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Thursday 18 April 2013
Jesse Castro Babauta Sentenced for Failure to Register as A Sex OffenderRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced today that defendant JESSE CASTRO BABAUTA, age 45, was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to seven (7) months imprisonment for the offense of Failure to Register as a Sex Offender. After defendant serves his term of imprisonment, he will be placed on supervised release for ten (10) years and required to perform community service, pay a $1,000 fine, comply with a Sex Offender Treatment Assessment, and submit to a search of his person, residence and belongings, to include any computers and data in his possession.
In 1995, JESSE CASTRO BABAUTA was convicted of three counts of First Degree Criminal Sexual Conduct (As First Degree Felonies) in the Superior Court of Guam. As a result of these convictions, he is required under federal and local law to register with the Guam Sex Offender Registry at the Superior Court of Guam every 90 days for his entire life. Defendant BABAUTA failed to register or update his information with the Guam Sex Offender Registry between the dates of August 2011 through October 2012. As a result of failing to register, he was considered non-compliant and his name and photograph were published on the Guam Sex Offender Registry at www.guamcourts.org/sor/. He was non-compliant until federal Marshals with the United States Marshals Service (USMS) arrested him for the instant offense.
U.S. Attorney Limtiaco states, “The purpose of the Guam Sex Offender Registry is to provide important notice to island residents that sex offenders are living, working and attending schools in our community. The Sex Offender Registry is a nationwide network that exists to increase public safety and community awareness. Defendants who have committed sexually violent offenses, criminal sex conduct offenses, or criminal offenses involving minor victims must all register and maintain their registrations with the Guam Sex Offender Registry. Defendants who refuse to register or update their information will face federal punishment. The United States Attorney’s Office is committed to the aggressive prosecution of non-complaint sex offenders.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute crimes against children, to include defendants who produce, receive and distribute child pornography, as well as defendants who fail to register with the Sex Offender Registry.
Assistant U.S. Attorney Rosetta San Nicolas prosecuted the case for the United States. U.S. Attorney Limtiaco commends the investigative efforts of Sr. Inspector John Untalan of the United States Marshals Service as well as Sr. Probation Officer Ruben Payumo with the Superior Court of Guam.
Jacksonville Chiropractor Indicted in Staged Car Accident SchemeRead the Press Release
Jacksonville, Florida - United States Attorney Robert E. O'Neill announces the return by the grand jury of a superseding indictment charging Jacksonville chiropractor Richie Cabigting (35), along with Haidar Kazim (28), Kassem Kazim (31) and Todd Jackson (26), all of Jacksonville, with conspiracy to commit mail fraud and mail fraud, in connection with a staged car accident scheme. If convicted, each faces a maximum penalty of 10 years in federal prison on each count. The indictment also notifies the individuals that the United States intends to forfeit $193,002.62, which was seized from a Compass Bank account and is alleged to be traceable to proceeds of the offense.
According to the indictment, Haidar Kazim recruited individuals to participate in staged and fraudulent car accidents. Haidar Kazim and Kassem Kazim instructed the participants on how to conduct the crashes and what to tell responding police officers. Cabigting, a chiropractor and owner of ChiroMed Plus, LLC, located in Jacksonville, provided money to Haidar Kazim to pay the “at fault” drivers, including Todd Jackson, in the staged car accidents. The staged accident participants were then allegedly "treated” at ChiroMed Plus, LLC, by Cabigting, who knew that the participants did not need treatment. Insurance companies were then fraudulently billed for services.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Department of Financial Services. It will be prosecuted by Assistant United States Attorney Julie Hackenberry Savell.
Illegal Sports Bookmaker Sentenced for Conspiring to Commit Sports BriberyRead the Press Release
United States Attorney Laura E. Duffy announced that Richard Francis Garmo was sentenced today in federal court in San Diego by the Honorable Anthony J. Battaglia to serve 24 months in custody, followed by three years supervised release, for his role in a criminal conspiracy. Garmo is the eighth and final defendant to be sentenced in the FBI investigation known as “Operation Hook Shot.”
In April 2011, Garmo and others were charged in an indictment for illegally enriching themselves from the operation of an illegal sports gambling business and the distribution of marijuana. The indictment also charged that by using proceeds from those crimes, the conspiracy influenced the outcome of basketball games at the University of San Diego (USD) during the 2009-2010 season, and then attempted to recruit players to do the same during the 2010-2011 season.
Garmo pleaded guilty to the indictment in August 2012. According to court documents and admissions made by Garmo and his co-defendants, the conspiracy bribed co-defendant Brandon Johnson to influence the outcome of basketball games during the 2009-2010 season while Johnson was a member of USD’s basketball team. Garmo and his co-conspirators then profited by placing bets at Las Vegas casinos on games Johnson influenced. Based on admissions by co-defendant Steve Goria, the conspiracy profited in excess of $120,000 from their sports bribery scheme. Johnson was sentenced to 6 months imprisonment in March 2013 for his role. Thaddeus Brown, a former USD assistant coach and the co-conspirator who recruited Johnson into the conspiracy, was sentenced to 12 months imprisonment in April 2013.
In addition to the 2009-2010 season, the conspiracy attempted to recruit current college basketball players at USD and elsewhere to influence the outcome of basketball games for bribe money during the 2010-2011 season as well. One particular recruiting attempt of a USD player in February 2011 took place at a Pacific Beach convenience store owned and operated by Garmo. At the meeting, the USD player was provided thousands of dollars cash as a bribe, which he later returned after deciding not to accept the bribe.
Judge Battaglia ordered the defendant to report on July 5, 2013 to begin serving his sentence.
DEFENDANT Criminal Case No. 11CR1345-AJB Richard Francis Garmo SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 - Conspiracy
INVESTIGATING AGENCYFederal Bureau of Investigation
Hazleton Man Pleads Guilty to $150,000 FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph M. Yesvetz, age 57, of Hazleton, Pennsylvania, pled guilty in federal court today in Scranton before U.S. District Judge Robert D. Mariani to making a false claim for benefits under the Department of Labor’s Energy Employees Occupational Illness Compensation Program (EEOICP).
According to United States Attorney Peter J. Smith, EEOICP is meant to compensate individuals who suffer work-related health conditions due to exposure to toxic substances in the work place. Yesvetz filed a claim on behalf of his father who died in 2001 after working at a beryllium plant and who allegedly suffered from chronic beryllium disease. Yesvetz admitted that he lied on the claim form by failing to report his prior conviction in 2008 for mail fraud in connection with his receipt of over $88,000 in Pennsylvania state workers’ compensation benefits meant for his deceased father. Yesvetz received $150,000 in April 2012 as a result of his false claim under the EEOICP.
The case was investigated by the Department of Labor Inspector General’s Office and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Fourteen Arrested on Federal Methamphetamine Charges in Tennessee and North GeorgiaRead the Press Release
CHATTANOOGA, Tenn.--A total of 14 individuals from Eastern Tennessee, Northern Georgia and Western North Carolina have been arrested for various violations of federal drug and firearms laws. All are alleged to be part of a large methamphetamine trafficking organization operating in Tennessee and Georgia. A list of charges and potential penalties for these individuals is attached to this release.
On Apr. 16, 2013, seven of these individuals had initial appearances before U.S. Magistrate Judge Susan K. Lee on charges in a second superseding indictment. Anthony Long, 41, of Chatsworth, Ga.; Sarah McElhannon, 44, of Copperhill, Tenn.; Paula Price, 41, Jeremy Gamble, 42, Randy Greene, 48, Paul Gribble, 48, all of Turtletown, Tenn.; and Tracy Mason, 48, of McCaysville, Ga., all appeared for the first time. Three others including: Jose Manuel Juarez-Gonzalez, 37, of Ellenwood, Ga.; Hector De La Torre, 50, of Atlanta, Ga.; and Robin Welch, 42, of Copperhill, Tenn., who had previously been arraigned on a superseding indictment, also appeared before U.S. Magistrate Judge Lee to be arraigned on charges in the second superseding indictment.
Four individuals are also in custody including: Corey Welch, 39, of Copperhill, Tenn.; Dennis Glover, 60, of Ranger, Ga.; Melinda Adams, 24, of McCaysville, Ga., and Mitchell Hughes, 38, of Farner, Tenn. They will be arraigned in the near future.
Trial has been set for June 25, 2013, in U.S. District Court in Chattanooga.
Other arrests are pending and their names, charges and potential penalties will be released upon their initial appearance before a U.S. Magistrate Judge.
The investigation leading to the indictment and subsequent arrests was conducted by agents of the U.S. Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives, and 10th Judicial District Drug Task Force. Assistant U.S. Attorney Terra Bay will represent the United States at trial.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
(Download Charges and Penalties Sheet)
Former Tuscaloosa Police Sergeant Pleads Guilty to Civil Rights Violation for Sexually Assaulting a WomanRead the Press Release
Jason Glenn Thomas, 34, a former sergeant with the city of Tuscaloosa, Ala., Police Department, pleaded guilty today to a criminal civil rights charge for using his authority as a law enforcement officer to sexually assault a woman.
According to court documents filed in connection with his guilty plea, Thomas admitted that while on duty shortly after midnight on March 27, 2011, he stopped and detained a female pedestrian without placing her under arrest. Thomas then transported the woman in his department issued patrol vehicle to a remote area and sexually assaulted her.
“This former officer did the unimaginable when he used his police powers to sexually assault this victim,” said Roy L. Austin, Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who abuse their position and authority to harm those individuals whom they have sworn to protect.”
“Most police officers work diligently every day to protect the citizens,” said U.S. Attorney for the Northern District of Alabama Joyce White Vance. “A community must be able to trust its police officers. My office is committed to prosecuting any officers who abuse the authority of the badge to commit a crime. This abuse of the public’s trust will not be permitted.”
“Mr. Thomas dishonored his badge and his fellow officers when he violated the civil rights of a female pedestrian while on duty, in uniform and in a marked patrol car,” said FBI Special Agent in Charge of the FBI Birmingham, Ala., Field Office Richard D. Schwein Jr. “Citizens have a right and should expect ethical and proper treatment from all law enforcement officers and we, as civil servants, must never forget that we have sworn an oath to serve and protect them. The public can be assured the FBI will continue to aggressively pursue those rogue officers who violate that trust.”
Thomas faces a maximum sentence of 10 years in prison and a fine of $250,000. Sentencing is scheduled for July 18, 2013, before U.S. District Judge C. Lynwood Smith.
This case was investigated by the Tuscaloosa resident agency of the FBI’s Birmingham Field Office, and was prosecuted by Trial Attorney D.W. Tunnage of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney George Martin for the Northern District of Alabama.
Former St. Marys Man Pleads Guilty to Embezzling over $422,000 from the Elk County Humane SocietyRead the Press Release
ERIE, Pa. - A former resident of St. Marys, Pennsylvania, pleaded guilty in federal court to charges of wire fraud and money laundering, United States Attorney David J. Hickton announced today.
Richard Danz, 48, pleaded guilty to three counts before United States District Judge Sean J. McLaughlin.
In connection with the guilty plea, the court was advised that Danz was the financial advisor/accountant for the Elk County Humane Society. From in and around September 2008 to in and around June 2012, Danz embezzled $422,017.81 from the Elk County Humane Society and another individual for his own personal use.
Judge McLaughlin scheduled sentencing for September 10, 2013 at 1:30 p.m. The law provides for a total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of St. Marys, Pennsylvania, Police Department conducted the investigation that led to the prosecution of Danz.
Former NYPD Officer Sentenced in Manhattan Federal Court to 46 Months in Prison for Conspiring to Distribute Firearms and Stolen GoodsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALI OKLU, a former New York City Police Department (“NYPD”) Officer, was sentenced today to 46 months in prison for participating in a scheme to illegally transport firearms, including M-16 rifles and handguns, and stolen goods across state lines. OKLU was sentenced by U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “Ali Oklu betrayed the NYPD and the fine men and women who serve there so honorably, even going so far as to conspire to bring firearms into New York where his brother and sister officers – as far as he knew – might have been potentially in the firing line. With his sentence today, he will now be punished for his crimes.”
