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29 May 2013
St. Michael Man Sentenced for Involuntary ManslaughterRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on May 29, 2013, Jamie Lee Belgarde of St. Michael, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of involuntary manslaughter. Belgarde pleaded guilty to the charge on March 6, 2013.
Judge Erickson sentenced Belgarde to two years’ imprisonment to be followed by three years of supervised release. Belgarde was ordered to pay restitution in the amount of $4,500 to the Spirit Lake Tribe and to pay a $100 special assessment to the Crime Victim's Fund.
On June 23, 2012, Belgarde, 38, while intoxicated and driving at a high rate of speed, failed to negotiate a curve in the road, causing the vehicle to leave the road. The vehicle vaulted, rolled, and eventually came to rest upside down in a field.
Belgarde’s brother, Donald Belgarde, Jr., who was a passenger in the vehicle, was pronounced dead at the scene. The incident happened on the Spirit Lake Indian Reservation.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Seven People Charged in $2 Million Tax Refund Check ScamRead the Press Release
NEWARK, N.J. – Seven people allegedly involved in an extensive scheme to obtain millions of dollars through fraudulently obtained refund checks issued by the U.S. Treasury were charged today with conspiring to steal government funds, U.S. Attorney Paul J. Fishman announced.
Fausto Bernard, 48, of Newark, N.J., was arrested this morning by special agents of IRS-Criminal Investigation, postal inspectors from the U.S. Postal Inspection Service, and special agents of the U.S. Secret Service. Gloria Rivera, 39, of Bronx, N.Y.; and Lourdes Ortiz, 40, of Ridgewood, N.Y. surrendered to special agents of the USPS-OIG. Luis Pena, 43, of Yonkers, N.Y., was arrested Tuesday night by special agents of the U.S. Postal Service, Office of the Inspector General. They will make their initial appearances before U.S. Magistrate Judge Madeline Cox Arleo this afternoon.
Defendant Raymundo Hernandez, 34, of Bronx, N.Y., is incarcerated in the Southern District of New York on other charges and is scheduled to make his initial court appearance on Friday.
Defendants Wellington Feliz, 30, of Bronx, N.Y., and Isaias Hernandez, 38, of Bronx, N.Y., remain at large. All seven defendants are charged by criminal Complaint with one count of conspiring to steal U.S. Treasury checks.
According to the criminal Complaint unsealed today:
Background on Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion a year in losses to the treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF participants complete 1040 tax return forms using the fraudulently-obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund.
- They direct the U.S. Treasury Department to mail the refund checks to locations that the perpetrators control or can access. In some cases, SIRF perpetrators bribe mail carriers to remove the refund checks from their mail routes.
- With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control.
The Investigation
From December 2011 through April 2013, the defendants allegedly engaged in a SIRF scheme that resulted in more than $2 million in losses to the U.S. Treasury. The conspirators directed fraudulent treasury checks to addresses along a mail route they controlled. Once the checks had been intercepted, they were passed along to others and deposited into bank accounts controlled by the conspirators. The resulting proceeds were quickly withdrawn from the bank accounts and used for various personal expenses, including gambling in Atlantic City casinos and purchasing cars.
Rivera and Ortiz were U.S. Postal Service mail carriers who were allegedly bribed to divert checks from their mail route in Queens. After intercepting the checks, Rivera delivered them to Pena for approximately $400 per check. The fraudulently obtained checks ultimately were deposited into straw bank accounts controlled by Feliz, Isaias Hernandez, Raymundo Hernandez, and Bernard.Feliz, Isaias Hernandez, Raymundo Hernandez, and Bernard incorporated businesses in New York or New Jersey. Within a few days of incorporating each business, they opened up a straw bank account at a Sovereign Bank branch in the business’ name. For the next few months, they deposited hundreds of thousands of dollars in fraudulently obtained checks into the straw bank accounts and quickly withdrew significant sums of cash.
Isaias Hernandez, Feliz, and Raymundo Hernandez used the proceeds of the scheme to purchase vehicles at auction. Raymundo Hernandez spent thousands of dollars at Atlantic City casinos.
The conspiracy charge is punishable by a maximum potential penalty of 10 years in prison and a fine of up to $250,000, or twice the gain or loss caused by the offense.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of the U.S. Postal Service-Office of the Inspector General, under the direction of Special Agent in Charge Rafael A. Medina, with the investigation leading to today’s charges.The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Pena, Luis et al. Complaint
Schenectady Woman Indicted on Fraud and Tax ChargesRead the Press Release
Scam Caused the Internal Revenue Service to Send $87,153 to the Woman
Albany, New York — On May 24, 2013, a grand jury returned an indictment charging PATRICIA ALFIERI, age 52, of Schenectady, New York, with (1) five counts of mail fraud; (2) one count of obstructing the Internal Revenue laws; and (3) three counts of filing a false income tax return announced United States Attorney Richard S. Hartunian and Internal Revenue Service Criminal Investigation Special Agent in Charge Toni Weirauch. Trial is set for July 29, 2013 before the Honorable Gary L. Sharpe in Albany, New York.
Counts 1 through 5 charge the defendant with mail fraud. Count 6 charges the defendant with obstructing the Internal Revenue laws. The indictment alleges that the defendant mailed checks to the Internal Revenue Service totaling $3,672,327, drawn on (a) accounts which did not exist; (b) accounts which were closed; and (c) accounts with insufficient funds, causing the Internal Revenue Service to send her six “overpayment” refunds totaling $87,153.99. The maximum potential penalty for each of Counts 1 through 5 is imprisonment for 20 years, supervised release for 3 years, and a fine of $250,000 or twice the gross pecuniary gain or loss. The maximum potential penalty for Counts 6 is imprisonment for 3 years, supervised release for 1 year, and a fine of $3,000 or twice the gross pecuniary gain or loss.
Counts 7 through 9 charge the defendant with filing false personal income tax returns for 2008 through 2010. The indictment alleges that the defendant submitted false returns claiming that she had paid real estate taxes and home mortgage interest when she had not and also that her employer had withheld more income tax than it had. The maximum potential penalty for each of Counts 6 through 9 is imprisonment for 3 years, supervised release for 1 year, and a fine of $100,000 or twice the pecuniary gain or loss.
The Indictment includes allegations for forfeiture of $87,153.99 in proceeds of the mail fraud offenses charged.
ALFIERI was arraigned on May 28, 2013 before the Honorable Christian F. Hummel, United States Magistrate Judge, at the Federal Courthouse in Albany.
This case is being investigated by the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
LOCAL CONTACT: Elizabeth C. Coombe
Assistant U.S. Attorney
Tel: (518) 431-0247San Diego Psychologist Sent to Prison in $1.5 Million Dollar Fraud SchemeRead the Press Release
United States Attorney Laura E. Duffy announced that Roberto J. Velasquez, a San Diego area clinical psychologist, was sentenced today for perpetrating a multi-year fraud scheme to falsify medical certifications to the federal government. In today’s court hearing, Chief District Judge Barry Ted Moskowitz sentenced Velasquez to serve 21 months in federal prison, followed by two years of supervised release and ordered Velasquez to pay more than $1.5 million in restitution to the Social Security Administration.
According to court documents, Velasquez masterminded a scheme whereby he falsely certified that dozens of patients were disabled, when in fact they were not. To further the fraud, Velasquez made up patient histories, fabricated test results, suggested symptoms and complaints that did not exist, intentionally underestimated patient scores on standardized tests, and lied about the length of time he had been seeing the patients. In exchange for each false report, Velasquez charged his patients a $200 kickback.
In his plea agreement, Velasquez admitted that he falsified two different types of disability reports. First, Velasquez falsified Medical Certification for Disability Exception Forms (Forms N-648), which are used by the Department of Homeland Security during the naturalization process. Velasquez’s false certifications allowed certain immigrants to avoid taking the English language and Civics portions of the U.S. citizenship exam. Based on the fraudulent N-648 forms, the Department of Homeland Security granted disability exemptions to approximately 50 immigrants who were not actually disabled.
Velasquez also admitted that he submitted fraudulent medical reports to the Social Security Administration, falsely certifying that certain patients were eligible for disability benefits when he knew they were not. Beginning in 2006, and continuing up to the date of Velasquez’s arrest in April 2012, the Social Security Administration paid out at least $1.5 million in unwarranted disability benefits based on Velasquez’s false certifications. Velasquez also admitted that approximately 33% of his patient files contained fabrications, false statements, and false certifications of disability.
The fraud was uncovered through an undercover operation conducted jointly by the Department of Homeland Security, Immigration and Customs Enforcement/Homeland Security Investigations, and the Office of Inspector General, Social Security Administration. The investigation revealed Velasquez’s disregard for federal disability requirements. He coached his patients who were attempting to skirt the citizenship requirements, instructing them to use poor English during their interviews and not mention that they had a college education. Velasquez also lied about the length of time he had been treating his patients, in order to create a “track record” that would satisfy reviewers at the Social Security Administration, where he had previously worked as a consultant.
This prosecution is a part of the United States Attorney’s Health Care Fraud initiative. United States Attorney Duffy noted, “Combating health care fraud is a top priority of the Department of Justice. Rather than exercising his professional medical judgment to help his patients, this Defendant corrupted the integrity of the system in order to line his own pockets.”
“This investigation uncovered a multi-year fraudulent scheme that exploited the naturalization process for an illicit gain,” said Derek Benner, special agent in charge for HSI San Diego. “HSI is committed to working closely with our counterparts at USCIS to aggressively pursue those who seek their own enrichment by perpetuating immigration benefit fraud that undermines the integrity of America’s legal immigration system.”
Social Security Administration, Office of Inspector General Special Agent in Charge David F. Butler added, “The egregious nature of this crime, facilitated by a trained, qualified clinical practitioner who was entrusted to certify his patients’ disabilities to the federal government for purposes of determining their eligibility for Social Security benefits, cannot and will not be tolerated by the Social Security Administration’s Office of the Inspector General. When brought to our attention, we will aggressively investigate all individuals who are paid and trusted by the government to provide material information concerning an individual’s benefit eligibility.”
DEFENDANT CRIMINAL CASE NO. 12cr1750-BTM Roberto J. Velasquez SUMMARY OF CHARGESCount One - Title 18, United States Code, Section 1546 – False Statements in Immigration
INVESTIGATING AGENCIES
Documents
Count Two - Title 42, United States Code, Section 1383a(a)(2) - False Statements in Applications for SSI Disability BenefitsUnited States Immigration and Customs Enforcement’s Homeland Security Investigations
Office of Inspector General, Social Security AdministrationRed Lake Man Pleads Guilty to Assaulting ManRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 19-year-old Red Lake man pleaded guilty to assaulting a man inside a home located on the Red Lake Indian Reservation. Micah James Waybenais pleaded guilty to one count of assault resulting in serious bodily injury. Waybenais, who was indicted on October 10, 2012, entered his plea before United States District Court Judge John R. Tunheim.
In his plea agreement, Waybenais admitted that on September 11, 2012, he struck the victim with his hands and feet, dragged the victim back into a bedroom after tying speaker wire around his neck. The victim’s injuries included a potentially life-threatening laceration that ran from ear to ear on his neck, requiring hospitalization.
For his crime, Waybenais faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.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.
Pocatello Woman Sentenced to Federal Prison for Trafficking MethRead the Press Release
POCATELLO – Marilyn N. Leones, 42, of Pocatello, was sentenced yesterday to 25 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Leones pleaded guilty to the charge on December 18, 2012.
According to court documents, Leones admitted that on various dates, including October 31, 2011, she distributed in total 50 grams of a mixture or substance containing methamphetamine.
Four co-defendants were sentenced in April 2013 to serve a combined total of 271 months in prison. Juan Aguilar, a Mexican national, and Juan Mendoza, of Menan, Idaho, were sentenced for possession with intent to distribute in excess of 50 grams of methamphetamine. Douglas I. McAdam, of Pocatello, was sentenced to 33 months for possession with intent to distribute in excess of five grams of methamphetamine. Jose Rios-Jimenez, a Mexican national, was sentenced to 16 months – time served – for possession of a firearm by a prohibited person and illegal entry of a removed alien.
Co-conspirator Raymond Camacho, a/k/a Jesus Mendoza Nunez, 58, a Mexican national, pleaded guilty on January 24 to possession with intent to distribute in excess of 50 grams of methamphetamine. A sentencing date has not been set.
