Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 1 May 2013
Stolen Credit Cards Numbers Lands Houston Man in Federal PrisonRead the Press Release
HOUSTON – Ninh Nguyen, 58, of Houston, has been ordered to prison following his conviction of access device fraud, United States Attorney Kenneth Magidson announced today. Nguyen pleaded guilty Oct. 4, 2012, admitting he possessed 15 or more credit card account numbers that had been stolen or obtained with intent to defraud.
Today, U.S. District Judge Gray H. Miller, who accepted the guilty plea, handed Nguyen a 48-month sentence followed by three years of supervised release. At the hearing today, additional evidence was presented proving that Nguyen continued to engage in access device fraud in Arizona while released on bond.
Nguyen was arrested March 30, 2012, at the Wal-Mart on Tomball Parkway by the Harris County Sheriff’s Department for shoplifting 32 Wal-Mart gift cards. Court records indicated he was detained and subsequently found to be in possession of more than 250 credit, debit and other gift cards. Many of the cards were in Nguyen’s name, but some were in his wife’s name and in the names of others.
All of the cards were analyzed and 27 were found to have magnetic strips encoded with numbers and accountholder information that did not match the number or name on the front of the card. The true accountholders for the 27 re-encoded cards were contacted and all stated that they had not given Nguyen permission to possess their card numbers or to re-encode them onto credit, debit or gift cards.
Although originally released on bond following his arrest in 2012, Nguyen was taken into federal custody on March 1, 2013, for violating his conditions of release.
The matter was investigated by the United States Secret Service and the Harris County Sheriff’s Department and is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Steven William Carpenter, Suzette Gulyas Gal, Andras Zoltan Gal, and Kristian Zoltan George Gal Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 1, 2013, in Great Falls, at a federal district court trial before U.S. District Judge Sam E. Haddon, the following individuals were charged with the following counts:
Count I: Conspiracy to Commit Fraud
Count II: Investment Fraud and Wire Fraud
Count III: Investment Fraud and Wire Fraud
After a 7-day jury trial, STEVEN WILLIAM CARPENTER, age 56, SUZETTE GULYAS GAL, age 55, and ANDRAS ZOLTAN GAL, age 22, residents of California, were found guilty of Counts 1, 2, and 3.
KRISTIAN ZOLTAN GEORGE GAL, age 29, a resident of California, was found guilty of Count I.
Sentencing is set for August 19, 2013. They are currently detained.
At trial, the following evidence and testimony was presented to the jury.
The above-named defendants worked together to solicit funds from the elderly, the infirm, and the gullible by persuading these individuals to invest in fraudulent and fictitious oil and gas investment opportunities on the Fort Peck Indian Reservation.
While the defendants initially obtained legitimate oil and gas leases on the Fort Peck Indian Reservation, those rights were terminated on October 5, 2007, for failure to make the required lease payments. Moreover, the defendants never made any legitimate payment to establish or further an oil or gas venture on the Fort Peck Indian Reservation.
Despite all of the above, the defendants bilked investors into paying well in excess of half a million dollars in a non-existent venture. The case involved over fifty victims, most of whom struggled to make ends meet even before losing money to the fraud. All while the victims suffered, the defendants enjoyed a life of luxury, took extravagant vacations, and basked in the fruits of their fraud.
Today's jury verdict, convicting Steven Carpenter, Suzette Gal, Andras Gal and Kristian Gal, together with the earlier guilty plea of the ring-leader, Mike Campa, represents a significant blow to the loose organization of professional telemarketers who prey every day on the country's elderly, desperate, and gullible. Too many of the operations go undetected and unhindered. The only way to stem the tide is for these predators to know --- without question --- that when they are caught the consequences will be significant. The United States Attorney's Office will continue every effort and enlist every resource to identify and prosecute those who enrich themselves by defrauding others. This investigation, which involved hundreds of man hours of undercover operations, surveillance, forensic document examination, and witness interviews, was a near perfect cooperative effort between the FBI and the Department of Interior's Office of Inspector General. Rarely do we see such seamless and effective coordination of agency efforts. I want to commend the excellent work done by our trial lawyers, AUSAs Carl Rostad and Ryan Weldon who tried the case on behalf of the United States, and investigators who conducted an extraordinary investigation."
Assistant U.S. Attorneys Carl E. Rostad and Ryan G. Weldon prosecuted the case for the United States.
They face possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release for the conspiracy to commit fraud charge, and 20 years in prison, a $250,000 fine and 3 years supervised release for each of the wire fraud and mail fraud charges.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the U.S. Department of Interior - Office of Inspector General.
Springfield Man Sentenced for Social Security Benefits FraudRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Springfield for defrauding the Social Security Administration (SSA).
Charles Allen, 55, was sentenced by U.S. District Judge Michael A. Ponsor to two years of probation including four months of home detention, and restitution of $97,012 to be paid to the SSA. In December 2012, Allen pleaded guilty to fraudulent concealment to secure unauthorized Social Security payments and false statement of a material fact for use in determining rights to Social Security payments.From approximately June 1, 2003 through August 31, 2010, Allen received approximately $89,000 in fraudulently obtained Social Security Title II disability benefits. Allen was not entitled to receive these benefits because he was also working as the manager of a restaurant during that time period, which was information that he intentionally concealed from the SSA in order to continue receiving these benefits. In particular, on June 21, 2010, Allen stated falsely on a SSA form that he had not worked since January 29, 1999. That same day, agents of the SSA’s Office of Inspector General interviewed Allen, who initially claimed he was not working but then admitted that he was in fact working.
United States Attorney Carmen M. Ortiz, Scott Antolik, Special Agent In Charge of the Office of Inspector General, Social Security Administration, Office of Investigations – Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Springfield Firm Sentenced for Importing Thousands of Products with Counterfeit Safety Labels, must Forfeit Lamps worth $1.8 MillionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., company was sentenced in federal court today for importing thousands of lamps from its manufacturer in China bearing counterfeit safety certification labels.
GuildMaster, Inc., represented in court by company president Stephen Crowder, was sentenced by U.S. District Judge Gary A. Fenner.
GuildMaster is a manufacturer and importer of furniture, lighting, accessories and wall art. On July 15, 2013, the company pleaded guilty to the felony offense of trafficking in goods with counterfeit marks.
GuildMaster must forfeit to the government 5,585 lamps that were seized by U.S. Customs and Border Protection, valued at approximately $1,831,918, and serve a five-year term of probation. U. S. Customs and Border Protection will not impose penalties, but will apply the full amount of the $43,786 in cost bonds previously posted by GuildMaster to defray the government’s expenses in storing the lamps.
In December 2011, U.S. Customs and Border Protection discovered that lamps imported by GuildMaster bore counterfeit Underwriters Laboratories (UL) labels. UL is an independent product safety certification organization accredited for safety testing by the Occupational Safety and Health Administration (OSHA). For lamps meeting UL safety requirements, manufacturers are authorized to affix labels bearing the words “Portable Luminaire” and featuring the UL mark. The use of this “Portable Luminaire” label with the UL mark is the manufacturer’s representation and advertisement to the public that the lamp as a whole was certified by UL as meeting UL’s safety requirements.
Federal agents began to intercept and seize shipments of GuildMaster lamps bearing counterfeit UL labels. Between Jan. 10 and March 21, 2012 agents seized 10 shipments originating from Dongguan, China, bound for GuildMaster in Springfield. They also executed a search and seizure warrant at GuildMaster’s business office and warehouse in Springfield. The 11 seizures contained an approximate total of 5,018 lamps bearing the counterfeit “Portable Luminaire” labels with UL marks. Also, in three seizures a total of approximately 567 lamps were seized that were affixed with genuine but unauthorized “Portable Luminaire” labels bearing the UL Mark, which had been provided by UL to another company for its exclusive use and were not authorized for GuildMaster’s use.
GuildMaster was founded in Springfield in 1982. GuildMaster, which was formerly a client of UL, stopped producing its own lamps in 2005. At that time GuildMaster relocated its warehouse and closed its production facility in Springfield. Since 2005, GuildMaster has purchased lamps manufactured in China and imported them into the United States under the GuildMaster label.
GuildMaster established a Hong Kong-based trading company, Westway Enterprises Pvt. Limited, as a wholly-owned subsidiary in 2001. In May 2011, MeiHao Times Trading Co. Ltd. (located in Shenzhen, China) was established as a wholly-owned subsidiary of Westway to broker sales with Dongguan factories. This was required by Chinese law before GuildMaster could establish a mainland Chinese factory as a subsidiary.
Dongguan Yangming Hardware Crafts Limited was a manufacturer of lamps located in Dongguan City, Guangdong, China. In April 2009 GuildMaster (through Westway) began paying rent on the Dongguan factory. On Nov. 22, 2010 GuildMaster (through Westway) signed a formal three-year lease for the factory. On Oct. 11, 2011 GuildMaster (through Westway and MeiHao Times Trading Co.) purchased Dongguan Yangming Hardware Crafts Limited, including its name and export license, and operated a factory entity at that location.
GuildMaster maintains that none of its agents or employees had personal knowledge that they violated U. S. laws by importing the lamps. However, GuildMaster acknowledges that the knowledge and actions of Westway employees and agents are attributed to GuildMaster because Westway was GuildMaster’s wholly-owned subsidiary. GuildMaster also acknowledges that the knowledge and actions of Dongguan employees and agents are attributed to GuildMaster because Dongguan was a wholly-owned subsidiary of MeiHao Times Trading Co. Ltd., which was a wholly-owned subsidiary of Westway.
UL certification was an important issue in the importation of electrical appliances into the United States, and Westway tracked whether each of the vendors from which it purchased lamps and components was UL certified. As of December 2009, Westway personnel knew the Dongguan factory was not UL-certified.
Before the federal seizures, GuildMaster did not inspect lamps coming from China to ascertain the authenticity of the “Portable Luminaire” certification marks placed upon the lamps. GuildMaster acknowledges that had it inspected the lamps it would have seen counterfeit and unauthorized UL marks.
This case was prosecuted by Assistant U.S. Attorneys Steven M. Mohlhenrich and Cynthia J. Hyde. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Springfield Felon Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to the sexual exploitation of a minor.
Ezra Robert Gramm, 39, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Oct. 3, 2012 federal indictment.
By pleading guilty today, Gramm admitted that he made contact with the 13-year-old victim, identified as “Jane Doe,” via an Internet chat room in late 2009. Gramm and the child victim engaged in online chat sessions and exchanged text messages with one another. During the course of this interaction, Gramm asked Jane Doe to take sexually explicit photographs of herself and transmit the photographs to him. Jane Doe complied with his request.
Gramm’s cell phone was seized by law enforcement officers and found to contain multiple images of Jane Doe engaged in sexually explicit conduct. Jane Doe was interviewed and acknowledged taking the digital images of herself and transmitting them to Gramm at his request.
Under federal statutes, Gramm is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. 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. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Spiro Baltatzidis, Former Founder and Chief Executive Officer of Starwich, Inc., Sentenced in Manhattan Federal Court to Six Months in Prison for Wire FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SPIRO BALTATZIDIS, the former Founder and Chief Executive Officer of Starwich, Inc. (“Starwich”), was sentenced today to six months in prison for wire fraud. BALTATZIDIS pled guilty in January 2013 before United States District Judge Ronnie Abrams, who also imposed today’s sentence.
According to the Information and statements made at the plea proceeding:
Starwich was a privately held corporation headquartered in New York that engaged in the food services business, and more specifically, the upscale specialty sandwich business. Starwich operated a micro-chain of restaurants located around Manhattan and maintained multiple corporate bank accounts (collectively, the “Starwich Bank Accounts”) at Citibank, N.A. (“Citibank”) into which investor funds were deposited.
From the summer of 2007 through May 2008, BALTATZIDIS solicited a $25 million investment from a financial institution (the “Victim Financial Institution”). BALTATZIDIS represented that the purpose of the investment was to expand the business operations of Starwich. In connection with the investment solicitation, the Victim Financial Institution conducted due diligence to determine whether Starwich was a prudent investment opportunity. This due diligence included, among other things, a review of Starwich’s financials. Accordingly, at the Victim Financial Institution’s request, on September 16, 2007, it received a fax from Starwich containing Citibank statements for one of the Starwich Bank Accounts. The first statement purported to cover the period December 1, 2006 through December 31, 2006, and reflected an ending balance of approximately $450,000. Another statement for the same account purported to cover the period June 1, 2007 through June 30, 2007, reflected an ending balance of approximately $1.2 million – an increase in the ending balance of well over 100% in the six-month period between December 2006 and June 2007.
