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Monday 8 April 2013
Two Men Sentenced in Connection with Aryan Knights CaseRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that two individuals charged in connection with the Aryan Knights investigation were sentenced in United States District Court in Boise earlier today.
Dallas Tyler Thompson, 31, of Boise, was sentenced to 49 months in prison followed by three years of supervised release for unlawful possession of a firearm. Thompson pleaded guilty on January 16, 2013, to possessing a Glock 9 millimeter handgun on June 19, 2012. Thompson is prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated battery in 2001.
Andrew Gallegos, 23, of Boise, was sentenced to 24 months in prison followed by three years of supervised release for unlawful possession of a firearm. Gallegos pleaded guilty to the charge on January 14, 2013. Gallegos admitted that on February 21, 2012, he possessed a Smith & Wesson .357 semi-automatic pistol. Gallegos is prohibited from possessing firearms because he was previously convicted of the felony crimes of possession of a controlled substance and concealment of evidence.
Gallegos and Thompson were charged in two separate indictments filed in August and September 2012, respectively. These two defendants were among 23 people charged as a result of a long term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
Of the 23 individuals charged, 20 have pleaded guilty, two have signed plea agreements but have not yet entered guilty pleas, and one is set for trial. Of those who pleaded guilty, six were already sentenced, while 14 are currently awaiting sentencing.
The joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF) included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. The Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole also participated in the investigation.
The Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Men Found Guilty of Drug Trafficking ChargesRead the Press Release
PHOENIX – Robert Gene White, 45, of Chandler, Ariz. was found guilty of conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and less than 500 grams of cocaine, conspiracy to commit money laundering and three counts of transactional money laundering. Nadunt Chibeast, 61, of Tempe, Ariz. was found guilty of conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and less than 500 grams of cocaine, and conspiracy to commit money laundering. The case was tried before U.S. District Judge Susan R. Bolton from March 19 through April 4, 2013. Sentencing is set before Judge Bolton on July 8, 2013.
“This investigation epitomizes the effectiveness of coordinated federal and local law enforcement agency efforts,” said United States Attorney John Leonardo. “Drug traffickers using legitimate and illegitimate means to move drugs and money will be found out, arrested and prosecuted to the full extent of the law.”
“These guilty verdicts are the result of hard work and a true team effort. We are proud to be part of Operation Green Parcels. Our agents will continue to provide their expertise in narcotics cases by investigating money laundering - a skill that was crucial to the prosecution of these defendants” said Gabriel Grchan, Acting Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service Criminal Investigation.
The trial evidence showed that the drug trafficking organization (DTO) received drugs from Mexico via “backpackers,” repackaged the marijuana into parcels, then shipped it through United Parcel Service (UPS). White, who was a Phoenix UPS driver at the time, knowingly received the packages from the DTO and delivered them into the UPS mail-stream for delivery to customers in New York, Ohio and Virginia. In return, the DTO received parcels of money ranging from $20,000 to $30,000 from the buyers. To conceal who the money was being sent to, the DTO had buyers address returning money parcels to real addresses on White’s delivery route but with fictitious business names and suite numbers that did not exist. White then redirected them to the DTO. White shipped 200 to 300 pounds of marijuana each week for over a year, receiving as much as $50 for each pound of marijuana that went through his truck.
The trial evidence also showed that Chibeast assisted the DTO by driving a suspected drug load, assisting with marijuana packaging and conspiring to launder money. Chibeast allowed the DTO to direct its drug buyers to deposit money into his bank accounts in their home states and then he would transfer the money to the DTO’s bank accounts or withdraw cash to physically provide it to other DTO members.
A conviction for conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and less than 500 grams of cocaine carries a maximum penalty of life, a $10 million fine or both. A conviction for conspiracy to commit money laundering carries a maximum penalty of 20 years, a $500,000 fine or both. Each conviction for transactional money laundering carries a maximum penalty of 10 years, a $250,000 fine, or both.
The investigation in this case was conducted by the Drug Enforcement Administration, the Internal Revenue Service, and Pinal County Narcotics Task Force officers from the Pinal County Sheriff’s Office, the Coolidge Police Department, the Apache Junction Police Department and the Maricopa Police Department. The prosecution was handled by Glenn McCormick, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-11-01243-PHX-SRB
RELEASE NUMBER: 2013-027_White_etalFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Two District Men Convicted of Conspiracy to Commit Murder and Other Charges for Roles in Gun Battles Between Rival Crews- Crimes Include Multiple Shootings, Homicide -Read the Press Release
WASHINGTON – Two men were found guilty by a jury today of conspiracy to commit murder and other charges stemming from a violent rivalry that unfolded in 2010 between two street crews in Southeast Washington, announced U.S. Attorney Ronald C. Machen Jr.
William Spriggs, 31, and Raymond Davis, 30, were found guilty following a two-month trial in the Superior Court of the District of Columbia. Spriggs also was convicted of charges of first-degree murder while armed, assault with intent to kill while armed, and other gun-related offenses. Davis also was found guilty of assault with intent to kill while armed and weapons offenses. The Honorable John Ramsey Johnson scheduled sentencing for June 28, 2013.
A third defendant, Deante Harding, 25, was found guilty today of conspiracy to assault. Harding was sentenced to time served. All three defendants are from Washington, D.C.
The case centered on a series of shootings that occurred in 2010 in the Benning Terrace neighborhood of Southeast Washington. The rivalry involved individuals from the Avenue, an area in Benning Terrace west of 46th Street SE, and individuals from the Circle, a cul-de-sac in the 600 Block of 46th Place SE. Both crews dealt narcotics, possessed firearms, and sought to evade law enforcement. Spriggs, Davis and Harding were part of the Avenue group.
According to the government’s evidence, during the spring of 2010, individuals from the Avenue traded retaliatory shootings with individuals in the Circle. Davis, for example, on one occasion shot at an individual coming from the Circle. Also, on May 14, 2010, three Avenue members, including Spriggs and Davis, ran into the Circle and fired multiple gunshots, hitting a Circle crew member.
Then, on May 30, 2010, Circle members armed themselves and went to the Avenue and shot at individuals. Several minutes later, several Avenue crew members ran up into the Circle, firing their weapons, where they encountered multiple Circle crew members who fired at them. During the shooting, a bystander from the Circle, Antwan Buckner, 32, was shot and killed.
In its verdict, the jury convicted Spriggs of first-degree murder while armed in the killing of Mr. Buckner, and acquitted Davis of that charge. Harding also was acquitted of some offenses. Harding was arrested in March 2011 and until November 2012 was serving time for a probation violation.
In separate proceedings, other individuals from the Circle were tried and convicted or pled to crimes related to the murder of Mr. Buckner and an additional murder.
In announcing the verdict, U.S. Attorney Machen praised those who worked on the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, Sharon Newman, and Meridith McGarrity; Litigation Technology Specialists Thomas Royal and Kimberly Smith; Victim/Witness Advocate Marcia Rinker and the entire staff of the Victim Witness Assistance Unit, and Assistant U.S. Attorneys Jeff Pearlman and Laura Bach, who investigated and prosecuted the case.
13-123Two Albuquerque Men Arraigned on Federal Charges Arising Out of Commercial Armed Robberies and CarjackingsRead the Press Release
ALBUQUERQUE – Joel Meeks, 19, and Raul Ortega, 20, both of Albuquerque, N.M., were arraigned this morning on an eight-count indictment alleging violations of the Hobbs Act by interfering with a business involved in interstate commerce by robbery, the federal carjacking statute and firearms laws. Both men entered not guilty pleas during this morning’s hearings and are detained pending trial, which has yet to be scheduled.
The indictment alleges that Meeks robbed two Albuquerque businesses in Dec. 2012, and used firearms to perpetrate the robberies. It further alleges that Meeks and Ortega carjacked two vehicles in Jan. 2013, and used firearms to perpetrate the two offenses.
According to the indictment, Meeks robbed a business called “Up in Smoke” at gunpoint on Dec. 6, 2012. Meeks also is charged with robbing a business called “PDQ” at gunpoint on Dec. 7, 2012, and discharging his firearm while committing the offense. Meeks and Ortega are jointly charged with carjacking a Kia Sorento on Jan. 13, 2013 and carjacking a Mitsubishi on Jan. 17, 2013. The two men allegedly brandished firearms while committing the carjackings.
A conviction on each of the two Hobbs Act counts carries a maximum penalty of twenty years of imprisonment and a $250,000 fine. A conviction on each of the two carjacking counts carries a maximum penalty of fifteen years in prison. The three counts alleging the use of a firearm in furtherance of a crime of violence each carry a mandatory seven-year term of imprisonment to be served consecutive to any sentence imposed on the underlying robbery or carjacking. A conviction on the count alleging the discharge of a firearm that was used and carried during a crime of violence carries a mandatory ten-year term of imprisonment to be served consecutive to any sentence imposed on the underlying robbery.
Meeks and Ortega were both in state custody on state charges arising out of the offenses charged in the federal indictment until they were transferred to federal custody for today’s arraignment hearings.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the worst of the worst anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Thornton Man Arrested at Denver International Airport (DIA) After Abusive Sexual Contact Wiht Flight Attendant on Spirit AirlinesRead the Press Release
DENVER – Evan Nathaniel Castle, age 24, of Thornton, Colorado, was arrested Friday on charges of abusive sexual contact, after groping a Spirit Airlines flight attendant, United States Attorney John Walsh and FBI Denver Acting Special Agent in Charge Steven Olson announced. Castle appeared in U.S. District Court in Denver this afternoon, where he was advised of his rights, and the charges pending against him.
According to the affidavit in support of the Criminal Complaint, obtained today, Monday, April 8, 2013, Castle was a passenger on Spirit Airlines Flight 562 en route from Las Vegas, Nevada to Denver International Airport. During the flight Castle was served several alcoholic drinks. He then became loud and used profane language. Ultimately, one of the flight attendants told Castle to stop using vulgar language and to quiet down. He refused, and commented that he should date the flight attendant.
As another flight attendant was walking down the aisle of the aircraft, Castle told her she was beautiful. He then told her to “blow off work and come with me.” The flight attendant ignored the comments. As she passed his row, Castle deliberately groped the right cheek of her buttocks and said, “Oh sexy.” This made the flight attendant not want to walk past his seat. The flight attendant that was groped then told the other flight attendant that Castle had “grabbed her butt.”
If convicted, Castle faces not more than 2 years in federal prison, and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation (FBI).
Castle is being prosecuted by Assistant U.S. Attorney James Allison, Chief of the U.S. Attorney’s Office Criminal Division.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a federal grand jury in Denver.
