catherine C. Blake scheduled sentencing for October 4, 2013, at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Gregory R. Bockin, who are prosecuting the case.
Baltimore Felon Convicted of Armed Bank RobberyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Maurice Colbert, age 59, of Baltimore, Maryland on charges of armed bank robbery, forcing a bank employee at gunpoint to accompany him around that bank, and brandishing a firearm during a crime of violence.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to the evidence presented at his four day trial, Colbert robbed the First Mariner Bank in Middle River, Maryland on November 7, 2011, stealing $31,153. Witnesses testified that Colbert entered the bank, announced the robbery and brandished a gun at customers and bank employees, even forcing a bank employee at gunpoint to accompany him around the bank. After bank employees handed over the money Colbert demanded, he fled the bank. According to witness testimony, Colbert was subsequently arrested at a nearby business. At the time of his arrest, Colbert had dye stains on his pants and socks and dye stained cash was found in his pants pockets. According to trial testimony, Colbert had a previous felony conviction.
Colbert faces a maximum sentence of 25 years in prison for armed bank robbery; a mandatory minimum of 10 years in prison for forcing the bank employee to accompany him; and a minimum of seven years and a maximum of life prison, consecutive to any other sentence imposed, for brandishing a firearm during a crime of violence. U.S. District Judge Catherine C. Blake scheduled sentencing for October 4, 2013, at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Gregory R. Bockin, who are prosecuting the case.
Albuquerque Man Arrested on Federal Child Enticement ChargeRead the Press Release
ALBUQUERQUE – Raymond Berger, 32, of Albuquerque, N.M., was arrested today by agents of Homeland Security Investigations (HSI) on an indictment charging him with enticing a minor to engage in sexual activity. Berger made his initial appearance in federal court this morning and is temporarily detained pending his arraignment and a detention hearing, both of which are scheduled for June 24, 2013.
The indictment alleges that between May 2, 2013 and May 6, 2013, Berger used Craigslist and a cellular telephone to coerce and entice an individual whom he believed to be a minor to engage in sexual activity. Berger allegedly committed the offense in Bernalillo County, N.M. Berger was arrested on state charges of solicitation of a child with an electronic communications devise on May 6, 2013.
If convicted on the federal charge, Berger faces a mandatory ten year prison sentence and a maximum penalty of life in prison. The indictment against Berger is merely an accusation and he is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Sexual Predator and Exploitation Enforcement (SPEED) Task Force, which is comprised of HSI, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama Woman Pleads Guilty to Conspiracy in Tax Refund Identity Theft SchemeRead the Press Release
Scottie Alice Johnson of Montgomery County, Ala., pleaded guilty to one count of conspiracy to defraud the United States for her role in a Stolen Identity Refund Fraud (SIRF) scheme, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, Johnson conspired with Barbara Murry, Veronica Temple and Yolanda Moses to receive fraudulently obtained tax refunds. Yolanda Moses created a tax-preparation business called B & B Tax Service, which was located in the same building as co-defendant Barbara Murry’s hair weaving shop, called B & B Weaving. The conspirators obtained stolen identities from multiple sources and recruited individuals, including Scottie Alice Johnson, to deposit fraudulently obtained tax refunds into their respective bank accounts. Yolanda Moses and Veronica Temple filed false tax returns using the stolen identities and directed the refunds into bank accounts they or their co-conspirators controlled. Between January 2006 and April 2012, Barbara Murry, Veronica Temple and Yolanda Moses filed over 900 false tax returns with the IRS and fraudulently claimed in excess of $1.7 million. Scottie Alice Johnson’s bank account received $140,505.22 in refunds proceeds. Johnson also used her son’s bank account in the scheme to receive $22,650 in tax refunds.
Sentencing has not yet been scheduled. Johnson faces a maximum sentence of five years in prison, three years of supervised release, restitution, and a maximum fine of $250,000, or twice the loss caused by the offense. Barbara Murry, Veronica Temple and Yolanda Moses earlier pleaded guilty to various charges and each was sentenced to 57 months in prison.Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, Tax Division Trial Attorneys Jason H. Poole and Michael Boteler and Assistant United States Attorney Todd Brown, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
8 Indicted for Stealing Money from ATMs and Prescription Drugs from PharmaciesRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges eight individuals in connection with a string of burglaries during which money was stolen from ATMs and prescription drugs were stolen from pharmacies. The indictment, which was filed under seal on June 10, 2013, was unsealed on June 18, 2013, following the defendants’ initial appearances in federal court. It charges Derek Edward Benedict, age 41, of Hugo; Lyle Robert Carpenter, age 40, of Hastings; Julia Jean Julien, age 35, of St. Cloud; Timothy Michael Kielb, age 45, of Fridley; Cherilyn Ann Mayotte, age 35, currently incarcerated in Superior, Wisconsin; Jason Michael Mussehl, age 42, currently incarcerated at the Stanley Correctional Institution in Stanley, Wisconsin; Jennifer Suzann Stanley, age 37, no known address; and Jonathan Roger Quast, age 28, of Lexington, Minnesota, with one count of conspiracy to commit bank burglary, bank larceny, and interstate transportation of stolen money.
