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26 April 2013
Operator of Illegal Alien Employment Business in Scranton Sentenced in Federal CourtRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an operator of an illegal alien employment business in Scranton was sentenced Thursday in federal court before Senior U.S. District Court Judge A. Richard Caputo.
Rama Putra, age 32, residing in Scranton, was sentenced to 12 months’ imprisonment. Putra also faces possible deportation.
According to United States Attorney Peter J. Smith, Putra engaged in a conspiracy to promote and conceal the profits of a temporary employment agency known as “H&Y Staffing, Inc.” operating out of a Scranton address which recruited, employed, and transported an illegal work force. “H&Y Staffing, Inc.” provided dozens of illegal temporary employees to businesses in the Scranton area over a period of several years. Putra, in furtherance of the conspiracy, allegedly provided transportation for the illegal workers, paid the illegal work force in cash on a weekly basis, and cashed checks from local businesses at check cashing services located in Philadelphia as part of the scheme to conceal and promote the underlying criminal activity.
Putra was indicted in October 2012 and pleaded guilty in January 2013 to conspiracy to commit money laundering and the employment and transportation of illegal aliens.
The case was investigated by the U.S. Department of Homeland Security - Immigration and Customs Enforcement and the Pennsylvania State Police.
Prosecution was assigned to Assistant United States Attorney Michelle Olshefski.
Omaha Woman Sentenced to 71 Months in Prison for Distributing MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Lori A. Schories of Omaha, Nebraska, was sentenced on April 26, 2013, to 71 months in prison by United States District Judge Richard G. Kopf. Schories had previously pled guilty for her involvement in a conspiracy to distribute methamphetamine, including sales of methamphetamine to a cooperating witness and an undercover officer, in August of 2012. After serving her sentence, Schories will be required to serve a Term of Supervised Release of 4 years.
This case was the result of an investigation by the Sarpy County Sheriff’s Office.
Oklahoma Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Stang, Oklahoma man charged with Failure to Pay Legal Child Support was sentenced on April 23, 2013 by U.S. District Judge Charles B. Kornmann.
Rodney L. Bolin, age 38, was sentenced to time served, 1 year of unsupervised probation, a $100.00 special assessment to the Federal Crime Victims Fund and child support restitution in the amount of $49,213.50.
On June 5, 2012 Bolin was indicted by a federal grand jury for failing to pay over $42,693.00 in past due child support. Bolin was previously ordered by the Sisseton-Wahpeton Oyate Court, Lake Traverse Indian Reservation to pay $600.00 per month for his minor children, commencing June 1, 2003. He made a payment in March of 2012, but prior to that date, he had not made a child support payment since September of 2009. At the time of indictment, the total arrearage amount was $42,693.48. He pled guilty to the charge on April 23, 2013.
This case was investigated the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
Ocala Career Offender Sentenced to More Than 21 Years in Prison for Firearms CrimesRead the Press Release
Ocala, Florida - Senior U.S. District Judge William Terrell Hodges sentenced Joseph Jerome Smith (32, Ocala) yesterday to 21 years and ten months in federal prison for possessing a firearm as a convicted felon and for possessing a firearm in furtherance of a drug trafficking crime. Smith pleaded guilty on February 14, 2013.
According to court documents, on May 21, 2012, the Marion County Sheriff's Office executed a search warrant at Smith's Ocala residence and found him to be in possession of a distribution amount of cocaine, drug trafficking equipment, and multiple loaded firearms, including two 9 mm pistols. Following this incident, a federal arrest warrant was issued for Smith. On September 18, 2012, a special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and members of the U.S. Marshals Fugitive Task Force arrested Smith as he was seated in a vehicle at an Ocala convenience store parking lot. At the time of his arrest, Smith was in possession of another loaded 9 mm pistol with an obliterated serial number.
Smith has multiple prior felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law. At his sentencing, Smith was found to be a career offender under the federal sentencing guidelines.
This case was investigated by the ATF, with assistance from the Marion County Sheriff's Office and the U.S. Marshals Service. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
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.
New York Businessman Pleads Guilty to Tax CrimesRead the Press Release
Antonio Morales, a resident of Brooklyn, N.Y., pleaded guilty today in U.S. District Court in the Eastern District of New York to aiding in the preparation of a false federal tax return, the Justice Department and Internal Revenue Service (IRS) announced.
According to court records and admissions made by the defendant in court today, Morales owned T&R Environment Corp., a construction and sanitation business located in Brooklyn. Morales cashed T&R’s business checks at a check casher and falsely informed his return preparer that T&R was an inactive company. Morales then filed four false corporate income tax returns for tax years 2004 through 2007 that reported no gross receipts for T&R even though T&R generated gross revenue of at least $472,337 during that four year period. Morales admitted that his failure to report T&R’s gross receipts caused a tax loss to the IRS approximating $160,593.
Morales faces a potential maximum sentence of three years in prison and a maximum fine of $250,000. A sentencing date has not been set.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.
Milton Man Sentenced to 17 Years for Orchestrating Large Ponzi Scheme and Massive Mail FraudRead the Press Release
Boston – On April 25, a Milton man was sentenced to 17 years in federal prison for orchestrating a large Ponzi scheme through his securities company, and for defrauding customers of millions of dollars by selling coins at inflated prices.
On October 2, 2012, Arnett L. Waters, 63, pleaded guilty to two counts of criminal contempt. On November 29, 2012, he also pleaded guilty to seven counts of securities fraud, six counts of mail fraud, two counts of money laundering, and one count of obstruction of justice. In addition to the prison term, United States District Judge Denise J. Casper sentenced Waters to three years of supervised release, as well as restitution and forfeiture in the amounts of over $9 million.
U.S. Attorney Carmen M. Ortiz said, “The personal nature of this fraud, the effort and calculation necessary to carry it out, and the defendant’s utter disregard for his victims and the law, makes this one of the most serious white collar cases in Massachusetts in recent memory. This crime, while not violent, had a profound and direct impact on the lives of victims who lost life savings, retirement money, funds for college educations, and funds meant for the benefit of the defendant’s own church.”
From 2007 through 2012, Waters obtained roughly $839,000 from various investors by selling units in sham investment partnerships. He spent most of the investors' funds on personal and business expenses. Waters lulled investors into a false sense of security by telling them that their investments had generated substantial profits which would be paid to them in the near future.
In April 2012, Waters was interviewed as part of an examination United States Securities and Exchange Commission of his securities business. During the interview, Waters falsely told examiners that no one had invested in his investment partnerships.
In addition, between 2002 and 2012, Waters defrauded coin customers and obtained millions of dollars by selling coins at inflated prices. Waters convinced customers to buy coins at prices that, on average, represented a 600% mark-up from market value of the coins. Waters also induced coin purchasers to return coins to him, on the false pretense that he would sell those coins on their behalf. Waters convinced one victim, who had paid Waters over $7 million for coins, to further pay him over half a million dollars for fees purportedly related to the sale and storage of the coins. In fact, Waters had already sold most or all of the coins and had used the proceeds for his own personal and business expenses.Waters also engaged in criminal contempt when he maintained a hidden bank account in violation of the asset freeze order in a civil fraud case brought against him by the SEC. From the time the freeze order was entered in May 2012 through mid-July 2012, Waters deposited approximately $172,000 in proceeds from his mail fraud and dissipated approximately $152,000.
U.S. Attorney Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office appreciates the cooperation received from the United States Securities and Exchange Commission. This matter came to the attention of authorities through the Financial Industry Regulatory Authority. The case is being prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Economic Crimes Unit. The forfeiture matters are being handled by Assistant U.S. Attorney Veronica M. Lei.
Mansfield Man Indicted for Theft of $1 MillionRead the Press Release
A Mansfield man was indicted on charges that he embezzled more than $1 million from an customer annuity accounts at an insurance company where he worked, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Willard C. Lee, age 51, was indicted on one count each of insurance embezzlement and wire fraud.
Lee was employed by Allstate. The indictment alleges that Lee embezzled approximately $1,056,000 from Allstate customer annuity accounts between July 2007 and December 2011. Lee forged customer signatures on withdrawal requests to Allstate and Lincoln Benefit Life, a company wholly owned by Allstate, which sells annuities, according to the indictment.
Once fraudulent paperwork was submitted, Lee had the proceeds wire-transferred into bank accounts he controlled in Mansfield, according to the indictment.
The case was presented for indictment by Assistant United States Attorney James V. Moroney following an investigation by the Federal Bureau of Investigation;’s Mansfield office, who in turn were following up an investigation by the Investigative Services unit of the Allstate Insurance Company.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Extradition of Alleged International Narcotics Trafficker Charged with Conspiring to Engage in Narco-Terrorism and to Support the FarcRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian R. Crowell, Special-Agent-in-Charge of the New York Field Office of the United States Drug Enforcement Administration (“DEA”), today announced that JOSE EVARISTO LINARES CASTILLO was extradited from Colombia on charges that he conspired to import ton-quantities of cocaine into the United States, to provide material support to the Fuerzas Armadas Revolucionarias de Colombia (the “Revolutionary Armed Forces of Colombia,” or “FARC”), and to engage in narco-terrorism. The FARC has been designated by the U.S. Department of State as a Foreign Terrorist Organization. LINARES CASTILLO, a Colombian citizen, has been designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant narcotics traffickers in the world. In February 2013, The U.S. Department of the Treasury designated LINARES CASTILLO as a Specially Designated Narcotics Trafficker. LINARES CASTILLO, who was arrested in May 2012, arrived in the Southern District of New York yesterday. He was presented and arraigned before U.S. District Judge Richard J. Sullivan this morning.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Linares-Castillo was a drug kingpin of the first order who consorted with, and paid-off, known terrorists to ensure the safe passage of narcotics that were destined for the United States. His extradition to the Southern District where he will face American justice is the result of close international law enforcement cooperation and a significant victory in our unrelenting battle against alleged narco-terrorists.”
DEA Special-Agent-in-Charge Brian R. Crowell said: “As alleged, Linares-Castillo ran cocaine laden aircrafts from Colombia, through Venezuela, Honduras, and into Mexico for distribution onto American streets. He also allegedly collaborated with the FARC to secure safe passage of drugs through Colombia and Venezuela. I commend the members of the New York Strike Force, DEA Special Operations Division, DEA Bogota Country Office, the Government of the Republic of Colombia and the US Department of Justice’s Office of International Affairs who succeeded in extraditing one of the most significant drug kingpins in the world responsible for the shipment of thousands of kilos of cocaine into the United States.”
According to the allegations in the Indictment which was previously unsealed in Manhattan federal court:
LINARES CASTILLO led a drug trafficking organization that distributed ton-quantities of cocaine obtained in Colombia. The cocaine was transported through the Apure region of Venezuela, flown to Honduras, and thereafter sent to the U.S. via Mexico. To facilitate the movement of its cocaine into and out of the FARC-controlled Apure region, LINARES CASTILLO’s organization made regular payments to the FARC.
