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Friday 26 April 2013
Goodwin Urges West Virginians to Join Prescription Drug Take-back on SaturdayRead the Press Release
Saturday’s event is the sixth national prescription drug collection of its kind
CHARLESTON, W.Va. - United States Attorney Booth Goodwin today asked West Virginians to reach into their home medicine cabinets and pull out any unused, unwanted or expired prescriptions and turn them in at a drop-off site as part of National Prescription Drug Take-Back Day, Saturday, May 27, 2013. The event will be held from 10 a.m. to 2 p.m. More than 100 locations across the state will serve as designated drop-off sites for Saturday’s event.
“Prescription drug abuse remains a terribly serious problem in West Virginia and around the country,” U.S. Attorney Booth Goodwin said. “For many people, especially teenagers, the road to addiction starts with pills they find in their parents’ or grandparents’ medicine cabinets. Worse than that, our region has seen a wave of terrifying home invasions by prescription drug addicts looking for pills or for money to buy pills.”
Goodwin continued, “Our previous Take-Back events have been striking successes. This ongoing initiative has played an important role in fighting prescription drug abuse. I urge everyone to clean out their medicine cabinets and drop off unneeded medications at a take-back site on Saturday the 27th.”
Saturday’s Take-Back event provides an opportunity for people who missed previous events, or who have accumulated unwanted, unused prescription drugs since the last Take-Back, to safely dispose of those medications.In the five previous Take-Back events, the Drug Enforcement Administration and numerous federal, state, and local law enforcement partners have collected more than 2 million pounds (1,018 tons) of prescription medications nationwide.
For more information about take-back locations in West Virginia, please visit www.dea.gov and follow the link for National Prescription Take-Back Day.
Former Postal Carrier Heads to Federal Prison for Stealing Government FundsRead the Press Release
HOUSTON - Mytasha Henry, a former U.S. Postal Service letter carrier from the Houston area has been ordered to prison following her conviction on charges of stealing government funds with regards to the Office of Workers’ Compensation Program (OWCP), United States Attorney Kenneth Magidson announced today. Henry pleaded guilty Friday, Nov. 16, 2012.
Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Henry a sentence of 24 months and was further ordered to pay was further ordered to pay $171,039.50 in restitution. Henry will also be required to serve a term of three years of supervised release following completion of the prison term.
Henry, 32, was indicted by a federal grand jury in Houston May 8, 2012, on five counts of mail fraud, one count of false statements regarding federal workers’ compensation benefits and one count of theft of government money. She later pleaded guilty to all counts.
The OWCP allows federal employees who sustain on-the-job injuries to receive medical payments and compensation benefits, including reimbursement for medically-related travel. From July 2007 to July 2008, Henry worked as a letter carrier at the Royall Station in Houston. Citing an injury that occurred while delivering mail, she filed a Federal Employee’s Claim for Continuation of Pay/Compensation in 2007.
From Sept. 21, 2007, through May 14, 2012, Henry filed medical travel refund requests with the U.S. Department of Labor (DOL) and OWCP claiming mileage reimbursement and parking and toll fee reimbursements for physician and rehabilitation appointments which she did not attend nor incur associated costs. Henry defrauded the DOL and OWCP of more than $173,000, which she received as a result of her fraudulent claims.
Henry is in custody where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by DOL-Office of Inspector General and the U.S. Postal Service-Office of Inspector General. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
Former Nurse Practitioner to Serve Forty-One Month Federal Prison Sentence for Illegal Distribution of OxycodoneRead the Press Release
ALBUQUERQUE – Gloria Vigil, 63, of Albuquerque, N.M., was sentenced earlier today to 41 months in federal prison followed by three years of supervised release for conspiring to distribute oxycodone outside the scope and usual course of professional practice and without a legitimate medical purpose. Vigil’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Joseph M. Arabit, Special Agent in Charge of the El Paso Field Division of the DEA.
Vigil was arrested on federal drug trafficking charges in July 2010, and subsequently was charged with conspiracy to distribute oxycodone and the unlawful distribution of oxycodone. At the time of her arrest, Vigil was a nurse practitioner.
The charges against Vigil were arrested as the result of a DEA into a prescription drug trafficking ring operating out of Vigil’s medical office, Clinica de la Gloria (Clinic of Glory), in southwest Albuquerque. According to court filings, Vigil had engaged in a pattern and practice of writing fraudulent prescriptions for oxycodone for individuals who were never treated by her and did not have any medical provider-patient relationship with her medical office. Vigil also sold fraudulent oxycodone prescriptions for up to $250 each, and enlisted others to help her distribute oxycodone.
Vigil pled guilty to conspiracy to distribute oxycodone in May 2011. In entering her guilty plea, Vigil acknowledged that she operated her own medical clinic in Albuquerque and that, as a nurse practitioner, she was permitted by law to write prescriptions for controlled substances in the scope of her medical practice. Vigil admitted writing and providing prescriptions for oxycodone for individuals with whom she had no patient/provider relationship and for whom she did not believe such drugs were medically necessary. She further admitted that these individuals would provide her with names and dates of birth of others in whose names she would write prescriptions. In order to avoid detection, Vigil created patient charts in each of these names so as to make it appear that she had a legitimate patient/provider relationship with these individuals. In exchange for writing these fraudulent prescriptions, Vigil, received payment in cash.
Vigil also admitted that, on two occasions in June 2010, she met with an individual for whom she had written numerous prescriptions for oxycodone in the past, and that, on these two occasions, she wrote a total of nine prescriptions for oxycodone various names provided to her by the individual. These prescriptions were written outside the scope of her medical practice and without any legitimate medical justification. Vigil later learned that this individual was working as an informant for the DEA.
Vigil has been in federal custody since entering her guilty plea.
The case was prosecuted by Assistant U.S. Attorney John C. Anderson and was investigated by the Albuquerque office of the DEA in cooperation with the Albuquerque Police Department, Bernalillo County Sheriff’s Office, New Mexico Board of Pharmacy, and the Albuquerque Office of the FBI.
For more information on oxycodone and other drugs, the U.S. Attorney’s Office and the DEA El Paso Division encourage parents and their children to visit the following interactive DEA websites: www.justthinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.Former N.C. Probation Officer Sentenced to 17 Months in Prison on Extortion and Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – A former North Carolina probation officer was sentenced on Thursday, April 25, 2013, in U.S. District Court to serve 17 months in prison for extortion and drug trafficking offenses involving persons under his supervision, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. James David Franklin, 46, of Lenoir, was also sentenced to three years of supervised release following his prison term.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Director Gregory McLeod of the North Carolina State Bureau of Investigations (NC SBI).According to court documents and court proceedings, from April 2001 through July 2010, Franklin, was employed as a Surveillance Officer by the North Carolina Department of Correction’s Division of Community Corrections (DCC) and supervised probationers on intensive supervision in Burke and Caldwell Counties. According to filed documents, Franklin primarily conducted curfew checks and compliances searches and had arrest power over probationers and parolees. Court records indicate that from in or about July 2009 to in or about July 2010, Franklin used his position on multiple occasions to extort drugs from an individual who had been under Franklin’s supervision (“Probationer #2”). Specifically, court records show that Franklin, via text messages and other communications, repeatedly asked Probationer #2 to supply him with narcotics, including methamphetamine and hydrocodone.
Court records show that Franklin would arrange to retrieve the narcotics from Probationer #2’s driveway in exchange for cash. Law enforcement officers were alerted to Franklin’s conduct when Probationer #2 complained to his federal probation officer and to his primary North Carolina probation officer. Subsequently, Franklin was placed on desk duty. While on desk duty, Franklin sent a text message to Probationer #2 asking him to sell hydrocodone pills in exchange for a portion of the proceeds from the sale. Specifically, Franklin told Probationer #2 he would pay him “3 dollars a piece” for 125 hydrocodone pills. According to court records, Franklin was apprehended by law enforcement officers when he went to Probationer #2’s house to deliver the hydrocodone pills in exchange for $375 in cash.
In December 2011, Franklin pleaded guilty to one count of extortion under color of official right and one count of possession with intent to distribute hydrocodone.
vWhen announcing the sentence, U.S. District Judge Martin Reidinger noted that the sentence imposed was more than minimally required under the Federal Sentencing Guidelines because the defendant was “A person who by reason of his position had taken actions that undermine the integrity of the legal system.”Franklin has been in custody since April 2011. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and SBI. The case was prosecuted by Assistant United States Attorney Michael Savage of the U.S. Attorney’s Office in Charlotte.
Former Executive Director of Indian Human Resource Center Indicted for Embezzling Non-profit’s MoneyRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that David Hedley, a former Executive Director of the Indian Human Resource Center (“IHRC”), was arraigned yesterday on an indictment charging him with eight felony counts of theft from the San Diegobased non-profit that received federal funds. The defendant was arrested by Federal Bureau of Investigation (“FBI”) agents on April 25, 2013, in Riverside, California.
According to the indictment, Hedley served as the Executive Director of IHRC between approximately September 10 and December 11, 2012. During that time, Hedley is believed to have stolen approximately $140,000 from the non-profit.
According to information disclosed at Hedley’s arraignment, on numerous days when Hedley was improperly withdrawing money from IHRC’s bank account, he was spending comparable sums gambling at a local Indian casino. For example, on October 9, 2012, Hedley withdrew $15,000 in cash from the IHRC bank account at the North Island Credit Union (“NICU”) located in La Mesa, California. On that same day, Hedley purchased $15,000 worth of chips, tokens or gaming instruments at the Viejas Casino. Similarly, on the October 12, 2012, Hedley improperly withdrew $20,000 in cash from IHRC’s bank account at the NICU branch in Imperial Beach, California and purchased over $20,000 in chips, tokens or gaming instruments the same day from Pala Casino.
The IHRC was established to train and assist Native Americans with finding employment outside the tribal setting and was awarded over a half million dollars in federal funding from the U.S. Department of Labor over the past two years as part of the Workforce Investment Act (“WIA”). The Workforce Investment Act of 1998 (“WIA”) established a national workforce preparation and employment system to meet the needs of persons seeking employment, including new entrants to the workforce, in order to increase the employment, job retention, earnings and occupational skills of participants, improve the quality of the workforce, reduce welfare dependency, and improve the productivity and competitiveness of the United States.
United States Attorney Laura E. Duffy commented that, “The taxpayer resources provided to IHRC were intended to help create jobs by assisting the Native American community. I commend the FBI for its investigative work leading to these charges.”
FBI Special Agent in Charge Daphne Hearn commented, “At the most basic level this case is about one individual’s greed and the abuse of trust. The FBI will hold those accountable who line their own pockets at the expense of the American taxpayer.”
Hedley was arraigned on the indictment in the Central District of California before Magistrate Judge David Bristow; Hedley pleaded not guilty. Magistrate Judge Bristow set bail at $100,000 and ordered the defendant to appear in the Southern District of California on May 9, 2013.
The public is reminded that an indictment is not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Criminal Case No. 13CR1129-WQH David M. Hedley SUMMARY OF CHARGESCounts 1-8: Title 18, United States Code, Section 666(a)(1)(A) – Theft from Program Receiving Federal Funds
Forfeiture: Title 18, United States Code, Sections 981(a)(1)(C) and Title 28, United States Code, Section 2461(c)
INVESTIGATING AGENCIESFederal Bureau of Investigation
California Department of Justice, Bureau of Gambling ControlFormer Credit Union Employee Sentenced for EmbezzlementRead the Press Release
BOSTON – An Adams woman was sentenced yesterday in U.S. District Court in Springfield for embezzlement and other related charges.
Patricia Piscioneri, 67, was sentenced by U.S. District Judge Michael A. Ponsor to one day in prison, followed by two years of supervised release, the first six months of which must be spent in home confinement, 100 hours of community service, and a $3,000 fine. In January 2013, Piscioneri pleaded guilty to a 30-count indictment charging her with embezzlement of funds by a credit union employee and false entries.
