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12 June 2013
Internist Admits Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – A Somerset County doctor practicing internal medicine at Newark Community Health Center, where she is the clinical director, today admitted receiving cash kickbacks for diagnostic testing referrals of her patients, U.S. Attorney Paul J. Fishman announced.
Padma Siripurapu, 46, of Belle Mead, N.J., pleaded guilty to an information charging her with one count of soliciting and receiving more than $50,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.
According to documents filed in this case and statements made in court:
From 2009 through December 2011, Siripurapu agreed with representatives of the diagnostic center Orange Community MRI LLC (Orange MRI) that Orange MRI would pay her a set amount of cash for every MRI, CAT scan, ultrasound, echocardiogram, and DEXA scan she referred. Siripurapu referred patients for more than a thousand of these tests during that time period and was paid a per-test amount for those referrals.
Siripurapu admitted that on Nov. 2, 2011, she received $3,600 in cash from a government informant at her doctor’s office in Newark in exchange for referrals. On Nov. 17, 2011, again at her office in Newark, Siripurapu received another kickback for patient referrals, this time $3,450 in cash.
The anti-kickback charge carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Oct. 9, 2013.Siripurapu is the twelfth person in the government’s investigation of Orange MRI and its corrupt referring doctors to plead guilty. Nine health care providers to have pleaded guilty to receiving kickbacks have agreed to forfeit $325,300 in illegal kickbacks from Orange MRI. The two other defendants, Ashokkumar Babaria, Orange MRI’s former medical director, and Chirag Patel, Orange MRI’s former executive director, have agreed to forfeit their corrupt gains. Babaria agreed to forfeit his revenues traceable to corrupt referrals, which the government has estimated could reach as much as $2 million. Patel has forfeited $89,180. The remaining defendants charged in the investigation are charged by complaints or indictments at this time.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, as well as criminal investigators with the U.S. Attorney’s Office’s criminal investigator program, for the investigation leading to today’s guilty plea.
The case is being prosecuted by Assistant U.S. Attorneys Joseph Mack and Scott B.
McBride of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.13- 242
Defense counsel: Bruce A. Levy Esq. and Lawrence S. Lustberg Esq., Newark
Siripurapu Information
Inmates Sentenced for Assaulting Fellow InmateRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that A’bleza Skyler Oakie, 24, of Sioux Fall, S.D., and Shannon Fernando Lewis, 27, of Sells, Ariz., were sentenced Monday by U.S. District Judge Dee D. Drell, to five years and six months in prison, respectively, for assaulting a fellow inmate. Oakie was also ordered to serve three years and Lewis one year of supervised release following incarceration.
According to evidence presented at the guilty plea, Oakie and Lewis entered the cell of an inmate on Oct. 28, 2011, while incarcerated at the Federal Penitentiary in Pollock, La. After they left the cell, the inmate was seen staggering out. It was determined that the inmate suffered severe injuries and was sent to various medical centers for treatment. The inmate remains in medical care because of the injuries he sustained.On March 4, 2013, Oakie pleaded guilty to assault and Lewis pleaded guilty to misdemeanor assault. Oakie is currently serving a manslaughter sentence, and Lewis is serving a murder sentence. The prison time for the assault charges will run consecutive to the charges they are now serving, and the supervised release will run concurrent.
The FBI-Alexandria, La., Resident Agency, and the Federal Bureau of Prisons conducted the investigation. Senior Litigation Counsel Joseph G. Jarzabek and Special Assistant U.S. Attorney Robert J. France prosecuted the case.
Husband and Wife Charged with Short Sale FraudRead the Press Release
LAS VEGAS, Nev. – A husband and wife who worked in the real estate profession in southern Nevada, have been charged in U.S. District Court in Las Vegas with conspiracy and fraud for making false statements to Wells Fargo Bank in order to get it to approve a short sale on their home, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Cynthia Hosbrook, 41, currently a licensed real estate agent in Nevada, and Robert Hosbrook, 51, formerly a licensed real estate agent in Nevada, both of Henderson, are charged in a criminal indictment dated June 12, 2013, with one count of conspiracy to commit bank fraud and one count of bank fraud.
According to the indictment, the Hosbrooks allegedly solicited a relative to act as a straw buyer for their residence at 2704 Mallard Landing in Henderson. In a short sale contract dated March 2, 2010, and in other paperwork submitted to Wells Fargo Bank, the Hosbrooks falsely represented that the sale of their home would be an arms length transaction, that it was between two unrelated parties, that no party to the contract was a family member or business associate, that there were no agreements that the seller would remain in the property as a renter, and that the short sale did not constitute straw buying, when they allegedly knew that they were selling the residence to a relative and a straw buyer. The Hosbrooks also allegedly caused the relative/straw buyer to falsely sign a title company form on July 9, 2010, stating that the relative would be residing at the property, which the Hosbrooks knew was a false and fraudulent representation.
Cynthia Hosbrook and Robert Hosbrook have been summoned to appear for an initial hearing and arraignment on June 21, 2013, at 3:00 p.m. before U.S. Magistrate Judge Carl W. Hoffman. If convicted, they face up to 30 years in prison and fines of up to $1 million on each count.
The case is being investigated by the Federal Housing Finance Agency Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney J. Gregory Damm.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Hardin County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A39-year-old Silsbee, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Eric LaPaul Harper pleaded guilty on Jan. 17, 2013, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, in May 2011, Harper was stopped for a traffic violation in Liberty County, Texas after he was intercepted on a wiretap ordering 6 ounces of methamphetamine. Harper received the methamphetamine in Conroe, Texas and was stopped while returning to Silsbee. A search during the traffic stop revealed 165.8 grams of methamphetamine. Additional surveillance revealed Harper’s involvement in the conspiracy to be much larger as he was recorded ordering and distributing other quantities of methamphetamine on numerous telephone conversations. A federal grand jury returned an indictment on Mar. 7, 2012, charging Harper with federal violations.
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint 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.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Michelle Englade.
Gregg County Man Sentenced for Possessing Stolen FirearmRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 52-year-old Longview, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kym David Pearce pleaded guilty on Feb. 8, 2013 to possession of a stolen firearm and was sentenced to 120 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on May 20, 2012, a federal warrant was executed for Pearce’s arrest at his residence on Virgie Street in Longview, Texas. As Pearce was being arrested, Gregg County CODE agents observed several firearms in the residence. A search of the residence resulted in the discovery of eight firearms and several rounds of ammunition. Pearce admitted that he knew at least one of the firearms in his residence was stolen. Pearce was indicted by a federal grand jury on Oct. 3, 2012
This case was investigated by the Gregg County Organized Drug Enforcement (CODE) Unit, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.Goochland Man Sentenced to More Than 17 Years for Production of Child PornographyRead the Press Release
RICHMOND, Va. – Adam Hobart Stanley, 35, of Manakin-Sabot, Virginia, was sentenced today to 210 months’ imprisonment in U.S. District Court after pleading guilty to one count of production of child pornography. Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after Stanley was sentenced by United States District Judge John A. Gibney.
Judge Gibney additionally ordered Stanley to pay $205.21 in restitution to the victim. He will also be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school.
According to court documents, Stanley sexually abused a 12-year-old child whom he babysat during 2012, and used a hidden video camera to produce a child pornography video of that abuse. Additional evidence revealed that Stanley had distributed child pornography videos and images over a peer-to-peer network on the Internet and had also saved hundreds of videos and images of child pornography on various computers and computer media.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation Innocent Images Task Force. Special Assistant United States Attorney Gene Fishel of the Virginia Attorney General’s Office prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.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 http://pacer.uspci.uscourts.gov.
# # #Ft. Lauderdale Ponzi Schemer Sentenced to 12 Years’ ImprisonmentRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the sentencing of George Elia, 69, formerly of Fort Lauderdale. United States District Judge Kathleen Williams sentenced Elia to 12 years’ imprisonment, followed by 3 years of supervised release.
According to evidence presented during the trial and sentencing, George Elia, and his conspirator James “Jim” Ellis, 70, also of Fort Lauderdale, operated a Ponzi scheme. Elia guaranteed that investor money was safe, and that he had high rates of returns from his day trading of stock, including Facebook stock. In late 2011, however, payments to investors became irregular, investors filed civil lawsuits against Elia, and in January 2012, Elia sold his home, shipped his belongings to his native Cyprus, and fled. He was arrested returning to Las Vegas with his wife in March 2012.
As a result of his scheme, approximately 50 victims lost approximately $10 million after investing with Elia. Elia used investor money to purchase two Bentleys, a Rolls Royce, approximately $500,000 in jewelry, and Chanel and Hermes jewelry.
On April 30, co-conspirator Ellis was sentenced to 38 months in prison by U.S. District Judge Williams.
Mr. Ferrer commended investigative efforts of the FBI and the cooperation of the Securities and Exchange Commission. This case is being handled by Assistant U.S. Attorneys H. Ron Davidson and Wilfredo Fernandez.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four E. Idaho Residents Arrested in Connection with Illegal Gun Possession and SalesRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced the arrest this week of four Eastern Idaho residents on federal firearms violations and methamphetamine distribution charges. Marilee Taylor Love, 44, of Terreton, Rodney Lewis Hall, 54, of Lewisville, Harold Thomas Barker, 58, of Rexburg, and Gary Wallace Hoffman, 50, of Rigby, were indicted by a federal grand jury on May 29, 2013. The defendants are scheduled to be arraigned in United States District Court in Pocatello at 1:00 p.m. MDT, on June 13, before U.S. Magistrate Judge Ronald E. Bush.
Indicted together, Love and Hall are charged with conspiring to distribute and possess with intent to distribute methamphetamine and marijuana between February 2011 and February 2012. The two are also charged with three counts of distributing methamphetamine and unlawful possession of a firearm silencer. Love is additionally charged with two counts of unlawfully selling firearms to a person she knew was prohibited from legally possessing firearms.
Barker is charged with unlawfully possessing a sawed-off shotgun, distributing methamphetamine on two occasions, and four counts of unlawfully selling firearms to a person he knew was prohibited from legally possessing firearms.
Hoffman, convicted of felony possession of methamphetamine in 2004 in Bonneville County, Idaho, is charged with unlawfully possessing three firearms between May and October 2012, and with distributing methamphetamine. Hoffman is prohibited from possessing firearms due to his prior conviction.
If convicted, Love, Hall, Barker, and Hoffman each face up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
The three cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Federal Bureau of Investigation, the Idaho State Police, the Madison, Fremont, Jefferson, and Bingham County Sheriff’s Offices, the Rexburg Police Department, Rigby Police Department, Blackfoot Police Department, and the Drug Enforcement Administration.
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.
Fort Polk Man Pleads Guilty to Second Degree Murder, Attempted MurderRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Marcus Patterson Carey, 28, of Fort Polk, La., pleaded guilty before U.S. District Judge Patricia Minaldi to second degree murder of one soldier and attempted murder of another soldier at the Fort Polk Military Reservation.
According to evidence presented at the guilty plea, Carey admitted that on June 19, 2010 he killed one victim at Fort Polk by striking the person with a hammer and stabbing the person multiple times. He also admitted to attempting to kill a second person by striking that person with a hammer and stabbing that person multiple times.
Sentencing is scheduled for Sept. 19, 2013. The U.S. Army Criminal Investigation Command and the FBI conducted the investigation. United States Attorney Stephanie A. Finley and Assistant U.S. Attorney Daniel J. McCoy are prosecuting the case.
Fort Dodge Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 11, 2013, to 10 years in federal prison.
Troy Fulkerson, 42, from Fort Dodge, Iowa, received the prison term after a January 15, 2013, guilty plea to one count of conspiracy to distribute methamphetamine and one count of possessing with intent to distribute methamphetamine.
At the guilty plea, Fulkerson admitted his involvement in a conspiracy from about 2011 through October 2012 that distributed more than 150 grams of actual (pure) methamphetamine in the Fort Dodge, Iowa, area. Fulkerson also admitted to distributing more than 19 grams of methamphetamine during four separate transactions to individuals cooperating with law enforcement. On October 1, 2012, law enforcement officers executed a search warrant at Fulkerson’s residence, and seized over 30 grams of actual (pure) methamphetamine which Fulkerson admitted he planned to distribute to others. At the time the search warrant was executed, Fulkerson resided within 1000 feet of a protected location, the Holy Rosary School Park in Fort Dodge.
