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25 April 2013
New Jersey Investor Pleads Guilty for Role in Bid-Rigging Scheme at Municipal Tax Lien AuctionsRead the Press Release
A financial investor who purchased municipal tax liens pleaded guilty today for his role in a conspiracy to rig bids for the sale of tax liens auctioned by municipalities in New Jersey, the Department of Justice announced.
A felony charge was filed today in U.S. District Court for the District of New Jersey in Newark, against Norman T. Remick, of Barnegat, N.J. According to the charge, from in or about the beginning of 2007 until approximately February 2009, Remick participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to allocate among certain bidders which liens each would bid on. The department said that Remick proceeded to submit bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.
“The conspirators illegally met and engaged in anticompetitive discussions to allocate bids amongst themselves at tax lien auctions in New Jersey, depriving distressed homeowners of competitive interest rates at a time when they most needed them,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Prosecuting these types of bid-rigging schemes remains a top priority for the division.”
The department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates. When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes. If the taxes remain unpaid after a waiting period, the lien may be sold at auction. State law requires that investors bid on the interest rate delinquent property owners will pay upon redemption. By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent. If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached.According to the court documents, Remick was involved in a conspiracy with others not to bid against one another at municipal tax lien auctions in New Jersey. Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens that earned a higher interest rate. Property owners were, therefore, made to pay higher interest on their tax debts than they would have paid had their liens been purchased through open and honest competition, the department said.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the $1 million statutory maximum.Today’s plea is the 12th guilty plea resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions. Eight individuals – Isadore H. May, Richard J. Pisciotta Jr., William A. Collins, Robert W. Stein, David M. Farber, Robert E. Rothman, Stephen E. Hruby and David Butler – and three companies – DSBD LLC, Crusader Servicing Corp. and Mercer S.M.E. Inc. – have previously pleaded guilty as part of this investigation.
Today’s charge was brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This ongoing investigation is being conducted by the Antitrust Division’s New York Office and the FBI’s Atlantic City, N.J., office. Anyone with information concerning bid rigging or fraud related to municipal tax lien auctions should contact the Antitrust Division’s New York Field Office at 212-335-8000, visit www.justice.gov/atr/contact/newcase.htm or contact the Atlantic City Resident Agency of the FBI at 609-677-6400.
New Challenges. New SolutionsRead the Press Release
U. S. ATTORNEY’S OFFICE FOR THE DISTRICT OF ARIZONA OBSERVES NATIONAL CRIME VICTIMS’ RIGHTS WEEKPhoenix - U.S. Attorney John S. Leonardo announced that several individuals were honored for outstanding service to crime victims in an awards ceremony hosted by the U.S. Attorney’s Office on April 25, 2013. These awards were presented in conjunction with the observance of National Crime Victims’ Rights Week, April 21-27, 2013. This year’s theme, “,” focuses on the need to be innovative and flexible in our efforts to assist and serve each and every victim in need of hope and help.
The recipients of this year’s awards were Navajo Nation Officer Vernon Begay for his courage and bravery; The Colorado River Indian Tribes Multi-Disciplinary Team; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Special Agents William “Cody” Nuckles and Greg Kelly; U.S. Postal Inspector David Birch, and U.S. Attorney’s Office Victim Witness Specialist Mary Williams.
“The U.S. Attorney’s Office is deeply committed to assisting victims of federal crimes, ensuring they are afforded their rights under the Crime Victims’ Rights Act, protecting them from further harm, and helping them reshape their futures,” said U.S. Attorney John S. Leonardo. “This week is a time to raise awareness about the rights and needs of crime victims, the challenges victims face in the recovery process, and the positive impact of those who provide services and support to victims.”
The U.S. Attorney’s Office also honored families who lost a loved one to a crime of violence. Victims recognized during the ceremony included Sergeant Darrell Curly of the Navajo Nation, Mat Stauffer, Jr. of the San Carlos Apache Indian Reservation, and Lorena Mae Martin of the Navajo Nation.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The District of Arizona has a dedicated Victim Witness Unit that serves federal crime victims across the District’s 15 counties. Members of this unit notify victims of significant case events through the Department of Justice’s Victim (DOJ) Notification System (VNS) and help victims to understand their rights. Such notice enables victims to participate in court proceedings and make their voices heard. According to Department of Justice Statistics, in Fiscal Year (FY) 2012, the U.S. Attorneys’ offices provided notice of over 12.2 million case events, including notices regarding criminal charges filed, plea hearings, bond hearings and sentencing hearings.
Notification of significant case events leads to increased victim participation in court proceedings and accompanying victims to court provides support and guidance during these proceedings.
In addition to notification and court accompaniment, the District of Arizona’s Victim Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, and assisting victims with compensation resources. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
RELEASE NUMBER: 2013-035_CVRW
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Mortgage Broker Pleads Guilty to $100 Million Loan Origination Fraudfourth Defendant to Plead Guilty in Scheme That Led to $14.5 Million in KickbacksRead the Press Release
United States Attorney Laura E. Duffy and Federal Housing Finance Agency Inspector General Steve A. Linick announced today that Mary Armstrong, an unlicensed mortgage broker who operated a nationwide loan origination fraud and kickback scheme from San Diego, pled guilty today before United States District Judge John A. Houston to all five counts of an indictment charging her with wire fraud, money laundering, and conspiracy. Armstrong was indicted on May 10, 2012, and apprehended in Las Vegas, Nevada, in July 2012; she has been held in custody since her arrest.
As part of today's guilty plea, Armstrong admitted that she defrauded mortgage lenders by arranging for the sale of $100 million worth of real estate at inflated prices, and then siphoned the overpayments to bank accounts she controlled. She created false loan applications on behalf of straw buyers, then arranged for her co-conspirators to create fake documents in support of those applications, including W-2 forms, pay stubs, bank statements, and other records. According to Armstrong's accountant and tax preparer, Audrey Yeboah, who pled guilty in October 2012 to participating in the same scheme, Armstrong collected over $14.5 million in kickbacks from the fraudulently-obtained mortgage loans.
Armstrong joins defendants Teresa Rose, a Ramona real estate agent; Seattle businessman Justin Mensen; and Yeboah; each of whom has pled guilty to participating in the scheme. These defendants admitted that they carried out their scheme by recruiting "investors" through the Internet and advertisements in the LA Times, and offering them the opportunity to purchase homes located in Southern California, Washington state, and elsewhere. In reality, these so-called "investors" were nothing more than straw buyers who were promised $10,000 for each property purchased as part of the scheme. The defendants were able to secure mortgages for the properties by falsifying loan applications for the straw buyers, falsely claiming exorbitant income from fake employers and using fake W-2s and pay stubs to support the claims. The defendants submitted these fraudulent loan applications to mortgage lenders to obtain 100% financing - and thus avoided having to make any down payment on the properties.
According to the defendants' plea agreements, they profited on these fraudulently-acquired mortgage loans by inflating the purchase price of the properties by $100,000 (or more), and having the straw borrowers kick-back to them the illicit proceeds. Although the conspirators claimed to lenders that the extra money would be used for construction improvements, in fact, the conspirators funneled the money to sham "construction" companies that they controlled, thereby concealing their kick-backs.
Armstrong admitted that after the conspirators collected the overpayments, the straw buyers defaulted on the mortgage loans, resulting in mortgage lenders and secondary purchasers, including Fannie Mae and Freddie Mac, suffering losses of up to $20 million.
Two additional defendants charged as part of the scheme, John Allen and William Fountain, are scheduled to begin trial on November 5, 2013. The public is reminded that an indictment is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
United States Attorney Duffy commented, “Armstrong's fraudulent conspiracy endangered not only the particular lenders ensnared in her scheme, but every American who subsequently suffered from the destabilization of the housing and financial sectors. And the country's taxpayers were ultimately left 'holding the bag' when forced to bail out Fannie Mae and Freddie Mac. Today's guilty plea is another important step in this Office's aggressive prosecution of such financial frauds, and the vindication of all Americans who have suffered in the recent financial crisis.”
FBI Special Agent in Charge Daphne Hearn commented, “Mortgage fraud losses cost taxpayers billions of dollars every year and is a threat to our national economy. The FBI will continue to dedicate substantial amount of expert resources to investigate these crimes.”
United States Attorney Duffy reminded the community that anyone with information relating to these charges should contact the San Diego branch of the Federal Bureau of Investigation at (858) 565-1255, or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
A sentencing hearing is scheduled for Armstrong before Judge Houston on August 12, 2013, at 8:30 a.m.
DEFENDANTS Criminal Case No. 12CR1848-JAH Mary Armstrong
Teresa Rose
William Fountain
John Allen SUMMARY OF CHARGESCount 1: Title 18, U.S.C., Section 371 -- Conspiracy to Commit Wire Fraud and to Launder
Money; Maximum Penalty: 5 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment. (All Defendants)Count 2: Title 18, U.S.C., Section 1343 -- Wire Fraud; Maximum Penalty: 20 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment. (Mary Armstrong)
Counts 3-5: Title 18, U.S.C., Section 1956 (a)(1)(B)(I) -- Money Laundering; Maximum
DEFENDANT Criminal Case No. 12CR1458-JAH Justin Mensen SUMMARY OF CHARGES Title 18, U.S.C., Section 371 -- Conspiracy to Commit Wire Fraud and to Launder Money;
Penalty: 15 years' custody, a maximum fine of $500,000 or twice the value of the property involved in the transaction, and $100 special assessment. (Mary Armstrong)
Maximum Penalty: 5 years custody, a maximum fine of $250,000 or twice the
gain derived from or loss caused by the offense, and $100 special assessment. DEFENDANT Criminal Case No. 12CR4322 -JAH Audrey Yeboah SUMMARY OF CHARGES Title 18, U.S.C., Section 1343 -- Wire Fraud; Maximum Penalty: 20 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment. INVESTIGATING AGENCIESFederal Bureau of Investigation
Federal Housing Finance Agency-Office of Inspector GeneralMinneapolis Felon Indicted for Possessing A Nine-millimeter Pistol as Well as HeroinRead the Press Release
MINNEAPOLIS—Recently in federal court, a 59-year-old Minneapolis felon was indicted for possessing a nine-millimeter pistol as well as heroin. On April 22, 2013, Robert Lee Powers was specifically charged with one count of being a felon in possession of a firearm and one count of possession with intent to distribute heroin. Earlier today, Powers had his initial appearance in federal court.
