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Thursday 25 April 2013
Former Wells Fargo Banker Charged with 80 Felony Counts for Fleecing $750,000 from CustomersRead the Press Release
United States Attorney Laura E. Duffy announced today that former Chula Vista Wells Fargo banker Ricardo Adolfo Benavente, III was charged with defrauding Wells Fargo and several of its customers by stealing and laundering approximately $750,000 from Wells Fargo customer accounts. According to an indictment unsealed in federal court today, Benavente used his access privileges at Wells Fargo to move hundreds of thousands of dollars from the accounts of Wells Fargo customers into accounts controlled by Benavente himself. The indictment further alleges that in many instances Benavente laundered the stolen funds in order to disguise the fact that he had stolen them.
According to the indictment, from April-October 2009, Benavente, a banker at a Wells Fargo branch office in Chula Vista, stole the funds from accounts belonging to four Wells Fargo customers. He then funneled the stolen funds through various Wells Fargo accounts that he created and controlled, and which he had opened in the name of fictitious customers expressly for the purpose of conducting his scheme to defraud. In one case, Benavente also funneled stolen funds through a PayPal account that he set up in the name of one of his victims, in order to disguise the fact that the money had been stolen. Benavente then used this PayPal account to direct the funds to his own bank and for his own benefit. The indictment alleges that in furtherance of his fraud scheme, Benavente stole and used the names and account numbers of his various victims in order to create the appearance that the transactions were being conducted by the customers themselves. He also created a trail of fraudulent bank instruments, such as withdrawal slips and cashier’s checks, which he used to steal money from his victims’ accounts and direct those funds to accounts that he controlled.
The indictment charges Benavente with counts of bank fraud, embezzlement, aggravated identity theft, and money laundering in connection with the scheme. In addition, he is charged with one count of filing a false tax return for his failure to disclose to the Internal Revenue Service that he had acquired hundreds of thousands of dollars of income from his scheme to defraud Wells Fargo and its customers.
United States Attorney Duffy thanked the agents from the United States Secret Service and Internal Revenue Service-Criminal Investigations for their work in uncovering the alleged crimes.
Benavente was arraigned on the indictment today and pleaded not guilty. A motion hearing is scheduled in the case for June 3, 2013 at 2:00 p.m., before United States District Court Judge Larry Alan Burns.
DEFENDANT Case Number: 13CR1513-LAB Ricardo Adolfo Benavente, III Age: 27 Chula Vista, CA SUMMARY OF CHARGESCounts 1-28: Bank fraud in violation of Title 18, United States Code, Section 1344
Maximum penalties: 30 years’ imprisonment, $1,000,000 fineCounts 29-56: Embezzlement in violation of Title 18, United States Code, Section 656
Maximum penalties: 30 years’ imprisonment, $1,000,000 fineCounts 57-63: Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A
Maximum penalties: Mandatory 2-year consecutive sentenceCounts 64-79: Money Laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i)
Maximum penalties: 20 years’ imprisonment, $500,000 fineCount 80: Filing a False Tax Return, in violation of Title 26, United States Code, Section 7206(1)
INVESTIGATING AGENCIES
Maximum penalties: 3 years’ imprisonment, $250,000 fine, costs of prosecutionUnited States Secret Service
Internal Revenue Service – Criminal InvestigationsAn indictment itself is not evidence that the defendant committed the crimes charged.
The defendant is presumed innocent until the Government meets its burden in court
of proving guilt beyond a reasonable doubt.Former Town Creek, Ala., Police Officer Pleads Guilty to Assaulting an ArresteeRead the Press Release
Brandon Shane Mundy, a former police officer of numerous law enforcement agencies, the most recent being the Town Creek, Ala., Police Department, pleaded guilty today to violating the civil rights of a man during the course of an arrest. According to information presented to the court, on Nov. 22, 2009, Mundy was involved in a vehicle pursuit and fired shots at a man’s vehicle before later ramming it and causing it to wreck in a ditch. While another police officer reached the man and placed him under arrest without resistance, Mundy ran up and unjustifiably and repeatedly beat the man in the head with an object that was either a baton or a flashlight causing the man to suffer physical injury. After Mundy lost control of the object, Mundy continued to strike the man in the head with his fist.
“The use of excessive force cannot be tolerated,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The vast majority of police officers do an outstanding job in protecting both the community and the rights of the accused, even in stressful situations. But when police officers use excessive force to punish arrestees, they will be held accountable.”
“Police officers who abuse their power in order to assault citizens undermine the system of constitutional government they are sworn to uphold,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “As the plea in this case shows, my office will work closely with the Justice Department’s Civil Rights Division to aggressively enforce the laws that prohibit police misconduct.”
Mundy faces a statutory maximum sentence of 10 years in prison. A sentencing date has not yet been set.
This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Elizabeth Holt of the Northern District of Alabama and Civil Rights Division Trial Attorney Daniel H. Weiss.
Former Silverado High School Head Softball Coach Convicted of Federal Child Exploitation and Pornography ChargesRead the Press Release
LAS VEGAS, Nev. – Following a three-day jury trial, a man who was employed as the head softball coach at Silverado High School in Henderson, Nev., has been convicted of multiple counts of child sex exploitation for causing the production of child pornography and exchanging sexually explicit text messages and photographs with a minor girl, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Albert Silva Hernandez, Jr., 44, of Las Vegas, was convicted on Wednesday, April 24, 2013, of eight counts of sexual exploitation of a minor. He faces 15 years minimum and 30 years maximum in prison, and a fine of up to $250,000 on each count. Hernandez is in custody and is scheduled to be sentenced on Aug. 5, 2013, at 10:00 a.m. before U.S. District Judge James C. Mahan.According to the indictment and the evidence introduced at trial, Hernandez, a softball coach for Silverado High School and for a competitive club team, had sexual relations with one of his 17-year-old players and photographed the sexual acts with his cellular telephone camera, and sent the images to the girl. Hernandez also had the girl photograph herself naked and send those images to him by her cellular telephone. The pornographic images were produced and the text messages were exchanged between Hernandez and the victim, on December 25, 2011, January 29, February 1, and February 2, 2012.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Clark County School District Police. It is being prosecuted by Assistant United States Attorneys Susan Cushman and Roger Yang.
The 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.
Former Owner of Wilkesboro Clinical Laboratory Pleads Guilty to Criminal Health Care Fraud and Tax Charges and Agrees to Pay $300,000 to Settle Civil Fraud AllegationsRead the Press Release
CHARLOTTE, N.C. – The former owner of Wilkesboro Clinical Laboratory (“WCL”) pleaded guilty today in U.S. District Court for his involvement in a health care fraud scheme in which he and his company billed Medicare for services which were not rendered, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Louis Francis Curte, 49, also admitted he filed false tax returns from 2007 to 2010.
In a separate civil settlement with the U.S. Attorney’s Office, Curte also agreed to pay $300,000 to resolve civil fraud allegations that he and his company violated the Physician Self-Referral Act or “Stark Law.”
U.S. Attorney Tompkins is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region; Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
Curte appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to four counts of health care fraud and one count of filing a false tax return. According to court documents and today’s plea hearing, Curte was the owner and operator of Wilkesboro Clinical Laboratory (“WCL”), which was enrolled with the Medicare program and provided microbiology and other laboratory services. Court records show that from at least 2007 to in or about 2009, Curte defrauded Medicare by submitting false and fraudulent claims for microbiology services which were never rendered.
Court documents indicate that Curte and WCL used another company (“Company #1”) for certain types of microbiology testing that could not be performed by WCL in-house. Court records show that WCL generally submitted specimens to Company #1 to test for the presence of infection-causing bacteria. If an infection was present in a specimen, Company #1 then typically performed one or two additional tests to identify the type of pathogen present (“identification test”) and the type of antibiotic to which the pathogen was susceptible (“susceptibility test”).
Pursuant to the scheme to defraud, Curte routinely billed Medicare for identification and susceptibility tests, when, in fact, no such tests were performed and even when the initial testing indicated that no pathogen was actually present in the specimen. According to the plea agreement, the intended loss to Medicare by the defendant was between $10,000 and $30,000.
At today’s hearing, Curte also pleaded guilty to filing false tax returns for the years 2007 through 2010. According to filed documents and court proceedings, Curte filed false tax returns which substantially understated his gross income, and therefore, the tax owed to the United States. Court records indicate that Curte maintained false books in an attempt to mask a prohibited business relationship with a physician, identified in court documents as Dr. T.M. According to the plea agreement, the amount of tax loss was more than $30,000 but less than $50,000.
At sentencing, Curte faces a maximum term of 10 years in prison and a $250,000 fine for the health care fraud charges and a maximum term of three years in prison and a $250,000 fine for the tax fraud charge. In his plea agreement, Curte agreed to pay full restitution to Medicare and to IRS for any losses. The final restitution amount will be determined by the Court at Curte’s sentencing hearing, which has not been scheduled yet. Curte has been released on bond pending sentencing.
Curte’s prohibited relationship with Dr. T. M. forms the basis for Curte’s civil settlement agreement. According to the civil settlement agreement, from January l, 2006 through April 30, 2009 Curte and WCL violated the Stark Law by knowingly having a prohibited financial relationship with Dr. T.M.
Dr. T.M. owned and operated a billing company, now defunct, which submitted all of WCL’s reimbursement claims to Medicare. Dr. T.M.’s billing company was paid on a “per claim” basis for the reimbursement claims submitted to Medicare on behalf of WCL. As an owner of the billing company, Dr. T.M. benefitted directly from WCL’s payments to his billing company. Investigators also found that Dr. T.M. referred blood and tissue specimens to WCL for pathology testing.
The Stark Law forbids a medical provider from billing Medicare and Medicaid for certain services referred by physicians who have a financial relationship with the medical provider. A prohibited financial relationship includes an agreement between the medical provider and a physician to compensate the physician based on the volume of the physician’s referrals or the revenue realized through those referrals.
Under the terms of the settlement agreement, Curte is required to reimburse the government for the amount he wrongfully received from Medicare in violation of the Stark Law and to pay penalties back to the program, for a total of $300,000.
The investigation into Curte was handled by HHS-OIG and IRS, with the assistance of the FBI. The criminal prosecution was handled by Assistant U.S. Attorney Kelli Ferry. Assistant U.S. Attorney Don Caldwell handled the civil settlement.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Former Nopd Officer, Maurice R. Palmer, Sentenced for Tax EvasionRead the Press Release
MAURICE R. PALMER, age 51, a resident of New Orleans, Louisiana, was sentenced today by U.S. District Judge Jane Triche Milazzo to 5 years probation for one count of tax evasion, announced U.S. Attorney Dana J. Boente. PALMER was also ordered to pay $31,662 in restitution to the Internal Revenue Service and a $100 special assessment.