The case was investigated by Idaho State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Chubbuck Police Department.
Pleas Entered in Panama Unit CaseRead the Press Release
McALLEN, Texas – Four members of the now defunct Panama Unit have been convicted, United States Attorney Kenneth Magidson announced today. Jonathan Trevino, 29, Claudio Mata, 35, and Eric Alcantar, 29, all of McAllen, and Salvador Arguello, 34, of Edinburg, entered guilty pleas just a short time ago before United States District Judge Randy Crane. Also pleading guilty today was a fifth individual, Gerardo Mendoza-Duran, 30, of Pharr, who was a member of the Hidalgo County Sheriff’s Office (HCSO) but not part of the Panama Unit itself.
Trevino, Arguello, Mata and Alcantar entered guilty pleas to one count of conspiring to possess with the intent to distribute more than five kilograms of cocaine, while Mendoza-Duran pleaded guilty to attempting to aid and abet the possession with the intent to distribute more than five kilograms of cocaine.
From 2010 to December of 2012, Trevino, Arguello, Mata and Alcantar utilized their positions as law enforcement officers to steal narcotics and currency. All four were members of the Panama Unit which was a drug task force operated by the HCSO and comprised of HCSO deputies and officers with the Mission Police Department. The investigation revealed the defendants, upon learning the location of drugs and currency, would use their positions to gain entry into residences and vehicles in order to steal the contraband. Subsequently, the narcotics would be sold to other traffickers for a profit.
Additionally, in exchange for thousands of dollars, Trevino and Mendoza-Duran agreed to use their law enforcement positions to escort multi-kilogram quantities of cocaine as it traveled through Hidalgo County.
Seven others are also charged in relation to this case. Their cases remain pending and they are considered innocent unless proven guilty though due process of law.
All five convicted today face a minimum of 10 years and up to life in prison, along with a potential fine up to $10 million. U.S. District Judge Randy Crane, who accepted the pleas, has set sentencing for Sept. 10, 2013.
The investigation leading to the charges was conducted by the Drug Enforcement Administration, FBI and Homeland Security Investigations. Assistant United States Attorneys James Sturgis and Anibal Alaniz are prosecuting the case.
Owner of A Dallas Medical Equipment Supply Company Is Sentenced to 30 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
Defendant Also Ordered to Pay Nearly $700,000 in Restitution
DALLAS — Olalekan Sorunke, 40, of Rowlett, Texas, was sentenced today by U.S. District Judge Jorge A. Solis to 30 months in federal prison and ordered to pay $691,175 in restitution, following his guilty plea in February 2013 to one count of health care fraud, stemming from the operation of his business, Lincoln Medical Supply, Inc. (Lincoln), in Dallas. Judge Solis ordered that Sorunke surrender to the Bureau of Prisons on July 10, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Lincoln was a durable medical equipment (DME) supply company. As its owner/operator, Sorunke maintained a valid Medicare group provider number to submit Medicare claims for DME. Sorunke submitted Medicare claims that were not medically necessary or were not provided to Medicare beneficiaries. In one instance, for example, in July 2009, Sorunke submitted a claim to Medicare for providing a heavy-duty wheelchair to a beneficiary, when he knew that this beneficiary did not need a wheelchair, much less a heavy-duty wheelchair. He fraudulently billed Medicare $7,689 for that claim.
In total, Sorunke’s scheme resulted in a loss of $691,175. Sorunke used the fraudulently obtained funds for his own personal use.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Mindy Sauter was in charge of the prosecution.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, go to: http://www.stopmedicarefraud.gov/.
Nez Perce Tribe Member Sentenced in Federal Court for BurglaryRead the Press Release
COEUR D'ALENE – Stefan Hiebert, 20, of Lewiston, Idaho, an enrolled member of the Nez Perce Tribe, was sentenced today in United States District Court to six months in prison followed by three years of supervised release for burglary, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge ordered Hiebert to serve the first six months of supervised release on home detention and pay $10,400 in restitution to the victim. He pleaded guilty to the charge on February 5, 2013.
According to the plea agreement, on two separate occasions in March 2012, Hiebert burglarized a barn located on the Nez Perce Indian Reservation, with the intent to steal elk and deer antlers and sheds he knew to be inside. According to court documents, Hiebert stole approximately 30 antlers and sheds with an estimated value of $10,000.
The case was investigated by the Federal Bureau of Investigation.
Newark Man Sentenced to 46 Months in Prison in Scheme to Steal Checks from U.S. MailRead the Press Release
NEWARK, N.J. – A Newark man was sentenced to 46 months in prison for his role in a scheme to steal personal checks from the U.S. mail, fraudulently endorsed them and deposit them into personal checking accounts, U.S. Attorney Paul J. Fishman announced.
Kurtis Steele, 27, pleaded guilty Feb. 21, 2013 before U.S. District Judge Kevin McNulty to an Information charging him with one count of conspiracy to commit bank fraud. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Steele and his conspirators gained access to and stole blank checks that were mailed to unsuspecting victims. Steele and his conspirators then fraudulently endorsed the blank checks for a certain sum and deposited those checks into legitimate bank accounts that they and unnamed conspirators opened at a number of banks, including TD Bank, Bank of America, Capital One Bank, Garden State Community Bank, Hudson City Savings Bank, PNC Bank and Valley National Bank.
Before the victims or banks discovered the checks were fraudulent, Steele and his conspirators had withdrawn the funds, either via Automated Teller Machine (ATM) or by entering the victim bank and filling out a withdrawal slip. U.S. Postal Inspection Service and FBI agents were able to obtain bank video surveillance which captured Steele making fraudulent deposits of the stolen checks and withdrawals of the proceeds of those checks.
Steele and his conspirators deposited $1,478,695 in fraudulent checks stolen from 122 victims. The checks were deposited into 258 different bank accounts opened by the defendants and/or unnamed conspirators. Steele and conspirators’ scheme resulted in $648,194 in losses.
In addition to a prison term, Judge McNulty sentenced Steele to three years of supervised release. Restitution will be determined at a later date.
Several of Steele’s conspirators were previously sentenced for their role in the fraudulent scheme: Constance Bowles, 23, of Newark, was sentenced to six months in prison and six months in a halfway house; Garnet Hinton, 24, of Union, N.J., was sentenced to 23 months in prison; Keonnah McLean, 24, of Newark, was sentenced to 23 months in prison; and Martell Arline, 22, if Newark, was sentenced to 36 months in prison. In addition to the prison terms, each of them was sentenced to three years of supervised release.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the sentences.
The government is represented by Assistant U.S. Attorneys Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark.13-218
Defense Counsel: Stephen A. Turano Esq., Newark
New York Man Pleads Guilty to Possession of False Document Making EquipmentRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Richard Middleton (36, New York) pleaded guilty today to possessing device-making equipment, with intent to defraud, and possessing a false identification implement intended to be used in the production of a false identification document. Middleton faces a maximum penalty of 15 years in federal prison on each of the two counts. His sentencing hearing is scheduled before Senior U.S. District Judge G. Kendall Sharp on August 21, 2013. Middleton was indicted on February 27, 2013, and arrested in the Eastern District of New York on March 6, 2013.According to documents, on August 20, 2011, deputies from the Osceola County Sheriff’s Office executed a search warrant on a room that Middleton occupied at a timeshare resort in Kissimmee. Inside the room deputies recovered equipment used to manufacture counterfeit credit cards and false identification documents, including a credit card embosser, a foil press “tipping” machine, card making devices, MasterCard hologram stickers, blank plastic cards and holograms typically used in genuine state issued identification cards and driver licenses, more than 1,000 blank American Express and Visa credit cards, and a laptop computer. A forensic review of the laptop revealed evidence indicating its use in the charged crimes.
This case was investigated by the United States Secret Service, with assistance from the Osceola County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
New York Attorney Arrested for Charging Hundreds of Thousands of Dollars for Advertisements Never PlacedRead the Press Release
Attorney Charged in New Jersey Allegedly Steered Payments to Company He Owned
NEWARK, N.J. – Federal agents arrested a New York attorney this morning to face a criminal complaint charging him with defrauding two international companies out of hundreds of thousands of dollars by fraudulently billing them for advertising services that were never provided, U.S. Attorney Paul J. Fishman announced.
Marijan Cvjeticanin, 49, of St. James, N.Y., is charged with one count of mail fraud. He was arrested at his home by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Department of State Diplomatic Security Service (DSS), and is scheduled to appear this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.
According to the complaint unsealed today:
From approximately September 1996 to September 2012, Cvjeticanin was employed by a New York law firm specializing in immigration law, first as a paralegal and then as an attorney. Among other clients, the firm represented two international companies – with offices in New Jersey – in connection with various immigration law matters. Cvjeticanin was the case manager handling day-to-day tasks such as filing applications for permanent residency for certain foreign workers of those companies employed in the United States on a temporary basis.
The application process required the companies to place job ads, in the geographic location where a relevant position was located, to demonstrate there were no minimally qualified U.S. citizens available to fill that position. To do that, Cvjeticanin caused his firm to retain a supposed advertising agency, Flowerson Holdings, Inc., a/k/a Flowerson Advertising, which allegedly handled all of the advertisement obligations of the companies in connection with permanent residency applications. Neither the firm nor the companies knew Cvjeticanin owned and controlled Flowerson.
From 2010 through September 2012, the companies paid Flowerson approximately $579,000 for advertisements, but Flowerson did not place the majority of those ads. Instead, Cvjeticanin stole the money and used it for his personal benefit.
If convicted, Cvjeticanin faces a maximum potential penalty of 20 years in prison and a $250,000 fine.U.S. Attorney Fishman praised special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, and DSS, under the direction of Special Agent in Charge Robert Goodrich, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office General Crimes Unit in Newark.The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-215Defense counsel: TBD
Cvjeticanin, Marijan Complaint
New Jersey Man Sentenced to Three Years in Federal Prison for Trafficking OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JULIO BRINEZ, 43, of Palisades Park, N.J., was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for trafficking oxycodone.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the trafficking of oxycodone, cocaine and marijuana in Fairfield County. On three occasions in March 2012, BRINEZ was intercepted over a court-authorized wiretap engaging in discussions involving the illegal distribution of oxycodone.
BRINEZ was arrested on June 22, 2012 and, on January 3, 2013, he pleaded guilty to one count of conspiring to possess with intent to distribute oxycodone. He has been detained since January 22, 2013 after he violated the conditions of his bond.
Sixteen individuals have been charged as a result of this investigation.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford and Stratford Police Departments. The case is being prosecuted Assistant United States Attorneys Peter Markle and Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Multi-Agency Law Enforcement Operation Tackles Gun Violence in Miami-Dade CountyRead the Press Release
Operation Smoking Gun III results in federal and state arrests of 97 individuals
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Neil DeSousa, Acting U.S. Marshal, U.S. Marshal’s Service, and Matthew Boyd, Chief, Miami Gardens Police Department, announced the results of Operation Smoking Gun III, a concerted multi-agency effort to combat the crime and violence associated with illegal firearm and drug trafficking activity in Miami-Dade County.
The United States Attorney’s Office and its federal and state law enforcement partners are committed to reducing the crime and violence associated with illegal firearm and drug trafficking. To this end, over the past year, the U.S. Attorney’s Office, the State Attorney’s Office and federal and state law enforcement have cooperated in a number of joint investigations and prosecutions, collectively called Operation Smoking Gun III, targeting illegal firearms and drug trafficking, including the unlawful sale of prescription drugs. This proactive investigation used undercover agents to purchase guns and drugs from violent and repeat offenders.
Operation Smoking Gun III has yielded substantial results. Since its inception in June 2012, 97 individuals have been arrested on federal and state firearm and narcotics offenses. Federal charges have been brought against 22 individuals. Of those charged federally, 16 have been arrested and will be making their initial appearances in federal court tomorrow. Federal charges against the remaining 6 individuals remained sealed. In addition, approximately 80 individuals have been arrested separately on state narcotics and firearm violations.