Based in part on the June 2007 statement, the Victim Financial Institution entered into a Memorandum of Terms (“the Memorandum”) with Starwich in November 2007. The Memorandum detailed the principal terms of a proposed $25 million investment in shares of Starwich to be divided into three stages of disbursements. However, the bank statements provided to the Victim Financial Institution were fraudulent. The actual bank account records from Citibank showed a balance of approximately $400 as of December 31, 2006, and approximately $200 as of June 30, 2007.
In furtherance of its due diligence, the Victim Financial Institution requested a further update of Starwich’s financials and in response to this request, BALTATZIDIS forwarded an email chain between BALTATZIDIS and an employee of Citibank (the “Bank Employee”) on November 15, 2007. The content of the email chain forwarded to the Victim Financial Institution (the “Victim Financial Institution Email”) reflected that BALTATZIDIS asked the Bank Employee for the balance of one of the Starwich accounts for the period ending September 30, 2007, and the Bank Employee purportedly responded that the account’s current balance was approximately $1.3 million.
In fact, the email chain forwarded by BALTATZIDIS to the Victim Financial Institution on November 15, 2007, was materially altered from its original version (the “Authentic Citibank Email”). Specifically, in the Authentic Citibank Email, the Bank Employee wrote that the account’s current balance was “-$3,963.93,” whereas the Victim Financial Institution Email reflected a balance of “$1,317,963.93.” In addition, the Authentic Citibank Email included a copy of the account statement for the period ending September 30, 2007, whereas the Victim Financial Institution Email omitted the account statement.
From November 15, 2007 through May 2008, BALTATZIDIS and the Victim Financial Institution continued their discussions regarding the solicited financial investment in Starwich. By May 2008, however, the Victim Financial Institution decided against investing with Starwich and ended its discussions with BALTATZIDIS. In August 2008, Starwich filed for bankruptcy.
In addition to his prison term, BALTATZIDIS, 38, was also sentenced to 30 months of supervised release, six months of which are to be served on home confinement.
Mr. Bharara praised the investigative work of the United States Postal Inspection Service.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Julian J. Moore is in charge of the prosecution.
Six Veterans Plead Guilty to Fraudulently Obtaining over $500,000 in Veterans BenefitsRead the Press Release
Baltimore, Maryland - Kenneth Williams, age 64, of Baltimore, and Raymond Sadler, age 61, of Middle River, Maryland, both U.S. Marine Corps veterans, pleaded guilty today to fraudulently obtaining veterans benefits. Veterans Sandra Tyree, age 64, of Rosedale, Maryland; Kenneth Webster, age 67, of Pasadena, Maryland; Paul Heard, age 64, of Baltimore; and John Bratcher, age 54, of Conowingo, Maryland pleaded guilty on Monday, April 29, 2013, to the same charge.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kim R. Lampkins of the Department of Veterans Affairs Office of Inspector General.
“Like all government agencies that award benefits based upon a sworn certification that the claimant deserves them, the Veterans Administration is vulnerable to abuse by dishonest people,”said U.S. Attorney Rod J. Rosenstein. “The defendants cheated the government of hundreds of thousands of dollars by falsely representing that they were suffering from medical disabilities as a result of their military service.”
U.S. Army veteran David Clark, age 68, of Hydes, Maryland, the former Deputy Chief of Veterans Claims in the Maryland Department of Veterans Affairs, has been indicted in connection with the scheme to fraudulently obtain over $1.4 million in veterans benefits. As the Deputy Chief for Veterans Claims, Clark’s duties included submitting claims and documentation on behalf of veterans in Maryland who appointed the MDVA to represent them in obtaining federal benefits from the Department of Veterans Affairs (VA). The indictment alleges that Clark fraudulently obtained VA compensation for himself, and others, in exchange for cash. According to the indictment, Clark claimed that he, co-defendants, and others, had been exposed to Agent Orange during the Vietnam War and had subsequently developed diabetes. In support of these claims, the indictment alleges that Clark submitted fraudulent documentation, including fake letters from physicians purportedly treating the veterans, which made statements that entitled each claimant to a retroactive lump-sum payment and increased the amount of compensation the VA paid the claimant. The indictment alleges that Clark created counterfeit versions of Defense Department Form 215 (DD215) for himself, several co-defendants and others, which falsely stated that they had served in combat in Vietnam. These documents were submitted to the VA to provide false evidence that they qualified for compensation benefits for diabetes.
Clark is also charged with submitting certifications to the Maryland State Department of Assessments and Taxation stating that some of his veteran co-schemers were entitled to a property tax waiver from the State of Maryland due to a100 percent service-connected disability.
Williams admitted that in 2006, he agreed to pay Clark to submit a false claim to the VA on Williams’ behalf for diabetes purportedly arising from military service during the Vietnam War. Williams received a one-time lump disability payment from the VA in 2006 of $6,000, from which he paid Clark $3,000. Thereafter, Williams received monthly payments from the VA until October 2012, for a total of $42,567 in benefits that he was not entitled to receive.
According to their guilty pleas: from 2003 to October 2012, Tyree, a U.S. Air Force veteran and a former employee of the U.S. Department of Veterans Affairs, received a total of $56,304 in benefits, and Webster, a U.S. Marine Corps veteran and former AMTRAK police officer, fraudulently received a total of $181,476 in benefits; from 2004 to October 2012, Sadler fraudulently received a total of $82,201 in benefits; and from 2006 to 2012, Heard, a U.S. Navy veteran, received a total of $58,060 in benefits to which he was not entitled. Neither Tyree nor Webster ever served in Vietnam, but they admitted that Clark submitted false service records to make it appear as if they had. Additionally, Heard admitted that he obtained a property tax waiver by having Clark submit false certification related to Heard’s purported disability. Heard fraudulently received tax waivers totaling $15,677 between 2006 and 2012.
Finally, according to his plea agreement, Bratcher, served in the U.S. Air Force from 1975 to 1980, stationed in Germany and the United States. Bratcher admitted that Clark submitted documents to the VA on Bratcher’s behalf falsely claiming compensation for diabetes, including a letter purported to be from his doctor. Bratcher had never seen this doctor and never served in Vietnam. Bratcher paid Clark between $3,000 to $5,000 to fraudulently obtain a total of $70,912 in VA benefits from 2003 to October 2012.
The total loss involving these six defendants, including the loss from the property tax evasion, is $507,197. The defendants will be required to forfeit all of these proceeds of the scheme.
The defendants each face a maximum sentence of 20 years in prison for wire fraud and a $250,000 fine. U.S. District Judge Catherine C. Blake scheduled sentencing for Williams and Sadler on August 2, 2013. Judge Blake set the sentencing for Bratcher, Heard and Tyree on July 12, 2013, and for Webster on August 26, 2013.
The indictment alleges that the VA benefit fraud loss as a result of the scheme is $1,151,219 and the loss from the property tax evasion is $255,555, for a total loss of $1,407,134.
An indictment is not a finding of guilt. David Clark is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today's announcement is part of efforts underway by President Obama=s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s 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.
United States Attorney Rod J. Rosenstein praised the VA Office of Inspector General for its work in the investigation and thanked Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
Serial Armed Robber from Hampton Sentenced in Federal CourtRead the Press Release
NORFOLK, Va. – Christian Lamont Johnson, 24, of Hampton, Va., was sentenced today to 385 months in prison, followed by 5 years of supervised release, for robbing multiple businesses while armed with a gun in the Hampton Roads area.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Criminal Division; and James D. Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior United States District Judge Henry Coke Morgan, Jr.
Johnson pleaded guilty on Jan. 28, 2013, on the day his jury trial was set to begin in Norfolk Federal Court, and was convicted of one count of robbery and two counts of possessing and brandishing a firearm in furtherance of a crime of violence.
Johnson was charged with committing three different armed robberies in a five-count superseding indictment returned on Sept. 20, 2012. According to court documents filed with his plea agreement, Johnson robbed an Approved Cash Advance check-cashing business in Norfolk on June 21, 2012, and a 7-Eleven convenience store in Hampton on July 3, 2012. During both robberies, he possessed and brandished a firearm to employees of the businesses. Following the 7-Eleven robbery, Johnson was seen entering a vehicle dressed in a black hooded sweatshirt, t-shirt and jeans, and wearing a black ski mask and gloves, while armed with a handgun. A witness followed Johnson’s vehicle and reported it to police. A high speed chase ensued when Johnson failed to yield to law enforcement. Attempting to evade authorities, Johnson drove at speeds reaching 100 miles per hour, veered into oncoming traffic, forced several motorists off of the road, and ran numerous red lights while narrowly missing other motorists. Johnson also drove across the James River Bridge and began throwing items out of the car. The chase ended 30 minutes later in Chesapeake when Johnson struck a median, lost control of the vehicle, and crashed into several trees. He then fled the scene on foot but was apprehended by the Virginia State Police.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the Hampton Police Division, Norfolk Police Department, Chesapeake Police Department, and the Virginia State Police. Trial Attorneys Louis Crisostomo of the Organized Crime and Gang Section, and Teresa Wallbaum of the Human Rights and Special Prosecutions Section, both in the Justice Department’s Criminal Division, prosecuted the case on behalf of the United States.Rocky Mount Man Sentenced to Federal Prison for Possessing A Machine GunRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday United States District Judge Terrence W. Boyle sentenced SAMUEL LEE COOPER, JR., 36, to 76 months imprisonment followed by five years supervised release. On July 11, 2012, COOPER pled guilty to possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c), and possessing a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
The June 6, 2012, Superseding Indictment, alleges that the offenses took place on October 4, 2010. According to the evidence presented in court, COOPER wasa drug dealer operating in Rocky Mount, North Carolina. When law enforcement went to COOPER’S residence they noticed marijuana in plain view. A search warrant was obtained and officers found a Norinco, model SKS, 7.62 fully automatic rifle along with ammunition for the rifle and a Smith and Wesson .22 caliber Ruger revolver.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rocky Mount Police Department. Assistant United States Attorney Jane J. Jackson is prosecuting the case.
Randeep Mann Resentenced to Life in the 2009 West Memphis Bombing of DoctorRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, released this statement today regarding the re-sentencing of Randeep Mann, age 54, in the 2009 West Memphis bombing case. Mann was re-sentenced by United States District Judge Brian Miller to life plus 360 months to be served concurrently in prison on two bombing counts, 10 years on Counts 3 & 6 weapons counts. Count 5 was vacated in accordance with the Eighth Circuits' ruling. The rest of his previous sentence, 5 years on the obstruction counts and $100,000 fine, were unchanged. Mann was arrested on March 4, 2009, and has been in federal custody since that date. "A little more than two years ago, Randeep Mann was sentenced to life imprisonment for his role in the 2009 bombing of Dr. Trent Piece in West Memphis. That was the appropriate sentence then, and it remains the appropriate sentence now. While my office respects the legalities that necessitated the re-sentencing hearing held earlier today, those legal issues do not change the violent, senseless crimes that were committed. Hopefully, the life sentence handed down today will mark the end of this case and bring closure to some very difficult times for Dr. Pierce and his family.
I want to recognize the efforts of prosecutors in my office as well as the many federal, state, and local law enforcement officers who worked on this case for many months. I commend them for their commitment to fully investigating and prosecuting this complex case. Specifically, my thanks go out to the Arkansas State Police, the West Memphis Police Department, the West Memphis Fire Department, the Pope County Sheriff's Office, the Shelby County Sheriff's Department Bomb Squad. Additionally, I must also express my gratitude to the many medical personnel and professionals who ultimately saved the life of Dr. Trent Pierce."
