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Tuesday 2 April 2013
Ryan James Parker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 1, 2013, before U.S. District Judge Sam E. Haddon, RYAN JAMES PARKER, a 26-year-old resident of Box Elder and an enrolled member of the Rocky Boy's Indian Reservation, was sentenced to a term of:
Prison: 37 months
Special Assessment: $100
Restitution: $3,998
Supervised Release: 3 years
PARKER was sentenced in connection with his guilty plea to involuntary manslaughter.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On June 14, 2012, near Box Elder on the Rocky Boy's Indian Reservation, PARKER caused a collision between the vehicle he was driving and another vehicle in which an individual died.
PARKER was intoxicated at the time of the collision. According to tribal law enforcement, PARKER was arrested immediately following the collision and given a Breathalyzer test. The result showed his blood alcohol content was .25. The Airbag Control Module report indicated that PARKER was driving 91 mph at -5 seconds prior to the collision and 63 mph at -2 seconds prior to the collision. The posted speed limit on this area was 35 miles per hour.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PARKER will likely serve all of the time imposed by the court. In the federal system, PARKER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by a cooperative effort between the Montana Highway Patrol, the Federal Bureau of Investigation, and the Chippewa Cree Law Enforcement.
Rochester Man Arrested in Connection with Drug and Gun SalesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Luis Guzman, 23, of Rochester, N.Y., was arrested and charged by criminal complaint with distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime. The firearm charge carries a maximum penalty of life in prison, a fine of $250,000 or both and the drug charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the complaint, the defendant sold heroin and firearms during two controlled buys by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rochester Police Department in December 2012 and January 2013. One of the firearms purchased was a firearm stolen in November 2012 from Tom's Guns and Ammo, a Federal Firearms Licensee located in Sodus, New York.
The complaint is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Scott Heagney and the Rochester Police Department, under the direction of Chief James Sheppard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Rapid City Man Pleads Guilty to Failure to RegisterRead the Press Release
United States Attorney Brendan V. Johnson announced that Benjamin Godfrey Chipps Jr., age 33, of Rapid City, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 27, 2013 and pled guilty to Failure to Register. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
Between November 4, 2012 and December 13, 2012, Chipps failed to update his sexual offender registration as required. The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Quad Cities Man Sentenced to 30 Years Imprisonment for Armed Bank RobberyRead the Press Release
DAVENPORT, IA – On April 1, 2013, Eric Martin, age 35, was sentenced to 30 years imprisonment for armed bank robbery, possessing a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Martin to five years supervised release and ordered Martin to pay $53,369 in restitution to the victim banks.
On April 23, 2012, at approximately 9:30 a.m. Martin entered the Hills Bank and Trust of Iowa City, wearing a mask, and armed with a loaded black, semi-automatic Jiminez Arms 9mm handgun. Martin pointed the gun at the tellers, demanded money from the teller drawers, and took approximately $23,295.00. Martin then fled on a motorized dirt bike, and led law enforcement on a lengthy vehicle pursuit through residential neighborhoods, where he was apprehended with the stolen money and the firearm. During the six months leading up to the robbery, Martin had also robbed the U.S. Bank and the Midwest One Bank in Iowa City in similar fashion.
This case was investigated by the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Quad Cities Area Man Sentenced to 6 Months Imprisonment and 6 Months Home Confinement for Preparing False AppraisalsRead the Press Release
DAVENPORT, IA – On April 1, 2013, Michael Saad, age 49, was sentenced to 6 months imprisonment followed by 6 months home confinement for willfully overvaluing property for the purpose of influencing a federally insured credit union, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Saad to two years supervised release, and ordered Saad to pay $131,575.06 in restitution to Deere Harvester Credit Union.
Beginning in April 2007 and continuing until December 2007 Saad knowingly inflated the values of properties that he appraised in an effort to justify higher mortgage loans for borrowers. Saad misrepresented the square footage, age, number of bedrooms, number of bathrooms, and other information associated with the subject properties, and the comparable properties listed in his appraisals.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Prevea Clinic, Inc. Agrees to Civil Settlement of $94,000.00 to Resolve False Claims Act AllegationsRead the Press Release
United States Attorney James L. Santelle for the Eastern District of Wisconsin announced today that the United States has reached a civil settlement with the Prevea Clinic, Inc., resolving allegations that Prevea submitted false claims to the Medicare Program. The amount of the settlement is $94,000.00.
Prevea provides health care services in northeastern Wisconsin through a group of clinics that employ physicians and other health care providers. The civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud to bring a civil action on behalf the United States and to share in any recovery. As part of the resolution, the whistleblowers will receive a share of the settlement.
The qui tam complaint, alleges that Prevea submitted false claims to the Medicare Program for the services of an assistant surgeon during neurosurgery procedures between January 1, 2005 to November 20, 2010. The services of an assistant surgeon will be paid for by Medicare if the assistant surgeon has certain, specified credentials. It was alleged Prevea submitted claims for assistant surgeon services by an employee that did not have the credentials required by Medicare and submitted the claims for those services using another individual’s provider number and credentials. Prevea denied the allegations.
This case was investigated by Special Agents from the Federal Bureau of Investigation and prosecuted by Deputy Civil Division Chief Stacy Gerber Ward.
Pretty Prairie Woman Pleads Guilty to Health Care FraudRead the Press Release
TOPEKA, KAN. – A woman from Pretty Prairie, Kan., who fraudulently received payments from the Kansas Medicaid program to care for her sister with Downs Syndrome has pleaded guilty to federal health care fraud charges, U.S. Attorney Barry Grissom said today.
Lupe Adela Mains, 46, Pretty Prairie, Kan., pleaded guilty to one count of health care fraud and one count of mail fraud. In her plea, she admitted that from Oct. 1, 2007, to March 31, 2009, she received Medicaid funds for providing supportive home care services to her sister even though she had ceased to provide those services. In fact, Mains’ sister was being cared for by another family member in Wichita during that time.
In addition, Mains admitted that she fraudulently continued to collect her sister’s Railroad Retirement Board survivor disability benefits. Mains failed to disclose to the Railroad Retirement Board that her sister was no longer in her care.
Sentencing is set for July 1. The parties have agreed to recommend a sentence of one month incarceration, 13 months community confinement and restitution of $50,242. Grissom commended the Medicaid Fraud And Abuse Division of Kansas Attorney General Derek Schmidt’s office, Special Assistant U.S. Attorney Stefani Hepford and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Presho Man Pleads Guilty to Possession of Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Clint Brown, age 36, of Presho, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 1, 2013 and pled guilty to Felon and Drug User in Possession of a Firearm. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
In 2004, Brown had previously been convicted of 3 felony offenses arising out of conduct occurring in Lyman County and Pennington County. On August 17, 2012 Brown was arrested by state authorities and it was determined he possessed two firearms, a 12-gauge shotgun and a 22-caliber rifle. It was also determined that he had been using methamphetamine, and numerous items of drug paraphernalia were found in his Lyman County home. State charges are still pending in Lyman County related to the August 17, 2012 arrest.
The investigation was conducted by the Lyman County Sheriff’s Office, the South Dakota Division of Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Forensic Laboratory, the South Dakota Public Health Laboratory, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Timothy M. Maher and Kathryn Rich.
A presentence investigation was ordered and a sentencing date was set for June 12, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Presho Man Pleads Guilty to Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Clint Brown, age 36, of Presho, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 1, 2013 and pled guilty to Felon and Drug User in Possession of a Firearm. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
In 2004, Brown had previously been convicted of 3 felony offenses arising out of conduct occurring in Lyman County and Pennington County. On August 17, 2012 Brown was arrested by state authorities and it was determined he possessed two firearms, a 12-gauge shotgun and a 22-caliber rifle. It was also determined that he had been using methamphetamine, and numerous items of drug paraphernalia were found in his Lyman County home. State charges are still pending in Lyman County related to the August 17, 2012 arrest.
The investigation was conducted by the Lyman County Sheriff’s Office, the South Dakota Division of Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Forensic Laboratory, the South Dakota Public Health Laboratory, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Timothy M. Maher and Kathryn Rich.
A presentence investigation was ordered and a sentencing date was set for June 12, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Pittsburgh Man Charged with Escape from Federal CustodyRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of escape from custody, United States Attorney David J. Hickton announced today.
The one-count indictment named Alfonso Evans, 23, of Pittsburgh, as the sole defendant.
According to the indictment, Evans escaped from federal custody on Sept. 29, 2012.
The law provides for a maximum total sentence of not more than five 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 offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the United States Marshals Service conducted the investigation that led to the prosecution of Alfonso Evans.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Ridge Man Pleads Guilty to Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Daniel Thomas, age 30, of Pine Ridge, South appeared before U.S. Magistrate Judge Veronica L. Duffy on March 27, 2013 and pled guilty to Felon in Possession of a Firearm. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
On July 23, 2012 at Red Shirt, Thomas, a previously convicted felon, illegally possessed a Colt Cobra .38 caliber revolver. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Pho Danh Restaurant Owner Pleads Guilty to Filing False Tax ReturnRead the Press Release
HOUSTON – Danh Ngoc Nguyen, co-owner of Pho Danh Restaurant in Houston, has entered a plea of guilty to filing of a false federal income tax return, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). The plea was entered late yesterday.
Nguyen co-owned and operated a Pho Danh Restaurant at 11209 Bellaire Boulevard in Houston during 2003 through 2006. Nguyen admitted in the plea agreement to filing false federal income tax returns for the restaurant and for himself for each of those years that understated both the income of the restaurant and his personal income from the restaurant by approximately $240,356. As part of his plea, Nguyen has agreed to make full restitution to the Internal Revenue Service (IRS) estimated to be at least $526,157 and to remain subject to additional IRS assessments of taxes, interest and penalties due as result of these offenses.
U.S. District Judge Lynn N. Hughes set a sentencing date of April 1, 2014, at which time Nguyen faces up to three years imprisonment and a criminal fine of up to $250,000.
IRS-CI investigated and Assistant United States Attorney Jimmy Sledge Jr. is prosecuting the case.
Patient Recruiter for Miami Home Health Company Sentenced to 36 Months in $20 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter for a Miami health care company was sentenced yesterday to serve 36 months in prison for his participation in a $20 million home health Medicare fraud scheme, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Vladimir Jimenez, 43, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Jimenez was sentenced to serve two years of supervised release and ordered to pay $950,000 in restitution, jointly and severally with co-defendants.
In January 2013, Jimenez pleaded guilty to one count of conspiracy to receive health care kickbacks.
According to court documents, Vladimir Jimenez was a patient recruiter who worked for Serendipity Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately April 2007 through approximately March 2009, Jimenez recruited patients for Serendipity, and in doing so solicited and received kickbacks and bribes from the owners and operators of Serendipity in return for allowing Serendipity to bill the Medicare program on behalf of the patients Jimenez had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
From approximately January 2006 through March 2009, Serendipity submitted approximately $20 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $14 million for these fraudulent claims.
As a result of Jimenez’s participation in the illegal scheme, the Medicare program was fraudulently billed more than $400,000 for purported home health care services.
In a related case, on June 21, 2012, Ariel Rodriguez and Reynaldo Navarro, the owners and operators of Serendipity, were sentenced to 73 and 74 months in prison, respectively, following guilty pleas in March 2012 to one count each of conspiracy to commit health care fraud.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Owner of Miami-Dade Wholesale Distributing Company Sentenced in Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that defendant David Bradman, 54, of Miami, was sentenced yesterday afternoon to 12 months and 1 day in prison, to be followed by 1 year of supervised release for his role in a tax fraud scheme. The court also ordered Bradman to perform 200 hours of community service during supervised release. A restitution hearing is scheduled for June 3, 2013. Bradman had previously pled guilty to one count of making false income tax returns for an S Corporation, Forms 1120S, in violation of Title 26 U.S.C § 7206(1) for tax year 2005.