Operation Smoking Gun III has resulted in the following seizures:
--248 firearms including 1 sawed off shotgun; --342 grams crack cocaine; --1,728 grams cocaine; --634 grams heroin; --2473 MDMA pills; --2874 Oxycodone pills; --15,208 grams of marijuana; --5 bullet proof vests; --576 Percocet pills; --10 Morphine pills;
U.S. Attorney Wifredo A. Ferrer stated, “As a result of this long-term concerted effort, 97 dangerous individuals, the vast majority of whom are previously convicted felons, their guns and their drugs, have been removed from the streets of Miami-Dade and South Florida. Working as a team, we shared intelligence, effectively multiplied our resources, and enhanced our ability to tackle violent crime in this community. We are proud of our collaborative relationship and look forward to many more successful operations -- like this one -- aimed at making our communities safer."
Katherine Fernandez-Rundle, Miami-Dade County State Attorney, stated, “Guns plus drugs always equal violence and death. That’s why such multi-agency law enforcement efforts are important. Every illegal gun dealer and drug dealer we get off the streets of Miami Gardens means less violence for the city’s citizens. Every member of our law enforcement community is committed to that essential goal.”
ATF Special Agent in Charge Hugo J. Barrera stated, “The citizens of the City of Miami Gardens can breathe a little easier tonight. Violence should never become the order of the day. The message is clear; if you choose to use a firearm to inflict violence on the innocent people of this or any other community in South Florida, you will be dealt with swiftly. Together with this seamless integration of federal, state and local law enforcement we can ensure solid investigations, successful prosecutions and long stays in prison for these predators.”
DEA Special Agent in Charge Mark R. Trouville stated, “Whenever money and drugs come together, violence will follow. Where drug trafficking is rampant, neighborhoods can become a war zone bringing havoc to its residents. The DEA is committed to working with the ATF and our local partners to remove these violators off our streets and make our communities safe and drug free.”
Matthew Boyd, Chief of the Miami Gardens Police Department, stated, “The Miami Gardens Police Department has been extremely successful in reducing crime over the last five years. This success continues to create a safer environment for our residents and is a direct result of the cooperation and partnerships at the State and Federal level as evidenced in this multi-agency operation.”
“It is due to Operations like Smoking Gun that the partnership of federal and local law enforcement agencies come together to share resources and remove dangerous criminals off of our streets,” said Neil DeSousa, Acting U.S. Marshal. “The U.S. Marshals Service remains dedicated to this intensive effort, today the City of Miami Gardens is safer because of the commitment by all of the criminal investigators and officers that led this proactive Operation over the course of the year.”
In February 2010, Operation Smoking Gun I, which targeted gang and gun crime in Broward County, resulted in federal charges against 33 defendants with firearm, narcotics, and other offenses. In addition, 63 defendants were separately charged by the Broward County State Attorney’s Office with narcotics and firearm violations.
Then, in July 2011, Operation Smoking Gun II, focusing on Palm Beach County, resulted in federal firearm and narcotics charges against 49 defendants. Of those 49 charged federally, many were felons in possession of a firearm. In addition, approximately 58 defendants were charged separately by the Palm Beach County State Attorney’s Office with narcotics and firearm violations.
U.S. Attorney Ferrer thanked the many law enforcement agencies involved in this Organized Crime Drug Enforcement Task Force (OCDETF)/ South Florida High Intensity Drug Trafficking Area Task Force (HIDTA) operation. In particular, Ferrer thanked the Miami-Dade County State Attorney’s Office, and the agents, detectives and police officers from ATF, DEA, the U.S. Marshal’s Service, and the Miami Gardens Police Department, for their concerted efforts during this long-term investigation. Ferrer also thanked the Miami-Dade Police Department, City of Miami Police Department, City of Aventura Police Department, Florida Department of Law Enforcement, Hialeah Police Department, the Palm Beach Sheriff’s Office, and the Broward Sheriff’s Office for their assistance in this matter. The federal cases resulting from Operation Smoking Gun III are being prosecuted by Assistant U.S. Attorney Bruce Brown. The state cases are being prosecuted by Miami-Dade County Assistant State Attorney Frank Ledee.
Operation Smoking Gun III is the result of an ongoing OCDETF joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The South Florida HIDTA was established in 1990. This program, made up of federal, state and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region’s drug-related threats to public safety. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy (ONDCP) that sponsors a variety of law enforcement initiatives that target the region’s illicit drug threats.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachments: Operation Sledgehammer Defendant List (PDF)
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.
Morris County, N.J., Man Sentenced to 140 Months in Prison for Distributing Images of Child Sexual Abuse over InternetRead the Press Release
NEWARK, N.J. – A Morris County, N.J., man was sentenced today to 140 months in prison today for possessing and distributing over the Internet images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Khalil Survey, 39, of Lake Hiawatha, N.J., was previously arrested on a Complaint and later pleaded guilty before U.S. District Judge William H. Walls to an Indictment charging him with one count of possession of child pornography and one count of distributing child pornography.According to documents filed in this case and statements made in court:
Special agents of the Department of Homeland Security and other law enforcement executed a search warrant at Survey’s home on Aug. 4, 2011, and seized a computer, an iPhone, and several electronic storage devices that contained images and videos child pornography. The devices included 46,353 images of child sexual abuse, including 983 images involving infants or toddlers, and 783 images involving sadomasochistic abuse. On the defendant’s iPhone, law enforcement found photographs the defendant had taken of himself downloading child pornography onto his home computer.
In addition to the prison term, Judge Walls sentenced Survey to lifetime supervised release and ordered him to pay $300,000 in restitution to the victims.
U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s sentencing. He also thanked the Morris County Prosecutor’s Office for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew J. Bruck of the U.S. Attorney’s Office General Crimes Unit in Newark.13-217
Defense counsel: Joseph Rotella Esq., Newark
Media AdvisoryRead the Press Release
United States Attorney Brendan Johnson will hold a press conference addressing Human Trafficking on Thursday, May 30, 2013 at 3:00 p.m. CST.
Discussion points to include recent prosecutions of commercial sex traffickers in South Dakota and the formation of a Human Trafficking Task Force.
WHO:United States Attorney Brendan V. Johnson
Minnehaha County State’s Attorney Aaron McGowan
Captain Paul Niedringhaus, Minnehaha County Sheriff’s Office
Lt. Dave McIntire, Sioux Fall Police Department
Joseph Weir, Federal Bureau of Investigation, Supervisory Special Agent
Mike Janak, Homeland Security Investigations, Resident Agent in Charge
WHAT: Press Conference
WHEN: Thursday, May 30, 2013 at 3:00 p.m. Members of the media should arrive by 2:30 to due to extra security measures.
WHERE: United States Attorney's Office 325 S. 1st Ave., Suite 300 Sioux Falls, SD 57104
NOTE: Media must enter through the third floor reception area. ALL media MUST PRESENT GOVERNMENT-ISSUED PHOTO ID (such as driver’s license) as well as VALID MEDIA CREDENTIALS. Press inquiries regarding logistics should be directed to Community Services Coordinator Ace Crawford at 605.343.3913, ext. 2101 or 605.838.6092.
Medford Man Sentenced to 15 Years in Federal Prison for Marijuana Distribution ConvictionRead the Press Release
Oregon Medical Marijuana Program Used as a Cover to Grow Marijuana For Sale.MEDFORD, Ore. - On Tuesday, May 28, 2013, Senior U. S. District Judge Owen M. Panner sentenced Brian Wayne Simmons, 40, of Medford, Oregon, to 15 years in federal prison for conspiracy, and manufacturing and distributing marijuana.
Simmons owned and operated Brian’s Green Thumb Farm on East Gregory Road in Central Point, Oregon, purporting to grow organic vegetables. U.S. Drug Enforcement Administration agents executed a search warrant on Simmon’s farm in October 2011, seizing 456 large marijuana plants. Agents seized an additional 64 large marijuana plants at a second grow site on Dark Hollow Road in Medford. The plants ranged from approximately 5-8 feet tall and produced upwards of 10 pounds of marijuana per plant. Agents also seized thousands of pounds of harvested marijuana being processed at both locations (1,600 pounds dry weight). Simmons had previously registered over 20 persons as “growers” at his marijuana sites, creating the appearance that he was complying with the Oregon Medical Marijuana Act. In fact, evidence established that many of the growers were recruited in name only and took no part in the grow operation. Simmons also recruited persons to tend the marijuana plants for a percentage of the profit, and paid others to trim the marijuana. The investigation revealed that Simmons had been growing and selling marijuana since at least 2009, with documented sales of over $740,000 for the 2009 and 2010 grow seasons. Based on the seized evidence, Simmons had roughly quadrupled the size of his operation by 2011.
Simmons was convicted by a twelve person jury after a trial in Medford, Oregon in December 2012. A co-defendant, Michael Grantski, was acquitted. Another co-defendant, Michael Peru, pleaded guilty, and is pending sentencing.
“This case represents another gross abuse of the Oregon Medical Marijuana Program (OMMP). Under state law, OMMP attempts to provide a mechanism to enable people who suffer from one of several enumerated medical conditions to obtain medicinal marijuana. Unfortunately, criminals like Mr. Simmons hide behind the façade of OMMP in order to sell their illicit product to drug users and drug dealers for profit,” stated U. S. Attorney Amanda S. Marshall. “My office will continue to indict others who violate both state and federal law by producing and selling large quantities of marijuana for profit. We will also take the assets that are used to facilitate the illegal activity and the resulting proceeds in order to take the profit out of this crime.”
This case was investigated by the U.S. Drug Enforcement Administration, with assistance from the Jackson County Sheriff’s Office, Medford Police Department, Ashland Police Department, U.S. Marshals Service, Immigration and Customs Enforcement, Federal Bureau of Investigation, Internal Revenue Service, U.S. Forest Service, and the U.S. Bureau of Land Management, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Man Sentenced to over Eight Years in Prison for Defrauding Federal Credit Union in Las VegasRead the Press Release
LAS VEGAS, Nev. – A man who made false statements to a federally insured credit union to obtain a $7.5 million commercial real estate loan, was sentenced today by Senior U.S. District Judge Roger L. Hunt to 98 months in prison, five years of supervised release and ordered to pay restitution to the credit union, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Brent Edward Lovett, 50, of Henderson, Nev., was convicted by a jury in February 2013 of bank fraud. Lovett was permitted to self-report to federal prison by Aug. 2, 2013.
According to the indictment and evidence presented to the jury during the trial, during 2006, Lovett devised a scheme to defraud Lockheed Federal Credit Union by fraudulently obtaining a commercial real estate loan from which he would skim part of the loan proceeds for himself. Lovett controlled Bay Resorts International, which leased two commercial buildings at 2400 N. Tenaya Way in Las Vegas. From about May to June 2006, Lovett caused Bay Resorts to purchase the buildings for $6 million. Lovett caused Bay Resorts to sell the buildings for $10 million to another company he controlled, Equity Resource, Inc. Lovett caused Equity Resource to apply for a commercial real estate loan with Lockheed Federal Credit Union to purchase the buildings, and in the application and supporting documents, Lovett made false statements and omissions regarding Bay Resorts, Equity Resource, and the sales history of the buildings. Based on those false statements, Lockheed Federal Credit Union made a loan to Equity Resource for $7.5 million. Lovett obtained approximately $1.3 million from the proceeds of the sale of the buildings to Equity Resource. Lovett then allowed the buildings to go into foreclosure and kept the balance of the proceeds for himself.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established 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 nearly 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, please visit www.StopFraud.gov.Louisiana Correctional Officer Pleads Guilty to Covering up Assault on an InmateRead the Press Release
Jason Giroir, 35, a former correctional officer with the Louisiana State Penitentiary (LSP) in Angola, La., pleaded guilty today before U.S. District Judge James J. Brady for the Middle District of Louisiana for his role in covering up an incident in which correctional officers used excessive force against an inmate. Giroir admitted filing a false report and subsequently providing false information to the FBI about the incident. Investigation of the incident is ongoing.
According to the factual basis filed in connection with his guilty plea, on or about Jan. 24, 2010, Giroir, then a major at LSP, heard that an inmate had escaped from his assigned location. Shortly thereafter, the inmate surrendered to prison officials. Giroir, one of the first officers to arrive at the surrender site, handcuffed the inmate and placed him on the back of his truck. Kevin L. Groom Sr., and two other LSP officers accompanied the handcuffed inmate in the rear of Giroir’s truck. During the transport, Giroir saw one of the officers repeatedly swing his asp baton down towards the inmate, and realized that the inmate was being beaten.Some time after this incident, one of the officers who was in the back of the truck approached Giroir to talk about the incident. That officer admitted to Giroir that he had struck the inmate, but denied having used an asp baton.
