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8 May 2013
Former Citizens Bank Teller Sentenced for EmbezzlementRead the Press Release
BOSTON – A former bank teller was sentenced today for committing bank fraud in connection with her embezzlement of $377,000 from Citizens Bank.
Maria DaSilva, 54, of Smithfield, Rhode Island was sentenced by U.S. District Judge Richard Stearns to 27 months in prison, to be followed by 36 months of supervised release and ordered to pay $377,926 in restitution. In January 2013, DaSilva pleaded guilty to bank fraud.
From February 2008 through January 2012, while she was working as a bank teller at the North Attleboro branch of Citizens Bank, DaSilva embezzled over $375,000 from the accounts of three elderly bank customers by forging withdrawal slips on various accounts they held.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.
The case was investigated by the Lakeville Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Jeremy Sternberg of Ortiz’s Economic Crimes Unit.
Former Carteret High School Vice Principal Pleads Guilty to Possession of Child PornographyRead the Press Release
TRENTON, N.J. - A Rahway, N.J., man who was the vice principal at Carteret High School admitted today that he possessed child pornography, U.S. Attorney Paul J. Fishman announced.
Nicholas Sysock, 53, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an Information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:Between May 2008 and March 2011, Sysock purchased numerous DVDs that contained video recordings of child pornography from a company in Canada. During a search of Sysock’s residence in October 2012, federal investigators found these DVDs and also found printed images featuring naked children. Sysock was arrested the same day. At the time of his arrest, Sysock was the vice principal of Carteret High School.
The charge to which Sysock pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for Aug. 15, 2013.
U.S. Attorney Fishman praised inspectors with the U.S. Postal Inspection Service, under the direction of Inspector Maria L. Kelokates, for the investigation leading to today’s guilty plea.
The Government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Sysock Information
Felon Charged with Illegally Possessing Firearms, DrugsRead the Press Release
PITTSBURGH, Pa. - A Penn Hills man has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on May 7, named Montay King, 37, as the sole defendant.
According to the indictment, on or about Dec. 20, 2012, King, being a convicted felon, knowingly possessed a Yugoslavian, Model 59/66, 7.62x39mm caliber rifle, a Bulgarian, Model SLR-107FR, 7.62x39mm caliber rifle and a North American Arms, Model NAA22, .22 caliber revolver. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm. Additionally, on or about Dec. 20, 2012, King possessed with the intent to distribute a quantity of heroin, a quantity of cocaine, and a quantity of cocaine base, in the form commonly known as crack.
The law provides for a maximum total sentence of 70 years in prison, a fine of $3.25 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Allegheny County Adult Probation, the Penn Hills Police Department, and the Allegheny County Sheriff's Office Fugitive Task Force conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Indictment Unsealed as R.I. State Police, Federal Agents Arrest Seven; Search Ten Businesses and Residences; Seize Cash, Vehicles and Business Records in Alleged Cigarette Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – A federal grand jury indictment which names seven individuals and alleges a complex interstate contraband cigarette trafficking conspiracy responsible for the sale of more than $1.2 million dollars of contraband cigarettes in Rhode Island and the loss of more than one million dollars in tax revenue to the state was unsealed today in U.S. District Court in Providence. It is alleged that the cigarettes were bought in Virginia and sold in Rhode Island in convenience stores and other locations allegedly owned or operated by members of the conspiracy and others. The indictment also alleges that defendants engaged in other types of program fraud, including Social Security and food stamp fraud.
More than a dozen teams of federal and state law enforcement agents and officers early this morning executed federal arrest and search warrants, arresting seven individuals and searching ten locations where a significant quantity of contraband cigarettes, approximately $100,000 in cash, business records and four vehicles, all allegedly connected to the trafficking operation, were seized. The majority of cash and cigarettes seized were discovered stashed in sophisticated hides in several of the locations.
The indictment was announced by Peter F. Neronha, United States Attorney for the District of Rhode Island; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Richard DesLauriers, Special Agent in Charge of the FBI in New England; William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in New England; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General.
“United States Attorney Peter F. Neronha noted, “As alleged, today’s indictment has taken down a wide-ranging, complex interstate criminal enterprise. Members of this enterprise, often under the cloak of purportedly legitimate businesses, used any means possible to steal more than a million dollars from Rhode Island taxpayers. The means varied - cigarette smuggling and corresponding evasion of Rhode Island cigarette taxes, social security fraud, and food stamp fraud – but the result was the same.”
United States Attorney Neronha added,” I want to thank the many outstanding Rhode Island State Police Detectives and the federal agents who tirelessly investigated this matter for many, many months. Our work to defeat this type of fraud continues on many fronts. There is certainly more to come.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, “The coordinated effort between State, Federal and local law enforcement resulted in today's arrests. The Rhode Island State Police will continue to target any organized criminal group that profits by taking advantage of a system set up to help those who truly need it. I commend all law enforcement officers, prosecutors and linguists who participated in this long-term investigation.”
The indictment charges Wissam Khalil, 40, of Central Falls, a Providence convenience store owner; his brothers Bassam Khalil, 48, and Najd Khalil, 25, of Pawtucket; Abdullah Alnahas, 36, of Cranston, a Providence convenience store owner; Bassam Kiriaki, 45, a Pawtucket accountant; and Richard Larrain, 23, of Providence, an enlisted soldier in the U.S. Army Reserves, with allegedly participating in a conspiracy to possess, transport and distribute contraband cigarettes in Rhode Island.
A seventh defendant, Valeria Mendez (Khalil), 30, of Central Falls, wife of Wissam Khalil, is charged with conspiring to make and making false statements to a government official.
According to the indictment and/or information presented to the court, it is alleged that the conspiracy, which allegedly began as early as July 2011, included the creation of several “shell” corporations in Virginia and the rental of vacant retail storefronts in Virginia for the stated purpose of purchasing and reselling cigarettes in Virginia. The cigarette packages purchased included Virginia tax stamps, reflecting a Virginia tax of thirty-five cents per package.
According to information presented to the court, between July 2011 and continuing until this week, more than 30-thousand cartons (6 million) of cigarettes valued at more than $1.2 million dollars were purchased in Virginia and shipped to Rhode Island in a truck bearing Rhode Island War Veteran Plates. It is alleged that on numerous occasions the truck was driven by Richard Larrain, while wearing his United States Army uniform. It is alleged that he wore his Army uniform in an effort to gain favor and avoid law enforcement detection.
It is alleged that the cigarettes were distributed and sold in Rhode Island at or near full-retail price, including a tax payment of $3.50 per package. It is alleged that the lack of payment of the cigarette tax to the state of Rhode Island resulted in a loss of approximately $1.05 million dollars of tax revenue.
The indictment alleges that as part of the investigation, on March 30, 2013, Najd Khalil was stopped by Virginia State Police as he allegedly drove from Rhode Island to Virginia in a rental vehicle in which he allegedly concealed $30,000 in cash. It is alleged that the cash, seized by Virginia State Police, was to have been used to purchase cigarettes in Virginia for resale in Rhode Island. The indictment alleges that Bassam Kiriaki, Wissam Khalil and Richard Larrain conspired to create a false IRS Form 8300, “Report of Cash Payment over $10,000 Received in Trade of Business,” which they allegedly backdated to March 25, 2013, and provided to Virginia State Police in an effort to persuade Virginia State Police to return the $30,000.The indictment also alleges that between February 7 and February 26, 2013, Bassam and Wissam Khalil allegedly conspired to make false statements to a customer service representative of the U.S. Social Security Administration about the travel of their father. It is alleged that they conspired to make false statements that their father had not traveled outside the United States for a calendar month or thirty consecutive days since February 1, 2011. Information presented to the court alleges that the father, who collects Social Security disability benefits, had actually resided outside the United States.
It is also alleged in the indictment that Wissam Khalil and Valeria Mendez (Khalil), 31, of Central Falls, wife of Wissam Khalil, conspired to make false statements to a program specialist of the U.S. Department of Agriculture (USDA) Food and Nutrition Service, stating that Valeria Mendez was not related to Wissam Khalil. On March 7, 2012, Valeria Mendez allegedly completed a Supplemental Nutrition Assistance Program Application for a Providence convenience store identifying herself as the owner. She left blank questions about her relationship, if any, to the previous two owners, Wissam Khalil and his father. When questioned by a USDA program specialist, Valeria Mendez allegedly denied knowing Wissam Khalil and allegedly stated that she resided with her parents in Providence.
An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland
The matters charged in the indictment were investigated by the Rhode Island State Police, Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, United States Social Security Administration Office of Inspector General – Office of Investigations, Homeland Security Investigations, and the U. S. Department of Agriculture Office of Inspector General.
United States Attorney Peter F. Neronha also acknowledged and thanked the Virginia State Police, the Virginia Department of Attorney General, the Virginia Division of Taxation, the Rhode Island Department of Attorney General, the Rhode Island Division of Taxation – Excise Tax Compliance Unit, and the Cranston and Providence Police Departments for their assistance in this investigation.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Federal Guilty Plea from Roane Felon Who Illegally Possessed FirearmsRead the Press Release
Robert Starcher traded six stolen firearms for an SUV
CHARLESTON, W.Va. – A Roane County man who broke into a camper van and stole several firearms pleaded guilty today to being a felon in possession of firearms. Robert Allen Starcher, 29, of Spencer, W.Va., entered into a guilty plea in federal court in Charleston. On January 1, 2012, Starcher broke into a camper van that was located in Walton, Roane County, W.Va., and took four rifles and two shotguns that were inside. Following the burglary, Starcher took the firearms that he had stolen from the camper, along with other stolen goods, and traded the items for an SUV.
Starcher was prohibited from possessing firearms because of multiple prior felony convictions. Starcher was convicted in September 2007 in the Circuit Court of Ritchie County of transferring stolen goods. Starcher was also convicted in January 2007 in the Circuit Court of Calhoun County of grand larceny. Starcher also had prior felony convictions in Gilmer and Braxton counties from 2006.
Starcher faces up to 10 years in prison and a $250,000 fine when he is sentenced on August 15, 2013 by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Fayetteville Couple Sentenced for Obstructing the Tax LawsRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that today, United States District Judge Louise W. Flanagan sentenced Michael L. Thomas, 54, and his wife, Carolyn S. Thomas, 56, both of Fayetteville, North Carolina, for corruptly obstructing and impeding the due administration of the Internal Revenue laws, in violation of Title 26, United States Code, Section 7212(a). Michael Thomas was sentenced to 21 months imprisonment, followed by a one-year term of supervised release. Carolyn Thomas was sentenced to 18 months imprisonment, followed by a one-year term of supervised release. Jointly, the Thomases were ordered to pay restitution in the amount of $255,853.00.
The investigation revealed that in 2005, Michael and Carolyn Thomas began marketing purported “debt elimination” programs for a company based in Columbia, South Carolina, the Capital Consortium Group (CCG). From approximately 2004 to 2008, CCG perpetrated an $80 million Ponzi scheme. CCG’s three principals were indicted by a federal grand jury in South Carolina in 2008 and convicted at trial in 2009. The Thomases were among the most prominent and successful of CCG’s marketers, with upwards of 1,000 customers and high six-figure commissions in 2006 and 2007. While Michael and Carolyn Thomas were profiting from their association with CCG, they filed a false federal income tax return for tax year 2005 in which they omitted most, if not all, of their CCG commissions. Then the Thomases stopped filing tax returns altogether until March 2009, when they submitted a false amended 2005 return, a false 2006 return, and a false 2007 return. Each return significantly underreported the Thomases’ CCG commissions and claimed large tax refunds based on fraudulent Forms 1099-OID. The Thomases also filed bogus financial instruments with the IRS in purported payment of their tax debts, including false bonds with stated face values ranging from $300 million to $100 billion.
The investigation of this case was conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorney Adam F. Hulbig.
Everton Man Indicted for Money-laundering Scheme from Stolen Cooking OilRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Everton, Mo., man was indicted by a federal grand jury today for laundering the proceeds of a scheme to sell spent cooking oil that had been stolen from restaurants and for being a felon in possession of firearms.
John Arnold, 61, of Everton, was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment charges Arnold with three counts of money laundering. Arnold allegedly sold $237,036 of stolen spent cooking oil to recyclers from May 2010 through August 2011 and used the proceeds of that illegal activity to purchase several vehicles.
Spent cooking oil is the byproduct of cooking oil that restaurants used for frying foods. Restaurants have collection boxes on site in which their used cooking oil is stored. Many restaurants contract with various companies for the collection and removal of spent cooking oil. Arnold operated a spent cooking oil business under the name of J&A located on his property. This business would buy and sell spent cooking oil received from drivers who allegedly stole it from various restaurants, the indictment alleges.
According to the indictment, Arnold used $22,300 of those proceeds to purchase a 2009 Chevrolet Silverado in 2010, $18,100 to purchase a 2009 Chevrolet G3500 in 2010 and $45,100 to purchase a 2011 Chevrolet Silverado in 2011.