The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
UPDATE
The crime (abusive sexual contact) took place on Friday, April 5, 2013 aboard Spirit Airlines Flight #562, which landed at DIA at 11:56 a.m. Castle was arrested at that time, and was held in custody over the weekend pending the filing of charges, which took place today, Monday, April 8, 2013. Castle appeared in court this afternoon before a U.S. Magistrate Judge. At that hearing, Castle was released on a personal recognizance bond, with the conditions that he cannot drink alcohol while his case is pending and that he cannot fly on commercial aircraft while his case is pending. He is next due in court on May 6, 2013 for a preliminary hearing. Attached for your information is the Criminal Complaint, which includes things said by Castle to the flight attendants.
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Tacoma Man Sentenced to 33 Months in Prison for Tax Fraud SchemeRead the Press Release
One of four people indicted for scheming to fraudulently claim more than $145,000 in tax refunds using the names and Social Security numbers of inmates at the Washington State Penitentiary at Walla Walla, was sentenced today in U.S. District Court in Tacoma, announced U.S. Attorney Jenny A. Durkan. RICHARD SHANE WRIGHT, 43, was sentenced to 33 months in prison and three years of supervised release for conspiracy to defraud the government. The alleged leader of the conspiracy, Kenneth Randle Door, is scheduled for trial later this year. At sentencing, U.S. District Judge Benjamin H. Settle ordered WRIGHT to pay $71,885 in restitution to the U.S. Department of Treasury and remarked, “the United States Treasury is not the real victim” of this serious offense; rather, “the real victims are the millions of people who will be filing their tax returns later this month. . . . Our system relies upon folks who pay their taxes to fund the operation of what is still the greatest country on Earth ̶ perhaps the greatest country that has ever existed.”
According to records filed in the case, WRIGHT joined the scheme in late March 2009, which was responsible for filing at least 31 fraudulent tax returns for tax years 2007 and 2008. Door provided the names and Social Security numbers of his fellow inmates at the Washington State Penitentiary, which WRIGHT and others used to create and file fake W-2 forms and federal income tax returns, all claiming tax refunds due. In order to fabricate employment and wage data, the conspirators identified companies that had declared bankruptcy and had recently closed. WRIGHT created fake W-2 forms indicating wages paid and taxes withheld from the individuals whose identities they used. The refunds were typically directed to one of several bank accounts controlled by WRIGHT or another associate. In all, the conspirators tried to obtain more than $145,000 in tax refunds, and nearly $72,000 was paid out. Co-schemers Lucy Anne Hyder, aka Lucy Bailey, 53, was sentenced in February to eight months in prison, and Ruth Louise Branstetter, aka Ruth Bishop, 48, was sentenced last month to almost 7 months in prison.
“Stopping refund fraud remains a priority for IRS CI because when people steal from the U.S. Treasury the real victim is every honest taxpayer in America,” said Special Agent in Charge Kenneth J. Hines, of Internal Revenue Service, Criminal Investigation, in Seattle. “These crimes are a threat to our nation’s ability to fund programs and services for our communities, and Special Agents of IRS CI will continue to work with our partners at the U.S. Attorney’s Office to detect these frauds, shut them down, and bring the perpetrators to justice.”
The case was investigated by Internal Revenue Service, Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Steven Masada.
Stratford Woman Sentenced to Two Years in Prison for Embezzling $1 Million from Greenwich Investment FirmRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that CLAIRE BALDUCCI, 47, of Stratford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 24 months of imprisonment, followed by three years of supervised release, for embezzling approximately $1 million from her Greenwich employer.
According to court documents and statements made in court, BALDUCCI worked as the office manager for a private investment company based in Greenwich. As office manager, she had access to six business bank accounts. Between approximately September 2008 and November 2011, BALDUCCI issued numerous checks from the firm’s business accounts payable to herself, to “cash” and to third-party vendors, all of which she deposited in her personal bank account. BALDUCCI also opened a credit card account in the name of the managing partner of the victim company and authorized herself as a co-user of the account. She then made unauthorized charges for personal expenses on the account. Through these schemes, BALDUCCI embezzled approximately $1 million.
Chief Judge Thompson ordered BALDUCCI to pay restitution in the amount of $995,000.
On December 12, 2012, BALDUCCI pleaded guilty to one count of wire fraud. She began serving her sentence today.
This investigation was conducted by the Greenwich Police Department and the Connecticut Financial Crimes Task Force, which includes members of the United States Secret Service; the United States Postal Inspection Service; the United States Department of State, Bureau of Diplomatic Security; the Internal Revenue Service - Criminal Investigation; the Connecticut State Police; and the Greenwich, Hartford, Shelton and Stamford Police Departments.
This case was prosecuted by Assistant United States Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Statement of U.S. Attorney Jenny A. Durkan on the Resignation of Seattle Police Department Chief John DiazRead the Press Release
I have worked closely with Chief John Diaz for many years. He has been a key partner in addressing gun violence, dismantling criminal organizations, and combatting terrorist threats. He oversaw the first steps of the implementation of reforms within the Seattle Police Department. I am grateful for his partnership and service, and wish him well.
This is a critical time for SPD and our community. Jim Pugel has shown before that he can step up and lead. To move us forward, he will need to help guide and implement the full range of reforms and set clear expectations and direction for every officer. The next several months are very important for reform and public accountability. SPD will be drafting and adopting new policies and developing new training around use of force, bias-free policing, and stops. Getting reform right requires everyone moving in the same direction. Chief Pugel's leadership will be essential.
Rapid City Man Sentenced for Failure to Register or Update as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man convicted of Failure to Register or Update as a Sex Offender was sentenced on April 2, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Shaun Jason Meyer, age 36, was sentenced to 24 months of imprisonment, 5 years of supervised release, and ordered to pay $100 to the Victim Assistance Fund.
Meyer was indicted for Failure to Register or Update as a Sex Offender by a federal grand jury on June 19, 2012. Between November 2011 and June 2012, Meyer, who is required to register as a sex offender, failed to update his registration with the State of South Dakota. Meyer pled guilty on August 29, 2012.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case. Meyer was immediately turned over to the custody of the U.S. Marshal.
Pittsburg Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
On April 5, 2013, Jason Scott Byrley, 35, of Pittsburg, Illinois, pled guilty in United States District Court in Benton to a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
The conspiracy offense occurred between 2008, and January 30, 2012, in Williamson, Jackson, Saline, and Franklin Counties. Byrley’s offense carries possible penalties of a term in prison from 10 years to life, a fine of not more than $10 million, and at least 5 years’ supervised release. Sentencing is set for August 8, 2013.
The ongoing investigation is being conducted by the Drug Enforcement Administration, Jackson County Sheriff’s Office, Murphysboro Police Department, Marion Police Department, Williamson County Sheriff’s Office, Saline County Sheriff’s Office, Illinois State Police, Carrier Mills Police Department, Harrisburg Police Department, and United States Marshals Service.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Pine Ridge Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 2, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Alphonso Belt, age 50, was sentenced to 46 months' imprisonment, 3 years of supervised release, and ordered to pay $100 to the Victim Assistance Fund.
Belt was indicted for Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon by a federal grand jury on November 15, 2011. The charges relate to Belt stabbing his friend in the neck with a knife while the two were drinking on November 2, 2011 at Pine Ridge. The assault resulted in paralysis to the victim and limited mobility below the chest. Belt pled guilty on December 18, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Belt was immediately turned over to the custody of the U.S. Marshal.
Pierre Man Pleads Guilty to Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that Dakota Lee Dillon, age 24, of Pierre, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on April 2, 2013 and pled guilty to Escape from Custody. The maximum penalty upon conviction is 5 years imprisonment and/or a $250,000 fine.
On July 20, 2012, Dillon escaped from the custody of the Bureau of Prisons while at Community Alternatives of the Black Hills.
The investigation was conducted by the U.S. Marshal Service. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Percy Men Plead Guilty to Methamphetamine ConspiracyRead the Press Release
On April 5, 2013, Michael J. Jaimet, 31, and Joshua D. Stacy, 26, both of Percy, Illinois, pled guilty in United States District Court in Benton to a one-count second superseding indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea hearings established that Jaimet and Stacy were involved with each other and others in the manufacture of methamphetamine. Jaimet and Stacy obtained pseudoephedrine for use during the manufacture of methamphetamine and also were involved in the methamphetamine cooks.
The sentencing hearings were set for August 8, 2013. At that time, both men face up to 20 years in prison, 3 years of supervised release, and a fine of up to $1,000,000. Co-defendants Steven A. Zweigart, II, Kathy L. Griffin, Jeremy R. Rettig, a/k/a “Jeremo,” and Leila M. Jaimet have previously pled guilty to the methamphetamine charge and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Pennsylvania Man Indicted for Drug Conspiracy and PossessionRead the Press Release
United States Attorney Brendan V. Johnson announced that a Newton Square, Pennsylvania man has been indicted by a federal grand jury.
David Wallace, age 52, was indicted by a federal grand jury on April 2, 2013 for Conspiracy and Possession with Intent to Distribute a Controlled Substance. Wallace appeared before U.S. Magistrate Judge Mark A. Moreno on April 8, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is not more than 20 years of imprisonment, a $1,000,000 fine, or both; at least 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charges are merely accusations, and Wallace is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant United States Attorney Kathryn N. Rich is prosecuting the case.
Wallace was remanded to the custody of the U.S. Marshal Service. A trial date has been set for May 14, 2013.
Omaha Man Sentenced for Conspiracy to Distribute Crack CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 8, 2013, Donald Hughes, 53, of Omaha, was sentenced to 6 years, 10 months in prison for his role in a conspiracy to distribute crack cocaine in the Omaha area between August of 2011 and January of 2012. Following the prison term, Hughes will serve four years on supervised release.
In August 2011, a confidential informant introduced an undercover officer to Herbert Christian, from whom the CI had previously purchased drugs. Over the course of the next several months the undercover officer and the CI together or the officer alone purchased approximately 2 ½ ounces of crack from Christian. During the investigation, officers were able to identify Hughes as the supplier of the crack cocaine.
Hughes is already in Bureau of Prisons custody serving a sentence for violating his supervised release on a 1997 crack conspiracy conviction. His 70 month sentence begins today. Christian was previously sentenced to 70 months imprisonment for his involvement.
The matter was investigated by the Greater Omaha Safe Streets Task Force, which includes officers of the Federal Bureau of Investigation, (FBI), Omaha Police Department, Bellevue Police Department and the Nebraska State Patrol.
