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3 June 2013
Armed Robbers Receive Federal SentenceRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge W. Earl Britt sentenced MELVIN KENNETH CABRAL, 20ofJacksonville, North Carolina, and LYNDON DUNHAM, 24, of Green Cove Springs, Florida, for their respective roles in an armed robbery. CABRAL was sentencedto 141 months imprisonment followed by 5 years supervised release. DUNHAM was sentenced to 125 months imprisonment followed by 5 years supervised release. A third defendant, Dallas Holmes, was sentenced on November 1, 2011 for his role in the robbery.
A Federal Grand Jury returned a Superseding Criminal Indictment on October 24, 2012. On January 14, 2013, CABRAL and DUNHAM each pled guilty to interference with commerce by robbery, in violation of Title 18, United States Code, Section 1951, and to using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).
According to the investigation, on January 9, 2011, CABRAL, DUNHAM, and Holmes robbed the Checkers Drive-In restaurant in Jacksonville, North Carolina as the employees were in the process of closing for the night. DUNHAM acted as the getaway driver and dropped off CABRAL and Holmes near the restaurant. CABRAL and Holmes, wearing masks and armed with a shotgun, approached an employee at an exterior bathroom door behind the restaurant. The employee was forced into the bathroom at gunpoint, where CABRAL and Holmes tied his hands together before escorting him to a side door to gain entry to the restaurant. Holmes stayed back as CABRAL followed the employee into the restaurant. Inside, CABRAL brandished the shotgun and directed two employees to a corner of the restaurant. CABRAL then ordered the assistant manager to open the safe, and threatened to shoot another employee if the assistant manager refused. The assistant manager opened the safe and handed cash to CABRAL who, along with Holmes, fled the area on foot.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Jacksonville Police Department. Assistant United States Attorney Toby Lathan prosecuted the case.
2 June 2013
Press Advisory - Joint News Conference - New Telephone Lottery Scam Epidemic in North DakotaRead the Press Release
May 24, 2013BISMARCK, ND – Attorney General Wayne Stenehjem and United States Attorney Tim Purdon will hold a joint news conference to discuss state and federal efforts to combat a sudden increase in telephone lottery scams. This spring has seen a marked increase in reports of North Dakotans being victimized by these scams, which often target the elderly or other vulnerable members of our community.
When: North Dakota Attorney General’s Office 600 East Boulevard Ave, 1st floor Bismarck, ND Who: North Dakota Attorney General Wayne Stenehjem North Dakota United States Attorney Timothy Purdon F.B.I. Special Agent in Charge Chris Warrener United States Postal Inspection Team Leader Kate Nichols North Dakota Consumer Protection Director Parrell Grossman U.S.A.O. Criminal Chief Clare Hochhalter
Attorney General Stenehjem and United States Attorney Purdon will be joined by representatives of federal and state enforcement agencies.
1 June 2013
Winchester Woman Convicted of Providing over 15 Firearms to FelonRead the Press Release
ALEXANDRIA, Va. – Brita Lanette Jackson, 51, of Winchester, Va., was convicted today following a June 4, 2013, bench trial on charges of making a false statement in connection with the purchase of a firearm and conspiracy to aid and abet a convicted felon in the possession of firearms.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division made the announcement after the verdict was pronounced by United States District Judge James C. Cacheris.
Jackson faces a maximum penalty of ten years of incarceration when she is sentenced on September 20, 2013.
Jackson was indicted on March 27, 2013, by a federal grand jury on charges of making a false statement in connection with the purchase of a firearm and conspiracy to aid and abet a convicted felon in the possession of firearms. According to court records and evidence at trial, Jackson was observed by ATF agents on May 24, 2012, as she purchased an AK-47 style assault pistol from a firearms dealer in Manassas, Virginia. Jackson had indicated on official paperwork that the firearm was for her, but she in fact intended to transfer the weapon to a convicted felon that accompanied her to the store. Federal agents discovered an additional firearm, ammunition, and evidence of several firearms purchases during a search of Jackson’s residence in Winchester, Virginia. The firearms included high-capacity handguns and a Cobray Mac-11 pistol. Jackson admitted that she purchased between 15 to 20 firearms on behalf of the same convicted felon and that she did not know how that felon was utilizing the firearms.
This case was investigated by ATF’s Washington Field Division. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Virginia Beach Resident Sentenced for Possession of Child PornographyRead the Press Release
NORFOLK, Va. – Timothy Thomas Robinson, 33, of Virginia Beach, Va., was sentenced today to 120 months in prison, followed by lifetime supervised release, for possession of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia made the announcement after sentencing by U.S. District Judge Mark S. Davis.
Robinson pleaded guilty on March 21, 2013. According to court documents, Robinson was originally convicted for child pornography violations by the City of Norfolk in 2005. Robinson again was convicted for similar violations in Norfolk in 2007. In January 2012, the Virginia Beach Police Department arrested Robinson for subsequent probation violations, and he was found to be in possession of numerous images of child pornography which he downloaded with his cellular phone from the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case was investigated by the Virginia Beach Police Department. Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Texas Man Enters Plea Agreement for Threatening to Bomb Islamic Center in Murfreesboro, TennesseeRead the Press Release
Javier Alan Correa, 25, of Corpus Christi, Texas pleaded guilty in U.S. District Court in Nashville today to obstructing persons in the free exercise of religious beliefs, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
U.S. District Judge Aleta A. Trauger sentenced Correa to five years probation and ordered that the first eight months be spent in home detention. Correa must also submit to drug testing and substance abuse monitoring, and enroll in an adult education program.
According to the plea agreement, Correa admitted that on September 5, 2011, he called on a cellular phone from Corpus Christi, Texas, to the Islamic Center of Murfreesboro in Murfreesboro, Tennessee, and left a threatening, explicative-ridden voice message saying, amongst other things, “On September 11, 2011, there’s going to be a bomb in the building.“
Correa told the Court that on the night of September 5, 2011, he had been home alone and drinking beer and that while watching a program on CNN entitled “Unwelcome: The Muslims Next Door,” he became enraged and placed the threatening call to the mosque in Murfreesboro.
This case was investigated by the FBI. The government is represented by Assistant United States Attorney Blanche B. Cook and Civil Rights Division Trial Attorney Adriana Vieco.
Owner of PCI Construction Company Sentenced to 24 Months for Bank Fraud and Obstruction of JusticeRead the Press Release
ALEXANDRIA, Va. – Andy Persaud, 40, of Ashburn, Va., was sentenced today to 24 months in prison, followed by three years of supervised release, for defrauding the Bank of Georgetown by obtaining a $1,000,000 line of credit on the basis of false documentation, and for obstructing justice by destroying and falsifying evidence in response to an investigative subpoena issued by the General Services Administration (GSA) Office of Inspector General. Persaud was also ordered to pay over $720,000.00 in restitution.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of FBI’s Washington Field Office, and Brian D. Miller, General Services Administration (GSA) Inspector General, made the announcement after sentencing by United States District Judge Claude M. Hilton
Persaud pleaded guilty on March 14, 2013. According to court documents, Persaud, who founded and owned PCI construction company, submitted fraudulent documents on multiple occasions to the Bank of Georgetown in order to obtain increased lines of credit and loans on that line of credit. Persaud went so far as to completely fabricate unpaid invoices related to PCI government contracts as collateral for the loans. In certain instances, moreover, PCI submitted government contract invoices to the Bank of Georgetown before PCI was actually awarded the contract. These false and fraudulent invoices, submitted at Persaud’s direction, caused the Bank of Georgetown to suffer more than $700,000 in actual losses.
In addition to his bank fraud, Persaud separately obstructed justice in connection with a GSA investigation into whether Persaud and PCI had violated the Federal False Claims Act in its government contracting practices. In response to an administrative subpoena, Persaud once again provided altered and fabricated documents—this time in attempt mislead government investigators. For example, Persaud instructed his employees to submit falsified job cost estimates and subcontractor proposals, and he personally added handwritten notes to some of the documents in an attempt to hide his unlawful government contracting practices that were the subject of the investigation. Despite knowing that the documents he submitted to the GSA were fabricated, Persaud falsely certified to the GSA that he and PCI had complied with the subpoena.
This case was investigated by GSA Office of Inspector General and the FBI’s Washington Field Office. Assistant United States Attorneys Charles Connolly and Chad I. Golder prosecuted the case on behalf of the United States.Joint Federal-State-Local Law Enforcement Action: Operation “Spring Clean” - 17 Search Warrants and 6 Arrests Related to Crimes Against ChildrenRead the Press Release
RICHMOND, Va. – From February 19, 2013, to April 22, 2103, federal, state, and local law enforcement in Richmond, Va. and surrounding counties, executed 17 search warrants and made six arrests in an operation known as “Spring Clean.”
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the Federal Bureau of Investigation, Richmond Division; Timothy J. Heaphy, United States Attorney for the Western District of Virginia; Chief Ray J. Tarasovic, City of Richmond Police Department; Colonel W. Steven Flaherty, Virginia State Police; Colonel Thierry Dupuis, Chesterfield County Police Department; Colonel David R. Hines, Hanover County Sheriff’s Office; Chief Douglas A. Middleton, Henrico County Police Division; Chief Timothy J. Longo, Charlottesville Police Department; Special Agent in Charge John P. Torres of the Department of Homeland Security, Homeland Security Investigations; Inspector in Charge Keith A. Fixel, U.S. Postal Inspection Service, Charlotte Division; and Attorney General Kenneth T. Cuccinelli, Virginia Attorney General’s Office, made the announcement after the multi-month operation was executed. Operation “Spring Clean” focused on the interdiction of crimes against children; specifically child pornography and child enticement type offenses.
Operation Spring Clean arose out of cooperative effort among multiple law enforcement agencies in the greater Richmond metropolitan area. Investigations into the sexual exploitation of children committed via the internet and facilitated through technology have increased each year. As a result of this increase, two taskforces have formed over the years, the FBI Child Exploitation Taskforce (CETF) and the Internet Crimes Against Children (ICAC) Taskforce. It is through these two taskforces that federal, state, and local law enforcement agencies have formed partnerships and collaborated on these predatory internet investigations.
While conducting an investigation into the distribution of child pornography initiated by the City of Richmond Police Department, multiple targets were identified, within the greater Richmond metropolitan area, as distributing a large quantity of prepubescent child pornography depicting children ranging from infancy to 11 years of age. The sheer number of targets was concerning, as was the age of the children in the material they were distributing. After these incredibly troubling revelations, it was decided that the best course of action was to combine the efforts of the ICAC Taskforce and the FBI CETF in order to target these offenders, as well as others located across the Commonwealth of Virginia. Spring Clean became the name of the operation as law enforcement “cleaned,” or apprehended, a large number of alleged internet predators that would have normally taken months to accomplish, but through this coordination, was able to be done in a matter of days.
