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Tuesday 26 March 2013
Reliance Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Reliance, South Dakota man convicted of Abusive Sexual Contact was sentenced on March 25, 2013 by U.S. District Judge Roberto A. Lange.
Jarrod Johnson, age 41, was sentenced to 36 months of imprisonment, 5 years of supervised release; and a $100 special assessment to the Victim Assistance Fund.
Johnson was indicted for Sexual Abuse by a federal grand jury on August 22, 2012 and pled guilty to a Superseding Information on January 4, 2013. The charge stems from an incident occurring between November 2010 and December 2010 in which Johnson was living in the same home as the victim in Fort Thompson, South Dakota. During this time period, Johnson and the victim engaged in sexual intercourse on two separate occasions. At the time of the instant offense, the victim was incapable of appraising the nature of the sexual contact.
The investigation was conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Johnson was immediately turned over to the custody of the U.S. Marshal Service.
Registered Sex Offender Pleads Guilty to Child PornographyRead the Press Release
BOSTON – A Cape Cod man, who is a registered sex offender, pleaded guilty today to possessing child pornography.
Scott Harrison, 45, of West Yarmouth, will be sentenced by U.S. District Chief Judge Patti B. Saris on June 19, 2013. As a result of his previous conviction for indecent assault and battery on a child under age 14, the statute provides for a minimum sentence of 10 years and up to 20 years in prison, followed by five years of supervised release.
On Oct. 27, 2010, law enforcement officers executed a search warrant at Harrison’s home seizing two computers. A forensic examination of the two computers revealed child pornography. Harrison became the target of a police investigation after an undercover trooper downloaded child pornography from Harrison’s Internet file sharing account. Harrison placed child pornography on the Internet to be shared and copied by other Internet users.
United States Attorney Carmen M. Ortiz; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Frank Frederickson of the Yarmouth Police Department; and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys David G. Tobin and Suzanne M. Sullivan of Ortiz’s Major Crimes Unit.
Port Authority Police Officer Arrested for Mail FraudRead the Press Release
A criminal complaint was unsealed this morning in Brooklyn federal court charging Port Authority Police Officer Christopher Inserra, a five-year veteran of the Port Authority Police Department (“PAPD”), with mail fraud in connection with his scheme to defraud American Family Life Assurance Company of New York (“AFLAC”) by falsely claiming that he had suffered a debilitating work-related injury to his right arm.1 In furtherance of the scheme, Inserra lied to Port Authority medical staff (“PAMS”), falsely claiming that he suffered from excruciating pain and, at times, loss of mobility to his right arm. As a result, Inserra was classified by the PAPD as injured on duty (“IOD”) and out sick with full pay for nearly two years, from June 1, 2010 until his return to full duty in March 2012. During this time period, Inserra fraudulently filed two claims with AFLAC for short-term disability payments, based upon his alleged inability to return to work. AFLAC approved the claims and mailed two checks to Inserra totaling $31,486.66. Christopher Inserra is scheduled to be arraigned later today before United States Magistrate Judge Robert M. Levy at the U. S. Courthouse, Brooklyn, New York.
The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Keith E. Milke, Acting Inspector-in-Charge, United States Postal Inspection Service, New York, and Robert Van Etten, Inspector General for the Port Authority of New York and New Jersey.
As alleged in the complaint, beginning on June 1, 2010 and continuing until his return to duty in March 2012, Inserra repeatedly and falsely claimed to medical personnel that, while on duty, he suffered a debilitating injury to the lower bicep and elbow region of his right arm. Inserra further falsely claimed that the injury caused him excruciating pain and difficulty moving his right arm.
As alleged in the complaint, during the same time when Inserra was classified as IOD and collecting disability payments from AFLAC, he performed as the lead singer of a Brooklyn based “punk rock” group originally named “At The End Of The World,” and later renamed “Cousin Sleaze.”2 In photographs and video footage of his band’s numerous performances during this time period, Inserra frequently moved his right arm in a violent back and forth manner inconsistent with the severe level of pain and loss of mobility that Inserra had falsely reported to medical personnel.
For example, as alleged in the complaint, in September 2011, some fifteen months after falsely claiming that he was severely injured, and while still classified as IOD, Inserra told treating medical personnel, in substance, that he continued to be in constant pain, had difficulty using his right hand, and could not fully bend his right arm at the elbow. Inserra also claimed, in substance, that his pain level was an eight (8) on a scale of one (1) to ten (10), with ten (10) representing the highest level of pain.
However, during that same month, Cousin Sleaze embarked on a tour entitled the “Miles of Mayhem Tour,” in which they performed at multiple venues spread across the mid-Atlantic and Southeast regions of the United States. Law enforcement agents located and downloaded multiple photographs and video footage of Cousin Sleaze’s performances at the Sidebar Tavern in Baltimore, Maryland on September 21, 2011, the Coffeehouse in Murfreesboro, North Carolina on September 22, 2011, the Burro Bar in Jacksonville, Florida on September 23, 2011, the Surfer’s Pub in Cocoa Beach, Florida on September 24, 2011, and the Caledonia Lounge in Athens, Georgia on September 26, 2011.3 In the photographs and video footage, Inserra was observed holding a microphone in his right hand; extending his right arm out; curling his right arm back and forth; repeatedly bending his right arm at a ninety degree angle; and violently flailing and thrashing his right arm in an up and down and back and forth fashion. Notably, one of the PAMS medical personnel who had examined Inserra on multiple occasions during the course of his claimed injury reviewed the videotaped footage of the “Miles of Mayhem Tour” and concluded that the movements that Inserra performed with his right arm were inconsistent with Inserra’s stated medical complaints.
“As alleged in the complaint, this officer dishonored himself and his department by sliding down the slippery slope of deception and fraud. This prosecution demonstrates that such a violation of the public’s trust will not be tolerated,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the USPIS and the PANYNJ OIG, the agencies responsible for leading the government’s investigation.
Inspector General Van Etten stated “I commend United States Attorney Loretta Lynch and her staff for bringing this prosecution resulting in today’s arrest of a Port Authority Police Officer, who stands accused of violating his solemn oath of office to protect the public. As alleged in the complaint, for more than two years, Officer Inserra lied to medical staff and his fellow police officers at the Port Authority claiming he had a painful and debilitating work-related injury, while performing in a punk rock band and fraudulently collecting short-term disability payments from an insurance policy. Such conduct undermines the dedicated and hard-working officers who put their lives on the line each day. Thanks to our colleagues at the US Postal Inspection Service for their participation in this investigation. The Office of the Inspector General will continue to aggressively pursue and prosecute all those Port Authority employees, including police officers, who engage in deceptive and fraudulent conduct.”
The complaint charges Inserra with mail fraud. If convicted, he faces a maximum sentence of 20 years’ imprisonment and a $250,000 fine.
The government’s case is being prosecuted by Assistant U. S. Attorney Robert L. Capers.
The Defendant:
CHRISTOPHER INSERRA
Age: 31_____________________________
1The charge in the complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
_____________________________
2A schedule of Cousin Sleaze’s performances was obtained from the band’s website.
_____________________________
3 Some of the video footage obtained during the course of this investigation was downloaded from http://www.YouTube.com/user/cousinsleaze . Many of the photographs of performances by Cousin Sleaze were downloaded from various Facebook sites that contained photo footage from those performances.
Owner of Landover Business Pleads Guilty to Failing to Pay over $2.2 Million in Employment TaxesRead the Press Release
hile Failing to Pay Employment Taxes, Spent Hundreds of Thousands of Dollars of Corporate Money for His Personal BenefitGreenbelt, Maryland - U.S. District Judge George L. Russell III, sentenced Alphonso Tillman, age 44, of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for failing to account for and pay over employment taxes. Judge Russell also ordered Tillman to pay restitution of $2,205,991.40.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Using money withheld from your employees’ compensation for personal gain is reckless,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Business owners are responsible to withhold and pay over income taxes from their employees’ compensation to the IRS. Today’s sentencing shows failing to do so is a serious offense to which Mr. Tillman is being held accountable.”
According to his plea agreement, Tillman was the president and sole owner of Remote Surveillance Technology Solutions, Inc. (RSTS), and its successor, Remote Surveillance Technology Services, LLC, (RSTServ). The companies were headquartered in Landover, Maryland and provided security guards to protect commercial and residential properties in Maryland, Virginia, Pennsylvania and the District of Columbia.
RSTS and RSTServ withheld taxes from their employees’ paychecks, including federal income taxes, medicare and social security taxes (payroll taxes), which the companies were required to pay over to the IRS on a periodic basis. Tillman failed to file the required forms or pay the payroll taxes due for RSTS and RSTServ, with the exception of payments made by RSTS to the IRS as a result of IRS collection efforts.
Between 2005 and 2008, Tillman made hundreds of thousands of dollars of expenditures from the RSTS and RSTServ business accounts for his personal benefit while, at the same time, failing to pay over to the IRS payroll taxes withheld from employee paychecks.
The total amount of tax loss resulting from Tillman’s failure to pay taxes owed by RSTS and RSTServ is $2,205,991.40
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Sean B. O’Connell, who prosecuted the case.Northern Michigan Cinemas Owner Sentenced for Tax Evasion and Ordered to Pay Nearly $1,000,000 in RestitutionRead the Press Release
GRAND RAPIDS, MICHIGAN – Elaine Dawson, 69, of Bellaire, Michigan was sentenced to 1 year in prison followed by 1 year of supervised release, announced U.S. Attorney Patrick Miles, Jr. U.S. District Court Judge Janet T. Neff also ordered Dawson to pay restitution of $988,366.00 to the U.S. Internal Revenue Service. The sentence was imposed as the result of an October 10, 2012 guilty plea to a felony information charging her with tax evasion. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez of the IRS Criminal Investigation.
According to court records, Dawson willfully evaded nearly a million dollars in corporate and personal income taxes between 2004 and 2010. Dawson owned five cinemas in Bellaire, Petoskey, Gaylord, Mackinaw City, and Cheboygan, Michigan. She routinely under-reported the number of patrons who bought movie tickets, and under-reported her receipts from sales of concessions, gift certificates and other items. Dawson skimmed the cash from the unreported sales for personal use, and disclosed only the remaining sales as income when preparing her tax returns.
In addition to paying all the back taxes she had evaded, Dawson is required to pay substantial fraud penalties to the IRS. Dawson liquidated substantial personal assets in order to be able to pay the restitution and penalties.
“Defrauding the tax system does a great deal of harm to the American public,” said Martinez. “Especially in challenging times, everyone’s full contribution counts,” said Miles, “hiding one’s wealth while allowing other hard-working, honest citizens to carry the burden isn’t fair, and won’t be tolerated.”
The case was prosecuted by Assistant U.S. Attorney Nils R. Kessler.
END
North Carolina Women Sentenced for Dealing Meth in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two North Carolina women have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Chelsea Elizabeth McDowell, 27, of Hickory, NC, and Sandra Christilov Sylvester, 41, of Lawndale, NC, pleaded guilty in November 2012 to conspiracy to possess with intent to distribute methamphetamine. McDowell was sentenced to 54 months in federal prison and Sylvester was sentenced to 66 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, up until Jan. 29, 2011, McDowell and Sylvester conspired with others to assist in transporting methamphetamine and money obtained from selling drugs to East Texas. During that time, both women were arrested in the Eastern District of Texas for possessing methamphetamine. They each admitted to being responsible for distributing methamphetamine through East Texas to Atlanta, Georgia. A federal indictment was returned on Apr. 11, 2012, charging them with federal drug crimes.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Moore Man Who Stole Veteran Grave Markers from Tribal Cemetary to Sell for Salvage Will Serve Prison TimeRead the Press Release
Grave Markers Stolen Include those of a World War II
Comanche Code Talker and Vietnam VeteranOklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced that JASON P. PARAS, 33, of Moore, Oklahoma, was sentenced to serve four months in prison for the theft of two grave markers from a Kiowa-Comanche-Apache Intertribal Cemetery. Paras was charged on the federal court’s Indian country misdemeanor docket on September 20, 2012, and pled guilty on October 18, 2012.
