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Thursday 4 April 2013
Carl Junction Man Sentenced to 12 Years for Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man was sentenced in federal court today for receiving, distributing and possessing child pornography.
Jason Hill, 27, of Carl Junction, was sentenced by U.S. District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Hill to pay restitution to one of his victims, who is depicted in the images of child pornography. If paid within 30 days, Hill must pay $3,000 in restitution, but if paid after 30 days, he must pay $5,000 in restitution.
On Sept. 27, 2012, Hill was convicted following a three-day trial of one count of receiving and distributing child pornography and one count of possessing child pornography.
An officer with the Southwest Missouri Cybercrimes Task Force, while conducting an investigation, discovered that Hill was receiving and distributing child pornography over the Internet through peer-to-peer, file-sharing software on his computer. The task force officer accessed the shared folder on Hill’s computer and obtained 773 files. Approximately 551 of the file titles indicated that they were pornographic. Approximately 266 of the file titles pertained to child pornography. Of the 266 file titles, 25 files had been identified in previous investigations as containing known child pornography. The task force officer downloaded 10 of these 25 images of child pornography from Hill’s computer.
Officers executed a federal search warrant and seized four computers and various computer media from Hill’s residence. Investigators found three videos that portrayed the sexual abuse of children under the age of 14 and four additional images of child pornography (besides those images that were downloaded by the task force officer). There was forensic evidence that the computers had once contained additional images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Ami Miller. It was investigated by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Capitol Heights Felon Exiled to over 10 Years in Prison for Illegal Possession of FirearmsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jamal Antwon Holder, age 23, of Capitol Heights, Maryland, today to 125 months in prison, followed by three years of supervised release, on three counts of being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Holder's plea agreement, on November 15, 2011, Holder sold a 12 gauge sawed-off shotgun to a law enforcement source. On November 16, 2011, Holder sold a bolt action rifle and a 30/30 lever action rifle to the law enforcement source. Finally, on November 17, 2011, Holder sold a .38 caliber revolver to the law enforcement source. All of these transactions took place at an apartment complex in Capitol Heights. Each sale was observed by law enforcement officers and was video and/or audio recorded. After the completion of each transaction, the source met with law enforcement officers and turned over the firearms purchased from Holder.
Holder’s previous felony assault convictions prohibited him from possessing firearms.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who prosecuted the case.
CHARGING DOCUMENT: U.S. V. Eric Stevenson, Et Al. ComplaintRead the Press Release
U.S. v. Eric Stevenson, et al Complaint
Bowling Green Man Charged with Illegally Taking VA FundsRead the Press Release
An indictment was filed charging Mickael C. Jones, age 36, of Bowling Green, Ohio, with taking approximately $14,000 from the Department of Veterans Affairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Mickael Jones’ aunt died in May 2009. She had been receiving monthly VA surviving-spouse pension benefits. Not knowing of her death, the VA continued to make monthly direct deposits into her bank account, and Jones withdrew the money for his for his own use, according to the indictment.
From May 2009 to December 2010, Jones converted to his own approximately $14,000 of VA benefits, to which he was not entitled, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Veterans Affairs, Office of Inspector General. The case is being handled by Assistant United States Attorney Thomas A. Karol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Baltimore Drug Dealer and 9 Time Convicted Felon Exiled to 15 Years in Prison for Illegal Possession of Guns and AmmunitionRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Derrick Woodlon, age 34, of Baltimore, today to 15 years in prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition. Judge Hollander found that Woodlon was an armed career criminal based on nine previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Woodlon’s plea agreement, Baltimore Police officers observed Woodlon operating a drug shop in the 1000 block of Boyd Street in Baltimore. On August 18, 2011, an undercover Baltimore Police officer purchased two gel caps of heroin using a pre-marked $20 bill. Officers subsequently arrested Woodlon and recovered the marked bill. On November 18, 2011, Baltimore Police officers observed Woodlon supplying the Boyd Street drug shop from a location on North Woodington Avenue, in Baltimore. Officers executed a search warrant at the North Woodington home later that day and recovered three loaded .357 caliber handguns, one of which had been reported stolen a year earlier. Officers also recovered 26 grams of crack cocaine, 44 grams of heroin, drug paraphernalia and approximately $26,000 in cash.
As a result of Woodlon’s previous convictions he was prohibited from possessing a gun or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James T. Wallner, who prosecuted the case.
Babin SentencedRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced yesterday that U.S. District Court Chief Judge Brian A. Jackson sentenced Tara S. Babin, age 38, of Denham Springs, Louisiana, to a term of imprisonment of 17 months and 2 years supervised release after imprisonment. Babin had previously pled guilty to one count of wire fraud.
Between March 2009 and April 2011, Babin systematically embezzled funds belonging to her employer, a local doctor. As the office manager, Babin had access to her employer’s merchant account and electronic payment machine. To execute her wire fraud scheme, Babin used the office electronic payment machine to transmit credit/refund requests to her employer’s electronic payment contractor. Once the electronic payment contractor received the fraudulent credit/refund requests, it would wire funds from her employer’s merchant account into bank and credit card accounts belonging to Babin. Through this scheme, Babin unlawfully obtained $113,718.92 in funds belonging to her employer.
This matter was investigated by the United States Attorney’s Office for the Middle District of Louisiana and the Federal Bureau of Investigation. The matter was prosecuted by Assistant United States Attorney Chris Dippel.
Avonmore Man Admits Producing Sexually Explicit Videos and Images of A MinorRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Timothy Eugene Shearer, 54, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in or around February of 2009 to on or about September of 2009, and in or around October of 2006, Shearer persuaded, induced, and coerced a minor to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct, namely a digital video and other images. The indictment also charged that Shearer possessed visual depictions, namely, digital image files and a video file, depicting minors engaging in sexually explicit conduct.
Judge Hornak scheduled sentencing for Aug. 7, 2013, at 1:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Shearer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anthony Penn Pleads Guilty to Conspiring to Defrauding the United StatesRead the Press Release
ANTHONY PENN, age 51, a resident of New Orleans, pled guilty yesterday before U.S. District Judge Stanwood R. Duval, Jr., to a one-count indictment for conspiring to defraud the United States by accepting kickback payments in connection with a disaster clean up contract administered by the U.S. Army Corps of Engineers, announced U.S Attorney Dana Boente.
According to court documents, the U.S. Army Corps of Engineers hired a national firm called Phillips and Jordan to manage the removal of storm debris from the City of New Orleans after Hurricane Katrina devastated the metro area. After they were awarded the contract, Phillips and Jordan hired Company A, a local solid waste management company to assist with the debris removal project. After securing the contract, Company A hired PENN to manage the debris removal project for them. After some time on the job, PENN approached the owner of Company A and asked if he would consider hiring KCJ Enterprises as a sub-tier subcontractor. The owner of Company A accepted the recommendation and hired KCJ Enterprises to work on the project. Sometime thereafter, PENN asked Kenneth Johnson, Sr., owner of KCJ Enterprises, to provide him with a cut of the payments that KCJ Enterprises was receiving from Company A as a reward for steering the contract to him. Johnson agreed to the plan and began wiring funds to PENN’s bank account. In total, PENN received $222,261.55 in kickback payments from Johnson during the scheme.
PENN faces a maximum term of imprisonment of 5 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment. Sentencing is scheduled for July 10, 2013.
Johnson is currently awaiting trial scheduled for July 29, 2013. If convicted, Johnson faces a maximum term of 5 years imprisonment, a fine of $250,000 and 3 years of supervised release following any term of imprisonment.
The case was investigated by the Federal Bureau of Investigations and the United States Department of Defense. The case is being prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
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Another Treasure Valley Head Shop Owner Pleads GuiltyRead the Press Release
BOISE – Troy A. Rawlings, 33, of Meridian, Idaho, pleaded guilty today in federal court to count one of the indictment charging him with conspiracy to sell, offer for sale, and transport drug paraphernalia, U.S. Attorney Wendy J. Olson announced. Rawlings and his co-defendant, Jason Guerrero, 34, of Boise, Idaho, were indicted by a federal grand jury on May 9, 2012.
Rawlings, the co-owner and operator of RG Distributing, Inc., doing business as Smoke Shack and Smoke Shack 2, admitted in court today that he conspired to sell paraphernalia under the guise of “tobacco products,” or with claims of other “legitimate” uses. According to the indictment, Rawlings referred to the drug paraphernalia as “smoking accessories,” to be used only to smoke tobacco. Virtually all of the smoking devices sold under this guise were commonly used to ingest marijuana, hashish, and/or other illegal drugs, not tobacco.
The charge is punishable by up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release. The government is seeking forfeiture of assets derived from or used in the offense.
Rawlings is scheduled to be sentenced on June 17, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
On February 26, 2013, Guerrero pleaded guilty to a superseding information charging him with one count of offering drug paraphernalia for sale and one count of engaging in monetary transactions involving criminally derived property. He is scheduled to be sentenced on June 4. He faces up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release on the drug paraphernalia charge and up to ten years in prison, a maximum 2 fine of $250,000, and not more than three years of supervised release on the money laundering charge.
Rawlings and Guerrero are among the seventeen individuals charged last year as part of Operation Not for Human Consumption, which targeted illegal sales of drug paraphernalia and “spice” at 13Treasure Valley businesses. According to search warrant affidavits, nine of the 13 businesses were openly selling “spice,” a substance that tested positive for AM-2201. The DEA has determined that AM-2201 is a controlled substance analogue. “Spice,” a synthetic form of cannabis, which is a psychoactive herbal and chemical product that, when consumed, mimics the effects of cannabis. In the spring of 2011, the Idaho Legislature criminalized the sale of “spice” under state law. In March of 2011, the Drug Enforcement Administration placed five synthetic cannabinoids into Schedule I of the Controlled Substances Act. It is against federal law to sell or offer for sale any paraphernalia that is primarily intended or designed for drug use, regardless of whether the seller advises their customers that the paraphernalia is for tobacco use only. The businesses are commonly referred to as “head shops.”
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
Another Defendant Sentenced in E. Idaho Drug Trafficking ConspiracyRead the Press Release
POCATELLO – Rafael Ignacio Guerrero, 37, a Mexican national, was sentenced today in United States District Court to 42 months in prison for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced. He will face deportation after serving his sentence. Chief U.S. District Judge B. Lynn Winmill also ordered Guerrero to pay $100 special assessment.