While employed as the manager of the former Adams Municipal Employees Federal Credit Union (AMEFCU), Piscioneri embezzled credit union funds by creating fraudulent loan accounts in the names of credit union members and depositing the proceeds of these fraudulent loans into her own account(s), her husband’s account(s), other family members’ account(s), or used the proceeds to pay off earlier obtained fraudulent loans. In an attempt to avoid detection, Piscioneri created fraudulent loan documentation, such as loan applications and promissory notes and forged signatures on these documents, created false entries in the AMEFCU accounting system, and advanced the payment due dates of the fraudulent loans.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett.
Former Cleveland Resident Charged with Illegal Re-entryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury has returned an indictment charging Marcos A. Cardenas-Landino, age 24, formerly of Cleveland, with illegal re-entry following deportation or removal.
The indictment alleges that on February 27, 2013, Cardenas-Landino was illegally present in the United States after previously being deported subsequent to a conviction for the commission of possession of a controlled substance with intent to sell.
The indictment was presented to the grand jury by Assistant United States Attorney Lauren Bell after investigation by United States Immigration and Customs Enforcement.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Bank Teller Sentenced to Prison for Embezzlement of Government Funds and Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Victoria Metz, age 26, formerly a resident of Albany, Georgia, on April 25, 2013, by the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia, Albany, Georgia.
Ms. Metz was sentenced by Judge Sands to serve 48 months in the custody of the Bureau of Prisons and 3 years of supervised release after serving her sentence. She was also ordered to pay restitution to Colony Bank in the amount of $79,361.00.
On January 16, 2013, Ms. Metz was found guilty by a jury of Counts One through Twelve, Sixteen, Eighteen, Nineteen and Twenty. Counts One through Ten charged Embezzlement of Government Property, in violation of Title 18 United States Code, Section 641. Counts Eleven through Twenty charged Aggravated Identity Theft, in violation of Title 18 United States Code, Section 1028A.
“When Ms. Metz stole her victims’ identities, she took something from every one of us. The message should be clear, when you commit identity theft, you are going to jail,” said U.S. Attorney Michael Moore.
Ms. Metz while employed as a teller at Colony Bank, Leesburg, Georgia, knowingly cashed $79,361.00 in stolen Internal Revenue Service refund checks. Ms. Metz admitted to law enforcement agents that on some occasions she received a cut of the proceeds from the third party that supplied her with the stolen checks.The case was investigated by the United States Secret Service, and the Leesburg Police Department. The case was prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
Federal Jury Finds Meriden Grocery Store Operator Guilty of Food Stamp FraudRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found MYRACHID ELQUAFAI, 51, a citizen of Morocco last residing in New Haven, guilty of defrauding the federal Food Stamp Program while operating a Meriden grocery store. The jury returned the verdict today following a five-day trial before United States District Judge Janet C. Hall in New Haven.
According to the evidence disclosed during the trial, the federal Food Stamp Program, which is now known as the Supplemental Nutrition and Assistance Program (“SNAP”), is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an EBT card, which is similar to an ATM card. SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
ELQUAFAI operated CJ Express and Groceries, LLC, located at 145 West Main Street in Meriden. From approximately June 2010 to July 2012, ELQUAFAI conspired with Carlos Dominguez, the owner of CJ Express and Groceries, to redeem SNAP benefits at the store at a significantly discounted rate in exchange for cash and cigarettes. Since February 2010, it is estimated that $820,000 in illegal SNAP benefits were redeemed at the store.
The jury found ELQUAFAI guilty of one count of conspiracy to commit food stamp fraud and one count of food stamp fraud. Judge Hall has scheduled sentencing for July 19, 2013, at which time ELQUAFAI faces a maximum term of imprisonment of 10 years.
ELQUAFAI has been detained since his arrest on August 2, 2012.
Dominguez has pleaded guilty and awaits sentencing.
This matter has been investigated by the United States Department of Agriculture, Office of Inspector General and the Office of the Chief State’s Attorney. This case is being prosecuted by Assistant United States Attorneys Neeraj Patel and Anastasia King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]F.B.I. Arrests Century City Man for Allegedly Running Ponzi Scheme and Bilking Additional Victim After Being Sued by S.E.C.Read the Press Release
LOS ANGELES – A Century City man was arrested this morning by FBI special agents after he was charged with running a Ponzi scheme and then bilking another victim out of millions of dollars that he used to pay back earlier victims after the S.E.C. took him to court.
Shervin Neman, whose given name is Shervin Davatgarzadeh, 31, was arrested without incident this morning at his residence. Neman was arrested pursuant to a three-count fraud indictment that alleges he caused victims to suffer losses of more than $3 million.
The indictment alleges that Neman claimed to be a successful investor who made significant profits, but he in fact operated a Ponzi scheme from the summer of 2010 through last June by soliciting funds from investors with false claims that their money would be used to purchase foreclosed real estate and stocks, including pre-initial public offering shares. Instead of using investor funds to make these investments, the indictment alleges that Neman was spending most of the victims’ investment funds on personal expenditures and to repay other victims.
The Securities and Exchange Commission filed a civil complaint against Neman and his company, the Century City-based Neman Financial, Inc., on April 11, 2012, in United States District Court in Los Angeles. The lawsuit alleged that Neman was operating a multi-million dollar Ponzi scheme that was targeting primarily members of the Persian-Jewish community in Los Angeles. Subsequently, a federal judge issued orders prohibiting Neman from committing securities fraud (see, for example: https://www.sec.gov/litigation/litreleases/2012/lr22331.htm).
The month after the SEC filed its lawsuit, Neman solicited $2 million from another victim with false promises that Neman could obtain pre-IPO shares in Facebook, according to the indictment. Neman allegedly used the funds obtained from the new victim to pay, among other things, most of his earlier victims and the law firm representing him in the SEC action. Neman then had victims who had been “paid back” write e-mails saying that Neman did not owe them money, according to the indictment, which goes on to say that Neman used these e-mails as part of his defense in the SEC case. In June 2012, Neman sent to the later victim a $2,235,800 check that purported to be the return on the Facebook investment, but that check bounced, according to the indictment.
Neman was charged in an indictment returned under seal Wednesday by a federal grand. That indictment, which was unsealed this morning after Neman’s arrest, charges him with two counts of wire fraud and one count of mail fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The three fraud charges in the indictment each carry a statutory maximum sentence of 20 years in federal prison.
Neman is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
This case is the result of an investigation by the Federal Bureau of Investigation.
Release No. 13-058
Employee Arrested at Premier Internal MedicineRead the Press Release
MOBILE, Ala. - Madonna Lynette Reed, 28, of Fairhope, Alabama, was arrested on April 25, 2013, at her place of employment, Premier Internal Medicine, in Fairhope, on a federal criminal complaint charging conspiracy to possess with intent to distribute hydrocodone acetaminophen and possession with intent to distribute hydrocodone acetaminophen. That substance is a Schedule III controlled substance. Reed’s initial appearance was scheduled today for 11:00 a.m., before United States Magistrate Judge William E. Cassady. The judge will determine whether there is probable cause to bind her over for consideration by a grand jury, and whether there are conditions that can be set to reasonably assure the safety of the community and her appearance at subsequent court proceedings. The judge will also take up the matter of her legal representation.
The case was investigated by the FBI, assisted by the Baldwin County Sheriff’s Office, and supported by the Fairhope Police Department. It is being prosecuted by Gloria Bedwell in the United States Attorney’s Office.
A defendant of course is presumed innocent unless and until she is convicted as the result of a jury trial or a guilty plea.
Eagle Butte Man Convicted of Simple Assault of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that David Roberts Jr., age 30, of Eagle Butte, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on April 24, 2013 and pled guilty to the Superseding Information that charged him with Simple Assault of a Minor.
The maximum penalty upon conviction is up to one year of custody, a $100,000 fine, and a $25 assessment to the Federal Crime Victims Fund.
The conviction is the result of an assault of a minor victim that occurred in Eagle Butte in May of 2012.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for June 24, 2013.
Defendant Indicted on Prohibited Possession of Firearms and AmmunitionRead the Press Release
Ted McCall Snow of Wilmer, Alabama, has been indicted on charges of being a felon in possession of firearms and ammunition, and possession of a stolen firearm. The Indictment charges that Snow was previously convicted of eleven cases of burglary, receiving stolen property and theft in Mobile County Circuit Court between 1989 and 2007. By virtue of these convictions, and Snow’s resulting status as a convicted felon he is prohibited from possessing firearms or ammunition. Snow is alleged to have possessed three types of ammunition on March 5, 2013, and three stolen firearms on March 8, 2013.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1); and, possession of a stolen firearm is a violation of Title 18, United States Code Section 922(j). The statutory maximum penalty provided by law for each charge is 10 years imprisonment. If however, the Defendant has three prior convictions for crimes of violence or serious drug offenses, the penalty provided by law on the felon in possession charge is a minimum mandatory sentence of 15 years to a maximum of life imprisonment.
As in all criminal cases, the Indictment returned by the Grand Jury is only a charge and the Defendant is presumed innocent.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and Mobile County Sheriff’s Office and the Mobile Police Department. The case will be prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Customer Service Representative Arrested for Issuing Fraudulently Obtained Florida Driver LicensesRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces a criminal complaint charging Walter Brown (41, Kissimmee) with conspiracy to knowingly and without lawful authority produce identification documents in violation of federal law. If convicted, he faces a maximum penalty of 15 years in federal prison. Brown made his initial appearance in federal court today before U.S. Magistrate Karla R. Spaulding.
According to the complaint, Brown was a Customer Service Representative (“CSR”) in the Office of the Osceola County Tax Collector. Brown’s primary duty was to issue driver licenses and identification cards. Surveillance camera footage from the Osceola County Tax Collector’s office located at 2501 E. Irlo Bronson Memorial Highway in Kissimmee, Florida, showed that Brown issued Florida Driver Licenses or identification cards based upon fraudulent and fraudulently obtained identity documents. While most customers were observed following the regular queue process, for example, providing their personal information to a receptionist; obtaining a number; waiting in the lobby area; and proceeding to the counter as directed by the queue system administrator, customers presenting fraudulent and fraudulently obtained documents were seen proceeding directly to Brown’s counter, bypassing the queue system entirely.
In his capacity as a CSR, the complaint alleges that Brown has issued at least 200 Florida driver licenses and identification cards to those who may not be legally entitled to the documents. In some cases, Brown fraudulently issued driver licenses and identification cards in multiple identities, to the same person.
The Osceola County Tax Collector’s Office terminated Brown from his employment today.A complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of State Diplomatic Security Services, and the Florida Highway Patrol Bureau of Criminal Investigations and Intelligence. It will be prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
Colombian Drug Trafficker Indicted and Extradited on Drug Trafficking ChargesRead the Press Release
Tampa, Florida - U.S. Attorney Robert E. O'Neill announces the unsealing of a three-count indictment charging Camilo Torres-Martinez, aka Fritanga, (41) with conspiracy to import into the United States 5 kilograms or more of cocaine; conspiracy to manufacture and distribute 5 kilograms or more of cocaine, intending that it would be unlawfully imported into the United States; and conspiracy to possess with intent to distribute 5 kilograms or more of cocaine, while on board a vessel subject to the jurisdiction of the United States. If convicted, he faces a mandatory minimum sentence of 10 years, up to a maximum penalty of life in federal prison for each count. Torres-Martinez was extradited from Colombia to the Middle District of Florida to face these charges.
According to the indictment, from an unknown date until the date of the indictment, August 20, 2008, Martinez-Torres and his drug trafficking organization (“DTO”) transported large quantities of cocaine in vessels dispatched off the Northern coast of Colombia. Martinez-Torres was the lead operative for the DTO “Los Urabenos,” which controls Northern Colombia’s drug trade. This DTO provided maritime transportation services to cocaine owners who wished to transport their cocaine by sea, through the international waters of the Caribbean. The cocaine was transported from the coast of Colombia to Honduras, for ultimate introduction into, and distribution in, the United States. The DTO utilized speedboats and fishing vessels to transport the cocaine.