Fulkerson was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Fulkerson was sentenced to 120 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Fulkerson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Clay County Sheriff’s Office, Story County Sheriff’s Office, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3049.
Former Toy Company Owner Sentenced for Failing to Pay over Federal Employment TaxesRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, the former owner of a toy company in Edina was sentenced for failing to pay over federal employment taxes. United States District Court Judge Paul A. Magnuson sentenced Kim Robert Calkins, former co-owner of Princess Soft Toys, Inc., to 12 months and one day in federal prison on one count of failure to pay federal employment taxes. Calkins was charged on September 11, 2012, and pleaded guilty on September 26, 2012.
In his plea agreement, Calkins admitted that from the third quarter of 2008 to the final quarter of 2010, he failed to pay to the Internal Revenue Services (“IRS”) the employment taxes withheld from employees of Princess Soft Toys. Despite receiving regular notices that the employment taxes were still due, Calkins neglected to pay the amount owed. The total tax loss in this case is $852,361.54.
This case was the result of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Nicole A. Engisch.In a related case, on February 8, 2012, Judge Magnuson sentenced Calkins’ wife and former co-owner of Princess Soft Toys, Sandra Lee Calkins, to 66 months in federal prison for defrauding Central Bank and 42 investors out of approximately $9 million. She was charged on April 29, 2011, and pleaded guilty on May 26, 2011.
In her plea agreement, Calkins admitted that between January of 2008 and March 5 of 2010, she falsified financial statements regarding the company in order to renew a $3.25 million line of credit at Central Bank. She specifically admitted including false information relative to revenue and net assets. As a consequence of the fraud, the credit line was renewed, and she made multiple draws against it, totaling $3,575,000. Central Bank suffered a loss of approximately $1.6 million because of her criminal behavior.
Calkins also admitted that between January of 2008 and 2010, she defrauded individuals into investing or loaning money to Princess Soft Toys through false financial statements or other misrepresentations. The total losses to individual investors exceeded $7 million.
This case was also the result of an investigation by the Federal Bureau of Investigation and the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Tim Rank.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Former School Committee Member, and Boy Scout Leader, Pleads Guilty to Charges of Child Sexual ExploitationRead the Press Release
BOSTON – A Whitinsville lawyer, who was also a Boy Scout troop leader and part time middle school instructor, was convicted today in U.S. District Court in Worcester of charges that he used the internet to entice minors to engage in unlawful sexual conduct and that he possessed child pornography.
Andrew Jonathan Myers, 34, of Whitinsville, Mass., pleaded guilty before U.S. District Judge Timothy S. Hillman to four counts of using the internet to entice, persuade, or induce a minor to engage in unlawful sexual conduct and of possessing child pornography.
Between July 13, 2012 and July 23, 2012, Myers communicated with a twelve year old Colorado boy, identified as juvenile victim 1 (JV-1), over the internet, first via email, and then via Skype. During the course of the communications with JV-1, Myers told JV-1 that he was attractive, directed JV-1 to websites where child pornography could be found, and offered to “find” JV-1 “a place to sleep” if JV-1 came to Massachusetts. Throughout the communications, Myers repeatedly solicited JV-1 to take off his clothes and masturbate over the Skype video streaming service.
On May 7, 2012, May 9, 2012, and June 28, 2012, Myers sent sexually explicit emails to three minors with whom he was acquainted, identified as JV-2 (age 13), JV-3 (age 11), and JV-4 (age 14), in which Myers proposed to perform oral sex on the minors. Myers had served as a substitute school teacher for JV-2 and JV-3, and had been the Troop leader for JV-4's scout troop.
Finally, the evidence would have proven that a computer and an external hard drive seized from Myers’ residence at the time of his arrest contained in excess of 600 videos depicting child pornography including an electronic video recording of a Skype video chat between Myers and a minor identified as JV-5, a 13-year-old South Carolina resident, in which JV-5 is depicted engaging in sexually explicit conduct.
Sentencing is scheduled for September 9, 2013. Pursuant to a plea agreement with the government, Myers faces a sentence of between 15 to 21 years in prison, followed by 10 years of supervised release.United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; District Attorney Joseph Early of Worcester County; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Walter J. Worhol of the Northbridge Police Department; and Chief Kenny Powell of the Millbury Police Department made the announcement today. This was a joint investigation that was initiated by the Larimer County Sheriff’s Office who discovered Myers’ alleged conduct and provided the information that led to both Myers’ identification and these federal charges. The case is being prosecuted by Assistant U.S. Attorney Mark J. Grady of Ortiz’s Worcester Office.
Former Quincy Man Sentenced to Tax Evasion Schemes and Theft from Federal Housing ProgramRead the Press Release
BOSTON – A former Quincy man, now living in New Hampshire, was sentenced yesterday for carrying out two elaborate tax evasion schemes and theft of federal housing assistance funds.
Raymond C. Stebbins, 70, of Manchester, NH, was sentenced by U.S. District Judge George A. O’Toole, Jr. to three years in prison, to be followed by two years of supervised release and restitution to the Internal Revenue Service and the U.S. Department of Housing & Urban Development. In March 2013, Stebbins pleaded guilty to two counts of conspiracy, five counts of tax evasion, two counts of making false statements and theft of public money.Stebbins was engaged in two ten-year long schemes – first, a false invoice scheme aimed at evading the ascertainment and assessment of income taxes and, second, a Section 8 housing fraud scheme.
In 2000, Christopher McGadden, the General Manager of Xcel Fire Protection, a fire protection indoor sprinkler business, engaged in a false invoice/tax evasion scheme with Stebbins. Stebbins purportedly owned numerous businesses, among them a trucking company, a moving company, a real estate company, and two or more business equipment resale companies. Stebbins prepared and sent bogus invoices in the names of the companies he purportedly owned to Xcel. The invoices falsely reflected that one of the Stebbins’ companies had provided goods or services to Xcel when they had not. Knowing the invoices were bogus, McGadden authorized Xcel to pay the invoices by check. Stebbins then deposited the Xcel checks into various bank accounts he had opened, structuring the withdrawals of funds from those accounts. Thereafter, Stebbins gave McGadden 90 percent of the proceeds of those checks in cash and kept 10 percent for himself. In addition, McGadden caused Xcel’s customers to write checks directly in the name of one of Stebbins’ companies. Stebbins deposited those checks in to his bank account and did the same 90/10 split with McGadden. Neither Stebbins nor McGadden paid the proper income taxes on the $490,000 they took from Xcel checks and certain Xcel customer checks.
In a second conspiracy, starting in December 1999, Stebbins conspired with another individual, identified as FV, to defraud the IRS. Stebbins carried out a nearly identical false invoice tax evasion scheme in which the two men fraudulently diverted more than $3.3 million in funds rightfully belonging to FV’s construction company based in Nashua, NH. This scheme, although larger in scope, worked virtually identically to Stebbins’ scheme with McGadden. Neither Stebbins nor FV paid the proper income taxes on the money they took from FV’s company checks.
For the tax years 2005 through 2009, Stebbins attempted to evade a large part of income tax he owed to the IRS by filing erroneous returns which under-reported his income.
Furthermore, Stebbins made false statements to the U.S. Department of Housing and Urban Development when applying for the Section 8 Housing Assistance Program which provides housing assistance payments to people who need rent subsidy in order to obtain adequate housing.
Beginning in December 1997, Stebbins represented to HUD that he was unable to afford adequate housing. As a result, Stebbins received Section 8 benefits from June 1998 through May 2008. During this time, HUD periodically attempted to establish Stebbins’ continued eligibility for Section 8 benefits, and the level of those benefits, by sending him annual re-certification forms which requested information concerning his household income level and assets. Stebbins filled out the forms with false entries that under-reported his household income and assets. At the time he was receiving Section 8 benefits from HUD, Stebbins was an approved Section 8 housing assistance landlord for two multi-family properties, one in Quincy and another in Nashua, NH. Between January 1, 2002 and May 31, 2008, Stebbins effectively stole money from HUD in the form of Section 8 housing payments that he was not entitled to.
Judge O’Toole ordered Stebbins to report to the U.S. Marshal’s Office in Boston to begin serving his sentence on June 18, 2013.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Cary Rubenstein, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Diane Freniere of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Postmaster Indicted for Stealing Postal FundsRead the Press Release
MINNEAPOLIS—Recently in federal court, the former postmaster of the Marble Post Office in Itasca County was indicted for stealing funds from the office. On June 10, 2013, Jill Marie Rousse, age 39, of Calumet, was charged with one count of misappropriation of postal funds and one count of unlawful issuance of postal money orders.
The indictment alleges that between August 2011 and October 2012, Rousse stole money from the post office by either directly taking cash from the cash drawer or issued money orders in her name. In addition, Rousse falsified reporting documents regarding the sale of money orders and postage in order to conceal her theft.
If convicted, Rousse faces a potential maximum penalty of ten years in prison on the misappropriation count and five years on the unlawful issuance count. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Former Maverick County Solid Waste Authority General Manager Hector Chavez and Maverick County Contractor Jose Telles Enter Guilty PleasRead the Press Release
Former Maverick County Solid Waste Authority general manager and chief executive officer of the Maverick County landfill Hector Chavez, Jr., faces up to ten years in federal prison, a fine of up to $250,000 and restitution to the County after pleading guilty to theft concerning programs receiving federal funds announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before U.S. Magistrate Judge Victor Garcia this morning in Del Rio, Chavez admitted that from March 9, 2012, to December 28, 2012, he pocketed over $62,000 in forged Maverick County checks he drafted himself.
Also this morning before Judge Garcia, general contractor Jose Telles, Jr., of Eagle Pass, TX, pleaded guilty to paying a bribe to an agent of an organization receiving federal funds. As a result of his plea, Telles faces up to ten years in federal prison and a fine of up to $250,000. By pleading guilty, Telles admitted that in 2010, he paid a $5,000 bribe to a Maverick County commissioner after being awarded an approximate $30,000 construction contract with Maverick County.
Telles is scheduled to be sentenced on December 9, 2013, before U.S. District Judge Alia Moses in Del Rio; Chavez, September 17, 2013, before U.S. District Judge David A. Ezra in Del Rio.
To date, 12 individuals have pleaded guilty to federal charges and await sentencing in connection with this investigation. This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting these cases on behalf of the Government.
Former Long Island Bar Owner Sentenced to 60 Years in Prison for Sex Trafficking, Forced Labor and Immigration Crimes on Long IslandRead the Press Release
Earlier today, Antonio Rivera, the former owner of the bars Sonidos de la Frontera in Lake Ronkonkoma and La Hija del Mariachi in Farmingville, New York, was sentenced to 60 years’ imprisonment for his role in a sex trafficking and forced labor ring. Rivera’s co-defendants, John Whaley and Jason Villaman, were sentenced to 25 and 30 years, respectively. The sentences were imposed by United States District Judge Sandra J. Feuerstein at the United States Courthouse in Central Islip, New York. The three defendants were convicted after a four-week trial of multiple offenses including, conspiracy, sex trafficking, forced labor, alien harboring, and alien transportation.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Roy L. Austin, Jr., Deputy Assistant Attorney General, Civil Rights Division; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; Edward Webber, Commissioner, Suffolk County Police Department; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York.
The government’s evidence at trial established that the defendants and others recruited, hired, and harbored in the United States scores of undocumented Latin American immigrants to work as waitresses in Rivera’s bars. The women had come to the United States from Honduras, Guatelmala, Mexico, and El Salvador. Rivera placed ads and flyers seeking waitresses in Spanish language newspapers and at local businesses frequented by Spanish-speaking immigrants. After the women agreed to work as waitresses, Rivera directed them to solicit patrons to buy them alcoholic beverages, which the women were required to consume, and eventually forced them to engage in sexual acts with the patrons in exchange for money, which Rivera kept. Several witnesses testified that Rivera and others used violence, including rapes and beatings, as well as fraud and threats of deportation to compel the victims to continue to work for him and to prevent them from reporting the illegal activity to police.