According to plea agreements filed in the case, from June 2005 through January 2012, a group of individuals centered around Samuel Nevarez-Ayon, a Mexican national, entered into a conspiracy to possess and distribute in excess of 50 grams of actual methamphetamine in the Idaho Falls area. In furtherance of the conspiracy, Nevarez-Ayon admitted that he distributed methamphetamine to other individuals on at least three occasions during this same time period. In June of 2011, Guerrero delivered two pounds of methamphetamine to Nevarez-Ayon for subsequent distribution. In furtherance of the conspiracy, Nevarez-Ayon directed activities of various co-defendants. In addition to distributing methamphetamine, several defendant laundered proceeds from the sale of the methamphetamine, and made false loan application to local banks to further the laundering of money. During the course of the conspiracy, the defendants obtained in excess of $500,000 from the distribution of methamphetamine.
Nevarez-Ayon and seven co-defendants have pleaded guilty and are awaiting sentencing. One defendant is a fugitive.
Three co-defendants were sentenced in March 2013, for conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine, including Antonio Javier Mendoza, of 2 Shelley, Idaho, to 96 months in prison; Fabiola Esmerelda Marin Castro, to 36 months; and Daniel Quiroz, a Mexican national, to 78 months . Abel Garcia, of Idaho Falls, Idaho, was sentenced in March to one month in prison for making a false statement to a bank.
The charges are the result of a nine-month investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), which included the Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Alleged Bank Robber, Who Was Apprehended by A Nearby Resident as He Fled the Scene, Is Ordered DetainedRead the Press Release
FORT WORTH, Texas — Leslie Nashon Slaton, 33, who has been charged in a federal criminal complaint with robbing the Commercial Bank of Texas last week in Bedford, Texas, appeared in federal court in Fort Worth today and was ordered detained by U.S. Magistrate Judge Jeffrey L. Cureton. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed in the case, on the afternoon of March 28, 2013, a man, later identified as Slaton, entered the Commercial Bank of Texas, located at 1716 Forest Ridge Drive in Bedford, wearing a dark colored hoodie, a bandanna over his face, gloves and brandishing a handgun. He ordered customers and several employees to the center of the lobby. He approached one teller and ordered her to give him all the money in her drawer, which she did. He then demanded money from a second teller. When that teller advised that she had no money, Slaton fled the bank, running into an adjacent neighborhood where he had parked his getaway car.
A neighbor saw Slaton running from the bank and deduced that he had robbed the bank. As Slaton drove away, that neighbor ran after the car to obtain the license number. At the next intersection, however, Slaton ran a stop sign and collided with another vehicle. The neighbor then ran up to the wreck, pulled Slaton from the vehicle and held him until police arrived. An officer with the Euless Police Department, who drove by the scene, stopped and handcuffed Slaton. Officers with the Beford Police Department then arrived and took Slaton into custody. The money stolen from the bank, as well as his disguise and a pellet gun that resembled a real firearm, were recovered from Slaton’s vehicle.
A federal criminal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. If convicted of the offense of bank robbery however, Slaton faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by the FBI and the Bedford Police Department.
Assistant U.S. Attorney Chris Wolfe is in charge of the prosecution.
Wednesday 3 April 2013
West New York, N.J., Man Sentenced to 210 Months in Prison for Armed Bank RobberyRead the Press Release
TRENTON, N.J. – A West New York, N.J., man was sentenced today to 210 months in prison for robbing a TD Bank branch in Weehawken, N.J., on May 31, 2011, U.S. Attorney Paul J. Fishman announced.
Maximo Castro, a/k/a “Carl Worthington,” 32, was convicted by a federal jury on Dec. 22, 2011, of both counts of the Indictment on which he was tried: armed bank robbery and possession of a firearm in furtherance of the bank robbery. He was sentenced today by U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Castro entered the TD Bank branch wearing a hat and sunglasses and carrying a gold-plated handgun. He then announced that he was robbing the bank, threw a black bag at the tellers and demanded that they hand over the bank’s money. Castro also stole money from bank customers and ordered everyone in the bank to the ground before leaving the bank.
In addition to the prison term, Judge Wolfson sentenced Castro to five years of supervised release and ordered him to pay restitution of $4,843.
U.S. Attorney Fishman credited special agents and task force officers of the FBI’s Newark Violent Crime Squad, under the direction of Acting Special Agent in Charge David Velazquez, as well as officers from the Weehawken Township Police Department, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the Criminal Division in Trenton and Senior Litigation Counsel Serina Vash of the U.S. Attorney’s Office Criminal Division in Newark.
13-154
Defense counsel: Jerome A. Ballarotto Esq., TrentonWalbridge Man Charged with Falsely Labeling Ivory ShipmentRead the Press Release
A criminal information was filed charging a Walbridge, Ohio, man with falsely labeling a package containing wildlife items, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Mark St. John, age 53, falsely labeled an elephant ivory shipment destined for an overseas buyer on June 1, 2011, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United State Fish & Wildlife Service, Delaware, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Victor Mendez-guinto Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
VICTOR MENDEZ-GUINTO, age 32, a citizen of Mexico, pleaded guilty today before U.S. District Judge Mary Ann Vial Lemmon to seven counts of unlawful transfer of identification documents announced U. S. Attorney Dana Boente.
According to court documents, beginning on or about August 14, 2012 and continuing through October 4, 2012, MENDEZ-GUINTO knowingly transferred numerous counterfeit and stolen identification documents, including Social Security cards, birth certificates, and state identification cards, knowing that such documents were produced without lawful authority.
MENDEZ-GUINTO will be sentenced on July 11, 2013, and faces a maximum term of imprisonment of 15 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment as to each count of the indictment.
The case was investigated by special agents of the U.S. Department of Homeland Security/Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Gregory M. Kennedy.
U.S. Attorney Alicia A.G. Limtiaco Receives 2013 Visionary Voice AwardRead the Press Release
Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands, was awarded the 2013 Visionary Voice Award from the National Sexual Violence Resource Center (NSVRC). The Visionary Voice Award highlights individuals throughout the country who are doing outstanding work in the field of anti-sexual violence within their communities and whose prevention work is making an impact in their communities. This year, the National award honors 26 leaders in sexual violence prevention.
The Guam Coalition Against Sexual Assault and Family Violence (GCASAFV) nominated U.S. Attorney Limtiaco for the 2013 Visionary Voice Award and invited her to the "Proclamation Signing and Remembrance Ceremony" commemorating Sexual Assault Awareness Month, National Child Abuse Prevention and Awareness Month, and Crime Victims' Rights Week. The Proclamation Signing by the Honorable Ray Tenorio, Acting Governor of Guam, and Remembrance Candle Lighting and Reflection Ceremony honoring all victims of violence and led by the faith based community, were held at the Latte ofFreedom on April1, 2013. GCASAFV Executive Director Cynthia Cabot expressed thanks to U.S. Attorney Limtiaco for building the foundation and presented her with a crystal clock signifying this year's theme of Sexual Assault Awareness Month-- "It's Time ... To Talk About It!"
The GCASAFV nominated U.S. Attorney Limtiaco citing to her over 20 years of commitment and dedication to enforcement, prosecution, public awareness and prevention efforts to combat against and end sexual assault and family violence. Prior to commencing her service as U.S. Attorney in 2010, Limtiaco was the first woman elected to serve as Attorney General of Guam. Limtiaco was an active member of the National Association of Attorneys General (NAAG) and Conference of Western Attorneys General (CW AG), and served as Co-chair of the NAAG Criminal Law Committee and NAAG Youth Access to Alcohol Committee, and as Second Vice Chair of the CW AG Executive Team. She spearheaded certain initiatives including the formation of task forces to address human trafficking; internet crimes against children including sexual exploitation and child pornography; and the implementation and compliance of Sex Offender Registration and Notification Act (SO RNA) requirements by the Government of Guam. She served as the Chair of the Executive Branch ofthe Family Violence and Sexual Assault Task Force, and was an active member of the Sexual Assault Response Team (SART) Steering Committee.
Prior to her tenure as Attorney General, Limtiaco served as acting Chief Prosecutor and as an Assistant Attorney General (Prosecutor) for the Office of the Attorney General. She was the Lead Prosecutor of the Criminal Sexual Conduct and Family Violence Unit, and Co-chair of the Governor's Family Violence Task Force. Limtiaco initiated the drafting and implementation of family violence protocol utilized by the Prosecution Division and Guam Police Department, and assisted in the drafting of the 1994 and 1998 Guam Family Violence Acts, and the Sex Offender Registration and Notification law enacted in 1999.
As U.S. Attorney, Limtiaco is a member of the Attorney General's Advisory Committee (AGAC) Subcommittees/ Working Groups, including the Civil Rights, and Child Exploitation and Obscenity Working Groups. U.S. Attorney Limtiaco and the U.S. Attorney's Office (USAO) continues to work collaboratively with the National District Attorney's Association; U.S. Department of Interior, Office oflnsular Affairs, Federal Ombudsman Office; and U.S. Department of State, Monitoring of Trafficking in Persons Office, on a Pacific Regional Response to Combat Human Trafficking. This response is a critical component of the USAO's human trafficking strategic plan given increased concerns in the Pacific region regarding sex and labor trafficking, violence against women, and child abuse and sexual exploitation. Also of significance are the source countries within the Asia Pacific region from which victims are recruited and trafficked, and their close proximity to Guam, the NMI, Republic of Palau, Republic of the Marshall Islands, and Federated States ofMicronesia ("FSM"); and the trafficking of victims in the islands themselves. The Pacific Regional Response to Combat Human Trafficking initiative employs a multi-disciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region. U.S. Attorney Limtiaco has been instrumental in coordinating human trafficking, sexual assault and child sexual exploitation training in Guam, the Northern Mariana Islands, the Republic of Palau, and Federated States of Micronesia; and facilitating the Guam Human Trafficking Task Force efforts, including those of the Victim Service Providers Committee.
NSVRC Director Karen Baker, in a press release, stated that "it is an honor to celebrate these outstanding individuals, who have committed themselves to sexual violence prevention. Recognizing the positive impact of this work on a national level is a great reminder that we all can make a difference."