Giroir also admitted that during the prison’s investigation of this incident, he wrote and submitted a false report denying that officers assaulted the inmate, and that he provided that same false information to the Federal Bureau of Investigation.
Giroir pleaded guilty to falsification of records in a federal investigation and to making a false statement to the FBI. As a result of his guilty plea, Giroir faces a statutory maximum sentence of 25 years.
“Instead of lawfully carrying out his critical public safety responsibilities, Mr. Giroir covered up the violent actions of other officers,” said Deputy Assistant Attorney General for the Civil Rights Division Roy Austin. “The Justice Department will continue to vigorously prosecute officers who cross the line and engage in criminal misconduct.”
U.S. Attorney for the Middle District of Louisiana Donald J. Cazayoux Jr. stated, “our public protection mission in law enforcement necessitates the protection of inmates from physical abuse by those who are charged with guarding them. We will prosecute vigorously those law enforcement officers who are sworn to protect the public and undermine this mission by fabricating and covering up crimes they witness.”
" Mr. Giroir's guilty plea clearly confirms that the FBI pursues all aspects of excessive force incidents, including any attempted obstructions of the investigation of the underlying unlawful use of physical force by others," said FBI Special Agent in Charge Michael Anderson.In a related case before Judge Brady, former LSP Officer Kevin Groom entered a guilty plea.
The investigation in this matter was conducted by Special Agent Taneka Harris of the FBI and prosecuted by Civil Rights Division Trial Attorney AeJean (Angie) Cha and Assistant U.S. Attorney for the Middle District of Louisiana Robert W. Piedrahita.Lorain County Pair Indicted for Human Trafficking, Drug OffensesRead the Press Release
A man and woman from Lorain County were indicted for human trafficking and drug offenses after forcing a 16-year-old girl and 19-year-old woman to have sex for money, law enforcement officials said.
Jeremy Mack, 37, of Elyria, and Ashley Onysko, 23, of Avon Lake, were each indicted on one count of conspiracy to engage in sex trafficking and drug trafficking and two counts of sex trafficking.
“This pair forced people, including a minor, to have sex for money,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “These activities happen all around us and it’s the responsibility of the community and law enforcement to work together to end these crimes.”
“Jeremy Mack and Ashley Onysko used narcotics to gain control over their victims and forced them to engage in sex acts while lining their own pockets with money,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The FBI and our law enforcement partners will utilize all necessary resources to bring to justice those that victimize our youth.”
“This is an example of local police and federal law enforcement working together to make our community safer,” said Elyria Police Chief Duane Whitely.
Count 1 charges that between December 2012 and April 9, 2013, Mack and Onysko conspired together to provide heroin to Victim 1 and cocaine to Victim 2 and then, after the victims incurred drug debts, used force, threats of force, fraud and coercion to compel them to engage in commercial sex acts.
They did this, in part, by posting photographs of Victim 1 and Victim 2 on backpage.com on a user account that Mack and Onysko created on Dec. 25, 2012, according to the indictment.
In March 2013, Victim 2, a 16-year-old minor, went to Mack’s residence in Elyria after school, at which time Mack gave her cocaine. Mack later told and caused others to tell Victim 2 that she needed to engage in commercial sex acts. She did, after which she turned over all proceeds to Mack, according to the indictment.
From March through April 9, 2013, Mack brandished a firearm in front of Victim 1 and Victim 2, according to the indictment.
Count 2 charges that from February through April 9, 2013, Mack and Onysko caused Victim 1 to engage in commercial sex acts by using force, threats of force, fraud and coercion.
Count 3 charges that from March through April 9, 2013, Mack and Onysko caused Victim 2 to engage in commercial sex acts by using force, threats of force, fraud and coercion.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.
An indictment is merely a charge. All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court.
Lapwai Man Sentenced for Stealing Electric GeneratorsRead the Press Release
COEUR D'ALENE – Michael Eli Wilson, Jr., 23, of Lapwai, Idaho, was sentenced today in federal court in Coeur d’Alene to 40 days in jail followed by 180 days of in-patient drug treatment, for theft exceeding $1,000, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Wilson to serve three years of supervised release. Wilson, an enrolled member of the Nez Perce Indian Tribe, pleaded guilty to the charge on December 11.
According to the plea agreement, Wilson admitted that between April 26 and June 1, 2012, he entered the property of Gem Electric, a small business located in Lapwai, for the purpose of stealing electric generators. Wilson admitted that he sold the generators as scrap metal at Sutton Salvage in Lewiston, Idaho. Sutton Salvage provided records to investigators, which confirmed that Wilson had scrapped electric generators on a number of occasions between April 26 and May 30, 2012. On June 1, employees of Sutton Salvage contacted police after Wilson attempted to scrap additional generators. Wilson absconded before police arrived, but left the generators at the site. The property owner confirmed he was the rightful owner of the generators. Sutton Salvage employees identified Wilson from a photograph lineup. The generators had a value exceeding $1,000.
The case was investigated by the Federal Bureau of Investigation, Nez Perce County Sheriff’s Office, and Nez Perce Tribal Police.
Kyle Lee Fulmer Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 28, 2013, before U.S. District Judge Sam E. Haddon, KYLE LEE FULMER, a 29-year-old resident of Colstrip, pled guilty to involuntary manslaughter. Sentencing has been set for September 11, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On September 19, 2012, at approximately 2:30 a.m., law enforcement received a call about a one-vehicle rollover crash on South Tongue River road, near Ashland, on the Northern Cheyenne Indian Reservation. The first officer on scene, a deputy from Rosebud County, identified FULMER as the driver of the Chevy pickup involved in the crash. FULMER, who was ejected from the truck, admitted that he was the driver and that he had been drinking. The deceased passenger was found in the passenger seat inside of the pickup wearing a seat belt. The passenger died of multiple acute blunt traumatic injuries to the upper body.
FULMER was interviewed and admitted that he was driving his pickup on South Tongue River road. He lost control of the pickup, drove through a barbed wire fence, rolled down an embankment, and ended up upright in a field. There were beer cans and bottles near the truck. He had been drinking alcohol prior to the crash. His BAC was .137. This analysis was performed on a sample of FULMER's blood taken some hours after the crash.
FULMER is a non-Indian, but the victim was an enrolled member of the Northern Cheyenne Tribe.
FULMER faces possible penalties of 8 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Indian Affairs.
Kinsey N. Miner Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 29, 2013, before Senior U.S. District Judge Jack D. Shanstrom, KINSEY N. MINER, a resident of Billings, was sentenced to a term of:
Prison: 37 months, consecutive to another sentence
Special Assessment: $100
Supervised Release: 5 years
MINER was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
Beginning in February 2012, and continuing until August 2012, MINER distributed methamphetamine she obtained from her source of supply to her customers in the Billings area. MINER also transported quantities of methamphetamine for the sources of supply for a larger organization. MINER regularly communicated with her source of supply, other distributors and customers via cellular telephone and text message.
During the course of her involvement in the larger conspiracy, from February 2012 to August 2012, MINER personally possessed with the intent to distribute and distributed over 50 grams of methamphetamine in the Billings area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MINER will likely serve all of the time imposed by the court. In the federal system, MINER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Kinsey N. Miner Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 29, 2013, before Senior U.S. District Judge Jack D. Shanstrom, KINSEY N. MINER, a resident of Billings, appeared for sentencing. MINER was sentenced to a term of:
Prison: 18 months, consecutive to another sentence
Special Assessment: $200
Supervised Release: 3 years
MINER was sentenced in connection with her guilty plea to possession of a stolen firearm and transferring a firearm to felon.
In an Offer of Proof filed by Special Assistant U.S. Attorney Ed Zink, the government stated it would have proved at trial the following:
During the evening hours of January 14, 2012, a Yellowstone County Sheriff's deputy was dispatched to a residence to investigate a report that a man, identified here as Z.Z., was drinking alcohol, in violation of the terms of his felony probation. The deputy arrived at the residence and went inside to speak with Z.Z. Shortly after he made contact with Z.Z., Z.Z. pulled a firearm and began firing at the deputy at a distance of only a few feet. The deputy returned fire, striking Z.Z. multiple times. Z.Z. was transported to St. Vincent's Hospital in Billings where he died from his injuries.
Following the shooting, detectives transported all the witnesses to a separate residence to conduct interviews. When interviewed, MINER gave a detailed statement of the events leading up to the shooting at her home. MINER stated that she had provided Z.Z. with the firearm he used in the shooting. MINER said that in July or August of 2011, she stole the firearm from her grandmother's boyfriend. While visiting her grandmother in Clark, Wyoming, MINER learned that her grandmother's boyfriend had a large collection of firearms. Knowing that Z.Z. wanted a firearm, MINER called Z.Z. and asked him what kind of gun he wanted. Z.Z. had MINER describe the available firearms to him and he selected the Glock handgun. MINER took the firearm and provided it to Z.Z. at a later date.
MINER knew Z.Z. was a convicted felon, on probation, at the time she stole the gun and later when she provided it to Z.Z.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MINER will likely serve all of the time imposed by the court. In the federal system, MINER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Yellowstone County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justin Hanley Bright Wings Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 29, 2013, before U.S. District Judge Richard F. Cebull, JUSTIN HANLEY BRIGHT WINGS, a 27-year-old resident of Lodge Grass and an enrolled member of the Crow Tribe of Indians, was sentenced to a term of:
Prison: 41 months
Special Assessment: $100
Supervised Release: 3 years
BRIGHT WINGS was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 9, 2012, at approximately noon, BRIGHT WINGS was driving a vehicle with five passengers, one of whom was his 11-month-old son. BRIGHT WINGS was drunk while driving and lost control of the vehicle on a highway. The crime occurred within the exterior boundaries of the Crow Indian Reservation.
The vehicle rolled several times and ended up in an irrigation ditch. BRIGHT WINGS's 11-month-old son suffered an epidural hematoma in his head (blood leaking into a layer of the tissue covering the brain) as a result of the wreck. The child was taken to St. Vincent's Hospital in Billings where he was treated.
BRIGHT WINGS's blood was drawn shortly after the crash and analyzed. The lab report indicated that his BAC approximately 1 hour after the crash was 0.318. Using back-extrapolation calculations to estimate the BAC at the time of the crash, the FBI lab report estimated that BRIGHT WINGS's BAC at the time of the crash would have been approximately 0.34 (with a possible range of 0.33 to 0.35).
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BRIGHT WINGS will likely serve all of the time imposed by the court. In the federal system, BRIGHT WINGS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Johnson County Man Sentenced for Producing Child PornRead the Press Release
KANSAS CITY, KAN. – A man from Johnson County, Kan., has been sentenced to 30 years in federal prison for producing child pornography, including images of a naked two-year-old boy in a roaster pan in an oven, U.S. Attorney Barry Grissom said today.
The case was part of Operation Hotlina, a major investigation into child exploitation by ICE’s Homeland Security Investigations.Gary Hartwig, special agent in charge of HSI Chicago, which oversees Kansas, said: “To rescue these innocent victims, HSI will relentlessly pursue child predators. Since we began Operation Hotlina a worldwide network of offenders has been, and continues to be, unraveled, including this defendant. Thanks to the determination of HSI special agents, and our law enforcement partners, we have been able to rescue 163 children and arrest 51 perpetrators worldwide.”
Michael D. Arnett, 38, Roeland Park, Kan., pleaded guilty to one count of producing child pornography. In his plea, Arnett admitted that investigators found child pornography on his computer when they served a search warrant May 15, 2012, at his home in Roeland Park.
The case began when Homeland Security seized child pornography including images of victims who appeared to be from the area of Overland Park, Kan. Investigators focused on a water bottle in one of the photos bearing the words “Midwest Aquatics” and a phone number beginning with the 913 area code. Midwest Aquatics is a swim and scuba center located at 7565 W. 160th Street in Overland Park.
With the assistance of teachers at an elementary school in Shawnee Mission, investigators ultimately identified three boys who been photographed at Arnett’s home at 5451 Juniper Drive in Roeland Park. At the time the photos were taken, the boys were 11, 8 and 2 years old.
Grissom commended ICE’s Homeland Security Investigations, the Johnson County Sheriff’s Department and Assistant U.S. Attorney Kim Martin for their work on the case.
