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Monday 25 March 2013
Former Employee of New Jersey Defense Contractor Sentenced to 70 Months in Prison for Exporting Sensitive Military Technology to ChinaRead the Press Release
NEWARK, N.J. – A former New Jersey-based defense contractor employee – who was convicted by a federal jury for exporting sensitive U.S. military technology to the People’s Republic of China (PRC), stealing trade secrets and lying to federal agents – was sentenced today to 70 months in prison, New Jersey U.S. Attorney Paul J. Fishman announced.
Sixing Liu, a/k/a, “Steve Liu,” 49, a PRC citizen who had recently lived in Flanders, N.J., and Deerfield, Ill., has been in custody since the September 2012 verdict, based on his risk of flight.
“Instead of the accolades he sought from China, Sixing Liu today received the appropriate reward for his threat to our national security: 70 months in prison,” said U.S. Attorney Fishman. “As an innovation leader, the United States is a target for those seeking to cut corners at the expense of American businesses and consumers. As this sentence shows, the Department of Justice is making great progress in the fight against trade secret theft in order to protect the engines of our nation’s economic recovery.”
The jury convicted Liu of nine of the 11 counts in the Second Superseding Indictment with which he was charged, including six counts of violating the Arms Export Control Act and the International Traffic in Arms Regulations, one count of possessing stolen trade secrets in violation of the Economic Espionage Act of 1996, one count of transporting stolen property in interstate commerce and one count of lying to federal agents.
In addition to the prison term, Liu was sentenced to serve three years of supervised release and ordered to pay a $15,000 fine. Restitution is to be determined at a later date.
According to documents filed in the case and evidence presented at trial:
In 2010, Liu stole thousands of electronic files from his employer, L-3 Communications, Space and Navigation Division, located in Budd Lake, N.J. The stolen files detailed the performance and design of guidance systems for missiles, rockets, target locators and unmanned aerial vehicles. Liu stole the files to position and prepare himself for future employment in the PRC. As part of that plan, Liu delivered presentations about the technology at several PRC universities, the Chinese Academy of Sciences and conferences organized by PRC government entities.
On Nov. 12, 2010, Liu boarded a flight from Newark Liberty International Airport to the PRC. Upon his return to the United States on Nov. 29, 2010, agents found Liu in possession of a non-work-issued computer containing the stolen material. The following day, Liu lied to agents of the Department of Homeland Security about the extent of his work on U.S. defense technology, which the jury found to be a criminal false statement.
The U.S. Department of State’s Directorate of Defense Trade Controls later verified that several of the stolen files on Liu’s computer contained export-controlled technical data that relates to defense items listed on the United States Munitions List (USML). Under federal regulations, items and data covered by the USML may not be exported without a license, which Liu did not obtain. The regulations also provide that it is the policy of the United States to deny licenses to export items and data covered by the USML to countries with which the United States maintains an arms embargo, including the PRC.The jury heard testimony that Liu’s company trained him about the United States’ export control laws and told him that most of the company’s products were covered by those laws.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; special agents of ICE-Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and officers of U.S. Customs and Border Protection, under the leadership of Director of New York Field Operations Robert E. Perez, for the investigation leading to the sentence.
The government is represented by Assistant U.S. Attorney L. Judson Welle of the U.S. Attorney’s Office National Security Unit and Assistant U.S. Attorney Gurbir S. Grewal of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit, both in Newark. The prosecution received valuable support from attorneys of the U.S. Department of Justice’s National Security Division, Counterespionage Section.
13-141Defense counsel: James Darryl Tunick Esq., Chicago
Former Condo-Hotel Developer Arraigned After Being Extradited from Italy on Federal Tax Evasion ChargeRead the Press Release
CHICAGO — A former real estate developer who attempted to convert hotels in Chicago, Miami Beach, Fla., and elsewhere into condominium-hotels was arraigned today on federal tax evasion charges following his extradition from Italy. The defendant, DAVID R. FALOR, who was a principal in The Falor Companies, Inc., was charged with two counts of federal income tax evasion and one count of filing a false federal income tax return in an indictment that was returned by a federal grand jury in December 2011 when Falor was living in Modena, Italy.
Falor, 73, formerly of Chicago and the Miami area, was returned to the United States on Friday after Italian courts ordered him extradited on one count of income tax evasion. He remains in federal custody after pleading not guilty this morning before U.S. District Judge Matthew Kennelly in Federal Court in Chicago.
According to the indictment, The Falor Companies, which ceased operating in 2006, attempted to convert hotels to condo-hotels by selling individual guest rooms to investors as separately titled condominium units, and renting them through a related hotel management company to other guests when the owner was not in residence, with the owner receiving a percentage of the rental fee. The companies operated multiple condo-hotel ventures in the mid- 2000s, including the Blake Hotel, located at 500 S. Dearborn St., in Chicago, and the Tides Hotel on Ocean Drive in Miami Beach.
Falor was extradited on a tax evasion count alleging that he failed to pay income tax of approximately $341,093 on taxable income of approximately $1,048,802 during calendar year 2006. During that year, Falor allegedly converted approximately $779,096 in payments that were recorded as loans from The Falor Companies, but which became taxable income when the companies went out of business and Falor used the funds for personal expenses. Falor allegedly failed to file a federal income tax return for 2006 or to pay any taxes.
The indictment also charged Falor with tax evasion and filing a false federal income tax return for 2005, but the government indicated in court today that those two counts will likely be dismissed at a later time because of the terms of Falor’s extradition.
In separate cases, Falor’s two sons also face federal tax charges in Chicago. Christopher Falor, a consultant to the condo-hotel projects, is awaiting sentencing after pleading guilty to mail fraud and tax counts, and Robert Falor, who was the chief operating officer of The Falor Companies, is in custody awaiting disposition of tax charges.
The developments were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is being represented by Assistant U.S. Attorneys Ryan S. Hedges and Barry Jonas.
Tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. In addition, defendants convicted of tax offenses face mandatory costs of prosecution and remain civilly liable to the Government for any and all back taxes, as well as a civil fraud penalty of up to 75 percent of the underpayment plus interest. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former City of Miami Police Sergeant Sentenced on Civil Rights Violations, Narcotics Distribution Conspiracy and Obstruction of Justice ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department (MPD), announced the March 22, 2013 sentencing of defendant Raul Iglesias, 40, of Miami, Florida, a former City of Miami police sergeant, following his January 2013 conviction on eight counts, including two civil rights violations, conspiracy to possess and possession with the intent to distribute cocaine and crack cocaine, obstruction of justice and making false official statements. U.S. District Judge Cecilia Altonaga sentenced Iglesias to 48 months in prison, to be followed by three years of supervised release.
Iglesias was convicted in January 2013, following a two week trial. According to the evidence presented at trial, Iglesias, in his capacity as a supervisor of an anti-narcotics unit in the City of Miami Police Department, planted cocaine on a subject, stole drugs and money from other subjects, obstructed justice and made false statements to federal investigators.
The prosecution is the result of a joint investigation by the City of Miami Police Department’s Internal Affairs Unit and the FBI’s Public Corruption Squad. The case was prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Men Arrested for Conspiracy to Illegally Transport Destructive Devices and Machine GunsRead the Press Release
JAIME JAUREGUI, 34, and CARLOS CABRERA, 42, both of Orlando, Florida, RUBEN JAUREGUI, 24, and FRANCISCO MALDONADO, 46, both of Dade City, Florida, were arrested last Friday (March 22, 2013) and charged by criminal complaint with conspiracy to transport destructive devices (M-60 Grenades) and machine guns (AK 47 fully automatic assault rifles and Colt M-4 automatic assault rifles) in violation of Title 18, United States Code, Sections 371 and 922(a)(4), announced U.S. Attorney Dana J. Boente.
According to previously filed court documents, agents of Homeland Security Investigations in New Orleans received information in January 2012 indicating that JAIME JAUREGUI was interested in acquiring items listed on the United States Munitions List to be smuggled to end users in Mexico. On at least four occasions from January 2012 through March 21, 2013, JAIME JAUREGUI met with undercover agents in St. Tammany Parish to negotiate the purchase of more than 100 fully automatic assault rifles, grenade launchers, grenades, and night vision goggles, all of which were destined for a Mexican drug trafficking cartel. JAIME JAUREGUI provided a cash deposit of approximately $46,000.00 during those meetings. JAIME JAUREGUI hired CARLOS CABRERA, FRANCISCO MALDONADO, and RUBEN JAUREGUI to assist him with transporting the weapons to the final destinations. None of the men have federal firearms or export licenses. On March 21, 2013, all were arrested by Special Agents of Homeland Security Investigations.
Federal Guilty Plea from Landlord Who Accepted Drugs as Rent PaymentsRead the Press Release
Jerry Lowe rented apartment to Huntington pair now serving federal prison sentences for drug felonies
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Huntington landlord pleaded guilty in federal court to distribution of a quantity oxycodone. Jerry A. Lowe, 46, admitted that on March 16, 2012, he sold three 30-milligram oxycodone tablets in exchange for $90. Lowe also admitted to receiving an additional $210 from a prior drug-related debt. Lowe was the former landlord of convicted felons Rafael Cee-Erwin Solomon, 31, of Detroit and Shawna Danielle Lee, 26, of Huntington.
Lowe admitted that he typically received heroin or prescription painkillers from Solomon and Lee as payment for monthly rent expenses. Lowe also admitted that he purchased oxycodone pills from another individual who lived at the Highlawn Avenue residence at the time.
Solomon was previously sentenced in December to 11 years and three months in federal prison for conspiracy to distribute cocaine, crack cocaine, oxycodone, and oxymorphone. Solomon’s co-defendant Lee, was also previously sentenced in September 2012 to one year and six months in federal prison for maintaining a residence for the purpose of distributing crack cocaine, cocaine, oxycodone and oxymorphone
On June 13, 2012, law enforcement officers conducted a traffic stop of the defendant’s vehicle. During the stop, officers found the defendant in possession of 1.1 grams of heroin.
Lowe faces up to 20 years in prison and a $1 million fine when he is sentenced on June 24, 2013 by Chief United States District Judge Robert C. Chambers.
The Huntington Violent Crimes and Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Fargo Scrap Metal Dealer Pleads Guilty to Tax ChargeRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 25, 2013, Hamzo Omerovic of Fargo, N.D., pleaded guilty before U S. Magistrate Judge Karen K. Klein to a federal tax charge.
Omerovic, 27, pleaded guilty to a one-count information charging him with willfully failing to file an income tax return for calendar year 2006. Willful failure to file a tax return in violation of Title 26, United States Code, Section 7203, is a Class A Misdemeanor punishable by up to one-year in prison and a fine of up to $100,000.
Omerovic, a self-employed scrap metal dealer, in 2006 purchased and obtained scrap metal in Fargo and the surrounding area, which he then sold to a number of scrap metal dealers, primarily in North Dakota and Minnesota. The investigation conducted by the Internal Revenue Service - Criminal Investigation Division, showed that Omerovic’s gross receipts for the year totaled in excess of $152,000, with an estimated tax loss, for sentencing purposes, of more than $30,000.