The following law enforcement agencies participated in the operation:
- Charlottesville Police Department
- Chesterfield County Police Department
- Federal Bureau of Investigation, Richmond Division
- Hanover County Sheriff’s Office
- Henrico County Police Division
- Department of Homeland Security, Homeland Security Investigations, Richmond Division
- City of Richmond Police Department
- U.S. Postal Inspection Service, Charlotte Division
- Virginia State Police
- The U.S. Attorney’s Office for the Eastern District of Virginia
- The U.S. Attorney’s Office for the Western District of Virginia
- The Virginia Attorney General’s Office
Search warrants were executed in the following localities: Bath, Chesterfield, Clifton Forge, Hanover, Henrico, Prince George, Richmond, and Weyers Cave.
Those arrested during the operation include:- Brian McMahon Connell, 47, of Chesterfield, Virginia. Subsequent to his arrest, Connell was indicted on three federal charges of distribution of child pornography and is scheduled to stand trial in United States District Court in Richmond, Virginia on July 8, 2013.
- Robert Warren Louis Kropp, 26, of Colonial Heights, Virginia. Subsequent to his arrest, Kropp pleaded guilty on May 7, 2013, to the federal charge of coercion and enticement of a minor. He will be sentenced in United States District Court in Richmond, Virginia on August, 2, 2013.
- Guy Matthew Lotz, 28, of Weyers Cave, Virginia. Subsequent to his arrest, Lotz was indicted on a charge of distribution of child pornography in the Western District of Virginia. He is scheduled to stand trial on this federal charge on August 12, 2013.
- Harry Lee Palmquist, Jr., 45, of Chesterfield, Virginia. Subsequent to his arrest, Palmquist was indicted on three federal charges of distribution of child pornography. He is scheduled to stand trial in United States District Court in Richmond, Virginia on July 16, 2013.
- William Michael Stravitz, 48, of Richmond, Virginia. Subsequent to his arrest, Stravitz pleaded guilty to three state felony distribution of child pornography charges. He will be sentenced in Richmond Circuit Court.
- Brent Thomas Wilson, 31, of Midlothian, Virginia. Subsequent to his arrest, Wilson was charged with three counts of distribution of child pornography and three counts of possession of child pornography by the Chesterfield Commonwealth’s Attorney’s Office. He is scheduled to appear in Chesterfield Juvenile and Domestic Relations Court in September 2013.
Criminal complaints, arrests, and indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Illinois Man Pleads Guilty to More Than $100,000 in Rosetta Stone Software PiracyRead the Press Release
ALEXANDRIA, Va. – Christopher M. Adkins, 36, of Aurora, Ill., pleaded guilty today to felony criminal copyright infringement, in connection with his sale of counterfeit copies of Rosetta Stone language-learning software.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Acting Assistant Attorney General Mythili Raman for the Criminal Division of the U.S. Department of Justice, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Gerald Bruce Lee.
Adkins’s sentencing has been scheduled for September 13, 2013, when he will face a maximum sentence of five years in prison and a $250,000 fine.
According to court documents, over more than three years, Adkins sold more than $100,000 in copyright-infringing computer software. He sold the software through the Internet website Learningpartners.mybisi.com operated from his home in Aurora.Adkins admitted that he downloaded pirated versions of Rosetta Stone language-learning products, including Spanish, Russian, Hebrew, Italian, German, and Korean, and then would copy the programs onto compact discs; he would then sell the discs to online customers for prices more than 50 percent of the manufacturer’s suggested retail price for legitimate product. Mr. Adkins admitted he made at least $100,000 as part of his scheme.
The case was investigated by Federal Bureau of Investigation’s Washington Field Office.
Senior Counsel Thomas Dougherty of the Computer Crime & Intellectual Property Section of the Criminal Division of the U.S. Department of Justice and Assistant United States Attorney Jay Prabhu prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Four Detained, Six Firearms Seized in Alleged Drug Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Four men have been arrested on federal drug charges and ordered detained, and six firearms including a suspected automatic weapon were seized by federal, state and local law enforcement agents and officers in connection with a fifteen-month multi-agency investigation initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into the alleged trafficking of cocaine, heroin, Ecstasy and a synthetic drug termed “Molly.” Law enforcement also seized additional amounts of drugs and cash, and discovered an alleged marijuana grow in the home of an individual with a medical marijuana caregiver card authorized by the State of Rhode Island.
According to an affidavit in support of criminal complaints and search warrants filed with the U.S. District Court, the investigation initiated by ATF and investigated jointly with DEA, and assisted by agents and officers from the FBI, Homeland Security Investigations (HSI), United States Marshals Service, Rhode Island State Police and Cranston, Pawtucket, Providence, and Warwick Police Departments determined that the conspiracy was allegedly responsible for a significant quantity of drugs allegedly being trafficked to other drug dealers and to drug users. One of the defendants arrested is an alleged member of a street gang.
The investigation and arrests were announced by United States Attorney Peter F. Neronha; Eugenio A. Marquez, Acting Special Agent in Charge of the Boston Field Office of ATF; John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division; Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office; Bruce M. Foucart, Special Agent in Charge of HSI in New England; United States Marshal Jamie A. Hainsworth; Colonel Steven G, O’Donnell, Superintendent of the Rhode Island State Police; Cranston Police Chief Colonel Marco Palombo, Jr; Pawtucket Police Chief Paul King; Providence Police Chief Colonel Hugh T. Clements, Jr.; and Warwick Police Chief Colonel Stephen M. McCartney.
Arrested and ordered detained on Friday by U.S. District Court Magistrate Judges Patricia A. Sullivan and Lincoln D. Almond on charges of conspiracy to distribute controlled substances; distribution of controlled substances; and use of a telephone to commit drug offenses were:
- Salee Yang, 29, of Pawtucket, the primary target of investigation. During the investigation, an undercover ATF Agent allegedly purchased a total of 137.1 grams of heroin, 235 grams of cocaine powder, 392.1 grams of crack cocaine, 471.7 grams and 112 pills consisting of a synthetic powdered drug termed “Molly,” and 100 Ecstasy pills directly from Yang for a total of $61,025. A handgun was seized from Yang. Yang’s Pawtucket residence was among the locations searched by law enforcement.
- Eric Negron, 48, of Pawtucket, according to information presented to the court, a supplier of heroin, cocaine and crack cocaine to Yang. Negron’s residence and a barber shop in Providence where he is employed were among the locations searched by law enforcement.
- Peter Lietar, 37, of Pawtucket allegedly supplied Ecstasy and a synthetic drug termed “Molly” to Yang. During a search of Lietar’s residence, law enforcement discovered an alleged marijuana grow which was in the process of being harvested. According to information presented to the court, Lietar, who had previously been convicted of armed robbery in Massachusetts, held an expired Rhode Island medical marijuana card and valid Rhode Island medical marijuana caregiver card. A handgun and a rifle were seized from Lietar.
- Stanz Hun, 25, of Cranston, who, according to information presented to the court, was a customer of Yang and who allegedly operated his own drug trafficking business. It is alleged that Yang is a member of the 4/5th Mafia and PSB street gang. Law enforcement agents seized from Yang a suspected automatic weapon, two handguns, $600 in cash, and a small amount of marijuana. Hun’s residence was among the locations searched by law enforcement.
A criminal complaintis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]
31 May 2013
York Man Sentenced to over 87 Years’ Imprisonment for Armed Robbery of Three BanksRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tristan Green, age 28, of York, Pennsylvania, was sentenced Wednesday by U.S. District Court Judge Christopher C. Conner to a 1030-month (85 years, 8 months) term of imprisonment for the armed robbery of three banks and must pay $217,178.45 in restitution. Judge Conner also ordered that Green serve 24-months imprisonment for violating the conditions of his supervised release relating to an earlier conviction.
In addition to Wednesday’s prison sentence, Green was sentenced to 30 years imprisonment on April 4, for a separate armed bank robbery at the Fulton Bank in Etters, Pennsylvania.
Green will serve a total of 117 years and 10 months in prison.
According to United States Attorney Peter J. Smith, on November 14, 2007, Green, and co-defendants, Nijul Alexander, Jami Shabazz and Jamael Stubbs robbed the Sovereign Bank, 1442 Bannister Street, York, PA. On September 20, 2007, Green and Alexander robbed the Heritage Valley Credit Union, 777 Kings Mill Road, York, PA; and on December 6, 2007, Green and Alexander also robbed the Sovereign Bank, 519 South 29th Street, Harrisburg, PA. Each bank was robbed at gunpoint.
In January 2012, the four defendants were indicted. Alexander and Shabazz both pleaded guilty and are awaiting sentencing. In January 2013, a jury returned a guilty verdict against Green and Stubbs on armed robbery charges.
Stubbs was also sentenced Wednesday to a 154 month term of imprisonment, three years of supervised release and ordered to pay a $2,000 fine.
The case was investigated by the Federal Bureau of Investigation, Capital City Safe Streets Task Force; the Pennsylvania State Police; and the West Manchester, Spring Garden and Harrisburg City Police Departments. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.Woman Sentenced for Health Care FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Nicole Bogan, age 39, of Tennessee, was sentenced by the Honorable Clay D. Land, United States District Judge in Columbus, Georgia, on May 30, 2013 for health care fraud in violation of Title 18, United States Code, 1347(a)(2). After entering a plea of guilty to health care fraud, Judge Land sentenced Ms. Bogan to ten (10) months to serve in a federal prison followed by three (3) years of supervised release, restitution in the amount of $87,355.00 to American Family Life Assurance Corporation (AFLAC), and a mandatory assessment fee of $100.00.
In entering a plea of guilty to Count One of the Information, Ms. Bogan admitted that between the dates of October 12, 2009, and February 9, 2012, she fraudulently collected $87,355.00 from American Family Life Assurance Corporation ( AFLAC). During the relevant time period, Ms. Bogan submitted numerous fraudulent claim forms on a cancer policy as well as a disability policy relating to medical expenses and missed work stemming from a purported bout with cancer. As part of her plea, Ms. Bogan admitted that she never, in fact, had cancer and had lied about having the disease in order to collect payments to which she was not entitled from American Family Life Assurance Corporation (AFLAC).
“As we continue to prosecute health care fraud cases, we are forcing defendants like Ms. Bogan to pay for their crime and rooting out fraud one defendant at a time” said U.S. Attorney Michael Moore.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Crawford Seals.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
Woman Indicted for Aiding the Escape of an Inmate from Federal PrisonRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - A woman who is alleged to have aided the escape of a man from a federal prison in Morgantown has been indicted and arrested.
JAMIE ANGEL CLAYTON, age 39, of Edgewater, New Jersey, was arrested on Thursday pursuant to an Indictment charging her with aiding the escape of a convicted drug trafficker from the Federal Correctional Institution in Morgantown, West Virginia.