Randeep Mann was convicted August 9, 2010, on multiple counts related to the use of a weapon of mass destruction against Dr. Pierce and his vehicle, possession of unregistered weapons, and obstruction. He was sentenced by United States District Judge Brian Miller to life plus 360 months in prison on two bombing counts, 10 years on three weapons counts and 5 years on obstruction counts. The weapons convictions included counts of owning an unregistered machine gun and possessing almost 100 grenades which were found near Mann's Pope County residence. On December 6, 2012, the Eighth Circuit Court of Appeals affirmed Mann's convictions on the bombing, possession of unregistered weapons and obstruction counts. The Court ruled that Mann be re-sentenced on all but the obstruction counts because certain enhancements were applied to his sentence without sufficient support. The Court also ruled that one of two counts regarding the illegal possession of a machine gun be dropped at re-sentencing.
Phoenix Man Arrested on Federal Child Pornography ChargesRead the Press Release
United States Attorney Richard S. Hartunian announced the arrest today of a Phoenix, New York man on federal child pornography charges.
A federal criminal complaint unsealed today charges RICHARD J. WATKINS, age 48, with knowingly distributing, receiving, and possessing child pornography via the Internet. The complaint alleges that in September of 2012 WATKINS made files depicting child pornography available to others on the internet by way of a file sharing program, and that an undercover police officer was able to obtain from WATKINS’ computer video files depicting children engaged in sexually explicit conduct. The complaint further alleges that following the execution of a search warrant at WATKINS’ Phoenix residence, the New York State Police found that WATKINS possessed hundreds of video files of child pornography on media seized from his residence.
WATKINS was arrested on the federal charges this morning, and made his initial appearance before Hon. Andrew T. Baxter, United States Magistrate Judge, who ordered him detained pending a hearing scheduled for Monday, May 6, 2013.
For his distribution and receipt of child pornography, WATKINS faces a mandatory minimum penalty of 5 years imprisonment, a maximum penalty of 20 years; For possessing child pornography his maximum potential sentence of imprisonment is 10 years. Each count carries with it a maximum fine of $250,000, a required term of supervised release of at least 5 years, and up to life, and his registration as a sex offender.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
WATKINS’ arrest is the result of an investigation by the New York State Police, and the United States Secret Service. It is being prosecuted by Assistant U.S. Attorney Lisa Fletcher. WATKINS’ prosecution by the United States Attorney's Office is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Owner of Windy Hills Outpost Sentenced for Unlawful Sale of Migratory WaterfowlRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pennsylvania man, convicted of the Unlawful Sale of Migratory Waterfowl, was sentenced on April 29, 2013, by US District Judge Charles B. Kornmann. Mike Bishop, age 46, was sentenced to 11 months in custody; $7,200 in restitution (joint and several with co-defendants) to the United States Fish and Wildlife Service for the cost of the Services’ undercover hunt; $3,450 in restitution to South Dakota State Game, Fish and Parks Department for the illegally taking of State of South Dakota waterfowl; and a $100 assessment to the Federal Crime Victims Fund.
Bishop, the owner of Windy Hills Outpost, was indicted in April 2012 for Conspiracy to Violate the Lacey Act, Failure to Lawfully Tag Migratory Birds, the Sale and Possession of Wildlife in Violation of Migratory Bird Act, and False Labeling on Waterfowl Tags. He pled guilty to a Superseding Information charging him with the Unlawful Sale of Migratory Waterfowl on April 29, 2013.
The conviction stems from incidents that occurred in the fall of 2008 and 2009, in Marshall County, when Bishop and others who worked for Bishop as guides, unlawfully provided migratory waterfowl to undercover US Fish and Wildlife Service officers for meals at the lodge before the undercover officers had even gone hunting. Additionally, the officers observed Bishop and his guides take ducks and geese that were not lawfully tagged, shoot ducks over the possession limit, guide hunters who did not have valid hunting licenses, and alter dates on tags to show the migratory birds were taken on a series of days and not on a single day.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant US Attorney Mikal Hanson prosecuted the case.
Bishop will report to the United States Marshal’s Service on May 28, 2013, to begin serving his sentence.
Officer of Now Defunct New Frontier Bank Sentenced to Prison on Charges Related to the Bank's CollapseRead the Press Release
DENVER – Gregory William Bell, age 54, of Weld County, Colorado, was sentenced yesterday by U.S. District Court Judge Lewis T. Babcock to serve 30 months in federal prison for false bank entries, bank misapplication, bank fraud, and money laundering, the United States Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation and the FDIC – Office of Inspector General announced. Following his prison sentence, Bell was ordered to spend 3 years on supervised release. Judge Babcock has scheduled a hearing on June 12, 2013 to determine how much, and to whom, the restitution Bell could be ordered to pay should go to.
Bell was charged by Information on December 12, 2012 and pled guilty on February 5, 2013. According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, Gregory Bell was an officer of New Frontier Bank, which was insured by the Federal Deposit Insurance Corporation. On October 31, 2005, Bell made a false entry in a bank book, report or statement with intent to defraud the bank and deceive one or more of the bank’s officers. Specifically, the defendant allegedly prepared a form entitled “Credit Presentation and Committee Approval” for a $5,583,500 loan to two individuals on which he failed to disclose that a certificate of deposit, the value of which was $106,759.00, which the two individuals pledged as collateral, in fact belonged to another individual and that Bell would benefit personally as a result of the loan. On March 14, 2008, Bell willfully misapplied approximately $662,045.79 of New Frontier’s funds.
On June 17, 2008, and continuing until September 9, 2008, Bell devised and participated in a scheme to defraud the bank and to obtain moneys owned by and under the custody and control of the bank by means of materially false and fraudulent pretenses. As part of the scheme, Bell, knowing that state and federal regulators had directed New Frontier Bank to raise capital, arranged for eight bank customers to borrow money from the bank and use the proceeds of those loans to purchase shares of bank stock so New Frontier could inject some of the money paid for the stock into the bank. As part of the scheme, Bell failed to disclose the deteriorating condition of the bank to its customers. He also prepared and caused others to prepare bank forms entitled “Credit Presentation and Committee Approval” for the eight loans described above. Bell failed to disclose on the credit presentation forms that proceeds of the loans would be used to purchase shares of stock in New Frontier Bancorp.
Bell also allegedly caused false and misleading statements to be included on the credit presentation forms. He presented the credit presentation forms to bank loan committees and caused other persons to present them to bank loan committees. As part of the scheme, Bell caused the bank to loan approximately $20,145,979.23 to the eight borrowers mentioned above, and caused those borrowers to use approximately $4,310,215.00 of those proceeds to purchase shares of stock in the bank. On August 29, 2008, Bell executed a scheme by causing the bank to transfer approximately $260,000.00 of the proceeds of one of the bank loans to an account of one of the borrowers of that loan.
On June 27, 2008, Bell conducted a financial transaction affecting interstate commerce. Specifically, he deposited a check in the amount of $160,000.00 into his account at the bank. The transaction involved the proceeds of a specified unlawful activity, knowing that the transaction was designed in whole or in part to conceal and disguise the source and the ownership of the proceeds of the unlawful activity.
“Those responsible for bank failures were also ultimately responsible for the weakening of our economy,” said U.S. Attorney John Walsh. “Thanks to the hard work of the Assistant U.S. Attorneys, the FBI, IRS-Criminal Investigations and the FDIC, the officer of one of these failed banks has been held personally accountable, is now a felon, and will spend time in federal prison.”
“This case demonstrates the FBI’s continued commitment to investigating bank fraud violations,” said FBI Denver Acting Special Agent in Charge Steven Olson. “We place a high priority wherein senior bank officials utilize their positions to defraud financial institutions for personal gain. These criminal acts undermine our banking system and will be aggressively pursued.”
“This sentencing is a direct result of outstanding teamwork between IRS-CI, FBI, FDIC-OIG and the U.S. Attorney’s Office in combating violations of Federal law,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”
This case was investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service – Criminal Investigation (IRS-CI), and the Federal Deposit Insurance Corporation – Office of the Inspector General (FDIC-OIG).
The defendant was prosecuted by Assistant U.S. Attorney Suneeta Hazra and another prosecutor from the Economic Crimes Section of the Criminal Division of the U.S. Attorney’s Office.
####
Officer of Now Defunct New Frontier Bank Sentenced to Prison on Charges Related to the Bank's CollapseRead the Press Release
DENVER – Gregory William Bell, age 54, of Weld County, Colorado, was sentenced yesterday by U.S. District Court Judge Lewis T. Babcock to serve 30 months in federal prison for false bank entries, bank misapplication, bank fraud, and money laundering, the United States Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation and the FDIC – Office of Inspector General announced. Following his prison sentence, Bell was ordered to spend 3 years on supervised release. Judge Babcock has scheduled a hearing on June 12, 2013 to determine how much, and to whom, the restitution Bell could be ordered to pay should go to.
Bell was charged by Information on December 12, 2012 and pled guilty on February 5, 2013. According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, Gregory Bell was an officer of New Frontier Bank, which was insured by the Federal Deposit Insurance Corporation. On October 31, 2005, Bell made a false entry in a bank book, report or statement with intent to defraud the bank and deceive one or more of the bank’s officers. Specifically, the defendant allegedly prepared a form entitled “Credit Presentation and Committee Approval” for a $5,583,500 loan to two individuals on which he failed to disclose that a certificate of deposit, the value of which was $106,759.00, which the two individuals pledged as collateral, in fact belonged to another individual and that Bell would benefit personally as a result of the loan. On March 14, 2008, Bell willfully misapplied approximately $662,045.79 of New Frontier’s funds.
On June 17, 2008, and continuing until September 9, 2008, Bell devised and participated in a scheme to defraud the bank and to obtain moneys owned by and under the custody and control of the bank by means of materially false and fraudulent pretenses. As part of the scheme, Bell, knowing that state and federal regulators had directed New Frontier Bank to raise capital, arranged for eight bank customers to borrow money from the bank and use the proceeds of those loans to purchase shares of bank stock so New Frontier could inject some of the money paid for the stock into the bank. As part of the scheme, Bell failed to disclose the deteriorating condition of the bank to its customers. He also prepared and caused others to prepare bank forms entitled “Credit Presentation and Committee Approval” for the eight loans described above. Bell failed to disclose on the credit presentation forms that proceeds of the loans would be used to purchase shares of stock in New Frontier Bancorp.
Bell also allegedly caused false and misleading statements to be included on the credit presentation forms. He presented the credit presentation forms to bank loan committees and caused other persons to present them to bank loan committees. As part of the scheme, Bell caused the bank to loan approximately $20,145,979.23 to the eight borrowers mentioned above, and caused those borrowers to use approximately $4,310,215.00 of those proceeds to purchase shares of stock in the bank. On August 29, 2008, Bell executed a scheme by causing the bank to transfer approximately $260,000.00 of the proceeds of one of the bank loans to an account of one of the borrowers of that loan.
On June 27, 2008, Bell conducted a financial transaction affecting interstate commerce. Specifically, he deposited a check in the amount of $160,000.00 into his account at the bank. The transaction involved the proceeds of a specified unlawful activity, knowing that the transaction was designed in whole or in part to conceal and disguise the source and the ownership of the proceeds of the unlawful activity.
“Those responsible for bank failures were also ultimately responsible for the weakening of our economy,” said U.S. Attorney John Walsh. “Thanks to the hard work of the Assistant U.S. Attorneys, the FBI, IRS-Criminal Investigations and the FDIC, the officer of one of these failed banks has been held personally accountable, is now a felon, and will spend time in federal prison.”
“This case demonstrates the FBI’s continued commitment to investigating bank fraud violations,” said FBI Denver Acting Special Agent in Charge Steven Olson. “We place a high priority wherein senior bank officials utilize their positions to defraud financial institutions for personal gain. These criminal acts undermine our banking system and will be aggressively pursued.”
“This sentencing is a direct result of outstanding teamwork between IRS-CI, FBI, FDIC-OIG and the U.S. Attorney’s Office in combating violations of Federal law,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”
This case was investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service – Criminal Investigation (IRS-CI), and the Federal Deposit Insurance Corporation – Office of the Inspector General (FDIC-OIG).
The defendant was prosecuted by Assistant U.S. Attorney Suneeta Hazra and another prosecutor from the Economic Crimes Section of the Criminal Division of the U.S. Attorney’s Office.