On November 8, 2004, the United States Coast Guard (“USCG”), interdicted a 40-foot speedboat in international waters in the Carribean Sea. USCG personnel recovered a total of 2,652 kilograms of cocaine. On July 6, 2005, the USCG interdicted a Honduran-flagged fishing vessel, the Ocean Mystery, in international waters in the Carribean Sea. USCG personnel recovered a total of 2,483 kilograms of cocaine. Both of these vessels were organized and sent out by Martinez-Torres and his organization. Martinez-Torres was arrested while celebrating his marriage in an elaborate wedding on a Caribbean island.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Organized Crime Drug Enforcement Task Force’s (OCDETF) Panama Express Strike Force, comprised of agents and analysts from the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, United States Coast Guard Investigative Service, and the Joint Interagency Task Force South. 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 is being prosecuted by Assistant United States Attorney Maria Chapa Lopez.
Cleveland Woman Charged with Theft and Social Security FraudRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a two-count indictment charging Bonita A. Armstead, 37, of Cleveland, with one count of theft of government property and one count of Social Security Fraud.
The indictment alleges that Armstead stole and converted to her own use, approximately $122,149.10 in Social Security payments made to her that she was not entitled to receive.
The indictment further alleges that Armstead obtained and used a second Social Security account number to receive Social Security Benefits.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following investigation by agents of the Social Security Administration, Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
City Man Charged with Robbery Metro Bank with FirearmRead the Press Release
Oklahoma City, Oklahoma – JOSHUA ANTONIO MCCLENDON, 27, from Oklahoma City, has been arrested and charged with robbing the First Fidelity Bank located at 700 SW 29th, Oklahoma City, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the criminal complaint, McClendon is alleged to have entered the bank at 4:20 p.m. yesterday, April 25, 2013, armed with a handgun, where he robbed the bank and fled. Oklahoma City Police officers responding to the bank robbery located McClendon in the 700 block of SW 28th where he was arrested without incident.
If convicted, McClendon faces up to 25 years in prison. The public is reminded that the indictment is merely an accusation and that the defendant is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Oklahoma City Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ashley L. Altshuler.
Chinese Gang Leader Convicted of Double Murder and Racketeering Charges in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that XING LIN was convicted yesterday in Manhattan federal court of murdering two individuals in a Queens nightclub in 2004, engaging in racketeering from 1996 through 2010, and extortion. The jury found that LIN, the leader of the criminal enterprise, operated three illegal gambling parlors in Chinatown, extorted bus company owners and murdered two individuals. LIN was convicted after a two-week trial before U.S. District Judge Miriam Goldman Cedarbaum.
Manhattan U.S. Attorney Preet Bharara said: “Xing Lin now stands convicted for his role at the helm of a ruthless and deadly gang that went on a 13-year crime spree of extortion, racketeering, and violence, including a revenge killing and the murder of an innocent bystander. His life of crime is finally over and much of the rest of it will almost certainly be spent in a prison cell.”
According to the Superseding Indictment, other documents filed in Manhattan federal court, and the evidence presented at trial:
From 1996 until December 2009, LIN was the leader and “Dai Lo” - a Fuzhou term that translates as “Big Brother,” but commonly refers to the boss of a criminal gang - of a gang that operated in the Chinatown neighborhood of Manhattan and elsewhere. The members of LIN's gang were known as “followers.” LIN and his followers engaged in a number of criminal ventures, including the operation of high-stakes illegal gambling parlors in the Chinatown neighborhood of Manhattan; the extortion of business owners; and the beating, stabbing, and murder of rivals.
Beginning in 2002, LIN extorted the owners of a bus company that ran buses between Manhattan and Charlotte, North Carolina. In May 2004, Chang Qin Zhou, one of the bus company shareholders who was being extorted by LIN, refused to pay LIN additional money that LIN had demanded. During the early morning hours of July 30, 2004, Zhou was with a group of men and women in a private room in a karaoke bar in Flushing, Queens when LIN and one of his followers forced their way into the private room, and LIN ordered his follower to “shoot” Zhou. The follower shot Zhou six times, killing him. One of the bullets also struck and killed Mei Ying Li, a waitress who was working at the karaoke bar and was in the private room at the time of the shooting. A second waitress was shot in the leg and survived.
Following the shooting in the karaoke bar, LIN relocated his criminal gang to Toronto Canada, where he continued to run gambling parlors and use violence against his rivals.
LIN was arrested in Toronto, Canada, on April 14, 2011. Following extradition, LIN arrived in the United States on August 19, 2011.
LIN, 42, was convicted of one count of conspiracy to commit racketeering, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of racketeering, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of murder, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and extortion, which carries a maximum sentence of twenty years in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense. He was acquitted on one count of extortion conspiracy. LIN is scheduled to be sentenced by Judge Cedarbaum on September 10, 2013, at 11:00 a.m.
Mr. Bharara praised the outstanding investigative work of the New York Field Office of the Immigration and Customs Enforcement's Homeland Security Investigations and the New York City Police Department.
This case is being prosecuted by the Office’s Organized Crime Unit. Assistant United States Attorneys Peter Skinner and Jennifer E. Burns are in charge of the prosecution.
U.S. v. Xing Lin S2 Indictment
Child Pornography Charges Filed Against Cuyahoga Falls ManRead the Press Release
Steven J. Woods, 49, of Cuyahoga Falls, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of OhioThe indictment charges that from on or about February 28, 2013, through on or about April 4, 2013, Woods knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On April 5, 2013, images of child pornography were also found on his external hard drive.
The actual sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Cleveland Office of the United States Secret Service and the Cuyahoga Falls Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bulk Mailing Service to Pay $500,000 to Resolve Claims for Underpaid PostageRead the Press Release
Oklahoma City, Oklahoma -- Bokchito Mail Center, S&T Management, Inc., The Cleaning Authority, Inc. and The Cleaning Authority, LLC (collectively "Bokchito Mail Center and its affiliates"), have agreed to pay $500,000 to the United States to settle allegations that it obtained postage discounts to which is was not entitled, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On behalf of the United States Postal Service, the United States Attorney’s Office reached a settlement of allegations that from September 14, 2006, through February 21, 2008, the Bokchito Mail Center and its affiliates submitted and paid for mailings at a postal rate to which they were not entitled. The Postal Service offers lower postal rates to mailers who comply with certain preparation and sorting requirements because these actions save the Postal Service time and money. The United States alleges that the Bokchito Mail Center and its affiliates claimed and paid the Enhanced Carrier Route postage rate when their mailings did not comply with the preparation and sorting requirements to qualify for that rate.
"Mailers who claim improper postage discounts not only gain an unfair advantage over their competitors, they also short-change the Postal Service of necessary funds to perform their work," said U.S. Attorney Sanford C. Coats. "We will continue to work with the Postal Service to ensure that the proper postage is paid."
"Postal Inspectors appreciate the strong stance U.S. Attorney Sanford Coats has taken against those who try to take advantage of the Postal Service through shortchanging postage," said Fort Worth Division Acting Inspector in Charge Mark Applewhaite. "Among the many roles Postal Inspectors have, one of the most important is to protect the U.S. Postal Service revenue, which ensures a level playing field for all customers, be they large mailers or someone mailing a single envelope."
In reaching this settlement, Bokchito Mail Center and its affiliates did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Branch Man Pleads Guilty to Theft of Intellectual PropertyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Glenn J. Soileau, 64, of Branch, La., pleaded guilty before U.S. District Magistrate Judge C. Michael Hill to illegally accessing a computer which held valuable copyright protected oilfield intellectual property, to include diagrams, product designs, schematics and oil exploration related materials.
According to the Stipulated Factual Basis at the guilty plea, Soileau admitted that he used a portable USB storage device to access his former employer’s computers at Applied Electronic Systems and Sondex, which are both located in Broussard, La., and subsidiaries of General Electric Oil and Gas (GE). Soileau downloaded more than 3,700 files containing pictures, diagrams and other information relating to tools and equipment used in oilfield exploration work. He then brought the information to his new employer at Advanced Electronic Services, and they used the information for work done at Advanced Electronic Services. After being questioned by GE security staff, Soileau admitted to taking the computer files and providing them to his new employer. FBI agents linked Soileau to the computers used in the theft through the USB.Soileau faces a maximum penalty of five years in prison, a $250,000 fine, restitution, and three years of supervised release for the count of unauthorized access to a protected computer. Sentencing was set for Sept. 13, 2013, in Lafayette. The FBI conducted the investigation. Assistant U.S. Attorney Namie P. Myers is prosecuting the case.
“Theft of intellectual property information is a growing problem in our country,” Finley stated. “We are primarily seeing it here in the oil and gas industry, but it occurs in many other industries. Intellectual Property theft hurts everyone, not just companies, and our office will continue to investigate and prosecute those who violate these laws. On the eve of World IP Day, this prosecution should serve as a deterrent to those who would seek to profit by stealing the intellectual property of others.”
Intellectual property (IP) refers to creations of the mind, inventions, literary and artistic works, and symbols, names, images and designs used in commerce. World IP Day was established by the World Intellectual Property Organization (WIPO) to be celebrated every April 26th in order to promote the discussion of IP in encouraging innovation and creativity. The entire U.S. economy relies on some form of IP, because virtually every industry either produces it or uses it. American IP-intensive industries directly accounted for 27.1 million American jobs or 18.8 percent of all employment in the economy in 2010.Intellectual property (IP) theft is an ongoing problem, and the Department of Justice’s Task Force on Intellectual Property, the National Intellectual Property Rights Coordination Center (IPR Center) and the National Crime Prevention Council (NCPC), and other government and private organizations work to fight IP theft. Citizens can help stop IP theft by not purchasing ‘knock-offs,’ pirated media or other counterfeit goods. To find out more about IP theft the public is encouraged to visit www.justice.gov/dag/iptaskforce, www.iprcenter.gov and www.ncpc.org/topics/intellectual-property-theft.
Bismarck Man Pleads Guilty to Child Pornography ChargeRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 26, 2013, Robert Schmaltz, 36, Bismarck, N.D., pleaded guilty in U.S. District Court to a charge of receipt of materials involving the sexual exploitation of minors.
In a plea petition filed by Schmaltz, Schmaltz admitted to using the Internet to download and view images of child pornography. During a change of plea hearing, Schmaltz agreed that he was found in receipt of 1,507 videos and over 81,000 still images depicting the sexual exploitation of children.
The charge of receipt of materials involving the sexual exploitation of minors carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
This investigation was initiated by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the Bismarck Police Department, with the assistance of the Burleigh County
State’s Attorney’s Office.Sentencing for Schmaltz has been scheduled for July 15, 2013, in U.S. District Court in Bismarck, N.D., at 3:00 p.m.
This case was brought as a 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 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.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Baltimore Man Exiled to over 12 Years for Armed RobberiesRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Branch Sparrow, age 31, of Baltimore, Maryland, today to 150 months in prison followed by five years of supervised release for armed robbery.
The sentence 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; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Sparrow's plea agreement, on August 26, 2011, Sparrow and co-defendant Allen Benny robbed a bar in the 3600 block of Fleet Street in Baltimore. Sparrow was armed with a 7.62 caliber pistol. Upon entering the bar, Sparrow brandished the gun at employees and customers of the bar, threatening them with violence, while Benny stole approximately $800 from the cash register. The two fled the bar, but were seen a short while later by police officers responding to the robbery. As the officers approached, they saw Sparrow discard a gun in a nearby trash can. Officers recovered the gun and arrested Sparrow and Benny. The officers recovered $800 from Benny’s pants pocket.
Sparrow admitted that on August 25th, he also committed an armed robbery of a convenience store in the 4800 block of O’Donnell Street in Baltimore, brandishing a gun at the store employee and stealing an unknown amount of cash from the store’s cash register. Sparrow also attempted to rob a store in the 5800 block of Pulaski Highway on August 13th, again brandishing a gun at a store employee and demanding money from the cash register. Rather than open the register, the store employee fled and Sparrow left the store.