According to statements made in court and documents filed in the case, Bradman was the sole owner and operator of Diplomat Trading, Inc., in Miami, Florida. The company was a wholesale distributor of consumer electronics that exported merchandise to Latin America. In 2000, a scheme was devised in which the defendant and others set up a Panamanian corporation, CHF Electronics (CHF), and opened a bank account in the company’s name in Panama. Thereafter, on October 20, 2002, a false note was created to make it appear as though Diplomat Trading had borrowed $6,301,008.16 from CHF Electronics. The note was signed by Bradman. Checks representing purported payments on this note were sent from Diplomat Trading to CHF Electronics. Bradman inflated the amounts listed as mortgages, notes and bonds payable, and the corresponding interest deductions, in his tax returns for his S Corporation, Forms 1120S, in the name of Diplomat Trading, Inc. Bradman created the illusion of a bona fide commercial business relationship between Diplomat Trading and CHF Electronics. In fact, however, Bradman controlled both Diplomat Trading and CHF Electronics, and knew that these two companies did not have a genuine commercial business relationship.
In addition, according to documents filed with the court, Bradman used CHF Electronics to cycle money for his personal use. In 2005, Bradman had a second company, MDA Inversiones, incorporated in Panama. Approximately $700,000 was moved from CHF’s bank account in Panama to a Panamanian bank account for MDA Inversiones. A majority of those funds were then wired to the United States so that Bradman could purchase two properties in Miami, Florida.
Mr. Ferrer commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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.
Navajo Man Sentenced to 180 Months Imprisonment for Sexual AbuseRead the Press Release
PHOENIX – On April 1, 2013, Kelbert Jay Nez, 22, of Leupp, Ariz., was sentenced by U.S. District Judge G. Murray Snowto 180 months imprisonment. Nez pleaded guilty to sexual abuse.
Nez was charged by indictment with two counts of aggravated sexual abuse of a minor, pursuant to 18 U.S.C. § 2241(c) and one count of sexual abuse, pursuant to pursuant to 18 U.S.C. § 2242(2). The charges in the indictment addressed the sexual abuse of two minor victims, ages 10 and 13 at the time of the abuse. The offense occurred on the Navajo Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution is being handled by Cassie Bray Woo, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8103-PCT-GMS
RELEASE NUMBER: 2013-026_NezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Nashville Woman Admits Theft of $360,000 in Federal Grant Funds Intended to Aid VeteransRead the Press Release
Birdie Anderson, 54, of Nashville, Tennessee, pleaded guilty yesterday in federal court to charges that she made false statements to the Department of Veterans Affairs (VA) to obtain an $80,000 federal grant and that she had converted over $280,000 in additional VA grant funds, for her own personal use, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
Anderson admitted that during 2007 and 2008 she made false representations when applying for a federal grant that provided money for a mortgage and for the purchase of real property that would be used to house indigent veterans. She admitted that she pocketed around $25,000 of the $80,600 in cash that the VA gave her to buy the property. Anderson subsequently failed to make the mortgage payments, which resulted in foreclosure and loss of the property as a source of veteran housing.
Anderson further admitted to receiving an additional $280,000 in VA grant funds between 2008 and 2013, by representing that she would use the money to purchase a specialty van to provide transportation for indigent veterans, and an apartment building for additional veteran housing. However, she never purchased either. The funds were electronically deposited into Anderson’s bank account, but are no longer there.
“This egregious fraud inflicted a significant double injury to tax payers in general, and to veterans specifically,” said U.S. Attorney Jerry E. Martin. “Fraud and abuse of any federal program is harmful, particularly given the current funding crisis that the United States faces. Program fraud is even more damaging when the programs affected are designed to help our needy veterans. The taxpayers’ money that Anderson fraudulently obtained in this case is gone, so it will provide no benefit to the veterans it was intended for. We will ask the court to impose a sentence that accurately reflects the harm that this defendant inflicted.”
“The VA- Office of Inspector General is dedicated to aggressively investigating thefts of funds from VA programs, including those established to assist homeless veterans,” added Quentin G. Aucoin, Special Agent in Charge of the VA- Office of Inspector General.
During the investigation, Anderson claimed that she still had the money, which was in a safe in New Hampshire. Despite that claim, Anderson has refused demands from the VA to return the money and has since formally withdrawn from participation in the grant programs for which the funds were provided.The charges carry a combined maximum of 15 years in prison, fines of up to $500,000, and forfeiture of any money or substitute property that Anderson possesses, up to the amount or value of the VA funds that she misappropriated.
United States District Judge Todd J. Cambpell has set sentencing for June 17, 2013.
The case was investigated by the VA- Office of Inspector General. The government is represented by Assistant U.S. Attorney Hilliard Hester.Multi-Jurisdiction Operation Nets Nine Arrests for Alleged Methamphetamine Related CrimesRead the Press Release
United States Attorney Danny C. Williams, Sr., announced today that a federal Grand Jury returned Indictments against two individuals for Conspiracy and Possession of More Than 500 Grams of Methamphetamine With Intent to Distribute.
The Indictments named Gonzalo Ponce-Arturez, age 35, from Austin, Texas, and Raven Frederick-Holmes, age 31, from Tulsa, Oklahoma, as defendants. If convicted, each defendant faces a sentence of not less than 10 years and up to life imprisonment. Parole has been abolished in the Federal system.
The charges are the result of a multi-jurisdictional operation that included contributions from agents and officers associated with the Cherokee Nation Marshals Service, Rogers County District Attorney’s Office Investigators, Catoosa Police Department, Rogers County Sheriff’s Office, Federal Bureau of Investigation, Drug Enforcement Administration and Bureau of Indian Affairs. The coordinated investigative effort netted a total of nine arrests related to drug trafficking crimes in Rogers County and elsewhere in the Northern District of Oklahoma.
The United States Attorney’s Office for the Northern District of Oklahoma and the Rogers County District Attorney’s Office will coordinate the prosecutions of those individuals arrested. The prosecutions of Ponce-Arturez and Fredrick-Holmes will proceed in the United States District Court for the Northern District of Oklahoma. The seven other individuals who were arrested will be charged and prosecuted in Rogers County District Court. Those individuals include: John Hunt, age 68, Gene Miller, age 53, Shelley Boothe, age 30, Carl Fogleman, age 30, Ayla Jones, age 20, Charles Yahola, age 24, and John Cooper, age 34.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent until and unless proven guilty at later criminal proceedings.
Mendota Heights Man Sentenced for Possessing MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 43-year-old Mendota Heights man was sentenced for possessing with intent to distribute more than 50 grams of high-purity methamphetamine. United States District Court Chief Judge Michael J. Davis sentenced Joseph Benjamin Thomas to 120 months in prison on one count of possession with intent to distribute methamphetamine in violation of federal law. Thomas was indicted on April 16, 2012, and pleaded guilty on July 11, 2012. In his plea agreement, Thomas admitted that between February 1 and April 16, 2012, he possessed with intent to distribute in excess of 50 grams of methamphetamine.
This case was the result of an investigation by the Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the University of Minnesota Police Department; the Minneapolis Police Department; and the St. Paul Police Department, with significant assistance from the Fairmont Police Department and the Minnesota Department of Corrections. It was prosecuted by Assistant U.S. Attorney Andrew R. Winter.Member of White Supremacist Group Admits Role in Hate Crime AssaultRead the Press Release
TRENTON, N.J. – A Mercer County, N.J., man today admitted his role in the New Year’s Eve 2011 hate crime assault of two Middle Eastern men in Sayreville, N.J., U.S. Attorney Paul J. Fishman announced.
Michal Gunar, 28, of East Windsor, NJ, a purported member of the white supremacist group known as the “Aryan Terror Brigade,” pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an Indictment charging him with conspiracy to commit a hate crime assault, as well as the actual commission of a hate crime assault, in violation of the Matthew Shepard and James Byrd Jr., Hate Crimes Prevention Act.
According to documents filed in this case and statements made in court:
Gunar admitted attended a New Year’s Eve “meet and greet” white supremacist event at a residence in East Brunswick, N.J., on Dec. 31, 2011. That night, Gunar, Christopher Ising and Kyle Powell drove to an apartment complex in Sayreville, N.J., with the express purpose of assaulting random, non-Caucasian individuals. Gunar brandished a knife and attacked two Middle Eastern men, shouting anti-Arab slurs. He admitted today that he assaulted at least one man by pulling the individual out of a parked car and punching the man about the face and head, causing physical injury.Ising, 31, of Waretown, N.J., a purported member of a white supremacist group known as the “Atlantic City Skins,” previously entered a guilty plea on both counts of the same Indictment before Judge Pisano on Feb. 13, 2013. Powell, 24, of Wildwood, N.J., and a member of the Aryan Terror Brigade, entered a guilty plea on Jan. 23, 2013, before Judge Pisano to an Information charging him with conspiracy to commit a hate crime assault.
The hate crimes to which Gunar pleaded guilty are punishable by a maximum of potential penalty of 10 years in prison on the assault count, and by a maximum of five years in prison on the conspiracy count. Both counts are also punishable by a $250,000 fine.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, as well as detectives from the N.J. State Attorney General’s Office, under the direction of Attorney General Jeffrey S. Chiesa, with the investigation that lead to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark, and Trial Attorney Fara Gold of the criminal section of the Civil Rights Division of the Department of Justice in Washington, D.C.
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Gunar Indictment
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Federal Corruption Charges Against New York State Senator Malcolm Smith and New York City Council Member Daniel HalloranRead the Press Release
Charges Include Cash Bribes of More Than $100,000 Changing Hands in Connection With Republican Mayoral Ballot, City Council Discretionary Funds, and Spring Valley Development Project
Preet Bharara, 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 today the unsealing of a Complaint charging New York State Senator MALCOLM SMITH, New York City Council Member DANIEL HALLORAN, and four others with bribery, extortion, and fraud charges. The charges against the defendants arise from an undercover investigation of three distinct but related bribery schemes involving public corruption. In the first scheme, SMITH allegedly arranged for cash bribes totaling $40,000 to be paid to VINCENT TABONE and JOSEPH SAVINO, two New York City Republican county leaders, as part of an effort by SMITH, who is a Democrat, to appear on the Republican primary ballot as a mayoral candidate in the 2013 election. HALLORAN is alleged to have received approximately $20,500 in cash bribes to act as an intermediary with TABONE and SAVINO on SMITH’s behalf. In the second scheme, HALLORAN allegedly received approximately $18,300 in cash bribes and $6,500 in straw donor campaign contribution checks in exchange for agreeing to steer up to $80,000 of New York City Council discretionary funding to a company he believed was controlled by those who paid him the bribes. The final scheme involved NORAMIE JASMIN and JOSEPH DESMARET, the Mayor and Deputy Mayor of the Village of Spring Valley in Rockland County, and their alleged receipt of financial benefits, including JASMIN’s receipt of a hidden interest in a real estate project and DESMARET’s receipt of approximately $10,500 in cash bribes, in exchange for official acts. All six defendants were arrested this morning and will be presented later today in White Plains federal court before U.S. Magistrate Judge Lisa Margaret Smith.
Manhattan U.S. Attorney Preet Bharara said: “Today’s charges demonstrate, once again, that a show-me-the-money culture seems to pervade every level of New York government. The complaint describes an unappetizing smorgasbord of graft and greed involving six officials who together built a corridor of corruption stretching from Queens and the Bronx to Rockland County and all the way up to Albany itself. As alleged, Senator Malcolm Smith tried to bribe his way to a shot at Gracie Mansion – Smith drew up the game plan and Councilman Halloran essentially quarterbacked that drive by finding party chairmen who were wide open to receiving bribes. After the string of public corruption scandals that we have brought to light, many may rightly resign themselves to the sad truth that perhaps the most powerful special interest in politics is self-interest. We will continue pursuing and punishing every corrupt official we find, but the public corruption crisis in New York is more than a prosecutor’s problem.”