####
Nine People Linked to Cocaine Distribution to Italy and Domestic Methamphetamine Sales Named in Federal IndictmentRead the Press Release
LOS ANGELES – A federal investigation into a drug-trafficking organization led by two brothers who oversaw the distribution of cocaine to Italy and across the United States – as well as methamphetamine being trafficked across the U.S. – has led to the indictment of nine people, three of whom were arrested this morning.
Operation “Family Guy” targeted the Urena family drug-trafficking organization through the use of undercover operatives and wiretaps that led to the interception of telephone calls, text messages, and communications sent through BlackBerry Messenger.
The investigation, which culminated with a seven-count indictment being returned by a federal grand jury on April 24, resulted in the seizure of approximately 40 kilograms of cocaine being smuggled into Italy from the Dominican Republic and Mexico. That cocaine was being smuggled by female drug couriers allegedly recruited by two Urena brothers, who were assisted by their uncle Francisco Javier Vargas-Oseguera and others. The investigation also uncovered a conspiracy to distribute significant quantities of methamphetamine and cocaine throughout the United States through the use of vehicles with hidden compartments.
The indictment also alleges that members of the narcotics-trafficking operation laundered drug proceeds from the Dominican Republic through the use of Western Union wire transfers sent to Fontana and Rancho Cucamonga.
Operation “Family Guy” is the product of an investigation conducted by the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Task Force, which is coordinated by the Drug Enforcement Administration and is comprised of agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and
IRS - Criminal Investigation. The Los Angeles Sheriff’s Department and the Whittier Police Department also participated in this investigation.Those named in the indictment unsealed this morning are:
Milton Urena, 29, of the Dominican Republic, who is currently being sought by authorities;Rafael Urena, 27, of Rancho Cucamonga, Milton Urena’s brother, who was arrested this morning;
Daniel Alejandro Agredano Vazquez, 22, of the Dominican Republic, who allegedly oversaw the distribution of cocaine from the Dominican Republic to Italy and conspired to launder drug proceeds, and who is currently being sought by authorities;
Francisco Javier Vargas-Oseguera, 51, an uncle of the Urena brothers, previously of Seattle and recently of Fontana, who is currently in federal custody in Seattle after being charged in federal court there in relation to his alleged possession of eight pounds of methamphetamine in a case unrelated to Operation Family Guy;
Leonel Urena-Partida, 49, of Guadalajara, Mexico, another uncle of the Urena brothers, who allegedly conspired to transport cocaine to Italy, and who is being sought by authorities;
Carmen Garcia, 35, of San Bernardino, who supplied methamphetamine and assisted with the recruitment of drug couriers, and who was arrested this morning;
Eliseo Carrillo Duarte, 45, of Montebello, who is currently in federal custody in Indianapolis after being arrested there in March on unrelated drug-trafficking charges stemming from the seizure of approximately 10 pounds of methamphetamine;
Jenna Michelle Martin (also known as Jenna Michelle Smith), 25, of Upland, an alleged drug courier who was arrested this morning; and
Beth Rene Ford (also known as Beth Rene Florance), 26, formerly of Ontario and now living in the Denver area, a second alleged drug courier, who is expected to self-surrender soon to authorities.
The defendants arrested this morning are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
The indictment specifically charges eight defendants (not Duarte) with conspiracy to distribute cocaine to Italy, which carries a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment. Six of the defendants (not Agredano Vasquez, Martin or Ford) are charged in another conspiracy involving the domestic distribution of cocaine and methamphetamine, a charge that also carries a mandatory minimum sentence of 10 years in federal prison.
Various defendants are also named in a charge that alleges the distribution of approximately one pound of methamphetamine, three counts of use of a communication facility in committing a felony drug offense, and conspiracy to launder money.
Release No. 13-061
Newtown Man Sentenced to More Than 23 Years in Prison for Producing and Trading Child PornographyRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that EDWARD F. WILSON, 29, of Newtown, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 280 months of imprisonment, followed by 10 years of supervised release, for producing, trading and possessing child pornography.
According to court documents and statements made in court, WILSON sexually abused a female child, filmed and photographed the abuse with an iPhone, and maintained the videos and images on his home computer. The victim was approximately four years old at the time of the abuse in 2011 and 2012.
In addition to filming, photographing and maintaining videos and images of the sexual abuse that he inflicted on the female child, WILSON traded via email hundreds of other images and videos of child pornography and maintained a collection of child pornography on his home computers.
“The U.S. Attorney’s Office is steadfastly committed to working with our state counterparts to use the full weight of federal child exploitation laws to prosecute those who commit these heinous crimes,” stated U.S. Attorney Fein. “Together we can protect society from dangerous offenders, often in ways that protect young victims from having to testify and being further victimized. I want to thank the Danbury State’s Attorney’s Office, the Connecticut State Police, the Newtown Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force for their critical assistance and cooperation during the course of this investigation.”
On February 13, 2013, WILSON pleaded guilty to one count of production of child pornography.
WILSON has been detained in state custody since his arrest on April 13, 2012, for first-degree possession of child pornography, obscenity and promoting a minor in an obscene performance. On July 10, 2012, he was arrested on 22 additional state charges, including six counts of first-degree sexual assault, five counts of fourth-degree sexual assault and 11 counts of risk of injury. The state charges are pending.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Newtown Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Man Charged with Allegedly Transporting Minor with Intent to Engage in Sexual ConductRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Trevorn Renel Parkins, age 21, of Buffalo, New York, was indicted today by a federal grand jury in Harrisburg charging him with the transportation of minors and traveling with intent to engage in illicit sexual conduct.
The case is being investigated by the Federal Bureau of Investigation, Pennsylvania State Police, the Buffalo City Police and the Buffalo District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Moorhead Man Sentenced to Life in Prison on a Federal Drug Conspiracy ChargeRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on May 1, 2013, Raul Tovar of Moorhead, Minn., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of conspiracy to possess with intent to distribute and distribute in excess of 500 grams of a mixture containing methamphetamine.
Judge Erickson sentenced Tovar to life imprisonment to be followed by a lifetime of supervised release. Tovar was ordered to pay a $100 special assessment to the Crime Victim's Fund.
Tovar, 49, was found guilty by a 12-person jury on Jan. 22, 2013, of the conspiracy and aiding and abetting charge. Judge Erickson presided over the five-day trial.
In December of 2011, Moorhead police officers were investigating a drug trafficking organization in the Fargo-Moorhead area. Following an execution of a search warrant at the AmericInn Lodge and Suites in Moorhead, agents arrested Jason Keller. Further investigation revealed that Keller and others were obtaining drugs from Tovar.
The case was investigated by the Drug Enforcement Administration, Fargo and West Fargo Police Departments, and Moorhead, Minn. Police Department.
Assistant U.S. Attorneys Chris Myers and Megan A. Healy prosecuted the case.
Montana Hospitals Agree to Pay $3.95 Million to Resolve Alleged False Claims Act and Stark Law ViolationsRead the Press Release
St. Vincent Healthcare, a hospital located in Billings, Mont., and Holy Rosary Healthcare, a hospital located in Miles City, Mont., have agreed to pay $3.95 million plus interest to resolve allegations that they violated the Stark Law and the False Claims Act by improperly providing incentive pay to physicians that made referrals to the hospitals, the Justice Department announced today.
The Stark Law forbids a hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the hospital unless that relationship falls within certain exceptions. A prohibited financial relationship includes a hospital’s agreement to compensate a physician in a manner that takes into account the volume of the physician’s referrals or the revenue realized through those referrals.
The settlement announced today resolves allegations that the hospitals paid several physicians incentive compensation that took into account the value or volume of their referrals by improperly including certain designated health services in the formula for calculating physician incentive compensation. These issues were disclosed by the hospitals to the government.
“The resolution of this matter underscores our commitment to ensure that services reimbursable by federal health care programs are based on the best interests of patients rather than the personal financial interests of referring physicians,” said Stuart F. Delery, Acting Assistant Attorney General for the Department’s Civil Division.
“Combating health care fraud is a top priority of the Department of Justice and the Montana U.S. Attorney’s Office. St. Vincent Healthcare and Holy Rosary Healthcare allegedly put their financial interest ahead of their responsibility to provide cost effective health care. The United States recovered $3,950,000 of taxpayers’ dollars from the hospitals. The U.S. Attorney’s Office is committed to enforcing the Stark Law and False Claims Act, as well as other health care laws and regulations against wrongdoers. This case also demonstrates how the Department of Justice will work with those health care providers who disclose their misconduct,” said Michael W. Cotter, U.S. Attorney for the District of Montana.
“There is an expectation that corporations providing services to Medicare and Medicaid beneficiaries adhere to the provision of the Stark Law. I applaud St. Vincent Healthcare and Holy Rosary Healthcare for recognizing their potential liability in this matter and making a disclosure,” said Gerry Roy, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including Montana. “Working closely with our partners at the Department of Justice, we will vigilantly protect federal health care programs against violations of the Stark Law.”
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services, in May 2009. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
This case was handled by the U.S. Attorney’s Office for the District of Montana, the Department of Justice’s Civil Division, the Office of Inspector General of the U.S. Department of Health and Human Services, and the FBI. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Montana Hospitals Agree to Pay $3.95 Million to Resolve Allegedfalse Claims Act and Stark Law ViolationsRead the Press Release
Hospitals Allegedly Compensated Physicians for Improper Referrals
The U.S. Attorney's Office announced that St. Vincent Healthcare, a hospital located in Billings, Montana, and Holy Rosary Healthcare, a hospital located in Miles City, Montana, have agreed to pay $3,950,000 plus interest to resolve allegations that they violated the Stark Law and the False Claims Act by improperly providing incentive pay to physicians that made referrals to the hospitals, the Justice Department announced today. The Stark Law forbids a hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the hospital unless that relationship falls within certain exceptions. A prohibited financial relationship includes a hospital's agreement to compensate a physician in a manner that takes into account the volume of the physician's referrals or the revenue realized through those referrals.
The settlement announced today resolves allegations that the hospitals paid several physicians incentive compensation that took into account the value or volume of their referrals by improperly including certain designated health services in the formula for calculating physician incentive compensation. These issues were disclosed by the hospitals to the government.
The resolution of this matter underscores our commitment to ensure that services reimbursable by federal health care programs are based on the best interests of patients rather than the personal financial interests of referring physicians," said Stuart F. Delery, Acting Assistant Attorney General for the Department's Civil Division.
Combating health care fraud is a top priority of the Department of Justice and the Montana U.S. Attorney's Office. St. Vincent Healthcare and Holy Rosary Healthcare allegedly put their financial interest ahead of their responsibility to provide cost effective health care. The United States recovered $3,950,000 of taxpayers' dollars from the hospitals. "The U.S. Attorney's Office is committed to enforcing the Stark Law and False Claims Act, as well as other health care laws and regulations against wrongdoers. This case also demonstrates how the Department of Justice will work with those health care providers who disclose their misconduct," said Michael W. Cotter, U.S. Attorney for the District of Montana.
There is an expectation that corporations providing services to Medicare and Medicaid beneficiaries adhere to the provision of the Stark Law. I applaud St. Vincent Healthcare and Holy Rosary Healthcare for recognizing their potential liability in this matter and making a disclosure," said Gerry Roy, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including Montana. "Working closely with our partners at the Department of Justice, we will vigilantly protect federal health care programs against violations of the Stark Law."
This resolution is part of the government's emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services, in May 2009. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department's total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
This case was handled by Assistant U.S. Attorney Jessica T. Fehr and Assistant U.S. Attorney Michael Shin with the U.S. Attorney's Office for the District of Montana, the Department of Justice's Civil Division, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Federal Bureau of Investigation. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Maryland Man Pleads Guilty to Involuntary Manslaughter in Traffic Fatality in Northeast Washington-Impaired Driver Struck Pedestrian, Who Was in A Crosswalk-Read the Press Release
WASHINGTON – Joel R. Bromwell, 32, of Annapolis, Md., pled guilty today to charges of involuntary manslaughter and driving under the influence of alcohol stemming from a recent traffic fatality in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Bromwell entered the plea in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for Aug. 30, 2013. Bromwell faces a statutory maximum of 30 years in prison for involuntary manslaughter and up to 180 days of incarceration and a $1,000 fine for driving under the influence.
