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20 June 2013
Two Legacy Network Executives Plead Guilty in Federal CourtRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced today that Adrian Rand Robison, 67, of Rigby, Idaho, pleaded guilty to mail fraud. Rand Robison was the founder and chairman of the board of The Legacy Network, an insurance brokerage agency in Rexburg. Adrian Russell Robison, 38, of Idaho Falls, Idaho, pleaded guilty to one count of making and subscribing a false tax return. Russell Robison was the Chief Executive Officer of The Legacy Network, owned a minority interest in the company, and is the son of Rand Robison. The defendants appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello. They were charged in separate informations filed on May 16, 2013, by the U.S. Attorney’s Office.
According to the plea agreement, Rand Robison, a licensed insurance agent, owned a majority interest in The Legacy Network, a company that brokered the sale of life insurance policies between the carriers that offered the policies and the independent insurance agents that marketed the policies to clients. In return for its services, The Legacy Network received a commission paid by the carriers for each policy sold. According to the plea agreement, Rand Robison admitted that he encouraged some high net-worth clients to apply for high face-value life insurance policies with the promise of rebating all or part of the first-year premiums back to the customer. Robison further admitted that he misrepresented in agent reports and other contractual documents, that he would not rebate, or otherwise finance, the premium payments of his clients. The Legacy Network received commission payments from the insurance carriers of approximately 105 to 138 percent of the first-year premium. Robison admitted that with those funds, he rebated some of the premiums to some high net-worth clients and kept the remainder. From 2006 to 2009, the Legacy Network received approximately $1,371,634 in commissions from life insurance carriers on the policies of a group of their high net-worth clients; they rebated approximately $923,497 to the clients and kept approximately $448,137. Robison agreed to pay restitution of $1,371,634.
According to the plea agreement, Russell Robison was aware that agents of The Legacy Network rebated all or part of the premium payments to some of their high net-worth clients, and had, in fact, signed rebate checks to the clients. Neither Robison nor The Legacy Network issued IRS Forms 1099-MISC recording the rebates as income to the high net-worth clients. The company’s internal books and records recorded the rebates as deductible business expenses. After some clients’ policies lapsed due to non-payment of premiums—which occurred typically in the second year of the policies—some policies were replaced with policies issued by different insurance carriers. According to the plea agreement, Robison admitted that for tax years 2007, 2008 and 2009, he filed a partnership income tax return for The Legacy Network, knowing that the returns contained false information by improperly overstating expenses for rebates paid. According to the plea agreement, the total tax loss for tax years 2007 through 2009 was $270,631.
Adrian Rand Robison faces up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release. Adrian Russell Robison faces up to three years in prison, a maximum fine of $100,000, and up to one year of supervised release.
The defendants are scheduled to be sentenced on September 12, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The cases were investigated by Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation (FBI), and the Idaho Department of Insurance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Twenty-three Defendants Charged with Various Roles in Supplying Heroin and Cocaine in Illinois, Indiana and WisconsinRead the Press Release
CHICAGO — Twenty-three defendants are facing federal narcotics charges for their alleged roles in supplying and distributing wholesale quantities of heroin and cocaine in Illinois, Indiana and Wisconsin, local and federal law enforcement officials announced today. An investigation led by the Chicago Police Department and the Drug Enforcement Administration resulted in the charges, as well as accumulated seizures since last fall of approximately three pounds of heroin and nearly nine pounds of cocaine. Additional quantities of heroin, crack cocaine, and ecstasy, as well as approximately tens of thousands of dollars, and two guns were seized this morning.
Chicago police, DEA agents, and other law enforcement partners early today executed 11 search warrants upon nine residences and two vehicles in Chicago, and arrested at least 21 of the 23 defendants, in connection with the investigation that began in September 2012.
All 23 defendants were charged with possession with intent to distribute or distribution of narcotics offenses in an 18-count criminal complaint that was filed Wednesday in U.S. District Court and unsealed following the arrests. The defendants arrested began appearing this afternoon in U.S. District Court and remain in federal custody pending detention hearings scheduled for next week.
“This case is yet another example of the remarkable cooperation among the Chicago Police Department, DEA and other local, state and federal law enforcement agencies, extending back decades,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois. “While these defendants are not charged in this complaint with committing acts of violence or being involved in organized gang activity, we believe that bringing serious charges such as these is an effective tool in reducing violence in our communities – a goal we all share.” Mr. Shapiro announced the charges with Garry F. McCarthy, Superintendent of the Chicago Police Department, and Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration.
“Removing narcotics markets from our communities is an essential part of our strategy to continue reducing violence and crime in Chicago,” said Superintendent McCarthy. “These joint, long-term operations provide a real benefit for our communities and I would like to thank our law enforcement partners for their great work, particularly the men and women of the Chicago Police Department who played a major role in this case.”
The DEA’s Mr. Riley said: “This investigation, which was conducted by the DEA-led Chicago Strike Force, is representative of the commitment that is necessary to dismantle drug trafficking organizations. I’m proud of the work done by these agents and officers, who worked tirelessly to achieve these results, and I’m confident that with our continued partnership, we will have increasing success.”
The investigation was conducted under the umbrella of the U.S. Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High-Intensity Drug-Trafficking Area Task Force (HIDTA). The Milwaukee County HIDTA, the DEA in Madison, Wis., the Internal Revenue Service, Criminal Investigation Division in Chicago, the Bureau of Alcohol, Tobacco, Firearms and Explosives in Chicago, and Rockford Police Department, and the Illinois, Indiana and Wisconsin State Police also assisted in the investigation.
According to the allegations in a 262-page complaint affidavit, the investigation determined that:
- MICHAEL WHITING was a wholesale supplier of heroin, working with his brother, ANTONIO WHITING, as well as MICHAEL COLEMAN, COREY MINNIFIELD, and CHARLES JAMES. Investigators also learned that Michael Whiting was supplied heroin by JIMMY SERRANO, and Michael Whiting sold heroin to customers, including VONZAYE DAVIS, of Milwaukee, Wis., and RICHARD HICKS, according to the charges;
- Michael Whiting shared a narcotics stash house at 2437 West Adams St., with Charles James, who was a wholesale supplier of cocaine. Defendants JAMESON HAMLIN, EDUARDO RIVERA, DANIEL VAZQUEZ, and LADELL SMITH supplied cocaine to James, who in turn sold wholesale amounts of cocaine to his customers, including MICHAEL STARNES, MELISSA BELCHER, and MALCOM HARRIS; and
- ERIC PASKON supplied wholesale amounts of cocaine to DANIEL VAZQUEZ, who ran his own wholesale cocaine distribution operation and maintained a stash house in an apartment at 3130 N. Lake Shore Dr. Vazquez employed FRANCISCO MIRELES, ANWER SHABAZ, and ANGEL PEREZ, and supplied wholesale amounts of cocaine to multiple customers, including BRANDON ELSING, NEFTALI FRYTES, and NICOLAS FRANCO.
Between November 2012 and April 2013, the Whiting brothers allegedly sold nearly a half-pound of heroin to a cooperating witness and an undercover agent. During the same time, law enforcement seized an additional 2.5 pounds of heroin and nearly nine pounds of cocaine. On Feb. 22, 2013, Chicago police officers executed a search warrant at the residence of Ladell Smith, in the 300 block of East 125th Street, and seized more than a kilogram of powder and crack cocaine, more than three-quarters of a kilogram of heroin, a .40-caliber Glock handgun, a bullet-proof vest, and more than $20,000. Most of the narcotics and the gun were found behind the radio in the dash board of a vehicle driven by Smith.
The charges against all but five of the defendants carry a mandatory minimum of five years and a maximum of 40 years in prison and a maximum fine of $5 million. Four defendants — Vazquez, Mireless, Shahbaz, and Perez— each face a mandatory minimum of 10 years and a maximum of life in prison and a $10 million fine, while Davis alone faces a maximum penalty of 20 years in prison and a $2 million fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorneys Stephen P. Baker, Jeffrey D. Perconte, and Raj P. Laud.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Trafficker of Endangered Wildlife Pleads GuiltyRead the Press Release
United States Attorney Laura E. Duffy announced today that Jason Xie, a resident of Sacramento, California, tendered his guilty plea yesterday before United States Magistrate Judge William McCurine, Jr., to the charge of conspiring to smuggled endangered Totoaba fish swim bladders into the United States.
In his plea, Jason Xie admitted that he conspired with his codefendant, Anthony Bueno, and others to smuggle the Totoaba swim bladders into the United States from Mexico. Xie acknowledged that he intended to sell the swim bladders to the Asian market, both in the United States and abroad. Xie admitted that in February 2013 he received two coolers containing the swim bladders of 100 Totoaba smuggled into the United States, and again on March 30, 2013, he accepted delivery of three coolers containing the swim bladders of 170 endangered Totoaba (about 225 pounds), concealed under layers of fish and ice.
As part of his plea, Xie agreed to forfeit the 170 Totoaba swim bladders and also a $350,000 residence he purchased in Seattle, Washington, which he admitted he purchased with the proceeds of the sale of endangered Totoaba.
Xie further admitted that he paid $1500 per swim bladder in Mexico for the Totoaba. Xie acknowledged as part of his guilty plea that he knew it was unlawful to take, possess, transport and sell Totoaba in Mexico and the United States. The Totoaba smuggled by Xie and his co-conspirators in February and March was valued at over $400,000.
Totoaba macdonaldi, also known as Cynoscion macdonaldi, is the largest species within the scaienidae family. It can grow to more than 62 feet in length, weigh up to 220 pounds, and live up to 25 years. They are endemic only to the Gulf of California, the narrow inlet between Baja California and Mexico's mainland (also called the Sea of Cortez). This fish can be identified by its dusky silver color, elongated body, sharp snout, a projecting lower jaw, and a slightly convex tail.
During their winter migration, schools of adult Totoaba travel northward along the east coast of the Gulf of California to the Colorado River delta, where they remain for weeks before spawning in the spring. The Totoaba's spawning season runs from approximately March to May each year. During this time, Totoaba travel to the shallower waters at the mouth of the Colorado River, making them vulnerable to commercial and sport fishermen.