According to court documents, from 2006 through 2008, PALMER, a former New Orleans Police Department officer, did not file federal taxes. During this period of time, PALMER did file a Form W-4 with his employer, the NOPD, wherein he falsely claimed he was “exempt” from any taxes. Based on this form, according to court documents, no taxes were withheld from PALMER’s paychecks in the year 2008. According to the factual basis, as a result of the filing of his W-4 form, PALMER received taxable income of $68,170, to which there is a tax due and owing to the United States of $13,388 for the tax year 2008. In addition, according to the factual basis, PALMER also owes a total of $18,274 in taxes for not filing in the tax years 2006 and 2007. According to the plea agreement, PALMER is required to pay the entirety of the tax due and owing for these years to the Internal Revenue Service.
The case was investigated by agents from the Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant U. S. Attorney Matt Chester.
Former Jefferson Parish Cao, Timothy Whitmer, Sentenced in Corruption CaseRead the Press Release
TIMOTHY WHITMER, age 53, a resident of Harvey, Louisiana and former Chief Administrative Officer of Jefferson Parish, was sentenced today to three years probation by U.S. District Court Judge Mary Ann Vial Lemmon for Misprision of a Felony concerning his involvement with Aaron Broussard and Tom Wilkinson in a Conspiracy to Commit Bribery, Wire Fraud, and Theft Concerning Programs Receiving Federal Funds, announced U.S. Attorney Dana J. Boente and FBI Special Agent in Charge Michael Anderson. WHITMER was also ordered to pay restitution to Jefferson Parish in the amount of $160, 430.15 joint and severally liable with Aaron Broussard, Tom Wilkinson and Karen Parker. In addition, Judge Lemmon ordered WHITMER to pay a $5,000 fine.
Broussard was previously sentenced for his involvement in a conspiracy with WHITMER, Tom Wilkinson and Karen Parker to steal taxpayer funds when they and others created a sinecure Paralegal Supervisor position for Parker. Broussard knowingly and illegally diverted taxpayer funds to his ex-wife in the form of her salary for over six years, when Parker did not even possess the most basic credentials or requisite experience to hold the position of Paralegal Supervisor and, repeatedly sought to conceal the illegal nature of her employment with Jefferson Parish by having Parker transferred to the ID Management Office at the East Bank Regional Library in an effort to hide the fact that she was not working for the Parish Attorney’s Office as a Paralegal Supervisor and was not performing any work as a paralegal.
“Mr. Whitmer betrayed the citizens of Jefferson Parish and violated his public trust,” said United States Attorney Boente. “The prosecution should further serve notice that the United States Attorney’s Office will continue its robust investigation and prosecution of public corruption.”
“The FBI believes this is a fair and just result given Mr. Whitmer’s role and participation in these corrupt schemes,” added Michael Anderson, Special Agent in Charge of the Federal Bureau of Investigation New Orleans Field Office.
The case was investigated by agents from the Federal Bureau of Investigation and was assisted by the Metropolitan Crime Commission. The case was prosecuted by Strike Force Chief and Assistant U.S. Attorney Brian Klebba, and Assistant U.S. Attorneys Matt Chester, Daniel Friel, and Mimi Nguyen.
Former Chief Merchandising Officer of Aeropostale, Inc. Found Guilty of Receiving More Than $25 Million in KickbacksRead the Press Release
Christopher Finazzo, the former Executive Vice President and Chief Merchandising Officer of Aéropostale, Inc., a national mall-based specialty clothing retailer headquartered in Manhattan, was convicted today by a federal jury in Brooklyn on all sixteen counts for defrauding Aéropostale and receiving more than $25 million in kickbacks from Douglas Dey, the owner of South Bay Apparel, Inc. (“South Bay”), previously a major clothing supplier of Aéropostale. The jury’s verdict followed a three-week long trial in United States District Court in Brooklyn, New York, before the Honorable Roslynn R. Mauskopf. Finazzo was convicted of one count of conspiracy, fourteen counts of mail fraud, and one count of wire fraud. On Monday, April 29, 2013, the government will present its case to forfeit more than $21 million, two investment accounts, and four pieces of real property from Finazzo. Co-defendant Douglas Dey pleaded guilty on September 27, 2012, to conspiracy to bribe Finazzo.
Finazzo’s verdict and Dey’s guilty plea were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
The evidence at trial established that Finazzo and Dey entered into a fraudulent scheme in which Finazzo caused Aéropostale to buy more than $350 million in t-shirt and fleece merchandise from South Bay in exchange for payments from Dey of approximately 50% of South Bay’s profits. Finazzo was Aéropostale’s head merchant from July 1996 until his termination by Aéropostale on November 7, 2006. While receiving approximately $20 million in salary, bonus, and stock options for the approximately 10 years that Finazzo worked at Aeropostale, Finazzo received more than $25 million in kickbacks from approximately June 2002 through November 2006 from Dey through C&D Retail Consultants, Inc., a company controlled by Finazzo, and through other companies Finazzo jointly owned with Dey. In 2005 alone, at the peak of the business between Aéropostale and South Bay, Finazzo received more than $13 million in kickbacks from South Bay. Throughout the course of the scheme, Finazzo and Dey concealed the kickbacks from Aéropostale and its employees, causing Aéropostale to lose profits and negatively impacting employee bonus amounts. Additionally, because Finazzo falsely stated in numerous company questionnaires that he was not engaged in any related-party transactions, Aéropostale falsely reported in its SEC filings that the company did not engage in such transactions. Aéropostale is a publicly traded company on the New York Stock Exchange.
At trial, the government proved that Finazzo defrauded Aéropostale by preventing Aéropostale from seeking lower prices for merchandise it purchased from South Bay, preventing Aéropostale from selecting other vendors who had better price and quality, and by causing Aéropostale to pay higher prices on merchandise it purchased from South Bay. For example, Finazzo’s unyielding commitment to placing t-shirt orders with South Bay caused him to repeatedly rebuff Aéropostale’s CEO’s direction that 25% of the t-shirt orders be placed with overseas vendors at a much lower cost. Finazzo did this to maintain his illegal kickbacks from South Bay.
“We have all heard the saying ‘money does not buy happiness,’ and today’s verdict is case in point for that maxim. Christopher Finazzo had a great job that paid him millions of dollars, but this honest living was apparently not enough to satisfy his greed. As the evidence at trial showed, he schemed to steal from Aéropostale and to receive more than $25 million in illegal kickbacks from a supplier,” stated United States Attorney Lynch. “As today’s verdict shows, we will vigorously pursue corporate fraudsters who double-deal to enrich themselves and bring them to justice.” Ms. Lynch extended her grateful appreciation to the FBI and the Securities and Exchange Commission for their assistance.
When sentenced by Judge Mauskopf, Christopher Finazzo faces a sentence of up to 20 years’ imprisonment for each of the fourteen counts of mail fraud and the one count of wire fraud, and up to five years’ imprisonment for the conspiracy count. Co-defendant Douglas Dey faces a maximum sentence of five years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, John P. Nowak, and Claire Kedeshian.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The Defendants:
CHRISTOPHER FINAZZO
Age: 57DOUGLAS DEY
Age: 56Former Centreville Assistant Police Chief GuiltyRead the Press Release
The former assistant chief of police for Centreville, Illinois, pled guilty in US District Court on April 25, 2013, to making false statements to federal law enforcement officers, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Corey Allen, 31, admitted that he lied to federal law enforcement officers while they investigated whether he sold a gun to a convicted felon.
Allen was indicted by the federal grand jury on December 11, 2012, following an inquiry into whether he sold a gun to a registered sex offender. On November 30, 2012, Allen was interviewed by federal agents who asked him whether he supplied Individual #1 with a firearm. Allen stated that he did not supply the gun to Individual #1, claiming that he had no idea where Individual #1 had gotten the gun. Allen further stated that he had never seen the gun before federal agents recovered it on October 11, 2012.
Allen admitted in court documents that he had previously possessed the firearm and in fact had sold the gun to Individual #1 for $100 on May 3, 2012, knowing that Individual #1 was a felon and a registered sex offender. Allen stated that he came into possession of the firearm while working as a police officer, but rather than documenting the recovery of the weapon he simply kept it, and later sold it.
The crime of making a false statement to a federal law enforcement officer is punishable by up to 5 years in prison, a $250,000 fine, and not more than 3 years supervised release upon release from prison. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Court documents explained that, under the Sentencing Guidelines, Allen will be sentenced for the more serious offense of selling a firearm to a felon in addition to his conduct of making false statements. Sentencing has been scheduled for August 30, 2013.
US Attorney Stephen Wigginton said, “Instead of upholding the oath he took to protect his community, this officer personally armed a sex offender with a stolen gun, then lied to federal agents about what he had done. He threw away his career, tarnished the badge, and endangered his community for a few dollars.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Florida Man Sentenced to 55 Months Imprisonment for Role in Health Care-Fraud and Money Remitting RingRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, Addy Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that Oscar Sanchez, 47, of Naples, was sentenced to 55 months imprisonment, 20 months home confinement, and three years of supervised release for his role in a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). In addition, U.S. District Judge Paul Huck entered a forfeiture order that consisted of a personal money judgment against Sanchez in the amount of $10,000,000. In partial satisfaction of that judgment, Sanchez will be forfeiting to the United States four properties worth about $635,000, and $63,196, in cash. Sanchez also must perform 1,600 hours of community service during his first year after his term of imprisonment.
On August 30, 2012, Sanchez pled guilty to conspiring to launder the proceeds of health care fraud. According to court documents, Sanchez acted as a middleman between individuals engaging in health care fraud, and Caribbean Transfers, a company that remitted money from the United States to Cuba. Sanchez admitted to providing approximately $10 million in cash to individuals who defrauded the Medicare program.
Mr. Ferrer commended the investigative efforts of FDLE, FBI, and HHS-OIG in coordination with the Medicare Fraud Strike Force, for their work on this case. The case was prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Eloisa Fernandez.
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.
Federal Inmate Pleads Guilty to Obtaining $23,000 in Social Security Benefits FraudulentlyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old woman incarcerated at the Federal Correctional Institute in Waseca, Minnesota, pleaded guilty to stealing more than $23,000 in Social Security benefits. Nefertiti Randall specifically pleaded guilty to one count of theft of government money or property. Randall, who was indicted on January 22, 2013, entered her plea before United States District Court Judge John R. Tunheim.