New York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Javier Balasquide from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on April 5, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Alberto Gonzales appointed Judge Balasquide in July 2006. Judge Balasquide received a bachelor of arts degree in 1988 from the University of Delaware and a juris doctorate in 1991 from the Interamerican University School of Law. From March 2003 to July 2006, he served as chief counsel at U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in Arlington, Va. From February 1999 to March 2003, he served at the former Immigration and Naturalization Service (INS) in Arlington and Falls Church, Va., in various capacities, including district counsel, appellate counsel, and assistant district counsel. From November 1991 to February 1999, Judge Balasquide served as an assistant district counsel for INS in Miami, entering on duty through the Attorney General=s Honors Program. Judge Balasquide is a member of the Puerto Rican Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewMortgage Fraud Ringleader Sentenced to 13 YearsRead the Press Release
A 45-year-old Fenton man was sentenced today to 13 years in prison in connection with a multi-million dollar mortgage fraud conspiracy, United States Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement was Special Agent in Charge Robert D. Foley, III, head of the Detroit Division of the Federal Bureau of Investigation (FBI).
U.S. District Judge Julian Abele Cook, Jr., also sentenced Ronnie Edward Duke to pay a $1 million fine and $94 million in restitution. Duke led the scheme for close to four years, ending in July 2007 when the FBI executed seven search warrants in metropolitan Detroit and Florida.The scheme involved more than 450 fraudulent mortgage loans, more than 100 straw buyers, and approximately 180 different residential properties in metropolitan Detroit that were used as collateral for the loans. Most of these loans went into default and foreclosure. The loans ranged from roughly $350,000 to $600,000. Lenders were deceived by counterfeit purchase agreements, fake closing documents, and fictitious title companies that were actually controlled by Duke and his co-conspirators. The warranty deeds and mortgages associated with the majority of the loans went unrecorded, leaving the lenders completely unsecured. Such loans were commonly referred to as “ghost” loans by the defendants during the scheme.
“Mortgage fraud not only harms lenders, but it also affects all of us when foreclosures lead to vacant homes, which reduce property values and create havens for criminal activity,” McQuade said.
"Those who orchestrate and conduct mortgage fraud schemes that steal millions of dollars from innocent victims, will face severe consequences for their crimes,” Foley said. The FBI remains committed to pursuing and prosecuting anyone who engages in these illegal acts."
Fifteen of Duke’s co-conspirators were previously sentenced, including:∙ Ryan Andrew Zundel, 38, of Brewton, Alabama – 10 years
∙ Nicole Lynn Rothe (formerly Nicole Lynn Turcheck), 34, of Gibraltar – 10 years
∙ William Camsell Wells, III, 42, of Howell – 8½ years
∙ Wilinevah Richardson, 35, of Davison – 5 years
∙ Donna Marie Walbrook, 50, of Westland – 5 years
∙ Anthony Edward Peters, 75, of Monroe – 41 months
∙ Robert Brierley, 46 of Westland – 33 months.
Duke spent his fraud proceeds to operate a car racing business called Hardcore Racing, Inc. He purchased numerous sports cars, race cars, boats, motorcycles, and a helicopter. Duke’s co-defendants used their proceeds to finance unrelated businesses and to purchase luxury items, including cars, boats, motorcycles, race horses, residential properties, and travel to the Caribbean and other overseas vacation destinations.Duke’s criminal history includes embezzlement, credit card fraud, receiving and concealing stolen property, escape, aggravated stalking and disturbing the peace.
This case was prosecuted by Assistant United States Attorneys Erin Shaw and Stephen Hiyama, and investigated by the FBI, with the assistance of the U.S. Secret Service.
McLaughlin Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Ryan Soft, age 22, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on April 4, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Soft is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Soft was remanded to the custody of the U.S. Marshal pending trial on June 11, 2013.
Manhattan U.S. Attorney Announces the Extradition from the Dominican Republic of Its Former Drug Control Operations Chief on Narcotics Trafficking ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Brian R. Crowell, Special Agent-in-Charge of the New York Division of the United States Drug Enforcement Administration (“DEA”), and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today that FRANCISCO ANTONIO HIRALDO-GUERRERO, a former Dominican military official and former chief of operations for the Dominican National Directorate for Drug Control (the “DNCD”), was extradited from the Dominican Republic on charges of conspiracy to import and distribute hundreds of kilograms of cocaine in the United States. HIRALDO-GUERRERO, a citizen of the Dominican Republic, arrived in the Southern District of New York on April 5, 2013. He was presented in U.S. Magistrate Court on Saturday.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, in a classic case of the ‘fox guarding the hen house,’ Francisco Antonio Hiraldo-Guerrero was a corrupt public official who exploited his position atop the Dominican Republic’s drug control office to facilitate the importation of massive quantities of cocaine into the United States. Corruption comes in many forms as does the harm it causes, and we will continue to fight it wherever we find it.”
DEA Special Agent-in-Charge Brian R. Crowell said: “The DNCD is equivalent to the DEA in the Dominican Republic and both law enforcement organizations' focus is on dismantling drug trafficking organizations while seizing illicit drugs and the profit off the sale. Hiraldo-Guerrero allegedly abused his ranking position within the military of the Dominican Republic and betrayed the public trust through his facilitation of drug trafficking. Hiraldo-Guerrero allegedly turned a blind eye to justice, but justice uncovered his alleged charges which brought him to face the consequences of his actions in the United States. The dedicated members of the Strike Force, the DEA Santo Domingo Country Office, and our law enforcement partners within the Dominican Republic worked together to bring him to justice.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Hiraldo-Guerrero allegedly abused his position in the Dominican military and the government's anti-narcotics unit to smuggle tons of cocaine into the United States. In cooperation with U.S. and international law enforcement entities, HSI is a partner in the fight against drug trafficking.”
According to the Indictment unsealed Friday and previously filed in Manhattan federal court:
From 2001 to May 2005, HIRALDO-GUERRERO conspired with others to import and distribute hundreds of kilograms of cocaine from the Dominican Republic to the United States. From 2007 to 2009, HIRALDO-GUERRERO also conspired with others to distribute hundreds of kilograms of cocaine knowing and intending that the cocaine would be imported into the United States.
For example, in September 2003, one of HIRALDO-GUERRERO’s co-conspirators (“CC-1”) sent approximately 300 kilograms of cocaine to New York. In addition, in November 2007, HIRALDO-GUERRERO assisted in the transportation of approximately 600 kilograms of cocaine from Colombia to the Dominican Republic by boat.
HIRALDO-GUERRERO, 53, is charged with one count of conspiracy to distribute cocaine and two counts of conspiracy to import cocaine into the United States. If convicted, he faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The case has been assigned to U.S. District Judge John F. Keenan.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the DEA, the New York City Police Department, ICE HSI, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, and the U.S. Marshals Service. Mr. Bharara also thanked the DEA’s Santo Domingo Country Office, the Government of the Dominican Republic, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian Everdell and Glen Kopp are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Francisco Antonio Hiraldo-Guerrero Indictment
Man Sentenced in Child Pornography CaseRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that ZAKARY LANE SIDERS, 25, of Niagara Falls, New York, who was convicted of Transportation of Child Pornography on January 2, 2013, was sentenced to five years’ incarceration by U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant had been convicted of Transportation of Child Pornography when he sought out and received over 60 pornographic images of a minor via the Internet and transported a hard-drive containing the images to Western New York.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Richard M. Frankel.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Man Pleads Guilty in Robbery of Convenience Store in Manhattan, Kan.Read the Press Release
TOPEKA, KAN. – A man has pleaded guilty to robbing a convenience store in Manhattan, Kan., U.S. Attorney Barry Grissom said today.
Frank Joseph Hanson, 22, Manhattan, Kan., pleaded guilty today to one count of brandishing a firearm during a crime of violence. In his plea, Hanson admitted that on Feb. 6, 2013, he robbed Dara’s Fast Lane, a convenience store in Manhattan.
In a related arson case, defendants Patrick Martin Scahill, 20, Manhattan, Kan., and Virginia Amanda Griese, 19, Manhattan, Kan. have scheduled change of plea hearings for 1:30 p.m. April 17 before Judge Julie A. Robinson in U.S. District Court in Topeka.
In Hanson’s case, the Riley County Police Department received a report of a robbery at Dara’s Fast Lane at about 1:21 a.m. on Feb. 6. A masked man brandishing a small revolver demanded money from the register. The robber also tried to force the clerk to use an ATM in the store to withdraw money from the clerk’s bank account. The robber left the store after the clerk swiped his card through the ATM and showed the robber how little money there was in the clerk’s account.
At about 6 p.m. on the same day, Riley County police responded to a report of someone firing a weapon at parked cars. When police contacted the residents, Dennis James Denzien and Patrick Martin Scahill, they smelled marijuana. Police informed Denzien and Scahill that they were going to obtain a warrant to search the residence. After obtaining a warrant, police entered the residence and found clothing matching the description from the robbery at Dara’s. Police obtained a second warrant and found a mask, gloves, a backpack and the firearm used in the robbery, an RG Industries Model RG14 .22 caliber revolver.
Hanson is set for sentencing July 8. Co-defendant Dennis James Denzien is awaiting trial. Hanson faces a penalty of not less than seven years and not more than life and a fine up to $250,000.
In the related arson case, Patrick Martin Scahill and Virginia Amanda Griese, were indicted on one count of arson resulting in a death. The indictment alleges that on Feb. 6, 2013, Scahill and Griese were responsible for a fire at the Lee Crest Apartments, 820 Sunset Ave., in Manhattan. Vasanta Pallem, a 34-year-old postdoctoral researcher at Kansas State University who lived in the apartment complex, died as a result of the fire.
Grissom commended the agencies involved in investigating the two cases including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riley County Attorney’s Office, the Riley County Police Department, the Manhattan Fire Department, the Kansas State Fire Marshal’s Office, the Kansas Bureau of Investigations and the Pottawatomie County Sheriff’s Office. He also commended the attorneys who are prosecuting the cases including Assistant U.S. Attorney Jared Maag, Riley County Attorney Barry Wilkerson and Assistant Riley County Attorney Barry Disney.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Leader of Southwest Idaho Meth Trafficking Conspiracy Sentenced to over 33 Years in Federal PrisonRead the Press Release
Ten Defendants Now Set to Serve Lengthy Prison Sentences
BOISE – Jesus Guadalupe Sanchez, a/k/a Jose Salazar, 32, a Mexican national, the leader and organizer of a major Southwest Idaho drug trafficking conspiracy, was sentenced today to 400 months in federal prison for conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute, U.S. Attorney Wendy J. Olson announced. Following his release from prison, Sanchez must serve five years of supervised release; he also faces possible deportation.
Co-conspirator Michael Dennis Morris, 42, of Weiser, Idaho, was also sentenced today to 156 months in prison followed by eight years of supervised release. The court also ordered Morris to pay a $2,000 fine. The two appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. To date, fourteen defendants have been sentenced in the case.