Jefferson County Man Sentenced for Federal Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 40-year-old Port Arthur, Texas, man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Gary Lynn Carrington, Sr., pleaded guilty on Dec. 12, 2012, to being a felon in possession of a firearm and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Aug. 23, 2012, a search warrant was executed at 400 Duane Street in Port Arthur after Carrington sold crack cocaine to another individual at that residence. During the search, officers discovered a loaded revolver, a loaded shotgun, $8,628 in cash, drug paraphernalia, and a measuring cup containing cocaine. Carrington and two others were present during the search. Further investigation revealed Carrington was a convicted felon, having previously been found guilty of delivery of a controlled substance in 2007 in Jefferson County and possession of a controlled substance in 1995 in Jefferson County. As a convicted felon, Carrington is prohibited by federal law from owning or possessing firearms or ammunition. Carrington was indicted by a federal grand jury on Sep. 20, 2012.
This case was prosecuted as part of Project Safe Neighborhoods' Operation Time Machine program. Operation Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in Port Arthur, Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the ATF and the Jefferson County Narcotics Task Force and prosecuted by Assistant U.S. Attorney Baylor Wortham.Insurance Broker Sentenced to Prison for Defrauding Seniors Out of Annuity FundsRead the Press Release
Williamsburg’s William Lowder Sentenced to 60 Months in Prison for Wire Fraud and Tax Charges
GRAND RAPIDS, MICHIGAN – William Edward Lowder, age 58, of Williamsburg, Michigan, was sentenced today to serve 60 months in prison for defrauding several clients, many who were elderly, out of significant investment funds as part of a wire fraud scheme that he committed while he operated Lowder Insurance. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, IRS Criminal Investigation, Special Agent in Charge Robert D. Foley III of the FBI, and Sheriff Thomas Bensley of the Grand Traverse Sheriff’s Office. U.S. District Judge Robert Holmes Bell sentenced Lowder and included a 36-month concurrent sentence on a separate charge of filing a false tax return in 2008. In handing down the sentence, the court emphasized the significant duration of Lowder’s fraud and his repeated failure to re-pay any of his victims. As part of his sentence, Lowder was ordered to pay restitution of $1,567,908.00, and to complete 300 hours of community service after serving his sentence of imprisonment.
Lowder was a licensed insurance agent and annuities producer. Beginning in 2001, Lowder began defrauding several of his elderly clients by convincing them to liquidate existing annuity investments under the promise that the proceeds would be reinvested in annuities earning higher rates of return. After the clients liquidated their annuities, Lowder convinced them to provide the proceeds directly to him for reinvestment. Instead of reinvesting the proceeds, Lowder deposited the proceeds into his own bank account. To conceal his fraud, Lowder provided these clients with false statements of account.“Vigorous prosecution of professionals who commit financial crimes remains one of the top priorities of this Office,” said U.S. Attorney Miles. “This case is especially troubling given that Mr. Lowder stole significant amounts of money from elderly clients who, like most citizens, rely upon their limited investments to provide for their financial security.” FBI Special Agent in Charge Foley agreed, stating “those who target elderly victims, many of whom live on a fixed income, rob them of their hard-earned savings and their security. The FBI is committed to stopping predatory scams against seniors.”
Between 2001 and 2009, Lowder stole in excess of one million dollars from his clients, which he used to fund his own comfortable lifestyle. Lowder admitted that he did not claim the amounts stolen from his clients as income on his U.S. individual income tax returns from 2006 to 2009, despite knowing that he had an obligation to do so.
“The victims of Lowder’s scheme worked hard for their retirement and he stole their hard earned savings,” said Erick Martinez. “IRS Criminal Investigation is committed to pursuing those who perpetrate these crimes.”The investigation and prosecution of this case was conducted by the Grand Traverse County Sheriff’s Office, the IRS and the FBI, who were assisted by the Michigan Office of Financial and Insurance Regulation. The case was prosecuted by Assistant U.S. Attorney Ron Stella.
END
Information Filed Charging Mobile County Woman with Mortgage FraudRead the Press Release
The United States Attorney, Kenyen Brown, announces that a one-count information was returned today by a Federal Grand Jury against Delaine Williams, a 25 year old resident of Satsuma, Alabama. Williams was charged with one (1) count of providing false information to a federally insured institution in connection with mortgage loan application.
The United States Department of Housing and Urban Development, Office of Inspector General located in Atlanta, Georgia investigated the case and presented it to the U.S. Attorney’s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Indictments Unsealed in Illegal Oxycodone Prescription ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that arrests were made and indictments unsealed for the following individuals:
Derek Durae, Melissa Glass, and Eddie Glass, all of Omaha, were each charged in a one count indictment with conspiracy to distribute and possess with intent to distribute Oxycodone and Morphine. The maximum penalty is 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
Daniel Bribiesca of Omaha was charged in a two count indictment with distributing fentanyl which carries a maximum penalty of 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
James Buchholz and Ian Lybarger, both of Omaha, were each charged in a one count indictment with conspiracy to distribute and possess with intent to distribute Oxycodone and hydromorphone. The maximum penalty is 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
Jonathan Perez and Jessica Bruce, both of Omaha, were each charged in a one count indictment with conspiracy to distribute and possess with intent to distribute Oxycodone . The maximum penalty is 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
Leonardo Brito-Perez, of Omaha, and Chris Humphrey of LaVista, were each charged in a one count indictment with conspiracy to distribute and possess with intent to distribute Methadone. The maximum penalty is 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
This investigation was part of the Drug Enforcement Administration’s drug diversion task force targeting illegal oxycodone and other prescriptions. Also assisting in the arrests was the United States Marshals Service.
Immigration Charges Filed in Unrelated CasesRead the Press Release
Immigration charges were filed against two people in unrelated cases, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Ziyaya Mtola, 39, was indicted on one cout of failure to depart the United States. The indictment alleges that Mtola is an alien and a citizen of the Republic of South Africa who physically resisted efforts to remove him from the United States pursuant to an order of removal on April 22, 2013.
In an unrelated case, Eleazar Ivan Carrillo-Vasquez aka Eduardo Ramirez-Lopez, 28, was charged with illegally reentering the United States following his deportation. The indictment alleges that Carillo-Vasquez is an alien who was previously removed or deported from the United States to Mexico on October 28, 2008, and April 22, 2009.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The cases are being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigations by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.
Gerald Adelore Paquin Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 29, 2013, before U.S. District Judge Sam E. Haddon, GERALD ADELORE PAQUIN, a 55-year-old resident of Billings, was sentenced to a term of:
Prison: 12 months
Special Assessment: $100
Restitution: $141,231.15
Supervised Release: 3 years
PAQUIN was sentenced in connection with his guilty plea to tax fraud and making false statements.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
PAQUIN was a feed salesman operating in the Billings area. From 2005 to 2007, PAQUIN was employed as a salesman for Cenex Harvest States (CHS). As a salesman for CHS, PAQUIN sold feed and supplements to local ranchers and distributors. Farmers Union Association of Hardin (FUA) had an agreement with CHS where in PAQUIN was "leased" to FUA by CHS as a salesman for one day a week. During the one day a week PAQUIN would sell product to local ranchers on behalf of FUA. In exchange for PAQUIN's time, FUA paid a fee directly to CHS.
One of the products PAQUIN sold for CHS was wheat midds, a base component of feed to which supplements are added. Eventually, CHS stopped selling wheat midds because of the volatility of the market. PAQUIN found another midd supplier, Laughlin Cartrell (LC). PAQUIN began selling the wheat midds he obtained from LC to FUA customers during his one day a week of sales. The change in the supplier of the wheat midds gave PAQUIN the opportunity he needed to essentially begin to operate a personal business selling wheat midds to FUA customers, using FUA's credit to obtain the wheat midds, keeping the money he made from the sales and not paying down FUA's credit line which he used to buy the wheat midds from LC.
During sales calls PAQUIN would sell the LC wheat midds to his customers and instruct the customers to pay him directly rather than make their payments to FUA. PAQUIN's sales of wheat midds to customers were recorded on the FUA books which were maintained by a manager of FUA. Following each sale the manager would credit a receivable account in PAQUIN's name instead of the account of the rancher actually making the purchase. PAQUIN usually did not use the customer's funds, which were paid to him, to pay the liability he incurred on behalf of FUA from LC. Many of the checks from customers were deposited into PAQUIN's personal bank account. PAQUIN continued to let his FUA balance increase until the outstanding balance was so high the Board of Directors of FUA began to ask questions. The Board of Director's questions led to a meeting with PAQUIN. During the meeting PAQUIN is reported as saying, "I could pay you back, go to jail, or kill myself." When questions began to arise about PAQUIN's dealings he paid back some of the stolen money to FUA.
PAQUIN did not report any of the income earned through his sales scheme on his taxes for 2005, 2006, and 2007. PAQUIN's tax returns for 2005, 2006, and 2007 were prepared by an accountant. The accountant confirmed that he relied upon the income information supplied by PAQUIN when completing his tax returns. In 2005 and 2006 PAQUIN claimed he had no other sources of income. In 2007, PAQUIN only claimed the amount noted paid by LC, not the ill gotten funds.
PAQUIN owes the Internal Revenue Service $66,304.00 in restitution plus accrued interest and penalties.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PAQUIN will likely serve all of the time imposed by the court. In the federal system, PAQUIN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
French Oil and Gas Company, Total, S.A., <br /> Charged in the United States and France in Connection with an International Bribery SchemeRead the Press Release
Total, S.A., a French oil and gas company that trades on the New York Stock Exchange, has agreed to pay a $245.2 million monetary penalty to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) in connection with illegal payments made through third parties to a government official in Iran to obtain valuable oil and gas concessions, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and U.S. Attorney Neil H. MacBride for the Eastern of Virginia.
As part of the agreed resolution, the department today filed a criminal information in U.S. District Court for the Eastern District of Virginia charging Total with one count of conspiracy to violate the anti-bribery provisions of the FCPA, one count of violating the internal controls provision of the FCPA, and one count of violating the books and records provision of the FCPA. The department and Total agreed to resolve the charges by entering into a deferred prosecution agreement for a term of three years. In addition to the monetary penalty, Total also agreed to cooperate with the department and foreign law enforcement to retain an independent corporate compliance monitor for a period of three years and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations.
Also today, the U.S. Securities and Exchange Commission (SEC) entered into a cease-and-desist order against Total in which the company agreed to pay an additional $153 million in disgorgement and prejudgment interest. Total also agreed with the SEC to comply with certain undertakings regarding its FCPA compliance program, including the retention of a compliance consultant.
In addition, French enforcement authorities announced earlier today that they had requested that Total, Total’s Chairman and Chief Executive Officer, and two additional individuals be referred to the Criminal Court for violations of French law, including France’s foreign bribery law.
“Today we announce the first coordinated action by French and U.S. law enforcement in a major foreign bribery case,” said Acting Assistant Attorney General Raman. “Our two countries are working more closely today than ever before to combat corporate corruption, and Total, which bought business through bribes, now faces the criminal consequences across two continents.”
“The Eastern District of Virginia, through our strong partnership with the Criminal Division’s Fraud Section, is committed to holding accountable those who violate the Foreign Corrupt Practices Act,” said U.S. Attorney MacBride. “Today’s deferred prosecution agreement, with both its punitive and forward-looking compliance provisions, dovetails with our goals of bringing violators to justice and preventing future misconduct.”
According to the deferred prosecution agreement, in 1995 Total sought to re-enter the Iranian oil and gas market by attempting to obtain a contract with the National Iranian Oil Company (NIOC) to develop the Sirri A and E oil and gas fields. In May 1995, Total entered into negotiations with an Iranian official who served as the chairman of an Iranian state-owned and state-controlled engineering company. Total subsequently entered into a purported consulting agreement pursuant to which Total would corruptly make payments to an intermediary designated by the Iranian official to secure NIOC signing a development agreement with Total for the Sirri A and E project, which NIOC did in July 1995. Over the next two-and-a-half years, Total paid approximately $16 million in bribes under the purported consulting agreement.
In 1997, Total sought to negotiate a contract with NIOC to develop a portion of the South Pars gas field, the world’s largest gas field. At the direction of the Iranian official, Total and a second intermediary entered into another purported consulting agreement that called for Total to make large payments to the intermediary. In September 1997, Total executed a contract with NIOC that granted it a 40 percent interest in developing phases two and three of the South Pars gas field. Over the next seven years, Total made unlawful payments of approximately $44 million pursuant to the second purported consulting agreement.