One victim testified that she was raped by a bar patron inside Sonidos during business hours in full view of patrons and employees. Another victim testified that on one occasion she was transported by Villaman to a local hotel where she was raped while unconscious by a bar patron and awoke to find Villaman watching the assault. A third victim testified that Rivera raped her on multiple occasions and subsequently ordered a security guard to brutally beat her. According to the victim, the security guard drove her to a deserted parking lot after work and, once there, viciously beat her. According to other testimony, Whaley, who assisted Rivera in hiring waitresses, maintaining the bars, and transporting the waitresses to and from the two bars, sexually assaulted one of the victims whom he was supposed to drive home. Testimony also revealed that Villaman acted as a security guard at Sonidos de la Frontera and assisted Rivera in illegal acts against victims, including dumping an unconscious victim on the lawn outside her home after the he and Rivera had assaulted her. Several victims testified that their wages were often taken from them under the guise of being placed into a short-term group savings scheme called the “Society,” but were not returned to them as promised, which forced the victims to remain in Rivera’s employ in hopes of recouping their money.
“The defendants lured vulnerable young women to the United States with the promise of a better life and the ability to earn a living to support their families. Once here, the defendants then turned their American dream into a nightmare, subjecting them to unspeakable physical violence and emotional abuse, as well as threats of deportation, in order to line their own pockets. The lengthy sentences imposed today are fair and just punishment for the intolerable crimes that these defendants committed.” stated United States Attorney Lynch. “We will continue our efforts to ensure that the full protection of the law is provided to all our residents.” Ms. Lynch expressed her grateful appreciation to HSI, Suffolk County Police Department, FBI, and the IRS for their assistance in this case.
“These defendants preyed on some of the most vulnerable members of our society – young, undocumented women and girls seeking a better life – and brutally exploited them in a scheme driven by cruelty and greed,” stated Deputy Assistant Attorney General Austin. “Human trafficking is an affront to freedom and individual rights. The sentences handed down today affirm our commitment as a nation to bringing human traffickers to justice and restoring the rights and dignity of human trafficking victims.”
“The men sentenced today lured innocent women with dreams of good paying jobs that turned into a nightmare of forced prostitution backed by threats and violence. The victims of these heinous crimes have now begun the healing process they so justly deserve,” said HSI Special Agent in Charge Hayes. “HSI agents will continue to work with the Human Trafficking Task Force and other law enforcement agencies to identify victims and to pursue the criminals who prey on them.”
“These victims and other immigrants have the rightful expectation to be protected against those that may take advantage of their vulnerability. These three predators deserve the lengthy sentences they have received for the unforgivable acts they perpetrated against their victims,” said Suffolk County Police Commissioner Webber. “The Suffolk County Police Department will continue to work jointly with federal, state and local law enforcement partners to curb forced labor, violence and sex-trafficking within the county.”
FBI Assistant Director-in-Charge Venizelos stated, “The defendants have received sentences that reflect the gravity and depravity of the crimes they committed. No human being, regardless of immigration status, can be tormented the way the victims of these defendants were without the strongest possible response from our justice system. The horrific physical violence, sexual predation and emotional torment suffered by the victims cannot be undone, but long prison terms for the defendants mean they will not be in any position to inflict such torment again.”
IRS Special Agent-in-Charge Weirauch stated, “IRS-Criminal Investigation is grateful that we were able to support our law enforcement partners in this important investigation and prosecution. The victims in this case endured incredible physical, emotional and financial hardships. We sincerely hope they will be able to heal and move forward.”
The government’s case was prosecuted by Assistant United States Attorneys Demetri M. Jones and Licha Nyiendo, and Senior Litigation Counsel John Cotton Richmond of the Department of Justice, Civil Rights Division, Human Trafficking Prosecution Unit.
The Defendants:
ANTONIO RIVERA
Age: 38
Residence: Patchogue, NYJOHN WHALEY
Age: 33
Residence: Bellport, NYJASON VILLAMAN
Age: 34
Residence: Brentwood, NYFormer Chief Executive of Mortgage Servicing Company <br /> Pleads Guilty to Bank Fraud for Scheme <br /> to Withhold Funds from Wells Fargo BankRead the Press Release
The former president and chief executive officer of U.S. Mortgage, a loan servicing company in Nevada, pleaded guilty today for his role in a scheme to defraud Wells Fargo Bank out of more than $8 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada made the announcement after the plea was accepted by U.S. District Judge Andrew P. Gordon.
Earl Gross, 75, of Las Vegas, pleaded guilty to one count of bank fraud. Gross faces a maximum penalty of 30 years in prison when he is sentenced on Sept. 19, 2013. Gross has agreed to forfeit $8,440,439 pursuant to his plea agreement.
According to plea documents, Wells Fargo Bank contracted with U.S. Mortgage to service pools of residential mortgage loans held by investors in mortgage-backed securities. Under the agreement, Gross and U.S. Mortgage were obligated to collect from the borrowers the monthly payments that the borrowers made toward their mortgage obligations and forward these proceeds to Wells Fargo Bank. In the event that a borrower paid off the loan – usually by selling the mortgaged property – U.S. Mortgage was obligated to remit to Wells Fargo Bank the full payoff amount. U.S. Mortgage agreed to provide Wells Fargo Bank with monthly reports, which described the status of the loans, such as the balance, principal and interest, and payment status and received servicing fees for each loan it serviced.
According to the indictment, from 2004 to 2009, Gross and U.S. Mortgage withheld more than $8 million in loan payoffs that were due Wells Fargo Bank by submitting to the bank reports stating that numerous borrowers were continuing to make monthly payments when in fact they had paid off the loans in full. Rather than remit to Wells Fargo Bank the full payoff amount, Mr. Gross and U.S. Mortgage forwarded only what the borrowers’ monthly payment would have been and retained the difference in U.S. Mortgage’s bank account. To deceive Wells Fargo Bank about the status of paid off loans, Mr. Gross and U.S. Mortgage created fake amortization schedules indicating that borrowers who had sold and paid off homes were continuing to make monthly payments. In addition to withholding loan payoff amounts to which he was not entitled, Mr. Gross charged Wells Fargo Bank fees to service mortgage loans that had been paid off.
The case was investigated by the FBI. This case is being prosecuted by Brian R. Young and Charles La Bella of the Criminal Division’s Fraud Section, with assistance from Roberto Iraola of the Office of International Affairs and the United States Attorney’s Office for the District of Nevada.
Today’s guilty plea was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.StopFraud.gov.
Federal Jury Finds Mound Hedge Fund Manager Guilty of Lying to Investors in Connection with Investment in Petters Co.Read the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a hedge fund manager from Mound guilty of fraudulently raising money from individuals and through mutual funds for investment in Petters Company, Inc. (“PCI”). After a four-week trial, the jury convicted James Nathan Fry, age 59, on five counts of securities fraud, four counts of wire fraud, and three counts of making false statements to the United States Securities and Exchange Commission (“SEC”).
According to the evidence presented at trial, Fry raised hundreds of millions of dollars from investors using two hedge funds known as the Arrowhead Funds, which he then provided to PCI in exchange for substantial interest payments. Fry collected more than $30 million in fees from the money he raised from investors and provided to PCI.
Fry formed the Arrowhead Funds in collaboration with Frank Elroy Vennes, Jr. Vennes began raising money to invest with Petters in 1995, only a few years after he was released from federal prison, where he had been serving a sentence for money laundering, firearms, and narcotics charges. Fry used the Arrowhead Funds to solicit money from investors to invest exclusively in financing for PCI. All of the Arrowhead Funds’ transactions with PCI were done through Vennes, and any communication between Fry and Petters or his company had to go through Vennes.
Despite Vennes’s intimate involvement in all of the Arrowhead Funds’ dealings with Petters and PCI, Fry concealed Vennes’s involvement in the PCI transactions because he knew that investors would learn about Vennes’s criminal background and be deterred from investing. Over approximately eight years, Fry obtained hundreds of millions of dollars from investors, which he then provided to PCI, purportedly to finance the purchase of consumer electronics that Petters would later resell at a profit. All of the transactions between Arrowhead and PCI went through Vennes. And, although Vennes was in the middle of every single transaction between Arrowhead and PCI, Fry concealed Vennes’s role and criminal background from investors.
Fry also lied to investors by telling them that the Arrowhead Funds were getting paid directly by the big box retailers, which gave investors the false impression that there were real transactions underlying the PCI investments. In fact, the Arrowhead Funds never received a single payment from a retailer, and all payments on the PCI promissory notes came from PCI, which allowed the Petters Ponzi scheme to expand for years until it finally collapsed.
Finally, Fry lied to investors about significant problems with the PCI investments in 2007 and 2008. Fry told investors that the notes were “90-day notes,” meaning that they were paid off in 90 days. Beginning in the fall of 2007, payments on all the PCI notes held by Arrowhead became substantially later than 90 days, and almost half of the notes were not paid after 180 days and had to be extended to avoid going into default. Fry concealed this information from his investors. The concealment of this information was significant to new investors, who were deciding whether to place money with Arrowhead, and existing investors, who were assessing whether to withdraw from Arrowhead.
Fry also lied to federal authorities after the collapse of the Petters Ponzi scheme. In 2010, Fry gave sworn testimony before the SEC, and during that testimony, he claimed that he was unaware that the Arrowhead Funds were not paid directly from the retailers and that marketing materials containing false information were distributed.
Vennes pleaded guilty to aiding and abetting Fry in connection with these misrepresentations to the Arrowhead Funds’ investors.
For his crimes, Fry faces a potential maximum penalty of 20 years on each count of wire fraud and five years on each count of securities fraud and making false statements. United States District Court Judge Richard H. Kyle will determine Fry’s sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service–Criminal Investigation, and the U.S. Postal Inspection Service. It was being prosecuted by Assistant U.S. Attorneys Timothy C. Rank, Kimberly A. Svendsen, and Robert M. Lewis.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.Erie Man Charged with Production, Possession of Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The two-count indictment named David Montgomery, 43, as the sole defendant.
According to the indictment presented to the court, Montgomery produced images of a minor engaged in sexually explicit conduct and possessed computer images depicting minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 50 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of lnvestigation and the Erie County Detectives Bureau conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Eight Indicted in Connection with A Drug Organization Allegedly Operating in Annapolis and Other Areas of Anne Arundel CountyRead the Press Release
22 Additional Defendants Charged in State Court on Drug Trafficking Charges
Baltimore, Maryland - A federal grand jury has indicted eight individuals on charges related to the investigation of a drug distribution organization in Annapolis and other areas of Anne Arundel County since at least January 2012. The indictments were returned on June 11, 2013, and unsealed today upon the arrest of the defendants.
ATF led at least 100 law enforcement officers who executed federal search warrants at 10 locations and seven vehicles today, including residences and vehicles belonging to some of the defendants. As part of this investigation, law enforcement also executed arrest warrants today against 22 additional defendants charged in state court in Anne Arundel County with various drug trafficking offenses.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; and Anne Arundel County State’s Attorney Anne C. Leitess.
Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division. “I am confident that the execution of multiple arrest and search warrants by ATF and its law enforcement partners has made a significant impact on crime in Anne Arundel County, Maryland, and specifically the city of Annapolis. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”
Annapolis Police Chief Michael Pristoop said, “We, as a police department and a community, will not tolerate the illegal sale of drugs or guns within our City. This investigation, the indictments, and the service of the arrest warrants is another outstanding example of partners working together to reduce crime in Annapolis. Removing these offenders from our streets was a top priority and certainly a step on the right direction.”
“I want to thank all of the agencies involved for their partnerships and collaborations to bring this case to closure,” said Anne Arundel County Acting Chief of Police Lieutenant Colonel Pamela R. Davis.