On January 22, 2013, following a six-day trial, a federal jury convicted Sanchez, Morris and co-defendant Jim Allen Loveland of conspiring with others, including co-defendants, to distribute a total of approximately eleven pounds of methamphetamine in Canyon, Payette and Washington counties between November 2011 and May 16, 2012.
Eight defendants were sentenced in February and March 2013 to serve federal prison sentences, including Dawson Lee Moore, of Weiser, to 36 months in prison for conspiracy to possess with intent to distribute methamphetamine; Benjamine L. Vertner, of Ontario, Oregon, to 138 months; Patric Campbell, of Boise, to 124 months; Kristopher Hensley, of Weiser, to 51 months; Johnny A. Tambunga, of Weiser, to 47 months; Jacob James Clevenger, of Weiser, to 188 months; Mario Martinez, Jr., of Greenleaf, Idaho, to 57 months; and Fabian Jordano Beltran, of Weiser, to 36 months.
Loveland, 58, of Boise, Idaho, the sole remaining defendant, is set for sentencing on May 23, 2013.
“These drug traffickers well deserve the lengthy sentences the Court imposed,” said Olson. “This outstanding investigation and prosecution demonstrate that federal, state and local law enforcement will work together in all parts of Idaho to ensure that those who seek to poison our communities with this poisonous drug are caught, prosecuted and punished.”
The case was investigated by the Idaho State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Kenneth L. Mclain and Karl Kaii Baker Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendants Kenneth L. McLain, age 32, and Karl Kaii Baker, age 34, were sentenced today in the United States District Court, for Conspiracy to distribute more than 50 grams of methamphetamine (ice). McLain was sentenced to 108 months in prison, five years supervised release upon his release from prison and a $500 fine. Baker was sentenced to a term of 78 months in prison and five years supervised release. Additionally, the Court recommended to the Bureau of Prisons that McLain and Baker be placed in a drug rehabilitation program in a California.
In September 2011, the U.S. Postal Inspection Service (USPIS) intercepted a package in the mail containing methamphetamine. A search of the package revealed methamphetamine; the sender attempted to cover the odor emitted by the drug. Federal and local law enforcement conducted a controlled delivery of the package to McLain and Baker, who were subsequently arrested.
U.S. Attorney Limtiaco commends the hard work and efforts of the USPIS, Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Department of Homeland Security, Homeland Security Investigations, Guam Customs and Quarantine, Guam Police Department and the Guam Superior Court Probation office for their participation and assistance in this investigation. Assistant U.S. Attorney Clyde Lemons prosecuted the case.
Justice Department Requires Divestiture in Merger<br /> of Ecolab Inc. and Permian Mud Service Inc.Read the Press Release
The Department of Justice today announced that it has reached a settlement that will require Ecolab Inc. and Permian Mud Service Inc. to divest assets used by Permian’s subsidiary, Champion Technologies Inc., to provide production chemical management services in the U.S. Gulf of Mexico in order to proceed with their proposed merger. The department said that the transaction, as originally proposed, would combine two of the three leading providers of production chemical management services for deepwater wells in the U.S. Gulf of Mexico. Without the divestitures, the department said the transaction would lead to higher prices, reduced service quality and diminished innovation.
The department’s Antitrust Division filed a civil lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns and the lawsuit.
“Ecolab’s subsidiary, Nalco Company, and Champion are currently the largest and second-largest providers of production chemical management services to deepwater wells in the U.S. Gulf of Mexico and have vigorously competed against one another to the benefit of their customers,” said Leslie C. Overton, Deputy Assistant Attorney General of the Department of Justice’s Antitrust Division. “The proposed remedy will preserve competition to provide these critical services, which support efficient production of oil and gas in deepwater environments.”
Production chemical management services involve the application of specially formulated chemical solutions to oil and gas wells to facilitate hydrocarbon production and protect well infrastructure. These critical services are administered by experienced personnel including scientists, engineers and other lab technicians who customize the chemical blends and application methodology for specific well formations.
The department’s complaint alleges that the proposed acquisition would eliminate significant competition between Nalco and Champion in the already highly concentrated market for production chemical management services for deepwater wells in the U.S. Gulf of Mexico. The proposed settlement requires the companies to divest to Clariant Corporation and its affiliate, Clariant International, assets Champion has been using to provide deepwater production chemical management services in the Gulf, including the patent for Champion’s best-selling production chemical in the deepwater Gulf, exclusive licenses to all other production chemicals used by Champion in the U.S. Gulf of Mexico for use in that region, and the option to buy additional assets, including Champion’s deepwater production chemical blending and distribution facility in Broussard, La., and related equipment. The settlement also provides Clariant with an extensive right to hire the merged firm’s relevant personnel, who possess essential expertise and know-how.
Ecolab, headquartered in St. Paul, Minn., provides water treatment and sanitation products and services for a variety of industries, and began serving the oil and gas industry when it acquired Nalco in late 2011. Nalco supplies specialty chemicals and services to the upstream and downstream segments of the oil and gas industry. Ecolab generated $1.87 billion in revenues from oil and gas-related products and services in 2011.
Permian, headquartered in Houston, is a privately held company that provides specialty chemicals and services to the oil and gas industry. Permian generated $1.25 billion in revenues in 2011.
Clariant Corporation, headquartered in Charlotte, N.C., is the U.S. affiliate of Swiss-based Clariant International Ltd., the fourth largest provider of production chemical management services globally. Clariant has significant deepwater experience outside of the U.S. Gulf of Mexico.
As required by the Tunney Act, the proposed settlement and the department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to William H. Stallings, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth St. N.W., Suite 8000, Washington, D.C. 20530, 202-514-9323. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed settlement upon finding that it is in the public interest.
Justice Department Challenges Joint Contracting <br /> on Behalf of South Dakota ChiropractorsRead the Press Release
The U.S. Department of Justice announced today that it has reached a settlement with Chiropractic Associates Ltd. of South Dakota (CASD), an association comprising approximately 80 percent of all practicing chiropractors in South Dakota. The settlement prohibits CASD from jointly determining prices and negotiating contracts with insurers on behalf of competing chiropractors in South Dakota, North Dakota, Minnesota and Iowa. The department said that CASD negotiated at least seven contracts with insurers that set prices for chiropractic services on behalf of CASD’s members and that CASD’s conduct caused consumers to pay higher fees for chiropractic services.The department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of South Dakota against CASD. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the lawsuit.
“Chiropractic Associates Ltd. of South Dakota negotiated contracts on behalf of all its members, including competing providers, resulting in increased prices for chiropractic services in South Dakota,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Today’s settlement promotes competition among health care providers and prevents collective action that harms consumers and violates the antitrust laws.”
According to the complaint, since 1997, CASD collectively negotiated the rates and price-related terms for at least seven contracts with insurers on behalf of CASD’s members. Except for members who were part of the same practice groups, CASD’s members were not clinically or financially integrated, and CASD’s actions were not necessary to achieve any benefits for consumers.
The proposed settlement will prevent CASD from establishing prices or terms for chiropractic services and from negotiating with insurers on behalf of competing chiropractors. The proposed settlement will also require CASD to terminate its current payer contracts at various specified times, but in no event later than three months after the court's entry of the final judgment.
CASD is a company organized and doing business under the laws of the state of South Dakota, with its principal place of business in Brookings, S.D.The proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon finding that it serves the public interest.
Judge Sentences Child Porn Defendant to Prison, Takes Restitution for Victims Under AdvisementRead the Press Release
TOPEKA, KAN. – A federal court judge Monday sentenced a Brown County man to five years in federal prison for distributing child pornography and took under advisement claims for restitution from three victims totaling more than $2 million, U.S. Attorney Barry Grissom said today.
Prosecutors urged the judge to order restitution be paid to victims who said being sexually exploited as children had left them with permanent mental, emotional and psychological damage, as well as ongoing costs for therapy, and they continued to suffer from knowing that images of their being abused are widely distributed on the Internet. Defense attorneys argued that the defendant was only one of many users of peer-to-peer software who downloaded, viewed and distributed images of the victims. Prosecutors argued that victims have a right under federal law to restitution in child pornography cases. They cited more than 300 orders for restitution already made to the same victims, whose images were found on other defendants’ computers.
Brandon J. Hollister, 32, Horton, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he used peer-to-peer file sharing software to download and distribute images of child pornography. An FBI agent in Kansas City downloaded 33 image files and 37 video files from Hollister’s computer. Among those were images in which the victims previously had been identified, including the “Cindy series,” “the Jan-Feb series,” and the “Vicky series.” The victim in the “Cindy series” made a request for restitution of more than $1.2 million. The victim of the “Jan-Feb series” sought $150,000 in restitution. The victim of the “Vicky series” sought more than $734,000 in restitution.
Grissom commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Jeffrey Bryant Nichols Pleads Guilty to Embezzlement SchemeRead the Press Release
KNOXVILLE, Tenn.- On Apr. 4, 2013, Jeffrey Bryant Nichols, 54, of Loudon, Tenn., pleaded guilty to mail fraud and money laundering violations. Sentencing has been set for 9:30 a.m., Jun. 18, 2013 in U.S. District Court in Knoxville. He faces a maximum term of 20 years in prison for the mail fraud and 10 years in prison for the money laundering.
Nichols was employed with Architectural Graphics Incorporated (AGI) a Virginia Beach, Va., based company that designs and manufactures architectural interior and exterior sign systems in the United States. While working as a project manager, Nichols conspired with another employee to create a fictitious company known as Outdoor Graphic Displays. The company was created for the sole purpose of defrauding AGI, by creating fictitious subcontracting invoices and submitting them to AGI for payment. Between August 2005 and June 2007, 11 fictitious and fraudulent invoices, totaling $359,575.00, were submitted to AGI from Outdoor Graphic Displays.
On Feb. 22, 2012, a three-count indictment, including the above referenced charges, was returned against Nichols by a federal grand jury sitting in Knoxville Tennessee. This indictment was the result of an ongoing investigation by IRS-Criminal Investigation. Jennifer Kolman Assistant U.S. Attorney represented the United States.
Houston Man Gets 27 Years for Multiple Child Pornography ConvictionsRead the Press Release
HOUSTON – Guy Christopher Brogdon, 34, of Houston, has been sentenced to federal prison following two convictions of production of child pornography and another count of possession of child pornography, United States Attorney Kenneth Magidson announced today. The sentence was handed down on Friday, April 5, 2013, by U.S. District Judge Melinda Harmon.