According to the court filings and statements made in court:
From September 2010 to October 2011, OKLU participated in the transportation of firearms and what he believed were stolen goods across state lines. He was an active duty NYPD Officer at the time he committed the offenses. The firearms OKLU helped transport included three M-16 rifles, one shotgun, and 16 handguns, the majority of which had been defaced to remove or alter the serial numbers, and all of which had been rendered inoperable. The goods he helped transport, and that he thought were stolen, included 12 slot machines and thousands of cartons of cigarettes, as well as various counterfeit merchandise. In total, the goods that OKLU and his co-conspirators illegally transported carried a street value of approximately $1 million.
OKLU was recruited to join the conspiracy in early October 2010 by its leader and organizer, and his fellow NYPD Officer, William Masso. The trips in which OKLU participated included two trips to transport purportedly stolen slot machines from Atlantic City to New York; multiple trips to transport hundreds of cases of purportedly stolen cigarettes from New Jersey to New York; a trip to Virginia to take part in the purported theft of hundreds of cases of cigarettes from trucks parked outside a warehouse; and the final trip during which 20 firearms, many of which were defaced, and all of which were rendered inoperable, were transported interstate. In total, OKLU was paid $35,000 for his role in the transport of the firearms and purportedly stolen goods.
OKLU specifically discussed with his co-conspirators using their law enforcement credentials and applying their law enforcement expertise in preparing for and carrying out these schemes. For example, in a meeting in March 2011, Masso explained that they should carry their law enforcement badges during the operation and, if stopped, say they were police officers working off-duty to deliver items that had been purchased at an auction. The group also discussed using their specialized knowledge as law enforcement officers in determining the ideal vehicles to rent to transport the goods. OKLU specifically recommended that the group not travel together in the rental vehicles they used to transport the purportedly stolen goods in order to avoid raising the suspicion of law enforcement. During his guilty plea, OKLU admitted that he had knowingly transported what he believed were stolen cigarettes, slot machines, and other merchandise across state lines and had willfully transported firearms across state lines.
In addition to the prison term, Judge Pauley sentenced OKLU, 36, of Sunnyside, New York, to three years of supervised release and ordered him to pay a $7,500 fine and a $200 special assessment fee. Judge Pauley also imposed on OKLU an agreed upon forfeiture amount of $35,000 representing his share of the crime proceeds. Pursuant to OKLU's guilty plea, OKLU relinquished his interests in guns seized from him at the time of his arrest.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Internal Affairs Bureau of the NYPD.
This prosecution is being handled by the Office’s Public Corruption and Complex Frauds Units. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecutions.
Former Los Lunas Receptionist Sentenced to Forty-Two Months in Federal Prison for Bank Fraud and Identity Theft ConvictionRead the Press Release
ALBUQUERQUE – Sandra Rivas, 36, of Los Lunas, N.M., was sentenced earlier today to 42 months in federal prison followed by three years of supervised release for her conviction on bank fraud and aggravated identity theft charges. Rivas also was ordered to pay $14,022.47 to the victims of her criminal conduct. Rivas’ sentencing was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Roy Melnick of the Los Lunas Police Department.
Rivas was indicted in May 2012, and charged with 11 counts of bank fraud, 28 counts of aggravated identity theft, 18 counts of wire fraud, and one count of access device fraud. According to the indictment, between March 2011 and July 2011, Rivas engaged in a pattern of criminal conduct while employed as a receptionist by a Valencia County business. In her capacity as the receptionist, Rivas was responsible for accepting payments to the business from clients in the form of cash, checks and credit cards. Rivas was charged with abusing her position by altering the payee information on checks payable to her employer and depositing the altered checks into her personal bank account; using the names, addresses, telephone numbers and bank account numbers of her employer’s clients to commit criminal offenses; and making fraudulent online purchases by using the credit card information belonging to her employer’s clients.
In Nov. 2012, Rivas pleaded guilty to Counts 1, 12 and 40 of the indictment, charging her with a bank fraud charge and two aggravated identity fraud charges under a plea agreement with the U.S. Attorney’s Office. In entering her guilty plea, Rivas admitted that, while employed as a receptionist, she altered 11 checks payable to her employer by adding her name as payee and depositing the checks in her own bank account. Rivas also admitted using the names and credit card numbers of her employer and her employer’s clients at least 19 times to make fraudulent online purchases for her own benefit.
Rivas is required to surrender to a federal correctional institution to be designated by the U.S. Bureau of Prisons within 60 days to begin serving her prison sentence. As required by the plea agreement, the remaining counts in the indictment were dismissed after Rivas was sentenced.
This case was investigated by the Albuquerque office of HSI and the Los Lunas Police Department and was prosecuted by Assistant U.S. Attorney Jeremy Pena.
Former IRS Employee Sentenced to Prison for Falsely Certifying the Number of Hours He WorkedRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced former IRS employee Antonio Keith Willabus, age 47, of Laurel, Maryland today to four months in prison, followed by three years of supervised release, for falsely certifying on his time and attendance records that he worked 353.1 hours in 2012 when in fact he had not. Judge Russell also ordered Willabus to serve 400 hours of community service and to pay restitution of $24,427.45.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Robert Geary of the Treasury Inspector General for Tax Administration.
According to his plea agreement, Willabus was a full time management and program analyst with the information technology service of the IRS. His office was located in New Carrollton, Maryland. During part of 2012, Willabus was permitted to work from home on Mondays and Tuesdays.In January 2012, the Treasury Inspector General for Tax Administration(TIGTA) began investigating Willabus’ time and attendance. The personal recording card Willabus was required to use to record his entry and exit at his office showed that Willabus rarely spent more than a few hours in the office on the days he was supposed to be there. Surveillance video of the building lobby showed that Willabus’ entries and exits were infrequent. People in adjacent offices rarely ever saw Willabus. His supervisors and coworkers frequently could not find Willabus, and were frustrated and perplexed when he did not respond to their emails during working hours.
On Monday and Tuesday of May 7 and 8, 2012, when Willabus was supposed to be working from home, TIGTA agents observed Willabus leave his house at 8:15 a.m. and then spend the day driving to locations in Baltimore. Agents believed Willabus was preparing to set up a bar business in Baltimore. He was seen moving a freezer from his truck into a bar building. Willabus did not return home or go into his office during his regular working hours on either day. On May 11, 2012, he entered data into his office time and attendance system claiming that he worked full days on May 7 and 8.
Cell site records from January through May 8, 2012 showed that Willabus frequently made calls on his cell phone from locations other than his home or office during the hours that he was supposed to be working. For work days between January 13 and June 8, 2012, Willabus falsely claimed to be working 353.1 hours that he did not actually work, for which he received a salary of $24,427.45.
United States Attorney Rod J. Rosenstein praised the Treasury Inspector General for Tax Administration for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.Former Employee of New Jersey Timeshare Consulting Firm Admits Separate Mortgage and Unemployment ScamsRead the Press Release
CAMDEN, N.J. – A former employee in the New Jersey offices of the Vacation Ownership Group LLC admitted today to conspiring to defraud owners of timeshare properties by offering phony consulting services while also illegally collecting unemployment benefits, U.S. Attorney Paul J. Fishman announced.
Brian Corley, a/k/a “John Corley,” 28, of Little River, S.C., and formerly of Egg Harbor, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an Information charging him with one count of conspiracy to commit mail and wire fraud and one count of mail fraud.
According to documents filed in this case and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
Corley started working at the VO Group in March 2010, where he was trained by a co-owner of the group, Adam Lacerda, to call customers using prepared scripts. Corley admitted that he would call customers and give them the false impression that he was working for a bank or lending institution, claiming he had the customer’s “complaint file” from a timeshare resort developer in front of him. Corley admitted that he regularly lied to customers in order to perpetrate the scam. Some of those customers then sent checks to the VO Group. The scheme caused more than $200,000 in losses.
Among other things, Corley admitted that he falsely told a customer that if the customer paid $25,000 to the VO Group and exchanged timeshare points, the group would eliminate the customer’s approximately $95,000 mortgage debt with a timeshare developer.
Corley also devised a separate scheme to defraud the New Jersey Department of Labor by collecting unemployment compensation benefits while working at the VO Group. He admitted to applying for and collecting unemployment compensation benefits to which he was not entitled. Court documents show Corley illegally received $16,936 as a result.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were variously charged in a superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by criminal Complaint in April 2012. As for the Lacerdas and other defendants who have not been convicted in this case, the charges and allegations against them are merely accusations and they are considered innocent unless and until proven guilty.
Each of the two counts to which Corley pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for July 29, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to the guilty plea. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: José L. Ongay Esq., CamdenCorley, Brian Superseding Information
Former Baltimore Police Officer Pleads Guilty to Improperly Accessing A Protected ComputerRead the Press Release
Baltimore, Maryland – Former Baltimore Police officer Keith Nowlin, age 39, of Laurel, Maryland pleaded guilty today to accessing a protected computer without authorization, related to his obtaining motor vehicle information for a drug dealer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, on June 18, 2010, Nowlin exchanged text messages with Marvin Mobley in which Mobley requested information on a specific motor vehicle. At the time, Nowlin was a Baltimore Police officer assigned to the Northeast District and Mobley, whose phone was part of a court-ordered wiretap, was under investigation for drug trafficking. In response to Mobley’s request, Nowlin responded “No problem anything for u.” Nowlin, who was not on duty at the time, requested the information through a Baltimore Police sergeant, who regularly makes such inquiries on behalf of officers for law enforcement purposes. The sergeant believed that Nowlin’s request was in furtherance of his police duties. Later that day, Nowlin and Mobley exchanged text messages and Nowlin provided Mobley with the identity of the vehicle’s owner. Nowlin improperly obtained the information using a protected computer network, which law enforcement agents are authorized to access for legitimate law enforcement purposes.
Nowlin faces a maximum sentence of one year in prison and a fine of $100,000. U.S. District Judge James K. Bredar scheduled sentencing for August 1, 2013 at 2:00 p.m.
Marvin Mobley previously pleaded guilty to possession with intent to distribute cocaine and crack cocaine and was sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who is prosecuting the case.
Florida Man Pleaded Guilty to Conspiracy Involving Iraqi CurrencyRead the Press Release
A Florida man pleaded guilty today in the U.S. District Court to crimes related to a scheme to defraud investors in the sale of Iraqi dinar currency and two non-existent hedge funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Acting Special Agent in Charge, IRS-Criminal Investigation, Cincinnati field office.
Rudolph M. Coenen, age 47, of Jacksonville, Florida, pleaded to one count of conspiracy to commit wire fraud, one count of wire fraud and five counts of money laundering before U.S. District Court Judge Jack Zouhary.
Coenen admitted to entering into a conspiracy with Bradford L. Huebner, Charles N. Emmenecker and Michael L. Teadt to defraud investors through the promotion and sale of Iraqi dinar currency and “placements” in two non-existent hedge funds. Coenen operated a business known as Bayshore Capital Investments to collect funds related to the non-existent hedge funds for himself, Huebner, Emmenecker and Teadt, according to court documents.
Huebner developed and provided prospective investors with professional literature and information regarding the non-existent hedge funds in order to make them appear legitimate. The marketing strategy developed by Huebner and Coenen included requiring prospective members in the non-existent hedge funds to join the BH Group and purchase a certain quantity of Iraqi dinar from Huebner, according to court documents.
Approximately $722,415.00 was solicited from prospective investors, according to court documents.
Coenen also admitted he was not a former Marine who served in the first Gulf War, he had not been wounded in combat and he was never awarded a Purple Heart. Coenen also admitted the defendants knowingly and intentionally made other false and misleading claims to investors in furtherance of the scheme to defraud, according to court documents.