Paras admitted that in June of 2012 he stole several brass grave markers from the Deyo Mission Cemetery, a Kiowa-Comanche-Apache Intertribal Cemetery located on Indian trust land west of Lawton, Oklahoma. The brass grave markers are furnished by the U.S. Department of Veterans Affairs at no cost to the family for deceased military service members. Paras admitted he stole the brass markers to sell to a recycling company in Lawton, Oklahoma, as scrap metal. One of the grave markers was that of a Comanche Tribal member and “Comanche Code Talker” from World War II who was admitted to the Oklahoma Military Hall of Fame in September of 2011. The Comanche Code Talkers were part of a classified special unit of tribal members that used coded messages in the Comanche language to evade detection by German forces during World War II in Europe. Another marker belonged to Comanche tribal member who was a Vietnam veteran. As part of the sentence, Paras will be required to pay to replace the two markers he stole and sold as scrap metal.
The case was investigated by the Comanche Nation Police Department and the Comanche County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Arvo Q. Mikkanen.
Mission Man Indicted for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse.
Zachary Poorman, age 25, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; life of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Poorman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Poorman was remanded to the custody of the U.S. Marshal pending trial. A trial date has been set for May 14, 2013.
Mission Man Indicted for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse.
Mart Kirkland, age 23, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; life of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Kirkland is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Kirkland was remanded to the custody of the U.S. Marshal pending trial. A trial date has been set for May 14, 2013.
Midwest City Man Who Fled to Philippines Following Indictment Related to Ponzi Scheme to Now Serve 118 Months in Federal PrisonRead the Press Release
Ordered to Pay Nearly $4.6 Million in Restitution to Victims
Oklahoma City, Oklahoma – JOE DON JOHNSON, 43, from Midwest City, Oklahoma, was sentenced by United States District Judge David L. Russell to serve 118 months in prison for conspiracy to commit money laundering in connection with a Ponzi scheme involving securities fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Johnson was indicted by a federal grand jury on February 3, 2011, along with Brian William McKye, from Bethany, Oklahoma, on a nine-count indictment. Following the indictment, Johnson fled the United States to the Philippines.
The case against McKye continued and McKye was found guilty of securities fraud and conspiracy to commit money laundering on November 17, 2011, following a three-day jury trial. Evidence from trial showed that from 2006 through 2009, McKye, did business as Global West Funding Ltd., Co. Global West Financial LLC, Global West Financial LLC, Sure Lock Financial LLC, Sure Lock Loans LLC, and The Wave-Goldmade Ltd. McKye used these businesses to market investment contracts whereby investors were guaranteed a monthly rate of return from 6.5% to 20% for 6 to 60 months. Investors were told they had “100% total control” of their money and that the investments were secured by risk free real estate notes. However, McKye was not a registered investment advisor or broker-dealer in the State of Oklahoma and he used the money he received from investors to pay his own personal and business expenses and some limited returns to investors to keep the scheme on-going. Through this Ponzi scheme, McKye defrauded 115 victim-investors out of over $4.5 million. McKye’s companies were shut down by the Oklahoma Department of Securities in the spring of 2009.
In March of 2012, Johnson was apprehended in the Philippines and returned to the United States to face trial. On September 26, 2012, Johnson pled guilty to conspiracy to commit money laundering for his role in the Ponzi scheme involving McKye.
At the sentencing hearing, Judge Russell ordered Johnson to serve 118 months in federal prison, followed by three years of supervised release. In addition, Johnson was ordered to pay 4,592,610.68 in restitution to his victims. McKye was sentenced in April of 2012 to serve 262 months in prison, followed by three years of supervised release, and ordered to pay $4,516,208.97 in restitution to his victims.
This case was investigated by the Criminal Investigations of the Internal Revenue Service and prosecuted by Assistant United States Attorney Susan Dickerson Cox.
Mescalero Apache Man Pleads Guilty to Sexually Abusing A MinorRead the Press Release
ALBUQUERQUE – Gregory Warren Second, 22, a member and resident of the Mescalero Apache Nation, pled guilty this afternoon to sexually abusing a minor under a plea agreement with the U.S. Attorney’s Office. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Second was arrested in Nov. 2012, on a criminal complaint alleging that in May 2012, he engaged in a sexual act with an Indian child between the ages of 12 and 16 years on the Mescalero Indian Reservation. He has been in custody since his arrest.
During this afternoon’s proceedings, Second entered a guilty plea to a felony information charging him with sexual abuse of a child under the age of 16 years. Second admitted that on May 22, 2012, he knowingly engaged in a sexual act with a 12-year-old child.
Second will remain in federal custody pending his sentencing hearing, which has yet to be set. At sentencing, Second faces a maximum penalty of 15 years in prison to be followed by at least five years of supervised release. Second also will be required to register as a sex offender.
This case was investigated by the BIA’s Office of Justice Services, Mescalero Agency and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, local and tribal 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.justice.gov/psc/.
Medford Man Sentenced in Child Pornography CaseRead the Press Release
BOSTON – A Medford man was sentenced today for possessing child pornography.
James Patrick Judge, 58, was sentenced by United States District Judge William G. Young to three years in prison, followed by five years of supervised release. In January, Judge pleaded guilty to possession of child pornography.In 2011, Judge was arrested after receiving a child pornography video he had ordered through the mail. In a separate case, in May 2012, Judge was arrested at the Medford Public Library after allegedly using the library’s computer to view and print pornographic images of boys. A probable cause hearing in that case is scheduled for April 30, in Somerville District Court.
U.S. Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Chief Leo A. Sacco, Jr. of the Medford Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys David G. Tobin and Suzanne M. Sullivan of Ortiz’s Major Crimes Unit.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Insider Trading Charges Against Former Chief Information Officer of Technology Company and Hedge Fund AnalystRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced conspiracy and securities fraud charges against DAVID RILEY, a former Chief Information Officer and Vice-President for Foundry Networks, Inc. (“Foundry”), and MATTHEW TEEPLE, an analyst for an investment advisory firm to a family of hedge funds located in San Francisco, California (“Investment Adviser A”), for their alleged involvement in an insider trading scheme. RILEY allegedly provided material, nonpublic information (“Inside Information”) concerning Foundry, a publicly traded technology company, to TEEPLE. TEEPLE then caused others to execute trades based upon the Inside Information, including in accounts managed by Investment Adviser A. In total, these trades earned Investment Adviser A profits of over $16 million and enabled Investment Adviser A to avoid losses in excess of $11 million. TEEPLE was arrested this morning in San Clemente, California, and is expected to be presented later today in federal district court in the Central District of California. Riley was arrested this morning in San Jose, California, and is expected to be presented later today in federal district court in the Northern District of California.
The Manhattan U.S. Attorney and the FBI also announced the unsealing of the guilty plea of JOHN JOHNSON to conspiracy and securities fraud charges in connection with this insider trading scheme. JOHNSON pled guilty to these charges on March 18, 2013, before U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, when David Riley and Matthew Teeple chose to traffic in inside information involving high-tech companies, they embarked on a high-stakes game that has repeatedly proven to be unwinnable. With the charges against them and the plea of John Johnson that we announce today, the ranks of privileged professionals who behave as if they are above the law continue to swell.”
FBI Assistant Director-in-Charge George Venizelos said: "There may be little to distinguish this case from the dozens of others we have made against industry insiders and investment advisers in the past several years. There is certainly nothing unique about the outcome: If you allegedly traffic in inside information, by providing it or trading on it, you will inevitably be found out, charged and prosecuted."
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against RILEY, TEEPLE, and JOHNSON.
According to the Complaint and other court documents:
Throughout the insider trading scheme, RILEY obtained Inside Information from Foundry and shared it with TEEPLE. As Chief Information Officer and a Vice President at Foundry, RILEY had access to monthly and quarterly financial reporting, along with other sensitive, non-public information relating to Foundry, well before such information became public. After receiving Inside Information concerning Foundry from RILEY, TEEPLE then shared this information with others, including another analyst who works at Investment Adviser A (the “Investment Adviser A Analyst”), and others who then traded in Foundry securities. Investment Adviser A was an investment adviser for a family of hedge funds.
For example, on July 16, 2008, RILEY provided TEEPLE with Inside Information concerning Foundry’s acquisition by another technology company, Brocade Communications Systems, Inc. (“Brocade”), before it was publicly announced on July 21, 2008. Within two hours of this conversation between RILEY and TEEPLE, TEEPLE made a phone call to the Investment Adviser A Analyst. While TEEPLE and the Investment Adviser A Analyst were on the phone, Investment Adviser A began purchasing a large amount of Foundry stock and call option contracts and selling put option contracts for Foundry. From approximately July 16, 2008 until the July 21, 2008 public announcement of Brocade’s acquisition of Foundry, Investment Adviser A purchased approximately 3,245,380 shares of Foundry. Based upon its trading in connection with the Inside Information concerning Foundry’s acquisition by Brocade, Investment Adviser A profited in the amount of approximately $13.6 million and avoided losses of approximately $7.4 million that it would have incurred due to its prior positions in Foundry.
TEEPLE also provided the Inside Information concerning Brocade’s impending acquisition of Foundry to two acquaintances of his, JOHN JOHNSON and Karl Motey, before the July 21, 2008 public announcement. TEEPLE told JOHNSON and Motey that Foundry was going to be acquired by Brocade, and the approximate price at which Foundry was going to be acquired, which turned out to be substantially accurate when the terms of the acquisition were made public. JOHNSON traded on this Inside Information and profited in excess of $136,000.
In addition, on multiple occasions, RILEY provided Inside Information concerning Foundry’s quarterly financial reporting to TEEPLE in advance of any public announcement. TEEPLE contacted the Investment Adviser A Analyst shortly after these conversations with RILEY in April 2008 and October 2008. Investment Adviser A subsequently traded in large quantities of Foundry equities based upon this Inside Information, amassing millions of dollars in both profits and avoided losses.
RILEY, 47, of San Jose, California, is charged with one count of conspiracy to commit securities fraud, and three substantive securities fraud counts. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Each of the securities fraud counts carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense.
TEEPLE, 41, of San Clemente, California, is charged with one count of conspiracy to commit securities fraud, and three substantive securities fraud counts. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Each of the securities fraud counts carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense.
JOHNSON, 46, of Arvada, Colorado, is charged with one count of conspiracy to commit securities fraud, and one substantive securities fraud count. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense.
Mr. Bharara praised the investigative work of the FBI. He also thanked the SEC. He noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Steve Lee is in charge of the prosecution.
The charges contained in the Complaint against TEEPLE and RILEY are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Riley, David and Teeple, Matthew Complaint
Johnson, John InformationMadison Couple Each Sentenced to more than 10 Years Imprisonment for their Role in a Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Michael Pojar, 34, and Stacey Pojar, 33, both of Madison, Nebraska, were sentenced on March 25, 2013, to 158 months and 138 months in prison respectively by United States District Judge John M. Gerrard. The two had previously pled guilty for their involvement in a conspiracy to distribute more than one pound of “ice” methamphetamine in the Madison, Nebraska, area from September of 2011 and continuing through October of 2012. Each of the defendants’ sentences included additional prison time as they were both under terms of supervised release for prior felony drug convictions at the time they committed this offense.
This case was the result of a joint investigation by the Drug Enforcement Administration, the Nebraska State Patrol, and Homeland Security Investigations.
Luzerne County Man Indicted on Federal Child Pornography ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an indictment today charging a Luzerne County man with the receipt, distribution and possession of child pornography.
According to United States Attorney Peter J. Smith, Jeremy Joseph Box, age 29, of Hazleton City, Luzerne County, was charged by the grand jury for allegedly committing the offenses between 2011 and 2013.
The charges against Box stem from an investigation by the Pennsylvania State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcements (ICE) Homeland Security Investigations (HSI).U.S. Attorney Smith requests that anyone with information related to this matter please contact the U.S. Department of Homeland Security Tipline at 1-866-347-2423.