On Dec. 20, 2012, Brogdon pleaded guilty. Today, Judge Harmon handed him a 27-year-term for the production counts and 10 years for the possession of child pornography, to be served concurrently. Upon release from prison, he will be on supervised release for 25 years and required to register as a sex offender.
The investigation revealed Brogdon took child pornography photographs of two very young girls for whom he was caring. Brogdon produced more than 200 images, though not all the child pornography involved the girls. Three of the victims’ relatives appeared and spoke at the sentencing, describing the effects Brogdon’s criminal acts have had. Brogdon was further ordered to pay restitution.
The Sugar Land Police Department and Houston FBI investigated.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Goff Sentenced to 36 Months in Prison for Obstruction of Justice; Filed Fictitious Forms as A Part of Effort to Impede JusticeRead the Press Release
SALT LAKE CITY – Harvey Douglas Goff, age 55, of Ogden, who pleaded guilty in federal court in December to obstruction of justice in connection with an effort to impede a proceeding in the United States Tax Court, will served 36 months in federal prison.
U.S. District Judge David Nuffer imposed the sentence during a hearing Monday afternoon in U.S. District Court. Goff also will serve 36 months of supervised release when he finishes his federal prison sentence and cannot have contact with sovereign citizen-related groups during his supervised release period. Goff has been in custody but was released Monday and will be allowed to self-surrender to the U.S. Bureau of Prisons to begin serving his sentence by May 30, 2013.
Goff, as a part of a plea agreement reached with federal prosecutors, admitted that between April and July of 2010 he endeavored to obstruct and influence the administration of justice in U.S. Tax Court. He admitted that he repeatedly filed false and fictitious forms in a national database. Those forms asserted that the judge had provided him with tens of millions of dollars in cash in “suspicious” transactions. He also admitted that he sent the judge copies of the forms he filed and that these efforts constituted obstruction of justice.
Goff was charged in a 14-count indictment returned by a federal grand jury in May 2011. Charges in the indictment included obstruction of justice, impeding internal revenue laws, fictitious obligations, attempt to commit mail fraud, and mailings in furtherance of a scheme and artifice to defraud. Ten counts of the indictment related to conduct that started with traffic stops in Ogden and continued through subsequent court proceedings in Weber County. Goff claimed diplomatic immunity during one of the traffic stops and challenged the jurisdiction of a state court judge, among other things.
Goff also filed a lien against various employees and entities of the State of Utah, Weber County, Ogden City, and the Ogden Police Department, falsely asserting that the employees and entities each owed Goff more than $53 trillion. The lien was filed on 77 parcels located within Weber County, including municipal property and private residences associated with the employees and entities.
Although the U.S. Attorney’s Office dismissed 13 counts of the indictment at Monday’s sentencing hearing, Goff’s 36-month sentence included consideration of that relevant conduct.
The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS Criminal Investigation and the FBI.
In another case involving false liens against government officials, Randy Merrill Huffaker, age 60, of Taylorsville, who pleaded guilty in December to one count of impeding the IRS and two counts of filing false liens or encumbrances against government officials, was sentenced to time served (about three days) in late March.
U. S. District Judge Clark Waddoups, who imposed the sentence, also ordered him to serve 12 months of supervised release when he concludes his prison sentence. Huffaker also must pay $33,996 in restitution.
Huffaker admitted that in July, August, and September of 2011, he filed or attempted to file false and fictitious liens or encumbrances against the Commissioner of the Internal Revenue Service and the Comptroller of the Currency, both of whom are government officials protected by federal law. He admitted that he filed the documents against the two individuals because of their performance of their official duties.
He admitted he repeatedly mailed extensive documents to the personal residence of the Commissioner regarding his tax debts, demanding action, and falsely claiming that the Commissioner was personally indebted to him. He admitted in court documents that he knew the liens and encumbrances were false and fictitious.
Charges against Tari A. Huffaker, age 56, of Taylorsville, who was also charged in the case, were dismissed by federal prosecutors in December.
The case was prosecuted by the U.S. Attorney’s Office and investigated by special agents of IRS Criminal Investigation and the Treasury Inspector General for Tax Administration.
Glenham Man Charged with Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Glenham, South Dakota man has been indicted by a federal grand jury.
Randall Murray, age 49, was indicted by a federal grand jury on March 13, 2013 for Distribution of a Controlled Substance. Murray appeared before U.S. Magistrate Judge William D. Gerdes on April 4, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; a mandatory 3 years up to life on supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charges are merely accusations, and Murray is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Murray was remanded to the custody of the U.S. Marshal Service until his warrant is satisfied. A trial date has been set for June 4, 2013.
Fraudster Found Guilty of Investment Fraud Scheme While Awaiting Sentencing on A Prior Securities Fraud ConvictionRead the Press Release
DALLAS — Joshua Wayne Bevill, 33, of Dallas, was found guilty today in a bench trial, before U.S. District Judge Jane J. Boyle, on stipulated facts concerning crimes he committed while awaiting sentencing for a prior securities fraud conviction. Specifically, Bevill was adjudged guilty on one count of mail fraud, two counts of securities fraud and one count of wire fraud, and committing each offense while on release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Background: Between 2005 and 2008, Bevill, along with various associates, raised several million dollars from investors by selling them interests in supposed oil and gas development projects. However, Bevill was simply stealing the investors’ money rather than using it to earn profits in the oil and gas business. Bevill pleaded guilty to one count of securities fraud in January 2011, admitting that he defrauded numerous investors of more than $750,000. He was released pending sentencing and faces a maximum statutory penalty of five years for this offense.
While on this release and pending sentencing in that case, Bevill perpetrated a similar scheme from August 2010 until February 2011 under the name of Progressive Investment Partners. Bevill contacted potential investors and sold them investments in a supposed oil and gas business. As part of his scheme, Bevill used fictitious references that were set up to provide “glowing” reviews and exemplify the merits of investing with Progressive Investment Partners. Bevill, however, simply stole investors’ money and spent it to pay for his lavish lifestyle.
Bevill faces a maximum statutory penalty of 30 years in federal prison for each of the four counts of conviction in this case and fines totaling $10,500,000.00. In addition, he will be required to forfeit $162,000. No sentencing date has been set in either of the cases.
These cases were prosecuted 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. Attorney’s 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.
The FBI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch and Joseph Revesz are in charge of the prosecution.
Francisco S. Pangelinan Sentenced in U.S. District CourtRead the Press Release
ALICIA A. G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced today that defendant Francisco S. Pangelinan was sentenced in the U.S. District Court for the Northern Mariana Islands, to time served, followed by a three-year term of supervised release with conditions that he not possess a firearm and to perform 100 hours of community service. The defendant was ordered to serve an additional six (6) months ofhouse arrest on top of the eight (8) months house arrest he had already completed. Pangelinan' s sentence was the result of a Plea Agreement filed January 18, 2012, for Deprivation of Rights Under Color ofLaw. The conviction stemmed from a three-count indictment which charged Pangelinan with Deprivation of Rights Under Color ofLaw, in violation of Title 18, United States Code, Section 242. On July 26,2010, then a police officer, Pangelinan, unlawfully sprayed Felipe Kalen with DPS issued, Oleoresin Capsicum. At sentencing, Pangelinan apologized for his behavior to Felipe Kalen and acknowledged that he exceeded the force needed to deal with an ongoing argument at that time. Felipe Kalen accepted this apology and stated in court that he forgave the defendant. Pangelinan is no longer employed by the CNMI Department of Public Safety.
The case was investigated by agents from the Federal Bureau of lnvestigation and was prosecuted by Assistant United States Attorney Frederick A. Black.
Founder and President of Labor Union Sentenced to 76 Months<br /> for Stealing from Union’s Treasury and Pension FundRead the Press Release
The founder and president of the National Association of Special Police and Security Officers (NASPSO) was sentenced to 76 months in prison today for stealing union treasury and pension funds, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Caleb Gray-Burriss, 62, of Washington, D.C., was convicted on Dec. 4, 2012, of six counts of mail fraud, seven counts of theft from a labor organization, one count each of obstruction of justice and criminal contempt, and three counts of union recordkeeping offenses. Gray-Burriss was sentenced by U.S. District Judge Richard W. Roberts of the District of Columbia and ordered to pay $252,000 in restitution and to perform 100 hours of community service. Because of these convictions Gray-Burris is also now disqualified by federal law from serving as an officer or being employed by a labor union or employee benefit plan until 13 years following his release from prison.
NASPSO represents private security guards assigned to protect federal buildings in the metro Washington area. According to the evidence at trial, from approximately June 2004 through February 2011, Gray-Burriss wrote numerous checks to himself or to other third parties from the NASPSO pension plan checking account. Gray-Burriss spent more than $100,000 of the pension plan funds in this way, while falsely maintaining it was an operational fund that he was properly administering and that was providing benefits to the beneficiaries. The evidence further showed that Gray-Burriss committed criminal contempt of a court order addressing his prior misappropriation of pension and health plan funds after Gray-Burriss resumed his scheme in 2009 to defraud employers and NASPSO members of pension funds.
In addition, the evidence presented at trial showed that Gray-Burriss, while an officer and employee of NASPSO, stole over $150,000 in NASPSO funds consisting of cash withdrawals to himself, unauthorized salary increases and bonuses to himself and another person, fraudulently drawn checks to himself – purportedly for employment taxes on behalf of NASPSO – and unlawfully used NASPSO funds to pay his personal fines in a civil lawsuit.
The jury also found that Gray-Burriss committed obstruction of justice by destroying or concealing NASPSO financial records during a grand jury investigation; failing to file required annual reports on behalf of NASPSO, falsifying those reports, and failing to maintain properly the records of NASPSO.
The investigation was conducted by agents and investigators of the U.S. Department of Labor. Trial Attorney Vincent J. Falvo of the Criminal Division’s Organized Crime and Gang Section and Trial Attorney Tracee Plowell, of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Los Angeles Man Sentenced to 17 Years in Prison for Role in Plot to Attack Seattle Military Processing CenterRead the Press Release
SEATTLE – A former Los Angeles resident was sentenced today to 17 years in prison in connection with the June 2011 plot to attack a military installation in Seattle, U.S. Attorney Jenny A. Durkan announced. Walli Mujahidh, 34, pleaded guilty in December 2011 to conspiracy to murder officers and agents of the United States and conspiracy to use weapons of mass destruction and being a felon in possession of a firearm. Mujahidh plotted with lead defendant Abu Khalid Abdul-Latif of Seattle in a plan to use grenades and machine guns to attack recruits at the Military Entrance Processing Center in a federal office complex in south Seattle. U.S. District Judge James L. Robart imposed 10 years of supervised release following the prison term.