The indictment also charges Arnold with being a felon in possession of firearms. Arnold, who has prior felony convictions, was in possession of five firearms on Dec. 3, 2012. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Arnold allegedly was in possession of a Ruger .45-caliber revolver, a Mossberg .12-gauge shotgun, a Savage .22-caliber rifle with no serial number, a Savage .16-gauge shotgun with no serial number and an 8mm Mauser.
The indictment also contains forfeiture allegations, which would require Arnold to forfeit to the government the 2011 Chevrolet Silverado, $90,000 in cash, all of the firearms and 156 rounds of assorted ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation and the Missouri State Highway Patrol.Englishtown, N.J., Pharmacy Burgular Admits Conspiracy to Sell Stolen OxycodoneRead the Press Release
TRENTON, N.J. – A Brooklyn, N.Y., man admitted today to his involvement in a plot to burglarize a pharmacy in Englishtown, N.J., and sell stolen narcotics for cash, U.S. Attorney Paul J. Fishman announced.
James Zarbailov, 22, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone.
According to documents filed in this case and statements made in court:
The Union Hill-Supremo Pharmacy in Englishtown was burglarized shortly after 4:00 a.m. on June 17, 2012. Zarbailov and his fellow conspirators filled 17 garbage bags and two cardboard boxes with merchandise from the pharmacy, including approximately 1,988 dosage units of methylphenidate, 500 dosage units of hydromorphone, 300 dosage units of Opana (a trade name for oxymorphone) and 3,800 dosage units of oxycodone – all Schedule II controlled substances.
The stock lost by the pharmacy was valued at approximately $350,000.
During today’s proceeding, Zarbailov admitted that he stole the drugs, and that he did so knowing they would be sold for profit.
The conspiracy to distribute oxycodone charge to which Zarbailov pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Aug. 22, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and law enforcement officers from the Marlboro Township Police Department, under the direction of Police Chief Bruce E. Hall, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jennifer Davenport of the U.S. Attorney’s Office Criminal Division in Trenton.13-184
Defense counsel: Sanford Talkin Esq., New York
Zarbailov Information
Englishtown, N.J., Pharmacy Burgular Admits Conspiracy to Sell Stolen OxycodoneRead the Press Release
TRENTON, N.J. – A Brooklyn, N.Y., man admitted today to his involvement in a plot to burglarize a pharmacy in Englishtown, N.J., and sell stolen narcotics for cash, U.S. Attorney Paul J. Fishman announced.
James Zarbailov, 22, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute oxycodone.
According to documents filed in this case and statements made in court:
The Union Hill-Supremo Pharmacy in Englishtown was burglarized shortly after 4:00 a.m. on June 17, 2012. Zarbailov and his fellow conspirators filled 17 garbage bags and two cardboard boxes with merchandise from the pharmacy, including approximately 1,988 dosage units of methylphenidate, 500 dosage units of hydromorphone, 300 dosage units of Opana (a trade name for oxymorphone) and 3,800 dosage units of oxycodone – all Schedule II controlled substances.
The stock lost by the pharmacy was valued at approximately $350,000.
During today’s proceeding, Zarbailov admitted that he stole the drugs, and that he did so knowing they would be sold for profit.
The conspiracy to distribute oxycodone charge to which Zarbailov pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Aug. 22, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and law enforcement officers from the Marlboro Township Police Department, under the direction of Police Chief Bruce E. Hall, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jennifer Davenport of the U.S. Attorney’s Office Criminal Division in Trenton.13-184
Defense counsel: Sanford Talkin Esq., New York
Zarbailov Information
Eleven Indicted in Jackson Illegal Gambling RingRead the Press Release
Jackson, TN – Eleven individuals were named today in a six-count indictment as part of an illegal gambling ring operating at five locations in Jackson, announced U.S. Attorney Edward L. Stanton III.
According to the indictment unsealed today, the following 11 individuals have been charged with conspiracy for their roles in operating the gambling ring:Eddie C. Estes, 58, Jackson; Robert Cantrell, Sr. 72, Jackson; Lisa M. Sanders, 29, Jackson; Justin L. Sanders, age unknown, Jackson; Marcus Sturghill, Jr., 57, Jackson; Gregory A. Case, a/k/a Alan Case, 45, Jackson; Richard W. Stewart, 64, Jackson; Isaac L. Taylor, 72, Jackson; Bambi Seavers, 43, Trenton; Marjorie Williamson, 43, Jackson; Oliver Greene III, 55, Jackson.
The indictment alleges that between April 2011 through August 2012, Estes and Cantrell owned businesses around Jackson that contained hidden rooms where individuals could illegally gamble on electronic slot machines. Estes owned a building located at 107 South Royal Street in Jackson, TN. Lisa and Justin Sanders operated Breakers Billiards, a pool hall and bar at that address, and supervised the illegal gambling activities on site.
Cantrell owned a building at 303 Hale Street, Jackson, TN. Taylor operated Larry’s Sports Bar at that address and supervised the illegal gambling activities on site. Estes and Cantrell were partners in illegal gambling enterprises at three other locations. Sturghill supervised operations at 400 Airways Blvd., Jackson, TN; Case, Seavers, and Williamson managed operations at 36 Bond St., Jackson TN; and Stewart supervised operations at 98 Harts Bridge Rd., Jackson, TN.
Greene is alleged to have provided support by utilizing law enforcement contacts to run unauthorized searches of Tennessee Department of Transportation records, providing vehicle registration information, and providing information about tactics and procedures of local law enforcement. If convicted of conspiracy, each faces up to five years in prison and a fine of up to $250,000.
Estes, Cantrell, Lisa Sanders, Sturghill, Case, Stewart, Taylor, Seavers, and Greene were also charged with operating an illegal gambling business and with aiding and abetting the operation of an illegal gambling business. Each faces up to five years in prison and a $250,000 fine for each count.
Greene was additionally charged with three counts of being a felon in possession of a firearm. He is facing up to 10 years in prison and $250,000 in fines for each count.
This case was investigated by the FBI and the Jackson Police Department.# # # #
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Electronic Grifter Sentenced to Three Years for Multi-Million Dollar Fraud SchemeRead the Press Release
PHILADELPHIA – Paul Bauer, 55, of Dallas, TX, was sentenced today to 36 months in prison for a fraud conspiracy involving a scheme to steal approximately $4 million from a Venezuelan fishing company. Bauer pleaded guilty on March 8, 2012 to conspiracy to commit wire fraud and wire fraud. In addition to the prison term, U.S. District Court Judge Petrese Tucker ordered Bauer to pay restitution in the amount of $936,081, and ordered three years of supervised release.
The Venezuelan fishing company, Pinto-Spinelli Group (“PSG”), had arranged for funds to be deposited in a PSG bank account in Miami, Florida in order to pay a business debt. PSG believed that Bauer and other co-conspirators would conduct a currency exchange and then deposit American dollars in PSG’s Miami bank account but, instead, the defendants transferred $4,000,000 of PSG’s funds to a bank account at Citizens Bank in Reading, Pennsylvania, controlled by a Bauer associate. The multi-million dollar financial fraud had devastating consequences for the unsuspecting victim. Using international wire transfers, Bauer and his conspirators were able to take the funds from the lawful owner almost instantaneously. Bauer diverted the funds from Venezuela, through Panama and New York, to an innocuous appearing domestic bank account in Reading, Pennsylvania. When Citizens Bank became suspicious, Bauer directed his associates to fabricate a letter to mislead Citizens Bank into releasing the funds. Again, within hours of duping Citizens Bank into releasing the funds, Bauer had successfully diverted hundreds of thousands of dollars of stolen PSG funds to Texas, Florida, Puerto Rico, Germany and Spain.When Bauer realized that law enforcement agents were investigating the case, he attempted to cover up his crime and mislead investigators with Homeland Security Investigations. Bauer provided false exculpatory statements when interviewed and instructed his co-conspirators to provide false exculpatory information if questioned by the agents. Fortunately, the investigating agents were not deterred by Bauer’s attempts to mislead them and ultimately were able to return more than $3 million of the stolen funds to the victim.
Bauer’s co-conspirators pleaded guilty and were each sentenced last year to five years of probation and restitution of $936,081.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Frank Labor.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Eight Indicted in Two Million Dollar Staged Accident ConspiracyRead the Press Release
An indictment was presented this morning in the United States Courthouse for the Eastern District of New York in Central Islip, New York, charging eight defendants with mail fraud and conspiracy to commit mail fraud in connection with a scheme to defraud multiple insurance companies. Named as defendants in the indictment are Shawnn McFadden, Roshon Cooke, Daniel Osborne, Daniel Thompson, Allah Brown, Byron Dudley, Shaquana Basnight and Clifford Hawkins. According to the indictment, the defendants staged accidents and later falsely claimed that they sustained physical injuries as a result of the accidents.1 The defendants are scheduled to be arraigned later today before the Honorable A. Kathleen Tomlinson, United States Magistrate Judge for the Eastern District of New York, at the federal courthouse in Central Islip.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Keith E. Mike, Acting Inspector-in-Charge, United States Postal Inspection Service, and Raymond W. Kelly, Commissioner of the New York City Police Department.
As alleged in the 14 count indictment, beginning in March 2009 and continuing until July 2011, the defendants rented vehicles from U-Haul International, Inc. (“U-Haul”) and drove with one or more coconspirators as passengers to locations in Kings and Nassau Counties where they either intentionally struck or were struck intentionally by vehicles driven and occupied by other coconspirators. After the accidents, the defendants and coconspirators responded to locations throughout the metropolitan area ostensibly to receive medical treatment for injuries purportedly suffered during the staged accidents. The defendants and others later filed insurance claims with U-Haul’s insurer Republic Western Insurance CompanyWest, as well as Travelers Insurance Company, Allstate Insurance Company, GMAC Insurance, GEICO, and Progressive Insurance which sought over $2 million, and the defendants obtained over $1 million in payment, for claimed injuries and medical treatment.
“As alleged, these defendants played bumper cars with the lives of unsuspecting New Yorkers, all to enrich themselves through insurance fraud. Insurance fraud through staged accidents presents a danger not only to the public health but also exacts a high cost to the public in the cost of insurance,” stated United States Attorney Lynch. “We and our law enforcement partners will vigorously pursue and prosecute those who seek to profit by such fraud.” Ms. Lynch expressed her grateful appreciation to the New York City Police Department and the New York State Department of Financial Services for their assistance.
Acting Postal Inspector-in-Charge Mike stated, “The arrests of these individuals for their alleged participation in a scheme to defraud insurance companies is an example of the commitment of Postal Inspectors to eliminate crime wherever it exists – keeping the mail safe and secure for the American public.”
The indictment charges all eight defendants with mail fraud and conspiracy to commit mail fraud. If convicted, they each face a maximum sentence of 20 years’ imprisonment, forfeiture of over a million dollars, and a $250,000 fine.
The government’s case is being prosecuted by Assistant United States Attorney Charles P. Kelly.
The Defendants:
Name: SHAWN McFADDEN
Age: 31
Residence: Uniondale, NYName: ROSHON COOKE
Age: 35
Residence: Hempstead, NYName: DANIEL OSBORNE
Age: 28
Residence: Uniondale, NYName: DANIEL THOMPSON
Age: 32
Residence: Norfolk, VAName: ALLAH BROWN
Age: 27
Residence: Roosevelt, NYName: BYRON DUDLEY
Age: 28
Residence: Baldwin, NYName: SHAQUANA BASNIGHT
Age: 30
Residence: Hempstead, NYName: CLIFFORD HAWKINS
Age: 25
Residence: Baldwin, NY_____________________________
1 The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Eagle Butte Woman Pleads Guilty to Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Lena Flying By, age 46, of Eagle Butte, South Dakota appeared before U.S. District Judge Roberto A. Lange on May 7, 2013 and pled guilty to Count II of the Indictment that charged her with Possession with Intent to Distribute a Controlled Substance.
The maximum penalty upon conviction is not more than 5 years of imprisonment, a $250,000 fine, or both; a mandatory period of 2 years of supervised release and an additional year of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident wherein Cheyenne River law enforcement conducted a vehicle stop and learned from the driver that he had purchased marijuana from a residence in Eagle Butte. After obtaining a search warrant, law enforcement searched the residence and found marijuana along with other drug paraphernalia. Flying By admitted to aiding and abetting the selling of marijuana in her home.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Flying By was released on bond pending sentencing which has been set for July 22, 2013.
Eagle Butte Man Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Earl Grindstone, age 28, of Eagle Butte, South Dakota appeared before U.S. District Judge Roberto A. Lange on May 7, 2013 and pled guilty to Count I of the Indictment that charged him with Distribution of a Controlled Substance.
The maximum penalty upon conviction is not more than 5 years of imprisonment, a $250,000 fine, or both; a mandatory period of 2 years of supervised release and an additional year of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident wherein Cheyenne River law enforcement conducted a vehicle stop and learned from the driver that he had purchased marijuana from a residence in Eagle Butte. After obtaining a search warrant, law enforcement searched the residence and found marijuana along with other drug paraphernalia. Grindstone admitted to selling marijuana.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Grindstone was released on bond pending sentencing which has been set for July 22, 2013.
Drug User Sentenced to Prison for Two Years for Unlawful Possession of A FirearmRead the Press Release
A marijuana user who unlawfully possessed a gun with an obliterated serial number was sentenced today to two years in federal prison.