To learn more about Sexual Assault Awareness Month and the Visionary Voice Award, visit www.nsvrc.org.
Three Sentenced to Lengthy Prison Terms in Shooting Death of Brinks Guard at Calder CasinoRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Matthew Boyd, Chief, Miami Gardens Police Department, announce today’s sentencing of Vladimir Louissant, of Miami Gardens, Victoria Barkley, of Miami Gardens, and Byron Kyler, of Miami, in connection with the August 21, 2011 shooting death of a Brinks guard at the Calder Casino and Race Course (Calder) in North Miami, Florida. Co-defendants Reginald Mitchell, of Miami Gardens, and Uri Ammar, of Hollywood, have not been sentenced yet. Sentencing for defendant Ammar is scheduled for April 18, 2013.
At today’s sentencing hearing, U.S. District Judge James Lawrence King sentenced Louissant to life in prison. Barkley was sentenced to 10 years in prison, and Kyler was sentenced to 5 years in prison, both sentences to be followed by three years of supervised release.
According to documents filed with the court and evidence presented during trial, on August 21, 2011, Mitchell and Ammar conspired to rob a Brinks guard as he made a scheduled pick-up at Calder. Mitchell and Ammar both worked security at Calder, where Ammar was a Security Shift Manager. Mitchell recruited co-defendants Louissant, Barkley and Kyler. On the day of the murder, Mitchell drove Louissant to Calder in Kyler’s truck, which Kyler had falsely reported stolen.
According to the trial evidence, Ammar escorted the Brinks guard through the Calder facility and led him to an open area, where Louissant was waiting. As Ammar and the guard entered the open area, Louissant rushed at the guard, brandishing a firearm. When the guard drew his weapon, Louissant shot the guard and the two exchange gunfire. After shooting the guard, Louissant grabbed the Brinks money bag and fled to Kyler’s truck. Mitchell and Louissant then drove a short distance in Kyler’s truck, which they abandoned to be driven away from the scene by Barkley in another vehicle.
Mr. Ferrer commended the FBI and Miami Gardens Police Department for their work on this case. Mr. Ferrer also thanked the members of the FBI’s South Florida Violent Crimes and Fugitive Task Force. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Seth Schlessinger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Evasion and Fraud Charges Leveled Against Local BusinessmanRead the Press Release
James L. Quirin, 58, formerly of Columbia, IL, and now residing in Sauget, IL, was charged in a superseding federal indictment returned on Tuesday with four new counts alleging felony Tax Evasion and False Filing, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. These charges were added to the original eight counts (two counts of Mail Fraud, five counts of Wire Fraud, and one count of Theft of Government Funds) charged in November 2011.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
The new allegations in the superseding Indictment are as follows:
On July 22, 2008, the Internal Revenue Service issued to Quirin a Notice of Federal Tax Lien Filing for the 2006 tax year in the amount of $93,844. Quirin did not pay the tax and in March 2009, in order to conceal his true income and assets, he began converting checks to cash at money services businesses (over $900,000 through January 2013.) On September 30, 2009, Quirin made a formal offer in compromise in the amount of $5,500 for his 2006 tax debt in which he claimed that his only income was unemployment compensation. In like manner, Quirin evaded payment of substantial income tax for 2008 and 2010.
On July 13, 2010, Quirin made and filed an income tax return for 2009 in which he understated the gross receipts of his business by over $100,000. The return was verified by a written declaration that it was made under penalties of perjury.
The allegations in the original and superseding Indictment are as follows:
Quirin applied for Unemployment Insurance benefits in February, 2009, even though he was a gainfully employed businessman receiving significant income. Quirin and several of his businesses were sued in federal court. Just before he was ordered to post an approximate quarter million dollars in collateral, Quirin filed a fraudulent application for unemployment benefits with the State of Illinois. Quirin then falsely told the judge that he was unemployed and had no source of income.
In reality, Quirin continued to receive significant income with most of the payments being made out to the names of other business entities with which Quirin was associated. In a practice known as “structuring,” Quirin caused payments to be split into separate checks of less than $10,000.00 to avoid his transactions being reported to the government. Quirin cashed most of his checks at a money services business located at a bar in St. Louis, Missouri, occasionally cashing structured checks on separate days. In order to receive the full benefit payments, the State of Illinois requires that beneficiaries report weekly that they looked for and were available to work, and that they had not worked. Quirin repeatedly and falsely informed the State of Illinois that he met these criteria, even though he had worked, had been paid, and on some occasions was unavailable to work because he was vacationing in Costa Rica.
The State of Illinois issues a debit card to unemployment beneficiaries. Quirin used his unemployment benefits card, which was obtained by way of the U.S. Mail, to pay expenses while vacationing in Costa Rica at such establishments as Hooters, the Monkey Bar, and the Hotel Copacabana, which resulted in wire transmissions, in San Jose and Puntarenas, Costa Rica, during time periods that he falsely claimed to be available and looking for work.
State unemployment programs are funded by the federal government. During the period that Quirin claimed federally subsidized unemployment benefits, February 2009 through October 2010, Quirin fraudulently received government funds exceeding $44,000.00.
Quirin faces up to 20 years imprisonment, a fine of $250,000, and up to 3 years supervised release on each of the Mail Fraud and Wire Fraud counts. Quirin faces up to 10 years imprisonment, a fine of $250,000, and up to 3 years supervised release on the theft count. Quirin faces up to five years’ imprisonment, a fine of $100,000, costs of prosecution, and up to 3 years’ supervised release on each of the 3 counts of Evasion of Payment of Tax. Quirin faces up to 3 years’ imprisonment, a fine of $100,000, costs of prosecution, and 1 year’ supervised release for Filing a False Return.
The Superseding Indictment follows investigations by the Department of Labor, the Internal Revenue Service, and the Environmental Protection Agency. The case is being prosecuted by Assistant United States Attorney Michael J. Quinley and Special Assistant United States Attorney Katherine L. Lewis.
Tampa Woman Sentenced to More Than 5 Years in Prison for Stolen Identity Tax Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Remesa Buemer to 5 years and 5 months in federal prison for wire fraud and aggravated identity theft. As part of the sentence, the court also entered a money judgment in the amount of $159,265.60, a portion the proceeds of the charged criminal conduct. Buemer was also ordered to pay restitution in the amount of $462,039.60.
Buemer pleaded guilty on January 17, 2013.
According to court documents, from at least as early as January 21, 2011, through at least September 15, 2011, Buemer engaged in a scheme to file false tax returns in order to obtain fraudulent refunds. She generated fraudulent tax refunds using the identities of other individuals on tax returns without their permission.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," stated James Robnett SAC, Tampa Field Office. "Filing fraudulent tax returns in the names of other individuals results in significant harm to those individuals whose identities were stolen. Today’s sentence reflects the harm inflicted upon the victims.”
Special Agent in Charge Quentin G. Aucoin stated, “The VA Office of Inspector General is dedicated to aggressively investigating individuals who misuse patient information, especially when used for personal and financial gain .”
“Through the task force, we are sending a strong message to criminals. If you commit tax fraud, you will go to prison,” said Tampa Police Chief Jane Castor.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Department of Veterans Affairs Office of Inspector General, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Staten Island, N.Y. Man Pleads Guilty in Jewelry Store RobberyRead the Press Release
TRENTON, N.J. – A Staten Island, N.Y., man today admitted his role in the robbery of Blue Stove Antiques in Fair Haven, N.J., on June 2, 2012, U.S. Attorney Paul J. Fishman announced.
Robert A. Fiolka, 69, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an Information charging him with Hobbs Act robbery and use of a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
On June 2, 2012, at approximately 9:30 a.m., Fiolka entered Blue Stove Antiques in Fair Haven wearing a hat and flesh-colored face mask and brandishing a handgun. Fiolka approached the store owner, pointed the handgun at him and demanded that he open the store’s safe. After the owner opened the safe, Fiolka ordered him to the ground and then proceeded to empty the safe’s contents into a satchel that he had with him. After filling the bag with the safe’s contents, Fiolka exited the store with approximately $200,000 worth of jewelry.
The Hobbs Act robbery charge is punishable by a maximum potential penalty of 20 years in prison; the charge of use of a firearm in furtherance of a crime of violence is punishable by a maximum potential penalty of life in prison. Each charge carries a statutory maximum fine equal to the greatest of $250,000 or twice the gross loss or gain.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s guilty plea; he also thanked the Colts Neck Police Department, Fair Haven Police Department, Old Bridge Police Department, Wall Township Police Department, and the Monmouth County Prosecutor’s Office.
Sentencing before Judge Wolfson is scheduled for July 11, 2013.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the Criminal Division in Trenton.
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Defense counsel: John W. Mitchell Esq. and Jerome A. Ballarotto Esq.Fiolka Information
St. Marys, Kan., Man Sentenced to 25 Years for Drug TraffickingRead the Press Release
TOPEKA, KAN. – A man from St. Marys, Kan., has been sentenced to 25 years in federal prison for drug trafficking, U.S. Attorney Barry Grissom said today.
Alejandro Oviedo-Tagle, 36, St. Marys, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.
Grissom commended Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Assistant U.S. Attorney Greg Hough for their work on the case.
St. Luke’s University Health Network Agrees ToRead the Press Release
Pay Government $1,029,791 To ResolveAlleged Improper Medicare Claims
The United States Attorney's Office for the Middle District of Pennsylvania announced that the St. Luke’s University Health Network has agreed to pay the United States $1,029,791 to resolve allegations that it erroneously submitted improper claims to the Medicare program. St. Luke’s University Health Network owns and operates St. Luke’s Hospital of Bethlehem, St. Luke’s Quakertown Hospital, and St. Luke’s Miners Memorial Hospital.
According to United States Attorney Peter J. Smith, St. Luke’s University Health Network has agreed to pay $1,029,791 to resolve allegations that from January 1, 2002, through June 30, 2012, its hospitals erroneously submitted claims to the Medicare program for payment that contained evaluation and management services that were not allowable under Medicare.
Medicare does not normally allow additional payments for such services performed by a provider on the same day as a procedure, unless the service is significant, separately identifiable, and above and beyond the usual preoperative and postoperative care associated with the procedure. In such cases, an attachment to the claim, known as "Modifier 25," may be submitted to allow the additional payment.
