Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 16 April 2013
Joseph Mitchell Casil Sentenced for Concealment of A Material FactRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced today that defendant JOSEPH MITCHELL CASIL was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to twelve (12) months imprisonment for the offense of Concealment of a Material Fact. After defendant serves his term of imprisonment, he will be placed on supervised release for three years and required to perform community service.
Casil was aware that federal Marshals with the United States Marshals Service (USMS) were searching for a felony fugitive. Casil lied to the United States Marshals about the fugitive’s location. Casil’s lies to the Marshals caused the Marshals to unnecessarily extend their surveillance, but also delayed the arrest of the fugitive.
U.S. Attorney Limtiaco states, “This defendant interfered in the timely capture of a felony fugitive who was fleeing arrest for a methamphetamine distribution offense. An offense of this type places not only the United States Marshals at risk, but also members of the community who have a fleeing felon in their midst. Individuals who affirmatively mislead United States Marshals in the performance of their duties will face stiff penalties in the United States District Court.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.
Assistant U.S. Attorney Rosetta San Nicolas prosecuted the case for the United States. U.S. Attorney Limtiaco commends the investigative efforts of the United States Marshals Service.
Johnstown Woman Facing Heroin Distribution ChargeRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on a charge of distributing heroin, United States Attorney David J. Hickton announced today.
The indictment named Desalynn L. Coleman, 32, as the sole defendant.
According to the indictment presented to the court, on Oct. 30, 2012, Coleman distributed less than 100 grams of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, 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 U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Man Indicted on Federal Drug ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Nieves Calderon, III, 36, as the sole defendant.
According to the indictment, on Nov. 19, 2012, Calderon distributed a quantity of alprazolam, a controlled substance, and on Feb. 19, 2013, he possessed less than 100 grams of heroin with the intent to distribute it.
The law provides for a maximum total sentence of 25 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Man Charged with Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on a charge of distributing heroin, United States Attorney David J. Hickton announced today.
The indictment named Damian C. Jeffers, Sr., 42, as the sole defendant.
According to the indictment presented to the court, on Jan. 7, 2013, Jeffers distributed less than 100 grams of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, 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 U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jeffrey James Milliron Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on April 16, 2013, before Senior U.S. District Judge Charles C. Lovell, JEFFREY JAMES MILLIRON appeared for sentencing. MILLIRON was sentenced to a term of:
Probation: 5 years, with 6 months GPS/house arrest
Special Assessment: $100
Restitution: $33,318
MILLIRON was sentenced in connection with his guilty plea to making false statements.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
In April 2010, the Social Security Administration ("SSA") received information from Lewis and Clark County's Office of Public Assistance that J.P., a long-time recipient of Supplemental Security Income ("SSI"), was married and working at a tattoo shop in Helena. Marital status, living arrangements, and employment are among the factors that SSA analyzes in order to determine eligibility for SSI benefits.
SSA opened an investigation and J.P. was interviewed on September 10, 2010, by a claims representative. The representative confronted J.P. about her marriage and her employment, both of which J.P. denied. After leaving the interview, she returned a short time later with a letter from MILLIRON that claimed J.P. was not married to MILLIRON, did not live with him, and did not work at his tattoo parlor.
In February 2011, MILLIRON's probation officer was interviewed and stated that he observed J.P. and MILLIRON living together every time he visited MILLIRON and that J.P. worked at the tattoo parlor. Another probation officer provided consistent information, and produced reports filled out by MILLIRON that indicated he was living with J.P. from January 2007 through at least January 2011.
On February 24, 2011, both MILLIRON and J.P. were interviewed. MILLIRON initially claimed that he was not married and stood by the letter he wrote in September 2010. However, when confronted with his marriage license, MILLIRON admitted that he was married, that he wrote the letter, and that he made a false statement to the SSA. He admitted that he knew that his marriage to J.P. would affect her SSI entitlement and that they concealed their marriage so she could continue to receive SSI payments. MILLIRON also admitted that J.P. worked at the tattoo parlor and earned anywhere from $100 to $800 per month.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Jefferson County Man Pleads Guilty in Oxycodone Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Clearfield, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Jason Shaffer, 38, pleaded guilty on Monday to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between February 2010 and September 2011, a conspiracy to distribute thousands of oxycodone tablets existed in Jefferson County in Northwestern Pennsylvania, and surrounding counties. Jason Shaffer conspired to distribute these drugs, selling them on the street after purchasing them for $25-$30 apiece. Oxycodone is a highly-addictive narcotic drug that is frequently abused in Western Pennsylvania.
Judge Cercone scheduled sentencing for Aug. 12, 2013 at 10 a.m. The law provides for a total sentence of up to 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation that led to the prosecution of Jason Shaffer. The Jefferson County District Attorney's Office also assisted in a related investigation targeting other oxycodone distributors.
Indiana Man Sentenced to 20 Years in Prison for Religiously Motivated Attack on Toledo-Area MosqueRead the Press Release
An Indiana man was sentenced to 20 years in prison for hate crimes stemming from the arson of the Islamic Center of Greater Toledo, law enforcement officials announced today.
U.S. District Judge Jack Zouhary sentenced Randolph Linn, 52, of St. Joe, Indiana. Linn pleaded guilty in December to three counts: (1) intentionally defacing, damaging and destroying religious real property because of the religious character of that property; (2) using fire to commit a felony and (3) using and carrying a firearm to commit a crime of violence.
“Defendant Randy Linn attempted to burn down a mosque because of the religion of its members,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “The Civil Rights Division will continue to partner with the FBI and U.S. Attorney’s Offices around the country to ensure that anyone who desecrates or burns a place of religious worship because of the creed practiced there is brought to justice.”
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said: “Hate crimes like this seek to damage more than buildings, they take aim at our American way of life. But today’s 20-year prison sentence and the coming together of this community to support our Muslim neighbors show that our freedoms are stronger and more resilient than this man’s hatred.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “We are pleased that Randall Linn got a significant sentence for his destructive act of setting fire to a sacred place of worship. The FBI, along with its federal, state, and local law enforcement partners, remains committed to protecting the rights of all citizens to practice their chosen religion by enforcing the laws that defend those liberties.”
“This sentence is the culmination of the tireless efforts of so many agencies to bring this case to justice,” said Robin Shoemaker, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “Criminal damage to a house of worship is taken very seriously by ATF.”
According to court documents, Linn left his home on Sept. 30, 2012, in a red four-door Chevrolet Sonic. Inside the vehicle were numerous firearms and three red gas cans.
Linn stopped at a gas station near Perrysburg, Ohio, and filled the three gas can, then drove to the Islamic Center of Greater Toledo. Linn made numerous efforts to enter the Islamic Center before gaining entry. He walked through several rooms with a handgun in his left hand before exiting, then returning with a red gas can, according to court documents.
Linn then entered the prayer room on the second floor and poured gasoline on the prayer rug, a large Oriental-style rug used by members of the Islamic Center during prayer services. He then set fire to the prayer rug, according to court documents.
Linn acknowledges he intentionally set the fire because of the religious character of the Islamic Center property, according to court documents.
Linn agrees to pay restitution and understands that the amount may exceed $1 million due to the amount of fire and water damage sustained by the Islamic Center, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan, Ava Dustin and Special Assistant U.S Attorney Gwen Howe-Gebers.
This case was investigated by the Perrysburg Township Police Department, the State of Ohio Fire Marshal, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.
Harolyn Bonner Pleads Guilty to Theft of Government MoneyRead the Press Release
HAROLYN BONNER, age 49, a resident of New Orleans, Louisiana, pled guilty in federal court today before U. S. District Court Judge Lance M. Africk to theft of government money, announced U. S. Attorney Dana J. Boente.
According to court documents, from June 2009 through May 2012, BONNER stole approximately $23,710 from the Social Security Administration by obtaining benefits to which she was not entitled. BONNER had managed disability benefits on behalf of her adult son. When her son died in 2009, the benefits should have terminated. However, BONNER continued to receive the benefits and converted them to her personal use knowing that she was not entitled to them. On at least two occasions after her son’s death, BONNER submitted written reports to the Social Security Administration representing that her son continued to reside with her and that she was using the payments for his food, housing, and other needs.
BONNER faces a maximum term of imprisonment of 10 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment. Sentencing is set for July 25, 2013.
The case was investigated by the Social Security Administration-Office of Inspector General and prosecuted by Assistant United States Attorney Chandra Menon.
(Download Indictment )
Grand Forks Woman Pleads Guilty to False StatementsRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 16, 2013, Chantel Raine Monteith of Grand Forks, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to a charge of false statements.
Monteith, 24, pleaded guilty to making false statements during an interview with a special agent from the Federal Bureau of Investigation.
The incident occurred in May of 2011 in the District of North Dakota.
The charge of false statements carries a statutory maximum penalty of five years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation.
Sentencing for Monteith has been scheduled July 12, 2013, in U.S. District Court in Fargo, North Dakota, at 12:45.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Fourth Florida Man Is Charged in A Superseding Indictment for Conspiracy to Illegally Transport Destructive Devices and Machine GunsRead the Press Release
CARLOS CABRERA, age 42, a resident of Orlando, Florida, was charged today in a two-count superseding indictment by a Federal Grand Jury for his role in a conspiracy to transport destructive devices (M-60 Grenades) and machine guns (AK-47 automatic assault rifles and Colt M-4 automatic assault rifles), announced U.S. Attorney Dana J. Boente.
According to the superseding indictment, JAIME JAUREGUI, RUBEN JAUREGUI, FRANCISCO MALDONADO and CARLOS CABRERA conspired with each other and others to transport firearms, which are deemed destructive devices and machineguns, including thirty M-60 Grenades, and sixty Colt M4 automatic assault rifles and fifty AK-47 automatic assault rifles from the Eastern District of Louisiana to Texas, Florida, and elsewhere. The conspiracy count alleges that on four occasions from January 2012 through March 21, 2013, JAIME JAUREGUI met with undercover agents in St. Tammany Parish to negotiate the purchase more than 100 fully automatic assault rifles, grenade launchers, grenades, and night vision goggles, some of which were destined for a Mexican drug trafficking cartel. JAIME JAUREGUI provided a cash deposit of approximately $46,000 during those meetings. JAIME JAUREGUI hired FRANCISCO MALDONADO, RUBEN JAUREGUI and CARLOS CABRERA to assist him with transporting the weapons to the final destinations. None of the men have federal firearms or export licenses. The conspiracy count further alleges that the defendants conspired to transport the weapons in the course of engaging in the business of dealing firearms without a license. JAIME JAUREGUI is also charged with one count of illegal possession of unregistered firearms, specifically, two Colt M4 automatic assault rifles.
If convicted of the conspiracy count, each defendant faces a maximum penalty of 5 years imprisonment, a $250,000 fine, and a 3 year term of supervised release. JAIME JAUREGUI faces additional penalties for the illegal firearms possession charge of up to 10 years imprisonment, a $250,000 fine, and a 3 year term of supervised release.
U. S. Attorney Boente reiterated that the superseding indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by Special Agents of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of U.S. Customs and Border Protection, the Louisiana State Police, and the St. Tammany Parish Sheriff’s Office. Prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Superseding Indictment )
Former Investment Banker and His Associate Plead Guilty in San Francisco to Insider Trading SchemeRead the Press Release
A former San Francisco investment banker and his college friend both pleaded guilty today for their roles in an insider trading scheme involving two impending corporate mergers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Northern District of California Melinda Haag.
Jauyo Lee, aka “Jason Lee,” 29, of New York, and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty before U.S. District Judge Richard Seeborg in the Northern District of California to one count of conspiracy to commit securities fraud and one count of securities fraud. Lee and Chen were charged in a criminal information on March 21, 2013.