Geromey Gilliand, age 23, from Dubuque, Iowa, received the prison term after a January 31, 2013, guilty plea to one count of possession of a firearm by an illegal drug user.
At the plea hearing, Gilliand admitted he was an unlawful user of marijuana on November 28, 2012, when police officers arrested him in Dubuque on an outstanding arrest warrant. During a search incident to arrest, officers found marijuana and a loaded .22 caliber pistol in Gilliand’s backpack. The serial number on the gun had been scratched off.
Gilliand was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Gilliand was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gilliand is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Dubuque Police Department, the Dubuque Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-1023.
Deported Alien Charged with Re-entering U.S. IllegallyRead the Press Release
PITTSBURGH, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on charges of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The indictment, returned on May 7, named Sotero Gomez Alvarado, 35, formerly from Mexico, as the sole defendant.
According to indictment, on April 16, 2013, Alvarodo, an alien, who had been removed from the United States on Aug. 18, 2006, was found in Pittsburgh without having been given permission to re-enter the United States.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant Sentenced for Distributing Child Pornography and Destroying EvidenceRead the Press Release
Co-Defendant Pleads Guilty to Assisting with Destroying EvidenceEUGENE, Ore. – Timothy McCarty, 43, of Eugene, Oregon, was sentenced to 78 months in prison and 5 years of supervised release for distributing child pornography and destroying evidence. His co-defendant, Donna Giovenco, 46, also of Eugene, Oregon, pleaded guilty to misprision of a felony for her role in the destruction of evidence.
According to the government’s sentencing memorandum, McCarty distributed child pornography to an undercover agent in Canada. Homeland Security Investigations (HSI) began an investigation, and in an attempt to identify where McCarty was living, agents interviewed his co-defendant and former roommate, Giovenco. During the interview, agents disclosed to Giovenco that McCarty was suspected of distributing child pornography. Despite advising Giovenco to keep the investigation quiet, she promptly reached out to McCarty’s family and told them agents were looking for McCarty.
At Giovenco’s request, McCarty met with her to discuss the matter. Prior to arriving at the meeting, McCarty was seen in surveillance video dumping a bag in the dumpster. After the meeting, the video shows Giovenco driving McCarty to the dumpster were he retrieves the bag and smashes it. They then drive off. The bag contained McCarty’s hard drive, which was eventually buried in an unknown location and has not been recovered.
During her change of plea, Giovenco admitted that she assisted McCarty with disposing of a hard drive believed to contain images of child pornography and other evidence of distribution of child pornography.
Sentencing for Giovenco is set for July 29, 2013 at 11:00 a.m. before Chief U.S. District Judge Ann Aiken. The maximum sentence is three (3) years imprisonment, a fine of $250,000, one (1) year of supervised release, and a $100 fee assessment.
This investigation was conducted by the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Amy E. Potter.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s
Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Dawson Springs, Kentucky Felon Guilty of Possession of A Firearm and AmmunitionRead the Press Release
– Formerly convicted of two counts of 1st degree manslaughter
BOWLING GREEN, Ky. – A convicted felon residing in Dawson Springs, Kentucky pleaded guilty in United States District Court this week to possession of a firearm and possession of ammunition before Senior Judge Thomas B. Russell, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kevin Fitzgerald pleaded guilty to a two count federal superseding indictment, returned by a federal grand jury meeting in Bowling Green, Kentucky on February 13, 2013, that charged the convicted felon with possession of ammunition, including one hundred rounds of Federal brand 12-gauge shotgun ammunition, one hundred rounds of Federal brand 20-gauge shotgun ammunition, and 20 rounds of Federal brand .30-06 shotgun ammunition. Further, Fitzgerald pleaded guilty to possession of a Ranger, 12-gauge double-barreled shotgun and eight rounds of Winchester/Western brand 12-gauge shotgun ammunition.
According to an Affidavit attached to a felony criminal complaint, Dawson Springs, Kentucky police executed a search warrant on December 19, 2011, on a residence where Fitzgerald had been residing, and during the search, officers located the Ranger, 12 gauge double-barreled shotgun and ammunition in a bedroom. In court yesterday, Fitzgerald admitted to owning the shotgun as well as the Federal brand ammunition, located on October 21, 2012 in Warren County, Kentucky.
Fitzgerald is a convicted felon, having been convicted of two counts of manslaughter in the first degree, in case number 85-CR-036 in Carroll Circuit Court, Carrollton, Kentucky, on or about July 7, 1986. He was sentenced to serve 40 years in prison.
At sentencing, Fitzgerald faces no more than 20 years in prison, a fine of $500,000 and three years of supervised release. Sentencing before Senior Judge Russell is scheduled for August 6, 2013, at 11:45 am in Bowling Green.
This case is being prosecuted by Special Assistant United States Attorney Micah R. Reyner and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Dawson Springs, Kentucky Police Department.
Crystal Lake Man Indicted in Fraud SchemeRead the Press Release
ROCKFORD — A Crystal Lake, Ill. man was indicted yesterday on federal charges of mail fraud. MICHAEL S. MACKAY, 46, was charged with two counts of mail fraud for his role in a “secret shopper scheme,” where victims applied to work-at-home advertisements on the Internet believing they were being hired to work as a “secret shopper” or payment processor.
According to the indictment, from September 2011 to at least May 16, 2012, Mackay was involved in a scheme to defraud victims into falsely believing that they were hired as “secret shoppers” to evaluate and report their experiences with local businesses. After applying for work, victims received a letter with at least one counterfeit negotiable instrument, such as a counterfeit money order. The victims were instructed to deposit the counterfeit negotiable instrument in their financial institution, retain a certain percentage as payment for their services, go to the nearest Western Union and wire transfer the remaining proceeds as instructed. The victims were also instructed to report their experience, believing they were hired as secret shoppers to evaluate local businesses, via email to an email address contained in the letter. The participants in the scheme received the proceeds via the wire transfers before the victims learned that the money orders were counterfeit.
During the course of the scheme, Mackay received at least $2,000,000 in counterfeit negotiable instruments in packages sent to Crystal Lake from New York, Nigeria, and Ghana. Each package contained counterfeit money orders, in amounts ranging from $900 to $2,000 each, that appeared to be issued by the United States Postal Service, American Express, Capital One Bank, Citizens National Bank of Texas, First National Bank, and Navy Federal Credit Union. Mackay received email instructions attaching a “secret shopper” letter and United States Postal Service Express mailing labels. According to the indictment, Mackay then placed a “secret shopper” letter in a United States Postal Service express mailing envelope along with at least two counterfeit money orders to at least 665 victims throughout the United States. The indictment alleges that Mackay mailed over $1,000,000 in counterfeit money orders to the victims, receiving wire transfers of at least $10,000 from his victims and others involved in the scheme as payment for his role in the scheme before the victims learned that the negotiable instruments were counterfeit.
Each count of mail fraud carries a maximum penalty of 20 years in prison, and a $250,000 maximum fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater, a period of supervised release of up to 3 years following imprisonment, and restitution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution.
The indictment was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Pete Zegarac, Inspector-in-Charge of the Chicago Division of the United States Postal Inspection Service; and Gary J. Hartwig, Special Agent-in-Charge of Homeland Security Investigations in Chicago.
Members of the public are reminded that a criminal 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 of the defendant beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Indictment
Cromwell Man Charged with Possession of Child PornographyRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Colonel Danny R. Stebbins of the Connecticut State Police today announced that SAMUEL DiPROTO, 61, of Cromwell, was arrested yesterday and charged by federal criminal complaint with possession of child pornography.
The criminal complaint alleges that on March 12, 2013 and April 10, 2013, a Connecticut State Police detective assigned to the Computer Crimes Unit logged onto a publicly available Internet file sharing network and downloaded images and videos of child pornography from a computer connected to the network with an Internet Protocol (IP) address assigned to DiPROTO. During a search of DiPROTO’s residence yesterday, law enforcement officers seized several items, including computers, hard drives and thumb drives.
DiPROTO was arrested yesterday at his residence after the search.
DiPROTO appeared today before United States Magistrate Judge Donna F. Martinez in Hartford, who ordered DiPROTO detained pending a hearing that is scheduled for May 13.
If convicted of the charge of possession of child pornography, DiPROTO faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. The penalties in this matter are enhanced because it is alleged that the defendant possessed depictions of prepubescent minors and minors under the age of 12.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut State Police Computer Crimes Unit, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Couple Indicted for Sex Trafficking of A Minor and Production of Child PornographyRead the Press Release
HOUSTON – Arieal J. Bishop, 28, and David J. Golson, 26, have been ordered detained pending trial on charges of sex trafficking and producing child pornography, United States Attorney Kenneth Magidson announced today.
Bishop and Golson appeared in court in Houston today following their transportation from Arkansas where they were being held on similar federal charges. Their official cities of residence could not be immediately determined, but testimony in court today revealed one or both of them had been in Florida, Texas, Louisiana, Arkansas and New Mexico.
The indictment, returned April 17, 2013, charges both with one count of producing child pornography and one count of trafficking of a minor for commercial sex using force, fraud or coercion. Bishop is further charged with one count of transporting a minor for the purpose of engaging in prostitution or other criminal sexual activity. The alleged crimes occurred between April and September of 2011, according to the indictment.
Testimony at the detention hearing today indicated that Bishop filmed Golson engaging in sex with a 17-year-old girl within a short time after meeting them. Bishop allegedly posted advertisements for commercial sex for both herself and the victim in Houston as well as other cities in Texas and in Louisiana. The victim allegedly traveled with Bishop to Louisiana where they met up with Golson and continued to post ads and engage in commercial sex, according to the information presented in court. The victim gave money she earned from commercial sex to Bishop who gave it to Golson.
During this investigation, Bishop and Golson, along with Bishop’s sister, were arrested in Arkansas and charged with similar sex trafficking offenses involving a different minor victim.
Today, U.S. Magistrate Judge Stephen W. Smith indicated that Bishop and Golson were a flight risk and detained them pending further criminal proceedings. The court considered that neither has any legitimate source of income, residence or significant ties to Houston that would assure their appearance at trial.
For the child pornography charges, they each face a minimum of 15 and up to 30 years in federal prison and up to life for sex trafficking, upon conviction. Both charges also carry as possible punishment a maximum $250,000 fine. For the transportation charge, Bishop further faces a minimum of 10 years up to life imprisonment. Upon completion of any prison term imposed, they also face a possible lifetime term of supervised release and will be required to register as sex offenders.
This case was investigated by the Houston FBI Innocence Lost Task Force and is being prosecuted by Assistant United States Attorney Sherri L. Zack.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Cocaine and Firearm Convictions Result in 84 Month Sentence for Esgar Escamella EstrellaRead the Press Release
GREENEVILLE, Tenn. – Esgar Escamella Estrella, 29, of Morristown, Tenn., was sentenced on May 7, 2013, by the Honorable Leon Jordan, U.S. District Court Judge, to serve 84 months in federal prison for his convictions of participation in a cocaine conspiracy and possessing a firearm in furtherance of a drug trafficking offense in Morristown, Tenn.
In January 2012, Estrella supplied cocaine for a scheduled nine ounce transaction in Morristown. It was agreed that two ounces would be sold initially and if the cocaine was good quality, another seven ounce transaction would follow. Estrella brought a 9 mm pistol with him to the transaction. To complete the deal, Estrella, along with co-conspirators Isidoro Garcia, Martin Flores Perez and Jorge Olquin Vazquez, met an individual (who unbeknownst to them at the time was working on behalf of law enforcement) at a Morristown BP station. While Garcia personally dealt with the individual, Estrella went inside the store, leaving the firearm inside their vehicle. Law enforcement agents swiftly moved in and arrested Garcia, Perez and Vazquez. Estrella fled out the back door of the BP station and through the woods.
Later the same day, Estrella approached a residence located approximately one mile from the BP station and offered an occupant of the residence $100.00 to drive him elsewhere. Unbeknownst to Estrella, the person he solicited was an off duty police officer. Upon contacting dispatch and learning of the events, Estrella was identified and placed under arrest by the off-duty officer.
Estrella, Garcia, Perez and Vazquez are all in the United States illegally and face deportation from the United States after serving their respective sentences.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of Estrella and others include the Drug Enforcement Administration, Morristown Tennessee Police Department, Tennessee Highway Patrol Criminal Investigation Division and Third Judicial District Drug Task Force. Assistant U.S. Attorney Wayne Taylor represented the United States.
United States Attorney William C. Killian stated, “We are pleased with the sentence in this case and believe it reflects the seriousness of the crimes committed. Our prosecutors and the federal, state and local law enforcement agencies working together on this case did a tremendous job.”
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the High Intensity Drug Trafficking Areas (HIDTA) programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
Funding for some of the task forces involved in this investigation also came from the Appalachian High Intensity Drug Area Task Force (HIDTA) which was created in 1998, one of 32 areas in the nation that have been designated as HIDTAs. The HIDTA Program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy (ONDCP) to designate areas within the United States which exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs. The HIDTA Program provides additional federal resources to those areas to help eliminate or reduce drug trafficking and its harmful consequences.