“A disproportionate amount of violent crimes with a connection to illegal drugs is often committed by a small percentage of individuals. The community can immediately take solace in knowing that these individuals have been removed from their neighborhoods.”
The following defendants are charged with conspiracy to distribute and to possess with intent to distribute heroin and crack cocaine:
Ernest Lee Harmon, a/k/a “E” and “Memphis,” age 36, of Baltimore; Dontaye Lee Harmon, a/k/a “Taye,” age 39, of Baltimore; Damian Leron Brown, a/k/a “D,” “DB,” and “DBrown,” age 37, of Annapolis; and
Jessica Knode, age 27, of Crofton, Maryland.Two defendants charged in this indictment are still being sought and their names have not been unsealed.
Ernest Lee Harmon and Dontaye Lee Harmon are also charged with distributing and possessing with intent to distribute crack cocaine. Ernest Lee Harmon and Damian Leron Brown are charged with distributing and possessing with intent to distribute heroin.
The defendants face a minimum of 10 years in prison and a maximum of life in prison for the drug conspiracy. Dontaye Lee Harmon and Damian Brown also face a maximum of 20 years in prison for distribution and possession with intent to distribute crack cocaine or heroin. Ernest Lee Harmon, faces a minimum of five years and a maximum of 40 years in prison for distribution and possession with intent to distribute crack cocaine and heroin.
In related indictments, Corrie Flannigan, a/k/a “Flame,” age 19, of Annapolis is charged with possession of a firearm by a felon; and Jimolo Coates, a/k/a “Marlow,” age 20, also of Annapolis is charged with possession of a firearm and ammunition by a felon.
Flannigan and Coates each face a maximum of 10 years in prison for possession of a firearm and/or ammunition by a previously convicted felon.
All of the defendants are expected to have an initial appearance in U.S. District Court in Baltimore today.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein thanked ATF, the Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department and the Anne Arundel County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Kenneth S. Clark, Scott Lemmon, and Joshua Kaul, who are prosecuting the case.
Eight Indicted in Connection with A Drug Organization Allegedly Operating in Annapolis and Other Areas of Anne Arundel CountyRead the Press Release
22 Additional Defendants Charged in State Court on Drug Trafficking Charges
Baltimore, Maryland - A federal grand jury has indicted eight individuals on charges related to the investigation of a drug distribution organization in Annapolis and other areas of Anne Arundel County since at least January 2012. The indictments were returned on June 11, 2013, and unsealed today upon the arrest of the defendants.
ATF led at least 100 law enforcement officers who executed federal search warrants at 10 locations and seven vehicles today, including residences and vehicles belonging to some of the defendants. As part of this investigation, law enforcement also executed arrest warrants today against 22 additional defendants charged in state court in Anne Arundel County with various drug trafficking offenses.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; and Anne Arundel County State’s Attorney Anne C. Leitess.
Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division. “I am confident that the execution of multiple arrest and search warrants by ATF and its law enforcement partners has made a significant impact on crime in Anne Arundel County, Maryland, and specifically the city of Annapolis. ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”
Annapolis Police Chief Michael Pristoop said, “We, as a police department and a community, will not tolerate the illegal sale of drugs or guns within our City. This investigation, the indictments, and the service of the arrest warrants is another outstanding example of partners working together to reduce crime in Annapolis. Removing these offenders from our streets was a top priority and certainly a step on the right direction.”
“I want to thank all of the agencies involved for their partnerships and collaborations to bring this case to closure,” said Anne Arundel County Acting Chief of Police Lieutenant Colonel Pamela R. Davis.
“A disproportionate amount of violent crimes with a connection to illegal drugs is often committed by a small percentage of individuals. The community can immediately take solace in knowing that these individuals have been removed from their neighborhoods.”
The following defendants are charged with conspiracy to distribute and to possess with intent to distribute heroin and crack cocaine:
Ernest Lee Harmon, a/k/a “E” and “Memphis,” age 36, of Baltimore; Dontaye Lee Harmon, a/k/a “Taye,” age 39, of Baltimore; Damian Leron Brown, a/k/a “D,” “DB,” and “DBrown,” age 37, of Annapolis; and
Jessica Knode, age 27, of Crofton, Maryland.Two defendants charged in this indictment are still being sought and their names have not been unsealed.
Ernest Lee Harmon and Dontaye Lee Harmon are also charged with distributing and possessing with intent to distribute crack cocaine. Ernest Lee Harmon and Damian Leron Brown are charged with distributing and possessing with intent to distribute heroin.
The defendants face a minimum of 10 years in prison and a maximum of life in prison for the drug conspiracy. Dontaye Lee Harmon and Damian Brown also face a maximum of 20 years in prison for distribution and possession with intent to distribute crack cocaine or heroin. Ernest Lee Harmon, faces a minimum of five years and a maximum of 40 years in prison for distribution and possession with intent to distribute crack cocaine and heroin.
In related indictments, Corrie Flannigan, a/k/a “Flame,” age 19, of Annapolis is charged with possession of a firearm by a felon; and Jimolo Coates, a/k/a “Marlow,” age 20, also of Annapolis is charged with possession of a firearm and ammunition by a felon.
Flannigan and Coates each face a maximum of 10 years in prison for possession of a firearm and/or ammunition by a previously convicted felon.
All of the defendants are expected to have an initial appearance in U.S. District Court in Baltimore today.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein thanked ATF, the Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department and the Anne Arundel County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Kenneth S. Clark, Scott Lemmon, and Joshua Kaul, who are prosecuting the case.
Eight Charged with Fraud, ID Theft, Money Laundering in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Organization Allegedly Capitalized on Information Hacked From More Than a Dozen Global Financial Institutions
NEWARK, N.J. – Eight alleged members of an international cybercrime, money laundering and identity theft conspiracy are federally charged in New Jersey with a scheme to use information hacked from customer accounts held at more than a dozen banks, brokerage firms, payroll processing companies and government agencies in an attempt to steal at least $15 million from U.S. customers, New Jersey U.S. Attorney Paul J. Fishman announced.
The eight defendants are charged together in a criminal complaint with conspiracy to commit wire fraud, conspiracy to commit money laundering and conspiracy to commit identity theft. Allegedly, Oleksiy Sharapka, 33, of Kiev, Ukraine, directed the conspiracy with the help of Leonid Yanovitsky, 38, also of Kiev. Oleg Pidtergerya, 49, of Brooklyn, N.Y.; Robert Dubuc, 40, of Malden, Mass.; and Andrey Yarmolitskiy, 41, of Atlanta, managed crews in their respective cities. Richard Gundersen, 46, of Brooklyn, and Lamar Taylor, 37, of Salem, Mass, worked for Pidtergerya and Dubuc, respectively. Ilya Ostapyuk, 31, of Brooklyn, allegedly facilitated the movement of fraud proceeds.
Pidtergerya, Ostapyuk and Dubuc were arrested this morning at their homes by federal agents, and Yarmolitskiy was arrested yesterday, June 11, 2013, as he arrived at John F. Kennedy International Airport on an overseas flight. He is expected to appear on a date to be determined before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Pidtergerya and Ostapyuk are to appear before Judge Waldor this afternoon. Dubuc is scheduled for an initial appearance in federal court in Boston. Taylor and Gundersen are being pursued by law enforcement, and Sharapka and Yanovitsky, Ukrainian nationals, remain at large.
“According to the complaint unsealed today, cybercriminals penetrated some of our most trusted financial institutions as part of a global scheme that stole money and identities from people in the United States,” said U.S. Attorney Fishman. “Today’s charges and arrests take out key members of the organization, including leaders of crews in three states that used those stolen identities to “cash out” hacked accounts in a series of internationally coordinated modern-day bank robberies. We will continue to pursue our investigation into this scheme and our fight against the rising threat of criminals for whom computers are the weapon of choice.”
“The investigation and successful prosecution of suspects involved in organized global fraud directed at electronic payment systems is dependent upon the collaborative efforts of federal law enforcement and private industry to ensure the confidentiality, integrity and availability of these systems as part of our critical financial infrastructure,” said Special Agent in Charge James Mottola of the U.S. Secret Service, Newark Field Office.
“These arrests underscore HSI’s commitment and the joint ongoing efforts across the entire law enforcement spectrum to stop these cybercriminals in their tracks,” said Andrew M. McLees, Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark. “HSI special agents will use every cutting-edge technological investigative tool at their disposal to dismantle these global criminal enterprises at the source and bring them to justice.”
According to the criminal complaint unsealed today:
Conspiring hackers gained unauthorized access to the computer networks of more than a dozen global financial institutions, including: Aon Hewitt; Automated Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
Once inside the victim companies’ computer networks, the defendants and conspirators diverted money from accounts of the companies’ customers to bank accounts and pre-paid debit cards controlled by the defendants. They then implemented a sophisticated “cash out” operation, employing crews of individuals known as “cashers” to withdraw the stolen funds, among other ways, by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere.
As part of the scheme, the defendants stole identities from individuals in the United States, which they used to facilitate the cash out operation, including by transferring money to cards in the names of those stolen identities. They also used some of those identities to file fraudulent tax returns with the IRS seeking refunds.
The defendants and their conspirators laundered the proceeds of the scheme, often through international wire transfer services, to the leaders of the conspiracy overseas.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
If convicted, each of the defendants face a maximum potential penalty of 20 years in prison on the conspiracy to commit wire fraud count, 20 years in prison on the conspiracy to commit money laundering count and 15 years in prison on the conspiracy to commit identity theft count. The wire fraud and identity theft counts also carry a maximum fine of $250,000, or twice the gross amount of pecuniary gain or loss resulting from the offenses. The money laundering conspiracy count carries a maximum fine of $500,000, or twice the value of the monetary instruments involved.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge Mottola; HSI, under the direction of Special Agent in Charge McLees; Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen with the ongoing investigation. He also thanked the Department of Homeland Security’s Customs and Border Protection for assistance with the Yarmolitskiy arrest.
The government is represented by Assistant U.S. Attorneys Gurbir S. Grewal, of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit, and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. 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.
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Sharapka, Oleksiy et al. Complaint
Sharapka, Oleksiy et al. Amended ComplaintEagle Butte Man Charged with Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury.
Aadam Tiger, age 29, was indicted by a federal grand jury on November 15, 2012 for Possession with Intent to Distribute a Controlled Substance. Tiger appeared before U.S. Magistrate Judge Mark A. Moreno on June 11, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; 2 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Tiger is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Tiger was released on bond pending trial. A trial date has not been set.
District Man Sentenced to Two-Year Prison TermRead the Press Release
For 2012 Robbery at Deanwood Metro Station<
-Defendant Also Sentenced to Nine Months in Prison in Case Involving Stolen Car-WASHINGTON – Zachary Pollard, 18, of Washington D.C., has been sentenced to two years in prison on a robbery charge stemming from an attack last year at the Deanwood Metro station in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Pollard was found guilty in April 2013 following a trial in the Superior Court of the District of Columbia. The Honorable Heidi M. Pasichow sentenced him on June 11, 2013 to a total of 51 months in prison, but suspended all but 24 months of the prison time. Upon completion of his prison term, Pollard will be placed on three years of supervised release.
According to the government’s evidence, Pollard and an unidentified accomplice approached the victim at about 8:30 a.m. on Nov. 18, 2012 near the Metro station, in the 4700 block of Polk Street NE. Pollard, standing in front of the victim, pulled out a gun and pointed it in the man’s face while the accomplice threw the victim to the ground. Pollard then rifled through the victim’s pockets and took the victim’s wallet, which contained credit cards and $11. The victim reported the crime to the station manager, who called Metro Transit Police.
Less than 10 minutes later and about a half mile from the Deanwood station, a Metro Transit Police officer spotted Pollard, who matched the description given for a police lookout. The officer stopped Pollard, who was eating a fast-food apple pie. Minutes later, as other officers arrived on the scene and without having been told what had been taken in the robbery or the reason why he had been stopped, Pollard spontaneously stated, “Man, I didn’t rob nobody for no $11.” Officers recovered $9 in cash from the defendant.
