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Tuesday 7 May 2013
Orlando Man Found Guilty of Conspiring to Possess and Pass Almost $10,000 in Counterfeit MoneyRead the Press Release
Orlando, FL - U.S. Attorney Robert E. O'Neill announces that a federal jury yesterday found Ibrahim Issa (23, Orange Park) guilty of conspiracy to possess and pass counterfeit money. He faces a maximum penalty of 5 years in federal prison. His sentencing hearing is scheduled for July 17, 2013.
Issa was indicted on March 20, 2013, and a superseding indictment was filed on May 1, 2013.
According to testimony and evidence presented at trial, Issa agreed to hold almost $10,000 in counterfeit $100 bills at his cell phone store in Orlando. He was then told to give the money to a family friend who was scheduled to return the fake money to someone in the Tampa/Sarasota area as part of a larger counterfeit money scheme. U.S. Secret Service agents discovered Issa's role in the scheme after one of Issa's employees stole $600 of Issa's counterfeit money and spent the phony bills in the Orlando area.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
Operation Blue Storm selected for Regional AwardRead the Press Release
United States Attorney for the District of Nebraska, Deborah R. Gilg, announces that Operation Blue Storm was selected as the National Organized Crime Drug Enforcement Task Force (OCDETF) most outstanding regional drug trafficking case for 2012. An awards ceremony was held today at the United States Attorney’s Office honoring the investigators and prosecutors involved in this case. The cooperative efforts of these individuals made the Operation Blue Storm OCDETF case such a resounding success. The award recipient agencies involved in the case included twenty-five investigators and prosecutors from the following agencies:
Bellevue Police Department
Federal Bureau of Investigation
Internal Revenue Service
Omaha Police Department
Peoria (AZ) Police Department
United States Attorney’s Office – District of NebraskaIn addition to these represented agencies in attendance, Associate Deputy Attorney General Jim Dinan, Director of OCDETF, joined the ceremony via video conference, and IRS SAC Sybil Smith and ASAC Tanya Brewer from St. Louis were in attendance, along with Sam Bertolet, the OCDETF regional coordinator.
The OCDETF program was established in 1982 as a multi-agency, nationwide effort to pursue intelligence-driven, coordinated multi-jurisdictional investigations of criminal organizations trafficking drugs and laundering the illicit proceeds of crime. The OCDETF Program forms the centerpiece of the DOJ counter-narcotics strategy and is also the platform through which the Department of Homeland Security and Department of Treasury pursue complex drug and drug-related money laundering investigations. Through the OCDETF Program, these three Executive Departments use prosecutor-led, multi-agency task forces to combat high-priority national and international organized criminal organizations.
The investigation and prosecution resulted in the dismantlement of a multi-state marijuana trafficking enterprise, headed up by Shannon Williams, and his associates, many of which were members of a well-known street gang, the South Family Bloods. The enterprise was responsible for the transportation and distribution of nearly 16,000 pounds of marijuana with a street value of approximately $7.75 million. The trafficking operation occurred primarily between Arizona and Omaha. The Nebraska case resulted in the indictment and conviction of 15 individuals, and the seizure of property valued at nearly $600,000. It led to another investigation in Arizona targeting the suppliers, which resulted in the indictment of eleven additional individuals. The suppliers were directly linked to the Sinaloa Mexican Cartel. This investigation required an incredible amount of coordination and orchestration by federal prosecutors. The investigation coordination and cooperation was outstanding from a number of local, state and federal law enforcement officers across the country, that dismantled a very lucrative criminal drug enterprise linked to the most powerful drug cartel in the world.
At the ceremony, United States Attorney Deborah R. Gilg commented, “The outstanding work done by this collaboration of federal, state and local law enforcement agencies disrupted a major tentacle of the Sinaloa Mexican Cartel to the Midwestern region. This demonstrates law enforcement teamwork at its best.”
Nicholas Co. Man Pleads Guilty to Federal Methamphetamine Distribution ChargeRead the Press Release
Brian Crouse doled out up to 1500 grams of methamphetamine from his residence in Belva, W.Va.
CHARLESTON, W.Va. – A Nicholas County man faces a mandatory minimum of ten years in federal prison after pleading guilty today to conspiracy to distribute more than 500 grams of a mixture or substance containing methamphetamine, announced U.S. Attorney Booth Goodwin. Brian Craig Crouse, 50, of Nicholas County, W.Va., sold methamphetamine and other controlled substances from his Belva, Nicholas County residence from at least January 2011until being arrested on January 29, 2013. Crouse pleaded guilty today in federal court in Charleston.
During the scheme, Crouse obtained methamphetamine from various suppliers. Crouse received the methamphetamine “on the front” with the expectation that he would pay his suppliers after the methamphetamine was sold.
Crouse sold a total of between 500 grams and 1500 grams of methamphetamine during the distribution scheme.
Crouse is scheduled to be sentenced on August 20, 2013 by United States District Judge John T. Copenhaver, Jr.
The Central West Virginia Drug Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
New York Man Sentenced to Life in Prison for Three MurdersRead the Press Release
NEWPORT NEWS, Va. – Phillip Michael Bryant, 26, of Brooklyn, New York was sentenced today to life in prison for the murder of three people in aid of racketeering. Bryant pled to the murder of Sean McCracken on or about November 1, 2009, and the murder of Johnny Avery on March 19, 2010. Both murders were committed on Lincoln Park Housing Development property in Hampton. In addition, Bryant waived venue in New York and pled guilty to the murder of Jeremy Kane, a New York State Corrections Officer, who was killed on June 28, 2009, outside of a beauty salon in Brooklyn, New York.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Royce E.Curtin, Special Agent in Charge of the FBI's Norfolk Division and Thomas Townsend, Acting Chief of Hampton Police made the announcement after sentencing by United States District Judge Robert G. Doumar.
“Phillip Bryant poisoned the Lincoln Park Towers community with the crack he dealt. In protecting his drug “turf,” Bryant’s violence caused the death of multiple Hampton residents and left a shaken community in his wake," said U.S. Attorney Neil H. MacBride. "Bringing the full breadth of criminal justice resources to investigate and prosecute Bryant’s conduct, my office, along with our federal, state, and local a law enforcement partners, sought justice for the victims by advocating that Bryant receive the sentence imposed today-life in prison.”
According to court records, the defendant and two others from New York were part of a criminal organization known as the “Miller Time Bloods,” a neighborhood set of the national gang known as “the Bloods.” Bryant and the others travelled to Virginia to operate a drug trafficking business and were known locally as the “New York Boys.” The members and associates engaged in trafficking cocaine base, cocaine and marijuana brought from New York for sale in Lincoln Park. The alleged gang members protected the criminal enterprise and activities through the use of intimidation, violence and threats of violence. In the statement of facts filed at the time of his guilty plea, Bryant admitted to killing Sean McCracken after arguing with him over drug sales taking place outside of the Lincoln Park Tower. After the murder Bryant attempted to dismember the body with an ax. When that proved unsuccessful, he and a co-defendant disposed of McCracken’s body by removing it from the apartment in a steamer trunk and placing it in a dumpster. The dumpster was transported to the Hampton landfill and, beginning in April, 2010, the FBI and Hampton Police conducted an exhaustive thirty-one day search of the landfill but McCracken’s body was never recovered. Johnny Avery was murdered by Bryant over a territorial drug dispute and what Bryant deemed a lack of respect. Avery was talking with two others outside of the Lincoln Park Tower when Bryant joined the conversation, pulled out a firearm, and shot Avery in the face. Despite Avery’s efforts to flee across the parking lot, he was shot multiple times and died of his injuries. Bryant admitted that both murders furthered his position in the “New York Boys,” and his reputation for violence. Jeremy Kane, a correctional officer assigned to the Sing Sing correctional facility was murdered outside of a salon in Brooklyn, New York. It is believed that Bryant murdered Kane in retaliation for Kane pressing charges against a gang member’s brother.
This case was investigated by the Federal Bureau of Investigation Safe Streets Task Force and Hampton Police Division. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel prosecuted this case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New York Man Pleads Guilty to Trafficking in over $4 Million of Contraband CigarettesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a New York man pleaded guilty in federal court today to his role in a conspiracy to traffic in more than $4.1 million worth of contraband cigarettes.
Keith Donald Stoldt, 59, of Cowlesvilel, N.Y., waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan to a federal information that charges him with conspiracy to commit wire fraud and contraband cigarette trafficking.
Stoldt and his wife operate the Totem Smoke Shop, located on the Tonawanda Seneca Indian Reservation in Basom, N.Y. By pleading guilty today, Stoldt admitted that he participated in the conspiracy from July 1, 2011 to Jan. 28, 2012.
Stoldt placed orders for more than $4.1 million of unstamped cigarettes (that is, cigarettes that did not carry the mandated tax stamps because the New York excise tax of $4.35 per pack of cigarettes was not paid) from the president of an Oklahoma tobacco company that manufactured and distributed its own brand of cigarettes. (The Oklahoma company is not identified in court documents; the president of the tobacco company is identified only as an unindicted co-conspirator.) This unindicted co-conspirator would then place orders for those unstamped cigarettes from a Florida business (owned and operated by another unidentified, unindicted co-conspirator) who in turn ordered unstamped cigarettes from a cigarette wholesale business in Independence, Mo. (operated by another unidentified, unindicted co-conspirator).
After the orders had been placed, the Florida business owner would pick up the unstamped cigarettes at either the Independence company’s warehouse or another location in the Kansas City, Mo., area and transport them to the Oklahoma tobacco company. From there, the unstamped cigarettes would be transported to a Nebraska tobacco distribution company then transported by a Nebraska transportation logistics company (both under the same Nebraska parent corporation) to the Totem Pole Smoke Shop in New York.
Stoldt knew that the New York state excise tax of $4.35 per pack would not be paid. This allowed Stoldt to sell the unstamped, untaxed cigarettes at his Totem Pole Smoke Shop at a considerable discount and deprived the state of New York of its tax revenue. As a result of this conspiracy, the amount of Stoldt’s forseeable excise tax loss to the state of New York was approximately $4.37 million.
Under the terms of today’s binding plea agreement, Stoldt must forfeit $247,080 to the government, which represents the proceeds of the conspiracy, and must pay restitution. If the court accepts the plea agreement, Stoldt will be sentenced to a term of probation. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Kansas City, Mo., Police Department and FDIC-Office of Inspector General.
Nationwide Sweep by U.S. Marshals Puts 345 Dangerous Sex Offenders Behind BarsRead the Press Release
Today the U.S. Marshals Service (USMS) concluded Operation Guardian, a three-year, national initiative specifically targeting the country’s most dangerous noncompliant sex offenders. Deputy Marshals and law enforcement partners arrested 345 individuals who had failed to register with state authorities as required by law.
Marshals worked with state and local officials to identify specific non-registering fugitives based on their danger to the public and prior convictions for sex offenses. As of today, USMS investigators have located 427 offenders of 444 sought (or 96 percent of those targeted), including 82 individuals found outside the United States. These individuals represent more than 500 prior convictions for sexual offenses.
“I’d like to thank each of the Deputy U.S. Marshals and state and local law enforcement officials who contributed to the success of this important operation. These dedicated professionals have helped to make our communities safer by taking dangerous fugitives off the streets,” said Attorney General Eric Holder. “Today’s announcement sends a clear message: that the Justice Department and its allies are firmly committed to safeguarding our nation’s young people from all forms of exploitation and abuse. And we are determined to bring noncompliant sex offenders to justice.”
“The U.S. Marshals Service will not tolerate noncompliant and violent sex offenders who evade the law. The message we send to these individuals is there is nowhere you can hide,” said USMS Director Stacia Hylton. “Operation Guardian enabled us to bring to bear the full weight of international, federal, state and local law enforcement resources and intelligence to locate the most egregious sex offenders—those who have victimized innocent children.”
The USMS assigns 129 criminal investigators to conduct sex offender, non-registrant investigations on a full-time basis. Operation Guardian was a collaborative effort led by the USMS in cooperation with Interpol, the Diplomatic Security Service, Customs and Border Protection, and the National Center for Missing and Exploited Children (NCMEC).
“The National Center for Missing & Exploited Children is proud to partner with the U.S. Marshals in helping to protect our nation’s children,” said John Ryan, chief executive officer, NCMEC. “We applaud the overwhelming success of Operation Guardian which located hundreds of the country’s most dangerous noncompliant sex offenders.”