In this matter, the government determined that St. Luke’s hospitals incorrectly attached Modifier 25 to Medicare claims that led Medicare to pay the hospitals for evaluation and management services that were not significant and separately identifiable from the underlying procedures for which Medicare also made payments.
St. Luke’s fully cooperated in this investigation after being contacted by the government.The Harrisburg Office of the U.S. Attorney’s Office had jurisdiction because Medicare provider claims are processed by Novitas Solutions, Inc., formerly Highmark Medicare Services, in Camp Hill, Pennsylvania. The U.S. Attorney’s Office for the Eastern District of Pennsylvania cooperated in this matter.
The case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General in Harrisburg and handled by D. Brian Simpson, of the United States Attorney's Office, Civil Division.
South Carolina Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Saluda, South Carolina man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Volney V. Smith, age 44, was indicted by a federal grand jury on December 4, 2012 for failing to pay over $13,155.00 in past due child support. He appeared before U.S. Magistrate Judge William D. Gerdes on March 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years of imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Smith is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Smith was released on bond pending trial. A trial date has not been set.
Six arrested for conspiracy to commit international money laundering and structuringRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that six individuals have been arrested on charges of conspiracy to commit international money laundering and structuring financial transactions.
On April 2, 2013, Special Agents of the IRS Criminal Investigation Division, the Drug Enforcement Administration, and Homeland Security Investigations arrested five people in Alaska and one in Florida. Those arrested included Claritza Natera, 44, Joel Paredes Henriquez, 32, Nerido Paredes Henriquez, 38, Alberto Acosta, 32, and Carlita Acosta, 34, of Anchorage, Alaska, and Concepcion Egea, 56, of Orlando, Florida.
According to the indictment, between approximately January 2010 and December 2011, the defendants conspired with one another and with unindicted co-conspirators Randin Paredes Henriquez and Joel Santana-Pierna, who were previously indicted in another case, to transfer large sums of money from Alaska to the Dominican Republic. The money was the proceeds of a larger conspiracy allegedly perpetrated by Santana-Pierna and others to distribute cocaine. The alleged co-conspirators noted in the indictment, wired more than $175,000 in illegally obtained funds from Alaska to the Dominican Republic over a two year period. Additionally, in December 2011, Claritza Natera and others transported $55,720 in cash on board a plane from Alaska to Philadelphia, Pennsylvania, in an attempt to then escort the funds to the Dominican Republic.
The indictment further alleges that each of the conspirators attempted to evade federal financial transaction reporting requirements by making multiple deposits to their bank accounts that were below the reporting threshold. These deposits were often made within hours or even minutes of one another. Under federal law, a Currency Transaction Report must be filed with the IRS by a financial institution for any currency transaction over $10,000, and it is illegal to structure transactions in order to avoid this filing requirement.
According to Assistant U.S. Attorneys Stephanie Courter and Thomas Bradley, who presented the case to the grand jury, the conspiracy charge is punishable by up to 20 years in prison as well as a $500,000 fine, and each individual structuring charge carries a maximum penalty of 10 years in prison as well as a fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.The case was investigated under the purview of the Organized Crime and Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, and the Anchorage Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Sioux Falls Woman Indicted for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota woman has been indicted by a federal grand jury for conspiring with others to distribute methamphetamine in South Dakota and elsewhere from August 2009 to February 2013.
Shawna Provincial, age 38, was indicted by a federal grand jury on February 20, 2013 for Conspiracy to Distribute a Controlled Substance. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 15, 2013 and pled not guilty to the indictment. The penalty upon conviction is a minimum of 5 up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge is merely an accusation and Provincial is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, Federal Bureau of Investigation, and Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Provincial was released on bond pending trial. A trial date has been set for May 28, 2013.
Sioux Falls Man Indicted for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man has been indicted by a federal grand jury for conspiring with others to distribute methamphetamine in South Dakota and elsewhere from August 2009 to February 2013.
Clinton Provincial, age 33, was indicted by a federal grand jury on February 20, 2013 for Conspiracy to Distribute a Controlled Substance. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 26, 2013 and pled not guilty to the indictment. The penalty upon conviction is a minimum of 5 up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge is merely an accusation and Provincial is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, and the Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Provincial was remanded to the custody of the U.S. Marshal. A trial date has been set for May 28, 2013.
Sikeston Man Sentenced for Lebanon Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sikeston, Mo., man was sentenced in federal court today for robbing a Lebanon, Mo., bank.
Larry Gene Enloe, 52, of Sikeston, was sentenced by U.S. District Judge Greg Kays to five years and three months in federal prison without parole.
On Sept. 26, 2012 Enloe pleaded guilty to bank robbery. Enloe admitted that he stole $2,350 from Commerce Bank on Aug. 21, 2012.
According to court documents, Enloe entered Commerce Bank, 224 W. Commercial St., Lebanon, at about 3:15 p.m. on Aug. 21, 2012. Enloe approached the teller counter and presented a bank robbery note (written on the back of a Walmart receipt) to the teller. The note read, "10 seconds. Put all your money in the bag now. No one gets hurt."
The teller handed Enloe $2,350 and he put the cash in a white plastic bag and walked out of the bank.
While conducting a search of the area, Lebanon police officers located Enloe near a local bus station. He was questioned and transported to the police station where he was searched; officers found $2,350 hidden in his socks.
This case was prosecuted by Assistant U.S. Attorney Steven Mohlhenrich. It was investigated by the Lebanon, Mo., Police Department and the FBI.Rochester Man Pleads Guilty Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Paul Hearty, 37, of Rochester, New York, pled guilty to a one count felony information charging him with knowing possession of child pornography before United States District Judge Frank P. Geraci, Jr. Due to Hearty's prior State conviction for possession of child pornography, the offense carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of 20 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee stated that Hearty admitted to possessing images of child pornography, to include prepubescent children, on a Samsung smart phone in his possession. According to the criminal complaint, in December 2010, New York State Police's Internet Crimes Against Children Task Force had received information that an AOL user was sending child pornography to an account used by a particular Internet Protocol address. The subscriber of the Internet Protocol address was identified as Hearty, residing at Alexander Street, in the City of Rochester. New York State Police executed a search warrant in April 2011 and images of child pornography were found on Hearty's Samsung smart phone.
In 2005, Hearty was convicted in Monroe County of the Possession of an Obscene Sexual Performance By A Child Less Than 16 Years Old and following his conviction, he was required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The plea was the culmination of an investigation on the part of the United States Homeland Security Investigations under the direction of Special Agent in Charge James C. Spero, the New York State Police Computer Crimes Unit under the direction of Captain Frank Pace, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
Sentencing has been scheduled for July 8, 2013 at 3:00 p.m. before Judge Geraci.
Resident of Weare, New Hampshire Pleads Guilty to Bank FraudRead the Press Release
CONCORD, N.H. – Renee Pelletier, 59, of Weare, pleaded guilty to bank fraud in United States District Court for the District of New Hampshire, announced United States Attorney John P. Kacavas.
From June 2008 to August 2011, Pelletier was employed as a part-time bookkeeper by an excavation company in Merrimack, New Hampshire, that maintained a checking account at St. Mary’s bank, a federally insured credit union.
While working for the company, Pelletier used a variety of dishonest methods to steal money from the company’s bank account. Without receiving permission or authority from the company’s owner, Pelletier forged the owner’s endorsements on 315 checks, totaling $32,504.04, that were drawn on the company’s account, and used the money for her personal benefit. On 233 other occasions, Pelletier used the credit union’s on-line banking system to make payments totaling $19,103.15 from the company’s account to business entities to whom she owned money.Pelletier is scheduled to be sentenced on July 9, 2013 and is facing a prison term of up to 30 years and a fine of up to $1,000,000.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Bob Kinsella.
Resident of Florida Sentenced to 63 Months in PrisonRead the Press Release
CONCORD, N.H. – Steven D. Lewis, 61, of Loxahatchee, Florida, was sentenced in United States District Court for the District of New Hampshire to 63 months in prison for a wire fraud, announced United States Attorney John P. Kacavas.
From approximately November 2003 to July 2010, Lewis and another person, William Orestis, solicited money on behalf of a sham investment company, Equivest, LLC. Lewis and Orestis falsely assured investors that their money would be used to purchase foreign currencies and to support Equivest’s business activities. They provided bogus account statements to investors that falsely claimed that impressive profits had been earned in Equivest accounts by other investors. Lewis and Orestis also falsely assured some investors that their accounts would earn 12 percent interest annually. They also falsely promised other investors that their accounts would earn income at rates as high as 18 percent annually.Lewis and Orestis fraudulently obtained $764,282 from investors, but they used only a portion of that money to buy foreign currencies. They also made payments totaling approximately $124,715 to some investors in order to lull them into a false sense of security regarding the performance of their Equivest accounts. As a result, the investors lost $639,567.
Lewis is currently serving a 28 month sentence in Florida for a larceny related offense. He will begin serving his 63 months upon completion of his current sentence.
The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant United States Attorney Bob Kinsella.Removed Alien Found by ICE Charged with Illegally Re-Entering U.S.Read the Press Release
PITTSBURGH - An individual found by the United States Immigration and Customs Enforcement has been indicted by a federal grand jury in Pittsburgh on charges of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Antonio Florentino-Facundo, a/k/a Frankic Mendoza-Sagal, 29, formerly from Mexico, as the sole defendant.
According to indictment, Antonio Florentino-Facundo, a/k/a Frankic Mendoza-Sagal, an alien, was removed from the United States by United States Immigration and Customs Enforcement on Jan. 16, 2008.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Prosecutors Warn Potential Tax Evaders: Tax Crimes Result in Lengthy Prison Sentences and Steep FinesRead the Press Release
Taxpayers Also Cautioned About Tax Preparer Fraud and Other Illegal Tax Schemes
CHARLOTTE, NC - With the deadline for filing income tax returns rapidly approaching, Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CID), jointly announce recent tax fraud prosecutions and sentencings, and deliver a powerful warning to those who are thinking about breaking the law by committing tax crimes.
“As April 15th approaches, honest taxpayers should rest assured: our office will work diligently to investigate and prosecute those individuals who try to cheat the tax system,” said U.S. Attorney Tompkins. “Whether dishonest taxpayers fail to report all of their income, attempt to obtain fraudulent refunds, or prepare bad tax returns for others,” Tompkins continued, “they face lengthy sentences and large fines.” Tompkins noted the importance of deterring others from committing tax crimes stating, “Our tax system is built on voluntary compliance, and tax criminals hurt all Americans by increasing the tax burden on honest taxpayers and refusing to pay their fair share.”
