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7 May 2013
District Man Sentenced to Seven Years in Prison in Break-In of Elderly Woman’s Home-Defendant Punched Victim, Knocking Her Unconscious-Read the Press Release
WASHINGTON - Tyran Mcelrath, 18, of Washington, D.C., was sentenced today to seven years in prison on charges stemming from an attack he carried out against an elderly woman during a burglary last fall of the victim’s home in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Mcelrath pled guilty in February 2013 in the Superior Court of the District of Columbia to one count of first-degree burglary and one count of aggravated assault. He was sentenced by the Honorable Patricia A. Broderick. Following completion of his prison term, Mcelrath will be placed on five years of supervised release.
According to the government’s evidence, Mcelrath left his home on the morning of Nov. 7, 2012, and traveled to the 3500 block of McKinley Street NW, where the victim, an 81-year-old woman, resided. Mcelrath, who did not know the victim, went to the house intending to steal property, and broke into the home through a basement window. At the time, the victim was on the second floor of the house, listening to music.
Mcelrath took some tools from the basement and made his way up to the main floor of the house, where he rifled through cabinets and took change from the victim’s change purse. Mcelrath carried an Apple computer outside and hid it in bushes located at the base of the front porch steps. The victim then came downstairs to put on her shoes and discovered a stranger, later identified as Mcelrath, in the foyer.
She walked toward the front door and politely asked Mcelrath to leave. Mcelrath punched her repeatedly in the face with closed fists until she lost consciousness. Mcelrath then fled before police were called.
A civilian witness, who came upon the victim sometime after the assault, called police. Police found the victim disoriented and suffering from multiple bruises and broken teeth as a result of the beating. She was hospitalized for several days for severe facial contusions and head injuries and was traumatized by the attack. She was no longer able to live alone in the home. Her overall health declined in the ensuing months, and she recently died.
Police were able to identify Mcelrath as the perpetrator when they searched GPS records, which showed Mcelrath inside the victim’s home between 11:41 a.m. and 12:21 p.m., when the crimes occurred. Police used that same GPS information to locate Mcelrath in Southeast Washington the following day, and found that he matched the limited description that the victim was able to provide, and was wearing a mask that was the same as the one the victim had described. Police subsequently obtained surveillance video from Metro that showed Mcelrath as he traveled to and from the crime scene.
In announcing the sentence, U.S. Attorney Machen praised the work of the Metropolitan Police Department officers and detectives who investigated the case. He also commended the efforts of Victim Witness Program Specialist Jennifer Clark, for her work with the victim in this case, and Assistant U.S. Attorneys Ann Carroll and Jonathan Kravis, who investigated and indicted the case.
13-158Department of Justice Reaches Settlement to Resolve Complaints of Religious Harassment at Charter School in DeKalb County, GeorgiaRead the Press Release
The Justice Department reached a settlement agreement today 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. Counsel for the Sikh Coalition filed the complaint with the department, alleging that the student had been repeatedly targeted with verbal and physical harassment because of his Sikh faith. 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.
Following an inquiry into the student-specific complaints, the department notified the district of its concerns that the district had failed to respond promptly and appropriately to the Sikh Coalition’s allegations of harassment, including allegations that the student was called “Aladdin” because he wore a turban and was told by a fellow student to “go back to his country.” The department also raised concerns that the district had not investigated witness statements that the student had been called a “terrorist” and that there was a history of fellow students targeting him because of his turban. The department also found that the disciplinary measures the district did take had not been effective in ending the harassment, and that the student feared continued harassment.
The district worked cooperatively with the department to resolve the complaint and ensure greater protections for the student. The settlement agreement, which will be in effect until the end of the 2014-2015 school year, requires the district to: work with a consultant to develop and implement anti-harassment training at the student’s middle and high school; immediately implement a safety plan to ensure that the student is safe at school and, should incidents of harassment occur, that the district responds quickly and effectively; and meet with the student, his family, and administrators from his middle school and the high school where he will enroll, to identify key school personnel who can support the student should any future incidents of harassment occur. The department has opened a separate and ongoing inquiry into whether the district’s anti-harassment policies meet federal standards, whether its policies are consistently implemented, and whether employees are adequately trained to implement those policies.
“Students of all faiths must be protected from harassment and other forms of discrimination,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “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.”
“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.”
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 .
Related Materials:
DeKalb Settlement Agreement
Delaware Felon Will Spend 25 Years in Prison for Illegally Possessing Heroin, Loaded GunRead the Press Release
PITTSBURGH, Pa. - A resident of Wilmington, Del., was sentenced in federal court for violating federal narcotics trafficking and firearm laws, United States Attorney David J. Hickton announced today.
Keenan Black, 32, was sentenced to serve 25 years in prison followed by six years of supervised release by United States District Judge Arthur J. Schwab. Black was convicted at the conclusion of a non-jury trial on Oct. 29, 2012, of possessing heroin with intent to distribute, of possessing a firearm in furtherance of a drug trafficking crime, and of being a convicted felon in possession of a firearm.
The testimony at trial established that on Jan. 6, 2011, Pittsburgh Police narcotics detectives caught Black when he had a loaded pistol in a holster on his hip and 749 stamp bags of heroin in the sleeve of his jacket. Black had previously been convicted of committing four felony crimes in four prior cases in Delaware.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Police Department, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the convictions and sentence in this case.
Deland Man Sentenced to More Than 12 Years on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - Chief U.S. District Judge Anne C. Conway today sentenced Orlando Ismael Muniz (58, Deland) to 12 years and 7 months in federal prison for the receipt of child pornography. As part of this sentence, he was ordered to serve a 20-year term of supervised release following his release from prison. The court also ordered Muniz to forfeit his computer equipment and register as a sex offender. Muniz pleaded guilty on April 27, 2012.According to court documents, Muniz downloaded and collected thousands of images of child pornography using a peer-to-peer shared directory on his computer. Law enforcement officers conducted a forensic examination of Muniz’s computer and found 17,847 images and 149 movies depicting the sexual exploitation and abuse of prepubescent children.
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Volusia County Sheriff's Office. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
It is another case 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 (CEOS), 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Deirdre M. Daly to Become Acting U.S. AttorneyRead the Press Release
New Haven, Conn. – Deirdre M. Daly will become Acting United States Attorney for the District of Connecticut when U.S. Attorney David B. Fein leaves the office on May 13, 2013.
Ms. Daly has served as First Assistant United States Attorney in Connecticut since July 2010. She led the prosecution of Hector Natal, who was found guilty last month after a four-week trial of committing the March 2011 New Haven arson that resulted in the deaths of two women and an 8-year-old boy.
“During her 15 years of Department of Justice service and another 13 years engaged in the private practice of law, Deirdre Daly has demonstrated great leadership, integrity and judgment,” stated U.S. Attorney Fein. “I’m proud to have served with her as a colleague, and the citizens of Connecticut are fortunate that Deirdre will lead this excellent United States Attorney’s Office.”
From 1985 to 1997, Ms. Daly was an Assistant United States Attorney in the Southern District of New York, where she prosecuted cases ranging from racketeering, murder, narcotics and money laundering to fraud, corruption and police brutality, and served as the Assistant-In-Charge of White Plains Office for three years. After leaving the SDNY, Ms. Daly was a partner at Daly & Pavlis LLC, a Connecticut law firm with a practice focused on corporate and commercial litigation, white-collar criminal investigations, SEC enforcement actions and corporate internal investigations and monitoring. For over 10 years, she served as a monitor for Con Edison, Inc. conducting internal investigations of environmental, health and safety violations.
Ms. Daly served as a law clerk for the Honorable Lloyd F. MacMahon, U.S. District Judge for the Southern District of New York from 1984 to 1985. She is a graduate of Dartmouth College and Georgetown University Law Center.
Ms. Daly, 53, has lived in Connecticut for most of her life. She and her husband, Alfred Pavlis, have three sons.
The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The Office employs approximately 64 Assistant United States Attorneys, 45 staff members and 13 contractors at offices in New Haven, Hartford and Bridgeport.
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(203) 821-3722 [email protected]Criminal Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 34-year-old Mexican national was indicted for entering the United States illegally after being deported as a criminal. Eduardo Asuncion Gallardo-Gutierrez was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on April 10, 2013, Gallardo-Gutierrez, also known as Carlos Meza, was found in the U.S. after having been deported to Mexico in 2004, following a 1998 Iowa conviction for burglary in the third degree. On April 10, 2013, ICE-Homeland Security Investigation officers encountered Gallardo-Gutierrez while they were executing search warrants in Rochester on another matter.
If convicted of the federal charges now levied against him, Gallardo-Gutierrez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge.This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.
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.
Consultant for the Florida Department of Transportation Sentenced for Accepting A BribeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce today’s sentencing of defendant Ron Capobianco, Jr., 40, of Pompano Beach, FL, on charges of bribery in connection with programs receiving federal funds, in violation of Title 18, United States Code, Section 666. U.S. District Judge Robert N. Scola, Jr. sentenced Capobianco to twelve months plus one day in prison.
According to documents previously filed with the court, Capobianco, Jr. worked as a construction engineering and inspection consultant at Metric Engineering, Inc. (Metric), which specialized in the transportation industry. The Florida Department of Transportation (FDOT) contracted with Metric to provide services, including designing, inspecting, and troubleshooting the construction of roads, signs, and traffic signals. Capobianco, Jr. was assigned as the FDOT District 4 Signalization and Lighting Liaison. In this capacity, he acted as FDOT’s project manager for various signalization and lighting projects. Capobianco, Jr. had a team of employees that assisted him in supervising and inspecting contractors performing FDOT work. Because of his position and expertise, Capobianco, Jr. was consulted as an FDOT expert on certain aspects of signalization and lighting construction, including the use of video detection cameras for traffic signalization and control.
According to the documents previously filed with the court, around 2009, FDOT began a road construction project along Highway 1 in the Florida Keys (the Marathon Key project), which was designed to improve traffic flow. Capobianco Jr. agreed to accept a bribe from a subcontractor working on this project. Around May 2009, an agent of the subcontractor offered to pay a bribe to Capobianco, Jr., if the subcontractor could receive at least $25,000 for the installation of the video detection equipment.
Capobianco, Jr. agreed to the subcontractor’s $25,000 estimate for the installation of the video detection devices, thus enabling the subcontractor to make a significant profit. The subcontractor’s estimate was approved and subsequently paid by the State of Florida after the installation of the video detection equipment. Thereafter, Capobianco, Jr. met with an agent of the subcontractor in Plantation, Florida and was paid $4,000 in cash for his assistance to the subcontractor on the Marathon Key project.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan.
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.
Colonial Heights Man Pleads Guilty to Receipt of Child Pornography and Enticement of A ChildRead the Press Release
RICHMOND, Va. – Robert Kropp, 26, of Colonial Heights, Virginia, pleaded guilty today to one count of using a means or facility of interstate commerce to coerce or entice a minor to engage in sexual activity, and one count of receipt of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and JeffreyC. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Kropp was faces a mandatory minimum sentence of ten years, up to life imprisonment, when he is sentenced on August 2, 2013.In a statement of facts filed with his plea agreement, Kropp admitted that in March 2013, he began communicating with a woman who had advertised herself on the internet as a 19 year old prostitute. Kropp asked the woman if she knew of anyone younger with whom he could engage in sexual activity. The woman’s account was later taken over by law enforcement, who continued to communicate with Kropp while posing as the female. During these conversations, Kropp indicated a desire to meet with an individual that he believed to be the prostitute’s 13 year old cousin to engage in sexual activity. Kropp then began communicating via text message with the purported 13 year old year, including sending sexually suggestive messages and images to the minor. On March 7, 2013, Kropp arrived at a hotel in Richmond where he believed he would be meeting the 13 year old to engage in sexual activity. Kropp was subsequently arrested, and in an interview with law enforcement, admitted to downloading and viewing child pornography as well.
This case was investigated by the Federal Bureau of Investigation with assistance from the Henrico County Police Department. Assistant United States Attorney Jamie Mickelson is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Clean Nurse Charged with Distribution and Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Willie G. Reid, 46, of Olean, N.Y., was arrested and charged by criminal complaint with distribution and possession of child pornography. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a fine of $250,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that the defendant is a Registered Nurse at Olean General Hospital. As a nurse, Reid’s duties included working in the Pediatric Unit. According to the complaint, between February 9, 2012 and February 8, 2013, the defendant downloaded videos and images of child pornography using a peer-to-peer file sharing program. Some of the videos and images included pre-pubescent children and depictions of violence.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Reid is being detained pending a detention hearing on May 8, 2013 at 2:00 p.m.
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 arrest is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Special Agent in Charge and the Cattaraugus County Sheriff’s Department, under the direction of Sheriff Timothy Whitcomb.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Citrus County Woman Sentenced to More Than 2 Years in Federal Prison for Making False Statements to Federal AgentsRead the Press Release
Tampa, FL - U.S. District Judge Elizabeth A. Kovachevich sentenced Jaclyn Fleites (33, Crystal River) yesterday to 27 months in federal prison for making false statements to a federal agent. Fleites pleaded guilty on November 8, 2012. According to court documents, Fleites lied to a federal agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in connection with an investigation into multiple armed robberies committed by Anthony Calderon and Abelardo Coimbre. The five robberies were committed in Citrus County in January and February 2011. Fleites was the girlfriend of Calderon during that time. She told the agent that she had never seen Calderon enter a store to commit a robbery and had never seen Calderon with a firearm, even though she knew that these statements were false.
On January 28, 2011, Fleites was the getaway driver for the armed robbery of Inverness Liquor, which was committed by Coimbre. On February 18, 2011, she acted as the getaway driver for the armed robbery of Inverness Food Mart, which was committed by Calderon. Her misstatements obstructed the investigation and prosecution of the armed robberies committed by Calderon and Coimbre.
Anthony Calderon and Abelardo Coimbre previously pleaded guilty and were sentenced for their roles in this case. Calderon was sentenced to 32 years in federal prison. Coimbre was sentenced to 24 years and four months in federal prison.