Among those arrested during Operation Guardian were:
· Lee Roy Ramirez, one of “Wisconsin’s Most Wanted,” arrested on April 22, 2013, in Portland, Ore. Ramirez was wanted by the Wisconsin Department of Corrections since 2003 for probation violation on an original charge of second degree sexual assault of a child. The intensive fugitive investigation covered several states and ultimately led investigators to Oregon. Ramirez is in custody in Oregon awaiting extradition back to Wisconsin.
· James K. Jenkins, arrested on Oct. 9, 2012, in Garland, Texas. Jenkins was wanted in DeKalb County, Ga., for failure to register as a sex offender and for probation violation based on a weapons offense. His original offense occurred Dec. 15, 1999, when he raped a 15-year-old girl. He was convicted of statutory rape and sentenced to three years in prison, 7 years of probation and required to register as a sex offender in the state of Georgia. Jenkins moved and did not notify the probation office or the sheriff’s office of his location. In October 2012, a Crimestoppers program received an online tip that placed Jenkins in Garland. Investigators conducted surveillance and arrested Jenkins with a loaded .38-caliber handgun in close proximity.
· David Sherant, arrested Oct. 3, 2012, by Deputy U.S. Marshals from the District of Nevada and members of the Las Vegas SOAP Task Force. Sherant was wanted by the Utah Department of Corrections for violating his term of supervision by failing to register as a sex offender. He was convicted in August 2000 of sexual exploitation of a minor. After release from the Utah State Prison, Sherant absconded parole, and failed to register as a sex offender as required by law. Investigators learned that the 31-year-old Sherant was passing himself off as 18-year-old “Mikey Miller” currently residing in Las Vegas. On Oct. 15, 2012, Sherant was extradited to Utah. His probation was revoked and he was remanded to the custody of the Utah Department of Corrections.
· Darrell Craig Sinclair, arrested on Feb. 28, 2012, in Mexico. Sinclair was wanted by the Riverside County, Calif., Sheriff’s Department for almost 10 years on a $500,000 arrest warrant for failure to register as a sex offender. He was previously convicted of one count of lewd acts against a child in Los Angeles County in 1976, and seven counts of lewd acts against a child in Orange County, Calif., in 1983. USMS investigators determined that Sinclair was in Ajajic, Mexico, and he was taken into custody by Mexican Immigration Officials. Mexican immigration officials escorted Sinclair to Los Angeles International Airport, where he was arrested by Deputy U.S. Marshals.
· Michael Rybkin, arrested on Nov. 9, 2010, in New York. Rybkin was wanted by the Hudson County, N.J., Sheriff’s Department for a parole violation and by Immigration and Customs Enforcement on a warrant of deportation, and is a sex offender in the State of New Jersey. Rybkin is a German citizen. USMS investigators developed information that Rybkin was residing in New York City and using the internet. Rybkin, who was previously banned from New York City Public Libraries, was observed masturbating in front of two female children in October 2010 at a library, but eluded capture. On Oct. 27, 2010, Rybkin was charged by the USMS with violating the Adam Walsh Act and a federal warrant was issued for his arrest. On Nov. 9, 2010, USMS investigators arrested Rybkin at the Grand Central Branch of the New York City Public Library. On March 10, 2011, Rybkin pleaded guilty to the Adam Walsh Act violation, and was sentenced Jan. 19, 2012, by U.S. District Court Judge William Pauley to 63 months incarceration and lifetime supervised release on electronic monitoring.
The Behavioral Analysis Unit at the USMS National Sex Offender Targeting Center worked with the investigators to identify information related to the fugitives across a number of personal or social dimensions, including past sexual offending behavior. The prior convictions of the located offenders represent hundreds of victims and thousands of known sexual assaults. Most of the sexual assault events were engaged against children, and many involved extreme violence.
The NCMEC estimates more than 700,000 sex offenders reside in the United States and that more than 100,000 are classified as noncompliant or unregistered. Since its inception in 2006, the Sex Offender Investigations Branch has planned and executed more than 900 sex offender compliance and enforcement operations. During these operations, the USMS partnered with more than 4,800 state and local law enforcement agencies to conduct more than 150,000 compliance checks.
Mitchell Man Guilty of Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Terace Castaway, age 30, of Mitchell, South Dakota, appeared before U.S. District Judge Roberto A. Lange on May 6, 2013, and pled guilty to the Superseding Information that charged him with Sexual Abuse. The maximum penalty upon conviction is life in prison, a $250,000 fine, or both; a mandatory minimum term of 5 years up to life of supervised release. If Castaway is found by a preponderance of the evidence to have violated a condition of supervised release, he may be incarcerated for an additional term of up to 5 years on any such revocation with one exception. If Castaway commits a new felony violation of chapter 109A (sexual abuse), chapter 110 (sexual exploitation and other abuse of children), chapter 117 (transportation for illegal sexual activity and related crimes), section 1201 (kidnaping), or section 1591 (sex trafficking of children or by force, fraud, or coercion), while on supervised release, he may be incarcerated for a mandatory minimum term of 5 years up to life for such a violation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident that took place between August 1, 2008, and May 31, 2009, when Castaway knowingly engaged in a sexual act with a child by the use of fear. As part of the plea agreement, Castaway also admitted to sexually abusing three other young girls.
The investigation was being conducted by the Federal Bureau of Investigation, and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. A Presentence Investigation Report has been ordered.
Castaway was remanded to the custody of the U.S. Marshal pending sentencing which has been set for August 5, 2013.
Minneapolis Man Pleads Guilty to Robbing Little Canada BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 42-year-old Minneapolis man pleaded guilty to the December 20, 2011, robbery of the US Bank in Little Canada. Reginald Haney pleaded guilty to one count of bank robbery. Haney, who was indicted on February 14, 2012, entered his plea before United States District Court Judge Richard H. Kyle.
In his plea agreement, Haney admitted he stole approximately $2,333 from the bank. During the robbery, he admittedly handed a teller a note that stated she should give him “everything in the top drawer.” After receiving the money, he then exited the building.
According to a law enforcement affidavit filed in the case, witnesses saw Haney leave the scene in a red truck. The truck’s license plate was recorded by surveillance video. Officers found the truck in the parking lot of a Maplewood apartment complex later that day. At approximately 6:30 p.m., officers then observed Haney and a woman drive off in that same truck. Police attempted to conduct a traffic stop, but the truck sped away. Shortly thereafter, the truck stopped, the female passenger got out, and the truck sped off again.
Following a 6.5-mile pursuit by police, the truck stopped in another Maplewood parking lot. Haney exited the vehicle and briefly fled on foot before being apprehended. At the time of his arrest, authorities found $1,079.13 in the front pocket of Haney’s pants. During the execution of a search warrant at the Maplewood apartment where Haney’s female companion lived, officers seized clothing that matched what had been worn by the robber.
For his crime, Haney faces a potential maximum penalty of 20 years in prison. Judge Kyle will determine his sentence at a future hearing. This case is the result of an investigation by the Federal Bureau of Investigation and the police departments of Little Canada and Maplewood. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Milwaukee Man Indicted on Sex Trafficking and Forced LaborRead the Press Release
United States Attorney James L. Santelle announced that a federal grand jury has indicted Najee C. Moore (Age 22), of Milwaukee, Wisconsin, on charges of conspiracy, sex trafficking, and attempted forced labor, of both minor and adult victims. If convicted of the below charges, Moore will face the following penalties.
Count Charge Penalty1
Sex Trafficking of a Minor and through Force, Fraud, and Coercion
No less than 15 years to life imprisonment; $250,000 fine, 3 years supervised release
Conspiracy to Engage in Sex Trafficking of a Minor and through Force, Fraud, and Coercion
A term of years to life imprisonment; $250,000 fine, 3 years supervised release
3
Sex Trafficking of a Minor and through Force, Fraud, and Coercion
No less than 15 years to life imprisonment; $250,000 fine, 3 years supervised release
4
Sex Trafficking of an Adult through Force, Fraud, or Coercion
No less than 15 years to life; $250,000 fine; 3 years supervised release
5
Conspiracy to Engage in Forced Labor
A term of years to life imprisonment; $250,000; 3 years supervised release
6
Attempted Forced Labor with Aggravated Sexual Abuse
A term of years to life imprisonment; $250,000; 3 years supervised release
The indictment alleges that Moore engaged in the sex trafficking of two different minor victims in 2009 and 2012, respectively, and used force, fraud, and coercion to compel both adult and minor victims to engage in commercial sex acts. The indictment further charges the defendant with conspiring and attempting to compel a victim into forced labor.
The matter is being investigated by the Federal Bureau of Investigation, Homeland Security Investigations, Milwaukee Police Department and the Wisconsin Division of Criminal Investigation. Assistance was also provided by the Milwaukee County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman and Trial Attorney Daniel H. Weiss of the U.S. Department of Justice’s Civil Rights Division.
An indictment is merely the formal method of charging an individual and does not constitute evidence of his or her guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Miami Man Sentenced on Alien Smuggling ConspiracyRead the Press Release
Eight Others Previously Sentenced for their Role in Smuggling Ring
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), announced yesterday’s sentencing of Leonardo F. Cabrera, 51, of Miami, for his role in a conspiracy to smuggle aliens from Cuba to the United States through the Bahamas for profit.
U.S. District Judge Joan A. Lenard sentenced Cabrera to 15 months in prison, to be followed by two years of supervised release. Cabrera, who pled guilty on February 25, 2013, was the last of nine defendants charged, convicted and sentenced for their respective roles in a conspiracy to smuggle more than 100 aliens from Cuba into the United States between October 2009 and January 2011.
According to court records, the following eight defendants were previously convicted and sentenced for their roles in this conspiracy:
Gerardo Columbie, 45, of Apopka, Florida, was sentenced to 54 months in prison for his role as an organizer responsible for four alien smuggling trips; Ober Merino Cruz, 41, of Apopka, Florida, was sentenced to 38 months in prison; Jorge Alberto Parrado Martinez, aka “El Chifla,” 52, of Miami, was sentenced to 42 months in prison; Francisco Maunteca Lopez, 49, of Miami, was sentenced to 54 months in prison; Lazaro De Leon Rojas, 47, of Miami, was sentenced to 27 months in prison; Yoan Francisco Parra Mosquera, 38, of Miami, was sentenced to 27 months in prison; Victoriano Del Risco, 43, of Miami, was sentenced to 24 months in prison; and Cristian Jesus Cardet Mombiela, 29, of Las Vegas, Nevada, was sentenced to seven months in prison and seven months home detention for his minor role in the conspiracy. Two defendants, Calvin Sweeting, of Andros, Bahamas, and Jose Luis Perez Garcia, of Miami, remain fugitives.
This case was the result of a three-year investigation by HSI into a smuggling operation that included four separate alien smuggling trips undertaken or planned by the defendants on October 31, 2009, March and April of 2010, June 27, 2010, and between late November 2010 and January 16, 2011. According to court records and statements made in court, the defendants were responsible for smuggling 73 aliens from Cuba into South Florida for an average fee of $10,000 per person.
Mr. Ferrer commended HSI for its extensive work on this case. The case was prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney Charges Debt Settlement Company and Six Individuals for Multi-Million Dollar Scheme That Targeted Debt-Ridden ConsumersRead the Press Release
First-Ever Criminal Charges Based on Consumer Financial Protection Bureau Referral
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment charging MISSION SETTLEMENT AGENCY (“MISSION”), its owner MICHAEL LEVITIS, and three of its employees – DENIS KURLYAND, BORIS SHULMAN, and MANUEL CRUZ – with mail and wire fraud charges in connection with a multi-million dollar scheme that victimized more than 1,200 debt-ridden individuals across the country. As alleged, the defendants fraudulently tricked people into paying MISSION for debt settlement services by lying to prospective customers about its fees, and its purported affiliation with the federal government and one of the three leading credit bureaus in the U.S., as well as the results it supposedly achieved for its customers. In connection with the scheme, MISSION received over $6.6 million in fees. For over 1200 of its customers, MISSION took fees totaling nearly $2.2 million and has never paid a penny to the customers’ creditors. Each of the individual defendants was arrested this morning. They are expected to be arraigned in Manhattan federal court later today before U.S. District Judge Paul G. Gardephe.
Also unsealed today were the guilty pleas of two former MISSION employees, FELIX LEMBERSKIY and ZAKHIR SHIRINOV, for their participation in the fraudulent scheme. SHIRINOV pled guilty pursuant to an Information before U.S. District Judge Denise Cote on April 26, 2013, and LEMBERSKIY pled guilty pursuant to an Information before U.S. District Judge Ronnie Abrams on April 29, 2013.