The indictment alleges that on March 18, 2013, Powers possessed the pistol as well as a detectable amount of heroin. Because he is a felon, he is prohibited under federal law from possessing a firearm at any time. He was previously convicted in Hennepin County for third-degree sale of crack cocaine (1989), offering a forged check (1992), fourth-degree sale of crack cocaine (1992), attempted first-degree criminal sexual conduct (1992), a third-degree controlled substance crime (2000), an attempted fifth-degree controlled substance crime (2004 and 2005), a fifth-degree controlled substance crime (2008 and 2009), and theft of a motor vehicle (2009). In addition, Powers was convicted in Washington County for conspiracy to commit a controlled substance crime (1996) and being a predatory offender providing false information (2005).Because at least three of these convictions constituted violent crimes or major drug crimes, Powers is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted under federal law for being a felon in possession of a firearm or ammunition. In addition, Powers faces a potential maximum penalty of 20 years in federal prison for possession with intent to distribute heroin. Any sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Minneapolis Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Minneapolis Felon Indicted for Possessing A .38-caliber RevolverRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 28-year-old Minneapolis felon with possessing a .38-caliber revolver. The indictment, which was filed on April 22, 2013, charges Paul McCurry with one count of being a felon in possession of a firearm. The indictment was unsealed following McCurry’s initial appearance in federal court.
The indictment alleges that on March 26, 2013, McCurry possessed the handgun. Because he is a felon, McCurry is prohibited under federal law from possessing a firearm at any time. McCurry was previously convicted in Hennepin County for aggravated robbery (2005), fleeing police in a motor vehicle (2005), and domestic assault by strangulation (2008). Because those convictions constituted crimes of violence, McCurry is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.
This case is the result of an investigation by the Minneapolis Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Mexican National Sentenced on Drug ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 35-year-old Mexican national who resided in the Reading area at the time of his arrest was sentenced to serve 10 years in prison for participating in a drug trafficking conspiracy by Senior U.S. District Court Judge A. Richard Caputo.
According to United States Attorney Peter J. Smith, Jose Luis Sandoval-Martinez previously pleaded guilty to conspiracy to distribute more than five kilograms of cocaine and more than 500 grams of methamphetamine. The drug conspiracy operated in the Schuylkill and Berks County area between August and November 2011. Sandoval-Martinez was indicted by a federal grand jury in November 2011, as a result of an investigation by the Drug Enforcement Administration.Judge Caputo also ordered that Sandoval-Martinez be placed on five years of supervised release after serving his prison sentence, and pay a $100 special assessment. Sandoval-Martinez also faces possible deportation as a result of his conviction.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Metro Gang Task Force Arrests Scores of Defendants Charged with Drug Trafficking CrimesRead the Press Release
DENVER – This morning 350 agents and officers of the Metro Gang Task Force and other agencies arrested people who have been charged by indictment for drug trafficking crimes. Thirty-three people were arrested throughout the Front Range today. Five of those indicted are already in custody on unrelated charges. There are three fugitives. In addition to the arrests, agents and officers executed a number of search warrants. Those arrested were transported to U.S. District Court in Denver where they made their initial appearance. The defendants who did not appear in court today will be taken to court tomorrow.
Earlier this week the U.S. Attorney’s Office obtained three indictments charging two unrelated drug trafficking organizations. The investigation and the indictments were obtained by the U.S. Attorney led Organized Crime Drug Enforcement Task Force (OCDETF).
The first indictment charged 19 people with cocaine and crack cocaine trafficking crimes. Many of those charged in this operation, known as “Pig Pen”, are affiliated with a local violent street gang.
The second and third indictments charged a total of 22 people with cocaine and methamphetamine trafficking crimes. This operation is known as “Xterra Range.” The second indictment charged defendants with knowingly and intentionally distribute and possess with intent to distribute 5 kilograms or more of cocaine. The third indictment charged defendants with knowingly and intentionally distribute and possess with the intent to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture containing a detectable amount of methamphetamine. The methamphetamine, most of which was 90 percent pure, was trafficked from Mexico to Colorado through California.
In one instance money was found in a sophisticated hidden compartment underneath the seat of a vehicle. In another instance, the methamphetamine was found in a hidden compartment built into the frame of a vehicle. Some of the methamphetamine was sent from California to Colorado in a liquid form, some of which was then crystallized once it arrived in Denver. This is a new way of smuggling methamphetamine into the state. Also, two defendants face federal firearm charges.
In the “Pig Pen” indictment, the following defendants have been charged:
Brandon Lee Brown
Jerrica Allen
Hubert Asberry
Marcus Baker
Brandon Dujuan Brown
Crystal Butler
Wesley Conner
Rodney Delatorre Reyna
Kent Hooks
Stephanie Kirby
Arturo Martinez
Dusty Medeiros
Jamila Powers
Sorl Shead, Jr.
Leon Simmons
Richard Stephenson
Arnell Stewart
Julian Wheeler
Leonard WrightThe highest charge each defendant faces in “Pig Pen” is knowingly and intentionally conspiring to distribute, and possess with the intent to distribute one or more of the following: 280 grams or more of crack cocaine, and 500 grams or more of cocaine. If convicted, each defendant faces a penalty of not less than 10 years, and not more than life in federal prison, as well as a fine of up to $4,000,000.
In the cocaine “Xterra Range” indictment, the following have been charged:
Marco Ontiveros
Pedro Lujano-Gonzalez
Carlos Antillon-Fernandez
Ernesto Garcia
Jose Guadalupe Morales-Martinez
Bernardino Gamillo
Juan Sandoval
Jesus Garcia-SalasThe highest charge each defendant faces is knowingly and intentionally conspiring with each other to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. If convicted, each defendant faces not less than 10 years, and not more than life in federal prison, as well as a fine of up to $4,000,000.
In the methamphetamine “Xterra Range” indictment, the following have been charged:
Fernando Mendoza-Gomez
Eliseo Avalos-Torres
Pedro Lujano-Gonzalez
Carlos Salcido-Garcia
Ernesto Garcia
Raul Mendoza-Lopez
Santos Adolfo Funez
Federico Lopez
Jose Escalera-Garcia
Ruri Escalera
Quang Pham
Bernardino Gamillo
Roberto Trevino
Justin Garcias-Salas
Jamie Graham
Martin Arizmendi-Moreno
Ignacio Gomez-RodriguezIt is important to note that five of the defendants charged in the second indictment were also charged in the third indictment.
The highest charge each defendant (with the exception of the last defendant listed) faces is knowingly and intentionally conspiring with each other to distribute and possess with the intent to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture containing methamphetamine. If convicted, each defendant, except the last one listed, faces not less than 10 years, and not more than life in federal prison, as well as a fine of up to $4,000,000.
Each indictment also contains an asset forfeiture allegation. The allegation states that upon conviction, the defendants shall forfeit to the United States any and all property, real or personal, involved in such offense, or any property traceable to such property, including but not limited to a money judgment in the amount of proceeds involved in the offense.
The Metro Gang Task Force is comprised of the following agencies: Denver Division of the Federal Bureau of Investigation, Homeland Security Investigations, Adams County Sheriff's Office, Arapahoe County Sheriff's Office, Aurora Police Department, Colorado National Guard, Commerce City Police Department, Denver District Attorney's Office, Denver Police Department, Englewood Police Department, Jefferson County Sheriff's Office, Rocky Mountain HIDTA and the Thornton Police Department.
In addition, the U.S. Marshals Service and the Greeley Police Department provided assistance with arresting some of the defendants. Further, the Arapahoe County Social Services and the Adams County Social Services are also assisting with the takedowns.
The “Pig Pen” case is being prosecuted by Assistant U.S. Attorney Susan Knox. The “Xterra Range” cases are being prosecuted by Assistant U.S. Attorney Kasandra Carleton.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Merchant Mariner Pleads Guilty to Transportation of Child PornographyRead the Press Release
NORFOLK, Va. – David Tallman, 53, a merchant mariner on the USNS Laramie stationed in Norfolk, Va., has pleaded guilty to transportation of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after the plea was accepted by United States Magistrate Judge Douglas Miller.
Tallman was indicted on February 21, 2013, by a federal grand jury on charges of transportation, receipt and possession of child pornography. Tallman faces a minimum penalty of 5 years in prison and a maximum penalty of 20 years in prison when he is sentenced on July 24, 2013.
According to a statement of facts filed with his plea agreement, Tallman was identified as making payments to persons in the Philippines for live streaming videos and images of child pornography. Tallman would chat with the women online, and they would live-stream pornographic images of themselves and of the sexual abuse of minors on the Internet or send him images by e-mail. Tallman had a large collection of child pornography with him at the time of port entry into Norfolk and most of the children appeared to be of Pacific Asian descent.
This case was investigated by Homeland Security Investigations. Assistant United States Attorney Elizabeth M. Yusi 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.McLaughlin Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Verle Janis a/k/a Verl Janis, age 31, of McLaughlin, South Dakota appeared before U.S. District Judge Charles B. Kornmann on April 23, 2013 and pled guilty to a Superseding Information that charged him with Assaulting, Resisting and Impeding a Federal Officer. The maximum penalty upon conviction is 8 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction stems from an incident in January of 2013 when a Bureau of Indian Affairs (BIA) officer was dispatched to the Bear Soldier West housing project in McLaughlin. Upon arrival, he observed several individuals in the residence and requested a warrant check. He was advised that Janis was on probation with conditions that prohibited alcohol. When the officer attempted to place the Defendant in handcuffs, he became uncooperative and refused to comply. The BIA Officer removed his taser and the Defendant momentarily complied and was placed in the back seat of the patrol unit.
The BIA Officer then secured several personal items left in the house by the Defendant and upon opening the back door to the patrol unit, was kicked in the shoulder by the Defendant. The BIA Officer was forced to remove the Defendant from the patrol unit in order to place him in leg restraints. As he attempted to secure the Defendant, the Officer was kicked in the leg several times.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for July 22, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Martin Lee Roman Nose Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 25, 2013, before U.S. District Judge Richard F. Cebull, MARTIN LEE ROMAN NOSE, a 23-year-old resident of Ashland and an enrolled member of the Northern Cheyenne Tribe, pled guilty to sexual abuse of a minor. A sentencing date will be set at a later time. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 27, 2011, ROMAN NOSE and his girlfriend came across the 15-year-old victim and took her to their apartment. All three were drinking during the walk to the apartment and at the apartment. At some point, ROMAN NOSE and his girlfriend started to fight. ROMAN NOSE eventually locked her out of the apartment.
ROMAN NOSE and the victim were left alone in the apartment. ROMAN NOSE followed the victim into a bedroom, drank with her, and then sexually abused her.