Box was taken into custody on December 6, 2012 on related state charges.
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.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Assault Resulting in Serious Bodily Injury, was sentenced on March 25, 2013 by U.S. District Judge Roberto A. Lange.
Earl LaRoche, age 54, was sentenced to 5 months of imprisonment. LaRoche is also to pay a $100 special assessment to the Victim Assistance Fund.
LaRoche was indicted by a federal grand jury on May 8, 2012 and pled guilty to Count II of the Indictment on January 7, 2013. The charge stems from an incident occurring in October of 2011, in which the victim and LaRoche were in a relationship, cohabitating together at a residence in Lower Brule. On the evening of October 8, 2011 and into the morning hours of October 9, 2011, they hosted a gathering of friends where alcohol was consumed. The victim was playing table top soccer with others at the gathering when LaRoche came up behind her and bit off a third of her ear.
The victim was taken to the hospital in Chamberlain where it took 25 sutures to re-attach the piece of the ear.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
LaRoche is to self-report by Tuesday April 2, 2013.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Assault Resulting in Serious Bodily Injury, was sentenced on March 25, 2013 by U.S. District Judge Roberto A. Lange.
Earl LaRoche, age 54, was sentenced to 5 months of imprisonment. LaRoche is also to pay a $100 special assessment to the Victim Assistance Fund.
LaRoche was indicted by a federal grand jury on May 8, 2012 and pled guilty to Count II of the Indictment on January 7, 2013. The charge stems from an incident occurring in October of 2011, in which the victim and LaRoche were in a relationship, cohabitating together at a residence in Lower Brule. On the evening of October 8, 2011 and into the morning hours of October 9, 2011, they hosted a gathering of friends where alcohol was consumed. The victim was playing table top soccer with others at the gathering when LaRoche came up behind her and bit off a third of her ear.
The victim was taken to the hospital in Chamberlain where it took 25 sutures to re-attach the piece of the ear.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
LaRoche is to self-report by Tuesday April 2, 2013.
Laredoan Sentenced to 10 Years for Marijuana ConspiracyRead the Press Release
LAREDO, Texas – Jesus Alberto Rodriguez, of Laredo, has been ordered to prison for possessing with intent to distribute 426 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. He pleaded guilty in October 2012.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Rodriguez, 36,to 121 months in federal prison to be followed by a five-year-term of supervised release.
In the summer of 2010, Rodriguez discussed with a confidential source about moving a large quantity of marijuana. The discussions concerned Rodriguez obtaining transportation for marijuana he said was coming from the Zapata area to Laredo, the risk due to law enforcement observation in the area and the confidential source acquiring a driver and a means of transportation to get the marijuana to Dallas. As a result of these discussions, Rodriguez arranged to deliver the marijuana, which was going to be approximately 700 to 800 pounds, to the parking lot of a local toy store on San Bernardo Street in Laredo in two separate trucks on July 6, 2010.
Accordingly, a Drug Enforcement Administration (DEA) undercover agent waited in the parking lot, posing as a driver working for the source. Shortly thereafter, Rodriguez said the delivery was going to be in two parts: one truck was going to contain 21 bundles and the other was going to have 10 for a total of 31 bundles of marijuana. The agent then witnessed a white Ford F-250 pull into the parking lot next to the agent. The driver of the Ford F-250 was later identified as a co-defendant, Juan De Dios Cardenas.
De Dios Cardenas told the agent that after he delivered the load, to return to the parking lot where he was going to receive another truck load of marijuana. The agent then got inside the truck and drove to a nearby warehouse, at which time several DEA agents unloaded a total of 21 bundles of marijuana.
The undercover agent then returned to the same parking lot with the empty Ford F-250. When he did, he came upon a black Chevrolet Tahoe driven by another co-defendant, Juan Carlos Gonzalez-Vargas. De Dios Cardenas then got into the Ford F-250 passenger seat with the undercover agent and directed him to a movie theater a short distance away, where the second load vehicle was located. There, De Dios Cardenas pointed out a parked red Ford Explorer in the parking lot which contained the second part of the load of marijuana delivery that Rodriguez had arranged.
DEA Agents weighed and tested the bundles and determined the total weight to be 432.6 kilograms.
At the time of his guilty plea, Rodriguez admitted he had made telephone calls arranging for the delivery of the marijuana.
During the hearing today, Judge Marmolejo Garcia determined Rodriguez was a manager or supervisor of this July 2010 load and was held accountable in relevant conduct for three other loads of marijuana totaling more than 5,500 kilograms from March through June 2008.Rodriguez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. De Dios Cardenas and Gonzalez-Vargas have each also entered pleas and were sentenced to 60 and 63 months, respectively.
The case was investigated by the DEA and prosecuted by Assistant United States Attorney Roberto F. Ramirez.
Justice Department Transfers West Dallas Properties to Dallas Area Habitat for Humanity for Demolition and DevelopmentRead the Press Release
Properties Were Forfeited Following Successful Prosecution of the Gator Boyz Drug Trafficking and Criminal Street Gang
DALLAS — U.S. Attorney Sarah R. Saldaña and U.S. Marshal Randy Ely, of the Northern District of Texas, hosted an event this morning to transfer ownership, under a Justice Department program entitled, “Operation Goodwill,” of four forfeited properties on Life Avenue in West Dallas to the Dallas Area Habitat for Humanity for demolition and development. The properties were forfeited to the government as a result of the successful investigation, by the Dallas Police Department’s Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), of the violent drug trafficking and criminal street gang, known as the Gator Boyz, who bought and used these properties to traffic their drugs.
U.S. Attorney Saldaña and Marshal Ely were joined by Special Agent in Charge Robert Champion, of the Dallas ATF, and Dallas Police Chief David Brown in presenting a ceremonial deed of transfer to Mr. David W. McKeever, Jr., the Chief Financial Officer of Dallas Area Habitat for Humanity; Mr. Mike Rawlings, Dallas Mayor and Mr. Randy Skinner, Executive Director of Strategic Justice Initiatives.
Marshal Ely advised, “The United States Marshals Service is proud to partner with those in our community seeking to revitalize neighborhoods that have been affected by gang and drug-related crime. Through programs like Operation Goodwill, we are able to take the ill-gotten gains from this criminal activity and redirect them toward legitimate needs in our communities.”
“From the very beginning of this investigation, it was clear that we wanted to not only take these criminals, who were holding this neighborhood hostage, off the street, but take back this neighborhood for its residents so they could once again feel safe and secure,” said U.S. Attorney Saldaña. “I commend the Dallas Police Department’s Gang Unit and ATF for their combined investigative efforts and all of those who worked tirelessly to see the properties transferred to Habitat for redevelopment.”
“At Dallas Habitat, one of our biggest goals is to revitalize, reclaim and reinvent entire neighborhoods, and that’s exactly what we are doing by getting rid of these properties,” said Mr. McKeever. “This neighborhood simply cannot move forward and improve until these out of place, run down drug houses are gone.”
The Gator Boyz, which was made up of members of both the Bloods and Crips, used drug proceeds to purchase houses, including these four properties on Life Avenue. This gang, not only dealt drugs from these properties, but further terrorized the neighborhood by walking an alligator on a leash down the street. Thanks to the tremendous efforts of the Dallas Police Department’s Gang Unit and ATF, approximately 304 grams of crack cocaine, 440 grams of marijuana and dozens of firearms were seized. In addition, approximately 20 gang members were convicted, including the gang’s leaders, brothers Patrick and Tyrone Weatherall, who are now serving 20 and 30-year federal prison sentences.
Dallas Habitat recognizes its longtime partner, Republic Title, for their research and time commitment in making these property transfers possible.
Since 1986, Dallas Habitat has served more than 1,200 low-income families, in more than 25 neighborhoods, using affordable homeownership as an anchor for hope, change and stabilization. Dallas Habitat believes that hard-working individuals and families be provided the opportunity to live in thriving neighborhoods where hopes and dreams are realized. For more information on Dallas Area Habitat for Humanity visit http://www.dallasareahabitat.org.
Justice Department Issues Business Review Letter<br /> to Intellectual Property Exchange InternationalRead the Press Release
WASHINGTON – The Department of Justice today declined to state its enforcement intentions regarding the implementation of a proposal submitted by IPXI Holdings LLC and its wholly-owned subsidiary Intellectual Property Exchange International Inc. (IPXI) to develop an exchange for the trading of unit license rights (ULRs) to sets of patents. The department said that although IPXI’s proposed exchange potentially could benefit the intellectual property (IP) marketplace and encourage innovation through increased licensing efficiency, sublicense transferability and greater transparency, it also potentially raises competitive concerns. Due to the inherent uncertainties and potential competitive concerns associated with IPXI’s novel business model, the department declined to state its enforcement intentions.
The department’s position was stated in a business review letter to counsel for IPXI from Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.IPXI proposes to create a proprietary market for patent licenses. To do so, the company intends to obtain exclusive patent licenses that it will then sublicense through the sale of tradable instruments called ULRs, which are standardized licenses for defined sets of patents and uses under terms and conditions set jointly with patent holders. As part of the process, IPXI will review the patent rights at issue by examining validity, current infringement and other issues, and determine market interest to license those patents.
IPXI may become the exclusive licensor of patents or patent bundles that might otherwise compete. IPXI has proposed certain procedures that might mitigate the likelihood that anticompetitive effects will materialize. However, because IPXI cannot predict in advance the patents or markets that might be at issue, the department is unable to engage in the fact-intensive analysis necessary to assess the likely competitive effects of the proposal. In addition, given the novelty of IPXI’s proposal, it is possible that other potential competitive concerns may later emerge once IPXI’s platform is operational.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.
A file containing the business review request and the department’s response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure.
Hartford Man Involved in Crack Distribution Ring Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
March 26, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ERIC GOMES, also known as “Goober Dust,” 46, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 92 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine in Hartford.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, which included court-authorized wiretaps and controlled purchases of narcotics, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, GOMES and others conspired to distribute crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford.
GOMES’s criminal history includes 14 felony convictions. On November 28, 2012, he pleaded guilty to one count of conspiracy to possess and distribute 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Goodwin: “another Pedophile Off the Streets”Read the Press Release
Wyoming County man admits collecting child pornography, pleads guilty to federal crime
CHARLESTON, W.Va. – “We’ve taken another pedophile off the streets,” U.S. Attorney Booth Goodwin announced today, in the wake of a Wyoming County man’s federal guilty plea on child pornography charges. David Walter Martin, Jr., 40, pleaded guilty to possession of child pornography on March 26, 2013, before United States District Judge Irene C. Berger in Beckley. Martin admitted he collected more than 600 pictures and videos of children having sex or performing sexual acts. The child pornography was found on Martin’s computers after he downloaded it from the Internet.
“This kind of crime is utterly revolting,” Goodwin said. “Behind every piece of child pornography traded over the Internet, there is a child somewhere who has been exploited in the most heinous way imaginable. People who download these pictures encourage that exploitation, and I will be relentless in prosecuting them.”
Martin faces up to 10 years in prison and a $250,000 fine when he is sentenced on August 1, 2013.
The Mullens Police Department, the Wyoming County Sheriff’s Department, and the West Virginia State Police Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.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 http://www.justice.gov/usao/wvs/PSCpage.html. For more information about internet safety education, please visit www.usdoj.gov/psc and follow the link named “Resources.”
Fremont Woman Charged in Million Dollar Fraud SchemeRead the Press Release
SAN JOSE - A San Jose federal grand jury indicted Rosemarie Gan, of Fremont, on March 13, 2013 with five counts of wire fraud, United States Attorney Melinda Haag announced.
According to the indictment, Gan, 49, is alleged to have stolen over $1,000,000 from various investors who believed they were investing in her company, Argee’s Travel and Gifts. Investors into Argee’s Travel and Gifts expected their investments to fund the purchase of airplane tickets, and, thereafter, entitle them to commission payments following the sale of these airplane tickets. Instead, Gan allegedly stole investors’ funds and used them to pay delinquent investor commission payments and to pay for her personal living expenses.