In addition, Benedict, Carpenter, Julien, Kielb, Mayotte, Mussehl, and Quast were charged with one count of conspiracy to steal controlled substances. Carpenter, Kielb, Mussehl, and Stanley were also charged with one count of bank burglary and two counts of bank larceny. Benedict, Carpenter, Julien, Kielb, Mayotte, and Mussehl were also charged with one count of burglary involving controlled substances. Carpenter, Kielb, Mussehl, and Quast were also charged with one count of credit union burglary, one count of bank burglary, and one count of burglary involving controlled substances. And Benedict, Carpenter, Julien and Mussehl were also charged with one count of interstate transportation of stolen property.
More specifically, the indictment alleges that between October 2009 and February 2013, the defendants conspired with each other and others to enter and attempt to enter buildings that operated in whole or in part as banks or credit unions, because they housed ATM machines. In addition, it alleges that the defendants conspired to transport stolen merchandise and cash between the states of Minnesota and Wisconsin, and Iowa and Minnesota. The indictment also alleges that Benedict, Carpenter, Julien, Kielb, Mayotte, Mussehl, and Quast conspired with each other and others to steal controlled substances from pharmacies.
In addition to those conspiracy charges, the indictment alleges that Benedict, Carpenter, Mussehl, and Stanley stole money from a Bank of America ATM located inside a Robbinsdale Walgreens store on October 24, 2009, and from a Bank of America ATM located inside a Golden Valley Walgreens on November 29, 2009. The indictment further alleges that on July 15, 2012, Benedict, Carpenter, Julien, Kielb, Mayotte, and Mussehl stole various drugs from the Bloomington Drug Store. In addition, Carpenter, Kielb, Mussehl, and Quast allegedly stole money from a credit union ATM located inside the Dakota Convenience store in Prior Lake on August 19, 2012, and money from a U.S. Bank ATM located inside a Circle Pines Walgreens on August 23, 2012. Carpenter, Kielb, Mussehl, and Quast also stole drugs from the Circle Pines Walgreens pharmacy. And on September 9, 2012, Benedict, Carpenter, Julien, and Mussehl allegedly drove from Iowa to Minnesota carrying money stolen from a safe and ATM located inside a Walgreens store in Des Moines, Iowa.
If convicted, the potential maximum penalties are 20 years in prison for conspiracy to commit burglary involving controlled substances, bank burglary, credit union burglary, and burglary involving controlled substances; ten years for bank larceny and the interstate transportation of stolen property; and five years for conspiracy to commit bank burglary, bank larceny, and interstate transportation of stolen property. If convicted, the defendants’ sentences will be determined by a federal district court judge.
This case is the result of an multi-agency investigation conducted by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Hennepin County Sheriff’s Office, the U.S. Secret Service, the Centennial Lakes Police Department, and the Prior Lake Police Department, with cooperation from the Minnesota Bureau of Criminal Apprehension and the Minnesota Financial Crimes Task Force. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.
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.
20 June 2013
“Straw” Owner of Venice Physical Therapy Clinic Pleads Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Roberto Fernandez Gonzalez (63, Naples) pleaded guilty today to conspiracy to commit health care fraud. Gonzalez faces a maximum penalty of 10 years in federal prison.
According to the plea agreement, from January 16, 2008, through at least March 31, 2008, Gonzalez conspired with various individuals to execute a scheme to defraud Medicare. During the course of this conspiracy, Gonzalez functioned as the nominee (straw) owner of Rehab Dynamics, Inc. (“Rehab Dynamics”), a physical therapy clinic located in Venice, Florida. Gonzalez had no background in the health care industry, nor did he have money to buy Rehab Dynamics. Rather, the conspirators paid Gonzalez more than $20,000.00 to serve as the straw owner of Rehab Dynamics, as a sham.