In sum, between 1995 and 2004, at the direction of the Iranian official, Total corruptly made approximately $60 million in bribe payments under the agreements for the purpose of inducing the Iranian official to use his influence in connection with Total’s efforts to obtain and retain lucrative oil rights in the Sirri A and E and South Pars oil and gas fields. Total mischaracterized the unlawful payments as “business development expenses” when they were, in fact, bribes designed to corruptly influence a foreign official. Further, Total failed to implement effective internal accounting controls, permitting the consulting agreements’ true nature and true participants to be concealed and thereby failing to maintain accountability for assets.
The case is being prosecuted by Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Charles Connolly of the U.S. Attorney’s Office for the Eastern District of Virginia. Significant assistance was provided by the Criminal Division’s Office of International Affairs and by the SEC’s New York Regional Office. The department also acknowledges and expresses its deep appreciation for the cooperation and partnership of French law enforcement authorities.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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DPAFrench Oil and Gas Company, Total, S.A., Charged in the United States and France in Connection with an International Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – Total, S.A., a French oil and gas company that trades on the New York Stock Exchange, has agreed to pay a $245.2 million monetary penalty to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) in connection with illegal payments made through third parties to a government official in Iran to obtain valuable oil and gas concessions, announced U.S. Attorney Neil H. MacBride for the Eastern of Virginia, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
As part of the agreed resolution, the department today filed a criminal information in U.S. District Court for the Eastern District of Virginia charging Total with one count of conspiracy to violate the anti-bribery provisions of the FCPA, one count of violating the internal controls provision of the FCPA, and one count of violating the books and records provision of the FCPA. The department and Total agreed to resolve the charges by entering into a deferred prosecution agreement for a term of three years.
Also today, the U.S. Securities and Exchange Commission (SEC) entered into a cease-and-desist order against Total in which the company agreed to pay an additional $153 million in disgorgement and prejudgment interest. Total also agreed with the SEC to comply with certain undertakings regarding its FCPA compliance program, including the retention of a compliance consultant.
In addition, French enforcement authorities announced earlier today that they had requested that Total, Total’s Chairman and Chief Executive Officer, and two additional individuals be referred to the Criminal Court for violations of French law, including France’s foreign bribery law.
“The Eastern District of Virginia, through our strong partnership with the Criminal Division’s Fraud Section, is committed to holding accountable those who violate the Foreign Corrupt Practices Act,” said U.S. Attorney MacBride. “Today’s deferred prosecution agreement, with both its punitive and forward-looking compliance provisions, dovetails with our goals of bringing violators to justice and preventing future misconduct.”
“Today we announce the first coordinated action by French and U.S. law enforcement in a major foreign bribery case,” said Acting Assistant Attorney General Raman. “Our two countries are working more closely today than ever before to combat corporate corruption, and Total, which bought business through bribes, now faces the criminal consequences across two continents.”
According to the deferred prosecution agreement, in 1995 Total sought to re-enter the Iranian oil and gas market by attempting to obtain a contract with the National Iranian Oil Company (NIOC) to develop the Sirri A and E oil and gas fields. In May 1995, Total entered into negotiations with an Iranian official who served as the Chairman of an Iranian state-owned and state-controlled engineering company. Total subsequently entered into a purported consulting agreement pursuant to which Total would corruptly make payments to an intermediary designated by the Iranian official to secure NIOC signing a development agreement with Total for the Sirri A and E project, which NIOC did in July 1995. Over the next two-and-a-half years, Total paid approximately $16 million in bribes under the purported consulting agreement.
In 1997, Total sought to negotiate a contract with NIOC to develop a portion of the South Pars gas field, the world’s largest gas field. At the direction of the Iranian official, Total and a second intermediary entered into another purported consulting agreement that called for Total to make large payments to the intermediary. In September 1997, Total executed a contract with NIOC that granted it a 40 percent interest in developing phases two and three of the South Pars gas field. Over the next seven years, Total made unlawful payments of approximately $44 million pursuant to the second purported consulting agreement.
In sum, between 1995 and 2004, at the direction of the Iranian official, Total corruptly made approximately $60 million in bribe payments under the agreements for the purpose of inducing the Iranian official to use his influence in connection with Total’s efforts to obtain and retain lucrative oil rights in the Sirri A and E and South Pars oil and gas fields. Total mischaracterized the unlawful payments as “business development expenses” when they were, in fact, bribes designed to corruptly influence a foreign official. Further, Total failed to implement effective internal accounting controls, permitting the consulting agreements’ true nature and true participants to be concealed and thereby failing to maintain accountability for assets.
In addition to the monetary penalty, Total also agreed to cooperate with the department and foreign law enforcement, to retain an independent corporate compliance monitor for a period of three years, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations.
The case is being prosecuted by Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Charles Connolly of the U.S. Attorney’s Office for the Eastern District of Virginia. Significant assistance was provided by the Criminal Division’s Office of International Affairs and by the SEC’s New York Regional Office. The department also acknowledges and expresses its deep appreciation for the cooperation and partnership of French law enforcement authorities.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Frederick and Carey Gonzales Plead Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Frederick Gonzales, 42, and his wife Carey Gonzales, 36, both of Albuquerque, N.M., pleaded guilty this morning to federal child pornography charges announced U.S. Attorney Kenneth J. Gonzales, New Mexico Attorney General Gary K. King, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Bernalillo County Sheriff Dan Houston.
Frederick and Carey Gonzales were arrested on state child pornography charges on Jan. 11, 2013. At that time, Frederick Gonzales was the incoming president of Albuquerque’s Young America Football League (YAFL), and Carey Gonzales was employed as a kindergarten teacher’s aide by the Albuquerque Public Schools (APS). Shortly thereafter, the YAFL removed Frederick Gonzales from his position with the organization and APS fired Carey Gonzales. The couple subsequently was arrested on criminal complaints alleging federal child pornography charges on Jan. 18, 2013, by members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
Frederick and Carey Gonzales were indicted on Feb. 6, 2013. The six-count indictment charged Frederick Gonzales with three counts of receipt of visual depictions of minors engaged in sexually explicit conduct and two counts of possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Frederick Gonzales committed these offenses in Bernalillo County between July 2012 and Jan. 2013. The indictment charged Carey Gonzales with one count of possession of visual depictions of minors engaged in sexually explicit conduct and alleged that she committed the offense in Bernalillo County in Jan. 2013.
Court filings reflect that the charges against Frederick and Carey Gonzales were the result of an undercover investigation that was initiated by the New Mexico Attorney General’s Office in Sept. 2012, and identified an IP Address subscribed to Frederick Gonzales as one that was used to possess, receive and distribute child pornography. As a result of the investigation, on Jan. 11, 2013, the Bernalillo County Sheriff’s Office executed a search warrant at the Gonzales residence and seized computers and computer-related media that contained videos and images consistent with child pornography.
This morning, Frederick Gonzales entered a guilty plea to Count 1 of the indictment charging him with receipt of child pornography. Under the terms of his plea agreement, he will be sentenced to 97 months in federal prison followed by a term of supervised release to be determined by the Court. Gonzales also will be required register as a sex offender. In entering his guilty plea, Frederick Gonzales admitted that, on Jan. 11, 2013, he voluntarily participated in a recorded interview during which he admitted watching child pornography videos. He also admitted that he had been downloading child pornography videos using a file-sharing program for approximately six months.
Carey Gonzales entered a guilty plea to Count 6 of the indictment charging her with possession of child pornography. Under the terms of her plea agreement, Carey Gonzales will be sentenced to 36 months in federal prison followed by 20 years of supervised release. She also will be required to register as a sex offender. During her plea hearing, Carey Gonzales admitted that she too participated in a voluntary recorded interview while the search warrant was being executed at her residence on Jan. 11, 2013. During that interview, Carey Gonzales admitted watching child pornography videos that her husband downloaded and saved.
Frederick Gonzales has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Carey Gonzales was remanded into federal custody after entering her guilty plea. She too will remain in custody pending her sentencing hearing, which has yet to be scheduled.
The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees, and was investigated by the following members of the New Mexico ICAC Task Force: the New Mexico Attorney General’s Office, the Bernalillo County Sheriff’s Office, the Albuquerque office of the FBI and the New Mexico Regional Computer Forensic Lab.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Fort Totten Man Sentenced for Involuntary ManslaughterRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on May 29, 2013, Louis John Dunn of Fort Totten, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of involuntary manslaughter. Dunn pleaded guilty to the charge on March 6, 2013.
Judge Erickson sentenced Dunn to three years’ and five months’ imprisonment to be followed by three years of supervised release. Dunn was ordered to pay a $100 special assessment to the Crime Victim's Fund. Restitution will be determined at a later date.
On Oct. 12, 2012, Dunn, 36, while driving under the influence of alcohol, drove into the lane of on-coming traffic, striking the vehicle driven by Andrew Greywater who subsequently died from the injuries he received in the crash. The incident occurred on the Spirit Lake Indian Reservation.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Former Real Estate Agent Sentenced for Multimillion-dollar Mortgage Fraud SchemeRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 52-year-old White Bear Lake man was sentenced for his role in a mortgage fraud scheme that defrauded mortgage lenders out of at least $7 million. United States District Court Judge Susan Richard Nelson sentenced Robert Leo Rick to three years in prison on one count of conspiracy to commit mail and wire fraud. Rick was charged on December 23, 2011, and pleaded guilty on January 27, 2012.
In his plea agreement, Rick admitted that from 2005 through 2007, while employed as a real estate agent for Rick’s Realty, he worked with developers, builders, and investors seeking to “invest” in residential real estate. Rick admitted soliciting and conspiring with others to secure investors to purchase multiple residential properties, in transactions where those investors, or buyers, would receive undisclosed kickbacks from mortgage loan proceeds.
To generate the funds for the kickbacks, builders sold the homes at reduced prices, appraisers appraised the homes at inflated prices, and the mortgage loan lenders were informed only of the inflated prices, and thus awarded buyers mortgage loans based on the inflated prices rather than the true, reduced sales prices. The excess mortgage loan proceeds were then used to provide the buyers with the promised kickbacks, which were not disclosed to the mortgage loan lenders. All of this was known to Rick.
Through this scheme, Rick assisted builders and developers, including TJ Waconia, to sell approximately 102 residential properties with mortgage loans totaling approximately $26 million. He also served as property purchaser, directly or through the use of his then-wife’s name, for at least eight properties, and received a total of approximately $397,000 in purchaser kickbacks. To further his scheme, Rick admitted using the U.S. mail and commercial carriers, as well as interstate wire communication, to pass along information to investors.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Tracy L. Perzel.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.Former Puerto Rico Police Officers Convicted of Extorting A Defendant for $50,000Read the Press Release
SAN JUAN, PR – Two former police officers with the Police of Puerto Rico were convicted of attempting to extort a commonwealth defendant and soliciting bribe payments of $50,000, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Abimael Arroyo-Cruz, 30, of Río Grande, Puerto Rico, was convicted by a jury on charges including conspiracy to commit federal programs bribery, bribery, conspiracy to commit extortion and attempted extortion. Josué Becerril-Ramos, 36, of Carolina, Puerto Rico, pleaded guilty to the same counts during trial.
According to court records and evidence presented at trial, Arroyo and Becerril arrested eight individuals for possession of unregistered firearms and marijuana on Aug. 2, 2012. The officers then solicited from one individual a bribe payment of $50,000 to have his case dismissed. Beginning on Sept. 11, 2012, both officers spoke with the individual multiple times over the telephone, discussing payment details and strategies for dismissing the individual’s case. Arroyo and Becerril collected approximately $35,000 of the $50,000 in two different payment installments.
In exchange for the bribes, Arroyo and Becerril devised a plan whereby the officers would misidentify a co-defendant in court, leading to dismissal of that defendant’s case. When asked under oath at the preliminary hearing to identify the defendant, Arroyo instead identified a co-defendant.
Unbeknownst to the officers, the individuals who dropped off the payments were cooperating with federal law enforcement.
The case was investigated by the FBI’s San Juan Field Office. The case was prosecuted by Assistant U.S. Attorney Timothy Henwood of the District of Puerto Rico and Trial Attorneys Menaka Kalaskar and Marquest J. Meeks of the Criminal Division’s Public Integrity Section.