Coenen and three others were indicted in September 2012. Charges against the other co-defendants are pending.
Assistant United States Attorneys Joseph R. Wilson and Gene Crawford are representing the United States in this case, which was investigated by special agents of IRS, Criminal Investigation.
Florida Man Indicted on Drug Conspiracy and Sex Trafficking ChargesRead the Press Release
A federal grand jury returned an indictment today charging Andrew Blane Fields, 62, of Lutz, Fla., with conspiracy to possess with the intent to distribute controlled substances, namely Oxycodone, Dilaudid and Morphine; three counts of sex trafficking by force, fraud and coercion; and two counts of possession with intent to distribute controlled substances. If convicted on all counts, Fields faces a maximum of life in federal prison.
According to allegations in the indictment and criminal complaint, at least as early as 2008 through the end of 2012, Fields engaged in the sex trafficking of three different victims for commercial gain, who are identified in the indictment by their initials. Fields coerced and controlled the victims by, among other methods, supplying them on a daily basis with a large number of highly addictive prescription drugs. During the execution of a federal search warrant, law enforcement recovered thousands of prescription pills from Fields’ residence. Fields was previously charged by criminal complaint on March 20, 2013.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent until proven guilty.
This case was investigated by the Department of Homeland Security – Homeland Security Investigations with the assistance of the Clearwater, Fla., Police Department and members of the Clearwater Area Human Trafficking Task Force. It will be prosecuted by Assistant U.S. Attorney Josephine W. Thomas and Trial Attorney William E. Nolan with the Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit.
Five More Charged in Mortgage Fraud Scheme Centered in West PhiladelphiaRead the Press Release
PHILADELPHIA - A 34-count indictment was unsealed today charging five people with various crimes stemming from their participation in a mortgage fraud scheme, between May 2004 and February 2009, that involved fraudulent documents, inflated purchase prices on loan documents for more than 100 Philadelphia properties, and resulted in more than $20 million in fraudulent loan proceeds. At the center of the alleged conspiracy is KREW Settlement Services, a Philadelphia real estate settlement company. The indictment charges Eric Sijohn Brown, 45, Roderick L. Foxworth, Sr., 56, who surrendered to authorities this morning, Cynthia Evette Brown, 51, who was arrested this morning, all of Philadelphia, Walter Alston Brown, Jr., 45, of Glen Allen, VA, and Kevin Joseph Franklin, 50, of Albany, GA, who were arrested this morning, with one count of conspiracy to commit loan and wire fraud. The indictment also seeks the criminal forfeiture of over $13.7 million from the defendants.
The indictment was announced by United States Attorney Zane David Memeger, FBI Special Agent-in-Charge Edward J. Hanko, IRS Special Agent-in-Charge Akeia Conner, and HUD-OIG Special Agent-in-Charge Joseph W. Clarke.
According to the indictment, Eric Sijohn Brown - a general contractor - worked with other co-conspirators to identify distressed properties to purchase, typically in the West Philadelphia area. The scheme involved recruiting “straw buyers” whose credit history and personal information was used to purchase the properties, obtain mortgage loans, and take title to the properties, when, in reality, the properties were owned and controlled by the defendants. Mortgage loan applications were then prepared in the names of the straw buyers containing a host of false information, including false purchase prices, false employment and income information, and false statements about the straw buyers living in the properties. Mortgage brokers - including Roderick Foxworth, Walter Brown, and John William Polosky (charged separately in the Western District of Pennsylvania) - allegedly submitted the fraudulent loan applications to lenders to secure the loans for the buyers, knowing that the information was false. Cynthia Evette Brown is alleged to have falsely verified that many of the straw buyers worked for her employer, Unicco Service Company, when they did not. Kevin Joseph Franklin, a title agent, is alleged to have falsely prepared two deeds and settlement statements (referred to as "Form HUD-1") – one for the seller that showed the actual agreed-upon purchase price and a false one for the lender that showed the grossly inflated purchase price. Franklin is also alleged to have created false title insurance policies for the lenders.
The indictment alleges that after the loans funded, the seller was paid the agreed-upon purchase price, and the difference between the actual purchase price and the false purchase price quoted to the lender was shared with and distributed by Franklin to Eric Brown, Foxworth, Walter Brown, and Cynthia Brown, and many of these payments were not reflected on the HUD-1 forms.
In addition to the conspiracy count, Eric Brown is charged with two counts of FHA loan fraud, 14 counts of loan fraud, one count of aggravated identity theft, two counts of wire fraud, and three counts of tax evasion; Kevin Franklin is charged with two counts of FHA loan fraud, 15 counts of loan fraud, one count of aggravated identity theft, one count of wire fraud, and three counts of filing a false tax return; Roderick Foxworth is charged with five counts of loan fraud and two counts of filing a false tax return; Walter Brown, Jr. is charged with one count of FHA loan fraud, six counts of loan fraud, one count of wire fraud, and two counts of tax evasion; and Cynthia Brown is charged with two counts of FHA loan fraud, five counts of loan fraud, and two counts of wire fraud.In addition to the five defendants charged in this indictment, seven defendants have been charged by information including: Willie G. Manley Jr., Eric Ponder, Francine Shanique Cross, Gregory Christopher Thornton, Rashika J. Moon, Dontaya S. Devore, and Mark Murphy. According to the indictment, Manley created false income documents which were submitted to lenders; Ponder helped cause the submission of numerous fraudulent loan applications; Cross, a real estate agent and appraiser, helped secure mortgage loans with falsely-inflated appraisals; Thornton recruited a straw buyer and served as a straw buyer; Moon, Devore, and Murphy were straw buyers who allowed their identities to be used to facilitate the submission of knowingly false loan applications.
If convicted, the defendants face the following possible maximum sentences:
Eric Sijohn Brown faces a maximum possible sentence of 486 years imprisonment, including a mandatory 2 years imprisonment; 5 years supervised release; a $15,800,000 fine; and a $2,300 special assessment.
Kevin Joseph Franklin faces a maximum possible sentence of 490 years imprisonment; including a mandatory 2 years imprisonment; 5 years supervised release; a $16,550,000 fine; and $2,300 special assessment.
Roderick L. Foxworth, Sr., faces a maximum possible sentence of 161 years imprisonment; 5 years supervised release; a $5,450,000 fine; and a $800 special assessment.
Walter Alston Brown, Jr. faces a maximum possible sentence of 217 years imprisonment; 5 years supervised release; a $6,950,000 fine; and a $1,100 special assessment.
Cynthia Evette Brown faces a maximum possible sentence of 197 years imprisonment; 5 years supervised release; a $6,000,000 fine; and a $900 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
As alleged in the indictment, “KREW” is an acronym of the first names of Kevin Joseph Franklin, Roderick L. Foxworth, Sr., Eric Sijohn Brown, and Walter Alston Brown, Jr.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Fifth Sacred Heart Hospital Physician Arrested for Allegedly Illegally Prescribing Hydrocodone to A PatientRead the Press Release
CHICAGO — A Chicago physician associated with Sacred Heart Hospital on the city’s west side is facing federal charges for allegedly illegally prescribing hydrocodone to a hospital patient without having a valid license and registration to prescribe controlled substances. The defendant, Dr. KENNETH S. NAVE, allegedly illegally used the Drug Enforcement Administration registration number of another physician when he prescribed the hydrocodone last December.
Nave, 50, of Chicago, was arrested yesterday in Miami when he returned from a trip outside the country. He appeared today in Federal Court in Miami, was released, and ordered to appear at 3 p.m. tomorrow before U.S. Magistrate Judge Daniel G. Martin in U.S. District Court in Chicago. He was charged in a criminal complaint that was filed on Monday and unsealed upon his arrest.
Also today, the Illinois Department of Financial and Professional Regulation issued an order suspending Nave’s license to practice medicine.
On Tuesday, the owner and chief executive officer of Sacred Heart was arrested, along with the hospital’s chief financial officer and four physicians affiliated with the hospital on federal charges alleging a conspiracy to pay and receive kickbacks in exchange for referral of Medicare and Medicaid patients to the hospital. Federal agents also executed search and seizure warrants as part of an ongoing investigation of Medicare fraud allegations involving medically unnecessary emergency room admissions and in-patient tracheotomy procedures.
According to the complaint against Nave, who is the fifth physician to be charged, the investigation has revealed that between at least November 2012 and Feb. 25, 2013, he issued prescriptions to patients at Sacred Heart for controlled substances using the DEA registration issued to Physician I. On Dec. 7, 2012, Nave allegedly prescribed a particular patient 90 pills containing hydrocodone, a narcotic controlled substance, using Physician I’s registration number.
Nave’s Illinois license to practice medicine was suspended between 2002 and 2008. It was restored to probationary status on Dec. 20, 2012, but his state license to prescribe controlled substances was not restored until Feb. 26, 2013, according to the complaint affidavit. Separately, Nave was not registered with the DEA to prescribe controlled substances but an application for DEA registration that was submitted on March 6, 2013, is pending, the affidavit adds.
The affidavit cites records from the Centers for Medicare and Medicaid Services indicating that between Nov. 1, 2012, and Feb. 25, 2013, a person using Physician I’s name and DEA registration number issued approximately 101 prescriptions for controlled substances to approximately 33 patients at Sacred Heart Hospital.
The illegal prescription count carries a maximum penalty of four years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Nave’s arrest and charge were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Lamont Pugh, III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General; and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorneys Terra Reynolds, Joel Hammerman and Ryan Hedges.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Federal Jury Convicts two Albuquerque Residents for Conspiracy to Transport Illegal AliensRead the Press Release
ALBUQUERQUE – This afternoon, a federal jury sitting in Albuquerque, N.M., convicted Maria Leticia Gutierrez de Lopez, 62, and Jesus Cabral Ramirez, 44, for conspiring to transport illegal aliens after a three-day trial. Cabral Ramirez also was convicted of transporting an illegal alien. The jury’s verdict was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Chief Patrol Agent Scott A. Luck, El Paso Sector, U.S. Border Patrol.
In May 2012, Gutierrez de Lopez and Cabral Ramirez, both legal permanent residents from Mexico who reside in Albuquerque, were charged in a three-count indictment. Count 1 of the indictment charged Gutierrez de Lopez and Cabral Ramirez with conspiring to transport illegal aliens in Nov. 2011, and Counts 2 and 3 each charged Cabral Ramirez with transporting an illegal alien.
Trial of the case began on April 16, 2013 and concluded this afternoon when the jury returned a guilty verdict as to both Gutierrez de Lopez and Cabral Ramirez on Count 1 of the indictment. The jury also returned a guilty verdict against Cabral Ramirez on Count 2, but acquitted him on Count 3.
The evidence at trial established that, in fall 2011, the FBI obtained information about Cabral Ramirez’s alien smuggling activities. The agents used the information to initiate a covert investigation into Cabral Ramirez during which they recorded telephone conversations relating to alien smuggling. Through the recorded conversations of Cabral Ramirez and others, the FBI learned that Gutierrez de Lopez was facilitating and organizing the transportation of an alien from El Paso to Denver, Colo. Cabral Ramirez knew Gutierrez de Lopez and agreed to transport the alien from Albuquerque to Denver. Gutierrez de Lopez arranged to receive the payment for transporting the alien through wire transfer at an Albuquerque-area WalMart and the transaction was recorded by the store’s surveillance camera. The investigation concluded on Nov. 22, 2011, when Gutierrez de Lopez met the person who transported the illegal alien from El Paso to Albuquerque at an Albuquerque-area restaurant and paid the transporter a $1200 fee. Cabral Ramirez took custody of the illegal alien and started driving toward Denver where he anticipated receiving an additional payment of $600, but was stopped by a state police officer who arrested the illegal alien.
At sentencing, Gutierrez de Lopez and Cabral Ramirez each face a maximum penalty of ten years in prison. They remain on conditions of release pending their sentencing hearings, which have yet to be scheduled.