In a separate action, the Consumer Financial Protection Bureau (“CFPB”) announced civil charges against MISSION and LEVITIS, among others.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Mission preyed upon the financial desperation of people around the country who – like so many ordinary Americans – were simply struggling to pay down their debts after the financial downturn. But the true mission of Mission turned out to be fraud and deceit, and for more than 1,200 consumers, the dream of debt relief turned into a nightmare of deeper debt trouble. Today’s case is a harbinger of an especially potent partnership between this Office and the CFPB that will benefit hardworking Americans everywhere.”
USPIS Inspector-in-Charge Philip Bartlett said: “Postal Inspectors are ever vigilant in bringing to justice individuals who use the U.S. Mail to defraud and otherwise take advantage of the financial circumstances of innocent consumers.”
According to the allegations in the Indictment unsealed today and the Forfeiture Complaint filed today in Manhattan federal court:
Background
Since its inception in 2009, MISSION has offered “debt settlement” services to financially disadvantaged individuals who were struggling or unable to pay their credit card debts. Like other purported debt settlement providers, MISSION held itself out as a company that could successfully negotiate to lower the overall debt its customers owed to credit card companies and banks. LEVITIS operated and controlled MISSION which, at varying times, had offices in Brooklyn and/or Manhattan.
The defendants targeted financially disadvantaged individuals known to be struggling to pay credit card debt and reached out to them through telemarketing and mail solicitations. Thereafter, MISSION’s sales representatives typically spoke to the prospective customers on the phone, describing MISSION’s work and its ability to renegotiate debt. Where an individual ultimately expressed an interest in engaging MISSION, MISSION then had the individual enter into a contract.
Overview of the Fraud
From 2009 through May 2013, the defendants systematically exploited and defrauded over 1,200 financially disadvantaged individuals across the country who were struggling to pay their credit card debts. The individual defendants falsely and fraudulently tricked them into becoming MISSION’s customers by making materially false and misleading statements about MISSION’s ability to help settle their debts and about the fees MISSION would charge in exchange for that help.
Specifically, the defendants commonly lied about and/or concealed MISSION’s fees, falsely stating both verbally and in their written solicitations, that MISSION would charge a mere $49 per month and/or that there would be no up-front fees. In fact, MISSION took thousands of dollars in up-front fees from funds that its customers had set aside because they had been told the funds would be held in escrow and used to pay creditors. The defendants also deceived prospective customers by fraudulently promising that MISSION could help slash their debts – typically by 45% – when, for the majority of customers, MISSION actually did little or no work, and failed to achieve any reduction in debt whatsoever. And the defendants deceptively created an air of legitimacy for MISSION’s business by falsely suggesting that it had affiliations with the federal government and with one of the three leading credit bureaus in the U.S.
Overall, MISSION had approximately 2,200 customers who paid a total of nearly $14 million in connection with its purported debt settlement services. Of these funds, MISSION took over $6.6 million in fees, while paying only approximately $4.4 million to customers’ creditors. For over 1,200 of its customers, MISSION took fees totaling nearly $2.2 million, but never paid a single penny to the customers’ creditors as payment for any negotiated debt. LEVITIS used the money that MISSION took from its customers to pay for things including the operating expenses of a restaurant/nightclub he controlled, lease payments for two different luxury Mercedes cars, and credit card bills for his mother.
Lies About Mission’s Fees
In conversations with prospective customers, the defendants represented that customers would be asked to make affordable monthly payments for a set period of time, that these payments would be held in escrow by a third-party payment processor until MISSION had negotiated down the customers’ debt obligations, and that the money held in escrow would then be used to pay the creditors. The defendants further promised that MISSION would only charge a nominal monthly fee of $49 in exchange for its efforts, and they often explained that MISSION would charge an additional fee only if it succeeded at obtaining a greater reduction in debt than what had been promised. They also claimed in both their written solicitations and in scripted phone calls that there were no up-front fees.
In reality, in addition to the $49 monthly fee, MISSION also charged an up-front fee equal to as much as 18% of the debt the customer owed. MISSION deducted these fees from the monies that customers paid to the third party payment processor, in accordance with a monthly payment plan it established, and that customers understood would be held in their escrow accounts and used to pay their creditors. Instead, MISSION regularly took as fees for itself all of the funds that its customers paid to the payment processor during the first three months of their contracts with MISSION. This was done in order to insure that the company would receive up-front fees before any of the customers’ debt was even paid down.
Lies About Mission’s Results
The defendants typically promised prospective customers that MISSION would negotiate a substantial reduction in their debt, promising prospective customers that they would have to pay only 55% of the amount owed to creditors. When potential customers questioned that assertion because it sounded too good to be true, a written script directed sales representatives to tell them: “The creditors today are content to get the settled amount in light of all the bankruptcies, charge offs, and bad debt out there today.”
This assertion and the underlying promise were false. In reality, MISSION did little or no meaningful work to negotiate reductions in debt for many of its customers, and the sort of result MISSION was promising prospective customers was substantially more favorable than the results MISSION typically achieved for prior customers.
The written script also instructed sales representatives to promise potential customers that if they worked with MISSION, their credit scores would ultimately go up. The script said, “Your credit score will go down in the short term while the accounts are put into position for settlement. Then your score will go up as the payments are made and ultimately your score will be significantly higher.” This was also untrue.
Lies About Mission’s Affiliations
The defendants also made material misrepresentations to prospective customers about MISSION’s relationships and affiliations in a deceptive effort to make MISSION seem more credible and trustworthy. For example, in an effort to attract business, MISSION sent a solicitation letter to prospective customers that falsely suggested that it was acting on behalf of or in connection with a federal governmental program. The letter included an image of the Great Seal of the United States and indicated that it was coming from the “Reduction Plan Administrator” of the purported “Office of Disbursement.” However, the only phone number and address provided in the letter belonged to MISSION, and MISSION did not have any relationship with any federal agency, nor was it operating in connection with any federal program.
Mr. Bharara also announced today the filing of a civil forfeiture complaint seeking to forfeit the proceeds of the alleged fraud and the assets involved in money laundering related to the scheme. Those assets and proceeds include: the Rasputin nightclub, the title for which is in the name of LEVITIS’ mother, whom the government alleges is the real owner of the club; two pieces of real property; and 40 bank accounts.
LEVITIS, 36, of Brooklyn, New York, KURLYAND, 30, of Brooklyn, New York, SHULMAN, 27, of Brooklyn, New York, and CRUZ, 30, of Brooklyn, New York, are each charged with one count of conspiracy to commit mail and wire fraud, one count of wire fraud, and one count of mail fraud. Each defendant faces a maximum sentence of 20 years in prison on each count.
LEMBERSKIY, 29, of Staten Island, New York, and SHIRINOV, 29, of Brooklyn, New York, each pled guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and one count of wire fraud. They each face a statutory maximum sentence of 60 years in prison.
Mr. Bharara praised the outstanding investigative work of the USPIS. He also thanked the CFPB for referring this case to this Office and acknowledged with appreciation, this extraordinary partnership.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney's Office for the Southern District of New York, at (866) 874-8900, or [email protected]. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
For guidance on coping with debt or credit issues, and information about dealing with debt settlement companies in particular, consider the following link to publications issued by the Federal Trade Commissionhttp://www.consumer.ftc.gov/articles/0150-coping-debt;
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Nicole Friedlander and Edward Imperatore are in charge of the prosecution. Assistant United States Attorney Carolina Fornos of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Mission Settlement Agency, et al. Indictment
U.S. v. Felix Lemberskiy Information
U.S. v. Zakhir Shirinov InformationMan Sentenced to 65 Years Imprisonment for His Involvement in Robbery of PharmaciesRead the Press Release
United States Attorney James L. Santelle announced that the April 16, 2013 judgment for Daniel Lee was made public today. The Honorable Charles N. Clevert, Jr. United States District Court Judge, sentenced Daniel Lee (age: 50), of Milwaukee, Wisconsin, to 65 years in prison for his involvement in robberies of several pharmacies of prescription drugs and cash. Lee was also ordered to three years supervised release and to pay restitution in the amount of $5,089.42
Between January and March of 2012, Daniel Lee robbed four Milwaukee-area pharmacies of prescription drugs and cash. During three of the robberies Lee brandished a firearm and his face was partially covered. Large quantities of Oxcodone, oxycontin, and morphine were found during a search at Lee’s residence. Text messages on Lee’s phone showed that he had several customers for the Schedule II controlled substances he was stealing and that Oxycodone 30s were the pills most desired. His phone also contained records of searches of pharmacy locations in the Milwaukee area.
This prosecution was the product of a joint investigation by the Federal Bureau of Investigation, Milwaukee Police Department, Wauwatosa Police Department, and the Shorewood Police Department. The prosecution was handled by Assistant United States Attorney William J. Lipscomb.
Leader of Medicaid Fraud Conspiracy Sentenced to 40 Months in Prison for $336,000 Healthcare Fraud & Money LaunderingRead the Press Release
Fifteen Others Convicted Of Related State And Federal Charges
STATESVILLE, N.C. – An Alleghany Co. woman was sentenced on Monday, May 6, 2013 to serve 40 months in prison and two years of supervised release for health care fraud conspiracy and money laundering, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID); Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region; and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
Betty Ann Cook, 56, of Sparta, N.C., pleaded guilty on April 25, 2012, to one count of health care fraud conspiracy and one count of money laundering conspiracy. According to court documents and court proceedings, Cook was the owner of Families First Home Health Care, a home health care company located in Alleghany Co., N.C. Cook’s company was enrolled with Medicaid to provide personal care services (“PCS”) such as bathing, dressing, and eating to Medicaid recipients. These types of services are provided by a home health aide in the recipient’s home. According to filed documents, from December 2006 to about October 2010, Cook participated in a scheme to defraud Medicaid by submitting false and fraudulent claims to Medicaid seeking reimbursement for patient care services that were either not provided, not authorized by a physician, or were not based upon a valid in-home eligibility assessment performed by a qualified registered nurse, as required by Medicaid policy.
Court records indicate that during the relevant time period, Cook and her co-conspirators, which included PCS aides and Medicaid recipients, participated in a “fee-splitting” scheme. The scheme involved billing Medicaid for patient care services that were not rendered and then splitting the fraudulently obtained Medicaid reimbursements among the co-conspirators. As a result of the fee-splitting scheme, Cook received over $150,000 as payment to the fraudulent claims.
In addition to the fee-splitting scheme, court documents reveal that Cook also submitted fraudulent claims to Medicaid for patient care services allegedly provided to Medicaid recipients, even though the services were not approved by a physician. Cook copied, altered and falsified physician signatures on forms in order to justify the fraudulent billing. In some instances, Cook altered the forms approving PCS for a Medicaid recipient, despite a physician’s clear denial of such services. Similarly, Cook and her co-conspirators submitted fraudulent claims for PCS based upon false and fraudulent nurse assessments, by forging nurses’ signatures on PCS assessment forms.
At the sentencing hearing, U.S. District Judge Richard L. Vorhees also ordered Cook to pay $325,820.17 in restitution. Cook has been released on bond since entering her guilty plea. She will be ordered to report to a federal facility, at which time she will be transferred into the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
Monday’s sentencing of Cook marks the conclusion of a multi-year investigation into Cook and her conspirators. In addition to Cook, 15 other individuals have been convicted in federal and state court in related charges. On April 8, 2013, Crystal Deleon Evans, 34, of Sparta, was sentenced to probation for one count of health care fraud conspiracy. Fourteen other individuals have pleaded guilty in the Allegheny County District Court to misdemeanor charges of conspiracy to commit Medicaid fraud. Those individuals, listed below, all were sentenced to probationary terms.
• Jessica Beth Absher-Shelton, 33, of Anderson, S.C. • Patricia Atkins, 62, of Low Gap, N.C. • Billie Jo Bingman, 34, of Sparta. • Crystal Brewster, 34, of Sparta. • Lisa Marie Cook, 35, of Sparta. • Rena Mahan, 32, of Sparta. • Desiree Payne, 22, of Sparta. • Dwana Sanchez, 36, of Sparta. • Tammy Williams, 43, of Laurel Springs, N.C. • Jessica Cook, 27, of Sparta. • Dietra Michelle Bottomley, 38, of Ennice, N.C. • Tammy Atkins, 43, of Mount Airy, N.C. • Amy Lyall, 39, of Sparta. • Deborah Aroche, 49, of Sparta.
The investigation into Cook and Evans was handled by MID, HHS-OIG and IRS-CI, assisted by the North Carolina Division of Medical Assistance and the Alleghany County Sherriff’s Office. The prosecution was handled by Special Assistant United States Attorney Laura Lansford and Assistant U.S. Attorney Kelli Ferry of the Western District of North Carolina.