The Totoaba macdonaldi's large swim bladders are highly prized for use in Chinese soups. These bladders are removed from the fish, dried, and often exported from Mexico to other countries. In some instances, the fish are taken from the Colorado River, carved open so their swim bladders can be removed, and left to die on the shores. The U.S./Mexico ports of entry closest to the Sea of Cortez are in Calexico, California and San Luis, Texas.
While the Totoaba were once abundant in the Gulf of California, and even at one point constituted the second most important commercial fish for Mexico, their populations have declined drastically due to overfishing, pollution, and diversion of waters from the Colorado River.
The Totoaba was included in the most protected list of species covered by the Convention on International Trade in Endangered Species (CITES, Appendix I) in 1976, and was listed as endangered under the Endangered Species Act in 1979. Mexico included it on its list of species "In Danger of Extinction" in 1994. Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in Totoaba or any part of a Totoaba.
Despite the protection, the species has shown minimal recovery. Unique biological traits, such as its limited geographic range and vulnerability during spawning, along with external pressures of habitat degradation and over-fishing, have pushed the species to the brink of extinction. The nearest Port of Entry in California to the Sea of Cortez is the Port of Entry at Calexico, California. During the period from February to May, 2013, border inspectors in Calexico seized approximately 700 pounds of Totoaba, representing the swim bladders of over 500 endangered fish.
Sentencing for Xie is scheduled for September 13, 2013, at 9:00 a.m. before the Honorable Cathy Ann Bencivengo, United States District Judge.
DEFENDANT Criminal Case No. 13cr1311-CAB Jason Jin Shun Xie SUMMARY OF CHARGESConspiracy, in Violation of Title 18, United States Code, Section 371.
AGENCy
Maximum Penalties: 5 years in custody and/or $250,000 fine, $100 special assessment.U.S. Fish and Wildlife Service
Department of Homeland Security, ICE's Homeland Security InvestigationsToledo Man Found Guilty on Human Trafficking ChargesRead the Press Release
A Toledo man was found guilty by a jury on two counts of sex trafficking of children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Brady Jackson, 27, will be sentenced later this year. An exact date has not been scheduled.
“This verdict is another stark reminder that human trafficking hides in plain sight,” Dettelbach said. “This defendant's sole purpose was to profit off these girls in the commercial sex industry.”
Jackson advertised on backpage.com in in Septmber 2011 that the two girls, ages 16 and 15, were available for prostitution. Jackson told the girls that he would take all the money they would make from prostitution but that he would take them shopping and get their hair and nails done, according to court records.
This case is being prosecuted by Assistant United States Attorneys Carol M. Skutnik and Ava Dustin following an investigation by the Northwest Ohio Violent Crimes Against Children Task Force (NWOVCACTF).
The NWOVCACTF, directed by the FBI Resident Agency in Toledo, Ohio, includes special agents of the FBI, and agents and officers from the Ohio Bureau of Criminal Identification and Investigation, Ohio Highway Patrol, Toledo Police Department, Lima Police Department, Perrysburg Township Police Department, Fulton County Sheriff's Office and the Ottawa County Sheriff's Office. Toledo Office of the Federal Bureau of Investigation.
#####Three Corpus Residents Sent to Prison in Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – Three men arrested in January for various drug trafficking and money laundering conspiracies have been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Ignacio Pena aka “Nacho,” 44, Raul Leal Martinez aka “Indio” or “Wahoo,” 36, and, David Pete Dominguez aka “Buda,” 30, all of Corpus Christi, previously pleaded guilty in relation to the case. Four other defendants, Manuel Pena aka “Super,” 48, Jose Guajardo aka “Garfield,” 41, Rocky Bazaldua aka “Rock,” 32, and Julieann Gutierrez, 25, also pleaded guilty and are scheduled for sentencing in September.
Today, U.S. District Judge Janis Graham Jack, who accepted the guilty pleas, handed Ignacio Pena a term of 168 months in prison, while Dominguez was ordered to prison for 120 months. Martinez was sentenced to serve a 85-month term last week. All were further ordered to serve five-year-terms of supervised release following completion of their prison terms.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed that Manuel Pena, a member of and former leader in the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in May 2011 Manuel Pena made deals to provide cocaine and methamphetamine to Bazaldua and Dominguez. He admitted he acquired cocaine and agreed to sell methamphetamine to Guajardo. Pena also received methamphetamine from Martinez, a local home builder. Ignacio Pena, Manuel Pena’s brother, helped receive and deliver various amounts of cocaine and methamphetamine to various drug dealers in Corpus Christi.
Martinez and Guajardo also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. As part of their plea agreements, Manuel Pena, Martinez and Guajardo also agreed to forfeit their interests in various properties around Corpus Christi.
Martinez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. The remaining defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
The Department of Justice Files Suit Against Louisiana Pharmaceutical Company for Distributing Unapproved and Misbranded Prescription and Over-the-counter DrugsRead the Press Release
Acting Assistant Attorney General Stuart F. Delery announced today that the Department of Justice, on behalf of the Food and Drug Administration (FDA), has filed suit in the U.S. District Court for the Western District of Louisiana against Sage Pharmaceuticals, Inc. (Sage), its president Dr. Jivn-Ren Chen, and its Director of Corporate Quality, Charles L. Thomas, all of Shreveport, Louisiana. According to the Complaint, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by manufacturing and distributing unapproved and misbranded drug products. Under the FDCA, before a company can sell a new drug product to consumers, it must submit and receive approval of a new drug application from the FDA. The purpose of this approval process is to ensure that drugs manufactured and distributed to consumers are safe and effective for their intended uses. Furthermore, the FDA requires all drug labeling to have adequate directions for use.
“Today’s action furthers the FDA’s mission of ensuring that all drugs sold to the public are safe and effective, and those companies that undermine this mission will be held accountable,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division.U.S. Attorney for the Western District of Louisiana Stephanie A. Finley said, “This lawsuit demonstrates that this office will make every effort to protect public health by filing enforcement actions against companies that are identified as violating federal law.”
This is the second injunctive case that the government has brought against Sage alleging the distribution of unapproved new drugs. In 2000, the government obtained an injunction against the company banning the manufacture and distribution of two unapproved new drugs. Since that time, FDA inspections revealed that defendants continue to manufacture and distribute other drug products—including prescription pain relievers, over-the-counter (OTC) cough and cold remedies, and OTC wound cleansers—without first obtaining the requisite FDA approvals. As a result, the defendants’ products are unapproved new drugs and misbranded drugs under the FDCA, and potentially unsafe and ineffective.
Despite numerous warnings from FDA, the defendants have failed to bring their operations into compliance with the law. The Justice Department will seek a permanent injunction requiring the defendants to cease all receiving, processing, manufacturing, preparing, packaging, labeling, holding, and distributing activities until they comply with applicable FDA regulations.
The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division together with the U.S. Attorney’s Office for the Western District of Louisiana brought this case on behalf of the United States.Texas Man Sentenced to 60 Months in Prison for Receiving and Distributing Child PornographyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Juan Carlos Curiel, 22, Missouri City, Texas, was sentenced Wednesday to 60 months in prison by U.S. District Court Judge Elizabeth E. Foote for conspiracy to receive and distribute child pornography. Curiel is also required to complete five years of supervised release and register as a sex offender. Curiel pleaded guilty on April 12, 2012.
According to the evidence presented at the guilty plea, after obtaining a warrant, authorities searched an email account Curiel used. Authorities discovered the email account contained 30 images or videos of child pornography. A search of Curiel’s home Oct. 5, 2011 turned up over 100 videos and images of child pornography on laptops, a desktop computer and other computer storage devices. Curiel admitted that he downloaded many of the images on the computers using an online file-sharing program.
“The defendant’s actions furthered the spread of child pornography and promoted the abuse of the children used to produce it,” Finley said. “Hopefully, this case demonstrates that child predators will be brought to justice. We will continue to prosecute these cases. The safety of the children in this community is a priority for the Western District.”The U.S. Department of Homeland Security investigated the case, and Assistant U.S. Attorneys John Luke Walker and Howard C. Parker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp and to the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Supplier and Member of Temple Hills Drug Conspiracy Sentenced to 15 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Mack Easy Holland, age 40, of Upper Marlboro, Maryland, today to 15 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin, as well as possession of a firearm in furtherance of a drug trafficking offense.
On June 19, 2013, Judge Titus sentenced Norman Lee, Jr., age 36, of Washington, D.C., to 188 months in prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP). Judge Titus enhanced Lee’s sentence upon finding that he was a career offender based on three previous drug convictions.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to their guilty pleas, from at least June 2010 through February 2012, Holland and Lee were a part of a drug trafficking conspiracy based in and around Temple Hills, Maryland that was led by Samuel Braxton. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP from Holland, who was his primary source of supply, and would then add starter fluid or other chemicals to the PCP to increase its quantity. Also during this time period, Braxton received heroin, and crack and powder cocaine from other sources of supply. Braxton sold the PCP, heroin, and crack to regular drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.
On a weekly basis from November 2011 through January 2012, Holland was overheard by law enforcement in phone conversations with Braxton in which they discussed the sale of and arranged transactions involving PCP. On January 5, 2012, Holland was arrested. Law enforcement seized approximately 24 ounces of PCP and 48 grams of heroin, $2,958 in cash and three cell phones from Holland and his car. A subsequent search of Holland’s residence recovered three metal gasoline canisters containing approximately three gallons of PCP from a shipping box outside the house, a 32 ounce bottle full of PCP in the house, four handguns, two of them loaded and over $48,000 in cash. Holland had a previous felony conviction and was prohibited from possessing firearms or ammunition.