“Insider trading undermines ordinary investors’ faith in our financial markets, and the Justice Department has zero tolerance for it,” said Acting Assistant Attorney General Raman. “Today's guilty pleas show that you cannot trade on inside information, pocket the profit and expect to escape responsibility. Having now admitted their conduct, Mr. Lee and Mr. Chen must face the consequences.”
“Securities professionals cannot exploit their positions of trust to enrich themselves and their friends,” said U.S. Attorney Haag. “Those tempted to corrupt our markets in this manner should know: the government will get to the bottom of suspicious trading and prosecute securities fraud vigorously.”
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink’s client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela’s stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
Between June 1 and 13, 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen are scheduled for sentencing on July 23, 2013, before Judge Seeborg. The maximum penalty for conspiracy to commit securities fraud is five years in prison, and the maximum penalty for securities fraud is 20 years in prison.
This case is being prosecuted by Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert S. Leach of the Northern District of California. The prosecution is the result of a one-year investigation by the FBI with substantial assistance from the Chicago Regional Office of the Securities and Exchange Commission, which initiated a civil enforcement action against Lee and Chen and referred the matter to the Department of Justice.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Investment Banker and His Associate Plead Guilty in San Francisco to Insider Trading SchemeRead the Press Release
San Francisco - A former San Francisco investment banker and his college friend both pleaded guilty today for their roles in an insider trading scheme involving two impending corporate mergers, announced U.S. Attorney Melinda Haag and Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division.
Jauyo Lee, aka "Jason Lee," 29, of New York, and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty before U.S. District Judge Richard Seeborg in the Northern District of California to one count of conspiracy to commit securities fraud and one count of securities fraud. Lee and Chen were charged in a criminal information on March 21, 2013.
"Securities professionals cannot exploit their positions of trust to enrich themselves and their friends," said U.S. Attorney Haag. "Those tempted to corrupt our markets in this manner should know: the government will get to the bottom of suspicious trading and prosecute securities fraud vigorously."
"Insider trading undermines ordinary investors' faith in our financial markets, and the Justice Department has zero tolerance for it," said Acting Assistant Attorney General Raman. "Today's guilty pleas show that you cannot trade on inside information, pocket the profit and expect to escape responsibility. Having now admitted their conduct, Mr. Lee and Mr. Chen must face the consequences."
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink's client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela's stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
Between June 1 and 13, 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen are scheduled for sentencing on July 23, 2013, before Judge Seeborg. The maximum penalty for conspiracy to commit securities fraud is five years in prison, and the maximum penalty for securities fraud is 20 years in prison.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Leach and Trial Attorney Brian R. Young of the Criminal Division's Fraud Section with the assistance of Rayneisha Booth and Mary Mallory. The prosecution is the result of a one-year investigation by the FBI with substantial assistance from the Chicago Regional Office of the U.S. Securities and Exchange Commission.
This prosecution is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Former CEO Pleads Guilty to Securities FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that defendant Scott Haire, 48, a resident of Coral Springs, Florida, pled guilty yesterday before U.S. District Judge Kathleen Williams. Haire pled guilty to conspiracy to commit securities fraud in violation of Title 18, United States Code, Section 371, in United States v. Scott Haire and Douglas Martin, Case No. 12-Cr-60133-Williams(s).
At sentencing, Haire faces a maximum of five year’s imprisonment, three years supervised release, and a $250,000 fine.
This case is part of the Southern District of Florida Securities and Investment Fraud Initiative (the Initiative), first announced in December 2010 and designed to combat securities and investment fraud and protect the interests of the investing public. The Initiative was established to address the increase in securities and investment fraud schemes in the Southern District of Florida. In addition to the U.S. Attorney’s Office, FBI, U.S. Securities and Exchange Commission (SEC) and Florida’s Office of Financial Regulation, other participating agencies in the Initiative include the Internal Revenue Service, Criminal Investigation Division (IRS-CID), U.S. Secret Service (USSS), U.S. Postal Inspection Service, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), U.S. Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC) Southeast Region. Among the goals of the Initiative is to alert the public about the prevalence of these types of schemes, educate the public on how to avoid falling prey to these schemes, and to highlight the law enforcement response to the problem.
The Southern District of Florida ranks second in the nation in securities and investment fraud investigations and prosecutions. Using the strike force model successfully developed in the health care and mortgage fraud areas, the Initiative has yielded similar success. Since its inception in December 2010, the Initiative has resulted in charges against 144 defendants in the Southern District of Florida, resulting in more than $1.76 billion in restitution ordered.
Haire – the former CEO of Wound Management Technologies, Inc., and the former CFO and Chairman of VHGI, Inc. –was captured on video and audio recordings engaging in securities fraud during an undercover FBI operation. During the recordings, Haire discussed his football career at the University of Kentucky before turning to fraud.
According to court documents, Haire bribed a pension fund fiduciary to induce the fiduciary to invest in Wound Management, in violation of the pension fund fiduciary’s obligation to act in the best interest of the pension fund’s beneficiaries. In addition, Haire bribed a stock broker to invest money from his client’s discretionary accounts, in violation of the stock broker’s obligation to act in the best interest of his clients. Haire agreed that he conspired with Douglas Martin, a conspirator who previously pled guilty, to inflate the volume and stock of VHGI, a publicly traded company.
To date, 37 individuals have been convicted as part of the FBI’s undercover operation in this and related cases.
Mr. Ferrer commended the investigative efforts of the FBI in this and other cases targeting penny stock fraud in South Florida. Mr. Ferrer would also like to thank the SEC for its assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Jodi L. Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Foreign Bribery Charges Unsealed Against <br /> Current and Former Executives of French Power CompanyRead the Press Release
Charges have been unsealed against one current and one former executive of the U.S. subsidiary of a French power and transportation company for their alleged participation in a scheme to pay bribes to foreign government officials, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Connecticut David Fein and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office announced today.
Frederic Pierucci, 45, a current company executive who previously held the position of vice president of global sales for the Connecticut-based U.S. subsidiary, was charged in an indictment unsealed yesterday in the District of Connecticut with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and to launder money, as well as substantive charges of violating the FCPA and money laundering. Pierucci, a French national, was arrested Sunday night at John F. Kennedy International Airport.
David Rothschild, 67, of Massachusetts, a former vice president of sales for the Connecticut-based U.S. subsidiary, pleaded guilty on Nov. 2, 2012, to a criminal information charging one count of conspiracy to violate the FCPA. The charges against Rothschild and his guilty plea were unsealed today.
“Frederic Pierucci and David Rothschild allegedly used outside consultants to bribe foreign officials in Indonesia in exchange for lucrative power contracts,” said Acting Assistant Attorney General Raman. “Stamping out foreign bribery is a Justice Department priority, and we are determined to continue our vigorous enforcement of the Foreign Corrupt Practices Act.”
“As alleged, this investigation has revealed a corrupt scheme to secure valuable contracts by bribing government officials in Indonesia,” said U.S. Attorney Fein. “Corrupt payments to government officials erode public confidence in the global marketplace, and these charges demonstrate our commitment to hold people responsible for violating the FCPA.”
“Anyone who still believes that foreign bribery is an acceptable business practice should take a hard look at the charges against these executives. There is no place for bribery in any business model or corporate culture,” said Assistant Director in Charge Parlave. “Along with the Department of Justice, international law enforcement partners, and other U.S. federal agencies, the FBI is committed to investigating corrupt backroom deals that threaten our global commerce.”
According to the charges, Pierucci and Rothschild, together with others, paid bribes to officials in Indonesia, including a member of Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia, in exchange for those officials’ assistance in securing a contract for the company to provide power-related services for the citizens of Indonesia, known as the Tarahan project. The charges allege that, in order to conceal the bribes, the defendants retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. In reality, however, the primary purpose for hiring the consultants was allegedly to use the consultants to pay bribes to Indonesian officials.
The first consultant retained by the defendants allegedly received hundreds of thousands of dollars into his Maryland bank account to be used to bribe the member of Parliament, according to the charges. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to court documents, emails between Pierucci, Rothschild and their co-conspirators discuss in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project. However, when Pierucci and others determined that the first consultant was not effectively bribing key officials at PLN, they allegedly retained the second consultant to accomplish that purpose. The charges allege that the power company deviated from its usual practice of paying consultants on a pro-rata basis in order to make a much larger up-front payment to the second consultant so that the consultant could “get the right influence.” An employee at the power company’s subsidiary in Indonesia sent an e-mail to Pierucci and others asking them to finalize the consultancy agreement with the front-loaded payments but stated that in the meantime the employee would give his word to a high-level official at PLN, according to the charges.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The substantive FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The substantive money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut. The case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad, with assistance from the Meriden, Conn., Resident Agency of the FBI. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and the department has also worked closely with its law enforcement counterparts in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission) and deeply appreciates KPK’s assistance in this matter.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Five New Orleans Gang Members Indicted on Drug and Gun ChargesRead the Press Release
THOMAS HILLIARD, 22; CHRISTIAN JOHNSON, 23; ALEX LEWIS, 20; JAMES BROWN, 22; and WILLIE HILLIARD, 23; all residents of New Orleans, were indicted by a federal Grand Jury on Friday April 12, 2013 on several counts involving the distribution of cocaine base (“crack”) and the illegal possession of firearms, announced United States Attorney Dana J. Boente. The indictment was sealed until today, as federal and local law enforcement officials conducted a round-up of all defendants this morning. All five defendants are expected to make their initial appearance in federal court this afternoon at 2:00pm.
This indictment was the result of an investigation that was conducted by the newly formed NOPD Multi Agency Gang Unit, which is comprised of NOPD detectives and federal agents. During the course of this investigation all five individuals were identified as belonging to a gang known as “MMG” that distributed crack cocaine and illegally possessed firearms to further their drug trafficking activities in the Seventh Ward area of New Orleans.
According to the indictment, beginning at a time unknown and continuing until on or about June 7, 2012, in the Eastern District of Louisiana, THOMAS HILLIARD, JOHNSON, LEWIS, BROWN, and WILLIE HILLIARD did knowingly and intentionally conspire and agree to distribute two hundred-eighty grams or more of cocaine base (“crack”). During that same period, THOMAS and WILLIE HILLIARD, JOHNSON and LEWIS also conspired to possess firearms in furtherance of the drug conspiracy. Also, as part of the indictment, THOMAS HILLIARD, JOHNSON and BROWN were charged with using a communication facility to facilitate a drug crime. JOHNSON was additionally charged with being a felon in possession of a firearm and WILLIE HILLIARD was charged with possession with intent to distribute a quantity of crack cocaine.
If convicted of all counts, each defendant faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
The Multi Agency Gang Unit was created within the ranks of the New Orleans Police Department with significant support from other local, state, and federal law enforcement agencies. There are also two Assistant District Attorneys and two United States Attorneys assigned to this group to try and coordinate the prosecution of these various gang members in both federal and state courts. Like the current NOPD Homicide Division, the Gang Unit is centrally located and has jurisdiction over Orleans Parish and will be under the direction of the NOPD. It is the central bureau tasked with gathering evidence against violent gangs and all of their members that leads to the prosecution and conviction of entire violent gangs in either state or federal court on criminal conspiracy, street gang, or racketeering charges. The Gang Unit is conducting several simultaneous investigations on identified groups, which could result in state and federal prosecutions of the groups, and not only their individual members, thereby removing the violent offenders who are responsible for the majority of violent crimes committed in the neighborhoods of New Orleans and the metropolitan area.
The following agencies are part of the Multi Agency Gang Unit:
- New Orleans Police Department (NOPD);
- Orleans Parish District Attorney’s Office (DA);
- Orleans Parish Sheriff’s Office (OPSO);
- Louisiana State Police (LSP);
- Parole Board of the Louisiana Department of Corrections;
- United States Attorney’s Office (USAO);
- Federal Bureau of Investigation (FBI);
- Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF);
- Drug Enforcement Administration (DEA); and
- United States Marshal’s Service (USMS).