The Indictment charges LINARES CASTILLO, 47, in three counts. Count One charges him with conspiracy to possess and to distribute cocaine on board an aircraft owned by a U.S. citizen or registered in the U.S.; to import cocaine into the United States; and to distribute cocaine knowing and intending that it be imported into the U.S. Count Two charges LINARES CASTILLO with narco-terrorism conspiracy. Count Three charges him with material support conspiracy. Counts One and Two carry a maximum penalty of life in prison; Count Three carries a maximum penalty of 15 years in prison.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Division and Special Operations Division. He specifically thanked the DEA’s New York Organized Crime Drug Enforcement Strike Force – which is comprised of agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service and the U.S. Marshal Service – as well as the DEA’s Bogota Country Office, the Government of the Republic of Colombia, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Edward Y. Kim, Michael D. Lockard, and Adam J. Fee are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Jose Evaristo Linares Castillo S2 Indictment
Man Claiming to Be Son of the President of the Congo Charged with Defrauding Victims Out of $1.6 MillionRead the Press Release
SAN FRANCISCO - A federal criminal complaint was filed on April 24, 2013 against Blessed Marvelous Herve, of San Francisco, charging him with wire fraud, United States Attorney Melinda Haag announced. Herve told victims that he was son of the President of Congo and needed money to release his riches. He promised repayment plus a bonus of millions.
According to the complaint, Herve, 41, collected $1.6 million from victims through his fraud scheme. In order to lure victims and bolster his credibility, Herve showed various documents, such as a letter written to him from a United States Senator, copies of awards of recognition he received from the City and County of San Francisco, and a certificate of Special Congressional Recognition from a Member of Congress. He also claimed he lived at the Four Seasons hotel in San Francisco.
One of Herve's victims was a real estate agent from whom Herve promised that his father would purchase tens of millions of dollars in real estate. Herve convinced the agent to give him tens of thousands of dollars to pay expense related to the purported father’s real estate tours, such as the rental of bulletproof limousines. In the final years of the scheme, Herve claimed that the U.S. Government seized millions of dollars from him during the course of secret court proceedings. Herve also claimed he was incarcerated as a result of these proceedings. When the victims ran out of money, Herve claimed that he was being deported to Puerto Rico and was not heard from again.
Herve was arrested Wednesday evening in San Francisco and made his initial appearance in federal court in San Francisco yesterday morning. Herve’s next scheduled appearance is at 9:30 a.m. on April 29, 2013, for a detention hearing before Magistrate Judge Nathanael Cousins.
The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is 20 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elizabeth Garcia. The prosecution is the result of a 3 week investigation by the Federal Bureau of Investigation and the United States Department of Homeland Security.
Please note, an criminal complaint contains only allegations against an individual and, as with all defendants, Herve must be presumed innocent unless and until proven guilty.
(BMH complaint )
Lower Brule Man Pleads Guilty to Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Marty LaRoche, age 20, of Lower Brule, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on April 25, 2013 and pled guilty to the Information that charged him with Assaulting, Resisting and Impeding a Federal Officer.
The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release and an additional year of supervised release upon revocation. Restitution and a $25 special assessment may also be ordered.
The charge stems from an incident on February 8, 2013, wherein Marty LaRoche did forcibly assault, resist, oppose, impede, intimidate, and interfere with an officer, constituting simple assault. The officer was employed as a federal law enforcement officer with the Bureau of Indian Affairs, Department of Interior, engaged in the performance of his official duties.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
LaRoche was remanded to the custody of the U.S. Marshal Service pending sentencing which has been set for June 25, 2013.
Long Island Man Pleads Guilty After Multi-state Scam to Steal Victims’ Retirement SavingsRead the Press Release
CENTRAL ISLIP, NY – Smithtown, New York, resident Alexander Swanson, 48, waived indictment and pleaded guilty this morning to felony charges that he engaged in a wire fraud scheme to steal retirement savings from individuals in New York, New Jersey, and elsewhere. Through his investment fraud scheme, the defendant stole approximately $3.1 million from his victims. When sentenced, the defendant faces up to 20 years’ imprisonment on each of the three counts to which he pled guilty. Pursuant to his guilty plea, the defendant must also forfeit the proceeds of his fraud.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to the criminal charges filed today in the Eastern District of New York, Swanson misrepresented his job, background, and investment experience to his victims, and then provided the victims with false reports touting his investments’ performance. These misrepresentations fraudulently induced the victims to invest with Swanson, who stole and squandered their retirement savings for his own benefit, including gambling his victims’ savings on sporting events.
“Today, Swanson admitted that he constructed a false persona, lying about his job, background, and investment expertise, all for the purpose of bilking unsuspecting individuals out of their hard earned retirement savings. Promising them secure investments, he instead provided fraudulent reports that lured them deeper into his web of lies and deceit. Just as Swanson played fast and loose with the truth, he also played with his victims’ money, gambling much of it away on sporting events. Due to the combined efforts of law enforcement, the real Swanson will now receive the only payout his actions deserve: fraud charges, a guilty plea, and the prospect of a significant jail sentence,” stated United States Attorney Lynch. “I would like to thank our partners at the FBI for their hard work on this important investigation.”
FBI Assistant Director-in-Charge Venizelos stated, “Swanson preyed upon a particularly vulnerable class of victims. Investment fraud always victimizes the trusting investor, but Swanson targeted retirees who parted with portions of their savings. The FBI is determined to protect all investors from unscrupulous schemes.”
The defendant’s guilty plea took place this morning before United States Magistrate Judge Gary Brown, at the federal courthouse in Central Islip. United States District Judge Denis R. Hurley has not yet scheduled the sentencing hearing in this case.
The government’s case is being prosecuted by Assistant United States Attorney Christopher A. Ott.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring 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.
The Defendant:
ALEXANDER SWANSON
Age: 48
Smithtown, New YorkKentucky Pain Clinic Owners Await Sentencing for Unlawfully Dispensing More Than 50,000 Prescription PillsRead the Press Release
PIKEVILLE, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, DEA and Jack Conway, Kentucky Attorney General jointly announced today that two eastern Kentucky pain clinic owners will be sentenced in September after admitting in federal court they conspired with doctors to illegally dispense more than 50,000 prescription pills.
Tammy Cantrell, 40, of Oil Springs, KY., and Shelby Lackey, 50, of Williamsport, KY., pleaded guilty Wednesday before U.S. Magistrate Judge Edward B. Atkins to conspiracy to distribute and unlawfully dispense Oxycodone and maintaining a drug involved premise. Both defendants agreed to forfeit a total of approximately $500,000 which represents proceeds from the conspiracy. Judge Atkins remanded Cantrell into custody while Lackey was released on her own recognizance.
The defendants are the first pain clinic owners in the Eastern District of Kentucky (district includes 67 counties) to have federal convictions for operating a pill mill and conspiring to illegally distribute Oxycodone.
According to the plea agreement, the defendants owned and operated Care More Pain Management, LLC located in Paintsville, KY. From 2008 until approximately February 2012, the defendants conspired with two doctors to dispense Oxycodone to eastern Kentuckians without a legitimate medical purpose.
Court records state that the doctors performed little or no physical examination before writing prescriptions that were usually for 90 Percocet 10 mg pills. Patients paid $200 for the initial visit and $185 for subsequent visits; all fees were paid in cash. One of the doctors previously admitted he saw between 40 and 50 patients in one day. In many instances, the doctors wrote prescriptions without seeing patients or signed blank prescriptions for office assistants to complete, according to the plea agreement.
Cantrell and Lackey paid the doctors as much as $8,500 a week. The clinic didn’t accept insurance and doctors made no referrals for physical rehabilitation. Neither Cantrell nor Lackey are medically certified and have no nursing experience.
The investigation started when detectives with the Kentucky Attorney General’s Office received complaints from local law enforcement that Care More was seeing a high volume of patients. Court records state that patient lines at Care More stretched into the parking lot.
One of the doctors, Richard Albert, pleaded guilty in July 2012 to conspiring to distribute and dispense controlled substances without a legitimate medical purpose. He also agreed to forfeit $500,000 which represented his proceeds from the crime. Albert will be sentenced in June. The other doctor, Rano Bofill, was indicted in August of last year for conspiracy to distribute controlled substances and operating a drug involved premise. He previously pleaded not guilty and his trial is in May.
The investigation was conducted by the Kentucky Attorney General’s Office, the DEA and the Paintsville Police Department. Assistant U.S. Attorney Roger West represents the U.S. Attorney’s Office in this case.
Justice Department Returned $1.5 Billion to Victims of Crime since January 2012Read the Press Release
As the United States concludes its recognition of National Crime Victims’ Rights Week, Acting Assistant Attorney General Mythili Raman announced that the Department of Justice’s Asset Forfeiture Program has returned more than $1.5 billion in forfeited assets to more than 400,000 crime victims since January 2012. The funds were distributed through the forfeited assets distribution program managed by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS).
“Returning forfeited funds to crime victims is an essential ingredient in achieving justice,” said Acting Assistant Attorney General Raman. “Fulfilling this important mission, the department has distributed over $1.5 billion over the past 16 months to victims of fraud and others. I commend the prosecutors in the Criminal Division and U.S. Attorneys’ Offices around the country, as well as the many federal, state and local law enforcement agents, who have worked so hard to reach this milestone.”
AFMLS, in close coordination with the U.S. Attorneys’ offices and federal law enforcement agencies, reviews and rules on petitions for remission submitted by crime victims. During the past decade, AFMLS has partnered with federal regulatory agencies, court-appointed receivers, private claim administrators, and private class action cases to successfully return more than $3 billion in forfeited assets to crime victims.
Noteworthy cases include:
$729 Million to Victims of Adelphia Communications
Adelphia Communications Corporation was the fifth-largest cable television company in the United States before going bankrupt in 2002 as a result of fraud committed by its principal owners, the Rigas family. In April 2005, the U.S. Attorney’s Office for the Southern District of New York entered into settlement agreements with Adelphia and the Rigas family, including forfeitures of cash, stock of Time Warner Cable Inc. (purchaser of Adelphia assets), real estate, and the proceeds from a litigation trust. The total value of the forfeited assets, including accrued interest, was approximately $729 million. AFMLS approved the appointment of a special master to identify and notify victims of the remission, process victim petitions, make decision recommendations, and distribute the forfeited funds. In April 2012, the special master commenced distribution of funds to 8,727 victims.
$65 Million to Victims of Enron Securities Fraud
In June 2012, the Criminal Division released approximately $65 million in forfeited funds to the Securities and Exchange Commission (SEC) for distribution to approximately 128,200 victims of the Enron Corporation securities fraud. The funds were forfeited in several criminal and civil actions handled by the Department of Justice’s Enron Task Force, the Fraud Section of the Criminal Division and AFMLS. In the late 1990s, Enron was the nation’s largest natural gas and electricity marketer. Beginning in 1997, principals of Enron defrauded Enron’s shareholders by using off-balance-sheet transactions with certain Special Purpose Entities (SPE) the principals controlled. As a result of these illegal actions, Enron’s stock price dropped from more than $80 per share to less than $1. Enron eventually filed for bankruptcy in 2001.
$45 Million to Victims of Qwest Communications Fraud
Between April 2012 and April 2013, the Criminal Division distributed approximately $45 million to approximately 112,200 victims of fraud committed by Qwest Communications International Inc. The funds were forfeited to the United States as a result of the 2007 federal conviction of Qwest’s Chief Executive Officer, Joseph P. Nacchio, for securities fraud. Between 1999 and 2002, Nacchio and Qwest issued false and misleading statements to the public about the company’s financial condition in order to meet revenue projections. After the irregularities were discovered, Qwest stock, which had traded as high as $55 per share, plummeted to about $1 per share. The prosecution of Nacchio was handled by the U.S. Attorney’s Office for the District of Colorado.