“The IRS fosters confidence in the American tax system through the investigation and prosecution of individuals and corporations who intentionally conceal income and evade taxes,” stated Charlotte Field Office Special Agent in Charge Jeannine A. Hammett, IRS Criminal Investigation. “Tax evasion is not a victimless crime. Honest, hardworking Americans pay the price when others choose to evade their tax obligations.”
In the last year, the U.S. Attorney’s Office, with the assistance of the IRS-CID, has prosecuted numerous individuals for criminal tax violations. Case highlights from the Western District of North Carolina’s tax enforcement prosecutions over the last year include:
Charles A. Davis - On September 10, 2012, Charles A. Davis, formerly of Mooresville, N.C., was sentenced to 10 years in prison for tax fraud. Davis, who was a pilot for U.S. Airways from 1983 through 2011, was convicted following trial of ten counts of filing false tax returns and one count of corruptly impeding the due administration of the IRS. Davis did not file timely income tax returns for 1996 through 2007 despite receipt of wages ranging from $129,950 to $190,510. Davis subsequently filed fraudulent amended income tax returns for 1996 through 2000, falsely claiming that he earned little or no adjusted gross income, and he later filed five fraudulent individual income tax returns for 2004 through 2008, reporting false amounts of federal income tax withheld for each of those years and requesting fraudulent refunds from the IRS in amounts up to approximately $1.5 million. (Case No. 5:11-cr-32)
Candida Figueroa, et al. - On October 24 and November 5, 2012 respectively, Cathy Cisneros and Candida Figueroa, both of Charlotte, pleaded guilty to a false claims conspiracy for their roles in a scheme to defraud the government by obtaining false and fraudulent income tax refunds. According to the superseding indictment, the co-conspirators obtained false tax refunds using fraudulently obtained Individual Taxpayer Identification Numbers. The co-conspirators directed that fraudulent tax refunds be sent to addresses at various apartment complexes in Charlotte. The total attempted fraudulent tax refunds associated with the scheme was more than $3.8 million. No sentencing dates have been set. Figueroa and Cisneros each face a maximum sentence of 10 years in prison. (Case No. 3:12-cr-260)
Cynthia Garris - On May 15, 2012, Cynthia Garris, of Wadesboro, N.C., pleaded guilty to one count of filing a false tax return. Beginning in 2008, Garris was the owner of Wadesboro Home Care, Inc. in Charlotte. From 2008 through 2010, Garris concealed some of her personal earnings from the IRS by diverting funds from Wadesboro Home Care to pay for personal expenditures and failing to provide her return preparer with information about all of her earnings. For tax years 2008 through 2010, Garris had total unreported income of more than $400,000. No sentencing date has been set. Garris faces a maximum of three years in prison. (Case No. 3:12-cr-150)
Yolanda Tiess Kitson – On April 2, 2013, Yolanda Tiess Kitson of Augusta, Ga. was indicted on charges of false claims conspiracy and aggravated identity theft. According to the bill of indictment filed, Kitson, who is the sister of Senita Birt Dill (listed below), stole identifying information from patients at the Eisenhower Army Medical Center in Augusta and provided them to her sister Dill for use in her stolen identity tax refund scheme. Kitson is awaiting her initial appearance in federal court in Asheville. (Case No. 1:13-cr-31)
Ronald Jeremy Knowles and Senita Birt Dill – On October 29, 2012, Ronald Jeremy Knowles and Senita Birt Dill, both residents of Mill Spring in Polk County, N.C., pleaded guilty to charges of false claims conspiracy, access device fraud, and aggravated identity theft. According to the bill of information filed, Knowles and Dill used stolen identities to file over $5 million in fraudulent tax refund claims. Both are in custody awaiting sentencing, but no sentencing date has been set. Dill faces a maximum of 17 years in prison; Knowles is facing a maximum of 15 years in prison. (Case No. 1:12-cr-105)
Anthony Nguyen - On May 30, 2012, Anthony Nguyen, of Charlotte, pleaded guilty to tax evasion. Nguyen was the owner of Empress of China II, a Chinese restaurant in Charlotte. For tax years 2006 through 2008, Nguyen diverted cash receipts from his business to his personal bank accounts and failed to provide his tax return preparer full information about his earnings. For 2006 through 2008, Nguyen failed to report approximately $421,751 in income on his tax returns. No sentencing date has been set. Nguyen faces a maximum sentence of five years in prison. (Case No. 3-12-cr-155)
Nelson Rodriguez – On November 26, 2012, Nelson Rodriguez, of Morganton, N.C. pleaded guilty to tax evasion. Rodriguez, a dentist, failed to file income tax returns from 2005 through 2010 despite receipt of more than $1.7 million in income for those years. According to the superseding indictment, Rodriguez used nominee entities including Practice Promoters, LLC to receive his dental income. Additionally, Rodriguez purchased assets in nominee names and used bank accounts in nominee names. No sentencing date has been set. Rodriguez faces a maximum of five years in prison. (Case No. 1-12-cr-41)
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a maximum of three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season and to be vigilant in protecting themselves against a wide range of tax schemes. The IRS has issued its annual “Dirty Dozen” listing, which identifies common scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
• Identity theft
• Phising
• Return Preparer Fraud
• Hiding Income Offshore
• “Free Money” from IRS & Tax Scams Involving Social Security
• Impersonation of Charitable Organizations
• False/Inflated Income and Expenses
• False Form 1099 Refund Claims
• Frivolous Arguments
• Falsely Claiming Zero Wages
• Disguised Corporate Ownership
• Misuse of TrustsEducation is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
Porcupine Woman Indicted for Child Abuse and Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota woman was indicted by a federal grand jury for driving a vehicle while intoxicated, causing it to roll and eject a young child, who died from his injuries.
Elizabeth Red Star-Benson, 26, was indicted on March 19, 2013 for Felony Child Abuse and Neglect and Involuntary Manslaughter. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 15 years’ imprisonment and/or a $250,000 fine.
The charges are merely an accusation and Red Star-Benson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Highway Patrol. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Red Star-Benson was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Porcupine Man Indicted for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota man was indicted by a federal grand jury on two counts of involuntary manslaughter.
Alden Brewer, Jr., age 25, was indicted on December 18, 2012 for driving while under the influence, at a high rate of speed, causing an accident that killed two people. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 13, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 8 years’ imprisonment and/or a $250,000 fine.
The charge is merely an accusation and Brewer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, Bureau of Indian Affairs Office of Justice Services, South Dakota Division of Criminal Investigation, and South Dakota Highway Patrol. Special Assistant U.S. Attorney Laura A. Shattuck is prosecuting the case.
Brewer was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Pine Ridge Man Indicted for Larceny and Tampering with A Witness; Woman Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a man and woman from Pine Ridge, South Dakota have been indicted by a federal grand jury for a December 15, 2012 incident at Pine Ridge involving the theft of over $1,000 in property and for threatening witnesses of the theft.
Michael Alford, age 31, was indicted by a federal grand jury on March 19, 2013 for Larceny and two counts of Tampering with a Witness. Philana Red Feather, a/k/a Philana Garcia, age 57, was indicted on the same date for Larceny. Alford and Red Feather appeared before U.S. Magistrate Judge Veronica L. Duffy on March 26, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction for Alford is 20 years of imprisonment and a $250,000 fine. The maximum penalty upon conviction for Red Feather is 5 years of imprisonment and a $250,000 fine.
The charges are merely accusations and Alford and Red Feather are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Both were remanded to the custody of the U.S. Marshal. A trial date has been set for June 4, 2013.
Pine Ridge Man Indicted for Felony Child Abuse and NeglectRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man has been indicted by a federal grand jury for allegedly intentionally and knowingly abusing and neglecting three minor children on December 15, 2012 at Pine Ridge, subjecting them to an environment which was injurious to their welfare and threatened them with substantial harm.
Newton Two Two, age 30, was indicted by a federal grand jury on March 19, 2013 for Felony Child Abuse and Neglect. Two Two appeared before U.S. Magistrate Judge Veronica L. Duffy on March 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charge is merely an accusation and Two Two is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Two Two was remanded to the custody of the U.S. Marshal. A trial date has been set for June 4, 2013.
Pine Ridge Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man has been indicted by a federal grand jury for allegedly assaulting a young female companion on four different occasions in 2012.
Jon Craig Dillon, a/k/a JC Dillon, a/k/a Jon Craig Goings, age 25, was indicted by a federal grand jury on March 22, 2013 for one count of Assault with a Dangerous Weapon and four counts of Assault Resulting in Serious Bodily Injury. Dillon appeared before U.S. Magistrate Judge Veronica L. Duffy on March 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine for each count.
The charges are merely accusations and Dillon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Dillon was remanded to the custody of the U.S. Marshal. A trial date has been set for May 28, 2013.
Panama City Man Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
PANAMA CITY, FLORIDA – Robert E. Eldridge 43, of Panama City, was sentenced today to serve 180 months in federal prison for receipt and possession of child pornography
Eldridge pled guilty in January to two counts of receiving and possessing child pornography. During his plea of guilty, Eldridge admitted that between January 1, 2012, and March 21, 2012, he downloaded in excess of 35 videos and 160 still images containing child pornography from a peer-to-peer network and that he “preferred minor females around 12 years of age.”
Due to a prior conviction for Promoting Sexual Performance of a Child, Eldridge faced an enhanced penalty of a mandatory minimum term of imprisonment of fifteen years on Count One of his indictment and a mandatory minimum term of imprisonment of ten years on Count Two. Eldridge was also sentenced to a 10-year term of supervised release, which he will be required to serve upon completion of his prison sentence.
In announcing the court’s sentence, Pamela C. Marsh, United States Attorney for the Northern District of Florida stated: “Protecting children from sexual exploitation is one of the highest priorities of the Department of Justice and this Office. We will continue our partnership with our state, local, and federal law enforcement agents to ensure that offenders are prosecuted to the full extent of the law.”