U. S. Attorney Boente stated, “Thanks to the men and women who are assigned to this Unit for their hard work and dedication. Though this is the first indictment to be returned based on this Unit’s work, it certainly will not be the last. The United States Attorney’s Office is proud to be part of this joint initiative to help fight the violent crime and drug trafficking activities that continually plague several neighborhoods in this city.”
ATF Special Agent in Charge Phillip Durham said, “The indictment in this investigation is the results of our commitment as a law enforcement community to work hand in hand to identify offenders who are considered the “Worst of the Worst” and reside and operate in designated neighborhoods. We have no doubt that this strategy will continue to produce positive results in our efforts to crack down on violent gun crimes and repeat offenders in neighborhoods throughout the New Orleans metropolitan area.”
District Attorney Leon Cannizzaro observed, "This represents another example of unprecedented cooperation and collaboration amongst local and Federal law enforcement agencies to aggressively identify and round up affiliated criminal confederates who are perpetrating crimes of violence on the streets of this community."
Superintendent Ronal Serpas said, "Today's indictments are proof that this initiative headed up by NOPD is aggressive, focused and effective. We are incredibly grateful for the assistance and dedication to this effort provided by our state and federal partners. Together, we are making New Orleans safer."
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The investigation is being led by Special Agents of the Bureau of Alcohol, Tobacco and Firearms and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Andre’ Jones.
(Download Indictment )
Federal Jury Finds Red Lake Man Guilty of Assaulting A WomanRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Duluth, a jury found a 44-year-old Red Lake man guilty of causing serious bodily injury to a woman after assaulting her while on the Red Lake Indian Reservation. Following a two-day trial, the jury convicted Roderick Arlyn Sayers on one count of assault resulting in serious bodily injury. Sayers was indicted on November 5, 2012.
According to both the evidence presented at trial and the indictment, on November 25, 2011, Sayers assaulted the victim, which resulted in serious bodily injury. The victim, who was Sayers’ girlfriend, had a significant mouth injury and a loose tooth.
For his crime, Sayers faces a potential maximum penalty of ten years in federal prison. United States District Court Judge Richard H. Kyle will determine his sentence at a future hearing, not yet scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Thomas Calhoun-Lopez.Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
The U.S. Justice Department is taking steps to increase engagement, coordination and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered in during their lives than Caucasian women.Federal Grand Jury Returns Seven IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
ELKINS, WEST VIRGINIA — Nine individuals were named in seven Indictments returned by a federal grand jury sitting in Elkins, West Virginia, on April 16, 2013.
United States Attorney William J. Ihlenfeld, II, announced the following indictments: CHARLES ADKINS, age 53, of Erie, Pennsylvania, who was previously charged in a
one-count Indictment on March 5, 2013, was named in a three-count Superseding Indictment
charging him with “Failure to Update Sex Offender Registration”, “Attempting to Obstruction Justice,” and “False Declarations before Court.” Count One of the Superseding Indictment alleges that from November 3, 2012, to January 15, 2013, ADKINS knowingly failed to update a registration pursuant to the Sex Offender Notification Act. Counts Two and Four alleges that ADKINS attempted to obstruct justice by attempting to influence a potential witness in an official proceeding. Count Three alleges that ADKINS made false declarations to the Court during a February 28, 2013, hearing. If convicted, ADKINS faces up to 10 years imprisonment and a $250,000 fine as to Count One; 20 years imprisonment and a $250,000 fine as to Counts Two and Four; and, 5 years imprisonment and a $250,000 fine as to Count Three. This case was investigated by the United States Marshals Service.ANDRE ABRAM, age 32, of Pittsburgh, Pennsylvania, was named in a one-count Indictment charging him with “Possession with Intent to Distribute Heroin within 1,000 Feet of the Clarksburg Housing Authority” on March 28,2013. The Indictment also seeks the forfeiture of $3,376 in United States currency seized on March 28, 2013. If convicted, ABRAM faces 1 to 40 years imprisonment and a $2,000,000 fine. This case was investigated by the Greater Harrison County Drug Task Force, consisting of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service.
These two cases will be prosecuted by Criminal Chief Shawn A. Morgan.
GARY RUDOLPH LOY, age 30, of Belington, West Virginia, was named in a three- count Indictment. Counts One and Three charge LOY with “Possession of Material Used in the Manufacture of Methamphetamine” on July 8 and August 28, 2012. Count Two charges LOY with “Manufacturing Methamphetamine” on August 28, 2012. If convicted, LOY faces up to 10 years imprisonment and a $250,000 fine as to Counts One and Three and 20 years imprisonment and a $1,000,000 fine as to Count Two. This case was investigated by the West Virginia State Police.
ALAN LEE STANLEY, age 33, of Buckhannon, West Virginia, was named in a seven- count Indictment. Count One charges STANLEY with “Possession of Materials Used in the Manufacture of Methamphetamine” on October 26, 2012. Counts Two through Six charge STANLEYwith “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on September 11, September 18, October 1, October 12 and October 25,
2012. Count Seven charges STANLEYwith“Attempted Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on October 1, 2012. The indictment also seeks the forfeiture of items seized from STANLEY’s residence on October 26, 2012. If convicted, STANLEY faces up to 10 years imprisonment and a $250,000 fine as to Count One and 20 years imprisonment and a $250,000 as to Counts Two through Seven. This case was investigated by the Buckhannon Police Department.TONYA RENEE HAYMOND, age 28, of Romney, West Virginia, was named in a three-count Indictment. Counts One and Two charge HAYMOND with the “Distribution of Heroin” on June 5 and 6, 2012. Count Three charges HAYMOND with “Possession with Intent to Distribute Heroin” on June 6, 2012. If convicted HAYMOND faces up to 20 years imprisonment and a $1,000,000 fine as to each of the three counts. This case was investigated by the Hardy County Sheriff’s Department and the Moorefield Police Department.
DONALD MARK TILLOTSON, age 36, of Burling, West Virginia, was named in a nine-count Indictment. Count One charges TILLOTSON with “Possession of Materials Used in the Manufacture of Methamphetamine” on November 28, 2012. Counts Two through Eight charge TILLOTSON with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on November 21, November 10, October 16, October 2, September 17, September 2, and August 24, 2012. Count Nine charges TILLOTSON with “Attempted Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on September 17, 2012. If convicted,TILLOTSON faces up to 10 years imprisonment and a
$250,000 fine as to Count One and 20 years imprisonment and a $250,000 fine as to Counts
Two thru Nine.SCOTT ALLEN GREENWALT, age 40, MICHELLE LEE STOCKING, age 23, and KIMBERLY EVANS, age 39, all of Moorefield, West Virginia, were named in a 25-count Indictment. Count One charges GREENWALT, STOCKING and EVANS with “Conspiracy to Manufacture, Possess and Distribute Methamphetamine” from March 5 to September 4,
2012. Count Two charges GREENWALT, STOCKING and EVANS with “Possession of Materials Used in the Manufacture of Methamphetamine” on June 13, 2012. Count Three charges GREENWALT and STOCKING with “Attempting to Manufacture Methamphetamine” on September 4, 2012. Count Four charges GREENWALT and STOCKING with “Possession of Materials Used in the Manufacture of Methamphetamine” on September 4, 2012. Counts Five through Ten charge GREENWALT with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on May 3, May 22, June 2, July 10, August 1 and August 23, 2012. Count Eleven charges GREENWALT with “Attempting to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on July 25, 2012. Counts Twelve through Sixteen charge STOCKING with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on June 9, June 13, and July 15, 2012, and March 23 and April 2, 2013. Counts Seventeen through Twenty-Five charge EVANS with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on March 5, March 16, March 31, April 17, May 4, May 11, May 24, June
6 and June 11, 2012. If convicted, GREENWALT, STOCKING and EVANS face up to 20 years imprisonment and a $1,000,000 fine as to Counts One and Three; 10 years imprisonment and a $250,000 fine as to Counts Two and Four; and 20 years imprisonment and a $250,000 fine as to Counts Five through Twenty-Five.These two cases were investigated by the Potomac Highlands Drug and Violent Crimes Task Force consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
These five cases will be prosecuted by Assistant United States Attorney Stephen D. Warner.
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Falfurrias Marijuana Distributor Lands in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Jose Maria Carbajal Jr., of Corpus Christi, Texas, has been sentenced to nine years in federal prison for his involvement in a marijuana conspiracy, U.S. Attorney Kenneth Magidson announced today.
On May 16, 2011, Carbajal pleaded guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and to making a false statement on a loan application to a federally insured bank. Today, Senior United States District Judge John Rainey sentenced him to 108 months on each count of conviction to be served concurrently.
Carbajal, 42, led an organized effort to transport marijuana from September 2008 to January 2011 through ranches around the Falfurrias Border Patrol Checkpoint using four-wheel-drive vehicles known as gators to avoid detection. During Carbajal’s plea, and according to court documents, Carbajal’s organization used four-wheel-drive vehicles which would be loaded with marijuana at a point south of the Falfurrias Border Patrol Checkpoint. Then, the gators would be piloted through ranches to a point north of the checkpoint so the marijuana could be transported via ordinary means further into the United States for distribution. During the investigation, one of the marijuana-laden gator vehicles was apprehended and another was found abandoned on a ranch.
In December 2010, according to court documents, Carbajal discussed a Dec. 18, 2010, marijuana seizure and his assistance to the Zeta drug cartel with respect to uncovering the identity of those who were cooperating with the government. As part of this assistance, Carbajal claimed to have shown two Zeta operatives the home addresses of two Brooks County law enforcement officials. According to the recorded conversation, the Zeta operatives planned to kidnap the law enforcement officials to coerce them into revealing the names of people cooperating with the government in their drug investigations.
In December 2011, five Brooks County men who assisted Carbajal also pleaded guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana in a separate case before United States District Judge Nelva Gonzalez Ramos. They are set for sentencing later this year.
The case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations and the Brooks County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorneys Jon Muschenheim and Julie Hampton as part of the Organized Crime and Drug Enforcement Task Force.
Enfield Man Who Mailed Threatening Letters Is SentencedRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that DANIEL SARNO, 54, of Enfield, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to five years of probation for mailing numerous threatening letters.
According to court documents and statements made in court, from November 2011 to May 2012, SARNO mailed approximately 300 letters to the executive director of a public advocacy group located in Hartford. The letters contained vexatious language and, in a number of instances, explicit threats to kill or injure the victim.
On August 21, 2012, SARNO pleaded guilty to two counts of mailing threatening communications.
As special conditions of his probation, SARNO was ordered to receive mental health treatment, and to have no contact with his victims.
This matter was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Eight Current or Former Macon State Prison OfficersCharged in Conspiracy to Assault InmatesRead the Press Release
Deputy Warden James Hinton and seven former members of the Correctional Emergency Response Team (CERT) at Macon State Prison in Oglethorpe, Ga., were charged with federal civil rights, conspiracy or obstruction offenses arising out of incidents in which inmates were allegedly assaulted by officers in order to punish the inmates for prior misconduct. The indictment alleges that former CERT members Christopher Hall, Ronald Lach Jr., Delton Rushin, Kerry Bolden, Derrick Wimbush, Kadarius Thomas and Tyler Griffin, conspired to assault inmates, and that the seven former CERT members conspired with Deputy Warden Hinton and others to cover up their misconduct by writing false reports and providing misleading information to investigators.
The defendants face statutory maximum sentences of 10 years for the civil rights conspiracy charge; 10 years for the civil rights violation; and 20 years for each count of obstruction.
Three former CERT members: Emmett McKenzie, Darren Douglass-Griffin and Willie Redden, previously entered guilty pleas in related cases before U.S. District Judge Marc T. Treadwell.
The Georgia Bureau of Investigation initially conducted an investigation at Macon State Prison. The investigation by the Macon Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty.