“This defendant was a cold hearted, enthusiastic partner in this murderous scheme. He talked at length in recorded conversations about the innocent people he planned to gun down,” said U.S. Attorney Jenny A. Durkan. “Even after his arrest he boldly tried to justify his plot. I am thankful this plot was disrupted, and again thank the FBI and Seattle Police Department.”
The other defendant in the case, Abu Khalid Abdul-Latif, of Seattle, was sentenced to 18 years in prison last month.
Law enforcement first became aware of the plot when a citizen alerted them that he/she had been approached by Abdul-Latif about participating in the attack and supplying firearms to the conspirators. The person then agreed to work with law enforcement, which began monitoring Abdul-Latif and Mujahidh. Beginning in early June 2011, the conspirators were captured on audio and videotape discussing a violent assault on the Military Entrance Processing Station (MEPS). The MEPS is where each branch of the military screens and processes enlistees. In addition to housing many civilian and military employees, the building houses a federal daycare center.
In his plea agreement, Mujahidh admitted that he agreed to carry out the planned attack and that he traveled to Seattle from Los Angeles to participate in the attack. Mujahidh arrived in Seattle on June 21, 2011. On that same day, during a meeting between Abdul-Latif, Mujahidh, and a person who was working with law enforcement, Abdul-Latif outlined the plan of attacking the MEPS with machine guns and grenades, and took steps to purchase weapons and further the plot. In accordance with the defendants’ plan, the next day the person working with police brought three machine guns to a meeting with Abdul-Latif and Mujahidh. The men were arrested after they took possession of the weapons, which had been rendered inoperable by law enforcement.
In their sentencing memo, prosecutors describe multiple times where Mujahidh described his enthusiasm for the attack and his terrorist motivations. “During the planning sessions for the attack, Mujahidh made clear that he was eager to kill his intended victims, and as many as possible. He made numerous statements along these lines while he and Abdul-Latif planned out the play-by-play movements of the attackers using the map of the Federal Center South building,” prosecutors wrote in their sentencing memo.
The case was prosecuted by the U.S. Attorney’s Office for the Western District of Washington, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. The investigation is being conducted by the FBI’s Joint Terrorism Task Force, which has investigators from federal, state and local law enforcement, and the Seattle Police Department. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) contributed significant expertise to this investigation.
Former Garland High School Teacher Sentenced to Eight Years in Federal Prison for Possessing Child PornographyRead the Press Release
Willis Bassham Videotaped Himself Having Sexual Relations With a Student at the School
DALLAS — A former teacher at Garland High School, Willis Bassham, 40, formerly of McKinney, Texas, was sentenced Friday afternoon by U.S. District Judge Barbara M. G. Lynn to eight years in federal prison and a lifetime of supervised release following his guilty plea in December 2012 to an information charging one count of possession of child pornography. Bassham was remanded into federal custody after he entered that plea. 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, Basham admitted that he engaged in sexual acts and sexual conduct with three female minors who were students at the school where he was employed. He also admitted that he produced images and videos of two of the minors engaged in sexually explicit conduct. Bassham had videos on his cell phone of himself and one of the minors, then age 17, engaging in sexually explicit conduct. He also received pornographic images of one of the minors by copying the images from the minor’s cell phone memory card to his computer.
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 U.S. Attorneys’ Offices and the 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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department. Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.
Former Federal Fugitive Pleads Guilty in California to Massive Fraud and Identity Theft Scheme in Connection with Nationwide Foreclosure ScamRead the Press Release
A former Los Angeles resident, who fled to Canada and was a federal fugitive for 12 years, pleaded guilty today to aggravated identity theft and bankruptcy fraud in connection with leading a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Central District of California André Birotte Jr., U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Glen Alan Ward, 48, pleaded guilty in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 to 61 months in custody for engaging in similar conduct.On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
“Glen Alan Ward spent years preying on distressed homeowners and stealing the identities of bankruptcy debtors, all to pad his own pockets,” said Acting Assistant Attorney General Raman. “Now he faces years in prison for his crimes. This successful prosecution illustrates our commitment to tirelessly pursuing fraudsters and ensuring that sophisticated schemes that prey on vulnerable homeowners will not go unpunished.”
“Mr. Ward fled the United States years ago in an attempt to keep his fraudulent foreclosure scheme running,” said United States Attorney André Birotte Jr. “Today's conviction should serve as a reminder that criminals can run, but they can't hide. The reach of the federal law is long and scammers like Ward, who try to take advantage of distressed homeowners, will be tracked down and prosecuted regardless of their efforts to do otherwise.”
According to the plea agreement filed today before U.S. District Judge Dale S. Fischer in the Central District of California, Ward admitted to engaging in a fraud scheme that took place from 1997 to April 5, 2012, the day he was arrested by Canadian authorities. According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting more than $1.2 million from his clients who paid for his illegal foreclosure-delay services, all of which he has agreed to forfeit.
“Today's announcement is the result of a collaborative international effort and the FBI is grateful to our partners with the Royal Canadian Mounted Police and the Waterloo Regional Police for their assistance in the fugitive investigation and apprehension,” said Bill Lewis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Mr. Ward's long-term scheme is an extreme example of calculated fraud based on greed, and I'm proud of the persistence shown by our federal partners at SIGTARP, the Office of United States Trustees, and the United States Attorney's Office, in pursuing this case to its successful end."
“We are committed to pursuing those who defraud the most vulnerable victims of the real estate market,” said FBI San Francisco Special Agent in Charge David J. Johnson. “This is an excellent example of how closely we work with our law enforcement partners here and abroad to ensure that criminals are brought to justice.”
“With today’s plea, justice is served for the victims of Ward’s long-running bankruptcy fraud scheme,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “While on the run for 12 years and having fled to Canada to avoid answering for earlier charges of bankruptcy fraud, Ward continued to victimize hundreds of struggling homeowners, steal the identities of unsuspecting U.S. taxpayers involved in bankruptcy proceedings, and exploit civil protections under bankruptcy law to defraud lenders, including numerous TARP recipients. SIGTARP and our law enforcement partners will continue to ensure that those responsible for fraud related to TARP are brought to justice and answer for their crimes.”
Each count of bankruptcy fraud carries a maximum sentence of five years in prison. Aggravated identity theft carries a two-year mandatory sentence, to run consecutive to any other sentence. Ward will be sentenced on July 29, 2013 before United States District Judge Dale S. Fischer, and will continue to be held without bond.
This case is being prosecuted by Trial Attorney Paul Rosen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas. The investigation was conducted by SIGTARP and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Bank Teller Pleads Guilty to Aggravated Identity TheftRead the Press Release
Jackson, Miss. -- Kelly Taplin, 31, of Byram, Mississippi, pled guilty in federal court today to aggravated identity theft, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced. She will be sentenced by U.S. District Judge Henry T. Wingate on July 11, 2013, at 9:30 a.m. and faces a mandatory penalty of two years in prison and a maximum possible fine of $250,000.
Taplin admitted that, while working as a teller at Trustmark National Bank in Byram, she used the name, social security number, and date of birth of a Trustmark customer to obtain a $2,550 loan in that customer’s name without the customer’s knowledge or consent. She then used the loan proceeds for her personal benefit.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Five Members of Sandusky Family IndictedRead the Press Release
Five members of a Sandusky family were charged in a three-count indictment related to skimming more than $1.8 million in cash from three restaurants the family operates in the Sandusky area and depositing the cash at numerous financial institutions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Haralambos Gonos, age 52; Andreas Gonos, age 28; Chris Gonos, age 31; Kryiakos Gonos, age 30, and Sofia Skoura, age 52.
In count one – conspiracy to structure financial transactions to evade filing currency transaction reports -- Haralambos Gonos, Andreas Gonos, Chris Gonos, and Kryiakos Gonos are accused of taking large amounts of cash from Dianna’s Deli, Dianna’s and The Depot and making multiple deposits of cash just under the $10,000 threshold, for the purpose of evading the filing of a Currency Transaction Report. The conduct took place between 2007 and 2009, according to the indictment.
Count two charges that Haralambos Gonos and an unindicted co-conspirator conspired to structure financial transactions to evade filing Form 8300 between March 2010 and November 2011. Specifically, Gonos purchased a 2007 Mercedes and 2005 Porsche Cayenne motor vehicles by using combinations of cash and multiple cashier’s checks, according to the indictment.
Count three charges Haralambos Gonos and Sofia Skoura conspiring to engage in bulk cash smuggling in an attempt to transport currency to a place outside the United States on or about January 31, 2013. Specifically, they are accused of attempting to transport more than $14,700 to Greece, where they maintain a residence, according to the indictment.
"These defendants are accused of avoiding bank regulations," Dettelbach said.
“It is IRS-CI’s responsibility when investigating financial institution fraud to focus on the flow of the money which ultimately leads us to the beneficiaries of this illegal activity,” said Denise Rocawich, Acting Special Agent in Charge, IRS Criminal Investigation.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Internal Revenue Service, Toledo, Ohio the Department of Homeland Security, Dearborn, Michigan, , ICE Homeland Security Investigations, Detroit, Michigan, and the U.S. Customs and Border Protection, Detroit, Michigan. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fargo Man Sentenced on Child Pornography ChargesRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 8, 2013, Brandon Lee Stockburger of Fargo, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on three counts of possession of materials involving the sexual exploitation of minors and one count of receipt of materials involving the sexual exploitation of minors. Stockburger, 26, pleaded guilty to the charges on Jan. 14, 2013.
Judge Erickson sentenced Stockburger to nine and one-half years in prison to be followed by a lifetime of supervised release. Stockburger was ordered register as a sex offender and to pay a $400 special assessment to the Crime Victim's Fund.
The case came to the attention of law enforcement after a North Dakota Bureau of Criminal Investigation agent located child pornography files which had been offered to be shared by an internet protocol (IP) address originating in Fargo, N.D. The IP address was assigned to Stockburger’s residence which was eventually searched by law enforcement pursuant to a state search warrant.
During the search, state and federal agents recovered numerous electronic media containing approximately 156 videos and 2,328 images depicting the graphic sexual abuse of children, including images depicting prepubescent children.The incidents occurred from 2007 through April 2012, in the District of North Dakota.
The case was investigated by the North Dakota Bureau of Criminal Investigation, Fargo Police Department, and Homeland Security Investigations.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was brought as a 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.Fairfax County Man Pleads Guilty to Producing Child Pornography and Attempted Enticement of A MinorRead the Press Release
ALEXANDRIA, Va. – Douglas Lee Payne Jr., 31, of Fairfax County, Va., pleaded guilty today to three child exploitation related charges.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Lt. Colonel James A. Morris, Acting Fairfax County Chief of Police made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.