At the time of the crime, Pollard was free on personal recognizance while awaiting trial for unauthorized use of a motor vehicle and other charges. According to the government’s evidence, Pollard was caught on Oct. 14, 2012 in a car in Southeast Washington less than a day after it was stolen. When police officers tried to stop him after he went through a red light in the car, he floored the gas and took off. The car ultimately crashed into the curb, damaging the front wheel. Pollard then got out of the car and fled on foot before he was finally caught.
Pollard pled guilty in that case to charges of unauthorized use of a motor vehicle, receiving stolen property, and destruction of property. He was sentenced on June 11, 2013 to serve nine months of incarceration on those charges, to run consecutively to the sentence in the robbery case. He also was ordered to pay $1,945 in restitution to the victim.
In announcing the sentence, U.S. Attorney Machen praised the work of the detective, officers, and mobile crime scene officers from the Metro Transit Police Department who investigated the robbery case, as well as the officers from the Metropolitan Police Department (MPD) who investigated the case involving the stolen car.
He also acknowledged the efforts of those who worked on the matters for the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Theresa Nelson, and Victim Advocate Kristina Rose. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who prosecuted the robbery case, and Assistant U.S. Attorney Christian Natiello, who prosecuted the case involving the stolen car.
13-203District Man Pleads Guilty to Murder in 2011 Slaying in Southeast Washington-Victim’s Father Pleads Guilty to Tampering with Evidence at the Scene-Read the Press Release
WASHINGTON – William Faison, 23, of Washington, D.C., pled guilty today to second-degree murder while armed in the slaying of 19-year-old Jeffrey Covington during an attempted robbery in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced
Faison entered his plea in the Superior Court of the District of Columbia. The Honorable Ronna Lee Beck scheduled sentencing for Aug. 16, 2013.
In a related development, the victim’s father, Jeffrey Blount, 43, also of Washington, D.C., pled guilty today to tampering with physical evidence at the scene of the murder. He is to be sentenced on Aug. 15, 2013.
According to the government’s evidence, on July 2, 2011, Jeffrey Blount and his son were involved in a craps game in the 600 block of 46th Place SE. Shortly after 1 a.m., Faison, who was nearby, approached Blount while pulling a .38-caliber revolver from his waistband.
Faison pushed Mr. Covington aside to get to Blount and pointed the gun at Blount’s back in an attempt to rob him. Nearly everyone involved in the craps game, including Blount, fled. Faison chased after Blount, with his gun still drawn. Mr. Covington attempted to come to the aid of his father by pointing an inoperable weapon at Faison. Faison then turned back toward the victim and fired one shot at him, fatally striking him in the upper chest/throat.
Faison then fled into an apartment in a building on the block. Police sought and obtained a search warrant for that apartment on July 2, 2011, and they recovered a .38-caliber revolver with a spent shell casing inside. Faison was still in the apartment at the time of the recovery.
Following the murder, Blount returned to the scene, approached Mr. Covington’s body, and attempted to remove currency from Mr. Covington’s pockets. He then checked the victim’s pulse before moving the inoperable pistol from the victim’s side to a nearby trash can.
In announcing the plea, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Phaylyn Hunt, Fern Rhedrick, and Kendra Johnson and Victim/Witness Advocate Marcia Rinker. Finally, U.S. Attorney Machen recognized Assistant U.S. Attorneys Melinda A. Williams, Jeffrey Pearlman, and Erik Kenerson, who investigated and prosecuted the case.
13-205District Man Found Guilty of Murder and Other ChargesRead the Press Release
In 2011 Slaying of Stepson
-Shooting Followed Argument in Family Home-WASHINGTON – Ronald Page, 60, of Washington, D.C., has been found guilty by a jury of second-degree murder while armed and other charges in the slaying of his adult stepson, U.S. Attorney Ronald C. Machen Jr. announced today.
Page was found guilty on June 11, 2013 following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury found him guilty of charges of assault with a dangerous weapon and firearms offenses. The Honorable Russell F. Canan scheduled sentencing for Sept. 13, 2013.
According to the government’s evidence, on Jan. 5, 2011, shortly after 7 p.m., Page was engaged in verbal argument with his 17-year-old son inside their family home in Northeast Washington. The defendant’s two stepsons were present during the argument. At one point, Page left the argument and retrieved a gun. He pointed it at his son and one of his stepsons, Nicholas Satcher, 22. Then he ordered Nicholas Satcher to leave the room. Nicholas Satcher agreed to leave, but his stepfather followed him and fired the gun, fatally wounding him.
In announcing the verdicts, U.S. Attorney Machen commended the work of the officers, detectives and others who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Mia Beamon, Kelly Blakeney, Kendra Johnson, Sharon Newman and Marian Russell; Victim/Witness Advocate Marcia Rinker; Information Technology Specialist Leif Hickling, and Criminal Investigator Christopher Brophy. He also expressed appreciation to Assistant U.S. Attorney Charles W. Cobb, who investigated the case and secured the indictment. Finally, he thanked Jeffrey Ragsdale, Chief of the office’s Homicide Section, and Assistant U.S. Attorney Lara Worm, who prosecuted the case.
13-204Dighton Tax Preparer Pleads Guilty to Filing False ReturnsRead the Press Release
BOSTON – A Dighton man was convicted today of falsifying his own personal income tax returns.
David J. Woods, 63, pleaded guilty before U.S. District Judge Patti B. Saris to filing false individual tax returns for the period 2006 through 2008.
Woods has owned and operated Woods Tax & Accounting Services for the past 20 years. During the period 2006 through 2008, Woods failed to report taxable income of over $500,000, resulting in a tax loss to the government.
Sentencing is scheduled for September 25, 2013 at 2:30. Woods faces a statutory maximum penalty of three years in prison, to be followed by one year of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Lori J. Holik of Ortiz’s Economic Crimes Unit.
Detroit Drug Dealer Sentenced to 240 Months in Prison for Transporting Oxycodone to the Tri-Cities.Read the Press Release
GREENEVILLE, Tenn. - Qwindel Jerome Page, 28, of Detroit, Mich., was sentenced on June 12, 2013, by the Honorable J, Ronnie Greer, U.S. District Court Judge, to serve 240 months in federal prison. Page was convicted of conspiracy to distribute oxycodone, conspiracy to commit money laundering and possession of oxycodone with the intent to distribute.
Beginning in 2007, agents with the Second Judicial Drug Task Force, Sullivan County Sheriff’s Department, Bureau of Alcohol Tobacco, Firearms, and Explosives, and Internal Revenue Service-Criminal Investigations Division, investigated and gathered evidence of drug traffickers bringing oxycodone from Detroit, Mich. to the Tri-Cities area. Evidence presented at trial showed that Page acquired oxycodone in Michigan and recruited individuals in Detroit to act as couriers to transport the illegal drugs to East Tennessee where the drugs would be resold. Page directed a group of individuals in Johnson City, Kingsport and Bristol who assisted him in selling oxycodone and wire transferring the proceeds back to Detroit. He also used buses, rental cars and commercial airlines to transport the drugs to Tennessee and money back to Detroit.
In November 2012, following a three day trial, Page was found guilty on all counts of a superseding indictment that charged him with conspiracy to distribute oxycodone, conspiracy to commit money laundering and possession of oxycodone with the intent to distribute. Special Assistant U.S. Attorney Nick Regalia represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Departments of Justice, Education, and Health and Human Services Issue Letter to Health-related Schools Regarding Hepatitis B DiscriminationRead the Press Release
The Department of Justice, the Department of Education and the Department of Health and Human Services sent a joint letter today to the nation’s medical schools, dental schools, nursing schools and other health-related schools regarding hepatitis B discrimination.
In the letter, the departments express concern that some health-related schools may be making enrollment decisions based on an incorrect understanding of the hepatitis B virus, resulting in discrimination.
The letter updates schools on the latest recommendations from the Centers for Disease Control and Prevention (CDC) regarding the participation of students with hepatitis B in health-related schools. The letter also emphasizes the importance of CDC’s recommendations, especially as they relate to the schools’ obligation to comply with federal laws prohibiting discrimination on the basis of disability, race, color and national origin.
Approximately 800,000 to 1.4 million people in the United States have hepatitis B. Asians, Native Hawaiians and Pacific Islanders make up roughly 4.5 percent of the U.S. population, but represent 50 percent of the persons with hepatitis B in the United States.
The letter cites a March 2013 settlement agreement that the Justice Department reached with a medical school and a school of osteopathic medicine resolving allegations that the schools violated the Americans with Disabilities Act by excluding previously-accepted applicants with hepatitis B from their programs.
The updated CDC recommendations, based on the most current scientific information, dispel many myths associated with hepatitis B and provide guidance to health-related schools on managing students with the virus. The CDC also notes that since the last update of the recommendations in 1991, there have been no reports of hepatitis B transmission in the United States or other developed countries from medical or dental students to patients. Among other recommendations, the CDC recommends that chronic hepatitis B virus infection, in itself, should not preclude the study or practice of medicine, surgery, dentistry or allied health professions.
“The Justice Department strongly urges health-related schools to review the CDC’s recommendations and to ensure that their policies and practices comply with federal nondiscrimination laws,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division of the Justice Department. “Applicants and students with hepatitis B should not have to face exclusion on the basis of unfounded fears and stereotypes, and the Justice Department will not tolerate it.”
“Both public health and civil rights will be promoted when medical schools rely on the most recent scientific information, not overbroad generalizations, in dealing with medical students with hepatitis B,” said Seth Galanter, Acting Assistant Secretary for Civil Rights in the Department of Education.
Leon Rodriguez, Director of the Office for Civil Rights in the Department of Health and Human Services, agrees that health-related schools must ensure that they do not deny equal access to individuals based on discrimination, adding: “The CDC recommendations promote public health and safety while also offering guidance on the management of students with hepatitis B. Our agencies place considerable weight on this guidance in our enforcement of federal civil rights laws.”
The Departments of Justice, Education, and Health and Human Services share responsibility for protecting the rights of students and applicants with disabilities, including those with hepatitis B, in schools of higher education by enforcing titles II and III of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act. These laws prohibit covered postsecondary institutions from discriminating on the basis of disability and from refusing to make reasonable modifications to their policies, practices or procedures when necessary to avoid discrimination on the basis of disability, unless such modifications would fundamentally alter the nature of the program or the services provided. The Departments of Justice, Education, and Health and Human Services also enforce Title VI of the Civil Rights Act, which prohibits discrimination on the basis of race, color or national origin in programs and activities receiving federal financial assistance, including those of health-related schools.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the Department of Education’s Office for Civil Rights is available on its website at www.ed.gov/ocr/. Additional information about the Department of Health and Human Service’s Office for Civil Rights is available on its website at www.hhs.gov/ocr/.
Related Materials:
Letter
Creston Kindness Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 12, 2013, before U.S. Magistrate Judge Keith Strong, CRESTON KINDNESS, a 30-year-old resident of Fort Hall, Idaho, and an enrolled member of a federally-recognized tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for September 25, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
KINDNESS became agitated when the victim did not tell him where his girlfriend was so he shot the victim in the leg with a .40 caliber Smith and Wesson handgun. The handgun was found in the bathroom, where KINDNESS had been when he was apprehended by tribal law enforcement.
The bullet went through the victim's leg and she was hospitalized for two nights. The bullet, that was retrieved at the crime scene, had mushroomed.
The crime occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
KINDNESS faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Court Reporter Pleads Guilty to Charges Related to Obstruction of JusticeRead the Press Release
ABINGDON, VIRGINIA -- - United States Attorney Timothy J. Heaphy announced today that Ernest Julius Benko pled guilty in the United States District Court for the Western District of Virginia in Abingdon to charges related to the obstruction of a federal criminal investigation..
Ernest Julius Benko, 67, of Norton, Va., entered a plea of guilty to one count of obstruction of an official proceeding and one count of conspiracy to cause false statements and obstruct an official proceeding. Benko faces a potential maximum sentence of up to 25 years imprisonment and a potential fine of $500,000.