Benny, age 47, also of Baltimore, previously pleaded guilty and was sentenced to four years in prison.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Kenneth S. Clark, who prosecuted the case.
Alabama Residents Indicted for Stolen Identity Refund Fraud ConspiracyRead the Press Release
Several residents of Montgomery, Ala., were indicted by a federal grand jury for their involvement in a conspiracy to receive fraudulent tax refunds into their bank accounts, the Justice Department and the Internal Revenue Service (IRS) announced today. Tarrish Tellis, Bobby Joe Means, Delancy Tolliver, Tracey Montgomery and Glenn Powell Jr. were indicted on various charges, including conspiracy and theft of government money. Tellis was also indicted on five counts of aggravated identity theft.
According to the indictment, Tellis obtained the means of identification of individuals, including their names, dates of birth, and Social Security numbers for the purpose of filing false federal income tax returns. Means, Tolliver, Montgomery and Powell provided Tellis with bank account numbers that were to receive the false federal income tax refunds. Tellis would then use the bank account numbers and means of identification to cause to be prepared and filed false federal income tax returns with the IRS. After the false refunds were deposited, Means, Tolliver, Montgomery and Powell would withdraw the funds. The bank accounts received at least $500,000 in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each of the defendants face a maximum potential sentence of five years in prison for the conspiracy charge, up to ten years in prison on each theft of government funds charges. Tellis also faces a mandatory two-year sentence for the aggravated identity theft counts. The defendants will also be subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case, with the assistance from the U.S. Attorney's Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Alabama Residents Indicted for Tax Refund FraudRead the Press Release
Montgomery, Alabama - Several residents of Montgomery, Ala., were indicted by a federal grand jury for their involvement in a conspiracy to receive fraudulent tax refunds into their bank accounts, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Tarrish Tellis, Bobby Joe Means, Delancy Tolliver, Tracey Montgomery, and Glenn Powell, Jr. were indicted on various charges, including conspiracy and theft of government money. Tarrish Tellis was also indicted on five counts of aggravated identity theft.
According to the indictment, Tarrish Tellis obtained the means of identification of individuals, including their names, dates of birth, and Social Security numbers for the purpose of filing false federal income tax returns. Bobby Joe Means, Delancy Tolliver, Tracey Montgomery, and Glenn Powell, Jr. provided Tellis with bank account numbers that were to receive the false federal income tax refunds. Tellis would then use the bank account numbers and means of identification to cause to be prepared and filed false federal income tax returns with the Internal Revenue Service. After the false refunds were deposited, Means, Tolliver, Montgomery, and Powell would withdraw the funds. The bank accounts received at least $500,000 in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each of the Defendants face a maximum potential sentence of 5 years in prison for the conspiracy charge, up to 10 years in prison on each theft of government funds charges. Tellis also faces a mandatory two-year sentence for the aggravated identity theft counts. They will also be subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case, with the assistance from the U.S. Attorney's Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Man Indicted for Multi-Million Dollar Stolen Identity Refund Fraud Scheme Using Prisoner IdentitiesRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging Harvey James for using stolen identities to file false tax returns, the Justice Department the Internal Revenue Service (IRS) announced today. The 34-count indictment charges James with mail fraud and aggravated identity theft.
According to the indictment, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file false federal and state tax refunds. James directed some of the false refunds to be sent to either prepaid debit cards or issued via check. He directed some of the prepaid debit cards and state tax refund checks to be mailed to various addresses on a U.S. Postal Service mail carrier’s route which was located in Montgomery, Ala. Between 2010 and 2012, James and others are alleged to have filed over 2,000 federal and state income tax returns that claimed over $2.5 million in fraudulent tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, James faces 20 years imprisonment for each mail fraud count and a mandatory 2-year sentence for the aggravated identity theft counts. He is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Alabama Man Indicted for Multi-Million Dollar Scheme to Useprisoner Identities to Obtain False Tax RefundsRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, AL, returned an indictment charging Harvey James for using stolen identities to file false tax returns, announce George L. Beck, Jr, U.S. Attorney for the Middle District of Alabama. The 34-count indictment charges James with mail fraud and aggravated identity theft.
According to the indictment, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file false federal and state tax refunds. James directed some of the false refunds to be sent to either prepaid debit cards or issued via check. He directed some of the prepaid debit cards and state tax refund checks to be mailed to various addresses on a U.S. Postal Service mail carrier’s route which was located in Montgomery, Alabama. Between 2010 and 2012, James and others filed over 2,000 federal and state income tax returns that claimed over $2.5 million in fraudulent tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, he faces 20 years imprisonment for each mail fraud count and a mandatory 2-year sentence for the aggravated identity theft counts. He is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the United States Department of Justice, Tax Division, and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Thursday 25 April 2013
Woman Who Threatened Violent Attack at Community College Pleads Guilty to Federal Hoax ChargeRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, announced that AMANDA C. BOWDEN, 19, of East Haven, waived her right to indictment and pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to threatening to carry out a violent attack at Gateway Community College in New Haven.
“In text messages and recorded conversations, this defendant explicitly detailed her threats which included a planned shooting and bombing at Gateway Community College,” stated U.S. Attorney Fein. “Our Office takes all such threats with utmost seriousness and will prosecute them to the fullest extent of federal law. I commend the FBI’s Joint Terrorism Task Force and the New Haven and East Haven Police Departments for quickly identifying and neutralizing this threat.”
“FBI New Haven’s Joint Terrorism Task Force acted immediately to investigate Bowden’s threats and make an arrest,” stated FBI Special Agent in Charge Mertz. “The investigation was very thorough and supported a successful prosecution. Most importantly, however, was that the JTTF was able to monitor and assess the threats in real-time, with the safety and security of Gateway students, the City of New Haven and the general public always being our first priority.”
According to court filings and statements made in court, between approximately February 4 and February 16, 2013, BOWDEN made numerous telephonic threats, initially through text messaging with a cooperating witness and subsequently through text messaging and verbal conversations with an undercover law enforcement agent, discussing her plans to commit a suicidal mass shooting and bombing at Gateway Community College in New Haven. In these communications, BOWDEN claimed to possess firearms and to have constructed at least two napalm-based bombs at her residence.
BOWDEN has been detained since her arrest on February 19, 2013. On that date, investigating agents conducted a court-authorized search of BOWDEN’s East Haven residence. No firearms or explosive devices were found during the search.
BOWDEN pleaded guilty to one count of false information and hoaxes, a charge that carries a maximum term of imprisonment of five years and a fine of up to $250,000. She is scheduled to be sentenced by United States District Judge Michael P. Shea on July 13, 2013, in Hartford.
This matter was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the New Haven Police Department and the East Haven Police Department. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
This case is being prosecuted by Assistant United States Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Winston County Man Pleads Guilty to Arson at Poultry Company OfficeRead the Press Release
TUSCALOOSA – A Northwest Alabama man pleaded guilty Wednesday to arson for a December fire at a Marshall Durbin office building in Haleyville, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
CHARLES WILLIAM HEAVNER JR., 43, of Hackleburg, entered his plea before U.S. District Judge L. Scott Coogler to one count of maliciously damaging the Marshall Durbin Field Operations Office with fire on Dec. 4. Heavner is scheduled for sentencing Aug. 14.
He faces a maximum sentence of 20 years in prison and a $250,000 fine.
According to Heavner's plea agreement with the government, the arson unfolded as follows:
Marshal Durban had not provided baby chicks for Heavner to raise because of maintenance problems with the chicken housing facilities on his farm. Heavner was angry about that decision on the morning of Dec. 4 and had threatened physical violence against the company's broiler manager, Joe Bolding. Bolding called an employee at the operations office, warned her of Heavner's threats and told her to lock the office door. As she did so, she saw Heavner pull into the parking lot, take an orange five-gallon bucket and a walking cane from his truck and approach the building with liquid sloshing out of the bucket. She told him he couldn't come in, but after she locked the door he tried to kick it in.
Employees outside the office building were called to help and arrived to find the front of the building on fire. They used fire extinguishers to put out the flames. The orange bucket was recovered in the back of a company truck parked near the building and Heavner's cane and a cigarette lighter were found beside the building. Traces of gasoline were discovered in the bucket.
Heavner fled and was later arrested in Oklahoma.
The ATF, Alabama State Fire Marshal, U.S. Marshals Service, and the Winston County Sheriff's Office investigated the case. Assistant U.S. Attorney Michael W. Whisonant Sr. is prosecuting the case.
Wilkinsburg Man Sentenced to Prison for Illegally Possessing A .22 RifleRead the Press Release
PITTSBURGH, Pa. - A resident of Wilkinsburg, Pa., has been sentenced in federal court to 94 months in prison and five years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Khalifah Ali Al-Akili, a/k/a James Marvin Thomas, 34.
According to information presented to the court, Khalifah Ali Al-Akili, a convicted felon, illegally possessed a .22 rifle.
Assistant United States Attorney James R. Wilson prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Khalifah Ali Al-Akili.
Westchester Man Charged in White Plains Federal Court with Engaging in, and Videotaping, Sexual Activity with MinorsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations in New York (“HSI”), announced today the unsealing of an Indictment charging RICHARD DINIZO, a/k/a “Rick,” a/k/a “Riccardo,” with engaging in sexual activity with five different minors, all under the age of 11 when the alleged crimes occurred, and with videotaping the sexual abuse. DINIZO is also charged with transporting videos depicting him engaging in sexual activity with minors to recipients outside of New York. DINIZO was arrested this morning and will be presented at about 10:30 a.m. before U.S. Magistrate Judge Lisa Margaret Smith in White Plains federal court.
U.S. Attorney Preet Bharara stated: “As alleged, Richard Dinizo was a serial pedophile who not only recorded his deviant criminal acts, but shared those videos with others. Sexual exploitation of children is a heinous crime that can scar its victims forever and we will continue to prosecute those crimes aggressively.”
Special Agent in Charge James T. Hayes, Jr. stated: “People who allegedly put our children at risk should expect to be found, prosecuted, and removed from society. We will continue to dedicate our resources to aggressively target sexual predators who exploit our children.”
DINIZO faces a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison on each of five counts of sexual exploitation of a minor, and a minimum of five years in prison and a maximum sentence of 20 years in prison for transporting child pornography.
Mr. Bharara praised the efforts of ICE HSI, the Westchester County District Attorney’s Office, the Putnam County District Attorney’s Office, Putnam County Sherriff’s Office, the New York State Police, and the National Center for Missing and Exploited Children in connection with this investigation.
Mr. Bharara stated that the investigation is ongoing. He also noted that since DINIZO is alleged to have employed trickery and deceit, his victims may not have been aware that they were victims of sexual abuse. Mr. Bharara requests that individuals with relevant information and parents whose children may have had any interactions with DINIZO contact the Department of Homeland Security, in New York, New York, at (646) 313-4380.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
U.S. v. Richard Dinizo Indictment
Washington DC Doctor Indicted on Rx Drug ChargesRead the Press Release
ABINGDON, VIRGINIA -- A Washington D.C.-based doctor has been indicted by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Abingdon on allegations of illegally distributing prescription drugs.
The grand jury has charged Alen Johannes Salerian, 65, of Bethesda, Md., in a 36-count indictment that was unsealed this afternoon following the defendant’s initial court appearance.
Salerian has been charged with one count of conspiring to distribute OxyContin, oxycodone, methadone, Opana ER and fentanyl, all schedule II controlled substances, without a legitimate medical purpose and beyond the bounds of medical practice and 35 counts of distributing OxyContin, oxycodone, and methadone, all schedule II controlled substances, without a legitimate medical purpose and beyond the bounds of medical practice.
According to the indictment, between 2001 and 2010, Salerian, a medical doctor, operated the Washington Center for Psychiatry in Washington D.C. In 2010, Salerian renamed his practice The Salerian Center for Neuroscience and Pain.