Ms. Marsh had high praise for the Bay County Sheriff’s Office and agents of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE HSI) who assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Kathryn Risinger.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s 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 exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Murdo Man Indicted for Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Murdo, South Dakota man has been indicted by a federal grand jury for Possession of a Stolen Firearm and Possession of a Firearm by a Prohibited Person.
Shaun Sporrer, age 41, was indicted by a federal grand jury on April 2, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 2, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of 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 Sporrer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Jones County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Sporrer was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Mortgage Broker Pleads Guilty to Defrauding Financial InstitutionRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Gloria Arias (44, Weston) pleaded guilty today to making material misrepresentations to a financial institution. Arias faces a maximum penalty of 30 years in federal prison for her involvement in this mortgage fraud offense.
According to the plea agreement, Arias worked as a mortgage broker for Synergy Lending Group. The owner of Synergy Lending also owned and operated a real estate business (“Realty Alliance, LLC”) and a title agency (“Title Executives of Broward, Inc.”). In the summer of 2006, Realty Alliance was hired to market condominium units at The Arbors at Carrollwood (“The Arbors”). The Arbors is a 390-unit condominium complex located at 3939 Ehrlich Road in Hillsborough County. Synergy Lending was responsible for assisting prospective borrowers in obtaining financing from various mortgage lenders to purchase condo units at The Arbors. Arias used her role as a mortgage broker to ensure that borrowers were qualified for mortgage loans by including false information in their Uniform Residential Loan Applications. She falsely inflated gross monthly incomes, included bogus employment information, padded bank account balances, and added false primary residence designations.
Through Arias’ fraudulent activities, the following mortgage loans were obtained in connection with the purchase and sale of condo units at The Arbors:
Buyer Development Lender Loan Amount Sale after Foreclosure or Market Value Loss Amount W.Q.K.
The Arbors Countrywide Bank $155,358.00 $27,425.00 $127,933.00 The Arbors Countrywide Bank $146,448.00 $31,300.00 $115,148.00 O.C. The Arbors Countrywide Bank $218,426.00 $45,254.00 $173,172.00
TOTAL: $416,253.00This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Massive Joint Law Enforcement Operation Dismantles Southeastern Connecticut Heroin and Cocaine RingsRead the Press Release
Niantic, Conn. – In a massive operation headed by the U.S. Attorney’s Office for the District of Connecticut and Homeland Security Investigations in Connecticut, in partnership with federal, state and local law enforcement agencies, approximately one hundred individuals were arrested today on charges related to the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.
The announcement of this long-term investigation and today’s arrests was made by David B. Fein, U.S. Attorney for the District of Connecticut, Michael L. Regan, State’s Attorney for the Judicial District of New London, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in New England, Steven G. Hughes, Special Agent in Charge of U.S. Secret Service, New York Field Office, New London Police Chief Margaret Ackley, Norwich Police Chief Louis J. Fusaro, Sr., Colonel Danny R. Stebbins of the Connecticut State Police, and other members of federal, state and local law enforcement agencies who participated in the investigation and today’s operation.
This morning, more than 700 law enforcement officers involved in the operation executed scores of federal and state arrest and arrest warrants in Connecticut, New York, Rhode Island, Massachusetts and Puerto Rico. Approximately 52 individuals were arrested on federal narcotics and money laundering charges, and approximately 52 individuals were arrested on state narcotics and related charges. Additional defendants were previously arrested during the course of the investigation, and several individuals are currently being sought by law enforcement. The arrests stem from a 15-month investigation that included the use of court-authorized wiretaps on 15 telephones, extensive physical surveillance and controlled purchases and seizures of cocaine and heroin.
As alleged in criminal complaints filed in association with today’s arrests and unsealed today in U.S. District Court in New Haven, this investigation was initiated in early 2012 to combat narcotics-trafficking and money laundering in the City of New London. The investigation revealed two overlapping conspiracies centered in New London County, one involving heroin distribution and one involving cocaine distribution. The two conspiracies employed a variety of methods to import narcotics from the Dominican Republic and Puerto Rico into southeastern Connecticut, and involved scores of individuals who distributed wholesale amounts of drugs to customers in New London County.
In association with today’s arrests, law enforcement officers executed multiple search warrants and seized narcotics, firearms, cash and vehicles.
“We allege that the defendants arrested today were responsible for a very large percentage of the heroin and cocaine available for street sale in New London County,” said U.S. Attorney David Fein. “As is clear from this extensive and far-reaching investigation and today’s coordinated operation, we in federal, state and local law enforcement are committed to working together, across state and federal borders, to disrupt the flow of illegal narcotics and to identifying and seizing assets purchased with the proceeds of drug trafficking.”
“I would like to take the opportunity to express our office’s appreciation for the tireless work of the members of the US Attorney’s Office, Homeland Security, the Secret Service the Connecticut State Police and all of our local police departments – New London, Norwich, Waterford, Groton Town, Groton City, and East Lyme – in identifying and targeting this large scale narcotics trafficking enterprise in Southeastern Connecticut,” said Michael L. Regan, State’s Attorney for the Judicial District of New London. “The dedication of, and cooperation between, these agencies has been exemplary and is a credit to all.”
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Bruce M. Foucart, special agent in charge of HSI Boston. Foucart oversees HSI throughout New England. “Today we have stopped two criminal organizations from bringing significant quantities of heroin and cocaine into our communities in Connecticut and throughout New England. The result of this operation is nothing short of significant and it underscores what the people expect from law enforcement: Keep drugs out of our neighborhoods. These arrests will keep the citizens of New England safer from the inevitable violence that drug trafficking brings, and chokes off a major drug stream into Connecticut – the largest our agency has ever uncovered in the state's history.”
“The U.S. Secret Service is proud to have participated in the multi-agency criminal investigation leading to the arrests of over 100 suspects involved in this money laundering and narcotics scheme”, said Steven Hughes, Special Agent in Charge of the U.S. Secret Service New York Field Office. “Through a collaborative approach with New York and Connecticut based Secret Service Offices and in conjunction with Homeland Security Investigations, other federal agencies, Connecticut State Police, as well as several local police departments in the New London area, this case exemplifies how cooperation and strong partnerships have allowed us to focus our resources and respond quickly to uncover and prevent these types of crimes, whether they originate within or outside our borders.”
“This law enforcement operation is the culmination of a long-term investigation that was initiated by members of the New London Police Department, Department of Homeland Security and U.S. Secret Service,” said New London Police Chief Margret Ackley. The New London Police Department has dedicated numerous officers to this investigation, and an operation of this size is not possible without the assistance of our federal partners. I would like to take this opportunity to thank the dedicated officers of the New London Police Department and all of our federal partners for making this law enforcement operation possible and actively working to make our community a safer place.”
“The operation today shows the importance and the benefits of interagency cooperation,” said Norwich Police Chief Louis J. Fusaro, Sr. “When local, state, and federal law enforcement agencies all work together the resulting arrests speak for themselves. I am very pleased with the outcome of this law enforcement operation. The arrests made today and the prosecution of these individuals will have a huge effect on illicit activity in the City of Norwich and this region, now and into the future.”
“The Connecticut State Police is a proud participant in this significant investigation, which has targeted and disrupted the flow of narcotics into our state,” said Colonel Danny Stebbins of the Connecticut State Police. “The extraordinary teamwork of local, state and federal law enforcement contributed to today’s successful operation.”
The Heroin Conspiracy
As alleged, the investigation revealed that Luis Ariel Capellan Maldonado, also known as “Ariel,” regularly procured multi-kilogram quantities of heroin from the Dominican Republic and worked with several individuals to distribute the drug in southeastern Connecticut. Operating out of his apartment building on Hawthorne Drive in New London, Capellan Maldonado supplied customers with raw heroin, often in quantities of 50 to 150 grams. He also had access to kilogram quantities of cocaine and sometimes supplied cocaine to wholesale cocaine distributors in New London.
The investigation further revealed that Capellan Maldonado coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. He also obtained heroin from other sources in New York City and Rhode Island.
Capellan Maldonado, a citizen of the Dominican Republic, routinely sent thousands of dollars in drug proceeds back to the Dominican Republic.
The investigation further revealed that one of Capellan Maldonado’s associates, Enrique Luciano, also known as “Ipi,” supplied wholesale quantities of heroin and cocaine to Miguel Morales, also known as “Neow,” and others, who distributed heroin and cocaine to other wholesale distributors and street-level sellers in and around New London.
The Cocaine Conspiracy
As alleged, the investigation revealed that Pedro Rivera, also known as “Cheito,” of Groton, regularly obtained kilogram quantities of cocaine from sources in Puerto Rico. Rivera’s trusted associate, Luis Zayas, also known as “Guichan,” of Waterford, also was involved in the procurement of cocaine. Rivera, Zayas and their associates used a variety of methods to transport the cocaine from Puerto Rico to the United States, including the U.S. mail. Pedro Rivera and Zayas supplied other individuals, including Frankie Rivera, who used his business, PR Speedshop on Westwood Avenue in New London, to sell cocaine to street-level customers.
The investigation also identified Juan G. Cheverez, also known as “Guinchi,” of Groton as a narcotics trafficker who received kilogram-quantities of cocaine in the mail from Axel Matta Figueroa, also known as “Joelito,” in Puerto Rico. At times, Cheverez also obtained cocaine from Luis Zayas. Cheverez was assisted by others with distributing cocaine around New London and in transporting money to Puerto Rico.
The investigation further revealed that Oscar Valentin, also known as “Tato,” and his employees sold narcotics supplied by Pedro Rivera and others to customers from a garage Valentin managed at the intersection of Walker Street and Bristol Street in New London.
The federal defendants arrested today in Connecticut were transported to U.S. District Court in New Haven. Based on the quantity of narcotics involved in these conspiracies, the government is seeking pre-trial detention on the vast majority of the defendants who, if convicted, face mandatory minimum terms of imprisonment of five or ten years.
In addition to the defendants arrested today, during the course of the investigation, three individuals were previously arrested and charged with federal firearms offenses, and five individuals were previously arrested and charged with state narcotics violations.
U.S. Attorney Fein stressed that a complaint is only a charge and not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations; United States Secret Service; United States Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Marlon Jenerro Green Pleads Guilty to Threatening Veterans Affairs EmployeesRead the Press Release
JANICE STAVES, age 57, a resident of New Orleans, and JAMES YOUNGBLOOD, age 69, a resident of New Orleans, pled guilty to conspiracy to commit public bribery in federal court today before United States District Court Judge Ivan L.R. Lemelle, announced U. S. Attorney Dana Boente.