Ms. Lansford is an Assistant Attorney General with the North Carolina Department of Justice Medicaid Investigations Division and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in 2007. The SAUSA position is reflection of the partnership between the Medicaid Investigations Division and the United States Attorney that helps ensure the effective and vigorous prosecution of Medicaid fraud.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Leader of Cocaine and Methamphetamine Trafficking Ring Sentenced to 10 Years in PrisonRead the Press Release
Five Others Have Been Sentenced In Connection With The Investigation
STATESVILLE, N.C. – Norberto Rivera Aguilar, 26, of Mexico, was sentenced on Monday, May 6, 2013, to serve 10 years in prison to be followed by four years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Brock D. Nicholson, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); and Sheriff William R. Oliver, of the Yadkin County Sheriff’s Office, join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and court proceedings, from in or about 2010 to in or about August 2011, Aguilar and five others were involved in a drug trafficking conspiracy that distributed cocaine and methamphetamine in Iredell County and elsewhere in North Carolina. Court records show that the drugs were smuggled in the U.S. from a Mexican supply source.
Five additional defendants previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine and have been sentenced in connection with this case.
• Caritino Mujica-Vargas, 38, of Mexico, was sentenced in February 2013 to 10 years in prison and four years of supervised release. Mujica-Vargas had also pleaded guilty to a firearm violation.
• Francisco Javier Teodoro-Campuzano, 22, of Mexico, was sentenced in February 2013 to 43 months in prison and two years of supervised release.
• Marco Antonio Sosa-Caderilla, 26, of Mexico, was sentenced in December 2012 to 24 months in prison and one year of supervised release.
• Carolina Olivia Hernandez, 20, of Mexico, was sentenced in February 2013 to a time-served sentence of approximately 18 months in prison and two years of supervised release.
• Oscar Leal Martinez, 47, of Yadkinville, N.C. was charged in a separate indictment and pleaded guilty in February 2012 to one count of conspiracy to distribute and to possess with intent to distribute cocaine. He was sentenced in February 2013 to 60 months in prison and four years of supervised release.
According to filed court documents and court proceedings, Aguilar led the organization in the Statesville area, and Mujica-Vargas was the primary source of supply out of Winston-Salem. Law enforcement conducted a dozen purchases of narcotics totaling more than two kilograms of cocaine and approximately three ounces of methamphetamine from the organization. On the date of the arrests in August 2011, law enforcement searched Mujica-Vargas’ residence and seized a press for forming kilogram blocks of cocaine, a digital scale, $5,000 in U.S. currency, two handguns and a rifle. Mujica-Vargas kept one of the handguns in a flower pot in the living room near the entry to his home.
All defendants are currently in federal custody. They will be transferred to the custody of the Federal Bureau of Prisons upon designation of federal facilities. Federal sentences are served without the possibility of parole.
The case was investigated by HSI in Charlotte and Winston-Salem, NC SBI and the Yadkinville County Sheriff’s Office, assisted by the Davie County Sheriff’s Office, the Winston-Salem Police Department, and the Forsyth County Sheriff’s Office. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Las Vegas Mortgage Agent Sentenced to 15 Months in Prison for Role in Mortgage Fraud SchemeRead the Press Release
A Las Vegas mortgage agent was sentenced late yesterday to serve 15 months in prison for her participation in a mortgage fraud scheme that netted more than $1.2 million in fraudulent mortgage loans, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Acting Special Agent in Charge William C. Woerner of the FBI’s Las Vegas Field Office announced today.
Heidi Haischer, 44, was sentenced by U.S. District Judge Miranda M. Du in the District of Nevada. In addition to her prison term, Haischer was sentenced to serve three years of supervised release.
In November 2012, after a four-day trial, a federal jury in Las Vegas found Haischer guilty of one count of wire fraud and one count of conspiracy to commit wire fraud for submitting fraudulent loan documents to purchase two homes.
According to court documents and evidence presented at trial, Haischer participated in a mortgage fraud scheme while employed as a mortgage broker in Nevada. From December 2006 to January 2007, Haischer and her co-conspirators fraudulently secured loans totaling over $1 million to obtain properties with the intent to flip and sell them for profit. Evidence at trial showed that Haischer and her co-conspirators subsequently enriched themselves by collecting brokerage commissions generated by the sales of the properties.
The court documents and trial evidence demonstrated that Haischer submitted multiple loan applications in which she overstated her income, submitted false verification of employment and misrepresented her intent to reside in one of the properties as her primary residence. Additionally, Haischer presented inflated bank account balances supported by forged bank statements to make it appear that she had assets she did not have, in order to help qualify for mortgage loans for which she otherwise would not have been eligible.
Co-conspirator Kelly Nunes was convicted in a related case in Las Vegas on Feb. 2, 2012, of one count of bank fraud and one count of conspiracy to commit wire and bank fraud. On July 11, 2012, Nunes was sentenced to 51 months in prison.
This case was investigated by the FBI. Trial Attorneys Thomas B.W. Hall and Brian R. Young of the Criminal Division’s Fraud Section prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Nevada.
This case was a result of efforts 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.
Laguna Pueblo Man Sentenced to Forty-Six Months in Federal Prison for Being a Habitual Domestic Violence Offender - Perea was Prosecuted as Part of a Federal Initiative to Address the Epidemic Incidence of Violence Against Native WomenRead the Press Release
ALBUQUERQUE – Timothy Luke Perea, 41, a member and resident of Laguna Pueblo, was sentenced to 46 months in federal prison followed by two years of supervised release. Perea’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Police Chief Michelle F. Ray of the Pueblo of Laguna Police Department.
Perea was arrested in Oct. 2012 on an indictment charging him with domestic assault by a habitual offender. He has been in federal custody since that time. On Jan. 4, 2013, Perea pled guilty to the indictment and admitted assaulting his wife, also a member of Laguna Pueblo, on March 6, 2011.Perea was prosecuted federally for the March 6, 2011 assault because he had two prior domestic violence convictions. Court records reflect that Perea was convicted of assault resulting in serious bodily injury on Aug. 29, 1997, in federal court in New Mexico. Perea also was convicted of aggravated battery against a household member on Oct. 20, 1997, in the Second Judicial District Court for the State of New Mexico.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Police Department, and was prosecuted by Special Assistant U.S. Attorney David M. Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Internet Installer Sentenced for Hijacking Customer’s Internet to Perpetrate Identity Theft Tax SchemeRead the Press Release
Corey Thompson was sentenced today to serve 30 months in prison for his involvement in a sophisticated stolen identity refund fraud conspiracy, the Justice Department and the Internal Revenue Service (IRS) announced. In July 2012, Thompson pleaded guilty to one count of conspiracy to file false claims and to one count of aggravated identity theft.
According to court documents, in January 2012, Corey Thompson and his co-conspirators filed at least 27 fraudulent 2011 tax returns that requested a total of $91,304 in refunds. Thompson and his co-conspirators obtained the means of identification from a prison guard and from an employee at a debt collection agency.
Court documents also state that in 2011 and 2012, Thompson worked as an independent contractor for a cable company. As an independent contractor, Thompson installed cable and internet access. To perpetrate the conspiracy, Thompson hijacked the internet service of customers for whom he had performed work. From his home, Thompson used his laptop and his specialized knowledge and equipment to essentially shut down the customer’s internet and then take over that customer’s internet. Thompson would then file false tax returns using the hijacked internet which made it appear as if the false tax returns were being filed by the customer. Thompson directed the tax refunds to be placed on pre-paid debit cards. The pre-paid debit cards were intercepted by the U.S. Postal Service.
The case was investigated by Special Agents of the IRS - Criminal Investigation and Postal Inspectors of the U.S. Postal Service. Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler of the Justice Department's Tax Division and Assistant U.S. Attorney Jared Morris prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Internet Installer Sentenced for Hijacking Customer’s Internet to Perpetrate Identity Theft Tax SchemeRead the Press Release
WASHINGTON – Corey Thompson was sentenced today to serve 30 months in prison for his involvement in a sophisticated stolen identity refund fraud conspiracy, the Justice Department and the Internal Revenue Service (IRS) announced. In July 2012, Thompson pleaded guilty to one count of conspiracy to file false claims and to one count of aggravated identity theft.
According to court documents, in January 2012, Thompson and his co-conspirators filed at least 27 fraudulent 2011 tax returns that requested a total of $91,304 in refunds. Thompson and his co-conspirators obtained the means of identification from a prison guard and from an employee at a debt collection agency.
Court documents also state that in 2011 and 2012, Thompson worked as an independent contractor for a cable company. As an independent contractor, Thompson installed cable and internet access. To perpetrate the conspiracy, Thompson hijacked the internet service of customers for whom he had performed work. From his home, Thompson used his laptop and his specialized knowledge and equipment to essentially shut down the customer’s internet and then take over that customer's internet. Thompson would then file false tax returns using the hijacked internet which made it appear as if the false tax returns were being filed by the customer. Thompson directed the tax refunds to be placed on pre-paid debit cards. The pre-paid debit cards were intercepted by the U.S. Postal Service.
The case was investigated by Special Agents of the IRS - Criminal Investigation and Postal Inspectors of the U.S. Postal Service. Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler of the Justice Department's Tax Division and Assistant U.S. Attorney Jared Morris prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 7, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
TONY JAMES BELCOURT, age 41, HAILEY LEE BELCOURT, age 35, JOHN CHANCE HOULE, age 47, residents of Box Elder, and MARK T. LEISCHNER, age 46, and TAMMY KAY LEISCHNER, age 42, residents of Laurel, each appeared on charges of:
Count I: Conspiracy to Defraud the United States
Penalty: Five years imprisonment, $250,000 fine, and three years of supervised release)
Counts II-VI: Scheme to Defraud the United States and the Chippewa Cree Tribe/ Wire Fraud
Penalty: 20 years imprisonment, $250,000 fine, and three years of supervised release)
Count VII: Theft of Federal Monies
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Count VIII: Theft from an Indian Tribal Government Receiving Federal Funding
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Count IX: RECEIPT OF STOLEN MONEY IN INTERSTATE COMMERCE
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Counts X-XVII: Money Laundering
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
The defendants pled not guilty to the charges and are currently released on special conditions.
Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States.
The investigation was a cooperative effort between the U.S. Department of Interior - Office of Inspector General, the Criminal Investigation Division of the Internal Revenue Service, and the Federal Bureau of Investigation.
It would be inappropriate to comment on the facts of this case at this stage of the proceedings. The judicial system will sort out the truth of the allegations and all defendants enjoy a presumption of innocence. However, today's indictment is the product of diligent work by the very dedicated agents of the Guardians Project. As the work of this team of skilled and highly trained professionals from the Offices of Inspector General and the Federal Bureau of Investigation goes forward, the people of Montana can expect more cases - from every part of the state - outlined in lengthy, multi-defendant indictments alleging public corruption and embezzlement of federal funds. Their investigations address chronic and systemic financial assaults on federal grants and contracts. This office is committed to their mission." United States Attorney for the District of Montana, Michael W. Cotter.
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 Great Falls, on May 6, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
TONY RAY MANYGUNS, a 36 year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury and domestic assault by a habitual offender. He is currently detained. If convicted of these charges, MANYGUNS faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
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 Billings, on May 6, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
ZACHARY LEE BLASEG, a 36-year-old resident of Livingston, appeared on a charge of receipt of child pornography. He is currently detained. If convicted of this charge, BLASEG faces possible penalties of 20 years in prison, a $250,000 fine, and lifetime supervision. Special Assistant U.S. Attorney Ole Olson is the prosecutor for the United States. The investigation was conducted by the Montana Division of Criminal Investigation.
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.
Health Care Clinic Director Pleads Guilty in Miami for Role in $63 Million Fraud SchemeRead the Press Release
A former health care clinic director and licensed clinical psychologist pleaded guilty today in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Alina Feas, 53, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one substantive count of health care fraud.
During the course of the conspiracy, Feas was employed as a therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness. HCSN operated two community mental health centers in Florida and one community mental health center in North Carolina.
In her capacity as clinical director, Feas oversaw the entire clinical program and supervised therapists and other personnel at HCSN in Florida (HCSN-FL). Feas also conducted group therapy sessions when therapists were absent.
According to court documents, Feas was aware that HCSN-FL paid illegal kickbacks to owners and operators of assisted living facilities (ALF) in Miami-Dade County in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Feas knew that many of the ALF referral patients were ineligible for PHP services because they suffered from either mental retardation, dementia or Alzheimer's disease, which are not effectively treated by PHP services.