Eight Current or Former Macon State Prison Officers Charged in Conspiracy to Assault InmatesRead the Press Release
WASHINGTON – Deputy Warden James Hinton and seven former members of the Correctional Emergency Response Team (CERT) at Macon State Prison in Oglethorpe, Ga., were charged with federal civil rights, conspiracy or obstruction offenses arising out of incidents in which inmates were allegedly assaulted by officers in order to punish the inmates for prior misconduct. The indictment alleges that former CERT members Christopher Hall, Ronald Lach Jr., Delton Rushin, Kerry Bolden, Derrick Wimbush, Kadarius Thomas and Tyler Griffin, conspired to assault inmates, and that the seven former CERT members conspired with Deputy Warden Hinton and others to cover up their misconduct by writing false reports and providing misleading information to investigators.The defendants face statutory maximum sentences of 10 years for the civil rights conspiracy charge; 10 years for the civil rights violation; and 20 years for each count of obstruction.
Three former CERT members: Emmett McKenzie, Darren Douglass-Griffin and Willie Redden, previously entered guilty pleas in related cases before U.S. District Judge Marc T. Treadwell.
The Georgia Bureau of Investigation initially conducted an investigation at Macon State Prison. The investigation by the Macon Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.Eagle Butte Man Sentenced for Assault of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of Assault of a Minor was sentenced on April 12, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Raymond Uses The Knife III, a/k/a Yamni Uses The Knife, age 22, was sentenced to 10 months of custody, 6 months of supervised release, and a $25 Special Assessment to the Victim Assistance Fund.
Uses The Knife was indicted for Sexual Contact with a Minor on June 12, 2012. He pled guilty to a Superseding Information on January 23, 2013 that charged him with Assault of a Minor.
The conviction was the result of an incident that occurred at Eagle Butte in August 2012, when Uses The Knife assaulted a victim under the age of 16.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Uses The Knife was remanded to the custody of the U.S. Marshal to begin serving his sentence.
Deported Alien Charged with Re-entering United States Without DHS PermissionRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Adrian Flores-Flores, 22, as the sole defendant.
According to the indictment, on March 27, 2013, Flores-Flores, an alien who had been deported from the United States on June 19, 2009, was found in Bedford, Pennsylvania. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of two 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 of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Daphne Man Sentenced to 7 Years for Federal Firearm OffenseRead the Press Release
Trenton Edward Watkins, age 21, of Daphne, Alabama, was sentenced today by Judge William H. Steele to serve 84 months in federal prison for being a felon in possession of a firearm. On November 2, 2012, Watkins – a thrice convicted felon – illegally possessed a loaded Springfield Armory XDM 9mm semi-automatic pistol which had been stolen, in connection with a domestic situation and vehicle chase on Park Avenue and Pollard Road in Daphne, Alabama.
As the court pleadings and testimony at the sentencing hearing established, Watkins drove erratically on Park Avenue and fired at least one shot during the chase as oncoming drivers swerved or ran off the road to avoid being hit by Watkins’ vehicle, and as school children waited at bus stops. Fortunately, no one was injured.
This case was investigated by the Daphne Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosive.
Court Approves Plan to Provide Comprehensive Services to ELL Students in Denver Public SchoolsRead the Press Release
Today, a federal court in Denver approved a comprehensive consent decree between the Department of Justice, the Congress of Hispanic Educators (CHE), and the Denver Public Schools (DPS) that requires DPS to provide language services to the more than 28,000 English Language Learner (ELL) students enrolled in the district’s 170 schools. The consent decree, which replaces a 1999 court order, is the product of compliance monitoring by the department and the CHE, and DPS’s recognition that the 1999 order no longer reflected the district’s own best practices for serving ELL students.
The consent decree requires the district to implement comprehensive measures to ensure that ELLs have equal opportunities to succeed academically in district educational programs, starting with the proper identification of ELL students when they enter DPS. Among other things, the consent decree requires DPS to: provide language acquisition services to ELL students in district schools, including charter schools, until they are proficient in English and to monitor ELL students after they exit services to ensure they are participating meaningfully and equally in mainstream classes; to make translation and interpretation services available for thousands of Limited English Proficient parents who speak more than 130 different languages – thus ensuring that all parents have access to essential information about their children’s education; to provide Pre-K language services at each school where DPS offers early childhood education; and to make appropriate language services available for ELL students who face unique challenges, including refugee students and students with disabilities.
“Today, the Denver Public Schools took a big step forward toward promoting the success of every student from the moment the child enters the district. Faithful implementation of this decree will ensure that ELL students, like all district students, have access to qualified teachers, grade-appropriate curriculum, and dedicated resources to meet their particular learning needs,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “We commend DPS for joining with the Congress of Hispanic Educators and the United States to protect the rights of thousands of ELL students in Denver.”
The enforcement of the Equal Educational Opportunities Act and Title VI of the Civil Rights Act of 1964 are top priorities of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt .
Related Materials:
DPS Consent Decree
Corpus Christi Man Gets Max Sentence for Producing Child PornRead the Press Release
CORPUS CHRISTI, Texas – Timothy Wayne Bailey, 38, of Corpus Christi, has been handed a 30-year prison term following his conviction of sexual exploitation of a child, commonly known as production of child pornography, United States Attorney Kenneth Magidson announced today.
Bailey pleaded guilty to the charge on Jan. 22, 2013, and was sentenced to the maximum prison term allowed by law late yesterday by Senior U.S. District Judge John D. Rainey.
Bailey came to the attention of law enforcement through an undercover investigation, at which time he was identified as person who had been distributing images of child pornography online. A search warrant executed at Bailey’s home resulted in the discovery of several electronic storage devices which were found to contain images of child pornography. A closer inspection of those images resulted in the discovery of Bailey’s prior sexual abuse of a family member. The victim was interviewed and described more than four years of continuous sexual assault suffered at the hands of Bailey.
Bailey was arrested on Dec. 5, 2012. He has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC) investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Sex Offender Living in Jefferson County Sentenced to 33 Months in Prison for Failing to Register with the Kentucky Sex Offender RegistryRead the Press Release
LOUISVILLE, Ky. – A convicted sex offender living in Jefferson County, Kentucky, was sentenced in United States District Court today, by Senior Judge Thomas B. Russell, to 33 months in prison followed by five years of supervised release for failing to register with the Kentucky Sex Offender Registry after moving to Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Ronald Edward Dunn, age 42, was charged in a federal grand jury indictment on February 22, 2012, and pleaded guilty to the charge on December 14, 2012.
According to the plea agreement, Dunn was previously convicted in Indiana for child molesting in Case Number 39C01-9601-CR-6. The Indiana court sentenced him to 10 years in prison with four years suspended. Under the terms of the judgment, Dunn was required to register as a sex offender. On August 26, 2009, he was convicted of failure to register as a sex offender in Indiana. On January 26, 2010, he was convicted of failure to register as a sex offender in California. Dunn applied for and obtained a Kentucky Driver's License on January 3, 2012. He listed a residence in Louisville, Kentucky. However, he did not register with the Kentucky Sex Offender Registry at that time.
The United States Marshals Service Task Force began working two outstanding warrants on Dunn (one out of Indiana and one from California) in early 2012. Law enforcement officials arrested Dunn on February 10, 2012, at his place of employment at West Broadway in Louisville. Consequently, between January 3, 2012, and February 10, 2012, in the Western District of Kentucky, Jefferson County, Kentucky, Dunn, an individual required to register under the Sex Offender Registration and Notification Act, knowingly failed to register as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The United States Marshals Service conducted the investigation as part of their mission under the Adam Walsh Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Charleroi Man Admits Straw Purchasing Firearm for Drug-addicted FelonRead the Press Release
PITTSBURGH - A resident of Charleroi, Pa., pleaded guilty on Monday to violating federal firearms laws, United States Attorney David J. Hickton announced today.
Jeffrey Cochenour, 41, was convicted of providing false information to a federal firearms licensee by indicating that he was the actual buyer of a particular firearm when he was actually acting on behalf of someone else. Cochenour purchased a RomArm/Cugir 7.62x39 caliber semi-automatic rifle with a high-capacity magazine capable of accepting over 15 rounds of ammunition. Cochenour bought the firearm for, and provided the firearm to, an acquaintance who was a convicted felon and who was addicted to a controlled substance and could not lawfully purchase or possess firearms.
Sentencing is scheduled to occur on Aug. 9, 2013, at 10:30 a.m., in the courtroom of United States District Judge Terrence F. McVerry.
The law provides for a maximum total sentence of up to five years in prison, a fine of up to $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 Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania State Police investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Bronx Man Sentenced in Manhattan Federal Court to 21 Years in Prison for the Sexual Exploitation of A Child and the Distribution of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LUCIANO MENDEZ-ROJAS was sentenced today in Manhattan federal court to 21 years in prison for sexually exploiting a child and distributing images and videos of child pornography over the Internet. MENDEZ-ROJAS pled guilty in June 2012. He was sentenced today by U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara stated: “By his conduct, Luciano Mendez-Rojas stole the innocence of one child and exploited countless others. We have zero tolerance for child predators like Mendez-Rojas and his ilk and will prosecute and punish them with the full force of the law.”
According to documents filed in this case and statements made in court:
In July 2011, MENDEZ-ROJAS and his co-defendant, Inocencia Ortega, engaged in
sexually explicit conduct in their home in the Bronx, New York, while their minor child filmed videos of the conduct at the direction of MENDEZ-ROJAS.
On February 9, 2011, MENDEZ-ROJAS distributed child pornography over the Internet
using file-sharing software.
In addition to the prison term, Judge Engelmayer sentenced MENDEZ-ROJAS, 39, a citizen of Mexico, to eight years of supervised release. He must also register as a sex offender. Ortega is scheduled to be sentenced by Judge Engelmayer on April 26, 2013 at 2:15 p.m.
Mr. Bharara praised the investigative work of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the New York City Police Department.
The case is being handled by the Office’s General Crimes Unit. Assistant United
States Attorneys Kristy J. Greenberg and Daniel C. Richenthal are in charge of the prosecution.
ICE HSI encourages the public to report suspected child predators and any suspicious
activity through its toll-free hotline at 1-866-347-2423. This hotline is staffed around the clock
by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
Boise Jury Convicts Eagle Man of 17 Counts of Wire FraudRead the Press Release
BOISE – A federal jury in Boise late yesterday convicted Matthew D. Hutcheson, 41, of Eagle, Idaho, of seventeen counts of wire fraud, U.S. Attorney Wendy J. Olson announced. Hutcheson is a former trustee and fiduciary for a number of multiple employer pension plans, including the G Fiduciary Retirement Income Security Plan (the “G Fid Plan”), National Retirement Security Plan 401(k) (the “NRSP”), and the Retirement Security Plan & Trust (the “RSPT”). During the eight day trial, the government presented evidence that beginning in 2010, Hutcheson perpetrated schemes to defraud the G Fid and RSPT plans, and misappropriated over $5 million of plan assets.
The jury heard evidence that from January 2010 through December 2010, Hutcheson misappropriated just over $2 million of G Fid Plan assets for his personal use. On twelve occasions, Hutcheson directed the G Fid Plan record keeper to wire transfer plan assets from the G Fid Plan account at Charles Schwab to bank accounts he controlled and to other bank accounts for his personal benefit. Hutcheson used these assets to extensively renovate his personal residence, including adding a pool, to repay personal loans, to purchase luxury automobiles, motorcycles, all-terrain vehicles, and a tractor, and for other personal expenses. When G Fid Plan clients, plan record keepers, and others requested information about the location and status of the plan assets, Hutcheson misrepresented that they were safely invested.