During the three months that Gonzalez served as the nominee owner of Rehab Dynamics, the conspirators submitted approximately $1,633,512.21 in fraudulent claims for reimbursement to Medicare. Ultimately, Medicare paid $446,738.85 of those false claims.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Wyoming Man Sentenced for Assaulting Wife of One DayRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on June 17, 2013, Keith Allen Smith, a 37 year old Northern Arapaho Tribal Member, was sentenced for assaulting his wife and causing her serious bodily injury on the day following their wedding. Mr. Smith was sentenced by Chief U.S. District Judge Nancy D. Freudenthal to 96 months imprisonment, three years of supervised release, and was ordered to pay a $100.00 special assessment. Mr. Smith was also ordered to pay $9271.41 in restitution for costs of medical care associated with the victim's injuries. This case was investigated by the Bureau of Indian affairs with the assistance of the Federal Bureau of Investigation.
Wheeling Man Sentenced to 10 Years Imprisonment for Illegal Possession of A FirearmRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA — A 28-year old Wheeling, West Virginia, resident who threatened to kill his girlfriend and others with a semi-automatic rifle was sentenced in Federal court on June 20, 2013.
United States Attorney William J. Ihlenfeld, II announced that JORDAN L. LAUDERMILT was sentenced to 120 months imprisonment to be followed by three years of supervised release. LAUDERMILT was found guilty after a jury trial on February 7, 2013, to being a “Felon in Possession of a Firearm” as a result of his use of a Ruger .22 Caliber Rifle in a domestic dispute on Justice Lane in Ohio County in February of 2011. Evidence presented at trial established that LAUDERMILT demanded a cash payment from his girlfriend and when she refused to comply he threatened to shoot her, her father, and her brother. Ohio County Sheriff’s Deputies responded to the scene and placed LAUDERMILT under arrest after surrounding the house and observing him yell out threats of harm for approximately twenty minutes.
LAUDERMILT was remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by U.S. Attorney Ihlenfeld and Assistant United States Attorney Randolph J. Bernard and in addition to the sheriff’s department it was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Waterloo Man Charged with Child Pornography OffenseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on June 20, 2013, Nicholas J. Perjak, 32, Waterloo, IL, was arraigned on an Indictment charging him with Accessing, With Intent to View, Visual Depictions of Minors Engaged in Sexually Explicit Conduct. Specifically, the Indictment alleges that, between on or about May 17, 2012, and on or about October 4, 2012, Perjak accessed with intent to view visual depictions of minors engaged in sexually explicit conduct.
Perjak’s trial is scheduled for August 26, 2013, in East St. Louis, Illinois. If convicted of this charge, Perjak faces a term of imprisonment of not more than 10 years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Federal Bureau of Investigation’s Metro-East Cyber Crime Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Waterford Man on Trial for Mortgage Fraud Offenses Pleads GuiltyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JUAN VELEZ, 60, of Waterford, pleaded guilty today before United States District Judge Robert N. Chatigny in Hartford to one count of bank fraud stemming from a mortgage fraud scheme. VELEZ pleaded guilty in the middle of his trial, which began on June 17.
According to court documents and statements made in court, in 2006 and 2007, VELEZ and others engaged in a mortgage fraud scheme involving multiple properties in New London. As part of the scheme, VELEZ acquired properties from a co-defendant and other individuals and then sold the properties to another co-defendant, Flavia Mendoza, at inflated prices using fraudulently obtained mortgage loans.
In pleading guilty, VELEZ specifically acknowledged that he was involved in the fraudulent transaction of a property located at 624-626 Montauk Avenue in New London. As established in court and acknowledged by VELEZ during today’s court proceeding, when VELEZ sold the property to Mendoza there were a number of significant false statements contained in the loan paperwork, including Mendoza’s income, her intention to occupy the property as her primary residence, and the amount of money she was providing to purchase the property. Additionally, the Housing and Urban Development Settlement Statement form (“HUD-1”), which VELEZ signed, falsely stated that Mendoza had provided VELEZ with approximately $29,760 for the purchase of the property when Mendoza had not, in fact, provided any down payment money for the transaction. Based on these false statements, Mendoza obtained a mortgage loan in the amount of $492,699 from the bank.VELEZ, Mendoza and others shared the profits of this and other fraudulently obtained residential mortgage loans, which totaled more than $1.2 million.
Judge Chatigny has scheduled sentencing for September 12, 2013, at which time VELEZ faces a maximum term of imprisonment of 30 years. Mendoza also has pleaded guilty and awaits sentencing.
This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]United Technologies Corporation Liable for over $473 Million <br /> for Inflating Prices on Aircraft Engines Sold to Air ForceRead the Press Release
The U.S. District Court for the Southern District of Ohio found United Technologies Corporation liable for over $473 million in damages and penalties arising out of a contract to provide the Air Force with fighter aircraft engines for F-15 and F-16 aircraft between 1985 and 1990, the Justice Department announced today. United Technologies, which is based in Connecticut, provides a broad range of high-technology products and services to the global aerospace and building systems industries.