In her plea agreement, Randall admitted that from June 12, 2009, through April 2012, she stole $23,012 from the Social Security Administration (“SSA”). The funds, which were automatically deposited into a bank account accessible to both Randall and her mother, represented benefits intended solely for Randall’s mother. Her mother died in June of 2009, and in August of 2009, Randall began serving an unrelated, multi-year, identity-theft sentence at the Federal Correctional facility in Waseca. According to the indictment, Randall nonetheless continued to access her mother’s social security benefits until spring of 2012.
For her crime, Randall faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the SSA-Office of Inspector General, with cooperation from the U.S. Bureau of Prisons. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.Extradited Mexican with Ties to Zetas Sentenced in Large-Scale Cocaine Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Benito Aguilar-Ozuna, aka “Pichollo,” a Mexican citizen who was extradited to the U.S. late last year, has been sentenced to prison for nearly 20 years for conspiracy to traffic cocaine, United States Attorney Kenneth Magidson announced today. Aguilar-Ozuna pleaded guilty Jan. 25, 2013.
Just moments ago, Senior U.S. District Judge Janis Graham Jack handed Aguilar-Ozuna a sentence of 235 months. As a Mexican citizen, he is expected to face deportation proceedings following his release from prison.
Benito Aguilar-Ozuna was charged with conspiracy to possess with intent to distribute cocaine in an indictment returned Nov. 25, 2008, which was superseded in April 2009 and again in January 2010. Aguilar-Ozuna was charged along with three others, including Carlos Alberto Oliva-Castillo aka “La Rana,” a Mexican citizen arrested in October 2011 in Mexico. According to records, Oliva-Castillo was known as the number three figure in the Zetas drug cartel at the time of his arrest and allegedly controlled Zeta operations in the key northern states of Tamaulipas, Coahuila and Nuevo Leon.
The investigation in this case began in 2006 when law enforcement authorities discovered a narcotics importer/distributor based in Robstown for whom Oliva-Castillo was the source of supply. Aguilar-Ozuna was Oliva-Castillo’s most trusted associate in this large-scale cocaine trafficking organization based out of Diaz Ordaz, Mexico. The organization was responsible for the importation of cocaine from Mexico and the distribution of cocaine to the organization’s cells located in Texas, Florida, California, Oregon, Georgia and Illinois. Agents also discovered that Oliva-Castillo and Aguilar-Ozuna oversaw the transportation of narcotics proceeds in the hundreds of millions from the United States to Mexico. During the course of the investigation, law enforcement seized approximately 174 kilograms of cocaine from members of this organization. The case against Oliva-Castillo remains pending. He is presumed innocent unless convicted through due process of law.
The investigation leading to the criminal charges was conducted through the Organized Crime Drug Enforcement Task Force in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Corpus Christi Police Department, United States Border Patrol and the United States Marshals Service. The Department of Justice’s Office of International Affairs provided substantial assistance in Aguilar-Ozuna’s extradition.
This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Elroy Jay Weaselbear, Sr. 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, ELROY JAY WEASELBEAR, SR., a 39-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, appeared for sentencing. WEASELBEAR was sentenced to a term of:
Prison: 135 months
Special Assessment: $100
Supervised Release: 10 years
WEASELBEAR was sentenced in connection with his guilty plea to incest.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the government.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WEASELBEAR will likely serve all of the time imposed by the court. In the federal system, WEASELBEAR 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 Federal Bureau of Investigation.
Eighth Member of Conspiracy That Traded Child Pornography SentencedRead the Press Release
WASHINGTON – The last conspirator charged in the Western District of Virginia was sentenced today for his role in a conspiracy that disseminated thousands of images and videos of the sexual abuse of children, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and the U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.
Jesse Leon Coleman, 48, of Lynchburg, Va., was sentenced today following his previous plea to one count of receipt of child pornography by Senior U.S. District Judge Norman K. Moon in the Western District of Virginia to serve 135 months. Following his release, Coleman must register as a sex offender.
In January 2012, a grand jury charged nine individuals, including Coleman, with conspiracy to receive, distribute, possess and access with intent to view child pornography.
Co-defendants Manuel Antonio Mares, 57, of Miami; Jeremy Hart Yost, 26, of West Bend, Ore.; Richard Phillip Allen, 66, of Redondo Beach, Calif.; James Calvin Boyd, 59, of Pell City, Ala.; and Peter Franklin Ortiz, 57, of Greenville, S.C., were previously sentenced in the Western District of Virginia for their roles in the conspiracy. Co-defendants Thomas Syfor, 71, and Matthew Ackerman, 49, both of Bethlehem, Pa., were previously transferred to the Eastern District of Pennsylvania for disposition in that district. The ninth defendant, known as “Andy Danilov” is believed to reside in Russia and remains at large.
According to court documents, beginning in August 2010 and continuing until at least November 2011, Danilov distributed emails to a group of individuals, including the defendant, that contained links to compressed files and file attachments depicting minors engaged in sexually explicit conduct. Danilov often used the screen name “Cinemaboy” in the emails. According to information presented at the plea hearing, forensic analysis of each of the defendants’ computers confirmed their involvement in the conspiracy, and some of the defendants were found to possess very large numbers of images and movies depicting the sexual abuse of children.
Evidence presented at the sentencing hearing indicated that, while in the military, Coleman was convicted for possession of child pornography, and sexually abused three minor boys overseas.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and 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 ww.projectsafechildhood.gov.
The investigation of the case was conducted by the FBI Innocent Images Operations Unit. The case is being prosecuted by Assistant U.S. Attorney Nancy Healey of the Western District of Virginia and Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.Eagle Butte Man Sentenced for Disorderly ConductRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of two counts of Disorderly Conduct was sentenced on April 18, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Frankie Delgado, age 53, was sentenced to a $1,000 fine and a $10 special assessment.
Delgado was indicted for 3 counts of Abusive Sexual Contact by a federal grand jury in December 2011. He pled guilty to a Superseding Information charging him with two counts of Disorderly Conduct on April 18, 2013.
The conviction stems from two incidents that occurred in May 2011 in Eagle Butte.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Eagle Butte Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Bevan Ray Bordeaux, age 26, was indicted on April 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 18, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment on each count. Restitution may also be ordered.
The charges relate to an allegation that Bordeaux assaulted an Eagle Butte man on December 28, 2012 with shod feet and that the assault resulted in serious injury to the victim.
The charges are merely accusations, and Bordeaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Bordeaux was released on bond pending trial. A trial date has not been set.
Duluth Felon Indicted for Possessing Two FirearmsRead the Press Release
MINNEAPOLIS—Recently in federal court, a 36-year-old Duluth felon was indicted for possessing a nine-millimeter pistol and a .357-caliber revolver. On April 22, 2013, Ronald Paris Riles was specifically charged with one count of being a felon in possession of a firearm.
The indictment alleges that on February 6, 2013, Riles possessed the two firearms. Because he is a felon, Riles is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Illinois for first-degree murder (1993) as well as manufacturing and delivering cannabis (2007).
If convicted of the federal charge now levied against him, Riles faces a potential maximum penalty of ten years in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Duluth Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.District Man Sentenced to 82-Year Prison Term for First-Degree Premeditated Murder and Other Charges in Two Slayings and Related Violence-Opened Fire in Two Attacks in Northwest Washington in 2011-Read the Press Release
WASHINGTON – Irvin Johnson, 27, of Washington, D.C., was sentenced today to 82 years of incarceration for killing two men and wounding another, and shooting at a fourth man, in a pair of shootings in 2011, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson was found guilty in February 2013 of a total of 15 charges following a two-week trial in the Superior Court of the District of Columbia. They included two counts of first-degree premeditated murder, two counts of assault with intent to kill while armed, and numerous related firearms offenses. The Honorable Lynn Leibovitz sentenced him today.
According to the government’s evidence, the violence stemmed from a longstanding dispute between Johnson and the victims, stemming from a robbery that Johnson had committed against one of their friends in 2008. During the evening hours of June 21, 2011, Johnson and an associate entered the 1500 block of Spring Place NW and shot at a man. No one was injured during the shooting, but a number of cars and buildings in the block were damaged.
Nearly three weeks later, in the early morning hours of July 9, 2011, in the 1400 block of Parkwood Place NW, Johnson ambushed and executed by shooting in the head Jimmie Simmons, 32, and Dominique Barbour, 31. The defendant also shot Anthony Thomas, then 21, in the head and chest. Miraculously, Mr. Thomas survived. Sadly, after a year of struggling from the injuries inflicted by the defendant, Mr. Thomas took his own life.
Immediately after the shooting, Johnson went on the run. He hid at friends’ homes in Washington, D.C., and eventually fled to a relative’s house in Lusby, Md., where he was apprehended by the Capitol Area Regional Fugitive Task Force on Sept. 9, 2011.
During the sentencing hearing, family members of the victims emotionally expressed their deep sorrow for the loss of their loved ones. After reviewing submissions from the government, attorneys for the defendant, and many victim impact statements from the family members and friends of the victims, Judge Leibovitz sentenced the defendant to the 82-year prison term followed by five years of supervised release. Immediately before the judge imposed sentence, Johnson yelled out, “Just throw the book at me and be done with it. I got things to do.”
In announcing the sentence, U.S. Attorney Machen praised the outstanding investigative work of the Metropolitan Police Department, the U.S. Marshals Service, including the Superior Court Warrant Squad; the Capitol Area Regional Fugitive Task Force, and the Maryland State Police. Mr. Machen thanked Dr. Carolyn Revercomb, formerly of the Office of the Chief Medical Examiner of the District of Columbia, as well as the Court Supervision and Offender Services Agency. He expressed appreciation for the work of Paralegal Specialists Alesha Matthews, Meridith McGarrity, Sandra Lane, Sharon Newman, and Fern Rhedrick; Intelligence Analysts Lawrence Grasso and Sharon Johnson; Criminal Investigators Tommy Miller and Durand Odom; Witness Security Specialists David Foster, La June Thames, and Debra Cannon; Litigation Services Specialists Joshua Ellen, William Henderson and Paul Howell; and Victim Advocates Marcey Rinker and Christina Principe for their support. Mr. Machen acknowledged the work of Assistant United States Attorney Erin O. Lyons, who investigated the case and Assistant United States Attorneys Erin O. Lyons and Glenn L. Kirschner, who tried the case.