In late December 2011, Braxton provided approximately eight ounces of PCP to co-conspirator Maurice Allen, who redistributed those eight ounces of PCP to Lee. Lee was dissatisfied with the quality of the PCP and complained to Allen. Allen advised Braxton that his customer was not satisfied with the quality of the PCP that Allen had provided him and Braxton agreed to exchange four ounces of PCP for a new batch. On January 10, 2012, Allen and Lee drove to Braxton’s apartment in Temple Hills to exchange the PCP, then to a bowling alley, where Allen got out of the car. Law enforcement stopped Lee a short time later and seized four ounces of PCP from Lee.
Over the course of the conspiracy Lee was responsible for the distribution of between 100 and 400 grams of PCP. Holland was responsible for the distribution of at least 12 kilograms of PCP and 48 grams of heroin.
Samuel Braxton, a/k/a “Fats,” age 44, of Temple Hills, Maryland, was sentenced on April 3, 2013, to 27 years in prison for conspiracy to possess with intent to distribute PCP, crack cocaine and heroin. Maurice Allen, a/k/a “Reece,” age 45, of Waldorf, Maryland, pleaded guilty and was previously sentenced to a year and a day in prison.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule, Steven E. Swaney, and Arun Rao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Statement of the Department of Justice Antitrust Division on <br /> Its Decision to Close Its Investigation of Delta Air Lines’ <br /> Acquisition of an Equity Interest in Virgin Atlantic AirwaysRead the Press Release
The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into Delta Air Lines’ proposed equity investment in Virgin Atlantic Airways Ltd. and their related trans-Atlantic joint venture:
“After a thorough investigation of the competitive effects of the proposed equity investment and joint venture, the Antitrust Division concluded that the facts and circumstances did not warrant further investigation or action.
“In December 2012, Delta Air Lines and Virgin Atlantic reached an agreement to establish a joint venture on flights between North America and the United Kingdom. At the same time, Delta entered an agreement to acquire the 49 percent stake in Virgin Atlantic currently held by Singapore Airlines for $360 million. Virgin Group will retain the majority 51 percent stake.
“The proposed equity investment and joint venture also were subject to review by the European Commission. The division and the European Commission cooperated closely throughout the course of their respective investigations, with frequent contact between the agencies. This cooperation, facilitated by the parties, made for a more efficient review process.
“Delta and Virgin Atlantic also have filed an application with the U.S. Department of Transportation seeking antitrust immunity for their joint venture. The division will continue to consult, as appropriate, with the Department of Transportation as it reviews the request for immunity.”
Stamford Man Pleads Guilty to Racketeering Charge Stemming from Illegal Gambling BuinessesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DOUGLAS CORBIN, 52,of Stamford, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) stemming from his involvement in organized crime-controlled illegal gambling businesses.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, CORBIN and 19 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden that were controlled by the Gambino Crime Family of La Cosa Nostra.
The investigation, which included the use of court-authorized wiretaps, revealed that CORBIN was involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
In addition, CORBIN and others, operated a card gambling club at 514 Glenbrook Road in Stamford, where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
Judge Bryant has scheduled sentencing for September 12, 2013, at which time CORBIN faces a maximum term of imprisonment of 20 years. He also has agreed to forfeit $100,000.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
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(203) 821-3722 [email protected]St. Michael Woman Charged with Child Abuse in Death of a Toddler at Spirit LakeRead the Press Release
GRAND FORKS - U.S. Attorney Timothy Q. Purdon announced today that Hope Louise Tomahawk Whiteshield, of St. Michael, N.D., has been charged by Complaint with Child Abuse and Neglect in Indian Country.
Whiteshield, 31, made her first appearance before U.S. District Magistrate Judge Charles S. Miller, Jr., today at 3:30 p.m. The alleged incident involving the death of a two year old child, as described in the complaint, occurred on the Spirit Lake Indian Reservation on or about June 12, 2013.
Judge Miller ordered Whiteshield to be temporarily detained until her detention hearing on Monday, June 24, 2013, at 2:30 p.m. in Grand Forks, N.D.
In Fargo, U.S. Attorney Timothy Q. Purdon said, “The criminal complaint filed today represents the initial charges in this matter. The investigation into the circumstances of this tragedy is continuing. The protection of children is a top priority for my office and we are doing everything possible to thoroughly and deliberately investigate this matter.”
The charge of child abuse and neglect in Indian country carries a statutory minimum mandatory sentence of 10 years’ imprisonment and a statutory maximum sentence of 20 years’ imprisonment.
Purdon stressed that the Complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
MARQUETTE, MICHIGAN – Shane Eric Hanley, 45, of Norway, Michigan, was sentenced to 188 months in federal prison for possession of child pornography, U.S. Attorney
Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge R.
Allan Edgar ordered Hanley to serve twenty years of supervised release following his release from prison, to pay $17,769.00 in restitution to victims, and to pay a $100 special assessment.
Hanley will also be required to re-register as a sexual offender.On February 22, 2013, Hanley pleaded guilty to a federal indictment charging him with possession of child pornography. The investigation into Hanley’s activities began in July 2011 when agents with the Internet Crimes Against Children task force in Grand Rapids, Michigan discovered that Hanley was sharing child pornography via peer-to-peer software on his computer. Subsequent investigation revealed that Hanley had child pornography stored on both his home computer and DVDs. Hanley admitted that he had used peer-to-peer software to locate and download child pornography, which he compared to stamp collecting. Hanley had been previously convicted of criminal sexual conduct in Michigan in 1993 and 1994. Both convictions involved acts with minors. He was a registered sex offender in Michigan.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves.
For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.The Michigan State Police and Homeland Security Investigations investigated the case.
The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.END
Septuagenarian Sent to Prison for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Jose Luis Salazar, 70, has been ordered to prison following his conviction of sexual exploitation of minors, commonly known as distribution of child pornography, United States Attorney Kenneth Magidson announced today. Salazar pleaded guilty March 11, 2013.
Today, Senior U.S. District Judge Janis Graham Jack, took into consideration the need to protect the public from a possible pedophile and handed Salazar a sentence of 151 months in federal prison. During Salazar’s statement at sentencing, he said he had never physically hurt anyone and told the court he still had a lot to offer society. Salazar went on to say that he could be useful mentoring children. After hearing his allocution, Judge Jack said that she did not believe Salazar understood the gravity of his crime and that her purpose in sentencing was to keep him away from children. Salazar was further ordered to serve a lifetime term of supervised release following completion of his prison term, during which he will be required to comply with numerous conditions designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
On March 3, 2012, an undercover officer with the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (CCPD-ICAC) downloaded several files of child pornography from a computer connected to the Internet which was traced to Salazar. More child pornography files were later downloaded from Salazar in June and July 2012. A search warrant was executed on Salazar’s Corpus Christi home on Sept. 27, 2012, at which time several electronic storage devices were seized. A computer forensic examination of the seized devices led to the discovery of hundreds of videos and images of child pornography.
Previously released on bond, Salazar was taken into custody following his guilty plea where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and CCPS-ICAC investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, 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<http://www.usdoj.gov/psc>. For more information about internet safety education, please visitwww.usdoj.gov/psc<http://www.usdoj.gov/psc> and click on the tab "resources."Sentences for on June 17 - June 20, 2013Read the Press Release
Marcus Trevino, 35, of Grand Prairie, Texas, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 20, 2013, on one count of conspiracy to commit mail fraud and wire fraud and one count of arson and aiding and abetting. Trevino was arrested in Cheyenne, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release. In addition, Trevino was ordered to pay a $200.00 special assessment and restitution in the amount of $2,000.00. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ira Izell Jones, Jr., 42, was resentenced on June 20, 2013, after being granted a second sentencing hearing by Chief Federal District Court Judge Nancy D. Freudenthal. Jones was previously sentenced in October, 2010 and motioned the court for a new hearing because the sentence issued in 2010 did not apply the terms of the Fair Sentencing Act, which became effective August 3, 2010. The Court vacated the judgment previously entered in this case and resentenced Jones to 180 months imprisonment, to be followed by six years of supervised release and ordered him to pay a $200.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Robert Shane Esterline, 34, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 20, 2013, for being a felon in possession of a firearm. Esterline was obtained via write from state custody. He received 48 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Elmer Garcia-Perez, aka Elmer Perez-Garcia, 34, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 17, 2013, for illegal re-entry of a previously deported alien into the United States. Garcia-Perez was arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
J. Guadalupe Medina-Zeferino, 30, or Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 17, 2013, for illegal re-entry of a previously deported alien into the United States. Medina-Zeferino was arrested in Douglas, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Scranton Man Enters Guilty Plea in Conspiracy Case Involving Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton man has entered a plea of guilty before U.S. District Court Senior Judge Richard P. Conaboy in Scranton to a conspiracy involving the transportation of illegal aliens.
According to United States Attorney Peter J. Smith, Kerin Hamim, an Indonesian national and illegal alien, pleaded guilty Wednesday to a Felony Information charging him with conspiracy to transport illegal aliens. Hamim was charged for committing the offenses beginning in September 2012 through March 2013. The charges are the result of a joint investigation by the U.S. Department of Homeland Security - Immigration and Customs Enforcement and the Pennsylvania State Police.
The Information to which Hamim pleaded guilty alleges a conspiracy whereby Hamim’s conduct acted to facilitate the employment of dozens of illegal temporary employees to a meat packaging business located in Scranton, Pennsylvania. It is alleged that Hamim, in furtherance of the conspiracy, knowingly provided transportation for the illegal workers and paid the illegal work force in cash on a weekly basis.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
San Angelo, Texas, Man Sentenced to 48 Months in Federal Prison on Federal Obscenity ConvictionRead the Press Release
LUBBOCK, Texas --- Billy Ray Doyle, 59, of San Angelo, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 48 months in federal prison and 10 years of supervised release, following his guilty plea in March 2013 to one count of attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In late November 2012, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) noticed an advertisement posted on an Internet message board entitled “Looking for company 18-25ish –m4m,” and determined that it was posted by Doyle. During ensuing email conversations between Doyle and an undercover agent who posed as a 15-year-old male, Doyle discussed with the undercover agent such things as showering together, lying naked on a bed together and possibly engaging in other sexual activity. The undercover agent’s age was discussed several times and Doyle repeatedly promised that a potential sexual relationship would remain secret. On December 15, 2012, Doyle emailed the undercover agent a sexually explicit photograph of himself. Doyle was arrested a few days later at a convenience store where he and the undercover agent had agreed to meet. He has been in custody since that time.