The jury also heard evidence that in December 2010, Hutcheson misappropriated approximately $3,276,000 of RSPT Plan assets to pursue the purchase of the Tamarack Resort in Donnelly, Idaho, on behalf of a limited liability corporation he controlled, called Green Valley Holdings, LLC. In December 2010, Hutcheson directed the RSPT Plan record keeper to wire transfer approximately $3 million from the RSPT Plan to an escrow account for the benefit of Green Valley Holdings, LLC. Hutcheson directed the RSPT Plan record keeper to describe the transaction in plan records as an investment in a fixed income bank note. In reality, Hutcheson used the $3 million to purchase a bank note secured by a majority interest in the Osprey Meadows Golf Course and Lodge at the Tamarack Resort in the name of Green Valley Holdings, not the RSPT Plan. Hutcheson later obtained a $425,000 cash loan from a private lender in Virginia using the same bank note as collateral, and placing the lender above other creditors in case of default. When the RSPT Plan auditor questioned Hutcheson about the investment, Hutcheson told the auditor there was no plan investment in a fixed income bank note, and that he had “loaned” the money from the RSPT Plan to Green Valley Holdings. Hutcheson produced purported loan documents to the auditor, but they were fraudulent and forged. In addition, in December of 2010, Hutcheson directed the RSPT Plan record keeper to wire transfer $275,000 from the RSPT Plan to a bank account he controlled. Hutcheson transferred $250,000 of this money to an escrow account at US Bank to demonstrate to the Tamarack Corporation's creditors that Green Valley Holding had the financial means to purchase the resort. Later, he spent the money for personal purposes.
Each count of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offense, and up to three years of supervised release. The government is seeking forfeiture of approximately $5,307,688, or substitute assets, including property, valued at this amount.
Hutcheson is scheduled to be sentenced on July 23, 2013, before U.S. District Judge William Fremming Nielsen at the federal courthouse in Boise.
“This jury verdict sends the strong message that those who defraud the very employee benefit pension plans they are supposed to protect will be held accountable,” said Olson. “Matthew Hutcheson placed his own personal interests and greed above the clients’ whose retirement interests he pledged to safeguard. This office will continue to take pension fraud very seriously. I commend the federal law enforcement officers who conducted the deliberate and detailed investigation in this case, and I commend Assistant United States Attorney Ray Patricco for his outstanding job of presenting the complex evidence to the jury."
The case was investigated by the United States Department of Labor, Employee Benefits Security Administration, and the Federal Bureau of Investigation.
Baltimore Tax Preparer Sentenced to 3 Years in Prison in Tax and Identity Theft SchemeRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Alexis Brett Travers, age 38, of Baltimore, Maryland, today to three years in prison followed by three years of supervised release for two counts of aiding in the preparation of false tax returns and aggravated identity theft. Judge Blake also entered an order that Travers pay $98,189 in restitution to the IRS for three years of personal taxes that she failed to pay, plus interest.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Return preparer fraud and identity theft are devastating for the victims, threaten the veracity of our tax system and cause tremendous financial hardship,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Investigating refund fraud and identity theft is a top priority for IRS Criminal Investigation and we, along with our partners at the Department of Justice, will continue to pursue the criminals who commit these crimes and steal from innocent taxpayers and the U.S. Treasury."
According to her guilty plea, Travers owned ATB Tax Prep and Consulting Service which she operated out of her homes in Gwynn Oak, Maryland, and most recently, Baltimore. From 2006 to 2009, Travers concealed her identity as the paid tax preparer by not listing her or her company’s name on the federal income tax forms she filed, and by filing the forms electronically without obtaining a provider’s electronic filing identification number.
Travers filed at least 26 tax returns containing false business losses for taxpayers who did not operate a business, resulting in a tax loss of $137,406. Travers obtained a fee for her services from the deposit by the IRS of the tax refund into a bank account she controlled. Her fee was sometimes as high as $1,000 per taxpayer.
Travers failed to report the fees on her 2006, 2007 and 2008 tax returns, resulting in an additional tax loss of at least $87,000 for those three years.
Additionally, the tax return filed by Travers for a client, G.A., for tax year 2008 contained a false claim for the earned income credit. Travers stole personal identifying information, including year of birth and social security number, from another client to use in G.A.’s tax return in order to obtain a greater tax refund for G.A. The tax refund was then deposited into Travers’ bank account.
The total tax loss in this case is $224,000.
United States Attorney Rod J. Rosenstein commended the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who prosecuted the case.
Arizona Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Kevin James Fitzgerald, 19, of Tucson, Ariz., pleaded guilty this morning in Las Cruces federal court to methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Fitzgerald and his co-defendant Lauren Christine Nunez, 20, also of Tucson, were arrested on the night of Jan. 19, 2013, and charged with methamphetamine trafficking offenses in a criminal complaint. According to the criminal complaint, Fitzgerald and Nunez were arrested after Border Patrol agents found 9.2 pounds of methamphetamine in a vehicle Nunez was driving and in which Fitzgerald was a passenger at the U.S. Border Patrol checkpoint on New Mexico Highway 26 near Truth or Consequences, N.M. The methamphetamine, which was contained in tin foil and cellophane-wrapped bundles, was discovered after a narcotics canine alerted to the vehicle, indicating that it contained controlled substances.
This morning, Fitzgerald pled guilty to a two-count felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In his plea agreement, Fitzgerald admitted that, in Jan. 2013, Nunez and he agreed to transport methamphetamine from Arizona to Nebraska, where they intended to deliver the drugs to another person. Fitzgerald also admitted that the methamphetamine had been delivered to Nunez and him more than a week before they were arrested on Jan. 19, 2013, and acknowledged responsibility for the methamphetamine found in their vehicle that night.
Fitzgerald was remanded into the custody of the U.S. Marshals Service after he entered his guilty plea, and he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Fitzgerald faces a mandatory minimum of ten years and a maximum of life in prison on each of the two offenses to which he pleaded guilty.
Nunez has entered a not guilty plea to the criminal complaint. Charges in criminal complaints are merely accusations and all criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the DEA and the Truth or Consequences Border Patrol Station of U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Brock E Taylor of the U.S. Attorney’s Las Cruces Branch Office.
Anchorage Drug Dealer sentenced in Federal CourtRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for his conviction of possession of controlled substances with intent to distribute.
Tristan Jamal Grant, 27, was sentenced today by U.S. District Court Judge Sharon L. Gleason to 47 months’ prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the defendant at trial, in November 2011, Grant possessed a total of 1.7 grams of crack cocaine, packaged in thirteen individual bindles. Law enforcement discovered the crack cocaine while executing an arrest warrant for Grant stemming from two unrelated cases charged by the State of Alaska. At the time of Grant’s arrest, he also possessed over one thousand dollars in cash and a type of digital scale commonly used to weigh illegal controlled substances. When the U.S. Marshals Service Fugitive Task Force found Grant, he was driving a white Cadillac, which was registered to Grant and another individual. Members of the Task Force observed a Heckler and Koch .40 caliber handgun partially exposed underneath the driver’s seat where Grant had been sitting. The firearm was loaded with ten rounds of ammunition. In November 2012, a jury convicted Grant of possessing the crack cocaine with intent to distribute.
At sentencing, Judge Gleason found that Grant was likely aware of the presence of the firearm, which resulted in a sentencing enhancement. Judge Gleason also found a sentencing enhancement for obstructing justice, as Grant attempted to influence a witness prior to trial and presented perjured testimony while under oath. Grant has other felony convictions for robbery, misconduct involving a controlled substance and assault in the third degree for causing fear of injury with a weapon.
Prior to imposing sentence, Judge Gleason noted a need to deter the defendant from further criminal conduct, as well as a need to protect the public from drug trafficking.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases. Assistant U.S. Attorneys’ Stephanie Carowan Courter and Kimberly Sayers-Fay participated in the sentencing phase of this case.
Amgen to Pay U.S. $24.9 Million to Resolve <br /> False Claims Act AllegationsRead the Press Release
Amgen Inc., a California-based biotechnology company, has agreed to pay the United States $24.9 million to settle allegations that it violated the False Claims Act, the Justice Department announced today. Amgen develops, manufactures, and sells pharmaceutical products, including products sold under the trade name Aranesp.
The settlement resolves allegations that Amgen paid kickbacks to long-term care pharmacy providers Omnicare Inc., PharMerica Corporation and Kindred Healthcare Inc. in return for implementing “therapeutic interchange” programs that were designed to switch Medicare and Medicaid beneficiaries from a competitor drug to Aranesp. The government alleged that the kickbacks took the form of performance-based rebates that were tied to market-share or volume thresholds. The government further alleged that, as part of the therapeutic interchange program, Amgen distributed materials to consultant pharmacists and nursing home staff encouraging the use of Aranesp for patients who did not have anemia associated with chronic renal failure.
“We will continue to pursue pharmaceutical companies that pay kickbacks to long-term care pharmacy providers to influence drug prescribing decisions,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Patients in skilled nursing facilities deserve care that is free of improper financial influences.”
“By this agreement we are making important strides in holding drug manufacturers accountable for fraudulent and abusive practices not only in South Carolina but nationwide,” said William Nettles, U.S. Attorney for the District of South Carolina. “I am proud of the tireless work of this office to investigate this case across the country.”
This civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil actions on behalf of the United States and share in any recovery. The False Claims Act suit was filed in the U.S. District Court for the District of South Carolina, and is captioned United States ex rel. Kurnik v. Amgen Inc., et al.
Acting Assistant Attorney General Delery noted that the settlement with Amgen, Inc. was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office for the District of South Carolina, and the U.S. Department of Health and Human Services, Office of Inspector General.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Related Materials:
Amgen Settlement Agreement
Albuquerque Man Pleads Guilty to Four Commercial Robberies and Unlawful Possession of A FirearmRead the Press Release
Plea Agreement Requires Fifteen Year Prison SentenceALBUQUERQUE – Alfonso Lezine, 40, of Albuquerque, N.M., pled guilty this morning to robbing four Albuquerque-area businesses and being a felon in possession of a firearm under a plea agreement with the U.S. Attorney’s Office. Under the terms of his plea agreement, Lezine will be sentenced to 15 years in prison followed by three years of supervised release.
Lezine was arrested on Aug. 21, 2012, on a six-count indictment charging him with four counts of violating the Hobbs Act by robbing businesses engaged in interstate commerce; one count of using a firearm during a crime of violence; and one count of being a felon in possession of a firearm. The indictment alleged that Lezine committed four commercial robberies in Albuquerque between Oct. 2011 and March 2012.
During this morning’s proceedings, Lezine plead guilty to Counts 1, 3, 4 and 5 of the indictment, each of which charged him with a Hobbs Act robbery, and Count 6, which charged him with unlawful possession of a firearm. In entering his guilty plea, Lezine admitted robbing the following Albuquerque businesses: (1) the Family Dollar, located at 2001 2nd Street NW, on Oct. 15, 2011; (2) the same Family Dollar on March 6, 2012; (3) the Allied Cash Advance, located at 3821 Menaul NE, on March 20, 2012; and (4) the Family Dollar, located at 9550 Sage Road SW, on March 14, 2012. Lezine also admitted that he unlawfully possessed a firearm on March 20, 2012. According to court records, Lezine was prohibited from possessing firearms and ammunition because he previously had been convicted of residential burglary and a Hobbs Act robbery and using a firearm in relation to a crime of violence in California.
Lezine was arrested on state charges on March 20, 2012, and remained in state custody until he was transferred to federal custody in connection with this case. Lezine will remain in federal custody pending his sentencing hearing, which has yet to be set.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. The new initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the District Attorney’s Office for the Second Judicial District of the State of New Mexico, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Monday 15 April 2013
Upcoming Jacksonville Fraud Summit to Arm Consumers with Information to Protect Themselves Against Fraud SchemesRead the Press Release
Federal Agencies Host Conference Open to the Public
Jacksonville, FL - United States Attorney Robert E. O'Neill announces that his office, in conjunction with the Federal Bureau of Investigation, and the Florida Department of Law Enforcement will host a fraud conference for the general public on Wednesday, April 24, 2013 (8:30 a.m. to 1:30 p.m.). The conference will be held at the Florida Department of Law Enforcement Jacksonville Regional Operation Center located at 921 North Davis Street (Building E ) in Jacksonville. Admission is free.