13-145District Man Convicted of Assault with Intent to Kill While Armed and Other Charges in Northeast Washington Shooting-Shots Were Fired at Two Cars from Vehicle That Defendant Was Driving-Read the Press Release
WASHINGTON - Brian Woodings, 26, of Washington, D.C., was found guilty by a jury today of six counts of assault with intent to kill while armed and numerous other charges for his role in a shooting that targeted victims who were riding in two cars in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The jury also convicted Woodings of one count of aggravated assault while armed, three counts of assault with significant bodily injury, and related weapons offenses. The Honorable Stuart G. Nash scheduled sentencing for July 12, 2013.
According to the government’s evidence, on March 9, 2012, the six victims decided to go to the Scene nightclub in Northeast Washington to celebrate some friends’ birthdays. Woodings and some of his friends also decided to go to the nightclub that night. While there, Woodings got into a fistfight with one of the victims, and everyone involved in the fight was ejected.
Woodings, unsatisfied with the resolution of the fight, decided to recruit a friend with a gun and follow the victims out of the club. He and his accomplice got into a Honda Accord owned by a female friend of his, and followed the victims’ two cars down Bladensburg Road, and then onto Benning Road near the Langston Golf Course.
As the three cars crossed the bridge on Benning Road over Interstate 295, at about 3:55 a.m. on March 10, 2012, Woodings drove up next to each car, allowing his accomplice to fire multiple rounds into each vehicle. The victims were in the cars that were fired upon.
The gunfire struck one victim—the person involved in the fight with Woodings at the club—in the face. Another victim was shot in the neck, and a third was shot in the back.
After the shooting, Woodings fled the scene. The stunned victims collected themselves and drove home before calling the police and ambulances. Using license plate reader technology, the Metropolitan Police Department (MPD) identified the car the defendant was driving at the time of the assault, and they were ultimately able to use that information to identify the defendant. The shooter has yet to be identified and the case remains under investigation.
In announcing the verdicts, U.S. Attorney Machen commended the work of the MPD, the FBI, and the District of Columbia Department of Forensic Sciences, which were involved in the investigation and prosecution of this case. U.S. Attorney Machen also expressed appreciation to Paralegal Specialists Theresa Nelson, Kwasi Fields, and Kendra Johnson, Witness/Victim Advocate James Brennan, Litigation Technology Specialist Paul Howell, and Assistant U.S. Attorneys Veronica M. Sanchez and Erik M. Kenerson, who investigated and tried the case.
13-144Defendant Convicted in Identity Theft Tax Refund Fraud SchemeRead 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 Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the conviction of Nael Dawud Sammour, 52, of Pompano Beach, after a three day jury trial in front of U.S. District Court Judge William P. Dimitrouleas.
More specifically, Sammour was convicted of two counts of aggravated identity theft in violation of 18 U.S.C. § 1028A, for his role in possessing and transferring the means of identification of identity theft victims in conjunction with the transfer and attempted negotiation of fraudulently obtained U.S. Treasury tax refund checks. Prior to trial, Sammour pled guilty to eight counts of theft of public money in violation of 18 U.S.C. § 641. Sentencing has been scheduled for July 1, 2013 at 1:15 P.M. in front of the Honorable William P. Dimitrouleas in Ft. Lauderdale. At sentencing, Sammour faces a maximum statutory sentence of up to ten years in prison on each of the theft of public money counts, as well as mandatory two year consecutive sentences on the Aggravated Identity Theft counts.
According to testimony and evidence presented at trial, as well as from court documents, unknown individuals used stolen identification information, including the names, dates of birth, and social security numbers of unsuspecting taxpayers to fraudulently apply for and receive U.S. tax refunds to which they were not entitled. Thereafter, Sammour obtained many of these fraudulently obtained U.S. Treasury tax refund checks and later transferred these checks, along with counterfeit driver’s licenses and Social Security cards, to undercover IRS agents posing as check cashers. In total, agents seized 75 fraudulently obtained U.S. Treasury tax refund checks totaling $750,369.45 from Defendant Sammour. Moreover, when Sammour was arrested, law enforcement located and seized $30,128.24 in U.S. currency.
Mr. Ferrer commended the investigative efforts of the IRS-CID and the FBI for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
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.
Defendant Convicted in $39 Million Mortgage Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced yesterday’s conviction of defendant Quelyory A. Rigal, a/k/a “Kelly”, of Homestead, FL, after a jury trial before U.S. District Judge William J. Zloch in Fort Lauderdale, FL. Sentencing is scheduled for July 18, 2013 at 10:30 a.m.
Rigal was originally indicted with seven other defendants in Case No. 12-60088-CR-Williams, for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The indictment charged defendant Rigal with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. Defendant Rigal was found guilty on all counts charged in the indictment. Rigal faces a maximum penalty of 30 years in prison on each count.
The other defendants were: Juan Carlos Sanchez, of New York, N.Y., Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL. With the exception of Rigal who proceeded to trial, all other defendants plead guilty to conspiracy to commit mail and wire fraud. Defendant Sanchez was sentenced to 180 months in prison and three years of supervised release. Defendant Mena was sentenced to 54 months in prison and three years of supervised release. Defendant Arboleda was sentenced to 30 months in prison and three years of supervised release. Defendant Montero was sentenced to 22 months in prison and three years of supervised release. Defendant Mota was sentenced to five years of supervised release. Defendants Lazardi and Campo are awaiting sentencing. The sentencings are scheduled for May 5 and May 6, 2013, respectively, before Judge Zloch in Fort Lauderdale, FL.
According to the indictment, from January 2007 through November 2008, the defendants conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information as to material facts regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators would allegedly also create false documents to support the mortgage applications. Once the loans closed, the conspirators would divert portions of the mortgage proceeds for their personal use and benefit. The indictment alleges that the conspirators obtained approximately $39 million in fraudulent mortgage loans at Marina Oaks, resulting in $34 million in losses to the various lenders including Fannie Mae, which reported losses over $4.1 million to date, while Freddie Mac faces potential exposure of an additional $8.5 million.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General, as the lead investigative agency in the prosecution of Rigal, and IRS-CI and the Broward Sheriff’s Office for their participation in this investigation. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
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.
C’erra Dawn Clark Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 25, 2013, before U.S. Magistrate Judge Keith Strong, C'ERRA DAWN CLARK, a 23-year-old resident of Poplar, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for July 26, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On March 18, 2012, CLARK became frustrated and shook her infant child, K.M.B. She then threw the infant on the bed. CLARK admitted to law enforcement that she had shaken the baby. Another individual witnessed this, and recalled seeing CLARK shake the baby enough to "really upset him." Shortly after CLARK shook her, the baby began having seizures.
The child was taken to the local hospital then transported out of state to a Colorado children's hospital, where she was diagnosed with retinal hemorrhages and underwent an operative procedure involving the placement of a bilateral subdural-peritoneal shunt. The child's diagnosis for fully-restored sight is "guarded," as described by medical personnel.
CLARK faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
Criminal Complaint Filed Against Tinian Casino and Two Men in Investigation of Failure to File Currency Transaction ReportsRead the Press Release
ALICIA A. G. LIMTIACO, United States Attorney for the Districts of Guam and the
Northern Mariana Islands, announced that a criminal complaint was filed against two individuals and a corporation on April 19, 2013. A copy of the unsealed complaint is attached. The complaint charges GEORGE QUE, TIM BLYTHE, and the entity known as HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO with conspiracy to cause a financial institution to fail to file currency transaction reports and causing a financial institution to fail to file currency transaction reports. The maximum sentence for each offense is imprisonment for not more than 10 years, a fine of not more than $500,000 for an individual, and a fine of not more than $1,000,000 for a corporation.Federal law requires that a Currency Transaction Report (CTR) be filed with the IRS by financial institutions, including casinos, in regard to any currency transaction over $10,000.
According to the criminal complaint, beginning in or around September 2009 and continuing through the present, the TINIAN DYNASTY HOTEL & CASINO engaged in a pattern of accommodating gamblers in conducting transactions involving more than $10,000 without filing CTRs with the government. Defendants BLYTHE and QUE allegedly did not file any CTRs or cause anyone else to do so, despite their knowledge of the reporting requirement.
The criminal complaint alleges that in May 2012, IRS Criminal Investigation initiated an undercover operation concerning possible illegal activities at the TINIAN DYNASTY HOTEL & CASINO by having two agents pose as gamblers wishing to use large amounts of currency but not wanting any reports filed with the government about their use of cash. Between February 28, 2013, and March 4, 2013, HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO, GEORGE QUE, and TIM BLYTHE caused the TINIAN DYNASTY HOTEL & CASINO to fail to file required CTRs related to nine transactions involving undercover IRS agents. Each of these transactions, individually, exceeded the reporting threshold for CTRs.
The criminal complaint states that, upon conviction, HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO, GEORGE QUE, and TIM BLYTHE would forfeit their interest in two bank accounts held in Guam, two bank accounts held in Saipan, and in the TINIAN DYNASTY HOTEL & CASINO.
This Thursday morning, April 25, 2013, federal agents executed a federal search warrant on the TINIAN DYNASTY HOTEL & CASINO. In conjunction with the search warrant execution, QUE was arrested. Federal agents also executed warrants to seize property subject to forfeiture at the TINIAN DYNASTY HOTEL & CASINO, and its bank accounts.
QUE appeared in court this afternoon before Designated Judge Robert C. Naraja who ordered that he be released on conditions including verification of location monitoring at his residence by the U.S. Probation Office. An arrest warrant is outstanding for BLYTHE. Chief Judge Ramona V. Manglona of the District Court of the NMI issued a summons requiring the corporate representative of HONG KONG ENTERTAINMENT (OVERSEAS) INVESTMENTS, LTD. dba TINIAN DYNASTY HOTEL & CASINO to appear in court on May 3, 2013, at 9:00 a.m.
Kenneth J. Hines, Special Agent in Charge of IRS CI in the Pacific Northwest region said that, “Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. IRS Criminal Investigation is committed to enforcing these laws and following the money, wherever it leads.”
“CTRs are important law enforcement tools for uncovering criminal activity. Individuals and financial institutions who seek to evade the federal reporting requirements will be pursued by the Department of Justice and its partners in federal law enforcement,” said U.S. Attorney Alicia A.G. Limtiaco.
The case is being investigated by IRS Criminal Investigation. The Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Marshals Service, and Homeland Security Investigations assisted IRS CI in the execution of the search warrant. The United States Coast Guard assisted in transporting the federal agents from Saipan to the TINIAN DYNASTY HOTEL & CASINO.A criminal complaint is only a charge, and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Complaint
Cranberry Township Woman Pleads Guilty in Student Loan Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Cranberry Township, Pa., pleaded guilty in federal court to charges of bank fraud and mail fraud, United States Attorney David J. Hickton announced today.