Payne pleaded guilty to two counts of production of child pornography, which each carries a mandatory minimum penalty of 25 years and a maximum penalty of 50 years in prison. This sentence has been enhanced due to a prior conviction of using a computer to solicit a minor in Fairfax County. Payne also pleaded guilty to one count of attempted enticement of a minor, which carries a mandatory minimum of 10 years and a maximum of life in prison. Sentencing is scheduled for July 5, 2013.
According to court documents, during the investigation of a Fairfax County probation violation in December 2011, electronic communications between Payne and a minor victim in Indiana and another minor victim in Pennsylvania were discovered. In these text messages and online chats, Payne requested that the minor victims send him nude images of themselves. Payne also instructed the minor females on how to pose in various sexually revealing positions. Payne possessed at least one child pornography image of each minor victim which they had sent in response to his request. Payne and the minor victim located in Indiana also had specific conversations about Payne going to Indiana and having sex with her there. On December 28, 2011, while Payne was on his way to Indiana, he was instructed to return home for a meeting with his Fairfax County probation officer.
This case was investigated by the Fairfax County Police Department and the FBI Washington Field Office’s Child Exploitation Task Force. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.Eight People Indicted for Drug ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that eight individuals have been indicted by a federal grand jury for Conspiracy to Distribute Controlled Substances in South Dakota between 1993 and 2013. The individuals charged include the following:
• Marlena Jo Pond, age 27, Pine Ridge
• Harry John Steele, age 26, Pine Ridge
• Karen Faith Boltz, age 48, Wounded Knee
• Edward Joseph White Dress, Jr., age 45, Wounded Knee
•Brian O. Little Bear, age 26, Pine Ridge
• Tonya Lynn Provost, age 38, Pine Ridge
• James Albert Colhoff, age 43, Pine Ridge
• Gabriel Carl White Plume, age 28, Manderson
All defendants were indicted on March 19, 2013 for conspiracy to distribute cocaine and marihuana. The defendants listed above appeared before U.S. Magistrate Judge Veronica L. Duffy, on March 28, 2013 and pled not guilty to the indictment. The penalty upon conviction is not less than 5 years of imprisonment and up to 40 years of imprisonment and/or $5,000,000 fine. The charges are merely accusations and each individual is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force which is comprised of the following agencies: Federal Bureau of Investigation, Division of Criminal Investigation, Bureau of Indian Affairs Office of Justice Services, Oglala Sioux Tribe Department of Public Safety, Fall River County Sheriff’s Office, and Fall River State’s Attorney’s Office. Homeland Security Investigations also assisted with the investigation. Special Assistant U.S. Attorney Laura Shattuck is prosecuting the case.
Boltz and White Dress, Jr. were released on bond pending trial. Pond, Steele, Provost, Little Bear, Colhoff, and White Plume were remanded to the custody of the U.S. Marshal. A trial date has not been set.
Ebay Fraudster Sentenced for Fencing Stolen PropertyRead the Press Release
Hill Made Millions Reselling Stolen Merchandise Acquired From Identity Thieves
ATLANTA – Robert A. Hill was sentenced today to serve over seven years in federal prison for selling over $9 million in stolen property from his eBay store and shipping the goods across state lines to his customers.
“Robert Hill fueled his Internet-based fraud with the help of a group of identity thieves who gave him a steady supply of merchandise,” said United States Attorney Sally Quillian Yates. “His use of the Internet expanded his reach and magnified the crime, ending in millions of dollars of damage to both individual victims and retailers. Today’s prison sentence does justice for the widespread damage he caused.”
“The defendant’s criminal actions reflect how advancements in digital technology can also have a negative effect on our communities. The Secret Service, in conjunction with our law enforcement partners, will continue to actively investigate and arrest those that commit crimes that prey on unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“This case demonstrates the ever-increasing need for law abiding citizens to remain vigilant about their personal identifying information and credit profiles,” said Cherokee County Sheriff Roger Garrison. “The ongoing increase of identity related crimes is concerning and troubling both to the economy and the criminal justice system. The Cherokee Sheriff’s Office is proud to see justice on behalf of the many victims in this case.”
According to United States Attorney Yates, the charges and other information presented in court: For over ten years through December 2011, Hill operated a scheme out of Roswell, Ga. that involved shipping stolen merchandise across state lines. Hill had an eBay store called atlantis_discount_ warehouse_llc, where he sold the merchandise online to buyers from across the United States. To get merchandise for sale, Hill worked with a group of identity thieves who used fraudulent credit cards opened in the names of numerous identity theft victims to buy expensive items, such as iPads, iPods, iPhones, computers, Wii game systems, cameras, golf clubs, and tools, from large retail stores. These co-conspirators used fake drivers’ licenses to apply for new credit cards and take over existing accounts at the stores. They targeted accounts at Best Buy, Sam’s Club, Home Depot, Lowe’s, Walmart, Target, and Dick’s Sporting Goods.
Hill then bought the items from his co-conspirators for about 60% of their retail value, knowing that the merchandise had been stolen and obtained by fraud. He sometimes gave the thieves lists of items that he needed for his eBay store. Hill stored the merchandise at a storage facility in Alpharetta, Ga. He sold it at just under retail value to buyers from around the United States. As part of the scheme, he shipped items to buyers in numerous states, including California, New York, Florida, New Hampshire, Indiana, Maryland, Colorado, North Carolina, Michigan, Illinois, Washington, Virginia, Utah, and Maine.
During the course of the scheme, Hill sold millions of dollars’ worth of stolen merchandise through his eBay store. Search warrants executed at his residence and storage facility uncovered over $44,000 in cash and a large quantity of high-value electronic equipment in boxes ready for sale.
Hill, 51, now of Swainsboro, Ga., was sentenced today by United States District Judge Richard W. Story to serve seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $740,446.58. In a parallel civil action, Judge Amy Totenberg also ordered the forfeiture of over $44,000 in cash, two bank accounts with over $47,000, a 1999 Lexus RS 300, and thousands of dollars’ worth of electronics equipment and jewelry. Hill was convicted of these charges on December 19, 2012, after pleading guilty.
This case was investigated by Special Agents of the United States Secret Service and Investigators with the Cherokee County Sheriff’s Office.
Assistant United States Attorneys Stephen H. McClain and Jeffrey Viscomi prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Easthampton Man Convicted of Drug ConspiracyRead the Press Release
BOSTON – An Easthampton man was convicted today in U.S. District Court in Springfield of distributing more than 500 grams of cocaine.
Julio Vidal Hermida, 26, formerly of Easthampton, pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiring to possess with intent to distribute and distribution of more than 500 grams of cocaine.
Between July 31, 2010, and May 2, 2011, Hermida and others participated in a criminal conspiracy that transported kilograms of cocaine from Texas to western Massachusetts.
Sentencing is scheduled for July 2, 2013. The statutory maximum penalty is up to 40 years in prison, followed by four years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration Boston Field Division, and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
Doctor Convicted in New York Medicare Fraud SchemeRead the Press Release
After an eight-week trial, a jury in Brooklyn, N.Y. today convicted Gustave Drivas, M.D., for his role at a clinic that engaged in a $77 million Medicare fraud scheme, announced the Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of New York Loretta Lynch, Assistant Director-in-Charge Janice K. Fedarcyk of the FBI’s New York field office and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
Dr. Gustave Drivas, 50, of Staten Island, N.Y., was convicted today of health care fraud conspiracy and health care fraud. He was acquitted of kickback conspiracy.
The trial evidence showed that Drivas, a medical doctor licensed in the state of New York, worked for a clinic in Brooklyn that operated under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC (the Bay Medical clinic). Owners, operators and employees of the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary and never provided. The clinic billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests. The evidence at trial demonstrated that Drivas was a “no show” doctor, yet his Medicare billing number was used to bill more than $20 million to the Medicare program, of which more than $12 million was paid. Drivas signed numerous clinic applications to Medicare, was a signatory on two clinic bank accounts that received the ill-gotten Medicare money and was listed on bank paperwork as the president of Bay Medical.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, identified in the complaint as the “Kickback Room,” in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. The Kickback Room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
To generate the large amounts of cash needed to pay the patients, the conspirators used a network of external money launderers. The owners/operators of the clinic wrote clinic checks to numerous shell companies that were controlled by money launderers. These checks did not represent payment for any legitimate service at or for the Bay Medical clinics, but rather were written to launder the Bay Medical clinics’ fraudulently obtained Medicare proceeds. Two of the external money launderers, Anatoly Kraiter and Larisa Shelabadova, pleaded guilty prior to trial. Irina Shelikhova and her son Maksim Shelikhov, who directed the money laundering operation from inside the clinic, also pleaded guilty prior to trial to conspiracy to commit money laundering.
At sentencing before U.S. District Judge Nina Gershon of the Eastern District of New York, scheduled for July 9, 2013, Drivas faces a maximum penalty of 20 years in prison. Drivas faces mandatory restitution to be paid jointly and severally with his co-defendants of up to $50 million, and a fine of up to $100 million.
The charges were announced by the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Assistant Director-in-Charge Janice K. Fedarcyk of the FBI’s New York field office; and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
The case is being prosecuted by Assistant U.S. Attorneys William C. Campos , Shannon C. Jones and Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS.
In total, 16 individuals were charged in the Bay Medical scheme, including two doctors, nine clinic owners/operators/employees and five external money launderers. Prior to trial, twelve defendants pleaded guilty. At trial, Alexander Zaretser, 32, of Brooklyn, New York was acquitted of money laundering conspiracy and two substantive counts of money laundering; and Vladimir Kornev, 53, and Yelena Galper, 40, both of Brooklyn, New York were acquitted of money laundering conspiracy.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
District Court Enters Permanent Injunction Against Houston-Based Producer of Egg Rolls and Other FoodsRead the Press Release
U.S. District Court Judge Melinda Harmon entered an order of permanent injunction against Chung’s Products LP, a Houston-based producer of egg rolls and other foods, Charlie A. Kujawa, Chung’s president of operations, and Gregory S. Birdsell, Chung’s former director of quality assurance, the Justice Department announced today.
The permanent injunction was issued by the district court along with the court’s opinion and order granting the United States’ motion for summary judgment against the defendants for violating the Federal Food, Drug and Cosmetic Act. Chung’s products are sold in grocery stores and large retail stores nationwide.
As set forth in the complaint filed by the United States on March 8, 2010, the Food and Drug Administration (FDA) conducted inspections from 2005 through 2009 at Chung’s facility located in Houston. According to the complaint, the defendants, among other things, violated the Food, Drug and Cosmetic Act by preparing, packing and holding shrimp egg rolls under insanitary conditions, whereby they may have become contaminated with filth and rendered injurious to health.