Omerovic admitted, in the plea agreement and in court, that he had willfully failed to file a 2006 income tax return with the IRS, even though he had earned sufficient gross income and knew he was required to file a return no later than April 17, 2007.
The actual tax loss to the IRS will be determined after sentencing through a civil tax examination by the IRS.
U.S. Attorney Timothy Q. Purdon stated, “Self-employed persons, such as Mr. Omerovic, have an obligation to accurately report their income, deductions and credits to the IRS and maintain appropriate records of those items. Failure to file tax returns is a serious problem which can result in imprisonment.”
"With the tax filing season upon us, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today," said Kelly R. Jackson, Special Agent in Charge of the St. Paul Field Office. "Today's guilty plea of Mr. Omerovic again emphasizes that the Internal Revenue Service- Criminal Investigation Division and U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
Omerovic, who was released on his personal recognizance, will be sentenced at a later date.
The case was investigated by the Internal Revenue Service - Criminal Investigation Division.
Assistant U.S. Attorney Scott S. Schneider is prosecuting the case.
Dubuque Man Charged with Distributing Heroin That Resulted in Death and Distributing Heroin Near A School and A PlaygroundRead the Press Release
Alvin Stanley Briggs, Jr., age 50, from Dubuque, Iowa, has been charged with one count of distribution of heroin resulting in death and four counts of distribution of heroin near a school and a playground. The charges are contained in an Indictment unsealed today in the United States District Court in Cedar Rapids.
The Indictment alleges that, on or about July 3, 2012, Briggs distributed heroin to an individual identified as S.R., and that S.R.’s death resulted from use of the heroin. The Indictment also charges that on four different days in January and February 2013, Briggs distributed heroin within 1,000 feet of Prescott Elementary School and Jackson Park in Dubuque.
If convicted on all charges, Briggs faces a possible mandatory minimum sentence of 24 years’ imprisonment and a possible maximum sentence of life imprisonment, a $9,000,000 fine, $500 in special assessments, and up to a lifetime term of supervised release following imprisonment.
Briggs appeared today in federal court in Cedar Rapids and was held without bond. Briggs’s next appearance, for a detention hearing, is set for Wednesday, March 27, 2013, at 4:30 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Platteville, Wisconsin, Police Department, and the Dubuque, Iowa, Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 2:13-CR-01004-LRR.
Drug Trafficker Linked to Hells Angels Sentenced to 21 YearsRead the Press Release
United States Attorney Laura E. Duffy announced that David Raymond Garcia, a methamphetamine dealer and associate of the Hells Angels motorcycle gang, was sentenced today in U.S. District Court to serve 262 months in prison for conspiracy to distribute methamphetamine. At today's hearing, U.S. District Judge Marilyn L. Huff also sentenced Jason Scanlon, another methamphetamine supplier charged in the case, to serve 188 months in custody. These two defendants were prosecuted as part of an FBI Violent Crimes Task Force investigation that ultimately resulted in 36 defendants being charged with conspiracy to distribute methamphetamine.
According to court documents and information provided at the sentencing hearing by Assistant U.S. Attorney Andrew G. Schopler, Garcia supplied drugs to or employed at least 20 codefendants (and Scanlon at least four codefendants) during the course of the investigation into methamphetamine-trafficking and violent crimes committed by the San Diego Chapter of the Hells Angels and their criminal partners. Court documents also show that Garcia and codefendant Michael 2 Ottinger, Jr., the Sergeant-at-Arms for the Hells Angels, used violent force and intimidation to control the methamphetamine trade in San Diego. On December 3, 2012, Judge Huff sentenced Ottinger for his role in the methamphetamine conspiracy to serve 262 months in federal prison. Ottinger still faces murder charges in state court relating to the 2010 murder of a rival member of the Mongols motorcycle gang.
U.S. District Judge Marilyn L. Huff found both Garcia and Scanlon to be career offenders under federal law. This offense is Garcia's ninth felony conviction, including eight drug felonies and one felony for forging an access card to commit fraud. Scanlon now has ten felony convictions, including eight drug felonies, one felony for receiving stolen property, and one felony for evading a peace officer.
United States Attorney Duffy stated, "Individuals involved in the drug trade not only proliferate the spread of dangerous narcotics in our society, but they also destabilize our communities with violence and related criminal activities. Our federal, state and local law enforcement partners on the Task Force have done the San Diego community a great service by taking these dangerous offenders off the street."
DEFENDANT Case Number: 10CR5016-H David Raymond Garcia
Jason Alex Scanlon Age: 43
Age: 42 SUMMARY OF CHARGESConspiracy to Distribute MethamphetamineCTitle 21, United States Code, Sections 841(a)(1) and 846
AGENCIESFederal Bureau of Investigation
San Diego Police Department
San Diego County Probation Department
Oceanside Police Department
National City Police Department
Chula Vista Police Department
San Diego County Sheriff's Department
San Diego County District Attorney's OfficeSummary of Sentences in Criminal Case: 10cr5016-H
Conspiracy to Distribute Methamphetamine-Title 21, United States Code, Sections 841(a)(1) and 846
Michael Edward Ottinger, Jr.
David Raymond Garcia
Martin Francisco Moreno
Hugo Gomez Flores
Rory Cruz Flanigan
Jason Alex Scanlon
Eduardo Andres Sarquiz
Juan Antonio Mendez
William Manuel Castellano
Daniel Joseph Seiler
Cynthia Marie Stephan
Matthew Joseph Mooney
Darrel Lee Cooper
Robert Blaine Hodges
Mercedes Ciara Nina Cornejo
Bruce Kevin Lambert
Jason Michael Bradford
Douglas Edward Witcher
Phalen Farber
Derek Ralph Low
Mary Elizabeth Saber
Anthony James Medvec
Andre Guy Almeraz 262 Months
262 Months
120 Months
120 Months
70 Months
188 Months
41 Months
115 Months
92 Months
87 Months
78 Months
84 Months
60 Months
48 Months
77 Months
70 Months
60 Months
63 Months
40 Months
77 Months
92 Months
30 Months
46 Months
Summary of Sentences for Illegal Use of a Communication Facility to Facilitate Meth Trafficking – Title 21, United States Code, Section 843(b): Martin Thomas Forschner
Patrick James Haggerty
30 Months
46 Months Law enforcement continues to seek the public’s assistance in locating fugitive defendant Ernesto Verdugo, Jr. Anyone with information regarding this fugitive may contact the FBI at 858-565-1255.Defendants Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Three defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced on Friday, in federal court in Wichita Falls, by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Randall Wayne Ezzell, 46, was sentenced to 240 months in federal prison; Jason Alan Haney, aka “A.J. Haney,” 27, was sentenced to 235 months in federal prison; and Troy Radford, 36, was sentenced to 24 months in federal prison.
These are the first sentencings in this case in which 28 of the 30 defendants charged in the conspiracy have entered guilty pleas and will be sentenced during the next few months. The cases against two of the defendants have not been resolved. All 30 of the defendants who have been charged in the superseding indictment, which was returned by a federal grand jury in October 2012, are in custody.
According to documents filed in the case, Ezell admitted that on multiple occasions in 2011, he manufactured, or cooked, anhydrous methamphetamine for co-conspirator Steve Ysasaga. Ysasaga supplied the pseudoephedrine tablets, a necessary ingredient to manufacture methamphetamine, and Ezzell obtained the rest of the ingredients necessary to manufacture the methamphetamine. Each “cook” involved a minimum of 20 boxes of pseudoephedrine and yielded approximately 40 grams of methamphetamine.
In addition, according to documents filed in the case, when a state narcotics search warrant was executed on December 5, 2011, at 12570 FM 171 in Wichita Falls, Ezzell and co-conspirators James Allen Stafford and Diana Gail Hassell were present on the property when agents discovered a clandestine methamphetamine laboratory in operation.
Haney, whose primary role in the drug distribution conspiracy was as an enforcer, admitted that he accompanied Ysasaga to assist him in collecting a drug debt from a debtor by use of violence and intimidation. Haney also admitted that on numerous occasions in 2011, he received one-to two-ounce quantities of methamphetamine from Ysasaga and that he received at least 12 ounces of methamphetamine from Ysasaga. He admitted that he sold methamphetamine to customers, including co-conspirator Dewel Wells, in Wichita Falls.
Radford admitted that on numerous occasions between May and September 2012, he distributed quantities of methamphetamine to, and received payments for, methamphetamine from customers in the Wichita Falls area.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Cranston Felon Sentenced to 12 Years in Federal Prison on Heroin Trafficking, Firearms ChargesRead the Press Release
PROVIDENCE, R.I. – Abel Perez, 31, of Cranston, was sentenced on Friday to 12 years in federal prison for trafficking heroin, being a felon in possession of a firearm and for use of a firearm in furtherance of drug trafficking, announced United States Attorney Peter F. Neronha and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.
Perez was arrested in September 2011 by agents and officers assigned to the DEA Drug Task Force following a five-month undercover investigation into Perez’s drug trafficking activities.
At sentencing, U.S. District Court Judge William E. Smith also ordered Perez to serve four years of supervised release upon completion of his prison term. Perez pleaded guilty on February 3, 2012, to one count each of possession with the intent to distribute 100 grams or more of heroin, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the court, beginning in April 2011, DEA Drugs Task Force agents made several controlled purchases of varying amounts of heroin from Perez. On September 7, 2011, agents detained Perez as he exited his Cranston residence carrying a paper bag which he placed on the front seat of his vehicle. Perez consented to a search of the vehicle and of his two residences in Cranston and Johnston.
From the vehicle, agents seized more than 500 grams of heroin and a loaded .22 caliber semi-automatic handgun from a secret compartment behind the vehicle’s radio. A search of Perez’s residences and a garage turned up additional quantities of heroin, approximately $7,000 in cash, a .357 revolver and an assortment of ammunition.
U.S. District Court Judge William E. Smith sentenced Perez to 84 months in federal prison for possession with the intent to distribute 100 grams or more of heroin and being a felon in possession of a firearm; and, a consecutive sentence of 60 months in federal prison for possession of firearm in furtherance of a drug trafficking crime.
The case was prosecuted by Assistant U.S. Attorney Adi Goldstein.
The DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police and Cranston, East Providence, Pawtucket, Providence, Newport, Warwick and Woonsocket Police Departments.
Contact: 401-709-5357
[email protected]Convicted Sex Offender Sentenced to Thirty Months in Federal Prison for Failing to RegisterRead the Press Release
Montgomery, Alabama - Samuel P. Wadsworth, 41, a resident of Houston County, Alabama, was sentenced to federal prison for a federal felony conviction for failing to register as a sex offender, United States Attorney George L. Beck, Jr., announced today.
A federal grand jury indicted Wadsworth in June 2012, for one count of failing to register and update a registration as required by the Sex Offender Registration and Notification Act. Back in 2005, Wadsworth was convicted of one count of sexual abuse first degree in Russell County, Alabama. Due to this conviction, Wadsworth is required to register in Alabama and keep his registration current. During Wadsworth’s guilty plea hearing he admitted that he knew he was required to register, that from 2008 to 2011 he registered as a sex offender in Alabama, and that prior to moving to another state he must notify the Houston County Sheriff’s Office of his intention to move. Further, Wadsworth admitted that he traveled from Alabama to Florida and failed to update his sex offender registry in Alabama.