During the time relevant to this indictment, office fees for pain management patients at the Washington Center for Psychiatry and The Salerian Center for Neuroscience and Pain were increased so that pain management patients were charged higher fees for office visits than psychiatric patients. In 2009, according to the practice's fee schedule, an "Initial Assessment" cost $290, and "Medication visits 10-15 minutes" cost $155. There was no separate cost listed for pain management patients. In 2010, according to the practice's fee schedule, the fee for a new psychiatric patient visit was $295, "Medication Visits 10-15 minutes" cost $160, and psychotherapy visits lasting 25-30 minutes cost $260. All appointments for pain management patients in 2010 cost $350. In 2011, the fee for a new psychiatric patient visit was increased to $310 and subsequent office visits cost $170. A new patient visit for a pain management patient was increased in 2011 to $1000, and the "monthly fee" was increased to $370.
During times relevant to this indictment, pain management patients at the Washington Center for Psychiatry and The Salerian Center for Neuroscience and Pain were provided materials advising them monthly consultations were required, either in person or via telephone. Some patients were advised orally that every second, third, and fourth appointment could be conducted via telephone or via live Internet communication. Phone and Internet consultations were billed at the same rate as follow-up monthly office visits. Following a phone or Internet consultation, prescriptions were either available for pick-up at the Center or were sent to the patient or pharmacy.
The indictment alleges that between 2007 and April 5, 2012, Salerian distributed and dispensed, and caused the distribution and dispensing, of the prescription pain medications OxyContin, oxycodone, methadone, Opana ER, and fentanyl to pain management patients without a legitimate medical purpose and beyond the bounds of medical practice.If convicted, the maximum possibly penalty faced by the defendant for each count of conviction is up to 20 years in prison and/or a fine of up to $1,000,000.
The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Health and Human Services-Office of the Inspector General, the Office of Personnel Management-Office of the Inspector General, the Virginia State Police, and the Federal Bureau of Investigation. Assistant United States Attorney Jennifer Bockhorst and Special Assistant United States Attorney Dennis Lee will prosecute the case for the United States.A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Virginia Charter Boat Captains Sentenced for Felony Illegal Harvest of Striped BassRead the Press Release
ALEXANDRIA, Va. – Jeffery S. Adams, 41, of Hudgins, Va., was sentenced today to 180 days home confinement with electronic monitoring, followed by three years of probation for violating the Lacey Act by trafficking in illegally-harvested striped bass. Adams’ corporation, Adams Fishing Adventures, Inc., was sentenced to three years of probation. One of the conditions of their probation is the requirement to acquire and maintain Vessel Monitoring Units on all vessels owned or operated by them.
David Dwayne Scott, 41, of Lusby, Md., was also sentenced today for trafficking in illegally-harvested striped bass, in violation of the Lacey Act. Scott was sentenced to three years of probation, a $5,600 fine payable to the Lacey Act Reward Account, and ordered to pay $1,900 restitution to NOAA. One of the conditions of his probation is the requirement that he cannot engage in either charter or commercial fishing industry anywhere in the world, in any capacity to include captaining or mating on a vessel or performing any services in support of a charter or commercial fisherman.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Logan Gregory, Special Agent in Charge for NOAA’s Office of Law Enforcement’s Northeast Division, made the announcement after sentencing by United States District Judge Mark S. Davis.
On January 19, 2013, Adams and Adams Fishing Adventures pled guilty to violation of the Lacey Act in the United States District Court in Norfolk, Va. The Lacey Act, among other things, makes it unlawful for any person to transport, sell, receive, acquire or purchase any fish or wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States.
According to the plea agreement, Adams and Adams Fishing Adventures, Inc., admitted that they sold a chartered Striped Bass fishing trip on January 19, 2010, for $800. As part of that trip, Adams knowingly took his charter clients into the Exclusive Economic Zone (EEZ) to harvest striped bass, even though Adams knew that it was a violation of federal law to harvest striped bass inside the EEZ. Adams’ clients illegally harvested 10 striped bass within the EEZ and Adams transported the illegally harvested striped bass back to Rudee Inlet in Virginia Beach, Va. According to other documents filed in connection with the sentencing, Adams and Adams Fishing Adventures, Inc., routinely harvested striped bass illegally from within the EEZ from 2007 to 2013. Since 1990, federal law has made it unlawful to fish, catch, or possess striped bass in the Exclusive Economic Zone (EEZ). The laws were passed in response to a decline in the striped bass populations in the late 1970’s and are designed to protect and preserve striped bass for future generations.
In a statement of facts filed with Scott’s plea agreement, Scott admitted that on February 7, 2009, he took a charter fishing trip into the Exclusive Economic Zone (EEZ) to fish for striped bass and when approached by law enforcement, 19 striped bass were dumped overboard in an attempt to avoid detection by law enforcement.
The cases were investigated by NOAA’s Office of Law Enforcement and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office. Assistant U.S. Attorney Stephen W. Haynie of the United States Attorney’s Office for the Eastern District of Virginia and Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Unsealed Indictment Charges Former U.S. Federal Employee with Conspiracy to Commit Espionage for Cuba-Defendant Allegedly Helped Cuban Intelligence Service Recruit and Insert Spy into U.S. Defense Intelligence Agency-Read the Press Release
WASHINGTON – A one-count indictment was unsealed today in the U.S. District Court for the District of Columbia charging Marta Rita Velazquez, 55, with conspiracy to commit espionage, announced John Carlin, Acting Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
The charges against Velazquez stem from, among other things, her alleged role in introducing Ana Belen Montes, now 55, to the Cuban Intelligence Service (CuIS) in 1984; in facilitating Montes’s recruitment by the CuIS; and in helping Montes later gain employment at the U.S. Defense Intelligence Agency (DIA). Montes served as an intelligence analyst at DIA from September 1985 until she was arrested for espionage by FBI agents on Sept. 21, 2001. On March 19, 2002, Montes pleaded guilty in the District of Columbia to conspiracy to commit espionage on behalf of Cuba. Montes is currently serving a 25-year prison sentence.
The indictment against Velazquez, who is also known as “Marta Rita Kviele” and as “Barbara,” was originally returned by a grand jury in the District of Columbia on Feb. 5, 2004. It has remained under court seal until today. Velazquez has continuously remained outside the United States since 2002. She is currently living in Stockholm, Sweden. If convicted of the charges against her, Velazquez faces a potential sentence of up to life in prison.
According to the indictment, Velazquez was born in Puerto Rico in 1957. She graduated from Princeton University in 1979 with a bachelor’s degree in Political Science and Latin American Studies. Velazquez later obtained a law degree from Georgetown University Law Center in 1982 and a master’s degree from Johns Hopkins University School of Advanced International Studies (SAIS) in Washington, D.C., in 1984.
Velazquez later served as an attorney advisor at the U.S. Department of Transportation, and, in 1989, she joined the State Department’s U.S. Agency for International Development (USAID) as a legal officer with responsibilities encompassing Central America. During her tenure at USAID, Velazquez held a Top Secret security clearance and was posted to the U.S. Embassies in Nicaragua and Guatemala. In June 2002, Velazquez resigned from USAID following press reports that Montes had pleaded guilty to espionage and was cooperating with the U.S. government. Velazquez has remained outside the United States since 2002.
The indictment alleges that, beginning in or about 1983, Velazquez conspired with others to transmit to the Cuban government and its agents documents and information relating to the U.S. national defense, with the intent that they would be used to the injury of the United States and to the advantage of the Cuban government.
As part of the conspiracy, Velazquez allegedly helped the CuIS spot, assess and recruit U.S. citizens who occupied sensitive national security positions or had the potential of occupying such positions in the future to serve as Cuban agents. For example, the indictment alleges that, while Velazquez was a student together with Montes at SAIS in Washington, D.C., in the early 1980s, Velazquez fostered a strong, personal friendship with Montes, with both sharing similar views of U.S. policies in Nicaragua at the time.
In December 1984, the indictment alleges, Velazquez introduced Montes in New York City to a Cuban intelligence officer who identified himself as an official of the Cuban Mission to the United States. The intelligence officer then recruited Montes. In 1985, after Montes’ recruitment, Velazquez personally accompanied Montes on a clandestine trip to Cuba for Montes to receive spy craft training from CuIS.
Later in 1985, Velazquez allegedly helped Montes obtain employment as an intelligence analyst at the DIA, where Montes had access to classified national defense information and served as an agent of the CuIS until her arrest in 2001. During her tenure at the DIA, Montes disclosed the identities of U.S. intelligence officers and provided other classified national defense information to the CuIS.
During this timeframe, Velazquez allegedly continued to serve the CuIS, receiving instructions from the CuIS through encrypted, high frequency broadcasts from her handlers and through meetings with handlers outside the United States.
This case was investigated by the FBI’s Washington Field Office and the DIA. It is being prosecuted by Senior Trial Attorney Clifford Rones of the Counterespionage Section in the Justice Department’s National Security Division, and Assistant U.S. Attorney G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia.
The charges contained in an indictment are merely allegations and each defendant is presumed innocent unless and until proven guilty in a court of law.
13-143Unsealed Indictment Charges Former U.S. Federal Employee <br /> with Conspiracy to Commit Espionage for CubaRead the Press Release
A one-count indictment was unsealed today in U.S. District Court for the District of Columbia charging Marta Rita Velazquez, 55, with conspiracy to commit espionage, announced John Carlin, Acting Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
The charges against Velazquez stem from, among other things, her alleged role in introducing Ana Belen Montes, now 55, to the Cuban Intelligence Service (CuIS) in 1984; in facilitating Montes’s recruitment by the CuIS; and in helping Montes later gain employment at the U.S. Defense Intelligence Agency (DIA). Montes served as an intelligence analyst at DIA from September 1985 until she was arrested for espionage by FBI agents on Sept. 21, 2001. On March 19, 2002, Montes pleaded guilty in the District of Columbia to conspiracy to commit espionage on behalf of Cuba. Montes is currently serving a 25-year prison sentence.
The indictment against Velazquez, who is also known as “Marta Rita Kviele” and as “Barbara,” was originally returned by a grand jury in the District of Columbia on Feb. 5, 2004. It has remained under court seal until today. Velazquez has continuously remained outside the United States since 2002. She is currently living in Stockholm, Sweden. If convicted of the charges against her, Velazquez faces a potential sentence of up to life in prison.
According to the indictment, Velazquez was born in Puerto Rico in 1957. She graduated from Princeton University in 1979 with a bachelor’s degree in Political Science and Latin American Studies. Velazquez later obtained a law degree from Georgetown University Law Center in 1982 and a master’s degree from Johns Hopkins University School of Advanced International Studies (SAIS) in Washington, D.C., in 1984.
Velazquez later served as an attorney advisor at the U.S. Department of Transportation, and, in 1989, she joined the State Department’s U.S. Agency for International Development (USAID) as a legal officer with responsibilities encompassing Central America. During her tenure at USAID, Velazquez held a Top Secret security clearance and was posted to the U.S. Embassies in Nicaragua and Guatemala. In June 2002, Velazquez resigned from USAID following press reports that Montes had pleaded guilty to espionage and was cooperating with the U.S. government. Velazquez has remained outside the United States since 2002.
The indictment alleges that, beginning in or about 1983, Velazquez conspired with others to transmit to the Cuban government and its agents documents and information relating to the U.S. national defense, with the intent that they would be used to the injury of the United States and to the advantage of the Cuban government.
As part of the conspiracy, Velazquez allegedly helped the CuIS spot, assess and recruit U.S. citizens who occupied sensitive national security positions or had the potential of occupying such positions in the future to serve as Cuban agents. For example, the indictment alleges that, while Velazquez was a student together with Montes at SAIS in Washington, D.C., in the early 1980s, Velazquez fostered a strong, personal friendship with Montes, with both sharing similar views of U.S. policies in Nicaragua at the time.
In December 1984, the indictment alleges, Velazquez introduced Montes in New York City to a Cuban intelligence officer who identified himself as an official of the Cuban Mission to the United States. The intelligence officer then recruited Montes. In 1985, after Montes’ recruitment, Velazquez personally accompanied Montes on a clandestine trip to Cuba for Montes to receive spy craft training from CuIS.