FBI Assistant Director-in-Charge George Venizelos said: “Elected officials are called public servants because they are supposed to serve the people. Public service is not supposed to be a shortcut to self-enrichment. People in New York, in Spring Valley -- in any city or town in this country -- rightly expect their elected or appointed representatives to hold themselves to a higher standard. At the very least, public officials should obey the law. As alleged, these defendants did not obey the law; they broke the law and the public trust. There is a price to pay for that kind of betrayal.”
According to the allegations in the Complaint unsealed today in White Plains federal court:
Scheme to Bribe New York City Republican Party Committee Leaders
Under New York State law, a person seeking to run for a citywide position in New York City may not have his or her name listed as a candidate on the ballot if he or she is not a registered member of the party having the primary contest unless he or she receives the approval of at least three of the five chairmen of the county committees for that party. The approval is given in the form of what are known as Wilson Pakula certificates, which are signed by the approving chairmen.
SMITH, a Democrat, was first elected to the New York State Senate in March 2000, and represents the 14th Senatorial District in Queens, New York. He is chairman of the Independent Democratic Conference of the State Senate and, among other positions, has served as the State Senate’s minority and majority leader. SMITH has spoken publicly about his desire to run for Mayor of New York City in 2013.
HALLORAN, a Republican, was elected to the New York City Council in 2009, and represents the City Council’s 19th District in Queens, New York. HALLORAN ran unsuccessfully for the United States Congress in 2012. TABONE and SAVINO are New York City Republican Party officials. SAVINO is the Chairman of the Bronx County Republican Party and TABONE is the Vice Chairman of the Queens County Republican Party. Their duties include endorsing candidates for public office and voting on Wilson Pakula certificates.
In November 2012, SMITH agreed with HALLORAN, an undercover FBI agent posing as a wealthy real estate developer (the “UC”), and a cooperating witness (“CW”) to bribe New York City Republican Party county leaders in exchange for their issuance of Wilson Pakula certificates that would enable SMITH to run as a Republican candidate for New York City Mayor in 2013. When asked by the UC what he wanted in exchange for his help securing the certificates, HALLORAN said that he wanted to get his “mortgage situation resolved,” and that if SMITH was elected mayor, he would expect to be named Deputy Police Commissioner if he asked for the job. He also solicited and received from the UC and the CW approximately $20,500 in cash for himself.
In furtherance of the scheme, HALLORAN arranged for the UC and the CW to meet TABONE and SAVINO, and negotiated the amounts of the cash bribes to be paid by the UC and the CW to TABONE and SAVINO on SMITH’s behalf. HALLORAN told the UC and the CW that, “you gotta get [SAVINO] business but put twenty-five in an envelope….TABONE is twenty-five up front, twenty-five when the Wilson Pakula is delivered.” After his meeting with the UC and the CW, SAVINO accepted $15,000 in cash and agreed to accept another $15,000 after he formally approved Smith’s appearance on the 2013 Republican ballot for New York City Mayor. After meeting with the UC and the CW, TABONE accepted $25,000 in cash and agreed to accept another $25,000 after his committee approved Smith’s appearance on the 2013 Republican ballot for New York City Mayor.
In exchange for the payment of bribes to TABONE and SAVINO by the UC and CW, in his capacity as a New York State Senator, SMITH agreed to help obtain $500,000 in New York State funds for road work that would benefit a real estate project in Spring Valley that SMITH understood was being developed by a company controlled by the UC and CW (“the Company”).
Bribery of HALLORAN to Steer City Council Discretionary Funding
Since August 2012 to the present, HALLORAN accepted approximately $18,300 in cash bribes and approximately $6,500 in straw donor campaign contribution checks from the UC and the CW in exchange for agreeing to steer up to $80,000 in New York City Council discretionary funding to the Company.
For example, at a meeting on September 7, 2012, at which HALLORAN and the UC discussed HALLORAN’s need to raise money for his congressional campaign, HALLORAN agreed to hire someone of the CW’s choosing for a congressional staff or some equivalent position, and to help him raise money for his campaign. During the discussion, HALLORAN said: “That’s politics, that’s politics, it’s all about how much. Not whether or will, it’s about how much, and that’s our politicians in New York, they’re all like that…And they get like that because of the drive that the money does for everything else. You can’t do anything without the f***ing money.” During the meeting, the CW paid HALLORAN $7,500. And near the end of the meeting, HALLORAN remarked: “Money is what greases the wheels – good bad, or indifferent.”
In furtherance of this scheme, HALLORAN wrote two letters on New York City Council letterhead about this funding, one to civic organizations and the other to the Company. Despite suggesting in these letters that work would be done by the Company to support the allotment of up to $80,000, HALLORAN agreed with the UC and the CW that the Company would provide no services.
Bribery of the Spring Valley Mayor and Deputy Mayor
NORAMIE JASMIN and JOSEPH DESMARET were sworn in as Mayor and Deputy Mayor of the Village of Spring Valley, New York in December 2009. From September 2011 through the date of the Complaint, JASMIN and DESMARET accepted financial benefits from the UC and the CW in exchange for official acts. DESMARET accepted approximately $10,500 worth of cash bribes from the UC and the CW in exchange for, among other things, his vote in favor of a sale of land owned by Spring Valley to the Company a company he believed was controlled by the UC and that would be used to build a community center (the “Real Estate Project”).
In exchange for her vote awarding the Real Estate Project to the Company, JASMIN demanded a partnership interest in the Company, stating: “So for me, it’s better for us to partner, that’s what I said to you before; a partnership will be best.” When the CW later suggested that JASMIN have a 20% stake in the project, she replied: “Partnership is fifty fifty, right?”
In support of the scheme, JASMIN coached the UC on how to make his presentation to the Spring Valley Village Board of Trustees about why the board should award the Real Estate Project to his company. She also coached two other individuals, whom she understood were associates of the UC and who would pose as competing developers, but who were actually undercover FBI agents, on how to make their presentation to the Village Board. In addition, both JASMIN and DESMARET agreed to steer to the UC’s company the New York State funding for road work that SMITH agreed to help the CW and the UC obtain.
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are attached.
Mr. Bharara praised the investigative work of the FBI. He also thanked the Rockland County District Attorney’s Office and the Spring Valley Police Department for their invaluable assistance to the investigation.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant U.S. Attorneys Douglas B. Bloom and Alvin Bragg are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Malcolm Smith et al. Complaint
Lonnie Dean Pleads Guilty to Trafficking Methamphetamine in Valencia County and Assaulting A Federal OfficerRead the Press Release
Plea Agreement Requires Twenty Year Prison SentenceALBUQUERQUE – Lonnie Dean, 48, of Belen, N.M., pleaded guilty this morning to methamphetamine trafficking and assault on a federal officer charges under a plea agreement that requires him to serve a 20 year prison sentence. Dean’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Joseph M. Arabit of the El Paso Division of the DEA, and Chief Roy E. Melnick of the Los Lunas Police Department.
Dean was one of twelve individuals from Valencia and Socorro Counties charged with federal methamphetamine trafficking charges in May and June 2011, following a 16-month investigation led by the DEA and the Los Lunas Police Department. The investigation, codenamed “Vanilla Sky,” was pursued under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated attack against major drug trafficking and money laundering organizations.
According to court filings, Dean was part of a large scale methamphetamine trafficking organization that operated in Valencia County, and allegedly was led by Arturo Acosta-Astorga, 53, and Ovidio Estrada, 39, both residents of Los Lunas, N.M. Between March 2010 and May 2011, Acosta-Astorga, Estrada and their co-conspirators allegedly conspired to sell ounce quantities of methamphetamine to undercover DEA agents on at least ten separate occasions. The defendants allegedly sold more than a pound of methamphetamine to the undercover DEA agents during a 14-month period.
During this morning’s proceedings, Dean pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, and assaulting a federal officer with a dangerous weapon. In entering his guilty plea, Dean admitted conspiring with others to distribute methamphetamine in Los Lunas and Belen, and assaulting a federal officer as he attempted to avoid arrest.
More specifically, Dean admitted that on May 26, 2011, he drove to a gas station in Belen for the purpose of selling methamphetamine to another person. As Dean was talking to his customer, DEA agents approached Dean and attempted to arrest him. One DEA agent, who had blocked Dean’s car from the front, exited his car and was moving on foot to a better tactical position with his gun and badge drawn, while another DEA agent parked his vehicle behind Dean’s car to block Dean in. Dean admitted that, instead of surrendering, he put his car into reverse and hit the DEA agent’s car causing it to go backward. Dean then put his car into drive and drove forward, missing the DEA agent only because the agent jumped to the side to avoid being struck. Less than a minute later, Dean drove into a road and entered an intersection where he struck a car driven by Roberta Torres, a 40-year-old resident of Belen, who died as a result of the injuries she sustained in the crash.
Dean has been in federal custody since his arrest on May 26, 2011, and remains detained pending his sentencing hearing, which has yet to be scheduled. Dean also faces several state charges, including homicide by vehicle, relating to Ms. Torres’ death in the 13th Judicial District Court for the State of New Mexico. Dean has entered a not guilty plea to the state charges.
Three other defendants have entered guilty pleas in this federal case. Andrew Gilbert Martinez, 30, of Socorro, N.M., pled guilty in Oct. 2011, to using a communication device to facilitate a drug trafficking crime, also known as a “phone count.” Martinez was sentenced in Jan. 2013, to 27 months in prison followed by a year of supervised release. Thanh Vu Huynh, 47, of Los Lunas, pled guilty in April 2012, to three phone counts and remains on conditions of release pending his sentencing hearing. Sylvia Jeanette Sisneros, 51, of Socorro, pled guilty to conspiracy to distribute methamphetamine and three phone counts in Nov. 2012. Sisneros remains in custody pending her sentencing hearing which is scheduled for April 4, 2013. Acosta-Astorga has yet to be arrested and is considered a fugitive. The charges against Acosta-Astorga and the defendants who have entered not guilty pleas are merely accusations and they are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the DEA and the Los Lunas Police Department and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
Justice Department Announces the Successful Resolution of Its Agreement with the Orange County, Fla., Sheriff’s OfficeRead the Press Release
The United States announced today that the Orange County, Fla., Sheriff’s Office (OCSO) has successfully implemented an agreement on the use of electronic control weapons, commonly referred to as Tasers. Significantly, data OCSO provided to the department demonstrates a marked decrease in the use of Tasers under Sheriff Jerry Demings’ tenure while implementing the department’s agreement. OCSO’s data also demonstrated an overall decrease in uses of force during the same period.
In 2010, the department and OCSO entered into a Memorandum of Agreement to ensure OCSO’s constitutional use of Tasers. The agreement set forth standards for Taser policies, training and reviews of Taser use. The department found that OCSO came into substantial compliance with the agreement in October 2011, and OCSO has maintained that compliance level for 18 months as required by the agreement.
“The successful resolution of our agreement with OCSO demonstrates that effective policing and constitutional policing go hand in hand. OCSO has heightened its standards on Taser use, reduced the use of Tasers, and also reduced its overall use of force, all while providing effective policing to the people of Orange County,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “We are confident that OCSO has the systems in place to ensure constitutional use of Tasers going forward.”
In 2007, the department initiated an investigation of OCSO’s Taser use pursuant to the Violent Crime Control and Law Enforcement Act of 1994. The department issued a technical assistance letter to OCSO in August 2008 describing policies, training and accountability mechanisms necessary to ensure the constitutional use of Tasers.