Yesterday, Gan made her initial appearance in federal court in San Jose before Magistrate Judge Howard Lloyd. Gan was detained pending a detention hearing. Gan’s detention hearing is scheduled for 10:30 AM on March 28, 2013 before Magistrate Judge Paul Grewal.
The maximum statutory penalty for each count of wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or gross loss from the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kamille Singh. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Gan must be presumed innocent unless and until proven guilty.
Forty-Two Indicted on Charges Relating to Manufacture and Distribution of Methamphetamine in Anderson CountyRead the Press Release
KNOXVILLE, Tenn. – On Mar. 19, 2013, 42 individuals, many of whom reside in Anderson County, were indicted by a federal grand jury for various charges relating to the manufacture and distribution of methamphetamine.
In addition to manufacturing and distributing methamphetamine, the charges also include: conspiracy to manufacture and distribute methamphetamine; possessing equipment, chemicals, products and materials which may be used to manufacture methamphetamine, knowing that the equipment, chemicals, products and materials would be used to manufacture methamphetamine; maintaining residences, one of which was less than 1000 feet away from an elementary school, for the purpose of manufacturing methamphetamine; and federal firearms offenses, including two for using firearms in furtherance of a drug trafficking crime and one for being a felon in possession of a firearm.
If convicted, the conspiracy charge, for which all are charged in the indictment, is punishable by no less than 10 years and up to life in prison, a fine of up to $10 million, and a term of supervised release of no less than five years.
Those indicted include: 1. Lawrence Wilbur Scriver, a.k.a. Stoney, 45, of Lake City; 2. Stephen Michael Conner, 46, of Knoxville; 3. Christopher Ray Farmer, 51, Clinton; 4. Thomas Gene Wright, a.k.a. Tommy Wright, 40, of Lake City; 5. Shaun Jeffery Williams, a.k.a. Cowboy, 26, of Heiskell; 6. Crystal Gail Barnes, a.k.a. Crystal Plemons, 36, of Powell; 7. Layla Leigh Bean, 32, of Powell; 8. Jeffrey Scott Braden, 36, of Lake City; 9. Lisa Charlene Bullock, a.k.a. Lisa Taylor Bullock, 36, of Powell; 10. Kevin Jason Ingram, 41, of Clinton; 11. Derrick Ray Farmer, 33, of Clinton; 12. Ron Walter Austin, 36, of Andersonville; 13. Brandy Danielle Braden, 30, of Lake City; 14. Cassaundria Nichole Sweat, a.k.a. Cassaundra Sweat, 27, of Clinton; 15. Ronnie Gene Murphy, 41, of Knoxville; 16. James Edward Bean, II, 32, of Oliver Springs; 17. Marty Lynn Ivy, 37, of Heiskell; 18. Shinna Marie Rutherford, 33, of Caryville; 19. Kimberly Frances Baker, 24, of Maryville; 20. Aaron James Burress, 32, of Clinton; 21. Junior Lee Phillips, 58, of Clinton; 22. Shannon Marie Ruffner, 28, of Lake City; 23. Aaron Wayne Snelson, 30, of Clinton; 24. Sheena Jean Snow, 26, of Powell; 25. Timothy Scott Stewart, a.k.a. Bodine, 41, of Powell; 26. Kasey Dawn Miller, 33, of Lake City; 27. Breanne Angela Leighton, a.k.a. Bree, 22, of Lake City; 28. Gregory Jason McCollum, 37, of Harriman; 29. Allison Nicole Miller, 27, of Clinton; 30. Donny Lee McGhee, 41, of Lake City; 31. Jonathan Richard McQueen, 23, of Gallatin; 32. James Perry Phillips, 33, of Lake City; 33. Joseph Hunter Jacobs, 23, of Clinton; 34. Michael Lee Jackson, 33, Oliver Springs, Tenn.; 35. James Delaney Bazzoon, 33, of Knoxville; 36. Justin Michael Ford, 26, of Lake City; 37. Junelle Elaine Jerrell, a.k.a. Debbie McGee, Debbie Levon McGhee, 60, of Lake City; 38. Stacey Yvette Jett, 44, of Knoxville; 39. Jessica Ruth Davis, 28, of Knoxville; 40. Brandy Nicole Grahl, 29, of Heiskell; 41. Walter James Lee Griffith, 30, of Powell; and 42. Lindsey Shawntae Bailey, 25, of Washburn.
The investigation leading to this indictment was a joint effort between the Drug Enforcement Administration, Tennessee Bureau Investigation, Tennessee Methamphetamine and Pharmaceutical Drug Task Force, Anderson County Sheriff’s Office, Knox County Sheriff’s Office, Knoxville Police Department, Oak Ridge Police Department, the Seventh Judicial Crime Task Force, and the Clinton Police Department.
This indictment is part of “Operation Meth-odical Destruction,” which is an operation designed to address methamphetamine related crime in Anderson and Knox counties, spearheaded by the dedicated local and state law enforcement agencies in these counties.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
(Download Indictment)
Former Toledo Doctor Sentenced to Five Years in Prison for Illegally Dispensing OxycodoneRead the Press Release
A former Toledo medical doctor was sentenced to five years in prison after previously pleading guilty to crimes related to the dispensation of 1,300 pills of Oxycodone and fraudulently billing Medicaid for more than $78,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Darrell A. Hall, age 54, previously pleaded guilty to conspiracy to distribute a controlled substance, health care fraud and a tax count.
“This sentence should send a message to any doctor who would use their prescription pad as a means to run a pill mill,” Dettelbach said.
“This case is a clear example of a doctor putting greed above quality care for his patients," said Ohio Attorney General Mike DeWine. "This joint state and federal investigation found that this doctor improperly prescribed the drug Oxycodone, and he also defrauded the Medicaid program by claiming he provided more services than he actually did."
Hall was licensed to practice medicine and operated a practice under the name “EDM Health Services, LLC.” He was also a registered provider to Ohio Medicaid, which provides free health benefits to qualified low-income Ohio residents, according to court records.
Hall conspired with others between August 2008 through May 2009 to distribute 1,300 pills of 80 milligrams of Oxycodone for no legitimate medical purpose, according to court records.
He also fraudulently billed Ohio Medicaid in the amount of $78,113.73 between January 2007 and December 2009, according to court records.
He also failed to pay $97,384.88 in taxes that he owed to the Internal Revenue Service owed on behalf of EDM Health Services, LLC, between 2007 and 2010, according to court records.
The health care fraud charge was investigated by Ohio Attorney General Mike DeWine’s Health Care Fraud Unit, while the other charges were investigated by the Drug Enforcement Administration, Detroit, Michigan, and the Internal Revenue Service, Toledo, Ohio. The case is being handled by Assistant United States Attorneys Joseph R. Wilson and Thomas P. Weldon.
Former Pontiac City Council Member Pleads Guilty to Accepting BribesRead the Press Release
A former Pontiac City councilman pleaded guilty today in federal court in Detroit to accepting bribes, United States Attorney Barbara L. McQuade announced.
United States Attorney McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.
Pleading guilty before U.S. District Court Judge Bernard A. Friedman was Everett Seay, 61, of Pontiac, Michigan.
According to court documents, beginning in May 2008, Everett Seay met repeatedly with a "J.B.," a person who purported to be a drug dealer from Chicago, who was seeking the assistance of members of the Pontiac City Council to obtain a "regulated use" ordinance to open a business to buy and sell gold for the purpose of laundering drug proceeds. Unknown to Seay, “J.B.” was actually an FBI agent acting in an undercover capacity. During several meetings, Seay solicited and accepted bribe payments from J.B. Between July and December, 2008, Seay received $10,800 in bribe payments from “J.B.”
United States Attorney Barbara L. McQuade said, “Public officials who accept bribes do not belong in office. We hope that our efforts to prosecute corrupt public officials will cause deter candidates from seeking office for personal gain.”
Special Agent in Charge Robert D. Foley stated, “Public officials who abuse their power to enrich themselves rather than serving the citizens will be brought to justice. The FBI is committed to stopping those who betray public trust and rob taxpayers of honest government."
The criminal charges against Everett Seay carry a statutory maximum penalty of ten years in prison and a fine of up to $250,000. Sentencing has been set for June 26, 2013.
This case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Sheldon Light.
Former Pennsylvania Charter School Operator Charged with Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton has handed up a two count Indictment today charging Dennis Bloom, age 58, of Mount Pocono, Pennsylvania, with tax fraud. Specifically, Bloom is charged with one count of tax evasion and one count of filing a false tax return as a result of his alleged failure to include a substantial amount of income in his 2006 federal income tax return. Bloom is the former chief executive officer of the Pocono Mountain Charter School and Pastor of Shawnee Tabernacle Church, both in Mount Pocono.
According to United States Attorney Peter J. Smith, the charges stem from an investigation initiated by the Internal Revenue Service-Criminal Investigations and the U.S. Department of Education, Office of Inspector General. Prosecution is assigned to Assistant United States Attorney Lorna N. Graham.
“The Role of IRS-Criminal Investigation becomes more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Akeia Conner, Special Agent in Charge of the IRS-Criminal Investigation, Philadelphia Field Office. “As we often see, the victims are not only taxpayers but also the individuals and entities who suffer the financial harm. Be assured that we are serious about investigating these crimes and we will vigorously pursue criminals who steal from the American taxpayer."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is eight years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Charleston-based Chase Bank Executive Admits to Major Embezzlement SchemeRead the Press Release
McCoy stole more than a half-million dollars from Chase; created unauthorized cashier’s checks to purchase a Cadillac SUV and a ’68 Chevy Camaro
CHARLESTON, W.Va. –A former Charleston-based J.P. Morgan Chase Bank (“Chase Bank”) executive who admitted embezzling more than a half-million dollars from his employer pleaded guilty today in federal court, announced United States Attorney Booth Goodwin. Mark Alan McCoy, 46, of Charleston, W.Va., pleaded guilty to embezzlement by a bank officer. McCoy was employed as the vice president of private client banking services at the bank’s Charleston branch from September 2008 until June 2012.
“Bank employees are given a tremendous position of trust,” said U.S. Attorney Booth Goodwin. “Customers trust bankers with some of life’s most important matters: their nest eggs, the money they save to send their kids to college, and the money they live on day to day.”
“To abuse that trust is unconscionable,” Goodwin continued. “It’s a crime not only against the bank, but against everyone who counted on this defendant to keep their money safe and sound. I hope this prosecution sends a strong message that this kind of crime will not be tolerated.”
McCoy admitted that from November 30, 2009, and continuing until April 19, 2012, during his employment at Chase Bank, he stole monies belonging to Chase Bank, from approximately nine separate personal and corporate bank clients’ accounts. McCoy admitted that he created cashier’s checks for himself or would use the proceeds from the original cashier’s checks to create additional unauthorized checks. McCoy further admitted that on January 19, 2011, he created an unauthorized cashier’s check from a client’s corporate bank account for $59,000, with the check made payable to Moses automotive dealership. McCoy admitted that he took the cashier’s check and purchased a Cadillac Escalade with the proceeds. Similarly, on October 19, 2011, McCoy created an unauthorized cashier’s check from a client account for $22,000. McCoy caused that check to be deposited into another client’s account for payment for a 1968 Chevrolet Camaro.
In total, McCoy admitted that he took approximately $532,395.59 of monies from Chase Bank. The actual loss to Chase Bank, after accounting for funds that the defendant deposited into client accounts and other funds that the bank was able to recover, is $447,784.45.
McCoy faces up to 30 years in prison and a fine of up to $1 million when he is sentenced on July 17, 2013 by United States District Judge Irene Berger.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Former Bookstore Manager Pleads Guilty to Stealing $1.1 Million from Missouri State UniversityRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former manager of the Missouri State University bookstore pleaded guilty in federal court today to embezzling more than $1.1 million by pocketing the money from the school’s textbook buyback program.