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.”
ICE HSI was in charge of the investigation. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
San Angelo, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — James Arthur Abney, 53, of San Angelo, Texas, appeared today in federal court in Lubbock, Texas, and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of possession of child pornography. Abney, who remains in custody, faces a maximum statutory sentence of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. 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, while Abney resided in Ballinger, Texas, he used cell phones to search the Internet for images of child pornography. He saved images of child pornography on his cellphones and downloaded some of the images onto his computer’s hard 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 is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Ballinger Police Department and the Runnels County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Rochester Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Patrick Dandrea, 55, of Rochester, N.Y., pleaded guilty to two counts of filing false tax returns before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of three years in prison and a fine of up to $100,000 on each count.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant was awarded a contract from Erie County in 2006 to remove damaged trees and branches following the October Storm. As a result of this contract, Dandrea received over $5,000,000 in payments which he failed to report on his 2006 and 2007 Federal Income Tax Returns. As a result, the IRS incurred a tax loss of over $460,000. In addition to being responsible for the tax loss, the defendant is also liable for interest payments and penalties of over $265,000 going back to 2006.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations Division, under the direction of Special Agent in Charge Toni Weirauch, and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
Sentencing is scheduled for September 26, 2013 at 10 a.m. before Judge Geraci.Reading Man Indicted on Child Porn ChargesRead the Press Release
Danny Ray Evans, Jr., age 26, of Reading, PA was charged today by Indictment with two counts of production of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 60 years imprisonment, with a 15 year mandatory minimum sentence, a $500,000 fine, a lifetime of supervised release and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Berks County Detectives, and the Berks County District Attorney's Office. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Plea of Guilty Entered to Conspiracy to Commit Bank FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Gary Patton Hall, Jr., 47, of Tifton, Georgia, entered a plea of guilty today to Conspiracy to Commit Bank Fraud before the Honorable Hugh Lawson, Senior United States District Judge in Macon, Georgia.
In entering his plea of guilty, Mr. Hall admitted that from 2005 continuing through 2010, he committed bank fraud involving the Tifton Banking Company during his employment as President and CEO of the bank. Mr. Hall admitted that he conspired with others to obtain money, funds, credits, assets, securities, and other property of the Tifton Banking Company while carrying on a practice of replacing non-performing loans with new loans, including a Small Business Administration (SBA) guaranteed loan, to make the bank appear financially stronger than it was. The actions caused monetary losses to the bank and SBA of approximately $2.8 million. Mr. Hall continued these illegal activities even during the time that the bank applied for and received assistance from the Troubled Asset Relief Program (TARP), a government program established to help financial institutions during a financial crisis in an attempt to save the failing bank.
The plea agreement entered into by Mr. Hall and the United States Attorney calls for a sentence of sixty-five months in federal prison based upon an agreement as to what would be the appropriate calculations for determining sentence length under the federal sentencing guidelines. The decision as to whether or not to accept this recommendation will be made by the Court at the time of sentencing. The maximum possible sentence under the law is thirty years imprisonment, a maximum fine of $1,000,000.00, or both, a term of supervised release of up to five years, and a mandatory assessment fee of $100.00. Sentencing is currently set for September 30, 2013.
The case was investigated by the Federal Deposit Insurance Corporation, the Special Inspector General for TARP (SIG-TARP), the Federal Bureau of Investigation, the U.S. Small Business Administration, and the Tift County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Pittsburgh Man Sentenced to 7 Years in Prison for Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to 84 months imprisonment for his convictions of violating federal drug and firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Rayshaun Jones, 25, who is currently incarcerated.
According to information presented to the court, between Sept. 14, 2010, and Sept. 15, 2010, Jones conspired to distribute and possess with intent to distribute less than 50 kilograms of marijuana and to rob the Swap Meet, a business engaged in interstate commerce, as well as its owner, vendors, employees and customers of money, merchandise and marijuana. On Sept. 15, 2010, Jones and other co-defendants robbed the Swap Meet and as a result obtained among other things, $300-$400 and one kilogram of marijuana. During the robbery, Jones carried, used and possessed firearms.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Rayshaun Jones.
Pilot and Passenger from San Francisco, Whose Plane Was Met by CBP Air Interdiction as It Landed in Lubbock, Plead Guilty to Federal Drug ChargesRead the Press Release
LUBBOCK, Texas — Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, each appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of possession with intent to distribute more than 50 kilograms, but less than 100 kilograms, of marijuana. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Judge Cummings ordered presentence investigation reports with sentencing dates to be set after the completion of those reports. Both defendants remain on bond. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gallanter and Wynne-Wade were arrested after their arrival in Lubbock and charged in a federal criminal complaint. Subsequently, on May 15, 2013, a federal grand jury in Lubbock indicted them for possession with intent to distribute marijuana, hashish and psilocin/psilocybin.
According to documents filed in the case, U.S. Customs and Border Protection (CBP) Air Interdiction agents had received information that that a Piper PA28-181 aircraft, tail number N342TA, was operating under suspicious circumstances, in that the occupants of the aircraft paid for their fuel with cash, fueled their own plane, had a large amount of luggage in the aircraft’s passenger compartment and departed in poor weather conditions. Agents also had information that the aircraft had been rented from the Travis Air Force Base Aero Club in Rio Vista, California, where some individuals renting aircraft were breaking flight rules and procedures.
CBP launched a Citation Interceptor Jet in an attempt to locate the aircraft. On April 17, 2013, at approximately 10:15 p.m., CBP Air Interdiction agents contacted the aircraft to conduct a ramp check as it was about to refuel at Lubbock Aero, a refueling location located at the Lubbock International Airport. Agents identified Gallanter as the pilot and Wynne-Wade as the passenger.
CBP Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork. After a drug detector dog alerted to the presence of drugs, the plane was then searched by federal agents. Agents located six large military-style duffle bags and four smaller bags inside the passenger compartment. Agents opened the bags and located 98 plastic bags of marijuana, four plastic bags of hashish and two plastic bags of psilocin mushrooms. In total, agents located approximately 69 kilograms of marijuana, four kilograms of hashish, and 1.37 kilograms of psilocin mushrooms.
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorney Justin Cunningham is in charge of the prosecution.
Owner of GeneRx Discount Pharmacy Admits Conspiring to Structure TransactionsRead the Press Release
Defendant Will Forfeit More Than $476,000 in Seized Funds to Government
DALLAS — Linus Nwosu appeared this morning before U.S. District Judge Reed C. O’Connor and pleaded guilty to an Information charging one count of conspiracy to commit structuring. He faces a maximum statutory penalty of five years in federal prison, a fine not to exceed $250,000, or twice any pecuniary gain to the defendant or loss to the victim (s) and restitution. In addition, according to the terms of the plea agreement, Nwosu will forfeit $476,390, that has been seized, to the government. He will remain on bond pending sentencing, which is set for October 10, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Nwosu owns and operates two pharmacies, with his wife, in the Dallas – Fort Worth area under the name of GeneRx Discount Pharmacy, Inc. From October 2011 to May 2012, Nwosu and his wife agreed to structure GeneRx’s cash deposits to avoid the currency reporting requirements. During this time, Nwosu and his wife made approximately 77 cash deposits totaling $476,190; each of the deposits was made with the intent to avoid the currency reporting requirements as required by law.
The case is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
Orlando Man Pleads Guilty to More Than $300,000 in Attempted Tax FraudRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Hussein Chery pleaded guilty yesterday to two counts of mail fraud and one count of access device fraud. Chery faces a maximum penalty of 20 years in federal prison for each mail fraud count, and up to 10 years in federal prison for the access device fraud count. A sentencing date has not been scheduled. Chery was indicted on May 8, 2013.
According to his plea agreement, Chery was stopped by an Orange County Sheriff’s Office deputy on March 22, 2012, for a traffic violation. A consent search of Chery’s vehicle resulted in the discovery of 38 cash/debit cards that were issued in the names of other people, a bundled assortment of delivered mail addressed to individuals other than Chery, and four notebooks containing handwritten information that corresponded to the debit cards.
Further investigation determined that Chery was part of a group of individuals who used stolen personal information to submit false income tax returns. The fraudulently obtained refunds were deposited onto prepaid debit cards that were issued in the victims’ name. Those prepaid debit cards were mailed to abandoned homes and others addresses located in Central Florida, where they were then retrieved by Chery and others. The participants in the scheme then attempted to use the debit cards to withdraw cash or pay for personal items.
The debit cards and notebooks found in Chery’s possession contained approximately 200 names of victims whose identities were used in some aspect of this scheme. Agents have found more than $340,000 in actual and attempted losses associated with the fraudulent tax returns that were filed using the stolen identities of the victims found in Chery’s notebooks.
This case was investigated by the Orange County Sheriff’s Office, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigation Division. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Operator of Local Frison Flea Market Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO - JACK FRISON, SR. was indicted on multiple charges relating to his alleged involvement in the sale of counterfeit goods and DVD’s.
According to the indictment, Frison owns the Frison Flea Market, located in Pagedale, MO. Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market, and many of these vendors openly sold counterfeit goods from their booths at the Market. The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs. Many of the counterfeit items including purses, were of such price, quality and appearance that it was apparent that the items were counterfeit. Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. The indictment alleges that Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods.
"This type of crime takes jobs from Americans, introduces cheap and sometimes dangerous products into the marketplace and oftentimes funds criminal organizations. HSI is focused on disrupting and deterring counterfeiters, while protecting the intellectual property of American companies that is so critical to our nation's job growth and economic recovery," said Special Agent in Charge of HSI-Chicago Gary Hartwig.