$20 Million to Victims of Warshak/Berkeley Products Fraud
On June 14, 2012, the Criminal Division released $23 million in forfeited funds to 138,426 victims of a nutritional supplement fraud. Customers who requested a free sample of the Berkeley “sexual enhancement” product were fraudulently billed for additional products they did not order. The prosecution of Berkeley and its principal, Steven Warshak, and related forfeitures were handled by the U.S. Attorney’s Office for the Southern District of Ohio.
$1.3 Million to Victims of ICT Telemarketing Fraud
In December 2012, the Criminal Division distributed approximately $1.3 million to victims of Integrated Check Technologies (ICT), a payment processor. ICT withdrew funds from victims’ bank accounts without their authorization in furtherance of a telemarketing fraud scheme. Approximately $2.9 million was civilly forfeited by the U.S. Attorney’s Office for the Western District of New York. The Criminal Division approved more than 3,600 petitions with verified losses of $1.3 million. Because the amount recovered through forfeiture exceeded the victims’ total losses, each victim received a 100 percent reimbursement.
$2.4 Million to Victims of “UniDyn” Securities Fraud
In February 2013, the Criminal Division distributed $2.4 million to victims of a “pump and dump” securities fraud orchestrated by Randy Jenkins and Ira Gentry. Jenkins and Gentry secretly acquired millions of shares of UniDyn on the Over the Counter market and posted messages online falsely touting the company’s earning potential. After having fraudulently “pumped” the value of UniDyn stock, Jenkins and Gentry proceeded to “dump” their holdings on unsuspecting buyers. Jenkins and Gentry were convicted of multiple counts of securities fraud, wire fraud, and money laundering, and one count of tax evasion. In related civil actions, the United States Attorney’s Office for the District of Arizona obtained forfeitures of cash and real and personal property valued at approximately $3.35 million. About 660 persons submitted petitions for remission, of which 466 were approved by AFMLS, with confirmed losses of $5.8 million.
Additional information about the Justice Department’s asset forfeiture recovery efforts can be found at www.justice.gov/criminal/afmls.
International Competition Network AdvancesConvergence Through Initiatives onEnforcement Cooperation and Investigative ProcessRead the Press Release
T he International Competition Network (ICN) advanced convergence through important initiatives on international enforcement cooperation and investigative processes in competition cases, the Department of Justice announced today. The ICN adopted new work product on economic analysis in merger review, legal theories in exclusive dealing investigations, international cooperation and information sharing in cartel enforcement, and the benefits of competition.
The 12th annual ICN conference, hosted by Poland’s Office of Competition and Consumer Protection (OCCP), was held on April 24-26, 2013, in Warsaw, Poland. More than 500 delegates participated, representing more than 80 antitrust agencies from around the world, including competition experts from international organizations and the legal, business, consumer and academic communities. Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division and Federal Trade Commission (FTC) Chairwoman Edith Ramirez led the U.S. delegation. The conference showcased the achievements of ICN working groups on cartels, competition advocacy, competition agency effectiveness, mergers and unilateral conduct.
“One of the defining characteristics of the ICN is the deep engagement of its members on critical antitrust issues, including mergers, anti-cartel enforcement, unilateral conduct and competition advocacy,” said Assistant Attorney General Baer. “The discussions and work product emerging from this meeting strengthen the ties between U.S. enforcers and our counterparts around the globe and enhance effective antitrust enforcement for the benefit of all consumers.”
Bronislaw Komorowski, the President of Poland, provided opening remarks at the conference. John Fingleton, former Chief Executive of the UK Office of Fair Trading and former ICN Steering Group Chair, moderated a panel on competition and its relevance to global economic policy discussion among representatives from the World Trade Organization, World Bank and International Chamber of Commerce. Joaquin Almunia, European Commission Vice President and Commissioner for Competition, also addressed the conference. Eduardo P é rez Motta, ICN Steering Group Chair and President of the Mexican Federal Competition Commission, spoke about his initiatives to support ICN member competition advocacy and enhance cooperation with international organizations .
Assistant Attorney General Baer moderated a panel of antitrust officials on international enforcement cooperation to discuss the strengths and limitations of current cooperation frameworks. The panel also discussed future ICN work that could best help antitrust agencies address the challenges of engaging effectively in international enforcement cooperation. Over the past year, the ICN partnered with the Organization for Economic Cooperation and Development (OECD)’s Competition Committee on a comprehensive study of the state of international enforcement cooperation. Lynda K. Marshall, Assistant Chief of the Department of Justice’s Antitrust Division’s Foreign Commerce Section, led a discussion on future work on international cooperation in cartel enforcement.
The Polish OCCP led a special project devoted to the interaction between competition agencies and courts, culminating in a session led by OCCP President Malgorzata Krasnodebska-Tomkiel. FTC Chairwoman Ramirez addressed the vital role of economic evidence in competition cases and offered guidance for how to effectively present this evidence to generalist courts. She also highlighted the various tools available to competition agencies to encourage courts to recognize competition law principles.
“This 12th annual ICN conference demonstrated how competition agencies from around the world can come together both to advance convergence toward best practices in antitrust enforcement and to strengthen the voice of competition policy as our governments confront common economic challenges,” said Chairwoman Ramirez.
The conference also highlighted the work of the Cartel Working Group, co-chaired by the Department of Justice, the Japan Fair Trade Commission and Germany’s Bundeskartellamt. The working group brings together antitrust enforcers to address the challenges of anti-cartel enforcement, through the examination of important policy issues and the exchange of effective investigative techniques. The group presented a new chapter on international cooperation and information sharing for its Anti-Cartel Enforcement Manual, a reference tool for antitrust agencies on effective investigative techniques.
The Agency Effectiveness Working Group, co-chaired by the FTC, the Mexican Federal Competition Commission and the Norwegian Competition Authority, examines the institutions and procedures that support the enforcement missions of competition agencies. Randolph W. Tritell, Director of the FTC’s Office of International Affairs , led a panel discussion and presentation of the group’s work related to investigative tools and agency transparency practices, part of a project on investigative processes in competition cases. The working group also presented two new chapters on effective knowledge management and human resources management for its competition agency practice manual.
The conference showcased the ICN Curriculum Project, a project led by the FTC to create a “virtual university” of training materials on competition law and practice. FTC Counsel Paul O’Brien presented the Curriculum Project and its new modules on planning and conducting investigations, competition advocacy and challenges for agencies in developing countries.
The Merger Working Group, co-chaired by the European Commission’s Competition Directorate, the Competition Commission of India (CCI) and the Italian Competition Authority aims to promote best practices in the design and operation of merger review regimes. The FTC’s Director of the Bureau of Economics, Howard Shelanski, participated in a panel discussion of the role of economic analysis in merger review. The panel highlighted the group’s new work addressing the role of economic evidence in merger analysis, a comprehensive overview of the qualitative and quantitative analyses available to antitrust agencies for the review of horizontal mergers.
The Unilateral Conduct Working Group, co-chaired by the Swedish Competition Authority, the Turkish Competition Authority, and the UK Office of Fair Trading, promotes convergence and sound enforcement of laws governing conduct by firms with substantial market power. T he working group presented a new workbook chapter on exclusive dealing arrangements as part of a project that is producing a practical guide to the investigation of the various types of unilateral conduct.
The Advocacy Working Group, co-chaired by the French Autorité de la Concurrence, the Portuguese Competition Authority and the Competition Commission of Mauritius, develops practical tools and guidance to improve the effectiveness of ICN members’ competition advocacy. This year, the working group developed draft guidance on procedures and analysis for assessing existing or proposed laws and regulations to determine whether they may have a significant impact on competition. The group also presented its work on practical techniques to help promote a competition culture and strategies for explaining the benefits of competition to other government entities.
The ICN was created in October 2001, when the Department of Justice and the FTC joined antitrust agencies from 13 other jurisdictions to increase understanding of competition policy and promote convergence toward best practices around the world. The ICN now includes 126 member agencies from 111 jurisdictions.
ICN documents are available at www.internationalcompetitionnetwork.org .
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 25, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
WILLIAM FREDERICK SCHROEDER, a 31-year-old resident of Helena, appeared on charges of coercion and enticement and receipt of child pornography. He is currently detained. If convicted of these charges, SCHROEDER faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $250,000 fine, and lifetime supervision. Special Assistant U.S. Attorney Ole Olson is the prosecutor for the United States. The investigation was conducted by the Helena Police Department.
FELIPE JESUS PARRA-FLORES, a 46-year-old resident of Nampa, Idaho, appeared on charges of receipt of child pornography and possession of child pornography. He is currently released on special conditions. If convicted of these charges, PARRA-FLORES faces possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was conducted by U.S. Department of Homeland Security - Homeland Security Investigations.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
In Recognition of the 13th Annual World Intellectual Property Day Maryland U.S. Attorney’s Office Highlights Recent CasesRead the Press Release
Baltimore, Maryland - The growing role of the internet has dramatically enhanced the opportunities for criminals around the world to sell products that do not belong to them, depriving the legitimate owners of any profit. April 26th is the 13th Annual World Intellectual Property Day, designated to increase public awareness about the role of intellectual property rights in promoting innovation and creativity. Intellectual property theft – whether involving counterfeit medicines, network hardware, pirated content or trade secrets – threatens our nation’s economy, can endanger public health and safety, and can even undermine our national security.
The Maryland U.S. Attorney’s Office works with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other federal, state and local partners to enforce intellectual property rights. Some of the highlights from the past year involving Maryland cases are:
Trafficking in Counterfeit Goods
In January 2013, Liang Lin, pleaded guilty to trafficking in counterfeit goods. Lin owned and operated two shops on the boardwalk in Ocean City, Maryland, where he sold counterfeit merchandise, including purses, handbags, shirts, jewelry perfume, hats, and shoes that bore trademarks such as Michael Kors, Nike, Monster, Coach, Gucci, Versace, Vera Wang, Louis Vuitton and Channel. Law enforcement made several seizures of counterfeit trademarked merchandise from Lin and his stores. The retail value of the counterfeit trademarked merchandise seized from and sold by Lin is between $200,000 and $400,000. The estimated retail value of the counterfeit merchandise, based on what Lin was selling the infringing counterfeit items for, is $153,585. Lin is scheduled for sentencing on July 10, 2013 at 9:30 a.m.
Jerold Lee Sharoff has been indicted for conspiring to, and trafficking in counterfeit goods, and counterfeit labels. Sharoff operated Beachwear Outlet and Surf Beachwear, both on Atlantic Avenue in Ocean City, where the indictment alleges that he sold counterfeit trademarked merchandise. Sharoff also allegedly stored counterfeit goods at a warehouse located in Ocean City. Further, the indictment alleges that Sharoff and his co-conspirators manufactured counterfeit t-shirts by applying heat transfers bearing counterfeit trademarks to t-shirts using heat presses. Sharoff is scheduled to go to trial on October 21, 2013.
Several other defendants have pleaded guilty to trafficking in trademarked counterfeit goods, such as Nike, Coach, Gucci, Versace, Louis Vuitton, Chanel, Michael Kors, Jimmy Choo, Tory Burch, Juicy, Prada, Christian Dior, Ed Hardy, Burberry, and Dolce & Gabbana, with losses estimated at between $10,000 and $30,000. Keith Jackson pleaded guilty to selling counterfeit purses, handbags and watches. He was arrested three times for selling counterfeit goods before being charged federally. He is scheduled to be sentenced on June 12, 2013 at 1:00 p.m. Co-defendants Philip Swaby and Yoncra Robinson pleaded guilty to operating a store in Baltimore called Fashion Trendz, where they sold counterfeit purses, watches, jewelry, glasses, wallets and scarves. They are scheduled to be sentenced on June 5, 2013 at 3:00 p.m. Tidiane Ba was sentenced to eight months in prison and ordered to pay $1,000 in restitution, and Baba Toure was sentenced to one year probation, after they pleaded guilty to selling counterfeit purses, handbags, shoes, watches, hats and other items by luxury manufacturers at locations around Baltimore, including at the Patapsco Flea Market. They rented storage units to store counterfeit trademarked merchandise received from suppliers in New York. HSI agents seized counterfeit goods from the defendants on several occasions during the course of the investigation. Charges against three co-defendants are pending.