“MSU’s former bookstore manager engaged in a 10-year-long scheme of theft and deceit,” Dickinson said. “He repeatedly abused his position to exploit weaknesses in the university’s accounting system and steal more than $1.1 million. MSU, to its credit, has corrected those weaknesses and fully cooperated with our investigation.”
Mark Brixey, 48, of Ozark, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with wire fraud, money laundering and filing a false tax return.
Brixey, the manager of the MSU bookstore from 1998 to August 2012, admitted that he embezzled $1,163,237 from the student textbook buy-back program. Brixey’s 10-year fraud scheme began in 2003 with the theft of nearly $29,000 and escalated each year, with more than $190,000 stolen during each of the last two full years of the scheme in 2010 and 2011. Brixey embezzled another $20,580 before he resigned in 2012.
Textbook Buyback Scheme
As manager of the MSU bookstore, Brixey handled all contacts related to the textbook buy-back program. At the close of each semester, MSU students had the opportunity to sell their used textbooks to Follett Educational Services, which contracted with MSU to administer the book buy-back program. Follett operated 10 textbook buy-back stations on the MSU campus during finals week in December and May of each year.
On the last day of each buy-back period, a Follett representative prepared a report that detailed how many textbooks were purchased and at what price. A Follett representative also calculated the commissions to be paid to MSU for allowing Follett to conduct the textbook buy-back program at the university. A Follett representative gave a sight draft/check to Brixey for payment of the commission to MSU (beginning in 2011, the Follett representative paid the commission in cash directly to Brixey).
Follett also purchased textbooks that were no longer used by MSU professors directly from the MSU bookstore. Similar to the textbook buy-back program, a Follett representative calculated the total amount to be paid to MSU for these books and gave a sight draft/check to Brixey. The bookstore also disposed of surplus textbooks by reselling them to textbook wholesalers, such as MBS Textbook Exchange, Inc., and Nebraska Book Company.
When Brixey received sight drafts/checks payable to MSU for these buy-back programs, he took those checks to the MSU bursar’s office. Brixey falsely claimed that the sight drafts/checks were needed to pay students for books purchased in the buy-back program. The bursar’s office relied upon Brixey’s misrepresentations and provided cash to Brixey.
Brixey did not record the cash received in the MSU Bookstore accounting system, but instead used the cash for his personal benefit.Count One: Wire Fraud
Brixey admitted that he executed the scheme to cause electronic transmissions related to the processing of sight drafts (in connection with the commissions and the purchase of textbooks).
Count Two: Money Laundering
Brixey admitted that he concealed his fraud scheme by disguising the proceeds through multiple financial transactions. Brixey routinely deposited the proceeds of his fraud scheme into Educational Credit Union accounts then transferred cash from those accounts to purchase and add value to certificates of deposit. Between Jan. 11, 2008, and July 16, 2012, Brixey made or caused to be made 55 transfers totaling $121,000 from Education Credit Union deposit accounts to Educational Credit Union certificates of deposit.
Count Three: Filing a False Tax Return
Brixey admitted that on April 15, 2011, he filed a tax return that failed to report approximately $194,521 in income received through the fraud scheme in 2010. Brixey also filed a tax return for 2011 that failed to report $192,202 of income from his fraud scheme and a tax return for 2009 that failed to report $166,354 of income from his fraud scheme. Between 2009 and 2011, Brixey failed to report a total of $553,077 of income from his fraud scheme, resulting in a tax loss to the government of approximately $166,247 for those three years.
Penalties
Under federal statutes, Brixey is subject to a sentence of up to 43 years in federal prison without parole, plus a fine and an order of restitution. Brixey must forfeit to the government $1,163,237, which represents the proceeds of the wire fraud scheme, and a number of certificates of deposit that were purchased with proceeds from the fraud scheme. 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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation, the Springfield, Mo., Police Department and the Greene County, Mo., Prosecuting Attorney.
Fen-Phen Fraud Doctor Sentenced to 72 Months in PrisonRead the Press Release
PHILADELPHIA - Dr. Abdur Razzak Tai, 79, of Kissimmee, Florida was sentenced today to six years in prison for a fraud scheme involving a trust fund set up to compensate victims of the Fen-Phen diet drug. Tai, who practiced cardiology under the name A. Razzak Tai, M.D., and through Tri-County Doctors, Inc. and Medical Legal Consultants, Inc., was convicted in September of 2011 on six counts of mail fraud and seven counts of wire fraud.
American Home Products Corporation, later known as Wyeth, entered into a class action settlement, which established a Trust to pay benefits to persons injured by Fen-Phen with money contributed by Wyeth. Between 1997 and 2009, Tai devised a scheme to defraud the Seventh Amendment, the Trust and Wyeth, and to obtain money and property from them by means of false and fraudulent representations. He reviewed the echocardiograms of more than 1,100 patients who filed claims with the American Home Product Settlement Trust in Philadelphia and falsely certified that the patients’ tests showed that they had sustained heart damage. In reality, many of those claimants had not been harmed.
For at least one lawyer, Dr. Tai was paid a set fee of $100 for each echocardiogram that he read. In addition, Tai was to be compensated $1,500 for each claimant who qualified for benefits when that patient’s claim was paid. Dr. Tai wrote reports and signed certifications attesting that claimants had suffered heart damage on some occasions when he knew that the tests showed that they had not and, on other occasions, when he knew that he had not personally reviewed the test results to determine whether they had suffered heart damage. By misreporting measurements from the echocardiogram, the severity of a claimant’s medical condition could be exaggerated, thereby improperly qualifying the claimant for hundreds of thousands of dollars more in benefits. Dr. Tai certified that some patients qualified for the increased settlement benefits when he knew they did not.
At trial, Dr. Tai testified that his medical reports had been forged by the mass-tort lawyer who had hired him and who had paid him on a contingency fee basis. The jury returned a verdict of guilty on all 13 counts after deliberating for less than two hours.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered Tai to pay restitution in the amount of $4.5 million, a $15,000 fine, a special assessment of $1,300, and ordered three years of supervised release. Tai was immediately remanded.The case was investigated by the FBI and U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Paul Shapiro.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Grand Jury Indicts Former Fannie Mae Employee for Allegedly Taking Kickbacks from Arizona Real Estate BrokerRead the Press Release
LOS ANGELES – A former sales associate with the Federal National Mortgage Association (Fannie Mae) was named today in a federal grand jury indictment that accuses him of taking kickbacks from a real estate broker in exchange for providing him with foreclosed properties to sell on behalf of the mortgage agency.
Armando Granillo, 44, of Huntington Beach, California was charged today with three counts of “honest services” wire fraud for soliciting kickbacks while working for Fannie Mae.
Granillo was arrested in this case on the morning of March 5, 2013, after he allegedly accepted an $11,200 payment from the real estate broker, who at the time was working with federal authorities. Granillo was freed on a $5,000 bond and is expected to be arraigned next month in United States District Court in Los Angeles.
Granillo, who worked in the Irvine Fannie Mae office as a Real Estate Owned Foreclosure Specialist, reviewed applications submitted by real estate brokers who wanted to list Fannie Mae foreclosure properties. Granillo had the authority to approve sale offers presented by the brokers. In late 2012, Granillo asked a real estate broker in Tucson to pay a percentage of the commissions the broker earned for selling Fannie Mae foreclosure properties. The broker brought the matter to the attention of federal law enforcement officials, and he began assisting in the investigation.
In subsequent conversations between Granillo and the broker, Granillo demanded 20 percent of the broker’s commissions.
In February 2012, Granillo traveled from Orange County to the Phoenix area, where he met with the broker. During the recorded meeting, Granillo stated that the kickback arrangement was a “natural part of business.” Granillo then arranged to receive the $11,200 payment from the broker.
Each wire fraud count alleged in the indictment carries a statutory maximum penalty of 20 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Fannie Mae is currently under the conservatorship of the Federal Housing Finance Agency. The investigation into Granillo was conducted by the Federal Housing Finance Agency’s Office of Inspector General.
Release No. 13-044
Fafane Daniel Pleads Guilty to Crime Aboard AircraftRead the Press Release
FAFANE DANIEL, age 32, of Fort Lauderdale, Florida, pled guilty before the U. S. District Court Judge Eldon E. Fallon today to violating Title 49, United States Code, Section 46506, assault on an aircraft in flight within the special aircraft jurisdiction of the United States, announced U.S. Attorney Dana J. Boente.
According to court documents, DANIEL was a ticketed passenger traveling with her juvenile child on a Southwest Airlines flight originating in Fort Lauderdale, Florida and terminating in Las Vegas, Nevada. DANIEL verbally and physically assaulted the passenger seated beside her because she mistakenly believed that passenger injured DANIEL’s child. Due to this incident, the flight was diverted to New Orleans, Louisiana where DANIEL was taken into custody.
DANIEL will be sentenced on July 11, 2013. She faces a maximum term of 6 months imprisonment.
This case was investigated by Special Agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Gregory M. Kennedy.
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Ehrlich Pleads Guilty to Obstruction of JusticeRead the Press Release
Albany, New York – United States Attorney Richard S. Hartunian and Special Agent-in- Charge Andrew Vale of the Albany Division of the Federal Bureau of Investigation announce that David A. Ehrlich, 38, of Cohoes, a former lawyer, pled guilty yesterday to obstruction of justice, as charged in Count 1 of the Indictment filed December 12, 2012. Ehrlich’s guilty plea was entered in an appearance before Chief United States District Judge Gary L. Sharpe in Albany.
As part of his guilty plea and plea agreement, Ehrlich admitted that he obstructed justice in United States v. Joseph P. Brown, a criminal appeal before the United States Court of Appeals for the Second Circuit, by preparing and providing to Brown’s wife a brief Ehrlich falsely represented had been filed, and then preparing and providing to Brown’s wife a document Ehrlich falsely represented to be the written decision of the United States Court of Appeals for the Second Circuit denying Brown's appeal. Ehrlich admitted that:
On July 18, 2007, in U.S. District Court for the Northern District of New York, Joseph P. Brown was sentenced to be imprisoned for 60 months upon his conviction of possession of child pornography. Timely notice of appeal was filed on Brown’s behalf. Ehrlich did not represent Brown in the District Court case, but agreed to handle Brown’s appeal, and obtained $7500 from Brown’s wife as payment. Ehrlich later provided Mrs. Brown with a ten page document dated November 20, 2007, that Ehrlich represented to be the appellate brief he had prepared and submitted. The document requested that Brown’s “plea of guilty be vacated, or alternatively that this matter be remanded to the district court for sentencing consistent with Rita v. United States and Gall v. United States.” In truth and in fact, Ehrlich never submitted a brief for Brown to the Court of Appeals. The Court of Appeals had set a deadline of October 22, 2007, for a brief to be filed on behalf of Brown, and then extended the deadline to November 30, 2007. When no brief was filed, the Court of Appeals issued an order to show cause why the appeal should not be dismissed for failure to file a brief by the date specified in the scheduling order. There was no response, so Brown’s appeal was dismissed by the Court of Appeals by order filed January 16, 2008; the mandate was issued on March 17, 2008.
Ehrlich later provided Mrs. Brown with a document dated May 13, 2008, that appeared to be, and was represented by Ehrlich to be, the written decision of the United States Court of Appeals for the Second Circuit denying Brown’s appeal. In truth and in fact, Ehrlich had falsely prepared the document he misrepresented to be the Court’s decision using language from the opinion of the United States Supreme Court in Strickland v. Washington, 466 U.S. 668 (1984), pages 684 -689; the unpublished opinion of the United States Court of Appeals for the Second Circuit in Grune v. Coughlin, 152 F.3d 918, 1998 WL 382608 (2d Cir. May 7, 1998), pages 1-2; and the opinion of the United State Supreme Court in Rita v. United States, 551 U.S. 338 (2007), pages 350-351 and 356. The fake decision prepared by Ehrlich falsely stated that the appeal had been argued on December 19, 2007, before Chief Judge Jacobs, Judge Pooler, and Judge Sack, and falsely stated that the Court affirmed Brown’s sentence upon its holding “that the plea of Brown was knowing and voluntary, that he was adequately represented by counsel, and that the sentencing court did not err in the imposition of sentence.”