Clinic Owners Sentenced for Roles in <br /> $13.3 Million Medicare Fraud SchemeRead the Press Release
Miami residents Raymond Arias, 42, and his wife, Emelitza Arias, 25, have been sentenced in Detroit to 100 months and 12 months in prison, respectively, for their participation in a $13.3 million Medicare fraud scheme.
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 Service’s Office of Inspector General’s (OIG) Chicago Regional Office, made the announcement after sentencing by U.S. District Paul D. Borman of the Eastern District of Michigan.
The Ariases were also sentenced to two years of supervised release following their respective prison terms. At sentencing on May 7, 2013, the court ordered Raymond Arias to pay $5.4 million in restitution. Today at sentencing, the court ordered Emelitza Arias to pay $531,883 in restitution, jointly and severally. The defendants agreed to forfeit approximately $40,000 seized by federal agents during the investigation.
The Ariases pleaded guilty on Oct. 17, 2012, to one count of conspiring to commit health care fraud. According to the plea documents, beginning in approximately 2009, Raymond Arias opened Elite Wellness where he submitted claims to Medicare for infusion therapy treatments that were never rendered. In three months, Elite Wellness submitted in excess of $10 million in claims to Medicare. Emelitza Arias joined the scheme by opening a second clinic, Carefirst Physical Therapy & Rehabilitation Center, which submitted approximately $940,000 in claims to Medicare for infusion therapy treatments that were never rendered.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case was prosecuted by Trial Attorney Catherine Dick of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Philip A. Ross of the Eastern District of Michigan.
Since their inception in March 2007, the Medicare Fraud Strike Force operations in nine districts have charged more than 1,480 individuals who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the 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.
Clinic Owners Sentenced for Roles in <br /> $13.3 Million Medicare Fraud SchemeRead the Press Release
Miami residents Raymond Arias, 42, and his wife, Emelitza Arias, 25, have been sentenced in Detroit to 100 months and 12 months in prison, respectively, for their participation in a $13.3 million Medicare fraud scheme.
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 Service’s Office of Inspector General’s (OIG) Chicago Regional Office, made the announcement after sentencing by U.S. District Paul D. Borman of the Eastern District of Michigan.
The Ariases were also sentenced to two years of supervised release following their respective prison terms. At sentencing on May 7, 2013, the court ordered Raymond Arias to pay $5.4 million in restitution. Today at sentencing, the court ordered Emelitza Arias to pay $531,883 in restitution, jointly and severally. The defendants agreed to forfeit approximately $40,000 seized by federal agents during the investigation.
The Ariases pleaded guilty on Oct. 17, 2012, to one count of conspiring to commit health care fraud. According to the plea documents, beginning in approximately 2009, Raymond Arias opened Elite Wellness where he submitted claims to Medicare for infusion therapy treatments that were never rendered. In three months, Elite Wellness submitted in excess of $10 million in claims to Medicare. Emelitza Arias joined the scheme by opening a second clinic, Carefirst Physical Therapy & Rehabilitation Center, which submitted approximately $940,000 in claims to Medicare for infusion therapy treatments that were never rendered.
The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case was prosecuted by Trial Attorney Catherine Dick of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Philip A. Ross of the Eastern District of Michigan.
Since their inception in March 2007, the Medicare Fraud Strike Force operations in nine districts have charged more than 1,480 individuals who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the 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.
Chili Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael V. Covello, 42, of Chili, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to distribution of child pornography and possession of child pornography. Because of a prior sexual abuse conviction, distribution of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum of 40 years. Possession of child pornography carries a mandatory minimum of 10 years in prison and a maximum of 20 years. The charges also include a fine of up to $250,000.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that in May and June of 2012, law enforcement officers discovered that the defendant was distributing images and videos of child pornography online. A search warrant was executed at the defendant's residence where officers recovered digital media, including a laptop, desktop computer and an iTouch, all of which contained child pornography. The images included prepubescent minors as depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Interim Special Agent in Charge Richard M. Frankel.
Sentencing is scheduled for September 17th, at 10:30 a.m. before Judge Larimer.
Canadian Man Sentenced for Transporting Kansas Girl for SexRead the Press Release
WICHITA, KAN. – A Canadian man has been sentenced to eight years in federal prison for picking up a 12-year-old girl in El Dorado, Kan., and taking her out of state for the purpose of having sex with her, U.S. Attorney Barry Grissom said today.
Stewart Kenneth Cody McGill, 21, Bewdley, Ontario, pleaded guilty to one count of travel with intent to engage in illicit sexual conduct. In his plea, he admitted he drove from Canada to El Dorado, Kan., to pick up a 12-year-old girl and have sex with her. Officers later found McGill and the girl parked on a country road in Michigan. They found text messages on the girl’s cell phone in which McGill indicated he intended to have sex with her and he was aware of her age.
Grissom commended the FBI, the El Dorado Police Department, the Michigan Department of State Police and Assistant U.S. Attorney Jason Hart for their work on the case.
Buffalo Man Sentenced for Stealing Social Security BenefitsRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Joseph Packer, Jr., 64, of Buffalo, N.Y., who was convicted of theft of public money, was sentenced by Chief U.S. District Judge William M. Skretny, to time served and two years supervised release. The defendant was ordered to wear and ankle bracelet for eight months and pay restitution in the amount of $160,101.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that in 2000, Packer failed to notify the Social Security Administration of his father's death. As a result, social security checks continued to be issued for the defendant's father until 2012. The benefits were deposited into a joint savings account shared by Packer and his father. The defendant withdrew the money and spent it. Packer stole a total of $160,101.
The plea was the culmination of an investigation on the part of Special Agents of the Social Security Administration, under the direction of Special Agent-in-Charge Edward J. Ryan, Social Security Administration, Office of Inspector General.
Bryan Man Heads to Federal Prison for Threats to TSURead the Press Release
HOUSTON – Dereon Tayronne Kelley, 22, of Bryan, has been ordered to prison following his convictions on all counts for communicating a bomb threat to an academic institution, United States Attorney Kenneth Magidson announced today. The verdict was returned Wednesday, April 10, 2013, after two days of trial and approximately one hour of deliberation.
Today, U.S. District Judge Lynn Hughes, who presided over the trial, handed Kelley a sentence of 33 months. He was further ordered to pay a $300 fine and pay $15,548.93 in restitution. Kelley will also be required to serve a term of three years of supervised release following completion of the prison term.
Kelley was accused of three counts of using the Internet to convey a false threat involving an explosive device in order to intimidate individuals at Texas State University (TSU).
According to evidence and testimony presented in court, Kelley used his cell phone and “hacked” into his former girlfriend’s Yahoo email account and sent three separate emails threatening to bomb the Admission’s Office at Texas State University. Kelley’s girlfriend was a former student at TSU.
The defense attempted to convince the jury that the crime was committed by some other person. However, this assertion was contradicted by the email header and cell phone service provider records.
Kelley will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The intensive investigation was initiated by the FBI’s Joint Terrorism Task Force (JTTF) - College Station Resident Agency, working together with the Texas A&M University Police Department. The JTTF is comprised of the FBI, Bryan Police Department, Texas A&M University Police Department, College Station Police Department, Brazos County Sheriff’s Office, the United States Secret Service and Waller County Sheriff’s Office.The case is being prosecuted by Assistant United States Attorney S. Mark McIntyre and Craig Feazel.
Brody Pleads Guilty to Wire Fraud, Money Laundering in Connection with Real Estatement Investment Scheme;Read the Press Release
Plea Includes 41-Month Sentencing Recommendation; $1,331,075.36 in Restitution to Victims
SALT LAKE CITY – Patrick Merrill Brody, age 47, of Salt Lake City, pleaded guilty to wire fraud and money laundering Wednesday in U.S. District Court in Salt Lake City in connection with a real estate investment fraud scheme.
The plea agreement includes a sentencing recommendation of 41 months and restitution of $1,331,075.36. Sentencing is scheduled for July 25, 2013 before U.S. District Judge Robert J. Shelby. Brody, who has been in custody since his arrest in October, will be released from custody pending sentencing with a variety of special conditions in place as a part of his supervised release.
Brody was charged with conspiracy, mail and mail fraud, and money laundering in a nine-count indictment returned by a federal grand jury in October 2012. The indictment alleged Brody and his wife, Laura Ann Roser, operated Art Intellect, Inc., a Utah corporation doing business as Mason Hill. The business had offices in Salt Lake City and Cape Coral, Florida. Mason Hill solicited and sold investments in real estate properties. It offered potential clients an option for investing in rental residential properties in several states. Mason Hill offered to sell investors rental properties at a low price, repair and rehabilitate them if necessary, find renters for the properties, collect rent, and maintain and manage the properties for the benefit of the investors.
The indictment alleged that once received, investors’ funds were comingled with other investors’ money, used to purchase properties for earlier investors, and used to pay operating expenses of Mason Hill as well as personal expenses for the defendants – among other things. In some instances, investors’ money was used to make Ponzi payments to earlier investors.
As a part of Wednesday plea agreement, Brody admitted that from April 2009 through early 2011 he made important business decisions for the company, hired and instructed employees, and directed the use of company proceeds.
Brody admitted that ultimately the company became a scheme that obtained money or property through fraudulent representations or promises. The fraudulent representations were made with the intent to induce clients to make investment payments to Mason Hill. Funds invested through the scheme were converted to personal use by Brody, which deprived the company of the capital necessary to complete real estate transactions as promised. Many of the clients, who invested in the scheme, did not receive any property or any other thing of value in return for their investment payments, and did not receive a refund of their payments.
As a part of the plea agreement executed Wednesday, federal prosecutors agreed to offer Roser a plea agreement that includes one misdemeanor count of failure to file a quarterly tax return. Federal prosecutors also agreed that they will not seek restitution from Roser on the charges in the indictment.The case is being prosecuted by the U.S. Attorney’s Office and investigated by special agents of the FBI and IRS Criminal Investigation.
Bridgeport Mayor Pleads Guilty to Mail Fraud and Obstruction of JusticeRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on May 8, 2013, Max R. Schauf, 56, of Bridgeport, Illinois, pled guilty to three counts of mail fraud and one count of obstruction of justice in United States District Court in Benton, Illinois.
Schauf, the Mayor of the City of Bridgeport, in Lawrence County, Illinois, was indicted along with Paul R. Kramer, of Vincennes, Indiana, on November 6, 2012, by a federal grand jury sitting in Benton, Illinois. The indictment charged Schauf with three counts of Mail Fraud and one count of Obstruction Of Justice. Each of the charges carries a maximum penalty of up to 20 years in prison, a $250,000 fine, and up to 3 years of supervised release.
“Theft, fraud, and obstruction by one public servant tarnish the image of all those dedicated public servants who serve their communities each day with honesty and integrity,” said United States Attorney Wigginton. “The plea in this case should be a reminder that my office, along with all of its federal and state law enforcement partners, will vigorously investigate and prosecute anyone, such as Schauf, who abuses the privilege and honor of their public service.”
At his plea, Schauf admitted that from July of 2008 until March of 2011, he had engaged in a scheme to defraud the City of Bridgeport, as well as its residents, by submitting false and fraudulent invoices, contracts and bills for services and equipment. Schauf also admitted that on November 10, 2011, he had obstructed justice by telling another person to give false and misleading information to the Federal Bureau of Investigation regarding the investigation into his (Schauf’s) fraudulent activities.
Sentencing for Schauf is scheduled for Thursday, August 8, 2013 at 11:00 a.m. at the United States District Court in Benton, Illinois.
Schauf’s co-defendant, Paul R. Kramer, pled guilty on March 20, 2013, to two counts of Making False Statements to the FBI and is scheduled to be sentenced in United States District Court on June 27, 2013. He faces up to 5 years of in prison, a $250,000 fine, and up to 3 years of supervised release on each count.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
Bloomington Felon Indicted for Possessing Three FirearmsRead the Press Release
MINNEAPOLIS—Recently in federal court in St. Paul, a 26-year-old felon from Bloomington was indicted for possessing firearms on two occasions. On May 6, 2013, William Daniel Sewell was charged with three counts of being a felon in possession of a firearm.
The indictment alleges that on October 12, 2012, Sewell possessed a nine-millimeter, semi-automatic pistol and a .40-caliber pistol. Police stopped Sewell’s vehicle on a traffic violation, and saw the .40-caliber pistol on the floor by the driver’s side seat. Then, when they searched the vehicle, they found the nine-millimeter pistol in the glove compartment. In addition, the indictment states that on March 29, 2013, Sewell again possessed a nine-millimeter, semi-automatic pistol. Because he is a felon, Sewell is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions include second-degree burglary in Anoka County (2010) and fleeing a police officer in Hennepin County (2010).
According to a law enforcement affidavit filed in the case, police responded to a reported fight inside a Minneapolis restaurant on March 29, 2013. At the scene, officers also checked out a nearby parking lot, where a group of men had gathered. As they approached the group, one of the men, later identified as Sewell, started to walk away. When police ordered him to stop, the man began to run, crossing traffic on Lyndale Avenue South. Officers pursued him and saw the pistol fall from his person onto the street.