"This is one of the largest seizures of counterfeit goods in St. Louis history," said Dean C. Bryant, Special Agent in Charge of the FB- St. Louis Division. "In addition to the monetary harm caused by illegal sales, items such as counterfeit perfume can pose a significant public health risk when hazardous materials are used to manufacture such products."
Frison, of Town and Country, MO, was indicted by a federal grand jury on one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting copyright infringement and one felony count of trafficking counterfeit goods. The indictment was returned on June 12, but remained sealed until the defendant turned himself in to authorities earlier today.
If convicted, the conspiracy and copyright infringement charges each carry a maximum penalty of five years in prison and/or fines up to $250,000 and trafficking in counterfeit goods carries a maximum of 10 years in prison and/or fines up to $2,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant United States Attorneys John Bodenhausen and Jennifer Roy are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Oklahoma Man Arrested and Charged with Stealing More Than $2.8 Million in Textbooks from Former EmployerRead the Press Release
NEWARK, N.J. – An Oklahoma man who was previously employed as a textbook salesman at Hoboken-based John Wiley & Sons will appear in court today on charges he stole more than $2.8 million in textbooks from his former employer through an elaborate scheme that involved diverting free educational samples intended for professors, U.S. Attorney Paul J. Fishman announced.
Christopher J. Brock, 44, of Yukon, Okla., was arrested in Tampa, Fla., today by FBI special agents on a criminal Complaint charging him with wire fraud. The defendant is scheduled to have his initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Anthony E. Porcelli in Tampa, Fla., federal court.
According to the Complaint unsealed today in Newark federal court:
Christopher J. Brock executed a scheme to defraud his former employer, John Wiley & Sons (Wiley), out of more than $2.8 million worth of textbooks.
Wiley is based in Hoboken, N.J., and is one of the largest publishers of technical writing in the world, with an estimated market value of approximately $3 billion. A portion of Wiley’s publications are collegiate textbooks, which are distributed to schools and universities that accept them into their curricula. Co-existing with Wiley’s retailers are resellers of used or unwanted books that buy and sell directly to students.
Brock lived in Oklahoma and was employed by Wiley, first as a higher education publishing representative, and most recently as a district sales supervisor based in Oklahoma.
Brock accessed the corporate systems of Wiley – including computers located in New Jersey – and diverted to himself more than 16,000 textbooks and other items he fraudulently designated as free educational samples.
To avoid detection in an internal review of his employee records, Brock designated both actual and fabricated professors as the purported recipients of the items and listed his own home address and other addresses that he controlled as alternate shipping addresses for those professors, directing that the books be shipped to those addresses. This made it appear in the records of Wiley that the free education samples were legitimately going to professors when, in reality, they were being sent to Brock.
Once Brock received the diverted textbooks he sold them to resellers and received payment through PayPal accounts that he controlled. PayPal, in turn, would deposit the funds into bank accounts that Brock controlled. Brock caused an approximate loss to Wiley of more than $2.8 million. The money that Brock earned as a result of the scheme was largely used for personal expenditures, including, among other things, high-end home furnishings and scuba diving equipment.
The wire fraud count with which Brock is charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation. U.S. Attorney Fishman also thanked John Wiley & Sons for its cooperation and assistance with the investigation.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Brock, Christopher Complaint
New Jersey Man Sentenced to Prison for Lying to Terrorism InvestigatorsRead the Press Release
NEWARK, N.J. – A Bayonne, N.J., man was sentenced today to 18 months in prison for lying to officials investigating Mohamed Alessa and Carlos E. Almonte – who were subsequently convicted of a conspiracy to travel from New Jersey to kill on behalf of a terrorist group in Somalia – U.S. Attorney Paul J. Fishman announced.
Mohamed Osman, 21, previously pleaded guilty before U.S. District Judge Dickinson R. Debevoise to making materially false statements to investigators in a matter involving international terrorism.
According to documents filed and statements made in Newark federal court:
During a June 2010 interview with members of the FBI’s Joint Terrorism Task Force (JTTF), Osman falsely denied knowing about Alessa and Almonte’s plans to travel to Somalia to fight against government and multinational peacekeeping forces there.
Among other things, Osman specifically admitted that he had learned about Alessa and Almonte’s ideology and beliefs during their interactions, and that he had heard Alessa say he would start killing in the United States if he was unable to do it abroad. Osman also admitted that he willfully lied to investigators after being informed that they were conducting an international terrorism investigation and that it was against the law to make false statements during the interview.In addition to the prison term, Judge Debevoise ordered Osman to serve three years of supervised release.
U.S. Attorney Fishman praised the outstanding work of the FBI; members of the Newark JTTF, including the New Jersey State Police; and the New York City Police Department in the investigation.
The government is represented by Andrew Kogan, Chief, and Assistant U.S. Attorney L. Judson Welle of the United States Attorney’s Office National Security Unit in Newark.
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Defense counsel: Stacy Ann Biancamano Esq., West Orange, N.J.New Jersey Husband and Wife Tax Preparers Charged with Tax Fraud, Wife ArrestedRead the Press Release
NEWARK, N.J. – A tax preparer was arrested this morning at her Union, N.J., home for allegedly teaming up with her tax preparer husband to get unearned tax refunds for their clients to make extra money for themselves, U.S. Attorney Paul J. Fishman announced.
Special agents of IRS-Criminal Investigation (IRS-CI) arrested Carol Johnson, 42, on an indictment charging her and her husband, Courtney Johnson, 43, each with one count of conspiracy to defraud the United States and six counts of assisting in the preparation of fraudulent tax returns. Courtney Johnson remains at large. The pair operated tax preparation businesses in South Orange and Jersey City, N.J., through which they allegedly committed crimes resulting in tax losses of nearly $400,000.
Carol Johnson is expected to appear this afternoonbefore U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the indictment unsealed today:
From tax years 2005 through 2007, the Johnsons sought to generate increased referrals, enhance their business and enrich themselves by preparing and filing income tax returns that were based on false information for the purpose of generating tax refunds.
To do this, the Johnsons routinely used a number of fraudulent practices, including falsely claiming a filer was a “head of household”; inventing and inflating deductions; creating fictitious businesses with bogus incomes and losses; and creating false credits for education, childcare and moving expenses.
Although taxpayers generally met with one of the defendants to provide information to prepare their tax returns, it was routinely the other defendant whose name appeared as preparer of the return.
On several occasions, the defendants stole part of the refunds by issuing Santa Barbara Bank cashier’s checks payable to their clients, forging the client’s signatures and depositing the checks into a bank account they controlled.
On at least one occasion, the Johnsons filed two federal income tax returns for the same year for the same client, providing a copy of the return with a several-hundred-dollar refund to the taxpayer and a copy with a several-thousand-dollar refund to the IRS.
The bogus returns resulted in a tax loss of nearly $400,000.
The conspiracy charge carries a maximum potential penalty of five years in prison. Each false tax return count carries a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-CI, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.
The government is represented by Assistant U.S. Attorney Lorraine Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:Carol Johnson: Leslie Sinemus Esq., South Orange
Johnson, Courtney and Carol Indictment
Memphis Man Sentenced to 27 Years in Prison for Heroin DistributionRead the Press Release
Memphis, TN – Harold McDuffie, 49, of Memphis was sentenced yesterday by Chief U.S. District Judge Jon P. McCalla to 27 years in prison for his role in masterminding a heroin distribution ring, announced U.S. Attorney Edward L. Stanton III.
# # # #
According to facts revealed during sentencing, McDuffie was one of the principal organizers of a heroin trafficking organization based in the Hyde Park area of Memphis. After the heroin was brought into the city from Chicago, McDuffie was responsible for identifying and organizing stash houses in the neighborhood where drugs were stored.
Before his indictment in May 2012, McDuffie conspired to distribute and did distribute heroin worth thousands of dollars throughout the area. Testimony during sentencing held McDuffie personally responsible for distributing up to three kilograms of heroin, and the organization for distributing as much as seven kilograms of heroin.
The investigation began as a result of a series of heroin overdose deaths in the Hyde Park area. McDuffie pleaded guilty on November 7, 2012, to one count of conspiracy to distribute heroin and one count of heroin distribution. In addition to the prison sentence, Chief Judge McCalla ordered McDuffie to serve eight years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Daniel French represented the government.
This case was prosecuted under the authority of the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Massachusetts Man Pleads Guilty to Human Trafficking and Production of Child PornographyRead the Press Release
Jackson, Miss - Jemery Hodges, 26, a Jackson native residing in Cambridge, Massachusetts, pled guilty in federal court today to human trafficking of a minor child and the production of child pornography, announced U.S. Attorney Gregory K. Davis and Raymond R. Parmer, Jr., Special Agent in Charge of ICE Homeland Security Investigations in New Orleans.
At today’s hearing, Hodges admitted that he traveled to Mississippi for the purpose of engaging in sexual intercourse with a child under the age of 10 years old. Hodges also admitted that he produced videos of himself engaging in sexually explicit conduct with the child.
The investigation of this case began when the Cambridge, Massachusetts Police Department received information about illegal sexual activities conducted in Mississippi and the production of videos depicting sexual intercourse with a child. The Cambridge Police Department contacted the Department of Homeland Security (“HSI”) in Atlanta who worked with HSI in Jackson to conduct the investigation leading to the identity of the minor child in the videos. Assistant U.S. Attorney Glenda Haynes is prosecuting the case.
“The sexual abuse of children is absolutely horrific,” said United States Attorney Gregory K. Davis, “I commend the law enforcement agents who worked tirelessly on the investigation of this case. We will continue to aggressively prosecute offenders who victimize innocent children.”
“Today’s guilty plea results from a monumental effort by HSI and its law enforcement partners to identify and rescue an innocent child from unspeakable abuse,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. “Sexual predators destroy lives and pose a threat to children everywhere. HSI will continue to investigate and seek prosecution of these dangerous criminals to make our communities a safer place.” Parmer oversees a five-state region including Alabama, Arkansas, Louisiana, Mississippi and Tennessee.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:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Martin Man Found Guilty of Distribution of MorphineRead the Press Release
United States Attorney Brendan V. Johnson announced that on June 20, 2013, Alex Lee Salway, age 54, of Martin, South Dakota was found guilty by a federal jury in U.S. District Court on two counts of Distribution of a Controlled Substance
Each charge carries a maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, or both.