This case was investigated by ATF and the Citrus County Sheriff's Office. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Citizen of Mexico Who Illegally Reentered U.S. After Deportation Is SentencedRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that ROMAN PONCE, 36, a citizen of Mexico last residing in Norwich, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 10 months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, PONCE was deported from the U.S. to his native Mexico in 1999 after sustaining domestic assault, assault and disorderly conduct convictions in Rhode Island. PONCE illegally reentered the U.S. and, in 2001, was convicted in the U.S. District Court in Rhode Island of illegal reentry. He was sentenced to six months of imprisonment and deported to Mexico in 2002.
On September 30, 2012, PONCE was arrested by the Norwich Police Department for disorderly conduct.
PONCE has been detained in federal custody since February 6, 2013. On April 16, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
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(203) 821-3722 [email protected]Canadian Trucker Sentenced to 12 Years in Prison for Drug ConspiracyRead the Press Release
A Canadian truck driver who was identified as a drug smuggler for a criminal group related to the Hells Angels was sentenced today in U.S. District Court to 12 years in prison for conspiracy to distribute marijuana, announced U.S. Attorney Jenny A. Durkan. JAMES POSTLETHWAITE, 60, of North Vancouver, BC, Canada was convicted following a three day trial in November 2012. POSTELTHWAITE was a transporter in a criminal organization that was smuggling marijuana south into the U.S. and cocaine north into Canada. At sentencing U.S. District Judge John C. Coughenour said POSTLETHWAITE “understood the size and scope of the conspiracy,” and was responsible for smuggling vast quantities of marijuana into the United States, as well as smuggling cocaine into Canada. “Cocaine has had a devastating impact on the streets of Vancouver,” and defendant’s actions contributed directly to that problem, Judge Coughenour said.
The investigation into this international drug trafficking ring began in May 2010. Using court authorized wire taps, investigators with DEA and Homeland Security Investigations (HSI) determined the drug ring was transporting and distributing 1,000 to 2,000 pounds of marijuana and 100 to 200 kilos of cocaine every month. The marijuana was smuggled into the U.S. from Canada and distributed across the country to California, Illinois, Missouri, Georgia and New Jersey, among other locations. Proceeds from the marijuana distribution were used to purchase cocaine in Southern California. The cocaine was transported to British Columbia for distribution.
After identifying the Seattle area warehouse that served as the hub for the marijuana distribution, investigators were able to identify POSTLETHWAITE’s semi-truck that delivered to the warehouse. After search warrants were served on the warehouse in April 2011, agents learned more about a hidden compartment in POSTLETHWAITE’s semi that allowed him to transport as many as 95 loads of drugs across the border. Each load was hundreds of pounds of BC Bud – the hidden compartment could hold more than 600 pounds. POSTLETHWAITE was indicted for his role in the conspiracy and was arrested March 9, 2012 as he tried to drive a different truck into the U.S. from Canada at the Eastport, Idaho, Port of Entry. The truck with the hidden compartment was later located trying to enter the U.S. with a different driver. The hidden compartment had a very elaborate access system using a separate battery to access a void in the floor of the trailer. Testimony in the trial revealed that the marijuana belonged to the Hells Angels organization in BC, Canada.
POSTLETHWAITE has been in custody in the U.S. since March 2012. Two dozen people in the U.S. and Canada have been charged in the case. Seven have already been sentenced to lengthy prison terms.
Other defendants already sentenced in the case include: Jacob Saul Stuart, the U.S. based leader of the ring, was sentenced last year to 15 years in prison; Michael Murphy, a pilot who transported drugs, 12 years in prison; Jacob Burdick, who stored and organized transportation of the drugs, 12 years in prison; John Washington, a drug distributor for the group, 11 years in prison; Glen Stewart, 52, a Custer, Washington based drug courier, 12 years in prison; Mario Joseph Fenianos, a Canadian who obtained and smuggled cocaine for the ring, 13 years in prison, and Michael William Dubois, another Canadian working on the cocaine side of the smuggling was sentenced to ten years in prison.Over the course of the investigation, law enforcement seized more than $2 million and 136 kilograms of cocaine. On April 28, 2011, the day search warrants were executed, law enforcement seized more than 1,000 kilograms of marijuana from locations across the country.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by DEA Offices – Seattle, Chicago, Las Vegas, Fresno, Los Angeles and New Jersey; ICE’s Homeland Security Investigations - Seattle and Sacramento; Customs and Border Protection – Office of Air & Marine; King County Sheriff’s Department; Seattle Police Department; Washington State Patrol; Snohomish Regional Drug Task Force; and the Bureau of Narcotics Enforcement (California).
The case is being prosecuted by Assistant United States Attorneys Jeffrey Backhus and Vince Lombardi.
Behavioral Analyst Charged with Health Care FraudRead the Press Release
Jenny Lynn Hall, formerly known as Jenny Lynn Unterstein, 37, of Smithville, Tenn., was charged with health care fraud in a one-count criminal information filed today in U.S. District Court, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Hall was a licensed and board-certified behavioral analyst with a Ph.D. in applied behavioral analysis and provided services to individuals with mental, behavioral or developmental disabilities. According to the information, Hall created false documents and forged signatures in 2009 and 2010 to obtain payment for behavioral analysis services that she never provided. As a result of this fraud, TennCare, the Tennessee Medicaid program, was billed for more than 115 behavioral analysis sessions that never occurred.
“Rooting out and prosecuting health care fraud is and will continue to be a major priority of the U.S. Attorney’s Office,” said Acting United States Attorney David Rivera. “Often, healthcare fraud is accomplished at the expense of vulnerable patients who are denied the services they deserve. Health care providers who engage in fraudulent activity, especially those serving vulnerable populations, will be held accountable.”
If convicted, Hall faces a maximum penalty of 5 years in prison and a $250,000 fine, as well as forfeiture of proceeds derived from the fraud.
This investigation is being conducted by agents of the Department of Health and Human Services Office of Inspector General and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney William F. Abely.An information is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Army Member Stationed at MacDill Sentenced to 15 Years for Production of Child PornographyRead the Press Release
Tampa, FL - U.S. District Judge Virginia M. Hernandez-Covington sentenced Thomas Meyer (42, Riverview) today to 15 years in federal prison for production of child pornography. As part of his sentence, he was ordered to serve a life term of supervised release following his release from prison. The court also ordered Meyer to forfeit his computer equipment, pay $300 in restitution to the victim, and register as a sex offender. Meyer pleaded guilty on February 7, 2013.
According to court documents, Meyer is a member of the United States Army and was stationed at MacDill Air Force Base. Between October 2011 and January 2012, Meyer used Yahoo! Messenger to have sexually explicit online chats with a female minor in Pennsylvania and another individual he thought was a 13 year old female, but who was actually an undercover detective in Kentucky. At Meyer's request, the minor female from Pennsylvania sent three pornographic photographs to Meyer's Yahoo! account. Meyer sent the undercover detective images of child and adult pornography, as well as an explicit web video of himself. He attempted to persuade the undercover detective to send him sexually explicit pictures of herself.
This case was investigated by the Federal Bureau of Investigation, the MacDill Air Force Base Office of Special Investigations (OSI), the Largo Police Department, the Kenton County (Kentucky) Police Department, the Pennsylvania State Police, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case 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 (CEOS), 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.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
6 May 2013
Worcester Man Pleads Guilty to Solicitation to Kidnap A ChildDungeon Discussed in Online Chats Discovered in Defendant’s BasementRead the Press Release
Boston - Geoffrey Portway, 40, a citizen of the United Kingdom and most recently of Worcester, Mass., pleaded guilty today to solicitation to commit a crime of violence (kidnaping of a child) and distribution and possession of child pornography.
According to the agreed upon statement of facts, Portway engaged in numerous chats with many individuals about a mutual interest in abducting, raping, murdering, and eating children. Many of these conversations were accompanied by the trading of child pornography. These chats also included images of children known to them, accompanied by discussions of the desire to sexually abuse, murder and cannibalize those children.As stated both in court filings and at the hearing today, through his online chats, Portway solicited several people for their help in abducting a child, predominately from Michael Arnett of Kansas. At least as early as 2010, Portway utilized Skype and other programs to communicate with Arnett, trading child pornography including images of injured, mutilated and deceased children while chatting about the sexual abuse, rape, abduction, murder, and cannibalism of children. Over months, Portway repeatedly solicited Arnett to kidnap a child for him, with the intent that Portway would ultimately rape, kill and eat that child. These solicitations for help abducting a child included discussing real children, by name and photo, that Arnett claimed to know and have access. In the chats, Portway and Arnett discuss different ways to kidnap children and the age range that Portway prefers. During the time that Portway was soliciting Arnett, Portway had been told that Arnett had helped others with such requests before and that Arnett had experience with the abduction and sexual abuse of children. Arnett has since pleaded guilty in Kansas to the sexual exploitation of a child for the purposes of producing child pornography.
On July 27, 2012, federal agents along with state and local police, executed a federal search warrant at Portway’s residence in Worcester. Various computers and digital devices containing Portway’s child pornography collection were seized, in addition to the computer he used to trade child photography and attempt to plan the abduction of a child.
During the execution of the search warrant, agents also discovered a locked door in the basement of the residence. Inside the door was a sally port that led to a second door (with a keyed lock). Inside the second door was a dungeon, which was lined with acoustical sound-deadening material and contained a chair, television, and what appeared to be cable access to the Internet. The room also contained a child-sized homemade coffin (with large speakers covered in wire mesh at one end) with exterior locking devices, a steel cage (approximately 3' wide, 2' high and 4' long) with multiple locking devices, and a steel table top (with steel rings at six points, presumably for restraints). Outside these rooms were a cabinet freezer, an upright freezer, disposable scalpels, butchering kits, and castration tools. This dungeon was described in detail by Portway in recovered chats as a place he intended to use to keep kidnaped children while he sexually abused them and as a place to eventually murder and cannibalize the children.
A forensic examination of the computers uncovered evidence of over 4,500 trades of child pornography between Portway and others. Many of these trades involved Portway distributing child pornography to others based on their stated specific preferences, including images and videos appearing to depict dead children and the cannibalism of children.
“Clearly, the facts of this case were quite disturbing and we are grateful law enforcement acted when they did,” said United States Attorney Carmen M. Ortiz. “I hope that this case sends a clear message that we will prosecute to the fullest extent of the law those who participate in these types of activities. Even though criminals attempt to hide in the anonymity provided by the Internet, the Department of Justice is committed to aggressively pursuing them to ensure that there is no place to hide.”
“An investigation that began in Milford in 2010 — expanded to Europe and beyond — has returned back to where it originally started: the Commonwealth of Massachusetts," said Bruce M. Foucart, special agent in charge of HSI Boston. “Since we began this operation — Operation Holitna — a worldwide network of offenders has been, and continues to be, unraveled, including Portway. Thanks to the determination of HSI, along with our partners at the U.S. attorney’s office, we have been able to rescue 160 children and arrest 51 perpetrators worldwide — all as a result of the arrest of a Milford man, and subsequent advanced forensics of his digital media. Portway’s guilty plea should serve as a stern warning to those inclined to abuse children or share images of child pornography: there isn’t a place in the United States, on the Internet, or the planet in which you are truly safe. We will investigate you, we will prosecute you and we will bring you to justice.”
Under the terms of the plea agreement, the Court must sentence Portway to between 216 and 327 months in prison, a lifetime supervised release, restitution and forfeiture. He will also be required to register as a Level 3 sex offender. Additionally, Portway is to be deported after serving his sentence.US Attorney Ortiz; SAC Foucart; Worcester County District Attorney Joseph Early; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; and Chief Gary J. Gemme of the Worcester Police Department made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.
If you have any information related to this investigation please call 617-748-3274.
Today's guilty plea is part of Operation Holitna, an ongoing HSI-led investigation that originated in Boston. In 2010, the U.S. Attorney's Office for the District of Massachusetts and HSI Boston arrested Robert Diduca on child pornography production charges. He was convicted and subsequently sentenced in June 2012. Forensic analysis of Diduca’s computer led investigators to the Netherlands where a Dutch national was arrested and charged with production, distribution and possession of child pornography, as well as the sexual assault of 87 minors. Since that time, a worldwide network of offenders has been, and continues to be, unraveled, including today's defendant. Defendants and victims continue to be identified around the world. To date, more than 160 children have been rescued and 51 perpetrators arrested worldwide - including Portway - as a result of Operation Holitna.
Woman Pleads Guilty to Wire Fraud Conspiracy Involving Stolen Identities and Consumer Credit ReportsRead the Press Release
CHARLOTTE, N.C. – A former Charlotte resident pleaded guilty today before U.S. Magistrate Judge David S. Cayer for her role in a scheme involving stolen personally identifiable information (PII) and fraudulently-obtained consumer credit reports, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS).
Nakia Monica Brown, 34, formerly of Charlotte, pleaded guilty to one count of wire fraud conspiracy and one count of aggravated identity theft. Brown’s co-conspirators, Tiffany Sherise Young, 30, of Charlotte and Trina Monique Young, 39, of Bronx, N.Y. have also agreed to plead guilty to one count of wire fraud conspiracy for their involvement in the scheme. Their plea hearings are scheduled for May 9th and May 10th, respectively, before Judge Cayer.
According to filed court documents and court proceedings, from 2009 through 2010, Brown and her co-conspirators used an unlawfully-acquired list of over 1,400 identity theft victims that contained stolen PII, including the victims’ names, social security numbers, and dates of birth. Court records show that the co-conspirators used the victim’s PII to obtain free consumer credit reports from credit reporting agencies and, in turn, used the consumer credit report information to manufacture fake identification documents and to purchase over $400,000 in merchandise from eleven (11) national retail chains.
According to the criminal bill indictment and plea documents, Brown defeated the credit reporting agencies’ online security systems and gained access to the victims’ consumer credit reports, including the victims’ credit scores, their existing credit card accounts, their available lines of credit and other biographical information, such as their residential addresses. In this manner, Brown fraudulently acquired a combined total of 370 credit reports from the three credit reporting agencies, according to plea documents.