The case was investigated by the Albuquerque office of the FBI and the U.S. Border Patrol with assistance from the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Norman Cairns and Special Assistant U.S. Attorney Raquel Ruiz-Velez.
Federal and State Officials Talk to Greenbrier, Mercer Students About Drugs and BullyingRead the Press Release
Officials also caution students about posting personal information on the Internet
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, U.S. Marshal John Foster and West Virginia National Guard Major Gen. James Hoyer today met with faculty members and students from Western Greenbrier Middle School in Greenbrier County, W.Va. and Bluefield Middle School in Mercer County, W.Va., to talk about the dangers of illegal drug abuse, and especially prescription drugs. The three officials also spoke to students and faculty at both schools about safely using the Internet and social media, as well as school bullying.
Prescription drug abuse is one of the leading causes of crime in the Southern District of West Virginia and the leading cause of death among the nation’s teen population.
Greenbrier and Mercer Counties have been particularly hard-hit by the prescription drug crisis.
“As a prosecutor, I see hundreds of people every year who’ve thrown away their lives over drugs,” U.S. Attorney Booth Goodwin said. “If we can persuade even one of these kids to stay off that path, it’ll make all the difference in the world to that person’s life. It’s vitally important to get out the message about the tragic consequences of drug abuse.”
Goodwin continued, “My paramount goal as a prosecutor is to prevent crimes from happening in the first place. Educating students about positive choices is essential to making our communities safer.”
The officials also noted that roughly 60% of school bullies end up in prison by the time they reach their twenties.
U.S. Marshal John Foster, who spoke to students about the harmful effects of bullying, said, “The point that I continually re-emphasize to students is that choices in life matter.”
Foster continued, "A person being put down or bullied today could very well grow up to work in a position to help others later in life.”West Virginia National Guard Major Gen. Jim Hoyer said, “The students have to understand the importance of making wise choices. Making poor choices or getting involved in illegal drugs will most certainly inhibit success and opportunities.”
U.S. Attorney Goodwin, U.S. Marshal Foster and Maj. Gen. Hoyer have visited numerous schools in the 23-county Southern District of West Virginia over the past year as part of ongoing awareness initiative led by the U.S. Attorney’s Office to educate faculty and students about the dangers of prescription drug abuse and other issues.
Fairfield County Couple Charged with Smuggling Infant from Guatemala into the United StatesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that MARIA GONZALEZ, 42, of Stamford, and her husband, HENRY FERNANDO LOPEZ, 36, of Fairfield, have been charged in a federal criminal complaint with conspiring to smuggle an infant from Guatemala into the United States. GONZALEZ, who is a citizen of Argentina and a lawful permanent resident of the U.S., is also charged with passport fraud offenses.
GONZALEZ appeared on April 16 before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport and was released on a $100,000 bond. LOPEZ is currently being sought by law enforcement.
As alleged in the complaint, GONZALEZ traveled to Guatemala in March 2009 and met with a pregnant girl who was 14-years-old at that time. The birth mother agreed to give her child to GONZALEZ, and GONZALEZ agreed to pay for the birth mother’s delivery and some additional costs. The child was born on April 18, 2009, and the birth mother gave the child to GONZALEZ and LOPEZ.
The complaint further alleges that GONZALEZ visited the U.S. Embassy in Guatemala City after the child’s birth and attempted to acquire travel documents for the infant, but was unsuccessful as she was not able to provide the necessary medical documents demonstrating that she was the mother of the infant. GONZALEZ subsequently made contact with an individual in Guatemala, provided him with the child’s photo and date of birth and, in exchange for $6,000, received a fraudulent U.S. passport in the child’s name.
GONZALEZ and the child, using the fraudulent passport, entered the U.S. at the Port of San Ysidro in California on July 14, 2009.
GONZALEZ and LOPEZ are charged with bringing into the U.S. and harboring an alien child, an offense that carries a maximum term of imprisonment of 10 years, and conspiring to do so, an offense that carries a maximum term of imprisonment of five years. In addition, GONZALEZ is charged with misuse of a U.S. passport, and forgery or false use of a passport, offenses that carry a maximum term of imprisonment of 10 years on each count.
The child has been in the custody of the Connecticut Department of Children and Families since October 2012.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the U.S. Department of State, Bureau of Diplomatic Security in Connecticut and its Regional Security Office at the U.S. Embassy in Guatemala City, Guatemala. The case is being prosecuted by Assistant United States Attorney Krishna R. Patel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Erie Man Pleads Guilty to Cocaine ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal drug laws, United States Attorney David J. Hickton announced today.
Sylvester Tate, 50, pleaded guilty to two counts before United States District Judge Sean J. McLaughlin.
In connection with the guilty plea, the court was advised that Tate possessed with intent to distribute and distributed approximately seven grams of cocaine on two occasions.
Judge McLaughlin scheduled sentencing for August 21, 2013 at 10:00 a.m. The law provides for a total sentence of 40 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Tate on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation conducted the investigation that led to the prosecution of Tate.
Eagle Pass Businessman Indicted in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Eagle Pass, Texas, Federal Bureau of Investigation agents along with Texas Department Public Safety agents arrested 35-year-old Hipolito Amaya, owner of AM-ROD Construction based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed today, charges the Amaya with one count of paying a bribe to an agent of an organization receiving federal funds. The indictment alleges that in May 2011, Amaya submitted a $35,800 bid to Maverick County to construct a concrete sidewalk on Lago Vista in Precinct 4 of Maverick County. Maverick County issued him a $17,900 check to commence work and then a $17,900 check for the completion of the sidewalk. The indictment alleges that Amaya made cash payments to two Maverick County employees so that he could be paid in full for a project he never completed. Additionally, Amaya is alleged to have never constructed the sidewalk he was paid to build.
Upon conviction, Amaya faces up to ten years in federal prison.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Dr. David G. Millaud Sentenced for Defrauding the Small Business AdministrationRead the Press Release
DR. DAVID G. MILLAUD, age 52, a resident of New Orleans, Louisiana, was sentenced today by U.S. District Court Judge Eldon E. Fallon to three years probation, after previously pleading guilty to theft of government funds in connection with a disaster loan that he received from the Small Business Administration, announced U.S. Attorney Dana J. Boente. MILLAUD was further ordered to pay restitution in the amount $56,449.91 to the Small Business Administration.
According to court documents, MILLAUD submitted false invoices to the Small Business Administration in order to support his request for a loan disbursement. As a result of the false invoices, MILLAUD received a loan disbursement totaling $56,449.91in government funds to which he was not entitled.
The case was investigated by the U. S. Department of Housing and Urban Development, Office of the Inspector General, Small Business Administration, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
Devils Lake Man Sentenced for Assaulting a Bureau of Indian Affairs OfficerRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 18, 2013, Gavin Leesen Little of Fort Totten, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of assaulting, resisting, opposing and impeding a federal officer.
Little, 26, pleaded guilty on Jan. 24, 2013, to urinating on a Bureau of Indian Affairs Corrections Officer while the officer was transporting Little to the Devils Lake Regional Law Enforcement Center. The incident occurred in August of 2012 on the Spirit Lake Indian Reservation.
Judge Erickson sentenced Little to 20 months’ imprisonment to be followed by three years of supervised release. Little was ordered to pay a $100 special assessment to the Crime Victim’s Fund. In addition, Judge Erickson also sentenced Little to 14 months’ imprisonment for violating the terms of his supervised release. Little was on supervised release for a previous conviction on a charge of sexual abuse of a minor at the time of this incident. This 14-month revocation sentence is to be served concurrently with the 20-month assault sentence.
The case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Delaware Resident Charged with Illegal ReentryRead the Press Release
Jose Manuel Bernal-Castanera, a/k/a “Pepe Ayala Trevino,” 28, of New Castle, Delaware, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 12, 2012, Bernal-Castanera, a native and citizen of Mexico, was found in the United States after having been deported from the United States on or about December 16, 2008, December 26, 2008, December 2, 2011, March 1, 2012, and June 6, 2012.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Delaware Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – James Powell, 48, of Bridgeville, Del., pled guilty today to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Powell entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton is to sentence him on July 11, 2013. Powell faces a statutory maximum sentence of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and a maximum of 20 years and a minimum of 10 years of imprisonment for possession of child pornography, as well as fines of up to $250,000 on each count.
According to the government's evidence, on Sept. 10, 2012, Powell contacted an undercover officer with the FBI's Child Exploitation Task Force, who had entered a social network site frequented by individuals with a sexual interest in children. Over the next few days, the defendant engaged in online e-mail, instant message, and text message conversations with the undercover officer, whom the defendant believed was the father of an under-aged girl. During this period of time, Powell arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. During the course of their communications, Powell also sent the undercover officers two images of child pornography.
On Sept. 12, 2012, Powell traveled from Delaware to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. He has been in custody ever since.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-139Darryl Jasmin Sentenced for Distribution of Crack CocaineRead the Press Release
DARRYL JASMIN, age 28, a resident of Edgard, Louisiana, was sentenced today to 60 months incarceration by the U.S. District Court Judge Mary Ann Vial Lemmon, announced U.S. Attorney Dana J. Boente. Judge Lemmon ordered that JASMIN be placed on 4 years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
On January 10, 2013, JASMIN pled guilty to two counts of an indictment which charged him with distribution of 28 grams or more of crack cocaine on two separate dates, April 12, 2012 and April 20, 2012.
The case was investigated by the Drug Enforcement Administration, St. James Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney Sean Toomey.
Cristian Edgardo Mejia-diaz Sentenced for Illegal ReentryRead the Press Release
CRISTIAN EDGARDO MEJIA-DIAZ, age 26, a citizen of El Salvador, was sentenced today to approximately five months imprisonment by U. S. District Judge Nannette Jolivette Brown, announced U.S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Brown ordered that MEJIA-DIAZ be placed on one year of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on January 10, 2013, MEJIA-DIAZ pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found on November 13, 2012, in the United States, in Jefferson Parish, Louisiana without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations with the assistance of the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Commercial Marijuana Businesses in City of Santa Ana Targeted with Justice Department Warning Letters and Asset Forfeiture LawsuitsRead the Press Release
LOS ANGELES – In the latest of a series of federal enforcement actions against the commercial marijuana industry in California, federal authorities today moved against 63 illegal marijuana stores in the City of Santa Ana.
In federal court this morning, prosecutors filed three asset forfeiture lawsuits against properties in Santa Ana where a total of seven marijuana stores are currently operating. Authorities also executed federal search warrants at two of the stores involved in the asset forfeiture actions. Additionally, prosecutors sent warning letters to people associated with 56 other stores not involved in the forfeiture actions. The federal actions involve all known marijuana stores in the City of Santa Ana.
The federal actions in Santa Ana were done in cooperation with the Santa Ana Police Department and the Santa Ana City Attorney’s Office.
The three civil asset forfeiture complaints filed this morning in United States District Court target three properties in Santa Ana where seven marijuana stores are currently operating. The civil lawsuits state: “Under federal law, the distribution of marijuana (a Schedule I controlled substance under Title 21) is prohibited except under very limited circumstances not applicable here. The government is informed and believes that at all times relevant to this complaint, the operation of the [marijuana stores] on the defendant property was not (and is not) permitted under California law.”
The forfeiture lawsuits allege that the owners of the properties knowingly allowed commercial marijuana stores to operate. The buildings named in the asset forfeiture lawsuits currently house:
GLC (or the Green Love Collective, currently in a suite that formerly housed a store called Old Remedies) and The Dispensary Store, which are operating in a building at 1638 East 17th Street, a property owned by chiropractor Mark Burcaw, and previously have been the subject of administrative citations issued by the city;
SoCal Compassion, Club Meds and Well Greenz, which are located in a building at 1651 East Edinger, another building owned by Burcaw, and are illegal marijuana operations that prompted Santa Ana to file a civil lawsuit last year seeking injunctive relief against Burcaw and the three marijuana stores; and
J Pacific Life (which is located in a suite that formerly housed marijuana stores called Saddleback Meds and The Natural Alternative) and Healing OC, which operate out 1665 East 4th Street and have been the subject of numerous warnings and administrative citations from the City of Santa Ana.