Because Joseph P. Brown had been denied his right to pursue an appeal by the conduct of DAVID A. Ehrlich, Brown had to prepare and file a motion under 28 U.S.C. § 2255 to vacate, set aside, or correct his sentence upon his claim that he was denied effective assistance of counsel, and the U.S. District Court had to enter a new judgment so Brown could pursue an appeal.
Ehrlich was released pending sentencing, which is scheduled for July 29, 2013, at 9:00 am, in Albany. Ehrlich faces a maximum sentence of up to 10 years imprisonment, to be followed by supervised release for up to 3 years, a fine of up to $250,000, and a special assessment of $100. Ehrlich agreed to make restitution of the $7500 paid by the Browns and a total of $1400 paid him by two other clients, and has done so.
On April 22, 2010, Ehrlich was disbarred in New York by the Supreme Court, Appellate Division, Third Department.
United States Attorney Hartunian said, “Due process of law is the cornerstone of our democracy. When due process is subverted by a lawyer with a sworn duty to represent faithfully the interests of a defendant, it is a significant crime. The vigilance and outstanding work by the Albany Division of the Federal Bureau of Investigation and state agencies such as the Committee on Professional Standards for the Third Judicial Department of the Appellate Division of the Supreme Court for the State of New York and The Lawyers’ Fund for Client Protection of the State of New York restores fairness to the administration of justice.”
The investigation was conducted by the Albany Division of the Federal Bureau of Investigation. The case is being prosecuted by First Assistant U.S. Attorney Grant C. Jaquith, to whom inquiries may be directed at (518) 431-0247.
Eagle Butte Woman Convicted of Two Counts of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Rae Jean Araujo Cota, a/k/a Rae Jean Slides Off, age 36, of Eagle Butte, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on March 22, 2013 and pled guilty to the Superseding Information that charged her with two counts of Assault by Striking, Beating and Wounding. The maximum penalty upon conviction for each count is 6 months of custody, a $5,000 fine, restitution, and a $10 assessment to the Victim Assistance Fund.
These convictions are the result of two alleged assaults of the same victim that occurred in Eagle Butte in November and December of 2012.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for June 10, 2013.
District Woman Sentenced to 54 Months in Sexual Assault of Girl on A Metrobus-Defendant Later Threatened 14-Year-Old Victim-Read the Press Release
WASHINGTON - Pamela Taylor, 24, of Washington, D.C., was sentenced today to 48 months on the felony 2nd degree child sexual abuse count and a consecutive 180 days on the misdemeanor threats count stemming from a sexual assault of a 14-year-old girl on a Metrobus in Southeast Washington, U.S. Attorney Ronald Machen Jr. announced.
Taylor pled guilty in January 2013 in the Superior Court of the District of Columbia to one count each of second-degree child sexual abuse and threats, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction. She was sentenced by the Honorable Herbert B. Dixon, Jr. Other conditions include supervised release for 3 years, she must register as a sex offender for 10 years and while in prison, receive substance and mental health counseling.
According to the government’s evidence, on the morning of Dec. 10, 2011, Taylor first encountered the victim on a Metro train at the L’Enfant Plaza Metro station. Taylor approached the girl on the train and mentioned members of the victim’s family, leading the girl to believe that Taylor knew the family. At one point, Taylor tricked the girl into providing her cellphone number. At the Anacostia Metro station, Taylor followed the victim onto a Metrobus. During the bus ride, Taylor sat next to the girl and touched the girl inappropriately. The girl had to force her way past Taylor to get off the bus. The following day, Taylor called the teenager, threatening to assault her if she stepped outside of her home.
In announcing the sentence, U.S. Attorney Machen praised the work of the Metro Transit Police Department, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel and Victim Advocate Lezlie Richardson. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
13-106Dearborn Businessman, Disbarred Attorney Convicted in Bank Fraud and Bribery ConspiracyRead the Press Release
A Dearborn businessman and attorney were found guilty today by a federal jury of multiple counts of fraud and commercial bribery, announced United States Attorney Barbara L. McQuade.
U.S. Attorney McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Giovanni Tiano, Special Agent in Charge of the Dearborn, Michigan office of the Department of Homeland Security - Office of Inspector General, and Jeffrey Frost, Special Agent in Charge of the Detroit, Michigan office of U.S. Secret Service.
The jury convicted Hussein "Sam" Nazzal, 58, and Edward A. Schneider, 59, after a three-week trial before U.S. District Judge David M. Lawson.As part of the same prosecution, guilty pleas were entered by Eric Morton, 41 of Wixom, a former Assistant Vice President of Fifth Third Bank, Ross Carey, 49 of Farmington, a former Vice President of Minnesota Title Agency, Majed Tawbe, 43, of Dearborn, a former owner of several local gas stations and Mounif Zeaiter, 47, of Detroit.
The evidence at trial showed that from 2003 to 2007, Nazzal and Schneider conspired to defraud Fifth Third Bank by using straw buyers, false tax returns, inflated financial statements and phantom down payments in a series of commercial loan transactions involving Detroit area businesses and gas stations. Nazzal then submitted false and fraudulent payoff letters for mortgages and pre-existing liens when, in fact, none existed, so that he or one of his companies could obtain payouts at the respective closings. Schneider, the Treasurer of record for two of Nazzal's companies, separately obtained closing funds by submitting fraudulent invoices for attorneys' fees. Nazzal and Schneider were also convicted of paying bribes to Morton, a former vice president at the bank, in connection with the fraudulent loans. Nazzal was also convicted of obstruction of justice by falsifying records in a federal investigation; the evidence showed that at Nazzal's direction, Morton prepared a series of false documents exonerating Nazzal from any wrongdoing. These fraudulent documents were recovered by federal investigators in a safe at Nazzal's house during an April 2010 search warrant.
Nazzal and Schneider were also convicted of conspiring to defraud Standard Federal Bank (now Bank of America) by preparing false documents relating to $750,000 in fraudulent mortgages, then recording them ahead of the bank to effectively jump the bank's lien on the collateral. The evidence showed that Nazzal had arranged for Carey and another associate to provide false testimony in a suit to quiet title in Oakland County Circuit Court so that Nazzal would win the case and pocket $750,000.
Nazzal was also convicted of a similar lien jumping conspiracy involving Comerica Bank and a false $500,000 mortgage.
Schneider's law license was revoked by the State Bar of Michigan in August 2011 in connection with an unrelated matter.
“White collar criminals may use sophisticated methods, but their crime is nothing more than stealing other people’s money,” McQuade said. “While banks suffered the direct loss here, when banks are victimized, we all pay the price in the form of higher rates and damage to our banking system and economy.”
FBI Special Agent in Charge Foley stated, "Individuals in positions of trust who engage in acts of bribery and bank fraud will be pursued and prosecuted. The FBI is dedicated to ensuring these criminals face severe penalties for their illegal acts."
"Fraudulent loan schemes such as this have evolved significantly over the last several years in our area" said Jeff Frost, Special Agent in Charge of the U.S. Secret Service Detroit Field Office. "Cooperation between law enforcement has allowed us to focus our resources and respond quickly to uncover criminal activity such as this type of financial fraud."
Special Agent in Charge Giovanni Tiano stated "Let these convictions stand as an example that the Department of Homeland Security, Office of Inspector General will not tolerate individuals that attempt to corrupt our nation's financial institutions. These types of despicable acts adversely affect our economy and ultimately harm honest citizens."
Sentencing has been set for August 5, 2013. Bond was continued as to defendant Nazzal over the government's objection. Schneider's bond was also continued.
The case was prosecuted by Assistant United States Attorneys Bruce Judge and Erin Shaw. The case was investigated by the FBI, DHS-OIG, DHS-ICE and USSS.
Criminal Charges Filed Against Four Separate Student Aid Fraud RingsRead the Press Release
Criminal charges have been filed against eleven individuals for their roles in four Michigan-based federal student-loan fraud schemes totaling more than $1 million, announced Inspector General Kathleen Tighe of the U.S. Department of Education and Barbara McQuade, U.S. Attorney for the Eastern District of Michigan.
These criminal prosecutions are aimed at shutting down federal student aid fraud rings, loosely affiliated groups seeking to exploit distance education programs to fraudulently obtain Federal student aid.
Today’s announcement highlights four fraud rings operating independently of one another between 2006 and 2010. The eleven individuals charged orchestrated the fraud rings. One ringleader is alleged to have recruited more than 40 people to apply as students for enrollment and aid, even though most had neither a high school diploma nor a GED and were therefore ineligible to receive federal student aid. As a result, participants received more than $665,604.00 in federal student aid. Meanwhile, two of the same ringleader’s brothers orchestrated a similar scheme.
“I’m proud of the work of our agents in our Chicago and Ann Arbor offices and our colleagues in the U.S. Attorney’s Office in Detroit in pursuing those who would abuse the trust of America’s taxpayers by stealing federal student aid. Student aid is not a slush fund for criminals; it provides an opportunity for honest, hard-working students who wish to make their dream of a higher education a reality,” said Inspector General Tighe. “My office is committed to fighting student financial aid fraud and we will continue to aggressively pursue those who cheat these vital aid programs."
“Taxpayers fund federal financial assistance programs to permit needy students to obtain a higher education,” McQuade said. “Stealing these funds robs students of educational opportunities and cheats members of the public from their investment in an educated population.”
Since 2010, the Department of Education, Office of Inspector General has highlighted the vulnerability of distance education programs to fraud and abuse. All aspects of distance education-admission, student financial aid, and course instruction-take place through the internet, and students are not required to present themselves in person at any point. Institutions offering distance education, like all institutions that participate in the federal student aid programs, are not required to verify prospective and enrolled students' identities, so fraud ringleaders are able to use the identities of others, with or without their consent, to target distance education programs. Never needing to set foot on campus, fraud ring participants can exploit institutions well outside their immediate geographic area.
The rings target mainly lower-cost institutions because federal student aid awards easily cover tuition resulting in a higher award balance (known as a refund) paid to the student and intended for educational expenses such as books and room and board. It is these financial aid refund awards which the fraud ring participants seek. The student applicants have no intention of pursuing a degree, and often are not even eligible for federal student aid because they do not have a legitimate high school diploma or GED. The participants take a cut of the financial aid refund proceeds and the turn the remainder over to the ringleaders.
Those charged include: Nina Cooks, 50, Detroit; Sandra Roberts, 40, Detroit; Jacquelyn Robinson, 60, Detroit; Luther Hampton, 55, Eastpointe; Ulysses Hampton, 49, Westland; Ulysses Hampton, Jr., 23, Detroit; Brian Hickman, 45, Detroit; Jason Watkins, 28, Clinton Township; Candace Cureton 61, Detroit; Malayka Burks, 35, Detroit; and Shirley Jimerson, 47, Detroit.
These actions are a result of criminal investigations conducted by the U.S. Department of Education, Office of Inspector General in Chicago, IL and Ann Arbor, MI, the Social Security Administration, Office of Inspector General, the U.S. Postal Inspection Service and prosecutions by Assistant U.S. Attorneys in the U.S. Attorney’s Office for the Eastern District of Michigan.
Convicted Sex Offender Sentenced to Federal Prison for Violating the Sex Offender Registration and Notification AcRead the Press Release
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PROVIDENCE, R.I. – Corey Kidd, 31, formerly of Warwick, was sentenced today to 30 months in federal prison for failure to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA), announced United States Attorney Peter F. Neronha; United States Marshal Jamie A. Hainsworth; and, Warwick Police Chief Colonel Stephen M. McCartney.