According to the government’s evidence, on March 21, 2013, at about 8:15 p.m., Bromwell was driving a sport utility vehicle at a high rate of speed, headed east in the 1100 block of Florida Avenue NE. The victim, Ruby L. Whitfield, 71, and two other individuals were walking across Florida Avenue at the intersection with 11th Street NE, in a marked crosswalk. Ms. Whitfield had just left church after an usher practice for the upcoming Palm Sunday.
Vehicular traffic at the intersection had stopped to give Ms. Whitfield and the other pedestrians the right of way. An eyewitness saw the SUV strike Ms. Whitfield without stopping, and she was lodged beneath the vehicle for about 86 feet.
An eyewitness followed the SUV as it drove from the scene and approached Bromwell while he was stopped at a red light a block away. The witness told Bromwell that he had just hit someone and that he should return to the scene. Instead, Bromwell drove off without making his identity known.
The Metropolitan Police Department (MPD) located the SUV and Bromwell a short time later. Bromwell failed field sobriety tests. He admitted that he was the driver of the SUV and that he had been drinking prior to the crash. Bromwell was arrested and, while at a police station, breath tests indicated that his blood alcohol content was above the legal limit for driving.
In announcing the plea, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Unit. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Sandra Lane, Fern Rhedrick and Phil Aronson. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who is prosecuting the matter.
13-154Maryland Man Found Guilty of Armed Robbery, Other Charges in Two Attacks, Including A Beating That Led to Serious Injuries-Crimes Took Place Within About Three Hours Last Summer-Read the Press Release
WASHINGTON – Tommy T. Branch, 22, of Fort Washington, Md., was found guilty by a jury today of charges stemming from a pair of attacks last summer, including one in which a man was severely beaten with a baseball bat, U.S. Attorney Ronald C. Machen Jr. announced.
The jury returned the guilty verdict after a trial in the Superior Court of the District of Columbia. Branch was found guilty of charges of conspiracy, aggravated assault while armed, armed robbery, assault with intent to rob, and attempted credit card fraud.
The Honorable Robert I. Richter scheduled sentencing for July 2, 2013. Branch, who has been in custody since his arrest last year, faces a statutory maximum of 105 years in prison.
According to the government’s evidence, Branch and two accomplices – Sunny B. Kuti and Michael Moore - decided on Aug. 17, 2012 to commit a robbery together. They drove to the Adams Morgan area of Northwest Washington in Branch’s car. When they could not identify a suitable target, they drove to Capitol Hill and parked down an alley next to Eastern Market.
Shortly after midnight, early in the morning of Aug. 18, 2012, they saw the victim walking home and attacked him.
Branch hit the victim in the side of the head with a bat. He and his accomplices took the victim’s iPhone, credit card, and keys. They then drove to a gas station in the 1200 block of Pennsylvania Avenue SE, a few blocks away from the robbery scene. Branch tried to use the victim’s credit card to buy gasoline, but the card was refused because he did not know the cardholder’s zip code.
Following this attack, Branch, Kuti, and Moore drove to the Barry Farm area of Southeast Washington where they met a fourth man, Darrin L. Beal. They then set off for the Adams Morgan area to commit a second robbery. At about 3:20 a.m., while Beal remained in the car, Branch, Moore, and Kuti, while armed with a non-functioning BB gun that resembled a real handgun, targeted three victims in an alley off of the 1800 block of 18th Street NW, violently assaulting one victim and taking a cellphone, wallet, and set of keys from another.
The victim of the first robbery, meanwhile, was found, unconscious, by police at about 8:15 a.m. on Aug. 18, 2012, on the front porch of a rowhouse in the 700 block of North Carolina Avenue SE. He had a massive fracture to his skull and bleeding throughout the brain cavity due to the blow from the bat.
“Tommy Branch used an aluminum baseball bat to put a young father into a coma,” said U.S. Attorney Machen. “A young family has been changed forever because this defendant carried out a brutal beating to steal an iPhone and a bank card. Today's jury verdict is a reflection of our community's outrage over random acts of violence and our determination to hold criminals accountable. He now faces the prospect of decades in prison and we will ask that he be punished to the full extent of the law.”
Moore, 18, of Washington, D.C., pled guilty to charges for his role in the crimes and is awaiting sentencing. Kuti, 17, of Washington, D.C., and Beal, 25, of Washington, D.C., are awaiting trial. Both have pled not guilty to charges.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including the First District Prosecution team.
13-155Mark James Denny Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Chief U.S. District Judge Richard F. Cebull, MARK JAMES DENNY, a 33-year-old resident of Hardin, appeared for sentencing. DENNY was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $73,045.81
DENNY was sentenced in connection with his guilty plea to theft from an organization receiving federal funding.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies. DENNY was also an employee of the CTHPO.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees assigned to projects as monitors. X.X. did not serve as a monitor in the field.
In the Summer of 2011 - from June to August - DENNY was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DENNY's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who as Director of the CTHPO had assigned several others and DENNY as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DENNY admitted that he knew that he took direct payments while a tribal employee and that it was wrong to be paid by the Tribe and the companies for the same work. He admitted that the time sheets he submitted to the Tribe and the invoices he submitted to the companies were false and fraudulent because they were inflated and represented demands for payment for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Man Pleads Guilty to Habitual Domestic AssaultRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 48-year-old man pleaded guilty to being a habitual offender who committed domestic assault against a woman on the Bois Forte Indian Reservation. On April 30, 2013, Mark Allen Isham specifically pleaded guilty to one count of domestic assault by an habitual offender. Isham, who was indicted on December 3, 2012, entered his plea before United States District Court Judge David S. Doty. This is the third time the U.S. Attorney’s Office for the District of Minnesota has prosecuted someone under the federal “domestic assault by an habitual offender” statute.
In his plea agreement, Isham admitted that on August 22, 2012, he struck the victim and threw her to the ground, causing bodily injury. The assault followed at least two prior convictions in Bois Forte Tribal Court for similar crimes. They occurred in 2004, 2008, and 2010.
The federal law that governs domestic assault by a habitual offender was enacted by Congress in 2006 in support of the Violence Against Women Act of 2000. The 2006 statute is a valuable tool for federal prosecutors because research shows that many domestic violence offenders are repeat offenders.This statute is of particular importance in Indian Country because domestic violence rates are far greater there than in the country at large. In 2005, Congress reported that one in three American Indian women is raped during her lifetime. American Indian women are also nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” for prosecution involving domestic violence, sexual assault, and stalking.
For his crimes, Isham faces a potential maximum penalty of five years in federal prison. Judge Doty will determine his sentence at a future hearing, not yet scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Bois Forte Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Bois Forte Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Bois Forte Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Lincoln Woman Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on May 1, 2013, an indictment was unsealed charging Bobbie Elaine Parker, 34, of Lincoln, with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine between March of 2010 and December of 2012.
The conspiracy charge carries a possible penalty of not less than ten years, nor more than life in prison; a fine of up to $10 million; and a term of supervised release following the prison term of not less than five years.
Parker appeared in federal court in Lincoln on May 1, 2013, and was ordered held without bond. Trial is scheduled to begin on June 25, 2013.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriffs Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Leader of Ghanaian Heroin Trafficking Organization Sentencted to 216 MonthsRead the Press Release
ALEXANDRIA, Va. – Mustapha Issaka Zico, 41, of Nima, Ghana, was sentenced today to 216 months in prison, followed by five years of supervised release, for conspiring to import heroin from Ghana into the United States. He was also ordered to forfeit $110,000.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent In Charge for Drug Enforcement Administration (DEA) Washington Division Office; and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after sentencing by United States District Judge Liam O’Grady.
Zico was found guiltyon January 25, 2013, following a three-day trial. According to court documents, the defendant was one of the ringleaders of a multi-kilogram heroin trafficking organization in Ghana. The organization used couriers aboard commercial airlines to smuggle heroin from Ghana to the United States, frequently from the Kotoka International Airport in Accra, Ghana, to Dulles International Airport in the Eastern District of Virginia, as well as other airports in the United States. According to the indictment and evidence at trial, Zico and his co-conspirators paid off airport officials in Ghana to allow safe passage of the heroin. Zico was directly involved in several heroin shipments and directed the activities of previously convicted co-conspirators Edmund Darkwah, Fred Brobbey, and Matilda Antwi, all of whom pled guilty to charges in the Eastern District of Virginia. Zico shared leadership of the conspiracy with Edward Macauley, who was also convicted in the Eastern District of Virginia and sentenced to 168 months’ imprisonment.
Five defendants were extradited from Ghana to stand trial in the Eastern District of Virginia after coordinated arrests by the Ghanaian Narcotics Control Board, while other co-conspirators were arrested in New York, Maryland, and Virginia on July 14, 2011. Still more defendants were charged, arrested, and extradited from Ghana in 2012. In all, eleven co-conspirators were convicted.
This Organized Crime and Drug Enforcement Task Force (OCDETF) investigation was conducted by the DEA, including agents in Washington, New York, and Ghana, and by DHS Homeland Security Investigations, with assistance from the Ghanaian Narcotics Control Board and Ghana Police Services, the U.S. Department of Justice's Office of International Affairs, and the U.S. Customs and Border Protection.
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.Larkin Troy Chandler Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Chief U.S. District Judge Richard F. Cebull, LARKIN TROY CHANDLER, a 46-year-old resident of Crow Agency, appeared for sentencing. CHANDLER was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $44,546.50
CHANDLER was sentenced in connection with his guilty plea to theft from an organization receiving federal funding.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies. CHANDLER was also an employee of the CTHPO.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO, including CHANDLER, and the two non-employees assigned to projects as monitors. X.X. did not serve as a monitor in the field. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
When interviewed, CHANDLER confirmed that he had been a tribal employee being paid on a per hour basis for his services as a monitor. He also confirmed that he billed the companies directly, at the direction of X.X., for performing the services for which he was already being compensated by the Tribe.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
KC Man Pleads Guilty to $1 Million Drug-Trafficing Conspiracy, Faces at least 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a drug-trafficking conspiracy that totaled more than $1 million over the past year and to illegally possessing a firearm.
Corbin J. Bosiljevac, 36, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to his role in a conspiracy to distribute more than five kilograms of cocaine and to possessing a firearm in furtherance of a drug-trafficking offense.
According to today’s plea agreement, police detectives stopped one of Bosiljevac’s drug-trafficking customers as he was leaving Bosiljevac’s residence and found drugs in the vehicle. Officers executed a search warrant at Bosiljevac’s residence and found marijuana, cocaine, ecstasy, and hundreds of pills of various prescription drugs. Officers also found a Kel-Tec 9mm handgun and $1,863 in Bosiljevac’s residence.
Bosiljevac admitted that he sold $20,000 worth of drugs each week. He had separate sources to supply the cocaine and the pills, he told officers. He stated that he bought cocaine for re-sale on a weekly basis, getting an average of four ounces per week (although he admitted getting 16 ounces on the last transaction).
Under federal statutes, Bosiljevac is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $4,250,000. 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. Attorney Charles E. Ambrose, Jr. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
John Paul Sigl Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Senior U.S. District Judge Jack D. Shanstrom, JOHN PAUL SIGL, age 50, pled guilty to threats against the President. Sentencing has been set for August 7, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On April 24, 2012, the U.S. Secret Service in Billings received a telephone call from the Billings Police Department about a threat against the President of the United States Barack Obama. The Billings Police Department reported that on April 19, 2012, the 911 call center received a threat against President Obama. The caller's name, making the threat, was John Paul Sigl.
On the same date the threat was called into the 911 call center, SIGL was involuntarily committed to the psychiatric unit of the Billings Clinic and had to be restrained due to physical confrontation and threats of death to the clinic staff.
On April 24, 2012, a U.S. Secret Service agent interviewed SIGL. Of significance were the following statements made by SIGL during the interview: a) SIGL stated his second wife died in 2009. SIGL expressed that be believed that the medication she received for her illness had grave side effects and resulted in her death. SIGL believes that the doctors who treated his deceased wife killed her and he views this as the ultimate injustice and feels he no longer has anything to live for and is motivated by justice being served on those he views as responsible; b) During the same interview SIGL stated no less than 20 times that "the politicians and the President" are responsible for allowing the doctors to kill his wife and they must die. SIGL stated that he needed to be "locked up for a very long time" because if he were to be released he "promised" he would find a way to kill those previously mentioned. SIGL iterated several times he should be taken seriously; c) SIGL stated he was not afraid of the consequences in attempting his purposes. SIGL told the Secret Service Agent several times that he would rather die than continue to live with his perceived injustice and that he would end up dead, imprisoned, or succeeding in his desire to kill those previously stated; d) SIGL stated he no longer has anything to live for as a result of his wife's death in 2009.