Investor fraud, identity theft, cyber intrusion, and financial exploitation of the elderly are serious national problems. Our country's recent financial crisis has resulted in an unprecedented rise in investment fraud schemes, tax fraud, and other financial crimes, involving thousands of victims and staggering losses. The United States Attorney's Office and its federal, state, and local law enforcement partners are hosting this conference to educate the public about the fraudulent schemes that are being perpetrated in our region and to provide information on resources and strategies to protect citizens from becoming a victim of these types of crime.
Members of the public are invited to attend this conference. Admission is free and educational materials will be provided, but space is limited. To RSVP for the conference, please call (904) 301-6341 or send an e-mail to [email protected].
This conference is part of the ongoing efforts of the Financial Fraud Enforcement Task Force which was created by President Obama in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. For more information on the task force, visit www.stopfraud.gov.
(Download Conference Flyer )
United States Settles with SugarHouse Casino over Environmental ViolationsRead the Press Release
PHILADELPHIA - SugarHouse HSP Gaming, LP, has agreed to pay the United States $650,000 to resolve claims that it performed unauthorized work at the SugarHouse casino and entertainment complex along the Delaware River in Philadelphia, in violation of the Clean Water Act and the Rivers and Harbors Act. The resolution was announced by United States Attorney Zane David Memeger.
The Clean Water Act requires SugarHouse to obtain a United States Army Corps of Engineers (“Army Corps”) permit before discharging dredged and/or fill material into waters of the United States. The Rivers and Harbors Act requires SugarHouse to obtain an Army Corps permit for all work in or affecting navigable waters of the United States.
As a result of an investigation by the Army Corps, the United States asserts that from 2009 to 2010, SugarHouse, and or persons acting on its behalf, conducted work and discharged dredged and/or fill material into waters of the United States, at the SugarHouse site, without an Army Corps permit, in violation of the Clean Water Act and the Rivers and Harbors Act. Specifically, despite three cease and desist letters by the Army Corps, SugarHouse performed unauthorized work on several occasions at areas immediately surrounding the casino that included along Piers 42 and 43. The settlement agreement attaches an aerial photo showing the location of each alleged violation, and contains more information regarding when each violation occurred, and when subsequent remedial measures were taken. The unauthorized work remaining at the final location is permitted pursuant to the terms of the settlement agreement.
“This case reinforces our commitment to protecting the environment by ensuring that corporations either follow environmental laws or face serious sanctions,” Memeger said.
To ensure that the environment receives the maximum benefit from this resolution, the settlement requires SugarHouse to pay the majority of the money, $625,000, to the Brandywine Conservancy, which is an Army Corps-approved non-profit conservation organization with demonstrated experience in land and water conservation. The Army Corps will ensure that the $625,000 will be used towards protecting waters and wetlands in the five county area. The remaining $25,000 payment will be made to the United States as a civil penalty in accordance with the Clean Water Act and the Rivers and Harbors Act.
This case was handled by Assistant United States Attorney Stacey L. B. Smith. United States Army Corps of Engineers agency counsel, Barry Gale, and surveillance and enforcement biologists, Jeffrey Steen and Kevin Maley, conducted site visits, and shared technical and legal expertise.
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, 215-861-8525Two New Jersey Men Sentenced to Decades in Prison for Conspiring to Kill Overseas with Designated Foreign Terrorist Organization Al ShabaabRead the Press Release
NEWARK, N.J. – Two New Jersey men convicted for conspiring to travel to Somalia to join a terrorist group and murder individuals whose beliefs and practices did not align with their extremist ideology were sentenced today to 22 and 20 years in prison, respectively, New Jersey U.S. Attorney Paul J. Fishman announced.
Mohamed Hamoud Alessa, 23, of North Bergen, who was sentenced to 264 months in prison, and Carlos Eduardo Almonte, a/k/a “Omar,” 27, of Elmwood Park, who was sentenced to 240 months in prison, previously pleaded guilty to one count of conspiring to murder persons outside the United States on behalf of designated Foreign Terrorist Organization Al Shabaab. The defendants entered their guilty pleas before U.S. District Judge Dickinson R. Debevoise, who also imposed the sentences today in Newark federal court.
On June 5, 2010, Alessa and Almonte were taken into custody by pre-staged arrest teams as they attempted to board separate international flights at JFK International Airport. They have been held in continuous custody since their arrests by order of U.S. Magistrate Judge Madeline Cox Arleo.
“Alessa and Almonte wanted to join terrorists who shared their violent, extremist ideology so they could murder those who did not,” said U.S. Attorney Fishman. “We need not speculate about their intentions: their own words confirm the deadly mission for which they trained, planned and attempted to embark. Their decades-long sentences are both a just punishment for their admitted actions and a warning to others who would be tempted down this dead-end path.”
According to documents filed in this case and statements made in court:
Alessa and Almonte admitted that they planned to travel outside the United States to join Al Shabaab, an international terrorist group based in Somalia, knowing the group was engaged in carrying out violent attacks against individuals in that country – including members of the Transitional Federal Government of Somalia and African Union soldiers. As part of this campaign, Al Shabaab has conducted military assaults, bombings and other violent acts, and has attempted through its media operations to recruit foreigners – including Americans and other westerners – to join its ranks.
In October 2006, the FBI received a tip concerning the defendants’ activities. As the investigation continued, an NYPD Intelligence Division undercover officer recorded numerous meetings and conversations with them, during which the defendants discussed and prepared to carry out their plan.
The defendants admitted that those preparations included: saving and pooling thousands of dollars; physically conditioning themselves by, among other things, lifting weights and running; engaging in combat simulations using paintball guns, computer software and other items; acquiring tactical clothing, hydration systems and other equipment; and purchasing airline tickets to Egypt with the intent to then travel to Somalia. They also admitted that as part of their plan, Alessa and Almonte had traveled to Jordan in February 2007 and while there, inquired about opportunities to meet with groups committed to establishing Islamic law through violence.
Additionally, Alessa and Almonte admitted that they acquired, viewed and displayed for others audio, video and written materials – produced by and relating to Al Qaeda, Al Shabaab and other extremist groups – which advocated, depicted and/or sought to justify the killing of individuals who opposed them, including civilians.
In addition to the prison terms, Judge Debevoise sentenced Alessa and Almonte to lifetime terms of supervised release.
U.S. Attorney Fishman praised the outstanding work of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Newark Joint Terrorism Task Force (JTTF); the New York City Police Department, under the direction of Commissioner Raymond W. Kelly; and the State of New Jersey Office of Homeland Security and Preparedness, under Director Edward Dickson, in conducting the investigation leading to today’s sentences. The JTTF is made up of agents and officers of the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations; the U.S. Department of Homeland Security’s Customs and Border Protection; the U.S. Department of State; the New Jersey State Police; the Jersey City Police Department; the Bayonne Police Department; the Port Authority of New York and New Jersey Police Department; and other law enforcement agencies.
The government is represented by Chief Andrew Kogan and Assistant U.S. Attorney L. Judson Welle of the U.S. Attorney’s Office National Security Unit, and Alamdar S. Hamdani, Deputy Chief, Counterterrorism Section of the Justice Department’s National Security Division.
13-168
Defense counsel:
Alessa: Stanley L. Cohen Esq., New York
Almonte: James Patton Esq., Livingston, N.J.Third Active Shooter Training to be Offered this FridayRead the Press Release
BUFFALO. N.Y. – In the wake of the shooting tragedies in Webster, New York and Newtown, Connecticut, U.S. Attorney William J. Hochul, Jr. announced today that the United States Attorney’s Office is sponsoring the third training session dedicated to preventing mass shootings and violence. The focus of the training is protecting and preventing mass shooting episodes in businesses and similar commercial settings, and will be valuable for employers, employees, and members of law enforcement.
"Active Shooter: Educate Yourself to Protect Yourself" will be held this Friday, April 19, 2013 from 8:00 a.m. to 1:00 p.m. at Hilbert College. Participants will learn how to spot aggression in the workplace, appropriate response techniques to shooting episodes, what to do before police arrive, and tips on creating an emergency plan for business.
The training is free and open to all businesses, large and small, in the 17 counties of the Western District of New York.
"Our Office is committed to prosecuting those who commit violence in our community, but this response is after-the-fact," said U.S. Attorney Hochul. “It is even more important that the public learn from experts in the field exactly how to protect staff and facilities in the first place. Our first two trainings focused on officer response and safety in the school systems. This third training – focusing on the work place- is an important piece in our overall strategy of making Western New York one of the safest communities in the country."
U.S. Attorney Hochul noted that more than 1,600 people attended the first two training sessions, "Street Survival and Officer Safety" and "Understanding Human Aggression and Violence, and Making Our Schools Safe," held in February and March, respectively. Hochul predicted that the third training will also be well attended, given that it will be conducted by professionals with a long history of work in the field. Speakers include James H. Robertson, Delaware North Companies Director of Corporate Securities and former Special Agent in Charge of the Buffalo FBI Office, George W. Gast, Niagara Frontier Transit Authority Chief of Police and also a former member of the FBI, including the FBI’s Hostage Rescue Team, and Gary M. Everett, Canisius College Director of Public Safety.
U.S. Attorney Hochul said that "There is no single solution to preventing all violent crime. Certainty denial - or mere hope - is not a strategy for preventing violence. By working collaboratively, we all can be prepared to prevent and respond to the next episode should it ever occur."
Friday's event is sponsored by the U.S. Attorney's Office, Western District of New York; the Better Business Bureau of Upstate New York; the Niagara Frontier Transit Authority Police; Delaware North Companies; Medaille College; Hilbert College; Canisius College Public Safety; Erie County Law Enforcement Foundation; ASIS International; and Greater Buffalo Metropolitan Crime Stoppers.
Tax Preparer Charged with Aggravated Identity Theft and Million Dollar Tax FraudRead the Press Release
Cynthia Lozano, a tax preparer from Lemon Grove, was arrested today and an indictment was unsealed in connection with a scheme to steal Social Security numbers, file false tax returns, and defraud the Internal Revenue Service ("IRS"). She was taken into custody by IRS agents in Phoenix, Arizona, where she will make her first appearance in U.S. District Court tomorrow.
According to a federal grand jury indictment, Lozano owned and operated the tax preparation business, "CLozano Income Tax," in Spring Valley, California. From 2010 to the present, Lozano used her business to submit fraudulent federal income tax returns seeking bogus refunds. In carrying out this scheme, Lozano made false statements which caused the IRS to issue refunds under the EIC provisions. An EIC is a refundable federal income tax credit for low- to moderate-income working individuals and families that is intended to offset the burden of social security taxes and to provide an incentive to work. If a taxpayer's EIC exceeds the amount of taxes actually owed, it results in the IRS paying a refund to the taxpayers who claim and qualify for the credit.
As reflected in charging documents, Lozano targeted over 200 victims by filing fraudulent IRS Forms 1040 in the taxpayers' names. Frequently, the taxpayers were unaware that Lozano used their Social Security numbers thus also becoming victims of aggravated identity theft. As a result, Lozano improperly received over $1 million from the IRS in fraudulent refunds which she laundered through a bewildering maze of bank accounts.
Using the proceeds of this fraud, Lozano, among other things, purchased 20 properties in and near Phoenix, Arizona. Her indictment seeks forfeiture of these properties to recompense the government from the loss of her fraud and to prevent Lozano from reaping a financial benefit from her crimes.
United States Attorney Laura Duffy said, "In these times of financial hardship, tax fraud is essentially a theft from each and every citizen who shoulders their rightful share of the tax burden." She added that the U.S. Attorney's Office is committed to stopping the recent increase in theft of personal identification information and its use in a variety of criminal offenses."