If convicted, Sewell faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the Minneapolis Police Department, the Hennepin County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.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.
Blackstone Man Charged with Tax CrimesRead the Press Release
BOSTON – A self-employed mason was charged today with filing false tax returns and cashing nearly $3 million in checks at a check cashing service and not reporting the income.
John W. Lippolis, 53, of Blackstone, Mass., was indicted on two counts of filing false tax returns and impeding the IRS.
The indictment alleges that when Lippolis, a self-employed mason, was paid by check for his services, instead of depositing the funds into a bank account, he used check cashing services to cash the checks and then reported only a fraction to the IRS. The indictment further alleges that Lippolis operated his business in cash, paid workers in cash, and requested that customers not write checks to him for amounts exceeding $10,000, which would trigger a reporting requirement for financial institutions which cashed the checks. In 2006, Lippolis cashed business checks for more than $1 million, but reported only $45,000 in gross receipts on his federal income tax return for that year. In 2007, Lippolis cashed checks totaling more than $580,000, but reported only $47,813 in gross receipts for that tax year. In other years, Lippolis did not file any income tax returns at all.
The charges of filing false tax return carry a statutory maximum penalty of three years in prison, followed by one year of supervised release and a fine of $250,000, or twice the gain or loss, whichever is greater. The charge of impeding the IRS carries a statutory maximum penalty of three years in prison, followed by one year of supervised release and a fine of $250,000, or twice the gain or loss, whichever is greater.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant Attorney General Ignacia S. Moreno Announces Departure from Department of JusticeRead the Press Release
Ignacia S. Moreno, Assistant Attorney General of the Environment and Natural Resources Division, announced today that she will be leaving the Department of Justice on June 7, 2013.
“Over the last four years, Ignacia Moreno has been a powerful champion for the mission of the Environment and Natural Resources Division,” said Attorney General Eric Holder. “Under her leadership, the division has achieved extraordinary results on behalf of the American people – obtaining record-setting penalties against those responsible for the tragic Deepwater Horizon oil spill, successfully defending EPA’s historic greenhouse gas rules, negotiating landmark settlements with Indian tribes to resolve decades-long disputes over the management of trust resources and advancing the goals of environmental justice to protect America’s most vulnerable communities. Although I wish her all the best as she takes the next steps in her already remarkable career, I will miss Ignacia’s expertise and sound judgment. And I will always be grateful for her unwavering dedication to and outstanding service on behalf of the American people.”
“Serving in the administration of President Barack Obama and under the leadership of Attorney General Eric Holder has been a tremendous honor,” said Assistant Attorney General Moreno. “I am grateful for the outstanding work of the division’s talented and dedicated public servants and the steadfast support of the department’s leadership. Together, we have vigorously enforced and defended the nation’s environmental laws for the benefit of all Americans, promoted responsible stewardship of our nation’s natural resources, protected tribal sovereignty, treaty rights and natural resources, and found creative solutions to complex problems that had previously defied resolution. I believe that the division’s work will benefit the American people for years to come.”In 2009, President Obama nominated Moreno to serve as the Assistant Attorney General for the Environment and Natural Resources Division. She was confirmed by a unanimous vote of 93 to 0 in the U.S. Senate on Nov. 5, 2009. She had previously served in the Clinton administration from 1994 to 2001 as a special assistant, counsel and principal counsel to the Assistant Attorney General for the Environment and Natural Resources Division.
Holding Accountable Those Responsible for the Deepwater Horizon Oil Spill
On April 20, 2010, an explosion and fire destroyed the Deepwater Horizon offshore drilling rig in the Gulf of Mexico and triggered a massive oil spill. Eleven people aboard the rig tragically lost their lives. Since then, Assistant Attorney General Moreno’s top enforcement priority has been to bring to justice those responsible for the Deepwater Horizon oil spill. Under her leadership, in December 2010, the United States brought a civil action in the Eastern District of Louisiana against BP, Anadarko, MOEX and Transocean for civil penalties under the Clean Water Act and a declaration of liability for natural resources damages under the Oil Pollution Act. The first phase trial on liability has recently concluded in New Orleans. Other key milestones have been achieved in the litigation. On June 18, 2012, the court approved a settlement under which MOEX agreed to pay $70 million in civil penalties under the Clean Water Act and to spend $20 million on projects that will preserve and protect habitat and resources in the Gulf States. Under a settlement approved by the court on Feb. 19, 2013, Transocean will implement enhanced safety measures in its drilling operations and pay a $1 billion civil penalty—the largest environmental civil penalty in history.
Record-Setting Enforcement Results
During Assistant Attorney General Moreno’s tenure, the division has achieved record recoveries from parties responsible for violating the nation’s environmental laws. Since 2009, the division has secured more than $29 billion in corrective measures through court orders and settlements. The division also has obtained nearly $3.4 billion in civil and stipulated penalties, cost recoveries, natural resource damages, and other civil monetary relief, including more than $1.4 billion recovered for the Superfund. During that time period, the division prosecuted 192 criminal cases against 358 defendants, and obtained a total of 155 years in confinement and almost $256 million in criminal fines, restitution, community service funds and special assessments. The division’s enforcement efforts have achieved significant reductions in emissions and discharges of harmful pollutants into the nation’s air, land and water.
Landmark Decision on Greenhouse Gas Regulations
Under Assistant Attorney General Moreno’s leadership, the division successfully defended the Environmental Protection Agency’s (EPA) historic rulemakings under the Clean Air Act designed to reduce the emission of greenhouse gases that contribute to global climate change. In June 2012, in one of the most significant environmental decisions of the past decade, a unanimous panel of the D.C. Circuit Court in Coalition for Responsible Regulation v. EPA upheld EPA’s greenhouse gas regulations.
Successful Defense of the Administration’s Domestic Energy Agenda
Since 2009, the division has defended the administration’s efforts to safely and responsibly develop domestic energy sources. Under Assistant Attorney General Moreno’s leadership, the division has successfully defended dozens of challenges to permits and rights-of-way issued by federal land managers to promote the development of renewable energy projects on public lands, including solar, wind and electric power transmission projects located in California, Delaware, Oregon, Maine, Massachusetts, Nevada, Tennessee and Vermont.
Historic Results to Address Tribal Claims and to Protect Tribal Rights and Resources
Assistant Attorney General Moreno has been steadfast in strengthening the United States’ government-to-government relationship with Native American tribes and resolving longstanding disputes between the tribes and the United States. She has made it a priority to protect tribal sovereignty, safeguard tribal lands and resources, and honor tribal treaty rights through affirmative litigation. She led the development of the department’s Eagle Feathers Policy to clarify and expand the longstanding department practice of not prosecuting members of federally recognized tribes for possessing or using eagle feathers or other protected bird parts for religious or cultural purposes. In addition, Assistant Attorney General Moreno led the division’s efforts to resolve decades-long and costly litigation brought by more than 100 tribes against the United States relating to the government’s management of trust funds and trust resources. During her tenure, the United States has settled cases with 69 tribes, and has agreed to pay about $1.7 billion to resolve the tribes’ claims in a fair and reasonable manner.
Significant Progress in Advancing the Goals of Environmental Justice
During her tenure, Assistant Attorney General Moreno has been fully committed to achieving the goals of environmental justice. She has traveled throughout the United States to inner cities, Indian reservations, the Gulf States, the southwest border, Appalachia, and rural America, and has observed first-hand that many communities still suffer disproportionately from the burdens of pollution. The division has furthered the goals of environmental justice by ensuring that all communities enjoy the benefit of a fair and even-handed application of the law and have a meaningful opportunity for input into the consideration of appropriate remedies. Under Assistant Attorney General Moreno’s leadership, environmental justice considerations have become a fully integrated part of the resolution of the cases handled by the division.
Division Ranked One of the Best Places to Work in the Federal Government
During each year of Assistant Attorney General Moreno’s tenure, the Environment and Natural Resources Division has not only performed great work, it has won recognition as a great place to work. In the annual survey conducted by the Partnership for the Public Service, the division has been ranked one of the top-five best places to work in the entire federal government in each of the past three years—including two #1 rankings. The division also has scored among the top federal agency subcomponents for effective leadership, empowerment, fairness, teamwork and strategic management. Assistant Attorney General Moreno has made it a priority to promote diversity in the workplace and a better quality of life for all employees.
Personal Background
Assistant Attorney General Moreno was born in Cartagena, Colombia, and immigrated with her family to the United States as a child. After receiving her law degree from New York University in 1990, she joined the law firm of Hogan & Hartson in Washington, D.C., and worked in the firm’s environmental and litigation practice groups. In 1994, President Clinton appointed Moreno to the Department of Justice, where she led significant environmental enforcement initiatives and expanded the Environment and Natural Resources Division’s international program. In 2001, she joined the law firm of Spriggs & Hollingsworth in Washington, D.C., where she was of counsel and then a partner, specializing in environmental and mass tort litigation. In 2006, she assumed the position of counsel, corporate environmental programs at the General Electric Company, where she worked until her confirmation as Assistant Attorney General in 2009. Throughout her career, Assistant Attorney General Moreno has been strongly committed to public service, and has served pro bono as general counsel of the Hispanic National Bar Association and president of the Hispanic Bar Association of the District of Columbia. She also has held leadership positions with the American Bar Association, the District of Columbia Bar, the Washington Lawyers’ Committee for Civil Rights and Urban Affairs, and the Center for International Environmental Law.
Albuquerque Man Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Maximiliano Cordova, 19, of Albuquerque, N.M., was arrested by the FBI on May 6, 2013, on a criminal complaint alleging that Cordova distributed, received and possessed visual depictions of minors engaged in sexually explicit conduct. Cordova made his initial appearance in federal court yesterday and waived his right to a detention hearing. He will remain in federal custody pending trial, which has not yet been scheduled.
According to the criminal complaint, the investigation leading to Cordova’s arrest was initiated in mid Jan. 2013, after an FBI agent who was working in an undercover capacity in New Jersey signed into a publicly available peer-to-peer (P2P) file sharing network that was being used by individuals who were sharing child pornography images. The agent learned that one of the individuals sharing child pornography images on the P2P network was using an IP Address that was subscribed to Cordova’s residential address. On May 3, 2013, the FBI executed a search warrant at Cordova’s residence.
While executing the search warrant, FBI agents observed a laptop computer on Cordova’s bed that was running and displaying information for the P2P network that was used for sharing child pornography. The FBI seized the laptop computer, other computers and other computer-related media from Cordova’s residence. A preliminary examination of the laptop computer confirmed that it contained child pornography images.
If convicted of the offenses alleged in the criminal complaint, Cordova faces a sentence of not less than five years or more than 40 years in prison. He would also be required to register as a sex offender. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case was investigated by FBI and the New Mexico Regional Forensic Lab, and is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees. It 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 http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is 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.Alabama Man Indicted for Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - Clarence Donya Hicks was arraigned today on a federal indictment charging him with using stolen identities to file false federal income tax returns, the Justice Department and the Internal Revenue Service (IRS) announced. The indictment, which was returned by a federal grand jury on January 20, 2012, was unsealed following Hicks’s arrest in California after which he was ordered detained by a federal court and transferred to Alabama. In Alabama, Hicks faces charges of filing false claims, wire fraud, aggravated identity theft, and lying to federal agents.
According to the indictment, from 2009 until 2010, Hicks filed false tax returns using stolen identities. In 2010, he lied to federal agents about working with another individual to file tax returns and allowing that person to file tax returns using the same tax filing number that Hicks was using.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Hicks faces a potential maximum sentence of five years imprisonment for each false claims count, 20 years in prison for each wire fraud count, and a mandatory two-year sentence for each aggravated identity theft count. He also faces up to five years in prison for making false statements to federal agents and is subject to fines and mandatory restitution if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Justin Gelfand of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Administrator and Employee of Miami Home Health Companies Pleads Guilty for Role in $74 Million Health Care Fraud SchemeRead the Press Release
A Miami resident who was an administrator of a home health care company and was the employee of another home health care company pleaded guilty today for her participation in a $74 million home health Medicare fraud scheme, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Myriam Acevedo, 63, pleaded guilty before U.S. District Judge Marcia G. Cooke in the Southern District of Florida to one count of conspiracy to pay health care kickbacks and two counts of payment of kickbacks in connection with a federal health care benefit program.
Acevedo was an administrator of LTC Professional Consultants Inc. and an employee of Professional Home Care Solutions Inc., Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries. According to court documents, Acevedo and her co-conspirators operated LTC and Professional Home Care for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
According to court documents, Acevedo’s primary role in the scheme was to pay kickbacks and bribes to patient recruiters at LTC and Professional Home Care. Specifically, Acevedo conspired with patient recruiters and others for the purpose of billing the Medicare program for unnecessary home health care and therapy services. Acevedo and co-conspirators paid kickbacks and bribes to patient recruiters, who provided patients to LTC and Professional Home Care, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Acevedo and her co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which Acevedo knew was in violation of federal criminal laws.
From approximately September 2007 to June 2012, LTC and Professional Home Care submitted approximately $41 million in claims for home health services that were not medically necessary and/or not provided, and Medicare paid approximately $27 million on those claims.