According to United States Attorney William Ihlenfeld, II, CLAYTON is alleged to have aided Eugene Cobbs in escaping from the prison last month. Prior to his escape, Cobbs had been serving a 151 month sentence for conspiring to distribute more than five kilograms of cocaine.
Cobbs, who is still on the run, was charged in the same indictment with “Escape.” CLAYTON appeared before a federal magistrate judge and was remanded to custody pending a detention hearing.
If convicted, each defendant faces up to 5 years imprisonment and a $250,000 fine. The case will be prosecuted by Assistant United States Attorney Brandon S. Flower and is being investigated by the United States Marshals Service.The charges contained in the indictment are merely accusations and not evidence of guilt. The defendants are presumed innocent until and unless proven guilty.
Western District of Louisiana U.S. Attorney Speaks to Arthur F. Smith Middle Magnet School StudentsRead the Press Release
Alexandria, La. – United States Attorney Stephanie A. Finley visited with Arthur F. Smith Middle Magnet School students last week in Alexandria, La. Ms. Finley was the featured speaker at an event held on the evening of May 24, 2013 for young women who are members of “Girls With Purpose” and their mothers. The Mother and Daughter Tea of Excellence marked a successful year of membership and school involvement for the girls in attendance.
Girls With Purpose is a mentoring group for young women who attend Arthur F. Smith Middle Magnet School. The group meets weekly and promotes the values of a good education and self-esteem. Dr. Norvella Williams, the Principal of Arthur F. Smith Middle Magnet School, started the organization to encourage young girls to stay focused, excel academically, attend college and make good career choices.
United States Attorney Finley spoke to the girls and their mothers about her job as the chief law enforcement officer for the district and her local connection. Finley was born in Pineville and spent her formative years in the Cenla area, attending St. Frances Cabrini School and Pineville High School. She discussed challenges that all young people face. She encouraged the girls to reach for the stars and shared with them that if they work hard, make good grades and stay focused, they are bound to succeed.
“I am honored to be invited to speak to these young women,” Finley said. "My life has been filled with great teachers and mentors. This organization should be commended for their efforts to steer these young ladies in the right direction. I always try to meet with young people and encourage them to dream big and remind them that there is not anything they can’t do. We all can do a little to try to be positive influences. These children have so many distractions; anything that I can do or say to help them focus and assist these great educators, I am more than happy to do so.”
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Damar S. Howell, 38, of Michigan City, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of knowingly possessing a firearm in and affecting interstate or foreign commerce. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea. Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 9/4/2013 09:00 AM in US District Court - South Bend before Judge Robert L Miller Jr. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Miguel Perez, 44, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of knowingly distributing cocaine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea. Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 9/4/2013 01:00 PM in US District Court - South Bend before Judge Robert L Miller Jr. This case is being prosecuted by Assistant United States Attorney William Grimmer.
Christina Glen, 43, of La Porte, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of theft of government property. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea. Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor. Sentencing has been set for 9/5/2013 01:00 PM in US District Court - South Bend before Judge Robert L Miller Jr. This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Pedro Caldera-Pacheco, 41, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of knowingly possessing a firearm in furtherance of a drug trafficking offense. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea. Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 9/4/2013 09:00 AM in US District Court - South Bend before Judge Robert L Miller Jr. This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Keith Galassi, 33, of Michigan City, Indiana, was sentenced by Judge Robert L Miller, Jr. to serve 3 years of probation with $19,110 in restitution after pleading guilty to the felony offense of theft of government property. This case was the result of an investigation by the Department of Labor. This case was prosecuted by Assistant United States Attorney Barbara Brook.
David J. Oldham, 43, of La Porte, Indiana, was sentenced by Judge Robert L. Miller, Jr. to serve 27 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of destruction of digital images and videos containing child pornography with the intent to impair their integrity or availability for official proceedings. According to documents filed in this case, Oldham reinstalled the operating system software on his computer in order to destroy evidence of child pornography. Law enforcement computer forensic officials were still able to recover 73 images and 7 movie file fragments which were child pornography from Oldham’s computer. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the United States Secret Service and the Indiana State Police. This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Laef Wade, 40, of Macy, Indiana, was sentenced by Judge Robert L Miller, Jr. to 37 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of knowingly using a communication facility in causing or facilitating another felony. This case was the result of an investigation by the Drug Enforcement Agency. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Daniel Roman, 22, address unknown, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 8/27/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
Allen Evens, 24, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm and ammunition by a convicted felon.Sentencing has been set for 9/4/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
Kenneth Robinson, 35, of Illinois, pled guilty before Chief Judge Philip Simon to the felony offense of health care fraud.Sentencing has been set for 12/17/13.This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Medicaid Fraud Control Unit, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Department of Labor.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Sammy Earl Jones, 30, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 7/24/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Justin Tiggs, 29, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of ammunition by a convicted felon.Sentencing has been set for 8/14/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Joseph Jamal Smith, 20, of Chicago, Illinois, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Roman Perez, 41, of Crown Point, Indiana, pled guilty before Chief Judge Philip Simon to the felony offenses of making false statements on a tax return and making false statements in a bankruptcy proceeding.Sentencing has been set for 11/14/13.This charge was filed as a result of an investigation by the Internal Revenue Service and the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Philip Benson.
DISPOSITIONS:
Justin Sullivan, 26, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Sullivan has multiple convictions, including a narcotics conviction and an offense for a domestic dispute. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Richard Hawkins, 29, of Lafayette, Indiana, was sentenced by Senior District Judge James Moody to 51months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. According to documents filed by the government in this case, Hawkins has 3 felony convictions and 8 misdemeanor convictions.In less than a 10 year period, the defendant was convicted of the following: maintaining a common nuisance, a felony, in 2003; theft, a misdemeanor, in 2003; leaving the scene of an accident, a misdemeanor, in 2003; resisting law enforcement, a misdemeanor, in 2003; escape, a felony, in 2006; battery, a misdemeanor, in 2006; domestic battery, a misdemeanor, in 2008; operating while intoxicated, a misdemeanor, in 2008; resisting law enforcement, a misdemeanor, in 2011; operating a vehicle while suspended, a misdemeanor, in 2011; and dealing in cocaine, a felony, in 2012. Additionally, the defendant has continuously violated his probation in the majority of his criminal cases. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Rufus Williams, 32, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 51months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of ammunition by a convicted felon.According to documents filed by the government in this case, Williams has an extensive adult criminal history.In 2001 he was convicted of misdemeanor unlawful use of a weapon for possessing a firearm at a time when he was not on his own land, abode, or fixed place of business. In 2006, the defendant was convicted of the misdemeanor failure to stop after an accident resulting in non-vehicle damage and misdemeanor driving while suspended with prior conviction.In 2006, the defendant was convicted of the violent misdemeanor of battery.In 2006, the defendant was also conviction of the felony of auto theft and was sentenced to 18 months imprisonment.In 2006, the defendant was also conviction of the felony of residential burglary and sentenced to 7 years imprisonment and 2 years mandatory supervised release. In 2009, the defendant was convicted of misdemeanor retail theft. Lastly, the defendant also has a 2009 misdemeanor conviction for carrying a weapon without a license. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lake County Sheriff’s Department.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Manolo Lopez-Ramirez, 27, of Valparaiso, Indiana, was sentenced by Senior District Judge James Moody to 27months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of being an illegal alien in possession of a firearm.According to documents filed by the government in this case, Lopez-Ramirez was arrested by U.S. Customs in 2011 for fraud and was under deportation proceedings when arrested.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Porter County Sheriff’s Department and the Indiana State Police.This case was prosecuted by Assistant United States Attorney David Nozick.
Douglas Bryant, 33, of Chicago, Illinois, was sentenced by Senior District Judge Rudy Lozano to 2 years of supervised release to include 6 months of home detention and restitution of $8,062.19 after pleading guilty to the felony offenses of conspiracy to defraud the United States and social security fraud.This case was the result of an investigation by the United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Toi Houston.
Roy Cast, III, 31, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 51months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm and ammunition by a convicted felon.According to documents filed by the government in this case, Cast was convicted of attempted robbery while armed with a handgun of an Arby’s restaurant located in Merrillville, Indiana. The defendant was sentenced to 6 years imprisonment.Law enforcement executed a federal search warrant on the defendant’s residence and recovered firearms, marijuana and cash. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Sergio Alvarez-Arellano, 26, of Warsaw, Indiana, pled guilty before Magistrate Judge Roger B Cosbey to the felony offense of possession with intent to distribute 500 grams or more of cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Anthony Gellar.
Demarcus White, 31, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B Cosbey to the felony offense of felon in possession of a firearm.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Anthony Gellar.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Russell F Cowherd, 34, of Fort Wayne, Indiana, was sentenced by Judge Theresa L Springmann to serve 70 months imprisonment with 2 years of supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Warren Man Arraigned on Federal Indictment Brought Following Alleged Armed Confrontation with R.I. State PoliceRead the Press Release
PROVIDENCE, R.I. – Daniel Ferro, 50, of Warren, R.I., arrested by Rhode Island State Police on May 24, 2013, after allegedly confronting two state troopers with a loaded shotgun, was arraigned in federal court in Providence on Thursday on an indictment charging him with one count of being a felon in possession of ammunition. Ferro was indicted by a federal grand jury on May 29, 2013.
The incident allegedly occurred when State Police troopers went to Ferro’s residence to speak with him regarding an ongoing federal law enforcement and Rhode Island State Police investigation into alleged threats and harassment allegedly directed at a former employer.
Ferro’s indictment and arrest was announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, Robert L. Panella, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations, and Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
According to information presented to the court, Rhode Island State Police troopers went to Ferro’s residence on May 24, 2013, to speak with Ferro as part of ongoing investigation by the U.S. Department of Labor- Office of Inspector General, the U.S. Postal Inspection Service and the State Police into harassment, threatening communications and frivolous complaints Ferro allegedly directed toward a former employer. The employer fired Ferro in September 2011.
According to information presented to the court, when troopers arrived at Ferro’s residence, they observed Ferro’s car outside the house, a television was on inside the home, and a dog was inside the house. The troopers knocked on the front door, identified themselves as police and displayed their badges. Ferro failed to answer the door.
The troopers then knocked on a side door and various windows, repeatedly identifying themselves as police and stating they wanted to speak to Ferro. After about 5 minutes, Ferro allegedly let the dog out and emerged in the doorway allegedly holding a loaded shotgun. Ferro was ordered by a trooper to drop the gun. Ferro allegedly ignored the command and retreated into the house. The troopers retreated, took cover, and contacted Warren Police for backup. Ferro surrendered when Warren Police arrived on the scene, and a loaded 12 gauge shotgun was seized.