Copyright Infringement
Naveed Sheikh, age 32, of Baltimore, pleaded guilty to conspiring to and infringing copyrights by illegally reproducing and distributing over 1000 copyrighted commercial software programs, with a value of over $4 million. Sheikh created multiple websites through which the infringing software was sold. Sheikh did not report the income from the copyright infringement scheme on his tax returns. As part of his plea agreement, Sheikh will be required to forfeit $4 million. Sentencing is scheduled for May 15, 2013 at 3:00 p.m.
Website Seizures
In 2012, the U.S. Attorney’s Office, working with HSI-led National Intellectual Property Rights Coordination Center (IPR Center) and HSI Baltimore special agents, seized and shut down websites selling counterfeit items.
For example, in October 2012, nearly 700 U.S. based websites selling trademarked counterfeit pharmaceutical drugs were seized and shut down. The drugs being offered for sale on the websites included anti-cancer medications, drugs to treat depression and dementia, drugs to reduce the risk of heart attack and stroke, weight loss and food supplements, and erectile dysfunction pills. Analyses of trademarked counterfeit pharmaceutical drugs purchased from the websites revealed that the drugs were generally shipped from outside the U.S, and were not authentic, nor approved by the Food and Drug Administration for sale in the U.S. The operation, known as Bitter Pill, was part of an international initiative that spanned 100 countries and confiscated over 3 million doses of counterfeit medications worth approximately $10.5 million.
In June 2012, two domain names and three PayPal accounts were seized in connection with a scheme to sell fraudulent store and rewards coupons. The Sderclub.com and its related domain name, ccccpn.com, offered online sales of store and rewards coupons, also known as “rewards checks” from Staples, Inc. Website operators created compromised and fraudulent coupons using coupon codes legitimately issued by Staples for use by Staples Rewards customers. The fraudulent coupons purchased from sderclub.com or ccccpn.com expired within a couple of days in order to be used by the purchaser before the legitimate Staples customer, to whom the coupon was issued, redeemed it. From January 13, 2009 through May 15, 2012, over 102,553 transactions pertaining to the sale of fraudulent store and/or rewards coupons occurred on the three seized PayPal accounts, each of which was created by an individual residing in China.
These cases are part of the efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to http://www.justice.gov/dag/iptaskforce/.
HSI manages the IPR Center in Washington, one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the HSI-led IPR Center, visit www.IPRCenter.gov.
Greendale Business Owner Enters Guilty Plea in Social Security Disability and Tax Fraud ProsecutionRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced today that Lawrence J. Popp pleaded guilty to two felony offenses in connection with his fraudulent receipt of social security disability benefits and his participation in a welfare benefit plan (under Section 419 of the Internal Revenue Code) with the intention of evading the payment of income taxes. This matter was investigated by agents of the Social Security Administration’s Office of Inspector General (“SSA-OIG”) and the Internal Revenue Service-Criminal Investigation (“IRS-CI”).
In making this announcement, Santelle commented: “The programmatic and fiscal integrity of the Social Security Administration’s programs is compromised significantly—to the detriment of legitimate beneficiaries—when individuals engage in purposeful fraud of this and other types. The knowing misapplication of welfare benefit plans, pursued to evade the payment of income taxes, aggravates the abuse and has a quantifiable impact upon all Americans.” Santelle added: “This prosecution, premised upon a balanced, focused, and highly professional investigation by special agents of the Social Security Administration and the Internal Revenue Service, is illustrative of the kind of effective federal law enforcement work known well in Eastern Wisconsin and throughout the nation.”
“Business owners who misuse welfare benefit plans by running their compensation through layers of complicated trusts and insurance policies will be vigorously investigated by federal law enforcement,” said Kelly R. Jackson, Special Agent in Charge of the IRS Criminal Investigation office in Milwaukee. Agent Jackson added: “We encourage anyone with information about these types of schemes to come forward and speak with federal authorities.”
United States District Judge Rudolph T. Randa, who presided over the plea hearing, has scheduled the sentencing of the defendant for October 29, 2013.
Government Contracting Company and CEO Plead Guilty to Paying Bribes to Former U.S. Postal OfficialRead the Press Release
ALEXANDRIA, Va. – AH Computer Consulting, Inc. (AH, Inc.), an international information technology consulting firm based in Rockville, Maryland, pleaded guilty today to having paid thousands of dollars in bribes to Gene Quarles, a former official with the United States Postal Service, in exchange for Quarles’ official assistance in obtaining and facilitating government contracts for that company. The company’s CEO-Managing Director, Heba Elaraby, 42, of Gaithersburg, Md., also admitted to having paid bribes and entered into a Deferred Prosecution Agreement with the United States earlier today. The company’s CEO-Technical Director, Adel Elaraby, 45, of Gaithersburg, Md., pleaded guilty to the same offense on April 19, 2013. Quarles previously pled guilty to bribery of a public official on February 14, 2013, and is scheduled for sentencing on May 17, 2013.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and
Special Agent in Charge Tom Frost of the U.S. Postal Service, Office of Inspector General, made the announcement after the pleas were entered in United States District Court for the Eastern District of Virginia.AH, Inc., Heba Elaraby, and Adel Elaraby were all charged, through a criminal information, with bribery of a public official. AH, Inc. faces a maximum penalty of a $250,000 fine and 5 years of probation when it is sentenced on July 26, 2013. Adel Elaraby faces a maximum penalty of 15 years’ imprisonment and 3 years of supervised released when he is sentenced on the same date.
In a statement of facts filed with their plea agreements, both AH, Inc. and Adel Elaraby admitted that, in April 2010, the Elarabys approached Quarles and offered to pay him bribes in exchange for various impermissible contracting preferences and advantages. Quarles accepted this offer, and from in or about April 2010 through in or about June 2012, AHCC employees paid Quarles numerous cash payments—totaling several thousands of dollars—in exchange for Quarles’ providing advantages to AHCC during the USPS contracting process. For example, Quarles provided AHCC with confidential USPS contracting information, so that AHCC could tailor its bids to what other potential contractors were bidding. In addition, Quarles forwarded various private call-in numbers for conference calls between USPS officials, where official business was discussed, so that AHCC employees could anonymously listen in and get a leg-up on their competition. Quarles also allowed AHCC employees to complete surveys, evaluations, and other review materials in Quarles’ own name so that AHCC could obtain additional government contracts.
This case was investigated by the United States Postal Service, Office of Inspector General. Assistant United States Attorney Chad Golder 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.
Goodwin Urges West Virginians to Join Prescription Drug Take-back on SaturdayRead the Press Release
Saturday’s event is the sixth national prescription drug collection of its kind
CHARLESTON, W.Va. - United States Attorney Booth Goodwin today asked West Virginians to reach into their home medicine cabinets and pull out any unused, unwanted or expired prescriptions and turn them in at a drop-off site as part of National Prescription Drug Take-Back Day, Saturday, May 27, 2013. The event will be held from 10 a.m. to 2 p.m. More than 100 locations across the state will serve as designated drop-off sites for Saturday’s event.
“Prescription drug abuse remains a terribly serious problem in West Virginia and around the country,” U.S. Attorney Booth Goodwin said. “For many people, especially teenagers, the road to addiction starts with pills they find in their parents’ or grandparents’ medicine cabinets. Worse than that, our region has seen a wave of terrifying home invasions by prescription drug addicts looking for pills or for money to buy pills.”
Goodwin continued, “Our previous Take-Back events have been striking successes. This ongoing initiative has played an important role in fighting prescription drug abuse. I urge everyone to clean out their medicine cabinets and drop off unneeded medications at a take-back site on Saturday the 27th.”
Saturday’s Take-Back event provides an opportunity for people who missed previous events, or who have accumulated unwanted, unused prescription drugs since the last Take-Back, to safely dispose of those medications.In the five previous Take-Back events, the Drug Enforcement Administration and numerous federal, state, and local law enforcement partners have collected more than 2 million pounds (1,018 tons) of prescription medications nationwide.
For more information about take-back locations in West Virginia, please visit www.dea.gov and follow the link for National Prescription Take-Back Day.
Former Postal Carrier Heads to Federal Prison for Stealing Government FundsRead the Press Release
HOUSTON - Mytasha Henry, a former U.S. Postal Service letter carrier from the Houston area has been ordered to prison following her conviction on charges of stealing government funds with regards to the Office of Workers’ Compensation Program (OWCP), United States Attorney Kenneth Magidson announced today. Henry pleaded guilty Friday, Nov. 16, 2012.
Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Henry a sentence of 24 months and was further ordered to pay was further ordered to pay $171,039.50 in restitution. Henry will also be required to serve a term of three years of supervised release following completion of the prison term.
Henry, 32, was indicted by a federal grand jury in Houston May 8, 2012, on five counts of mail fraud, one count of false statements regarding federal workers’ compensation benefits and one count of theft of government money. She later pleaded guilty to all counts.
The OWCP allows federal employees who sustain on-the-job injuries to receive medical payments and compensation benefits, including reimbursement for medically-related travel. From July 2007 to July 2008, Henry worked as a letter carrier at the Royall Station in Houston. Citing an injury that occurred while delivering mail, she filed a Federal Employee’s Claim for Continuation of Pay/Compensation in 2007.
From Sept. 21, 2007, through May 14, 2012, Henry filed medical travel refund requests with the U.S. Department of Labor (DOL) and OWCP claiming mileage reimbursement and parking and toll fee reimbursements for physician and rehabilitation appointments which she did not attend nor incur associated costs. Henry defrauded the DOL and OWCP of more than $173,000, which she received as a result of her fraudulent claims.
Henry is in custody where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by DOL-Office of Inspector General and the U.S. Postal Service-Office of Inspector General. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
Former Nurse Practitioner to Serve Forty-One Month Federal Prison Sentence for Illegal Distribution of OxycodoneRead the Press Release
ALBUQUERQUE – Gloria Vigil, 63, of Albuquerque, N.M., was sentenced earlier today to 41 months in federal prison followed by three years of supervised release for conspiring to distribute oxycodone outside the scope and usual course of professional practice and without a legitimate medical purpose. Vigil’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Joseph M. Arabit, Special Agent in Charge of the El Paso Field Division of the DEA.
Vigil was arrested on federal drug trafficking charges in July 2010, and subsequently was charged with conspiracy to distribute oxycodone and the unlawful distribution of oxycodone. At the time of her arrest, Vigil was a nurse practitioner.
The charges against Vigil were arrested as the result of a DEA into a prescription drug trafficking ring operating out of Vigil’s medical office, Clinica de la Gloria (Clinic of Glory), in southwest Albuquerque. According to court filings, Vigil had engaged in a pattern and practice of writing fraudulent prescriptions for oxycodone for individuals who were never treated by her and did not have any medical provider-patient relationship with her medical office. Vigil also sold fraudulent oxycodone prescriptions for up to $250 each, and enlisted others to help her distribute oxycodone.