At sentencing, scheduled for July 24, 2013, Acevedo faces a maximum penalty of five years in prison for each count.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
21 Alleged Bloods Gang Members and Associates Indicted for Federal Criminal Conspiracies Based in Howard CountyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted 18 alleged members of the Howard County Bloods gang on federal racketeering charges and charged three other defendants and two of the alleged Bloods gang members, with conspiracy to distribute drugs.
The indictment and a search warrant affidavit were unsealed today upon the arrests of 15 defendants and the execution of 25 search warrants. Five defendants were already in custody. Approximately 200 agents and officers assisted in today’s arrests and search warrants. The indictment was returned on May 7, 2013.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief William McMahon; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
“I am confident that ATF’s successful execution of more than 40 federal arrest and search warrants made a significant impact on violent crime in our Maryland communities,” said Special Agent in Charge Steven L. Gerido of the ATF - Baltimore Field Division. “ATF continues to work with its federal, state, and local law enforcement partners in order to bring violent criminals to justice.”
Howard County State’s Attorney Dario Broccolino stated, “Today’s indictments show this office, along with the Howard County Police Department, will use every tool at our disposal to continue to make Howard County safe. We are appreciative of the cooperation and leadership of our federal partners in this effort.”
“The indictment unsealed today shows that no community is immune to gang and drug activity, but it also demonstrates our commitment to ridding our neighborhoods of this criminal element,” said Howard County Police Chief William J. McMahon. “That’s why I have made our participation in this task force a priority and I am grateful to all our partners. Gang members who commit crimes should know that they will not be tolerated in Howard County or throughout Maryland.”
The indictment alleges that 18 of the defendants were members or associates of the Bloods, a national criminal street gang with members operating in and around Howard County, Maryland. The Bloods are divided into “sets,” each identified or affiliated with a certain street, neighborhood or area. Court documents allege that the defendants include members of more than one Blood “set.” Bloods are identified by: the color red, worn by Bloods members; a rivalry with the Crips gang; and particular gang symbols, including distinctive tattoos, such as a dog paw or five-pointed star and hand signs.
The indictment charges that from 2010 to the present, the Howard County Bloods gang members conspired to engage in criminal activity. The Bloods committed acts of violence both within the gang, to maintain discipline, and against rival gangs. Participation in criminal activity by a member, particularly violent acts directed at rival gangs or as directed by the gang leadership, increased the respect accorded to that member, resulted in that member maintaining or increasing his position in the gang, and could result in a promotion to a leadership position.
The indictment alleges that the defendants and other members and associates of the Bloods maintained and shared firearms for use in criminal activity by fellow gang members. The defendants and other Bloods members and associates allegedly distributed drugs, including marijuana and oxycodone (Percocet), codeine, and MDMA (Ecstasy), and used the proceeds of those drug transactions to help finance the gang’s illegal activities. The affidavit filed in support of search warrants executed today reveals telephone calls intercepted during the investigation in which the defendants discuss assaults, robberies, burglaries, home invasions, and drug trafficking that the defendants and other members allegedly committed in order to generate proceeds, and to obtain drugs to support the gang. Finally, the indictment alleges, and intercepted telephone calls indicate, that the Bloods provided financial support, such as reloadable debit cards, to incarcerated gang members.
The following defendants are charged in the racketeering conspiracy:
- Ryan Gladden, a/k/a "Fats," age 25, of Baltimore;
- Anthony Preston, a/k/a "40," and "Tone," age 26, of Randallstown, Maryland;
- Giovanni Wright, a/k/a "G," age 20, of Elkridge, Maryland;
- Heather Carter, a/k/a "hunnilynn," age 29, of Columbia, Maryland
- Kyle Austin, a/k/a "Fowdy," age 21, of Baltimore;
- James Bieryla, a/k/a "Brea," and "Braze," age 21, of Ellicott City, Maryland;
- Russell Canty, a/k/a "Rek," age 20, of Baltimore;
- Van Albert Carroll, Jr., a/k/a "Kool-Aid," age 19, of Ellicott City;
- Russell Chesson, a/k/a "Black," age 30, of Washington, D.C.;
- Corey Conaway, a/k/a "KC," age 30, of Columbia;
- Adrian Freeman, a/k/a "Sleep," age 23, of Laurel, Maryland;
- Kevin Jarrell, a/k/a "K-Dog," 24, of College Park, Maryland;
- Michael Dominique Johnson, a/k/a "Ace", age 19, of Columbia;
- Faisal Lelo Mapangala, a/k/a "Pistol," age 21, of Jessup, Maryland;
- Christopher Lloyd McGann, age 21, of Columbia;
- Kenneth Ragan-Armstrong, a/k/a "Keezy," age 22, of Savage, Maryland;
- David Jerome Robertson; age 22, of Columbia; and
- Bamba Omar Saine, age 22, of Columbia.
Three other defendants are charged in narcotics conspiracies:
- Wendy Farhat, age 38, of Gaithersburg, Maryland;
- Anthony Louis Jones, age 26, of Columbia; and
- Troy Fowler, age 23, of Laurel.
The indictment alleges that beginning in January 2013, Farhat, alleged Bloods member Anthony Preston, and Jones conspired to distribute marijuana, oxycodone, and Ecstasy. Jones is still being sought.
In a separate conspiracy, the indictment alleges that beginning in 2013, alleged Bloods member Giovanni Wright conspired with Troy Fowler to distribute marijuana, codeine and Ecstasy.
Each of the 18 defendants charged in the racketeering conspiracy faces a maximum sentence of 20 years in prison; and each of the five defendants charged in narcotics conspiracies faces a maximum sentence of 20 years in prison.
Initial appearances for many of the defendants are taking place today in federal court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rosenstein commended the 200 federal, state and local law enforcement officers led by the ATF, who worked together to execute the search and arrest warrants today.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who are prosecuting the case.
"straw Buyer" Admits Involvement in $5 Million San Diego-based Mortgage FraudRead the Press Release
United States Attorney Laura E. Duffy announced today that Timothy E. Shannahan pled guilty to conspiring to commit mortgage fraud by acting as a "straw buyer" in a $5 million mortgage fraud scheme.
In pleading guilty before Magistrate Judge Nita L. Stormes, Shannahan became the fourth person to admit conspiring with Kathryn Sylvester, the former CEO of Sylvester Financial, Inc. According to court records, Sylvester was responsible for recruiting straw buyers – who she directed to submit false mortgage loan applications in order to purchase properties throughout Southern California between 2005 and 2008.
In entering his plea, Shannahan admitted conspiring with Sylvester between January 2007 and May 9, 2008, to fraudulently induce lenders to fund mortgage loans. Among other things, Shannahan falsely claimed on a mortgage loan application that he earned $50,000 per month as the Vice President and Director of Marketing for Real Realty Solutions, in order to obtain mortgages for a residence located on Nautilus Street in La Jolla. In total, Shannahan admitted that the loans obtained in his name resulted in losses of $400,000 to $1 million. For her part, Sylvester - according to her indictment - is alleged to have played a role in approximately 80 fraudulent loans on 28 foreclosed properties resulting in losses in excess of $5 million. Her case is pending.
Other straw buyers who have entered guilty pleas to date include Claudia Montes, Roderick Michener and Tad Lent. Montes, a former notary public, pled guilty on April 12, 2013, to a two-count information charging her with conspiring with Sylvester to submit false loan applications and transferring proceeds from the fraudulent loans to Sylvester.
Michener pled guilty on April 4, 2013, to conspiring with Sylvester to commit bank fraud. In doing so, Michener allowed his co-conspirators to claim an ownership interest in his bank account in order to falsely inflate their assets on fraudulent mortgage loan applications. Michener also admitted transferring fraud proceeds to Sylvester. He is scheduled to be sentenced before District Court Judge Cathy A. Bencivengo on June 28, 2013.
Lent pled guilty on January 28, 2013 to conspiring with Sylvester to submit falsified loan applications to mortgage lenders by misrepresenting the amount of his assets. He is scheduled to be sentenced on September 16, 2013 before District Court Judge M. James Lorenz.
United States Attorney Duffy added, "The tireless efforts of our partners in the FBI has continued to result in successful prosecutions of persons who have tried to game the system by manipulating the mortgage loan industry. We will continue our joint efforts to deter further mortgage fraud crimes by pursuing such prosecutions with all available resources."
Shannahan is scheduled to appear before District Judge Lorenz on July 29, 2013 for sentencing.
DEFENDANT Case Number: 13CR1650-L Timothy E. Shannahan SUMMARY OF CHARGETitle 18, United States Code, Section 1349 (conspiracy to commit wire fraud)
DEFENDANT Case Number: 13CR1355-JLS Kathryn Sylvester Age: 43 SUMMARY OF CHARGES
Maximum penalty: 20 years of custody; $250,000 FineCount 1 Title 18, United States Code, Section 1349 (conspiracy to commit wire fraud and bank fraud)
Maximum penalty: 20-30 years of custody; $150,000-$250,000 FineCounts 2-11 Title 18, United States Code, Section 1343 (wire fraud)
Maximum penalty: 20 years of custody; $250,000 FineCounts 12-13 Title 18, United States Code, Section 1344 (bank fraud)
DEFENDANT Case Number: 13CR1313-JLS Claudia Montes Age: 41 SUMMARY OF CHARGES
Maximum penalty: 30 years of custody; $150,000 FineCount 1 Title 18, United States Code, Section 1349 (conspiracy to commit wire fraud)
Maximum penalty: 20 years of custody; $250,000 FineCount 2 Title 18, United States Code, Section 1343 (wire fraud)
DEFENDANT Case Number: 13CR1130-CAB Roderick Michener Age: 51 SUMMARY OF CHARGES
Maximum penalty: 20 years of custody; $250,000 FineCount 1 Title 18, United States Code, Section 1349 (conspiracy to commit wire fraud)
Maximum penalty: 20 years of custody; $250,000 FineCount 2 Title 18, United States Code, Section 1343 (wire fraud)
DEFENDANT Case Number: 12CR3744-L Tad A. Lent Age: 46 SUMMARY OF CHARGE
Maximum penalty: 20 years of custody; $250,000 FineTitle 18, United States Code, Section 1349 (conspiracy to commit wire fraud)
AGENCY
Maximum penalty: 20 years of custody; $250,000 FineFederal Bureau of Investigation
An indictment itself is not evidence that the defendants committed the crimes charged.
The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
7 May 2013
Wounded Knee Man Guilty of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Lyle Sutton, age 26, of Wounded Knee, appeared before U.S. Magistrate Judge Veronica L. Duffy on May 3, 2013, and pleaded guilty to Assault with a Dangerous Weapon. The Magistrate Judge is expected to recommend Sutton’s plea be accepted by the District Court. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
On December 28, 2012, Sutton struck a woman with a wooden bat, causing nasal and cheek fractures and severe bruising on her back. The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorneys Wayne A. Venhuizen and Sarah B. Collins.
A presentence investigation was ordered, and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Upcoming Orlando Fraud Summit to Arm Consumers with Information to Protect Themselves Against Fraud SchemesRead the Press Release
Federal Agencies Host Conference Open to the Public
Orlando, FL - United States Attorney Robert E. O'Neill announces that his office, in conjunction with federal, state, and local law enforcement, financial regulatory agencies and local service providers will host a fraud conference for the general public on Wednesday, May 15, 2013 (8:30 a.m. to 12:00 p.m.). The conference will be held at the Florida A & M University College of Law, located at 201 Beggs Avenue in downtown Orlando. Admission is free.Investor fraud, identity theft, and financial exploitation of the elderly are serious national problems. Our country's recent financial crisis has resulted in an unprecedented rise in investment fraud schemes, tax fraud, and other financial crimes, involving thousands of victims and staggering losses. The United States Attorney's Office and its partners are hosting this conference to educate the public about the fraudulent schemes that are being perpetrated in our region and to provide information on resources and strategies to protect citizens from becoming a victim of these types of crime.
Members of the public are invited to attend this conference. Admission is free and educational materials will be provided, but space is limited. To RSVP for the conference, please call (407) 648-7569.
This conference is part of the ongoing efforts of the Financial Fraud Enforcement Task Force which was created by President Obama in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. For more information on the task force, visit www.stopfraud.gov.
(Download Conference Flyer )
Union County, N.J., Man Arrested, Charged with Distributing Images of Chilld Sexual AbuseRead the Press Release
NEWARK, N.J. – Law enforcement officers arrested a Union County, N.J., man today after discovering alleged child pornography on his home computer during a search following an undercover investigation, U.S. Attorney Paul J. Fishman announced.
Andrew Johnson, 29, of Cranford, N.J., is charged by complaint with one count of distributing images of child sexual abuse over the Internet. Johnson appeared on the complaint this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and was released on a $100,000 bond.
According to the criminal complaint filed today:
On July 3, 2012, Dec. 7, 2012 and April 4, 2013, Johnson distributed videos and images depicting child sexual abuse, on the Internet via peer-to-peer file sharing software, which allowed others access to the material in shared directories. An undercover agent discovered and downloaded the images and videos, and the username and IP address of the sharer was traced back to Johnson’s residence.