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights. The act also allows the Justice Department to remedy such misconduct through civil litigation. The Justice Department has conducted similar investigations and has obtained important reforms in police departments and law enforcement agencies across the country.
The Special Litigation Section of the Justice Department’s Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the Middle District of Florida jointly conducted this investigation.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt . Additional information about the U.S. Attorney’s Office for the Middle District of Florida is available on its website at www.justice.gov/usao/flm .
Jury Returns Verdicts in Lengthy Trial Against Two Ranking Gang MembersRead the Press Release
NASHVILLE, Tenn. - April 2, 2013 - Leonard Baugh a/k/a Hype, age 35, and Omega Harris a/k/a Nino a/k/a Q, also age 35, both of Nashville were convicted of multiple charges by a federal jury after a five week trial, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee. The trial focused on Baugh’s use of contraband cellular telephones while serving a state prison sentence at Riverbend Maximum Security Institution in Nashville.
“We are appreciative of the diligent efforts of the jurors who served in this lengthy trial and we respect their verdicts,” said U. S. Attorney Jerry E. Martin. “This was a difficult investigation into a large and dangerous gang whose members tried to control prisons, jails and our neighborhoods. The proof showed that this gang was well armed, and regularly planned to commit violent crimes. This office and our law enforcement partners dedicated significant resources to investigating and prosecuting this case with the belief that such dangerous offenders who were lurking in our neighborhoods with multiple firearms and who were willing to use those guns to abduct others and invade their homes needed to be stopped.”
According to the proof at trial, both defendants held the rank of “OG” (Original Gangster) - the highest rank in the Rollin’ 60s Crips street gang, and committed various crimes with other Rollin’ 60s gang members. The trial proof showed that people as young as 13 years of age were joining this violent street gang.
Baugh was convicted of conspiring to commit two armed robberies against people he believed to be drug dealers, and with possession of firearms in furtherance of those conspiracies. He was responsible for the multiple guns possessed by the co-conspirators who were to carry out the planned home-invasion style robberies. Baugh was also convicted of conspiring to distribute cocaine and crack cocaine as part of a scheme to raise bond money for two female gang members who had been arrested on state prescription fraud drug charges. Baugh was serving a Tennessee state prison sentence at the time of the offenses, and the trial proof showed he routinely used a contraband cell phone while in Tennessee’s highest security prison to arrange robberies and drug offenses, which were to be committed by other Rollin’ 60s gang members.
Harris was convicted of conspiracy to distribute cocaine which was to be taken as part of one of the planned robberies, as well as conspiring to distribute prescription drugs such as Oxycontin.
The proof at trial included evidence that Harris conspired to obtain Oxycontin and other prescription drugs through the use of forged prescriptions as well as through large scale distribution of Oxycontin in various Nashville public housing projects. That proof included estimated distribution of thousands of highly addictive and dangerous Oxycontin 80 milligram pills per week. The investigation into how Harris was able to obtain these drugs in bulk continues.
Harris was also convicted of being a felon in possession of a firearm, relating to the possession of a folding Kel-Tech Sub 2000 firearm. The proof at trial included tracing that firearm through the hands of over a dozen gang members and associates, including proof that Harris provided that firearm to other gang members for use in other crimes. Harris was acquitted of conspiring to commit various drug-related robberies and the firearms charges related to those conspiracies.
Sentencing for both defendants has been scheduled for June 20, 2013 before Senior U.S. District Judge John Nixon. The United States intends to seek lengthy prison sentences against each of these defendants, reflecting each defendants’ roles in these crimes, their previous criminal histories, and other appropriate sentencing factors.
The investigation, which is still ongoing, included the arrests of over 30 Rollin’ 60s gang members and associates, including five holding the highest rank of “OG.” Many of the defendants previously pleaded guilty, and others - who are presumed innocent - will be tried later on a variety of charges including drug trafficking, conspiracy to commit armed robberies, firearms offenses, and obstruction of justice.
The case was investigated by the FBI, with assistance from other federal and local agencies. This trial was prosecuted by Assistant U.S. Attorneys Sunny A.M. Koshy and Special Assistant U.S. Attorney Mario M. Pinto.Jury Convicts Essex County, N.J., Man in Armed Robbery and Shooting of Retired Police OfficerRead the Press Release
TRENTON, N.J. – A Essex County, N.J., man was convicted by a federal jury in Trenton federal court today on all counts related to the robbery and shooting of a retired police officer working as an armed money courier, U.S. Attorney Paul J. Fishman announced.
The jury returned guilty verdicts against James Sodano, 69, of West Orange, N.J., following a two-and-a-half-week trial before U.S. District Judge Peter G. Sheridan. Sodano was convicted on all three counts charged in the Indictment: conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and possessing, carrying and using a firearm, which was discharged in connection with the robbery.
According to documents filed in this case and the evidence at trial:
On May 19, 2011, Sodano and another armed man confronted a retired police officer working as an armed money courier for a check cashing service as he was delivering a bag containing $400,000 to a Newark bar. As he exited his car, an armed man approached him, and the two men exchanged gunfire. The courier fell to his knees, and the armed man fled.
Sodano approached the courier from behind, shooting him in the jaw. As the victim fell, he fired a shot, hitting Sodano in the leg. Sodano shot him again, hitting the victim in the arm. Sodano then pulled the bag of money from beneath the victim as he was lying face down on the ground. Sodano drove off in his car, but crashed three and a half blocks away. When police arrived, they found Sodano, wearing a bulletproof vest and a pair of gloves, slipping in and out of consciousness, still holding on to the steering wheel. Police found a pool of blood, several weapons, ammunition and the bag containing the $400,000 inside the car.
Sodano faces a maximum potential penalty of 20 years in prison on the Hobbs Act conspiracy charge and a maximum of 20 years for the Hobbs Act robbery charge. For the conviction on the count of possessing, carrying and using a firearm, which was discharged in furtherance of the Hobbs Act robbery, Sodano faces a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison, which must run consecutively to any Hobbs Act robbery prison term. Each count also carries a maximum $250,000 fine. Sentencing is currently scheduled for July 8, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s guilty verdict. He also thanked the Essex County Prosecutor’s Office and the Newark Police Department, for their roles in the case.
The government is represented by Senior Litigation Counsel Serina M. Vash and Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: Hal Haveson Esq., Princeton, N.J.Illegal Alien Convicted of Possession and Use of False Identity Documents and False Claim of United States CitizenshipRead the Press Release
An illegal alien from El Salvador who used false identity documents to gain employment and falsely claimed to be an United States citizen was convicted by a jury today, after a two-day trial in federal court in Cedar Rapids.
Julian Reyes Ferrer-Hernandez, age 27, from Waterloo, Iowa, was convicted of one count of unauthorized use of a Social Security number not assigned to him, one count of unlawful use and possession of a fake social security card and fake permanent resident card to gain employment in the United States, one count of making a false claim of being a lawful permanent resident alien on an Immigration I-9 form, one count of falsely claiming to be an United States citizen, and one count of making a false statement regarding his employment during an interview with immigration officers. The verdict was returned this afternoon following about 90 minutes of jury deliberations.
The evidence at trial showed that on March 14, 2012, Ferrer-Hernandez was arrested in Waterloo, Iowa, for public intoxication. At the time of his arrest, Ferrer-Hernandez provided a Waterloo police officer with six different identity cards, including a fake social security card and a fake lawful permanent resident alien card. The permanent resident number was assigned to a Nigerian. Officers also seized two El Salvadoran identity cards and two fake California ID cards. Ferrer-Hernandez was born in, and is a citizen of, El Salvador.
Testimony showed that Ferrer-Hernandez used the fake social security card and the fake lawful permanent resident alien card to obtain employment in Waterloo, Iowa, where he filled out an Immigration I-9 Form on May 19, 2008, falsely claiming to be a lawful permanent resident alien. Immigration I-9 forms are required to be completed by all employees working within the United States. Ferrer-Hernandez worked in Waterloo, Iowa, continuously from May 2008 through February 2012.
On April 16, 2012, Ferrer-Hernandez was questioned by an officer with Homeland Security. During that interview Ferrer-Hernandez first claimed he was born in El Salvador, then falsely claimed he was a United States citizen born in an unknown city in Texas. Ferrer-Hernandez also falsely stated that he had not been employed in the United States since 2005.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Ferrer-Hernandez remains in custody of the United States Marshal pending sentencing. Ferrer-Hernandez faces a possible maximum sentence of 33 years’ imprisonment, a $1,250,000 fine, $500 in special assessments, and 13 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by officers from the Waterloo Police Department, the Black Hawk County Sheriff’s Office, and the Department of Homeland Security, Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2012.
Identity Thief Indicted on Federal ChargesRead the Press Release
TSA Caught Defendant with Nearly 100 Fraudulent Credit Cards
ATLANTA - Elton Lee Flenaugh has been indicted on charges of conspiracy, possession of counterfeit access devices, and aggravated identity theft after TSA discovered fraudulent credit cards in his carry-on bag during pre-flight security screening.
“Identity theft and credit card fraud is a pervasive problem that comes to light in many different ways, usually after the damage is already done,” said United States Attorney Sally Quillian Yates. “Alert TSA agents should be commended for catching this thief red-handed and referring him to law enforcement.”
According to United States Attorney Yates, the charges, and other information presented in court, on February 9, 2013, Flenaugh and a female companion, who reside in the San Francisco Bay Area, were scheduled to fly from Atlanta to Phoenix, Az. on United Airways Flight 88 at 7:40 a.m. As they approached TSA’s main pre-flight security screening checkpoint, Flenaugh handed his backpack to his companion. He then left her and presented himself for screening without any carry-on items. He used TSA’s identity verification process because he claimed to be flying without any photo identification. Flenaugh provided TSA with an alias during this process, using the name “Joshua Ford.”
Flenaugh’s companion presented carry-on bags to TSA for screening, including Flenaugh’s backpack. While the backpack was being x-rayed, an alert TSA employee noticed a suspicious package. Upon further inspection a stash of nearly 100 fraudulent credit cards was discovered hidden inside an empty Lay’s potato chip bag. The credit cards were in various male and female names -- including 33 in the name of Flenaugh’s female companion. Additionally, 21 of the credit cards had not yet been embossed with names or account numbers.
A subsequent search of the backpack by the Atlanta Police Department (APD) revealed multiple fraudulent drivers licenses secreted in various places in the backpack. Licenses from various states including Arizona, New Jersey, and Ohio were found under the insole of a pair of men’s tennis shoes. Three had different names bearing Flenaugh’s photograph.
Flenaugh tried to flee but was arrested by APD, and charged with state credit card fraud offenses. On March 4, 2013, the U.S. Secret Service arrested him and charged him by complaint with one count of possession of 15 or more counterfeit or unauthorized access devices.
On March 7, 2013, U.S. Magistrate Judge Linda T. Walker ordered Flenaugh, 33, a/k/a Joshua Ford a/k/a Ali Emir Waheed, of Richmond, Calif., to remain in federal custody pending trial both as a flight risk and as a danger to the community. Walker based her ruling on his ready access to false identity documents and credit cards, his use of aliases, and his extensive criminal history.
“The Secret Service will continue to collaborate with our law enforcement partners to aggressively target and arrest individuals who commit financial crimes,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Flenaugh’s companion was arrested by APD at the airport and charged with state credit card fraud crimes. She remains in state custody.