“The department will relentlessly pursue justice against those who knowingly submit false claims to the government and abuse the public contracting process,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division. “It is vital that companies who do business with the government provide full and accurate information, and if they do not, they will pay the consequences.”
The government alleged that UTC’s proposed prices for the engine contract misrepresented how UTC calculated those prices, resulting in the government paying hundreds of millions more than it otherwise would have paid for the engines. Specifically, the government alleged that UTC failed to include in its price proposal historical discounts that it received from suppliers, and instead knowingly used outdated information that excluded such discounts.
The government filed suit against UTC in 1999 under the False Claims Act and the common law, and those claims were tried, without a jury, in 2004. An initial decision by the district court in 2008 found UTC liable under the False Claims Act, but did not award any damages. The district court also dismissed the government’s common law claims. That decision was appealed by both the government and UTC. In 2010, the Court of Appeals for the Sixth Circuit affirmed the district court’s finding that UTC was liable under the False Claims Act, but reversed and remanded the case to the district court to recalculate the government’s damages and to reconsider the government’s common law claims.
In yesterday’s ruling, the district court awarded the government False Claims Act damages and penalties of $364 million, which is the highest recovery obtained by the government in a case tried under the Act. The court also awarded an additional $109 million in damages on the government’s common law claims. With the addition of prejudgment interest on the latter claims, which the court has yet to calculate, the government anticipates that the total judgment against United Technologies could be well in excess of half a billion dollars.
This case is being handled by the Civil Division of the Department of Justice. The lawsuit is captioned United States of America v. United Technologies Corp., No. 3:99-cv-093 (S.D. Ohio).U.S. Citizen Indicted for Conspiring to Provide Material Support to A Foreign Terrorist OrganizationRead the Press Release
ALEXANDRIA, Va. – Eric Harroun, 30, of Phoenix, Ariz., was indicted by a federal grand jury today on two charges related to his alleged fighting alongside an Al Qa’ida affiliated terrorist group in Syria.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Harroun, a U.S. citizen who served with the U. S. Army from 2000 to 2003, was indicted on the following charges:
- Conspiracy to provide material support to a foreign terrorist organization;
- Conspiracy to use destructive devices overseas.
The maximum punishment for conspiring to provide material support to a foreign terrorist organization, as alleged in this particular indictment, is 15 years in prison. The second count, conspiracy to use destructive devices overseas, carries a maximum punishment of life in prison.
The indictment alleges that Harroun fought with Jabhat al-Nusrah (al-Nusrah), a designated foreign terrorist organization. al-Nusrah is one of several aliases used by the “al Qa’ida in Iraq” terrorist organization, and since November 2011 the group has claimed responsibility for nearly 600 terrorist attacks in Syria.
According to court documents, Harroun allegedly crossed into Syria in January 2013 and fought with members of al-Nusrah against the Bashar al-Assad regime in Syria. The documents allege that Harroun participated in attacks with al-Nusrah and carried and used various firearms, including a sniper rifle, an AK-47 style machine gun, and a rocket propelled grenade (RPG) weapon.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Carter Burwell and Lynn Haaland are prosecuting the case on behalf of the United States, with assistance from the Justice Department’s National Security Division.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.Two Moffat County Ranchers Indicted for Building Trash Dumps on Public Lan and Illegally Diverting WaterRead the Press Release
DENVER – Leland Ray (John) Smith, age 70, and his younger brother, Bradford Moroni (Brad) Smith, age 65, both from Craig, Colorado, were indicted by a federal grand jury in Denver on Tuesday, charged with two counts of committing crimes on BLM land, the United States Attorney’s Office and the Bureau of Land Management announced. The brothers appeared in U.S. District Court in Grand Junction this afternoon, where they were advised by a U.S. Magistrate Judge of their rights and the charges pending against them. They were released on a personal recognizance bond, and ordered to return to court on Monday, June 24, 2013, at 2:00 p.m. in Grand Junction for arraignment.
According to the indictment, the defendants dug trenches on land owned by the United States and administered by the Bureau of Land Management, into which they dumped and buried garbage, waste, and debris generated from their private property. They are also accused of using heavy equipment to excavate pits, create artificial ponds, and affect the flow of the Woodbury Gulch water channel – specifically at a riparian area along the Woodbury Gulch, upon land owned by the United States and administered by the Bureau of Land Management.
If convicted, each defendant faces up to 10 years imprisonment and up to a $250,000 fine per count.
This case was investigated by the Bureau of Land Management (BLM).
The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
The charges contained in the indictment are allegations, and the defendants are presumed innocent until proven guilty.
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