In conjunction with the filing of the asset forfeiture complaints, the United States Attorney’s Office today mailed out letters to the property owners and operators of 56 marijuana stores that are either currently operating or were recently closed in Santa Ana. The warning letters give the operators and landlords 14 days to come into compliance with federal law or risk potential civil or criminal actions.
The Drug Enforcement Administration executed two federal search warrants this morning with the assistance of the Santa Ana Police Department at J Pacific Life and Healing OC.
Today’s enforcement actions in Santa Ana follow similar actions over the past 18 months across the seven-county Central District of California. Starting in October 2011, prosecutors began filing asset forfeiture lawsuits and sending letters to marijuana operations in selected areas in the Central District of California (see, for example, http://www.justice.gov/usao/cac/Pressroom/2012/129.html).
With the lawsuits filed this morning, the United States Attorney’s Office has filed a total of 30 asset forfeiture complaints against properties housing illegal marijuana operations in the district. Eighteen of those actions have been resolved with the closure of the marijuana stores and consent decrees. In some cases, consent decrees required property owners to disgorge rent payments made by a marijuana store operator, and in all cases the consent decrees required the property owners to agree, among other things, that they would no longer rent to people associated with illegal marijuana operations or the property would be subject to an immediate forfeiture to the government.
Including today’s efforts in Santa Ana, federal enforcement actions – asset forfeiture lawsuits, warning letters and related activity – have now targeted more than 525 illegal marijuana businesses in the Central District of California. The majority of those businesses previously targeted are now closed, are the subject of eviction proceedings by landlords, or have been the subject of additional federal enforcement actions.
In October 2011, the four United States Attorneys in California announced the coordinated enforcement actions targeting illegal marijuana cultivation and trafficking (see: http://www.justice.gov/usao/cac/Pressroom/2011/144a.html).
The United States Attorney’s Office is working in Santa Ana with the Drug Enforcement Administration, IRS - Criminal Investigation, the Santa Ana Police Department and the Santa Ana City Attorney’s Office.
Release No. 13-053
Charlotte Neurologist Will Pay $2 Million to Settle Civil Fraud AllegationsRead the Press Release
CHARLOTTE, N.C. – A Charlotte neurologist has agreed to pay $2 million plus interest to the United States to settle civil fraud allegations, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hemanth P. Rao, MD, is the owner of and principal neurologist at The Neurological Institute in Charlotte, formerly known as Neurological Consultants of the Carolinas.
U.S. Attorney Tompkins is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
The settlement was reached following a multi-year investigation by HHS-OIG into Dr. Rao’s practices associated with the administration of intravenous immunoglobulin (IVIG) therapy. Government investigators found that from October 13, 2003 to May 26, 2006, Dr. Rao failed to meet the Medicare supervision regulations associated with IVIG therapy. IVIG is the delivery of healthy immunoglobulins directly into the bloodstream of patients suffering from immunodeficiency and autoimmune disorders. IVIG therapy involves the injection of a thick, viscous fluid into the veins of patients throughout a period of several hours. The Medicare program requires that the patient’s physician directly supervise the administration of this treatment in order to ensure the safety of the patient. Investigators found that Dr. Rao sought and obtained reimbursement for his IVIG therapy services from Medicare even though he was not present in the building with his patients when they were receiving IVIG treatment, as required by Medicare.
The Settlement Agreement also requires that Dr. Rao pay an additional $500,000 to Medicare upon the sale of his real estate holdings. Furthermore, Dr. Rao entered into a five-year Integrity Agreement with HHS-OIG to promote compliance with the statutes, regulations, program requirements, and written directives of Medicare, Medicaid, and all other federal health care programs.
In making today’s announcement U.S. Attorney Tompkins stated, “Dr. Rao’s actions not only compromised the integrity of the Medicare program, but exposed his patients to potential danger. I commend HHS-OIG for their thorough investigation and for their continued efforts to protect Medicare, an important health care program seniors rely upon to cover their health care needs.”
“Dr. Rao allowed his staff to practice a potentially hazardous procedure on Medicare patients, without his supervision, then blatantly charge taxpayers,” said Derrick Jackson of the HHS-OIG region including North Carolina. “Citizens of this State can continue to look toward U.S. Attorney Tompkins to vigorously pursue providers who shortcut Medicare regulations in exchange for profit.”
The investigation was conducted by HHS-OIG in Greensboro. Assistant United States Attorney Don Caldwell handled the case for the United States Attorney’s Office.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistleblower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Cambria County Man Pleads Guilty in Scheme to Defraud the U.S.Read the Press Release
JOHNSTOWN, Pa. - A resident of Vintondale, Pa., pleaded guilty in federal court to a charge of conspiracy United States Attorney David J. Hickton announced today.
Alvin Miller, 60, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from June 9, 2007, to April 15, 2008, Miller conspired with others to defraud the United States by assisting a co-conspirator in concealing money from the Internal Revenue Service in order for the co-conspirator to avoid paying income tax.
Judge Gibson scheduled sentencing for Oct. 10, 2013, at 9:30 a.m. The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, the Internal Revenue Service Criminal Investigation and Ebensburg Borough Police Department conducted the investigation that led to the prosecution of Miller.
Brothers Sentenced for Drug Conspiracy and DistributionRead the Press Release
TONTA J. OCTAVE, age 34, and his brother KAVIS OCTAVE, age 31, both residents of Vacherie, Louisiana, were sentenced today by U.S. District Court Judge Lance M. Africk, announced U.S. Attorney Dana J. Boente. TONTA OCTAVE was sentenced to 120 months in the custody of the Bureau of Prisons, followed by a term of 8 years supervised release. TONTA OCTAVE will also be required to pay a special assessment fee of $200. KAVIS OCTAVE was sentenced to 90 months in the custody of the Bureau of Prisons and a term of 4 years of supervised release. KAVIS OCTAVE was ordered to pay a $400 special assessment fee.
In November 2012, the OCTAVE brothers were found guilty in four (4) counts of a five (5) count third superseding indictment for conspiracy to possess and distribute cocaine base (“crack”) by a federal jury after a two-day trial. Among other things, the jury heard testimony that on three separate occasions in March and May of 2012, KAVIS and TONTA OCTAVE, alone and/or working together, sold between one and two ounces of cocaine base (“crack”) to a Drug Enforcement Administration cooperating informant. These drugs sales were captured on audio-video recordings. In addition, at the time of TONTA OCTAVE’s arrest for these crimes, he was found attempting to flee his residence in a vehicle and had with him $25,747 in cash that had been kept in a freezer and was still ice cold. That money was forfeited to the government as drug proceeds at the conclusion of the trial.
The case was investigated by the Drug Enforcement Administration, St. James Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys Sean Toomey and Andre Lagarde.
Brooklyn Man Sentenced for Money LaunderingRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michael Kardonick, 58, of Brooklyn, N.Y., who was convicted of conspiracy to commit money laundering, was sentenced to 120 months in prison and ordered to pay restitution in the amount of $2,164,059 by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between January 2004 and July 2008, the defendant participated in a scheme to defraud investors who had invested approximately $2.5 million in international currency trading investments through the company Atwood & James S.A. During the course of the scheme, the defendant used the mail and wire communications to facilitate the execution of the fraud, using the illegally obtained investor proceeds to promote the scheme, in violation of the federal money laundering provisions.
This law enforcement action is part of President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin M. Niland, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch.Batavia Man Pleads Guilty to Transporting Individual in Interstate Commerce to Engage in Illegal Sexual ActivityRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Timothy Logsdon, 29, of Batavia, N.Y., pleaded guilty before U.S. District Judge Richard H. Arcara, to transporting an individual in interstate commerce for the purpose of engaging in illegal sexual activity. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that an investigation began in September 2012 when the parents of a 16 year old female reported her missing to the Genesee County Sheriff’s Department. During an interview with Special Agents from the FBI, the victim’s parents indicated that she might be with the defendant.
Pursuant to a court order, law enforcement officers traced Logsdon's cellular telephone to a specific vicinity. Later that same day, the defendant was discovered by the Kentucky State Police in Bowling Green, Kentucky, along with the victim. Logsdon admitted to officers that he was in the process of transporting the victim to the state of Tennessee where the two planned to live together and carry on a relationship. The defendant was placed under arrest and remains in custody.
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.The arrest is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Genese County Sheriff's Department, under the direction of Sheriff Gary Maha
Sentencing is scheduled for Aug. 5, 2013 at 1:00 p.m. before Judge Arcara.Alleged Pizza Shop Robber ChargedRead the Press Release
Stephen Easterling, 28, of Philadelphia, Pennsylvania was charged today by Indictment with robbing a Philadelphia pizza shop on February 1, 2013. Easterling is charged with one count of Hobbs Act Robbery, one count of using a firearm during a crime of violence, and one count of convicted felon in possession of firearm, announced United States Attorney Zane David Memeger. The defendant allegedly robbed the Little Caesars Pizza shop at 2501 Island Avenue in Philadelphia, PA.
If convicted, defendant faces a mandatory minimum of seven years in prison with a maximum possible sentence of life, consecutive to any other sentence, five years of supervised release, a $750,000 fine, restitution, and a $300 special assessment.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525
Wednesday 17 April 2013
Washington, DC Man Sentenced to 120 Months for Conspiracy and Aggravated Identity TheftRead the Press Release
ALEXANDRIA, Va. – Benjamin F. Weatherly, 31, of Washington, DC, was sentenced
today to a total of 120 months in prison, followed by 2 years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. Weatherly was also ordered to forfeit and pay restitution in the amount of $110,495.57.Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Gary R. Barksdale, Postal Inspector in Charge of the U.S. Postal Inspection Service Washington Division, made the announcement after sentencing by United States District Judge Anthony J. Trenga.
According to court documents, Weatherly conspired with others to obtain and use, without lawful authority, credit cards and credit card convenience checks issued to other people. The conspirators obtained these credit cards and credit card convenience checks by stealing mail. Weatherly and his co-conspirators also used stolen personal identifying information to apply for and obtain additional credit cards. The conspirators deposited fraudulently executed stolen credit card convenience checks into bank accounts that they controlled. Further, they used the stolen and fraudulently obtained credit cards to make purchases in the Eastern District of Virginia and elsewhere. Weatherly and his conspirators also filed fraudulent tax returns, caused fraudulent tax refunds to be issued in the name of at least one individual whose mail they had stolen, and deposited the returns into a fraudulently opened bank account. On January 3, 2013, Weatherly pleaded guilty to two counts of an indictment charging him with conspiracy to commit bank fraud and aggravated identity theft.This case was investigated by the United States Postal Inspection Service. Special Assistant United States Attorney Kyle Maurer, Assistant United States Attorney Kosta S. Stojilkovic, and former Special Assistant United States Attorney Stacy L. Bogert prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.U.S. Sues Cook County and County Pension Fund to Enforce the Employment Rights of Army Reserve MemberRead the Press Release
CHICAGO – The United States today filed a civil lawsuit alleging that a Cook County pension fund and Cook County willfully violated federal law by failing to allow a U.S. Army Reserve member to lawfully contribute to her pension for the time she was serving in the armed forces, announced Gary S. Shapiro, United States Attorney for the Northern District of Illinois and the Justice Department.