The indictment charges Flenaugh with one count of conspiracy to possess 15 or more counterfeit or unauthorized access devices, one count of possession of 15 or more counterfeit or unauthorized access devices, and nine counts of aggravated identity theft. The conspiracy charge carries of maximum sentence of 5 years in federal prison, the possession charge carries a maximum sentence of 10 years in federal prison, and each of the aggravated identity theft charges carries a mandatory minimum sentence of two years in federal prison, at least one count of which is required to be imposed consecutive to any sentence imposed on the underlying charges. Each of the charges also authorizes a fine of up to $250,000 per count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the United States Secret Service.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Hunterdon County, N.J., Man Sentenced to 15 Years in Prison for Distributing Videos of Child Sexual Abuse over the InternetRead the Press Release
TRENTON, N.J. — A Hunterdon County, N.J., man was sentenced today to 15 years in prison for distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
John Livoti, 42, of Hampton, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an Information charging him with one count of distribution of child pornography. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Livoti admitted that from May 2011 through February 2012 he used peer-to-peer file sharing software to download and to share images of child pornography through the Internet. He accessed the Internet through his neighbor’s wireless Internet connection. He further admitted that for a period of time in 2011 he paid for a minor, living in another state, to access the peer-to-peer network so that the minor could access child pornography.
Special agents of the FBI and other law enforcement executed a search warrant at Livoti’s apartment in Hampton, N.J., on Feb. 2, 2012. Law enforcement seized a netbook computer and an external hard drive that contained child pornography.
U.S. Attorney Fishman credited the FBI Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark; the Hunterdon County Prosecutor's Office, under the direction of Prosecutor Anthony P. Kearns III; and Hunterdon County Chief of Detectives John J. Kuczynski, with the investigation leading to today’s sentence.
In addition to the prison term, Judge Pisano sentenced Livoti to lifetime supervised release, with restricted contact with minors, and ordered to pay $5,000 in restitution. He must also register as a sex offender.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Former Pastor Sentenced to Serve 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – Richard Howard Craft, age 69, of Thornton, Colorado, was sentenced today by U.S District Court Judge R. Brooke Jackson to serve 120 months (10 years) in federal prison for possession of child pornography, United States Attorney John Walsh and FBI Denver Acting Special Agent in Charge Steven Olson announced. Following his 10 years in prison, Craft is to spend 5 years on supervised release. He is also to register as a sex offender. Judge Jackson scheduled a hearing for June 6, 2013 to determine the amount of restitution victims should receive. Craft, who is free on bond, was ordered to report to a Bureau of Prison facility once one is designated.
Craft was indicted by a federal grand jury in Denver on August 20, 2012. He pled guilty before Judge Jackson on November 5, 2012. He was sentenced on April 1, 2013.
Prior to his arrest, Craft was an interim pastor of Family of Christ Presbyterian Church of Greeley.
According to the facts contained in court documents, on December 23, 2009, an FBI special agent in Philadelphia, operating in an undercover capacity, accessed the Internet and connected to a publicly available peer-to-peer file-sharing program. The FBI agent observed numerous files depicting child pornography. Further investigation revealed that the files were being shared from Craft’s computer located at his Thornton, Colorado residence.
As a result of the investigation, the U.S. Attorney’s Office obtained an indictment. Ultimately, Craft pled guilty to the possession of child pornography that had been shipped and transported in interstate and foreign commerce by any means, including by computer, between July 2007 and January 2008.
Craft also forfeited any and all of his rights, title and interest in the child pornography images, the computers containing child pornography, and any other real or personal property he used or intended to be used to commit or promote the commission of the offenses.
“As the defendant told Judge Jackson during his sentencing hearing, sexual predators view children as objects for gratification, not human beings to nurture,” said U.S. Attorney John Walsh. “The lengthy prison sentence is a result of the fact of the defendant’s compulsive viewing of child pornography.”
“The FBI’s Violent Crimes Against Children Program will continue to aggressively investigate cases that involve possession of child pornography in order to protect our children from predators on the streets and online,” said FBI Denver Acting Special Agent in Charge Steven Olson.
This case was investigated by the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Program.
Craft was prosecuted by Assistant U.S. Attorneys Ryan Bergsieker and Alecia Riewerts Wolak and Department of Justice Child Exploitation and Obscenity Section Trial Attorney Michael Grant.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Former Family Practice Physician Sentenced to 51 Months in Prison for Trading Child PornographyRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that CARL G. KOPLIN, 55, of Tolland, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by five years of supervised release, for receiving and distributing child pornography. KOPLIN also was ordered to pay a fine of $10,000.
“This defendant’s appalling collection of child pornography was one of the largest that we have seen here in Connecticut,” stated U.S. Attorney Fein. “It’s reprehensible that a practicing physician who held such an important position of trust in the community victimized so many children by collecting and trading sexually explicit images of them. This Office is committing to working with the FBI, Connecticut Child Exploitation Task Force and our other law enforcement partners to protect children by stemming the distribution of these images and vigorously prosecuting offenders.”
According to court documents and statements made in court, a special agent with the Northern Virginia Resident Agency of the Washington Field Office of the Federal Bureau of Investigation used a publicly available Internet file sharing program to download approximately 300 images and videos of child pornography from the shared directories of a user with an Internet Protocol (IP) address that was subsequently identified as belonging to a subscriber at KOPLIN’s residence in Tolland.
On July 9, 2010, federal agents searched KOPLIN’s home and seized a desktop computer, storage media and other computer components. KOPLIN was arrested on that date after he admitted to agents that he used a file sharing program to trade images of child pornography, and that he was responsible for any child pornography found as a result of the search of his residence.
Subsequent forensic analysis of the seized items revealed thousands of images and videos depicting child pornography, totaling more than 800 gigabytes in size.
Prior to his arrest, KOPLIN was employed as a family practice physician in Vernon.
KOPLIN has been in home confinement under electronic monitoring by the U.S. Probation office since the date of his arrest. On August 29, 2012, he pleaded guilty to one count of receipt of child pornography.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorneys Ray Miller, Sarala Nagala and Deborah Slater.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Defense Department Contract Employee Sentenced to 35 Months <br /> in Prison for Participating in Corruption Scheme at Camp Arifjan in KuwaitRead the Press Release
A former contract employee of the U.S. Defense Department (DoD) was sentenced today to serve 35 months in prison for his participation in a bribery and money laundering scheme arising from corruption in the award of defense contracts at Camp Arifjan, an Army base in Kuwait, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Wajdi Birjas, 41, of Evansville, Ind., was sentenced today by Chief U.S. District Judge Richard L. Young in the Southern District of Indiana. In addition to his prison term, Birjas was sentenced to serve three years of supervised release and ordered to forfeit $650,000.
Birjas pleaded guilty on Aug. 11, 2010, to one count of bribery conspiracy and one count of money laundering conspiracy.
According to court documents, Birjas was a contract employee in the Host Nation Affairs office at Camp Arifjan between approximately 2004 and August 2007. In this position, his responsibilities included translating documents, handling customs matters, and identifying Kuwaiti companies capable of providing certain goods and services to the U.S. military in Kuwait. Through his work, Birjas had frequent contact with U.S. Army contracting officials, including officials who were regularly receiving unlawful payments from individuals who had contracts with, or were seeking contracts from, DoD.
According to court documents, Birjas, acting at the direction of a contractor working in Kuwait, developed corrupt relationships with certain U.S. Army contracting officials, including Sergeant First Class Richard Evick, who was deployed to Camp Arifjan as the senior procurement non-commissioned officer, Major Christopher Murray and Major James Momon. By bribing these Army contracting officials in 2005 and 2006, Birjas assisted the contractor in obtaining a total of more than $1.7 million in connection with DoD contracts to provide various goods and services to the U.S. military. In return, Birjas received a share of the profits that the contracts generated and was allowed to live rent-free in a villa in Kuwait that contained a hidden safe.
Court documents indicate that Birjas, among other things, paid Murray approximately $90,000; paid Evick approximately $22,000; and paid for Evick’s and Momon’s airplane and hotel expenses to allow them to celebrate New Year’s Eve in Dubai. According to court documents, Birjas also allowed Momon to hide approximately $680,000 worth of his bribe money in Birjas’s safe at the villa.
Birjas admitted that, after Momon had returned to the United States at the end of his tour, Birjas agreed to assist Momon in arranging for $250,000 of Momon’s bribe money to be transferred from Kuwait to the United States. Birjas admitted to working out the details of this agreement with Evick and one of Evick’s associates, Crystal Martin, a former master sergeant in the Army who operated a concession to sell clothing at U.S. military bases in Kuwait. According to court documents, Birjas delivered approximately $85,000 worth of Momon’s bribe money to Martin for ultimate delivery to Momon in the United States.
The case against Birjas arose out of an investigation into corruption at the Army contracting office at Camp Arifjan, which has led to charges against 19 individuals, all of whom have pleaded guilty or been convicted at trial.
The case is being prosecuted by Trial Attorneys Peter C. Sprung, Edward J. Loya Jr., Eric G. Olshan and Timothy J. Kelly of the Criminal Division’s Public Integrity Section. The case is being investigated by special agents of the DCIS, the Army Criminal Investigation Command Division, the FBI and the Special Inspector General for Iraq Reconstruction.
Former City Pharmacist Pleads Guilty to Drug Trafficking ChargesRead the Press Release
PHILADELPHIA - Arlene Gerson, 46, of Philadelphia, pleaded guilty today to conspiracy to distribute oxycodone and attempted distribution of oxycodone, announced United States Attorney Zane David Memeger. Sentencing has been set for July 12, 2013 before the Honorable Stewart Dalzell of the United States District Court for the Eastern District of Pennsylvania. She faces an advisory sentencing guideline range of 57 to 71 months in prison.
Gerson was working as a pharmacist at various locations, including a health clinic run by the City of Philadelphia known as Health Center #5. Gerson used that position to access blank prescription pads, doctors’ identification information, patient identification information, and patient health insurance information in creating phony prescriptions. Gerson or one of their associates then took the false prescription to a pharmacy to be filled. Gerson and her associates then allegedly sold a portion of the controlled substances for a profit.
The case was investigated by FBI, the Philadelphia Office of Inspector General, the Drug Enforcement Administration, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Robert Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Engineer from M/t Stolt Facto, Anselmo Capillanes, Pleads Guilty to Violating Act to Prevent Pollution from ShipsRead the Press Release
ANSELMO CAPILLANES, age 48, a citizen of the Phillipines, pleaded guilty before U.S. District Judge Jay C. Zainey to a one-count bill of information for violating the Act to Prevent Pollution from Ships, Title 33, United States Code, Section 1908, announced U. S. Attorney Dana J. Boente today.
According to the court documents, CAPILLANES served as the Second Engineer of the M/T Stolt Facto, a 26,328 gross ton oil tanker,from September 22, 2012 until on or about January 16, 2013. CAPILLANES was responsible for the operation of the Oil Water Separator onboard the vessel. The Oil Water Separator is the principal technology utilized to detect and prevent concentrations of oil in excess of 15 ppm in the vessel’s bilge water from being discharged overboard.
Starting in October 2012, CAPILLANES directed members of the engine room crew to connect hoses from the bilge wells and bilge holding tank located on the lower deck of the engine room and pump the contents of those tanks into the sewage holding tank on the uppermost deck of the engine room. By transferring the contents of the bilge wells to the sewage holding tank the oily water by-passed the Oil Water Separator and was then discharged from the sewage holding tank into the ocean.
These transfers and discharges were not recorded in the M/T Stolt Facto’s Oil Record Book. The Oil Record Book entries indicated that the Oil Water Separator had been used. In court documents associated with his guilty plea, CAPILLANES admitted he ran fresh water or sea water through the Oil Water Separator so that he could get readings from the White Box, the data recorder on the Oil Water Separator, making it appear that the Oil Water Separator was used in a manner consistent with the statements in the Oil Record Book to conceal that not all of the ship’s oily waste water was properly treated before being dumped overboard.