SIGL stated later in the same interview, when asked about weapons he may have access to, that he "knows how the streets work," and can get anything he wants "to get the job done." SIGL also stated, "You better take me serious," and "I promise you, if I get out of here, I will find a way to kill the President." SIGL's intent was clearly to harm or kill President Barak Obama.
On April 27, 2012, SIGL was admitted into Warm Springs State Hospital, was again involuntarily committed and had to be restrained due to physical confrontation and threats of death to the hospital staff.
On May 4, 2012, SIGL was again interviewed by law enforcement. SIGL continued to state that if released he intended to kill the President of the United States and anyone else he blamed for his wife's death. SIGL said, "I'll kill them all, the President, the doctors, the politicians. I can't live life like this." SIGL responded to law enforcement by saying that he was serious about his threats of death.
Interviews with SIGL's mental health providers confirmed that he was unstable with violent tendencies. The Secret Service agent that heard SIGL's repeated threats believed SIGL's intention was to harm the President of the United States.
SIGL faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Secret Service.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on May 1, 2013:
Antonio Collins, 36, of Merrillville, Indiana, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Brian Washington, 26, of Gary, Indiana, was charged with two counts of distribution of crack cocaine, two counts of possession of firearms in furtherance of a drug trafficking crime and two counts of dealing in firearms without a license.These charges were filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Tony Bronson, 53, of Gary, Indiana, was charged with receipt of child pornography and possession of child pornography.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation and the Michigan City Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Indictment Charges Sex Trafficking of FemalesRead the Press Release
PHILADELPHIA – Christian Dior Womack, a/k/a “Gucci Prada,” 28, of Chester, PA, and Rashidah Brice, a/k/a “Camille,” a/k/a “Milly,” 23, of Chester, PA, are charged by indictment , unsealed today, with sex trafficking females for prostitution, announced United States Attorney Zane David Memeger. According to the indictment, the defendants operated a prostitution venture in Philadelphia, Pennsylvania, and elsewhere and, as part of the operation of that business, recruited young females, one of whom was a minor, to work as prostitutes for them between May 25 2012 and June 11, 2012. The indictment further alleges that the defendants engaged in acts of physical violence and threats of physical harm to maintain the participation of females in their prostitution business. They are charged with sex trafficking of a minor and sex trafficking by force.
As part of their venture, Womack and Brice allegedly created internet advertisements in which they advertised these females as available for purchase for purposes of prostitution. The advertisements featured pictures of the females scantily clad, and provided a phone number to call to arrange a meeting with the females.
If convicted of all charges, the defendants each face a mandatory minimum sentenced of 15 years in prison with a maximum possible sentence of life in prison, five years of supervised release, and possible fines.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michelle Morgan.Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Former Employees of Allentown Mortgage Co.Read the Press Release
PHILADELPHIA - The former general manager and five former employees of Madison Funding, Inc., a now-defunct Allentown mortgage loan origination company, are charged by indictment, unsealed today, in a mortgage fraud conspiracy that caused mortgage lending businesses to issue millions of dollars worth of loans that were based on false information. All six defendants are charged with conspiracy to commit fraud and related crimes. A seventh former employee is charged in an information with one count of making a false report to the Department of Housing and Urban Development. The indictment was announced by United States Attorney Zane David Memeger.
Charged are: Joel Tillett, 36, of Whitehall, PA, who was the general manager; loan officers Jason Boggs, 35, who was also a branch manager, and Claribel Gonzalez, 42; loan processors Florentina Peralta, 33, Ghovanna Gonzalez, 34, all of Allentown, and Angela Diaz, 35, of Bethlehem. Denise Peralta, 32, of Allentown, is charged by information.
According to the indictment, between October 2006 and at least June 2008, the defendants conspired to defraud mortgage lenders by submitting loan applications that contained false information about the borrowers which was often supported by falsified, forged, and altered documents. The mortgage lenders, which included Washington Mutual Inc., Countrywide Home Loans, Mortgage IT, International Mortgage Corporation, and Security Atlantic Mortgage Company, relied on the defendants’ fraudulent representations and provided Madison Funding’s clients with millions of dollars in loans to purchase real estate. Each funded loan generated thousands of dollars worth of commissions to Madison Funding and its employees. Many of those loans have since defaulted and some of them were insured by the Federal Housing Administration (“FHA”), which was an agency within the United States Department of Housing and Urban Development (“HUD”).
The indictment further alleges that Boggs and Claribel Gonzalez helped clients apply for loans to purchase multiple properties while indicating on each loan application that these would be the primary residence of the loan applicant when, in fact, the defendants knew that was false.
The indictment alleges that in April 2007, Claribel Gonzalez and Florentina Peralta left the Madison Funding branch run by Tillett and opened a new branch of Madison Funding, where they engaged in similar crimes. Gonzalez and Peralta are also charged with committing bank fraud in connection with a personal mortgage loan for Gonzalez.
If convicted of all charges, in addition to possible restitution, the defendants face the following possible sentences:
Joel Tillett and Angela Diaz: a maximum of seven years in prison, three years of supervised release, a $500,000 fine, and a $200 special assessment;
Jason Boggs: a maximum of 11 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment;
Claribel Gonzalez: a maximum of 40 years in prison, five years of supervised release, a $1.5 million fine, and a $300 special assessment;
Florentina Peralta: a maximum of 52 years in prison, five years of supervised release, a $3 million fine, and a $900 special assessment;
Ghovanna Gonzalez: a maximum of nine years in prison, a three year period of supervised release, a $750,000 fine, and a $400 special assessment;
Denise Peralta: a maximum of one year in prison, one year of supervised release, a $1,000 fine, and a $25 special assessment.
The case was investigated by the Department of Housing and Urban Development Office of the Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, and the Federal Housing Finance Agency Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Idaho Prison Inmate Indicted by Federal Grand Jury for Mail FraudRead the Press Release
BOISE – Mark Anthony Brown, 53, an inmate at the Idaho Correctional Center in Orofino, was arraigned in United States District Court today on 12 counts of mail fraud, U.S. Attorney Wendy J. Olson announced. Brown was indicted by a federal grand jury on March 12, 2013. A trial is set for June 3, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The indictment alleges that from September 2007 to February 28, 2013, Brown devised a scheme to defraud by submitting claim forms in which he falsely represented that he was a claimant, or member, of various class action lawsuits, bankruptcy settlements and other large-scale lawsuits. The indictment alleges that Brown mailed the claim forms to administrators of the settlements in order to receive settlement proceeds. Brown allegedly deposited the proceeds he received into his Idaho Department of Correction trust account and into several different investment accounts, through the use of the mail. The government is seeking forfeiture of approximately $64,000 in currency, or substitute assets, which Brown is alleged to have received from the scheme to defraud.
Each count of mail fraud is punishable by up to 20 years in federal prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the United States Postal Inspection Service with the cooperation of the Idaho Department of Correction.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Hartford Man Sentenced to More Than Six Years in Federal Prison for Distributing CrackRead the Press Release
The United States Attorney for the District of Connecticut today announced that JOVAN SMITH, also known as “Hood,” 35, of Hartford, was sentenced yesterday by Senior United States District Judge Ellen Bree Burns in New Haven to 78 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Northern Strike,” a 15-month joint law enforcement investigation targeting members and associates of geographically-based street gangs engaging in criminal activity in Hartford’s Upper Albany and Northeast neighborhoods. The investigation included the use of court-authorized wiretaps on multiple telephones, controlled purchases of narcotics and physical surveillance. As a result of the investigation, 35 individuals were charged with various federal drug and firearms violations.
According to court documents and statements made in court, one of the initial targets of the investigation was Joseph Smith, also known as “Nitty.” Intercepted calls revealed that Joseph Smith regularly sold JOVAN SMITH eighth-ounce quantities (“8-balls”) of crack cocaine. JOVAN SMITH then sold the crack in smaller quantities in the area of Center and Chestnut Streets in Hartford.
On June 7, 2012, JOVAN SMITH pleaded guilty to one count of conspiracy to possess with intent to distribute 28 or more grams of cocaine base (“crack cocaine”).
JOVAN SMITH’s criminal history includes multiple narcotics convictions, multiple assault convictions, and convictions for violation of a protective order and threatening.
On June 29, 2011, Joseph Smith pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base. On September 27, 2012, he was sentenced to 146 months of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force – which includes representatives of the FBI, Connecticut State Police and Hartford Police Department – and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorneys Brian P. Leaming and Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Hartford Man Sentenced to Five Years in Federal Prison for Distributing CrackRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that BRANDON BAILEY-SANTOUSE, also known as “Bo,” 27, of Hartford, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, law enforcement identified Errol Santouse, BAILEY-SANTOUSE’s cousin, as a significant distributor of crack cocaine in the Willimantic area. On five occasions in April and May 2012, Errol Santouse sold crack in quantities ranging from 3.5 grams to 42 grams to a cooperating witness and an undercover ATF agent. The investigation revealed that BAILEY-SANTOUSE supplied Santouse with the crack cocaine for some of these transactions.
BAILEY-SANTOUSE was arrested on June 28, 2012. On that date, he possessed approximately 50 grams of crack cocaine and a search of his residence revealed a scale with crack residue and narcotics packaging materials.
On December 13, 2012, SANTOUSE pleaded guilty to one count of possession with intent to distribute and distribution of 28 grams or more of cocaine base (“crack cocaine”).
Errol Santouse pleaded guilty to the same charge and, on November 27, 2012, he was sentenced to 60 months of imprisonment.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Hartford Police Department and the Willimantic Police Department. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Harrisburg Ambulance Company Pleads Guilty to Submitting False Statements to MedicareRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg-based ambulance company has pleaded guilty to multiple False Statement charges related to Medicare fraud.
Advantage Medical Transport, Inc, headquartered at 733 Fire House Lane, Harrisburg, pleaded guilty before U.S. District Court Judge Christopher C. Conner today to 14 Counts of False Statements in Health Care Matters, 18 USC 1035. Each Count is punishable by up to as much as a $500,000 fine. Serge Sivchuk, age 27, the sole owner of Advantage, appeared in court and entered the guilty pleas on behalf of the Corporation. The Government estimated the total loss to Medicare as a result of the fraud was approximately $740,000.
According to U.S. Attorney Peter J. Smith, Sivchuk and Advantage were indicted in January 2012 on multiple False Statement and Medicare Fraud charges. The Indictment alleged that between January of 2009 and June of 2011 Sivchuk and Advantage perpetrated a scheme to defraud Medicare by submitting hundreds of claims for the nonemergency transport of Medicare beneficiaries to and from dialysis treatment centers. The Indictment alleged the claims were fraudulent because the patients were ambulatory and the ambulance transports were not medically necessary.
The Indictment focused on an August 2010 audit conducted by Medicare and a June 2, 2011 search of Advantage’s business premises by federal law enforcement officers. In response to the audit Sivchuk submitted 14 ambulance Trip Sheets to Medicare that were prepared by Emergency Medical Technicians (EMTs) at the time of each ambulance transport. The Trip Sheets contained a narrative section that described the patient’s physical condition and ability to ambulate, and serve as the primary support document for each Medicare billed, ambulance transport claim. The June 2, 2011 search by the FBI and investigators from the Health and Human Services (HHS) Inspector General’s Office revealed Sivchuk did not submit the original trip sheets to the auditors but instead submitted copies that had been re-written and forged to conceal the fact the beneficiaries were ambulatory and capable of walking and standing.
During a February 22, 2013 court appearance before Judge Connor, Sivchuk plead guilty to one of the 14 False Statement Counts for which he was indicted, admitting he directed a subordinate to re-write and forge the signatures of two EMTs on a Trip Sheet pertaining to the ambulance transport of a dialysis treatment beneficiary on August 19, 2010. Sivchuk is currently awaiting sentencing and the completion of a pre-sentence report.Medicare paid Advantage approximately $166 for each leg of a transport to and from a dialysis treatment center, plus $5.49 per mile. Many dialysis patients underwent 3 treatments per week. Thus, one week’s transport of just one dialysis patient would yield Advantage more than $1,000.