Johnson was arrested after FBI special agents executed a search warrant today at his Cranford home.
The possession count carries a minimum penalty of five years in prison, and a maximum potential penalty of 20 years in prison and a $250,000 fine.U.S. Attorney Fishman credited special agents of the FBI, Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford, and the Cranford Police Department with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-182
Defense counsel: Assistant Federal Public Defender Lorraine Gauli-Rufo Esq., NewarkJohnson, Andrew Complaint
U.S. V. Mission Settlement Agency, Et Al.: Charging Documents and Forfeiture ComplaintRead the Press Release
U.S. v. Mission Settlement Agency et al. Indictment
U.S. v. Felix Lemberskiy Information
U.S. v. Zakhir Shirinov Information
U.S. v. Mission Settlement Agency, et al. Forfeiture ComplaintU.S. Citizen Sentenced Following Conviction on Charges Related to Marriage FraudRead the Press Release
United States Attorney Kenyen R. Brown announced today that Rodney Eugene Hill, a United States citizen and resident of Mobile, was sentenced to ten (10) months imprisonment following a jury verdict in which he and his co-defendant were found guilty of marriage fraud charges. During the course of the January trial, Hill’s Nigerian co-defendant, falsely testified that she was divorced from her Nigerian husband, Oluwagbenga Awoleye, at the time she married Hill. Awoleye and another U.S. citizen entered guilty pleas in a separate marriage fraud case in 2012. Hill and his co-defendant, Florence Nna, were married in Mobile County Probate Court on February 11, 2008, when she was approximately 8 months pregnant, with her third child by Awoleye. A number of witnesses at trial testified that Nna, Hill and Awoleye all worked together at the Salvation Army at the time of Hill and Nna’s marriage. Further testimony demonstrated that a variety of false information was submitted to United States Citizenship and Immigration Services (USCIS) by Hill and Nna in their efforts to obtain Nna’s “green card”. At trial an HSI Special Agent testified that when Hill was questioned during the investigation, he admitted that he and Nna never lived together, as they claimed in the documents submitted to USCIS.
In imposing the ten month custody sentence, United States District Court Judge Callie V.S. Granade took into account Hill’s criminal history, and referenced that if not for United States Citizens entering into marriages to aid others in avoiding the immigration laws, these offenses could not take place.
This case was investigated by Special Agent Daniel Evans of Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Vicki Davis and Michele O’Brien of the Southern District of Alabama.
Two U.S. Broker-dealer Employees and Venezuelan<br /> Government Official Charged <br /> for Massive International Bribery SchemeRead the Press Release
Two employees of a U.S. broker-dealer and a senior official in Venezuela’s state economic development bank have been charged in New York’s federal court for their alleged roles in a massive international bribery scheme.
Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Preet Bharara, the U.S. Attorney for the Southern District of New York; and George Venizelos, the Assistant Director-in-Charge of the New York Office of the FBI, made the announcement.
According to the criminal complaint unsealed today, Tomas Alberto Clarke Bethancourt (Clarke) and Jose Alejandro Hurtado – who were both employees of a U.S. broker-dealer (Broker-Dealer) – and Maria de los Angeles Gonzalez de Hernandez (Gonzalez) – who is a senior official in Venezuela’s state economic development bank, Banco de Desarrollo Económico y Social de Venezuela (BANDES) – are accused of conspiring to pay bribes to Gonzalez in exchange for her directing BANDES’s financial trading business to the Broker-Dealer. Gonzalez, 54, a resident of Caracas, Venezuela, was arrested in Miami on May 3, 2013. Clarke, 43, and Hurtado, 38, were also arrested Friday in Miami, where they reside. All three defendants were presented yesterday in federal court in Miami and remain in custody.
“Today’s announcement is a wake-up call to anyone in the financial services industry who thinks bribery is the way to get ahead,” said Acting Assistant Attorney General Raman. “The defendants in this case allegedly paid huge bribes so that foreign business would flow to their firm. Their return on investment now comes in the form of criminal charges carrying the prospect of prison time. We will not stand by while brokers or others try rig the system to line their pockets, and will continue to vigorously enforce the FCPA and money laundering statutes across all industries.”
“The defendants’ arrests lay bare a web of bribery and corruption in which employees of a U.S. broker-dealer allegedly generated tens of millions of dollars through transactions in order to fund kickbacks to a Venezuelan government official in exchange for her directing the Venezuelan economic development bank’s financial trading business to their employer,” said U.S. Attorney Bharara. “As alleged, the defendants also engaged in international money laundering to carry out their corrupt scheme. This Office, along with all of our federal partners, is committed to holding individuals who violate the Foreign Corrupt Practices Act to account.”
“As alleged, the defendants conspired to use Venezuela’s economic development bank as their personal piggy bank,” said FBI Assistant Director-in-Charge Venizelos. “Clarke and Hurtado reaped huge commissions from their trading of the bank’s assets, and kicked back significant sums to Gonzalez. The brazenness of the alleged scheme was exemplified in their buying bank bonds and selling them back on the same day.”
In a separate action, the U.S. Securities and Exchange Commission (SEC) announced civil charges against Clarke, Hurtado, and two others.
According to the allegations in the criminal complaint unsealed today, the forfeiture complaint, and other documents filed in Manhattan federal court, Clarke and Hurtado worked or were associated with the Broker-Dealer, based in New York City, principally through its Miami offices. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included Clarke and later Hurtado, and which offered fixed income trading services to institutional clients. One of the Broker-Dealer’s clients was BANDES. Gonzalez was an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed income investments for which the Broker-Dealer charged the bank a mark-up on purchases and a mark-down on sales.
From April 2009 through June 2010, Clarke, Hurtado, and Gonzalez participated in a bribery scheme in which Gonzalez directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer, including Clarke and Hurtado, devised a split with Gonzalez of the commissions paid by BANDES to the Broker-Dealer. Emails, account records, and other documents collected from the Broker-Dealer and other sources reveal that Gonzalez received a substantial share of the revenue generated by the Broker-Dealer for BANDES -related trades. Specifically, Gonzalez received monthly kickbacks from Broker-Dealer agents and employees that were frequently in six-figure amounts.
Some of the trades the Broker-Dealer executed for BANDES had no discernible business purpose. For instance, in January 2010, the Broker-Dealer executed at least two round-trip trades between itself and BANDES for the same bonds on the same day. In other words, the Broker-Dealer bought certain bonds from BANDES and then immediately sold those same bonds back to the bank. The result of the trades was that BANDES was left with the same bond holdings as before the trades, except that it had paid the Broker-Dealer approximately $10.5 million in mark-ups in the course of the two round-trip transactions.
Certain payments to Gonzalez directly from Hurtado and an entity controlled by Clarke totaled at least $3.6 million. When added together with other payments referenced in the Complaint, Gonzalez received a total of at least $5 million.
To further conceal the scheme, the kickbacks to Gonzalez were often paid using intermediary corporations and offshore accounts that she held in Switzerland, among other places. For instance, Clarke used an account he controlled in Switzerland to transfer funds to an account Gonzalez controlled in Switzerland. Gonzalez then transferred some of this money to an account she held in the United States. Additionally, Hurtado and his spouse received substantial compensation from the Broker-Dealer, portions of which Hurtado transferred to an account held by Gonzalez in Miami and to an account held by an associate of Gonzalez in Switzerland. Hurtado also sought and received reimbursement from Gonzalez for the payment of U.S. income taxes related to the money that he used to make kickback payments to Gonzalez.
In addition to the criminal complaint, on May 6, 2013, the government filed a civil forfeiture action in Manhattan federal court, seeking the forfeiture of assets held in a number of bank accounts associated with the scheme, including several bank accounts located in Switzerland. The forfeiture complaint also seeks the forfeiture of several properties in the Miami area related to Hurtado that were purchased with his proceeds from the scheme. As set forth in the forfeiture complaint, in addition to Gonzalez, another BANDES official, identified as CC-1 in the forfeiture complaint, also received kickback payments as part of the scheme. Also on May 6, 2013, the Court issued seizure warrants for multiple bank accounts and a restraining order relating to the Miami properties.
This ongoing investigation is being conducted by the FBI, with assistance from the SEC and the Justice Department’s Office of International Affairs. Assistant Chief James Koukios and Trial Attorneys Maria Gonzalez Calvet and Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant United States Attorneys Harry A. Chernoff and Jason H. Cowley of the Southern District of New York’s Securities and Commodities Fraud Task Force are in charge of the prosecution. Assistant United States Attorney Carolina Fornos is also responsible for the forfeiture aspects of the case.Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two U.S. Broker-Dealer Employees and Venezuelan Government Official Charged in Manhattan Federal Court for Massive International Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Mythili Raman, the Acting Assistant Attorney General for the Criminal Division of the United States Department of Justice (“DOJ”), and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), today announced the unsealing of a Criminal Complaint against TOMAS ALBERTO CLARKE BETHANCOURT (“CLARKE”) and JOSE ALEJANDRO HURTADO, who were both employees of a U.S. broker-dealer (the “Broker-Dealer”), and MARIA DE LOS ANGELES GONZALEZ DE HERNANDEZ (“GONZALEZ”), who is a senior official in Venezuela’s state economic development bank, Banco de Desarrollo Económico y Social de Venezuela (“BANDES”), arising from a conspiracy to pay bribes to GONZALEZ in exchange for her directing BANDES’s financial trading business to the Broker-Dealer. GONZALEZ, a resident of Caracas, Venezuela, was arrested in Miami, Florida, on Friday, May 3, 2013. CLARKE and HURTADO were also arrested Friday in Miami, where they reside. All three defendants were presented yesterday in federal court in Miami and remain in custody.
Manhattan U.S. Attorney Preet Bharara said: “The defendants’ arrests lay bare a web of bribery and corruption in which employees of a U.S. broker-dealer allegedly generated tens of millions of dollars through transactions in order to fund kickbacks to a Venezuelan government official in exchange for her directing the Venezuelan economic development bank’s financial trading business to their employer. As alleged, the defendants also engaged in international money laundering to carry out their corrupt scheme. This Office, along with all of our federal partners, is committed to holding individuals who violate the Foreign Corrupt Practices Act to account.”
Acting Assistant Attorney General Mythili Raman said: “Today’s announcement is a wake-up call to anyone in the financial services industry who thinks bribery is the way to get ahead. The defendants in this case allegedly paid huge bribes so that foreign business would flow to their firm. Their return on investment now comes in the form of criminal charges carrying the prospect of prison time. We will not stand by while brokers or others try rig the system to line their pockets, and will continue to vigorously enforce the FCPA and money laundering statutes across all industries.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, the defendants conspired to use Venezuela’s economic development bank as their personal piggy bank. Clarke and Hurtado reaped huge commissions from their trading of the bank’s assets, and kicked back significant sums to Gonzalez. The brazenness of the alleged scheme was exemplified in their buying bank bonds and selling them back on the same day.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced
civil charges against CLARKE, HURTADO, and two others.
According to the allegations in the Criminal Complaint unsealed today, the Forfeiture Complaint, and other documents filed in Manhattan federal court:
Background on the Broker-Dealer and BANDES
At all times relevant to the charges, CLARKE and HURTADO worked or were associated with the Broker-Dealer, based in New York City, principally through its Miami offices. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included CLARKE and later HURTADO, and which offered fixed income trading services to institutional clients. One of the Broker-Dealer’s clients was BANDES. The Venezuelan government had a majority ownership interest in BANDES and provided it with substantial funding. GONZALEZ is an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed income investments for which the Broker-Dealer charged the bank a mark-up on purchases and a mark-down on sales.
The Bribery Scheme
From April 2009 through June 2010, CLARKE, HURTADO, and GONZALEZ participated in a bribery scheme in which GONZALEZ directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with GONZALEZ. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer, including CLARKE and HURTADO, devised a split with GONZALEZ of the commissions paid by BANDES to the Broker-Dealer. Emails, account records, and other documents collected from the Broker-Dealer and other sources reveal that GONZALEZ received a substantial share of the revenue generated by the Broker-Dealer for BANDES-related trades. Specifically, GONZALEZ received monthly kickbacks from Broker-Dealer agents and employees that were frequently in six-figure amounts.
Some of the trades the Broker-Dealer executed for BANDES had no discernible business purpose. For instance, in January 2010, the Broker-Dealer executed at least two round-trip trades between itself and BANDES for the same bonds on the same day. In other words, the Broker-Dealer bought certain bonds from BANDES and then immediately sold those same bonds back to the bank. The result of the trades was that BANDES was left with the same bond holdings as before the trades, except that it had paid the Broker-Dealer approximately $10.5 million in mark-ups in the course of the two round-trip transactions.
Certain payments to GONZALEZ directly from HURTADO and an entity controlled by CLARKE totaled at least $3.6 million. When added together with other payments referenced in the Complaint, Gonzalez received a total of at least $5 million.