At arraignment before U.S. District Court Magistrate Judge Patricia A Sullivan, a not guilty plea was entered on Ferro’s behalf. Mr. Ferro was released on conditions which include home detention with electronic monitoring, mandatory mental health treatment, and a no – contact order which prohibits Ferro from making any contact with his former employer.
According to court records, Ferro was convicted of felony assault with a dangerous weapon in Rhode Island state court in 1994.
An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Felon in possession of ammunition is punishable by a sentence of up to 10 years in federal prison; 3 years supervised release; and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter is being investigated by United States Department of Labor- Office of Inspector General, U.S. Postal Inspection Service and the Rhode Island State Police, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Warren Police Department.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Wanblee Man Sentenced for Possession of A Controlled Substance with Intent to DistributeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota man convicted of Possession of a Controlled Substance with Intent to Distribute was sentenced on May 16, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Clifford Wayne Richards, Jr., a/k/a Beaver, age 56, was sentenced to 3 years' probation, a $100 special assessment to the Federal Crime Victims Fund, and 300 hours of community service.
On September 16, 2012, Richards conspired and intentionally distributed more than 50 kilograms or more of marijuana in South Dakota. Richards pled guilty to the charge on December 18, 2012.
This case was investigated as part of Operation Eagle Eye, a controlled substances investigation conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
U.S. Attorney Announces Lufkin ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsLUFKIN, Texas – U.S. Attorney John M. Bales announced the hiring of federal prosecutor assigned to the Lufkin office of the United States Attorney for the Eastern District of Texas.
Assistant U.S. Attorney Lauren Gaston was administered the Oath of Office by U.S. Magistrate Judge Zack Hawthorn, today before a small crowd of friends, family, and government officials at the Ward R. Burke United States Courthouse .
Gaston was born and raised in Nacogdoches, Texas and is a graduate of the Downtown Magnet Law High School in Wichita, Kansas, Stephen F. Austin State University and the Texas Tech School of Law. Gaston began her career as a lawyer as an Assistant District Attorney with the Dallas County District Attorney’s Office in 2005. As an ADA, she was assigned to the family violence courts, but also worked in the general misdemeanor courts, the intake/grand jury division and general trial courts before being moved to the Child Abuse Division. In 2010, Gaston accepted a position with the Nacogdoches County District Attorney’s Office handling a variety of felony criminal cases, juvenile matters and appellate matters.
Gaston joins the Lufkin office where she will prosecute a wide range of federal crimes including drug trafficking, white collar crime, immigration matters, violent crimes and child pornography.
The Eastern District of Texas is comprised of 43 counties stretching from the Gulf of Mexico to the Oklahoma/Texas border. There are 6 staffed offices located in Beaumont, Lufkin, Tyler, Texarkana, Plano and Sherman with a total of 52 federal prosecutors.Two Virginia Businessmen Sentenced for Illegally Reimbursing Campaign ContributionsRead the Press Release
William P. Danielczyk Jr. was sentenced today to 28 months in prison and ordered to pay a $50,000 fine for illegally reimbursing $186,600 in contributions to the Senate and Presidential campaign committees of a candidate for federal office and then obstructing the subsequent law enforcement investigation.
Acting Assistant Attorney General Mythili Raman of the Criminal Division, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris in the Eastern District of Virginia.
On Feb. 26, 2013, Danielczyk, 51, and Eugene R. Biagi, 78, both of Oakton, Va., pleaded guilty to making illegal conduit campaign contributions. Biagi was sentenced to two years’ supervised probation for his role in Danielczyk’s scheme.
According to court records, Danielczyk was the chairman of Galen Capital Corporation and Biagi served as the corporation’s secretary. In September 2006, Danielczyk co-hosted a fundraiser for a candidate’s campaign for the U.S. Senate and in March 2007 he co-hosted a fundraiser for the same candidate’s 2008 campaign for the President of the United States.
Danielczyk admitted that he recruited individuals, including Biagi and other corporate employees, to serve as “straw donors” to the campaigns, assuring the donors that they would be reimbursed for their contributions. Danielczyk’s assistant collected the contributions, and Danielczyk and Biagi then reimbursed the straw donors for their contributions using Galen Capital Corporation’s corporate funds.
Biagi admitted that he disguised the nature of the reimbursement payments by falsely identifying the purpose of the reimbursement checks on the memorandum line of the check itself and by issuing the checks for amounts slightly larger than the campaign contributions. As part of the obstruction scheme, Danielczyk directed the creation of back-dated letters addressed to individual contributors, which falsely characterized the reimbursement payments to them as “consulting fees.” One set of the letters contained a check for $1,500 in order to further the charade that the reimbursement checks were consulting fees. Biagi furthered the scheme by, among other means, signing the back-dated letters and the checks, thereby supporting Danielczyk’s aims at covering up the true conduct and obstructing the investigations focused on the reimbursement scheme.
Danielczyk and Biagi admitted they used corporate funds to reimburse a total of $186,600 to the two campaigns. The campaigns unwittingly reported them as lawful contributions from the individual “straw donors.”
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Mark D. Lytle and Timothy D. Belevetz from the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section prosecuted the case on behalf of the United States.
Two Virginia Businessmen Sentenced for Illegally Reimbursing Campaign ContributionsRead the Press Release
ALEXANDRIA, Va. –William P. Danielczyk Jr. was sentenced today to 28 months in prison and ordered to pay a $50,000 fine for illegally reimbursing $186,600 in contributions to the Senate and Presidential campaign committees of a candidate for federal office and then obstructing the subsequent law enforcement investigation.
U.S. Attorney Neil H. MacBride of the Eastern District of Virginia, Acting Assistant Attorney General Mythili Raman of the Criminal Division, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office made the announcement after sentencing by U.S. District Judge James C. Cacheris in the Eastern District of Virginia.
On Feb. 26, 2013, Danielczyk, 51, and Eugene R. Biagi, 78, both of Oakton, Va., pleaded guilty to making illegal conduit campaign contributions. Biagi was sentenced to two years’ supervised probation for his role in Danielczyk’s scheme.
According to court records, Danielczyk was the chairman of Galen Capital Corporation, and Biagi served as the corporation’s secretary. In September 2006, Danielczyk co-hosted a fundraiser for a candidate’s campaign for the U.S. Senate and in March 2007 he co-hosted a fundraiser for the same candidate’s 2008 campaign for the President of the United States.
Danielczyk admitted that he recruited individuals, including Biagi and other corporate employees, to serve as “straw donors” to the campaigns, assuring the donors that they would be reimbursed for their contributions. Danielczyk’s assistant collected the contributions, and Danielczyk and Biagi then reimbursed the straw donors for their contributions using Galen Capital Corporation’s corporate funds.
Biagi admitted that he disguised the nature of the reimbursement payments by falsely identifying the purpose of the reimbursement checks on the memorandum line of the check itself and by issuing the checks for amounts slightly larger than the campaign contributions. As part of the obstruction scheme, Danielczyk directed the creation of back-dated letters addressed to individual contributors, which falsely characterized the reimbursement payments to them as “consulting fees.” One set of the letters contained a check for $1,500 in order to further the charade that the reimbursement checks were consulting fees. Biagi furthered the scheme by, among other means, signing the back-dated letters and the checks, thereby supporting Danielczyk’s aims at covering up the true conduct and obstructing the investigations focused on the reimbursement scheme.
Danielczyk and Biagi admitted they used corporate funds to reimburse a total of $186,600 to the two campaigns. The campaigns unwittingly reported them as lawful contributions from the individual “straw donors.”
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Mark D. Lytle and Timothy D. Belevetz from the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Two Men Arrested for Extortion in Local Gambling OperationRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Eric Battistoni, 71, of Cheektowaga, N.Y., and Thi Nguyen, 38, of West Seneca, N.Y., were arrested and charged by criminal complaint with using extortion to collect gambling debts. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Michael McCabe, who is handling the case, stated that according to complaint, Nguyen and Battistoni were members of a gambling ring involving bets on sporting events. The defendants recently demanded payment of an outstanding gambling debt from a Buffalo man who owed $24,000 stemming from losses on 2012 professional sporting events. On May 15, 2013, Nguyen and Battisoni met with the man at a coffee shop on Bailey Avenue and William Street in Buffalo where they demanded payments of $300 a week until the debt was settled. Battistoni threatened violence if payments were not made.
The complaint is the result of a joint investigation on the part of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Two Indicted for Arson and Mail FraudRead the Press Release
Steven Mellides, 51, of Massapequa, New York, and John Fisher, 34, of Mt. Juliet, Tennessee, were indicted by a federal grand jury on May 15, 2013, and were each charged with four counts relating to their participation in the intentional burning of a newly constructed single family house in Mt. Juliet, Tenn., announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
The indictment was unsealed yesterday after both defendants were arrested. The indictment charges each defendant with conspiring to commit, and committing, mail fraud and arson.
“This case illustrates the U.S. Attorney’s Office commitment to prosecuting both violent crime and white collar crime,” said Acting United States Attorney David Rivera. “We will continue working diligently with our local and state partners to bring to justice those who seek to enrich themselves by putting innocent people in harm’s way.”“These arrests indicate the collaborative effort by federal, state and local authorities” said Jeff Fulton, Special Agent in Charge, ATF, Nashville Field Division. “Arson is a a crime of violence that places innocent people’s lives and property in harm’s way.”
According to the indictment, Mellides owned a residence in Mt. Juliet, Tennessee, and had multiple conversations with Fisher and at least one other individual regarding intentionally burning the house. Those conversations culminated with Fisher intentionally setting fire to the house on December 12, 2009. After the house was destroyed by fire, Mellides told State Farm Insurance that he did not know how the fire started and did not ask anyone to set the fire, and caused multiple checks to be mailed from State Farm to pay for the damage to the house.
If convicted, the defendants each face up to twenty years in prison and a $250,000 fine, as well as forfeiture of property derived from or used in violation the offenses charged.
The case was investigated by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the
Bomb and Arson Section of the Tennessee Department of Commerce and Insurance, and the Mt. Juliet Police Department. The United States is represented by Assistant U.S. Attorney Scarlett M. Singleton.An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Timber Lake Man Sentenced for Disorderly ConductRead the Press Release
United States Attorney Brendan V. Johnson announced that Brent Biegler, age 32, of Timber Lake, South Dakota pled guilty to a charge of Disorderly Conduct and was sentenced on May 29, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Biegler was ordered to pay a $500 fine and a $5 assessment to the Federal Crime Victims Fund.
The conviction arose from an incident in September 2012 when Biegler intentionally caused serious public inconvenience and annoyance to a Timber Lake woman.