Meredith Shuster, 36, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Shuster fraudulently obtained $729,000 in private lender student loans through using the identities and financial information of her parents.
Judge Hornak scheduled sentencing for Aug. 8, 2013 at 9:30 a.m. The law provides for a total sentence of 50 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Shuster on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, Postal Inspector Molly Hackimer, the Department of Education, Office of Inspector General and the Pennsylvania Higher Education Assistance Agency conducted the investigation that led to the prosecution of Meredith L. Shuster.
Convicted Felon, Melvin James, Jr., Indicted for Possession of Heroin and FirearmsRead the Press Release
MELVIN JAMES, JR., a 43-year old resident of New Orleans, Louisiana, was charged today in a three-count indictment by a Federal Grand Jury for his possession with intent to distribute 98 grams of heroin, being a convicted felon in possession of four firearms, and possessing those firearms in furtherance of narcotics trafficking, announced U.S. Attorney Dana J. Boente.
According to the indictment, JAMES was arrested following an attempt to sell heroin in Slidell, Louisiana. A search of his residence in New Orleans, Louisiana uncovered 98 grams of heroin, digital scales, products used to “cut” the heroin prior to distribution, over $3,000 in U.S. currency, marijuana, and other tools of the narcotics trafficking trade including four firearms of various makes and calibers.
If convicted of the possession with intent to distribute heroin charges, JAMES. faces a maximum penalty of ten years imprisonment, a $250,000 fine, and a three year term of supervised release. If convicted of the felon in possession of a firearm charge, JAMES faces a maximum penalty of eight years imprisonment, a $250,000 fine, and a three year term of supervised release. JAMES faces additional penalties for the possession of firearms in furtherance of narcotics trafficking charge of up to a term of life imprisonment, a $250,000 fine, and a five year term of supervised release.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
(Download Indictment )
Convicted Armed Robber Sentenced to Federal Prison After Selling Firearms, Ammunition and MarijuanaRead the Press Release
Ocala, Florida - Senior U.S. District Judge William Terrell Hodges today sentenced Marcus Jalany Durias (25, Lake County) to 10 years in federal prison for possession of a firearm and ammunition by a convicted felon), possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Durias pleaded guilty to the offenses on February 7, 2013.
According to court documents, from June 22, 2012 through July 3, 2012, Durias repeatedly sold firearms, ammunition and quantities of marijuana to a confidential source working in cooperation with law enforcement. Specifically, Durias sold two .38 caliber revolvers, ammunition and more than 420 grams of marijuana. One of the revolvers included in the transaction had been previously reported stolen. Durias engaged in this activity even though he was already serving a 15-year state probationary sentence for a 2008 armed robbery. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law. Now that his federal case has been resolved, Durias will face another sentencing proceeding in state court for his violation of probation in the armed robbery.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA) and the Lake County Sheriff's Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Columbia Man Pleads Guilty to Distributing Heroin Resulting in Death, Faces 22 Years in PrisonRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to distributing heroin, which resulted in the death of another Columbia man last year.
Ellison Lee Hutchison, Jr., also known as “Lucky,” 37, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a June 27, 2012 federal indictment.
By pleading guilty today, Hutchison admitted that he distributed heroin to Maximillion Shackelford on Jan. 23, 2012, and that Shackelford died as a result of using that heroin.
Under the terms of today’s binding plea agreement, Hutchison will be sentenced to 22 years in federal prison without parole and is subject to a fine up to $1 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Columbia police officers were called to the apartment where Shackelford lived with his mother on Jan. 23, 2012. Shackelford was deceased when officers arrived at his apartment. Officers found two syringes lying with Shackelford on the bed, and two recent injection sites were visible on his right wrist. An autopsy was conducted and the medical examiner declared the cause of death to be an overdose of heroin.
Officers examined Shackelford’s cell phone and learned that he had made arrangements earlier that evening to meet Hutchison. Shackelford’s brother told investigators that Hutchison was a heroin dealer with whom he and the victim had prior dealings. Investigators also interviewed the person who drove Shackelford to the location where the drug transaction occurred.
Columbia police officers and Boone County, Mo., sheriff’s deputies executed a search warrant at Hutchison’s residence on Jan. 25, 2012. Hutchison, who was arrested, was in possession of two cell phones, $3,892 in cash and a small baggie of marijuana. A search of Hutchison’s residence resulted in a number of items being seized, including a surveillance system, an electronic scale, two containers of Dormin (a common cutting agent for heroin), a large number of plastic baggies with the corners removed (consistent with having been used to package drugs) and $17,740 in cash. The electronic scale was later sent to the Missouri State Highway Patrol Crime Lab and found to have residue of heroin, cocaine and THC (the active ingredient in marijuana). Investigators examined the cell phones and found text messages between Shackelford and Hutchison, apparently referencing prior drug deals.
Hutchison was questioned and eventually admitted that he sold Shackelford a quarter gram of heroin for $45.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry, Special Assistant U.S. Attorney Stephanie Morrell (an assistant prosecutor for the Boone County Prosecutor’s office who was appointed for this case) and Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration, the Boone County, Mo., Prosecuting Attorney’s Office, the Boone County, Mo., Sheriff’s Department and the Boone County, Mo., Medical Examiner’s Office.
Collierville Company American Marsh Pumps, Inc and Sales Vp Michael J. Florio Plead Guilty to A Felony Charge of Making False StatementsRead the Press Release
Memphis, TN – J-Line Pump, Inc., d/b/a American Marsh Pumps, Inc. (AMP), a Tennessee Corporation headquartered in Collierville, and Michael J. Florio, 40, of Collierville, pleaded guilty today to making false statements to a government agency that resulted in more than a half-million dollars in fraudulent sales of water pumps to an Egyptian company, announced U.S. Attorney Edward L. Stanton III.
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“When our government undertakes to provide development programs throughout the world, it must be able to trust its partners,” said U.S. Attorney Stanton. “Government contractors are neither exempt from nor allowed to turn a blind eye to the rules and requirements designed to prevent fraud and malfeasance. Today’s guilty plea should serve notice to those who engage in procurement fraud that there is zero tolerance for such conduct, and ultimately you will be held accountable.”
The charge in the information grew out of an indictment filed December 14, 2011, alleging that AMP conspired with international interests in order to rig the outcome of bidding process for 10 large industrial water pumps intended for an Egyptian company.
This conspiracy violated the regulations established by the United States Agency for International Development (USAID) Commodity Import Program (CIP). One of the provisions required that the pumps be manufactured in the United States, but the pumps sold by AMP and Florio, the Vice President of Sales and Marketing for AMP, were manufactured in China. Other provisions required that the pumps be tested and certified, when in fact, none of the pumps were tested. During the plea hearing, it was revealed that the pumps were eventually sold to the Egyptian government, and proved to be of inferior quality. Six of the pumps were eventually returned to the manufacturer in China.
In pleading to the information, AMP agreed to forfeit $536,750, representing the proceeds obtained as a result of the false statements made. Florio will be sentenced by U.S. District Judge T. Fowlkes, Jr. on May 30, 2013. He could receive up to five years in federal prison.
“I would like to express my thanks for the excellent work of our investigators and our colleagues at the Department of Justice involved with this case,” said USAID Deputy Inspector General Michael Carroll. “Today’s pleas send a strong message to those who would obtain taxpayer funds intended to support USAID programs through fraud. The USAID Office of Inspector General will continue to use all necessary resources of the U.S. government to bring to justice those who wrongfully profit from the American taxpayer.”
This case was investigated by the USAID Office of Inspector General. Assistant United States Attorney Christopher E. Cotten represented the government.Clearfield County Man Sentenced to 3 Years in Prison for Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of West Decatur, Pa., has been sentenced in federal court to 36 months in prison with 10 years supervised release, required to register as a sex offender, and ordered to pay restitution of $1,000 on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on James L. Scott, 48.
According to information presented to the court, on April 10, 2009, Scott knowingly possessed pictures and videos in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Homeland Security Investigations for the investigation leading to the successful prosecution of Scott.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Citizen of Mexico Sentenced for Illegally Returning to U.S. After Being DeportedRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico entered a plea of guilty to a one-count indictment and has been sentenced in federal court to three months in prison, no supervised release, and ordered immediately turned over to the custody of the United States Immigration and Customs Enforcement for deportation to Mexico on his conviction of re-entry of a removed alien, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Jose Arqimedes Guevera-Amaya, 30, of Altoona, Pa.
According to information presented to the court, on Nov. 19, 2012, Guevera-Amaya, an alien who had been deported from the United States on Oct. 11, 2001, was found in Blair County, Pennsylvania. He had unlawfully re-entered this country without receiving permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to do so.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Guevera-Amaya.
Chicago Man Arrested for Allegedly Taking Cash to Assist with Filing False Bankruptcy Case to Avoid City Auto Impound FeesRead the Press Release
CHICAGO — A Chicago man was arrested today for allegedly soliciting and accepting a $600 cash payment to assist with filing a false bankruptcy case to avoid paying a fine or fees to the City of Chicago before obtaining the release of a vehicle from the city’s auto pound. The defendant, DANIEL RANKINS, was charged with bankruptcy fraud after an undercover investigation by the FBI and the City of Chicago’s Office of Inspector General.
Rankins, also known as “Little D,” 30, of Chicago, is scheduled to appear at 2 p.m. today before U.S. Magistrate Judge Mary Rowland in Courtroom 1342 of the Dirksen Federal Courthouse.
According to the unsealed complaint affidavit, authorities are investigating various individuals, including Rankins, who, in exchange for cash payments, orchestrate and assist in the filing of false bankruptcy petitions to avoid paying impound fees to the city. As a result of the allegedly fraudulent bankruptcy cases, the city suffers the loss of fines and fees due for each impounded vehicle, while the U.S. Bankruptcy Court suffers the loss of the $306 filing fee for each case.
In May 2012, the City of Chicago’s Department of Revenue (now Finance Department) alerted the U.S. Trustee for the Northern District of Illinois, which administers individual bankruptcy cases and liquidates debtors’ nonexempt assets, to a significant increase in the number of individuals who appeared to be using bankruptcy as a means of obtaining the release of their vehicles from city auto pounds without paying associated fines or fees. The city requires that individuals present their impound paperwork and pay what is owed at the Revenue Department before the city will release their vehicles from the pound. Revenue Department officials told the U.S. Trustee’s office that it appeared as though individuals were approaching people at the revenue office and assisting with filing false Chapter 7 bankruptcy cases to get their vehicles released without paying fines or fees.