Court documents reveal that Feas submitted claims to Medicare for individual therapy she purportedly provided to HCSN-FL patients using her personal Medicare provider number, knowing that HCSN-FL was simultaneously billing the same patients for PHP services. Feas continued to bill Medicare under her personal provider number while HCSN in North Carolina (HCSN-NC) simultaneously submitted false and fraudulent PHP claims.
Feas was aware that HCSN-FL personnel were fabricating patient medical records, according to court documents. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. During her employment at HCSN-FL, Feas signed fabricated PHP therapy notes and other medical records used to support false claims to government sponsored health care programs.
At HCSN-NC, Feas was aware that her co-conspirators were fabricating medical records to support the fraudulent claims she was causing to be submitted to Medicare. Feas was aware that a majority of the fabricated notes were created at the HCSN-FL facility for patients admitted to HCSN-NC. In some instances, Feas signed therapy notes and other medical records even though she never provided services at HCSN-NC.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 13 defendants have pleaded guilty. On April 25, 2013, Wondera Eason was convicted, following a five-day jury trial, on one count of conspiracy to commit health care fraud for her role in the scheme at HCSN. Alleged co-conspirator Lisset Palmero is scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
This case was prosecuted by Trial Attorney Allan J. Medina and former Special Trial Attorney William J. Parente. This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Tucson Loan Officer Sentenced to Prison for Mortgage FraudRead the Press Release
TUCSON, Ariz. – On May 6, 2013, Rex Adams, 54, of Tucson, Ariz., was sentenced by U.S. District Judge David C. Bury to 18 months in federal prison for committing wire fraud and transactional money laundering, both felonies. Adams had previously pleaded guilty on Jan. 7, 2013, to these charges which relate to mortgage fraud.
As part of his guilty plea, Adams admitted that he obtained a $268,000 loan to purchase a property in Tucson. In order to obtain this loan and as part of the loan approval process, Adams knowingly submitted loan applications and other documents that contained material false representations including: (1) falsely representing his intent to reside at the property as a primary residence; (2) submitting a fraudulent lease agreement stating that he had a tenant for his current home and would receive monthly rental income of $3,500; (3) falsely representing that the down payment or cash to close on the property would be a $66,473.56 check; (4) falsely representing and inflating the purchase price of the property as $335,000; and (5) failing to disclose to the lender that he received $12,349.05 cash back from the seller of the property using the fraudulently obtained loan proceeds. In fact, without the lender’s knowledge, Adams fraudulently obtained the mortgage at an inflated price with 100% financing, with no down payment and received $12,349.05 cash back from the seller.
As part of the defendant’s plea, he will also be ordered to pay restitution. The amount of restitution will be determined during a future hearing or by agreement of the parties.
The investigation in this case was conducted by Internal Revenue Service Criminal Investigation. The prosecution was handled by Jonathan Granoff, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-12-0397-TUC-DCB
RELEASE NUMBER: 2013-037_AdamsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former Sandwich, Illinois Business Owner Charged with FraudRead the Press Release
ROCKFORD — A former business owner in Sandwich, Ill. was indicted by a federal grand jury in Rockford today on fraud and false statement charges. STEVEN J. MOORHOUSE, 60, who was President and majority owner of Jefsco Manufacturing Co., Inc., a manufacturing business known as Fanplastic Molding Company, was charged with four counts of bank fraud and two counts of making a false statement to a financial institution.
According to the indictment, during July 2009, Moorhouse sought a new lender to make business loans to Jefsco and began to provide Jefsco financial information to Old Second National Bank in Aurora, Ill. It is alleged that Moorhouse falsely overstated the value of the accounts receivable owed to Jefsco by hundreds of thousands of dollars, including a balance due to Jefsco of $624,000, influencing Old Second National Bank to make a loan to Jefsco. On Dec. 2, 2009, Jefsco signed two promissory notes and related loan documents to receive two loans totaling $1,350,000. As a condition for making the loans, the bank required Jefsco to pledge its accounts receivable as collateral to the bank for the loans and required that all payments made to Jefsco for accounts receivable were to have been deposited into a Jefsco account at Old Second National Bank. The indictment alleges that during late 2009 and early 2010 Moorhouse deposited Jefsco accounts receivable payments into an account at another financial institution, thereby defrauding the bank and depriving it of its collateral.
Moorhouse is scheduled to appear at the Federal Courthouse in Rockford on Thursday, May 9, 2013, at 11:00 a.m., for arraignment. The arraignment will be conducted by United States Magistrate Judge P. Michael Mahoney.
Each count of bank fraud and each count of making a false statement to a financial institution carries a penalty of up to 30 years in prison, a fine of up to $1 million, and a term of supervised release of up to five years following imprisonment. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution.
The indictment was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Christy Romero, Special Inspector General for the Troubled Asset Relief Program; and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation was conducted jointly by the Office of the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Indictment
Former Rapid City Surgeon Sentenced for Tax EvasionRead the Press Release
United States Attorney Brendan V. Johnson announced that Edward J.S. Picardi, age 56, a former Rapid City surgeon who resides in Sturgis, South Dakota was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court, on May 7, 2013.
Picardi was previously convicted of 13 separate counts, including five counts of tax evasion for years 1999 through 2003; five counts of making false statements on each of his tax returns for years 2004 through 2008; and three counts of failing to file required reports with the United States Treasury Department in 2007 through 2009 disclosing his interest in foreign accounts.
Picardi received the statutory maximum sentence of 60 months in custody for Counts 1-5 of tax evasion; 36 months for Counts 6-10 of making false statements; and 60 months for Counts 11-13 of failing to file required reports. The sentences will run concurrently for a total of 60 months in custody. He also received 1 year of supervised release and was ordered to pay a $1,300 special assessment fee.
“Dr. Picardi’s attempt to hide his assets wasn’t tax planning, it was criminal activity. This prosecution serves notice that individuals who seek to cheat their fellow American taxpayers will be fully investigated, prosecuted and subjected to the full punishment of the law for their actions,” said U.S. Attorney Johnson.
On October 5, 2012 following a multi-week trial, Picardi was convicted by a federal jury after hearing evidence that he sent his earnings through a complicated offshore network. His earnings passed through a web of entities organized under the laws of Ireland, Hungary, Cyprus, Isle of Man, Jersey, and Guernsey. The money was ultimately deposited into various foreign accounts that Picardi controlled through a New Zealand trust, in the name of a corporation set up for him in Nevis, a Caribbean island. Through these offshore transactions, Picardi attempted to hide his income and evade over $1 million in taxes.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Kevin Koliner.
Picardi is to report to the U.S. Marshal on May 14, 2013 to begin serving his sentence.
Former Medical Doctor Pleads Guilty in Washington, D.C. to Engaging in Illicit Sexual Conduct with Minors in KenyaRead the Press Release
A former medical doctor pleaded guilty today in Washington, D.C., to engaging in illicit sexual conduct in Kenya, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Columbia Ronald C. Machen Jr. and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
John D. Ott, 67, pleaded guilty before U.S. District Judge Reggie B. Walton in the District of Columbia to one count of engaging in illicit sexual conduct in a foreign place. Ott was charged in an information filed on March 21, 2012.
According to filed court documents and proceedings, Ott was a former medical doctor who worked for non-governmental organizations and hospitals in Kenya. Court records show that Ott also started an orphanage in Kenya. Ott admitted that between approximately January 2004 and September 2012, he engaged in illicit sexual conduct in Muhuru Bay, Sori and Kendu Bay, Kenya, with at least 14 minors, who ranged in age from approximately nine to 17 years old when the illicit sexual conduct began. Ott admitted that he frequently paid for schooling and provided other financial support, including housing, for minors with whom he engaged in illicit conduct.
Ott has been in federal custody since he was arrested in December 2012, following his deportation from Tanzania. Engaging in illicit sexual conduct in a foreign place carries a maximum penalty of 30 years in prison and a $250,000 fine. Ott’s sentencing has been scheduled for July 26, 2013.
The case is being prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ari Redbord of the District of Columbia. The investigation was conducted by the FBI’s Washington Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and 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.
Former Medical Doctor Pleads Guilty to Engaging in Illicit Sexual Conduct with Minors in KenyaRead the Press Release
WASHINGTON – A former medical doctor pled guilty today in Washington, D.C., to engaging in illicit sexual conduct in Kenya, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr., and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
John D. Ott, 67, pled guilty before the Honorable Reggie B. Walton in the U.S. District Court for the District of Columbia to one count of engaging in illicit sexual conduct in a foreign place. Ott was charged in an information filed on March 21, 2012.
According to filed court documents and proceedings, Ott was a former medical doctor who worked for non-governmental organizations and hospitals in Kenya. Court records show that Ott also started an orphanage in Kenya. Ott admitted that between approximately January 2004 and September 2012, he engaged in illicit sexual conduct in Muhuru Bay, Sori and Kendu Bay, Kenya, with at least 14 minors, who ranged in age from approximately nine to 17 years old when the illicit sexual conduct began. Ott admitted that he frequently paid for schooling and provided other financial support, including housing, for minors with whom he engaged in illicit conduct.
Ott has been in federal custody since he was arrested in December 2012, following his deportation from Tanzania. Engaging in illicit sexual conduct in a foreign place carries a maximum penalty of 30 years in prison and a $250,000 fine. Ott’s sentencing has been scheduled for July 26, 2013.
The case is being prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Ari Redbord of the District of Columbia. The investigation was conducted by the FBI’s Washington Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and 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.
13-160Former Massachusetts RMV Employee Pleads Guilty to Producing False Information DocumentsRead the Press Release
BOSTON – A former employee of the Massachusetts Registry of Motor Vehicles was convicted today of conspiracy to produce false identification documents.
Alexander Brewer, 24, of Boston, pleaded guilty before U.S. District Judge Mark L. Wolf to conspiracy to produce false information documents. Sentencing is scheduled for Sept. 18, 2013. Brewer faces up to five years in prison, followed by three years of supervised release and a $250,000 fine.
From December 2011 through December 2012, Brewer issued Massachusetts driver’s licenses to individuals who presented legitimate Puerto Rican identity documents, in an identity other than their own, to obtain driver’s licenses for the purpose of concealing their true identities.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Griffin Store Front Owner Convicted of Food Stamp FraudRead the Press Release
Dix Defrauded the USDA of Over $400,000
ATLANTA - Herbert Dix pleaded guilty today in federal district court to defrauding the U.S. Department of Agriculture and possessing forged Women, Infant and Children (WIC) vouchers.
“Many people rely on government assistance to feed their families and children,” said United States Attorney Sally Quillian Yates. “This conviction demonstrates our commitment to prosecute those who defraud the USDA of funds meant for the neediest families.”Karen Citizen-Wilcox, Special Agent-in-Charge of the USDA-OIG said, “The USDA-OIG takes fraud in its nutritional programs very seriously and will work with the Department of Justice and other federal and state law enforcement entities to vigorously investigate and prosecute individuals who defraud USDA programs. In these economic times, the need for nutritional assistance has increased. Taxpayers expect their tax dollars to be used effectively and only within the confines of the rules and regulations of nutritional assistance programs. Trafficking in benefits by purchasing those benefits for cash is illegal. The OIG is committed to maintaining integrity in the USDA programs and continuing its investigations into these illegal activities.”
“We applaud the difficult work of our law enforcement partners,” said Brenda Fitzgerald, M.D., commissioner of the Georgia Department of Public Health. “Along with DPH’s team of inspectors, law enforcement and the courts have worked tirelessly to identify, investigate, prosecute and eliminate elements of fraud from the state’s WIC program, saving Georgia taxpayers tens of millions of dollars.”
According to United States Attorney Yates, the charges and other information presented in court: Dix owned and operated a store front grocery in Griffin named Spank’s Quick Stop. The store was authorized by the State of Georgia to redeem Women, Infant and Children (WIC) vouchers for specified food items, such as infant formula, milk, and cheese. The Georgia Department of Public Health issues WIC vouchers to low income - at risk families which they can use to purchase specified food items from authorized grocers. Contrary to federal law and state regulations, Dix and his employees paid cash for the WIC vouchers instead of accepting them as payment for the food items listed on the vouchers.
On 18 separate occasions, an undercover law enforcement officer entered Spank’s Quick Stop where Dix and his employees redeemed blank WIC vouchers for cash. Dix then filled in an amount on the vouchers significantly greater than what he paid for the vouchers and deposited the vouchers into his bank account. In December 2010, federal, state and local law enforcement officers executed a search warrant at Spank’s and seized over 100 forged blank WIC vouchers. An analysis of Dix’s bank records revealed that between 2010 and 2011 Dix defrauded the USDA of in excess of $400,000.