Chief United States District Judge W. Keith Watkins sentenced Wadsworth to thirty (30) months imprisonment to be followed by five (5) years of supervised release. Chief Judge Watkins noted that Wadsworth had not only failed to register but also attempted to rob a store, attempted to rob a bank, and robbed a bank while he was unregistered. Wadsworth remains in the custody of the United States Marshals Service pending placement by the Bureau of Prisons.
This case was investigated jointly by the United States Marshals Service and Houston County Sheriff’s Office. Assistant United States Attorney Jerusha T. Adams prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Cedar Rapids Man Sentenced for Making False Statement to Postal InspectorRead the Press Release
A man who made a false statement to a U.S. Postal Inspector conducting a fraud investigation was sentenced today to more than one year in federal prison.
Raymond Cortez, age 65, from Cedar Rapids, Iowa, received the prison term after a December 11, 2012, jury verdict finding him guilty of one count of making a material false statement in a matter within the jurisdiction of the United States.
Evidence at trial showed that, on November 20, 2007, Cortez lied to a U.S. Postal Inspector during an interview. The Postal Inspector asked Cortez whether his vehicle, a black Hummer, was involved in a chase of a young man the month prior on First Avenue in Cedar Rapids. Cortez falsely denied knowing anything about the chase. The evidence at trial showed Cortez was the driver of the Hummer during the chase. The chase was being investigated because the occupants of the Hummer were attempting to retrieve a $3,323.00 federal student aid check from the young man. Some of the occupants of the Hummer had fraudulently obtained the check as part of a scheme to defraud the United States out of student loan funds.
Cortez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Cortez was sentenced to twenty-one months’ imprisonment to be followed by three years’ supervised release. A special assessment of $100 was also imposed. There is no parole in the federal system.
At the sentencing hearing, Chief Judge Reade said Cortez had “no respect for the law.” Judge Reade enhanced Cortez’s sentence for perjuring himself during his testimony at trial. Regarding Cortez’s trial testimony, Judge Reade added Cortez had “no respect for the oath.”
Cortez was released on the bond previously set and is to surrender to the United States Marshal on April 15, 2013.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the United States Postal Inspection Service and the United States Department of Education.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-74 LRR.
Caddell Construction Agrees to Pay $1,150,000 to Resolve False Claims AllegationsRead the Press Release
The Justice Department announced today that Alabama-based Caddell Construction has agreed to pay to the United States $1,150,000 to settle allegations that it violated the False Claims Act by falsely reporting to the Army Corps of Engineers that it hired and mentored a Native American-owned company to work on construction projects at Fort Bragg, N.C., and Fort Campbell, Ky.
The Army Corps contracted with Caddell between 2003 and 2005 to build barracks at the two bases. As part of the contracts, Caddell represented that it would hire and mentor Mountain Chief Management Services, a Native American-owned company, under the Department of Defense’s Mentor-Protégé and Indian Incentive Programs. The Mentor-Protégé Program reimburses companies for the time and cost of mentoring small disadvantaged businesses, while the Indian Incentive Program provides a rebate to contractors for subcontracting with Native American-owned businesses.
The United States alleged that from April 2003 to March 2005, Caddell falsely represented in its invoices and supporting documents that it was mentoring Mountain Chief and that Mountain Chief was performing work on the construction projects. According to the government, Mountain Chief allegedly was merely a pass-through entity used by Caddell to claim payments under the two programs, and didn’t perform the work or receive the mentoring services for which Caddell received payment.
“Contractors that subvert important government programs, such as those designed to benefit small and Native American-owned businesses, will be held accountable,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “We will work tirelessly to ensure that participants in federal programs and benefits receive only the money to which they are entitled.”
Caddell’s former director of business development, Mark Hill, and Mountain Chief’s former president, Daniel Chattin, were indicted on related charges in federal district court for the Middle District of Alabama in January 2012. Both are awaiting trial. In December 2012, Caddell entered into a non-prosecution agreement with the United States under which it agreed to pay the United States $2 million and to cooperate in the ongoing criminal matter.
The civil case was handled by the Civil Division of the Department of Justice, with investigative assistance provided by the General Services Administration Office of Inspector General and the Defense Criminal Investigative Service.
Bullhead Woman Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota woman has been indicted by a federal grand jury for Child Abuse.
Leah Vandermeulen, age 48, was indicted by a federal grand jury on March 13, 2013. She appeared before U.S. Magistrate Judge William D. Gerdes on March 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 15 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 2 years. The charge is merely an accusation and Vandermeulen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Vandermeulen was released on bond pending trial. A trial date has not been set.
Brooke County Man Sentenced for Threatening Police OfficersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A 42-year old Brooke County, West Virginia, resident was sentenced to prison for threatening to harm local law enforcement officers.
United States Attorney William J. Ihlenfeld, II, announced that JAMES W. RICHARD was sentenced to 25 months in federal prison to be followed by two years of supervised release as a result of his conviction for “Mailing Threatening Communications.” RICHARD admitted to sending letters from the Northern Regional Jail containing threats to harm a Wellsburg police officer as well as a Brooke County sheriff’s deputy. The officers he threatened were involved in the investigation of RICHARD for “Breaking and Entering”, “Domestic Assault”, and “Brandishing a Deadly Weapon.” RICHARD was later convicted of those charges and was serving time for those offenses when he mailed the letters.
“Whenever a law enforcement officer is threatened with bodily harm my office is going to do everything it can to make sure that those responsible for making the threats are held accountable,” said U.S. Attorney Ihlenfeld. “We must protect our police officers so that they can protect the communities that they bravely serve each day.”
RICHARD, who was sentenced to prison by Judge Frederick P. Stamp, Jr., was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the United States Postal Inspection Service.
Blooming Prairie Man Indicted for Producing, Distributing Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late Friday charges a 40-year-old Blooming Prairie man with producing, distributing, and possessing child pornography. The indictment, which was filed on March 19, 2013, charges Brian Luke Broulik with one count of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. The indictment was unsealed following Broulik’s initial appearance in federal court.
The indictment alleges that on May 12, 2012, Broulik induced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct on his cell phone. It also alleges that on March 9, 2012, Broulik knowingly distributed similar depictions via a computer, and that on May 24, 2012, Broulik possessed similar depictions and videos.
If convicted, Broulik faces a potential maximum penalty of life in federal prison for production of child pornography, 40 years for distribution, and 20 years for possession. All sentences would be determined by a federal district court judge.This case is the result of an investigation by the Olmsted County Sheriff’s Office, and the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kevin S. Ueland.
Production, distribution, and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Blackfoot Man Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Blackfoot, South Dakota man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Stewart Bobtail Bear, Sr., age 41, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on March 20, 2013 and pled not guilty to the indictment. The maximum penalty on each count upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years. The charges are merely accusations and Bobtail Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley is prosecuting the case. Bobtail Bear was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Blackduck Man Indicted for Involuntary ManslaughterRead the Press Release
MINNEAPOLIS—Last week in federal court, a 27-year-old Blackduck man was indicted in connection with the October 23, 2012, death of a young woman in Redby, Minnesota. On March 19, 2013, Dustin Michael Johnson was charged with two counts of involuntary manslaughter.
The indictment alleges that on October 23 Johnson killed the woman without malice. It alleges that Johnson was operating a motor vehicle while under the influence of alcohol on State Highway 15 and crashed. The victim, who was a passenger in the vehicle, was killed.
If convicted, Johnson faces a potential maximum penalty of eight years in prison on each count. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Bakersfield Man Sentenced in ‘Operation Price is Right’Read the Press Release
FARGO - First Assistant U.S. Attorney Lynn Jordheim announced that on March 25, 2013, Henry Lee Paredez, Jr., 34, of Bakersfield, Calif., was sentenced before U.S. District Judge Ralph R. Erickson to 324 months (27 years) in prison for his role in a large scale methamphetamine trafficking and money laundering conspiracy that was the subject of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Operation Price is Right.” As part of the sentence, Paredez, Jr. was
ordered to forfeit $25,000 in cash.First Assistant U.S. Attorney Lynn Jordheim said, “The stiff sentences sought by federal prosecutors in Operation Price is Right should be a warning to drug trafficking organizations about the risk of doing business in the Red River Valley. Investigations like Operation Price is Right protect our community by targeting the leaders of these organizations and bringing them to justice.”
Jordheim added, “I also want to recognize the outstanding efforts of Assistant United States Attorney and OCDETF Chief Chris Myers and his team from our office and from local, state and federal law enforcement in producing the outstanding results of Operation Price is Right. These dedicated men and women continue to work hard and produce great results for the citizens of North Dakota and the United States.”
On January 17, 2013, Ariana Jasmin Paredez, 23, wife of Paredez, Jr., was sentenced to 24 months for money laundering conspiracy. Henry Rosas Paredez, Sr., 66, was also sentenced to nine months for money laundering conspiracy.
During the course of the conspiracy that was the subject of the Operation Price is Right investigation, the organization transported approximately six (6) pounds of methamphetamine from sources of supply in Minneapolis-St.Paul and Bakersfield, California. This methamphetamine was distributed in the Fargo-Moorhead area.
Additional defendants who have previously been sentenced in Operation Price is Right include:
- Christina Barker - Moorhead, MN
Conspiracy to Distribute Controlled Substances - 276 months - Mary Roberts - Fargo, ND
Conspiracy to Distribute Controlled Substances - 228 months - Annette Avila - Fargo, ND
Conspiracy to Distribute Controlled Substances - 216 months - Ryan William Johnson - Valley City, ND
Conspiracy to Distribute Controlled Substances - 210 months - Betty Ann Schweigert - Fargo, ND
Conspiracy to Distribute Controlled Substances - 192 months - Thomas William Joseph Altringer - Moorhead, MN
Conspiracy to Distribute Controlled Substances -72 months - Holly Thomas - Moorhead, MN
Conspiracy to Distribute Controlled Substances - 33 months
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Moorhead and Fargo Police Departments.
Assistant U.S. Attorney Chris Myers prosecuted the case.
- Christina Barker - Moorhead, MN
Armed Bank Robbery Lands Another in Federal PrisonRead the Press Release
HOUSTON – A second person charged in the armed robbery of two local banks has been ordered to prison for more than 16 years, United States Attorney Kenneth Magidson announced today. Barry Ogilvie, 37, of Houston, pleaded guilty March 28, 2011, to two counts of aiding and abetting aggravated bank robbery and one count of discharging a firearm during a crime of violence.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Ogilvie two 78-month sentences for the bank robbery charges to run concurrent. He was further ordered to serve 10 years for the firearm conviction which must be served consecutively for a total sentence of 198 months. Ogilvie will be required to serve a term of three years of supervised release following completion of the prison term.