According to court documents, STAVES was employed as a Purchasing Clerk for the Housing Authority of New Orleans (HANO) from 1992 until June 1, 2009. YOUNGLOOD also had previously worked at HANO from 1972 until 2003. Upon leaving HANO, YOUNGBLOOD formed and operated YOUNGBLOOD and YOUNGBLOOD Construction, LLC.
During the conspiracy, STAVES and YOUNGBLOOD figured out a way to embezzle money from HANO, which receives federal funding. In 2007, STAVES and YOUNGBLOOD discussed, telephonically and in person, that STAVES could get YOUNGBLOOD paid with HANO funds, for doing no work, and in return, YOUNGBLOOD provided kickbacks to STAVES. During this time frame, YOUNGBLOOD received HANO checks totaling $661,904.11, despite having performed no work. STAVES, deposited approximately $100,448.00 in cash from YOUNGBLOOD, into accounts that she controlled. YOUNGBLOOD would deposit his checks and then bring STAVES cash at the HANO office so that she would receive her portion. YOUNGBLOOD would bring the cash to her office in an envelope. They would meet in the parking lot, or in the parking lots of gas stations or restaurants close to the HANO office.
Legitimate HANO transactions mandated that requisition orders for jobs would come from a particular department, and would be routed to STAVES, who was then supposed to create a legitimate purchase order. The purchase order would then be routed to supervisors for proper approval, and a check would be issued from Accounts Payable after receiving the required supervisor signatures. However, these procedures were not followed. Also, STAVES and YOUNGBLOOD took advantage of the fact that some smaller vendors were allowed to receive prepaid checks to facilitate the payment of workers. STAVES also did not ask for nor receive any requisition orders on jobs purportedly done by YOUNGBLOOD, as no work had been done.
In order to work around HANO’s procedures, STAVES would create fake purchase orders for YOUNGBLOOD and request a prepaid check. The fraudulent purchase order was usually for debris removal and/or supplies, such as locks.
Both defendants face a maximum term of imprisonment of five (5) years, as well as a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment. Sentencing is set for Wednesday, July 10, 2013 at 2:00pm.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the United States Department of Housing and Urban Development, Office of the Inspector General. The prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Factual Basis - Staves )
(Download Factual Basis - Youngblood )
Marlon Jenerro Green Pleads Guilty to Threatening Veterans Affairs EmployeesRead the Press Release
MARLON JENERRO GREEN, age 41, of New Orleans, Louisiana, pleaded guilty before U.S. District Judge Ivan L.R. Lemelle to one count of making threatening communications announced U. S. Attorney Dana J. Boente.
According to court documents, GREEN is a U.S. military veteran receiving monthly benefits from the United States Department of Veterans Affairs (VA) who called the VA office in New Orleans on May 24, 2011 and threatened to kill an employee over a dispute regarding his VA benefits.
GREEN will be sentenced on July 10, 2013, and faces a maximum term of imprisonment of five (5) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment as to each count of the indictment.
The case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Gregory M. Kennedy.
(Download Factual Basis )
Margate City Commissioner Indicted on Federal Bribery ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the unsealing of a three-count indictment charging David McLean, 50, a City Commissioner for the City of Margate and a board member on the Margate Community Redevelopment Agency Board (MCRA), with bribery in connection with programs receiving federal funds. McLean made his initial appearance in federal court this morning before U.S. Magistrate Judge Lurana Snow in Fort Lauderdale. If convicted, the defendant faces a maximum statutory sentence of up to 10 years on each count.
The indictment charges defendant David McLean with three counts of bribery in connection with a program receiving federal funds, in violation of Title 18, United States Code, Section 666. More specifically, the indictment alleges that on May 25, 2012, McLean, while a Margate city commissioner, knowingly and corruptly accepted $1,000 in cash and an $8,000 release of back rent, in exchange for his influence in connection with the award of a Margate occupational license (Count 1). The indictment further alleges that on November 2, 2012, McLean accepted $3,000 in cash in exchange for his influence in connection with a $25,000 MCRA construction grant (Count 2). Lastly, the indictment alleges that on January 30, 2013, McLean accepted another $2,000 in cash in exchange for his influence in connection with the $25,000 MCRA construction grant.
U.S. Attorney Wifredo Ferrer stated, “Public officials who sell their office and their influence to line their own pockets with cash undermine the good work of all hard-working public servants, who labor for the public good. That is why corruption in government, at any level, will simply not be tolerated.”
“Investigating public corruption remains one of the FBI’s top priorities. This indictment represents our commitment to investigate corrupt acts and the individuals who are behind them,” said Assistant Special Agent in Charge Scott A. Gilbert, FBI Miami Division. “We encourage anyone who may have information about corruption to come forward and report it.”
Mr. Ferrer commended the investigative efforts of the FBI. The case is being handled by Assistant U.S. Attorney Neil Karadbil.
An indictment is only an accusation and a defendant is presumed innocent unless proven guilty.
Attachments:
Indictment (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Guilty Plea from Former Goldman Sachs Vice President for Fraudulently Amassing and Concealing Trading PositionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that MATTHEW TAYLOR pled guilty today in Manhattan federal court to wire fraud in connection with a scheme to accumulate and conceal an unauthorized trading position in an account that TAYLOR managed at Goldman, Sachs & Co. (“Goldman Sachs”). TAYLOR was formerly a vice president at Goldman Sachs and a trader on Goldman Sachs’s Capital Structure Franchise Trading (“CSFT”) desk. He pled guilty today before U.S. District Judge William H. Pauley III.
According to the Information filed in Manhattan federal court:
While employed at Goldman Sachs as a vice president, TAYLOR was a member of the CSFT desk and was responsible for a trading account called the CSFT Equity Volatility Portfolio (the “Trading Account”), which included trading in equity derivatives products. Among the products that TAYLOR traded on the CSFT desk were Standard & Poor’s E-mini futures contracts (“S&P E-mini futures”), which are futures contracts tied to the S&P 500 stock index. TAYLOR traded in S&P E-mini futures using an electronic trading platform called “Globex.”
In November 2007, TAYLOR had lost a significant portion of the profits that he had accumulated in the Trading Account earlier that year. As a result, he was instructed by his supervisors to reduce the overall risk in the Trading Account. These supervisors had also previously informed TAYLOR and other traders on the CSFT desk about risk limits for the CSFT desk and acceptable risk levels and trading limits.
Despite these instructions to reduce the risk in the Trading Account, on December 13, 2007, TAYLOR significantly increased the notional value of his long position in S&P E-mini futures by entering a series of electronic trades through Globex. In so doing, he amassed a position that far exceeded all trading and risk limits set by Goldman Sachs, not only for individual traders, but for the entire CSFT desk. TAYLOR increased the profitability of the Trading Account in order to restore his professional reputation with Goldman Sachs and to increase his performance-based compensation.
At the same time that TAYLOR increased his S&P E-mini futures position, he actively concealed this position from others at Goldman Sachs. He recorded multiple false entries for S&P E-mini futures trades that he never made in a manual trade entry system (the “Manual Trade Entry System”), which was typically intended to be used by traders for recording trades that – unlike S&P E-mini futures – could not be executed through the Globex electronic trading platform. TAYLOR recorded multiple false trading entries in the Manual Trade Entry System that were in the opposite direction of the electronic trades he made in the Trading Account. Where TAYLOR purchased S&P E-mini futures in the Trading Account via Globex, he then manually entered fictitious S&P E-mini futures sales in the Manual Trade Entry System. The purpose of entering these fabricated trades was to conceal and understate the true size of the S&P E-mini futures position within the Trading Account, as the fictitious sales functioned to offset portions of TAYLOR’s actual purchases.
In addition, at the end of the trading day on December 13, 2007, TAYLOR prepared a false profit and loss report for the Trading Account (the “December 13, 2007 P&L Report”) that served to conceal his actual oversized position and market risk. He then forwarded the December 13, 2007 P&L Report to his supervisors and others at Goldman Sachs. By the morning of December 14, 2007, however, various employees at Goldman Sachs had detected a significant discrepancy between TAYLOR’s actual position in the Trading Account and what TAYLOR had falsely reported in the December 13, 2007 P&L Report. In response to questioning from these employees, TAYLOR made various false statements about his position and risk in the Trading Account. His fraudulent scheme resulted in significant losses to Goldman Sachs.
TAYLOR, 34, of West Palm Beach, Florida, is charged with one count of wire fraud. This count carries a maximum sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. He is scheduled to be sentenced before Judge Pauley on July 26, 2013 at 11:30 a.m.
Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Commodity Futures Trading Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Steve Lee is in charge of the prosecution.
U.S. v. Matthew Taylor Information
Man Charged with Sexual Assault of A Minor on Cruise ShipRead the Press Release
GALVESTON, Texas – Todd Eric Nordahl, 49, of Tucson, Ariz., has been arrested on charges that he had sexual contact with a minor while in the special maritime and territorial jurisdiction of the United States, United States Attorney Kenneth Magidson announced today.
Nordahl was arrested Sunday, March 31, 2013, after the cruise ship returned to port. He is set for a probable cause hearing before U.S. Magistrate Judge John R. Froeschner Thursday at 2:00 p.m.
According to the criminal complaint, on or about March 27, 2013, Nordahl knowingly engaged in sexual contact with a boy he knew to be a minor.
The case arose after a Royal Caribbean security officer contacted the FBI, reporting allegations made by a 15-year-old boy on board the Mariner of the Seas while in international waters.
Nordahl allegedly provided an alcoholic beverage to the minor victim and purportedly made sexual advances toward him. After a brief period of “cuddling,” Nordahl performed oral sex on the minor boy, according to the criminal complaint.
The FBI investigated with the cooperation of Royal Caribbean Cruise Lines. Assistant United States Attorney Sherri. L. Zack is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Livery Fleet Owner Found Guilty in Manhattan Federal Court in Multi-Year Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SCOTT ERIC SANDERS was found guilty yesterday on all counts against him in an Indictment charging him with participating in a long-running automobile insurance fraud scheme and aggravated identity theft. As part of the scheme, SANDERS, who owns fleets of commercial vehicles, systematically misled insurance companies as to where the vehicles he owned and controlled were garaged and operated, and how those vehicles were being used, so that he could obtain automobile insurance for those vehicles at substantially lower premiums. SANDERS was convicted after a four-week jury trial before U.S. District Judge Lewis A. Kaplan.