Dix, 49, of Riverdale, Ga., was indicted in July 2012, on 18 counts of WIC fraud and 83 counts of possession of forged securities. He pleaded guilty to the entire indictment. On Counts One through Eighteen on each count, he could receive a maximum sentence of five years in prison and a fine of up to $25,000. On Counts Nineteen through One Hundred-One, on each count he could receive a maximum sentence of ten years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for July 17, 2013 at 10:00 a.m., before United States District Judge Timothy C. Batten, Sr.
This case is being investigated by Special Agents of the United States Department of Agriculture, Office of Inspector General, Georgia Department of Public Health, Office of Inspector General, and the Griffin Police Department.
Assistant United States Attorney David Leta is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Federal Jury in Midland Convicts Stanton Man of Enticement ChargeRead the Press Release
In Midland this afternoon, Charles Martinez, an aspiring rapper also known as “Ereez,” faces a minimum of ten years and up to life in federal prison after a jury convicted him of bringing a minor female to Texas to engage in sexual activity announced United States Attorney Robert Pitman.
Jurors convicted the 28–year-old Stanton, TX, resident of one count of using the internet to persuade, induce, or entice a juvenile to engage in sexual activity and one count of transporting a juvenile across state lines to engage in sexual activity. Evidence at trial revealed that Defendant was an aspiring musician with a YouTube channel where he posted videos of his music. In April 2012, the then 15-year-old girl, who lived in Green Bay, Wisconsin, messaged Martinez on his Facebook fan page. After a series of communications via Facebook, email and phone, Martinez traveled to Wisconsin to meet the victim in April and May 2012. They had sexual relations there. In June 2012, Martinez transported the victim to Stanton.
Martinez, who remains in custody, is scheduled to be sentenced at 2:45pm on July 25, 2013, before United States District Judge Robert A. Junell.
This investigation was conducted by agents with Homeland Security Investigations (HSI) and the Green Bay Police Department. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Federal Inmate Sentenced for Assaulting Prison WardenRead the Press Release
ATLANTA – Jeree E. Grey was sentenced today to serve more than seven additional years in federal prison following his conviction by a jury for assaulting the warden of the United States Penitentiary in Atlanta.
“Even an isolated act of violence against an employee inside a federal prison places the safety of all prison staff and inmates at risk,” said United States Attorney Sally Quillian Yates. “In this case, the warden was carrying out his duty to maintain safety, security, and good order at the penitentiary when, without provocation, Inmate Grey attacked him.”“The federal inmate in this matter will be held accountable for his violent actions,” said Mark F. Giuliano, Special Agent in Charge of the FBI’s Atlanta Field Office. “The FBI remains ready to provide its investigative resources and other assets as needed in assisting the U.S. Bureau of Prisons and their staff in maintaining law and order within U.S. Penitentiary-Atlanta.”
According to United States Attorney Yates, the charge and other information presented during Grey’s trial, on the morning of March 26, 2012, Grey, 33, of Birmingham, Alabama, was walking in a line with other inmates headed to their morning work call in the United States Penitentiary in Atlanta. Without warning, Grey stepped from the line and struck the warden multiple times, injuring the warden’s face and neck. At the time of the assault, Grey was serving a ten-year prison sentence for possession with intent to distribute more than five kilograms of cocaine.
Grey was sentenced before United States District Court Judge Thomas W. Thrash, Jr. to serve an additional seven years, three months in prison to be followed by three years of supervised release.
This case was investigated by Special Agents of the Federal Bureau of Investigation.Assistant United States Attorney Brent Alan Gray prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Lashaun Deon Williams, 35, of Mobile, was sentenced today to 15 years in federal prison. Williams pled guilty to two charges, conspiracy to possess with intent to distribute crack cocaine and using, carrying and possessing a firearm in furtherance of and in connection with a drug trafficking felony, in January of 2013 before United States District Court Judge Callie V. S. Granade. At the sentencing hearing conducted today, the case prosecutor asked the judge to impose a sentence of 211 months, which was the low end of the advisory guidelines. Judge Granade, however, imposed only a 15-year sentence, which amounted to the statutory minimum sentence available. The drug charge carried a minimum mandatory sentence of 10 years, and the gun count carried a minimum mandatory consecutive sentence of 5 years. The judge found that the total sentence of 15 years met the statutory purposes of sentencing in federal court.
Judge Granade also ordered that Williams serve a five-year term of supervised release, to follow his prison sentence, and that he pay the special mandatory assessment of $200. She also ordered that William undergo drug testing and treatment as a condition of his imprisonment and supervision.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Gloria Bedwell in the United States Attorney’s Office in Mobile.
District Man Sentenced to Seven Years in Prison in Break-In of Elderly Woman’s Home-Defendant Punched Victim, Knocking Her Unconscious-Read the Press Release
WASHINGTON - Tyran Mcelrath, 18, of Washington, D.C., was sentenced today to seven years in prison on charges stemming from an attack he carried out against an elderly woman during a burglary last fall of the victim’s home in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Mcelrath pled guilty in February 2013 in the Superior Court of the District of Columbia to one count of first-degree burglary and one count of aggravated assault. He was sentenced by the Honorable Patricia A. Broderick. Following completion of his prison term, Mcelrath will be placed on five years of supervised release.
According to the government’s evidence, Mcelrath left his home on the morning of Nov. 7, 2012, and traveled to the 3500 block of McKinley Street NW, where the victim, an 81-year-old woman, resided. Mcelrath, who did not know the victim, went to the house intending to steal property, and broke into the home through a basement window. At the time, the victim was on the second floor of the house, listening to music.
Mcelrath took some tools from the basement and made his way up to the main floor of the house, where he rifled through cabinets and took change from the victim’s change purse. Mcelrath carried an Apple computer outside and hid it in bushes located at the base of the front porch steps. The victim then came downstairs to put on her shoes and discovered a stranger, later identified as Mcelrath, in the foyer.
She walked toward the front door and politely asked Mcelrath to leave. Mcelrath punched her repeatedly in the face with closed fists until she lost consciousness. Mcelrath then fled before police were called.
A civilian witness, who came upon the victim sometime after the assault, called police. Police found the victim disoriented and suffering from multiple bruises and broken teeth as a result of the beating. She was hospitalized for several days for severe facial contusions and head injuries and was traumatized by the attack. She was no longer able to live alone in the home. Her overall health declined in the ensuing months, and she recently died.
Police were able to identify Mcelrath as the perpetrator when they searched GPS records, which showed Mcelrath inside the victim’s home between 11:41 a.m. and 12:21 p.m., when the crimes occurred. Police used that same GPS information to locate Mcelrath in Southeast Washington the following day, and found that he matched the limited description that the victim was able to provide, and was wearing a mask that was the same as the one the victim had described. Police subsequently obtained surveillance video from Metro that showed Mcelrath as he traveled to and from the crime scene.
In announcing the sentence, U.S. Attorney Machen praised the work of the Metropolitan Police Department officers and detectives who investigated the case. He also commended the efforts of Victim Witness Program Specialist Jennifer Clark, for her work with the victim in this case, and Assistant U.S. Attorneys Ann Carroll and Jonathan Kravis, who investigated and indicted the case.
13-158Department of Justice Reaches Settlement to Resolve Complaints of Religious Harassment at Charter School in DeKalb County, GeorgiaRead the Press Release
The Justice Department reached a settlement agreement today with DeKalb County, Ga., school district to resolve the department’s investigation into allegations of religious and national origin harassment of a Sikh middle school student. Counsel for the Sikh Coalition filed the complaint with the department, alleging that the student had been repeatedly targeted with verbal and physical harassment because of his Sikh faith. The department has authority to investigate and resolve complaints of religious and national origin harassment through its enforcement of Title IV of the Civil Rights Act of 1964.
Following an inquiry into the student-specific complaints, the department notified the district of its concerns that the district had failed to respond promptly and appropriately to the Sikh Coalition’s allegations of harassment, including allegations that the student was called “Aladdin” because he wore a turban and was told by a fellow student to “go back to his country.” The department also raised concerns that the district had not investigated witness statements that the student had been called a “terrorist” and that there was a history of fellow students targeting him because of his turban. The department also found that the disciplinary measures the district did take had not been effective in ending the harassment, and that the student feared continued harassment.
The district worked cooperatively with the department to resolve the complaint and ensure greater protections for the student. The settlement agreement, which will be in effect until the end of the 2014-2015 school year, requires the district to: work with a consultant to develop and implement anti-harassment training at the student’s middle and high school; immediately implement a safety plan to ensure that the student is safe at school and, should incidents of harassment occur, that the district responds quickly and effectively; and meet with the student, his family, and administrators from his middle school and the high school where he will enroll, to identify key school personnel who can support the student should any future incidents of harassment occur. The department has opened a separate and ongoing inquiry into whether the district’s anti-harassment policies meet federal standards, whether its policies are consistently implemented, and whether employees are adequately trained to implement those policies.
“Students of all faiths must be protected from harassment and other forms of discrimination,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “We commend the district for stepping forward and putting student safety first. We are encouraged by the district’s resolve to support and provide anti-harassment training on issues facing students from the Sikh, Muslim, Arab-American and South Asian communities.”
“Every student should be able to attend school without fear of being harassed and bullied because of his skin color or religious beliefs,” said United States Attorney Sally Quillian Yates. “I am encouraged by DeKalb County’s willingness to take immediate steps to ensure that students attending DeKalb County schools are free of this type of harassment and bullying.”
The enforcement of Title IV is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt .
Related Materials:
DeKalb Settlement Agreement
Delaware Felon Will Spend 25 Years in Prison for Illegally Possessing Heroin, Loaded GunRead the Press Release
PITTSBURGH, Pa. - A resident of Wilmington, Del., was sentenced in federal court for violating federal narcotics trafficking and firearm laws, United States Attorney David J. Hickton announced today.
Keenan Black, 32, was sentenced to serve 25 years in prison followed by six years of supervised release by United States District Judge Arthur J. Schwab. Black was convicted at the conclusion of a non-jury trial on Oct. 29, 2012, of possessing heroin with intent to distribute, of possessing a firearm in furtherance of a drug trafficking crime, and of being a convicted felon in possession of a firearm.
The testimony at trial established that on Jan. 6, 2011, Pittsburgh Police narcotics detectives caught Black when he had a loaded pistol in a holster on his hip and 749 stamp bags of heroin in the sleeve of his jacket. Black had previously been convicted of committing four felony crimes in four prior cases in Delaware.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Police Department, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the convictions and sentence in this case.
Deland Man Sentenced to More Than 12 Years on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - Chief U.S. District Judge Anne C. Conway today sentenced Orlando Ismael Muniz (58, Deland) to 12 years and 7 months in federal prison for the receipt of child pornography. As part of this sentence, he was ordered to serve a 20-year term of supervised release following his release from prison. The court also ordered Muniz to forfeit his computer equipment and register as a sex offender. Muniz pleaded guilty on April 27, 2012.According to court documents, Muniz downloaded and collected thousands of images of child pornography using a peer-to-peer shared directory on his computer. Law enforcement officers conducted a forensic examination of Muniz’s computer and found 17,847 images and 149 movies depicting the sexual exploitation and abuse of prepubescent children.
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Volusia County Sheriff's Office. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
It is another case 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 (CEOS), 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Deirdre M. Daly to Become Acting U.S. AttorneyRead the Press Release
New Haven, Conn. – Deirdre M. Daly will become Acting United States Attorney for the District of Connecticut when U.S. Attorney David B. Fein leaves the office on May 13, 2013.
Ms. Daly has served as First Assistant United States Attorney in Connecticut since July 2010. She led the prosecution of Hector Natal, who was found guilty last month after a four-week trial of committing the March 2011 New Haven arson that resulted in the deaths of two women and an 8-year-old boy.
“During her 15 years of Department of Justice service and another 13 years engaged in the private practice of law, Deirdre Daly has demonstrated great leadership, integrity and judgment,” stated U.S. Attorney Fein. “I’m proud to have served with her as a colleague, and the citizens of Connecticut are fortunate that Deirdre will lead this excellent United States Attorney’s Office.”
From 1985 to 1997, Ms. Daly was an Assistant United States Attorney in the Southern District of New York, where she prosecuted cases ranging from racketeering, murder, narcotics and money laundering to fraud, corruption and police brutality, and served as the Assistant-In-Charge of White Plains Office for three years. After leaving the SDNY, Ms. Daly was a partner at Daly & Pavlis LLC, a Connecticut law firm with a practice focused on corporate and commercial litigation, white-collar criminal investigations, SEC enforcement actions and corporate internal investigations and monitoring. For over 10 years, she served as a monitor for Con Edison, Inc. conducting internal investigations of environmental, health and safety violations.