The investigation was conducted by the by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Three-time Felon Exiled to 16 Years in Prison for Violent Armed RobberyRead the Press Release
Pistol Whipped a Store Clerk During the Robbery
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Reginald Lloyd, age 40, of Washington, D.C., today to 16 years in prison followed by five years of supervised release for armed robbery, using and brandishing a gun during a crime of violence, and being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the evidence presented at Lloyd’s three day trial, on September 7, 2011, Lloyd and an unidentified accomplice entered a store in Forestville, Maryland, wearing black masks and carrying guns. Lloyd ordered an employee at gunpoint to open the cash register, while the accomplice ordered two other employees at gunpoint to the back of the store. Lloyd stole approximately $964 from the cash register, then ordered the employee to open the safe below the cash register. When the employee replied that he could not open the safe, Lloyd pistol-whipped the employee, grabbed the keys and attempted to open the safe himself. Unsuccessful in opening the safe, Lloyd struck the employee in the face with the gun, then sprayed the employee in the face with mace. Lloyd and his accomplice then left the store.
Witnesses testified that during the robbery, one of the employees called 911, described the getaway vehicle and requested an ambulance for the employee who had been injured. About ten minutes later, Prince George’s County Police officers saw a vehicle matching the description of the getaway car and conducted a traffic stop. As the officers got out of their car, the vehicle took off speeding down Marlboro Pike toward Washington, D.C. The pavement was wet and the vehicle hydroplaned, crossing the road into a gas station. A woman was standing next to her car pumping gas, when the vehicle crashed into the back of her car. When police arrived, Lloyd, the only occupant of the vehicle, was arrested. Police recovered a loaded .45 caliber handgun, pepper spray, approximately $867 in cash and receipts from the store, a black mask and a black and white bandana. The black mask contained a DNA profile consistent with Lloyd’s.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and Christen A. Sproule, who prosecuted the case.
Statement of United States Attorney Peter Smith Concerning the Decision of the United States Court of Appeals for the Third Circuit in the Case OfRead the Press Release
United States Of America V. Anthony Munchak And Robert CordaroToday the Court of Appeals affirmed the convictions of former Lackawanna County Commissioners Cordaro and Munchak. The Court also upheld the enhancement of Munchak’s sentence for obstruction of justice. The Court rejected Cordaro’s arguments that the indictment failed to allege essential elements and that the government had conducted an improper cross examination of the defendant at trial.
The government’s position is and always has been, that the only improper conduct here was that of Cordaro and Munchak while they were public officials.The Court remanded a portion of the case to the District Court to resolve a question concerning part of the restitution Cordaro was ordered to pay. We are reviewing the Court’s Order to determine the government’s response.
The investigation and prosecution were conducted with skill and dedication by a team of agents from the FBI and IRS-Criminal Investigations and Assistant United States Attorneys Lorna Graham, Bruce Brandler and William Houser, assisted by Criminal Division Chief Christian Fisanick and Criminal Division Appeals Chief Stephen Cerutti.
Overall the verdict of the jury, the sentences and the judgments of the Courts constitute a strong condemnation of the corrupt abuse of power by Munchak and Cordaro. Hopefully they will serve as a strong and lasting warning to others.
****Starr County Man Sentenced for East Texas Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 42-year-old Roma, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
David Bazan pleaded guilty on Feb. 12, 2013, to conspiracy to possess with intent to distribute five kilograms or more of cocaine and was sentenced to 360 months in federal prison today by U.S. District Judge Thad Heartfield. The court also imposed a $25 million money judgment against Bazan.
According to information presented in court, on Jan. 25, 2011, law enforcement officers stopped a vehicle on IH-10 in Beaumont pursuant to undercover information indicating the vehicle would be trafficking drugs. A search of the vehicle revealed 31.91 kilograms of cocaine. Further investigation revealed David Bazan, leader of the Bazan drug trafficking organization, was responsible for the shipment. Bazan received thousands of kilograms of cocaine from leaders of the Gulf Cartel for the past decade and then distributed those drugs throughout the United States. Bazan was indicted by a federal grand jury on Dec. 14, 2011.
This case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, the Beaumont Police Department, and the Jefferson County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney John Craft.
St. Francis Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man convicted of Failure to Register as a Sex Offender was sentenced on May 29, 2013 by U.S. District Judge Roberto A. Lange.
Patrick Black Spotted Horse, age 23, was sentenced to 10 months in custody, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.
Black Spotted Horse was indicted by a federal grand jury on January 16, 2013 and pled guilty to the charge on April 16, 2013.
The Defendant was convicted of Sexual Abuse of a Minor on December 7, 2009. The Court sentenced Black Spotted Horse to 40 months’ imprisonment, 5 years of supervised release and also ordered that he must register as a sex offender. On October 12, 2012, Black Spotted Horse began his term of supervised release but eventually absconded from a treatment facility and did not properly register as a sex offender. On December 22, 2012, Black Spotted Horse was arrested on the Rosebud Sioux Indian Reservation.
The investigation was conducted by the U.S. Marshal Service. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Black Spotted Horse was remanded to the custody of the U.S. Marshal.
South Dakota Is A National Leader in Indian Country WorkRead the Press Release
United States Attorney Brendan V. Johnson announced the release of a Department of Justice report to Congress entitled Indian Country Investigations and Prosecutions. The report focuses on law enforcement efforts in Indian country and was a requirement of the Tribal Law and Order Act of 2010.
The report indicated that South Dakota is a national leader in the work performed in Indian country. U.S. Attorney Johnson served as Chairman of the Justice Department’s Native American Issues Subcommittee from 2009-2013. In that capacity, he testified before the Senate Committee on Indian Affairs on Sept. 22, 2011 at a hearing entitled “Tribal Law and Order Act One Year Later: Have We Improved Public Safety and Justice Throughout Indian Country?” Johnson highlighted the progress being made in South Dakota and nationwide, and those efforts are reflected in the report.
On the national level, the report shows a 54 percent increase in Indian Country criminal prosecutions from 2009-2012. During that same time period, the Justice Department saw a significant reduction in the number of criminal cases from Indian Country that were declined. The most common reasons for declination were insufficient evidence and referral to another prosecuting authority.
South Dakota has been a national leader in increased prosecutions and decreased declinations. Over the last four years, the U.S. Attorney’s Office in South Dakota has seen an increase in prosecutions of 131% on Rosebud and 82% on Pine Ridge, South Dakota’s largest reservations. The report also reveals that the number of declined cases in South Dakota fell from 164 in CY 2011 to 114 in CY 2012.
U.S. Attorney Johnson attributes much of the success to a new relationship with tribes in South Dakota and across the country. “Four years ago many were skeptical that we could significantly improve public safety on South Dakota’s reservations. Those people were wrong. This report to Congress reveals that we have significantly increased prosecutions and are working closely with tribal and federal law enforcement to make tribal communities a safer place to live. There is still much work to be done, but there is no question we have found the right path and are making progress,” said Johnson.
Since 2009, the U.S. Attorney’s Office in South Dakota has undertaken an unprecedented effort to improve public safety on the reservations. The implementation of the Community Prosecution Strategy (CPS) in 2010 was initiated by U.S. Attorney Johnson as an effort to help restore public safety in South Dakota tribal communities. The CPS remains a work in progress, and some of the highlights to date include:
• The Community Prosecution Pilot Program implemented at Pine Ridge has proven to be successful in a number of areas. Through committed outreach efforts, such as public meetings and forums to address public safety matters, relationships have improved with the Oglala Sioux Tribe (OST) Attorney General’s Office, tribal officials, and law enforcement. As a direct result of the pilot program, the U.S. Attorney’s office communicates regularly with the OST Attorney General’s Office concerning prosecutions of mutual interest, and how best to prosecute offenders over whom both entities have jurisdiction.
• Successfully wrote and submitted a proposal for the creation of a special domestic violence prosecutor on the Standing Rock Reservation. A landmark Memorandum of Understanding was signed July 10, 2012 between the Standing Rock Sioux Tribe, the U.S. Attorney’s Office in South Dakota, and the U.S. Attorney’s Office in North Dakota. The agreement authorized the hiring of a Special Assistant United States Attorney to pursue prosecutions in federal and tribal courts that involve violence against women cases, including domestic violence, dating violence, sexual assault, and stalking. The new prosecutor has been appointed and will have authority to pursue those cases in federal court in both South Dakota and North Dakota, and also the Standing Rock tribal court.
• Initiated a program to encourage tribal, state, and local law enforcement officers to obtain Special Law Enforcement Commissions (SLECs). Through an agreement with the BIA, the U.S. Attorney’s Office has the primary responsibility for providing the SLEC training. Law enforcement members possessing SLECs have broader authority to enforce federal criminal laws in tribal communities. An Assistant U.S. Attorney from South Dakota was selected to be part of the National SLEC Task Force that was charged with rewriting the SLEC curriculum and format of the examination. The exam is given around the country, and the Task Force worked in conjunction with the BIA on this project.
• Continues a strong relationship with BIA leadership. In early 2012, U.S. Attorney Johnson spent two days in Washington working with the law enforcement director of the BIA to discuss staffing and personnel issues. It was also announced in 2012 that the Rosebud Reservation was selected as the second reservation in South Dakota to receive the High Priority Performance Goals Program through the BIA. This program has increased the number of law enforcement officers on the Rosebud Reservation.
• Active participation in the monthly Multi-Disciplinary Team (MDT) meetings. The MDT meetings provide a roundtable format for BIA and tribal law enforcement, mental health counselors, IHS nurse practitioners, social services, FBI, and Tribal CASA, to discuss violence against children investigations. These meetings serve as an opportunity to identify challenges and discuss improvement efforts.
• Host an annual conference on victim advocacy. The two-state conference is co-sponsored by the District of South Dakota and District of North Dakota; the BIA Office of Justice Services; and the Department of Justice Office for Victims of Crime. The purpose of the conference is to provide culturally appropriate training to anyone who works with Native American victims of crime. *Due to sequestration conference not authorized to be held in 2013.
• U.S. Attorney Johnson has been actively involved with the South Dakota Domestic Violence Coordinating Committee (SDDVCC). The SDDVCC was formed in 2012 and is an organization led by the South Dakota Coalition Ending Domestic & Sexual Violence and the South Dakota Network Against Family Violence and Sexual Assault. The organization includes law enforcement leaders from the state, federal, and tribal levels and is designed to protect and represent the interests of survivors of domestic and sexual assault. The SDVCC selected Johnson as their Prosecutor of the Year for 2013.
The Indian Country Investigations and Prosecutions report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors, and other personnel in both federal and tribal criminal justice systems.
Read the entire report at www.justice.gov/tribal.
Read about the Justice Department’s efforts to increase public safety in Indian County at http://www.justice.gov/tribal/accomplishments.html
Smith County Woman Arrested for Student Aid Fraud and Witness TamperingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 31-year-old Flint, Texas woman has been arrested on federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mindy Ritch was charged in a complaint on May 30, 2013, with student financial aid fraud and tampering with a witness. Ritch went before U.S. Magistrate Judge Judith K. Guthrie for an initial appearance today.