Salway was indicted by a federal grand jury on June 19, 2012 as part of Operation Prairie Pharm, a controlled substance investigation that resulted in 12 individuals being indicted for drug distribution offenses in Bennett County.
The charges against Salway stem from him selling and distributing morphine pills, within 1,000 feet of a public elementary school in Martin, on two separate occasions on January 27, 2012.
This case was investigated by the South Dakota Division of Criminal Investigation, the Bureau of Indian Affairs Office of Justice Services, the Martin Police Department, and the Northern Plains Safe Trails Drug Enforcement Task Force. Special Assistant U.S. Attorney Laura A. Shattuck prosecuted the case.
Salway remains in the custody of the U.S. Marshal. A sentencing date has not been set.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of Florida Man in Connection with $8 Million Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced today that SETH BEOKU BETTS, a principal of Betts and Gambles Global Equities, LLC (“Betts and Gambles”), was arrested today on the charge of wire fraud for operating a scheme to defraud a public university (the “University”) in the Midwest of more than $8 million. BETTS is alleged to have solicited the money from the University for the purposes of trading in collateralized mortgage obligations (“CMOs”). He then misappropriated the funds, including at least $2 million to purchase luxury automobiles and a personal residence in Florida. BETTS was arrested in Durham, North Carolina this morning, and is expected to be presented in federal court in the Eastern District of North Carolina, Western Division, this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the main investment Seth Betts made was in himself. He induced a public university to make a large investment on which he promised a quick, safe return, but instead he pocketed the university’s money to buy luxury cars, property and to fund other expenses, delivering a full-fledged fraud as the university’s only return, as described in the complaint. With his arrest, this Office continues its work to hold financial professionals accountable for cheating investors.”
FBI Assistant Director-in-Charge George Venizelos said: “Seth Betts allegedly committed the most brazen form of investment fraud. Worse than misrepresenting how he would invest the University’s money, Betts made few investments at all – other than in luxury goods for himself. You can’t take someone’s money to invest in mortgages and spend it on Maseratis.”
According to a Complaint unsealed today in Manhattan federal court:
Between July 2008 and December 2008, BETTS presented himself to the University as a principal of Betts and Gambles. In that capacity, he solicited the University’s investment in CMOs, which he would then sell to third-party buyers in short order at predicted profits. CMOs are fixed income mortgage-backed securities which permit investment in different tranches based upon the maturity of the underlying mortgages. As a result of his solicitation, the University invested approximately $8.165 million dollars of the University’s money with BETTS.
BETTS misappropriated the money and never delivered any CMOs to the University or returned any funds. For example, on December 10, 2008, BETTS transferred $325,000 of the University’s investment money to a car dealership for the purchase of a Ferrari automobile and a Maserati automobile. Approximately one week later, he transferred $1,545,000 of the University’s investment money to an attorney trust account in connection with his purchase of a personal residence in Florida. BETTS also spent at least $455,000 on additional personal expenses, including more than $150,000 in additional payments to car dealerships.
BETTS, 37, of Boynton Beach, Florida, is charged with one count of wire fraud. The charge carries a maximum sentence of 20 years in prison, or twice the gross gain or loss from the offense.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney's Office and the FBI, which jointly investigated this case.
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.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Michael A. Levy and Telemachus P. Kasulis are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Betts, Seth Complaint
Macandrews & Forbes Holdings Inc. to Pay $720,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
MacAndrews & Forbes Holdings Inc. will pay a $720,000 civil penalty to settle charges that the company violated premerger reporting and waiting requirements when it acquired voting securities of Scientific Games Corporation, the Department of Justice announced today.
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against MacAndrews & Forbes for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
MacAndrews & Forbes is a holding company based in New York and is wholly-owned by Ronald O. Perelman. Scientific Games is a New York-based provider of lottery and gaming services.
According to the complaint, MacAndrews & Forbes failed to comply with the antitrust premerger notification requirements of the HSR Act before acquiring voting securities of Scientific Games in June 2012. As a result of these acquisitions, MacAndrews & Forbes held Scientific Games voting securities in excess of $68.2 million, the HSR reporting threshold then in effect. Although certain stock acquisitions relating to a previous HSR Act notification are exempt from additional notice and waiting requirements, MacAndrews & Forbes’ June 2012 acquisitions of Scientific Games voting securities fell outside of the five-year time period for that exemption.
The Hart-Scott-Rodino Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements on individuals and companies over a certain size before they consummate acquisitions resulting in holding stock or assets above a certain value, which was $68.2 million in 2012 and is currently $70.9 million.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
Local Man Sentenced in Nationwide Fraud SchemeTargeting Prisoners and Their FamiliesRead the Press Release
A Yale, Michigan man was sentenced to 240 months’ imprisonment today on convictions pertaining to a mail fraud scheme that defrauded thousands of prisoners and their families across the country, United States Attorney Barbara McQuade announced today. McQuade was joined in the announcement by Postal Inspector in Charge E.C. Woodson, U.S. Postal Inspection Service, Detroit Division and Special Agent in Charge Erick Martinez, Internal Revenue Service, Criminal Investigation.
John Wilson, age 57 of Yale, Michigan, pleaded guilty last December to devising and executing a scheme to defraud and to obtain more than $2.6 million from the family members and friends of defendants incarcerated across the United States. Specifically, John Wilson raised false hopes that Wilson could overturn the convictions or reduce the sentences of the inmates if their friends and family members hired Wilson’s companies.
According to the indictment, John Wilson operated three businesses in Southeastern Michigan: University Legal Services LLC (ULS), University Research Services LLC (URS), and Appellant Research Services LLC (ARS). Co-defendant, Lari Zeka was an employee of ARS and URS. ULS, URS, and ARS sent direct mailings to inmates across the country offering to conduct legal and appellate work on the inmate’s behalf. When a family member or friend telephoned John Wilson or Lari Zeka, they explained that payment was required for two phases: legal research and attorney retainer. Wilson and/or Zeka promised that legal research would be provided during the first phase which would help win the inmate’s appeal. Wilson and/or Zeka promised during the second phase, the “attorney retainer” phase, that an attorney would be provided to assist in the case. These representations by Wilson and Zeka induced people across the United States to mail large amounts of money to URS and ARS, purportedly for appellate research and appellate representation when, in fact, any research provided would not assist the inmate and no attorney would ever be provided to work on the inmate’s appeal.
According to the indictment, Wilson and/or Zeka frequently used fictitious names in correspondence with the victims and both repeatedly represented themselves as attorneys or represented that attorneys were on the staff. Neither Wilson nor Zeka is licensed to practice law and no attorneys were on staff at any of the companies.
Wilson also pleaded guilty to the federal offense of failing to file income tax returns.
United States Attorney Barbara McQuade said, “This fraud scheme preyed upon family members who were desperate to obtain help for loved ones. Not only did this scheme exploit people in need of legal services, but it also denied them access to justice.”
E.C. Woodson US Postal Inspector in Charge said, “Today marks a victory for all who entrust their money to others within the U.S. economy, including individuals who are incarcerated. Postal Inspectors have protected Americans from those who use the U.S. Mail for fraudulent purposes since the passage of the Mail Fraud Statute in 1872. The sentencing of John Henry Wilson demonstrates the Postal Inspection Service's continuing commitment to protect all citizens of the United States.”"Wilson both took advantage of his clients and failed to file his tax returns claiming his income," said IRS Special Agent in Charge Erick Martinez. "He now faces prison time for his actions."
In addition to a sentence of 240 months, the district court ordered over $2 million in a money judgment for the monies he obtained from the victims of his scheme. In a companion civil forfeiture lawsuit, the government has already successfully forfeited a 2003 auto trailer and two vintage Jeeps restored by Wilson with proceeds from the fraud. As part of his plea, Wilson also agreed to abandon thirteen firearms seized from his home.
McQuade congratulated the hard work of the inspectors at the United States Postal Service and the agents at the Criminal Investigations Division of the Internal Revenue Service for their efforts in pursuing this case.
The case was prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen and Assistant U.S. Attorney Margaret Smith. Assistant U.S. Attorney Gjon Juncaj handled the criminal forfeiture allegations and the civil forfeiture action.
Loan Broker Sentenced to over 15 Years in Prison in Conspiracy to Fraudulently Obtain over $100 Million in Sba-backed LoansRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, today to 188 months in prison followed by five years of supervised release for conspiring to commit bank fraud in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Judge Quarles also ordered Park to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“SBA underwriters approved $100 million in business loans brokered by Jade Capital based on fraudulent bank statements, checks, gift letters, resumes and tax returns that made it appear as if the borrowers had invested money in the businesses,” said U.S. Attorney Rod J. Rosenstein. “When borrowers and brokers submit false information and fraudulent documents, the underwriting process is defeated and the taxpayers bear the loss.”
According to his plea agreement, Joon Park and his brother, Loren Park, owned and operated Jade Capital, a loan brokerage company specializing in securing loans for individuals interested in purchasing or refinancing small businesses in the Mid-Atlantic area. According to the indictment, Joon and Loren Park and others under their direction encouraged prospective borrowers to apply for business loans through an SBA program which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under the program, the principals of the small business seeking the loan were required to invest a certain amount of their own money before they qualified for a loan. The banks and other lenders bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Joon Park admitted that from 2003 until October 2011, he and others under his direction including Nick Park (no relation), Joo Hyuk “John” Lee, Sang Hyun Kim, and In Jung Ham, submitted SBA loan applications and supporting documentation to loan originators and underwriters on behalf of their clients that contained fraudulent documents, including: bank statements for borrowers that were altered to make it look like the borrowers had more cash to inject into the business they were buying than they in fact did; counterfeit cashier’s checks and fake gift letters that made it look like the borrowers had more assets at their disposal to use as down payments than they did; fabricated resumes that made it look like the borrowers had more experience running the businesses they sought to purchase than they did; fake tax returns that made it look like the borrowers had greater income than they did; phony interim financial statements that made other businesses the borrowers owned look more profitable than they were; and a number of other misrepresentations.