Court documents indicate that Brown then used the identity theft victims’ information to manufacture counterfeit New York driver’s licenses. The counterfeit driver’s licenses contained the names, dates of birth and addresses of the identity theft victims, along with photographs and physical descriptions of Brown and her co-conspirators. Using the counterfeit New York driver’s licenses, Brown and her co-conspirators fraudulently purchased merchandise at national retail merchant stores based on the identity theft victims’ available credit or based on same-day, instant credit offered by the retail stores to new customers. Court records indicate that the fraudulently-purchased merchandise was then sold to pawnbrokers, “fences” and other end users. According to the plea agreement, the financial loss exceeds $400,000.
Brown and her co-conspirators have been released on bond since April 2012. They each face a maximum prison term of 20 years and a $250,000 for the wire fraud conspiracy charge. Brown faces a consecutive mandatory prison term of two years and a $250,000 fine for the aggravated identity theft charge. Sentencing dates for the defendants have not been set yet.
The investigation was handled by the USPIS, with assistance from the Charlotte-Mecklenburg Police Department. The prosecution was handled by Assistant U.S. Attorney Tom O’Malley of the U.S. Attorney’s Office in Charlotte.
If you believe that your personal information was compromised, there are numerous resources available online that can help you understand what steps to take to protect yourself against identify theft. This includes:
• A detailed list of resources from 11 different federal agencies, available at: http://idtheft.gov/takeaction.html • A guide from the Federal Trade Commission on what to do if your personal information has been compromised, but not yet misused: http://www.consumer.ftc.gov/features/feature-0014-identity-theft • Information on the different types of identity theft and additional resources available at: http://www.consumer.ftc.gov/features/feature-0014-identity-theftWanblee Man Sentenced on Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a Wanblee man convicted of Assault Resulting in Serious Bodily Injury was sentenced on May 6, 2013, by U.S. District Judge Roberto A. Lange. Jeffrey M. Chips, a/k/a Jeffrey M. Chipps, age 23, was sentenced to 36 months of imprisonment, 2 years of supervised release, and a $100 special assessment.
Chipps was indicted by a federal grand jury in October 2012. He pled guilty to Count II of the Indictment on February 12, 2013. The conviction stems from an incident on May 4, 2012, when Chipps was riding in a car in Mission, South Dakota, and came upon two women walking along the road. The car came to a stop, and two occupants of the vehicle exited and confronted the victim. A fight ensued, and Chipps then exited the vehicle and joined in the assault. Chipps struck the victim and fractured her jaw, among other injuries.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Troy Morley prosecuted the case.
Chipps was immediately turned over to the custody of the U.S. Marshal.
Violent Mistreatment of Illegal Aliens Results in 10 Year Sentences for DefendantsRead the Press Release
PHOENIX – On May 1, 2013, and April 15, 2013, defendants Juan Jose Parra-Labrador, 24, Sergio Sarabia-Sarabia, 25, and Uriel Parra-Lerma, 25, were sentenced by U.S. District Judge James A. Teilborgto 10 years in prison for their roles in holding 21 illegal aliens hostage in January 2012, after pleading guilty to conspiracy to harbor illegal aliens. Judge Teilborg also sentenced co-defendant Felipe Sarabia-Labrador, 43, to 9 years and 1 month in prison. All of the defendants were in the United States illegally from Mexico.
Three of the defendants were sentenced to the statutory maximum of 10 years. Defendants admitted that during the course of the conspiracy, the illegal aliens at the human stash house were abused. One victim was hung in a closet by his wrists and ankles, others were beaten in the face and groin, whipped and bound with cable cords, poked with knives, threatened with guns, and forced to urinate in a bucket.
Judge Teilborg stated that these defendants “dehumanized their victims” and attempted to profit from “trafficking in human misery.”
U.S. Attorney John S. Leonardo said, “Our office will vigorously prosecute those who prey upon vulnerable victims in our community. These prison sentences should make clear that we will not tolerate violence and exploitation by human smuggling organizations.”
Additionally, Aaron Aparicio-Ramirez, 30, was sentenced by Judge Teilborg to 18 months for his role in transporting illegal aliens to and from the stash house.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security. The prosecution was handled by Assistant U.S. Attorneys, Kristen Brook and Lisa Jennis Settel of District of Arizona, Phoenix.
CASE NUMBER: CR-12-00417-PHX-JAT
RELEASE NUMBER: 2013-036_Parra-Labrador_etalFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Ventura County Man Who Profited More Than $1 Million Through Illegal Insider Stock Trades Based on Information Obtained from Former Partner at KPMG Agrees to Plead Guilty to Federal Conspiracy ChargeRead the Press Release
LOS ANGELES – The owner of a San Fernando Valley jewelry store was charged today with receiving insider information from a senior partner with KPMG LLP and using that confidential information about KPMG’s clients to make illegal stock trades that generated well over $1 million in illicit profits.
Bryan Shaw, 52, of Lake Sherwood, California, was charged this morning in United States District Court with one count of conspiracy. In a plea agreement also filed this morning, Shaw agreed to plead guilty to the felony offense and admitted that he plotted with the former KPMG partner to commit securities fraud. As part of the agreement with federal prosecutors, Shaw agreed to disgorge approximately $1,271,787 in illegal stock trading profits.
Shaw is expected to make his initial appearance later this week in United States District Court.
In a criminal information and plea agreement filed this morning by federal prosecutors, Shaw admitted that he conspired with former KPMG senior partner Scott London to violate federal securities laws by using insider information to make illegal stock transactions in publicly traded companies.
London, 50, of Agoura Hills, was charged last month in a criminal complaint with one count of conspiracy to commit securities fraud. London is scheduled to be arraigned in the case in United States District Court on May 17.
“These two men were close friends who shared dinners, concerts, sporting events and secret information that brought profits to each of them,” said United States Attorney André Birotte Jr. “London provided, and Shaw was all too happy to use, proprietary information that should have remained confidential. These men broke ethical rules and criminal laws for the sole purpose of lining their pockets with illegal profits.”
Bill L. Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office, stated: “The FBI is committed to investigating allegations of insider trading and will hold violators accountable to ensure the public playing field is even and fair. We will continue to work with our partners to identify securities fraud so that investors maintain a high level of confidence in the marketplace.”
The documents filed in the case against Shaw, as well as the 24-page affidavit in support of the criminal complaint in London’s case, outline how London provided Shaw with confidential information about KPMG clients, and how Shaw used this information to make trades that generated the illegal proceeds.
London was a senior partner at KPMG who supervised hundreds of accounting professionals at the firm and personally handled audits for major KPMG clients, including Herbalife Ltd. and Skechers USA, Inc. As a result of his position, London had access to confidential information about KPMG’s clients before that information was disclosed to the public.
In February 2013, Shaw began to cooperate with the government’s investigation. London’s alleged criminal conduct continued until March, when he was recorded in telephone conversations passing highly sensitive and confidential information to Shaw regarding upcoming earnings announcements for KPMG clients Herbalife, Ltd. and Deckers Outdoor Corporation.
During the course of the scheme, London, in some instances, called Shaw two to three days before press releases were issued for KPMG clients and read confidential information from the draft releases to Shaw, according to court documents. London allegedly also disclosed to Shaw confidential information about impending mergers concerning KPMG clients before that information was made public. At times, London even discussed with Shaw how to structure Shaw’s purchases of the stock in certain companies in order to protect them from being discovered.
Shaw admits in his plea agreement that he gave London more than $60,000 in cash in exchange for confidential information about KPMG’s clients, typically meeting with London near Shaw’s Encino jewelry store to give him bags containing stacks of $100 bills. Shaw also admits in his plea agreement that he gave London a $12,000 Rolex Daytona Cosmograph watch, as well as jewelry and concert tickets, in exchange for the confidential information.
The criminal complaint against London details recorded conversations between Shaw and London in February 2013 in which London disclosed information about earnings announcement for Herbalife and Deckers. The complaint further details that on two occasions, acting at the direction of the FBI, Shaw met with London and gave him cash as payment for confidential information about KPMG clients.
The federal charge of conspiracy to commit securities fraud carries a statutory maximum penalty of five years in prison, and a fine of $250,000 or twice the gross gain or loss from the offense.
The criminal complaint naming London contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The criminal investigation in this case was conducted by the Federal Bureau of Investigation.
In a separate action filed last month, the U.S. Securities and Exchange Commission filed a civil lawsuit against London and Shaw (see: http://www.sec.gov/litigation/litreleases/2013/lr22670.htm).
Release No. 13-063
Two Members of A Pickpocket Crew Plead Guilty ToRead the Press Release
Baltimore, Maryland – Crystal Barner, age 28, and Maureen Brown Little, age 39, both of Baltimore, pleaded guilty today to a scheme in which the conspirators stole wallets from women’s purses, removed the cash, credit cards and driver’s licenses and used the credit cards to make purchases at nearby stores.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to their plea agreements, beginning in May 2007, the women were part of a scheme to defraud financial institutions by stealing credit cards from the wallets and purses of unsuspecting individuals, then using the stolen credit cards to make purchases. Specifically, the leader of the group, who was experienced at pickpocketing wallets, would wait in women’s restrooms and steal the wallets of women who hung their purses on the hooks in the stalls. Often, one of the other co-conspirators would create a distraction in an adjacent stall, such as asking for toilet paper, so that the victim would be looking away from her purse. Barner sometimes served as a “lookout” for the leader. Often the leader was able to remove cash and credit cards and return the wallet to the victim’s purse without the victim seeing or suspecting the theft.
Barner and Little, who each participated in the scheme until her arrest in 2012, received stolen credit cards from the leader. The conspirators took the cards to nearby retail stores and used each card until it began to be declined. The conspirators purchased items for their personal use, as well as gift cards or high end merchandise that the leader of the scheme would direct them to buy and would then resell. Barner and Little engaged in the scheme on a regular basis, knew that the credit cards were stolen and knew that other members of the conspiracy were conducting fraudulent transactions as well.
During the course of the conspiracy, Barner and Little obtained goods, services and extensions of credit of between $30,000 and $70,000, and caused losses to or used the identities of between 10 and 50 financial institutions, businesses and individuals.
The defendants each face a maximum sentence of 30 years in prison for bank fraud conspiracy and a mandatory sentence of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Barner on August 2, 2013 and for Little on July 26, 2013.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service, Maryland Transportation Authority Police, Baltimore County Police Department and Baltimore City Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Three District Men Plead Guilty to Charges in Deadly 2009 Gun Battle in Northeast Washington-Two Killed, Including A 15-Year-Old Innocent Bystander; Three Others Wounded-Read the Press Release
WASHINGTON – Three men, all from Washington, D.C., pled guilty today to charges stemming from a gun battle in Northeast Washington in which two people were killed, including a 15-year-old innocent bystander, U.S. Attorney Ronald C. Machen Jr. announced.
Sequarn Tibbs, 21, Antonio Barnes, 21, and Earl Jackson, 20, entered the pleas on the day their trial was to begin in the Superior Court of the District of Columbia. Each defendant pled guilty to two counts of voluntary manslaughter, one count of conspiracy to commit assault with a dangerous weapon, one count of assault with a dangerous weapon, and one count of carrying a pistol without a license. The Honorable Herbert B. Dixon, Jr., scheduled sentencing for Tibbs for Aug. 16, 2013. Barnes is to be sentenced on June 28, 2013, and Jackson on July 10, 2013. All three remain in custody. The men face a statutory maximum of 30 years in prison for each of the manslaughter counts and 25 additional years for the other offenses.
According to the government’s evidence, the three defendants were part of a group, known as “Young Savage,” associated with the 37th Street/37th Place neighborhood of Southeast Washington. The violence came after the discovery on Oct. 12, 2009 that a burglary took place in the home of Jackson’s mother, located in the Clay Terrace area of Northeast Washington. A .38-caliber revolver, belonging to a juvenile co-conspirator, was stolen during the burglary.
Late Oct. 12, 2009 and early Oct. 13, 2009, Jackson, Barnes, and others, including Tibbs’s brother, Daquan Tibbs, 18, decided that Clay Terrace residents were responsible for the burglary. The group decided to travel to the home of Jackson’s mother in Clay Terrace to identify and find the people responsible and get the property back - with force, if necessary.
They rode to Clay Terrace in a taxicab, while armed with a .45-caliber semi-automatic pistol, a .40-caliber pistol and a .9-mm pistol. Once there, they decided to confront Clay Terrace individuals who were outside in the neighborhood. They demanded the .38-caliber revolver, and, although no money had been determined to be taken, they also asked for money.
A male from the Clay Terrace group advised that they did not know who was responsible for the theft, but opined that it was probably a “young’un.” Later, an older Clay Terrace resident came to the Jacksons’ house, and asked about the situation. This person also speculated it was probably “one of the little young’uns,” and left. The older man later came back and returned the gun, not saying where he got it. He said that he did not know anything about the missing money.
Sequarn Tibbs, meanwhile, joined the group in Clay Terrace. Throughout the day, several members of the group smoked marijuana. At one point, Jackson and the juvenile co-conspirator discussed whether they should wait until school was over to see if they could find the “young’uns” responsible for the theft/burglary.
Shortly before 4 p.m. on Oct. 13, 2009, the defendants and others in the group left the house. The group took their guns with them, which included a .45-caliber pistol, a .40-caliber pistol, a .38-caliber revolver, and a .9-mm pistol. They headed to a courtyard known in Clay Terrace as “Briscoe Court,” in the 300 block of 53rd Street NE. A gun battle soon began, with Sequarn Tibbs firing the first shot. During the gunfire, Daquan Tibbs was shot to death by a weapon fired by the juvenile co-conspirator. A 15-year-old boy, Davonta Artis – an innocent bystander – was shot and also killed. Three others were wounded.