To further conceal the scheme, the kickbacks to GONZALEZ were often paid using intermediary corporations and offshore accounts that she held in Switzerland, among other places. For instance, CLARKE used an account he controlled in Switzerland to transfer funds to an account GONZALEZ controlled in Switzerland. GONZALEZ then transferred some of this money to an account she held in the United States. Additionally, HURTADO and his spouse received substantial compensation from the Broker-Dealer, portions of which HURTADO transferred to an account held by GONZALEZ in Miami and to an account held by an associate of GONZALEZ in Switzerland. HURTADO also sought and received reimbursement from GONZALEZ for the payment of U.S. income taxes related to the money that he used to make kickback payments to GONZALEZ.
In addition to the Criminal Complaint, on May 6, 2013, the Government filed a civil forfeiture action (the “Forfeiture Complaint”) in Manhattan federal court, seeking the forfeiture of assets held in a number of bank accounts associated with the scheme, including several bank accounts located in Switzerland. The Forfeiture Complaint also seeks the forfeiture of several properties in the Miami area related to HURTADO that were purchased with his proceeds from the scheme (the “Miami Properties”). As set forth in the Forfeiture Complaint, in addition to GONZALEZ, another BANDES official, identified as CC-1 in the Forfeiture Complaint, also received kickback payments as part of the scheme. Also on May 6, 2013, the Court issued seizure warrants for multiple bank accounts and a restraining order relating to the Miami Properties.
A chart containing the charges and maximum penalties for CLARKE, 43, HURTADO, 38, and GONZALEZ, 55, is attached.
Mr. Bharara praised DOJ’s Criminal Division and the FBI for their work in the investigation. He also thanked the SEC for its assistance in this case and noted that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Harry A. Chernoff and Jason H. Cowley, and Fraud Section Assistant Chief James Koukios and Trial Attorneys Maria Gonzalez Calvet and Aisling O’Shea are in charge of the prosecution. Assistant United States Attorney Carolina Fornos is also responsible for the forfeiture aspects of the case.
Additional information about the Justice Department’s FCPA enforcement efforts can be
found at www.justice.gov/criminal/fraud/fcpa.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Tomas Alberto Clarke et al Complaint
U.S. v. Cartagena International, et al. Civil Forfeiture Complaint 13 Civ 3028Two Men Indicted Following Seizure of Methamphetamine in Polk County Valued at $2.2 Million AUSA: Christopher MurrayRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Scott Eargood (21, Poinciana) and Santos Zamora-Escobar (27, Poinciana) with conspiring with each other and others to possess with intent to distribute and to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and fifty grams or more of actual methamphetamine (count one), and knowingly and intentionally, while aiding and abetting each other, possessing with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and fifty grams or more of actual methamphetamine (count two). The penalty for each count is a mandatory minimum term of imprisonment of ten years, up to life in federal prison.
According to court documents, on the evening of May 2, 2013, Polk County deputies initiated a traffic stop on Eargood's Jeep Cherokee on Highway 98 West, near southbound Highway 27, in Polk County. Eargood was the driver of the vehicle, and Zamora-Escobar was the passenger. Deputies searched the vehicle and found $3,494 and 229 grams of methamphetamine.
Information developed during the stop led to a search of a residence on Platte Lane in Poinciana. Inside the residence, officers found more than 110 pounds of methamphetamine. At a price of $20,000 per pound, the methamphetamine seized has an approximate value of $2.2 million.
According to court documents, Eargood rented the Poinciana house four months earlier, at Zamora-Escobar's direction. The house was rented for the purpose of facilitating methamphetamine trafficking in Polk County. It is further alleged that Zamora-Escobar, Eargood, and others stored large quantities of methamphetamine at the residence, for further distribution.
On May 3, 2013, as part of the ongoing investigation, agents and detectives executed a search warrant in Highlands County at a mobile home on East Oak Island Road in Avon Park. Law enforcement officers seized four ounces of methamphetamine, a long rifle, an AK-47-type rifle, and three handguns from the mobile home. Investigators also executed a search warrant at an apartment on 3rd Street Southeast in Winter Haven, Polk County. Numerous wire transfer documents were seized from that location.
On May 3, 2013, Eargood and Zamora-Escobar appeared in federal court in Tampa, before the Honorable Thomas B. McCoun, III, United States Magistrate Judge. Both men were ordered detained, pending further proceedings.
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 is being investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Polk County Sheriff's Office. It is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. It will be prosecuted by Assistant United States Attorney Christopher F. Murray.
Topeka Men Charged with Making, Possessing Pipe BombRead the Press Release
TOPEKA, KAN. – One Topeka man is charged in a federal indictment with making a pipe bomb and another is charged with possessing a pipe bomb, U.S. Attorney Barry Grissom said today.
Joseph E. Rogers, 35, Topeka, Kan., is charged with one count of making a destructive device. The device is described as a length of metal tubing inserted into a PVC pipe, which was then inserted into a cardboard tube. A length of pyrotechnic fuse was inserted through a hole in the wall of the pipes, and paper and lead end plugs were added along with a quantity of explosives identified as smokeless powder. The indictment says the device was capable of causing serious injury or death to persons near it if it exploded.
Kyle C. Roe, 21, Topeka, Kan., was charged with possessing the device.
The crimes are alleged to have occurred Nov. 13, 2012, in Shawnee County, Kan.
If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Men Found Guilty of Conspiring to Distribute Heroin in the Washington, D.C. Metropolitan Area-Defendants Conspired to Bring Shipments Here from New York-Read the Press Release
WASHINGTON – Three men were found guilty by a jury today of conspiring to distribute large quantities of heroin in the Washington, D.C., metropolitan area. They were among those arrested in 2012, following a nine-month investigation by law enforcement.
The verdicts were announced by U.S. Attorney Ronald C. Machen Jr., Karl C. Colder, Special Agent in Charge of the Washington Division of the Drug Enforcement Administration, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Thaxton Young, Jr., 46, of Columbia, Md.; Gerry Duane Burnett, 42, of Washington, D.C., and Jesse McLester Young, Jr., 42, of Mount Vernon, N.Y., were found guilty following a three-week trial in the U.S. District Court of the District of Columbia. In addition to the conspiracy charge, Burnett was found guilty of possession with intent to distribute heroin and marijuana.
The Honorable Beryl A. Howell set sentencing for Aug. 2, 2013. Each defendant faces a mandatory minimum prison sentence of 10 years and a potential life sentence.
Thaxton Young, Jr., Burnett and Jesse Young were indicted in 2012, following an investigation by the DEA into people suspected of acting as wholesale distributors of heroin in the metropolitan area. The investigation determined that from May 2011 through March 2012, the defendants and others maintained a drug trafficking organization that supplied distribution amounts of heroin to dealers in the District of Columbia and Maryland.
The investigation revealed that Thaxton Young, Jr. and another conspirator obtained large quantities of heroin from his cousin and co-defendant Jesse Young in the Bronx, New York area, which they transported back to the Washington, D.C. area for redistribution to wholesale traffickers, including Burnett.
Investigators seized over 170 grams of heroin during the investigation, along with over $7,000 in cash, along with jewelry valued at over $25,000.
“These defendants' commitment to flooding our community with narcotics was outmatched by law enforcement's commitment to protecting our neighborhoods,” said U.S. Attorney Machen. "Swift, coordinated action by DEA, MPD, and the U.S. Attorney’s Office kept these three men from poisoning our city with heroin. I want to commend the investigators and prosecutors who have worked so hard to make sure these drug dealers pay a steep price for their crimes. With these criminals behind bars, the District is today a safer and healthier place."
In announcing the verdicts, U.S. Attorney Machen, Special Agent in Charge Colder, and Chief Lanier commended the work of the agents, officers and investigators from the DEA and MPD who investigated the case. They also thanked the Maryland State Police, which provided assistance. They cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeremy Stoller and Regan Gibson, and Litigation Support Specialist Joshua Ellen.
Finally, they acknowledged the work of Assistant U.S. Attorneys Opher Shweiki, Steven B. Wasserman and Magdalena Acevedo of the Violent Crime and Narcotics Trafficking Section, who are prosecuting the case.
13-159Three Charged with Wire Fraud in Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, announce the arrests of defendants Anibangel Molina, 42, of New York, New York, Antonino Castro, 65, of Hialeah, Florida, and Betsy Aguiar Molina, 41, of Miami Lakes, Florida. Anibangel Molina and Antonino Castro made their initial appearances in federal court on May 6, 2013 before U.S. Magistrate Judge Alicia Otazo-Reyes. Anibangel Molina and Antonino Castro were released on bonds. Betsy Aguiar Molina had her initial appearance in federal court today and a bond hearing is scheduled before the duty magistrate court judge on May 13, 2013.
The criminal complaint, which was unsealed upon the defendants’ arrest on May 6, 2013, charges Anibangel Molina, Antonino Castro, and Betsy Aguiar Molina with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349. If convicted, the defendants face a possible statutory maximum sentence of up to 20 years in prison.
According to the complaint, Bancard Financial Services, located in Miami, purportedly offered investment opportunities since at least 2009 through trading in precious metals, oil, and foreign exchange currency and high interest checking accounts. Anibangel Molina was the President, Betsy Aguiar Molina was the Operations Manager, and Antonino Castro was the Officer Manager of Bancard Financial Services. The complaint alleges that the defendants made false representations, failed to pay dividends to investors since at least October 2012, and allocated investor money for their personal expenses instead of purchasing the commodities or paying the interest that was promised to investors. For example, in December 2011, Anibangel Molina wrote a check from Bancard’s bank account to purchase a $59,741 2012 Range Rover Evoque as a gift for Betsy Molina.
According to the complaint, the defendants executed the scheme by soliciting investors through television commercials that advertised classes in foreign exchange currency trading in Miami. After people attended these seminars, the defendants offered to invest customers’ money in foreign currency markets, commodities, or high interest checking accounts. From November 1, 2011 through November 2012, Anibangel and Betsy Molina received at least $4 million from more than 50 individual investors. None of the defendants or Bancard Financial Services are registered or licensed to trade in commodities, securities, currency, or as a broker of these articles.
In particular, the complaint alleges that Anibangel and Betsy Molina made false representations to investors by presenting some customers with a fraudulent Certificate of Bond Coverage that falsely claimed that “Lloyds Bank of London” indemnifies Bancard Financial Services LLC against any loss to any client up to $2,200,000. The complaint also alleges that Betsy Molina falsely told at least one customer that President Obama had created a law to guarantee investments. According to the complaint, numerous investors have contacted Anibangel Molina and Antonino Castro seeking to close out their investment accounts but these defendants have not returned their money.
If anyone has information about this fraud or has been a victim of the fraud, please call the toll-free hotline at 1-866-DHS-2-ICE or complete an online tip form at http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
Mr. Ferrer commended the efforts of HSI in the investigation and prosecution of this case. This case is being prosecuted by Assistant U.S. Attorney Michael Thakur.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
The United States Attorney’s Office and Department of Justice Reach A Settlement Agreement Today with the DeKalb County School District to Resolve Complaints of Religious HarassmentRead the Press Release
ATLANTA – The United States Attorney’s Office for the Northern District of Georgia and the Justice Department in Washington, D.C. have reached a settlement agreement with DeKalb County (GA) School District to resolve the Department’s investigation into allegations of religious and national origin harassment of a Sikh middle school student (“Student”).
Counsel for the Sikh Coalition filed the complaint with the Department on behalf of the Student, alleging that he had been repeatedly targeted with verbal and physical harassment because of his Sikh faith. The alleged harassment included claims that a peer had tried to cut the Student’s hair in violation of his religion; that the Student was called "Aladdin" because he wore a turban; that the Student had been told by a peer to “go back to his country”; and that the harassment culminated in a physical altercation with another student.
The complaint alleged that the school district failed to respond appropriately to numerous incidents, that disciplinary measures had been ineffective in ending the harassment, and that the Student feared continued harassment. The school district denied the allegations but agreed to work cooperatively with the Department to resolve the complaint and protect the Student. The Department has authority to investigate and resolve complaints of religious and national origin harassment through its enforcement of Title IV of the Civil Rights Act of 1964.
The settlement agreement, which will be in effect until the end of the 2014‑2015 school year, requires the school district to work with a consultant to develop and implement anti‑harassment training that addresses religious and national origin bias at both the Student’s middle and high school. The agreement also requires the district to immediately implement a safety plan for the Student that will ensure that the Student is safe when he is at school and should incidents of harassment occur, that the district responds quickly and effectively to address the incident. In order to prepare for the Student’s transition to high school, the agreement also requires the school district to meet with the student, his family, and administrators from his middle and high school to identify key school personnel who can support the Student should any incidents of harassment occur at his new school.
“Every student should be able to attend school without fear of being harassed and bullied because of his skin color or religious beliefs,” said United States Attorney Sally Quillian Yates. “I am encouraged by DeKalb County’s willingness to take immediate steps to ensure that students attending DeKalb County schools are free of this type of harassment and bullying.”
In Washington D.C., Jocelyn Samuel, Principal Deputy Assistant Attorney General for the Civil Rights Division said, “Students of all faiths must be protected from harassment and other forms of discrimination. We commend the district for stepping forward and putting student safety first. We are encouraged by the district’s resolve to support and provide anti-harassment training on issues facing students from the Sikh, Muslim, Arab American and South Asian communities.”
The enforcement of Title IV is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Assistant United States Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.