Under the terms of Advantage’s plea agreement Judge Conner will determine the overall loss to Medicare. During the guilty plea proceeding Assistant U.S. Attorney Kim Douglas Daniel told the Court the government intends to show during the loss hearing that the total loss to Medicare was approximately $740,000. Daniel also noted that at the time the investigators executed the June 2, 2011 search warrant, the U.S. Attorney’s Office filed a civil action in federal court that froze more than $936,000 in Advantage and Sivchuk controlled bank accounts.
The case is part of a priority program within the U.S. Department of Justice and the U.S. Attorney’s Office focusing on Health Care Fraud and a joint investigation by the FBI and the HHS-Office of Inspector General. Anyone with information concerning suspected health care fraud should contact the FBI at 717-232-8686.
Guilty Verdict Returned in South Bend District CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana -- United States Attorney David Capp announced:
Robert E. Miller, 60, of South Bend, Indiana, was found guilty at trial on one count of tax evasion.According to the indictment filed by the government in this case, Miller willfully attempted to evade and defeat the payment of a substantial part of the income tax due and owing by him for the calendar years 1999, 2000, 2002, 2004, 2005, 2007, 2008 and 2009 in the cumulative amount of more than $150,000 by, among other things, failing to pay taxes due and owing despite having employment and substantial income; asking his employer not to make out checks to him in his name; avoiding the use of personal bank accounts and using Green Dot cards to conduct his financial business; and making several false statements to IRS personnel including falsely denying that he had income, falsely denying that he had a job, and falsely denying that he had a bank account. These charges were filed as the result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Grand Jury Returns Indictment Charging Manhattan Physician with Unlawfully Distributing Prescription DrugsRead the Press Release
TOPEKA, KAN. – A grand jury has returned an indictment charging a physician in Manhattan, Kan., with unlawfully distributing prescription drugs, U.S. Attorney Barry Grissom said today.
Physician Michael Schuster, 53, who operates Manhattan Pain and Spine in Manhattan, Kan., is charged with four counts: One count of conspiracy to illegally distribute controlled substances, one count of unlawful distribution of controlled substances, one count of unlawfully distributing controlled substances to a person under 21 years old and one count of maintaining a premises in furtherance of unlawful drug distribution.
The indictment alleges that Schuster employed unlicensed staff members who distributed controlled substances to patients using Schuster’s signature on prescriptions while he was traveling out of the state or out of the country. Schuster was out of the office when a total of 540 patients received prescriptions for medications including oxycodone, morphine, hydromorphone, methadone, oxymorphone, tapentadol, fentanyl, amphetamine, methylphenidate, hydrocodone, alprazolam, clonazepam, diazepam and zolpidem.
Schuster initially was charged in a criminal complaint filed April 23, 2013, in U.S. District Court in Topeka. According to an investigator’s affidavit, the investigation began early in 2012 when the Riley County Police Department received reports that Schuster was issuing prescriptions for high dosages of scheduled drugs based on minimal or cursory physical examinations.
The indictment returned today states that controlled substances may be dispensed and distributed lawfully by means of a prescription that is issued for a legitimate medical purpose by a practitioner acting in the usual course of professional practice. The practitioner must be registered with the Drug Enforcement Administration. Signing a blank prescription and having unauthorized, unlicensed individuals who are not registered with the DEA distribute controlled substances is not a lawful prescription.
The indictment alleges Schuster routinely pre-signed blank prescription forms with the intent that his unlicensed staff members would use them to issue controlled substances to patients while he was not at the clinic.Count 2 of the indictment alleges Schuster caused unlicensed staff using blank prescriptions to distribute controlled substances while he was out of the clinic at various locations including Russia, South Africa, Uruguay, Canada, New York, Chile, Argentina, Brazil and Israel.
Count 3 alleges that on June 16, 2010, Schuster caused oxycodone to be distributed to a person under the age of 21, who is identified in the indictment as Rex V.
Count 4 alleges that from April 2007 to August 2012 Schuster knowingly maintained a premises, his office at 1135 Westport Drive in Manhattan, Kan., for the purpose of unlawfully distributing controlled substances.
The indictment also seeks the forfeiture of all the proceeds from the crimes.
Upon conviction, the crimes carry the following penalties:
Conspiracy: A maximum penalty of 20 years in federal prison and a fine up to $1 million. If death or bodily injury results from the crime, the penalty is not less than 20 years.
Unlawful distribution of controlled substances: A maximum penalty of 20 years in federal prison and a fine up to $1 million. If death or bodily injury results from the crime, the penalty is not less than 20 years.
Unlawful distribution of controlled substances to a person under 21 years old: A maximum penalty of 20 years in federal prison and a fine up to $1 million. If death or bodily injury results from the crime, the penalty is not less than 20 years.
Maintaining drug involved premises: A maximum penalty of 20 years and a fine up to $500,000.Investigating agencies include the Riley County Police Department; the Federal Bureau of Investigation; the Department of Defense, Criminal Investigative Service (DCIS); the Department of Health and Human Services, Office of Inspector General (HHS-OIG); the Drug Enforcement Administration (DEA); the Department of Homeland Security - Homeland Security Investigations (DHS-HSI); and the Diplomatic Security Service (DSS).
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Frederick Paul Deputee, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Chief U.S. District Judge Richard F. Cebull, FREDERICK PAUL DEPUTEE, JR., a 25-year-old resident of Hardin and an enrolled member of the Crow Tribe, appeared for sentencing. DEPUTEE was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $6,130
DEPUTEE was sentenced in connection with his guilty plea to theft from an Indian organization.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors, one of which was DEPUTEE, were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees - one of which was DEPUTEE - assigned to projects as a monitor.
In the Summer of 2011 - from June to August - DEPUTEE was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DEPUTEE's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who, as Director of the CTHPO, had assigned DEPUTEE and others as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DEPUTEE maintained that he was authorized by his aunt to work as a monitor on the site and denied knowing that the money paid by the companies were tribal fees which should have been deposited with the tribal government. His aunt had no supervisory role at the CTHPO. DEPUTEE was convinced - based on the assurances given to him by his aunt - that he could act, and was participating in the CTHPO activities, as an independent contractor role and also received payment directly from GCM. He admitted, however, that he did not work the hours for which he billed the company and acknowledged the wrongfulness of billing for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DEPUTEE will likely serve all of the time imposed by the court. In the federal system, DEPUTEE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Former VA Employee Arrested, Charged with Filing False StatementsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Amelia Jackson, 43, of Rochester, N.Y., was arrested and charged by criminal complaint with knowingly making false material statements and certifications and knowingly concealing outside employment in connection with an application for and receipt of Federal Employee Compensation. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the defendant was employed at the VA Medical Center in Canandaigua, N.Y. On August 15, 2008, Jackson filed paperwork with the United States Department of Labor claiming to have suffered a back injury while working with a patient. Subsequent information provided by the defendant indicated that she was medically limited as to the number of hours she could work each day and did not work outside of her federal job due to her injury.
In January of 2012, a VA employee went to Last Call Liquors on East Main Street in Rochester and observed the defendant working in the store which investigators later determined that Jackson owns and operates. The defendant was observed on several occasions going to Last Call Liquors following her four hour disability shift at the VA.
Jackson was arraigned this afternoon before U.S. Magistrate Judge Marian W. Payson. She was released and is due back in court on June 26, 2013.
The complaint is the culmination of an investigation on the part of Special Agents of Jackthe United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert L. Panella, Special Agents of the United States Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes, and the VA Police Department, under the direction of Chief Jon Godfrey.
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.Former Tri City Bomber Gets 20 Years in Federal PrisonRead the Press Release
HOUSTON – Jeffrey Juarez, the one-time leader of the notorious Tri City Bomber (TCB) Street gang, has been sent to federal prison for his conviction of conspiracy to possess with intent to distribute cocaine and ecstasy, United States Attorney Kenneth Magidson announced today along with and Armando Fernandez, special agent in charge of the FBI’s San Antonio Division. Juarez entered a plea of guilty on Sept. 6, 2012.
Today, U.S. District Judge Gray Miller, who accepted the guilty plea, handed Juarez a 240-month term of federal imprisonment which will be followed by five years of supervised release.
“The punishment imposed today reflects our efforts to disrupt and dismantle an entire criminal enterprise up to and including its leadership,” said Magidson. “We will not waiver in our determination to diminish gang crime and hold those accountable for their illegal actions.
Juarez aka “Dragon” and “Tira,” 35, of Sugar Land, along with 12 fellow gang members were indicted February 2011 following a four-year long investigation. Following today’s hearing, all have now been convicted and sentenced.
Juarez led the TCB gang who made money by trafficking in cocaine and other drugs and by providing protection services for drug loads.
“Today's sentencing is a clear message to all organized crime leaders that the safety of our communities will always be more important than your criminal enterprise,” said Fernandez, “and that our team work will always prevail.”
In October 2008, Juarez agreed the gang would provide protection for loads of cocaine traveling through South Texas for money. Unknown to Juarez, however, the loads were controlled by the FBI. Thereafter, Juarez, aided by other members or associates of the TCB gang provided protection for eight loads of cocaine loaded into a vehicle by the FBI. Juarez was paid for his services after each load and each transport was monitored by video and audio recording.
During this same time frame, Juarez sold approximately 388 Ecstasy pills to an FBI confidential source on numerous occasions.
The TCB gang was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. An organized group with mandatory specific rules and regulations knows as “Las Reglas” to endure loyalty and participation of gang members in criminal activity, the TCB also has a decision making hierarchy including a person in charge in each city and persons holding positions within the organization including president, generals, captains, lieutenants, sergeants, soldiers and prospects. “Prospects” are those in the process of becoming TCB members. Non-members who do business with or perform work for the TCB are referred to as “associates.”
TCB membership is for life and many of the members have tattoos such as “TCB,” a necklace tattoo made of small bombs, a 1939 Chevy Bomb car, three high-rise buildings or “39” which present their membership and allegiance to the TCB. Members pay monthly fees to support incarcerated members and to further the illegal activity of the gang.
Juarez has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This investigation was led by agents and officers from the FBI assisted by the United States Border Patrol, Hidalgo County Sheriff’s Department, Texas Department of Public Safety, McAllen Police Department and Mission Police Department. Assistant United States Attorneys Tim S. Braley and Mark Donnelly prosecuted the case.
Former Texas State Parole Officer Sentenced<br /> for Taking Bribes from Assigned ParoleeRead the Press Release
A former Texas state parole officer was sentenced to 20 months in prison today for taking bribes from one of her assigned parolees in exchange for not reporting his parole violations, announced Acting Assistant Attorney General Mythili Raman of the Department of Justice’s Criminal Division.
Nichelle Derricks, 38, of Cedar Hill, Texas, pleaded guilty on Jan. 22, 2013, to one count of honest services wire fraud in the Northern District of Texas.
According to court documents, while serving as a Texas Department of Criminal Justice (TDCJ) parole officer, Derricks and one of her assigned parolees developed an improper relationship in which Derricks secretly used her official position with TDCJ to enrich herself and others by soliciting and receiving cash payments, gifts, furniture, household goods and items, food and beverages and other things of value from the parolee in exchange for favorable official action benefitting the parolee. The scheme was conducted without the authorization, knowledge or approval of TDCJ and contrary to TDCJ procedures and requirements.
Derricks admitted she repeatedly failed to report the parolee for violating the terms of his parole, including, among other things, failing to report him for traveling outside Texas without prior, written approval and for engaging in prohibited financial transactions.
The case was investigated by the FBI’s Dallas Field Office, with assistance from the U.S. Secret Service and the TDCJ Office of Inspector General. The case is being prosecuted by Trial Attorneys Edward P. Sullivan of the Justice Department Criminal Division’s Public Integrity Section.
Former St. Joseph’s Hospital Employee Pleads Guilty to EmbezzlementRead the Press Release
SYRACUSE, NY –United States Attorney Richard S. Hartunian announced that BONNIE SIMSON, 41, of Manlius, NY entered a plea of guilty in U.S. District Court in Syracuse on April 30, 2013, to an indictment charging her with one count of embezzlement from a program receiving federal funds, in violation of Title 18, United States Code, Section 666(a)(1)(A).