If convicted, Ritch faces up to five years in federal prison for the fraud charge and up to 20 years for tampering with a witness.This case is being investigated by the U.S. Department of Education – Office of Inspector General, U.S. Secret Service, U.S. Postal Inspection Service, and the Tyler Junior College Police Department. Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Seattle Man Prosecuted for “Tuba Man” Killing as a Juvenile, Gets Six Year Prison Term for Illegal Gun PossessionRead the Press Release
A Seattle man, who was prosecuted as a juvenile in connection with the high profile beating death of a street musician, was sentenced today in U.S. District Court in Seattle to six years in prison and three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Jenny A. Durkan. WILLIAM CHAMBERS, 20, also known as ‘Billy Chambers’, was arrested in October 2012, barely two weeks after he had been released from serving a 21 month prison sentence for attempted assault. CHAMBERS was arrested following a car prowl in Burien, Washington, where he and his co-conspirators stole a Bushmaster assault rifle. CHAMBERS, who is prohibited from possessing firearms, had the gun in the trunk of his car when he was stopped. At sentencing U.S. District Judge Robert S. Lasnik urged CHAMBERS to use the prison time and the federal supervision to turn his life around and be an example for other young people. “This is your last best chance. Please take advantage of it,” the Judge said.
“We must work to end the street culture that thrives on guns. Too many lives have been harmed,” said U.S. Attorney Jenny A. Durkan. “Getting guns out of the hands of felons and other prohibited persons is a top priority for our office.”
According to records filed in the case, CHAMBERS pleaded guilty to being a felon in possession of a firearm on February 28, 2013. He is prohibited from possessing firearms because of previous convictions as a juvenile and an adult. CHAMBERS was convicted of manslaughter as a juvenile for the October 2008 death of Edward McMichael known as the “Tuba Man”. Chambers was sentenced to 15 to 36 weeks of incarceration. In 2010, CHAMBERS was sentenced to eight months in prison for robbing a man in downtown Seattle using a fake gun. In October 2011, CHAMBERS intentionally ran another driver off the road and pleaded guilty to attempted assault and hit and run. He was sentenced to 21 months in prison and was released just 15 days before he was arrested in this case for illegal firearms possession. CHAMBERS was taken into custody about 20 minutes after a neighbor reported seeing the men stealing an item from the trunk of a car in her neighbor’s driveway. CHAMBERS admitted to police that the house and car were targeted because he believed the residents had guns. The Bushmaster .223 caliber assault rifle that CHAMBERS possessed had an extended magazine containing 30 rounds and is a particularly deadly and dangerous weapon. The firearm had been reported stolen in a burglary in July 2010.
The case was investigated by the King County Sheriff’s Department and was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.
Rosebud Man Charged with Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Sonny Gray Grass, age 52, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on May 29, 2013 and pled guilty to Abusive Sexual Contact.
The maximum penalty upon conviction is life in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place between April 24th and April 28th, 2008 when Gray Grass had sexual contact with the minor victim.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for August 19, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rockville, Md., Property Purchased with Nigerian Corruption Proceeds Forfeited Through Justice Department’s Kleptocracy InitiativeRead the Press Release
A forfeiture judgment was executed today against real property with an estimated value of more than $700,000 in Rockville, Md., that had been purchased with corruption proceeds traceable to Diepreye Solomon Peter Alamieyeseigha, a former Governor of Bayelsa State, Nigeria, announced Acting Assistant Attorney General Mythili Raman of the Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
“Foreign officials who think they can use the United States as a stash-house are sorely mistaken,” said Acting Assistant Attorney General Raman. “Through the Kleptocracy Initiative, we stand with the victims of foreign official corruption as we seek to forfeit the proceeds of corrupt leaders’ illegal activities.”
“This investigation was initiated by ICE’s Homeland Security Investigations (HSI) Asset Identification & Removal Group (AIRG) in Baltimore, in an effort to recover the criminal proceeds from Diepreye Solomon Peter Alamieyeseigha’s assets, whose shell companies were convicted of money laundering offenses in Nigeria,” said ICE Director Morton. “HSI’s AIRG will continue working with the Department of Justice to seek to recover illicit proceeds gained through foreign corruption and to protect the U.S. financial system from being utilized by criminals.”
Alamieyeseigha, aka DSP, was the elected governor of oil-producing Bayelsa State in Nigeria from 1999 until his impeachment in 2005. As alleged in the U.S. forfeiture complaint, DSP’s official salary for this entire period was approximately $81,000, and his declared income from all sources during the period was approximately $248,000. Nevertheless, while governor, DSP accumulated millions of dollars’ worth of property located around the world through corruption and other illegal activities. The complaint alleges that DSP acquired the Rockville property during his first term as governor of Bayelsa State with funds obtained through corruption, abuse of office, money laundering and other violations of Nigerian and U.S. law. Title to the property was transferred to Solomon & Peters, Ltd., a shell corporation controlled by DSP and on whose behalf the former governor entered a guilty plea to money laundering in Nigeria in 2007.
On May 24, 2013, U.S. District Court Judge Roger W. Titus of the District of Maryland granted a motion for a default judgment filed by the Criminal Division’s Asset Forfeiture and Money Laundering Section and issued a final decree of forfeiture. The order extinguishes all prior title and authorizes forfeiture to the United States of the private residence located in Rockville, Maryland, estimated to be worth more than $700,000 and allows the United States to liquidate the property in accordance with federal law. In a related action in the District of Massachusetts, the Department of Justice and ICE Homeland Security Investigations successfully forfeited approximately $400,000 from an investment account traceable to DSP.
Both actions were brought under the Justice Department’s Kleptocracy Asset Recovery Initiative announced by the Attorney General in 2010. Through this initiative, the Department of Justice, along with federal law enforcement agencies, seeks to identify and forfeit the proceeds of foreign official corruption, and where possible and appropriate return those corruption proceeds for the benefit of the people of the nations harmed by the corruption.
The case was investigated by the HSI’s Asset Identification & Removal Group (AIRG) in Baltimore. The case was prosecuted by Assistant Deputy Chief Daniel H. Claman and Trial Attorney Tracy Mann of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with assistance from the U.S. Attorney’s Office of the District of Maryland.
Individuals with information about possible proceeds of foreign corruption in the United States, or funds laundered through institutions in the United States, should contact Homeland Security Investigations or other federal law enforcement, or send an email to [email protected].
Real Estate Developer Pleads Guilty to Mortgage Fraud ConspiracyRead the Press Release
TAMPA, FL - United States Attorney Robert E. O'Neill announces that Joseph Daniele (42, Tampa) pleaded guilty this week to conspiracy to commit wire fraud affecting a financial institution. Daniele faces a maximum penalty of thirty years in federal prison. Daniele’s three co-conspirators, also real estate professionals, previously pleaded guilty for their roles in the conspiracy. Misty Rudd, a realtor, Michael Jordan, a mortgage broker, and Adam Ort, the owner of a title company owner, are currently awaiting sentencing.
According to the plea agreements, Daniele moved from Ohio to Florida in 2002. Directly and through a series of companies, he bought numerous houses, primarily in Pinellas County, for the purpose of “flipping” them. “Flipping” is generally a practice whereby property is bought and then sold for more than the amount for which the purchaser acquired it. In total, the conspiracy involved approximately 400 mortgage transactions.
Rudd helped Daniele to flip the properties by soliciting investors to buy the houses. As a part of the scheme, Rudd and others claimed that these "investments" would require no money from investors to buy the houses. In reality, to obtain these loans, the lenders required the borrowers to contribute money toward the transactions. In the documents submitted to the lenders, the banks were told that the borrowers were paying the down payments and funds-to-close. In fact, the conspirators concealed the actual source of the money from the banks. In some cases, the borrower's contribution was netted out of the transaction. That is, it was taken out of the money the seller (Daniele or his companies) was supposed to receive. This required the direct involvement of the title agents closing the loans. Most of the loans were closed by title companies run by Ort. In other cases, the borrower's contribution was paid by a check from one of Daniele's companies. Frequently, the borrower's contribution came from a company called Premiere Financial, a company run by Ort and Jordan. Premiere Financial would fund the borrower’s contribution and then, on the seller’s side of the transaction, the money would be paid back to Premiere Financial, along with a small fee. This concealed the fact, from lenders, that the borrower had not made a financial contribution to the deal.
In addition, mortgage brokers, including Jordan, facilitated the scheme by adding false information to the mortgage loan applications. Applications were falsified to make the borrowers appear to have the financial ability to make the down payment and qualify for loans which they could not really afford.
This case was investigated by FBI. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
President Obama Adds International Drug “Kingpin” to OFAC ListRead the Press Release
BOSTON - Today President Barack Obama identified Mihael Karner as a Specially Designated Narcotics Trafficker, or “drug kingpin,” for purposes of sanctions under the Foreign Narcotics Kingpin Designation Act (the “Kingpin Act”).
This announcement, along with the identification of five other foreign persons and organizations, is only the 15th Presidential determination under the Kingpin Act since June 2000. Karner’s designation is based on evidence that, since 2000, Karner has run a global distribution network for anabolic steroids that has sold millions of steroid dosages worldwide, including to thousands of customers in the United States.
The Kingpin Act is administered by the U.S. Department of Treasury’s Office of Foreign Asset Control (“OFAC”). It is designed to bring financial pressure against high-level foreign drug traffickers, terrorists, and related organizations by blocking their interactions with the U.S. financial system. Other recent Kingpin Act designations have included Mexican cartel members and related corporate entities, and persons and entities related to Syria and Iran. Today’s action against Karner generally bars U.S. persons and companies from conducting financial or commercial transactions with Karner, and freezes any assets Karner may have that are within U.S. jurisdiction.
The six drug kingpin designations announced today were recommended to the President through an interagency consultation process among the Departments of Treasury, State, Defense, Justice, and the Central Intelligence Agency. Although not required by the Kingpin statute, the Department of Homeland Security and the Office of the Director of National Intelligence were also consulted.
Karner, a Slovenian national, and two co-conspirators, Alenka Karner and Matevz Karner, were indicted in March 2010 on charges of conspiracy to launder money, conspiracy to distribute controlled substances, and conspiracy to import controlled substances to the United States. Based on allegations in the unsealed indictment and in extradition paperwork submitted to the Federal Republic of Austria in June 2011, beginning in about 2000, Karner set up a network of hundreds of web sites and numerous corporate shells to facilitate selling anabolic steroids to customers in any country. Karner sourced precursor chemicals for his products from Southeast Asia, among other places, after which the steroids were assembled and packaged in a factory in Eastern Europe. As internet orders were received, Karner shipped the steroids in bulk to “remailers” in the United Kingdom, Italy, Greece and elsewhere, who repackaged the drugs as individual orders and mailed them out. Through this method Karner was able to disguise the true geographical origins of the drugs.