The lawsuit was filed in U.S. District Court in Chicago on behalf of Army Reserve Capt. Latoya A. Hayward, of Chicago, against the Cook County and the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County. It alleges violation of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
According to the complaint, in 2008 Hayward began working for John H. Stroger, Jr. Hospital, which is owned and operated by Cook County. During her employment with Stroger Hospital, Hayward was mobilized for a two-year tour of duty with the Army Reserves starting on July 27, 2009. During Hayward’s period of active service, she was mobilized as a nurse case manager at Walter Reed Hospital as part of the Warrior Transition Brigade. Upon Hayward’s return from duty, the complaint alleges that the county pension fund notified her that not only was she ineligible to make payments into her pension for the 90-day grace period following her active military service, but also that her employee contributions for the two-year period of her active military service would be subject to a 3 percent interest fee. Among the protections provided by USERRA are pension-related benefits that treat service members who are called to active duty as if they have had no break in service for purpose of the administration of pension benefits. According to the complaint, both of the pension fund’s requirements for her participation in the plan violated USERRA’s pension protection provisions.
“Members of the Army Reserves sacrifice time away from their jobs to serve their country,” said Mr. Shapiro. “Federal law ensures that they are not discriminated against after they have returned and their employment rights are protected,” he said.
“When Congress enacted USERRA, it was to protect our men and women in uniform from experiencing this kind of alleged injustice,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members.”
The case stems from a referral by the U.S. Department of Labor following an investigation by the department’s Veterans’ Employment and Training Service. The Civil Rights Division and Assistant U.S. Attorney Jeffrey M. Hansen, are representing the government and working with the Labor Department to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life.
Additional information about USERRA can be found on the Justice Department website: servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Complaint
Twenty Defendants Charged in Separate Schemes to Defraud Immigration by Posing as Cuban CitizensRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Linda Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), Vernon Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, and Wendy Bashnan, Special Agent in Charge, Miami Field Office, U.S. Department of State’s Diplomatic Security Service (DSS), announced the filing of federal charges against twenty defendants in twenty separate cases. The cases announced today highlight the federal commitment to crack down on immigration fraud and its perpetrators.
These indictments and informations are part of Operation Havana Gateway, a response to a rising trend of immigration fraud based upon false claims to Cuban birth and citizenship. Previous investigations and convictions stemming from Operation Havana Gateway have revealed that document vendors create and sell fraudulent and fictitious Cuban birth certificates for thousands of dollars to individuals in need of immigration benefits. Subsequently, those individuals submit fraudulent applications for immigration benefits based upon a fictitious claim of Cuban birth or citizenship supported by a phony Cuban birth certificate.
U.S. Attorney Wifredo A. Ferrer stated, “Fraud cannot be the foundation of one’s pursuit of the American dream. By committing immigration fraud, these defendants sought to cheat the immigration system and those who immigrate to this country lawfully. We will continue to pursue and punish those who unfairly and fraudulently cheat the immigration system.”
“These individuals came here seeking the freedom and benefits this country provides to Cuban nationals. The operation identified and addressed a vulnerability in the application process,” said Alysa Erichs, Special Agent in Charge of HSI in Miami. “These arrests by HSI should send a clear message that we will target anyone who tries to obtain immigration benefits fraudulently.”
“USCIS is committed to ensuring the integrity of our nation’s immigration system by ensuring that only fully qualified individuals receive benefits,” said Linda Swacina, District Director for Miami and the Caribbean. “We evaluate cases individually based on the law and the facts and will refer to USCIS’ Fraud Detection and National Security Directorate (FDNS) or other appropriate authorities any case suspected of fraud or unlawful conduct.”
“This integrated effort is an example of the successful partnership between federal agencies to detect and interrupt organizations that through fraudulent activity exploit the process to obtain immigration benefits,” said Vernon Foret, Director Field Operations Miami, Customs Border Protection.
“These charges send a strong message: Diplomatic Security and our law enforcement partners are committed to making sure those who commit document fraud face consequences for their criminal actions,” said Wendy Bashnan, Special Agent in Charge, Miami Field Office, DSS. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and other law enforcement agencies continues to be essential in the pursuit of justice.”
The cases announced today include:
1. United States v. Miriam Licea, Case No. 13-20238-CR-Williams
Defendant Miriam Licea, 57, of Miami, was charged in a four-count indictment with assisting two people make fraudulent applications for immigration benefits based upon false claims of Cuban birth. This indictment is related to a prior case, United States v. Entrocassi, 12-20517-CR-SEITZ, indicted in 2012, in which a defendant proffered during a guilty plea that he had paid $15,000 for a fraudulent Cuban birth certificate. The indictment contains two counts of aiding and abetting two people to submit a fraudulent application for immigration benefits based upon a false claim of Cuban birth. The defendant was also charged with two counts of knowingly encouraging and inducing two aliens to reside in the United States illegally. This case is being prosecuted by Assistant U.S. Attorney Robert Watson.2. United States v. Luis Enrique Legon Mena, Case. No. 13-60066-CR-Zloch
Defendant Luis Enrique Legon Mena, 44, of Miramar, was charged in a five-count indictment with conspiring to encourage aliens to reside in the United States illegally, and four counts of knowingly encouraging and inducing four total aliens to reside in the United States illegally. This case is being prosecuted by Assistant U.S. Attorney Anita White.3. United States v. Marcos Erwin Hes Villacis, Case No. 13-20198-CR-Cooke
Defendant Marcos Erwin Hes Villacis, 50, of Miami, was charged in a two-count information with submitting a fraudulent application for legal permanent residence premised on the false claim that he was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.4. United States v. Pablo Nunez, Case No. 13-20176-CR-Williams
Defendant Pablo Nunez, 42, of Miami Beach, was charged in a one-count indictment with submitting a fraudulent application for legal permanent residence based on the false claim that he is Cuban. This case is being prosecuted by Special Assistant United States Attorney Tim Cole.5. United States v. Ana Arias, Case No. 13-20003-CR-Lenard
Defendant Ana Arias, 31, of Naples, was charged in a two-count indictment with submitting a fraudulent application for legal permanent residence based on the fictitious claim that she is Cuban. This case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.6. United States v. Gerardo Mendez, Case No. 13-60065-CR-Dimitrouleas
Defendant Gerardo Mendez, 37, of Miami, was charged in a two count indictment with seeking to naturalize fraudulently based on the false premise that he was born in Cuba. The case is being prosecuted by Special Assistant U.S. Attorney Benjamin Rosen.7. United States v. Maryori Velazquez-Guevara, Case No. 60064-CR-Cohn
Defendant Maryori Velazquez-Guevara, 44, of Davie, was charged in a two-count indictment with seeking to naturalize fraudulently based on the false premise that she was born in Cuba. The case is being prosecuted by Special Assistant U.S. Attorney Benjamin Rosen.8. United States v. Jose Ramirez, Case No. 13-60063-CR-Scola
Defendant Jose Ramirez, 45, of Sunrise, was charged in a two-count indictment with submitting a fraudulent application for citizenship based on the false claim that he was born in Cuba. This case is being prosecuted by Special Assistant U.S. Attorney Benjamin Rosen.9. United States v. Eduardo Gomez, Case No. 13-20004-CR-Cooke
Defendant Eduardo Gomez, 37, of Miami Beach, was charged in a one-count indictment with submitting a fraudulent application for legal permanent residence based on the false claim that he is Cuban. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.10. United States v. Roberto Guzman, Case No. 13-20224-CR-Ungaro
Defendant Roberto Guzman, 46, of Miami, was charged in a one-count information with submitting a fraudulent application for citizenship based on the phony claim that he was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.11. United States v. Carlos Zerpa Rodriguez, Case No. 13-20222-CR-Middlebrooks
Defendant Carlos Zerpa Rodriguez, 33, of North Miami, was charged in a two-count information with knowingly attempting to obtain citizenship unlawfully and submitting a fraudulent application for naturalization. The information alleges that the premise of the defendant’s fraudulent applications was the phony claim that he was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.12. United States v. Ferdinando Enrique Bello, Case. No. 13-80075-CR-Rosenbaum
Defendant Ferdinando Enrique Bello, 52, of Jacksonville, was charged in a two-count indictment with submitting a fraudulent application for citizenship based on the phony claim that he was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Alexandra Hui.13. United States v. Santiago Ruben Gonzalez, Case No. 13-20193-CR-King
The defendant, Santiago Ruben Gonzalez, 45, of Jacksonville, was charged in a two-count indictment with attempting to become a lawful permanent resident based on the fraudulent claim that he is Cuban. This case is being prosecuted by Assistant U.S. Attorney Alexandra Hui.14. United States v. Yohel Golsztayn, Case. No. 13-20221-CR-Williams
Defendant Yohel Golsztayn, 29, of Hollywood, is charged in a one-count information with submitting a fraudulent application for legal permanent residence. The information alleges that the premise of his application was the false and fictitious claim that his mother was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Anita White.15. United States v. Paola Lourdes Bre, Case No. 13-20225-CR-Altonaga
Defendant Paola Lourdes Bre, 37, of Miami, was charged in a two-count information with submitting a fraudulent application for legal permanent residence based on the false and fictitious claim that she was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.16. United States v. Sylvia Cruz Chicoma, Case No. 13-20223-CR-Zloch
Defendant Sylvia Cruz Chicoma, 56, of Miami, was charged in a two-count information with submitting a fraudulent application for legal permanent residence based on the false and fictitious claim that she was born in Cuba. This case is being prosecuted by Assistant U.S. Attorney Andy Camacho.17. United States v. Maura Rosario Roca Hurtado, Case No. 13-20195-CR-Martinez
Defendant Maura Rosario Roca Hurtado, 46, of Naples, was charged in a two-count indictment with submitting a fraudulent application for legal permanent residence. The indictment alleges that the basis of her application was the false and fictitious claim that her mother was born in Cuba. This case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.18. United States v. Alexandra Magdalena Canelon, Case No. 13-20196-CR-Rosenbaum
Defendant, Alexandra Magdalena Canelon, 31, of Doral, is charged in a four-count indictment with submitting fraudulent applications for legal permanent residence on two separate dates. The indictment alleges that, each time, she premised her application on the false claim that her mother was born in Cuba. This case is being prosecuted by Special Assistant U.S. Attorney Timothy Cole.19. United States v. Pablo Muro, Case No. 13-20237-CR-Moreno
Defendant Pablo Muro, 46, of Miami, was charged in a two-count information with submitting a fraudulent application for legal permanent residence premised on the false claim that he was born in Cuba. This case is being prosecuted by Assistant United States Attorney Robert Watson.20. United States v. Francisco Ramirez, Case No. 13-60081-CR-Scola
Defendant, Francisco Ramirez, 45, of Sunrise, was charged in a two-count indictment with submitting a fraudulent application for citizenship based on the false claim that he was born in Cuba. This case is being prosecuted by Special Assistant U.S. Attorney Benjamin Rosen.Defendants Gerardo Mendez, Maryori Velazquez-Guevara, Luis Enrique Legon Mena, Alexandra Magdalena Canelon, and Sylvia Cruz Chicoma are scheduled to make initial appearances in Fort Lauderdale before U.S. Magistrate Judge Barry S. Seltzer at 11:00 a.m. today. Defendants Marcos Erwin Hes Villacis, Pablo Nunez, Ana Arias, Jose Ramirez, Eduardo Gomez, Roberto Guzman, Miriam Licea, Carlos Eduardo Zerpa Rodriguez, Santiago Ruben Gonzalez, Yohel Golsztayn, Paola Lourdes Bre, Maura Rosario Roca Hurtado, Pablo Muro, and Francisco Ramirez are scheduled to make initial appearances in Miami today before U.S. Magistrate Judge Edwin G. Torres at 2:00 p.m.
An indictment or an information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Drug Traffickers Sentenced in Operation “No Quarter”Read the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced MANUEL RICARDO REYES-FLORES, 65, of Graham, North Carolina to 150 months of imprisonment followed by 5 years supervised release and a $5,000 fine, RICARDO SALVADOR FLORES-CARRASCO, 40, OF Mesa, Arizona, to 102 months of imprisonment followed by 5 years supervised release, and BOBBY KEMONI LATRAE WALLACE, 26, of Grifton, North Carolina, to 36 months of imprisonment followed by 3 years of supervised release. REYES-FLORES and FLORES-CARRASCO pled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine on December 6, 2012 and WALLACE pled guilty to conspiracy to distribute and possess with the intent to distribute cocaine on December 10, 2012.