The Parks charged a loan brokerage fee to both the financial institutions and the borrowers for assembling and submitting loan application packages that resulted in the issuance of SBA-guaranteed loans. The fees charged to borrowers were hidden from the financial institutions underwriting the loans. The Parks also had undisclosed ownership interests in businesses involved in some of the transactions and received loan proceeds, unbeknownst to the lenders, in a number of transactions. In one instance, the Parks did not have an ownership interest in a company involved in a transaction but persuaded the seller to assign some of the loan proceeds to them and then converted those proceeds to their own personal use.
Joon Park also worked with settlement attorney Seung E. Oh, to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, by misrepresenting to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions. In addition to conducting fraudulent closings, Oh wired money to Jade Capital clients to make it appear as though they qualified for loans when they did not, and received, at Joon Park’s direction, loan proceeds to repay those loans.
Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively. Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia, pleaded guilty to conspiracy to commit bank fraud and money laundering, and is scheduled for sentencing on July 9, 2013 at 1:00 p.m.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who prosecuted the case.
Lakewood Oncologist to Pay $3.1 Million to Settle Health Care Fraud ClaimsRead the Press Release
Dr. Alfred H. Chan, an oncologist in Lakewood, Washington, and his family, have agreed to pay the United States $3.1 million to settle allegations that he and his wife defrauded federal health care programs by significantly and repeatedly overbilling for cancer treatment medications. From at least April 2006 through April 2009, the government contends that Dr. Chan and his wife Judy Chan intentionally inflated claims to Medicare, TRICARE, and other federal health care programs, resulting in a loss to the government estimated at over $1 million. Today’s settlement represents a recovery of almost three times the estimated loss to federal health care programs.
“Dr. Chan and Judy Chan blatantly and persistently defrauded the government of more than a million dollars and traded the safety of cancer patients for their own personal gain,” said U.S. Attorney Jenny A. Durkan. “They continue to try to avoid criminal sanctions by remaining outside the U.S. This civil settlement recoups the financial damage they inflicted on taxpayer funded programs.”
The government was alerted to the Chans’ fraud through a “qui tam” or “whistleblower” lawsuit brought under the False Claims Act by one of Dr. Chan’s former employees, Ruth Ruckman. Ms. Ruckman observed that Dr. Chan – with the assistance of his wife, Judy – routinely billed federal healthcare programs for twice (or more) the amount of cancer treatment drugs actually administered to his patients. The couple then destroyed records and falsified patients’ medical records in order to conceal the fraud. Ms. Ruckman provided the government with Dr. Chan’s treatment orders, which showed the actual dosages of drugs administered to certain patients, and the invoices, which showed how much Dr. Chan overbilled for the treatments.
Upon learning of the government’s investigation, the Chans attempted to sell, transfer, and conceal millions of dollars in assets in an ultimately unsuccessful attempt to prevent the government from recovering its overpayments. In February 2011, the Chans fled to Taiwan. A grand jury sitting in the Western District of Washington has returned a criminal indictment against Alfred and Judy Chan relating to their fraudulent conduct.
Pursuant to the False Claims Act, Ms. Ruckman is entitled to share in the government’s recovery and will receive $620,000 of the $3.1 million settlement for exposing the Chans’ fraudulent conduct.
Government agencies supporting and/or participating in the successful resolution of this matter include: the Office of Inspector General of the Department of Health and Human Services; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; the Office of Inspector General of the Office of Personnel Management; the TRICARE Management Activity Office of General Counsel; the Washington State Health Care Authority; and the Washington State Attorney General’s Office.
Keith Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that MATTHEW KEITH, age 36, pled guilty yesterday before Chief United States District Court Judge Brian Jackson to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program.”) KEITH faces a sentence of up to five (5) years imprisonment, three (3) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.
At today’s hearing, KEITH admitted that he owned and operated DMG Holdings, LLC and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures. KEITH admitted, within a nine-day period beginning on June 10, 2009, he conspired with others, including an individual identified only as D.G., to transfer $1,000,000 D.G. received from an investor through four separate film production companies. These transfers created cancelled checks which D.G. later used as false documentation for $4,000,000 of motion picture productions.
The Louisiana Economic Development Office (“LED”) is a state entity which mission is to lead economic development for the State of Louisiana. LED operated the Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”) which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable.
Between June 10, 2009 and March 31, 2010, D.G. applied for, and received, tax credits from the LED for various movies. In total, $4,000,000 of the purported expenditures related to films was based upon the false expenditures created in the scheme described above. The tax credits issued by LED, based upon the false expenditures, totaled $1,200,000. KEITH’s role in the conspiracy resulted in the receipt of improperly obtained tax credits totaling $300,000.
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.
KC Man Indicted for Distributing KhatRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been indicted by a federal grand jury for distributing cathinone, a controlled substance found in graba, a dried form of khat.
Omar Nur, also known as “Juello” or “J’ello,” 29, an American citizen of Somalian nationality, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on June 18, 2013. That indictment was unsealed and made public today upon Nur’s arrest and initial court appearance.
Khat is green leafy plant grown in East Africa, which when consumed (normally by chewing) produces delusions, hallucinations, or feelings of euphoria. In this form it contains cathinone, a controlled substance. When the khat is dried it is commonly referred to as graba and can still test for the presence of cathinone.
The federal indictment alleges that Nur participated in a conspiracy to distribute khat between March 16, 2011 and April 1, 2013. In addition to the conspiracy, Nur is charged with three counts related to distributing khat.
The indictment also contains a forfeiture allegation, which would require Nur to forfeit to the government any property derived from the proceeds of the alleged offenses, including a money judgment of $50,000, representing income from Nur’s illegal sale and distribution of khat, as well as $20,533 that was seized by law enforcement officers at Nur’s residence.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Settles Complaint Against Vermont Dairy Farm for Improper Medication PracticesRead the Press Release
The United States has filed suit in the U.S. District Court for Vermont against Lawson Farm, Robert Lawson, George R. Lawson, and Lonnie A. Griffin to block them from violating the Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food. The Justice Department filed the suit on behalf of the Food and Drug Administration (FDA).
Defendants Lawson Farm, Robert Lawson, and George R. Lawson have agreed to settle the litigation and be bound by a Consent Decree of Permanent Injunction that enjoins them from committing violations of the FDCA. The proposed consent decree has been filed with the court and is awaiting judicial approval. The lawsuit continues against defendant Lonnie Griffin.
“When farms fail to maintain appropriate controls concerning the medication of food-producing animals, they jeopardize the public health,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “We are committed to making sure food producers have put in place the procedures and documentation necessary to help ensure that consumers receive safe foods for their family table.”
The government’s action results from a series of inspections of the Irasburg, Vermont farm, which revealed, according to the FDA, that the defendants failed to maintain complete treatment records for their animals and that they sold animals for slaughter containing excessive and illegal drug residues in its edible tissues. The complaint also alleges that the defendants have dispensed prescription new animal drugs on more than one occasion without a lawful order from a veterinarian.
The complaint states that excess drug residues in animal tissues can harm consumers by causing allergic reactions and by contributing to the spread of antibiotic-resistant bacteria. Both FDA and the U.S. Department of Agriculture (USDA) have warned the defendants that their conduct violates the FDCA. Nonetheless, according to the complaint, the most recent FDA inspection, concluded in August 2012, documented the continuing nature of the defendants’ violations, and established their responsibility for illegal drug residues found in edible tissues sampled by USDA.
The government’s complaint asserts that the defendants have introduced adulterated food into interstate commerce, caused new animal drugs to become misbranded and adulterated while held for sale after shipment in interstate commerce, and failed to comply with statutory and regulatory requirements concerning the extra-label use of new animal drugs.
The FDA referred the case to the Department of Justice. The matter was filed by the Department of Justice’s Consumer Protection Branch, the U.S. Attorney’s Office for the District of Vermont, and FDA’s Office of the General Counsel.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Jury Finds Davenport Man Guilty of Conspiracy to Distribute More Than 100 Grams of HeroinRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that a federal jury found Henry Negron (59, Davenport) guilty of conspiracy to possess with intent to distribute over 100 grams of heroin and four counts of possession and distribution of heroin. He faces a maximum penalty of 40 years on the conspiracy count and up to 20 years on each of the possession and distribution counts. Negron’s sentencing hearing is scheduled for September 16, 2013, before Senior U.S. District Judge Gregory A. Presnell. Negron was indicted on February 27, 2013.
According to evidence presented at trial, from October 12, 2012, through January 28, 2013, Negron was part of a heroin distribution conspiracy based out of Osceola County. On four separate dates, Negron worked with a co-conspirator to sell more than 100 grams of heroin to an undercover agent who was posing as a drug dealer. During the conspiracy, Negron drove his co-conspirator to all four heroin deals. On one occasion, he stored more than four ounces of heroin in his vehicle. He also participated in a phone conversation with the undercover agent leading to one of the deals.
This case was investigated by the Drug Enforcement Administration and the Osceola County Investigative Bureau. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and E. Jackson Boggs.
Jefferson County Woman Pleads Guilty in Meth Distribution SchemeRead the Press Release
PITTSBURGH - A Jefferson County resident pleaded guilty in federal court to a charge of violating the federal drug laws, United States Attorney David J. Hickton announced today.
Tina Smith, 43, of Brookville, Pa., pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between 2010 and September 2011 Smith was a distributer of methamphetamine for a drug conspiracy centered in the Jefferson County area, around Brookville and DuBois. Her supplier was Joshua Shaffer of Florida, who provided several pounds of methamphetamine and thousands of oxycodone tablets to the other eight members of the conspiracy.