ROMAN NOSE was interviewed twice. He initially denied sexually abusing the victim. However later he admitted that he did, but recanted again saying that he only made the admission because he believed it was what the agents wanted him to say.
ROMAN NOSE faces possible penalties of 15 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Marijuana Trafficking via Intracoastal Waterway Sends Kingsville Man to PrisonRead the Press Release
CORPUS CHRISTI, Texas - Michael "Mickey" Pena, 46, of Kingsville, has been ordered to prison following his conviction of conspiring to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. A federal jury convicted Pena on Feb. 4, 2013, after less than one day of trial and only 30 minutes of deliberation.
Today, Senior U.S. District Judge Janis Graham Jack, who presided over the trial, handed Pena a sentence of 97 months. Pena asked the court’s forgiveness and stated he had fallen on hard economic times. In handing down the sentence, Judge Jack told Pena that “you have choices when you go down this road.” She further noted that even though he was a minor participant in the conspiracy, she would not impose a more lenient sentence because Pena perjured himself at trial and did not accept responsibility until after the jury’s verdict. Pena will be required to serve a term of four years of supervised release following completion of the prison term.
During trial, the government proved Pena participated in a drug trafficking organization that transported large amounts of marijuana concealed in the hulls of altered shallow-bottom fishing boats. The drugs were transported via the intra-coastal waterway from Port Mansfield to Corpus Christi in an effort to circumvent Border Patrol checkpoints in Falfurrias and Sarita. Testimony revealed that in early 2012, organization members deconstructed a 21-foot Dargel Scout fishing boat, loaded the hull of the vessel with more than 1,100 pounds of marijuana and rebuilt the deck of the boat over the course of 20 days. The boat was then launched in Port Mansfield. Co-defendant Rogelio Mendoza then drove it north in the intracoastal waterway. Marine interdiction agents with Customs and Border Protection intercepted the vessel just south of Corpus Christi.
Subsequent investigation revealed that Pena, who arrived at marker 37 with an empty boat trailer shortly after the boat was intercepted, had registered the vessel in his name two weeks earlier. Certified state documents showed that the previous owner of both the boat and the empty trailer were members of the organization. Agents also testified that they had conducted surveillance of organization members scouting boat ramps near marker 37 about six weeks before the seizure and then immediately drove to Pena’s Kingsville residence.
Mendoza, 38, and five other members of the conspiracy have previously pleaded guilty before U.S. district judges in Corpus Christi and have been or are awaiting sentencing. Those include Alberto Lopez aka Alberto Lopez-Reyna, 40, Lombardo Zarate, 50, Glen Dial, 57, Luz Ramirez, 26, and Hector Perez-Gonzalez, 40.The case was investigated by Homeland Security Investigations with the assistance of the Kingsville Narcotics Task Force. The case was prosecuted by Assistant United States Attorney Jeffrey D. Preston.
Manhattan U.S. Attorney Files Civil Rights Lawsuit Against Architect and Developers to Improve Accessibility in Manhattan Apartment BuildingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States filed a federal civil rights lawsuit in Manhattan federal court alleging that 2 Gold Street, a residential apartment building in Manhattan, is inaccessible to persons with disabilities. The suit alleges that AVINASH K. MALHOTRA ARCHITECTS, AVINASH K. MALHOTRA, TF CORNERSTONE INC., TF CORNERSTONE PROPERTIES LLC, and 2 GOLD L.L.C. violated the design and construction provisions of the federal Fair Housing Act, which require that new multi-family housing complexes include certain features accessible to persons with disabilities. The United States simultaneously settled the case against the developer-defendants, TF CORNERSTONE INC., TF CORNERSTONE PROPERTIES LLC, and 2 GOLD L.L.C., pursuant to a consent decree approved yesterday by U.S. District Judge Robert P. Patterson. The suit against 2 Gold Street’s architects, AVINASH K. MALHOTRA ARCHITECTS and AVINASH K. MALHOTRA, is still pending.
Manhattan U.S. Attorney Preet Bharara said: “We will not allow architects and developers to cut corners at the expense of people with disabilities in order to increase their profits, or for any reason. This suit represents our Office’s continued commitment to holding accountable those who fail to design and construct accessible housing in accordance with federal law, and to seeking settlements that provide legally required accommodations for individuals with disabilities and compensation for those who have been deprived of fair housing.”
According to the allegations contained in the Complaint:
2 Gold Street, a 650-unit building located in Manhattan, was designed and constructed with multiple inaccessible features, including insufficient space in bathrooms and kitchens for people in wheelchairs; high thresholds interfering with accessible routes; sinks, ranges, outlets, and mailboxes not fully usable by people in wheelchairs; and protruding objects not detectable by canes used by people with visual impairments. Inaccessible features at 2 Gold Street were first brought to the attention of the United States by testing performed by the Fair Housing Justice Center. The U.S. Attorney’s Office frequently relies on testers to determine whether property owners are engaging in discrimination on the basis of race, disability, or other protected characteristics, and frequently files lawsuits based on the results of testing.
The consent decree approved yesterday requires TF CORNERSTONE INC., TF CORNERSTONE PROPERTIES LLC, and 2 GOLD L.L.C. to retrofit inaccessible features throughout the property; train employees on the requirements of the Fair Housing Act; pay a $35,000 civil penalty to the United States; and dedicate up to $300,000 to compensate people who have been harmed by Fair Housing Act violations at 2 Gold Street.
Under the consent decree, a person may be entitled to receive monetary compensation if he or she was:
- Discouraged from living at 2 Gold Street because of a lack of accessible features;
- Limited in the full use or enjoyment of an apartment or amenity at 2 Gold Street due to a lack of accessible features;
- Financially affected by having an apartment at 2 Gold Street made more accessible to persons with disabilities;
- Prevented from having visitors because of a lack of accessible features at 2 Gold Street; or
- Otherwise injured by the lack of accessible features or discriminated against on the basis of disability at 2 Gold Street.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-2987 (a TDD line is available at (212) 637-0039), using the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website, www.usdoj.gov/usao/nys, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
Attn: Chief, Civil Rights Unit
86 Chambers Street, 3rd Floor
New York, New York, 10007
The claims against the architect-defendants, AVINASH K. MALHOTRA ARCHITECTS and AVINASH K. MALHOTRA, were not resolved by the consent decree and will go forward. The United States seeks a court order enjoining these defendants from designing multi-family housing without the accessibility features required by federal law. The United States also seeks damages for persons harmed by their unlawful practices, and a civil penalty to vindicate the public interest.
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Carina H. Schoenberger, Emily E. Daughtry, and Li Yu are in charge of the case.
2 Gold Street Consent Decree
Manhattan U.S. Attorney Charges Managing Director of Investment Advisory Firm for NBA Players Union with Attempting to Defraud Union of $3 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Andriana Vamvakas, the New York District Director for the U.S. Department of Labor’s Office of Labor-Management Standards (“DOL-OLMS”), and Robert Panella, the Special Agent-in-Charge of the New York Field Office of the U.S. Department of Labor's Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (“DOL-OIG”) announced today the unsealing of a three-count criminal Complaint charging JOSEPH LOMBARDO, the founder and managing director of Prim Capital Corporation (“Prim”), with attempting to defraud the National Basketball Players Association (“NBPA”) of $3 million through the use of a fraudulent retention contract. The Complaint also charges LOMBARDO and CAROLYN KAUFMAN, a principal at Prim, with obstructing a grand jury investigation in the Southern District of New York. LOMBARDO and KAUFMAN were arrested this morning at their residences in Ohio, and were presented in federal court in the Northern District of Ohio, Cleveland branch, before U.S. Magistrate Judge Greg White. LOMBARDO and KAUFMAN will make their first appearance in Manhattan federal court on May 2, 2013.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Joseph Lombardo faked the signature of a dead man as part of manufacturing a multi-million dollar contract out of whole cloth that, had it been enforced, would have caused significant losses for basketball players who entrusted him with their savings. And together with his partner in crime, Carolyn Kaufman, he allegedly lied about it to a federal grand jury. Now they will both have to answer to the justice system they allegedly tried to obstruct.”
DOL-OLMS New York District Director Andriana Vamvakas said: “The scheme allegedly attempted by the subjects of this investigation would have caused the union to lose funds that rightfully belonged to the membership of the NBPA. We will continue to investigate crimes against unions to protect the members’ assets.”
DOL-OIG Special Agent-in-Charge Robert Panella said: “By allegedly falsifying a contract with the NBPA, the defendant attempted to defraud the organization of $3 million in union assets. We will continue to work with our law enforcement partners to protect union assets and root out corruption involving the NBPA and other labor organizations.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
From 2001 until 2013, Prim was the primary outside investment advisory firm entrusted with the NBPA’s investments and finances. In that capacity, Prim performed various services for the NBPA, including assisting with the management of up to $250 million of the NBPA’s assets, reviewing the investments of individual NBA players, and conducting financial seminars for NBA players. Prim was founded and led by LOMBARDO. KAUFMAN served as President of Prim’s advisory services component.
In May of 2012, as part of a DOL investigation, Prim was served with a subpoena requesting copies of all agreements between Prim and the NBPA. In response, Prim produced a copy of a 2005 contract between the NBPA and Prim, under which Prim’s fee was $350,000 per year. The 2005 contract was signed by the Executive Director of the NBPA, the Treasurer of the NBPA, and LOMBARDO, and was renewable annually upon agreement of the parties. That was the only contract that Prim produced.
Several months later, in January of 2013, after Prim learned that a law firm’s review of the NBPA was going to be made public in the near future, Prim produced a previously undisclosed contract with the NBPA (the “Purported 2011 Contract”). Prim’s fee under this contract was $602,000 per year for a five-year term, for a total of $3,010,000. The Purported 2011 Contract also contained a provision indicating that it could not be cancelled for any reason by the NBPA. The Purported 2011 Contract was supposedly signed in March 2011 by LOMBARDO, Gary Hall, the former NBPA General Counsel, and one other NBPA employee.
An investigation revealed that the signature of Hall was not authentic, and that the Purported 2011 Contract was actually created at Prim months after the March 2011 death of Gary Hall. The investigation also revealed that LOMBARDO arranged for the creation of a signature stamp capable of stamping the signature “Gary A. Hall,” and used the stamp to falsify Hall’s signature months after his death. The investigation further revealed that the signature of the other NBPA employee was forged as well.