Vigil pled guilty to conspiracy to distribute oxycodone in May 2011. In entering her guilty plea, Vigil acknowledged that she operated her own medical clinic in Albuquerque and that, as a nurse practitioner, she was permitted by law to write prescriptions for controlled substances in the scope of her medical practice. Vigil admitted writing and providing prescriptions for oxycodone for individuals with whom she had no patient/provider relationship and for whom she did not believe such drugs were medically necessary. She further admitted that these individuals would provide her with names and dates of birth of others in whose names she would write prescriptions. In order to avoid detection, Vigil created patient charts in each of these names so as to make it appear that she had a legitimate patient/provider relationship with these individuals. In exchange for writing these fraudulent prescriptions, Vigil, received payment in cash.
Vigil also admitted that, on two occasions in June 2010, she met with an individual for whom she had written numerous prescriptions for oxycodone in the past, and that, on these two occasions, she wrote a total of nine prescriptions for oxycodone various names provided to her by the individual. These prescriptions were written outside the scope of her medical practice and without any legitimate medical justification. Vigil later learned that this individual was working as an informant for the DEA.
Vigil has been in federal custody since entering her guilty plea.
The case was prosecuted by Assistant U.S. Attorney John C. Anderson and was investigated by the Albuquerque office of the DEA in cooperation with the Albuquerque Police Department, Bernalillo County Sheriff’s Office, New Mexico Board of Pharmacy, and the Albuquerque Office of the FBI.
For more information on oxycodone and other drugs, the U.S. Attorney’s Office and the DEA El Paso Division encourage parents and their children to visit the following interactive DEA websites: www.justthinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.Former N.C. Probation Officer Sentenced to 17 Months in Prison on Extortion and Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – A former North Carolina probation officer was sentenced on Thursday, April 25, 2013, in U.S. District Court to serve 17 months in prison for extortion and drug trafficking offenses involving persons under his supervision, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. James David Franklin, 46, of Lenoir, was also sentenced to three years of supervised release following his prison term.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Director Gregory McLeod of the North Carolina State Bureau of Investigations (NC SBI).According to court documents and court proceedings, from April 2001 through July 2010, Franklin, was employed as a Surveillance Officer by the North Carolina Department of Correction’s Division of Community Corrections (DCC) and supervised probationers on intensive supervision in Burke and Caldwell Counties. According to filed documents, Franklin primarily conducted curfew checks and compliances searches and had arrest power over probationers and parolees. Court records indicate that from in or about July 2009 to in or about July 2010, Franklin used his position on multiple occasions to extort drugs from an individual who had been under Franklin’s supervision (“Probationer #2”). Specifically, court records show that Franklin, via text messages and other communications, repeatedly asked Probationer #2 to supply him with narcotics, including methamphetamine and hydrocodone.
Court records show that Franklin would arrange to retrieve the narcotics from Probationer #2’s driveway in exchange for cash. Law enforcement officers were alerted to Franklin’s conduct when Probationer #2 complained to his federal probation officer and to his primary North Carolina probation officer. Subsequently, Franklin was placed on desk duty. While on desk duty, Franklin sent a text message to Probationer #2 asking him to sell hydrocodone pills in exchange for a portion of the proceeds from the sale. Specifically, Franklin told Probationer #2 he would pay him “3 dollars a piece” for 125 hydrocodone pills. According to court records, Franklin was apprehended by law enforcement officers when he went to Probationer #2’s house to deliver the hydrocodone pills in exchange for $375 in cash.
In December 2011, Franklin pleaded guilty to one count of extortion under color of official right and one count of possession with intent to distribute hydrocodone.
vWhen announcing the sentence, U.S. District Judge Martin Reidinger noted that the sentence imposed was more than minimally required under the Federal Sentencing Guidelines because the defendant was “A person who by reason of his position had taken actions that undermine the integrity of the legal system.”Franklin has been in custody since April 2011. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and SBI. The case was prosecuted by Assistant United States Attorney Michael Savage of the U.S. Attorney’s Office in Charlotte.
Former Executive Director of Indian Human Resource Center Indicted for Embezzling Non-profit’s MoneyRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that David Hedley, a former Executive Director of the Indian Human Resource Center (“IHRC”), was arraigned yesterday on an indictment charging him with eight felony counts of theft from the San Diegobased non-profit that received federal funds. The defendant was arrested by Federal Bureau of Investigation (“FBI”) agents on April 25, 2013, in Riverside, California.
According to the indictment, Hedley served as the Executive Director of IHRC between approximately September 10 and December 11, 2012. During that time, Hedley is believed to have stolen approximately $140,000 from the non-profit.
According to information disclosed at Hedley’s arraignment, on numerous days when Hedley was improperly withdrawing money from IHRC’s bank account, he was spending comparable sums gambling at a local Indian casino. For example, on October 9, 2012, Hedley withdrew $15,000 in cash from the IHRC bank account at the North Island Credit Union (“NICU”) located in La Mesa, California. On that same day, Hedley purchased $15,000 worth of chips, tokens or gaming instruments at the Viejas Casino. Similarly, on the October 12, 2012, Hedley improperly withdrew $20,000 in cash from IHRC’s bank account at the NICU branch in Imperial Beach, California and purchased over $20,000 in chips, tokens or gaming instruments the same day from Pala Casino.
The IHRC was established to train and assist Native Americans with finding employment outside the tribal setting and was awarded over a half million dollars in federal funding from the U.S. Department of Labor over the past two years as part of the Workforce Investment Act (“WIA”). The Workforce Investment Act of 1998 (“WIA”) established a national workforce preparation and employment system to meet the needs of persons seeking employment, including new entrants to the workforce, in order to increase the employment, job retention, earnings and occupational skills of participants, improve the quality of the workforce, reduce welfare dependency, and improve the productivity and competitiveness of the United States.
United States Attorney Laura E. Duffy commented that, “The taxpayer resources provided to IHRC were intended to help create jobs by assisting the Native American community. I commend the FBI for its investigative work leading to these charges.”
FBI Special Agent in Charge Daphne Hearn commented, “At the most basic level this case is about one individual’s greed and the abuse of trust. The FBI will hold those accountable who line their own pockets at the expense of the American taxpayer.”
Hedley was arraigned on the indictment in the Central District of California before Magistrate Judge David Bristow; Hedley pleaded not guilty. Magistrate Judge Bristow set bail at $100,000 and ordered the defendant to appear in the Southern District of California on May 9, 2013.
The public is reminded that an indictment is not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Criminal Case No. 13CR1129-WQH David M. Hedley SUMMARY OF CHARGESCounts 1-8: Title 18, United States Code, Section 666(a)(1)(A) – Theft from Program Receiving Federal Funds
Forfeiture: Title 18, United States Code, Sections 981(a)(1)(C) and Title 28, United States Code, Section 2461(c)
INVESTIGATING AGENCIESFederal Bureau of Investigation
California Department of Justice, Bureau of Gambling ControlFormer Credit Union Employee Sentenced for EmbezzlementRead the Press Release
BOSTON – An Adams woman was sentenced yesterday in U.S. District Court in Springfield for embezzlement and other related charges.
Patricia Piscioneri, 67, was sentenced by U.S. District Judge Michael A. Ponsor to one day in prison, followed by two years of supervised release, the first six months of which must be spent in home confinement, 100 hours of community service, and a $3,000 fine. In January 2013, Piscioneri pleaded guilty to a 30-count indictment charging her with embezzlement of funds by a credit union employee and false entries.
While employed as the manager of the former Adams Municipal Employees Federal Credit Union (AMEFCU), Piscioneri embezzled credit union funds by creating fraudulent loan accounts in the names of credit union members and depositing the proceeds of these fraudulent loans into her own account(s), her husband’s account(s), other family members’ account(s), or used the proceeds to pay off earlier obtained fraudulent loans. In an attempt to avoid detection, Piscioneri created fraudulent loan documentation, such as loan applications and promissory notes and forged signatures on these documents, created false entries in the AMEFCU accounting system, and advanced the payment due dates of the fraudulent loans.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett.
Former Cleveland Resident Charged with Illegal Re-entryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury has returned an indictment charging Marcos A. Cardenas-Landino, age 24, formerly of Cleveland, with illegal re-entry following deportation or removal.
The indictment alleges that on February 27, 2013, Cardenas-Landino was illegally present in the United States after previously being deported subsequent to a conviction for the commission of possession of a controlled substance with intent to sell.
The indictment was presented to the grand jury by Assistant United States Attorney Lauren Bell after investigation by United States Immigration and Customs Enforcement.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Bank Teller Sentenced to Prison for Embezzlement of Government Funds and Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Victoria Metz, age 26, formerly a resident of Albany, Georgia, on April 25, 2013, by the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia, Albany, Georgia.
Ms. Metz was sentenced by Judge Sands to serve 48 months in the custody of the Bureau of Prisons and 3 years of supervised release after serving her sentence. She was also ordered to pay restitution to Colony Bank in the amount of $79,361.00.
On January 16, 2013, Ms. Metz was found guilty by a jury of Counts One through Twelve, Sixteen, Eighteen, Nineteen and Twenty. Counts One through Ten charged Embezzlement of Government Property, in violation of Title 18 United States Code, Section 641. Counts Eleven through Twenty charged Aggravated Identity Theft, in violation of Title 18 United States Code, Section 1028A.
“When Ms. Metz stole her victims’ identities, she took something from every one of us. The message should be clear, when you commit identity theft, you are going to jail,” said U.S. Attorney Michael Moore.
Ms. Metz while employed as a teller at Colony Bank, Leesburg, Georgia, knowingly cashed $79,361.00 in stolen Internal Revenue Service refund checks. Ms. Metz admitted to law enforcement agents that on some occasions she received a cut of the proceeds from the third party that supplied her with the stolen checks.The case was investigated by the United States Secret Service, and the Leesburg Police Department. The case was prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
Federal Jury Finds Meriden Grocery Store Operator Guilty of Food Stamp FraudRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found MYRACHID ELQUAFAI, 51, a citizen of Morocco last residing in New Haven, guilty of defrauding the federal Food Stamp Program while operating a Meriden grocery store. The jury returned the verdict today following a five-day trial before United States District Judge Janet C. Hall in New Haven.
According to the evidence disclosed during the trial, the federal Food Stamp Program, which is now known as the Supplemental Nutrition and Assistance Program (“SNAP”), is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an EBT card, which is similar to an ATM card. SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
ELQUAFAI operated CJ Express and Groceries, LLC, located at 145 West Main Street in Meriden. From approximately June 2010 to July 2012, ELQUAFAI conspired with Carlos Dominguez, the owner of CJ Express and Groceries, to redeem SNAP benefits at the store at a significantly discounted rate in exchange for cash and cigarettes. Since February 2010, it is estimated that $820,000 in illegal SNAP benefits were redeemed at the store.
The jury found ELQUAFAI guilty of one count of conspiracy to commit food stamp fraud and one count of food stamp fraud. Judge Hall has scheduled sentencing for July 19, 2013, at which time ELQUAFAI faces a maximum term of imprisonment of 10 years.
ELQUAFAI has been detained since his arrest on August 2, 2012.
Dominguez has pleaded guilty and awaits sentencing.