Ms. Simson faces a maximum term of imprisonment of 10 years, a fine of $250,000 and a term of supervised release of three years. From December of 2000 until March, 2011, Simson was employed as the manager of the Patient Telephone and Television Services Program ("PTTSP") at St. Joseph's Hospital in Syracuse, New York. During that time, Simson stole currency from envelopes containing payments made by individual patients to the PTTSP and then inaccurately reported the amount of currency payments made by the patients in order to conceal her embezzlement. The government has charged that Ms. Simson embezzled in excess of $800,000, but Ms. Simson maintains that the amount of stolen funds is lower. The amount of stolen funds will be determined at sentencing.
This case resulted from an investigation conducted by the Electronic Crimes Task Force staffed by members of the United States Secret Service, Syracuse Resident Office, and Syracuse Police Department. The case is being prosecuted by Assistant U.S. Attorney Gwendolyn Carroll. Sentencing is currently set for September 13,2013 at 10:00 in Utica, New York.
All press inquiries may be made to Executive Assistant United States Attorney John G. Duncan, who may reached at (315) 448-0672.
Former Resident of Hudson County, N.J., Admits Defrauding Hospitalized, Elderly WidowRead the Press Release
CAMDEN, N.J. – A former Hudson County, N.J., resident admitted today that he defrauded an elderly woman of approximately $279,000 while she was hospitalized for cancer treatment, U.S. Attorney Paul J. Fishman announced.
Ralph Cozzino, 43, of North Bergen, N.J., pleaded guilty today before U.S. District Judge Robert B. Kugler in Camden federal court to Count One of the Indictment charging him with mail fraud.
According to the documents filed in this case and statements made in court:
Cozzino admitted to stealing stock certificates from the elderly victim’s apartment. Cozzino then presented the stolen stock certificates to the victim’s stock transfer agent, along with a fraudulent power of attorney bearing the victim’s name, address, Social Security number and forged signature, which purported to grant him control over the victim’s financial affairs, including the power to redeem and/or sell stock.
Cozzino instructed the stock transfer agent to transfer ownership of the stolen stocks into Cozzino’s name and to liquidate certain shares of stock for his benefit. Cozzino caused the stock transfer agent to send him the proceeds of the liquidated shares, which he deposited into bank accounts that he controlled and spent the funds on various personal expenditures, including a 2006 Nissan, Lasik eye surgery, as well as a down payment, closing costs, and furniture for a new house. From April 2006 until October 2007, Cozzino liquidated, and converted to his own use, approximately $279,000 in stolen shares belonging to the victim.
The mail fraud count to which Cozzino pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Aug. 14, 2013.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge of the Newark Division Maria Kelokates, for the investigation leading to today’s guilty plea.
The Government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
13-181
Defense counsel: J. Michael Farrell Esq., Wenonah, N.J.Cozzino Indictment
Former Police Officer Sent to Prison on Gun ChargesRead the Press Release
BROWNSVILLE, Texas – Armando Duenez, 31, has been ordered to federal prison following his convictions for conspiracy to export firearms and failure to appear, United States Attorney Kenneth Magidson announced today. Duenez, who pleaded guilty Jan. 30, 2013, was employed as a police officer with the Rio Hondo Police Department during the offense.
Today, U.S. District Judge Hilda G. Tagle, who accepted the guilty plea, handed Duenez a sentence of 60 months for the firearms charge and 60 months for failing to appear as ordered. A portion of the sentences will be served consecutively for a total sentence of 64 months. He was further ordered to serve three years of supervised release following completion of the prison term. In handing down the sentence, Judge Tagle also ordered Duenez perform 150 hours of community service upon his release from prison.
The former officer entered into an agreement with others to export weapons from the United States to Mexico. Duenez admitted to working with Raymond Martinez, formerly a member of the Palm Valley Police Department, to buy firearms and sell them for a profit to individuals who intended to smuggle them to Mexico. Duenez admitted to purchasing more than 15 semi-automatic rifles that were later sold in Mexico. The rifles were all capable of accepting high capacity magazines. The investigation began when weapons recovered in Mexico were traced back to him. Martinez was also convicted of dealing in firearms without a license and later sentenced to federal prison.
Duenez was arrested for the firearms offense in July 2008. After being release on bond, Duenez failed to appear for his arraignment having fled to Mexico. Duenez remained in Mexico until he surrendered to United States Marshals Service in December 2012.
Duenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Bill Hagen.Former NFL Player Sentenced to Seventeen Years in Federal Prison for Role in Drug Trafficking ConspiracyRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced John Wesley Wilson (48, Zephyrhills), a former wide receiver for the Washington Redskins, to 17 years in federal prison for drug trafficking and firearms offenses. He pleaded guilty on January 18, 2013. The imposed sentence includes 12 years' imprisonment for three drug-related charges, followed by a mandatory consecutive five years in prison for possessing a firearm in furtherance of drug trafficking offenses.
According to court documents, from 2009 to 2012, Wilson regularly worked with others in Pasco County to distribute large quantities of cocaine and crack cocaine. In 2009, during the height of his drug trafficking operations, Wilson distributed approximately 100 kilograms of cocaine per month, and profited over $1 million. During a search of Wilson's residence on December 19, 2011, investigators found a quarter-kilogram of cocaine, over an ounce of crack cocaine, a loaded .380 caliber handgun, and a loaded shotgun.
This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff's Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Former Maury County, Tennessee Correction Officerpleads Guilty to Conspiring to Bring Contraband into the JailRead the Press Release
Former Maury County Correction Officer Derek Wayne Turner, 38, of Mt. Pleasant, Tenn., pleaded guilty yesterday in U.S. District Court to charges of conspiring to introduce contraband and controlled substances into a jail, in exchange for cash payments, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.Turner was indicted by a federal grand jury on October 25, 2012, along with Maury County Jail inmates Benjamin R. Bradley, 35, and James E. Pierce, 40, Bradley’s mother, Linda Chapman, 52, of Columbia, Tenn. and Melinda A. Buie, 41, of Mt. Pleasant, Tenn. and charged with conspiracy to introduce contraband and controlled substances, including tobacco and scheduled drugs, into a jail, between February - June 2011.
Turner’s sentencing hearing is scheduled for July 25, 2013, before U.S. District Judge Aleta A. Trauger. Linda Chapman pleaded guilty on April 25, 2013, and is scheduled to be sentenced on July 18, 2013. Both face a maximum penalty of 66 months in prison and a $255,000 fine.
This case was investigated by the FBI, the Tennessee Bureau of Investigation and the Maury County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Darryl A. Stewart.
The charges against Bradley, Buie and Pierce are still pending. An indictment is merely a charge and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.Former Executive of French Power Company Subsidiary <br /> Charged in Connection with Foreign Bribery SchemeRead the Press Release
A former executive of the U.S. subsidiary of a French power and transportation company was charged in a superseding indictment for his alleged participation in a scheme to pay bribes to foreign government officials, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Connecticut David B. Fein and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office announced today.
William Pomponi, 65, a former vice president of sales for the Connecticut-based U.S. subsidiary, was charged in a superseding indictment late yesterday in the District of Connecticut with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and to launder money, as well as substantive charges of FCPA and money laundering violations.
On April 16, 2013, charges against Frederic Pierucci and a guilty plea by David Rothschild in connection with the bribery scheme were announced. Pierucci is charged in the superseding indictment with Pomponi. On Nov. 2, 2012, Rothschild pleaded guilty to a criminal information.
According to the charges, the defendants, together with others, paid bribes to officials in Indonesia, including a member of Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia, in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for the company and its consortium partner to provide power-related services for the citizens of Indonesia. The charges allege that, in order to conceal the bribes, the defendants retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. In reality, however, the primary purpose for hiring the consultants was allegedly to use the consultants to pay bribes to Indonesian officials.
The first consultant retained by the defendants allegedly received hundreds of thousands of dollars into his Maryland bank account to be used to bribe the member of Parliament, according to the charges. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to court documents, emails between Pomponi, Pierucci, Rothschild and their co-conspirators discuss in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project. However, when Pomponi, Pierucci and others determined that the first consultant was not effectively bribing key officials at PLN, they allegedly retained a second consultant to accomplish that purpose. The charges allege that the power company deviated from its usual practice of paying consultants on a pro-rata basis in order to make a much larger up-front payment to the second consultant so that the consultant could “get the right influence.” An employee at the power company’s subsidiary in Indonesia sent an email to Pomponi, Pierucci and others asking them to finalize the consultancy agreement with the front-loaded payments but stated that in the meantime the employee would give his word to a high-level official at PLN, according to the charges.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The substantive FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The substantive money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut. The case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad, with assistance from the Meriden, Conn., Resident Agency of the FBI. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and the department has also worked closely with its law enforcement counterparts in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission) and deeply appreciates KPK’s assistance in this matter.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related Materials:
Superseding Indictment
Former Bronx Child Care Employee Pleads Guilty to Production of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOSHUA CONDE, a former employee of a child care and after-school program in the Bronx, pled guilty to producing and causing the production of numerous pornographic images of a child victim. He pled guilty in Manhattan federal court this afternoon before U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “Joshua Conde, a man who was entrusted with the care of children, engaged in the worst possible kinds of child exploitation – sexual victimization and the creation and distribution of child pornography. He has now pled guilty and admitted these terrible crimes, and will no longer be in a position to harm other children.”
According to the Complaint, the Superseding Indictment, CONDE’s plea agreement, statements made in court proceedings, and other public documents:
CONDE was initially arrested in May 2012 after a joint U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”) and New York City Police Department (“NYPD”) investigation determined that he had possessed child pornography that had been downloaded from the Internet and saved onto his computer. The investigation also determined that he had distributed child pornography over the Internet using file-sharing software. During a search of his residence conducted at the time of his arrest, a computer and several additional electronic devices containing images and videos of minor children engaging in sexually explicit conduct were seized. CONDE was charged with three counts of transporting or distributing child pornography, and one count of possessing child pornography. He was released on bail over the Government’s objection.
In August 2012, the Government again sought to have CONDE detained on the basis of new information developed during the course of the investigation. Law enforcement officers recovered pornographic images of a young girl from the computer and related devices seized from CONDE at the time of his arrest that appeared to have been taken in his bedroom. Based on that newly-developed information, U.S. District Judge Kathleen Forrest ordered CONDE remanded, finding, after a review of some of the photographs in question, that the “defendant somehow managed to lure children into his bedroom” where he took the newly discovered pictures which were “without a doubt pornographic.”
CONDE was subsequently charged with one count of sexual exploitation of a minor for his role in using, persuading, inducing, and enticing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. In addition to his role in producing these images, CONDE has since admitted, as a condition of his plea agreement with the Government, to sexually abusing the victim in question.
CONDE, 27, of Bronx, New York, pled guilty to one count of sexual exploitation of a minor. He faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, a maximum term of supervised release for life, and a fine of up to $250,000. He will also be subject to a restitution order to be imposed by the Court at sentencing. CONDE is scheduled to be sentenced by Judge Gardephe on August 13, 2013 at 2 p.m.
Mr. Bharara praised the outstanding investigative work of ICE HSI and the NYPD. He added that the investigation is continuing.
This prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Edward B. Diskant is in charge of the prosecution.
ICE HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. This hotline is staffed around the clock by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at (800) 843-5678 or http://www.cybertipline.com.
Conde, Joshua S1 Indictment
Financial Consultant Charged with FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of criminal charges Tuesday against August John Stile, Jr. age 49, of Hughestown, Pennsylvania.
According to United States Attorney Peter J. Smith, the Criminal Information alleges that between 2007 and January 2011, Stile devised and executed a scheme to defraud private investors of money by fraudulently offering short term investment opportunities based upon a promise of a return of the investment with substantial interest in less than 90 days. Stile allegedly defrauded the investors of approximately $310,000.
Stile was allegedly the purported Vice President of JFC Group and the President of Stile Consulting. JFC Group had an office in Dickson City, Pennsylvania, and Stile Consulting had its office in Exeter, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation. Prosecution has been assigned to Assistant United States Attorney John Gurganus.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 140 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.