The U.S. Trustee’s Office reviewed and identified more than 1,000 individual pro se bankruptcy filings in which the only creditors identified in the petitions were the Revenue Department and the city’s auto pounds. In almost all of these cases, the debtors filed applications claiming an inability to pay the $306 Bankruptcy Court filing fee.
According to the bankruptcy trustee’s office, almost all of these cases contained additional indications that the cases were filed fraudulently, with the debtors failing to appear at court hearings to review their applications to waive the filing fee. Eventually, nearly all of these cases were dismissed due to the failure of the debtors to file required documents, and the filing fees were never collected.
The complaint affidavit details an undercover operation on Jan. 7, 2013, to identify individuals who accepted cash in exchange for assisting with the filing of a false bankruptcy petition to obtain the release of impounded vehicles. An undercover officer went to the Revenue Department office, located at 400 West Superior St., and was approached by an individual who allegedly arranged for Rankins to contact the officer, which he did, later that day. The undercover officer told Rankins that $4,200 was owed to get a car released from the city pound, and Rankins allegedly said that he usually charged half of what a person owed the city to get their car. The officer told Rankins that he/she had only $600 and they arranged to meet that afternoon.
While driving the officer to the Dirksen Federal Courthouse, Rankins allegedly provided bankruptcy filing paperwork that was already completed except for the petitioner’s personal and vehicle information, and signature. Rankins allegedly explained that the officer was “wiping out” the city as a creditor by filing the bankruptcy. After completing the paperwork, the undercover officer entered the courthouse and filed the bankruptcy petition. The officer returned to Rankins’ vehicle, paid Rankins the $600, and was driven back to the Revenue Department, where Rankins instructed the officer to enter the east side of the building and speak with a Revenue Department representative who accepted the bankruptcy paperwork.
Bankruptcy fraud carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Rankins’ arrest and charge were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Joseph Ferguson, City of Chicago Inspector General. The U.S. Bankruptcy Court and the U.S. Trustee’s Office for the Northern District of Illinois cooperated and assisted with the investigation, which is continuing.
The government is being represented by Assistant U.S. Attorney Megan Church.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
California CPA Sentenced to Two Years in Prison and Ordered to Pay Restitution for Role in Stolen Identity Tax Refund SchemeRead the Press Release
Masood Chotani, a certified public accountant from Los Angeles , was sentenced today to 24 months in prison, followed by one year of supervised release, the Justice Department and Internal Revenue Service (IRS) announced. Chotani was also ordered to pay $60,705 in restitution to the IRS.
On June 23, 2010, Chotani was indicted by a federal grand jury on charges of engaging in a scheme to file false tax returns with the IRS using the names and Social Security numbers of deceased individuals. He pleaded guilty to conspiracy to defraud the United States on January 15, 2013.
According to the indictment and the plea agreement, in 2002 and 2003, Chotani misappropriated employer identification information from his client files and provided them to his co-conspirators, Haroon Amin and Ather Ali. Amin and Ali then prepared and filed fraudulent tax returns falsely stating that these deceased individuals earned wages from which income tax had been withheld. As part of the scheme, Chotani caused 47 tax returns to be filed with the IRS claiming an aggregate of $372,558 in false refunds. Although the IRS rejected the bulk of the refund claims filed in the scheme, a number of refund checks were issued and delivered to addresses controlled by Amin, Ali, and their co-conspirators, including various mailboxes opened by Ali. Most of these refund checks then were delivered overseas to be deposited in bank accounts in Armenia and Pakistan. Chotani admitted that he was a knowing participant in this scheme.
Amin and Ali are serving prison sentences of 30 and 37 months, respectively.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of agents from the IRS Criminal Investigation Division in Laguna Niguel, Calif., as well as Assistant U.S. Attorney Charles E. Pell and Tax Division Trial Attorneys Joseph A. Rillotta and Ignacio Perez de la Cruz, who prosecuted the case.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax .
Bureau of Prisons Employee Admits Receiving Unlawful GratuitiesRead the Press Release
Baltimore, Maryland - A day after her trial began in federal court, Susan A. Pratt, age 47, of Crofton, Maryland, pleaded guilty on April 23, 2013 to receipt of unauthorized payments as a government employee.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge M. Elise Chawaga, Fraud Detection Office, U.S. Department of Justice Office of the Inspector General.
Pratt was a supervisory traffic management specialist in the Bureau of Prisons (BOP) Relocation Services section, located in Annapolis Junction, Maryland. Relocation Services is responsible for paying the relocation expenses of BOP employees when they are reassigned to another duty station. Pratt was responsible for providing relocating BOP employees with a list of approved movers. After the employee selected the carrier, Pratt referred the move to agents of the carrier. Pratt later signed the government bills of lading, which became the agreement between BOP and the carrier/agent for the move.
According to her plea agreement, from 2007 to 2008, Pratt caused moves for employees who chose Mayflower as their carrier to be sent to a Mayflower agent – Klavuhn Moving & Storage. In January 2006 and December 2007, the sales representative for Klavuhn Moving & Storage provided two gift cards to Pratt for a salon and spa, in the amounts of $1,007 and $790, and Pratt accepted and used the gift cards, which were significantly more than the $50 in gifts that government employees are allowed to receive annually from individuals with whom they do business. Her receiving the gift cards also served to supplement her government salary and inappropriately compensated her for her work as an employee of the BOP.
Pratt also received free moving services from two moving companies in December 2007 and May 2010.
Pratt faces a maximum sentence of one year in prison and a $100,000 fine. U.S. District Judge Ellen L. Hollander scheduled sentencing for June 25, 2013 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Department of Justice Office of Inspector General for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Special Assistant U.S. Attorneys Sean Marlaire and Matthew W. Lunder, assigned from the Antitrust Division of the U.S. Department of Justice, who are prosecuting the case.
Buncombe Co. Man Sentenced to 36 Years in Prison on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – Lawrence Salvatore Hutson, 41, of Cantler, N.C. was sentenced on Wednesday, April 24, 2013, by U.S. District Judge Martin Reidinger to serve 432 months in federal prison for transporting child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hutson was also placed on a lifetime of supervised release and was ordered to register as a sex offender.
Joining U.S. Attorney Tompkins in making today’s announcement are John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Van Duncan, of the Buncombe County Sheriff’s Office.
In January 2012, Hutson pleaded guilty to one count of transportation of visual depictions of minors engaging in sexually explicit conduct. According to filed court documents and court proceedings, the conduct took place in August 2010. During the investigation, authorities seized a USB thumb drive, which belonged to Hutson, that contained over 4,000 images of child pornography, including many videos. Court records indicate that Hutson’s child pornography collection contained images of prepubescent children, including infants and toddlers. According to court records and yesterday’s sentencing hearing, Hutson also held two separate previous convictions in Pennsylvania for sexual contact offenses upon minors. Hutson’s sentence was enhanced because of the prior state convictions.
Hutson has been in local federal custody in the Western District of North Carolina since September 2011. Upon designation of a federal facility, he will be transferred into custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation was handled by the Buncombe County Sheriff’s Office assisted by the FBI and the Wheaton Police Department in Illinois. The case was prosecuted by Assistant United States Attorneys David Thorneloe and Don Gast of the U.S. Attorney’s Office in Asheville.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Birmingham Man Indicted for Multi-Million Dollar Tax SchemeRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham man in connection with a scheme to collect millions of dollars from the Internal Revenue Service on false tax returns, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.
The indictment filed in U.S. District Court charges DOUGLAS ERVIN DENT, 66, with filing 20 false income tax returns in his own name and on behalf of others between April 2008 and October 2009. Dent knew that he and the other taxpayers were not entitled to the $6.2 million in refunds he claimed, according to the indictment. Each false tax return contained a claim that money had been earned by the taxpayer and withheld by various financial institutions on behalf of the taxpayer during the tax year and that the taxpayer was entitled to refund of those withholdings from the IRS when, in truth, no such earnings and withholdings had occurred, the indictment states.
Among the 20 false returns, Dent filed four in his name and one in the name of his deceased mother. The requested refunds on these five returns totaled more than $2.6 million, according to the indictment.
“The false and outrageous tax refunds cited in this case are both a crime and an affront to the millions of hard-working Americans who pay their justly owed taxes each year,” Vance said. “Criminals who scheme to avoid paying taxes or to steal money from the U.S. Treasury will be prosecuted,” she said.
"Return preparers who concoct schemes to steal public money face federal prosecution and time in prison,” Hyman-Pillot said. “Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers."
If convicted, Dent could face a maximum sentence of five years in prison and a $250,000 fine on each of the 20 counts of making false claims against the government.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it will be the government’s responsibility to prove the defendant’s guilt beyond a reasonable doubt at trial.
Beaver Falls Man Sentenced to Prison for Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, Pa. - A resident of Beaver Falls, Pa., has been sentenced in federal court to 70 months imprisonment followed by five years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the sentence on Carlos Cleckley, 36.
According to information presented to the court, from on or about Dec. 4, 2009, and continuing until Sept. 29, 2011, in the Western District of Pennsylvania and elsewhere, Cleckley conspired with others to distribute and possess with intent to distribute five kilograms or more of cocaine. Additionally, on or about July 29, 2010, Cleckley distributed and possessed with intent to distribute 28 grams or more of cocaine base, in the form commonly known as crack.
Assistant United States Attorneys Katherine A. King and Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, the Pennsylvania Office of Attorney General, and the Beaver Falls Police Department for the investigation leading to the successful prosecution of Cleckley.
Anchorage Felon pleads guilty to gun chargeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that an Anchorage resident pled guilty yesterday in federal court to an indictment charging one count of felon in possession of firearms.
Alondo Mark Modeste, 29, entered his guilty plea before U.S. District Court Judge Timothy M. Burgess.