(Download Factual Basis )
Ellenwood Man Indicted for Possession of Child PornographyRead the Press Release
Used His Home Computer to Receive and Store Images
ATLANTA – David Rice was arraigned Thursday, March 28, 2013, for possession and receipt of child pornography, and has been released on bond with conditions including electronic monitoring, and a requirement that he not have unsupervised contact with children.“The possession and receipt of child pornography attempts to normalize the exploitation of children,” said United States Attorney Sally Quillian Yates. “It not only harms the minor victims portrayed in those images, it fuels a heinous market. We will protect children, so individuals in our District interested in acquiring and using these images need to understand that we will prosecute them.”
“The child pornography cases we investigate reveal the disturbing and sobering truth that some adults will go to great lengths to sexually exploit children,” said Brock D. Nicholson, Special Agent in Charge of Homeland Security Investigations, Atlanta. “While we cannot give back the innocence that's been stolen from these children, we can make sure that those who commit these horrible crimes are brought to justice.”
According to United States Attorney Yates and the information presented in court: In April and May 2012, a federal agent with Homeland Security Investigations determined that Rice possessed approximately 950 files containing known or suspected child pornography at his home. Those files included images of minor girls being molested by adult males. In June 2012, law enforcement officers executed a search warrant at Rice’s home. Agents seized his home computer during that search, which contained numerous images of child pornography.The indictment charges Rice, 51, of Ellenwood, Ga., with receipt of child pornography, which carries a maximum term of imprisonment of 20 years and a fine of $250,000. He is also charged with possession of child pornography, which carries a maximum term of imprisonment of ten years and a fine of $250,000. Both charges carry no less than five years to a lifetime of supervised release. His arraignment was held before United States Magistrate Judge Gerrilyn G. Brill.
If convicted, Rice will be required to register as a sex offender. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt.
This case is being 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 U.S. Attorneys’ Offices, 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 http://www.justice.gov/psc/.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Doreen Alexander Extradited to the United States to Face Kidnapping ChargesRead the Press Release
Doreen Alexander has been extradited to the United States from Trinidad and Tobago to face charges related to her alleged role in the 2005 kidnapping of naturalized U.S. citizen Balram “Balo” Maharaj, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office.
Alexander, 47, arrived in the United States on Sunday, March 31, 2013, and was arraigned yesterday before U.S. Magistrate Judge Deborah A. Robinson in the District of Columbia. Alexander was charged in a two count indictment filed in September 2010. If convicted, Alexander faces a maximum penalty of life in prison. She is presumed innocent until proven guilty beyond a reasonable doubt.
Alexander is the last charged co-conspirator involved in the alleged kidnapping of Maharaj, Alexander’s former boyfriend and father to one of her sons who died as a result of the kidnapping. The other 12 co-conspirators were previously extradited and prosecuted by the U.S. Attorney’s Office for the District of Columbia.
Alexander is alleged to have initiated the April 2005 kidnapping of Maharaj and provided information that allowed the kidnappers to identify, locate and track Maharaj. Alexander allegedly alerted the kidnappers to Maharaj’s visits to Trinidad and Tobago, gave them information on his wealth, which was used to calculate the ransom, and reassured the kidnappers that they had the right man after the ransom negotiations went awry.
Valuable assistance was provided by the Criminal Division’s Office of International Affairs, which worked with its counterparts in Trinidad & Tobago to effect the extradition. The U.S. Attorney’s Office for the District of Columbia has also provided significant assistance in this case.
The case was investigated by the FBI’s Miami Division Extraterritorial Squad with the assistance of the FBI's Legal Attache's Office in Port of Spain, Trinidad and Tobago. Special assistance was further provided by the Trinidad and Tobago Police Service Anti-Kidnapping Squad and Homicide Bureau.
The case is being prosecuted by Trial Attorneys Matthew Singer and Teresa Wallbaum of the Criminal Division’s Human Rights and Special Prosecutions Section.
District Man Pleads Guilty to Charges in 2011 Collision with Bicyclist in Northeast Washington -Victim Knocked to Street, Escaped Serious Injury-Read the Press Release
WASHINGTON - John W. Diehl, 57, of Washington, D.C., pled guilty today to charges stemming from a hit-and-run incident in August 2011 in which the truck he was driving struck a bicyclist in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Diehl pled guilty in the Superior Court of the District of Columbia to charges of leaving the scene after a collision and destruction of property. The plea includes a deferred sentencing agreement that calls for Diehl to perform 25 hours of community service, undergo counseling for anger management, complete a drivers’ safety course, and complete alcohol and drug treatment if necessary over the next year. If he complies with all of the conditions of the agreement, the government will not oppose a defense motion to withdraw the guilty plea and will move to dismiss the case. The Honorable Robert I. Richter scheduled sentencing for April 2, 2014.
If the defendant does not comply with the conditions, the government can oppose his withdrawal of the plea and ask the Court to immediately proceed with sentencing.
According to the government’s evidence, on Aug. 31, 2011, at about 9:05 a.m., the victim was riding his bicycle and traveling west in the 3000 block of Rhode Island Avenue NE. Diehl pulled up in his truck next to the victim, drove alongside him as he was riding, and cursed at him for being in the middle lane.
Diehl then changed lanes and drove his truck into the bicyclist’s lane, striking him with his truck and knocking him to the ground. After knocking the victim off of his bicycle, Diehl drove away without stopping. As a result of the collision, the victim suffered injury to his shoulder, road rash and multiple scrapes and bruises, as well as damage to his bicycle.
In announcing the plea, U.S. Attorney Machen commended the work of the officers of the Metropolitan Police Department’s Fifth District, who were involved in the arrest and investigation of this case. U.S. Attorney Machen also expressed his appreciation to Paralegal Specialists D’Yvonne Key and Richard Cheatham, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
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Detroit-Area Home Health Agency Owner and Physical Therapist Convicted in $2.3 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit today convicted a home health agency owner and a physical therapist for their participation in a $2.3 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Detroit Office.
Mehran Javidan, 52, was found guilty in U.S. District Court for the Eastern District of Michigan of one count of conspiracy to commit health care fraud, three counts of health care fraud, three counts of making false statements related to health care matters, and one count of conspiracy to solicit or pay health care kickbacks in exchange for referrals of patients to a Detroit-area home health care company, Acure Home Care Inc.
Vishnu Meda, 32, a physical therapist, was found guilty of one count of conspiracy to commit health care fraud, two counts of health care fraud and two counts of making false statements relating to health care matters.
The jury found Javidan not guilty of one count of making false statements and one count of health care fraud, and did not reach a verdict on one additional count of health care fraud. Meda was found not guilty of one count of making false statements and one count of health care fraud.
The defendants were charged in a superseding indictment returned Nov. 29, 2012. Another individual charged in the indictment remains a fugitive.
According to evidence presented at trial, Javidan owned and operated Acure Home Care Inc., a home health care company in Oak Park, Mich., and later Troy, Mich. As shown at trial, Javidan paid doctors to refer non-homebound patients for physical therapy treatment that was medically unnecessary. The evidence showed that she also paid patient recruiters to obtain Medicare information and pre-signed physical therapy documents from Medicare beneficiaries. The recruiters for Acure obtained the Medicare information and pre-signed forms by paying patients in cash and by promising that the referring doctors would prescribe them narcotic prescriptions.
Evidence presented at trial established that Meda and other physical therapists and physical therapy assistants employed by Acure created false and fraudulent physical therapy files using the blank, pre-signed forms to make it appear as if physical therapy services were actually rendered, when, in fact, the services had not been rendered.
Acure was paid over $2.3 million from Medicare between December 2008 and November 2010.
The health care fraud conspiracy count carries a maximum potential penalty of 10 years in prison; each count of health care fraud carries a maximum penalty of 10 years in prison; each count of making false statements carries a maximum penalty of five years in prison; and each count of kickback conspiracy carries a maximum penalty of five years in prison. Sentencing for both defendants is scheduled for July 8, 2013.
The case was prosecuted by Trial Attorneys Catherine K. Dick and Niall M. O’Donnell of the Criminal Division’s Fraud Section. The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Eastern District of Michigan and the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.Dana Yvonne Kent Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 1, 2013, before U.S. District Judge Sam E. Haddon, DANA YVONNE KENT, a 49-year-old resident of Santa Ana, California, was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Restitution: $101,490
Supervised Release: 1 year
KENT was sentenced in connection with her guilty plea to wire fraud/telemarketing.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
Between October of 2009 and May 25, 2012, KENT was involved with other individuals in oil and gas lease schemes totaling approximately $673,406.62 in monies from investors.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KENT will likely serve all of the time imposed by the court. In the federal system, KENT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the U.S. Department of Interior - Office of Inspector General.
Coin Dealer Formerly from Hackensack Is Indicted on Federal Tax ChargesRead the Press Release
NEWARK, N.J. – A federal grand jury in Newark today returned a three-count Indictment charging a former Bergen County dealer in ancient coins, with aiding and assisting in the filing of false federal income tax returns, U.S. Attorney Paul J. Fishman announced.
Gantcho Zagorski, 59, formerly a resident of Hackensack, N.J., was charged with aiding and assisting in the filing of false federal income tax returns for calendar years 2006, 2007 and 2008. A date for Zagorski’s arraignment will be scheduled once the case has been assigned to a federal district judge.According to the Indictment:
Zagorski owned and operated a business that sold ancient coins to domestic and international customers, primarily on eBay, from his residence in Hackensack. Zagorski, along with his wife and, at times, his daughter, operated the coin-selling business under the names “Diana Coins,” “Paganecoins,” and “Diana Coins, LLC.” For calendar years 2006, 2007, and 2008, Zagorski provided his tax preparer with false and fraudulent information by understating the amount of gross receipts and sales earned by his business. Zagorski then caused to be filed with the IRS those federal income tax returns for 2006, 2007 and 2008 containing that false and fraudulent information.
Each of the three tax counts carries a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of Department of Homeland Security, Homeland Security Investigations New York, under the direction of Special Agent in Charge James T. Hayes Jr.; IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, Newark Field Office; and the FBI, under the direction of Acting Special Agent in Charge David Velasquez, with the investigation leading to the Indictment.
The government is represented by Assistant U.S. Attorneys Maureen Nakly of the U.S. Attorney’s Office Special Prosecutions Division and Leslie Schwartz of the U.S. Attorney’s Office Economic Crimes Unit.The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, NewarkZagorski Indictment
Clear Lake Man Pleads Guilty to Possessing Child PornographyRead the Press Release
A man who possessed child pornography pled guilty on April 1, 2013, in federal court in Cedar Rapids.
Brandon Phinney, age 27, from Clear Lake, Iowa, was convicted of one count of possession of child pornography.
At the plea hearing, Phinney admitted that, between September 2010 and April 2011, he possessed child pornography on a computer. In a plea agreement, Phinney admitted that he possessed over 1,000 images of child pornography and that he used the Internet to trade child pornography with others.Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Phinney was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Phinney faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clear Lake Police Department, the Mason City Police Department, and the Iowa Division of Criminal Investigation.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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3005.