On Sept. 9, 2010, Ogilvie and Andrea Steptore, 30, of Houston, both armed with firearms, robbed the Prosperity Bank located on the 2800 block of F.M. 1960 East in Houston. During the robbery, Ogilvie shot two rounds of ammunition into a wall. No one was injured, but behind the wall was a drive-thru teller stand. Zachary Ellis, 48, of Houston, had selected the bank,, scouted it prior to the robbery and shared in the proceeds.
Less than two weeks later, Ogilvie and Steptore attempted to rob the Vista Bank on the 14500 block of Northwest Freeway in Houston. They were both armed with semi-automatic pistols and wore masks. When they approached the bank, an off-duty police officer, who was working security at the bank, saw them and began firing at them. Steptore was able to flee in the getaway vehicle driven by a third individual, but Ogilvie was arrested. Odis Darrell Wheeler, 21, of Houston, stole a car which was used in the robbery and waited around the corner in a switch vehicle. Ellis had again selected the bank, told his co-conspirators he had scouted it prior to the robbery and planned to share in the proceeds.
Wheeler, Steptore and Ellis have all also pleaded guilty to aiding and abetting aggravated bank robbery. Ellis was sentenced last month to 97 months in federal prison. Wheeler and Steptore are set for sentencing April 15, 2013. At that time, they face up to 25 years in prison and a possible $250,000 fine. Steptore, who also pleaded guilty to brandishing a firearm during a crime of violence, also faces a minimum seven-year-term of imprisonment which must be served consecutively to the other sentences imposed.
The case was investigated by FBI Houston Bank Robbery Task Force. Assistant United States Attorney Jennie Basile is prosecuting the case.
Another Street Gang Leader Is Prosecuted in Federal CourtRead the Press Release
MINNEAPOLIS—This afternoon in federal court in St. Paul, the former leader of the “Young and Thuggin’” (“YNT”) street gang was sentenced for distributing crack cocaine. United States District Court Judge Susan Richard Nelson sentenced Trayjohn Lashawn Martin, age 21, of Minneapolis, to 87 months in federal prison on one count of aiding and abetting the distribution of crack cocaine.
Martin was indicted on September 7, 2011, and pleaded guilty on June 14, 2012. Because the federal justice system does not have parole, Martin will spend virtually his entire prison sentence behind bars.
In his plea agreement, Martin admitted that on June 13, 2011, he provided a confidential informant with approximately 24.7 grams of crack cocaine during a controlled purchase in north Minneapolis. Several days earlier, law enforcement officers had contacted Martin via telephone to set up the buy. It ultimately took place in the 2500 block of Fourth Street North.
Martin also admitted to the court that he conspired with others to possess with intent to distribute as well as to distribute at least 28 grams but less than 112 grams of crack cocaine.The YNT gang has been connected to a string of violence in North Minneapolis, which has included the trafficking of both narcotics and firearms.
This sentence comes on the heels of last week’s federal-court conviction of several members of the Native Mob street gang on charges ranging from racketeering to attempted murder.
This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case was prosecuted by Assistant U.S. Attorney Steven L. Schleicher.Amarillo Man Faces Life in Federal Prison After Jury Convicts Him of Committing Armed Bank Robbery and Other Firearms OffensesRead the Press Release
Federal Jury Also Convicts Defendant’s Nephew on Federal Firearm Offense
AMARILLO, Texas — Following a five-day trial before U.S. District Judge Mary Lou Robinson, a federal jury has convicted Amarillo residents, Donald Joseph West, 49, and his nephew, David James West, 43, on all counts of a superseding indictment, returned by a federal grand jury earlier this year, charging felony offenses in connection with the November 5, 2012, armed robbery of FirstBank Southwest in Amarillo. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Donald West was convicted on one count of aggravated bank robbery, one count of being a felon in possession of a firearm and one count of using a firearm during and in relation to a crime of violence (the bank robbery). An armed career criminal, Donald West faces a statutory sentence of not less than 22 years and up to life in federal prison and a $750,000 fine.
David West, who remains on bond, was convicted on one count of the unlawful sale and disposition of a firearm. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Sentencing for both defendants is set for June 4, 2013, before Judge Robinson.
The government presented evidence at trial that on Monday, November 5, 2012, a man wearing a mask, entered the FirstBank Southwest, located at 5701 Southwest 34th Street, in Amarillo, pointed a gun at a teller and demanded cash. The teller placed money in a bag and the man, later identified as Donald West, left the bank. He was arrested the next evening by officers with the Amarillo Police Department and special agents with the FBI and has been in custody since that time.
The government presented further evidence that during the robbery, Donald West used a semi-automatic pistol. When he was arrested, a firearm, that was given to him by David West shortly before the robbery, was recovered. Donald West is a convicted felon, having been convicted 1) in Randall County, Texas, of committing aggravated robbery with a deadly weapon in 1988; 2) in U.S. District Court for the Northern District of Texas, with conspiracy to commit bank robbery and bank robbery in 1987; and 3) in Randall County for evading detention in 2011. The government presented further evidence that David West knowingly gave the 9mm caliber pistol to his uncle, well knowing that he was a convicted felon.
The investigation was conducted by the FBI, the Amarillo Police Department and the Potter and Randall County Sheriff’s Offices. Assistant U.S. Attorneys Jeff Haag, Justin Cunningham and Christy Drake are prosecuting.
Algona Man Charged with Methamphetamine ConspiracyRead the Press Release
Ryan Gene Hansen, 31, from Algona, Iowa, has been charged with conspiracy to distribute methamphetamine. The charges are contained in a complaint filed on March 18, 2013, in United States District Court in Sioux City.
The Complaint alleges that, from about 2012 through March 2013, Hansen conspired to distribute methamphetamine in the Algona, Iowa, area.
If convicted, Hansen faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a special assessment of $100, and a term of supervised release from five years to life following any imprisonment.
Hansen appeared March 18, 2013, in federal court in Sioux City and was held without bond.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Kossuth County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-76.
Saturday 23 March 2013
Four Chicago Men Sentenced to Lengthy Federal Prison Terms for Gun and Drug CrimesRead the Press Release
CHICAGO — Four Chicago men were sentenced to lengthy federal prison terms after being convicted in three separate cases of various firearms and narcotics charges, federal law enforcement officials announced today. Each case demonstrates the constant efforts of federal agencies — in these three instances, the Bureau of Alcohol, Tobacco, Firearms and Explosives – working together with the Chicago Police Department, to investigate and prosecute the violent combination of gangs, guns and drugs throughout the city.
RASHOD BETHANY and RICKY LONG, principal members of Bethany’s Gangster Disciples “Killing Crew,” who created a “zone of brutality” to protect their distribution of crack cocaine on the city’s far south side, were sentenced yesterday to 25 years and 15 years, respectively.
Separately, MICHAEL HENDERSON was sentenced yesterday to 19 years and 7 months in prison as an Armed Career Criminal for illegal possession of a firearm as a convicted felon. And WILLIE STOKES, a member of the Four Corner Hustlers street gang, was sentenced Tuesday to 10 years in prison as a career offender for illegal possession of two firearms and distribution of crack cocaine.
Bethany, 28, also known as “Fat Man,” and Long, aka “Li’l Ricky,” 32, both of Chicago, were sentenced by U.S. District Judge Harry Leinenweber following a three-day hearing that began Monday in Federal Court. Both were arrested in May 2006 and later pleaded guilty to narcotics charges in connection with the operation of two drug houses, located at 12012 South Emerald and 11952 South Eggleston, in an area dubbed “Trigger Town.”
The government presented evidence and testimony detailing both defendants’ involvement in murders, attempted murders, and beatings of individuals, including other drug dealers, a witness to a drug-related shooting, and workers at their crack houses. A Chicago police detective testified that witnesses to violence attributed to Bethany and his crew often were too fearful to cooperate with police, preventing Bethany from ever being charged with any specific murders.
“The defendants instituted a regime of control and intimidation to make sure that they were able to sell their crack,” Assistant U.S. Attorney Kruti Trivedi argued at the hearing. Assistant U.S. Attorney Tony Garcia also represented the government.
In a separate case, Henderson, 49, of Chicago, was sentenced yesterday by U.S. District Judge Samuel Der-Yeghiayan to 235 months in prison after being convicted at trial in March 2012 of possessing a firearm as a previously convicted felon. On Aug. 10, 2010, Henderson and a passenger were driving around at night in the area near West Diversey and North Sacramento on the city’s west side. Henderson had a loaded gun and his passenger was carrying heroin packaged for sale. Chicago Police officers stopped Henderson for committing a traffic violation and saw a gun on the driver’s seat. Henderson’s 10 prior convictions, including aggravated battery and drug trafficking, qualified him as an Armed Career Criminal under federal law, subjecting him to a mandatory minimum sentence of 15 years in prison. The Cook County State’s Attorney’s Office referred Henderson’s case for federal prosecution as part of Project Safe Neighborhoods because of the likelihood of a more substantial sentence in Federal Court. The government was represented by Assistant U.S. Attorneys Andrianna Kastanek, Patrick King, and Julie Porter.
In the third case, WILLIE STOKES, 37, aka “Flukey,” of Chicago, was sentenced on Tuesday to 10 years in prison by Judge Leinenweber after pleading guilty last October to being a felon-in-possession of a firearm, making him a career offender under federal law. Stokes, a member of the Four Corner Hustlers street gang, admitted that he sold two firearms and an ounce of crack cocaine to an undercover ATF agent in 2009. After serving a state sentence for shooting a man in the head, Stokes was warned that any subsequent firearms offense could subject him to federal prosecution. The government was represented by Assistant U.S. Attorney Andrew DeVooght.
The sentences were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Larry Ford, Special Agent-in-Charge of the Chicago Office of ATF; and Garry McCarthy, Superintendent of the Chicago Police Department
Friday 22 March 2013
Yonkers Resident Sentenced to 41 Months Imprisonment for Impersonating an IRS Officer in Furtheranceof A Fraudulent Tax Refund SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JARED BREWTON was sentenced in White Plains federal court to 41 months in prison for his participation in a fraudulent tax refund scheme involving identity theft, subscribing to false and fraudulent tax returns, and impersonating an IRS employee and a New York State Department of Labor official. BREWTON pled guilty in July 2012 to a six-count Indictment before U.S. District Judge Vincent L. Briccetti, who also imposed today’s sentence.
U.S. Attorney Preet Bharara stated: “Jared Brewton concocted an elaborate charade in his efforts to steal thousands of dollars from the IRS. His substantial sentence should deter others who contemplate doing the same thing.”
According to the previously filed Indictment:
From about 2006 through about 2010, BREWTON engaged in a scheme to obtain fraudulent tax refunds from the IRS. BREWTON carried out this scheme by preparing and causing to be sent to the IRS various federal income tax returns – in his own name and in the names of others – that fraudulently inflated income and withholding figures. For example, BREWTON falsely reported that his wages for the calendar year 2006 were $783,981 and that $359,750 in taxes had been withheld by his employers. BREWTON also fraudulently obtained tax refunds in other people’s names by stealing the names or defrauding the people into giving him their personal identifying information, then filing fraudulent tax returns in their names, and directing that the resulting refunds be sent to his address.