Ms. Daly served as a law clerk for the Honorable Lloyd F. MacMahon, U.S. District Judge for the Southern District of New York from 1984 to 1985. She is a graduate of Dartmouth College and Georgetown University Law Center.
Ms. Daly, 53, has lived in Connecticut for most of her life. She and her husband, Alfred Pavlis, have three sons.
The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The Office employs approximately 64 Assistant United States Attorneys, 45 staff members and 13 contractors at offices in New Haven, Hartford and Bridgeport.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Criminal Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 34-year-old Mexican national was indicted for entering the United States illegally after being deported as a criminal. Eduardo Asuncion Gallardo-Gutierrez was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on April 10, 2013, Gallardo-Gutierrez, also known as Carlos Meza, was found in the U.S. after having been deported to Mexico in 2004, following a 1998 Iowa conviction for burglary in the third degree. On April 10, 2013, ICE-Homeland Security Investigation officers encountered Gallardo-Gutierrez while they were executing search warrants in Rochester on another matter.
If convicted of the federal charges now levied against him, Gallardo-Gutierrez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge.This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Consultant for the Florida Department of Transportation Sentenced for Accepting A BribeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce today’s sentencing of defendant Ron Capobianco, Jr., 40, of Pompano Beach, FL, on charges of bribery in connection with programs receiving federal funds, in violation of Title 18, United States Code, Section 666. U.S. District Judge Robert N. Scola, Jr. sentenced Capobianco to twelve months plus one day in prison.
According to documents previously filed with the court, Capobianco, Jr. worked as a construction engineering and inspection consultant at Metric Engineering, Inc. (Metric), which specialized in the transportation industry. The Florida Department of Transportation (FDOT) contracted with Metric to provide services, including designing, inspecting, and troubleshooting the construction of roads, signs, and traffic signals. Capobianco, Jr. was assigned as the FDOT District 4 Signalization and Lighting Liaison. In this capacity, he acted as FDOT’s project manager for various signalization and lighting projects. Capobianco, Jr. had a team of employees that assisted him in supervising and inspecting contractors performing FDOT work. Because of his position and expertise, Capobianco, Jr. was consulted as an FDOT expert on certain aspects of signalization and lighting construction, including the use of video detection cameras for traffic signalization and control.
According to the documents previously filed with the court, around 2009, FDOT began a road construction project along Highway 1 in the Florida Keys (the Marathon Key project), which was designed to improve traffic flow. Capobianco Jr. agreed to accept a bribe from a subcontractor working on this project. Around May 2009, an agent of the subcontractor offered to pay a bribe to Capobianco, Jr., if the subcontractor could receive at least $25,000 for the installation of the video detection equipment.
Capobianco, Jr. agreed to the subcontractor’s $25,000 estimate for the installation of the video detection devices, thus enabling the subcontractor to make a significant profit. The subcontractor’s estimate was approved and subsequently paid by the State of Florida after the installation of the video detection equipment. Thereafter, Capobianco, Jr. met with an agent of the subcontractor in Plantation, Florida and was paid $4,000 in cash for his assistance to the subcontractor on the Marathon Key project.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Colonial Heights Man Pleads Guilty to Receipt of Child Pornography and Enticement of A ChildRead the Press Release
RICHMOND, Va. – Robert Kropp, 26, of Colonial Heights, Virginia, pleaded guilty today to one count of using a means or facility of interstate commerce to coerce or entice a minor to engage in sexual activity, and one count of receipt of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and JeffreyC. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Kropp was faces a mandatory minimum sentence of ten years, up to life imprisonment, when he is sentenced on August 2, 2013.In a statement of facts filed with his plea agreement, Kropp admitted that in March 2013, he began communicating with a woman who had advertised herself on the internet as a 19 year old prostitute. Kropp asked the woman if she knew of anyone younger with whom he could engage in sexual activity. The woman’s account was later taken over by law enforcement, who continued to communicate with Kropp while posing as the female. During these conversations, Kropp indicated a desire to meet with an individual that he believed to be the prostitute’s 13 year old cousin to engage in sexual activity. Kropp then began communicating via text message with the purported 13 year old year, including sending sexually suggestive messages and images to the minor. On March 7, 2013, Kropp arrived at a hotel in Richmond where he believed he would be meeting the 13 year old to engage in sexual activity. Kropp was subsequently arrested, and in an interview with law enforcement, admitted to downloading and viewing child pornography as well.
This case was investigated by the Federal Bureau of Investigation with assistance from the Henrico County Police Department. Assistant United States Attorney Jamie Mickelson is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Clean Nurse Charged with Distribution and Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Willie G. Reid, 46, of Olean, N.Y., was arrested and charged by criminal complaint with distribution and possession of child pornography. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a fine of $250,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that the defendant is a Registered Nurse at Olean General Hospital. As a nurse, Reid’s duties included working in the Pediatric Unit. According to the complaint, between February 9, 2012 and February 8, 2013, the defendant downloaded videos and images of child pornography using a peer-to-peer file sharing program. Some of the videos and images included pre-pubescent children and depictions of violence.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Reid is being detained pending a detention hearing on May 8, 2013 at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The arrest is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Special Agent in Charge and the Cattaraugus County Sheriff’s Department, under the direction of Sheriff Timothy Whitcomb.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Citrus County Woman Sentenced to More Than 2 Years in Federal Prison for Making False Statements to Federal AgentsRead the Press Release
Tampa, FL - U.S. District Judge Elizabeth A. Kovachevich sentenced Jaclyn Fleites (33, Crystal River) yesterday to 27 months in federal prison for making false statements to a federal agent. Fleites pleaded guilty on November 8, 2012. According to court documents, Fleites lied to a federal agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in connection with an investigation into multiple armed robberies committed by Anthony Calderon and Abelardo Coimbre. The five robberies were committed in Citrus County in January and February 2011. Fleites was the girlfriend of Calderon during that time. She told the agent that she had never seen Calderon enter a store to commit a robbery and had never seen Calderon with a firearm, even though she knew that these statements were false.
On January 28, 2011, Fleites was the getaway driver for the armed robbery of Inverness Liquor, which was committed by Coimbre. On February 18, 2011, she acted as the getaway driver for the armed robbery of Inverness Food Mart, which was committed by Calderon. Her misstatements obstructed the investigation and prosecution of the armed robberies committed by Calderon and Coimbre.
Anthony Calderon and Abelardo Coimbre previously pleaded guilty and were sentenced for their roles in this case. Calderon was sentenced to 32 years in federal prison. Coimbre was sentenced to 24 years and four months in federal prison.
This case was investigated by ATF and the Citrus County Sheriff's Office. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Citizen of Mexico Who Illegally Reentered U.S. After Deportation Is SentencedRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that ROMAN PONCE, 36, a citizen of Mexico last residing in Norwich, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 10 months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, PONCE was deported from the U.S. to his native Mexico in 1999 after sustaining domestic assault, assault and disorderly conduct convictions in Rhode Island. PONCE illegally reentered the U.S. and, in 2001, was convicted in the U.S. District Court in Rhode Island of illegal reentry. He was sentenced to six months of imprisonment and deported to Mexico in 2002.
On September 30, 2012, PONCE was arrested by the Norwich Police Department for disorderly conduct.
PONCE has been detained in federal custody since February 6, 2013. On April 16, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
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[email protected]Canadian Trucker Sentenced to 12 Years in Prison for Drug ConspiracyRead the Press Release
A Canadian truck driver who was identified as a drug smuggler for a criminal group related to the Hells Angels was sentenced today in U.S. District Court to 12 years in prison for conspiracy to distribute marijuana, announced U.S. Attorney Jenny A. Durkan. JAMES POSTLETHWAITE, 60, of North Vancouver, BC, Canada was convicted following a three day trial in November 2012. POSTELTHWAITE was a transporter in a criminal organization that was smuggling marijuana south into the U.S. and cocaine north into Canada. At sentencing U.S. District Judge John C. Coughenour said POSTLETHWAITE “understood the size and scope of the conspiracy,” and was responsible for smuggling vast quantities of marijuana into the United States, as well as smuggling cocaine into Canada. “Cocaine has had a devastating impact on the streets of Vancouver,” and defendant’s actions contributed directly to that problem, Judge Coughenour said.
The investigation into this international drug trafficking ring began in May 2010. Using court authorized wire taps, investigators with DEA and Homeland Security Investigations (HSI) determined the drug ring was transporting and distributing 1,000 to 2,000 pounds of marijuana and 100 to 200 kilos of cocaine every month. The marijuana was smuggled into the U.S. from Canada and distributed across the country to California, Illinois, Missouri, Georgia and New Jersey, among other locations. Proceeds from the marijuana distribution were used to purchase cocaine in Southern California. The cocaine was transported to British Columbia for distribution.
After identifying the Seattle area warehouse that served as the hub for the marijuana distribution, investigators were able to identify POSTLETHWAITE’s semi-truck that delivered to the warehouse. After search warrants were served on the warehouse in April 2011, agents learned more about a hidden compartment in POSTLETHWAITE’s semi that allowed him to transport as many as 95 loads of drugs across the border. Each load was hundreds of pounds of BC Bud – the hidden compartment could hold more than 600 pounds. POSTLETHWAITE was indicted for his role in the conspiracy and was arrested March 9, 2012 as he tried to drive a different truck into the U.S. from Canada at the Eastport, Idaho, Port of Entry. The truck with the hidden compartment was later located trying to enter the U.S. with a different driver. The hidden compartment had a very elaborate access system using a separate battery to access a void in the floor of the trailer. Testimony in the trial revealed that the marijuana belonged to the Hells Angels organization in BC, Canada.
POSTLETHWAITE has been in custody in the U.S. since March 2012. Two dozen people in the U.S. and Canada have been charged in the case. Seven have already been sentenced to lengthy prison terms.
Other defendants already sentenced in the case include: Jacob Saul Stuart, the U.S. based leader of the ring, was sentenced last year to 15 years in prison; Michael Murphy, a pilot who transported drugs, 12 years in prison; Jacob Burdick, who stored and organized transportation of the drugs, 12 years in prison; John Washington, a drug distributor for the group, 11 years in prison; Glen Stewart, 52, a Custer, Washington based drug courier, 12 years in prison; Mario Joseph Fenianos, a Canadian who obtained and smuggled cocaine for the ring, 13 years in prison, and Michael William Dubois, another Canadian working on the cocaine side of the smuggling was sentenced to ten years in prison.Over the course of the investigation, law enforcement seized more than $2 million and 136 kilograms of cocaine. On April 28, 2011, the day search warrants were executed, law enforcement seized more than 1,000 kilograms of marijuana from locations across the country.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by DEA Offices – Seattle, Chicago, Las Vegas, Fresno, Los Angeles and New Jersey; ICE’s Homeland Security Investigations - Seattle and Sacramento; Customs and Border Protection – Office of Air & Marine; King County Sheriff’s Department; Seattle Police Department; Washington State Patrol; Snohomish Regional Drug Task Force; and the Bureau of Narcotics Enforcement (California).
The case is being prosecuted by Assistant United States Attorneys Jeffrey Backhus and Vince Lombardi.
Behavioral Analyst Charged with Health Care FraudRead the Press Release
Jenny Lynn Hall, formerly known as Jenny Lynn Unterstein, 37, of Smithville, Tenn., was charged with health care fraud in a one-count criminal information filed today in U.S. District Court, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Hall was a licensed and board-certified behavioral analyst with a Ph.D. in applied behavioral analysis and provided services to individuals with mental, behavioral or developmental disabilities. According to the information, Hall created false documents and forged signatures in 2009 and 2010 to obtain payment for behavioral analysis services that she never provided. As a result of this fraud, TennCare, the Tennessee Medicaid program, was billed for more than 115 behavioral analysis sessions that never occurred.
“Rooting out and prosecuting health care fraud is and will continue to be a major priority of the U.S. Attorney’s Office,” said Acting United States Attorney David Rivera. “Often, healthcare fraud is accomplished at the expense of vulnerable patients who are denied the services they deserve. Health care providers who engage in fraudulent activity, especially those serving vulnerable populations, will be held accountable.”
If convicted, Hall faces a maximum penalty of 5 years in prison and a $250,000 fine, as well as forfeiture of proceeds derived from the fraud.