Charlotte Woman Pleads Guilty to $4.8 Million Medicaid Scheme, Aggravated Identity Theft and Other ChargesRead the Press Release
Woman Steals Identity of Therapist to Submit False Claims to Medicaid and Attempts to Sell Mercedes-Benz to Prevent Law Enforcement Officers from Seizing Vehicle
CHARLOTTE, N.C. – A Charlotte woman pleaded guilty today in U.S. District Court for her involvement in a health care fraud scheme that attempted to defraud Medicaid of $4.8 million for sham mental and behavioral health services, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Rodnisha Sade Cannon, 26, of Charlotte, also pleaded guilty to stealing a therapist’s identity to commit the fraud, money laundering conspiracy and attempting to sell her Mercedes-Benz in order to prevent law enforcement agents from seizing the vehicle.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID); Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); and Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
Cannon appeared this morning before U.S. Magistrate Judge David Cayer and pleaded guilty to one count of health care fraud conspiracy, one count of aggravated identity theft, and one count of money laundering conspiracy. Cannon also pleaded guilty to a single count of attempting to remove property subject to seizure, namely a 2010 Mercedes-Benz CLS550, in a related case. At today’s plea hearing, Cannon admitted that from 2010 to 2012, she and others submitted in excess of $4.8 million in false claims to Medicaid. According to filed court documents and statements made in court, Cannon and her co-conspirators operated after-school and summer childcare programs in Gastonia and Shelby, N.C. Although therapists initially performed some services at these programs, Cannon and others devised a scheme to defraud Medicaid by using the Medicaid provider numbers assigned to other companies and individual therapists for all therapy services supposedly provided at their programs regardless of whether those companies and individuals actually provided the claimed services. In many instances, the claimed mental and behavioral health services were never provided at all. Cannon and others accomplished this scheme by re-directing Medicaid payments away from the Medicaid providers’ bank accounts and to bank accounts controlled by Cannon and her co-conspirators.
According to the criminal bill of information and court documents, Cannon was not licensed or qualified to provide mental and behavioral health services and she was not approved by Medicaid. Instead, Cannon and others stole the identity of Medicaid-approved providers who had some relationship with the programs in order to accomplish the fraud. For example, court documents indicate that Cannon hired M.B. to work for her company in or about May 2012 and M.B. worked there for a single day. Cannon stole M.B.’s Medicaid provider information and redirected all Medicaid payments to M.B. be deposited into a bank account controlled by Cannon and others. Cannon and others then billed claims to Medicaid in excess of $800,000 for services that M.B. never provided, including claims for dates of service before M.B. worked for Cannon and her co-conspirators. In total, from 2010 to 2012, pursuant to the scheme to defraud, Cannon and her co-conspirators submitted approximately $4.8 million in false and fraudulent claims to Medicaid, resulting in payments of over $2.5 million to Cannon and her co-conspirators.
According to documents filed in court, Cannon also worked with Victoria Brewton, who pleaded guilty in January 2013 to carrying out a similar $8 million Medicaid fraud scheme in Shelby. Cannon assisted Brewton by providing and selling Medicaid beneficiary identification numbers and information to be used in Brewton’s fraud scheme. Brewton’s sentencing date has not been set yet.
As part of her plea, Cannon also admitted that she used the proceeds of her scheme to defraud Medicaid to purchase a 2010 Mercedes-Benz CLS550 for the purchase price of $59,500. In September 2012, law enforcement agents sought and obtained a warrant to seize this vehicle as the proceeds of Cannon’s health care fraud scheme. According to court documents, when Cannon learned that agents had a seizure warrant for the vehicle, she attempted to sell the Mercedes-Benz in order to avoid seizure of the vehicle. Cannon has agreed to forfeit the Mercedes-Benz as part of her plea today.
“Stealing money from Medicaid degrades the integrity of our health care system and victimizes those who rely on this important health care program for legitimate patient care,” said U.S. Attorney Tompkins. “The money that Cannon stole through her health care fraud scheme was intended to cover patient needs, not to purchase luxury items. Cannon will be held accountable for her actions,” Tompkins added.
Attorney General Roy Cooper stated, “Cheating Medicaid hurts needy patients, wastes taxpayer money, and drives up health care costs. Our Medicaid Investigations Division attorneys and investigators will continue to work closely with federal officials to root out fraud in North Carolina and make wrongdoers pay.”
“Money gained through illegal sources, such as healthcare fraud, is part of the untaxed, underground economy. This untaxed underground economy poses a threat to our voluntary tax compliance system and undermines the overall public confidence in our American system of taxation,” stated Charlotte Field Office Special Agent in Charge Jeannine A. Hammett, IRS Criminal Investigation.
At sentencing, Cannon faces a mandatory two years in prison consecutive to any other term of imprisonment and a $250,000 fine for the aggravated identity theft charge, a maximum term of 10 years in prison and a $250,000 fine for the health care fraud charge, a maximum term of ten years in prison and a $250,000 for the money laundering conspiracy charge and maximum term of imprisonment of five years and a $250,000 fine for the attempted removal of property to prevent seizure. In her plea agreement, Cannon has agreed to pay full restitution to Medicaid for any losses resulting from her criminal scheme. The final restitution amount will be determined by the Court at Cannon’s sentencing hearing, which has not been scheduled yet.
Cannon has been in local federal custody since her arrest on the attempted removal of property to prevent seizure charge on September 28, 2012.
The investigation into Cannon was handled by the FBI, MID, IRS, and HHS-OIG. The prosecution was handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistleblower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
California Man Sentenced for Theft in New TownRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 2, 2013, Paul A. Bonilla, 40, Riverside, Calif., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of theft within Indian country. Bonilla pleaded guilty to the charge on Dec. 18, 2012.
Judge Hovland sentenced Bonilla to one year in federal prison, to be followed by three years of supervised release. Bonilla was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On Nov. 6, 2012, on Main Street in New Town, Bonilla entered a vehicle without permission and drove away. In the back seat of the vehicle was a 2-year-old child, who was asleep. The owner of the vehicle had gone into Better B’s Restaurant in New Town to pick up an order of food. The vehicle was located in the parking lot of the Four Bears Casino, and the child was still asleep in the back seat. Bonilla was found inside the casino playing slot machines and was arrested.
The case was investigated by Bureau of Indian Affairs – Fort Berthold Agency.
Assistant U.S. Attorney Rick Volk prosecuted the case.
California Man Sentenced for Trafficking Cocaine in N. IdahoRead the Press Release
COEUR D'ALENE – Hector Rivera, 35, of Paramount, California, was sentenced today in United States District Court to 50 months in prison followed by four years of supervised release for conspiracy to possess with intent to distribute cocaine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Rivera to serve four years of supervised release after his prison term. He pleaded guilty to the charge on November 5, 2012.
Rivera’s co-defendant, Barbara Jeanne Willoughby, 23, also of Paramount, California, was sentenced on February 4 to 18 months in prison for conspiracy to possess with intent to distribute cocaine, U.S. Attorney Wendy J. Olson announced.
Rivera admitted in court that on March 18, 2012, he conspired with Barbara Willoughby to distribute 500 grams or more of cocaine. According to court documents, Willoughby drove a rental vehicle from California to Idaho because Rivera’s license was suspended. The vehicle was stopped by law enforcement because it did not have a front license plate. During this contact, law enforcement became suspicious of Rivera and Willoughby’s behavior. A search of the vehicle discovered cocaine in a backpack in the cab of the truck.
The case was investigated by the Bonners Ferry Police Department, Idaho State Police, U.S. Border Patrol, and the North Idaho Violent Crimes Task Force (NIVCTF). NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff’s Office, Shoshone County Sheriff’s Office, Bonner County Sheriff’s Office, Coeur d’Alene Police Department, Post Falls Police Department, and the Coeur d’Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
Business Owner Pleads Guilty to $1.5 Million Wire Fraud SchemeRead the Press Release
KANSAS CITY, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a business that provided rehab loans for distressed properties pleaded guilty in federal court today to defrauding his firm’s lender in a $1.5 million wire fraud scheme.
JonPaul “JP” Edward Sauer, 41, of Olathe, Kan., waived his right to a grand jury and pleaded guilty before U.S. District Judge Greg Kays to a federal information that charges him with wire fraud.
Sauer is the owner of Peak Management in Lenexa, Kan., which provides capital acquisition, financial consulting and real estate investment services. Sauer was formerly the chief executive officer, co-owner and co-manager of Flatirons Financial, Inc., an acquisition and improvement lender that made rehabilitation loans on distressed properties, primarily in Kansas City, Mo. Flatirons Financial was acquired by an unrelated third-party entity in late 2007. From November 2007 until August 2008, when he was terminated, Sauer continued in his management positions.
By pleading guilty today, Sauer admitted that he engaged in a wire fraud scheme from Feb. 1, 2007, to Feb. 14, 2008 in which Wells Fargo Foothill, Inc., suffered losses of approximately $1,500,900.
According to today’s plea agreement, Flatirons Financial made draws on its line of credit with Wells Fargo Foothill of approximately $26.6 million during the period of the fraud scheme. Flatirons Financial used those funds to make loans to rehabilitate distressed properties in the Kansas City, Mo., area. Wells Fargo Foothill relied on borrowing base certificates and supporting documents that were materially false and fraudulent in allowing Flatirons Financial to continue to make draws on its line of credit.
Sauer admitted to engaging in several practices that were contrary to the loan servicing agreement with Wells Fargo Foothill in order to conceal the delinquent status of 129 loans. Sauer caused Flatirons Financial to make payment entries in its loan servicing software even though no payment was received. Often without the knowledge of its borrowers, Sauer caused Flatirons Financial to defer payments on loans that were approaching 75 days past due, adding the amount of the delinquent payments to the loan balance in such a manner that it appeared actual payments had been made. Often without the knowledge of the borrowers, Sauer caused Flatiron Financial to use construction escrow funds to make it appear that the borrowers’ delinquent loans were current, at times transferring the escrow funds for one loan of a borrower to another loan of the same or an affiliated borrower. Sauer caused Flatirons Financial to establish second mortgages for borrowers specifically to use second mortgage funds to make payments on delinquent first mortgages.
As a result of the false payment entries and payment histories, Sauer caused Flatirons Financial to prepare and submit borrowing base certificates and supporting documents at least weekly to Wells Fargo Foothill which were materially false and fraudulent. The borrowing base certificates misrepresented that loans made by Flatirons Financial were “eligible” when in fact the loans were in delinquent status, non-performing, not in good standing, and not “eligible” loans.
Under federal statutes, Sauer is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Senior Litigation Counsel Linda Parker Marshall. It was investigated by the FBI.
Brandon Laferty Sentenced to 30 Months in Prison for Failure to Register as A Sex OffenderRead the Press Release
GREENEVILLE, Tenn. – On Apr. 1, 2013, Brandon Lee Laferty, 27, of Sullivan County, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 30 months in prison for failure to register as a sex offender. Upon his release from prison, Laferty will serve 15 years on supervised release.
In 2011, Laferty was sentenced by the Sullivan County Criminal Court to serve 10 years of probation, and ordered to wear an electronic monitoring device, for solicitation to commit aggravated sexual battery on a 12-year-old child. This required him to register as a sex offender. After transferring his probation to Hawkins County, Tenn., Laferty removed the device and fled from his probation officer. When Hawkins County sheriff’s deputies located him in Hawkins County in November 2011, he attempted to attack them, resulting in gunshot wounds to Laferty’s chest. After the monitoring device was reinstalled on Laferty, he removed it a second time and fled to Roxanna, Ill., where U.S. Marshals arrested him in April 2012.
During sentencing, Judge Greer noted that communities are entitled to notice that a convicted sex offender has entered the community. He further remarked that Laferty’s attempt to attack the Hawkins County officers and his removal of the electronic monitoring devices demonstrated a profound lack of respect for the law and law enforcement officers. Incarceration was needed because the 10 year state court probationary sentence was not effective. The obvious need to protect the public from Laferty justified a sentence at the top of the sentencing range.
The indictment and subsequent conviction of Laferty were the result of an investigation conducted by the Sullivan County, Tennessee Sheriff’s Office, Hawkins County, Tennessee Sheriff’s Office, and U.S. Marshals Service. Assistant U.S. Attorney Helen Smith represented the United States.
Armed Robber Sentenced to More Than 28 Years in Federal PrisonRead the Press Release
Orlando - Chief U.S. District Judge Anne C. Conway yesterday sentenced William Washington (58, Orlando) to 28 years and one month in federal prison for using and carrying a firearm during and in relation to a crime of violence, namely commercial robbery. Washington pleaded guilty to the offenses on July 25, 2012.