To further the scheme, on at least one occasion BREWTON posed as someone affiliated with the New York State Department of Labor in order to persuade a taxpayer to provide him with the taxpayer’s name, date of birth, and Social Security number. On multiple other occasions, BREWTON posed as an employee of the IRS claiming to be an “Audit Group Representative” named “Susan Waters.”
Mr. Bharara praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigations, and the U.S. Treasury Inspector General for Tax Administration.
This case is being handled by the Office's White Plains Division. Assistant U.S. Attorney John P. Collins, Jr. is in charge of the prosecution.
Williamson County Man Sentenced to More Than Twelve Years for Engaging in Methamphetamine ConspiracyRead the Press Release
On March 22, 2013, Mitchell R. Owens, 32, of Herrin, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Owens, who had previously pled guilty to the methamphetamine charge, was sentenced to 151 months (twelve years and seven months) in prison, 8 years of supervised release, and fined $600. The offense occurred between 2010 and January 2012, in Williamson, Jackson, and Franklin Counties. Evidence at the plea and sentencing hearings established that Owens was involved with others in the manufacture of methamphetamine. During the conspiracy, Owens participated in numerous methamphetamine “cooks” and also obtained over 124 grams of pseudoephedrine for the purpose of manufacturing methamphetamine.
The ongoing investigation is being conducted by the Drug Enforcement Administration and Jackson County Sheriff’s Office, with the assistance of the Murphysboro Police Department, Marion Police Department, Williamson County Sheriff’s Office, Illinois State Police, and Mt. Vernon Police Department.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ [email protected]
South Bend, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Jaleen McGee, 20, of South Bend, Indiana, a defendant in the case US v Shaw et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of racketeering.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/18/13.
Alvin Blade, III, 21, of South Bend, Indiana, a defendant in the case US v Shaw et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of carrying a firearm and using a firearm during a drug trafficking crime/crime of violence.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/13/13.
The charges against McGee and Blade were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.The case in which both are charged is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
David Dircks, 53, of, South Bend, Indiana, a defendant in the case US v Wells et al., was sentenced by District Judge Robert Miller, Jr. to 114 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Dircks has multiple prior felony convictions including possession of controlled substances (1992, 2004, 2007), forgery (1992), and residential burglary (1996). He has many other convictions as well, including forgery (misdemeanor), criminal trespass, possession of a fraudulent ID card, theft, deceptive practice, false informing, Illinois vehicle code offenses, possession of drug paraphernalia, possession of marijuana, disorderly conduct, panhandling, hit and run, resisting a police officer, domestic battery, and battery. He committed his federal offenses while he was on probation in LaPorte County, Indiana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ [email protected]
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENT:
Rebhi Mohammad, 59, Ola Mohammad, 32, and Abdkdar Mohammad, 28, of Chicago, Illinois, were charged in a Superceding Indictment with conspiracy to defraud the USDA “SNAP” program (Supplemental Nutrition Assistance) and wire fraud by claiming that they and the business known as Moses Foods were legitimately entitled to reimbursements when in fact they were trading cash and ineligible items for SNAP benefit redemptions.These charges were filed as the result of an investigation by the Federal Bureau of Investigation and the United States Department of Agriculture Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Diane Berkowitz.
PLEAS:
Dwayne Crawford, 40, of Merrillville, Indiana, pled guilty before Magistrate Judge Andrew Rodovich to the felony offense of conspiracy to possess with intent to distribute and distribute 100 kilograms or more of marijuana, possession with intent to distribute and distribute 500 grams or more of cocaine and engaging in a monetary transaction with criminally derived property of a value greater than $10,000 .Magistrate Rodovich is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 5/17/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jacqueline Jacobs.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Miguel Chavez, 46, of Chicago, Illinois, was sentenced by District Judge Joseph Van Bokkelen to 41 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute 500 grams of more of methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ [email protected]
Fort Wayne, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
COMPLAINTS:
Glenda R. Brickey, 27, of Ligonier, Indiana, was charged in a Complaint with possession with the intent to distribute methamphetamine.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the Ligonier Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony Geller.
Juan Sandoval, 45, of Fort Wayne, Indiana was charged in a Complaint with distribution of methamphetamine.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the IMAGE Drug Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony Geller.
Javier Madrigal, 48, and Lizbeth Correa, 34, of Wawaka, Indiana, were charged in a Complaint with distribution and possession with the intent to distribute methamphetamine.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the Ligonier Police Department and the IMAGE Drug Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony Geller.
DISPOSITIONS:
Michael Watkins, 55, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 121 months imprisonment and 60 years of supervised release after pleading guilty to the felony offenses of distribution child pornography and possession of child pornography.According to documents filed by the government in this case, a d etective with the Noblesville, Indiana Police Department, located the IP address of a user who possessed, and was advertising for share, image and video files that had been previously identified as child pornography in other investigations by law enforcement.A response to a summons on the internet service provider revealed that the IP address belonged to Watkins.Pursuant to a federal search warrant, law enforcement recovered a computer, external hard drive and compact discs which contained images and videos of minors engaging in sexually explicit conduct.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Noblesville Police Department.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Waterbury Man Admits Making False Statements to Federal Agents Conducting Tax Fraud InvestigationRead the Press Release
March 22, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JOHN B. MAIA, 73, of Waterbury, pleaded guilty today before Chief United States District Judge Alvin W. Thompson in Hartford to one count of making a false statement to federal law enforcement agents investigating his filing of false tax returns.
According to court documents and statements made in court, on April 14, 2010, MAIA submitted to a voluntary interview with special agents of the Internal Revenue Service – Criminal Investigation who were conducting an investigation into whether MAIA had overstated deductions for charitable contributions and listed fictitious business expenses on his federal tax returns from 2005 through 2008. During the interview, MAIA falsely stated that the charitable contributions and business expenses were legitimate and that he had provided supporting documentation for the charitable contributions and business expenses to his tax preparer.
Chief Judge Thompson has scheduled sentencing for June 18, 2013, at which time MAIA faces a maximum term of imprisonment of five years and a fine of up to $250,000.
This case is being investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Christopher Mattei and Eric Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Utah County Man Pleads Guilty to Fraud, Tax Charge in Connection with Kickback Scheme on Construction Invoices; Embezzled About $800,854 from Tennessee CompanyRead the Press Release
SALT LAKE CITY – Darin W. Bare, age 47, of Eagle Mountain, Utah, pleaded guilty to mail fraud and filing a false tax return in federal court this week, admitting that he embezzled $800,854.63 from Clayton Homes, a company headquartered in Tennessee that specializes in building pre-manufactured and modular homes.
According to a Felony Information filed in the case, Bare managed the Salt Lake City sales office of a subsidiary of Clayton Homes and was responsible for hiring contractors and subcontractors to improve property lots for landscaping and home construction. The charging document alleged Bare devised and executed a scheme to obtain payment from Clayton Homes through the use of false invoices.
As a part of a plea agreement reached with federal prosecutors, Bare admitted that he conspired with a contractor, identified in court documents as D.J.H., to create and submit false invoices to Clayton Homes showing that work had been done on property lots sold by his office when, in fact, the work had not been done. D.J.H., a resident of Utah County, was the owner and operator of a general construction company known as H.B.
Bare admitted that he instructed D.J.H. on how much to charge Clayton Homes on the false invoices. Bare then entered the invoices into the Clayton Homes computer system. Relying on Bare’s representations on the invoices, Clayton Homes processed the false invoices, issued checks to D.J.H.’s business, and mailed the checks to Bare. Bare admitted he would then deliver the payments to D.J.H., who would provide him with a kickback. Bare said he deposited the checks into a checking account in another person’s name to avoid detection. Over time, Bare embezzled $800,854.63 through the fraud.
Bare also admitted that he did not report any of the money he embezzled from Clayton Homes on any of his tax returns. According to the plea agreement, Bare signed and filed a tax return for 2009 that failed to report an additional $482,639 in income for the tax year.
Bare, who waived indictment and entered his guilty pleas Wednesday, is scheduled to be sentenced May 30, 2013, at 2:30 p.m. in U.S. District Judge Clark Waddoups’ courtroom. He faces up to 20 years in prison for the mail fraud conviction and up to 3 years in prison for the tax conviction. He also agreed to pay restitution as a part of his plea agreement. The amount of restitution and the schedule of payments will be determined as a part of the sentencing proceeding.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS Criminal Investigation and the FBI.
Two MS-13 Street Gang Members Convicted in Federal Court on Racketeering, Murder and Firearms ChargesRead the Press Release
Following six weeks of trial, a federal jury in Central Islip today returned a verdict convicting Salvadoran street gang members, Heriberto Martinez, also known as “Boxer,” and Carlos Ortega, also known as “Silent” or “Silencio,” on federal criminal charges, including murder, assault with a dangerous weapon, firearms offenses, and conspiracy. Both defendants are facing mandatory life sentences as a result of their convictions. Sentencing is scheduled for September 10, 2013 before United States District Judge Joseph F. Bianco.
The convictions were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Thomas V. Dale, Commissioner of the Nassau County Police Department.
At trial, the government proved that the defendants Martinez and Ortega, along with their fellow MS-13 gang members, killed multiple victims between February and March of 2010:
(1) Martinez was convicted in connection with the execution-style murder of Vanessa Argueta, a 19-year-old woman, in Central Islip, New York, on February 5, 2010. Martinez also was convicted of being an accessory after-the-fact in the murder of Argueta and her 2-year-old son, Diego Torres, who was shot and killed during the same incident. Martinez , the leader of the Coronados Clique of the MS-13, authorized the murder of Argueta and then helped three of his co-conspirators evade arrest in New York and flee to El Salvador after the commission of the murders. The bodies of Argueta and Torres were found in a secluded wooded area in Central Islip. Argueta had been shot in the head and chest, and Torres had been shot twice in the head.
(2) Ortega was convicted in connection with the murder of 21-year-old David Sandler and the attempted murder of 20-year-old Aaron Galan in Brentwood, New York on February 17, 2010. Ortega and his fellow MS-13 gang members lured Sandler, whom the MS-13 believed was a member of the rival Latin Kings street gang, to Timberline Drive in Brentwood, under the pretext of wanting to buy marijuana from him. Once Sandler arrived, Ortega shot him in the face at close range, killing him. Ortega also shot Sandler’s close friend, Galan, who was with Sandler at the time, in the face. Miraculously, Galan survived.
(3) Martinez also was convicted in connection with the execution-style murder of 23-year-old Nestor Moreno, a security guard at El Rancho Bar and Grill in Hempstead, New York on March 6, 2010. In late February 2010, Heriberto Martinez and several other members of the MS-13 were involved in a dispute with El Rancho employees over an unpaid bar tab. The dispute escalated into a physical altercation during which Martinez was sprayed with pepper spray. Prior to leaving El Rancho, Martinez identified himself as an MS-13 member to the victim and told him, “It’s not going to end like this.” On March 6, 2010, Martinez, along with four co-conspirators, returned to El Rancho and carried out that threat, shooting Moreno in the head at point-blank range. The gun that Martinez used to kill Moreno was the same semi-automatic handgun used to kill Argueta and her son, one month earlier.