This matter has been investigated by the United States Department of Agriculture, Office of Inspector General and the Office of the Chief State’s Attorney. This case is being prosecuted by Assistant United States Attorneys Neeraj Patel and Anastasia King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]F.B.I. Arrests Century City Man for Allegedly Running Ponzi Scheme and Bilking Additional Victim After Being Sued by S.E.C.Read the Press Release
LOS ANGELES – A Century City man was arrested this morning by FBI special agents after he was charged with running a Ponzi scheme and then bilking another victim out of millions of dollars that he used to pay back earlier victims after the S.E.C. took him to court.
Shervin Neman, whose given name is Shervin Davatgarzadeh, 31, was arrested without incident this morning at his residence. Neman was arrested pursuant to a three-count fraud indictment that alleges he caused victims to suffer losses of more than $3 million.
The indictment alleges that Neman claimed to be a successful investor who made significant profits, but he in fact operated a Ponzi scheme from the summer of 2010 through last June by soliciting funds from investors with false claims that their money would be used to purchase foreclosed real estate and stocks, including pre-initial public offering shares. Instead of using investor funds to make these investments, the indictment alleges that Neman was spending most of the victims’ investment funds on personal expenditures and to repay other victims.
The Securities and Exchange Commission filed a civil complaint against Neman and his company, the Century City-based Neman Financial, Inc., on April 11, 2012, in United States District Court in Los Angeles. The lawsuit alleged that Neman was operating a multi-million dollar Ponzi scheme that was targeting primarily members of the Persian-Jewish community in Los Angeles. Subsequently, a federal judge issued orders prohibiting Neman from committing securities fraud (see, for example: https://www.sec.gov/litigation/litreleases/2012/lr22331.htm).
The month after the SEC filed its lawsuit, Neman solicited $2 million from another victim with false promises that Neman could obtain pre-IPO shares in Facebook, according to the indictment. Neman allegedly used the funds obtained from the new victim to pay, among other things, most of his earlier victims and the law firm representing him in the SEC action. Neman then had victims who had been “paid back” write e-mails saying that Neman did not owe them money, according to the indictment, which goes on to say that Neman used these e-mails as part of his defense in the SEC case. In June 2012, Neman sent to the later victim a $2,235,800 check that purported to be the return on the Facebook investment, but that check bounced, according to the indictment.
Neman was charged in an indictment returned under seal Wednesday by a federal grand. That indictment, which was unsealed this morning after Neman’s arrest, charges him with two counts of wire fraud and one count of mail fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The three fraud charges in the indictment each carry a statutory maximum sentence of 20 years in federal prison.
Neman is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
This case is the result of an investigation by the Federal Bureau of Investigation.
Release No. 13-058
Employee Arrested at Premier Internal MedicineRead the Press Release
MOBILE, Ala. - Madonna Lynette Reed, 28, of Fairhope, Alabama, was arrested on April 25, 2013, at her place of employment, Premier Internal Medicine, in Fairhope, on a federal criminal complaint charging conspiracy to possess with intent to distribute hydrocodone acetaminophen and possession with intent to distribute hydrocodone acetaminophen. That substance is a Schedule III controlled substance. Reed’s initial appearance was scheduled today for 11:00 a.m., before United States Magistrate Judge William E. Cassady. The judge will determine whether there is probable cause to bind her over for consideration by a grand jury, and whether there are conditions that can be set to reasonably assure the safety of the community and her appearance at subsequent court proceedings. The judge will also take up the matter of her legal representation.
The case was investigated by the FBI, assisted by the Baldwin County Sheriff’s Office, and supported by the Fairhope Police Department. It is being prosecuted by Gloria Bedwell in the United States Attorney’s Office.
A defendant of course is presumed innocent unless and until she is convicted as the result of a jury trial or a guilty plea.
Eagle Butte Man Convicted of Simple Assault of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that David Roberts Jr., age 30, of Eagle Butte, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on April 24, 2013 and pled guilty to the Superseding Information that charged him with Simple Assault of a Minor.
The maximum penalty upon conviction is up to one year of custody, a $100,000 fine, and a $25 assessment to the Federal Crime Victims Fund.
The conviction is the result of an assault of a minor victim that occurred in Eagle Butte in May of 2012.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for June 24, 2013.
Defendant Indicted on Prohibited Possession of Firearms and AmmunitionRead the Press Release
Ted McCall Snow of Wilmer, Alabama, has been indicted on charges of being a felon in possession of firearms and ammunition, and possession of a stolen firearm. The Indictment charges that Snow was previously convicted of eleven cases of burglary, receiving stolen property and theft in Mobile County Circuit Court between 1989 and 2007. By virtue of these convictions, and Snow’s resulting status as a convicted felon he is prohibited from possessing firearms or ammunition. Snow is alleged to have possessed three types of ammunition on March 5, 2013, and three stolen firearms on March 8, 2013.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1); and, possession of a stolen firearm is a violation of Title 18, United States Code Section 922(j). The statutory maximum penalty provided by law for each charge is 10 years imprisonment. If however, the Defendant has three prior convictions for crimes of violence or serious drug offenses, the penalty provided by law on the felon in possession charge is a minimum mandatory sentence of 15 years to a maximum of life imprisonment.
As in all criminal cases, the Indictment returned by the Grand Jury is only a charge and the Defendant is presumed innocent.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and Mobile County Sheriff’s Office and the Mobile Police Department. The case will be prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Customer Service Representative Arrested for Issuing Fraudulently Obtained Florida Driver LicensesRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces a criminal complaint charging Walter Brown (41, Kissimmee) with conspiracy to knowingly and without lawful authority produce identification documents in violation of federal law. If convicted, he faces a maximum penalty of 15 years in federal prison. Brown made his initial appearance in federal court today before U.S. Magistrate Karla R. Spaulding.
According to the complaint, Brown was a Customer Service Representative (“CSR”) in the Office of the Osceola County Tax Collector. Brown’s primary duty was to issue driver licenses and identification cards. Surveillance camera footage from the Osceola County Tax Collector’s office located at 2501 E. Irlo Bronson Memorial Highway in Kissimmee, Florida, showed that Brown issued Florida Driver Licenses or identification cards based upon fraudulent and fraudulently obtained identity documents. While most customers were observed following the regular queue process, for example, providing their personal information to a receptionist; obtaining a number; waiting in the lobby area; and proceeding to the counter as directed by the queue system administrator, customers presenting fraudulent and fraudulently obtained documents were seen proceeding directly to Brown’s counter, bypassing the queue system entirely.
In his capacity as a CSR, the complaint alleges that Brown has issued at least 200 Florida driver licenses and identification cards to those who may not be legally entitled to the documents. In some cases, Brown fraudulently issued driver licenses and identification cards in multiple identities, to the same person.
The Osceola County Tax Collector’s Office terminated Brown from his employment today.A complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of State Diplomatic Security Services, and the Florida Highway Patrol Bureau of Criminal Investigations and Intelligence. It will be prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
Colombian Drug Trafficker Indicted and Extradited on Drug Trafficking ChargesRead the Press Release
Tampa, Florida - U.S. Attorney Robert E. O'Neill announces the unsealing of a three-count indictment charging Camilo Torres-Martinez, aka Fritanga, (41) with conspiracy to import into the United States 5 kilograms or more of cocaine; conspiracy to manufacture and distribute 5 kilograms or more of cocaine, intending that it would be unlawfully imported into the United States; and conspiracy to possess with intent to distribute 5 kilograms or more of cocaine, while on board a vessel subject to the jurisdiction of the United States. If convicted, he faces a mandatory minimum sentence of 10 years, up to a maximum penalty of life in federal prison for each count. Torres-Martinez was extradited from Colombia to the Middle District of Florida to face these charges.
According to the indictment, from an unknown date until the date of the indictment, August 20, 2008, Martinez-Torres and his drug trafficking organization (“DTO”) transported large quantities of cocaine in vessels dispatched off the Northern coast of Colombia. Martinez-Torres was the lead operative for the DTO “Los Urabenos,” which controls Northern Colombia’s drug trade. This DTO provided maritime transportation services to cocaine owners who wished to transport their cocaine by sea, through the international waters of the Caribbean. The cocaine was transported from the coast of Colombia to Honduras, for ultimate introduction into, and distribution in, the United States. The DTO utilized speedboats and fishing vessels to transport the cocaine.
On November 8, 2004, the United States Coast Guard (“USCG”), interdicted a 40-foot speedboat in international waters in the Carribean Sea. USCG personnel recovered a total of 2,652 kilograms of cocaine. On July 6, 2005, the USCG interdicted a Honduran-flagged fishing vessel, the Ocean Mystery, in international waters in the Carribean Sea. USCG personnel recovered a total of 2,483 kilograms of cocaine. Both of these vessels were organized and sent out by Martinez-Torres and his organization. Martinez-Torres was arrested while celebrating his marriage in an elaborate wedding on a Caribbean island.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Organized Crime Drug Enforcement Task Force’s (OCDETF) Panama Express Strike Force, comprised of agents and analysts from the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, United States Coast Guard Investigative Service, and the Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. This case is being prosecuted by Assistant United States Attorney Maria Chapa Lopez.
Cleveland Woman Charged with Theft and Social Security FraudRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a two-count indictment charging Bonita A. Armstead, 37, of Cleveland, with one count of theft of government property and one count of Social Security Fraud.
The indictment alleges that Armstead stole and converted to her own use, approximately $122,149.10 in Social Security payments made to her that she was not entitled to receive.
The indictment further alleges that Armstead obtained and used a second Social Security account number to receive Social Security Benefits.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following investigation by agents of the Social Security Administration, Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
City Man Charged with Robbery Metro Bank with FirearmRead the Press Release
Oklahoma City, Oklahoma – JOSHUA ANTONIO MCCLENDON, 27, from Oklahoma City, has been arrested and charged with robbing the First Fidelity Bank located at 700 SW 29th, Oklahoma City, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the criminal complaint, McClendon is alleged to have entered the bank at 4:20 p.m. yesterday, April 25, 2013, armed with a handgun, where he robbed the bank and fled. Oklahoma City Police officers responding to the bank robbery located McClendon in the 700 block of SW 28th where he was arrested without incident.
If convicted, McClendon faces up to 25 years in prison. The public is reminded that the indictment is merely an accusation and that the defendant is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Oklahoma City Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ashley L. Altshuler.
Chinese Gang Leader Convicted of Double Murder and Racketeering Charges in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that XING LIN was convicted yesterday in Manhattan federal court of murdering two individuals in a Queens nightclub in 2004, engaging in racketeering from 1996 through 2010, and extortion. The jury found that LIN, the leader of the criminal enterprise, operated three illegal gambling parlors in Chinatown, extorted bus company owners and murdered two individuals. LIN was convicted after a two-week trial before U.S. District Judge Miriam Goldman Cedarbaum.
Manhattan U.S. Attorney Preet Bharara said: “Xing Lin now stands convicted for his role at the helm of a ruthless and deadly gang that went on a 13-year crime spree of extortion, racketeering, and violence, including a revenge killing and the murder of an innocent bystander. His life of crime is finally over and much of the rest of it will almost certainly be spent in a prison cell.”
According to the Superseding Indictment, other documents filed in Manhattan federal court, and the evidence presented at trial:
From 1996 until December 2009, LIN was the leader and “Dai Lo” - a Fuzhou term that translates as “Big Brother,” but commonly refers to the boss of a criminal gang - of a gang that operated in the Chinatown neighborhood of Manhattan and elsewhere. The members of LIN's gang were known as “followers.” LIN and his followers engaged in a number of criminal ventures, including the operation of high-stakes illegal gambling parlors in the Chinatown neighborhood of Manhattan; the extortion of business owners; and the beating, stabbing, and murder of rivals.