At sentencing, Kidd was also ordered by U.S. District Court Judge John J. McConnell, Jr. to serve five years of supervised release following his prison term. Kidd pleaded guilty in federal court on September 19. 2012.
According to information presented to the court, Kidd, a level II sex offender, failed to notify police of a change of address when he moved from a Warwick residence sometime prior to March 1, 2012. Kidd was arrested in Florida on May 31, 2012, on a federal arrest warrant issued by the U.S. District Court in Providence.
Kidd was convicted in Rhode Island state court in November 2000 on a charge of 3rd degree sexual assault. He was sentenced to five years imprisonment, suspended, and five years of probation; and, ordered to register as a sex offender.
SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.
The matter was investigated by the United States Marshals and the Warwick Police Department.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.Contact: 401-709-5357
[email protected]Convicted Felon Sentenced for Possession of A FirearmRead the Press Release
Jackson, Miss – Ahmad Williams, 29, of Jackson, was sentenced today by U.S. District Judge Carlton W. Reeves to serve 97 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, U.S. Attorney Gregory K. Davis announced. Williams was also ordered to pay a $1,500.00 fine.
On April 25, 2011, Jackson Police Department (“JPD”) officers tried to arrest Ahmad Williams on an outstanding capital murder warrant. When they exited their vehicle to make the arrest, Williams fired two shots at them with a .45 caliber pistol, one of which struck and injured a JPD officer. Williams was arrested, and a review of his criminal history revealed that he had been previously convicted of multiple felonies.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. It was prosecuted by Assistant U.S. Attorney Mike Hurst..###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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College Student Sentenced to Seven Years in Federal Prison for Crack Cocaine SalesRead the Press Release
A Waterloo college student who was selling crack cocaine was sentenced on March 26, 2013 to seven years in federal prison.
Ryan Stevenson, 25, from Waterloo, Iowa, received the prison term after a November 7, 2012 guilty plea to the distribution of crack cocaine.
At the guilty plea, Stevenson admitted he distributed crack cocaine in January 2012. The distribution was one of multiple crack cocaine sales made by Stevenson to a confidential informant. Stevenson’s two-year old child was present in his home during one of the sales.
Stevenson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Stevenson was sentenced to seven years’ imprisonment, which was ordered to run consecutive to a sentence Stevenson received in state court for an OWI conviction. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Stevenson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Iowa Division of Narcotics Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-CR-2023.
Chairman of the Board for the Paideia Academy/Employee of St. Louis City Treasurer’s Office Convicted of Fraud ChargesRead the Press Release
St. Louis, MO - After a seven-day jury trial, Fred W. Robinson was convicted on multiple fraud charges involving his submission of false time sheets in the Treasurer’s Office and his diversion of federal and state education funds from the Paideia Academy Charter School.
Robinson was the Chairman of the Board of Trustees for Paideia Academy, a Missouri charter school for kindergarten through eighth grade. He maintained an office in the school’s administration building and was involved in the day-to-day management and administration of the school. Paideia was tuition free and funded by Federal and Missouri education funds intended for legitimate school operations.
According to testimony presented at trial, during 2009 and 2010, Robinson diverted approximately $242,333 of Paideia Academy funds for the purchase, construction, renovation and rehabilitation of a building at 4028 West Florissant Avenue in St. Louis for the purpose of developing and operating a Little People’s Academy daycare center to be operated by Robinson and an associate through Paige C. Investments, LLC, in which Robinson had an ownership and financial interest. Robinson failed to disclose his ownership and financial interest in the proposed daycare center to the Paideia Academy Board of Trustees. Robinson’s partner in the proposed daycare center was a friend and associate of Robinson who worked as a bartender at a lounge frequented by Robinson, and who had no background, experience or training in early childhood education or the operations of a daycare center.
Additionally, during each year from 2006 through 2010, as an employee of the Treasurer’s Office for the City of St. Louis, Robinson submitted false weekly time sheets falsely certifying work hours and was paid approximately $35,360 each year in salary based upon those false time sheets.
FRED W. ROBINSON, St. Louis, MO, was convicted of one count of wire fraud and seven felony counts of federal program theft after a seven-day trial before United States District Judge Audrey G. Fleissig. Sentencing has been set for July 19, 2013.
When asked about the likelihood of additional charges against other defendants, United States Attorney Richard G. Callahan stated, “The current status and progress of the investigation into the St. Louis City Treasurer’s Office is reflected by the charges that have been filed to date. No further charges are anticipated unless or until additional evidence is developed.”
Other defendants that have been charged as part of the investigation are Dannielle Benson and Frank Habeebullah, both of whom plead guilty late last year.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each count of federal program fraud carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.This case is being investigated by the Federal Bureau of Investigation and the United States Department of Education, Inspector General’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
California Man Involved in Multi-Kilogram Cocaine Trafficking Conspiracy Sentenced to 27 Years' ImprisonmentRead the Press Release
RICHMOND, Va. – On March 25, 2013, Hiram Granados Alvarez, 38, of Riverside, California, was sentenced to 324 months’ imprisonment for his role in a drug trafficking conspiracy involving several kilograms of cocaine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Robert Brisolari, Acting Special Agent in Charge for the Drug Enforcement Administration (DEA)’s Washington Field Office, made the announcement after the sentencing was announced by United States District Judge Henry E. Hudson.
According to court documents, Hiram Alvarez and others conspired together to broker a series of large cocaine transactions. The first transaction they attempted, in January 2012, involved efforts to obtain 100 kilograms of cocaine for a potential buyer in Baltimore, Maryland. The participants flew to Richmond, Virginia, and then traveled to Baltimore for a meeting scheduled to take place on January 27, 2012. The conspirators met at an apartment and counted the funds gathered by the proposed buyers, totaling approximately $1,499,377.00 in United States currency. Soon after the money was counted, three co-defendants (Dion Williams, Torry Zenon, and Vincent Williams) were arrested in possession of the cash, two Royal Sovereign money counters, two handguns, and other items. As a result, the transaction was not consummated.
Hiram Alvarez and others coordinated a second drug transaction to take place in March 2012. Documents filed with the Court show that Alvarez contacted co-defendant Topeka Sam in February 2012, and advised that he (Alvarez) had a seller willing to supply approximately 50 kilograms of cocaine. Sam, in turn, located two buyers who were willing to pay $26,000 per kilogram of cocaine. To execute those transactions, Sam and another co-defendant travelled to Richmond, Virginia, on March 7, 2012, to meet with sellers at the Hooter’s Restaurant, located at 7912 West Broad Street, Richmond, Virginia. At Hooter’s, Sam met with three individuals who she believed to be the sellers. Sam and the proposed sellers travelled to a storage facility located at 9001 Brook Road, Glen Allen, Virginia, where she inspected an undercover “trap” vehicle designed to conceal and transport kilogram quantities of cocaine. Sam viewed approximately 50 kilograms of cocaine that were concealed in the vehicle. She agreed to purchase all 50 kilograms of cocaine, with 25 kilograms going to a buyer from Maryland, and another 25 kilograms going to a buyer from New York.
On March 8, 2012, Sam, co-defendant Percy Robinson, and another co-defendant met with the proposed sellers at an address in Randallstown, Maryland. At that location, Robinson negotiated his proposed purchase of 25 kilograms of cocaine and presented approximately $250,000 in United States currency to serve as partial payment for the cocaine purchase. Robinson agreed to meet with the sellers on the following day to present additional money to complete the drug transaction. Robinson left the address and was intercepted by law enforcement during a traffic stop, at which time he was in possession of approximately $255,360.Later on March 8, 2012, Sam and co-defendant Reginald Marshall met with the proposed sellers at the Randallstown, Maryland address to discuss Marshall’s proposed cocaine purchase. Marshall negotiated the transaction and presented approximately $80,000 in United States currency to serve as partial payment for the cocaine. Marshall and Sam left soon thereafter with the understanding that Marshall would gather more funds to complete the purchase. Later that same day, law enforcement officers intercepted Marshall and Sam during a traffic stop, at which time the two were in possession of approximately $89,074.
Finally, on April 24, 2012, Sam and Robinson travelled to Richmond, Virginia to meet with proposed sellers about another drug transaction. During that meeting, Robinson agreed to purchase another 30 kilograms of cocaine. Soon thereafter, both Sam and Robinson were arrested by law enforcement for their alleged role in the drug trafficking conspiracy.
To date, all of the arrested defendants have been convicted:
- Topeka Kimberly Sam pleaded guilty and was sentenced to 130 months’ imprisonment on January 11, 2013.
- Percy Robinson pleaded guilty and was sentenced to 130 months’ imprisonment on November 13, 2012.
- Reginald Marshall pleaded guilty and was sentenced to 120 months’ imprisonment on January 29, 2013.
- Susan Smallwood pleaded guilty and was sentenced to 57 months’ imprisonment on November 20, 2012.
- Dion Levering Williams pleaded guilty and is scheduled for sentencing on April 19, 2013.
- Torry Von Zenon was convicted at trial and is scheduled for sentencing on May 31, 2013.
- Vincent A. Williams was convicted at trial and is scheduled for sentencing on April 26, 2013.
The investigation was coordinated by the Drug Enforcement Administration, which received assistance from the Chesterfield County Police Department, Hanover Sheriff’s Office, Richmond Police Department, Virginia State Police, Virginia Commonwealth University Police Department, Baltimore County Police Department, Baltimore City Police Department, Maryland State Police Department, Colton Police Department, Maryland Transportation Authority Police, Maryland Transit Administration Police, Maryland Natural Resources Police, Chino Police Department, Riverside Police Department, San Bernardino City Police Department, Pine Hill Police Department, Portsmouth Sheriff’s Office, and Department of Homeland Security – Homeland Security Investigations. Assistant United States Attorneys Michael Gill, Jamie Mickelson, and Peter Duffey are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Boise Man Sentenced for Illegally Possessing FirearmRead the Press Release
BOISE – Devin Edward Montgomery, 32, of Boise, Idaho, was sentenced this morning in United States District Court to 24 months plus 10 days in prison followed by three years of supervised release for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Montgomery to forfeit the shotgun he illegally possessed. He pleaded guilty to the charge on January 7, 2013.
According to the plea agreement, on April 3, 2012, federal search warrants were served on a residence located on Broadway Avenue in Boise, Idaho, which served as the clubhouse for the Slayers gang. The search located a Mossberg 12 gauge shotgun inside a safe. According to the plea agreement, Montgomery admitted that he purchased the firearm on August 18, 2011, from Impact Guns in Boise. Montgomery further admitted that at the time he possessed the firearm, he was an unlawful user of a controlled substance and prohibited under federal law from possessing firearms.
On September 20, 2012, Montgomery pleaded guilty in Idaho state court to delivery of a controlled substance and recruiting a criminal gang member. He is currently awaiting sentencing on those charges.
The indictment was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Boise Police Department. Other federal agencies participating in the OCDETF program include the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Drug Enforcement Administration, and U.S. Marshals Service.
The OCDETF program is a federal multi agency, multi jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Airplane Mechanic Admits Roles in Conspiracy to Falsify InspectionsRead the Press Release
PHILADELPHIA - Joel Stout, 32, of Elizabethtown, PA, pleaded guilty today to participating in a fraud conspiracy involving the unauthorized certification of inspections of aircraft at the Flying Tigers, Inc., a former airplane mechanical repair business in Marietta, PA. Stout’s father, Jay Stout, the president of Flying Tigers, Inc., and Howard Gunter, a retired FAA examiner, are also charged in the scheme which involved aircraft parts and inspections. Stout pleaded guilty to all seven counts of conspiracy and mail fraud charged.
Between October 2006 and October 2009, Joel Stout was employed as a Flying Tigers’ airplane mechanic. His inspection authority certification had expired on March 31, 2006. Flying Tigers performed annual inspections on aircraft, despite the absence of a certified mechanic with inspection authority. In order to conceal the absence of an IA, Flying Tigers, Joel Stout and his conspirators: did not fill out the aircraft and engine log books, leaving no written record of the inspections; forged the signature of a certified mechanic as having performed inspections; arranged
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Airline Passenger Imported Drugs from GuatemalaRead the Press Release
ATLANTA - Kenneth Lewis Martin, 25, of Guatemala, was sentenced today to serve over four years in federal prison for importing and possession with intent to distribute heroin.