In addition, the investigation revealed that LOMBARDO and KAUFMAN had attempted to obstruct a grand jury investigation. During the course of the investigation, both LOMBARDO and KAUFMAN appeared before the grand jury and provided false testimony. KAUFMAN testified that she had not spoken with anyone regarding her testimony. However, in a recorded conversation prior to appearing before the grand jury, LOMBARDO gave her specific instructions on how to answer questions before the grand jury, and said that his “life is in [her] hands.” In another recorded conversation, LOMBARDO instructed another individual that if he provided certain false information to the grand jury about the creation of the contract “[w]e’re home free.” In a third recorded conversation, LOMBARDO instructed another individual to provide false information to the grand jury and said, “It’s important that we didn't doctor this document up, okay?”
LOMBARDO, 72, of Gates Mills, Ohio, is charged with one count of attempted wire fraud, one count of attempted mail fraud, and one count of obstruction of justice. KAUFMAN, 72, of Hudson, Ohio, is charged with one count of obstruction of justice. LOMBARDO faces a maximum sentence of 20 years in prison on each count of wire and mail fraud, as well as a maximum fine of $250,000, or twice the gross gain or gross loss from the offense. Both LOMBARDO and KAUFMAN face a maximum sentence of 20 years in prison on the count charging obstruction of justice, as well as a maximum fine of $250,000.
Mr. Bharara praised the outstanding investigative work of DOL and DOL-OIG. Mr. Bharara added that the investigation is continuing.
This case is being handled by the Public Corruption Unit of the U.S. Attorney’s Office. Assistant United States Attorneys Randall W. Jackson and Daniel C. Richenthal are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
US v Joseph Lombardo and Carolyn Kaufman Complaint
Man Admits Traveling from England to Kentucky to Sexually Exploit MinorRead the Press Release
PIKEVILLE, KY - A resident of London, England traveled to Kentucky intending to engage in sex acts with a minor who lived in eastern Kentucky according to a plea agreement filed in federal court.
Solomon Blue Waters, 42, of London, England pleaded guilty Wednesday before U.S. Magistrate Judge Edward B. Atkins to using the internet to engage in sexual activity with a minor. The U.S. Attorney’s Office and the defendant agreed to a proposed sentencing range of 135 to 168 months pending the judge’s approval. Waters is scheduled to be sentenced on September 5 in Pikeville.
According to the plea agreement, Waters admitted he developed an online relationship with the minor in 2011 and persuaded her to send him sexually explicit images of herself. Waters also encouraged the victim to communicate with him in sexual conversations. Waters planned to visit the minor in eastern Kentucky and he specifically described the sexual acts he would perform on the minor when meeting her.
On August 27, 2012, Waters flew from London, England to Lexington’s Blue Grass Airport and was immediately arrested by agents with Homeland Security Investigations and the Kentucky State Police.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Gary J. Hartwig, Special Agent in Charge, Homeland Security Investigations (HSI) in Chicago, and Rodney Brewer, Kentucky State Police Commissioner, jointly announced the plea.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and KSP. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney David Marye.
Magic Valley Man Sentenced for Concealing Asset from Bankruptcy EstateRead the Press Release
BOISE – Christopher Brandon Craner, 32, of Buhl, Idaho, was sentenced today in United States District Court to two years’ probation for bankruptcy fraud-asset concealment, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Craner to serve two months of the sentence on home detention and pay a $400 fine. Craner, an avid hunter and professional fisherman, is prohibited from owning, possessing or using firearms due to the felony conviction.
According to the plea agreement, on March 24, 2009, Craner filed a petition for Chapter 11 bankruptcy along with a schedule of assets. On January 28, 2013, Craner admitted in court that between March 24 and May 4, 2009, he knowingly and fraudulently concealed from creditors and the bankruptcy trustee his personal interest in a “Ranger Boat Certificate” that had been awarded to him on March 14, 2009.
The case was investigated by United States Trustee’s Office.
Little Eagle Man Pleads Guilty to Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Ace Makes Him First, age 38, of Little Eagle, South Dakota appeared before U.S. District Judge Charles B. Kornmann on April 23, 2013 and pled guilty to Count II of the Indictment that charged Domestic Assault By A Habitual Offender. The maximum penalty upon conviction is 5 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction stems from an incident in December of 2011 when the Defendant and the victim, who were involved in a domestic relationship, got into an altercation where the Defendant struck the victim about the head and face causing her lip to become swollen and split. The Defendant had been found guilty on two or more separate occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner in Standing Rock Tribal Court. All of the offenses occurred against the same victim.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for July 22, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Lincoln Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Jerod Oliverius, age 25 of Lincoln, Nebraska, was sentenced on April 25, 2013, in Lincoln, Nebraska, to 3 years in prison by United States District Judge Richard G. Kopf, for possession of child pornography. After his release from prison, Oliverius will be required to serve a 5 year term of supervised release and be registered as a sex offender.
While conducting a proactive file sharing investigation in December, 2010, an investigator with the Lincoln Police Department was able to view and access child pornography images from a computer that was using file sharing software publicly available on the Internet through a Peer-to-Peer Network. Using computer programs, the investigator was able to identify the Internet Protocol address for the computer sharing the images of child pornography. The Internet service provider indicated that the IP address was assigned to an individual residing in Lincoln.
A search warrant was executed at that individual’s residence in February of 2011. Oliverius was one of the persons residing there, and when investigators examined Oliverius’ computer and hard drive, they found more than 70 videos and more than 10,000 digital images related to child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
This case was investigated by the Lincoln Police Department.
Justice Department Reaches Agreement with Indiana School District to Provide a Safe and Supportive Learning Environment for All StudentsRead the Press Release
The Justice Department announced today that it reached a settlement agreement with the Metropolitan School District of Decatur Township, Ind., to prevent and respond to peer on peer harassment in schools.
The agreement resolves the department’s review of the district’s policies and practices related to harassment and bullying, which was initiated in June 2011 after reports of possible racial harassment at a district school. Under the agreement, the district will work closely with the Great Lakes Equity Center, a federally funded resource center at Indiana University-Purdue University Indianapolis, to take a number of steps to prevent and address harassment based on race, color, national origin, sex, religion and disability, and to ensure a safe and supportive learning environment for all students.
Among other things, the district will: form a district-wide anti-harassment task force, which will review and revise the district’s policies and procedures related to harassment, bullying and discipline; establish a cohesive process for receiving, investigating and monitoring complaints of harassment and bullying, enabling the district to track repeated incidents involving individual students or groups targeted for their membership in a protected class; and provide training, professional development and school climate assessments for both students and staff at two of the district’s schools.
“This agreement provides a template for school districts throughout Indiana and across the country in establishing an across the board strategy for preventing and addressing harassment and bullying,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “We applaud the district for taking affirmative steps to foster a safe and inclusive climate for learning.”
Throughout the country, school districts are expanding efforts to prevent and respond to bullying. Student misconduct that falls under a school’s anti-bullying policy also may trigger the school district’s obligations to combat discrimination and harassment under one or more of the federal civil rights laws. Today’s agreement will provide a roadmap for districts working to ensure that their critical bullying prevention efforts are consistent with their obligations under federal law, including Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, religion and sex, in public schools.
The enforcement of Title IV is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt .
Related Materials:
Decatur Agreement
Justice Department Reaches Agreement with City of Falls Church, Va., on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced today that it has reached an agreement with the city of Falls Church, Va., that will allow for the city, a covered jurisdiction under the special provisions of the Voting Rights Act, to bail out from coverage under these provisions. Bailout will exempt the city of Falls Church, along with the Falls Church City Public School District, from the preclearance requirements of Section 5 of the Voting Rights Act. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia and must be approved by the court.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the Act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court for the District of Columbia or from the U.S. Attorney General, prior to their implementation. Section 4 of the Act provides that a covered jurisdiction may seek to “bail out,” or remove itself from such coverage, and therefore be exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in the U.S. District Court for the District of Columbia. A bailout judgment can be issued only if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the Attorney General can consent to entry of a judgment of bailout only if, based upon investigation, the Attorney General is satisfied that the jurisdiction meets the eligibility requirements.
The city of Falls Church filed its bailout action in the U.S. District Court for the District of Columbia on Feb. 15, 2013. Counsel for the city contacted the Attorney General prior to filing the action, indicating that the city was interested in seeking bailout. The city provided the Justice Department with substantial information, and the department conducted an investigation to determine the city’s eligibility. Based on that investigation, the department is satisfied that the city of Falls Church meets the Voting Rights Act’s requirements for bailout.
“In the department’s view, the city of Falls Church has met the requirements necessary for bailout. We reached this conclusion after thoroughly reviewing information provided by the city and information gathered during the Department’s independent investigation,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “We appreciate the city’s cooperation in the resolution of this matter.”
The consent decree details the legal and factual basis for a bailout determination and, if approved by the court, the city’s request will be granted. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the Attorney General or any aggrieved person alleging conduct by the city that would have originally precluded the city from bailing out if it had occurred during the 10-year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/voting . Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Related Materials:
Falls Church Joint Motion and Consent Decree
Jury Finds New Haven Man Guilty of Participating in Crack Cocaine Trafficking RingRead 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 JAMES DICKERSON, also known as “Jim Jim,” 30, of New Haven, guilty of conspiracy to distribute 28 grams or more of cocaine base (“crack cocaine”) and distribution of crack cocaine. The jury returned the verdict today following a four-day trial before Senior United States District Judge Ellen Bree Burns.
According to statements made in court and the evidence disclosed during the trial, this matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by Joseph Jackson, also known as “Mighty” and “M.I.,” and centered in the Newhallville section of New Haven and Hamden. The investigation revealed that Jackson used “young boys,” some of whom were still in high school, to distribute large quantities of crack cocaine.
In July and August 2010, DICKERSON was regularly intercepted over the wiretap arranging to meet one of Jackson’s associates at locations in Newhallville to purchase two “8-balls” (7 grams) of crack cocaine each time. DICKERSON then divided the crack into $20 baggies, which he sold to his own customers.
On October 13, 2010, DICKERSON was videotaped selling $300 worth of crack cocaine to an undercover police officer.
At trial, DICKERSON maintained that he bought crack cocaine from the members of the conspiracy, but was not a conspirator himself. The jury rejected this defense, and convicted DICKERSON on both the conspiracy count and the distribution count.
Judge Burns has scheduled sentencing for July 18, 2013. Based on the government’s filing of a second offender notice indicating that DICKERSON has a previous conviction for a felony drug offense, DICKERSON faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration's New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney's Office Organized Crime Drug Enforcement Task Force and supported by the Office's Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Robert M. Spector and Christopher M. Mattei.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Jury Finds Minneapolis Felon and Known Drug User Guilty of Possessing A .40-caliber PistolRead the Press Release
MINNEAPOLIS— Yesterday in federal court, a jury found a 36-year-old felon guilty of possessing a .40-caliber, semi-automatic pistol. Following a three-day trial, a jury convicted Demario Kentrell Booker, of Minneapolis, of one count of illegally possessing a firearm after being previously convicted of a felony and while being an unlawful user of and addicted to a controlled substance.