In August of 2010, all three defendants learned that warrants had been issued for their arrests, and they fled the Washington, D.C. area to avoid being apprehended. Tibbs was captured on Sept. 21, 2010 in New York. On March 14, 2011, Barnes was arrested on an unrelated matter in Gwinnett County, Ga., but he used a false name to avoid apprehension in this case. He was bailed out of jail before law enforcement learned his true identity. However, on Jan. 13, 2012, he and Jackson were arrested in North Carolina.
In announcing the pleas, U.S. Attorney Machen commended the work of the detectives, officers and mobile crime scene technicians who investigated the case for the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorneys Sean Tonolli, J.P. Cooney, Sharad Khandelwal and Heather Carlton; Paralegal Specialists Kendra Johnson, Alesha Matthews-Yette, Kwasi Fields, Kelly Blakeney, Sharon Newman, Fern Rhedrick and Marian Russell; Litigation Technology Specialist Joshua Ellen; Victim/Witness Advocates Marcia Rinker and Katina Adams-Washington, and Investigative Analysts Larry Grasso, Zachary McMenamin, Durand Odom, and John Marsh. Finally he praised the work of Assistant U.S. Attorneys Reagan Taylor and Deborah Sines, who are prosecuting the matter.
13-157The Executive Office for Immigration Review Swears in Five Immigration JudgesRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the investiture of five immigration judges. Chief Immigration Judge Brian M. O’Leary presided over the investiture during a ceremony held at EOIR’s headquarters on May 3, 2013.
After a thorough application process, Attorney General Eric Holder appointed Timothy R. Everett, J. Traci Hong, Amy T. Lee, Elizabeth H. McGrail and John C. Odell to their new positions. “EOIR is committed to continuing to apply its resources toward its primary mission,” said O’Leary. “The arrival of these five professionals brings our immigration judge corps to nearly 260, all of whom will work to help mitigate EOIR’s pending caseload.”
Biographical information follows.
Timothy R. Everett, Immigration Judge, Los Angeles Immigration Court
Attorney General Eric Holder appointed Judge Everett in April 2013. Judge Everett received a bachelor of arts degree in 1980 from Louisiana State University; a master of arts degree and a juris doctorate in 1986 from Tulane University and Tulane University Law School respectively; and a master of studies in environmental law in 2000 from Vermont Law School. From March 2009 to April 2013, Judge Everett served as an assistant chief counsel, Department of Homeland Security, U.S. Immigration and Customs Enforcement, Los Angeles. From January 2000 to March 2009, he was a solo practitioner in Los Angeles. During that time from March 2000 to December 2000, he was an interim directing attorney for the Central American Resource Center in Los Angeles. From August 1999 to December 1999, Judge Everett worked as a legal intern at the National Wildlife Foundation in Washington, D.C. From May 1996 to August 1998, he was a solo practitioner in Los Angeles. From May 1991 to May 1996, Judge Everett served as a directing attorney of the Domestic Legal Department at El Rescate Legal Services in Los Angeles. From April 1990 to May 1991, he was a staff attorney at Ayuda Legal Services in Washington, D.C. From 1989 to 1990, he served as an associate attorney at the Law Office of William Van Wyke in Washington, D.C. Judge Everett is a member of the State Bar of California and the Florida Bar.
J. Traci Hong, Immigration Judge, Los Angeles Immigration Court
Attorney General Eric Holder appointed Judge Hong in April 2013. Judge Hong received a bachelor of arts degree in 1992 from The University of Texas at Austin and a juris doctorate in 1995 from The University of Texas School of Law. From February 2011 to April 2013, she served as a senior policy advisor for the Department of Homeland Security, Office for Civil Rights and Civil Liberties in Washington, D.C. From March 2007 to January 2011, Judge Hong served as counsel for the U.S. House of Representatives, Committee on the Judiciary, Subcommittee on Immigration, Citizenship, Refugees, Border Security, and International Law. From June 2003 to March 2007, she worked for the Asian American Justice Center in Washington, D.C. as an immigration staff attorney and the immigration program director. From January 2000 to May 2003, Judge Hong was a staff attorney for the American Immigration Law Foundation in Washington, D.C. From August 1995 to December 1999, she practiced immigration law with the law firm of Tidwell Swaim & Associates, P.C., in Dallas. Judge Hong is a member of the State Bar of Texas.
Amy T. Lee, Immigration Judge, Los Angeles Immigration Court
Attorney General Eric Holder appointed Judge Lee in April 2013. Judge Lee received a bachelor of arts degree in 1992 from Stanford University; a juris doctorate in 1995 from University of the Pacific, McGeorge School of Law; and a master of public administration in 2001 from California State University, East Bay. From February 2008 to April 2013, she was an attorney with Fallon, Bixby, Cheng & Lee, Inc. in San Francisco. From January 2006 to February 2008, Judge Lee was an attorney with the Law Offices of David M. Lederman in Antioch, Calif. From January 2005 to December 2005, she was a solo practitioner in Oakland, Calif. From January 2001 to January 2005, Judge Lee served as senior corporate counsel for PeopleSoft, Inc. From September 1995 to December 2000, she served as an assistant district counsel for the Department of Justice, U.S. Immigration and Naturalization Service, in San Francisco. Judge Lee is a member of the State Bar of California.
Elizabeth H. McGrail, Immigration Judge, Los Angeles Immigration Court
Attorney General Eric Holder appointed Judge McGrail in April 2013. Judge McGrail received a bachelor of arts degree in 1985 from Vanderbilt University and a juris doctorate in 1989 from the College of William and Mary, Marshall-Wythe School of Law. From 2008 to April 2013, she served as legal director at Capital Area Immigrants’ Rights Coalition (CAIR Coalition) in Washington, D.C. From 2007 to 2008, Judge McGrail served as an of counsel for the Law Office of Richard S. Bromberg in Washington, D.C. From 2005 to 2007, she served as the detention project director and legal consultant for CAIR Coalition. From 1994 to 2005, Judge McGrail was a solo practitioner in Washington, D.C. From 1991 to 1994, she was an associate at Wasserman, Mancini & Chang in Washington, D.C. From 1989 to 1990, Judge McGrail was an associate at Brown & Wood in New York. Judge McGrail is a member of the District of Columbia Bar.
John C. Odell, Immigration Judge, Tacoma Immigration Court
Attorney General Eric Holder appointed Judge Odell in April 2013. Judge Odell received a bachelor of science degree in 1983 from the United States Coast Guard Academy and a juris doctorate in 1994 from the Seattle University School of Law. From October 2007 to April 2013, he served as an assistant chief counsel, Department of Homeland Security, U.S. Immigration and Customs Enforcement, in Seattle, Wash., where, from December 2008 to December 2010, he served as a special assistant U.S. attorney. From 1997 to 2007, Judge Odell served in the U.S. Coast Guard where he held various legal positions, including staff judge advocate, 13th Coast Guard District, Seattle, and Coast Guard Academy, New London, Conn.; military judge, U.S. Coast Guard; senior defense counsel, Naval Legal Services Office, Bremerton, Wash.; and assistant legal officer, 13th Coast Guard District. Judge Odell is a member of the Washington State Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewTaiwanese Father and Son Arrested for Allegedly Violating US Laws to Prevent Proliferation of Weapons of Mass DestructionRead the Press Release
CHICAGO — A resident of Taiwan, who the U.S. government has linked to the supply of weapons machinery to North Korea, and his son, who resides in suburban Chicago, are facing federal charges here for allegedly conspiring to violate U.S. laws designed to thwart the proliferation of weapons of mass destruction, federal law enforcement officials announced today. HSIEN TAI TSAI, also known as “Alex Tsai,” who is believed to reside in Taiwan, was arrested last Wednesday in Tallinn, Estonia, while his son, YUEH-HSUN Tsai, also known as “Gary Tsai,” who is from Taiwan and is a legal permanent resident in the U.S., was arrested the same day at his home in Glenview, Ill.
Gary Tsai, 36, was ordered held in custody pending a detention hearing at 1:30 p.m. today before Magistrate Judge Susan Cox in U.S. District Court in Chicago. Alex Tsai, 67, remains in custody in Estonia pending proceedings to extradite him to the United States.
Both men were charged in Federal Court in Chicago with three identical offenses in separate complaints that were filed previously and unsealed following their arrests. Each was charged with one count of conspiring to defraud the United States in its enforcement of laws and regulations prohibiting the proliferation of weapons of mass destruction, one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) by conspiring to evade the restrictions imposed on Alex Tsai and two of his companies by the U.S. Treasury Department, and one count of money laundering.
The arrests and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Gary Hartwig, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and Ronald B. Orzel, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Chicago Field Office. The Justice Department’s National Security Division and Office of International Affairs assisted with the investigation. U.S. officials thanked the Estonian Internal Security Service and the Estonian Prosecutor’s Office for their cooperation.
According to both complaint affidavits, agents have been investigating Alex and Gary Tsai, as well as Individual A (a Taiwanese associate of Alex Tsai), and a network of companies engaged in the export of U.S. origin goods and machinery that could be used to produce weapons of mass destruction. Alex and Gary Tsai and Individual A are associated with at least three companies based in Taiwan – Global Interface Company, Inc., Trans Merits Co., Ltd., and Trans Multi Mechanics Co., Ltd. – that have purchased and then exported, and attempted to purchase and then export, from the United States machinery used to fabricate metals and other materials with a high degree of precision.
On Jan. 16, 2009, under Executive Order 13382, which sanctions proliferators of weapons of mass destruction and their supporters, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated Alex Tsai, Global Interface, and Trans Merits as proliferators of weapons of mass destruction, isolating them from the U.S. financial and commercial systems and prohibiting any person or company in the United States from knowingly engaging in any transaction or dealing with Alex Tsai and the two Taiwanese companies.
In announcing the January 2009 OFAC order, the Treasury Department said that Alex Tsai was designated for providing, or attempting to provide, financial, technological, or other support for, or goods or services in support of the Korea Mining Development Trading Corporation (KOMID), which was designated as a proliferator by President George W. Bush in June 2005. The Treasury Department asserted that Alex Tsai “has been supplying goods with weapons production capabilities to KOMID and its subordinates since the late 1990s, and he has been involved in shipping items to North Korea that could be used to support North Korea’s advanced weapons program.” The Treasury Department further said that Global Interface was designated “for being owned or controlled by Tsai,” who is a shareholder of the company and acts as its president. Tsai is also the general manager of Trans Merits Co. Ltd., which was designated for being a subsidiary owned or controlled by Global Interface Company Inc. http://www.treasury.gov/press-center/press-releases/Pages/hp1359.aspx
After the OFAC designations, Alex and Gary Tsai and Individual A allegedly continued to conduct business together, but attempted to hide Alex Tsai’s and Trans Merit’s involvement in those transactions by conducting business under different company names, including Trans Multi Mechanics. For example, by August 2009 – approximately 8 months after the OFAC designations – Alex and Gary Tsai, Individual A and others allegedly began using Trans Multi Mechanics to purchase and export machinery on behalf of Trans Merits and Alex Tsai. Specifically, the charges allege that in September 2009 they purchased a Bryant center hole grinder from a U.S. company based in suburban Chicago, and exported it to Taiwan using the company Trans Multi Mechanics. A Bryant center hole grinder is a machine tool used to grind a center hole, with precisely smooth sides, through the length of a material.
The charges further allege that by at least September 2009, Gary Tsai had formed a machine tool company named Factory Direct Machine Tools, in Glenview, Ill., which was in the business of importing and exporting machine tools, parts, and other items to and from the United States. However, the charges allege that Alex Tsai and Trans Merits were active partners in Factory Direct Machine Tools, in some instances procuring the goods for import to the United States for Factory Direct Machine Tool customers.
Violating IEEPA carries a maximum penalty of 20 years in prison and a $1 million fine; money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine; and conspiracy to defraud the United States carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The government is being represented by Assistant U.S. Attorneys Patrick Pope and Brian Hayes.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Alex Tsai Complaint
Gary Tsai ComplaintState Senator from Brooklyn Charged with Embezzlement and Obstruction of JusticeRead the Press Release
An indictment was unsealed this morning in federal court in Brooklyn charging New York State Senator John Sampson with two counts of embezzlement, five counts of obstruction of justice and two counts of making false statements to the Federal Bureau of Investigation.1 Since 1997, Sampson has served in the New York State Senate (the “Senate”) representing the 19th Senate District in southeastern Brooklyn. From June 2009 to December 2012, Sampson was the leader of the Democratic Conference of the Senate. From January 2011 to December 2012, Sampson was also the Senate Minority Leader. Sampson has also served as the chairman of the Senate Ethics Committee and the Senate Judiciary Committee. Sampson will be arraigned later today before United States Magistrate Judge Viktor V. Pohorelsky at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (“FBI”), New York Field Office.
“The voters of New York State rightfully expect their elected officials to represent the voters’ interests, not to trade on their positions of power to line their own pockets,” stated United States Attorney Lynch. “As charged in the indictment, for years, Senator John Sampson abused his position of public trust to steal from New Yorkers suffering from home foreclosure and from the very county he was elected to represent. But the former Senate ethics leader didn’t stop there. Senator Sampson allegedly stole that money to fund his own ambition to become Brooklyn’s top state prosecutor, then engaged in an elaborate obstruction scheme to hide his illegal conduct, going so far as to counsel lies and the hiding of evidence.” United States Attorney Lynch thanked the FBI and the Federal Deposit Insurance Corporation Office of the Inspector General for their investigative efforts, as well as the Public Integrity Section and the Office of the Inspector General of the Department of Justice for their assistance in this case.
FBI Assistant Director-in-Charge Venizelos stated, “Today John Sampson has been added to the list of recently indicted New York elected officials. We could view this as an achievement for the FBI and federal prosecutors. But we share what may well be the concern of many New Yorkers that ‘incumbent’ and ‘defendant’ cannot be accepted as interchangeable. Elected officials are referred to as ‘public servants,’ and that should not be confused with ‘self-serving.’ The people of New York have a right to demand, at a bare minimum, that their elected representatives obey the law.”