Later in 1985, Velazquez allegedly helped Montes obtain employment as an intelligence analyst at the DIA, where Montes had access to classified national defense information and served as an agent of the CuIS until her arrest in 2001. During her tenure at the DIA, Montes disclosed the identities of U.S. intelligence officers and provided other classified national defense information to the CuIS.
During this timeframe, Velazquez allegedly continued to serve the CuIS, receiving instructions from the CuIS through encrypted, high frequency broadcasts from her handlers and through meetings with handlers outside the United States.
This case was investigated by the FBI’s Washington Field Office and the DIA. It is being prosecuted by Senior Trial Attorney Clifford Rones of the Counterespionage Section in the Justice Department’s National Security Division, and Assistant U.S. Attorney G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia.
The charges contained in an indictment are merely allegations and each defendant is presumed innocent unless and until proven guilty in a court of law.
WASHINGTON – A one-count indictment was unsealed today in U.S. District Court for the District of Columbia charging Marta Rita Velazquez, 55, with conspiracy to commit espionage, announced John Carlin, Acting Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.The charges against Velazquez stem from, among other things, her alleged role in introducing Ana Belen Montes, now 55, to the Cuban Intelligence Service (CuIS) in 1984; in facilitating Montes’s recruitment by the CuIS; and in helping Montes later gain employment at the U.S. Defense Intelligence Agency (DIA). Montes served as an intelligence analyst at DIA from September 1985 until she was arrested for espionage by FBI agents on Sept. 21, 2001. On March 19, 2002, Montes pleaded guilty in the District of Columbia to conspiracy to commit espionage on behalf of Cuba. Montes is currently serving a 25-year prison sentence.
The indictment against Velazquez, who is also known as “Marta Rita Kviele” and as “Barbara,” was originally returned by a grand jury in the District of Columbia on Feb. 5, 2004. It has remained under court seal until today. Velazquez has continuously remained outside the United States since 2002. She is currently living in Stockholm, Sweden. If convicted of the charges against her, Velazquez faces a potential sentence of up to life in prison.
According to the indictment, Velazquez was born in Puerto Rico in 1957. She graduated from Princeton University in 1979 with a bachelor’s degree in Political Science and Latin American Studies. Velazquez later obtained a law degree from Georgetown University Law Center in 1982 and a master’s degree from Johns Hopkins University School of Advanced International Studies (SAIS) in Washington, D.C., in 1984.
Velazquez later served as an attorney advisor at the U.S. Department of Transportation, and, in 1989, she joined the State Department’s U.S. Agency for International Development (USAID) as a legal officer with responsibilities encompassing Central America. During her tenure at USAID, Velazquez held a Top Secret security clearance and was posted to the U.S. Embassies in Nicaragua and Guatemala. In June 2002, Velazquez resigned from USAID following press reports that Montes had pleaded guilty to espionage and was cooperating with the U.S. government. Velazquez has remained outside the United States since 2002.
The indictment alleges that, beginning in or about 1983, Velazquez conspired with others to transmit to the Cuban government and its agents documents and information relating to the U.S. national defense, with the intent that they would be used to the injury of the United States and to the advantage of the Cuban government.
As part of the conspiracy, Velazquez allegedly helped the CuIS spot, assess and recruit U.S. citizens who occupied sensitive national security positions or had the potential of occupying such positions in the future to serve as Cuban agents. For example, the indictment alleges that, while Velazquez was a student together with Montes at SAIS in Washington, D.C., in the early 1980s, Velazquez fostered a strong, personal friendship with Montes, with both sharing similar views of U.S. policies in Nicaragua at the time.
In December 1984, the indictment alleges, Velazquez introduced Montes in New York City to a Cuban intelligence officer who identified himself as an official of the Cuban Mission to the United States. The intelligence officer then recruited Montes. In 1985, after Montes’ recruitment, Velazquez personally accompanied Montes on a clandestine trip to Cuba for Montes to receive spy craft training from CuIS.
Later in 1985, Velazquez allegedly helped Montes obtain employment as an intelligence analyst at the DIA, where Montes had access to classified national defense information and served as an agent of the CuIS until her arrest in 2001. During her tenure at the DIA, Montes disclosed the identities of U.S. intelligence officers and provided other classified national defense information to the CuIS.
During this timeframe, Velazquez allegedly continued to serve the CuIS, receiving instructions from the CuIS through encrypted, high frequency broadcasts from her handlers and through meetings with handlers outside the United States.
This case was investigated by the FBI’s Washington Field Office and the DIA. It is being prosecuted by Senior Trial Attorney Clifford Rones of the Counterespionage Section in the Justice Department’s National Security Division, and Assistant U.S. Attorney G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia.
The charges contained in an indictment are merely allegations and each defendant is presumed innocent unless and until proven guilty in a court of law.
Related Materials:
Indictment
U.S. Attorney Booth Goodwin Recognizes 56 West Virginia High School Juniors as Ambassadors for JusticeRead the Press Release
Second annual ceremony lauds students for exceptional character, commitment to social justice
*Click here to view the group photograph*
CHARLESTON, W.Va. – United States Attorney Booth Goodwin today recognized 56 high school juniors as U.S. Attorney’s Ambassadors for Justice during an afternoon ceremony at the Culture Center in Charleston. The U.S. Attorney’s Ambassadors for Justice program is an initiative led by the U.S. Attorney’s Office for the Southern District of West Virginia. It honors high school juniors who have shown outstanding leadership skills and a commitment to social justice.
Today’s ceremony marked the second time U.S. Attorney Goodwin has recognized young leaders from high schools in the Southern District of West Virginia as Ambassadors for Justice.
“I am very pleased to honor the second class of high school juniors from throughout the Southern District as my Ambassadors for Justice,” U.S. Attorney Goodwin said. “These 56 students have each demonstrated a powerful ethical compass. They’ve exemplified tremendous leadership.”
Goodwin continued, “Their ideas and perspectives are invaluable. These are students who are willing to step forward and do something if one of their peers makes a self-destructive decision or bullies someone else.”Goodwin said that his office is deeply concerned about problems facing young people in his district. “This isn't just an award or a title. This is an ongoing mission for me, my office, our schools, our communities, and for each of these Ambassadors for Justice, so that together we can exert positive influences in our schools and communities,” said Goodwin.
The U.S. Attorney’s Ambassadors for Justice program was created by U.S. Attorney Goodwin last year in response to rising school bullying and social media threats involving young people. The program was also spurred by a February 2012 school shooting at Chardon High School in Chardon, Ohio, in which a student opened fire on his classmates, killing three and wounding two others. Other episodes involving planned violent attacks by young people that were prevented due to the swift actions of students and school Prevention Resource Officers here in the Southern District of West Virginia have also encouraged U.S. Attorney Goodwin's initiative.
Nominations to be U.S. Attorney’s Ambassadors for Justice are made by school principals and administrative leaders. Goodwin said that outstanding character, devotion to citizenship, and a commitment to serving others are fundamentals for nomination. This year, 56 out of 59 high schools in the 23-county Southern District of West Virginia nominated outstanding students to be Ambassadors for Justice.
The 2013 U.S. Attorney’s Ambassadors for Justice are as follows (by student name/high school/county)
Please note: Individual photos of each student are available here.
Boone County
Sydney Burdette, Sherman High School (Boone Co.)
Haleigh Foxx, Van Jr./Sr. High School (Boone)
Kendyl Ryan, Scott High School (Boone Co.)Cabell County
Anthony Jaime, Huntington High School (Cabell Co.)
Jaime Schussler, Cabell Midland High School (Cabell Co.)Clay County
Elizabeth Remias, Clay County High School (Clay Co.)Fayette County
Bradley Higginbotham, Valley High School (Fayette Co.)
Jonathan Hildebrand, Midland Trail High School (Fayette Co.)
Felicia Pomeroy, Meadow Bridge High School (Fayette Co.)
Hali Zink, Oak Hill High School (Fayette Co.)Greenbrier County
Taylor Gilkeson, Greenbrier West High School (Greenbrier Co.)
Heather Vallandingham, Greenbrier East High School (Greenbrier Co.)Jackson County
Talia Martinez, Ravenswood High School (Jackson Co.)
Nathan Tucker, Ripley High School (Jackson Co.)Kanawha County
Hunter Chandler, Herbert Hoover High School (Kanawha Co.)
Camden Elliott, George Washington High School (Kanawha Co.)
Matt Jarvis, Nitro High School (Kanawha Co.)
Dakota Kelly, St. Albans High School (Kanawha Co.)
Morgan King, Capital High School (Kanawha Co.)
Derek Nelson, South Charleston High School (Kanawha Co.)
Cody Taylor, Sissonville High School (Kanawha Co.)Logan County
Joey Buchanon, Man High School (Logan Co.)
McGinnis Dalton, Logan Senior High School (Logan Co.)Lincoln County
Logan Miller, Lincoln County High School (Lincoln Co.)Mason County
Ayla Edwards, Point Pleasant Jr./Sr. High School Point (Mason Co.)
Wynston Lloyd, Hannan Jr./Sr. High School (Mason Co.)
Paige Stanhope, Wahama Jr./Sr. High School (Mason Co.)McDowell County
Ryan Blankenship, River View High School (McDowell Co.)Mercer County
Vaughn Campbell, Pike View High School (Mercer Co.)
Will Hickman, Princeton Senior High School (Mercer Co.)
Molly Lovern, Bluefield High School (Mercer Co.)
Robert Punturi III, Montcalm High School (Mercer Co.)Mingo County
Julius Hatcher, Mingo Central High School (Mingo Co.)
David Runyon, Tug Valley High School (Mingo Co.)Monroe County
Elliott Judy, James Monroe High School (Monroe Co.)Nicholas County
Jesse Borrell, Nicholas County High School (Nicholas Co.)
Benjamin Weber, Richwood High School (Nicholas Co.)Putnam County
Cory Hoshor, Buffalo High School (Putnam Co.)
Carla Haikal, Winfield High School (Putnam Co.)
Sarah Lawrence, Hurricane High School (Putnam Co.)
Kyle McClanahan, Poca High School (Putnam Co.)Raleigh County
Adam Pack, Independence High School (Raleigh Co.)
Luke Stover, Liberty High School (Raleigh Co.)
McKenna Williamson, Shady Spring High School (Raleigh Co.)
Aniket Zinzuwadia, Woodrow Wilson High School (Raleigh Co.)Roane County
Kennedy Roberts, Roane County High School (Roane Co.)Summers County
Lindsay Ryan, Summers County High School (Summers Co.)Wayne County
Payton Fetty, Wayne High School (Wayne Co.)
Kristen Griffith, Tolsia High School (Wayne Co.)
Meredith Hall, Spring Valley High School (Wayne Co.)Wirt County
Leah Haines, Wirt County High School (Wirt Co.)Wood County
Shalin Gandhi, Parkersburg High School (Wood Co.)
Allison Walker, Parkersburg South High School (Wood Co.)
Matthew Zlatkind, Williamstown High School (Wood Co.)
Wyoming County
Anna Davis, Westside High School (Wyoming Co.)
Savannah Lusk, Wyoming East High School (Wyoming Co.)U. S. Attorney’s Office for the Middle District of Florida Observes National Crime Victims’ Rights WeekRead the Press Release
(Tampa) - U.S. Attorney Robert E. O’Neill announced that his office, in conjunction with the observance of National Crime Victims’ Rights Week, April 21-27, hosted a variety of events throughout the district in observation of NCVR Week. A panel discussion on Stolen Identity Refund Fraud (SIRF) for victim service providers, and others, was held on Wednesday in Tampa. Panelists included representatives from the Internal Revenue Service, the Tampa Police Department, federal prosecutors, and a SIRF victim. A fraud summit was held in Jacksonville on the same day, which included presentations by the Federal Bureau of Investigation, HHS-OIG, the State Attorney’s Office, Jacksonville Sheriff’s Office, Office of the Florida Attorney General, the Securities and Exchange Commission, the Florida Department of Law Enforcement, the Internal Revenue Service, the U.S. Secret Service, the U.S. Postal Inspection Service, and several fraud victims. On Thursday, federal prosecutors, along with representatives from the State Attorney’s Office, U.S. Secret Service, and the Marion County Sheriff’s Office addressed Rotary Club members in The Villages. Prior to this week, the office hosted sessions on common fraud schemes in Tampa and Fort Myers. The goal of the presentations was to make community members aware of fraud schemes and best practices to avoid becoming a victim. A Central Florida fraud summit is scheduled in Orlando on May 15, 2013.