It is alleged that since 2000, through the use of a constantly shifting network of web sites, Karner shipped tens of thousands of anabolic steroid dosages to thousands of customers in the United States, including to customers in Massachusetts. Nationwide, these customers came from all walks of life, including amateur athletes, weight lifters, people recovering from injuries, doctors and others.
Karner allegedly laundered the proceeds of his steroid trafficking using bank accounts in Austria, Bulgaria and elsewhere, and through the use of internet-based payment processors in France, Iceland, Germany and Luxembourg. Karner and his co-conspirators hid the true ownership of his web sites and accounts by setting up corporate shells in Gibraltar, Panama, Liechtenstein, Dominica, Hong Kong, the Seychelles, and elsewhere. Much of the activity was run out of a post office box based in Klagenfurt, Austria, near the Slovenian border. According to the indictment, Karner has received over $50,000,000 in illicit proceeds from his trafficking activities. Karner has also used drug trafficking profits to buy, among other things, a ski lodge in the Austrian Alps, beachfront lots in Croatia, substantial real property in Ljubljana, Slovenia, and a yacht moored on the Croatian coast.
Karner is presently a fugitive. Based on a formal extradition request from the United States, in December 2011 Karner was arrested at his ski lodge in Austria and detained by Austrian authorities. In March 2012, U.S. Marshals were sent to Vienna, Austria, to take custody of Karner and a co-conspirator with whom he had been arrested, but at the last moment an Austrian court stayed extradition. After being allowed to pay 1,250,000 Euros (about $1,630,000) in bail, Karner fled across the border to Slovenia, where he now resides and continues to operate.
Karner has been the subject of prior European investigations, including efforts undertaken by the Italian Carabinieri in 2003 and the Austrian State Police in 2005.
If convicted on the U.S. charges, Karner faces up to 20 years in prison on the charge of conspiring to launder money, to be followed by three years of supervised release and a fine of $500,000 or twice the value of the property involved in the offense. On the charges of conspiracy to distribute and import controlled substances, Karner faces up to 10 years in prison, up to three years of supervised release and a fine of up to $500,000.United States Attorney Carmen M. Ortiz, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration - Boston Field Office and John Gibbons, U.S. Marshal for the District of Massachusetts made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
The details contained in the indictment and extradition paperwork are allegations. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Pine Ridge Woman Indicted for Stealing CashRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota woman has been indicted by a federal grand jury for allegedly stealing over $1,000 in cash from another female at Pine Ridge on January 1, 2012.
Rose Cottier, age 58, was indicted by a federal grand jury on May 21, 2013 for larceny. Cottier appeared before U.S. Magistrate Judge Veronica L. Duffy on May 24, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Cottier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case.
Cottier was released on bond pending trial. A trial date has been set for July 30, 2013.
Pine Ridge Woman Charged with Second Degree MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota woman has been indicted by a federal grand jury for allegedly killing her grandson at Pine Ridge on April 29, 2013.
Cheryl Jealous of Him, age 50, was indicted by a federal grand jury on May 21, 2013 for second degree murder and felony child abuse and neglect. Jealous of Him appeared before U.S. Magistrate Judge Veronica L. Duffy on May 24, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is life imprisonment and a $250,000 fine. The charges are merely accusations and Jealous of Him is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Jealous of Him was remanded to the custody of the U.S. Marshal. A trial date has been set for July 30, 2013.
Pine Ridge Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man has been indicted by a federal grand jury for allegedly using a wooden board to assault a female at Pine Ridge on March 14, 2013.
Gordon Pourier, age 18, was indicted by a federal grand jury on May 21, 2013 for assault with a dangerous weapon and assault resulting in serious bodily injury. Pourier appeared before U.S. Magistrate Judge Veronica L. Duffy on May 24, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine. The charges are merely accusations and Pourier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case.
Pourier was remanded to the custody of the U.S. Marshal. A trial date has been set for July 30, 2013.
Parkland Memorial Hospital Pays Nearly $1.4 Million to Resolve Allegations It Submitted Improper Physical Medicine and Rehabilitation ClaimsRead the Press Release
DALLAS - Dallas County Hospital District d/b/a Parkland Health and Hospital System (Parkland) settled allegations it violated the civil False Claims Act and Texas Medicaid Fraud Prevention Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The U.S. and Texas contend Parkland caused unallowable and “upcoded” physician consultations and other services to be submitted to Medicare and Texas Medicaid for certain physical medicine and rehabilitation (PMR) related items and services between 2007 and 2011. Parkland fully cooperated with the investigation, and by settling, did not admit any wrong-doing or liability.
When patients are admitted to a hospital, specialists, like PMR physicians, often consult with the attending physician on a variety of issues. At teaching hospitals, faculty physicians may bill for the supervision of residents, if present for the key or critical portions of the services. In both cases such consults, if medically appropriate, are reimbursed by Medicare and Texas Medicaid. The United States and Texas based their investigation on allegations that Parkland submitted or caused the submission of false and fraudulent PMR claims, and false statements in support of such claims, to the Medicare and Texas Medicaid programs between 2007 and 2011 for: (1) consultations that were never requested by a patient’s treating physicians and/or lacked medical necessity; (2) services related to the inappropriate supervision of residents and/or lacked medical necessity; (3) up-coded and inflated evaluation and management services; (4) inpatient rehabilitation stays that did not meet billing requirements; and (5) other unreimbursable costs.
The U.S. and Texas initiated the investigation in response to a March 2010 whistleblower suit brought by Lien Kyri, M.D., a former resident in the PM&R department, UTSW Medical Center at Dallas. Under the False Claims Act and Texas Medicaid Fraud Prevention Act, private individuals may bring actions alleging fraud on behalf of the U.S. and Texas and collect a share of any proceeds recovered by the suit. Dr. Kyri may receive up to 30% of the recovery under the settlement. U.S. Attorney Saldaña praised the efforts of the Office of Inspector General of the U.S. Department of Health and Human Services (OIG) and the Texas Medicaid Fraud Control Unit. U.S. Attorney Saldaña also noted “this settlement demonstrates the Northern District of Texas, and the entire Department, remain committed to investigating allegations of health care fraud, regardless of provider or affiliation.” “Any time false claims are submitted for payment, the nation’s taxpayers and health insurance programs suffer,” said Special Agent in Charge Mike Fields of the OIG’s Dallas Regional Office. “Our agents will continue working to identify providers who manipulate the system to grab precious Medicare and Medicaid dollars to which they are not entitled.”
In addition to paying nearly $1.4 million, Parkland agreed to enter into with the OIG a five-year corporate integrity agreement (CIA) in exchange for release of the agency’s administrative remedies. The CIA requires Parkland to enact and report to the OIG its compliance with billing rules, but also will monitor Parkland to ensure patients receive appropriate care.
The case was handled by Assistant U.S. Attorney Sean McKenna and Assistant Texas Attorney General Paula Juba. The case is captioned United States ex rel. Kyri v. Dallas County Hospital District d/b/a Parkland Health and Hospital System, et al.; Civil Action No. 3:10-cv-0487-D (N.D. Tex.).
Owners of Murfreesboro Ambulance Service Found Guilty of 42 Counts of Conspiracy, Medicare Fraud, Wire Fraud, and Aggravated Identity TheftRead the Press Release
Woody Medlock, Sr., 69, and his wife, Kathy Medlock, 57, of Murfreesboro, Tennessee, former owners of Murfreesboro Ambulance Service, were convicted by a jury on charges of conspiracy, Medicare fraud, wire fraud, and aggravated identity theft, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. A third defendant, Woody (“Bubba”) Medlock, Jr., was acquitted of similar charges.
According to the evidence presented at trial and the indictment, from approximately 1996 through September 2008, the Medlocks conspired and engaged in a scheme to defraud Medicare and Medicaid by submitting claims for payment for the transportation of patients who were not qualified to receive ambulance transportation. Evidence at trial showed that the Medlocks submitted or caused to be submitted, through Murfreesboro Ambulance Service, fraudulent claims totaling more than $1,600,000, to Medicare and Medicaid for reimbursement of ambulance transports of patients to and from dialysis treatments.
Testimony at trial further showed that these fraudulent claims falsely represented that patients were on stretchers when the patients were actually transported in the front seat of the ambulance or in the captain’s chair/jump seat in the back of the ambulance and were not on stretchers. Fraudulent claims also stated that patients were transported individually when in fact, two patients had been transported simultaneously in one ambulance.
Both defendants were convicted of two counts of aggravated identity theft for using the names and Medicare numbers of patients without lawful authority in submitting claims. Kathy Medlock was also convicted of an additional count of aggravated identity theft for use of a doctor’s name in forging and submitting multiple medical necessity forms as part of a Medicare audit.
“This case represents another example that this office will hold individuals accountable when they steal from health care programs intended to help the elderly and the most needy citizens,” said David Rivera, Acting United States Attorney. “This office, along with our law enforcement partners at the Department of Health and Human Services, the Federal Bureau of Investigation, and the Tennessee Bureau of Investigation, will relentlessly pursue those who choose to defraud the Medicare and Medicaid programs.”
“The Medlocks were running a tax-payer funded taxi service disguised as an ambulance company,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “The flow of Medicare money has been shut off to this husband and wife team.”
"Today's verdict validates the FBI's commitment to investigate those who take advantage of our health care system and defraud the American public," said A. Todd McCall, Special Agent in Charge of the Federal Bureau of Investigation Memphis Division. "We will continue to work tirelessly with our law enforcement partners and the U.S. Attorney's Office to investigate and prosecute those who commit health care fraud."
The Medlocks face up to 20 years in prison, plus an additional mandatory two years, for aggravated identity theft and a $250,000 fine. Any sentence following conviction will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.This case was investigated by the United States Department of Health and Human Services - Office of Inspector General, the FBI and the Tennessee Bureau of Investigation. The United States is represented by Assistant United States Attorney Sandra G. Moses, Special Assistant United States Attorney James S. Seaman, and Assistant United States Attorney Christopher C. Sabis.
North Dakota Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Andrew Kills Crow, age 21, of New Town, North Dakota appeared before U.S. District Judge Charles B. Kornmann on May 28, 2013 and pled guilty to Counts 15 and 17 of the Superseding Indictment that each charged him with Assault with a Dangerous Weapon.
For each count, the maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident in late December 2011, wherein a trailer in Mobridge was burglarized and a large quantity of cocaine and methamphetamine and several thousand dollars in cash was stolen. Several burglary “suspects” were taken to a remote location by Kills Crow and others. Once there, the victims were assaulted with shod feet and hit with firearms. The victims denied knowing anything about the thefts. The real burglars were later apprehended.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Kills Crow was remanded to the custody of the U.S. Marshals Service pending sentencing, which has not been set.