I. The Embezzlement Scheme
As charged in the indictment, Sampson is an attorney licensed to practice law in the State of New York, and his law practice has included legal work involving the sale of foreclosed properties. Beginning in the late 1990’s, Sampson served as a court-appointed referee for foreclosure proceedings conducted by the Kings County Supreme Court. As referee, Sampson controlled escrow accounts holding proceeds of foreclosure sales of Brooklyn properties. Between 1998 and 2008, Sampson embezzled approximately $440,000 in surplus funds from the foreclosure sales of four Brooklyn properties. The prior owners of the Brooklyn properties, and other parties with a lawful interest, had a right to receive the funds embezzled by Sampson. Sampson indicated that he had illegally diverted the stolen funds to pay expenses arising from his unsuccessful run for Kings County District Attorney in 2005.
As alleged in the indictment, in July 2006, Sampson asked an associate who worked in the real estate industry (the “Associate”) for $188,500. The Associate agreed and, at Sampson’s direction, provided him with these funds in the form of three bank checks payable to third parties (the “Associate Transaction”). Sampson characterized the Associate Transaction to the Associate as a loan that he would repay, the proceeds of which he would use to cover the tracks of his embezzlement before it was uncovered. However, Sampson took this “loan” without written documentation or any rate of interest. Sampson never repaid the Associate. Further, Sampson concealed the Associate Transaction by lying on his Senate financial disclosure forms, falsely claiming that he had incurred no liabilities in excess of $5,000 or gifts or income in excess of $1,000.
The indictment further alleges that Sampson used a portion of the Associate Transaction funds to pay back some of the money he embezzled from two of the escrow accounts. However, Sampson never repaid any of the approximately $160,000 he stole from the two escrow accounts that are the subject of the embezzlement charges in the indictment.
II. John Sampson’s Obstruction of Justice
In the summer of 2011, the United States Attorney’s Office for the Eastern District of New York (the “USAO”) filed bank and wire fraud charges against the Associate in relation to a mortgage fraud scheme (the “Mortgage Fraud Case”). As charged in the indictment, after the Associate’s arrest, Sampson engaged in a multifaceted scheme to obstruct justice, so as to prevent the Associate from cooperating with law enforcement authorities and disclosing Sampson’s criminal conduct. Evidence of Sampson’s obstructive conduct includes intercepted phone calls from Sampson’s cellular telephone.
A. John Sampson’s Use of a USAO Employee to Obstruct Justice
According to the indictment, Sampson attempted to obtain confidential, nonpublic information regarding the Mortgage Fraud Case. Soon after the Associate’s arrest, Sampson informed the Associate that he knew an individual who, at that time, was an administrative employee in the USAO (the “Employee”). Sampson told the Associate that he could persuade the Employee to give inside information that would assist the Associate’s defense in the Mortgage Fraud Case.
As alleged in the indictment, Sampson then asked the Employee to determine whether the USAO was conducting a criminal investigation of Sampson and whether certain mortgage fraud defendants were cooperating with the government’s investigation. Sampson told the Associate that he was attempting to determine the identities of cooperating witnesses in the Mortgage Fraud Case, and that if they were able to identify those witnesses, Sampson could arrange to “take them out.”
According to the indictment, when the Associate asked Sampson about his efforts to use the Employee to obtain information about the Mortgage Fraud Case, Sampson was reluctant to discuss those illegal efforts over the telephone. For example, while meeting with the Associate in November 2011, Sampson stated, “I can’t talk on the phone . . . . From now on, our conversation is, ‘I don’t have no contacts, you don’t know nothing.’ When we talk, that’s how we talk.”
The indictment alleges that FBI agents later confronted the Employee concerning his contacts with Sampson. Immediately thereafter, agents searched the Employee’s office and located a slip of paper which contained the handwritten names of several individuals who were defendants in proceedings related to the Mortgage Fraud Case. The Employee was then suspended and subsequently terminated from his employment at the USAO.
B. John Sampson’s Witness and Evidence Tampering
As charged in the indictment, Sampson also obstructed justice by directing the Associate to withhold evidence regarding the Associate Transaction from the government. During a meeting on February 22, 2012, the Associate told Sampson that the federal government had subpoenaed the Associate’s business records, including a check register page that documented the Associate Transaction (the “Check Register Page”). Before disclosing the Check Register Page to the government, the Associate showed it to Sampson. At that time, Sampson took possession of the Check Register Page, examined it, and stated, “That’s a problem . . . I mean for me.”
Sampson instructed the Associate not to disclose the Check Register Page to the government. When the Associate stated that it might be a problem to withhold the document from the government, Sampson told the Associate to claim that the Associate did not maintain all of the Associate’s records. Sampson instructed, “Don’t say you don’t have it. Just say you don’t know. I don’t want you to lie, just say you don’t know.”
In addition, Sampson told the Associate to remove other items from the business records the Associate provided to the government, to make it appear as though the Associate’s records were incomplete. Sampson counseled the Associate to falsely claim that the Associate Transaction was payment for legal work Sampson had performed. Later during this conversation, Sampson instructed the Associate that, if the government asked whether the Associate ever loaned Sampson money, the Associate should say “No.” Sampson also suggested that, alternatively, the Associate could falsely claim that the Associate “forgave” the Associate Transaction “loan.” Sampson kept the Check Register Page during and after this meeting, and never returned it to the Associate.
III. John Sampson’s False Statements to the FBI
On July 27, 2012, FBI Special Agents interviewed Sampson outside his Brooklyn residence. When shown a copy of the Check Register Page, which he had taken from the Associate on February 22, 2012, Sampson stated that the document “didn’t ring a bell,” that he “didn’t have a recollection from it,” and that he did not recall seeing it previously. Sampson admitted that he had asked the Employee for information on the Mortgage Fraud Case, but claimed that he only requested public information from the Employee, such as the name of the judge assigned to the Mortgage Fraud Case. When asked why he would request public information from an employee of the USAO, when Sampson himself was an attorney, Sampson stated that he was not “good” with computers. At the conclusion of the interview, the agents advised Sampson that he had lied to federal agents, which constituted a federal crime. When asked whether he wished to revise his statement, Sampson stated, “Not everything I told you was false.”
If convicted, Sampson faces up to 10 years of imprisonment for each embezzlement charge, up to 10 years of imprisonment for a charge of obstruction of justice under 18 U.S.C. § 1503(a), up to 20 years of imprisonment for each of the remaining four charges related to obstruction of justice, and up to 5 years of imprisonment for each false statement charge, as well as restitution, forfeiture, and fines.
The government’s case is being prosecuted by Assistant United States Attorneys Daniel Spector, Paul Tuchmann, and Alexander Solomon.
The Defendant:
JOHN L. SAMPSON
Age: 47
Residence: Brooklyn, New York_____________________________
1The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Singer and Actress Lauryn Hill Sentenced to Prison for Failing to File Tax Returns for More Than $2.3 Million in IncomeRead the Press Release
NEWARK, N.J. – Lauryn N. Hill, the Grammy-winning singer and actress, was sentenced today to three months in prison and three months of home confinement with electronic monitoring for not reporting more than $2.3 million in income by intentionally failing to file tax returns for five years, U.S. Attorney Paul J. Fishman announced.
Hill, 37, of South Orange, N.J., previously pleaded guilty to an Information charging her with three counts of failing to file tax returns with the IRS. The sentence was imposed by U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.
According to documents filed in this case and statements made in court: In addition to being an entertainer, Hill owned and operated four sub-chapter S corporations, and her primary source of income was royalties from the recording and film industries. During 2005, 2006 and 2007, Hill received more than $1.8 Million in income from those sources, but didn’t file her tax returns for those years.
Although Hill pleaded guilty to charges specifically related to those tax years, her sentence also takes into account additional income and tax losses for 2008 and 2009 – when she also failed to file federal returns – along with her outstanding tax liability to the state of New Jersey, for a total income of approximately $2.3 million and total tax loss of approximately $1,006,517.
In addition to the prison term and home confinement, Judge Arleo sentenced Hill to serve a year of supervised release and ordered her to pay a $60,000 fine in addition to her restitution to the IRS. Judge Arleo also ordered Hill to fully cooperate with the IRS, including payment of outstanding interest and penalties on her tax obligations.U.S. Attorney Fishman credited special agents with IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.
The government is represented by Assistant U.S. Attorney Sandra L. Moser of the U.S.
Defense counsel: Nathan J. Hochman Esq., Santa Monica, Calif.
Attorney’s Office Special Prosecutions Division in Newark.
13-181Shiprock Man Pleads Guilty to Aiding and Abetting an Armed Robbery on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Nielson McKensley, 49, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to an indictment charging him with aiding and abetting an armed robbery in Indian Country. Under the terms of his plea agreement, McKensley will be sentenced to a term of 46 to 57 months in prison.
McKensley was arrested on Nov. 13, 2012, on a criminal complaint charging him with being an accomplice to an armed robbery of a residence in Shiprock on Oct. 26, 2012. He subsequently was indicted on that same charge.
According to court records, McKensley agreed to assist Randy Coolidge, 46, rob the residence of an acquaintance (victim) in the early hours of Oct. 27, 2012, by driving Coolidge to the residence and helping him with the robbery. After putting duct tape over his face to conceal his identity, Coolidge approached the residence armed with a pistol. As Coolidge tried to push his way into the residence, the victim attempted to take the pistol away from Coolidge. As the two men fought over the pistol, the pistol discharged and Coolidge was shot in the chest and stomach. Coolidge subsequently died of his wounds. The victim then realized that another man (McKensley), whose face also was covered with black duct tape and who was armed with a steel pipe, was standing by his door. After attempting unsuccessfully to drag Coolidge from the residence, McKensley left Coolidge behind and drove away. Officers initiated the investigation leading to McKensley’s arrest after Coolidge’s body was found shortly thereafter.
During today’s plea hearing, McKensley admitted driving Coolidge to the victim’s residence knowing that Coolidge intended to take items of value from the victim by force and violence. McKensley also admitted that he intended to help Coolidge rob the victim.
McKensley has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Mark T. Baker.
Serial Bank Robber Pleads Guilty to Multiple HoldupsRead the Press Release
MINNEAPOLIS— Earlier today in federal court in St. Paul, a 49-year-old Minneapolis man, previously dubbed by law enforcement as “the man-in-black bank robber,” pleaded guilty to five bank robberies that occurred in Minnesota between March 9, 2011, and January 3, 2012. In entering his plea, Mark Edward Wetsch also admitted responsibility for 25 additional bank robberies that occurred in 2011. Previously, on April 22, 2013, he pleaded guilty to one count of armed bank robbery, which occurred on January 3, 2012, in Brewster, Minnesota. He entered his plea today before United States District Court Judge Susan Richard Nelson.
Pursuant to a plea agreement, Wetsch pled guilty to robbing five banks, in each case admitting that he wore a black mask and brandished a firearm believed to be real. Wetsch stole $9,350 from the First National Bank in Hastings on December 27, 2011; $3,634 from the Wells Federal Bank in St. Peter on December 22, 2011; $3,801 from the Premier Bank in Albertville on November 9, 2011; $9,445 from the Merchants Bank in Hampton on May 13, 2011; and $3,050 from the United Educators Credit Union in Eden Prairie on April 26, 2011. In addition to the 6 bank robberies for which Wetsch pled guilty, Wetsch admitted taking a total of more than $110,000 in the 31 bank robberies that he committed in 2011.Those additional robberies include—
December 29, 2011 Glenwood State Bank of Alexandria $3,200 stolen
December 20, 2011 Franklin Bank of Minneapolis 2,350 stolen
December 14, 2011 M&I Bank of St. Paul 1,645 stolen
December 7, 2011 Premier Bank of Bloomington 850 stolen
December 5, 2011 US Bank of Hopkins 3,106 stolen
November 30, 2011 Central Bank of Minneapolis 803 stolen
November 22, 2011 Bremer Bank of Minneapolis 2,907 stolen
November 13, 2011 TCF Bank of Arden Hills 4,900 stolen
November 9, 2011 Richfield Bloomington Credit Union attempted robbery
November 4, 2011 First National Bank of Lakes, Richfield 8,823 stolen
November 1, 2011 Paragon Bank of Shakopee 1,444 stolen
October 22, 2011 Prior Lake State Bank, Prior Lake 7,200 stolen
June 13, 2011 First National Bank of Minnesota of
Gaylord 6,946 stolen
June 3, 2011 Sherburne State Bank, Clear Lake 3,000 stolen
April 26, 2011 Wells Fargo Bank, Faribault 2,225 stolen
April 26, 2011 Richfield Bloomington Credit Union attempted robbery
April 14, 2011 US Federal Credit Union of Northfield 5,280 stolen
April 11, 2011 Sterling State Bank of Savage 1,885 stolen
March 9, 2011 Klein Bank of Cologne 11,400 stolen
March 7, 2011 Bremer Bank of Minneapolis 2,030 stolen
February 17, 2011 First National Bank of Orono 4,000 stolen
February 10, 2011 United Educators Credit Union of
Columbia Heights 1,500 stolen
February 9, 2011 US Bank of St. Paul 1,000 stolen
February 4, 2011 Central Bank of Minneapolis 1,056 stolen
January 11, 2011 Bremer Bank of Minneapolis 6,000 stolen
Wetsch remains in custody. Pursuant to the plea agreement, the government is seeking a prison sentence of 14 years. Since the federal criminal justice system does not have parole, defendants serve virtually their entire sentence behind bars. Judge Nelson will determine Wetsch’s actual sentence at a future hearing, not yet scheduled.This case is the result of an investigation by the Federal Bureau of Investigation and the police departments of Alexandria, Bloomington, Columbia Heights, Eden Prairie, Faribault, Gaylord, Hastings, Hopkins, Minneapolis, Northfield, Orono, Prior Lake, Richfield, Savage, St. Paul, St. Peter, and Shakopee; the sheriff offices of Carver, Dakota, Hennepin, Ramsey, Nicollet, Nobles, Sibley, and Wright counties, with assistance from the Minnesota State Patrol. The case is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Kevin S. Ueland.