(4) Both Martinez and Ortega were convicted in the March 17, 2010 murder of Mario Alberto Canton Quijada in Far Rockaway, New York. Quijada, who was a fellow member of the MS-13, was killed because of his reluctance to “put in work,” or attack rival gang members on behalf of the MS-13. On March 17, 2010, Quijada was lured to the beach in Far Rockaway under the guise of attacking rival gang members. Once alone on the beach, the MS-13 gang members tried to shoot Quijada in the head with the same semi-automatic handgun used in murders of Moreno, and Argueta and her son. However, the gun jammed. Undeterred, Martinez, Ortega and the other MS-13 members set upon Quijada with knifes and machetes and hacked him to death.
The convictions of Martinez and Ortega are the latest in a series of federal prosecutions by this Office targeting New York members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more that two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 50 of those MS-13 members have been convicted on federal racketeering charges. Seventeen of those defendants have received sentences of 10 years or more, and more than a dozen MS-13 defendants have been sentenced or are awaiting sentencing on murder convictions. These prosecutions are the product of investigations led by the FBI Long Island Gang Task Force, comprised of agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department and the Rockville Centre Police Department.
“Instead of working to lift up their immigrant community, Martinez and Ortega chose to join the killing machine known as MS-13,” stated United States Attorney Lynch. “They devoted their energies to spreading senseless violence through the neighborhoods of Long Island, destroying their victims’ lives and the peace in the community. The range of victims, from a bouncer doing his job, to the cases of mistaken identity, to the fellow gang member who didn’t want to kill, to a young mother and her toddler, underscores these defendants’ callous disregard for human life. They will soon spend the rest of their own lives contemplating the choices they made. This case demonstrates the on-going commitment of this Office and the FBI’s Long Island Gang Task Force to combat the violence perpetrated by the MS-13 and other gangs.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
FBI Assistant Director-in-Charge Venizelos stated, “The wanton disregard for human life displayed by Martinez and Ortega is a graphic reminder of why MS-13 poses a threat to public safety on Long Island. The crimes for which they have been convicted include four murders committed in a six-week period in 2010. The FBI will continue to place a high priority on policing and curtailing gang violence on Long Island.”
Nassau County Police Commissioner Dale stated, “ In Nassau County we have zero tolerance for gang activity. These two defendants are particularly vicious gang members who were brought to justice by the Long Island Gang Task Force and the United States Attorney for the Eastern District of New York. The Nassau County Police Department’s participation in this task force is critical for ensuring that the most dangerous predators will be removed from our communities.”
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney and Carrie N. Capwell.
The Defendants:
Heriberto Martinez, also known as “Boxer”
Age: 26Carlos Ortega, also known as “Silencio” and “Silent”
Age: 23Two Clarksburg Residents Enter Pleas in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - Two individuals entered pleas of guilty in United States District Court in Clarksburg on March 20, 2013, before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that:
DEREK DELEON BROWN a/k/a “SMOKE,” age 23, of Clarksburg (formerly of
Pittsburgh, Pennsylvania) entered a plea of guilty to “Distribution of Crack Cocaine” on June
26, 2012, in Harrison County. BROWN, who is free on bond pending sentencing, faces up to
20 years imprisonment and a $1,000,000 fine.JASON SAUNDERS a/k/a “JOSH JAMES,” age 25, of Bridgeport, West Virginia, entered a plea of guilty to “Distribution of Crack Cocaine within 1,000 Feet of Simpson Elementary School” on May 29, 2012. SAUNDERS, who is in custody pending sentencing, and KENNEDY, faces a term of 1 to 40 years imprisonment and a $2,000,000 fine.
The case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
Temple University Agrees to Pay $100,000 to Resolve OverbillingRead the Press Release
PHILADELPHIA- Temple University has agreed to a $100,000 settlement to resolve allegations arising from overbilling for neurology services. The settlement agreement, which was reached on February 22, 2013, was announced by United States Attorney Zane David Memeger. The overbilling to Medicaid and Medicare programs arose from services rendered at Temple University's own facilities as well as services rendered at Frankford Hospital by Temple physicians. Temple University submitted claims for medical services that were improperly coded higher than the appropriate codes that were supported by the documentation for those services. Upon review of the documentation underlying these claims, Temple University agreed that the coding was not accurate and thus, that the government paid more than it should have for the services Temple University physicians provided. Under the parties' settlement agreement, Temple University will pay $100,000.00 to the United States.
“As we continue to seek to contain healthcare costs, the United States cannot tolerate overbilling to government healthcare programs,” said Memeger. “Unfortunately, this type of fraud and waste is a serious problem facing our healthcare system. To help ensure the continued viability of these critical healthcare programs for our citizens, we must be vigilant about preventing these financial drains on the system.”
This resolution was handled by Assistant U.S. Attorneys Veronica J. Finkelstein and Susan R. Becker.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Store Owner Charged with Trafficking Counterfeit Sports ApparelRead the Press Release
BOSTON - A Chicopee store owner was charged today in federal court with selling counterfeit NHL, NFL, MLB and NBA sports apparel.
James M. Dent, 51, was charged in an Information with trafficking in counterfeit goods. The Information alleges that between 2007 and 2012, Dent sold counterfeit sports apparel from the four major professional sports leagues, in his Central and Western Massachusetts stores. The stores were located in the Holyoke Mall in Holyoke (Sports Zone); the Greendale Mall in Worcester (Sports Zone); the Berkshire Mall in Lanesborough (Collectibles and Cards); the Hampshire Mall in Hadley (Collectibles and Cards); and the Eastfield Mall in Springfield (Collectibles and Cards).
The statutory maximum penalty is 10 years in prison, to be followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Paul Felon Indicted for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier this week in federal court, a 23-year-old felon from St. Paul was indicted for possessing a nine-millimeter, semi-automatic pistol. On March 19, 2013, Virgil Lee Kirkwood was charged with one count of being a felon in possession of a firearm.
The indictment alleges that on December 6, 2012, Kirkwood possessed the pistol. According to a law enforcement affidavit filed in the case, officers learned that Kirkwood was in possession of a gun and looked for him in the area of the 700 block of Central Avenue in St. Paul, Minnesota. When officers approached, they found Kirkwood and he was detained on an outstanding Anoka County warrant for an unrelated burglary. The pistol was found inside a black sock hidden nearby.
Because he is a felon, Kirkwood, also known as Virgil Lee Crenshaw, is prohibited under federal law from possessing firearms or ammunition at any time. His prior Hennepin County convictions include second-degree burglary (2010), third-degree attempted burglary (2012), and other offenses. Because certain of these convictions constitute crimes of violence, Kirkwood is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.This case is the result of an investigation by the St. Paul Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Siblings Arrested for Reynoldsburg Jewelry Store Armed RobberyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Darnell J. Harris, 25 and his sister Mariah Harris, 19, both of Canal Winchester, Ohio have been arrested based on charges in a federal indictment alleging that they robbed a Reynoldsburg jewelry store in May 2012.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Reynoldsburg Police Chief Jim O’Neill announced the arrests which occurred yesterday.
The indictment charges each defendant with one count of obstructing interstate commerce (Hobbs Act) by robbing Heins Jewelers in Reynoldsburg on May 21, 2012. The crime is punishable by up to 20 years in prison and a fine of up to $250,000.
“The indictment alleges that they used actual and threatened physical violence in furtherance of the robbery,” U.S. Attorney Stewart said.
The indictment charges Darnell Harris with one count of brandishing a firearm during a crime of violence. That crime carries a sentence of seven years in prison to be served consecutive to any other sentence.
Reynoldsburg and Pickerington police officers arrested Darnell Harris following a traffic stop in Pickerington. Mariah Harris surrendered to the Reynoldsburg Police and was arrested there. Both have initial appearances before a U.S. Magistrate today.
“Pursuing offenders who commit firearms violence and disrupt the safety of our communities remains our top priority,” stated ATF Special Agent in Charge Shoemaker.
“Detective Mike Binder did an outstanding job on this case,” Reynoldsburg Chief O’Neill said. “I appreciate the partnership with Pickerington Police in making the arrest.”
U.S. Attorney Stewart commended the investigation conducted by the ATF and Reynoldsburg Police. Assistant U.S. Attorney David J. Bosley is representing the United States in the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Sewage Disposal Companies Sentenced for Violations of Clean Water ActRead the Press Release
BISMARCK – Hurley Enterprises, Inc., and Mon-Dak Water & Septic Services, LLC, pleaded guilty and were sentenced in separate cases today by U.S. District Judge Daniel L. Hovland on felony charges of illegal disposal of domestic sewage, a felony violation of the federal Clean Water Act (CWA). The convictions, which were announced by the Department of Justice’s Environmental and Natural Resources Division (ENRD), the United States Attorney’s Office for the District of North Dakota, and the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), stem from Hurley’s and Mon-Dak’s illegal dumping of sewage sludge in northwestern North Dakota in 2011 and 2012.
In 2011 and 2012 both Hurley and Mon-Dak were engaged in the domestic sewage disposal business. They pumped and removed sewage sludge for disposal from facilities in North Dakota such as oil well drilling sites, temporary crew housing sites and portable toilets. As part of their plea agreements with the United States, both Hurley and Mon-Dak admitted that in 2011 and 2012 their employees illegally discharged this type of sewage sludge by dumping the sewage sludge in a way that did not comply with regulations under the Clean Water Act. These regulations, which require a uniform spreading of this type of sewage sludge at controlled rates in order to fertilize soils, are designed to ensure the public safety. Specifically, Hurley and Mon-Dak both admitted that their truck drivers did not attempt to uniformly spread the sewage sludge, but rather dumped the sewage waste by simply opening the tanks on their trucks and discharging the sewage directly onto the ground.
In Hurley’s case, it admitted to illegally dumping sewage on January 3, 2012, at the Sipe Ranch, in McKenzie County, N.D., near a tributary to Beicegel Creek. An affidavit of an EPA-CID agent in the case alleged that Hurley had hauled over 78 loads of sewage to the Sipe Ranch site. Additionally, Hurley also admitted to illegally dumping sewage on May 23, 2012, at Epping Brook in Williams County, N.D. That sewage was dumped into a tributary that flows into the Epping Spring Brook Dam.
In Mon-Dak’s case, it admitted to illegally dumping sewage on January 6, 2012, into a stubble field in Williams County, N.D., with such force and volume that the dumping resulted in drainage channels being cut into the ground that were about 100 yards long and 2.5 feet deep in places. An affidavit of an EPA-CID agent in the case alleged that between June 2011 and January 2012 Mon-Dak had hauled at least 178 loads of sewage to this location in Williams County, N.D.
Mon-Dak also admitted to illegally dumping sewage on July 17, 2012, on a location in Mountrail County, N.D. An affidavit of an EPA-CID agent in the case alleged that between June 2011 and January 2012 Mon-Dak had hauled at least 751 loads of sewage to this location in Mountrail County, N.D.
Judge Hovland sentenced both Hurley and Mon-Dak to pay $50,000.00 fines and $400 special assessments for their felony convictions. Additionally, both Hurley and Mon-Dak are currently subject to a Compliance Plan monitored by the North Dakota Department of Health for a two year period.