This investigation is being conducted by agents of the Department of Health and Human Services Office of Inspector General and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney William F. Abely.An information is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Army Member Stationed at MacDill Sentenced to 15 Years for Production of Child PornographyRead the Press Release
Tampa, FL - U.S. District Judge Virginia M. Hernandez-Covington sentenced Thomas Meyer (42, Riverview) today to 15 years in federal prison for production of child pornography. As part of his sentence, he was ordered to serve a life term of supervised release following his release from prison. The court also ordered Meyer to forfeit his computer equipment, pay $300 in restitution to the victim, and register as a sex offender. Meyer pleaded guilty on February 7, 2013.
According to court documents, Meyer is a member of the United States Army and was stationed at MacDill Air Force Base. Between October 2011 and January 2012, Meyer used Yahoo! Messenger to have sexually explicit online chats with a female minor in Pennsylvania and another individual he thought was a 13 year old female, but who was actually an undercover detective in Kentucky. At Meyer's request, the minor female from Pennsylvania sent three pornographic photographs to Meyer's Yahoo! account. Meyer sent the undercover detective images of child and adult pornography, as well as an explicit web video of himself. He attempted to persuade the undercover detective to send him sexually explicit pictures of herself.
This case was investigated by the Federal Bureau of Investigation, the MacDill Air Force Base Office of Special Investigations (OSI), the Largo Police Department, the Kenton County (Kentucky) Police Department, the Pennsylvania State Police, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case 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 (CEOS), 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Monday 6 May 2013
Worcester Man Pleads Guilty to Solicitation to Kidnap A ChildDungeon Discussed in Online Chats Discovered in Defendant’s BasementRead the Press Release
Boston - Geoffrey Portway, 40, a citizen of the United Kingdom and most recently of Worcester, Mass., pleaded guilty today to solicitation to commit a crime of violence (kidnaping of a child) and distribution and possession of child pornography.
According to the agreed upon statement of facts, Portway engaged in numerous chats with many individuals about a mutual interest in abducting, raping, murdering, and eating children. Many of these conversations were accompanied by the trading of child pornography. These chats also included images of children known to them, accompanied by discussions of the desire to sexually abuse, murder and cannibalize those children.As stated both in court filings and at the hearing today, through his online chats, Portway solicited several people for their help in abducting a child, predominately from Michael Arnett of Kansas. At least as early as 2010, Portway utilized Skype and other programs to communicate with Arnett, trading child pornography including images of injured, mutilated and deceased children while chatting about the sexual abuse, rape, abduction, murder, and cannibalism of children. Over months, Portway repeatedly solicited Arnett to kidnap a child for him, with the intent that Portway would ultimately rape, kill and eat that child. These solicitations for help abducting a child included discussing real children, by name and photo, that Arnett claimed to know and have access. In the chats, Portway and Arnett discuss different ways to kidnap children and the age range that Portway prefers. During the time that Portway was soliciting Arnett, Portway had been told that Arnett had helped others with such requests before and that Arnett had experience with the abduction and sexual abuse of children. Arnett has since pleaded guilty in Kansas to the sexual exploitation of a child for the purposes of producing child pornography.
On July 27, 2012, federal agents along with state and local police, executed a federal search warrant at Portway’s residence in Worcester. Various computers and digital devices containing Portway’s child pornography collection were seized, in addition to the computer he used to trade child photography and attempt to plan the abduction of a child.
During the execution of the search warrant, agents also discovered a locked door in the basement of the residence. Inside the door was a sally port that led to a second door (with a keyed lock). Inside the second door was a dungeon, which was lined with acoustical sound-deadening material and contained a chair, television, and what appeared to be cable access to the Internet. The room also contained a child-sized homemade coffin (with large speakers covered in wire mesh at one end) with exterior locking devices, a steel cage (approximately 3' wide, 2' high and 4' long) with multiple locking devices, and a steel table top (with steel rings at six points, presumably for restraints). Outside these rooms were a cabinet freezer, an upright freezer, disposable scalpels, butchering kits, and castration tools. This dungeon was described in detail by Portway in recovered chats as a place he intended to use to keep kidnaped children while he sexually abused them and as a place to eventually murder and cannibalize the children.
A forensic examination of the computers uncovered evidence of over 4,500 trades of child pornography between Portway and others. Many of these trades involved Portway distributing child pornography to others based on their stated specific preferences, including images and videos appearing to depict dead children and the cannibalism of children.
“Clearly, the facts of this case were quite disturbing and we are grateful law enforcement acted when they did,” said United States Attorney Carmen M. Ortiz. “I hope that this case sends a clear message that we will prosecute to the fullest extent of the law those who participate in these types of activities. Even though criminals attempt to hide in the anonymity provided by the Internet, the Department of Justice is committed to aggressively pursuing them to ensure that there is no place to hide.”
“An investigation that began in Milford in 2010 — expanded to Europe and beyond — has returned back to where it originally started: the Commonwealth of Massachusetts," said Bruce M. Foucart, special agent in charge of HSI Boston. “Since we began this operation — Operation Holitna — a worldwide network of offenders has been, and continues to be, unraveled, including Portway. Thanks to the determination of HSI, along with our partners at the U.S. attorney’s office, we have been able to rescue 160 children and arrest 51 perpetrators worldwide — all as a result of the arrest of a Milford man, and subsequent advanced forensics of his digital media. Portway’s guilty plea should serve as a stern warning to those inclined to abuse children or share images of child pornography: there isn’t a place in the United States, on the Internet, or the planet in which you are truly safe. We will investigate you, we will prosecute you and we will bring you to justice.”
Under the terms of the plea agreement, the Court must sentence Portway to between 216 and 327 months in prison, a lifetime supervised release, restitution and forfeiture. He will also be required to register as a Level 3 sex offender. Additionally, Portway is to be deported after serving his sentence.US Attorney Ortiz; SAC Foucart; Worcester County District Attorney Joseph Early; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; and Chief Gary J. Gemme of the Worcester Police Department made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.
If you have any information related to this investigation please call 617-748-3274.
Today's guilty plea is part of Operation Holitna, an ongoing HSI-led investigation that originated in Boston. In 2010, the U.S. Attorney's Office for the District of Massachusetts and HSI Boston arrested Robert Diduca on child pornography production charges. He was convicted and subsequently sentenced in June 2012. Forensic analysis of Diduca’s computer led investigators to the Netherlands where a Dutch national was arrested and charged with production, distribution and possession of child pornography, as well as the sexual assault of 87 minors. Since that time, a worldwide network of offenders has been, and continues to be, unraveled, including today's defendant. Defendants and victims continue to be identified around the world. To date, more than 160 children have been rescued and 51 perpetrators arrested worldwide - including Portway - as a result of Operation Holitna.
Woman Pleads Guilty to Wire Fraud Conspiracy Involving Stolen Identities and Consumer Credit ReportsRead the Press Release
CHARLOTTE, N.C. – A former Charlotte resident pleaded guilty today before U.S. Magistrate Judge David S. Cayer for her role in a scheme involving stolen personally identifiable information (PII) and fraudulently-obtained consumer credit reports, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS).
Nakia Monica Brown, 34, formerly of Charlotte, pleaded guilty to one count of wire fraud conspiracy and one count of aggravated identity theft. Brown’s co-conspirators, Tiffany Sherise Young, 30, of Charlotte and Trina Monique Young, 39, of Bronx, N.Y. have also agreed to plead guilty to one count of wire fraud conspiracy for their involvement in the scheme. Their plea hearings are scheduled for May 9th and May 10th, respectively, before Judge Cayer.
According to filed court documents and court proceedings, from 2009 through 2010, Brown and her co-conspirators used an unlawfully-acquired list of over 1,400 identity theft victims that contained stolen PII, including the victims’ names, social security numbers, and dates of birth. Court records show that the co-conspirators used the victim’s PII to obtain free consumer credit reports from credit reporting agencies and, in turn, used the consumer credit report information to manufacture fake identification documents and to purchase over $400,000 in merchandise from eleven (11) national retail chains.
According to the criminal bill indictment and plea documents, Brown defeated the credit reporting agencies’ online security systems and gained access to the victims’ consumer credit reports, including the victims’ credit scores, their existing credit card accounts, their available lines of credit and other biographical information, such as their residential addresses. In this manner, Brown fraudulently acquired a combined total of 370 credit reports from the three credit reporting agencies, according to plea documents.
Court documents indicate that Brown then used the identity theft victims’ information to manufacture counterfeit New York driver’s licenses. The counterfeit driver’s licenses contained the names, dates of birth and addresses of the identity theft victims, along with photographs and physical descriptions of Brown and her co-conspirators. Using the counterfeit New York driver’s licenses, Brown and her co-conspirators fraudulently purchased merchandise at national retail merchant stores based on the identity theft victims’ available credit or based on same-day, instant credit offered by the retail stores to new customers. Court records indicate that the fraudulently-purchased merchandise was then sold to pawnbrokers, “fences” and other end users. According to the plea agreement, the financial loss exceeds $400,000.
Brown and her co-conspirators have been released on bond since April 2012. They each face a maximum prison term of 20 years and a $250,000 for the wire fraud conspiracy charge. Brown faces a consecutive mandatory prison term of two years and a $250,000 fine for the aggravated identity theft charge. Sentencing dates for the defendants have not been set yet.
The investigation was handled by the USPIS, with assistance from the Charlotte-Mecklenburg Police Department. The prosecution was handled by Assistant U.S. Attorney Tom O’Malley of the U.S. Attorney’s Office in Charlotte.
If you believe that your personal information was compromised, there are numerous resources available online that can help you understand what steps to take to protect yourself against identify theft. This includes:
• A detailed list of resources from 11 different federal agencies, available at: http://idtheft.gov/takeaction.html • A guide from the Federal Trade Commission on what to do if your personal information has been compromised, but not yet misused: http://www.consumer.ftc.gov/features/feature-0014-identity-theft • Information on the different types of identity theft and additional resources available at: http://www.consumer.ftc.gov/features/feature-0014-identity-theftWanblee Man Sentenced on Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a Wanblee man convicted of Assault Resulting in Serious Bodily Injury was sentenced on May 6, 2013, by U.S. District Judge Roberto A. Lange. Jeffrey M. Chips, a/k/a Jeffrey M. Chipps, age 23, was sentenced to 36 months of imprisonment, 2 years of supervised release, and a $100 special assessment.
Chipps was indicted by a federal grand jury in October 2012. He pled guilty to Count II of the Indictment on February 12, 2013. The conviction stems from an incident on May 4, 2012, when Chipps was riding in a car in Mission, South Dakota, and came upon two women walking along the road. The car came to a stop, and two occupants of the vehicle exited and confronted the victim. A fight ensued, and Chipps then exited the vehicle and joined in the assault. Chipps struck the victim and fractured her jaw, among other injuries.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Troy Morley prosecuted the case.
Chipps was immediately turned over to the custody of the U.S. Marshal.
Violent Mistreatment of Illegal Aliens Results in 10 Year Sentences for DefendantsRead the Press Release
PHOENIX – On May 1, 2013, and April 15, 2013, defendants Juan Jose Parra-Labrador, 24, Sergio Sarabia-Sarabia, 25, and Uriel Parra-Lerma, 25, were sentenced by U.S. District Judge James A. Teilborgto 10 years in prison for their roles in holding 21 illegal aliens hostage in January 2012, after pleading guilty to conspiracy to harbor illegal aliens. Judge Teilborg also sentenced co-defendant Felipe Sarabia-Labrador, 43, to 9 years and 1 month in prison. All of the defendants were in the United States illegally from Mexico.
Three of the defendants were sentenced to the statutory maximum of 10 years. Defendants admitted that during the course of the conspiracy, the illegal aliens at the human stash house were abused. One victim was hung in a closet by his wrists and ankles, others were beaten in the face and groin, whipped and bound with cable cords, poked with knives, threatened with guns, and forced to urinate in a bucket.
Judge Teilborg stated that these defendants “dehumanized their victims” and attempted to profit from “trafficking in human misery.”
U.S. Attorney John S. Leonardo said, “Our office will vigorously prosecute those who prey upon vulnerable victims in our community. These prison sentences should make clear that we will not tolerate violence and exploitation by human smuggling organizations.”
Additionally, Aaron Aparicio-Ramirez, 30, was sentenced by Judge Teilborg to 18 months for his role in transporting illegal aliens to and from the stash house.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security. The prosecution was handled by Assistant U.S. Attorneys, Kristen Brook and Lisa Jennis Settel of District of Arizona, Phoenix.
CASE NUMBER: CR-12-00417-PHX-JAT
RELEASE NUMBER: 2013-036_Parra-Labrador_etalFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/