Former Puerto Rico Police Officers Convicted <br /> of Extorting a Defendant for $50,000Read the Press Release
Two former police officers with the Police of Puerto Rico were convicted of attempting to extort a commonwealth defendant and soliciting bribe payments of $50,000, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Abimael Arroyo-Cruz, 30, of Rio Grande, Puerto Rico, was convicted by a jury on charges including conspiracy to commit federal programs bribery, bribery, conspiracy to commit extortion and attempted extortion. Josue Becerril-Ramos, 36, of Carolina, Puerto Rico, pleaded guilty to the same counts during trial.
According to court records and evidence presented at trial, Arroyo and Becerril arrested eight individuals for possession of unregistered firearms and marijuana on Aug. 2, 2012. The officers then solicited from one individual a bribe payment of $50,000 to have his case dismissed. Beginning on Sept. 11, 2012, both officers spoke with the individual multiple times over the telephone, discussing payment details and strategies for dismissing the individual’s case. Arroyo and Becerril collected approximately $35,000 of the $50,000 in two different payment installments.
In exchange for the bribes, Arroyo and Becerril devised a plan whereby the officers would misidentify a co-defendant in court, leading to dismissal of that defendant’s case. When asked under oath at the preliminary hearing to identify the defendant, Arroyo instead identified a co-defendant.
Unbeknownst to the officers, the individuals who dropped off the payments were cooperating with federal law enforcement.
The case was investigated by the FBI’s San Juan Field Office. The case was prosecuted by Trial Attorneys Menaka Kalaskar and Marquest J. Meeks of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Timothy Henwood of the District of Puerto Rico.
Former Prison Staffer Found Guilty of Sexually Abusing Two InmatesRead the Press Release
PHOENIX– Jose Arnulfo Martinez, aka “Joe” Martinez, 49, of Phoenix, was found guilty by a federal jury on Tuesday of six counts of sexual abuse of a ward. The case was tried before U.S. District Judge Neil V. Wake from May 21, 2013 until May 28, 2013. Sentencing is set before Judge Wake on Aug. 26, 2013.
U.S. Attorney John S. Leonardo said, “Federal prison inmates have a right to serve their court ordered sentences without having to endure sexual abuse by anyone, and especially not at the hands of those who are entrusted with their care. The Justice Department will hold accountable all prison staff who abuse their power and the public trust. We thank our partners at the FBI and the Bureau of Prisons who join with us in this effort.”
During all relevant times, Martinez worked for the Bureau of Prisons at the Federal Correctional Institution-Phoenix, where he supervised federal inmates. The evidence at trial showed that in 2008, Martinez sexually abused an inmate on three different occasions. The evidence further showed that in 2010, Martinez sexually abused another inmate on three occasions.
Each conviction for sexual abuse of a ward carries a maximum penalty of 15years, a $250,000 fine or both.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Investigations Department of the Federal Correctional Institution-Phoenix. The prosecution was handled by Alison S. Bachus, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1222-PHX-NVW
RELEASE NUMBER: 2013-042_MartinezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Former Nevada Lobbyist Harvey Whittemore Convicted of Making Unlawful Senate Campaign ContributionsRead the Press Release
Following a two-week jury trial, F. Harvey Whittemore, a prominent lawyer and former lobbyist in Nevada, was convicted today of making unlawful campaign contributions to a Senate campaign committee in 2007 and causing a false statement to be made to the Federal Election Commission (FEC), announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Daniel G. Bogden, U.S. Attorney for the District of Nevada.
“Today, a jury convicted Mr. Whittemore of using dozens of straw donors to evade contribution limits so he could make good on a campaign fundraising promise,” said Acting Assistant Attorney General Raman. “The cornerstones of our campaign finance laws are contribution limits and transparency, and Mr. Whittemore’s crime was designed to undermine both. Today’s verdict demonstrates our resolve to aggressively pursue those who use illegal tricks to corrupt our democratic process.”
“Persons who knowingly violate campaign contribution laws will be investigated and prosecuted to the full extent of the law,” said U.S. Attorney Bogden. “Campaign laws exist to level the playing field. The public deserves to know that these laws are not just ‘on the books,’ and that persons with power and money who abuse the system for their own benefit will be prosecuted.”
Whittemore, 59, of Reno, Nev., was convicted of one count of making excessive campaign contributions, one count of making contributions in the name of others, and one count of causing a materially false statement to be made to the FEC, all felony offenses.
According to the indictment and evidence presented at trial, during 2007, Whittemore was the chief executive of Wingfield Nevada Group and was a registered lobbyist in Nevada.On Feb. 21, 2007, Whittemore met with a U.S. senator at a hotel in Las Vegas and agreed to raise $150,000 in contributions for the senator’s campaign committee by March 31, 2007, which marked the end of an FEC-mandated quarterly reporting period.
Federal laws prohibit persons from hiding their true identity when contributing to federal political campaigns, and also set limits on the amount that an individual can contribute to a campaign. In 2007, the maximum individual contribution was $2,300 for a primary election and $2,300 for a general election; thus, the maximum for one candidate was $4,600.
Aware of the strict limits on individual federal campaign contributions, Whittemore devised a scheme to unlawfully use about 29 family members, employees and their spouses as conduits to funnel more than $130,000 of his own money to the campaign. This scheme allowed Whittemore to make an individual campaign donation to the campaign committee in excess of the limits established by federal law. Whittemore concealed the scheme from the FEC, the senator, and the senator’s campaign committee.
In March 2007, Whittemore solicited family members, his employees and their spouses to make the maximum campaign donations to the senator’s campaign and Whittemore reimbursed or advanced the money to the contributors with personal checks and wire transfers. Whittemore also paid the contributors additional money on top of the reimbursements. If a conduit contributed $4,600, Whittemore reimbursed them $5,000; likewise if a couple contributed $9,200, he paid the couple $10,000.
On or about March 28, 2007, Whittemore caused one of his employees to transmit $138,000 in contributions to the senator’s campaign committee, the vast majority of which were conduit contributions that Whittemore had personally funded in order to satisfy his pledge to the senator. On April 15, 2007, the senator’s campaign then unknowingly filed a false report with the FEC stating that the conduits had made the contributions, when in fact, Whittemore had made them.
Whittemore is free on a personal recognizance bond pending sentencing, which is scheduled for Sept. 23, 2013. Whittemore faces up to five years in prison and a $250,000 fine on each count.
The case was investigated by the FBI, and is being prosecuted by Trial Attorney Eric G. Olshan of the Public Integrity Section in the Justice Department’s Criminal Division and First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada.
Former Nevada Lobbyist Harvey Whittemore Convicted of Making Unlawful Senate Campaign ContributionsRead the Press Release
WASHINGTON – Following a two-week jury trial, F. Harvey Whittemore, a prominent lawyer and former lobbyist in Nevada, was convicted today of making unlawful campaign contributions to a Senate campaign committee in 2007 and causing a false statement to be made to the Federal Election Commission (FEC), announced Daniel G. Bogden, U.S. Attorney for the District of Nevada and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
“Persons who knowingly violate campaign contribution laws will be investigated and prosecuted to the full extent of the law,” said U.S. Attorney Bogden. “Campaign laws exist to level the playing field. The public deserves to know that these laws are not just ‘on the books,’ and that persons with power and money who abuse the system for their own benefit will be prosecuted.”
“Today, a jury convicted Mr. Whittemore of using dozens of straw donors to evade contribution limits so he could make good on a campaign fundraising promise,” said Acting Assistant Attorney General Raman. “The cornerstones of our campaign finance laws are contribution limits and transparency, and Mr. Whittemore’s crime was designed to undermine both. Today’s verdict demonstrates our resolve to aggressively pursue those who use illegal tricks to corrupt our democratic process.”
Whittemore, 59, of Reno, was convicted of one count of making excessive campaign contributions, one count of making contributions in the name of others, and one count of causing a materially false statement to be made to the FEC, all felony offenses.
According to the indictment and evidence presented at trial, during 2007, Whittemore was the chief executive of Wingfield Nevada Group and was a registered lobbyist in Nevada.On Feb. 21, 2007, Whittemore met with a U.S. Senator at a hotel in Las Vegas and agreed to raise $150,000 in contributions for the Senator’s campaign committee by March 31, 2007, which marked the end of an FEC-mandated quarterly reporting period.
Federal laws prohibit persons from hiding their true identity when contributing to federal political campaigns, and also set limits on the amount that an individual can contribute to a campaign. In 2007, the maximum individual contribution was $2,300 for a primary election and $2,300 for a general election; thus, the maximum for one candidate was $4,600.
Aware of the strict limits on individual federal campaign contributions, Whittemore devised a scheme to unlawfully use about 29 family members, employees and their spouses as conduits to funnel more than $130,000 of his own money to the campaign. This scheme allowed Whittemore to make an individual campaign donation to the campaign committee in excess of the limits established by federal law. Whittemore concealed the scheme from the FEC, the Senator, and the Senator’s campaign committee.
In March 2007, Whittemore solicited family members, his employees and their spouses to make the maximum campaign donations to the Senator’s campaign and Whittemore reimbursed or advanced the money to the contributors with personal checks and wire transfers. Whittemore also paid the contributors additional money on top of the reimbursements. If a conduit contributed $4,600, Whittemore reimbursed them $5,000; likewise if a couple contributed $9,200, he paid the couple $10,000.
On or about March 28, 2007, Whittemore caused one of his employees to transmit $138,000 in contributions to the Senator’s campaign committee, the vast majority of which were conduit contributions that Whittemore had personally funded in order to satisfy his pledge to the Senator. On April 15, 2007, the Senator’s campaign then unknowingly filed a false report with the FEC stating that the conduits had made the contributions, when in fact, Whittemore had made them.
Whittemore is free on a personal recognizance bond pending sentencing, which is scheduled for Sept. 23, 2013, at 11:00 a.m. Whittemore faces up to five years in prison and a $250,000 fine on each count.
The case was investigated by the FBI, and is being prosecuted by First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada and Trial Attorney Eric G. Olshan of the Public Integrity Section in the Justice Department’s Criminal Division.Former Navy Reservist Pleads Guilty to Sexual Exploitation <br /> of Multiple Minors to Produce Child PornographyRead the Press Release
Anthony K. Mastrogiovanni, 30, of Crofton, Md., pleaded guilty today to the sexual exploitation of minors to produce child pornography.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service’s Washington Division.
According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by inspectors of the U.S. Postal Inspection Service in Las Vegas on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
As part of his plea agreement, Mastrogiovanni will be required to register as a sex offender in the place where he resides, where he is an employee and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Mastrogiovanni faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for sexual exploitation of a minor to produce child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 31, 2013.
The investigation was conducted by the U.S. Postal Inspection Service, with the assistance of the Air Force Office of Special Investigations, Naval Criminal Investigative Service and FBI’s Maryland Child Exploitation Task Force. The case is being prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham of the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Navy Reservist Pleads Guilty to the Sexual Exploitation of Minors to Produce Child PornographyRead the Press Release
Baltimore, Maryland - Anthony K. Mastrogiovanni, 30, of Crofton, MD, pleaded guilty today to the sexual exploitation of minors to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana in order to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by Inspectors of the United States Postal Inspection Service in Las Vegas, Nevada, on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton, MD, where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
As part of his plea agreement, Mastrogiovanni will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Mastrogiovanni faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for sexual exploitation of a minor to produce child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 31, 2013 at 9:30 a.m.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service for its work in the investigation and thanked the Air Force Office of Special Investigations, Naval Criminal Investigative Service, and FBI's Maryland Child Exploitation Taskforce for their assistance. Mr. Rosenstein thanked Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.
Former NYPD Sergeant Pleads Guilty in Manhattan Federal Court to $4.7 Million Real Estate Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAMES MONAHAN, the owner of a real estate investment company called Panam Management Group, Inc., and a former sergeant in the New York City Police Department (“NYPD”), pled guilty today in Manhattan federal court to wire fraud, mail fraud, and conspiracy to commit wire and mail fraud in connection with his participation in a fraudulent real estate scheme. As part of that scheme, MONAHAN misappropriated approximately $4.7 million he obtained from investors for a real estate development project he claimed to be constructing in the Dominican Republic. The real estate project was never developed and investors lost all of their money. MONAHAN pled guilty before U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “Like the real estate development project he promoted, James Monahan was a phony who exploited his past association with the NYPD to woo investors, only to trade that badge of pride for a badge of fraud. There is a price to be paid for defrauding investors, and this Office will continue its work to prosecute and punish bogus professionals.”