Four members of the conspiracy have now pleaded guilty, with five other alleged conspirators awaiting trial.
Judge Cercone scheduled sentencing for Nov. 1, 2013. The law provides for a total sentence of not more than 20 years, a fine of not more than $1, 000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation that led to the prosecution of Tina Smith.
James D. Acfalle Sentenced to 100 Months ImprisonmentRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that JAMES D. ACFALLE, age 39, was sentenced today, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to 100 months (8 years and four months) imprisonment with credit for time served and five years supervised release upon his release from prison, for the offense of Conspiracy to Distribute Methamphetamine (Ice).
ACFALLE along with defendant Roland Nauta were charged with conspiracy to distribute methamphetamine. The ice was sent through the U.S. Postal Service. Dogs from Guam Customs and Quarantine alerted on a package sent to Nauta through the U.S. Postal Service. Roland Nauta, age 39, was sentenced on June 7, 2012 to 157 months (13 years and one month) imprisonment with credit for time served and five years supervised release, for the offenses of Conspiracy to Distribute Methamphetamine and Using, Carrying or Possessing a Firearm During and In Relation to a Drug Trafficking Crime.Assistant United States Attorney Clyde Lemons prosecuted the case. The investigation was conducted by Guam Customs and Quarantine, U.S. Postal Service Inspectors, DEA, Superior Court of Guam Probation Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Department of Homeland Security, Homeland Security Investigations.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on June 19, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
JOSHUA HAMPTON MURPHY, a 29-year-old resident of Flint, Michigan, appeared on charges of conspiracy to distribute heroin and possession with the intent to distribute heroin. He is currently detained. If convicted of these charges, MURPHY faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine and 4 years supervised release. Assistant U.S. Attorney Timothy J. Racicot is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Missouri River Drug Task Force.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on June 20, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
DONALD WILLIAM FORREST, a 51-year-old resident of Butte, appeared on a charge of possession with the intent to distribute methamphetamine. He is currently released on special conditions. If convicted of this charge, FORREST faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Bryan R. Whittaker is the prosecutor for the United States. The investigation was a cooperative effort between the Montana Division of Criminal Investigation and the Drug Enforcement Administration.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
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 20, 2013:
Subir Maitra, 73, of Chicago, Illinois, was charged with health care fraud and forfeiture.This charge was filed as the result of an investigation by the Federal Bureau of Investigation and the Department of Labor.This case has been assigned to and will be prosecuted by Assistant United States Attorney Diane Berkowitz.
David Alan Resnick, 33, of Lucie, Florida, was charged with aggravated sexual abuse of a minor, transportation of child pornography, brandishment of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm.This charge was filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
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.
Hermitage Man Pleads Guilty ToDistribution of Child PornographyRead the Press Release
William John Patterson, 41, of Hermitage, Tennessee pleaded guilty yesterday in U.S. District Court in Nashville to distribution of child pornography, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
According to the plea agreement and other statements made during the hearing yesterday, on September 9, 2012, police were called to the home of William John Patterson in Hermitage, Tennessee, after receiving a report that Patterson had engaged in domestic violence, had sold and used drugs, and was in possession of child pornography. Responding law enforcement officers from the Metropolitan Nashville Police Department obtained and executed search warrants for Patterson’s home and mobile phone. Analysis of the electronic equipment revealed that Patterson had obtained 7,300 images and approximately 300 videos depicting the sexual exploitation of minor children and many of the files were located in hidden or unexpected places on the computer.
The examination further revealed that Patterson had been receiving such images since October 2009. The collection predominately consisted of very young girls engaged in sexual activity, including toddlers and very young children being raped and tortured by a variety of methods.
Patterson was subsequently indicted by a federal grand jury on November 14, 2012.
Patterson faces a maximum sentence of 20 years in prison. A first offense of distribution of child pornography carries a minimum mandatory sentence of five years in prison. Patterson is scheduled for sentencing before U.S. District Court Judge Kevin H. Sharp, on September 23, 2013, at 3:30 p.m.
This matter was investigated by the Metropolitan Nashville Police Department, the Dickson County Sheriff’s Office, and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.Heather Louise Manyen Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 20, 2013, before U.S. District Judge Sam E. Haddon, HEATHER LOUISE MANYEN, a 32-year-old resident of Laurel, was sentenced to a term of:
Prison: 34 months
Special Assessment: $100
Community Service: 400 hours
Supervised Release: 5 years
MANYEN was sentenced in connection with her guilty plea to conspiracy to possess methamphetamine with intent to distribute and distribution.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M., D.M. and A.H. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. C.M., D.M. and A.H., had several distributors that sold the methamphetamine for the organization. One of the distributors was Julie Rozell. Rozell admitted to distributing approximately four pounds of methamphetamine for the organization. One of her distributors was HEATHER MANYEN.
During the investigation law enforcement learned that HEATHER MANYEN was a distributor of methamphetamine for Rozell from approximately March 2011, and continuing thereafter until late January 2012. HEATHER MANYEN worked with Frank Manyen to distribute the methamphetamine obtained from Rozell. HEATHER MANYEN and Frank Manyen together distributed the methamphetamine they obtained from Rozell in the greater Billings area. HEATHER MANYEN and Frank Manyen obtained approximately 700 grams of methamphetamine from Rozell, which they in turn distributed to their own customers.
Frank Manyen and Julie Rozell pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MANYEN will likely serve all of the time imposed by the court. In the federal system, MANYEN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force and High Intensity Drug Trafficking Area (HIDTA) Task Force.
Halethorpe Man Sentenced to 7 Years in Prison for Possession, Receipt and Transportation of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Alan Clifton, age 27, of Halethorpe, Maryland, today to 7 years in prison, followed by 30 years of supervised release, for possession, receipt and transportation of child pornography. Judge Bennett ordered that upon his release from prison Clifton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to evidence presented at his four day trial, Clifton used a file sharing program to share images of child pornography. On October 11, 2011, an undercover detective downloaded three videos depicting minors engaged in sexually explicit conduct from Clifton’s files. A search warrant was subsequently executed at Clifton’s residence by the Baltimore County Police Department Crimes Against Children Unit and officers seized Clifton's laptop computer, which was found in his bedroom, another computer, an external hard disk drive, and other digital media. An on-scene forensic scan of Clifton's laptop computer revealed images of child pornography. A subsequent forensic examination of the external hard drive recovered 3700 files of child pornography, including the three videos that had been downloaded by the undercover detective.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Peter J. Martinez, who prosecuted the case.
HOUSTON Man Arrested in Health Care Fraud SchemeRead the Press Release
HOUSTON – Mathew U. Okorocha, 63, has been indicted on charges of conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today. Okorocha, of Houston, joins Lawrence T. Tyler, 41, also of Houston, in a 10-count superseding indictment, returned June 12, 2013.
Okorocha is expected to make an initial appearance this afternoon.
The indictment alleges Okorocha sold medical equipment through his company called KC International in Houston. He allegedly created false invoices to assist Tyler in order for his durable medical equipment company to pass its Medicare inspection. In May 2008, Medicare sought invoices from Tyler to verify medical equipment billings to Medicare, according to the indictment. Okorocha allegedly helped create false invoices reflecting more than $300,000 in purchases of orthotic equipment – back, knee, elbow, wrist and ankle braces. Tyler sent these invoices to Medicare twice – in June 2008 and again in December 2008 – in an effort to keep his billing number, according to the indictment. Medicare revoked Tyler at the end of December 2008.
The indictment alleges that from 2007 to 2009, Tyler falsely billed Medicare and Medicaid for so-called “ortho kits” which consisted of assorted braces. Tyler allegedly billed for equipment that was never delivered, billed for equipment using prescriptions from a physician who never treated the patients and up coded - billed for a higher reimbursed brace but delivered a cheaper brace that either did not fit the billing code or did not qualify for any Medicare reimbursement. In addition, as part of the conspiracy, the indictment alleges Tyler paid a marketer for patient billing information, a violation of the federal anti-kickback statute.
Tyler, under the company name, 1866ICPAYDAY.COM LLC, allegedly billed Medicare and Medicaid approximately $2.3 million and was paid approximately $1.4 million.
If convicted, both face up to five years in prison and a possible $250,000 fine.
The charges are the result of the investigative efforts of the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations and the United States Attorney’s Office. Special Assistant United States Attorneys Suzanne Bradley and Adrienne Frazior are prosecuting the case.An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Franklin County Dance Instructor Sentenced to 274 Months and Lifetime Supervised Release in Child Pornography CaseRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today BRUCE ARTHUR HOWARD, 55, was sentenced by Federal District Court Judge Louise W. Flanagan to 274 months imprisonment and lifetime supervised release for receipt of child pornography. HOWARD had been convicted of Taking Indecent Liberties With A Child in Forsyth County in a separate case in 1987. Prior to his arrest, HOWARD had been employed as a dance instructor in multiple studios, including studios in Zebulon, Wilson, and Knightdale.
The North Carolina State Bureau of Investigation developed a lead in August of 2011 that an individual in Louisburg, North Carolina was sharing child pornography over the Internet. The crime was traced to the defendant’s residence, where detectives executed a search warrant in October 2011 and found numerous images and videos of child pornography. Subsequent forensic examination demonstrated that HOWARD’s collection included images depicting the sexual abuse of prepubescent children and the sadistic abuse of children. The investigation further revealed that the defendant had induced a child to create and send pornographic images of the child to the defendant, and had engaged the child in a discussion about engaging in sex acts. Notwithstanding his prior sex offense, HOWARD was not required to register as a sex offender.
“This case is an excellent illustration of the strong connection between child pornography crimes and the sexual abuse of children,” said U.S. Attorney Thomas G. Walker. “Child pornography crimes represent a grave danger, both direct and indirect, to the children in our community. We will continue to make a priority of combating crimes that exploit and abuse children.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation with the assistance of the Franklin County Sheriff’s Office. Prosecution was coordinated with the Franklin County District Attorney’s Office. Assistant United States Attorney Jay Exum prosecuted the case for the United States.