"Mr. Benko deliberately impeded a federal investigation,” United States Attorney Timothy J. Heaphy said today. “Lying to federal investigators is a serious crime and will be vigorously pursued by this United States Attorney’s Office.”
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between 2008 and 2013, Ernest Julius Benko was employed as a private investigator, videographer, notary public, and a court reporter for the Circuit Court of Wise County, Virginia and the United States Bankruptcy Court for the Western District of Virginia.
During this time, the Federal Bureau of Investigation and Virginia State Police had an ongoing investigation regarding attorney Robert Stuart Collins’ involvement in the illegal possession and distribution of controlled substances. In May 2009, Benko was hired by Collins to record sworn statements from individuals cooperating in the FBI and Virginia State Police’s investigation in which the witnesses were told to falsely represent that Collins had no involvement in anything that was illegal or unethical.
These false statements were conducted in order to obstruct the criminal investigation into Collins. One of the witnesses, whose statement Benko recorded, also was told to falsely state that he had been threatened by an FBI agent in order to secure his cooperation in the FBI's investigation. At the time of the taking of these false sworn statements, Benko was aware that Collins had a drug problem and had been involved in illegal activity that was the subject of the FBI and Virginia State Police’s criminal investigation. On September 13, 2012, Benko was interviewed by agents of the FBI and Virginia State Police. Benko falsely stated that he had no knowledge of Collins being involved in illicit drug use.
Sentencing has been set for September 10, 2013, at 1:30 p.m. in the United States District Court for the Western District of Virginia in Abingdon.
The investigation of this case was conducted by the Virginia State Police, Federal Bureau of Investigation, Wise County Commonwealth’s Attorney’s Office, and the Southwest Virginia Drug Task Force. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
County Commissioner Sentenced for<br /> Attempted Extortion and BriberyRead the Press Release
Al J. Hurley, a former county commissioner in Sumter County, Ga., was sentenced today to 36 months in prison stemming from his acceptance of illicit payments in exchange for his official efforts to secure government contracts for a private contractor, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Middle District of Georgia U.S. Attorney Michael J. Moore announced.
Hurley, 55, of Americus, Ga., was sentenced today by U.S. District Judge W. Louis Sands. On Dec. 3, 2012, a federal jury sitting in the Albany Division of the Middle District of Georgia found Hurley guilty of one count each of attempted extortion and federal program bribery.
Hurley was first elected to the five-member Sumter County board of commissioners in 1999. As the primary governing body for the county, the board presided over a variety of official matters, including the bidding process for and award of various county contracts.
Evidence at trial showed that from September to December 2011, Hurley, in his capacity as a county commissioner, solicited and agreed to accept cash payments – including $5,000 on Oct. 23, 2011, and $15,000 on Dec. 19, 2011 – from a private contractor, in exchange for Hurley’s repeated promises to use official action and influence to help facilitate the award of county contracting work to the contractor.
In particular, Hurley told the contractor that he would help him win a $100,000 depot renovation contract in a city within Hurley’s district. Trial testimony also established that, in order to drive up the bribe amount, Hurley invented two inside contacts that he claimed to have at a new racetrack project in his district, and claimed the contacts could influence the award of related contracting work in favor of the contractor. Hurley, who testified, admitted the contacts did not exist.
This case was investigated by the FBI. This case was prosecuted by Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
County Commissioner Sentenced for Attempted Extortion and BriberyRead the Press Release
WASHINGTON — Al J. Hurley, a former county commissioner in Sumter County, Ga., was sentenced today to 36 months in prison stemming from his acceptance of illicit payments in exchange for his official efforts to secure government contracts for a private contractor, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Middle District of Georgia U.S. Attorney Michael J. Moore announced.Hurley, 55, of Americus, Ga., was sentenced today by U.S. District Judge W. Louis Sands. On Dec. 3, 2012, a federal jury sitting in the Albany Division of the Middle District of Georgia found Hurley guilty of one count each of attempted extortion and federal program bribery.
Hurley was first elected to the five-member Sumter County board of commissioners in 1999. As the primary governing body for the county, the board presided over a variety of official matters, including the bidding process for and award of various county contracts.
Evidence at trial showed that from September to December 2011, Hurley, in his capacity as a county commissioner, solicited and agreed to accept cash payments – including $5,000 on Oct. 23, 2011, and $15,000 on Dec. 19, 2011 – from a private contractor, in exchange for Hurley’s repeated promises to use official action and influence to help facilitate the award of county contracting work to the contractor.
In particular, Hurley told the contractor that he would help him win a $100,000 depot renovation contract in a city within Hurley’s district. Trial testimony also established that, in order to drive up the bribe amount, Hurley invented two inside contacts that he claimed to have at a new racetrack project in his district, and claimed the contacts could influence the award of related contracting work in favor of the contractor. Hurley, who testified, admitted the contacts did not exist.
“An indispensable part of a democracy is the right of citizens to choose their leaders. Inherent in that process is the ability of the public to trust the people they elect. Instead of honoring that trust and serving his constituents, Mr. Hurley chose to exploit his position and enrich himself. When elected leaders put their positions up for sale, my office will be there to make sure they are held accountable,” said United States Attorney Michael Moore.
This case was investigated by the FBI. This case was prosecuted by Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Clarkston Man Sentenced to Federal Prison for Attempting to Provide Material Support to TerroristsRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Joseph Jefferey Brice, age 23, of Clarkston, Washington, was sentenced after previously pleading guilty on September 25, 2013 to the crimes of Attempting to Provide Material Support to Terrorists and Manufacturing an Unregistered Explosive Device. Following a day-long sentencing hearing on June 11, 2013, Senior United States District Court Judge Lonnie R. Suko sentenced Brice to a twelve and one half (12 ½) year term of imprisonment and a life term of court supervision following release from federal prison. In imposing the sentence Judge Suko focused on the need to protect the public from Brice in the future.
The charges stem from an incident that occurred on April 18, 2010, when an explosive device made by Brice prematurely ignited, causing him significant injuries. Subsequent to his hospitalization, Brice apparently self-radicalized and then began using social media to espouse his new found radical beliefs. Brice caught the attention of the Federal Bureau of Investigation (FBI) and the Inland Northwest Joint Terrorism Task Force (INJTTF) after he posted explosiverelated videos and jihad martyrs videos on a YouTube channel he registered under the name "StrenghofAllah." During its investigation, the FBI learned that Brice had utilized social media such as YouTube and both public and private internet sites to express his ongoing interests in explosives, terrorists, and terrorist organizations. Brice used numerous pseudonyms to discuss and defend Timothy McVeigh, who was responsible for the Oklahoma City Federal Building bombing in 1995. Brice posted dedication videos of Timothy McVeigh on YouTube in January 2010 and December 2010. Significantly, Brice also posted a comment on the internet in which he said, "Tim's characteristics are nearly the same as myself, physically/politically. Between December 2010 and May 2011, Brice had both public and private contact with a foreign-based jihadi internet site, upon which Brice posted instructions on the manufacturing of chemical improvised destructive devices ("IEDs") and other anti-law enforcement literature. In May 2011, after being asked over the internet for help with a problem that a purported "terrorist" was having with detonating chemical IEDs that were intended to be used in retaliation for the death of Usama bin Laden, Brice agreed and provided a correct, chemical-based, firing train formula.
Michael C. Ormsby said, "Aggressively investigating and prosecuting terrorist-related crimes is the number one priority for the United States Department of Justice and for the United States Attorney's Office for the Eastern District of Washington. Acts such as those committed by Brice will not go unpunished."
"Mr. Brice's obsession with explosives and damage is disturbing, but his interest in using them to kill indiscriminately is downright appalling," said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office. "His sick, violent aspirations led him to share his designs even with those targeting fellow Americans. If Mr. Brice ever hopes to be a true member of any free society, he should use his years in prison to develop respect for the lives of others."
The investigation was conducted by the Federal Bureau of Investigation and the Inland Northwest Joint Terrorism Task Force. The case was prosecuted by Russell E. Smoot, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-0057-LRS
Christopher Anthony Quinn Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on June 12, 2013, before Chief U.S. District Judge Dana L. Christensen, CHRISTOPHER ANTHONY QUINN, a 49-year-old resident of Troy, was sentenced to a term of:
Prison: 72 months
Special Assessment: $100
Forfeiture: laptops and thumb drives
Supervised Release: 15 years
QUINN was sentenced in connection with his guilty plea to distribution of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
In March 2012, the Missoula Police Department, a member of the Montana Internet Crimes Against Children Task Force, investigated QUINN for trading child pornography via the Internet.
During the investigation, the detective determined that on February 6, 2012, QUINN utilized his email address and laptop to e-mail an image to a yahoo e-mail account. The image depicts child pornography in that it depicts two minor girls engaged in sexually explicit conduct. The image displays the lascivious exhibition of one of the girls' pubic area or genitalia. That e-mail text was: "I have some different sets. Here are a few samples. Just let me know what you like."
A search warrant for QUINN's residence in Lincoln County was obtained and numerous items were seized.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that QUINN will likely serve all of the time imposed by the court. In the federal system, QUINN 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 a cooperative effort between the Missoula Police Department, the Missoula County Sheriff's Office, the Bozeman Police Department, the U.S. Department of Homeland Security - Homeland Security Investigations, and the Internet Crimes Against Children (ICAC) Task Force.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Child Pornography Collector Sentenced to 7+ Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A Beaver County man has been sentenced in federal court to 87 months imprisonment followed by 10 years supervised release on his conviction of possessing and receiving child pornography, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Kenneth A. Michel, 51, of Aliquippa, Pa.
According to information presented to the court, Michel knowingly possessed and received visual depictions, namely, images and videos contained in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct. Mr. Michel possessed more than 200,000 images depicting child pornography.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Michel.
Car Dealership Office Manager Sentenced for Bank FraudRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Dianne Handy, 43, of Alexandria, was sentenced Monday by U.S. District Judge Dee D. Drell, to four months in prison with five years of supervised release and was ordered to pay $101,017 in restitution for defrauding Leglue Nissan. Handy was the office manager for Leglue. The judge also ordered Handy to perform 100 hours of community service and not to gamble or game.
Handy was sentenced for one count of bank fraud involving credit card transactions she processed through Peoples State Bank. According to evidence presented at the guilty plea, Handy fraudulently caused Leglue Nissan in Alexandria to issue unauthorized refunds to her own credit cards more than 72 times between July 2009 and July 2011 for a total of $57,894. As office manager, Handy was responsible for handling the dealership’s daily cash deposits, processing credit card transactions and making salary payments. The court ordered restitution included the amount for the federal charges as well as an additional amount for other losses associated with additional criminal conduct related to Count 1, all while she was employed at Leglue Nissan. Handy pleaded guilty Jan. 30, 2013.The U.S. Secret Service, Baton Rouge Office, conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Camden County, N.J., Man Sentenced to 46 Months in Prison for Conspiring to Sink Boat for Insurance PaymentRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man was sentenced today to 46 months in prison for organizing a plot to sink his fishing boat off the coast of Cape May, N.J., in August 2009 to collect $400,000 from an insurance company, U.S. Attorney Paul J. Fishman announced.
Scott Tran, 40, of Cherry Hill, N.J., previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an Indictment charging him with conspiracy to destroy a vessel on the high seas. Judge Bumb imposed the sentence today in Camden federal court.According to documents filed in this case and statements made in court:
Tran, Manh Nguyen, 60, of Philadelphia, and others engaged in a scheme to sink the Alexander II so that Tran could collect on an insurance policy with State National Insurance Co. In July 2009, Tran hired a captain for the ship, whom Tran and Nguyen then solicited to sink the Alexander II in return for payment. The captain then recruited a crew to help him sink the boat.