Rare Glass Bottle Returned to Wistar InstituteRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, and Edward J. Hanko, Special Agent in Charge, Philadelphia Field Division, Federal Bureau of Investigation (FBI), announced today the return of a rare glass bottle to the Wistar Institute in Philadelphia, Pennsylvania. The bottle was made at the first successful glass factory in the American Colonies, established by Caspar Wistar near Alloway, New Jersey, in 1739. The bottle bears the initials of Richard Wistar, the eldest son of Caspar Wistar. It is one of only two known existing Caspar Wistar bottles with the “RW” seal. Caspar Wistar's bottles were made of impure green glass using a formula in use since the Middle Ages. Wistar’s bottles were designed to resemble popular European bottles of the day.
The bottle was granted to the Wistar Institute by General Isaac J. Wistar, great nephew of Caspar Wistar, in 1905. The bottle was taken from the Wistar collection without permission after 1958. Thereafter, the bottle was purchased and sold on several occasions, without actual knowledge that it was stolen. In 2011, the bottle was discovered in a museum exhibit, on loan from its purported owner. The purported owner ultimately agreed to its return to the Wistar Institute. The Caspar Wistar bottle is pictured below.
United States Attorney Charles M. Oberly, III said, “The return of this rare bottle to the Wistar Institute is the result of the joint efforts of this office and the FBI Art Crime Team. I commend all parties for their efforts in producing this positive outcome. Artifacts like this glass bottle are an important part of American history. Unfortunately, this bottle was stolen and entered the stream of commerce. I am pleased it can be returned to its rightful owner.”This matter was investigated by David L. Hall, Assistant United States Attorney, Special Prosecutor, FBI Art Crime Team. For further information Assistant United States Attorney David L. Hall at (302) 573-6277.
Pittsburgh Man Sentenced to Prison for Scheme That Defrauded Sellers, ShippersRead the Press Release
PITTSBURGH, Pa. - On Friday, May 3, a Pittsburgh man was sentenced in federal court to 24 months imprisonment, to be followed by three years of supervised release, on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Ronald B. Halpern, 67.
According to information presented to the court, Halpern operated a business known as A & R Services, Inc., from his apartment. On behalf of A & R Services, Halpern negotiated the purchase, sale, and delivery of linens, sports-related merchandise, and novelty items. During the period April 2007 through September 2007, Halpern and others devised and executed a scheme to defraud manufacturers, wholesale distributors, customers and interstate shipping companies of money and property totaling in excess of $700,000. Halpern's fraud scheme included obtaining merchandise for resale on A & R Services behalf by applying for extensions of credit from the various manufacturers, wholesalers, and shipping companies based on false financial information. Halpern had no intention of paying for the merchandise or its shipment after receipt.
In addition to the sentence of imprisonment, Halpern was ordered to pay restitution to 13 victims in the total amount of $709,655.21.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Office of the United States Trustee for the investigation leading to the successful prosecution of Halpern.
Pedophile Sentenced to 14 Years in Federal Prison on Child Porn ConvictionRead the Press Release
Andrew Oldaker collected more than 600 pictures and videos of child pornography
HUNTINGTON, W.Va. – A Parkersburg pedophile who possessed hundreds of pictures and videos of child pornography was sentenced today to 14 years in federal prison followed by a lifetime of supervised release, announced U.S. Attorney Booth Goodwin. Andrew Tracy Oldaker, 37, of Parkersburg, W.Va., previously pleaded guilty to the child pornography charges in December 2012.
U.S. Attorney Booth Goodwin said, “Pedophiles like Mr. Oldaker are logging into the Internet to steal the innocence of children. It’s absolutely despicable and it’s infuriating.”
Goodwin continued, “I will continue to spare no effort to make sure that the perpetrators who exploit children are brought to justice.”
Oldaker collected more than 600 pictures and videos of children having sex or performing sexual acts. The child pornography was found on Oldaker’s computer after he downloaded it from the Internet. Oldaker used the peer-to-peer file sharing program Frostwire to download, receive, and share the child pornography.
Oldaker was previously convicted in August 1999 in the Circuit Court of Barbour County, West Virginia of first degree sexual abuse.
The Federal Bureau of Investigation West Virginia Cyber Crimes Task Force, the Nitro Police Department, the Parkersburg Police Department, the Kanawha County Sheriff’s Department and the Charleston Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution. The sentence was handed down by Chief United States District Judge Robert C. Chambers in Huntington.
Since January 2012, twenty-two defendants have been convicted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Sixteen defendants have been sentenced to a total of more than 51 years (819 months, to be exact) in federal prison. The remaining six defendants currently await sentencing.
Patient Recruiter of Miami Home Health Company <br /> Sentenced to 37 Months in Prison for Role in $20 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter for a Miami health care company was sentenced today to serve 37 months in prison for his participation in a $20 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; 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.
Manuel Lozano, 65, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Lozano was sentenced to serve two years of supervised release and ordered to pay $1,851,000 in restitution, jointly and severally with co-conspirators.
In February 2013, Lozano pleaded guilty to one count of conspiracy to receive health care kickbacks.
According to court documents, Lozano was a patient recruiter who worked for Serendipity Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately April 2007 through March 2009, Lozano recruited patients for Serendipity, and in doing so he solicited and received kickbacks and bribes from the owners and operators of Serendipity in return for allowing the company to bill the Medicare program on behalf of the patients he recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
From approximately January 2006 through March 2009, Serendipity submitted approximately $20 million in claims for home health services that were not medically necessary and/or not provided, and Medicare paid approximately $14 million for these fraudulent claims. As a result of Lozano’s participation in the illegal scheme, the Medicare program was fraudulently billed more than $1 million but less than $2.5 million for purported home health care services.
In a related case, on June 21, 2012, Ariel Rodriguez and Reynaldo Navarro, the owners and operators of Serendipity, were sentenced to 73 and 74 months in prison, respectively, and ordered to pay $14 million in restitution and severally with each other and their co-defendants, Melissa Rodriguez and Ysel Salado. Ariel and Melissa Rodriguez, Navarro and Salada each pleaded guilty in March 2012 to one count conspiracy to commit health care fraud.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Olathe Man Pleads Guilty to Possessing More Than 12,000 Child Porn ImagesRead the Press Release
KANSAS CITY, KAN. – A man from Olathe, Kan., has pleaded guilty to possessing child pornography, U.S. Attorney Barry Grissom said today.
James Christmas, 45, Olathe, Kan., pleaded guilty to one count of possessing child pornography. In his plea, he admitted he possessed more than 12,000 images and 26 videos of child pornography on computer media. The investigation began in September 2010 when his estranged wife told the Olathe Police Department that she found child pornography on computer media belonging to Christmas. Investigators obtained a search warrant and found the images. The National Center for Missing and Exploited Children identified more than 1,300 images of known child victims living outside of Kansas in Christmas’ collection,
Sentencing is set for Aug. 12. Christmas faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the Olathe Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.
North Oaks Couple Sentenced for Health-Care FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Minneapolis, a North Oaks couple was sentenced for committing health-care fraud, specifically making false statements to garner, county, state, and federal benefits and assistance for their disabled children. James N. Hood, age 69, was sentenced to 42 months in federal prison and ordered to pay a $200,000 fine on one count of mail fraud, one count of health care fraud, and one count of theft of public money. His wife, Cynthia Marsalis Hood, age 55, was ordered to serve three years of probation and pay a $300,000 fine on one count of mail fraud and one count of making a false statement for use in determining rights to Social Security benefits. The couple was also ordered to pay restitution in the total amount of $483,312.82 to the agencies victimized by this crime. The Hoods were charged on October 1, 2012, and pleaded guilty on October 24, 2012.
In sentencing the couple, U.S. District Court Judge Joan N. Ericksen reiterated that this was not a victimless crime. She said these programs were meant for people in financial need, and because of the wrongdoing of the Hoods and other fraudsters, these programs could become at risk. She also said that the couple clearly knew right from wrong and took this action for their own personal gain.Following today’s sentencing, Daniel Seymour, Resident Agent in Charge of the Social Security Administration-Office of Inspector General’s (“SSA-OIG”) St. Paul Office, said, “SSA-OIG worked with federal, state, and local law enforcement partners to bring the investigation of James and Cynthia Hood to a successful conclusion. That investigation revealed that the Hoods, despite owning more than $10 million in investments, property and more, stole more than $80,000 in Supplemental Security Income (“SSI”) payments from the federal government. SSI provides a base-level, safety net income for uninsured aged, blind, or disabled individuals with very limited income or resources. The successful prosecution of this case demonstrates what can be accomplished when law enforcement partners work together to combat fraud, waste, and abuse of taxpayer dollars. SSA-OIG is gratified to see this case brought to justice, and is committed to continuing to protect SSA programs from fraud.”
The court documents on file in this case provide that during a five-year period, from January 2006 to April 2011, the couple stole approximately $400,000 in state and federal Medicaid money in addition to the $80,000 in Social Security benefits noted above. To that end, James Hood prepared false federal income tax returns that Cynthia Hood joined him in signing. Those returns were the basis of subsequent benefit applications. In addition, the couple offered false information in the benefit applications themselves, during related in-person interviews, and through income-update forms.
“Our publicly funded programs are meant to serve those in need and every dollar stolen is a dollar taken from a struggling family. Today’s sentencings send a clear message that fraud, waste, and abuse of public funds is not a victimless crime and will not be tolerated in Minnesota,” said Minnesota Department of Human Services Inspector General Jerry Kerber. “Today’s sentencings are the result of an on-going collaborative effort between federal, state, and county governments to fight fraud and abuse in health care and together we will continue to enforce the integrity of public programs.”
Following Hurricane Katrina in 2005, the Hood family, residents of New Orleans at the time, visited several states and eventually decided that Minnesota provided a high quality of life and the best health care and educational resources for their disabled children. After they moved to Minnesota, they applied for a variety of aid on behalf of those children, including, but not limited to federal Social Security supplemental income benefits, State Medical Assistance, Cost-Effective Health Insurance, and Community Alternatives for Disabled Individuals. They also obtained medical insurance assistance from Louisiana.
Eligibility for many benefit programs is based on the applicant’s disabilities and, for children, the parents’ income and resources as well as their financial contributions. To receive Social Security Supplemental Security Income benefits, for example, a single applicant cannot own more than $2,000 in income and assets, excluding a house and vehicle. To secure benefits for themselves, the Hoods falsified government documents and lied to government officials.Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health and Human Services-Office of Inspector General for the region that includes Minnesota, said of the case, “The Hoods seem to have forgotten that Medicaid exists for the country’s most needy citizens, not to enrich those who have achieved financial security. We will continue to work with our federal, state, and local law enforcement partners to ensure that these health care dollars are protected, and criminals who would defraud taxpayers are held accountable.”
During all times relevant to this case, James Hood was the sole heir to family estates and held substantial stock in AT&T, General Electric, and Exxon Mobil, among other companies. His dividend income totaled as much as $156,000 in a given year. He also maintained more than 65 bank accounts, which netted up to $183,000 in interest income annually. Moreover, he owned Iowa farmland and received farm-related payments from the U.S. Department of Agriculture’s Farm Service Agency as well as the State of Iowa. In 2005, the farm yielded Hood income of $187,910.98, but no farm-related values or incomes were reported in his benefit applications or income updates. Likewise, he failed to disclose significant financial gifts received from family trusts. During much of this time, James Hood also served as a professor at Tulane University.
Yet, in 2005, the couple applied for Medical Assistance and, in their application, listed only James Hood’s teaching salary and a small amount of dividend income. Moreover, when they applied for health insurance assistance, they failed to disclose that they were simultaneously seeking and receiving insurance assistance from the State of Louisiana.
In addition, Cynthia Hood repeatedly made false statements to the SSA in support of her children’s continued eligibility for Social Security Supplemental Security Income. Specifically, in 2006, she stated that her husband lived in Louisiana. She falsely reported that she did not own any homes, vehicles, stocks, bonds, or property. And she reported that she only had one bank account with a balance of $1,400. In fact, at the time, Cynthia Hood held at least 16 bank accounts jointly with James Hood. Later, she reported to the SSA that her Minnesota household only consisted of herself and her three children, claiming her husband lived in Iowa. In truth, her husband was living with her and financially supported the household.
In 2007, the couple submitted a renewal application with the Minnesota Health Care Program, which stated that James Hood was on unpaid leave from Tulane. In that document, the only income indicated was the children’s Social Security disability benefits. Similar statements were also made thereafter.
Ramsey County Attorney John Choi said, “I am grateful for the hard work that my staff put into investigating and confirming the facts of this case prior to handing it onto the U.S. Attorney’s Office. We take fraud very seriously and are especially thankful for the cooperative working relationship with the (Minnesota) Department of Human Services in this investigation.”
This case was the result of an investigation by the SSA-OIG, the U.S. Department of Health and Human Services’ Office of Inspector General, the Minnesota Department of Human Services’ Office of Inspector General, and the Ramsey County Attorney’s Office. It was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.Niagara Falls Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Wally Reynolds, 37, of Niagara Falls, N.Y., who was convicted of conspiring to possess and distribute more than 100 kilograms of marijuana, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between June 2004 and February 2010, the defendant managed and supervised other individuals in distributing marijuana that was imported from Canada into the United States. During the execution of a search warrant at Reynolds’ residence, law enforcement officers recovered marijuana and drug paraphernalia. At that time, the defendant told officers that he was laid off from his former employment with the City of Niagara Falls and made money by selling marijuana.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, with the assistance of other U.S. and Canadian members of the Border Enforcement Security Task Force.