According to the plea agreement, on July 5, 2011, Washington used a firearm to rob the RBC Bank in Groveland, Florida. During the robbery, Washington pulled a silver gun from his waistband, placed it on the counter, and pointed it directly at a bank teller. He then demanded money from the teller.
Five days later, on July 10, 2011, Washington used a firearm to rob a Save Rite grocery store in Orlando. During the robbery of the store, Washington threatened to shoot a cashier.“ATF’s ‘Frontline’ strategy is to deploy investigative and technical resources to ensure the safety of our communities,” said Special Agent in Charge Julie Torres. “We come together and work with our law enforcement partners to remove any individual that uses a firearm to commit robberies of commercial businesses or violent acts. This is our mission and commitment to the public and communities we serve to protect.”
"The Orlando Police Department is committed to keeping Orlando a safe city,” said Chief Paul Rooney. “William Washington not only committed armed robberies but tried to kill Orlando Police Officers by shooting at them during his arrest on July 11, 2011. This violent and dangerous criminal is now off the streets thanks to interagency cooperation and the commitment of OPD and ATF, as partners against those who threaten the safety of everyone. OPD will continue to work with ATF in the relentless pursuit of criminals who use guns."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Groveland Police Department, the Orlando Police Department and the Lake County Sheriff's Office. It was prosecuted by Assistant United States Attorney Daniel W. Eckhart.
Ambulance Company and Owners Plead Guilty in Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - MedEx Ambulance, Inc., located in Feasterville, PA, and its owners, Aleksandr N. Zagrodony and Sergey Zagorodny, pleaded guilty to all counts of a 41-count Indictment charging them with health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy to commit health care fraud and wire fraud, announced United States Attorney Zane David Memeger.
Defendant MedEx Ambulance was incorporated in 2004, and its owners operated an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The Zagorodny brothers, or others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants and their employees knew that the patients could be transported safely by other means and, in fact, many of the patients were able to walk. The defendants billed for the ambulance services as if those services were medically necessary. As a result of the fraudulent billing, the Medicare program paid more than $2.5 million for this inappropriate method of transportation.
Aleksandr Zagorodny and Sergey Zagorodny face a maximum sentence of 370 years of imprisonment, three years of supervised release, a fine of $10.25 million, mandatory restitution currently estimated at in excess of $2.6 million, and a $4,100 special assessment. MedEx faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could be excluded from participating in federal health care programs if convicted.
Agents previously seized four ambulances owned by MedEx Ambulance, purchased for over $200,000, which are subject to criminal forfeiture proceedings. Three bank accounts also were seized, and the funds contained in those accounts, as well as other assets, including the company headquarters, are subject to criminal forfeiture proceedings.
Sentencing is scheduled for July 2, 2013 before the Honorable Berle M. Schiller.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-85257 Enter Guilty Pleas in Operation Prison Cell Racketeering CaseRead the Press Release
CORPUS CHRISTI, Texas – Seven former Texas Department of Criminal Justice (TDCJ) correction officers have pleaded guilty in the large-scale racketeering case involving the McConnell Unit in Beeville, United States Attorney Kenneth Magidson announced today.
The hearing lasted all day and concluded less than an hour ago. Former McConnell Unit employees Stephanie Deming, 23, of Beeville, Christy Nesloney, 27, of Cuero, Kimberly Koenig, 32, of Victoria, Yvonne Sandoval, 36, of Sinton, Jaime Garza, 38, of Santa Elena, each entered pleas of guilty to one count of racketeering. Former correction officer Justin Leonard, 23, of Conroe, entered his guilty plea to possession with intent to distribute cocaine. The former officers admitted to acts of bribery and drug trafficking inside and outside the prison system. Not charged in the racketeering count, former correction officer Jamar Green, 29, of Refugio, pleaded to possession with intent to distribute ecstasy. These seven defendants are set for sentencing June 24, 2013.
A total of 30 defendants were taken into custody in late February in relation to this case, including 17 former TDCJ officers. Two other defendants remain fugitives. The cases against the other 25 defendants are still pending and they are presumed innocent unless and until convicted through due process of law. They are set for trial July 8, 2013. The indictment remains sealed as to those charged but not as yet in custody.
The arrests of those charged were a joint effort between TDCJ-Office of Inspector General and federal authorities to attempt to break the “culture of corruption” that permeated the McConnell Unit Prison during a period between 2005 to the present. State and federal authorities worked together in a determined effort to disrupt and dismantle the violent criminal gangs who were profiting through the corruption of guards at the prison.
According to the indictment, 14 former TDCJ correction officers were part of a criminal enterprise that engaged in bribery and narcotics trafficking. The indictment details specific acts, wherein the correction officers assisted prisoners incarcerated in the TDCJ McConnell Unit Prison in Beeville by smuggling cellular telephones and drugs into the prison system. The drugs and phones were allegedly sold inside the prison to other inmates. The phones were used by inmates to assist in their coordination of criminal activities outside the prison, according to the allegations.
The investigation was initiated in 2009 when several Aryan Circle Gang Members were apprehended attempting to transport stolen vehicles from Corpus Christi to Brownsville. The vehicles were destined to be smuggled across the border and sold to Mexico Cartel members. The operation was coordinated by inmates incarcerated at the McConnell Unit through the use of illegal cell phones.
The resulting investigation led to a December 2010 federal indictment charging 14 alleged members and associates of the Raza Unida Street and Prison Gang with committing violent acts to support racketeering (VICAR). These violent acts included home invasions, shootings and conspiracy to commit murder. During the course of the investigation, agents and officers seized approximately 13 pounds of crystal methamphetamine with an estimated street value of more than $300,000. Additionally, seven assault rifles, 14 pistols, five shotguns, five bullet proof vests and approximately 1,000 rounds of ammunition were seized from the gang. All were subsequently convicted, two of whom were sentenced to life imprisonment.
The overall case is the result of a four-year investigation conducted by the U.S. Attorney’s Office, Homeland Security Investigations, TDCJ-OIG, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Corpus Christi Police Department Gang and Organized Crime Units, U.S. Postal Inspection Service and the Bee County District Attorney’s office.
The case is being prosecuted by Assistant U.S. Attorneys Mark Patterson and Michael Hess.
15 People Arrested in Drug RaidRead the Press Release
Montgomery, Alabama - Law enforcement arrested 15 people, executed five federal search warrants and seized over a pound of “ice” methamphetamine, over 30 firearms, nearly $13,000 in cash and several vehicles that were being used to transport illegal drugs, through a joint effort by federal, state and local authorities.
Six of the 15 people arrested were arrested by the federal government for conspiracy to distribute methamphetamine. Those arrested federally were Mark “Mighty Whitey” Elliott, 50 years old, of Deatsville; William “Bill” Elliott, 57 years old, of Deatsville; Wendell “Cain” Gaskin, 40 years old, of Deatsville; Willie C. Moody, 64 years old, of Montgomery; William Christopher Moody, 36 years old, of Montgomery; and Mark Allen Vinson, 43 years old, of Elmore. Mark “Mighty Whitey” Elliott, William “Bill” Elliott, Wendell “Cain” Gaskin, and Mark Vinson were all detained without bond pending trial. Willie C. Moody and Christopher Moody were allowed a bond while awaiting trial.
During this raid, nine of the 15 people were arrest by the State of Alabama for various drug crimes. Those arrested on State of Alabama charges were: Brandon Fuller, of Wetumpka, arrested for unlawful possession of controlled substance and given a $5,000 bond; Faye Diane Allen of Wetumpka, arrested for three counts of unlawful distribution of controlled substance, and given a $30,000 bond; Bobby Roten of Millbrook, arrested for three counts of unlawful distribution of controlled substance, and given a $30,000 bond; Paul Bryant of Montgomery, arrested for two counts of unlawful distribution of controlled substance, and given a $20,000 bond; Caleb Elliott of Deatsville, arrested for trafficking of methamphetamine, and given a $1,000,000 bond; Brandon Horton of Wetumpka, arrested for two counts of unlawful distribution of controlled substance, and given a $20,000 bond; Lindsey Lawrence of Deatsville, arrested for trafficking of methamphetamine, and given a $250,000 bond; Haley Dallas Hamrac of Deatsville, arrested for trafficking of methamphetamine, unlawful possession of controlled substance, and unlawful possession of drug paraphernalia, and given a $1,500,000 bond; and Michael Lee Smith of Atmore, arrested for trafficking of methamphetamine, unlawful possession of controlled substance, and unlawful possession drug paraphernalia, and given a $515,000 bond.
Along with the arrests, law enforcement executed five federal search warrants, two in Montgomery, two in the Deatsville area of Autauga County, and one in the Central community in Elmore County. During the search warrants, law enforcement found lots of evidence of drug dealing including methamphetamine, firearms, cash and other items indicative of drug dealing.
According to the search warrant affidavit, Mark “Mighty Whitey” Elliott is a captain in the Aryan Brotherhood, a powerful prison gang with white supremacy beliefs. Elliott has tattoos of Swastikas, the words “White Power” and SS in lightning bolts on his body, all tattoos that indicate membership in the Aryan Brotherhood. Also, several individuals in this case have used violence, threats of violence and intimidation to further its drug dealing and to collect money.
“This investigation highlights the importance of our law enforcement partnerships,” stated Clay X. Morris, Assistant Special Agent in Charge of the Drug Enforcement Administration. “Without the combined efforts of the law enforcement agencies involvement in the investigation, this organization would have continued to distribute pound quantities of methamphetamine throughout central Alabama. This investigation should send a clear and resounding message that we will not allow our communities to be poisoned by drugs or hate.”
“This investigation is more evidence that ATF’s commitment to combating violent crime is unwavering,” stated ATF Special Agent in Charge Jeff Fulton. “We will utilize every resource to make our communities safer places to live.”
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty. However, if convicted, the six federal arrestees are facing a minimum of ten years in jail and a maximum prison term of life. In the federal system, there is no parole.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Elmore County Sheriff’s Office, the Gulf Coast High Intensity Drug Trafficking Area Task Force, the Central Alabama Drug Task Force, the Autauga County Sherriff’s Office, the Wetumpka Police Department and the Prattville Police Department.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Monday 1 April 2013
Wheeling Resident Enters Plea to Possession of Child PornographyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - A 25-year old Wheeling, West Virginia, resident entered a plea of guilty on March 25, 2013, in United States District Court in Wheeling before Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: JEFFREY JOSEPH OLIVER entered a plea of guilty to“Possession of Child Pornography” on June 12, 2012, in Wheeling. As part of his plea, OLIVER will forfeit the computer and all storage devices, including approximately 181 CDs and DVDs, a cell phone and a Playstation and memory card which were seized on June 12, 2012. OLIVER, who is free on bond, faces a maximum exposure of 10 years imprisonment and a fine of $250,000. This case was prosecuted by by Assistant United States Attorney Robert H. McWilliams, Jr. and was investigated by the West Virginia State Police-Bureau of Criminal Investigations and the Federal Bureau of Investigation.
This case was prosecuted 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, 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.
Wabaunsee County Woman Sentenced for Mortgage FraudRead the Press Release
TOPEKA, KAN. – A woman from Wabaunsee County, Kan., has been sentenced to two years federal probation and ordered to pay a $5,000 fine for mortgage fraud, U.S. Attorney Barry Grissom said today.
Linda Kay Miller, 51, Alma, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted fraudulently submitting false documents to New Century Bank of Manhattan, Kan., in an effort to obtain a $200,000 mortgage loan. Miller admitted she created documents falsely stating that a $65,000 second mortgage on her home in Wabaunsee County had been paid in full. She filed the false documents with the Wabaunsee County Register of Deeds.
Grissom commended the Wabaunsee County Sheriff’s Department, the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.