North Carolina Businessman Pleads Guilty to Tax FraudRead the Press Release
William Robert Hupman Jr., pleaded guilty today to corruptly endeavoring to obstruct or impede the due administration of the internal revenue laws, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, Hupman managed and controlled Security Concepts LLC, a security alarm company based in Mebane, N.C. Instead of receiving a salary from Security Concepts, Hupman received income by using a Security Concepts debit card to pay his expenses. Despite receiving over $770,000 in such fees between 2007 and 2011, Hupman has not filed an individual income tax return since tax year 2006.
In addition to his failure to comply with his personal income tax responsibilities, Hupman also failed to comply with his employment tax responsibilities at Security Concepts. As the person who managed and controlled Security Concepts, Hupman was responsible for withholding employment taxes and paying them over to the IRS on a periodic basis. Despite the fact that employment taxes were withheld from the wages of Security Concepts employees, Security Concepts has not paid employment taxes and filed the required tax form since the third quarter of 2009. Hupman neither paid over employment taxes nor filed the required tax form for the fourth quarter of 2009 and each of the quarters in 2010 and 2011. He also has not paid the federal unemployment taxes owed or filed the required tax form for years 2009, 2010, or 2011.
Hupman faces a maximum of three years in prison, one year of supervised release and a maximum fine of $250,000. Sentencing is scheduled for Aug. 29, 2013.Kathryn Keneally, Assistant Attorney General of the Justice Department?s Tax Division, thanked Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Todd Ellinwood and Kevin Lombardi for prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.North Carolina Businessman Pleads Guilty to Tax FraudRead the Press Release
WASHINGTON –William Robert Hupman Jr., pleaded guilty today to corruptly endeavoring to obstruct or impede the due administration of the internal revenue laws, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, Hupman managed and controlled Security Concepts LLC, a security alarm company based in Mebane, N.C. Instead of receiving a salary from Security Concepts, Hupman received income by using a Security Concepts debit card to pay his expenses. Despite receiving over $770,000 in such fees between 2007 and 2011, Hupman has not filed an individual income tax return since tax year 2006.
In addition to his failure to comply with his personal income tax responsibilities, Hupman also failed to comply with his employment tax responsibilities at Security Concepts. As the person who managed and controlled Security Concepts, Hupman was responsible for withholding employment taxes and paying them over to the IRS on a periodic basis. Despite the fact that employment taxes were withheald from the wages of Security Concepts employees, Security Concepts has not paid employment taxes and filed the required tax form since the third quarter of 2009. Hupman neither paid over employment taxes nor filed the required tax form for the fourth quarter of 2009 and each of the quarters in 2010 and 2011. He also has not paid the federal unemployment taxes owed or filed the required tax form for years 2009, 2010, or 2011.
Hupman faces a maximum of three years in prison, one year of supervised release and a maximum fine of $250,000. Sentencing is scheduled for Aug. 29, 2013.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Todd Ellinwood and Kevin Lombardi for prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
New Mexico Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that an Albuquerque, New Mexico man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Clarence H. Cadotte, age 36, was indicted by a federal grand jury on March 6, 2013 for failing to pay $27,109.00 in past due child support. He appeared before U.S. Magistrate Judge William D. Gerdes on May 23, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee to the Federal Crime Victims Fund; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Cadotte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Cadotte was released on bond pending trial. A trial date has been set for July 30, 2013.
Mount Vernon Woman Sentenced for Theft of Government FundsRead the Press Release
A Mount Vernon woman, Mary Barnett-Johnson, 51, convicted of Theft of Government Funds in February of this year, was sentenced in United States District Court on May 31, 2013, to five years of probation and was also ordered to pay $85,353.00 in restitution, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Barnett-Johnson was charged in an indictment on December 11, 2012, by a Federal Grand Jury sitting in East St. Louis, Illinois. At her plea, on February 22, 2013, Barnett- Johnson admitted that she had fraudulently continued to receive and use her deceased mother’s social security benefits knowing that she was not entitled to receive or use those funds for her own personal benefit. Barnett-Johnson admitted that she received $85,353.00 in social security payments from August of 2003 through September of 2011 that were intended for her mother, who died in 2003.
The investigation was conducted by the Social Security Administration’s Office of Inspector General and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Money Courier for Large Guatemalan Drug Ring Sentenced to over 13 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Nery Gustavo Ramos-Duarte, age 52, of Chiquimula, Guatemala, today to 160 months in prison followed by five years of supervised release for conspiring to distribute and import five kilograms or more of cocaine, commit money laundering, and smuggle bulk cash.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to evidence presented at the five day trial, Duarte was a money courier for a large international organization that imported cocaine into the United States from Guatemala and smuggled the proceeds back to Guatemala. Duarte was a trusted member of the organization who could speak directly with its leader in Guatemala, and helped the leader collect drug debts.
On September 25, 2003, Duarte was stopped while driving in Arkansas. Law enforcement seized $1,168,000 in cash wrapped in bundles from a secret compartment in his vehicle.
In 2005, Duarte picked up drug money from a co-conspirator in Connecticut to take to the ringleader in Guatemala. Later in 2005, Duarte took a Mercedes-Benz from another member of the conspiracy as payment for a drug debt to the ringleader.
Trial testimony showed that Duarte was responsible for the distribution of over 150 kilograms of cocaine in the course of the conspiracy.
United States Attorney Rod J. Rosenstein commended the IRS-CI, DEA, and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter M. Nothstein, Andrea L. Smith, and Bonnie S. Greenberg, who prosecuted case.
Mexican Woman Sentenced for Bank Larceny and Mexican Man Sentenced for Bank Larceny and Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a man and a woman from Mexico convicted of Bank Larceny were sentenced on May 29, 2013 by U.S. District Judge Roberto A. Lange.
Ismael Espinoza Ortiz, a/k/a Misael Sereseres Ortega, age 38, was sentenced to 84 months of imprisonment and a $100 special assessment to the Federal Crime Victims Fund.
Alejandra Corral Madrid, age 26, was sentenced to time served and a $100 special assessment to the Federal Crime Victims Fund. They were also ordered to pay $2,070 in restitution to BankWest, as well as restitution to several other victims in other pending criminal matters as part of the plea agreement.
Ortiz and Madrid were indicted by a federal grand jury on November 15, 2012. The charge stems from an incident on November 5, 2012 wherein Ortiz and Madrid entered the BankWest branch office in Pierre, and Ortiz handed the bank teller small bills and requested the teller change the bills into larger ones. Madrid stood next to Ortiz at the teller window and witnessed the interaction. While the teller walked several feet from her station to use a bill counting machine, Ortiz reached his left hand under the glass and stole property and money belonging BankWest in the amount of $2,070. After taking the property and money belonging to BankWest, Ortiz and Madrid exited the bank and fled Pierre. They were arrested later that day in Campbell County, South Dakota.
Ortiz was also sentenced to 84 months of imprisonment and $100 to the Federal Crime Victims Fund for his conviction of Illegal Reentry after Deportation. That sentence is to be served concurrently with his above sentence.
That charge stems from incidents wherein Ortiz had previously been ordered to deport from the United States on two prior occasions. At no time since his initial deportation in 1996, has Ortiz requested or been granted permission to reenter the United States.
The investigation was conducted by the Federal Bureau of Investigation and the Immigration and Customs Enforcement. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Ortiz and Madrid were immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Pleads Guilty to Assault with Intent to Commit MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that Ross Dean Farrell, age 21, of McLaughlin, South Dakota appeared before U.S. District Judge Charles B. Kornmann on May 28, 2013 and pled guilty to Count I of the Indictment that charged him with Assault With Intent to Commit Murder.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both, 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident wherein the Defendant was socializing with the victim and others in the basement of his home. At some point, the victim went to sleep on a mattress on the floor. The Defendant, outraged by a perceived slight he had received from either the victim or another person, found the victim and pulled him off the mattress onto the cement floor. The Defendant then proceeded to repeatedly stomp the victim on the head and face, with shod feet.
At the time of the attack, the Defendant intended to kill the victim, as shown by the severity of the attack. As a result of the attack, the victim was required to be hospitalized, had numerous emergency surgeries, and was placed into a medically induced coma. Injuries sustained include severe head trauma.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency and Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Farrell was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for September 9, 2013.
Lower Brule Man Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on May 29, 2013 by U.S. District Judge Roberto A. Lange.
Elmer LaRoche, age 26, was sentenced to 12 months and 1 day of imprisonment, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
LaRoche was indicted by a federal grand jury on December 11, 2012. The charge stems from an incident on or about the 1st day of November, 2012, wherein LaRoche was at a home in Lower Brule, intoxicated, and refused to leave. A tribal court order had been posted on the door regarding no intoxicated persons were to enter the house. An officer was dispatched to the residence, and during the arrest LaRoche resisted and struggled with the officer causing physical contact. LaRoche struck the officer in the head with a metal can.
The investigation was conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
LaRoche was immediately turned over to the custody of the U.S. Marshals Service.
Louisville Residents Charged in Multiple Count Indictment in Drug Trafficking ConspiracyRead the Press Release
LOUISVILLE, Ky. – Members of an alleged drug trafficking organization operating out of Jefferson County, Kentucky were arraigned in U.S. District court this week on multiple charges including distribution of cocaine and heroin, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the May 22, 2013, grand jury indictment, unsealed yesterday, 14 defendants from the Louisville area participated in a conspiracy beginning in April, 2011, lasting until April 30, 2013, to possess and distribute large quantities of cocaine and heroin. Defendant Anthony D. Smith a/k/a “Blackjack” had previously been convicted of a felony in Jefferson County Circuit Court. Smith, Charles A. Reed and Eric Dryden were previously charged in U.S. District Court on May 1, 2013 in a criminal felony complaint. According to an affidavit attached to the complaint, the defendants operated their alleged drug trafficking operation from 2415 Ralph Avenue and 10112 McNeely Lake Drive, both located in Jefferson County, Kentucky. On April 30, 2013, Smith is alleged to have provided law enforcement with 10 kilograms of cocaine in a controlled purchase. A search warrant executed at the two residences resulted in the seizure of six handguns, cocaine, drug paraphernalia, and U.S. currency.
Arrested and facing various charges in the 16-count indictment were Smith, Reed, Dryden, Monica J. Smith, William R. Smith a/k/a “Ray Ray”, Kendrick C. Brown a/k/a “Stacks”, Joyce Vickie Smith, Joseph Whitfield, Clark Brown, Kinte Brown, Deon Crumes, Mike Miller, Melvin Young a/k/a “Dead”, and Andre L. Oneal.
If convicted at trial, defendants face penalties from no less than five years in federal prison per count and up to 20 years per count, three years and up to ten years of supervised release per count, and fines ranging from $10,000 to $1,000,000 per count. The defendants are in the custody of the U.S. Marshals Service.
This case is being prosecuted by J. Scott Davis and is being investigated by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), Louisville Metro Police Department, and Shively Police Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.