REYES-FLORES and FLORES-CARRASCO were arrested in Greenville, North Carolina, on April 1, 2012, after federal, state and local law enforcement agents seized over 5 kilograms of methamphetamine that they were transporting from Arizona. Additional investigation revealed that REYES-FLORES was also responsible for trafficking an additional 283 grams of methamphetamine, 181 kilograms of marijuana and 5 kilograms of cocaine in North Carolina.
WALLACE was arrested in Greenville, North Carolina, on April 15, 2010, after the Greenville Regional Drug Task Force made 5 controlled purchases of approximately 290 grams of cocaine from WALLACE in March and April 2010.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $1.5 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Craven, Carteret and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Third Adams Produce Official Pleads Guilty in Federal CourtRead the Press Release
BIRMINGHAM – Former Adams Produce Chief Executive Officer SCOTT DAVID GRINSTEAD pleaded guilty today in federal court to fraud against the company, failure to report a felony against the government and failure to file federal income tax returns, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.
Grinstead, 45, of Birmingham, entered his plea before U.S. District Judge Karon O. Bowdre. His sentencing is scheduled Aug. 21.
Federal prosecutors charged Grinstead in January, and he entered a plea agreement with the government at that time. As part of that agreement, Grinstead must pay $450,000 in restitution to the bankruptcy estate of Adams Produce for the benefit of the company’s employees who were not fully paid because of Adams’ abrupt closing and its filing for bankruptcy last year.
Grinstead is the third Adams Produce official to plead guilty to federal charges in connection with fraud at the Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years.
DAVID ANDREW KIRKLAND, 44, formerly of Birmingham and now living in Texas, pleaded guilty in March before U.S. District Judge Abdul Kallon to conspiracy to defraud the federal government of several hundred thousand dollars through a scheme to create false invoices and purchase orders. Kirkland is scheduled for sentencing June 27.
Kirkland, director of purchasing for Adams Produce, was charged in the same purchasing fraud scheme as CHRISTOPHER ALAN PFAHL, a purchasing program specialist for Adams. Kirkland was Pfahl’s supervisor. Pfahl, 41, of Birmingham, pleaded guilty in January to conspiracy to defraud the government of $481,000 on produce contracts.
Pfahl and Kirkland engaged in a scheme to create false records that reflected a higher purchasing cost for fruits and vegetables than the company actually paid. The inflated costs were then presented to the U.S. Government, which had agreed to pay a certain amount over Adams’ cost for produce.
The federal government, through the Defense Supply Center Philadelphia, was one of Adams’ customers. The supply center contracted with Adams Produce to provide fresh fruits and vegetables to military bases, public school systems, junior colleges and universities. Adams Produce entered into contracts with the government worth millions of dollars, according to court records.
Grinstead pleaded guilty to misprision of a felony for knowing of the fraud Pfahl and Kirkland were engaged in and allowing it to continue and end slowly, so as to avoid raising red flags with the government, rather than stopping it immediately and reporting it to authorities.
Grinstead also pleaded guilty to wire fraud for wiring hundreds of thousands of dollars from an Adams Produce account to American Express to pay for clothing, jewelry, personal travel for himself and his family, lawn care at his home, and items for a house on Lake Martin. He pleaded guilty to two counts of failure to file a federal tax return, one for 2009 and one for 2010. According to court records, Grinstead had a gross income of about $748,801 for the 2009 calendar year and willfully failed to file an income tax return with the Internal Revenue Service. In 2010 he received about $1,878,700 in gross income and willfully did not file a return with the IRS.
The FBI and the IRS investigated the cases, which are being prosecuted by Assistant U.S. Attorney George A. Martin Jr.
Stratford Man Pleads Guilty to Tax Evasion ChargeRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that LENWORTH HAYNES, 55, of Stratford, waived his right to indictment and pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, HAYNES was employed as a cook at a nursing home in Trumbull and, since approximately 1996, operated his own tax preparation business. From 2006 to 2008, HAYNES evaded his personal federal income taxes by failing to declare income he earned from his tax preparation business. During those three years, HAYNES should have reported total taxable income of $255,071.38. Instead, he reported taxable income of negative $3,761, resulting in a loss to the government of $82,704.
Judge Underhill has scheduled sentencing for July 10, 2013, at which time HAYNES faces a maximum term of imprisonment of five years and a fine of up to $100,000. HAYNES also has agreed to pay back taxes, plus interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Susan L. Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Stolen Funds Returned to TaxpayersRead the Press Release
Gulfport, Miss. -- The United States Attorney’s Office for the Southern District of Mississippi has returned over $1 million of forfeited money to the Federal Emergency Management Agency, announced U.S. Attorney Gregory K. Davis. The forfeited funds were seized from Roger Joe Ladner, 56, of Kiln, Mississippi, in conjunction with his prosecution for a bribery conspiracy and theft of government funds. These funds were forfeited to the United States because they were paid to Ladner as a result of his scheme to defraud Hancock County and FEMA.
Roger Joe Ladner was formerly employed with Hancock County, Mississippi, as the road superintendent. Following Hurricane Katrina, he was given authority by the board of supervisors to award contracts on a ditch cleaning project funded by FEMA. In exchange for awarding the contracts to certain contractors, including two of his brothers, Ladner unlawfully accepted money in the amount of approximately $1.2 million. Sharon Ladner admitted to falsifying documents in connection with a federal investigation by creating a false invoice in the name of her company, Sharon Construction, in an effort to conceal the bribery conspiracy from federal investigators.
Roger Joe Ladner was sentenced to 60 months in prison followed by three years of supervised release for conspiracy to commit bribery. He was also ordered to pay a $25,000 fine and restitution of $1,134,538 to FEMA. The Court entered a final order of forfeiture directing that the $1.2 million dollars seized be forfeited to the United States government.
Sharon Frances Ladner was sentenced to 24 months in prison followed by two years of supervised release for falsifying documents in connection with a federal investigation. She was also ordered to pay a $15,000 fine.
Billy Wayne Ladner was sentenced to 39 months in prison followed by two years of supervised release for theft of government funds. He was ordered to pay restitution of $590,058 to FEMA.
Donald Ray Ladner was sentenced to six months in prison followed by six months of home confinement with electronic monitoring, and two years of supervised release, for theft of government funds. He was ordered to pay restitution of $291,790 to FEMA.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Mississippi State Auditor’s Office. It was prosecuted by Assistant U.S. Attorney Ruth Morgan.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Six North Texans Indicted in Mortgage Fraud ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – Six North Texans have been indicted and arrested in connection with a mortgage fraud conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A five-count indictment was returned by a federal grand jury on Apr. 12, 2013 charging the following individuals with conspiracy to commit mail and wire fraud:
Lawrence Michael Day, 63, of Fort Worth
Donna Shirley Cobb, 52, of Aledo, Texas
Bryan Jerome Scott, 42, of Spring, Texas
Michael Jerome Edwards, 40, of Flower Mound/Lewisville, Texas
Scott Cameron Sherman, 37, of Mansfield, Texas
Donald Lee Mattox, 40, of Mansfield, TexasThe indictment alleges that from Sep. 2005 through July 2008, the defendants conspired with each other to defraud lending institutions by obtaining mortgage loans using fraudulent information. According to the indictment, the defendants devised a scheme in which Day recruited buyers, such as Mattox, to submit fraudulent loan applications for home mortgages. To facilitate the scheme, Edwards and Scott, loan officers, falsified materials including employment and rental income on loan applications. Builders, such as Sherman and Mattox, permitted the actual purchase price of the homes to be overstated on the loan documents. Cobb, an escrow officer, prepared fraudulent documents reflecting false purchase prices and disbursements. The conspiracy extended to transactions on 28 Texas residential properties located in Fort Worth, Frisco, Fairview, Dallas, McKinney, Cedar Hill, Prosper, Cresson, Watauga, Euless, Hurst, Heath, Murphy, and Plano. Day, Edwards and Sherman are also charged with two counts of wire fraud and Day is charged with two counts of aggravated identity theft.
The defendants are scheduled to make initial appearances this afternoon before U.S. Magistrate Judge Amos Mazzant.
If convicted of the conspiracy charge, the defendants each face up to 30 years in federal prison. The wire fraud charges also carry a maximum penalty of 30 years in federal prison. The identity theft charges carry a penalty of two additional years in federal prison.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being investigated by the FBI and the FHFA-OIG and prosecuted by Assistant U.S. Attorney Chris Eason.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Romanian National Sentenced for Obtaining A Visa by FraudRead the Press Release
BOISE – Romanian national Stefan Csaba Csep, 32, currently living in Ketchum, Idaho, was sentenced today for obtaining a visa by fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Csep to two years’ probation and imposed a $500 fine. Csep will be subject to immigration enforcement action by U.S. Immigration and Customs Enforcement (ICE). Csep pleaded guilty to the charge in January 2013.
According to the plea agreement, Csep entered into a fraudulent marriage with a United States Citizen in 2005, with the sole purpose of evading immigration laws and obtaining immigration benefits. According to court documents, Csep did not reside with the individual he married. Following the marriage, he filed paperwork with the Department of Homeland Security/Citizenship and Immigration Services (USCIS), seeking lawful permanent resident status based on his fraudulent marriage to a U.S. citizen. USCIS subsequently approved the application and Csep was granted a lawful permanent resident visa.
As a result of his conviction, Csep will be administratively removed to his native country of Romania, and will be prohibited from entering the United States in the future.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Rochester Man Pleads Guilty to Illegally Transporting and Selling Georgia Firearms to Rochester FelonsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Paul Davis, 48, of Rochester pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to conspiracy to unlawfully engage in the business of firearms dealing without a license, including interstate transportation of firearms, sale of firearm to a convicted felon, and possession of a firearm by a convicted felon. The charges carries a maximum penalty of 25 years in prison, a fine of $750,000 or both. As part of the plea agreement, the defendant agreed to forfeit 10 firearms along with various rounds of ammunition seized at his business and residence in Rochester, N.Y.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that between August 2012 and February 6, 2013, Davis traveled to the Atlanta, Georgia area for the purpose of acquiring firearms for illegal re-sale on the black market in Rochester. In Georgia, Davis obtained multiple firearms and rounds of ammunition from Liddon Young. Davis then transported the firearms and ammunition by vehicle himself, or arranged their vehicular transportation by others, to Rochester. Once in Rochester, Davis re-sold the firearms and rounds of ammunition to individuals that the defendant knew or had reasonable cause to know, were felons and/or involved in drug trafficking. Davis was arrested February 6, 2013 after selling a Georgia pistol to a confidential informant. Multiple federal search warrants executed that night resulted in the seizure of 10 firearms and hundreds of rounds of ammunition at locations controlled by Davis.
Liddon Young was arrested and charged by criminal complaint with multiple gun charges in February 2013.
“Our office is committed to closing the pipeline that allows criminals to fill the streets of our community with illegal firearms,” said U.S. Attorney Hochul. “As in this case, we will continue to work closely with our partners at all levels of government to stem the flow of these guns which often times are used to inflict violence in our neighborhoods.”
The conviction is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives under the direction of Special Agent in Charge Joseph A. Anarumo, and the Rochester Police Department, under the direction of Chief James M. Sheppard.
Sentencing is scheduled for September 4, 2013 at 9:30 pm before Judge Geraci.
Rio Rancho Man Sentenced to Eight and A Half Years in Federal Prison for Violating the Federal Firearms LawsRead the Press Release
Convicted of Stealing Firearms from Rio Rancho Armory in July 2012ALBUQUERQUE – Christopher Rooks, 30, of Rio Rancho, N.M., was sentenced yesterday to 102 months in federal prison followed by three years of supervised release for violating the federal firearms laws. Rooks’ sentence was announced by U.S. Attorney Kenneth J. Gonzales, Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Robert Boone of the Rio Rancho Police Department.