According to the Indictment, statements made during today’s guilty plea proceeding, and a Complaint previously unsealed in Manhattan federal court:
Beginning in early 2008, MONAHAN negotiated with another real estate investment company to solicit investors for a project he claimed to be constructing in the Dominican Republic. During the negotiations, MONAHAN repeatedly touted his prior service with the NYPD as proof of his trustworthiness and as a reason to invest in the project.
In connection with the project, MONAHAN and a co-conspirator, Edward Adams, who was a New York-based attorney, executed agreements that required investor funds to be deposited into escrow accounts that were to be managed by Adams. The agreements required that the majority of the funds be deposited in an account to which the defendants would not have access. From October 2008 through February 2009, approximately $4.7 million in investor funds were deposited into the escrow accounts. Shortly after the deposits were made, the funds were improperly withdrawn from the account by Adams without disclosure to investors.
In an effort to hide the fact that the funds had been removed from the escrow account, Monahan mailed a forged letter in May 2009 on the stationery of a major bank to investors claiming that their money was safely deposited with that bank. However, by June 2009, all of the investor funds had been taken from the escrow accounts. At that point, almost no work had been performed on the purported project in the Dominican Republic and no money was returned to investors.
MONAHAN, 43, of New York, New York, pled guilty to one count each of wire fraud, mail fraud, and conspiracy to commit wire and mail fraud, each of which carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
MONAHAN is scheduled to be sentenced by Judge Koeltl on October 4, 2013 at 10 a.m. Adams is scheduled to go to trial starting July 8, 2013.
Mr. Bharara praised the work of the Federal Bureau of Investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established 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 nearly 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, please visit www.stopfraud.gov.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorney John T. Zach is in charge of the prosecution.
Monahan, James and Adams, Edward Indictment
Former Gatlinburg Resident Sentenced to Serve 18 Months in Prison for Tax OffensesRead the Press Release
KNOXVILLE, Tenn. – David Lee Miner, 61, formerly of Gatlinburg, was sentenced on May 29, 2013, by the Honorable Thomas Phillips, U.S. District Court Judge, to serve 18 months in federal prison. In addition, Miner was ordered to pay restitution to the IRS for unpaid taxes in the amount of $36,205.10.
Miner was indicted on March 15, 2011, and was convicted at trial on March 28, 2013, on one count of impeding or obstructing the administration of the Internal Revenue Laws and two counts of failing to file federal income tax returns. During a six-day trial, the United States presented evidence of Miner’s efforts to obstruct the lawful functions of the Internal Revenue Service and his failure to file tax returns for the 2004 and 2005 tax years. The jury heard extensive testimony regarding Miner’s sale of services that were designed to assist customers in evading income taxes. In particular, the United States offered evidence of Miner’s service for the purported decoding and correcting clients’ IRS files, which Miner stated would prevent the IRS from being able to assess taxes. In addition, Miner set up “common law trusts,” which were intended to place clients’ income and possessions out of the reach of the IRS. In connection with both services, Miner would prepare frivolous and threatening letters to IRS employees and others in an effort to hamper the collection of taxes.
With respect to the sentencing, United States Attorney William C. Killian stated the following: "This conviction and sentence will deter others who not only avoid paying income taxes, but advise taxpayers how to avoid paying taxes."
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
Former Employee of Federal Court Contractor Sentenced for Bribery and PerjuryRead the Press Release
Falsified Drug Tests of Federal Defendants in Return for Bribes and
Then Lied to a Grand Jury Investigating the AccusationsGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Lauren Jeannette Diggs, age 51, of Rockville, today to 30 months in prison followed by three years of supervised release for a bribery conspiracy and making false statements to the grand jury, in connection with a scheme to accept bribes from individuals charged or convicted of federal crimes to falsify urine tests.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“Lauren Jeannette Diggs took bribes to falsify drug tests of federal criminal defendants, then committed perjury before the grand jury investigating the allegations,” said U.S. Attorney Rod J. Rosenstein. “Providing false information to courts and grand juries undermines the integrity of the criminal justice system.”
From July 27, 2009 through December 30, 2010, Diggs was the primary alcohol and substance abuse counselor for ADR, a company that provides alcohol and drug treatment services, at ADR’s Forestville facility, where she also supervised urine tests on female clients. U.S. Probation and Pretrial Services in Maryland contracted with ADR to test the urine samples of individuals who were on pretrial release, supervised release, parole or probation for the presence of controlled substances. When ADR clients completed their substance abuse and mental health treatment programs, ADR provided them with discharge summary certificates. U.S. Probation relied on the urine test results and certificates prepared by ADR to supervise individuals charged with or convicted of federal crimes, and to prepare reports to the U.S. District Court or the Parole Commission, who in turn relied on the reports to make release and sentencing decisions.
According to her guilty plea, starting in January 2010, Diggs asked co-conspirator Christopher Womack, who was employed at ADR as a urine technician, and others to ensure that certain ADR clients would not have their urine samples accurately tested and reported to U.S. Probation in exchange for money from ADR clients. Diggs introduced Womack to her bribe-paying clients and explained her bribe pricing schedule to Womack. After she was fired from ADR on December 30, 2010, Diggs continued to assist Womack in providing fictitious certificates to ADR clients in exchange for money, and received proceeds of bribe payments from Womack.
Many of the federal defendants who paid bribes had significant criminal histories and had been in fact ingesting controlled substances while on supervised release. In total, Diggs and Womack accepted more than 100 individual bribe payments.
During 2012, the Grand Jury in Greenbelt was investigating the bribery scheme, including Diggs’ participation. Subpoenas were issued in June 2012 requiring Diggs and Womack to appear and provide sworn testimony before the Grand Jury . On June 11, Womack called Diggs to discuss their anticipated testimony. Diggs attempted to persuade Womack to provide false testimony, saying:
“There ain’t nothing else to tell them m—f—!... They have no f— proof.… You don’t know s—. Deny! Deny! Deny!... If you don’t remember no other f— word you remember that g—d— word. Deny!... Cause that’s what the f— I’m gonna do.”
Diggs appeared before the Grand Jury on July 2, 2012 and made false statements, claiming that she did not know anyone at ADR who had received money in exchange for not requiring ADR clients to take court-mandated urine tests, or in exchange for providing discharge certificates. Diggs also denied that she had spoken to Womack since her discharge from ADR.
Three days later, in a telephone conversation on July 5, Diggs again attempted to persuade Womack to provide false testimony to the Grand Jury. Diggs said:
“Yo, that grand jury is nothing…. It’s nothing. It’s easy. Deny. Deny everything. You haven’t seen me…. Anything that’s asked, deny.”
Christopher Womack, age 44, of Forestville, Maryland, pleaded guilty to bribery and was sentenced to three years probation of which nine months are in home confinement
United States Attorney Rod J. Rosenstein praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.
Mr. Rosenstein thanked District of Maryland Chief U.S. Probation Officer William Henry for bringing the allegations to the attention of federal law enforcement.
Former Employee of Federal Court Contractor Sentenced for Bribery and PerjuryRead the Press Release
Falsified Drug Tests of Federal Defendants in Return for Bribes and
Then Lied to a Grand Jury Investigating the AccusationsGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Lauren Jeannette Diggs, age 51, of Rockville, today to 30 months in prison followed by three years of supervised release for a bribery conspiracy and making false statements to the grand jury, in connection with a scheme to accept bribes from individuals charged or convicted of federal crimes to falsify urine tests.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“Lauren Jeannette Diggs took bribes to falsify drug tests of federal criminal defendants, then committed perjury before the grand jury investigating the allegations,” said U.S. Attorney Rod J. Rosenstein. “Providing false information to courts and grand juries undermines the integrity of the criminal justice system.”
From July 27, 2009 through December 30, 2010, Diggs was the primary alcohol and substance abuse counselor for ADR, a company that provides alcohol and drug treatment services, at ADR’s Forestville facility, where she also supervised urine tests on female clients. U.S. Probation and Pretrial Services in Maryland contracted with ADR to test the urine samples of individuals who were on pretrial release, supervised release, parole or probation for the presence of controlled substances. When ADR clients completed their substance abuse and mental health treatment programs, ADR provided them with discharge summary certificates. U.S. Probation relied on the urine test results and certificates prepared by ADR to supervise individuals charged with or convicted of federal crimes, and to prepare reports to the U.S. District Court or the Parole Commission, who in turn relied on the reports to make release and sentencing decisions.
According to her guilty plea, starting in January 2010, Diggs asked co-conspirator Christopher Womack, who was employed at ADR as a urine technician, and others to ensure that certain ADR clients would not have their urine samples accurately tested and reported to U.S. Probation in exchange for money from ADR clients. Diggs introduced Womack to her bribe-paying clients and explained her bribe pricing schedule to Womack. After she was fired from ADR on December 30, 2010, Diggs continued to assist Womack in providing fictitious certificates to ADR clients in exchange for money, and received proceeds of bribe payments from Womack.
Many of the federal defendants who paid bribes had significant criminal histories and had been in fact ingesting controlled substances while on supervised release. In total, Diggs and Womack accepted more than 100 individual bribe payments.
During 2012, the Grand Jury in Greenbelt was investigating the bribery scheme, including Diggs’ participation. Subpoenas were issued in June 2012 requiring Diggs and Womack to appear and provide sworn testimony before the Grand Jury . On June 11, Womack called Diggs to discuss their anticipated testimony. Diggs attempted to persuade Womack to provide false testimony, saying:
“There ain’t nothing else to tell them m—f—!... They have no f— proof.… You don’t know s—. Deny! Deny! Deny!... If you don’t remember no other f— word you remember that g—d— word. Deny!... Cause that’s what the f— I’m gonna do.”
Diggs appeared before the Grand Jury on July 2, 2012 and made false statements, claiming that she did not know anyone at ADR who had received money in exchange for not requiring ADR clients to take court-mandated urine tests, or in exchange for providing discharge certificates. Diggs also denied that she had spoken to Womack since her discharge from ADR.
Three days later, in a telephone conversation on July 5, Diggs again attempted to persuade Womack to provide false testimony to the Grand Jury. Diggs said:
“Yo, that grand jury is nothing…. It’s nothing. It’s easy. Deny. Deny everything. You haven’t seen me…. Anything that’s asked, deny.”
Christopher Womack, age 44, of Forestville, Maryland, pleaded guilty to bribery and was sentenced to three years probation of which nine months are in home confinement
United States Attorney Rod J. Rosenstein praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.
Mr. Rosenstein thanked District of Maryland Chief U.S. Probation Officer William Henry for bringing the allegations to the attention of federal law enforcement.
Foreign National Pleads Guilty to Firearm and Immigration ChargesRead the Press Release
Antonio Rea-Fabela, also known as Roman Guadarrama, 36, a citizen of Mexico, who most recently resided in St. Louis, Missouri, pled guilty on May 28, 2013, to Possession of a Firearm by an Illegal Alien (Count 1); and Entry Into the United States Without Inspection (Count 2), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rea-Fabela, who is currently scheduled to be sentenced on September 13, 2013, faces a possible penalty of not more than ten years in prison, a fine of up to $250,000, not more than three years of supervised release, and a $100 special assessment on Count 1 and up to six months imprisonment, a $5000 fine and a $10 special assessment on Count 2. Rea-Fabela also agreed to the entry of a Judicial Order of Removal, which will require that he be deported from the United States after the service of any sentence of imprisonment.
Evidence for this indictment was gathered during an investigation conducted by Immigration and Customs Enforcement (ICE) of the Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the St. Clair County Sheriff’s Department. This case has been assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Felon with Six Prior Convictions Pleads Guilty to Unlawfully Possessing A PistolRead the Press Release
PITTSBURGH, Pa. – A convicted felon from Pittsburgh pled guilty to unlawfully possessing a pistol despite his six prior felony convictions, United States Attorney David J. Hickton announced today.
Byron Stevens, 33, pled guilty before United States District Judge Maurice B. Cohill, Jr. Sentencing is scheduled to occur on Sept. 4, 2013, at 11:00 a.m. Prior to May 30, 2012, Stevens had been convicted of at least six felony crimes in several different state cases some of which resulted in state prison sentences. On that date, Stevens possessed a .380 caliber AMT pistol. He discarded the pistol while attempting to run from Pittsburgh police officers during a traffic stop.
The law provides for a maximum total sentence of up to 10 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 Pittsburgh Bureau of 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.