The theme for this year’s Crime Victims’ Rights Week, “New Challenges. New Solutions,” celebrates the spirit that will advance the progress and achievements on behalf of victims. It also captures the spirit and highlights the need for us to assist and serve each and every victim in need of hope and help. The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The Middle District of Florida has a dedicated Victim Witness Unit that serves federal crime victims across the district’s 35 counties. Members of this unit notify victims of significant case events through the Department of Justice’s (DOJ) Victim Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. According to DOJ statistics, in Fiscal Year (FY) 2012, the U.S. Attorneys’ offices provided notice of over 12.2 million case events, including notices regarding criminal charges filed, plea hearings, bond hearings and sentencing hearings.
Notification of significant case events leads to increased victim participation in court proceedings. Court accompaniment helps ensure that victim participation in court proceedings is meaningful as Victim-Witness personnel can answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the Middle District of Florida’s Victim Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
Tyrone Thaddeus Martinez Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 25, 2013, before U.S. District Judge Richard F. Cebull, TYRONE THADDEUS MARTINEZ, a 33-year-old resident of Billings, appeared for sentencing. MARTINEZ was sentenced to a term of:
Probation: 4 years
Special Assessment: $100
Restitution: $10,293
MARTINEZ was sentenced in connection with his guilty plea to wire fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
MARTINEZ was employed by Hardrive Asphalt, in Billings from the end of April 2011 through August 22, 2011. MARTINEZ was fired on August 22, 2011. Each of the fleet vehicles for Hardrive is equipped with a Wright Express gas card. Each employee who is authorized to use a gas card is issued a 4-digit PIN that enables the use of the gas cards attached to each Hardrive vehicle. MARTINEZ, employed as a laborer, was not authorized a gas card or a pin.
During the summer of 2011, Hardrive had one truck that was inoperable and sat in the company's yard. This particular vehicle had two gas cards. One gas card was for bulk fuel and one card was a regular gas card. The yard was locked at night, but was open during operating hours and any employee would have had access to the vehicle and its contents.
Hardrive runs gas charge totals on a monthly basis. Prior to Hardrive running its September 2011 totals, Wright Express telephoned Hardrive to voice concern for unusual gas charges. It was determined that $10,293 in charges were fraudulently charged to Hardrive's account. The fraudulent charges were incurred over short durations of time during single day periods. The first two charges were in Billings on August 20, 2011, and August 21, 2011, the two day period prior to MARTINEZ being fired from Hardrive. In total over 160 fraudulent charges were incurred in various locations, for various amounts, including Billings; Big Timber; Gillette, Wyoming; Post Falls, Idaho; Spokane, Washington; and Seattle, Washington.
All of the fraudulent gas transactions used PIN 7524 that was assigned to Hardrive employee X.X. X.X. was working on a job site for Hardrive in Wyoming during the time the fraudulent charges were incurred. Questioning by Hardrive management uncovered that X.X. had previously provided MARTINEZ with his PIN when the two worked together prior to the fraud taking place.
Law enforcement was able to obtain numerous pieces of video footage from the gas stations where the card and PIN were used. Law enforcement was able to visually identify MARTINEZ in several of the videos. Law enforcement was also able to identify MARTINEZ's vehicle in several of the videos. Additionally, MARTINEZ used an Albertsons' gas station at one point to fill up his vehicle. Albertsons was able to confirm that MARTINEZ's Albertsons' savings card was used for the gasoline purchases made with the stolen card and the PIN.
Law enforcement interviewed MARTINEZ about the allegations from Hardrive. MARTINEZ admitted he took a gas card from one of the company vehicles. MARTINEZ stated that the PIN needed to use the card was common knowledge to most employees. MARTINEZ admitted to using the gas card in Montana, Idaho, Wyoming, and Washington. MARTINEZ said that he was sorry for his actions.
In total, MARTINEZ stole $10,293 in fuel from Hardrive Asphalt through his gas card scheme.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MARTINEZ will likely serve all of the time imposed by the court. In the federal system, MARTINEZ does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the U.S. Secret Service.
Two Tax Return Preparers IndictedRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces the indictments of two tax return preparers, Fane Dacosta (39, Daytona Beach) and Obnes Latigue (50, Orlando). Dacosta has been charged with 25 counts of aiding in the preparation of false tax returns and 3 counts of failing to file his personal tax returns. Latigue has been charged with 23 counts of aiding in the preparation of false tax returns. If convicted, each faces a maximum penalty of 3 years in federal prison for each count of aiding in the preparation of false tax returns, and Dacosta faces a maximum penalty of one year in federal prison for each count of failing to file his personal tax returns. Dacosta and Latigue were charged in separate indictments on April 10, 2013. They were both arrested yesterday.
According to the indictments, Dacosta and Latigue were involved in preparing tax returns in which they falsified the deduction amounts and tax credits owed to taxpayers, resulting in those taxpayers receiving undeserved tax refunds. For three years, Dacosta also failed to file his personal tax returns, despite having received more than $100,000 in gross income in each year.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Internal Revenue Service Criminal Investigation. They will be prosecuted by Assistant United States Attorney Roger B. Handberg.
Two Inmates Indicted for Killing Inside Federal PrisonRead the Press Release
ATLANTA - Federal inmates Donald R. Lafond, Jr., and Jason Robert Widdison, have been indicted for the 2011 murder of a fellow prisoner at the United States Penitentiary in Atlanta, Ga.
“Offenders who commit violent acts like this must be prosecuted to the fullest extent of the law,” said United States Attorney Sally Quillian Yates. “The Department of Justice and its Bureau of Prisons endeavors to protect the life and safety of every federal inmate. We remain vigilant and will do everything we can to ensure that prisons are as safe as possible for every inmate and employee.”
According to United States Attorney Yates, the charges and other information presented in court, on March 1, 2011, Lafond, 52, and Widdison, 34, were exercising inside the prison’s special housing unit recreation area. The victim, a fellow inmate, joined the defendants in the area and attempted to make conversation and walk around with them.
After a short period of time, Lafond and Widdison suddenly began to punch the victim from both front and behind, knocking the victim to the ground. Both Lafond and Widdison then stomped on the victim’s head and neck, as many as ten times each. Corrections officers witnessed the incident and intervened. Both men complied with the officers’ orders to stop beating the victim, but by then, the victim was unconscious. The victim was taken to a hospital but never regained consciousness. As a result of his injuries, the victim died on April 5, 2011.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The basic civil liberties of the victim federal inmate in this case were absolutely ignored by fellow inmates Lafond and Widdison and that will not be ignored by federal authorities. The FBI will continue to provide investigative assistance and other assets as needed in assisting the U.S. Bureau of Prisons maintain order within U.S. Penitentiary- Atlanta.”
Lafond and Widdison appeared today in federal court in Atlanta before United States Magistrate Judge Janet F. King. The indictment charges that the defendants, aided and abetted by one another and with malice aforethought, killed the victim by punching and stomping him. The charge carries a maximum sentence of life in prison and a maximum fine of $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentence ranges for most offenders.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.Members of the public are reminded that the indictment contains only allegations. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Tuscaloosa County Man Indicted for Producing and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Tuscaloosa County man on child pornography charges, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Tuscaloosa County Sheriff Billy Sharp.
A five-count indictment filed in U.S. District Court charges MURRY MALONE BAILEY, 63, with producing child pornography between November 2010 and April 2012, and with possessing child pornography in Tuscaloosa County between August 2010 and May 2012.
The maximum penalty for producing child pornography is 30 years in prison and a $250,000 fine. The maximum penalty for possessing child pornography is 10 years in prison and a $250,000 fine.
The Tuscaloosa Sheriff’s Department and the FBI investigated the case, which Assistant U.S. Attorney Amanda Wick is prosecuting.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Three Men Indicted on Federal Charges of Filing Fraudulent Tax Returns Related to Identity TheftRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an eight count indictment charging Desmond Holden, Kinjonah Coston, and Octavis Jones with conspiracy to prepare fraudulent tax returns, theft of public money, and aggravated identity theft. If convicted, each faces a maximum penalty of 5 years in federal prison for each of the conspiracy and theft of public money offenses, and a consecutive minimum sentence of two years' imprisonment for each aggravated identity charge. The indictment also notifies the defendants that the United States intends to forfeit all assets, which are alleged to be traceable to proceeds of the offenses.
According to the indictment, Holden, Coston, and Jones participated in a scheme to fraudulently obtain federal income tax refunds by preparing and filing false tax returns. They filed these returns in the names of people whose identities they had stolen, by obtaining the victims' Social Security numbers and other identifiers. The defendants would then direct the money from the fraudulent refunds to be deposited onto debit cards, or money orders, which they would then convert to their personal use.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Internal Revenue Service Criminal Investigation, with assistance and cooperation from the Highlands County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Douglas Molloy.
Talladega County Man Indicted for Mailing Second Series of Threat LettersRead the Press Release
BIRMINGHAM – A Talladega County man serving more than four years in federal prison for mailing a series of hoax anthrax letters in 2010 has been indicted for mailing another series of threatening letters in 2011, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector R. Frank Dyer.
A federal grand jury today indicted CLIFTON LAMAR DODD, 41, of Lincoln, on seven counts of using the U.S. Postal Service to send threating letters. Count one of the indictment filed in U.S. District Court charges Dodd with mailing a hoax anthrax letter to then Jefferson County Deputy District Attorney Teresa McClendon on April 4, 2011. Counts two through six charge Dodd with mailing, or causing the mailing of extortion letters on June 15, 2011, that threatened the lives of U.S. District Court Judge L. Scott Coogler, Jefferson County Circuit Court Judge Tommy Nail, lawyers James O'Kelly and Sheila Weil, and Jefferson County Jail inmate Michael Bole. The final count of the indictment charges Dodd with causing an extortion letter to be sent and delivered to former Alabama Sen. Jim Preuitt of Talladega on Sept. 28, 2011.
The June 2011 extortion letters were mailed from Calhoun County, according to the indictment. Dodd was in custody in the Calhoun County Jail at that time, awaiting trial on the federal charges that he sent 23 anthrax hoax letters in 2010. He pleaded guilty to those charges just before trial was to begin in July 2011. Dodd remained in jail awaiting sentencing when, according to the indictment, the September 2011 extortion letter was delivered to Preuitt in Talladega County.
According to today's indictment, the June 2011 letters claimed to be from someone who had been hired to kill the recipients. The letters to judges Coogler and Nail demanded $5,000 from each. The letter to the jail inmate, Bole, stated it was from "your friend from jail," and expressed a promise to kill the people who had done them wrong and said to "be sure the money is their (sic)." The letter specifically mentioned O'Kelly and Judges Coogler and Nail, according to the indictment.
The September 2011 letter to Preuitt stated, "I didn't forget about you. I want my money. All of my money … Get my money or die," according to the indictment.
Preuitt was among the recipients of the 23 anthrax hoax letters Dodd was convicted of mailing in 2010. In December 2011, U.S. District Judge Abdul Kallon sentenced Dodd to 51 months in prison for mailing the hoax threats.
Along with Preuitt, Dodd mailed those letters to U.S. Sen. Richard Shelby at his office in the Robert S. Vance Federal in Birmingham, to two Talladega County state court judges, Talladega County Sheriff Jerry Studdard, several Talladega County Jail inmates who were in the jail at the same time as Dodd, and police investigators from both the Lincoln and Oxford police departments who previously had interviewed Dodd.