The evidence presented at trial proved that on November 20, 2012, Booker, an admitted drug addict, possessed the pistol. A law enforcement affidavit filed in the case indicated that at approximately 2:06 a.m. on that day, officers noted that a vehicle, later found to be driven by Booker, had failed to signal a turn and had crossed the center line. Booker, however, refused to pull over and, instead, led the police on a high-speed chase. The police recovered the gun from inside the vehicle.
Because he is a felon, Booker, also known as Gary White, is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Hennepin County include assault in the third degree (2004), assault in the fourth degree (2008), and being a prohibited person in possession of a firearm (2009).For his crimes, Booker faces a potential maximum penalty of ten years in federal prison. United States District Court Judge John R. Tunheim will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.Jury Convicts Three in Multi-Million Dollar Scheme to Defraud the United StatesRead the Press Release
A federal jury this morning in San Antonio convicted three individuals for their roles in a multi-million dollar fraud scheme announced United States Attorney Robert Pitman, General Services Administration (GSA) Inspector General Brian D. Miller, Air Force Office of Special Investigations (AFOSI), and the Defense Contract Audit Agency (DCAA).
Jurors convicted 62-year-old Donald Dean Brewer and his wife, 62-year old Sherri Lynn Brewer, both of Clovis, New Mexico, and 60-year-old James McKinney of San Antonio, with one count of conspiracy to defraud the United States, twelve counts of wire fraud and three counts of major fraud against the United States.
Testimony at trial established that in 2002, Donald Brewer was employed by KARTA Technologies, Inc. (KARTA), as the Medical Systems Infrastructure Modernization (MSIM) program manager at Brooks City-Base, San Antonio and James McKinney served as the Vice President of Government Services for Ark Systems, Inc. (Ark). KARTA contracted with the Air Force to provide engineers and analysts to evaluate and implement MSIM projects for the Air Force; Ark was hired by various Government contractors to provide the installation of cabling and electronics in support of MSIM projects at Air Force medical facilities worldwide. Testimony revealed that the defendants created a sham subcontracting business, Enterprise and Deployment, LLC (E&D) to be included as an additional extra subcontractor between the prime contractors and Ark. E&D added no value to these contracts, but the defendants submitted invoices for payment to E&D invoices, causing prime contractors to overcharge the Air Force by including E&D’s fraudulent charges in the prime contractor invoices. From July 2002 through 2008, the defendants carried out their scheme, obtaining approximately $33.5 million in subcontracts for E&D and thereby enriching themselves by almost $6.5 million.
The conspiracy charge carries a statutory maximum penalty of five years in federal prison; each wire fraud charge up to 20 years in federal prison; and, each major fraud charge up to 10 years in federal prison. A monetary judgment against the defendants for more than $6 million is also pending before the Court. The defendants remain free on bond pending sentencing scheduled for June 28, 2013 before Chief U.S. District Judge Fred Biery.
This case was investigated by the GSA Office of Inspector General, AFOSI and DCAA. Assistant United States Attorney James Blankinship and Special Assistant United States Attorney Gary McCown prosecuted this case on behalf of the United States.
Judge Sentences Convicted Cocaine Dealer to 20 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been sentenced in federal court to 20 years incarceration and 10 years supervised release on his conviction of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the sentence on Andre Allen Williams, 42.
According to information presented to the court, the evidence presented at trial established that Williams, with the assistance of his girlfriend Marquetta Mitchell, brought over $146,000 in cash to a drug deal involving five kilograms of cocaine. Recorded conversations played for the jury showed that this deal was a prelude to another 20-kilogram cocaine deal between Williams and his Mexican-born co-defendants Mario Soto and Emilo Carmona-Cepeda. The evidence also showed that Williams and Mitchell were traveling with Carmona-Cepeda from Pittsburgh to Texas two-and-a-half weeks earlier when police stopped them in Tennessee. The vehicle driven by Carmona-Cepeda was found to have nearly $220,000 hidden inside - mostly within secret compartments in the headliner of the vehicle. Judge Bloch determined that the evidence showed Williams' involvement in a total of 33 kilograms of cocaine. Mitchell, Soto and Carmona-Cepeda are each serving 10 years of incarceration.
At the time of the incidents, Williams was on Federal Supervised Release after serving over 10 years of a prior 211-month federal sentence. Williams was previously convicted in the federal district court in the Northern District of West Virginia of conspiracy to possess with intent to deliver over two kilograms of cocaine, money laundering and possessing a firearm in furtherance of his drug crime. Williams was also violating his Supervised Release by leaving the Pittsburgh area without the permission of his Federal Probation Officer, Tara Kessler. Williams has been previously sanctioned by the court for being found in Tennessee, Missouri and Oklahoma without permission - sometimes in the company of other felons.
Prior to imposing sentence, Judge Bloch considered the seriousness of the offense, the deterrent effect the sentence would have on others and the need to protect the public from further crimes of the defendant.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Immigration and Customs Enforcement Agency as well as local police officers from Coraopolis, Findlay Township, Robinson Township, Canonsburg, Monroeville, Wilkins Township and the 21st Drug Task Force in Tennessee for the investigation leading to the successful prosecution of Williams.
James Light Sentenced to 150 Months in Prison for Conspiracies to Distribute Cocaine and OxycodoneRead the Press Release
GREENEVILLE, Tenn. - James Light, 65, of Rogersville, Tenn., was sentenced to serve 150 months in prison, followed by four years of supervised release, by the Honorable Leon Jordan, U.S. District Judge. Light pleaded guilty in December 2012 to conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and a conspiracy to distribute and possess with intent to distribute oxycodone.
As a result of this investigation, several other individuals have been convicted and sentenced for their involvement in the drug conspiracies.
On Apr. 25, 2013, Michael L. Dykes, 51, of Rogersville, Tenn., was sentenced to serve 37 months in prison followed by one year of supervised release. Dykes was allowed to remain on bond until reporting to the Bureau of Prisons. He pleaded guilty in January 2013 to conspiracy to distribute and possess with intent to distribute marijuana and conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 16, 2013, Lorne L. Loucel, 32, of Rogersville, Tenn., was sentenced to serve 108 months in prison followed by three years of supervised release. Loucel pleaded guilty in December 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 16, 2013, Daniel L. Dykes, 29, of Rogersville, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Dykes pleaded guilty in December 2012 to conspiracy to distribute and possess with intent to distribute marijuana and conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Apr. 2, 2013, Christy D. Dykes, 32, of Rogersville, Tenn., was sentenced to serve 40 months in prison, followed by three years of supervised release. Dykes pleaded guilty in November 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 21, 2013, Christy R. Seay, 39, of Greeneville, Tenn., was sentenced to serve 57 months in prison followed by three years of supervised release. Seay pleaded guilty in September 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 11, 2013, Ella Maria Camacho Garcia, 30, of Burlington, N.C., was sentenced to serve 78 months in prison followed by two years of supervised release. Garcia pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute marijuana and a conspiracy to distribute and to possess with the intent to distribute cocaine. She also pleaded guilty to money laundering and received a money judgment in the amount of $815,000.00.
On Mar. 7, 2013, Jonathan L. Light, 24, of Kingsport, Tenn., was sentenced to serve 84 months in prison followed by three years of supervised release. Light pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 7, 2013, Levi D. Love, 24, of Kingsport, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Love was allowed to remain on bond until reporting to the Bureau of Prisons. He pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Mar. 4, 2013, Charles Thomas Laing, 30, of Rogersville, Tenn., was sentenced to serve 157 months in prison followed by four years of supervised release. Laing pleaded guilty in September 2011, to conspiracy to distribute and possess with intent to distribute oxycodone pills, possession of a firearm in furtherance of a drug trafficking offense, and money laundering.
On Feb. 28, 2013, Jessica R. Bernard, 23, of Greeneville, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Bernard pleaded guilty in September 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb. 28, 2013, Amanda D. Bernard, 23, of Afton, Tenn., was sentenced to serve 37 months in prison followed by three years of supervised release. Bernard pleaded guilty in August 2012 to conspiracy to distribute and possess with intent to distribute oxycodone pills.
On Feb. 26, 2013, Shandeeda M. Compton, 31, of Rogersville, Tenn., was sentenced to serve 63 months in prison followed by three years of supervised release. Compton pleaded guilty in October 2012, to conspiracy to distribute and possess with intent to distribute oxycodone pills.
The indictment and subsequent conviction of Light and other co-conspirators was the result of a three year investigation conducted by the Hawkins County Tennessee Sheriff’s Department, Sullivan County Tennessee Sheriff’s Department, Greene County Tennessee Sheriff’s Department, Second Judicial Drug Task Force, Kingsport, Tennessee, Police Department, Third Judicial Drug Task Force, Tennessee Bureau of Investigation, and DEA. Assistant U.S. Attorney Caryn L. Hebets represented the United States.
Inmate at Marion Federal Prison Convicted of MurderRead the Press Release
Cleveland J. White Feather, 54, an inmate at the United States Penitentiary in Marion, IL, was convicted, in federal court, of murder, following a three day jury trial, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
The evidence at trial established that on December 2, 2009, White Feather killed his cell mate, Robert Running Bear, Jr., by cutting his abdomen open with a razor and partially disemboweling Running Bear. White Feather faces a sentence of life imprisonment without the possibility of parole.
The investigation in this case was conducted by the Federal Bureau of Investigation and the United States Bureau of Prisons.
The case is being handled by Assistant United States Attorney George Norwood and Special Assistant United States Attorney Jungmin Lee.
Huntsville Man Sentenced for Social Security FraudRead the Press Release
HOUSTON - Christopher Tyrone Cooper, 39, of Huntsville, has been ordered to federal prison following his conviction for one count of Social Security fraud, United States Attorney Kenneth Magidson announced today. Cooper pleaded guilty Thursday, Nov. 29, 2012.
Today, U.S. District Judge U.S. District Judge Sim Lake, who accepted the guilty plea, handed Cooper a total sentence of 27 months and must pay restitution. He will also be required to serve a term of three years of supervised release following completion of the prison term.
According to court documents, Cooper used the identity and Social Security number of an individual with a similar name to obtain more than $50,000 in credit at various FDIC-insured and non-insured institutions, medical facilities and other businesses, including financing from Bank of America to purchase a vehicle in March 2010.