Beginning in 2002, LIN extorted the owners of a bus company that ran buses between Manhattan and Charlotte, North Carolina. In May 2004, Chang Qin Zhou, one of the bus company shareholders who was being extorted by LIN, refused to pay LIN additional money that LIN had demanded. During the early morning hours of July 30, 2004, Zhou was with a group of men and women in a private room in a karaoke bar in Flushing, Queens when LIN and one of his followers forced their way into the private room, and LIN ordered his follower to “shoot” Zhou. The follower shot Zhou six times, killing him. One of the bullets also struck and killed Mei Ying Li, a waitress who was working at the karaoke bar and was in the private room at the time of the shooting. A second waitress was shot in the leg and survived.
Following the shooting in the karaoke bar, LIN relocated his criminal gang to Toronto Canada, where he continued to run gambling parlors and use violence against his rivals.
LIN was arrested in Toronto, Canada, on April 14, 2011. Following extradition, LIN arrived in the United States on August 19, 2011.
LIN, 42, was convicted of one count of conspiracy to commit racketeering, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of racketeering, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of murder, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and extortion, which carries a maximum sentence of twenty years in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense. He was acquitted on one count of extortion conspiracy. LIN is scheduled to be sentenced by Judge Cedarbaum on September 10, 2013, at 11:00 a.m.
Mr. Bharara praised the outstanding investigative work of the New York Field Office of the Immigration and Customs Enforcement's Homeland Security Investigations and the New York City Police Department.
This case is being prosecuted by the Office’s Organized Crime Unit. Assistant United States Attorneys Peter Skinner and Jennifer E. Burns are in charge of the prosecution.
U.S. v. Xing Lin S2 Indictment
Child Pornography Charges Filed Against Cuyahoga Falls ManRead the Press Release
Steven J. Woods, 49, of Cuyahoga Falls, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of OhioThe indictment charges that from on or about February 28, 2013, through on or about April 4, 2013, Woods knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On April 5, 2013, images of child pornography were also found on his external hard drive.
The actual sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Cleveland Office of the United States Secret Service and the Cuyahoga Falls Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bulk Mailing Service to Pay $500,000 to Resolve Claims for Underpaid PostageRead the Press Release
Oklahoma City, Oklahoma -- Bokchito Mail Center, S&T Management, Inc., The Cleaning Authority, Inc. and The Cleaning Authority, LLC (collectively "Bokchito Mail Center and its affiliates"), have agreed to pay $500,000 to the United States to settle allegations that it obtained postage discounts to which is was not entitled, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On behalf of the United States Postal Service, the United States Attorney’s Office reached a settlement of allegations that from September 14, 2006, through February 21, 2008, the Bokchito Mail Center and its affiliates submitted and paid for mailings at a postal rate to which they were not entitled. The Postal Service offers lower postal rates to mailers who comply with certain preparation and sorting requirements because these actions save the Postal Service time and money. The United States alleges that the Bokchito Mail Center and its affiliates claimed and paid the Enhanced Carrier Route postage rate when their mailings did not comply with the preparation and sorting requirements to qualify for that rate.
"Mailers who claim improper postage discounts not only gain an unfair advantage over their competitors, they also short-change the Postal Service of necessary funds to perform their work," said U.S. Attorney Sanford C. Coats. "We will continue to work with the Postal Service to ensure that the proper postage is paid."
"Postal Inspectors appreciate the strong stance U.S. Attorney Sanford Coats has taken against those who try to take advantage of the Postal Service through shortchanging postage," said Fort Worth Division Acting Inspector in Charge Mark Applewhaite. "Among the many roles Postal Inspectors have, one of the most important is to protect the U.S. Postal Service revenue, which ensures a level playing field for all customers, be they large mailers or someone mailing a single envelope."
In reaching this settlement, Bokchito Mail Center and its affiliates did not admit liability, and the government did not make any concession regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Branch Man Pleads Guilty to Theft of Intellectual PropertyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Glenn J. Soileau, 64, of Branch, La., pleaded guilty before U.S. District Magistrate Judge C. Michael Hill to illegally accessing a computer which held valuable copyright protected oilfield intellectual property, to include diagrams, product designs, schematics and oil exploration related materials.
According to the Stipulated Factual Basis at the guilty plea, Soileau admitted that he used a portable USB storage device to access his former employer’s computers at Applied Electronic Systems and Sondex, which are both located in Broussard, La., and subsidiaries of General Electric Oil and Gas (GE). Soileau downloaded more than 3,700 files containing pictures, diagrams and other information relating to tools and equipment used in oilfield exploration work. He then brought the information to his new employer at Advanced Electronic Services, and they used the information for work done at Advanced Electronic Services. After being questioned by GE security staff, Soileau admitted to taking the computer files and providing them to his new employer. FBI agents linked Soileau to the computers used in the theft through the USB.Soileau faces a maximum penalty of five years in prison, a $250,000 fine, restitution, and three years of supervised release for the count of unauthorized access to a protected computer. Sentencing was set for Sept. 13, 2013, in Lafayette. The FBI conducted the investigation. Assistant U.S. Attorney Namie P. Myers is prosecuting the case.
“Theft of intellectual property information is a growing problem in our country,” Finley stated. “We are primarily seeing it here in the oil and gas industry, but it occurs in many other industries. Intellectual Property theft hurts everyone, not just companies, and our office will continue to investigate and prosecute those who violate these laws. On the eve of World IP Day, this prosecution should serve as a deterrent to those who would seek to profit by stealing the intellectual property of others.”
Intellectual property (IP) refers to creations of the mind, inventions, literary and artistic works, and symbols, names, images and designs used in commerce. World IP Day was established by the World Intellectual Property Organization (WIPO) to be celebrated every April 26th in order to promote the discussion of IP in encouraging innovation and creativity. The entire U.S. economy relies on some form of IP, because virtually every industry either produces it or uses it. American IP-intensive industries directly accounted for 27.1 million American jobs or 18.8 percent of all employment in the economy in 2010.Intellectual property (IP) theft is an ongoing problem, and the Department of Justice’s Task Force on Intellectual Property, the National Intellectual Property Rights Coordination Center (IPR Center) and the National Crime Prevention Council (NCPC), and other government and private organizations work to fight IP theft. Citizens can help stop IP theft by not purchasing ‘knock-offs,’ pirated media or other counterfeit goods. To find out more about IP theft the public is encouraged to visit www.justice.gov/dag/iptaskforce, www.iprcenter.gov and www.ncpc.org/topics/intellectual-property-theft.
Bismarck Man Pleads Guilty to Child Pornography ChargeRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 26, 2013, Robert Schmaltz, 36, Bismarck, N.D., pleaded guilty in U.S. District Court to a charge of receipt of materials involving the sexual exploitation of minors.
In a plea petition filed by Schmaltz, Schmaltz admitted to using the Internet to download and view images of child pornography. During a change of plea hearing, Schmaltz agreed that he was found in receipt of 1,507 videos and over 81,000 still images depicting the sexual exploitation of children.
The charge of receipt of materials involving the sexual exploitation of minors carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
This investigation was initiated by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the Bismarck Police Department, with the assistance of the Burleigh County
State’s Attorney’s Office.Sentencing for Schmaltz has been scheduled for July 15, 2013, in U.S. District Court in Bismarck, N.D., at 3:00 p.m.
This case was brought as a 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 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.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Baltimore Man Exiled to over 12 Years for Armed RobberiesRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Branch Sparrow, age 31, of Baltimore, Maryland, today to 150 months in prison followed by five years of supervised release for armed robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Sparrow's plea agreement, on August 26, 2011, Sparrow and co-defendant Allen Benny robbed a bar in the 3600 block of Fleet Street in Baltimore. Sparrow was armed with a 7.62 caliber pistol. Upon entering the bar, Sparrow brandished the gun at employees and customers of the bar, threatening them with violence, while Benny stole approximately $800 from the cash register. The two fled the bar, but were seen a short while later by police officers responding to the robbery. As the officers approached, they saw Sparrow discard a gun in a nearby trash can. Officers recovered the gun and arrested Sparrow and Benny. The officers recovered $800 from Benny’s pants pocket.
Sparrow admitted that on August 25th, he also committed an armed robbery of a convenience store in the 4800 block of O’Donnell Street in Baltimore, brandishing a gun at the store employee and stealing an unknown amount of cash from the store’s cash register. Sparrow also attempted to rob a store in the 5800 block of Pulaski Highway on August 13th, again brandishing a gun at a store employee and demanding money from the cash register. Rather than open the register, the store employee fled and Sparrow left the store.
Benny, age 47, also of Baltimore, previously pleaded guilty and was sentenced to four years in prison.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Kenneth S. Clark, who prosecuted the case.
Alabama Residents Indicted for Stolen Identity Refund Fraud ConspiracyRead the Press Release
Several residents of Montgomery, Ala., were indicted by a federal grand jury for their involvement in a conspiracy to receive fraudulent tax refunds into their bank accounts, the Justice Department and the Internal Revenue Service (IRS) announced today. Tarrish Tellis, Bobby Joe Means, Delancy Tolliver, Tracey Montgomery and Glenn Powell Jr. were indicted on various charges, including conspiracy and theft of government money. Tellis was also indicted on five counts of aggravated identity theft.
According to the indictment, Tellis obtained the means of identification of individuals, including their names, dates of birth, and Social Security numbers for the purpose of filing false federal income tax returns. Means, Tolliver, Montgomery and Powell provided Tellis with bank account numbers that were to receive the false federal income tax refunds. Tellis would then use the bank account numbers and means of identification to cause to be prepared and filed false federal income tax returns with the IRS. After the false refunds were deposited, Means, Tolliver, Montgomery and Powell would withdraw the funds. The bank accounts received at least $500,000 in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each of the defendants face a maximum potential sentence of five years in prison for the conspiracy charge, up to ten years in prison on each theft of government funds charges. Tellis also faces a mandatory two-year sentence for the aggravated identity theft counts. The defendants will also be subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case, with the assistance from the U.S. Attorney's Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Alabama Residents Indicted for Tax Refund FraudRead the Press Release
Montgomery, Alabama - Several residents of Montgomery, Ala., were indicted by a federal grand jury for their involvement in a conspiracy to receive fraudulent tax refunds into their bank accounts, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Tarrish Tellis, Bobby Joe Means, Delancy Tolliver, Tracey Montgomery, and Glenn Powell, Jr. were indicted on various charges, including conspiracy and theft of government money. Tarrish Tellis was also indicted on five counts of aggravated identity theft.
According to the indictment, Tarrish Tellis obtained the means of identification of individuals, including their names, dates of birth, and Social Security numbers for the purpose of filing false federal income tax returns. Bobby Joe Means, Delancy Tolliver, Tracey Montgomery, and Glenn Powell, Jr. provided Tellis with bank account numbers that were to receive the false federal income tax refunds. Tellis would then use the bank account numbers and means of identification to cause to be prepared and filed false federal income tax returns with the Internal Revenue Service. After the false refunds were deposited, Means, Tolliver, Montgomery, and Powell would withdraw the funds. The bank accounts received at least $500,000 in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each of the Defendants face a maximum potential sentence of 5 years in prison for the conspiracy charge, up to 10 years in prison on each theft of government funds charges. Tellis also faces a mandatory two-year sentence for the aggravated identity theft counts. They will also be subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case, with the assistance from the U.S. Attorney's Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alabama Man Indicted for Multi-Million Dollar Stolen Identity Refund Fraud Scheme Using Prisoner IdentitiesRead the Press Release
A federal grand jury in Montgomery, Ala., returned an indictment charging Harvey James for using stolen identities to file false tax returns, the Justice Department the Internal Revenue Service (IRS) announced today. The 34-count indictment charges James with mail fraud and aggravated identity theft.