"The strong enforcement of environmental laws is essential to preserving North Dakota's natural resources for future generations," said Ignacia S. Moreno, the Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "Activities such as sewage disposal can be done safely, responsibly and in accordance with the law. We will vigorously prosecute those who cut corners at the expense of human health and the environment in North Dakota.”
“These historic convictions under the Clean Water Act are a first for the North Dakota United States Attorney’s Office,” said United States Attorney for North Dakota Timothy Purdon. “We are committed to using all the tools at our disposal as federal prosecutors to protect the water, air and wildlife in western North Dakota.”“As the nation continues important energy extraction activities, exploration companies are increasing the number and size of drilling rig sites and crew camps,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in North Dakota. “Companies must ensure that all waste connected with the drilling process is treated and disposed of safely and legally. Illegally discharged sewage can sicken or injure people, fish and wildlife. Today’s sentences show that those who try to save money by ignoring our environmental laws will be held responsible for their actions.”
These cases were investigated by the Environmental Protection Agency’s Criminal Investigation Division and the North Dakota Department of Health.
These cases were prosecuted by Assistant U.S. Attorney Cameron Hayden and ENRD Environmental Crimes Section Trial Attorney Christopher Costantini.
Sentences Handed Down to L.K.G. Enterprises, Inc. and Former President Sonny Garcia in El Paso Corruption InvestigationRead the Press Release
In El Paso this morning, former L.K.G. Enterprises, Inc., (LKG) president Ruben “Sonny” Garcia, Jr., was sentenced to four years in federal prison followed by three years of supervised release for conspiring to embezzle federal program funds announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
United States District Judge Frank Montalvo also sentenced LKG to five years probation during which time the corporation is prohibited from receiving any government contract. Judge Montalvo also ordered Garcia and LKG to jointly and severally pay $1.1 million restitution--$550,000 each to El Paso County and the Substance Abuse and Mental Health Services Administration (SAMHSA). Finally, Judge Montalvo ordered that Garcia surrender by May 7, 2013, to federal authorities to begin serving his prison term.
In July 2012, Garcia and LKG pleaded guilty to conspiracy to commit theft or embezzlement of federal program funds. By pleading guilty, Garcia admitted that he conspired with his co-defendant in this case, former Aliviane Chief Executive Officer Cirilo “Chilo” Lara Madrid, to pay a total of $24,000 in bribes to former El Paso County Judge Dolores Briones for her help and assistance to LKG with an El Paso County contract it was awarded to evaluate a health program for severely mentally handicapped and emotionally disturbed children in El Paso County. The program, Border Childrens’ Mental Health Collaborative (BCMHC), was funded by a 5-year federal grant valued at over $9 million. Garcia also admitted that from January 2006 until November 2006, LKG failed to provide (BCMHC) $50,000 in monthly donated services towards the efforts of the BCMHC as promised and required under the grant.
“It’s always an outrage when individuals seek to corrupt public officials for personal gain, but this case is particularly galling in that the intended beneficiaries of the program that was the subject of the crime were mentally and emotionally challenged children,” stated U.S. Attorney Robert Pitman. “An important element of criminal punishment is that of shaming, and it is my hope that this sentence sends a clear message that the perpetrators of this sort of crime are in fact victimizing real people, not just some abstract public trust.”
In December, a jury convicted Madrid of one count of conspiracy to steal or embezzle federal program funds, one substantive count of theft of embezzlement of federal program funds and one count of conspiracy to commit mail fraud and the deprivation of honest services. Madrid faces up to five years in federal prison on the embezzlement conspiracy charge; up to ten years in federal prison on the substantive embezzlement charge; and, up to 20 years in federal prison on the mail fraud conspiracy charge. His sentencing date is April 15, 2013.
“Any act of corruption cuts to the core of our justice system but nothing shatter’s the public’s confidence more than the actions of Garcia – a man who put his personal greed in front of those who needed the most – our children,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.
This investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Juanita Fielden and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.
Retired Teacher from Raton, N.M., to Serve Ten Years in Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Joseph F. Zinkiewicz, 76, was sentenced this morning to ten years in federal prison followed by ten years of supervised release for his possession of child pornography conviction. Zinkiewicz will be required to register as a sex offender after he completes his prison sentence. Zinkiewicz’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas.
Zinkiewicz, a retired teacher who resides in Raton, N.M., was arrested in April 2012, on a criminal complaint and charged with distributing, receiving and possessing child pornography in Colfax County, N.M., between Oct. 2011 and April 2012. He has been in federal custody since that time. Zinkiewicz was indicted in June 2012, and charged with three counts of distribution of child pornography, one count of receipt of child pornography, and two counts of possession of child pornography. He pled guilty on Oct. 23, 2012, to possession of child pornography.
Zinkiewicz was arrested as the result of an investigation that initially targeted a suspect in Colorado. During the investigation, an undercover agent engaged in communications with the Colorado suspect and learned that the suspect was a member of a group that used E-mail accounts to distribute and receive child pornography. In Nov. 2011, after the undercover agent obtained a hard drive containing thousands of child pornography images and videos from the Colorado suspect, agents executed a search warrant on the E-mail account used by the Colorado suspect and were able to identify the E-mail accounts of individuals, including Zinkiewicz, who shared child pornography with the Colorado suspect.
Beginning in Jan. 2012 and continuing until March 5, 2012, the undercover agent used the E-mail account belonging to the Colorado suspect to communicate with Zinkiewicz through his E-mail account. During these communications, Zinkiewicz sent a series of E-mails that included child pornography images and videos to the undercover agent. On April 4, 2012, law enforcement officers executed a federal search warrant at Zinkiewicz’s residence in Raton, and seized computers and computer-media in addition to photographs and DVDs that contain child pornography.
According to court records, Zinkiewicz admitted that he voluntarily participated in a recorded interview while the search warrant was executed at this residence and told agents that he had been looking at child pornography for ten to fifteen years. He also admitted to using his E-mail account to exchange child pornography with others on the Internet. Zinkiewicz also acknowledged that a forensic examination of his computer and computer-related media revealed that they contained nine videos and more than 1000 images of child pornography, including 28 images of children who have been identified as child pornography victims and have been rescued.
Zinkiewicz was subject to enhanced penalties in this case because he previously has been convicted of a child pornography offense. Records reveal that Zinkiewicz was convicted of distribution of child pornography in the Superior Court of the State of New Jersey in Jan. 2002.
The case was investigated by the HSI offices in Albuquerque and Greeley, Colo., with assistance from the New Mexico State Police and the Eighth Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children Task Force’s (ICAC Task Force) mission to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Registered Nurse Pleads Guilty in Connection <br /> with Detroit Medicare Fraud SchemeRead the Press Release
A registered nurse who fabricated nursing visit forms in connection with a $24 million home health care fraud conspiracy in Detroit pleaded guilty today for her role in the scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Beverly Cooper, 59, of Detroit, pleaded guilty before U.S. District Judge Victoria A. Roberts in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
Cooper admitted that she and others conspired to defraud Medicare through home health care companies operating in the Detroit area, including Reliance Home Care LLC, First Choice Home Health Care Services Inc. and Accessible Home Care Inc. According to court documents, Cooper fabricated nursing visit notes and other documents to give Medicare the impression that she had provided home health care services, when, in fact, home health care was not needed and/or was not being provided. Cooper also admitted that while at these companies, she signed nursing visit notes for home visits made by other unlicensed individuals to give Medicare the false impression that she had provided home health care. Court documents reveal that Cooper understood that the documents she created would be used by these companies to submit claims to Medicare for home health services that were not medically necessary and/or not provided.
Court documents show that when home health companies were inspected by state regulatory agencies, Cooper and her co-conspirators participated in staged home health visits, posing as employees of these companies and treating fake patients, all to give inspectors the false impression that these companies’ operations were legitimate and that home health services were in fact being provided.
Court documents allege that between 2006 and May 2012, Cooper’s conduct caused Reliance, First Choice and Accessible to submit claims to Medicare for services that were not medically necessary and/or not provided, causing Medicare to pay these companies approximately $5,403,703.
At sentencing, scheduled for July 23, 2013, Cooper faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney William G. Kanellis and Assistant Chief Gejaa Gobena of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Purported Real Estate Investor and Alleged Straw Buyer Charged in New Jersey with $13 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – Two alleged conspirators in a $13 million mortgage fraud scam that used phony documents and straw buyers to make illegal profits on overbuilt condos at the Jersey shore are charged in connection with the scheme, U.S. Attorney Paul J. Fishman announced.
New Jersey residents John Leadbeater, 54, of Kearny and Daniel Cardillo, 49, of Wildwood, are each charged in a superseding Indictment with conspiracy to commit wire fraud. Leadbeater is also charged with conspiracy to commit money laundering.
Leadbeater surrendered to special agents of the FBI this morning and is expected to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. Cardillo, who was previously indicted in this case, is expected to appear in federal court on March 25, 2013, before U.S. District Chief Judge Jerome B. Simandle in Camden.
According to the superseding Indictment, unsealed today:
Leadbeater and his co-conspirators located for purchase ocean town condominiums overbuilt by financially distressed developers in Wildwood and Wildwood Crest, N.J., and recruited straw buyers, including Cardillo, to purchase those properties. The straw buyers had good credit scores, but lacked the financial resources to qualify for the mortgage loans. The conspirators created false documents such as fake employment records, W-2 forms and investment statements to make the straw buyers appear more credit-worthy than they actually were in order to induce the lenders to make the loans.
To prepare the straw buyers’ false loan applications, Leadbeater and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false, attributing to the straw buyers inflated income and assets. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings on the properties, Leadbeater and his conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to the other members of the conspiracy for their respective roles.
Some previously charged co-conspirators have already pleaded guilty in connection with the scheme. Angela Celli, 42, of Somerset, Mass.; Robert Horton, 37, of Nashport, Ohio; and Justin Spradley, 35, of Cincinnati, pleaded guilty before Chief Judge Simandle and await sentencing.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, and special agents from IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen in Newark, for the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the superseding Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:
Leadbeater: Thomas J. Cammarata Esq., Jersey City, N.J.
Cardillo: Justin T. Loughry Esq., CamdenLeadbeater, John et al. Indictment
Pojoaque Pueblo Woman Pleads Guilty to Abandoning Her InfantRead the Press Release
ALBUQUERQUE – Alma Garcia, 29, a member and resident of Pojoaque Pueblo, pled guilty this morning in federal court to a misdemeanor information charging her with child abandonment.
The information charged Garcia with abandoning her minor child in spring 2010, in a situation in which the child may have suffered neglect. In entering her guilty plea this morning, Garcia admitted that, in April or May 2010, she intentionally left her infant in the custody of another person who neglected the child. Garcia admitted that this incident occurred on Pojoaque Pueblo.