According to documents in support of the guilty plea, Cooper opened 18 lines of credit using someone else’s Social Security number. Cooper defaulted on every loan and failed to make a single payment on any accounts he allegedly opened under fraudulent pretenses.
The victim in the case indicated he had been the victim of identity theft. He had been attempting to fix his credit for more than a year, but was unsuccessful as a result of Cooper continually using his Social Security number to obtain credit.
Cooper will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The matter was investigated by the United States Secret Service and the Huntsville Police Department. Assistant United States Attorney James R. Buchanan is prosecuting the case.
Houma Man, Donald Richardson, Indicted for Distribution of CocaineRead the Press Release
DONALD RICHARDSON, 35, a resident of Houma, was indicted by a federal Grand Jury today on two counts of distribution of crack cocaine, announced U. S. Attorney Dana J. Boente.
According to court records, on or about March 17, 2011 and March 23 2011, RICHARDSON did knowingly and intentionally distribute a quantity of crack cocaine.
Each count of the indictment carries a maximum term of imprisonment of twenty years, a fine of $1,000,000. and a minimum of three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The investigation is being conducted by Special Agents of the Drug Enforcement Administration and the Terrebonne Parish Narcotics Task Force. The case is being prosecuted by Assistant U. S. Attorney André Jones.
(Download Indictment )
Honduran National Sentenced to 18 Months in Prison for Unlawfully Entering the United StatesRead the Press Release
Oscar Naun Torres-Hernandez, 22, a citizen of Honduras, was sentenced today in United States District Court in Benton to a term of 18 months’ imprisonment for being illegally present in the United States after having previously removed by immigration officials, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Torres-Hernandez was charged by a Federal Grand Jury with that offense on November 6, 2012, after he was taken into custody by an Illinois State Police trooper on October 15th at the direction of Immigration and Customs Enforcement agents following a routine traffic stop on Interstate 57 in Effingham County during which the trooper learned that Torres-Hernandez was an illegal alien. He entered a guilty plea to the charge on January 3, 2013.
Evidence supporting the guilty plea and sentence showed that Torres-Hernandez had previously illegally entered and been removed from the United States to Honduras in 2009 following his conviction in Utah for Possessing Cocaine with Intent to Distribute. He illegally re-entered the country in August 2012 near Sasabe, Arizona.
In addition to the 18 month term of imprisonment, Torres-Hernandez was ordered to pay a $100 special assessment. After serving his term of imprisonment, he will be removed or deported by immigration officials.
Following his sentencing, Torres-Hernandez was returned to the custody of the United States Marshal to await designation by the Federal Bureau of Prisons to one of its facilities.
The case was investigated by Immigration and Customs Enforcement, which is an agency of the Department of Homeland Security, and the Illinois State Police.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Head of New Haven Heroin Distribution Ring Sentenced to Six Years in Federal PrisonRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that TARULUS GLASS, also known as “Dred,” 39, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 72 months of imprisonment, followed by four years of supervised release, for distributing heroin.
This matter stems from a Drug Enforcement Administration Task Force investigation dubbed “Operation Brick House,” which targeted a heroin distribution organization based in New Haven that was headed by GLASS. The investigation employed several law-enforcement techniques, including the use of confidential informants, controlled purchases of heroin, physical surveillance, and the use of court-authorized wiretaps on cellular telephones utilized by some of the defendants.
The investigation revealed that GLASS and his associates obtained prepackaged heroin from sources of supply in the New York metropolitan area and distributed it to drug sellers in and around New Haven.
During the course of the investigation, DEA Task Force officers seized heroin, cocaine and crack cocaine, four firearms and three vehicles.
On March 2, 2011, GLASS pleaded guilty to one count of conspiracy possess with intent to distribute 100 grams or more of heroin.
Eleven individuals were charged as a result of the investigation. All have pleaded guilty.
This matter was investigated by the DEA New Haven Task Force, which includes participants from the New Haven, Meriden, Hamden, West Haven, Branford and Ansonia Police Departments, and the United States Marshals Service. The case was prosecuted by Assistant United States Attorneys Patrick F. Caruso and H. Gordon Hall.
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(203) 821-3722 [email protected]Gregory R. Alexander Indicted for Possession of Flammable Liquid Bomb and Wire FraudRead the Press Release
GREGORY R. ALEXANDER, age 35, a resident of New Orleans, Louisiana, was charged today in a two count indictment by a federal grand jury for possession of an unregistered destructive device (a “bomb”) and with mail fraud, announced
U. S. Attorney Dana J. Boente.According to court documents, on February 25, 2013, ALEXANDER attempted to destroy his truck with a flammable liquid bomb while it was parked at a local bank. ALEXANDER then filed an insurance claim stating his truck had been stolen earlier.
U. S. Attorney Boente reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated jointly by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), along with bomb squad members and detectives from the New Orleans Police Department, and Arson investigators of the New Orleans Fire Department. This case is being prosecuted by Tony Sanders of the Violent Crimes Unit.
(Download Indictment )
Gary Michael Hilton Sentenced to Four Life SentencesRead the Press Release
ASHEVILLE, N.C. – Gary Michael Hilton was sentenced to four life sentences today in U.S. District Court for the kidnapping and murder of John D. Bryant and Irene W. Bryant and to 15 years in prison for a related robbery offense, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hilton pleaded guilty to the murdering the couple in March 2012. He also pleaded guilty to robbery, kidnapping and firearms offenses.
In June 2011, a federal grand jury returned a five-count criminal indictment charging Hilton, 66, with the October 2007 kidnapping, robbery and murder of John and Irene Bryant on national forest lands. According to filed court documents and today’s sentencing hearing, Hilton admitted killing John Bryant within the Nantahala National Forest in Macon County, N.C. using a firearm. Hilton also admitted killing John Bryant’s spouse, Irene Bryant, within the Pisgah National Forest in Transylvania County, N.C.
“Our thoughts and prayers are with the family and friends of the victims and while today’s outcome cannot bring back John and Irene Bryant, it is our sincere hope that everyone impacted by Hilton’s heinous crime can finally have some closure,” said U.S. Attorney Tompkins. “I also want to thank the prosecutors and our law enforcement partners who worked on this case for their hard work, professionalism and integrity.”
In April 2011, Hilton was convicted and received a death sentence for the murder of Cheryl Dunlap in Leon County, Florida. Hilton is also serving a life sentence for his conviction related to the 2008 murder of Meredith Emerson in Northern Georgia. At today’s sentencing hearing, U.S. District Judge Martin Reidinger ordered that Hilton’s federal life sentences be served consecutively with the sentences he received for the state convictions in Florida and Georgia.
All federal sentences are served without the possibility of parole.
The prosecution was handled by Don Gast of the U.S. Attorney’s Office in Asheville. U.S. Attorney Tompkins thanked the FBI, SBI, the U.S. Forest Service, the Transylvania County Sheriff’s Office and the Macon County Sheriff’s Office for their assistance in this investigation.
Gallatin County Man Sentenced to 10 Years in Prison for Manufacturing MarijuanaRead the Press Release
Paul E. Reynolds, 36, of Ridgeway, Illinois, was sentenced today in United States District Court in Benton to a term of 120 months in prison for growing over 100 marijuana plants and conspiring with others to do so, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Reynolds previously pled guilty to a two-count indictment returned by a Federal Grand Jury charging him with conspiring with two other individuals to manufacture over 100 marijuana plants (count 1) and manufacturing over 100 plants (count 2).
The offenses occurred in Gallatin County between April 2012, and August 29, 2012. On August 29th, law enforcement agents conducted ground surveillance on three marijuana plots which they had identified from the air and took Reynolds and co-defendant Daniel J. Fulkerson, also of Ridgeway, into custody as they entered the plots to water and tend the plants. A total of 132 plants were seized.
In addition to the 10 year term of imprisonment, Reynolds was ordered to pay the United States fines and special assessments totaling $400 and was placed on a 4 year term of supervised release to follow his incarceration. Reynolds was returned to the custody of the United States Marshal to await designation by the Federal Bureau of Prisons to one of its facilities.
Fulkerson also pled guilty to the same charges and was sentenced on April 11th to a term of 5 years’ imprisonment.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Fultondale Woman Indicted for Stealing $47,000 from ATMsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former ATM service technician for stealing $47,000 from ATMs around the Birmingham metropolitan area, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Acting Special Agent in Charge Jeffrey L. Anderson.
The indictment filed in U.S. District Court charges KELLY FUCHS, 26, with eight counts of bank larceny for stealing from various automated teller machines between July 2012 and February 2013. Fuchs was employed with Loomis armored-car service as an ATM service technician during that time.
“When people are hired into positions of trust and abuse that position to steal from our financial institutions, it undermines our country’s financial system,” Vance said. “Criminals who do this can expect to be punished with the full force of the law.”
According to the indictment, Fuchs stole eight times from ATMs at seven locations over about seven months. The ATM locations and the amount stolen were: Children’s of Alabama, $6,000; Children’s of Alabama, $5,000; Montclair Road, Birmingham, $10,000; Medical Center East, $4,000; Culver Road, Mountain Brook, $10,000; Odum Road, Gardendale, $6,000; Martin Street, Pell City, $2,000; and Ashville Road, Leeds, $4,000.
The maximum sentence for bank larceny is 10 years in prison and a $250,000 fine.
The U.S. Secret Service and the Birmingham Police Department investigated this case, which Assistant U.S. Attorney Davis A. Barlow is prosecuting.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Franklin County Woman Sentenced to 97 Months in Prison on Federal Methamphetamine ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Amy Jo Melvin , 35, of West Frankfort, IL, was sentenced in Federal Court in East St. Louis, Illinois, to 97 months in prison for her participation in methamphetamine related activities in Southern Illinois. Melvin was convicted of the charges in January of this year. The offenses occurred from July 2009, until a grand jury charged Melvin in March 2012.
This particular federal investigation into methamphetamine activities in Franklin, Williamson, and Jackson Counties has thus far resulted in the indictment of 53 individuals. Thirty one of those indicted have been convicted and 22 still await trial. Other ongoing investigations are producing similar results.
The ongoing investigation is being conducted by the Illinois State Police, Southern Illinois Drug Task Force, along with the Drug Enforcement Administration, the United States Marshals Service, Franklin County Sheriff's Office, Williamson County Sheriff's Office, Jackson County Sheriff's Office, Benton Police Department, Royalton Police Department, West City Police Department, Williamson County State’s Attorney's Office, Franklin County State’s Attorney's Office, and the Jackson County State’s Attorney's Office.
The cases are being prosecuted by Assistant United States Attorney Tom Leggans.