N. Dawn Mertz, Special Agent in Charge for IRS Criminal Investigation, said, “The IRS takes particular interest in cases where someone, for their own personal benefit, steals the identity of others to file false tax returns with the IRS. Taxpayers deserve our unwavering vigilance in the investigation and prosecution of allegations of identity theft and tax fraud by unscrupulous tax professionals who victimize others.”
DEFENDANT Case Number: 13cr1354AJB Cynthia Lozano SUMMARY OF CHARGESCounts 1-13 Title 18, United States Code, Section 287 (false claims) Maximum penalty: 5 years of custody; $250,000 Fine
Counts 14-25 Title 18, United States Code, Section 1343 (wire fraud) Maximum penalty: 20 years of custody; $250,000 Fine
Count 26 Title 18, United States Code, Section 1341 (mail fraud) Maximum penalty: 20 years of custody; $250,000 Fine
Counts 27-33 Title 18, United States Code, Section 1028A (aggravated identity theft) Minimum penalty: 2 years of custody, consecutive to sentence for other crimes; No Probation; Fine same as for underlying offense
AGENCIESInternal Revenue Service - Criminal Investigations ("IRS-CI")
Department of Treasury, Inspector General for Tax Administration ("TIGTA")An indictment itself is not evidence that the defendants committed the crimes charged.
The defendants are presumed innocent until the Government meets its burden in court
of proving guilt beyond a reasonable doubt.Tamaroa Man Sentenced for Bankruptcy FraudRead the Press Release
David E. Woodside, 37, of Tamaroa, Illinois, was sentenced Friday, April 12, 2013, in United States District Court in Benton to a term of 3 years’ probation for fraudulently concealing assets from the United States Trustee and the chapter 7 trustee during the pendency of his 2009 bankruptcy case in the United States Bankruptcy Court, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Woodside waived indictment by a Grand Jury and pled guilty to an information charging him with that offense on December 7, 2012.
“This is another example of how I will not tolerate fraud and cheating in our court processes.” said United States Attorney Wigginton. “My goal is to keep our processes fair for all Southern Illinoisans.”
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Southern Illinois, Central Illinois, and Indiana (Region 10). “I am gratified by the actions taken by United States Attorney Wigginton and our law enforcement partners to prosecute those who engage in fraudulent conduct.”
Evidence introduced in support of the guilty plea and sentence showed that in 2009 Woodside filed a bankruptcy petition in which he sought to discharge $49,446.00 in debts he owed to various creditors. Under bankruptcy law, Woodside was required to list all of his assets, including any interest he might have in any lawsuit from which he might receive a settlement or award of damages. Woodside repeatedly failed to disclose on his petition or to the Chapter 7 Trustee that he expected to receive a settlement of $10,667.18 from a class action lawsuit related to a 2003 train derailment near his residence in Tamaroa. The Chapter 7 Trustee, however, independently discovered the existence of the settlement and was able to seize the funds and distribute them to Woodside’s creditors.
In addition to the 3 year term of probation, Woodside was ordered to pay to the United States fines and special assessments totaling $600 and to perform 30 hours of community service.
The case was investigated by the Federal Bureau of Investigation with the assistance of the United States Trustee for Region 10 and the Peoria Office of the United States Trustee. Region 10 of the U.S. Trustee Program is headquartered in Indianapolis, Indiana, with additional offices in Peoria, IL and South Bend, IN. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
San Diego College Pays $700,000 and Former Financial Aid Director Pleads Guilty to Resolve Allegations of Financial Aid FraudRead the Press Release
United States Attorney Laura E. Duffy announced today that United States University, a for-profit college located in San Diego, has agreed to pay a civil settlement in the amount of $686,720 and that the school’s former Financial Aid Director has pled guilty, resolving allegations that between December 2008 and February 2011, the school submitted falsified financial aid applications to the U.S. Department of Education in order to obtain Pell Grant funds for which students were not eligible.
The civil settlement was paid by Educacion Significativa, LLC, and IAC Funding, LLC, doing business as United States University. The school, which has campuses in Chula Vista and Cypress, California, was known as InterAmerican University from 1997 to 2010, when it changed its name to United States University. United States University offers courses of study in nursing and other programs.
The school’s former Financial Aid Director, Christina Miller, pled guilty in federal court (Case Number 13cr1157MMA) to criminal financial aid fraud, in violation of Title 20, United States Code, Section 1097(b), admitting that she knowingly and willfully falsified student financial aid applications, resulting in the improper awarding of federal Pell Grants to ineligible students. Under federal law, students already holding Bachelor’s degrees are generally not eligible for Pell Grant funds, but Miller admitted changing student degree status in order to allow the school to improperly receive Pell Grant funds from the U.S. Department of Education. Miller is scheduled to be sentenced on June 27, 2013.
“We all benefit from successful students’ economic and professional contributions to our country,” said United States Attorney Duffy. “Financial aid fraud not only harms the American taxpayer, but robs our community of that investment. This resolution should send a strong message to those who would choose to fraudulently obtain monies from taxpayer-funded financial aid programs. We will continue to work closely with our investigative partners in taking both criminal and civil measures to combat fraud against government programs.”
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. As the law enforcement arm of the U.S. Department of Education, the Office of Inspector General is committed to fighting student aid fraud and we will continue to aggressively pursue those that participate in these types of crimes,” said Natalie Forbort, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Western Regional Office.
FBI Special Agent in Charge, Daphne Hearn stated, “Fraud and abuse of educational taxpayer-funded programs deprives those who are eligible and most deserving of this financial aid. The FBI and our partners will pursue those who would seek to undermine these programs, so that this important block of financial aid is available for those who need it most.”
The investigation arises from a lawsuit that was brought under the qui tam, or whistleblower, provisions of the federal False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States. As provided by the False Claims Act, the whistleblower in this case, Veronica Glaser, a former student and employee at the school, will receive a share of the recovery.
The investigation and prosecution of this matter was the result of the collaborative effort of the United States Attorney’s Office for the Southern District of California; the Department of Education, Office of Inspector General; and the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher Tenorio is handling the criminal prosecution of Christina Miller. Assistant U.S. Attorneys Joseph Price and Douglas Keehn handled the civil False Claims Act matter brought against United States University.
DEFENDANT Criminal Case Number: 13CR1157-MMA Christina Miller SUMMARY OF CHARGESFinancial Aid Fraud-Title 20, United States Code, Section 1097(b)
INVESTIGATING AGENCIESDepartment of Education, Office of Inspector General
Federal Bureau of InvestigationRochdale Securities Trader Admits to Fraudulent Scheme Involving Nearly $1 Billion Purchase of Apple StockRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that DAVID MILLER, 40, of Rockville Centre, N.Y., waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to conspiracy and fraud offenses related to his role in a fraudulent scheme to make large purchases of stock in Apple Inc. as an institutional sales trader for Rochdale Securities LLC of Stamford.
“This defendant participated in a fraudulent scheme in which he would either reap huge profits through the unauthorized purchase of approximately $1 billion of Apple stock or, if he faced huge losses, explain it away as simple human error,” stated U.S. Attorney Fein. “This scheme caused catastrophic losses for his former employer and was unraveled promptly by the FBI. The U.S. Attorney’s Office and our many partners on the Connecticut Securities, Commodities and Investor Fraud Task Force are committed to protecting investors and the integrity of American capital markets. This investigation is ongoing.”
“Risk is inherent in the investment world, but that risk should never be borne from the actions of investment professionals who choose to serve their own financial agendas rather than those of their clients,” stated FBI Special Agent in Charge Mertz. “As this guilty plea demonstrates, the FBI and its partners on the Connecticut Securities, Commodities and Investor Fraud Task Force will act swiftly to investigate and bring to justice those who violate securities laws.”
According to court documents and statements made in court, MILLER, while working as an institutional sales trader at Rochdale Securities LLC (“Rochdale”) in Stamford, conspired with another individual to execute a trade to buy 1,625,000 shares of stock in Apple Inc. (“Apple”) on behalf of a Rochdale customer whose account Miller handled. As part of the scheme, MILLER and his co-conspirator had agreed that the co-conspirator would submit an order for Apple stock on October 25, 2012, the day Apple was scheduled to announce its earnings for the quarter, and would write the order in such a way that MILLER could later claim he misinterpreted it. MILLER would then execute a trade for 1,000 times the number of shares written in the order. If the trade proved profitable, MILLER and his co-conspirator would share in the profits. If the trade proved unprofitable, MILLER would claim human error, leaving Rochdale holding the losing position.
At approximately 9:31 a.m. on October 25, 2012, MILLER’s co-conspirator submitted an order for Apple that read: “b 125 ok (per 1/2 hr).” MILLER then began executing orders to buy 125,000 shares of Apple stock, purportedly on behalf of the Rochdale customer. Over the course of the day, MILLER entered multiple, separate orders in Rochdale’s order management system in the amount of 125,000 shares. After Apple announced its earnings later that day, the stock price began dropping and it became clear that the trade would not be profitable. When confronted, MILLER falsely claimed that he had made a mistake in ordering many multiples of what was written in a client’s order.
As a result of this scheme, Rochdale was left holding approximately 1,623,375 shares of Apple. It promptly traded out of the position, but suffered a loss $5,292,202.50.
While he was executing the scheme at Rochdale, MILLER also defrauded another broker-dealer into taking on a significant short position in Apple stock. Through a series of misrepresentations made over the course of several weeks, MILLER convinced the broker-dealer to sell 500,000 shares of Apple stock, falsely claiming that he was trading for the account of a company, which he had no relationship with and for which he was not authorized to trade. MILLER engaged in this part of the scheme to hedge against the large purchase of Apple stock he was executing at Rochdale. As a result of the scheme, MILLER placed the broker-dealer at risk of sustaining substantial losses. In the end, the broker was able to trade out of the position at a profit.
MILLER pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud, and one count of wire fraud. He is scheduled to be sentenced by United States District Judge Robert N. Chatigny on July 8, 2013, at which time MILLER faces a maximum term of imprisonment of 25 years.
MILLER has been released on a $300,000 bond since his arrest on December 4, 2012.
This matter is being investigated by the Federal Bureau of Investigation.
U.S. Attorney Fein acknowledged the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) for their substantial assistance and cooperation during the investigation.
The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Physician Sentenced for Drug Fraud ChargeRead the Press Release
CONCORD, NH – Douglas McCullom, 52, of East Wakefield, was sentenced in United States District Court for the District of New Hampshire to serve three years of probation as a result of his conviction for fraudulently obtaining controlled substances, announced United States Attorney John P. Kacavas.
McCullom is a doctor of osteopathic medicine who is licensed to practice medicine in Maine. He worked as a physician for the Department of Veterans Affairs in New Hampshire. In 2010, McCullom wrote approximately 17 prescriptions for oxycodone and OxyContin that were not documented in the medical records of one of his patients. Some of these prescriptions were written for the patient after McCullom was placed on worker’s compensation leave. The patient has stated that he later provided some of these pills to McCullom.
McCullom had a registration with the Drug Enforcement Administration (DEA) that allowed him to write prescriptions for controlled substances. As part of his plea agreement, McCullom has agreed to surrender his DEA registration and never to seek another DEA registration. He also must advise the licensing authorities in Maine about his conviction.
In November of 2012, McCullom entered into a separate civil settlement agreement to resolve allegations that he violated federal regulations when he issued prescriptions that were not for a legitimate medical purpose and were outside the scope of his DEA registration. While not admitting any wrongdoing, McCullom paid $25,000 to resolve his potential civil liability.The case was investigated by the Office of Inspector General of the Department of Veterans Affairs and the Drug Enforcement Administration. The Office of Inspector General of the Office of Personnel Management also provided assistance in this investigation. The case was prosecuted by Assistant U.S. Attorney John J. Farley.