On Aug. 2, 2009, the Alexander II left Cape May. Although the Alexander II had little fuel, ice, food, and other supplies for a lengthy fishing trip, the ship’s log was falsified to read that more than 50 fish, weighing approximately 3,000 pounds, had been caught. Once the Alexander II reached a point 86 miles southeast of Cape May, the captain and his crew worked together in an unsuccessful attempt to sink it. After filling parts of the boat with seawater, they sent a distress signal to the U.S. Coast Guard and abandoned ship together in a life raft.Tran admitted that he communicated by email with the captain during the voyage, telling him that he should sink the boat. The U.S. Coast Guard rescued the captain and crew. The Coast Guard found no fish aboard the boat or in the hold. Tran admitted that he gave Nguyen several hundred dollars in cash to give to the captain and each member of the crew for their participation in the attempted sinking. Nguyen admitted to making those payments. Tran admitted that he offered to pay the captain $10,000 and each crew member $2,000 to sink the boat.
Tran then submitted a claim to his insurance broker in order to collect $400,000, the limit of the insurance policy. After the claim was denied, Tran filed a lawsuit in New Jersey Superior Court in Camden County, seeking damages of $400,000, including damage to the Alexander II and loss of use of the boat.
In addition to the prison term, Tran was sentenced to three years of supervised release, fined $75,000 and ordered to pay $280,000 in restitution. Nguyen was sentenced June 1, 2012, to two years in prison. Two crew members, Erik James, 41, of Cape May Courthouse, and Christopher Martin, 41, of Cape May County, both were previously sentenced 30 months in prison.
U.S. Attorney Fishman credited special agents of FBI, Atlantic City Resident Agency, Newark Division, under the direction of Special Agent in Charge Aaron T. Ford; and investigators with the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor, for the investigation leading to today’s sentence. He also thanked the Philadelphia and Cape May office of the U.S. Coast Guard, Investigative Division, for its assistance.
The government is represented by Assistant U.S. Attorney Howard Wiener of the U.S. Attorney’s Office Criminal Division in Camden.13-243
Defense counsel: Earl Kauffman Esq. of Philadelphia
Bergen County, N.J., Dentist, Owner of Three Dental Practices, Sentenced to 21 Months in Prison for Tax Evasion, Bankruptcy FraudRead the Press Release
CAMDEN, N.J. – A Bergen County, N.J., dentist and owner of three dental practices in Bergen and Monmouth counties, was sentenced today to 21 months in prison for evading more than $800,000 in taxes and failing to disclose almost $1.3 million in income in a bankruptcy petition, U.S. Attorney Paul J. Fishman announced.
Stephen A. Beukas, 47, of Mahwah, N.J., previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with one count each of tax evasion and bankruptcy fraud. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From early 2005 through 2008, Beukas was a practicing dentist and the sole owner of Stephen Beukas, DMD, PA (SBPA), New Jersey Mobile Dental Practice PA (MDPA) and Mobile Dental Practice PC (MDPC), which were dental practices located in Wyckoff, N.J, and Colts Neck, N.J. MDPA performed dental services for senior citizens and others who resided in nursing homes throughout New Jersey.
For the years 2005, 2006, 2007 and 2008, Beukas intentionally failed to provide the IRS with accurate information on the $2.6 million income he received as owner of the three practices. On Sept. 12, 2009, Beukas filed a tax return in which he falsely stated that his total income for the calendar year 2006 was $632,945, and that the tax owed was $187,905. Beukas failed to file timely tax returns in 2005, 2007, and 2008. His failure to disclose correct information to the IRS resulted in a tax loss to the U.S. of $800,309.
In 2008, when Beukas filed for Chapter 11 bankruptcy, he also failed to disclose almost $1.3 million in income he received as the sole owner of MDPC.
In addition to his prison term, Judge Bumb sentenced Beukas to two years of supervised release, fined him $50,000 and ordered him to pay $69,883 in restitution to the bankruptcy trustee for distribution to creditors.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Region 3 U.S. Trustee Roberta DeAngelis and the Newark office of the U.S. Trustee, for the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. 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
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Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, N.J.
Beaumont Man Sentenced for Pappadeaux’s CarjackingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 20-year-old Beaumont, Texas man has been sentenced to federal prison for carjacking in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Rogelio Arellano Torres pleaded guilty on Jan. 14, 2013, to carjacking and was sentenced to 144 months in federal prison today by U.S. District Judge Marcia Crone.According to court documents, on June 24, 2012, law enforcement officers were dispatched to the Walden Road area of Interstate-10 south where they found a young woman visibly upset, crying and shaking. The woman told them she had been forcibly kidnapped from the Pappadeaux’s parking lot in her own car and forced to withdraw money from her account through an ATM. The woman was eventually forced from her vehicle and the assailant fled with her car, purse and cell phone. She described the man, which police believed to be Torres based on previous contact with him, and she was able pick him out of a photo line-up. Torres was indicted by a federal grand jury on July 11, 2012, and charged with carjacking.
This case was investigated by FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Bank Robber Sentenced to 10 Years in Prison for Two Newark Bank RobberiesRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man was sentenced today to 120 months in prison for robbing the Garden State Community Bank in Newark on two separate occasions, U.S. Attorney Paul J. Fishman announced.
Alfred Ferguson, 55, of Newark, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to two counts of bank robbery. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Alfred Ferguson committed two bank robberies on Sept. 17, 2012, and October 9, 2012, both of the Garden State Community Bank in Newark. Ferguson used a similar procedure for both robberies: After entering the bank wearing a red bandana over the lower part of his face, Ferguson would verbally threaten the bank teller, vault over the glass partition, and empty money from bank tellers’ drawers. While fleeing on his bicycle from the scene of the second robbery, Ferguson was apprehended by the police.
In addition to the prison term, Judge Chesler sentenced Ferguson to three years of supervised release and ordered him to pay $34,136 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford with the investigation leading to today’s sentence. He also thanked the Newark Police Department for their contribution to the case.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: John Yauch Esq., Federal Public Defender’s Office, Newark
Army Private and Mother Sentenced for First Degree Child Abuse Murder of Ten-Year-Old Boy at Fort Sill Army PostRead the Press Release
Oklahoma City, Oklahoma – Today, United States District Judge Stephen P. Friot sentenced CONNELL C. WILLIAMS, 33, from Fort Sill, Oklahoma, to life imprisonment without the possibility of parole, and CANDICE C. HOLLOWAY, 32, from Norfolk, Virginia, to 30 years imprisonment for their roles in the first degree child abuse murder of Holloway’s ten-year-old son on Fort Sill Army Post, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, Williams, an enlisted member of the United States Army, was assigned to Fort Sill in Comanche County, Oklahoma, in August 2010. In September 2010, Holloway and her children moved into Fort Sill military housing with Williams. Williams and Holloway were not married and Williams is not the biological father of the two children. From early 2011 through May of 2011, Williams and Holloway intentionally committed child abuse murder by depriving Holloway’s ten-year-old son of food as a form of punishment, which ultimately resulted in his starvation death on May 5, 2011.
Holloway pled guilty to first degree murder and agreed to serve 30 years in a federal prison, followed by five years of supervised release, in exchange for her cooperation and testimony against Williams, who was facing a possible death sentence. Williams’ trial began in February 2013, and Holloway testified against Williams. During the trial, Williams agreed to enter a plea of guilty to first degree child abuse murder and accept a mandatory sentence of life imprisonment without the possibility of parole. In exchange for Williams’ guilty plea, the Department of Justice agreed to withdraw the notice to seek the death penalty.
This case was investigated by the Federal Bureau of Investigation and the United States Army Criminal Investigation Division. The case was prosecuted by United States Attorney Sanford C. Coats, Assistant U.S. Attorney Robert A. Bradford, and retired Assistant U.S. Attorney Randal A. Sengel.
Armed Bank Robber Gets 19 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Shariff Marcelle Williams, 33, from Grand Rapids, Michigan, was sentenced to 19 years in prison for Armed Bank Robbery and Brandishing a Firearm During a Robbery, announced U.S. Attorney Patrick A. Miles, Jr. today. U.S. District Judge Robert J. Jonker sentenced Williams to 12 years on the Armed Bank Robbery charge and seven years on the Brandishing a Firearm During a Robbery charge to be served consecutively. Williams must also pay $43,762.95 in restitution. At the sentencing hearing, Judge Jonker noted Williams’ prior history of violent crimes, including two prior robberies in 2007.
In May of 2012, Williams committed two armed bank robberies in Grand Rapids -- the May 7 robbery of the PNC Bank branch located on Lake Eastbrook Boulevard and the May 24 robbery of the Fifth/Third Bank branch located on Chicago Drive. During the robbery of the Fifth/Third Bank, Williams produced a semi-automatic handgun from his waistband, racked a round into the weapon’s chamber, and started waving the handgun around to make the bank employees move faster.
Williams was apprehended after his failed attempt to rob the same PNC Bank branch on October 5, 2012. Employees at PNC Bank saw Williams approaching dressed in a dark, hooded sweatshirt and wearing a dark mask and gloves. The employees locked the door and called for the police. After a short chase, Williams was arrested as was his accomplice, Rosheda Durham, who was acting as the getaway driver. Durham was sentenced in a separate proceeding in March 2013. She was sentenced to serve one year in custody and also ordered to pay restitution.
This case was investigated by the FBI. Prosecution of the case is assigned to Daniel Y. Mekaru, Assistant U.S. Attorney.
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Arlington, Texas, Police Officer Charged with Unlawfully Providing Law Enforcement Sensitive Information to A Known Drug DealerRead the Press Release
Defendant Allegedly Involved in Anabolic Steroids Distribution Investigation
DALLAS — Thomas S. Kantzos, 45, of Fort Worth, Texas, an officer with the Arlington Police Department (APD), was arrested last night on a federal criminal complaint charging him with unlawfully providing law enforcement sensitive information by exceeding authorized access to a protected computer. He will make his initial appearance in federal court this afternoon, at 2:00 p.m., before U.S. Magistrate Paul D. Stickney. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the affidavit filed with the criminal complaint, a particular individual (witness), who was arrested in January 2013 for distributing anabolic steroids, a Scheduled III controlled substance, admitted to routinely using and distributing anabolic steroids and human growth hormones (HGH) during the last 13 years. This witness also admitted that during the last five or six years, he directly and regularly provided anabolic steroids and HGH to Kantzos, whom he knew to be an officer with the APD. In fact, on at least one occasion, this witness delivered approximately 20 HGH kits to Kantzos while Kantzos was on duty, wearing an APD uniform and driving a marked APD patrol car.
The affidavit further notes that on multiple occasions, Kantzos solicited anabolic steroids from this witness for himself and for others, including friends and colleagues in the APD. Kantzos allegedly collected money from the other individuals before he obtained the steroids, but on some occasions, he “fronted” the money for the purchases. According to the affidavit, most of the anabolic steroids and HGH he obtained from this witness were provided to other officers of the APD. Also, Kantzos allegedly put this witness in contact with two other APD officers so that they could obtain anabolic steroids directly.
Kantzos was authorized to access law enforcement information obtained through the Texas Crime Information Center (TCIC) and the National Crime Information Center (NCIC), and he received specialized training on the authorized uses of the information, as well as the potential penalties for the misuse of such information. Personal use of such information, including releasing information to members of the general public, is not authorized and violates APD policy.
On several occasions, according to the affidavit, this witness, who indicated he was concerned that police might be watching his activities, asked Kantzos to query a name or a license plate using a law enforcement database. On several occasions, Kantzos did this, or had someone else do it for him, and then provided the obtained sensitive information to the witness. In fact, on one occasion in December 2011, Kantzos provided the name of a person who was known to be a law enforcement officer, and based on that information, the witness inspected his/her vehicle and discovered a tracking device attached to it. The investigation revealed that this witness immediately began “laying low” for several weeks. During that time, however, the witness and Kantzos talked about the tracking device and the police surveillance of the witness.
A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s Office has 30 days to present the matter to a grand jury for indictment. Kantzos is charged with exceeding authorized access to a protected computer. That offense, as charged, carries a maximum statutory penalty 10 years in federal prison and a $250,000 fine, per count.
The matter is being investigated by the FBI and the Texas Ranger Division of the Texas Department of Public Safety. Assistant U.S. Attorney Mark Penley and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay are in charge of the prosecution.