New York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Terry Bain from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on May 3, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Bain in February 1994. Judge Bain received a bachelor of arts degree in 1973 from George Washington University, and a juris doctorate in 1980 from Brooklyn Law School. From 1986 to 1994, she worked as an attorney for Whitman, Breed, Abbott & Morgan in New York. From 1981 to 1986, she worked in private practice with Barst & Mukamal in New York. Judge Bain is a member of the New York State Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewMission Man Sentenced on Firearm ConvictionRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on May 6, 2013, by U.S. District Judge Roberto A. Lange. Gary Joe Emery, age 27, was sentenced to 5 months in custody, 5 months of supervised release, and $100 to the Federal Crime Victims Fund.
Emery was indicted by a federal grand jury on September 19, 2012, and pled guilty to the charge on February 6, 2013.
On April 13, 2009, Emery was convicted of a felony in United States District Court – District of South Dakota. On June 10, 2012, Emery possessed a firearm at his residence in Todd County, South Dakota.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Emery was remanded to the custody of the U.S. Marshal.
Michael D. Brumfield Indicted for Possession with Intent to Distribute CocaineRead the Press Release
MICHAEL D. BRUMFIELD, age 45, a resident of Hammond, Louisiana, was charged in a one-count indictment filed May 3, 2013 for possession with intent to distribute cocaine, a Schedule II narcotic drug controlled substance, announced U. S. Attorney Dana J. Boente. The defendant was arrested this morning.
According to court records, on or about April 10, 2013, BRUMFIELD did knowingly and intentionally possess with the intent to distribute a quantity of cocaine hydrochloride.
If convicted, BRUMFIELD faces a maximum term of imprisonment of twenty years, a $1,000,000 fine, three years of supervised release following any term of imprisonment, and a $100 special assessment.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Hammond Police Department and the Drug Enforcement Administration Task Force. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
(Download Indictment )
Martin Woman Sentenced for Distribution of MorphineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Martin woman convicted of Distribution of a Controlled Substance was sentenced on April 29, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court. Tillie Dawn Dubray, age 43, was sentenced to 1 year of probation, a $250 fine, and a $100 special assessment to the Federal Crime Victims Fund.
On January 31, 2012, Dubray illegally distributed morphine in Martin, South DakotaDubray pleaded guilty to the charge on November 29, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Martin Man Sentenced for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Martin man convicted of conspiracy to distribute a controlled substance was sentenced on April 16, 2013, by Chief U.S. District Judge Jeffrey L. Viken. Grover Lee Horned Antelope, age 40, was sentenced to 60 months’ imprisonment, 4 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
In October 2008, Horned Antelope conspired to distribute one pound of marijuana on the Pine Ridge Indian Reservation. Horned Antelope pleaded guilty to the charge on December 3, 2012.
This case was investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Horned Antelope remains in the custody of the U.S. Marshal.
Manhattan U.S. Attorney and U.S. Immigration and Customs Director Announce Return to Mongolia of Tyrannosaurus Bataar SkeletonRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and John Morton, Director of the U.S. Immigration and Customs Enforcement (“ICE”), announced today the return to the Mongolian government of a nearly complete Tyrannosaurus bataar skeleton (the “Bataar”) that was unlawfully taken from Mongolia.
Manhattan U.S. Attorney Preet Bharara stated: “Almost one year ago this Tyrannosaurus bataar was offered for sale at a New York City auction for over $1,000,000, but as we now know, that attempted sale was part of a criminal scheme. And now, one year later, we are very pleased to have played a pivotal role in returning Mongolia’s million dollar baby. Of course, that million dollar price tag – as high as it is – doesn’t begin to describe the true value of an ancient artifact that is part of the fabric of a country’s natural history and cultural heritage –
priceless. And we are prouder still to be playing a key role in returning almost a score more fossils to the people of Mongolia in the near future.”
ICE Director John Morton stated: “This is one of the most important repatriations of fossils in recent years. We cannot allow the greed of a few looters and schemers to trump the cultural interests of an entire nation. Through this case, HSI special agents have once again proven themselves to be the leading federal law enforcement experts in the investigation and forfeiture of stolen foreign art, antiquities and relics. Because of the collaborative effort between ICE-HSI and the U.S. Attorney’s Office, we undo a great wrong by returning this priceless dinosaur skeleton to the people of Mongolia.”
According to the civil forfeiture and criminal Complaints, the Information, plea agreement, and other court documents filed in Manhattan federal court:
The Tyrannosaurus bataar, indigenous to what is now Mongolia, was a dinosaur from the late Cretaceous period, approximately 70 million years ago. It was first discovered in 1946 during a joint Soviet-Mongolian expedition to the Gobi Desert in the Mongolian Ömnögovi Province. Mongolian law enacted in 1924 declares dinosaur fossils to be the property of the Government of Mongolia, and criminalizes their export from the country.
On March 27, 2010, the Bataar skeleton was imported into the United States from Great Britain. The customs importation documents contained several false statements. First, the country of origin of the Bataar skeleton was erroneously listed as Great Britain when, according to several paleontologists, Tyrannosaurus bataars have only been recovered in Mongolia. In addition, the Bataar skeleton was substantially undervalued on the importation documents. The customs importation forms listed its value as $15,000, in contrast to the $950,000 - $1,500,000 price listed in a 2012 auction catalog, and the actual auction sale price of $1,052,500. Finally, the Bataar skeleton was incorrectly described on the customs importation documents as two large rough fossil reptile heads, six boxes of broken fossil bones, three rough fossil reptiles, one fossil lizard, three rough fossil reptiles, and one fossil reptile skull.
Texas-based Heritage Auctions, Inc., offered for sale the Bataar skeleton at an auction conducted in New York City. Prior to the sale, the Government of Mongolia sought, and was granted, a Temporary Restraining Order prohibiting the auctioning, sale, release or transfer of the Tyrannosaurus Bataar Skeleton by a Texas State District Judge. Notwithstanding the state court order, Heritage Auctions completed the auction and the Tyrannosaurus Bataar Skeleton sold for over $1 million. However, the sale was contingent upon the outcome of any court proceedings instituted on behalf of the Mongolian Government.
On May 22, 2012, the President of Mongolia, Tsakhia Elbegdorj sent a letter to the United States Attorney’s Office for the Southern District of New York formally requesting the Office’s “assistance in preserving Mongolia’s cultural heritage in this rare national treasure by . . . seeking forfeiture of . . . the Tyrannosaurus bataar skeleton.”
On June 5, 2012, at the request of the President of Mongolia, several paleontologists specializing in Tyrannosaurus bataars examined the Bataar skeleton and concluded that it is in fact a Tyrannosaurus bataar skeleton that was unearthed from the western Gobi Desert in Mongolia between 1995 and 2005. Shortly thereafter, on June 18, 2012, the United States Attorney’s Office filed a civil action seeking the forfeiture of the Bataar skeleton and the District Court issued a warrant authorizing ICE’s Homeland Security Investigations (HSI) to seize the Bataar skeleton.
On September 24, 2012, the United States Attorney’s Office filed an amended civil forfeiture Complaint which included the original paleontological reports as well as additional reports from those same paleontologists and other paleontologists. The additional reports definitively state that given the particularized coloring of the bones of the Bataar skeleton there is no doubt that the Bataar skeleton came from Mongolia.
On October 17, 2012, Eric Prokopi, the importer of the Bataar skeleton was arrested on one count of conspiracy to smuggle illegal goods, possess stolen property, and make false statements, one count of smuggling goods into the United States, and one count of interstate sale and receipt of stolen goods. The charges stemmed from Prokopi’s illegal importation of the Bataar and other dinosaur fossils into the United States. Shortly after his arrest, on December 27, 2012, Prokopi pled guilty to engaging in a scheme to illegally import the fossilized remains of numerous dinosaurs that had been taken out of their native countries illegally and smuggled into the United States. As part of his plea agreement, Prokopi consented to the forfeiture of the Bataar skeleton. Prokopi also agreed to forfeit a second nearly complete Tyrannosaurus bataar skeleton, a Saurolophus skeleton, and an Oviraptor skeleton, all of which had been in his possession but have since been recovered by the U.S. Attorney’s Office. He further agreed to forfeit his interest in a third Tyrannosaurus bataar skeleton which was located in Great Britain.
On February 14, 2013, U.S. District Judge P. Kevin Castel entered a judgment forfeiting the Bataar skeleton to the United States of America for its return to Mongolia.
Mr. Bharara praised the investigative work of ICE-HSI. He also thanked Mongolian authorities for their assistance in the case.
The President of Mongolia, Tsakhia Elbegdorj, stated: “I join the people of Mongolia in thanking the special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations units in New York, Florida, California, Ohio and Wyoming for their exceptional work and expertise and for their cooperation with the Mongolian State Investigation and Criminal Investigation Authorities. I am deeply grateful to the office of the U.S. Attorney for the Southern District of New York for their wise leadership and legal expertise in this overall effort. I also commend the Society of Vertebrate Paleontology, lawyers, judges and volunteers for their role in this case. Our two countries are separated by many miles, but share a passion for justice and a commitment to putting an end to illegal smuggling.”
The forfeiture action was handled by the Asset Forfeiture Unit of the U.S. Attorney’s Office. Assistant U.S. Attorneys Sharon Cohen Levin and Martin S. Bell were in charge of the litigation. The criminal case was handled by the Complex Frauds Unit. Martin S. Bell was in charge of the prosecution.
Leesburg Man Arrested for Conspiracy to Distribute Oxycodone Resulting in DeathRead the Press Release
ALEXANDRIA, Va. – George Washington Crane, V, 47, of Leesburg, Va., was arrested on Friday, and made his initial appearance in court today, on charges of conspiracy to distribute Oxycodone resulting in the 2010 death of a young Loudoun County man.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Michael L. Chapman, Sheriff of Loudon County, made the announcement after Crane’s initial appearance today before United States Magistrate Judge T. Rawles Jones, Jr.
Crane faces a mandatory minimum sentence of twenty years and a maximum penalty of life imprisonment, if convicted.
According to court documents and proceedings held today, Crane allegedly purchased Oxycodone from sources in Washington, D.C. from 2006 through 2012. According to the affidavit filed in support of the criminal complaint, Crane primarily distributed that Oxycodone to individuals in Western Loudoun County, Va.
On August 8, 2010, a 20 year old Loudoun County man died from an Oxycodone overdose at his home. This young man had left a drug rehabilitation facility just one day earlier. The criminal complaint alleges that Crane sold the Oxycodone, through an intermediary, that ultimately resulted in the victim’s death from overdose.
The investigation is being conducted by FBI’s Washington Field Office and the Loudoun County Sherriff’s Office. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
# # #Kyle Woman Pleads Guilty to Conspiracy to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that Stephanie Standing Soldier, age 37, of Kyle, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on April 30, 2013, and pleaded guilty to conspiracy to distribute a controlled substance. The Magistrate Judge is expected to recommend Standing Soldier’s plea be accepted by the District Court. The penalty upon conviction is a minimum of 5 years up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge relates to Standing Soldier conspiring with others to distribute at least 100 kilograms or more of marijuana in South Dakota between 2008 and 2012. The investigation was conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and the Bureau of Indian Affairs, Office of Justice Services. The case is being prosecuted by Assistant United States Attorney Ted L. McBride.
The defendant was released on bond pending acceptance of this plea and sentencing.
Justice Department to Monitor Elections in Mississippi and South CarolinaRead the Press Release
The Justice Department announced today that it will monitor elections on May 7, 2013, in the towns of Clarksdale, Como and Ruleville, Miss., and in Charleston County, S.C., to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the attorney general or by a federal court order. Federal observers will be assigned to monitor polling place activities in Clarksdale, Como and Ruleville based on the attorney general’s certification. The observers will watch and record activities during voting hours at polling locations, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor polling place activities in Charleston County. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Jimmy Rollins Sentenced to 300 Months in Prison for Production of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – Jimmy Rollins, 45, of Palmer, Tenn., was sentenced to serve 300 months in federal prison, five years supervised release and a $100 special assessment, by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Rollins pleaded guilty in February 2013 to production of child pornography.
In February 2012, an undercover investigation by the Winchester Police Department identified Rollins as a person who used the internet to traffic in pornographic images of children. A search of his home in May 2012 revealed equipment used in the production of child pornography and multiple photographic images and videos of Rollins engaged in sexual activity with a known minor. All the child pornographic scenes were set in a bedroom that can be recognized as belonging to Rollins. Rollins had been previously convicted in 1994 of two counts of statutory rape in the Criminal Circuit Court of Grundy County, Tenn.
The indictment and subsequent conviction of Rollins was the result of an investigation conducted by the Winchester Police Department, Tennessee Bureau of Investigation and Federal Bureau of Investigation. Assistant U.S. Attorney John P. MacCoon represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jefferson City Woman Pleads Guilty to Attempted Jail EscapeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., woman pleaded guilty in federal court today to her role in a conspiracy to help an inmate at the Morgan County jail in an unsuccessful escape attempt.
Amanda Leigh Lesh, 35, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a Dec. 13, 2012 federal indictment.
By pleading guilty today, Lesh admitted that she smuggled a hacksaw blade into the cell shared by Mitchell Atterberry, who was being held in the jail on federal charges related to distributing methamphetamine. Atterberry’s cellmate, Steven Pyykola of Springfield, was also part of the escape attempt. Pyykola was convicted of three state murder charges and is serving three consecutive life sentences without parole.
Sheriff’s deputies received a tip on Nov. 14, 2012 and searched Atterberry’s cell. They found that the window had been damaged. The metal support beam had been cut most of the way through. They also found a 10-inch saw blade in the mat on the top bunk of the cell and a smaller two-inch saw blade that appeared to have broken off the larger blade.
Authorities reviewed telephone calls that Atterberry and Pyykola made to Lesh, in which they asked her to purchase saw blades and deliver them to the jail underneath their second story window. Atterberry and Pyykola would then slide a string out of a hole that had been made in the window to the ground where Lesh would tie on the items and they would pull them up and in through the window. Lesh also made references to picking up the two after the escape and buying them clothes to wear.
On Nov. 13, 2012, Atterberry told Lesh in a recorded telephone conversation that they “worked on it late last night, couldn’t get it done” and in a later call that day said they hoped to get it done “by tonight.” The next day, authorities received the tip about the escape plans.