Fort Thompson Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Aaron Grass Rope, age 20, was indicted on April 12, 2013. Grass Rope appeared before U.S. Magistrate Judge Mark A. Moreno on April 24, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is any term of years up to 15 years of imprisonment, a $250,000 fine, or both; any term of years, not less than 5, or up to life of supervised release and a mandatory minimum term of 5 years up to life of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge is merely an accusation, and Grass Rope is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Grass Rope was remanded to the custody of the U.S. Marshal Service. A trial date has not been set.
Fort Myers Man Charged with Distributing Child PornographyRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the filing of a criminal complaint charging Charles Allen Nave III (38, Fort Myers) with distribution of child pornography. If convicted, he faces a maximum penalty of 20 years in federal prison.
According to the criminal complaint, on January 31, 2013, Charles Allen Nave, III sent child pornography over the Internet to an undercover agent located in Washington, D.C. Subsequent to the execution of a search warrant, on April 23, 2013, Nave was found to be in possession of more than 100 images of child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Wells Fargo Banker Charged with 80 Felony Counts for Fleecing $750,000 from CustomersRead the Press Release
United States Attorney Laura E. Duffy announced today that former Chula Vista Wells Fargo banker Ricardo Adolfo Benavente, III was charged with defrauding Wells Fargo and several of its customers by stealing and laundering approximately $750,000 from Wells Fargo customer accounts. According to an indictment unsealed in federal court today, Benavente used his access privileges at Wells Fargo to move hundreds of thousands of dollars from the accounts of Wells Fargo customers into accounts controlled by Benavente himself. The indictment further alleges that in many instances Benavente laundered the stolen funds in order to disguise the fact that he had stolen them.
According to the indictment, from April-October 2009, Benavente, a banker at a Wells Fargo branch office in Chula Vista, stole the funds from accounts belonging to four Wells Fargo customers. He then funneled the stolen funds through various Wells Fargo accounts that he created and controlled, and which he had opened in the name of fictitious customers expressly for the purpose of conducting his scheme to defraud. In one case, Benavente also funneled stolen funds through a PayPal account that he set up in the name of one of his victims, in order to disguise the fact that the money had been stolen. Benavente then used this PayPal account to direct the funds to his own bank and for his own benefit. The indictment alleges that in furtherance of his fraud scheme, Benavente stole and used the names and account numbers of his various victims in order to create the appearance that the transactions were being conducted by the customers themselves. He also created a trail of fraudulent bank instruments, such as withdrawal slips and cashier’s checks, which he used to steal money from his victims’ accounts and direct those funds to accounts that he controlled.
The indictment charges Benavente with counts of bank fraud, embezzlement, aggravated identity theft, and money laundering in connection with the scheme. In addition, he is charged with one count of filing a false tax return for his failure to disclose to the Internal Revenue Service that he had acquired hundreds of thousands of dollars of income from his scheme to defraud Wells Fargo and its customers.
United States Attorney Duffy thanked the agents from the United States Secret Service and Internal Revenue Service-Criminal Investigations for their work in uncovering the alleged crimes.
Benavente was arraigned on the indictment today and pleaded not guilty. A motion hearing is scheduled in the case for June 3, 2013 at 2:00 p.m., before United States District Court Judge Larry Alan Burns.
DEFENDANT Case Number: 13CR1513-LAB Ricardo Adolfo Benavente, III Age: 27 Chula Vista, CA SUMMARY OF CHARGESCounts 1-28: Bank fraud in violation of Title 18, United States Code, Section 1344
Maximum penalties: 30 years’ imprisonment, $1,000,000 fineCounts 29-56: Embezzlement in violation of Title 18, United States Code, Section 656
Maximum penalties: 30 years’ imprisonment, $1,000,000 fineCounts 57-63: Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A
Maximum penalties: Mandatory 2-year consecutive sentenceCounts 64-79: Money Laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i)
Maximum penalties: 20 years’ imprisonment, $500,000 fineCount 80: Filing a False Tax Return, in violation of Title 26, United States Code, Section 7206(1)
INVESTIGATING AGENCIES
Maximum penalties: 3 years’ imprisonment, $250,000 fine, costs of prosecutionUnited States Secret Service
Internal Revenue Service – Criminal InvestigationsAn indictment itself is not evidence that the defendant committed the crimes charged.
The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.Former Town Creek, Ala., Police Officer Pleads Guilty to Assaulting an ArresteeRead the Press Release
Brandon Shane Mundy, a former police officer of numerous law enforcement agencies, the most recent being the Town Creek, Ala., Police Department, pleaded guilty today to violating the civil rights of a man during the course of an arrest. According to information presented to the court, on Nov. 22, 2009, Mundy was involved in a vehicle pursuit and fired shots at a man’s vehicle before later ramming it and causing it to wreck in a ditch. While another police officer reached the man and placed him under arrest without resistance, Mundy ran up and unjustifiably and repeatedly beat the man in the head with an object that was either a baton or a flashlight causing the man to suffer physical injury. After Mundy lost control of the object, Mundy continued to strike the man in the head with his fist.
“The use of excessive force cannot be tolerated,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The vast majority of police officers do an outstanding job in protecting both the community and the rights of the accused, even in stressful situations. But when police officers use excessive force to punish arrestees, they will be held accountable.”
“Police officers who abuse their power in order to assault citizens undermine the system of constitutional government they are sworn to uphold,” said Joyce White Vance, U.S. Attorney for the Northern District of Alabama. “As the plea in this case shows, my office will work closely with the Justice Department’s Civil Rights Division to aggressively enforce the laws that prohibit police misconduct.”
Mundy faces a statutory maximum sentence of 10 years in prison. A sentencing date has not yet been set.
This case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Elizabeth Holt of the Northern District of Alabama and Civil Rights Division Trial Attorney Daniel H. Weiss.
Former Silverado High School Head Softball Coach Convicted of Federal Child Exploitation and Pornography ChargesRead the Press Release
LAS VEGAS, Nev. – Following a three-day jury trial, a man who was employed as the head softball coach at Silverado High School in Henderson, Nev., has been convicted of multiple counts of child sex exploitation for causing the production of child pornography and exchanging sexually explicit text messages and photographs with a minor girl, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Albert Silva Hernandez, Jr., 44, of Las Vegas, was convicted on Wednesday, April 24, 2013, of eight counts of sexual exploitation of a minor. He faces 15 years minimum and 30 years maximum in prison, and a fine of up to $250,000 on each count. Hernandez is in custody and is scheduled to be sentenced on Aug. 5, 2013, at 10:00 a.m. before U.S. District Judge James C. Mahan.According to the indictment and the evidence introduced at trial, Hernandez, a softball coach for Silverado High School and for a competitive club team, had sexual relations with one of his 17-year-old players and photographed the sexual acts with his cellular telephone camera, and sent the images to the girl. Hernandez also had the girl photograph herself naked and send those images to him by her cellular telephone. The pornographic images were produced and the text messages were exchanged between Hernandez and the victim, on December 25, 2011, January 29, February 1, and February 2, 2012.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Clark County School District Police. It is being prosecuted by Assistant United States Attorneys Susan Cushman and Roger Yang.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources.
Former Owner of Wilkesboro Clinical Laboratory Pleads Guilty to Criminal Health Care Fraud and Tax Charges and Agrees to Pay $300,000 to Settle Civil Fraud AllegationsRead the Press Release
CHARLOTTE, N.C. – The former owner of Wilkesboro Clinical Laboratory (“WCL”) pleaded guilty today in U.S. District Court for his involvement in a health care fraud scheme in which he and his company billed Medicare for services which were not rendered, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Louis Francis Curte, 49, also admitted he filed false tax returns from 2007 to 2010.
In a separate civil settlement with the U.S. Attorney’s Office, Curte also agreed to pay $300,000 to resolve civil fraud allegations that he and his company violated the Physician Self-Referral Act or “Stark Law.”
U.S. Attorney Tompkins is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region; Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
Curte appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to four counts of health care fraud and one count of filing a false tax return. According to court documents and today’s plea hearing, Curte was the owner and operator of Wilkesboro Clinical Laboratory (“WCL”), which was enrolled with the Medicare program and provided microbiology and other laboratory services. Court records show that from at least 2007 to in or about 2009, Curte defrauded Medicare by submitting false and fraudulent claims for microbiology services which were never rendered.
Court documents indicate that Curte and WCL used another company (“Company #1”) for certain types of microbiology testing that could not be performed by WCL in-house. Court records show that WCL generally submitted specimens to Company #1 to test for the presence of infection-causing bacteria. If an infection was present in a specimen, Company #1 then typically performed one or two additional tests to identify the type of pathogen present (“identification test”) and the type of antibiotic to which the pathogen was susceptible (“susceptibility test”).
Pursuant to the scheme to defraud, Curte routinely billed Medicare for identification and susceptibility tests, when, in fact, no such tests were performed and even when the initial testing indicated that no pathogen was actually present in the specimen. According to the plea agreement, the intended loss to Medicare by the defendant was between $10,000 and $30,000.
At today’s hearing, Curte also pleaded guilty to filing false tax returns for the years 2007 through 2010. According to filed documents and court proceedings, Curte filed false tax returns which substantially understated his gross income, and therefore, the tax owed to the United States. Court records indicate that Curte maintained false books in an attempt to mask a prohibited business relationship with a physician, identified in court documents as Dr. T.M. According to the plea agreement, the amount of tax loss was more than $30,000 but less than $50,000.
At sentencing, Curte faces a maximum term of 10 years in prison and a $250,000 fine for the health care fraud charges and a maximum term of three years in prison and a $250,000 fine for the tax fraud charge. In his plea agreement, Curte agreed to pay full restitution to Medicare and to IRS for any losses. The final restitution amount will be determined by the Court at Curte’s sentencing hearing, which has not been scheduled yet. Curte has been released on bond pending sentencing.
Curte’s prohibited relationship with Dr. T. M. forms the basis for Curte’s civil settlement agreement. According to the civil settlement agreement, from January l, 2006 through April 30, 2009 Curte and WCL violated the Stark Law by knowingly having a prohibited financial relationship with Dr. T.M.
Dr. T.M. owned and operated a billing company, now defunct, which submitted all of WCL’s reimbursement claims to Medicare. Dr. T.M.’s billing company was paid on a “per claim” basis for the reimbursement claims submitted to Medicare on behalf of WCL. As an owner of the billing company, Dr. T.M. benefitted directly from WCL’s payments to his billing company. Investigators also found that Dr. T.M. referred blood and tissue specimens to WCL for pathology testing.