Apple Valley Woman Sentenced for Defrauding A Home Health Care Company and MedicaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, an Apple Valley woman was sentenced for defrauding both her employer and Medica. United States District Court Judge David S. Doty sentenced Lori Jo Mueller, age 48, to 51 months on one count of wire fraud and one count of health care fraud in connection to the crime. Mueller was charged on January 9, 2013, and pleaded guilty on February 4, 2013. In her plea agreement, Mueller admitted that from June of 2006 through June of 2012, she embezzled approximately $840,000 from Edelweiss Home Health Care, using the funds for her personal use.
Mueller began working for Edelweiss, which is located in Maple Grove, in 2002, and she was ultimately promoted to the position of vice president of operations. In that capacity, she was responsible for the review and payment of corporate invoices, bookkeeping, and other financial matters. Mueller admitted using her access to the corporate checking account to issue payments to herself. She also concealed her actions from the company owners and made misrepresentations concerning the company’s financial state.
In addition, from March of 2010 through June of 2012, Mueller defrauded Medica, a non-profit corporation that provides health insurance products to individuals and families. She administered claims submitted to various insurers seeking reimbursement for services provided by Edelweiss nursing staff. In some instances, Mueller double-billed by allowing claims for the same services to multiple insurance providers. For example, Mueller allowed both Minnesota Medicaid and Medica to be billed for identical services provided to one client. The particular double-billing resulted in a double-payment to Edelweiss with Medicaid being the proper payer and Medica being the overpayer. As a result of this criminal behavior, Mueller defrauded Medica of over $600,000.
This case was the result of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services-Office of Inspector General (“DHHS-OIG”), and Minnesota Attorney General’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney David M. Genrich.
The U.S. Attorney’s Office participates in a task force with the Medicaid Fraud Control Unit at the Minnesota Attorney General’s Office that focuses on home health care fraud trends. The task force includes the DHHS-OIG, the FBI, the Internal Revenue Service, and other federal, state, and local law enforcement partners.
As a result of federal convictions for health care fraud, defendants are excluded from participating in federal health benefit programs, including Medicare and Medicaid. Exclusion determinations are made by the U.S. Department of Health and Human Services. Nationwide, more than 3,000 individuals were excluded from program participation in Fiscal Year 2010 based upon criminal convictions or patient abuse or neglect, license revocations, or other factors.
For more information, visit http://www.stopmedicarefraud.gov/or http://www.stopfraud.gov/protect-health.html.Albuquerque Man Sentenced to Twenty Years in Federal Prison for Armed Robbery SpreeRead the Press Release
ALBUQUERQUE – This morning, Oscar Marquez, 23, of Albuquerque, N.M., was sentenced to 20 years in federal prison followed by three years of supervised release for his conviction on Hobbs Act robbery and firearms charges arising out of a crime spree that involved robberies of four Albuquerque-area businesses at gunpoint during a two-week period. Marquez’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, 2nd Judicial District Attorney Kari E. Brandenburg, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Ray Schultz of the Albuquerque Police Department.
Marquez was charged in an eight-count indictment with four counts of violating the Hobbs Act by interfering with a business involved in interstate commerce by robbery, and four counts of using a firearm during and in furtherance of a crime of violence. The indictment, which was filed in Oct. 2012, also charged co-defendant, Rebecca Aguilar, 25, of Albuquerque, with aiding and abetting one of the robberies.
The indictment charged Marquez with robbing the following four Albuquerque-area businesses: the Captain D’s Restaurant on May 28, 2012 (Count 1); a Cricket Wireless Store on May 29, 2012 (Count 3); a King Wireless Store on June 7, 2012 (Count 5); and another Cricket Wireless Store on June 9, 2012 (Count 7). Counts 2, 4, 6 and 8 charged Marquez with using a firearm during each of the four robberies. It also charged Aguilar with aiding and abetting the May 9, 2012 robbery.
On Jan. 18, 2013, Marquez entered guilty pleas to Counts 3, 5, 6 and 7 of the indictment, and admitted robbing store clerks at three businesses at gunpoint between May 29 and June 9, 2012. Marquez also pled guilty to an information charging him with the armed robbery of a store clerk at an Albuquerque-area Game Stop on June 10, 2012.
During today’s sentencing hearing, Marquez also was ordered to pay restitution to the businesses that were the victims of his criminal conduct. As required by the terms of his plea agreement, Counts 1, 2, 4 and 8 of the indictment against Marquez were dismissed after his sentence was imposed.
Aguilar, who was arrested on Oct. 15, 2012, entered a guilty plea on to Count 7 of the indictment, the sole charge against her on Feb. 6, 2013. Aguilar is scheduled to be sentenced on July 9, 2013. Under the terms of her plea agreement, she will be sentenced to five years in federal prison followed by a term of supervised release to be determined by the court.This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. The new initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the District Attorney’s Office for the 2nd Judicial District of the State of New Mexico, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Albuquerque Man Sentenced to One Hundred Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Michael Segura, 36, was sentenced this afternoon to 100 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm. Segura’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Segura was indicted in May 2012 and charged with being a felon in possession of a firearm and ammunition in March 2012, in Bernalillo County, N.M. According to the indictment, Segura was prohibited from possessing firearms or ammunition because he previously had been convicted of two robberies and one escape from jail in the 2nd Judicial District Court for the State of New Mexico. Segura was arrested in Sept. 2012, after he was transferred from state custody into federal custody. He has been in federal custody since that time.
According to court filings, Segura was arrested on state charges on March 26, 2013, after his estranged wife called 911 and reported that Segura had discharged a firearm through the window of her apartment, placing her in fear for her safety and the safety of her three-year-old child. At the time, she had a valid order of protection against Segura. Court records reflect that, in addition to the three aforementioned felony convictions, Segura previously had been convicted of five separate domestic violence offenses between 1998 and 2011. The state charges that arose out of this incident were dismissed after Segura was arrested on the federal indictment.Segura pled guilty to the indictment on March 20, 2013, without the benefit of a plea agreement and admitted unlawfully possessing a .40 caliber semi-automatic pistol on March 26, 2012, in Bernalillo County, N.M.
This case was investigated by the Albuquerque office of the Bureau of Alcohol Tobacco, Explosives and Firearms and the Albuquerque Police Department. It was prosecuted by Assistant U.S. Attorney David M. Walsh and Raul Torrez as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Alabama Man Living in Metairie, James W. Henley, Pleads Guilty for Failure to Register as Sex OffenderRead the Press Release
JAMES W. HENLEY, age 45, a resident of Metairie, Louisiana, plead guilty today to an indictment by a Federal Grand Jury for failure to register as a sex offender, announced U. S. Attorney Dana J. Boente.
HENLEY faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and up to three (3) years of supervised release. Sentencing is scheduled for October 9, 2013 before U.S. District Court Judge Martin L. C. Feldman.
According to documents filed in federal court, in 1995, HENLEY pled guilty to Rape in the Second Degree, a class B felony, in the Circuit Court of Covington County, Alabama. HENLEY was sentenced to 15 years imprisonment under the Habitual Offender Act. Prior to HENLEY’s release, on January 23, 2001, he was advised that he would have to register/notify law enforcement authorities of his address for the next 25 years.
In October 2012, HENLEY moved from Alabama to Louisiana and failed to notify law enforcement authorities of his move. On January 11, 2013, Deputy U.S. Marshals observed HENLEY walking along Metairie Lawn Drive in Metairie, Louisiana. HENLEY was placed under arrest and advised of his Miranda rights. Marshals confirmed that HENLEY had not registered with either Jefferson Parish or any law enforcement agency in the state of Louisiana. Further, HENLEY failed to notify the authorities in Alabama that he had moved to Louisiana.
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."
This case was investigated by the U.S. Marshals Service. The prosecution of this case was handled by Project Safe Childhood Coordinator and Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
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Alabama Man Indicted for Multi-state <br /> Stolen Identity Refund Fraud SchemeRead the Press Release
Christopher Cordelle Davis, of Montgomery County, Ala., was indicted by a federal grand jury in the Middle District of Alabama for his role in a scheme to file fraudulent tax returns using stolen identities, the Justice Department and Internal Revenue Service (IRS) announced today following Davis’s arrest. He was charged with conspiracy to defraud the United States, five counts of wire fraud, and five counts of aggravated identity theft.
According to the indictment, Davis provided stolen identities to Kenneth Jerome Blackmon Jr. Davis and Blackmon then filed fraudulent tax returns using the stolen identities. The refunds would be directed to debit cards. Davis would recruit individuals to obtain the debit cards and to go on trips during which the cards would be used to cash out the refund money at various locations in different states, including Georgia and South Carolina. The indictment also alleges that in September 2011, Davis possessed over 600 stolen identities, some taken from a medical facility in Alabama and over 200 prepaid debit cards in Gwinnett County, Ga. Blackmon was previously convicted and sentenced to 51 months in prison for his role in the conspiracy.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty. If convicted, Davis faces a maximum potential sentence of five years in prison for the conspiracy charge, up to 20 years in prison for each wire fraud charge and a mandatory two-year sentence for the aggravated identity theft counts. He will also be subject to fines and mandatory restitution and forfeiture if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason Poole and Justin Gelfand of the Justice Department’s Tax Division are prosecuting the case with assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax
10 Defendants Charged in $3.6 Million Drug Trafficking RingRead the Press Release
Baltimore, Maryland - A federal grand jury today has indicted the following 10 defendants for conspiring to distribute cocaine and cocaine base in Baltimore:
Shawn Malone, a/k/a “Studder,” and “Snaps,” age 32, of Baltimore;
Howard McCray, a/k/a “Pooh,” age 33, of Baltimore;
Antoine Bolden, a/k/a “Demo,” age 36, of Baltimore and Severna Park, Maryland;
Stanley Malone, a/k/a “Man-Man,” and “Rambo,” age 32, of Brooklyn, Maryland;
Travis Gaines, a/k/a “Jim,”age 33, of Baltimore;
Melvina Banks, a/k/a “Bebe,” age 52, of Baltimore;
Luis Reyes, a/k/a “Louis Reyes,” and “Rico,” age 39, of Dundalk, Maryland;
Donte Chase, a/k/a “Turbo,” age 34, of Baltimore;
Karl McDonald, a/k/a “Lil Boo,” age 29, of Columbia, Maryland; and
Latoya Mack, age 25.
Mack is also charged with distributing cocaine.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
"The indictment of 10 defendants today emphasizes the proactive work that the DEA, the Baltimore Police Operational Intelligence Section (OIS), the Baltimore City States Attorney's Office and the U.S. Attorney’s Office undertake to combat drug distribution in Baltimore," stated Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration, Washington Field Division. "By hitting a drug organization where it hurts most by seizing drug proceeds, in this case seeking $3.6 million in forfeiture, we are crippling its ability to ever return," added Colder.
The two count indictment alleges that from at least 2010 until June 6, 2013 when the defendants were arrested, the defendants conspired to distribute cocaine and cocaine base.
Court documents allege that Shawn Malone uses females to bring cocaine, purchased from sources in Texas and Arizona, on buses to Baltimore for distribution. According to court documents, Bolden, a wholesale supplier of cocaine, with assistance from Stanley Malone and Travis Gaines, sells the drugs to Reyes, Chase and others. McDonald operates a “street shop” in the area of West North Avenue and Lennox Street in Baltimore for the organization. McCray, who works at the University of Maryland hospital, was overheard during the investigation arranging for the sale of drugs and obtaining a gun.
According to court documents, Shawn Malone and other members of the conspiracy allegedly operate a limited liability corporation known as SJM (the initials of Shawn Joseph Malone) LLC in order to buy rental properties under the guise of appearing to have legitimate income. The drug organization is alleged to have purchased properties, including 1911 Braddish Avenue and 2519 Fairmount Avenue, to either carry out drug distribution activities or launder drug proceeds.
The indictment seeks forfeiture of $3.6 million, based on 90 kilograms of cocaine at a minimum value of $40,000 per kilogram over the course of the conspiracy, as well as five Baltimore properties.
The defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison for the drug conspiracy. Mack also faces 40 years in prison for distributing cocaine.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James Wallner, who is prosecuting the case.