“Our commitment to the safety of our citizens includes safeguarding our airports and holding accountable those who attempt to breach that security,” said United States Attorney Sally Quillian Yates. “Thanks to vigilant Customs and Border Protection agents, this defendant was unable to slip through security with the drugs he concealed in his suitcase.”
According to United States Attorney Yates, the charges and other information presented in court: On May 28, 2012, Martin arrived in Atlanta on Delta Air Lines flight 456, which originated in Guatemala City, Guatemala. Martin then claimed one piece of checked luggage from the baggage carousel. When Customs and Border Protection agents inspected Martin’s luggage, they found 2.5 kilograms of heroin hidden within artwork. Martin’s ultimate destination was Providence, Rhode Island.
“With today’s sentencing, Homeland Security Investigations (HIS) sends the clear message that no matter the level of sophistication, HSI will vigilantly investigate drug smuggling activities and bring all those involved to justice.” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI will continue working with our Department of Homeland Security, federal, and local partners to identify, arrest, and prosecute those involved in the illegal trafficking of narcotics.”
United States District Judge Willis B. Hunt, Jr. sentenced Martin to four years, two months in prison followed by three years of supervised release. Martin was convicted of these charges on November 28, 2012 after he pleaded guilty.
This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, National Security Investigations Division.
Assistant United States Attorneys C. Brock Brockington and Tasheika Hinson prosecuted the case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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.
Monday 25 March 2013
Ypsilanti Resident Sentenced on Charges of Forced LaborRead the Press Release
An Ypsilanti man was sentenced today to 135 months after having been found guilty in October 2012 of four counts of forced labor, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Acting Special Agent in Charge William J. Hayes, Homeland Security Investigations, Immigration and Customs Enforcement.
Sentenced was Jean-Claude "Kodjo" Toviave, 44, a native of Togo, West Africa. In addition to his sentence, Toviave was ordered to pay his victims more than $130,000 in restitution which represents minimum wage for their hours of labor.
Evidence introduced during the trial established that Jean-Claude "Kodjo" Toviave, a native of Togo, West Africa, used force, and threats of force, to obtain the domestic labor of four minors from Togo from January 2006 to January 2011. Toviave brought the four minors into the United States by giving them passports with false names and dates of birth. Defendant represented on these immigration documents that the four individuals were his biological children. Toviave pleaded guilty on February 24, 2012, to visa fraud, mail fraud and harboring aliens in connection with bringing the four minors to Michigan from Togo.
The four victims testified at trial that Toviave regularly beat them with broomsticks, a toilet plunger, sticks, ice scrappers and phone chargers if they failed to obey Toviave's orders to complete household labor. Each of the victims' testimony during trial detailed the work that they were forced to do on a weekly and sometimes daily basis, spanning nearly five years. This domestic work included all of the cooking and cleaning in the house, hand-washing laundry, ironing Toviave's suits, shining his shoes, washing and vacuuming his car, baby-sitting the children of his friends and cleaning his friend's home. In addition to force and threats of force, Toviave used food and sleep deprivation as punishment for the minors.
"This sentence is a victory not only for the young victims in this particular case, but also for human dignity and the rule of law," said William J. Hayes, acting special agent in charge of HSI Detroit. "HSI is fully committed to working with our law enforcement partners, both local and international, to combat the crime of human trafficking. Sadly, this crime occurs every day in America. We encourage anyone who suspects that human trafficking or forced labor is occurring in their community to report it to authorities immediately."
"Many people are shocked to learn that slavery and human trafficking still exist in this country, but the victims are often hiding in plain sight," McQuade said. "We are working with victim advocates and law enforcement agencies to expose these crimes and raise public awareness. This conviction and the rescue of these victims occurred because of the diligence of school teachers, advocates, investigators and prosecutors."The case was investigated by special agents from the Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant United States Attorneys Jeanine Brunson and Mollie O’Rourke.
Windemere Couple Arrested at JFK on Fraud ChargesRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces the arrests today of Windermere residents Michael Rivers (48) and Kim Rivers (45). The Riverses were arrested pursuant to a criminal complaint charging them with conspiracy to commit wire fraud. If convicted, each faces a maximum penalty of 20 years in federal prison.
According to the criminal complaint, from June 2010 to March 2013, the Riverses used the Internet to represent to investors that their company, Global Business Genesis, LLC (“GBG”), had created a partnership to establish banking relations in Kenya that would allow GBG to become the first, or second, largest provider of pre-paid currency credit cards in the world. Unbeknownst to investors, Michael Rivers was a defendant in a pending Securities and Exchange Commission (SEC) civil action alleging fraudulent activity with a different company (“ARKR Trust, LLC”).
The complaint further alleges that the couple induced investors by claiming they had invested their own resources in the GBC project. They also provided booklets regarding the Eastern African Community ("EAC"), a budget and strategic plan, and a copy of the Letter of Intent ("LOI") from the Minister of the EAC, Republic of Kenya. Investors were told that the EAC had accepted GBG's proposal for a license approving certain and specific software utilized to issue pre-paid Visa/MasterCard currency cards and to provide all integration and end user support. The Riverses represented that the contract was worth an estimated $18 million over a three-year period.
The complaint also alleges that the investors' funds were initially deposited by the Riverses into GBC bank accounts in July and August 2010, and then funneled into a personal bank account they controlled. Investors’ money was used for numerous personal expenditures, including a limousine rental, a deposit on a luxury car, event tickets and expensive dinners.
Investors never received membership certificates affirming their ownership in GBG, any revenue from GBG, or any evidence that their money was ever invested by the Riverses. The Riverses were apprehended by U.S. Secret Service agents on Saturday, March 23, 2013, at JFK Airport and detained pending further proceedings in the Middle District of Florida. They were en route to London. A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorney Daniel W. Eckhart and Christopher LaForgia.
Webster County Man to Federal Prison for Manufacturing MethRead the Press Release
A man who conspired to manufacture and distribute methamphetamine was sentenced March 14, 2013, to more than 16 years in federal prison.
Kevin Eugene Peterson, 45, from Duncombe, Iowa, received the prison term after a December 12, 2012, guilty plea to conspiracy to manufacture and distribute methamphetamine. Peterson has at least six prior felony drug convictions.
At the guilty plea, Peterson admitted that from January 2010 through August 2012 he conspired with others to manufacture and distribute at least 150 grams of actual (pure) methamphetamine. Peterson also admitted that on January 22, 2012, he manufactured methamphetamine; and on April 23, 2012, he distributed methamphetamine to an individual cooperating with law enforcement.
Peterson was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Peterson was sentenced to 198 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Peterson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Webster City Police Department, Hamilton County Sheriff's Office, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3039.
Washington Man Sentenced in Idaho Sex Trafficking CaseRead the Press Release
BOISE – Dyrell Robert Swinson, 20, of Tacoma, Washington, was sentenced this morning in United States District Court to 57 months in federal prison for his role in a child sex trafficking case, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Swinson to be supervised by a probation officer for five years after he is released from custody. He will also be required to register as a sex offender. Swinson pleaded guilty in November 2012 to obstructing a sex trafficking of children investigation.
According to the plea agreement, on March 8, 2012, law enforcement observed suspicious behavior by the occupants of a vehicle eastbound on Interstate 84 in Payette County, Idaho. The vehicle was intercepted at a rest area and the two occupants of the vehicle were questioned by an Idaho State Police trooper. The officer determined that Swinson, the driver of the vehicle, had a suspended Washington driver’s license. The passenger, a young female who Swinson said was his cousin, was unable to provide identification. The trooper, believing the female's stated age to be false, conducted a consensual search of the vehicle and discovered items inconsistent with statements made by the vehicle's occupants. Swinson was arrested for driving without privileges and both individuals were taken to the Payette County Jail. During an interview at the jail, the passenger admitted her true age – 15 – and identity. A check with Idaho State Police dispatch revealed the juvenile was a ward of the state of Washington and a runaway who had disappeared on November 22, 2011.
According to the plea agreement, Swinson, after being advised that telephone calls from the jail were being recorded, made several calls requesting other parties to alter or delete electronic records. During the investigation, law enforcement discovered that Swinson had posted provocative photographs of the 15-year-old on Internet advertisement web sites with telephone numbers for customers to call. Swinson admitted that his solicitations of other persons to alter, eliminate, or destroy evidence stored online was an attempt to obstruct the enforcement of federal law involving sex trafficking of a minor.
“Sex trafficking victimizes vulnerable teens, often forcing them into a desperate lifestyle so that others may profit,” said Olson. “Law enforcement agencies and prosecutors in Idaho are working together to identify and rescue these victims and to ensure that the traffickers are punished.”
The case was investigated by the Federal Bureau of Investigation, the Idaho State Police, and the Payette County Sheriff's Office.
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."
Two Kansas Men Charged, Dogs Seized in Federal Dog Fighting InvestigationRead the Press Release
KANSAS CITY, KAN. – Two Kansas men have been charged as a result of a federal investigation into organized dog fighting, U.S. Attorney Barry Grissom said today.
Charged in a criminal complaint unsealed Monday in U.S. District Court in Kansas City, Kan., were: Pete Davis, Jr., 38, Kansas City, Kan., and Melvin Robinson, 41, Kansas City, Kan. Both men were charged with one count of buying, selling, delivering or transporting animals for participation in an animal fighting venture.
The complaint alleges Davis and Robinson owned as many as 60 dogs -- mostly pit bulls -- that they trained and took to dog fights. They kept the dogs at a farm in Harrison County, Mo., and at their residences in Kansas City, Kan, and transported some of them to fights as far away as Dallas, Texas.
"Dog fighting is not a sport -- it is a crime," said U.S. Attorney Barry Grissom. "Federal law prohibits cruelty to animals on the level of the events that are alleged in these charges."
Grissom thanked the American Society for the Prevention of Cruelty To Animals for assisting investigators by agreeing to house and care for dogs that were seized by investigators.
According to court documents, an FBI investigation that began in November 2012 revealed that:
-- To train dogs for fighting, Robinson had a treadmill at his residence in Kansas City, Kan. He routinely placed a harness on a dog and chained the harness to the treadmill for several hours at a time. The treadmill was equipped with a plywood box to keep the dog on the treadmill. Robinson also put weights on the dog to strengthen it and provided caged live chickens in front of the treadmill as bait.
-- Robinson and Davis discussed betting $20,000 to $30,000 on a dog they were training for a fight scheduled to take place on March 23, 2013, in Dallas, Texas. They called such fights "dog shows."
-- On March 17, 2013, Davis and Robinson held three dog fights involving six dogs at the farm in Missouri in preparation for the dog fight in Dallas.
-- At various times during the investigation, dogs died at the farm in Missouri and their bodies were discarded.
-- On March 22, 2013, investigators followed Robinson and Davis as they traveled to a location near Tyler, Texas, for a dog fight.If convicted, Davis and Robinson face a maximum penalty of five years in federal prison and a fine up to $250,000.
"In 2008, after the Michael Vick case, Congress increased the punishment for dog fighting," Grissom said. "What was a misdemeanor is now a felony with punishment up to five years."
Grissom thanked the following agencies for their work on the case: The FBI, the Kansas City (KS) Police Department, the Harrison County (MO) Sheriff's Department, the Missouri State Highway Patrol, the Texas Department of Public Safety - Narcotics and Highway Patrol, East Texas HIDTA, the FBI Dallas Division - East Texas Resident Agencies, the American Society for the Prevention of Cruelty to Animals, the Texas Parks and Wildlife Department - Game Wardens, the Texas Department of Criminal Justice - OIG, the Lindale Police Department, the Smith County Sheriff’s Office, the Dallas Police Department and the Dallas County Sheriff’s Office.