Owners of Gun Store/Beauty Shop Sentenced for Firearms ViolationsRead the Press Release
WICHITA, KAN. – A Butler County couple who ran a combined beauty shop and gun store have been sentenced for federal firearms violations, U.S. Attorney Barry Grissom said today.
Jeffrey Eberhart, 51, Augusta, Kan., was sentenced to five years in federal prison. He pleaded guilty to one count of dealing firearms without a license. His wife, Tracey Eberhart, 42, Augusta., Kan., was sentenced to three years on probation including six months house arrest. She pleaded guilty to one count of failing to keep records of firearms transactions.
The Eberharts operated Traceys Dream Weavers Salon And Sporting Goods at 431 State Street in Augusta, Kan. The store advertised that it was “Where Beauty and Bullets Collide.” In his plea, Jeffrey Eberhart admitted that he bought and sold hundreds of firearms at the store and at gun shows from Oct. 1, 2009, to Aug. 22, 2012. Throughout that time, he was not licensed as a federal firearms dealer because he was a previously convicted felon.
In her plea, Tracey Eberhart admitted that while she held a license as a federal firearms dealer she failed to keep records and make reports to the Bureau of Alcohol, Tobacco, Firearms and Explosives on at least 33 firearms transactions.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case. Other law enforcement agencies that assisted in the case include the Butler County Sheriff’s Department, the Wichita Police Department, the Augusta Police Department, the Kansas Bureau of Investigation and the U.S. Marshals Service.
Orange, Ohio, Man Pleaded Guilty to Overbilling Medicaid and Medicare by $2.5 MillionRead the Press Release
A man who lives in Orange, Ohio, admitted to overbilling Medicaid and Medicare by more than $2.5 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Divyesh “David” C. Patel, age 39, pleaded guilty to one count of conspiracy to commit health care fraud and four counts of health care fraud. Patel is expected to be sentenced later this year.
“This defendant enriched himself and his company by flouting rules designed to protect the public,” Dettelbach said.
“Mr. Patel defrauded the tax payers by scamming Medicaid and Medicare,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Waste, fraud and abuse take critical resources out of our health care system and contribute to the rising cost of health care for all Americans.”
Patel was the owner and president of Alpine Nursing Care, Inc., located at 4753 Northfield Road, Suite 5, North Randall, Ohio, employed Belita Mable Bush, as the office manager and director of provider services from June 1, 2006 through October 18, 2009, according to court documents.
Patel and Alpine employed Bush to prepare and submit the billings to Medicaid and Medicare for reimbursement for services provided by Alpine as a home health care provider, even though Patel knew that Bush had been previously convicted of a health care-related felony that excluded Bush from being involved in any way with Alpine’s Medicaid and Medicare billings, according to court documents.
In addition to the fact that Bush was excluded from handling Alpine’s medical billings, Patel was aware that Bush falsified documents related to health care services allegedly provided to home health patients where the services were never provided, or were provided by home health aide that had previous criminal convictions that excluded them from providing health services in people’s houses, according to court documents.
As a result of the conspiracy, Medicaid and Medicare suffered a loss of approximately $2,564,392, according to court documents.
Bush was convicted on related charges and is scheduled to be sentenced May 28.
The defendant's sentence will be determined by the court after review of factors unique to this case, including any prior criminal record, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Mark S. Bennett and Special Assistant General Constance A. Nearhood, following an investigation by the Office of the Inspector General, Department of Health and Human Services, Cleveland, Ohio; Ohio Attorney General’s Office, Medicaid Fraud Control Unit; and the Federal Bureau of Investigation, Cleveland, Ohio.
If you suspect health care fraud, waste or abuse, please report it by calling HHS Office of Inspector General at 800-447-8477, the Centers for Medicare & Medicaid Services at 800-633-4227, or the FBI Cleveland Field Office at (216) 522-1400. To learn more about health care fraud prevention and enforcement go to www.medicare.gov.
Ohio Man Sentenced to 4 Years in Prison for Precious Metals SchemeRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II sentenced Dustin Michael Letourneau (29, Warren, Ohio) last week to four years in federal prison for mail fraud and wire fraud. Letourneau was also ordered to serve a 3-year term of supervised release following his prison term, and to pay $240,481 in restitution to his victims. Letourneau pleaded guilty on January 17, 2013.
According to his plea agreement, Letourneau was the chief executive officer of Letourneau Holdings Inc., which was also known as LH Metals. Letourneau Holdings claimed to invest in silver, gold, and palladium bullion on behalf of investors. Investors would give Letourneau Holdings money to invest in these items on the commodities market. Letourneau represented to investors that the physical bullion was held on their behalf with one of Letourneau Holdings' counter parties. Rather than invest the funds as had been represented, Letourneau used significant portions of the investors' funds for his personal benefit. During the investigation, a confidential law enforcement source recorded several conversations with Letourneau. In those recorded conversations, Letourneau admitted that he had not been purchasing precious metals. He stated, [I’m] “being stupid with my money.” He also said that would be prosecuted for mail fraud because “the proof is all there."
To deceive his investors into believing that he was using the money to purchase precious metals, Letourneau had trade confirmations and monthly account statements sent to investors. The confirmations and statements falsely represented precious metals purchases. Letourneau was successful in defrauding 19 victims out of more than $240,000.
This case was investigated by the Federal Bureau of Investigation and the Florida Office of Financial Regulation, Bureau of Financial Investigations. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Obstruction Charges Filed in Ongoing FCPA Investigation <br /> into Alleged Guinean Mining Rights Bribe SchemeRead the Press Release
Frederic Cilins, 50, a French citizen, has been arrested and accused of attempting to obstruct an ongoing investigation into whether a mining company paid bribes to win lucrative mining rights in the Republic of Guinea.
Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Preet Bharara, the U.S. Attorney for the Southern District of New York; and George Venizelos, the Assistant Director in Charge of the FBI’s New York Field Office, made the announcement.
“Mr. Cilins is charged with scheming to destroy documents and induce a witness to give false testimony to a grand jury investigating potential violations of the Foreign Corrupt Practices Act,” said Acting Assistant Attorney General Raman. “The Justice Department is committed to rooting out foreign bribery, and we will not tolerate criminal attempts to thwart our efforts.”
“A grand jury can never learn the truth, and justice cannot prevail, where documents are intentionally destroyed and testimony is tainted by lies,” said U.S. Attorney Bharara. “As alleged, Frederic Cilins attempted to obstruct a significant investigation by corrupting evidence and testimony in precisely those ways. With today’s arrest, he now begins his own path to justice for his alleged conduct.”
“As alleged, Cilins attempted to buy evidence he sought to destroy,” said FBI Assistant Director in Charge Venizelos. “The destruction of evidence was in furtherance of Cilins’s alleged effort to obstruct an investigation into a bribery scheme. In effect, he was allegedly willing to commit bribery in an effort to cover up a bribery.”
Cilins was arrested in Jacksonville, Fla., on April 14, 2013, and a criminal complaint was filed in the Southern District of New York today charging Cilins with tampering with a witness, victim or informant; obstructing a criminal investigation; and destroying, altering or falsifying records in a federal investigation. The obstruction charge carries a maximum penalty of five years in prison, and the tampering and record-destruction charges each carry a maximum penalty of 20 years in prison. Cilins made an initial appearance in the Middle District of Florida and was detained pending a detention hearing scheduled for April 18, 2013.
According to the complaint, Cilins allegedly attempted to obstruct an ongoing federal grand jury investigation concerning potential violations of the Foreign Corrupt Practices Act and laws proscribing money laundering. The complaint states the federal grand jury is investigating whether a particular mining company and its affiliates – on whose behalf Cilins has been working – transferred into the United States funds in furtherance of a scheme to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins allegedly agreed to pay substantial sums of money to induce a witness to the bribery scheme to turn over documents to Cilins for destruction, which Cilins knew had been requested by the FBI and needed to be produced before a federal grand jury. The complaint also alleges that Cilins sought to induce the witness to sign an affidavit containing numerous false statements regarding matters under investigation by the grand jury.
The complaint alleges that the documents Cilins sought to destroy included original copies of contracts between the mining company and its affiliates and the former wife of a now-deceased Guinean government official, who at the relevant time held an office in Guinea that allowed him to influence the award of mining concessions. The contracts allegedly related to a scheme by which the mining company and its affiliates offered the wife of the Guinean official millions of dollars, which were to be distributed to the official’s wife as well as ministers or senior officials of Guinea’s government whose authority might be needed to secure the mining rights.
According to the complaint, the official’s wife incorporated a company in 2008 that agreed to take all necessary steps to secure the valuable mining rights for the mining company’s subsidiary. That same contract stipulated that $2 million was to be transferred to the official’s wife’s company and an additional sum was to be “distributed among persons of good will who may have contributed to facilitating the granting of” the valuable mining rights. According to the complaint, in 2008, the mining company and its affiliates also “commit[ted] to giving 5% of the shares of stock” in particular mining areas in Guinea to the official’s wife.
A complaint is merely an accusation, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elisha J. Kobre of the Southern District of New York. The case is being investigated by the FBI. The Justice Department’s Office of International Affairs and Office of Enforcement Operations have also assisted in the investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Nigerian Man Sentenced for Craigslist ScamRead the Press Release
PHILADELPHIA - Adebowale Ayodeji Owoaje, 31, of Nigeria, was sentenced today to 24 months in prison for wire fraud in a scheme to defraud individuals who were selling items and applying for jobs on Craigslist.com. Using various aliases while he was located overseas, Owoaje used e-mail to reach an agreement with the individuals on the sale price of items or terms of employment, including funds for a purported bonus or training materials. Owoaje pleaded guilty on January 15, 2013. He has been in federal custody since March 2012.
From overseas, Owoaje sent counterfeit cashier’s checks to his co-conspirators here in the United States. Based on instructions from Owoaje, a co-conspirator typed amounts on counterfeit cashier’s checks that exceeded the sales price or bonus agreed to by Owaoje and the individuals. The co-conspirator then mailed the counterfeit cashier’s checks to the individuals.
Owoaje informed individuals that a check in the wrong amount was sent to them by “mistake.” Owaoje then asked individuals to deposit that check in their bank account and to keep the amount Owoaje owed the individual plus an additional sum for their trouble. Owoaje instructed individuals to wire the balance of the money via Western Union to a co-conspirator, whom Owoaje falsely represented to individuals as his secretary or shipping agent. Only after wiring this money did individuals learn that the cashier’s checks they received were counterfeit.
In addition to the prison term, U.S. District Court Judge Mary A. McLaughlin ordered $193,175.86 in restitution, three years of supervised release and a $400 special assessment.The case was investigated by Immigrations and Customs Enforcement Homeland Security Investigations and was prosecuted by Assistant United States Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Newark, N.J., Man Sentenced to 55 Months in Prison for CarjackingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 55 months in prison for his role in a carjacking on March 14, 2012, U.S. Attorney Paul J. Fishman announced.
Anthony Reynolds, 18, previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh in Newark federal court to an Information charging him with one count of theft of a motor vehicle by force, violence and intimidation.
According to documents filed in this case and statements made in court:
Reynolds admitted that on March 14, 2012, he was a passenger in a BMW that had stopped at an intersection in Newark. Reynolds exited the vehicle and approached the driver’s side of a Porsche 911 Turbo that was stopped behind the BMW. Reynolds brandished a .38-cal. revolver at the driver of the Porsche 911 Turbo and ordered the driver out of the car. Once the driver got out of the car, Reynolds attempted to drive away in the Porsche 911 Turbo, but was unable to operate its manual transmission. A police chase ensued on foot and the police apprehended Reynolds.
In addition to the prison term, Judge Cavanaugh sentenced Reynolds to three years of supervised release.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Organized Crimes/Gangs Unit in Newark.
13-167Defense counsel: Joseph Ferrante Esq., Newark