Under federal statutes, Lesh is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Steven R. Berry. It was investigated by the Morgan County, Mo., Sheriff’s Department, the U.S. Marshal’s Service and the DEA.
Four Defendants Sentenced to Prison Terms Between Five and 10 Years in Three Investment Fraud SchemesRead the Press Release
CHICAGO — Four defendants who swindled investors out of millions of dollars in three separate Ponzi fraud schemes were each sentenced to federal prison terms between 5 and 10 years and ordered to pay full restitution to their victims. The cases demonstrate that federal law enforcement agencies continue to safeguard investors from individuals who solicit, obtain and use other people’s money illegally. Two of the three cases resulted from investigations by law enforcement agencies and financial market regulators. One defendant reported himself to investigators as his fraud scheme was collapsing.
The defendants and their sentences last week in U.S. District Court were:
MICHAEL MORAWSKI, 56, of Sleepy Hollow, was sentenced to 10 years in prison, and his co-defendant, FRANK CONSTANT, 59, of West Dundee, was sentenced to 7½ years in prison, and both were ordered to pay more than $18 million in restitution for defrauding 267 victims;
JAMES BRANDOLINO, 44, formerly of Joliet and Chicago, was sentenced to just under nine years in prison and ordered to pay more than $3.8 million in restitution for defrauding more than 50 investors; and
CHRISTOPHER VARLESI, 54, of Chicago, was sentenced to five years in prison and ordered to pay $638,227 in restitution for defrauding approximately 15 investors.
In each case, many of the victims lost their life savings, including retirement money and college funds, as well as suffered emotional hardship. Each of the defendants benefitted personally, as well as used some investors’ funds to pay back earlier investors to keep their fraud schemes from collapsing.
United States v. Morawski and Constant
Morawski pleaded guilty to two counts of mail fraud in September 2012 and was sentenced to 10 years in prison by U.S. District Judge Gary Feinerman, who imposed the sentence last Tuesday. Constant pleaded guilty to one count of wire fraud and was sentenced to 90 months in prison by Judge Feinerman on Thursday. Both men were ordered to pay $18,211,547 in restitution and to begin serving their sentences on July 15, 2013.
“Mr. Morawski must be punished for the lies and fraud he perpetrated and the way in which he conducted business when it became clear that things were not going well. At the time when people get into situations when businesses go south, it is at that time there has to be the most deterrence,” Judge Feinerman said.
In sentencing Constant, the judge said: “The sentence should send a signal to people in positions of trust that truth has to be told in good time and bad. It’s important to investors to know when thing go well, but what Constant did was deprive the investors of full information to make an informed choice.”
Between 2006 and 2010, Morawski and Constant fraudulently obtained approximately $21 million and caused 267 investors to lose more than $18 million. After forming a real estate investment company, Michael Franks, LLC, in Palatine, and several related businesses, they misused the money they raised for their own benefit and to make Ponzi-type payments to earlier investors.
Michael Franks offered investors passive ownership in multi-family residential properties, including apartment buildings in Illinois, Texas and Alabama. Morawski and Constant offered two types of investments to the public: one was an investment in acquiring, improving and operating specific apartment complexes for a period of three to five years, and investors were typically told they would earn between seven and nine percent interest annually, and potentially more upon the sale of the property; the second was an investment in real estatebased “funds” that would provide an interest in various properties backed by promissory notes, often offering an annual interest payment of between 8 and 30 percent per year.
Certain real estate projects undertaken by Michael Franks performed poorly and failed to generate enough revenue to meet operating expenses. The defendants began transferring funds from various investments to support poorly-performing projects and to pay earlier investors, without disclosing this information. At the same time, they misused investor funds to pay employees, to make commission payments to individuals who raised new funds, and to pay themselves, as well as to make payments for Constant’s company car and country club payments, and to extend loans to friends of Morawski, who pocketed nearly $1 million for himself.
The government was represented by Assistant U.S. Attorney Sunil Harjani. The investigation was conducted by the FBI.
United States v. Brandol
Brandolino pleaded guilty to mail fraud in August 2011 and was sentenced to 107 months in prison and ordered to pay $3,865,484 in restitution by U.S. District Judge Elaine Bucklo, who imposed the sentenced last Thursday. Brandolino has been in custody since January 2011 when he turned himself in after a seven-year investment fraud scheme in which he swindled more than 50 investors out of $3.75 million. He agreed to being ordered to pay additional restitution of $128,576 to managed account holders who suffered trading losses.
Between 2003 and January 2011, Brandolino solicited approximately $4.8 million from about 60 investors, many of them family and friends. He lured investors with promises of healthy returns and principal safety, and he fabricated account statements showing steady gains, convincing investors to keep their money with him and to invest additional funds.
Of the funds he fraudulently obtained, Brandolino lost approximately $850,000 through unsuccessful futures trading and used approximately $1.4 million to pay principal and purported profit returns to existing pool participants, including more than $300,000 he paid to investors in excess of their investments. He also misappropriated more than $2 million for himself and used the money to purchase such items as a luxury BMW, a Rolex watch, and a piano.
Brandolino held various National Futures Association registrations in the commodities brokerage business, with exchange floor trading privileges at the Chicago Board of Trade, now part of the CME Group. He was also a principal of several commodities trading businesses, including Brandolino Investment Group, Lloyd Lewis Capital, Inc., Falcon Trading Group, Inc., and Falcon Capital Partners LLC.
The government was represented by Assistant U.S. Attorney Samuel B. Cole. The investigation was conducted by the FBI and the U.S. Postal Inspection Service. The Commodity Futures Trading Commission assisted in the investigation.
United States v. Varlesi
Varlesi pleaded guilty to wire fraud in December 2012 and was ordered to surrender on June 17, 2013, by U.S. District Judge Ruben Castillo, who imposed the five-year sentence last Wednesday. Varlesi engaged in a Ponzi scheme while purporting to operate a company called Gold Coast Futures and Forex, an investment trading pool. Between July 2008 and January 2012, he fraudulently obtained more than $1.5 million from approximately 18 investors, including friends, friends of friends, and family members. Neither Varlesi nor Gold Coast held any license or registration related to trading securities or commodities or operating a commodity trading pool.
Varlesi misappropriated a substantial portion of investor funds for his own benefit, including misusing more than $120,000 to pay for a year’s rent for an apartment in the Trump International Hotel & Tower in Chicago, as well as to make Ponzi-type payments to other investors.
Trading only a small portion of the money he received from investors, Varlesi made false representations about using clients’ money to trade gold, commodity futures, and foreign currency, the expected return on their investments, and the security of their money. He concealed the scheme by creating and distributing false account statements, and also told clients that their investments were guaranteed to be profitable, with no risk of losing principal. He provided promissory notes to certain investors, falsely promising to return the entire principal amount of their investment, as well as guaranteed interest ranging between 5 to 7.5 percent per month.
The government was represented by Assistant U.S. Attorney Sarah E. Streicker. The investigation was conducted by the FBI and the Illinois Securities Department. The Commodity Futures Trading Commission assisted in the investigation.
The sentences were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Pete Zegarac, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The investigations fall under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring 5 to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov.
Former Maryland National Guard Employee at Aberdeen Proving Ground Sentenced to Prison for Fraud Scheme with Losses of over $107,000Read the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Lynn Carol Williams, age 56, of Middle River, Maryland today to six months in prison, followed by six months of home detention with electronic monitoring as part of three years of supervised release, for wire fraud in connection with a scheme to misuse the Freestate Challenge Academy corporate purchasing card, causing losses of more than $107,000. Freestate Challenge Academy is a Maryland National Guard program located at Aberdeen Proving Ground. Judge Bennett also ordered Williams to pay restitution of $107,493.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office and Chief Chip Honan of the Aberdeen Proving Ground Police Department.
According to her plea agreement, from October 2007, through February 2011, Williams worked as an administrative aide at Freestate Challenge Academy, located at Aberdeen Proving Ground. Williams was authorized to use the Academy’s corporate credit card to make purchases for the Academy, and was required to prepare a monthly expense report, which included the purchasing card billing statement, original receipts, copies of the approved requisition forms, and a log of activity on the purchasing card. Once her supervisor approved the expense report, it was forwarded to the State of Maryland Military Department, which paid the account balance on the corporate purchasing card.Williams admitted that from February 2008, through October 2010, she used the corporate credit card to buy gift cards and to purchase items over the internet for her personal use. For example, on May 18, 2010, Williams used the corporate credit card to purchase six gift cards, which she then used to pay for two airline tickets for her and a friend to travel to Los Angeles, California. To conceal her fraud, Williams prepared false logs of the card activity and used her work computer to prepare fictitious receipts, to give the impression she was using the card to make legitimate purchases on behalf of the program, such as for office supplies, snacks for program participants and other legitimate items.
United States Attorney Rod J. Rosenstein praised the FBI, Defense Criminal Investigative Service and Aberdeen Proving Ground Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.Former Hillsborough County Real Estate Director Sentenced for Mortgage FraudRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich sentenced Anthony Haynes (54, Seffner) today to one year and one day of imprisonment on two counts of wire fraud in connection with a fraudulent mortgage scheme. A restitution and forfeiture money judgment order was also entered in the amount of $940,498, the total proceeds of the fraud. Haynes pleaded guilty on January 13, 2013.
According to the plea agreement, Haynes, who was employed as the real estate services director for Hillsborough County Board of County Commissioners, made material misrepresentations in connection with loan applications and closing documents for two personal mortgages. The mortgages were for his purchase of nine land lots located in Tennessee. The mortgages were funded by interstate wires from a federally insured bank, and the closing was conducted by mail.
This case was investigated by Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Former Drug Cartel Member Convicted of Drug Trafficking Conspiracy and Money LaunderingRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Miguel A. Lavenant, age 38, of San Diego, California, was convicted by a federal jury of conspiring to distribute and to possess with the intent to distribute five (5) kilograms or more of cocaine. The jury also convicted Lavenant of three counts of money laundering. For his convictions, Lavenant faces a maximum sentence of life imprisonment, with a mandatory minimum sentence of ten years imprisonment. Sentencing is scheduled for August 16, 2013, at 1:00 p.m.
At trial, the United States established that Lavenant shipped over 50 kilograms of cocaine from San Diego to the East Coast. Some of the cocaine for which Lavenant was responsible was later distributed in the State of Delaware. Lavenant’s customers on the East Coast, including in Delaware, paid for their cocaine by making large-scale cash deposits into different bank accounts that Lavenant controlled.
Lavenant is a former enforcer and drug smuggler for the Arellano-Felix Organization (“AFO”) – a drug trafficking cartel based in Tijuana, Mexico. He was featured prominently in a National Geographic Documentary, “Tijuana Drug Lords,” in which he discussed his role in the AFO.
Regarding the convictions, United States Attorney Oberly said, “I commend the DEA offices in Delaware and San Diego, Homeland Security Investigations, the Internal Revenue Service Criminal Investigative Division, the Wilmington Police Department, the Newark (DE) Police Department, and the California Department of Justice for their collaborative efforts in dismantling a major drug source whose cocaine made it to the streets of Wilmington. This investigation shows our Office’s commitment to prosecute drug dealers who have a negative impact on Delaware, regardless of where they reside.”
The case was investigated by the Drug Enforcement Administration, Department of Homeland Security – Homeland Security Investigations, and the Internal Revenue Service Criminal Investigative Division. The case was prosecuted by Assistant United States Attorneys Robert F. Kravetz and Jennifer L. Hall.
Former CEO of Newport News Investment Firm Convicted of FraudRead the Press Release
NEWPORT NEWS, Va. – Jeffrey A. Martinovich, 46, of Norfolk, Va., was convicted today by a federal jury for his involvement in fraud related to the mismanagement of a Newport News-based hedge fund. Specifically, he was convicted of conspiracy to commit mail and wire fraud, four counts of wire fraud, five counts of mail fraud, and seven counts of unlawful monetary transactions.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Tom Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement today after the verdict was accepted by United States District Judge Robert G. Doumar. Martinovich faces a maximum penalty of 20 years in prison for each conviction when he is sentenced on August 7, 2013.
“As a hedge fund manager, Martinovich promised investors that he would act in their best interest in managing their hard earned money,” said U.S. Attorney MacBride. “Instead, Martinovich acted solely in his own self-interest and engaged in financial sleight of hand to fraudulently maximize his management fees. His conviction should send a strong message that fraudsters who violate the trust of the investing public will be brought to justice.”
Martinovich was indicted on October 10, 2012, on 26 charges of mail fraud, wire fraud, unlawful monetary transactions, and bankruptcy fraud. According to court records and evidence at trial, Martinovich was the CEO of MICG Investment, LLC, an investment firm based in Newport News, Virginia. In 2007, Martinovich started three hedge funds through MICG and began seeking investments. Acting on behalf of MICG, Martinovich purchased approximately two million shares of a privately traded solar energy company for the MICG Venture Strategies, LLC hedge fund. At the end of each calendar year, in order to calculate the management and incentive fees he had earned as hedge fund manager, Martinovich needed to obtain an estimate of the value of the solar company shares held by Venture Strategies. Because the solar company was not publicly traded, MICG was required to seek an independent, external, valuation of the company’s worth when calculating the management and incentive fees to be paid.
In 2008, under the guise of seeking an independent valuation, Martinovich and others fraudulently inflated the value of the solar company to falsely indicate an increase in the overall value of the hedge fund. Martinovich then used this fraudulent, unsupported, and inflated value of the solar company to convince new investors to invest in Venture Strategies, as well as to pay himself greater fees. The solar company eventually declared bankruptcy, resulting in serious financial problems for many Venture Strategies investors who had collectively invested over 1.5 million dollars.
This case was investigated by the Internal Revenue Service Criminal Investigations Division and the Federal Bureau of Investigation, with the assistance of the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Virginia State Corporation Commission. Assistant United States Attorneys Brian J. Samuels and V. Kathleen Dougherty prosecuted this case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
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