The U.S. Postal Inspection Service investigated the current case, which Assistant U.S. Attorney Michael Whisonant Sr. is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
Supervisor of $63 Million Health Care Fraud Scheme ConvictedRead the Press Release
A federal jury today convicted a Miami-area supervisor of a mental health care company, Health Care Solutions Network (HCSN), for helping to orchestrate a fraud scheme that crossed state lines and that resulted in the submission of more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The announcement was made by Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigation’s Miami office.
After a five-day trial, a jury in the Southern District of Florida found Wondera Eason, 51, guilty of conspiracy to commit health care fraud. Sentencing is scheduled for July 8, 2013.
Eason was employed as the Director of Medical Records at HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, exported the scheme to North Carolina, opening a third HCSN location in Hendersonville.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication, and forgery of thousands of documents, which purported to support the fraudulent claims HCSN submitted to Medicare and Florida Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. Eason directed therapists to fabricate documents, and she also forged the signature of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The “therapy” at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 12 defendants have pleaded guilty. On Monday, Feb. 25, 2013, Gonzalez was sentenced to serve 168 months in prison for his role in the scheme. Alleged co-conspirators Alina Feas and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. This case was prosecuted by Trial Attorneys Allan J. Medina and Steven Kim, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer of the Criminal Division's Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Supervisor of $63 Million Health Care Fraud Scheme ConvictedRead the Press Release
A federal jury today convicted a Miami-area supervisor of a mental health care company, Health Care Solutions Network (HCSN), for helping to orchestrate a fraud scheme that crossed state lines and that resulted in the submission of more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The announcement was made by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigation’s Miami Office.
After a five-day trial, a jury in the Southern District of Florida found Wondera Eason, 51, guilty of conspiracy to commit health care fraud. Sentencing is scheduled for July 8, 2013.
Eason was employed as the Director of Medical Records at HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, exported the scheme to North Carolina, opening a third HCSN location in Hendersonville.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication, and forgery of thousands of documents, which purported to support the fraudulent claims HCSN submitted to Medicare and Florida Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Florida Medicaid. Eason directed therapists to fabricate documents, and she also forged the signature of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The “therapy” at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and 12 defendants have pleaded guilty. On Monday, Feb. 25, 2013, Gonzalez was sentenced to serve 168 months in prison for his role in the scheme. Alleged co-conspirators Alina Feas and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. This case was prosecuted by Trial Attorneys Allan J. Medina and Steven Kim, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer of the Criminal Division's Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
State Department Contract Employee and Husband Indicted for Steering More Than $60 Million in Government Contracts to Their Own CompanyRead the Press Release
ALEXANDRIA, Va. - Kathleen D. McGrade, age 64, and Brian C. Collinsworth, age 46, both of Fredericksburg, Va., were indicted by a federal grand jury today on charges stemming from an alleged secret scheme to steer more than $60 million in State Department contracts to a company they controlled.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Harold W. Geisel, Deputy Inspector General for the Department of State, and Thomas J. Kelly, Special Agent In Charge for IRS Criminal Investigation made the announcement after the indictment was returned.
McGrade and Collinsworthface a maximum penalty of 20 years imprisonment, if convicted.
According to the indictment, from at least December 2007 through August 2011, McGrade was a private contract employee assigned to work as a contract specialist at the U.S. Department of State, in its Office of Acquisition Management located in Arlington, Virginia. In that position, McGrade assisted in and oversaw the process for awarding and implementing contracts to companies performing work at various U.S. foreign service posts, including U.S. embassies located around the world. During this same period, McGrade and Collinsworth controlled a Virginia company called the Sterling Royale Group, LLC (SRG), for which McGrade, acting through her position at the State Department, caused to be issued an Indefinite Duration, Indefinite Quantity (IDIQ) contract with the State Department. During the course of the scheme, Collinsworth acted as SRG’s vice president. According to the indictment, McGrade and Collinsworth, who were married, actively concealed their marriage and McGrade’s involvement in SRG from officials at the Department of State. Further, McGrade allegedly misled other State Department officials to believe she was a Contracting Officer while approving payments to SRG. All told, McGrade’s role in the scheme allegedly resulted in SRG being awarded approximately 17 task orders. Prior to the scheme being discovered, SRG had submitted invoices resulting in $39 million in payments. Finally, the indictment alleges that McGrade and Collinsworth used the proceeds of their scheme to purchase a 41 foot boat, a home, a penthouse condominium, and a Lexus automobile, among other things.
This case is being investigated by the Office of the Inspector General for the Department of State and the Criminal Investigation Section of the Internal Revenue Service. Assistant United States Attorneys Jack Hanly and Mark D. Lytle are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Spring Man Who Coerced 9-Year-Old to Take Nude Photo with Handheld Gaming Device Lands Significant SentenceRead the Press Release
HOUSTON – Spring resident Steve Correa-Franco, 33, has been ordered to prison for nearly 20 years following his convictions of enticement of a child and possession of child pornography, United States Attorney Kenneth Magidson announced today. He pleaded guilty to the charges Thursday, Dec. 6, 2012.
Today, U.S. District Judge Sim Lake, took into consideration the seriousness of the crime and the need for deterrence and handed Correa-Franco respective sentences of 235 and 120 months for the enticement and possession convictions. The sentences will run concurrently. Additional information was also presented today, including a victim impact statement from the parents of the girl. In handing down the sentence, Judge Lake noted that the victim will carry the memory of what Correa-Franco did for a long time. Correa-Franco was further ordered to serve 25 years of supervised release following completion of his prison term. He will also be ordered to register as a sex offender.
The charges against Correa-Franco arose in April 2012, when the Rochester, Minn., Police Department responded to a complaint regarding the possible online solicitation of a nine-year-old child. The responding officer met with the child’s parents, at which time the father told police he had noticed the family computer open to the website www.kidzworld.com and saw that his daughter had been communicating with someone. The father further investigated his daughter’s online activity and accessed her Yahoo! email account. In the account, he found extensive chat logs between his daughter and an unknown person with a Yahoo! Username of “Steve Correa,” later identified as Correa-Franco. The majority of the chat activity occurred on April 6, 2012.
During the April 6 chats, the girl told Correa-Franco she was nine-years old. He said he was 16 years old and repeatedly discussed having sex with the young girl. He also sent the daughter several photos of himself which contained images of his face.
Correa-Franco asked the girl to take a nude photograph of herself, which she did using her Nintendo DS handheld game system. She took the photograph with the gaming system, uploaded it to her computer and then emailed it to the address Correa-Franco had provided.
Law enforcement officers were able to trace the email account to Correa-Franco’s residence in Spring. On May 18, 2012, a federal search warrant was executed, at which time agents seized Correa’s laptop computer. Agents were able to confirm the images emailed to the nine-year-old were, in fact, images of Correa-Franco.
A forensic analysis of the laptop computer resulted in the discovery of 210 digital videos of child pornography, including the lewd and lascivious exhibition of the genitals of minor children and actual sexual intercourse involving a nude minor female and adult male. The nude image of the nine-year-old victim taken by her at Correa-Franco’s urging was also discovered.
Correa-Franco will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI and the Rochester, Minn., Police Department. Assistant U.S. Attorney Robert Stabe is prosecuting the case.
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."
Spring Creek Man Indicted for Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spring Creek, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Francis Kills In Sight, age 19, was indicted by a federal grand jury on October 16, 2012. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 24, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, life of supervised release, and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Kills In Sight is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Kills In Sight was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Southern California Physician and Two Co-Conspirators Found Guilty for Roles in $1.5 Million Medicare Fraud SchemeRead the Press Release
A Southern California physician, a durable medical equipment (DME) supply company employee and a health care professional were found guilty late yesterday by a federal jury in Los Angeles for their roles in a $1.5 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Criminal Division; U.S. Attorney for the Central District of California André Birotte Jr.; Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office; and Glenn R. Ferry, Special Agent in Charge of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
Godwin Onyeabor, 49, of Ontario, Calif., Sri J. Wijegunaratne, 58, of Anaheim, Calif., and Heidi Morishita, 48, of Valencia, Calif., were each found guilty in U.S. District Court in the Central District of California of one count of conspiracy to pay and receive kickbacks. Wijegunaratne was also found guilty of conspiracy to commit health care fraud and six substantive counts of health care fraud. Onyeabor was also found guilty of conspiracy to commit health care fraud and 11 substantive counts of health care fraud.
The trial evidence showed that between January 2007 and February 2012, Onyeabor, an officer at Fendih Medical Supply Inc., a DME supply company located in San Bernadino, Calif., and others paid cash kickbacks to Wijegunaratne, a physician, and Morishita for fraudulent prescriptions for DME, including power wheelchairs. The evidence showed that Wijegunaratne wrote prescriptions for power wheelchairs and other DME that Medicare beneficiaries did not need and sometimes never used. After receiving prescriptions from Wijegunaratne and Morishita, Onyeabor and others used the prescriptions to fraudulently bill Medicare for the medically unnecessary DME.
At trial, several Medicare beneficiaries testified that they were lured to medical clinics with the promise of free items such as vitamins and juice, only to receive power wheelchairs that they did not need and did not want. The beneficiaries further testified that their attempts to reject delivery of the power wheelchairs from Onyeabor’s supply company were unsuccessful.
As a result of this fraud scheme, Onyeabor, Wijegunaratne and others submitted and caused the submission of approximately $1.5 million in false and fraudulent claims to Medicare, and received almost $1 million on those claims.
At sentencing, scheduled for Sept. 9, 2013, Onyeabor, Wijegunaratne and Morishita face a maximum penalty of 10 years in prison and a $250,000 fine for each count.
The case is being prosecuted by Assistant Chief Benton Curtis and Trial Attorneys Fred Medick and Alexander Porter of the Criminal Division’s Fraud Section. The case was investigated by the FBI and the Los Angeles Region of HHS-OIG.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
South Florida Women Sentenced in Identity Theft Tax Refund Fraud Scheme Involving the Filing of Approximately 2,000 Fraudulent Tax Returns Seeking $11 Million Dollars in RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announced the sentencing of Alci Bonannee, 36, of Fort Lauderdale, and Sonyini Clay, 40, of Miami Gardens, for their roles in an identity theft tax refund fraud scheme. Bonannee was sentenced to 317 months in prison to be followed by three years of supervised release. Clay was sentenced to 121 months in prison to be followed by three years of supervised release. Judge James I. Cohn also ordered Bonannee to pay $1,908,182 in restitution to the Internal Revenue Service.
On January 28, 2013, Bonannnee was convicted at trial of conspiracy to defraud the government with respect to claims (18 U.S.C. § 286), filing false claims (18 U.S.C. § 287), wire fraud (18 U.S.C. § 1343), and aggravated identity theft (18 U.S.C. § 1028A). On January 13, 2013, Clay pled guilty to conspiracy to defraud the government with respect to claims (18 U.S.C. § 286) and aggravated identity theft (18 U.S.C. § 1028A).
According to testimony and evidence presented at trial, Bonannee, Clay and co-defendant Chante Mozley, engaged in a large scale identity theft tax fraud scheme that operated from December 2010 through June 2012. During the course of the fraud scheme, there were approximately 2,000 fraudulent tax returns submitted to the Internal Revenue Service for payment seeking $11 million dollars in refunds. The Department of Treasury paid out approximately $3.5 million dollars into bank accounts held in the name of and controlled by the defendants, who withdrew approximately $1.9 million in cash.
According to testimony and evidence presented at trial, Bonannee filed a majority of the fraudulent tax returns from her house and other locations. Bonannee filed many of these fraudulent returns using compromised personal identification information obtained from a nurse at a local hospital. Clay filed several hundred fraudulent tax returns form her house and other locations.
On March 29, 2013, after having pled guilty to conspiracy to file fraudulent claims (18 U.S.C. § 286), U.S. District Judge James I. Cohn sentenced Mozley to 42 months imprisonment to be followed by three years of supervised release after having pled guilty to conspiracy to file fraudulent claims. Mozley was also ordered to pay restitution in the amount of $1,908,182.00 to the Internal Revenue Service.
Mr. Ferrer commended IRS-CID and USSS for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger 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.