In a decision entered on April 4, 2013, Judge Harmon found that the defendants had a long history of violating the Food, Drug and Cosmetic Act, including producing food under insanitary conditions and failing to control for the risks of Clostridium Botulinum, “the most potent toxin known to man,” in their seafood products and a potentially deadly strain of listeria in their manufacturing environment. The court also noted defendants’ numerous refusals to cooperate with the FDA. Based on the evidence before it, the Court concluded there is a reasonable possibility that Chung’s food products were both contaminated with filth and unsafe and injurious to health. The court further found that the defendants’ challenges to FDA testing methods were “frivolous” and “demonstrated [a] wanton disregard of a potential food safety hazard in [Chung’s] products.”
“We will continue to take strong action against those who would risk the safety of the American food supply by manufacturing and storing products under insanitary conditions or flouting important food safety rules,” said Acting Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division. “The Court’s ruling ensures that these defendants will take appropriate steps to ensure that consumers who purchase their foods will receive products that are prepared, packaged and held under sanitary conditions as required by law.”
Pursuant to the injunction issued by the Court, defendants are enjoined from receiving, processing, preparing, packing, holding and distributing food from Chung’s Houston-based facility or any other facility until defendants take the remedial action required by the Court’s order.
Principal Deputy Assistant Attorney General Delery thanked the FDA for referring this matter to the Department of Justice. David Sullivan, Trial Attorney at the Consumer Protection Branch of the Justice Department, in conjunction with Assistant U.S. Attorney Jose Vela Jr. in the Southern District of Texas and Sonia Nath, Associate Chief Counsel for Enforcement at FDA’s Office of the Chief Counsel, brought this case on behalf of the United States.
Update, April 10, 2013
On April 9, 2013, U.S. District Court Judge Melinda Harmon modified a paragraph of the injunction issued on April 4, 2013. The modification enjoins defendants from receiving, processing, preparing, packing, holding and distributing any fish or fishery products from Chung’s Houston-based facility or any other facility until defendants take the remedial action required by the court’s order.
Defendant Convicted of Heroin Trafficking & Illegal Re Entry Sentenced to 17.5 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Jose Lizarraras-Chacon, 38, of Nayarit, Mexico, was sentenced today by U.S. District Judge Marco A. Hernandez to 210 months (17.5 years) in prison for heroin-trafficking and illegal reentry. During the fall of 2011, the Portland Police Bureau received information regarding a husband and wife team selling large quantities of heroin. Defendant and his wife, Maria Gonzalez-Torres. (co-defendant) fielded phone call orders from customers for heroin, and then would make deliveries throughout the Portland metro area, often accompanied by their children. Earlier in 2011, the St. Helens Police Department investigated this same husband-wife team, and that evidence was charged in the federal indictment as part of the yearlong conspiracy to distribute heroin.
On November 29, 2011, officers with the Portland Police Bureau’s Drugs and Vice Division (DVD) arranged for a controlled purchase of heroin from this duo. Co-defendant Gonzalez-Torres answered the call, made the deal, and indicated they would be on their way to deliver shortly. Surveillance officers observed defendant leave their apartment carrying a baby in a car seat and enter one of the family vehicles. Gonzalez-Torres followed her husband into their vehicle, along with two other children (ages 7 and 4). Officers stopped the car as it was traveling towards the agreed-upon delivery location.
During the traffic stop, a female officer conducted a pat-down search of Gonzalez-Torres and located approximately five ounces of heroin concealed in her bra. There was also over $300 in the diaper bag. Officers conducted a search of the family’s apartment on East Burnside at 179th, and seized over $84,000 in U.S. currency stashed all over the residence. Agents also seized approximately 470 grams of heroin hidden within a diaper genie and a .45 caliber semi-automatic firearm in a hall closet. Gonzalez-Torres admitted that she had been involved in her husband’s heroin business and had not held legitimate employment for four years. She explained that she received $1100 per month in public benefits. When asked about all the cash in her apartment, she said that she and her husband were saving money to build a home in Mexico.
In 2010, defendant was convicted of unlawful delivery of heroin in Clackamas County, after which he was deported to Mexico. He returned to the United States illegally, and continued to distribute heroin. This case was investigated by the Portland Police Bureau, the St. Helen’s Police Department, the DEA, and the U.S. Department of Agriculture Office of Inspector General. The case was prosecuted by Assistant U. S. Attorney Leah K. Bolstad.
Convicted Drug Dealer Sentenced to 21 Months in Prison for Violating Supervised ReleaseRead the Press Release
PHILADELPHIA - Edward Montgomery, also known as “One-Eye Eddie,” 35, of Philadelphia, Pennsylvania, was sentenced today by the Honorable Gene E.K. Pratter to 21 months in prison followed by 39 months of supervised release for violating the terms of a previously imposed term of supervised release.
On July 20, 2009, Montgomery was sentenced to 60 months in prison followed by 4 years of supervised release by the Honorable Christopher C. Connor of the United States District Court for the Middle District of Pennsylvania for trafficking crack cocaine in Lewiston, Pennsylvania. Montgomery was released from federal prison on August 3, 2012.
On August 25, 2012, only three weeks after being released from prison, Montgomery fired into a group of young men sitting on the steps of a vacant house in the 1200 block of North Hollywood Street. Montgomery hit two people in what was apparently a drug-related shooting. One of the victims had a drug trafficking case pending in state court. In addition to being charged by the state for this offense, Montgomery’s federal probation officer filed a notice that this conduct violated the terms of Montgomery’s supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Robert J. Livermore.
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PATTY HARTMAN, Media Contact, 215-861-8525Connecticut Resident Sentenced in Manhattan Federal Court to Five Years in Prison for Manufacturing and Distributing Explosives and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that NICOHLAS LAHINES was sentenced today in Manhattan federal court to five years in prison for manufacturing and dealing in explosives and firearms without licenses, conspiring to distribute methamphetamine, and immigration fraud. LAHINES pled guilty in February 2012, and was sentenced today by U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Preet Bharara stated: “It is bone-chilling to contemplate the damage that the improvised explosive devices Nicholas Lahines manufactured in his Connecticut home could have caused had he not been caught by law enforcement. These devices had the capacity to maim and kill many innocent people, and now he will serve a significant sentence for his crimes.”
According to the Complaint, the Indictment, the Information to which LAHINES pled guilty, the plea agreement, and statements made in Court:
During the spring of 2011, law enforcement officers came to suspect that an individual, later identified as LAHINES, was involved in the distribution of explosive devices, and they directed a confidential source (“CS”) to meet with him. After selling four cylindrical explosive devices to the CS for $3,200, LAHINES was arrested in the Bronx on May 19, 2011. During the sale of the devices, LAHINES discussed with the CS the components that he had used to make them – including ball bearings – and told the CS that he had added glass and metal to similar explosive devices in the past. LAHINES was then placed under arrest, and bomb technicians immediately took custody of the devices, which were determined to be live explosives.
Pursuant to a search warrant executed at LAHINES’s Connecticut residence, agents recovered tubes, cord-like material, and caps similar in appearance to those used to construct the devices that LAHINES sold to the CS. Agents also found a small jar containing powdery residue that detonated in the course of being examined, injuring a law enforcement officer.
In addition to his criminal activity relating to the manufacture and distribution of explosives, LAHINES participated in a conspiracy to distribute methamphetamine. In the course of their search, law enforcement officers found various items that are used in the illegal manufacture and distribution of methamphetamine, including hundreds of ephedrine tablets, in the trunk of his car.
LAHINES had also engaged in immigration fraud. Specifically, he filed false documents and other materials with the United States Department of Homeland Security, U.S. Citizenship and Immigration Service concerning his marriage.
In addition to his prison term, LAHINES, 38, of Bridgeport, Connecticut, was sentenced to four years of supervised release and ordered to forfeit $3,200. He was also ordered to pay a $400 special assessment fee.
Mr. Bharara praised the investigative efforts of the FBI’s Joint Terrorism Task Force (“JTTF”) in New York and Connecticut, especially those JTTF members from the FBI New York Field Office and the New York City Police Department, the Bronx District Attorney’s Office, the Connecticut State Police Department, the FBI New Haven Field Office, the trial attorneys with the U.S. Department of Justice’s National Security Division, and the U.S. Attorney's Office for the District of Connecticut. He also thanked Kimberly Mertz, the FBI Special Agent-in-Charge of the New Haven Field Office.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys John P. Cronan and Sean S. Buckley are in charge of the prosecution.
Company Owner Pleads Guilty to Failing to Pay TaxesRead the Press Release
Baltimore, Maryland – Jonas Purisch, age 39, of Perry Hall, Maryland pleaded guilty today to subscribing to a false tax return and failing to file a tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, Purisch owned and operated JP Staffing, Inc., a company based in Baltimore which provided temporary factory workers. JP Staffing paid its employees in cash. Purisch earned significant amounts of revenue from his operation of the business. In order to avoid paying income taxes, Purisch deposited his income from the business into one of his two personal bank accounts.
In the years 2006 and 2007, Purisch filed individual federal income tax returns which understated his income. Purisch falsely stated in his 2006 tax return that his income was $52,870, when in fact he deposited $276,572 of income into his personal bank accounts. Purisch’s unpaid personal income tax for 2006 was $17,851. Purisch falsely stated on his 2007 tax return that his income was $4,000, when in fact he earned $375,158, resulting in personal income tax liability of $48,410 for 2007.
Purisch deposited $457,499 of income into his personal bank accounts in 2008, and deposited $280,426 in 2009, but never filed a 2008 or 2009 tax return. Purisch’s unpaid personal income tax was $73,836 in 2008, and $41,100 in 2009.
The total tax loss in this case including interest on unpaid taxes is $210,019.04.
Purisch faces a maximum sentence of three years in prison and a fine of $250,000 for subscribing to a false tax return, and one year in prison and $100,000 fine for failing to file a tax return. Purisch will be required to pay restitution of $210,019.04 to the IRS, including interest. U.S. District Judge James K. Bredar scheduled sentencing for June 24, 2013, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Peter M. Nothstein, who is prosecuting the case.
Colorado Man Pleads Guilty to LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that Scott Stewart, age 19, of Colorado Springs, Colorado, appeared before U.S. Magistrate Judge Veronica L. Duffy on March 28, 2013 and pled guilty to Larceny. The maximum penalty upon conviction is 1 year imprisonment and a $100,000 fine.
The charge relates to Stewart stealing the credit card of another person at Ellsworth Air Force Base and making withdrawals on September 9, 2012. The investigation was conducted by the United States Air Force. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date was set for June 6, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.