Garcia was released under pretrial supervision pending her sentencing hearing, which has yet to be scheduled. At sentencing, Garcia faces up to a year in prison and a $1,000.00 fine.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Northern Pueblos Agency with assistance from the Pojoaque Pueblo Department of Social Services, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Plantation Man Sentenced in Child Pornography CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Franklin Adderley, Chief, Ft. Lauderdale Police Department, and Scott Israel, Sheriff, Broward Sheriff’s Office, announce that James E. Price, III, 42, of Plantation, Fla., was sentenced today before U.S. District Judge Kathleen M. Williams, in connection with his previous conviction for distribution and possession of child pornography , in violation of Title 18, United States Code, Sections 2252(a)(2) and 2252(a)(4)(B).
At today’s hearing, U.S. District Judge Kathleen M. Williams sentenced Price to 156 months (13 years) in prison, to be followed by 25 years of supervised release upon his release from imprisonment. Restitution will be determined at a later date.
According to court documents and three days of testimony during trial, the case originated from a South Florida Internet Crimes against Children Task Force (ICAC) investigation into an individual suspected of possessing and trading child pornography using a peer to peer file sharing network. The individual was later identified as Price. A search warrant was executed on Price’s residence, where agents discovered a hard drive hidden behind boxes in the home. Subsequent examination revealed that the hard drive was protected by encryption and contained hundreds of images and videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the South Florida ICAC, including the Martin County, Fla., Sherriff’s Office, the Broward County, Fla., Sherriff’s Office, and the Fort Lauderdale Police Department, with assistance from the CEOS High Technology Investigative Unit. The case was prosecuted by Assistant U.S. Attorneys Marc Anton and Mark Dispoto of the Southern District of Florida and by Trial Attorney Thomas Franzinger of CEOS in the Justice Department’s Criminal Division.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Peruvian Woman Sentenced to 60 Months and Bahamian Woman Sentenced to 36 Months in Prison for Alien SmugglingRead the Press Release
Peruvian national Jessie Katherine Gonzales Urquizo and Bahamian national Irene Mildred Janette Burrows were sentenced yesterday to serve 60 months and 36 months in prison, respectively, for their roles in smuggling undocumented migrants to the United States for private financial gain, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Urquizo, 37, and Burrows, 66, were sentenced by U.S. District Judge Kenneth A. Marra in the Southern District of Florida.
On Jan. 11, 2013, Urquizo and Burrows both pleaded guilty to charges arising from facilitating the illegal smuggling of Brazilian nationals into the United States by working for a known human smuggler in Brazil. According to court documents, the pair charged between approximately $100 and $125 per day in exchange for providing lodging and transportation to undocumented migrants waiting to be transported by boat to the United States. As part of the scheme, Urquizo and Burrows received instructions from Brazil-based smugglers on when and where to deliver certain undocumented migrants to waiting boats for passage to the United States.
Urquizo and Burrows admitted that they brought undocumented migrants, all of whom are Brazilian nationals, to the United States for financial gain. Urquizo admitted to taking payment for lodging the undocumented migrants at various hotels and stash houses, including a nursing home operated by Burrows, her co-defendant and mother-in-law. Urquizo further admitted that she arranged for food to be taken to the undocumented migrants, transported the undocumented migrants to a waiting boat upon instructions from a known human smuggler in Brazil, and demanded payment for her services. For her part, Burrows admitted to working with Urquizo, taking payment for lodging undocumented migrants at her nursing home, and providing transportation.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Alexandra Hui of the Southern District of Florida.
The investigation was conducted by the ICE Homeland Security Investigations in Miami.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pensacola Man Indicted for Sales of Firearms to Convicted Felons and for Dealing in Firearms Without A LicenseRead the Press Release
PENSACOLA, FLORIDA– Buddy Lamar Redden, 65, of Pensacola,was indicted today by the federal grand jury for six sales of firearms to convicted felons and for dealing in firearms without a license. The seven-count indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
If convicted of dealing in firearms without a license, Redden faces up to five (5) years in prison and a $250,000 fine. For each count of conviction for sale of a firearm to a convicted felon, Redden faces up to ten (10) years in prison and a $250,000 fine.
The indictment comes as a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Assistant U.S. Attorney Edwin Knight.
An indictment is merely a formal charge by a grand jury that a defendant has committed a violation of federal criminal law. A defendant is presumed innocent unless and until the government proves his guilt beyond a reasonable doubt to the satisfaction of a jury at trial.Owners of Woodbridge Home Health Business Sentenced to 121 Months for Health Care Fraud and Aggravated Identity TheftRead the Press Release
ALEXANDRIA, Va. – The owners of a Woodbridge, Va.-based home health care business were sentenced today to 121 months in prison, followed by three years of supervised release, for submitting more than $2.1 million in false claims to Virginia Medicaid and Anthem Blue Cross and Blue Shield (BCBS) for reimbursement of services they did not provide.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Ken Cuccinelli, Attorney General of Virginia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Claude M. Hilton.
Irvine Johnston King, 46, and Aisha Rashidatu King, 40, of Woodbridge, were convicted at trial on Jan. 10, 2013, of conspiracy and multiple counts of health care fraud, in addition to two counts of aggravated identity theft. At sentencing today, they were also ordered by the court to pay $931,894 in restitution and to forfeit the same amount.
According to court records and evidence at trial, the Kings owned and operated Bright Beginnings Healthcare Services, a business that provided in-home personal and respite care and private duty nursing services to Medicaid-eligible individuals. From at least January 2008 through June 2011, the Kings carried out a scheme to defraud the Virginia Medicaid program and Anthem Blue Cross and Blue Shield (BCBS) by submitting inflated claims for services. They submitted $2.1 million in fraudulent claims, of which Virginia Medicaid paid out $766,620 and BCBS paid out $165,273.
In May 2009, after learning that Virginia Medicaid had retained an outside firm to audit Bright Beginnings, the Kings began an extensive effort to cover up the fraud by creating false nursing documentation to support the claims, including timesheets and notes in the names of several nurses who had never worked at Bright Beginnings. They supervised an unlicensed employee who completed timesheets under the name of a licensed nurse and billed the employee’s time to Virginia Medicaid as licensed practical nursing services. They also directed the father of a patient to sign blank timesheets, which were then falsified to support fraudulent billing for services that had never been provided to that patient.
The investigation was conducted by FBI’s Washington Field Office and the Virginia Attorney General’s Medicaid Fraud Control Unit, with the assistance of the Virginia Department of Medical Assistance Services. Assistant U.S. Attorney Timothy D. Belevetz and Special Assistant U.S. Attorney Steven W. Grist of the Virginia Attorney General’s Office 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 https://pcl.uscourts.gov.Owner of Nellie’s Provisions Pleads Guilty to Tax EvasionRead the Press Release
CAMDEN, N.J. – The owner of a meat distribution company admitted today to evading taxes related to income diverted from his companies for his personal use, U.S. Attorney Paul J. Fishman announced.
Nicholas Papanier Sr., 57, of Sewell, N.J., pleaded guilty before U.S. District Judge Noel L. Hillman to an Information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Papanier owned Nellie’s Provisions, a meat distribution company that provided all of the meat for Primo Hoagies franchises and other independent restaurants. In 2006, 2007 and 2008, Papanier persuaded Primo Hoagies franchise owners to buy Thumann’s deli products from Nellie’s Provisions, often paying for them in cash. He took a significant amount of the cash paid to Nellie’s Provisions and deposited it into his personal bank accounts. He then used the money from his personal accounts to pay personal expenditures. He diverted a total of $556,664 for the calendar years 2006, 2007 and 2008 in the amounts of $56,395, $349,264, and $151,005, respectively.
Papanier admitted that he did not report the diverted cash to the IRS and only reported Form W-2 wages, interest and dividend income, and property tax information. By omitting all of the diverted cash, he failed to disclose and report a significant portion of this income on his tax returns, causing those tax returns to substantially understate the amount of income he received.
He admitted that for 2006, 2007 and 2008, had he reported the additional cash on his income tax returns he would have owed the government $189,656.
As part of the plea and in addition to the restitution, Papanier agreed to forfeit $484,010 to the United States. On Oct. 14, 2009, the United States filed a Verified Complaint for Forfeiture In Rem to forfeit and condemn to the use and benefit of the United States $372,042.54 in United States currency that was seized from Papanier’s bank accounts. On Sept. 16, 2010, the United States filed another Verified Complaint for Forfeiture In Rem to forfeit and condemn to the use and benefit of the United States an additional $111,967.50 in United States currency that was seized from Papanier’s bank accounts. The Complaints alleged that the subject funds were subject to forfeiture to the United States because they were involved in and were traceable to Structuring of Currency to Avoid a Reporting Requirement.
The charge to which Papanier pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for June 28, 2013.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden in the criminal case, and Jordan Anger of the U.S. Attorney’s Office Asset Forfeiture Unit in Newark in the civil action.
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Defense counsel: Ronald Warren Esq., Haddonfield, N.J.
Papanier, Nicholas Information
Orlando Woman Indicted for False Use of Seals of the U.S. Department of Homeland SecurityRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Maria V. Constantinou (40, Orlando) with two counts of false use of a seal of a department of the United States of America. If convicted, Constantinou faces a maximum penalty of 5 years in federal prison on each count.
According to the indictment, Constantinou falsely used the seal of the U.S. Department of Homeland Security on letters in 2009 and 2010 that purported to be from U.S. Citizenship and Immigration Services, a division of the U.S. Department of Homeland Security.
An indictment 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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Citizenship and Immigration Services Fraud Detection Division. It will be prosecuted by Assistant United States Attorney Sara C. Sweeney.
Orlando Man Sentenced to Life in Prison for Sex TraffickingRead the Press Release
An Orlando resident was sentenced today to serve life plus five years in prison for forcing multiple minor and adult victims to engage in prostitution, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Florida Robert E. O’Neill.
Weylin O. Rodriguez, 29, was sentenced by U.S. District Judge Mary S. Scriven in the Middle District of Florida. In addition to his prison term, Rodriguez was sentenced to serve lifetime supervised release.
On Nov. 2, 2012, Rodriguez was found guilty by a federal jury of sex trafficking of a minor by force, fraud and coercion; using a firearm in furtherance of a sex trafficking crime; transporting minors over state lines for the purpose of engaging in prostitution through coercion and enticement; and being a felon in possession of a firearmAccording to evidence presented at trial, in December 2010, Rodriguez met a 15-year-old minor in Ybor City, Fla. Rodriguez offered to give the minor a ride home, but instead of taking her home, he drove her to Orlando and forced her to engage in prostitution.
The investigation revealed that beginning on Thanksgiving Day 2010, Rodriguez held two other female victims for several months and forced them into prostitution. In approximately January 2011, Rodriguez transported the girls between Orlando and Charlotte, N.C. for the purpose of prostitution.
In addition to the minors, Rodriguez recruited at least two adult victims by promising them jobs as models. Once the girls met with Rodriguez, he held them against their will and forced them into prostitution.
This case was investigated by the FBI, the Orlando Metropolitan Bureau of Investigation, the Orange County, Fla., Sheriff's Office and the Charlotte-Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Stacie B. Harris of the U.S. Attorney’s Office for the Middle District of Florida and Trial Attorney Maureen Cain of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.