In connection with the guilty plea, Special Assistant U.S. Attorney Erin White Bradley, advised the court that Modeste possessed firearms in April 2012, and while fleeing from law enforcement,
Modeste jumped out of a hotel window at the Merrill Field Inn. As he went out the window, Modeste threw a Smith & Wesson .357 caliber revolver he possessed into a snow bank. Law enforcement also found a Taurus 45 caliber revolver underneath the driver’s seat of a Buick Sedan that Modeste had been driving prior to entering the room at the Merrill Field Inn. Modeste has a 2005 felony conviction for manslaughter arising from a case in the Superior Court for the State of Alaska, Third Judicial District. Modeste also has other criminal convictions on his record involving illegal controlled substances, guns and violence.Judge Burgess scheduled a sentencing hearing for Modeste on July 22, 2013. The law provides for a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history of the defendant.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
Wednesday 24 April 2013
United States Attorney Co-Sponsors State and Local Anti-Terrorism Training (SLATT) on Guam and the NMI (Amended)Read the Press Release
Alicia A. G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced today that after a year of planning, the State and Local AntiTerrorism Training (SLATT) Program has finally come to the Marianas. With the assistance of the U.S. Attorney's Office for the Districts of Guam and the Northern Mariana Islands, the Guam Homeland Security/Office of Civil Defense, the Commonwealth of the Northern Mariana Islands Homeland Security and Emergency Management, and the U.S. Department of Justice's Bureau of Justice Assistance (BJA) Program, two instructors from the Institute for Intergovernmental Research (IIR) were on Guam April23 to 24, 2013, and will be in the NMI on April25 to 26,2013, to conduct the SLATT workshops to law enforcement, hotel and private security, military anti-terrorism personnel and other community leaders. Over 160 individuals attended the training in Guam and about 150 have registered to attend in Saipan.
U.S. Attorney General Eric Holder presented a special message addressing the SLATT participants and thanking them for their efforts to safeguard our communities in Guam and the NMI, and our nation.
"April is National Crime Victims' Rights Week. We observe a moment of silence for the victims of the Boston Marathon bombing and for all victims of terrorism, and their families; and for our Fallen Soldiers who through their commitment and sacrifice continue to protect the freedoms exercised by all Americans," stated U.S. Attorney Limtiaco.
U.S. Attorney Limtiaco further stated, "As part of our Secure Communities partnership with the U.S. Department of Homeland Security, the U.S. Attorney's Office has been collaborating with the U.S. Department of Justice Bureau of Justice Assistance Program and Institute for Intergovernmental Research, Guam Homeland Security/Office of Civil Defense, and Commonwealth ofthe Northern Mariana Islands (CNMI) Homeland Security and Emergency Management, to bring the State and Local Anti-Terrorism Training (SLATT) program to Guam and the CNMI. At this training, community partners have the opportunity to discuss domestic terrorism, international terrorism, indicators of terrorism, and the Suspicious Activity Community Program, which promotes law enforcement safety and de-confliction, and provides assistance to our federal, military and local law enforcement partners and the Marianas Regional
Fusion Center -- recently designated as the 781 h fusion center in the nation, in preventing, reducing and combating some of the most concerning threats to our national security.""Since 9/11, there have been extraordinary and unprecedented efforts taken to keep America safe - including those by our own sons and daughters of the Pacific who serve in the military, as law enforcement, in the intelligence community, and as first responders. We also know that there is more work that must be done. Meeting these public safety and national security challenges of the 21st Century will require us to identify new enforcement strategies, to forge new partnerships, and to provide more support for our law enforcement communities. Our people in Guam and the Northern Mariana Islands, and our Pacific island neighbors are resilient. Terrorists aim to instill fear in our people, and to overturn our way of life. Just as earlier generations of Americans overcame great tests, so must we draw on the resilience of the American people to overcome the challenges of our time. Our communities are capable of
withstanding whatever dangers may come. Today, threats from terrorists and extremists continue against our nation and the Asia-Pacific region. Our work against terrorism cannot be done without the continued involvement, leadership, vigilance and partnership of our community stakeholders," said U.S. Attorney Limtiaco.U.S. Attorney Limtiaco gave special thanks to the Guam Homeland Security/Office of Civil Defense and the CNMI Homeland Security and Emergency Management for their assistance in planning the training and for securing the venues for this important training.
Union Leader, Wayne Boudoin, Charged with Stealing Union FundsRead the Press Release
WAYNE BOUDOIN, age 60, a resident of Edgard, Louisiana, was charged yesterday in a one-count Bill of Information for embezzling assets of a local labor union, announced U. S. Attorney Dana J. Boente.
According to court records, BOUDOIN was the president of the Local 709 Security, Police, and Fire Professionals of America International Union from September 2003 through January 2011. The Local 709 maintained a checking account with a local bank to hold the membership dues that were collected from the union members. As the union’s president, BOUDOIN was able to access the funds in the union account through checks and a debit card. According to the bill of information, BOUDOIN embezzled $16,367.96 from the union account by using the debit card to make unauthorized purchases at various retail establishments and to withdraw cash from ATM machines.
If convicted, BOUDOIN faces a maximum term of five years imprisonment, a fine of $10,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the bill of information is merely a charge, and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Department of Labor. The case is being prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
(Download Bill of Information )
U.S. Attorneys' Offices in Iowa Observe National Crime Victims' Rights WeekRead the Press Release
U.S. Attorneys for the Northern and Southern Districts of Iowa, Sean R. Berry and Nicholas A. Klinefeldt, announced that two individuals will be honored for outstanding service to crime victims in an awards ceremony. The awards will be presented during a National Crime Victims’ Rights Week Celebration which will be held on April 25, 2012 at the Jessie Parker Building, 510 E. 12th Street, Des Moines, Iowa, in the Iowa Department of Corrections Office’s Grant Room from 10:00 a.m. to 12:00 p.m. This year’s observance of National Crime Victims’ Rights Week runs from April 21 to April 27. This year’s theme, “New Challenges. New Solutions,” celebrates the spirit that will advance the progress these heroes achieved. 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 Continuous Service Award
United States Postal Inspector Tina Nobis will receive the Continuous Service Award, which recognizes a nominee who has provided help to victims for many years. Inspector Nobis has long been noted for her compassionate effort on behalf of hundreds of fraud victims.
The Single Act Award
Iowa Division of Criminal Investigation (DCI) Special Agent Mike Roehrkasse will receive the Single Act Award, which recognizes a nominee who has provided exceptional assistance to crime victims in a specific case. Special Agent Roehrkasse was the lead agent in a case involving two missing Iowa children. Special Agent Roehrkasse, while balancing the investigation of the missing children, provided constant support to the immediate families of the children. He frequently met with the families, at times on a daily basis, to notify them of the progress of the investigation. Special Agent Roehrkasse demonstrated unwavering compassion as he supported the families throughout the investigation.
The Law Enforcement Victim Service Awards are the highest federal honors in the State of Iowa for victim services provided by law enforcement. The awards are presented to law enforcement officers who have gone above and beyond the call of duty through their dedication and efforts to show compassion and caring for victims of crime. The awards are determined by the Federal Law Enforcement Victim Committee of the U.S. Attorneys’ Offices for the Northern and Southern Districts of Iowa. The committee consists of representatives from federal law enforcement agencies and federal and state victim service agencies.
“The U.S. Attorney’s Office is deeply committed to assisting victims of federal crimes, ensuring they are afforded their rights under the Crime Victims’ Rights Act, protecting them from further harm, and helping them reshape their futures,” said U.S. Attorney Nicholas Klinefeldt.
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 U.S. Attorneys’ Offices in the Northern and Southern District of Iowa have a dedicated Victim Witness staff that serve federal crime victims across state’s 99 counties. The Victim Witness staff sends notices to victims of significant case events through the Department of Justice’s (DOJ) Victim Notification System (VNS). Such notices enable victims to participate in court proceedings and make their voices heard. According to Department of Justice 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 U.S. Attorneys’ Offices Victim Witness staff 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.
U.S. Attorney Sean Berry said, “This week is a time to raise awareness about the rights and needs of crime victims, the challenges victims face in the recovery process, and the positive impact of those who provide services and support to victims.”
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/. Media wishing to attend the award presentation should contact Shari Konarske, at 319-361-0908 to arrange access to the event.
Two St. Paul Men Indicted for Possessing with Intent to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Recently in federal court, two St. Paul men were indicted for possessing with intent to distribute more than 500 grams of methamphetamine. On April 22, 2013, Antonio Ceron-Santos, age 40, and Avimael Armenta-Hernandez, age 27, were charged with one count of possession with intent to distribute methamphetamine.
The indictment alleges that on March 28, 2013, the defendants possessed the methamphetamine. According to a law enforcement affidavit filed in the case, the defendants were arrested that day, following an arranged controlled purchase of approximately one pound of methamphetamine at a parking lot in Maplewood. During the execution of a state search warrant at the defendants’ residence, police allegedly seized an additional five pounds of methamphetamine as well as drug ledgers and a scale typically used to weigh illegal narcotics.
If convicted, the defendants face a potential maximum penalty of life in federal prison. Because the federal criminal justice system does not have parole, offenders serve virtually their entire prison sentences behind bars. Any sentences imposed in this case would be determined by a federal district court judge.This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the St. Paul Police Department, the Minneapolis-St. Paul Airport Police Department, the Minnesota State Patrol, and the county sheriff’s offices for Dakota, Ramsey, Washington and Wright counties. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Two Convicted of Counterfeiting Thousands of Luxury GoodsRead the Press Release
HOUSTON – Two men from China, found with more than 14,000 fake luxury items, have been convicted of counterfeiting, United States Attorney Kenneth Magidson announced today. Yintang Cao, 48, and Hong Zhang, 46, entered a guilty plea to the charge just moments ago before U.S. District Judge Lee Rosenthal.
The charges arose after Cao and Zhang were discovered with more than 14,000 counterfeit items bearing the names of Coach, Dolce & Gabbana, Louis Vuitton, Prada and Versace, manufactures of luxury fashion goods.
Cao and Zhang were charged with separate, but related, criminal informations on March 15, 2013. Today, they admitted they knowingly used counterfeit marks on and in connection with such goods, identical to and substantially indistinguishable from genuine marks, the use of which was likely to cause confusion, mistake and to deceive.
Judge Rosenthal has set sentencing for Aug. 9, 2013, at which time both men face up to 10 years in federal prison as well as a $2 million fine. They were permitted to remain on bond pending their sentencing hearing.The felony Information and subsequent convictions came after an intensive investigation conducted by Homeland Security Investigations.
Three from Oregon Indicted for Conspiracy and Possession with Intent to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that two men and one woman from Eugene, Oregon have been indicted by a federal grand jury for two counts of Conspiracy and Possession with Intent to Distribute Marijuana.
Justin Jones, age 23; Glenn Shea, age 20; and Jesse Parker, age 23, were indicted by a federal grand jury on March 13, 2013. They appeared before U.S. Magistrate Judge Mark A. Moreno on April 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of custody, a $250,000 fine, or both; 2 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
The charges are merely an accusation and Jones, Shea, and Parker are presumed innocent unless and until they are proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Jay Miller.
Jones, Shea, and Parker were released on bond pending trial. A trial date has not been set.