Rooks was arrest on Aug. 9, 2012, on a criminal complaint charging him with being a felon in possession of a firearm after ATF agents and officers of the Rio Rancho Police Department executed a search warrant at his residence and seized six firearms. At the time, Rooks was prohibited from possessing firearms or ammunition because he previously had been convicted of two felony offenses in California.
Rooks subsequently was indicted and charged with possession of stolen firearms, possession of an unregistered firearm (a silencer), stealing firearms from a federal firearms licensee, and being a felon in possession of firearms.
On Dec. 28, 2012, Rooks pleaded guilty to Counts 2 and 3 of the indictment, charging him with possession of an unregistered firearm and stealing firearms from a federal firearms licensee. In entering his guilty plea, Rooks admitted possessing an unregistered silencer on Aug. 9, 2012. Rooks also admitted that on July 25, 2012, he stole five firearms from a federal firearms licensee doing business as the Rio Rancho Armory.
This case was investigated by the Albuquerque office of the ATF and the Rio Rancho Police Department and was prosecuted by Assistant U.S. Attorney David M. Walsh.
Ringleader Sentenced to Federal Prison for Stealing and Reselling U.S. Military GoodsRead the Press Release
In Waco this afternoon, 62-year-old Michael Bartch, Sr., was sentenced to two years in federal prison for a scheme to resell millions of dollars worth of U.S. military property stolen from Fort Hood and other U.S. military installations announced United States Attorney Robert Pitman and Internal Revenue Service – Criminal Investigation Special Agent in Charge Steve McCollough.
In addition to the prison term, United States District Judge Walter S. Smith ordered that Bartch pay a $2,000 fine and be placed under supervised release for a period of two years after completing his prison term.
On March 29, 2012 Bartch pleaded guilty to one count of illegally exporting defense articles, one count of receiving stolen Government property and one count of money laundering. By pleading guilty, Bartch admitted that beginning in 2007, he knowingly violated U.S. export laws by selling stolen U.S. military equipment. Bartch admitted selling night vision equipment, optics for weaponry, body armor, helmets, military clothing and other items. As a result of the scheme, authorities believe that Bartch and others dealt with in excess of $7 million worth of stolen U.S. military property.
Seven other individuals, all convicted on federal charges resulting from this investigation, have previously been sentenced to terms ranging from six months incarceration to 120 months in federal prison. Charges included receipt of stolen government property, money laundering, illegal export of defense articles, conspiracy, theft of government property and felon in possession of a firearm.
IRS Special Agent in Charge Steve McCollough commented that, “Government employees, both active duty military personnel and their civilian counterparts, like Bartch and his criminal associates, have a sworn duty to protect the assets of the government and to ensure that the governments valuable resources are not stolen. The potentially sensitive military property stolen by these individuals could be used against the US by its enemies. IRS Criminal Investigation plays a crucial role with its law enforcement partners in bringing these individuals to justice.”
This continuing investigation is being conducted by the Central Texas Counter Proliferation Task Force made up of the Internal Revenue Service-Criminal Investigation, Defense Criminal Investigative Service, U.S. Naval Criminal Investigative Service, Homeland Security Investigations, U.S. Army Criminal Investigative Division, Department of Commerce, Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Gregg N. Sofer prosecuted this case on behalf of the Government.Ranking Member of Mexican Mafia, Who Supplied Methamphetamine from Lubbock to San Angelo, Is Sentenced to 30 Years in Federal PrisonRead the Press Release
SAN ANGELO, — Eric Cortez Flores, 32, a ranking member of the Mexican Mafia, was sentenced today by U.S. District Judge Sam R. Cummings to 360 months in federal prison, following his guilty plea in November 2012 to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Flores was the Mexican Mafia’s methamphetamine supplier from Lubbock to San Angelo, Texas.
According to documents filed in the case, in February 2011, agents with U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), received information that a known narcotics trafficker would be traveling to San Angelo from Del Rio, Texas. The investigation revealed that this individual went to Eric Cortez Flores’ residence on Montague in San Angelo. In addition, on several occasions, law enforcement officers encountered individuals with methamphetamine who were connected with Flores and learned that Flores’s mother’s residence on Oaklawn in San Angelo reportedly served as a stash house for Flores’s methamphetamine.
On February 22, 2012, law enforcement executed a search warrant at Flores’s residence. That search yielded: a plastic bag containing suspected methamphetamine residue, which was located next to the toilet; methamphetamine residue next to the toilet; approximately $96,000 in cash; a semi-automatic pistol; approximately 25 wrappings similar to those typically used to package large amounts of methamphetamine; and a suspected drug ledger.
Flores admitted that he had flushed an ounce or less of methamphetamine down the toilet before law enforcement arrived. He also stated that he had approximately $70,000 in his house that was drug sales proceeds from the past 18 months and that he’d distributed approximately one pound of methamphetamine every two weeks during that time period. He stated that his methamphetamine was from Mexico, but he refused to provide his supplier’s name. Flores also stated that the wrappings found in his backyard and bedroom contained one pound of methamphetamine each and he admitted that he knew the firearm was in his house.
The investigation was conducted by ICE HSI, the FBI, the Texas Department of Public Safety, the Tom Green County Sheriff’s Office, and the San Angelo Police Department. Assistant U.S. Attorney Jeffrey R. Haag prosecuted.
Queens Man Sentenced to 72 Months Imprisonment for Mail Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Earlier today, at the United States District Court for the Eastern District of New York in Central Islip, New York, Grigoriy Dekhkanov, a Queens resident, was sentenced to 72 months in prison for his role in a mail fraud conspiracy and aggravated identity theft.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Michael E. Seremetis, United States Secret Service (“USSS”), Long Island Resident Office, Resident Agent in Charge; and Edward J. Ryan, Special Agent in Charge, Social Security Administration, Office of the Inspector General (“SSA-OIG”).
According to court filings and the government’s factual recitation at the guilty plea and sentencing proceedings, between May 1, 2011 and July 20, 2011, when the scheme was broken up by law enforcement, defendant Grigoriy Dekhkanov, together with co-conspirators Rohit Gulati, Monish Patel, and others, stole personal identity information (names, addresses, dates of birth, social security numbers, and credit information) for 26,000 individuals from a medical billing company operated by Patel’s father, located in New Hyde Park, New York. Approximately 200 of these identities were used to apply for credit cards. “Runners” employed by the conspirators then used the credit cards to buy high-end electronic equipment and devices, mobile telephones, gift cards, and gold, which items were resold for cash. On July 21, 2011, when USSS and SSA-OIG agents executed a search warrant at a Sands Point rental home used by the organization, agents found envelopes containing fraudulently obtained credit cards and fake driver’s licenses in the names of identity theft victims, as well as gift cards and receipts showing that the organization had taken in $28,000 over the four days preceding the search. Agents also recovered a mobile phone containing the identity data for all 26,000 victims.
In April 2012, Dekhkanov pled guilty in federal district court in Central Islip to mail fraud conspiracy and aggravated identity theft. United States District Judge Joseph F. Bianco imposed sentence earlier today.
In November 2011 and April 2012, respectively, Dekhkanov’s principal co-conspirators, Monish Patel and Rohit Gulati, each pled guilty to mail fraud conspiracy and aggravated identity theft. Gulati was sentenced on March 8, 2013, to three years’ imprisonment. Patel is awaiting sentence.
“This identity theft scheme was stopped in its tracks only a few months after it began, by the quick action of dedicated law enforcement agents. Because the agents promptly discovered and put a stop to the fraud, only 200 out of the 26,000 stolen identities were compromised. Nevertheless, the amount of the loss – $749,000 – from the use of the 200 of the stolen identities is staggering.” stated United States Attorney Lynch. “This case exemplifies how law enforcement works to protect consumers in the digital age.” Ms. Lynch thanked the United States Secret Service and the Social Security Administration, Office of the Inspector General for their work on the case.
USSS Resident Agent in Charge Seremetis stated, “The U.S. Secret Service recognizes the consequences to those affected by identity theft and is committed to combating this criminality with the assistance of agency partnerships at every level.”
SSA-OIG Special Agent in Charge Ryan stated, “This office is pleased to have brought this case to a successful conclusion, and grateful to the U.S. Secret Service and the U.S. Attorney for their perseverance. The integrity of the Social Security Number (SSN) is among our highest priorities, and as this case demonstrates, the SSN is often a key tool in the commission of large-scale financial institution fraud. SSN misuse can have devastating consequences for the true SSN holder, and has a significant impact on corporate America. Concerted efforts such as we have seen in this case send a strong message that SSN misuse will not be tolerated and that drastic consequences await those who commit such crimes.”
The government’s case was prosecuted by Assistant United States Attorney Allen L. Bode.
The Defendant:
Name: GRIGORIY DEKHKANOV
Age: 26Powhatan Woman Pleads Guilty to Conspiring to Structure $10,000,000 Obtained from Illicit Cigarette SalesRead the Press Release
RICHMOND, Va. –Loveleen Khare, 56, of Powhatan, Va., pleaded guilty today to conspiring to structure more than $10,000,000 in cash transactions for the purpose of preventing banking institutions from reporting those transactions to the Internal Revenue Service (IRS).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Khare was charged by criminal information filed on March 28, 2013, and faces a maximum penalty of five years in prison when she is sentenced on July 19, 2013.
According to a statement of facts filed with the plea agreement, Khare, along with her co-conspirator Jayant J. Khare, owned and operated two cigarette retail stores known as Cigarettes America Plus and Cigarettes America at Westchester. Khare admitted that from October 2011 to December 2012, she and Jayant Khare conspired to structure over $10,000,000 in U.S. currency by splitting up cash deposits into accounts maintained at six banks, all in an effort to prevent the banks from filing Currency Transaction Reports with the IRS, which must be filed on cash deposits of $10,000 or greater. The structured cash was obtained by selling large quantities of cigarettes to out-of-state individuals who were known to be transporting the cigarettes to locations outside of the Commonwealth of Virginia for resale. The sales took place at Khare’s personal residence and from the back door of the retail stores.
This case was investigated by HSI, the Internal Revenue Service - Criminal Investigation, and the Tobacco Enforcement Unit of the Office of the Attorney General of Virginia. Assistant United States Attorneys Dominick S. Gerace and Laura Colombell Marshall are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pinson Man Convicted for Mailing Fictitious Financial InstrumentRead the Press Release
FLORENCE – A federal jury late Tuesday convicted a Pinson man and member of an anti-government Sovereign Citizens group for mailing a fictitious financial instrument to pay off his home mortgage, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The jury convicted DONALD JOE BARBER, 64, of mailing a fictitious “bonded promissory note” to his mortgage servicing company on March 10, 2008, in a fraudulent effort to satisfy his mortgage. Barber presented the fraudulent $10 million note as if it were a valid financial instrument drawn on a secret U.S. government account. U.S. District Judge Inge P. Johnson scheduled Barber’s sentencing for July 31.
“Self-appointed ‘sovereign citizens’ preach an extremist, anti-government ideology to their followers and teach a myth about American history that is untrue,” Vance said. “They often use this mythical ideology to justify crime. Sovereign citizens may disavow the authority of the U.S. government, but it exists and my office will use it to prosecute those who break the law,” she said.
“The guilty verdict handed down in this case should serve as a deterrent to others who claim to be “sovereign citizens” and attempt to use a redemption scheme to fail to pay just debts,” Schwein said. “All citizens should be wary of individuals or groups that claim they can inform you on secret bank accounts, and should report that activity to the FBI,” he said.
The FBI describes members of the sovereign citizen movement in the U.S. as U.S. citizens who openly reject their citizenship status and claim to exist beyond the realm of government authority. Affiliates may use their self-appointed status to justify threats, violence or crime, including theft and fraud.
The maximum sentence for this crime is 25 years in prison and a $250,000 fine.
The FBI investigated the case, which is being prosecuted by Assistant U.S. Attorneys Ryan K. Buchanan and Michael W. Whisonant Sr.