According to evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
In New York State, owners of fleets of commercial vehicles, including livery cars and ambulettes, are required to obtain commercial automobile liability and physical damage insurance coverage. The insurance policy premiums are based, in part, on where the insured vehicles are garaged and operated, as well as how the vehicles are used. Vehicles that are principally garaged or operated in New York City are charged a substantially higher premium than vehicles that are principally garaged or operated elsewhere. Vehicles that are primarily used as livery cabs are charged a substantially higher insurance premium than vehicles that are operated for many other commercial purposes. Owners of livery fleets obtain automobile insurance through the voluntary insurance market or, when they are unable to obtain insurance through the voluntary market, through the New York Automobile Insurance Plan (“NYAIP”). The NYAIP assigns policy applications to insurance carriers doing business in New York State, who are then required to provide insurance coverage to the applicant.
From 2005 through 2010, SANDERS controlled fleets of livery cars that were garaged and operated in New York City. During that time period, SANDERS engaged in a widespread conspiracy to defraud automobile insurance companies in order to obtain automobile insurance for his vehicles at lower premiums by misrepresenting where the vehicles were garaged and operated, and in some instances, how those vehicles were being used. SANDERS caused insurance applications to be submitted to both NYAIP and directly to insurance companies that claimed his vehicles were garaged and operated outside of New York City, when they were not. In addition, on some of those applications, he represented that his vehicles were being used for commercial purposes other than as livery vehicles when they were in fact being used as livery vehicles. In addition, in some of these applications, SANDERS falsely listed other people as the presidents and owners of his companies to conceal his ownership and control of those companies. Relying on these misrepresentations, the insurance companies issued insurance policies for the vehicles controlled by SANDERS at lower premiums than those for which they would have been eligible had the insurance companies been aware of the true locations of garaging, operation, and true use of these vehicles.
In addition, as part of the same scheme, SANDERS helped other commercial fleet owners whose vehicles operated in New York City obtain insurance at lower premiums using the same misrepresentations about how those vehicles were being used and where those vehicles were being garaged and operated. Over the course of his scheme, insurance companies lost millions in premiums that they would have otherwise charged had they been provided accurate garaging, operating, and usage information about the vehicles.
SANDERS was convicted of one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, and one count of aggravated identity theft.
SANDERS, 41, of Saddle River, New Jersey, faces a maximum sentence of 120 years in prison on the seven fraud counts and a mandatory consecutive sentence of two years in prison for the aggravated identity theft count. In addition, he faces a maximum fine of at least $1.5 million and forfeiture of the proceeds of the crime. SANDERS is scheduled to be sentenced by Judge Kaplan on July 9, 2013.
Mr. Bharara praised the United States Postal Inspection Service for its outstanding work in the investigation. Mr. Bharara also thanked the NYAIP and the National Insurance Crime Bureau for their assistance.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Paul Krieger and Brent Wible are in charge of the criminal case.
Lapwai Man Pleads Guilty to AssaultRead the Press Release
COEUR D'ALENE – Paris Channing Leighton, 41, of Lapwai, Idaho, pleaded guilty today in United States District Court to assault resulting in serious bodily injury, U.S. Attorney Wendy J. Olson announced.
According to court statements, Leighton admitted that on May 18, 2012, he punched or kicked his girlfriend at their residence in Lapwai. The victim was taken to the hospital where a CT scan revealed that Leighton had caused the victim to suffer facial fractures
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for June 24, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Nez Perce Tribal Police and the Federal Bureau of Investigation.
Kentucky Attorney Sentenced to Prison for Stealing More Than Half A Million Dollars from Disabled VeteranRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Brian P. Gilfedder, 65, of Lexington, Kentucky was sentenced in the Eastern District of Kentucky to serve 41 months in federal prison for stealing $639,618.43 in VA and Social Security benefits from a disabled veteran over a 20-year period.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Quentin G. Aucoin, Special Agent in Charge, Department of Veterans Affairs Office of Inspector General Southeast Field Office (VA-OIG), announced the sentence handed down yesterday by U.S. District Judge Danny C. Reeves in the Eastern District of Kentucky.
According to court documents, Gilfedder pleaded guilty to a one-count bill of information charging him with devising a scheme to defraud, embezzle, steal, and knowingly convert $639,618.43 in VA and Social Security benefits paid out to an incompetent veteran. Gilfedder, licensed to practice law at the time he was appointed fiduciary by the VA in 1990, was responsible for managing the disabled veteran’s financial affairs. Gilfedder admitted that he stole the veteran’s money between January 1991 and August 2011, putting it to his own use and taking it with the intent to deprive the owner of the use or benefit of the money. He was charged with submitting altered VA documents along with fraudulent accountings to VA in order to conceal the theft.
Gilfedder agreed to forfeit his license to practice law in the State of Kentucky as part of his plea agreement. He was also sentenced to serve 3 years of supervised release upon his release from prison and was ordered pay restitution to the VA and Social Security Administration totaling $639,618.43.
The VA fiduciary program was established to protect Veterans and other beneficiaries who, due to injury, disease, or age, are unable to manage their financial affairs. Upon determining a veteran is unable to manage his or her financial affairs, VA will appoint a fiduciary. The fiduciary, normally chosen by the veteran, must undergo an investigation of their suitability to serve. Only after a complete investigation is a fiduciary appointed to manage a veteran’s VA benefits. The fiduciary is responsible to the veteran and oversees the financial management of VA benefit payments. Generally, family members or friends serve as fiduciaries for beneficiaries; however, when friends and family are not able to serve, VA looks for other qualified individuals such as attorneys to serve as a veteran’s fiduciary.
Special Agent in Charge Quentin G. Aucoin stated, “The VA Office of Inspector General is dedicated to aggressively investigating individuals who misuse their fiduciary authority to embezzle VA funds from the incompetent veterans placed under their care.”
“Protecting our nation’s veterans must remain a high priority endeavor,” Stewart said. “Especially disturbing is the act of inflicting intentional harm of any kind upon a disabled or otherwise vulnerable veteran.”
Stewart commended the investigative efforts of the VA-OIG Nashville Resident Agency, along with the assistance of the Social Security Administration Office of Inspector General and the Louisville, Kentucky VA Fiduciary Hub, and Special Assistant U.S. Attorney Kenneth L. Parker, who prosecuted the case.
Jesse Shaderic Wall, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 3, 2013, before U.S. District Judge Jeremiah C. Lynch, JESSE SHADERIC WALL, Jr., a 66-year-old resident of Kalispell, pled guilty to wire fraud. Sentencing has been set for July 12, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
At the time of the crimes referenced in the Indictment, WALL was a CPA in the Kalispell area. Beginning in 2008, WALL made material misrepresentations to RBM Lumber Company to induce the company to invest $350,000 with him. One RBM executive explained to law enforcement that WALL was the company's accountant and that he offered to invest some of RBM's money in mediums that would produce a higher rate of return than RBM could get from a bank. RBM agreed and began providing WALL with various sums of money at various times. According to the RBM representative, WALL created a Nevada corporation called Milestone Innovations, Inc., and the money that RBM provided WALL was invested on behalf of that Nevada entity.
WALL used the money he obtained from RBM on his struggling business, as opposed to depositing it into any interest-bearing investments. RBM's expectation was that the money would be readily available should the company need it and WALL was not given authority to tie the funds up for any extended period of time. But in February 2011, when RBM asked WALL to return the money, he was unable to do so. He told RBM that the money was invested in real estate, which was not true. In reality, WALL had spent the RBM money but was hoping to sell his house in the coming months and planned to use the proceeds from that sale to pay RBM. WALL did repay $190,000 to RBM in June 2011.
WALL was interviewed by a Secret Service agent on December 29, 2011. During the interview, WALL expressed a desire to pay RBM back, but also said he "perhaps did say something misleading to them," to induce them to part with their money.
Count I of the Indictment involved a check that WALL wrote on July 1, 2009, from a Wells Fargo Bank account in the name of Milestone Innovations, Inc., for $12,500. The check was written to "Jesse S. WALL, CPA PC," and deposited into WALL's business account at West One Bank. That deposit caused a wire communication in interstate commerce between Wells Fargo Bank in Montana and a federal reserve bank outside Montana.
WALL faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Secret Service
Intermountain Health Care Inc. Pays U.S. $25.5 Million<br /> to Settle False Claims Act AllegationsRead the Press Release
Intermountain Health Care Inc. has agreed to pay the United States $25.5 million to settle claims that it violated the Stark Statute and the False Claims Act by engaging in improper financial relationships with referring physicians, the Justice Department announced today. Intermountain operates the largest health system in the state of Utah.
The Stark Statute restricts the financial relationships that hospitals may have with doctors who refer patients to them. The relationships at issue in this matter that the United States alleged were prohibited by the Stark Statute included employment agreements under which the physicians received bonuses that improperly took into account the value of some of their patient referrals; and office leases and compensation arrangements between Intermountain and referring physicians that violated other requirements of the Stark Statute. These issues were disclosed to the government by Intermountain.
“The Department of Justice has longstanding concerns about improper financial relationships between health care providers and their referral sources, because such relationships can corrupt a physician's judgment about the patient's true healthcare needs,” said Stuart F. Delery, Acting Assistant Attorney General for the Department’s Civil Division. “In addition to yielding a recovery for taxpayers, this settlement should deter similar conduct in the future and help make health care more affordable for patients.”
“People should expect that hospitals and doctors care more for their patients than their bottom line profits,” said Gerald Roy, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services region including Utah. “So I applaud Intermountain for recognizing their liability and coming forward to self-disclose these violations. We will vigilantly protect taxpayer-funded health programs against Stark violations through tight coordination with our partners at the Department of Justice.”
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
The case was handled by the Justice Department’s Civil Division, the United States Attorney’s Office for the District of Utah, the Office of Inspector General of the Department of Health and Human Services and the Centers for Medicare and Medicaid Services. The claims settled by this agreement are allegations only, and there has been no determination of liability.