Three from Oregon Indicted for Conspiracy and Possession with Intent to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that two men and one woman from Eugene, Oregon have been indicted by a federal grand jury for two counts of Conspiracy and Possession with Intent to Distribute Marijuana.
Justin Jones, age 23; Glenn Shea, age 20; and Jesse Parker, age 23, were indicted by a federal grand jury on March 13, 2013. They appeared before U.S. Magistrate Judge Mark A. Moreno on April 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of custody, a $250,000 fine, or both; 2 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
The charges are merely an accusation and Jones, Shea, and Parker are presumed innocent unless and until they are proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Jay Miller.
Jones, Shea, and Parker were released on bond pending trial. A trial date has not been set.
Three Area Men Indicted on Federal Weapons and Drug Charges -- Including the Assault of A Federal OfficerRead the Press Release
St. Louis, MO - Three St. Louis area men were indicted on multiple federal gun and drug charges involving the April 18, 2013, assault of a federal officer.
FREDERICK CRAYTON, JAMES EDWARD JONES and DWAYNE CRAYTON, all of St. Louis City, were indicted by a federal grand jury late this afternoon.
If convicted, these charges carry a penalty range of 5 to 25 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.Roy Alexander Briggs Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 23, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, ROY ALEXANDER BRIGGS, a 35-year-old resident of Helena, pled guilty to possession of child pornography. Sentencing has been set for July 30, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Zeno B. Baucus, the government stated it would have proved at trial the following:
In July 2012, the United States Marshal Service (USMS) received information that BRIGGS, who had previously been convicted in 2005 for possession of child pornography in the Western District of Washington, had absconded and was currently residing in Helena.
On July 17, 2012, the USMS arrested BRIGGS for violating the terms of his supervision which included having direct contact with a computer device, possession of visual images of minors engaged in sexually explicit conduct, and changing his place of residence and employment without notifying his probation officer. Following his arrest, BRIGGS admitted that a computer found at the residence was his and that it contained visual depictions of children engaged in sexually explicit activity.
On July 18, 2012, members of the Internet Crimes Against Children Task Force (ICAC) were alerted that BRIGGS' computer may contain visual depictions of children engaged in sexually explicit activity.
The computer was forensically analyzed and found to contain multiple image files which depicted children engaged in sexually explicit conduct.
BRIGGS faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the United States Marshals Service and the Montana Internet Crimes Against Children (ICAC) Task Force.
Roger Tristan Johnson Sentenced to 235 Months in Prison for Participating in Conspiracy to Distribute OxycodoneRead the Press Release
GREENEVILLE, Tenn.- On Apr. 23, 2013, Roger Tristan Johnson, 34, of Johnson City, Tenn., was sentenced to serve 235 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge.
Johnson pleaded guilty to an August 2010 federal indictment charging him with conspiracy to distribute and possess with the intent to distribute a quantity of oxycodone pills. Also charged in the conspiracy were Diane Elizabeth Campbell, 27 of Elizabethton, Tenn.; Tommy Thomas Nicholas, 45 of Gray, Tenn.; Joshua Paul Arnett, 26 of Gray, Tenn.; and Austin Tanner Wood, 20 of Sullivan County, Tenn. Arnett was charged with distribution of a quantity of oxycodone pills. Campbell and Nicholas were charged with interstate travel with intent to promote, manage, establish, carry on and facilitate the promotion, management, establishment, or carrying on, of a business enterprise involving narcotics or controlled substances. All have been convicted and are awaiting sentencing.
Johnson admitted that from January 2010 to August 2012, he knowingly, intentionally, and without authority, conspired with at least one other person to distribute and possess with the intent to distribute oxycodone pills, a Schedule II controlled substance in the Eastern District of Tennessee and elsewhere. An organization headed by Johnson employed a number of couriers to transport oxycodone pills from a source in Miami, Fla., to the Eastern District of Tennessee. At the height of this operation, Johnson’s couriers were making multiple trips a week to Florida, purchasing several thousand pills on each trip. The pills were then delivered to Johnson who further distributed the pills to street level dealers. At the time of his arrest Johnson, who had previously been convicted of a felony, was in possession of a loaded .45 caliber handgun.
U.S. Attorney Bill Killian stated, “I want to commend all of those agencies and law enforcement officials who worked together to bring these individuals to justice. It took a joint effort by all agencies involved to achieve this result. "
The indictment and subsequent conviction of Johnson was the result of an investigation conducted by the Sullivan County Sheriff’s Department, Washington County Sheriff’s Department, Hampton County, South Carolina Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christian Lampe represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Rochester Man Pleads Guilty to Drug ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Cyle Krepps, a/k/a Black, a/k/a Trick, a/k/a Durell, a/k/a Dred, 25, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute and to distribute 280 grams or more of cocaine base, and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, a fine of $10,000,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that between 2009 and 2011, Krepps processed cocaine into cocaine base which he then sold in various quantities and at different locations in the City of Rochester, including a house at 95 Friederich Park. On September 14, 2011, law enforcement officers arrested Krepps driving a rental vehicle after surveilling him leave 95 Friederich Park. The defendant had keys to the residence and over $2,200 in U.S. currency when he was arrested.Officers then executed a search warrant at 95 Friederich Park, which was barricaded and monitored by an alarm system. Inside, officers seized a stolen, pistol-grip AR-15 style rifle chamber-loaded with seven rounds of live ammunition, a bag containing approximately 2 grams of cocaine base, a cell phone, and drug trafficking paraphernalia, which included scales for weighing drugs, empty bags for packaging drugs for sale, and dilutant to process drugs.
The conviction is the culmination of an investigation by members of the Violent Enforcement Suppression Team (“VEST”) of the Rochester Police Department, under the direction of Chief James Sheppard, the Greater Rochester Area Narcotics Enforcement team (“GRANET”), under the direction of Lieutenant Gerald Smith, and Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives under the direction of Scott Heagney.
Sentencing is scheduled for August 8 at 2:00 p.m. before Judge Geraci.
Registered Sex Offender Charged with Distributing Images of Child Sexual Abuse from New Jersey Law Office ComputerRead the Press Release
NEWARK, N.J. – A registered sex offender employed at a law office in Paterson, N.J., will appear in court today following his arrest at the office late yesterday after law enforcement officers discovered alleged child pornography on his work computer, U.S. Attorney Paul J. Fishman announced.
Kevin Rease, 32, of Hackettstown, N.J., is charged by Complaint with one count of distributing images of child sex abuse over the Internet. He is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the criminal Complaint:
On March 12, 2013, an undercover FBI agent downloaded images depicting child sexual abuse from an individual using an assumed name on a public Internet-based peer-to-peer file sharing network. The investigation revealed that the individual was logged on to the network using an Internet Protocol, or “IP,” address belonging to the law office where he worked.
The FBI executed a search warrant yesterday at the Paterson law office, seizing digital images depicting child sexual abuse, including material involving prepubescent minors. Rease’s work computer was logged onto the peer-to-peer network at the time, under the same assumed name which had offered illegal images for download on March 12.
As a previously convicted sex offender, Rease faces a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine if convicted of the offense.U.S. Attorney Fishman credited special agents of the FBI, Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: William Ware Esq., Chester, N.J.
Rease Complaint
Prescription Drug Take-Back to Be Held Saturday, April 27, 2013Read the Press Release
Montgomery, Alabama - Prescription Drug Take-Back Day will be held on Saturday, April 27, 2013, at locations throughout the State, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and Clay Morris, Drug Enforcement Administration Assistant Special Agent in Charge for Alabama.
Alabamians will have the opportunity to turn in their old prescription drugs at drop-off sites throughout the State on Saturday, April 27. A list of collection sites is available online at the Drug Enforcement Administration (DEA) website, deadiversion.usdoj.gov, or citizens may inquire at their local police departments and sheriff’s offices. The DEA may also be contacted by calling the toll free number at 1-800-882-9539.
Prescription drug abuse has become an enormous problem in our society. According to the Partnership for a Drug Free America:
- 1 in 6 teenagers have used a prescription drug in order to get high or change their mood.
- Only 6 percent of parents of teens say they have a child who abused medicine. However, 10 percent of teens admit to misusing/abusing medicines in the past 6 months.
- Two thirds of teen who abuse pain relievers say they get them from family members and friends.
- Only 2 percent of parents of teens admit giving their child medication not prescribed for them. Yet 22 percent of teens say they were given a prescription medicine not meant for them by their parents.
- More Americans die from drug overdoses than in car crashes.
- One person dies every 19 minutes from a drug overdose in the Unites States.
- Opioid pain relievers are responsible for more overdose deaths than cocaine and heroin combined.
Clearly, this is an enormous problem for our youth as well our adult citizens. Keeping prescription drugs after they are no longer needed may entice a teen to try the drug. However, if you safely dispose of your medicine, you will keep it away from teens or others that may abuse the drugs. The Alabama Department of Public Health has cited prescription drug abuse as an emerging public health issue and the nation’s fastest-growing drug problem.
In addition to concerns of potential abuse or overdose, it is also important environmentally that medicines be disposed of in a proper manner rather than simply being thrown into garbage, flushed away, or poured down drains, as they could contaminate water supplies and cause an environmental hazard. Also, expired drugs may have lost their effectiveness and therefore no longer be a safe and adequate treatment for the conditions for which they were prescribed.
“This drug Take Back Day allows us to rid our medicine cabinets of these potentially lethal drugs,” stated U.S. Attorney Beck. “We ask all of our citizens to use this day to help make their homes a safer place for their family and friends.”
“Take Back is an important step in ridding our country of lethal, illegal drugs,” stated DEA Assistant Special Agent in Charge Clay Morris. “When the results of the five previous Take-Back Days were combined, the DEA, and its state, local, and tribal law-enforcement and community partners have removed 1,483,580 pounds (742.5 tons) of medication from circulation. This speaks volumes about the need to develop a convenient way to rid homes of unwanted or expired prescription drugs. Until such laws are passed, law enforcement is the only entity that citizens can use to legally and safely dispose of these drugs.”
Each collection site will be supervised by a law enforcement officer because the program involves controlled substances.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Pittston Man Sentenced for Cocaine DistributionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge Edwin M. Kosik sentenced Richard A. Burgio, age 50, of Pittston, Pennsylvania, Tuesday to 18 months’ imprisonment for distributing cocaine on numerous occasions between 2010 and April 18, 2012, in Luzerne County.
United States Attorney Peter J. Smith noted that in additional to the 18-month term of imprisonment, Judge Kosik also ordered that Burgio be placed on supervised release for a period of two years following the service of his sentence.The case was investigated by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case.