According to the indictment, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file false federal and state tax refunds. James directed some of the false refunds to be sent to either prepaid debit cards or issued via check. He directed some of the prepaid debit cards and state tax refund checks to be mailed to various addresses on a U.S. Postal Service mail carrier’s route which was located in Montgomery, Ala. Between 2010 and 2012, James and others are alleged to have filed over 2,000 federal and state income tax returns that claimed over $2.5 million in fraudulent tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, James faces 20 years imprisonment for each mail fraud count and a mandatory 2-year sentence for the aggravated identity theft counts. He is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Alabama Man Indicted for Multi-Million Dollar Scheme to Useprisoner Identities to Obtain False Tax RefundsRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, AL, returned an indictment charging Harvey James for using stolen identities to file false tax returns, announce George L. Beck, Jr, U.S. Attorney for the Middle District of Alabama. The 34-count indictment charges James with mail fraud and aggravated identity theft.
According to the indictment, Harvey James obtained stolen identities from individuals who had access to inmate information from the Alabama Department of Corrections. James and others used those inmate names to file false federal and state tax refunds. James directed some of the false refunds to be sent to either prepaid debit cards or issued via check. He directed some of the prepaid debit cards and state tax refund checks to be mailed to various addresses on a U.S. Postal Service mail carrier’s route which was located in Montgomery, Alabama. Between 2010 and 2012, James and others filed over 2,000 federal and state income tax returns that claimed over $2.5 million in fraudulent tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, he faces 20 years imprisonment for each mail fraud count and a mandatory 2-year sentence for the aggravated identity theft counts. He is also subject to fines, mandatory restitution, and forfeiture if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the United States Department of Justice, Tax Division, and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
25 April 2013
Woman Who Threatened Violent Attack at Community College Pleads Guilty to Federal Hoax ChargeRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, announced that AMANDA C. BOWDEN, 19, of East Haven, waived her right to indictment and pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to threatening to carry out a violent attack at Gateway Community College in New Haven.
“In text messages and recorded conversations, this defendant explicitly detailed her threats which included a planned shooting and bombing at Gateway Community College,” stated U.S. Attorney Fein. “Our Office takes all such threats with utmost seriousness and will prosecute them to the fullest extent of federal law. I commend the FBI’s Joint Terrorism Task Force and the New Haven and East Haven Police Departments for quickly identifying and neutralizing this threat.”
“FBI New Haven’s Joint Terrorism Task Force acted immediately to investigate Bowden’s threats and make an arrest,” stated FBI Special Agent in Charge Mertz. “The investigation was very thorough and supported a successful prosecution. Most importantly, however, was that the JTTF was able to monitor and assess the threats in real-time, with the safety and security of Gateway students, the City of New Haven and the general public always being our first priority.”
According to court filings and statements made in court, between approximately February 4 and February 16, 2013, BOWDEN made numerous telephonic threats, initially through text messaging with a cooperating witness and subsequently through text messaging and verbal conversations with an undercover law enforcement agent, discussing her plans to commit a suicidal mass shooting and bombing at Gateway Community College in New Haven. In these communications, BOWDEN claimed to possess firearms and to have constructed at least two napalm-based bombs at her residence.
BOWDEN has been detained since her arrest on February 19, 2013. On that date, investigating agents conducted a court-authorized search of BOWDEN’s East Haven residence. No firearms or explosive devices were found during the search.
BOWDEN pleaded guilty to one count of false information and hoaxes, a charge that carries a maximum term of imprisonment of five years and a fine of up to $250,000. She is scheduled to be sentenced by United States District Judge Michael P. Shea on July 13, 2013, in Hartford.
This matter was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the New Haven Police Department and the East Haven Police Department. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
This case is being prosecuted by Assistant United States Attorney Henry K. Kopel.
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(203) 821-3722 [email protected]Winston County Man Pleads Guilty to Arson at Poultry Company OfficeRead the Press Release
TUSCALOOSA – A Northwest Alabama man pleaded guilty Wednesday to arson for a December fire at a Marshall Durbin office building in Haleyville, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
CHARLES WILLIAM HEAVNER JR., 43, of Hackleburg, entered his plea before U.S. District Judge L. Scott Coogler to one count of maliciously damaging the Marshall Durbin Field Operations Office with fire on Dec. 4. Heavner is scheduled for sentencing Aug. 14.
He faces a maximum sentence of 20 years in prison and a $250,000 fine.
According to Heavner's plea agreement with the government, the arson unfolded as follows:
Marshal Durban had not provided baby chicks for Heavner to raise because of maintenance problems with the chicken housing facilities on his farm. Heavner was angry about that decision on the morning of Dec. 4 and had threatened physical violence against the company's broiler manager, Joe Bolding. Bolding called an employee at the operations office, warned her of Heavner's threats and told her to lock the office door. As she did so, she saw Heavner pull into the parking lot, take an orange five-gallon bucket and a walking cane from his truck and approach the building with liquid sloshing out of the bucket. She told him he couldn't come in, but after she locked the door he tried to kick it in.
Employees outside the office building were called to help and arrived to find the front of the building on fire. They used fire extinguishers to put out the flames. The orange bucket was recovered in the back of a company truck parked near the building and Heavner's cane and a cigarette lighter were found beside the building. Traces of gasoline were discovered in the bucket.
Heavner fled and was later arrested in Oklahoma.
The ATF, Alabama State Fire Marshal, U.S. Marshals Service, and the Winston County Sheriff's Office investigated the case. Assistant U.S. Attorney Michael W. Whisonant Sr. is prosecuting the case.
Wilkinsburg Man Sentenced to Prison for Illegally Possessing A .22 RifleRead the Press Release
PITTSBURGH, Pa. - A resident of Wilkinsburg, Pa., has been sentenced in federal court to 94 months in prison and five years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Khalifah Ali Al-Akili, a/k/a James Marvin Thomas, 34.
According to information presented to the court, Khalifah Ali Al-Akili, a convicted felon, illegally possessed a .22 rifle.
Assistant United States Attorney James R. Wilson prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Khalifah Ali Al-Akili.
Westchester Man Charged in White Plains Federal Court with Engaging in, and Videotaping, Sexual Activity with MinorsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations in New York (“HSI”), announced today the unsealing of an Indictment charging RICHARD DINIZO, a/k/a “Rick,” a/k/a “Riccardo,” with engaging in sexual activity with five different minors, all under the age of 11 when the alleged crimes occurred, and with videotaping the sexual abuse. DINIZO is also charged with transporting videos depicting him engaging in sexual activity with minors to recipients outside of New York. DINIZO was arrested this morning and will be presented at about 10:30 a.m. before U.S. Magistrate Judge Lisa Margaret Smith in White Plains federal court.
U.S. Attorney Preet Bharara stated: “As alleged, Richard Dinizo was a serial pedophile who not only recorded his deviant criminal acts, but shared those videos with others. Sexual exploitation of children is a heinous crime that can scar its victims forever and we will continue to prosecute those crimes aggressively.”
Special Agent in Charge James T. Hayes, Jr. stated: “People who allegedly put our children at risk should expect to be found, prosecuted, and removed from society. We will continue to dedicate our resources to aggressively target sexual predators who exploit our children.”
DINIZO faces a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison on each of five counts of sexual exploitation of a minor, and a minimum of five years in prison and a maximum sentence of 20 years in prison for transporting child pornography.
Mr. Bharara praised the efforts of ICE HSI, the Westchester County District Attorney’s Office, the Putnam County District Attorney’s Office, Putnam County Sherriff’s Office, the New York State Police, and the National Center for Missing and Exploited Children in connection with this investigation.
Mr. Bharara stated that the investigation is ongoing. He also noted that since DINIZO is alleged to have employed trickery and deceit, his victims may not have been aware that they were victims of sexual abuse. Mr. Bharara requests that individuals with relevant information and parents whose children may have had any interactions with DINIZO contact the Department of Homeland Security, in New York, New York, at (646) 313-4380.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
U.S. v. Richard Dinizo Indictment
Washington DC Doctor Indicted on Rx Drug ChargesRead the Press Release
ABINGDON, VIRGINIA -- A Washington D.C.-based doctor has been indicted by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Abingdon on allegations of illegally distributing prescription drugs.
The grand jury has charged Alen Johannes Salerian, 65, of Bethesda, Md., in a 36-count indictment that was unsealed this afternoon following the defendant’s initial court appearance.
Salerian has been charged with one count of conspiring to distribute OxyContin, oxycodone, methadone, Opana ER and fentanyl, all schedule II controlled substances, without a legitimate medical purpose and beyond the bounds of medical practice and 35 counts of distributing OxyContin, oxycodone, and methadone, all schedule II controlled substances, without a legitimate medical purpose and beyond the bounds of medical practice.
According to the indictment, between 2001 and 2010, Salerian, a medical doctor, operated the Washington Center for Psychiatry in Washington D.C. In 2010, Salerian renamed his practice The Salerian Center for Neuroscience and Pain.
During the time relevant to this indictment, office fees for pain management patients at the Washington Center for Psychiatry and The Salerian Center for Neuroscience and Pain were increased so that pain management patients were charged higher fees for office visits than psychiatric patients. In 2009, according to the practice's fee schedule, an "Initial Assessment" cost $290, and "Medication visits 10-15 minutes" cost $155. There was no separate cost listed for pain management patients. In 2010, according to the practice's fee schedule, the fee for a new psychiatric patient visit was $295, "Medication Visits 10-15 minutes" cost $160, and psychotherapy visits lasting 25-30 minutes cost $260. All appointments for pain management patients in 2010 cost $350. In 2011, the fee for a new psychiatric patient visit was increased to $310 and subsequent office visits cost $170. A new patient visit for a pain management patient was increased in 2011 to $1000, and the "monthly fee" was increased to $370.
During times relevant to this indictment, pain management patients at the Washington Center for Psychiatry and The Salerian Center for Neuroscience and Pain were provided materials advising them monthly consultations were required, either in person or via telephone. Some patients were advised orally that every second, third, and fourth appointment could be conducted via telephone or via live Internet communication. Phone and Internet consultations were billed at the same rate as follow-up monthly office visits. Following a phone or Internet consultation, prescriptions were either available for pick-up at the Center or were sent to the patient or pharmacy.
The indictment alleges that between 2007 and April 5, 2012, Salerian distributed and dispensed, and caused the distribution and dispensing, of the prescription pain medications OxyContin, oxycodone, methadone, Opana ER, and fentanyl to pain management patients without a legitimate medical purpose and beyond the bounds of medical practice.If convicted, the maximum possibly penalty faced by the defendant for each count of conviction is up to 20 years in prison and/or a fine of up to $1,000,000.
The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Health and Human Services-Office of the Inspector General, the Office of Personnel Management-Office of the Inspector General, the Virginia State Police, and the Federal Bureau of Investigation. Assistant United States Attorney Jennifer Bockhorst and Special Assistant United States Attorney Dennis Lee will prosecute the case for the United States.A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.