The Stark Law forbids a medical provider from billing Medicare and Medicaid for certain services referred by physicians who have a financial relationship with the medical provider. A prohibited financial relationship includes an agreement between the medical provider and a physician to compensate the physician based on the volume of the physician’s referrals or the revenue realized through those referrals.
Under the terms of the settlement agreement, Curte is required to reimburse the government for the amount he wrongfully received from Medicare in violation of the Stark Law and to pay penalties back to the program, for a total of $300,000.
The investigation into Curte was handled by HHS-OIG and IRS, with the assistance of the FBI. The criminal prosecution was handled by Assistant U.S. Attorney Kelli Ferry. Assistant U.S. Attorney Don Caldwell handled the civil settlement.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Former Nopd Officer, Maurice R. Palmer, Sentenced for Tax EvasionRead the Press Release
MAURICE R. PALMER, age 51, a resident of New Orleans, Louisiana, was sentenced today by U.S. District Judge Jane Triche Milazzo to 5 years probation for one count of tax evasion, announced U.S. Attorney Dana J. Boente. PALMER was also ordered to pay $31,662 in restitution to the Internal Revenue Service and a $100 special assessment.
According to court documents, from 2006 through 2008, PALMER, a former New Orleans Police Department officer, did not file federal taxes. During this period of time, PALMER did file a Form W-4 with his employer, the NOPD, wherein he falsely claimed he was “exempt” from any taxes. Based on this form, according to court documents, no taxes were withheld from PALMER’s paychecks in the year 2008. According to the factual basis, as a result of the filing of his W-4 form, PALMER received taxable income of $68,170, to which there is a tax due and owing to the United States of $13,388 for the tax year 2008. In addition, according to the factual basis, PALMER also owes a total of $18,274 in taxes for not filing in the tax years 2006 and 2007. According to the plea agreement, PALMER is required to pay the entirety of the tax due and owing for these years to the Internal Revenue Service.
The case was investigated by agents from the Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant U. S. Attorney Matt Chester.
Former Jefferson Parish Cao, Timothy Whitmer, Sentenced in Corruption CaseRead the Press Release
TIMOTHY WHITMER, age 53, a resident of Harvey, Louisiana and former Chief Administrative Officer of Jefferson Parish, was sentenced today to three years probation by U.S. District Court Judge Mary Ann Vial Lemmon for Misprision of a Felony concerning his involvement with Aaron Broussard and Tom Wilkinson in a Conspiracy to Commit Bribery, Wire Fraud, and Theft Concerning Programs Receiving Federal Funds, announced U.S. Attorney Dana J. Boente and FBI Special Agent in Charge Michael Anderson. WHITMER was also ordered to pay restitution to Jefferson Parish in the amount of $160, 430.15 joint and severally liable with Aaron Broussard, Tom Wilkinson and Karen Parker. In addition, Judge Lemmon ordered WHITMER to pay a $5,000 fine.
Broussard was previously sentenced for his involvement in a conspiracy with WHITMER, Tom Wilkinson and Karen Parker to steal taxpayer funds when they and others created a sinecure Paralegal Supervisor position for Parker. Broussard knowingly and illegally diverted taxpayer funds to his ex-wife in the form of her salary for over six years, when Parker did not even possess the most basic credentials or requisite experience to hold the position of Paralegal Supervisor and, repeatedly sought to conceal the illegal nature of her employment with Jefferson Parish by having Parker transferred to the ID Management Office at the East Bank Regional Library in an effort to hide the fact that she was not working for the Parish Attorney’s Office as a Paralegal Supervisor and was not performing any work as a paralegal.
“Mr. Whitmer betrayed the citizens of Jefferson Parish and violated his public trust,” said United States Attorney Boente. “The prosecution should further serve notice that the United States Attorney’s Office will continue its robust investigation and prosecution of public corruption.”
“The FBI believes this is a fair and just result given Mr. Whitmer’s role and participation in these corrupt schemes,” added Michael Anderson, Special Agent in Charge of the Federal Bureau of Investigation New Orleans Field Office.
The case was investigated by agents from the Federal Bureau of Investigation and was assisted by the Metropolitan Crime Commission. The case was prosecuted by Strike Force Chief and Assistant U.S. Attorney Brian Klebba, and Assistant U.S. Attorneys Matt Chester, Daniel Friel, and Mimi Nguyen.
Former Chief Merchandising Officer of Aeropostale, Inc. Found Guilty of Receiving More Than $25 Million in KickbacksRead the Press Release
Christopher Finazzo, the former Executive Vice President and Chief Merchandising Officer of Aéropostale, Inc., a national mall-based specialty clothing retailer headquartered in Manhattan, was convicted today by a federal jury in Brooklyn on all sixteen counts for defrauding Aéropostale and receiving more than $25 million in kickbacks from Douglas Dey, the owner of South Bay Apparel, Inc. (“South Bay”), previously a major clothing supplier of Aéropostale. The jury’s verdict followed a three-week long trial in United States District Court in Brooklyn, New York, before the Honorable Roslynn R. Mauskopf. Finazzo was convicted of one count of conspiracy, fourteen counts of mail fraud, and one count of wire fraud. On Monday, April 29, 2013, the government will present its case to forfeit more than $21 million, two investment accounts, and four pieces of real property from Finazzo. Co-defendant Douglas Dey pleaded guilty on September 27, 2012, to conspiracy to bribe Finazzo.
Finazzo’s verdict and Dey’s guilty plea 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.
The evidence at trial established that Finazzo and Dey entered into a fraudulent scheme in which Finazzo caused Aéropostale to buy more than $350 million in t-shirt and fleece merchandise from South Bay in exchange for payments from Dey of approximately 50% of South Bay’s profits. Finazzo was Aéropostale’s head merchant from July 1996 until his termination by Aéropostale on November 7, 2006. While receiving approximately $20 million in salary, bonus, and stock options for the approximately 10 years that Finazzo worked at Aeropostale, Finazzo received more than $25 million in kickbacks from approximately June 2002 through November 2006 from Dey through C&D Retail Consultants, Inc., a company controlled by Finazzo, and through other companies Finazzo jointly owned with Dey. In 2005 alone, at the peak of the business between Aéropostale and South Bay, Finazzo received more than $13 million in kickbacks from South Bay. Throughout the course of the scheme, Finazzo and Dey concealed the kickbacks from Aéropostale and its employees, causing Aéropostale to lose profits and negatively impacting employee bonus amounts. Additionally, because Finazzo falsely stated in numerous company questionnaires that he was not engaged in any related-party transactions, Aéropostale falsely reported in its SEC filings that the company did not engage in such transactions. Aéropostale is a publicly traded company on the New York Stock Exchange.
At trial, the government proved that Finazzo defrauded Aéropostale by preventing Aéropostale from seeking lower prices for merchandise it purchased from South Bay, preventing Aéropostale from selecting other vendors who had better price and quality, and by causing Aéropostale to pay higher prices on merchandise it purchased from South Bay. For example, Finazzo’s unyielding commitment to placing t-shirt orders with South Bay caused him to repeatedly rebuff Aéropostale’s CEO’s direction that 25% of the t-shirt orders be placed with overseas vendors at a much lower cost. Finazzo did this to maintain his illegal kickbacks from South Bay.
“We have all heard the saying ‘money does not buy happiness,’ and today’s verdict is case in point for that maxim. Christopher Finazzo had a great job that paid him millions of dollars, but this honest living was apparently not enough to satisfy his greed. As the evidence at trial showed, he schemed to steal from Aéropostale and to receive more than $25 million in illegal kickbacks from a supplier,” stated United States Attorney Lynch. “As today’s verdict shows, we will vigorously pursue corporate fraudsters who double-deal to enrich themselves and bring them to justice.” Ms. Lynch extended her grateful appreciation to the FBI and the Securities and Exchange Commission for their assistance.
When sentenced by Judge Mauskopf, Christopher Finazzo faces a sentence of up to 20 years’ imprisonment for each of the fourteen counts of mail fraud and the one count of wire fraud, and up to five years’ imprisonment for the conspiracy count. Co-defendant Douglas Dey faces a maximum sentence of five years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, John P. Nowak, and Claire Kedeshian.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement 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 Defendants: CHRISTOPHER FINAZZO
Age: 57DOUGLAS DEY
Age: 56Former Centreville Assistant Police Chief GuiltyRead the Press Release
The former assistant chief of police for Centreville, Illinois, pled guilty in US District Court on April 25, 2013, to making false statements to federal law enforcement officers, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Corey Allen, 31, admitted that he lied to federal law enforcement officers while they investigated whether he sold a gun to a convicted felon.
Allen was indicted by the federal grand jury on December 11, 2012, following an inquiry into whether he sold a gun to a registered sex offender. On November 30, 2012, Allen was interviewed by federal agents who asked him whether he supplied Individual #1 with a firearm. Allen stated that he did not supply the gun to Individual #1, claiming that he had no idea where Individual #1 had gotten the gun. Allen further stated that he had never seen the gun before federal agents recovered it on October 11, 2012.
Allen admitted in court documents that he had previously possessed the firearm and in fact had sold the gun to Individual #1 for $100 on May 3, 2012, knowing that Individual #1 was a felon and a registered sex offender. Allen stated that he came into possession of the firearm while working as a police officer, but rather than documenting the recovery of the weapon he simply kept it, and later sold it.
The crime of making a false statement to a federal law enforcement officer is punishable by up to 5 years in prison, a $250,000 fine, and not more than 3 years supervised release upon release from prison. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Court documents explained that, under the Sentencing Guidelines, Allen will be sentenced for the more serious offense of selling a firearm to a felon in addition to his conduct of making false statements. Sentencing has been scheduled for August 30, 2013.
US Attorney Stephen Wigginton said, “Instead of upholding the oath he took to protect his community, this officer personally armed a sex offender with a stolen gun, then lied to federal agents about what he had done. He threw away his career, tarnished the badge, and endangered his community for a few dollars.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Florida Man Sentenced to 55 Months Imprisonment for Role in Health Care-Fraud and Money Remitting RingRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, Addy Villanueva, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that Oscar Sanchez, 47, of Naples, was sentenced to 55 months imprisonment, 20 months home confinement, and three years of supervised release for his role in a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). In addition, U.S. District Judge Paul Huck entered a forfeiture order that consisted of a personal money judgment against Sanchez in the amount of $10,000,000. In partial satisfaction of that judgment, Sanchez will be forfeiting to the United States four properties worth about $635,000, and $63,196, in cash. Sanchez also must perform 1,600 hours of community service during his first year after his term of imprisonment.
On August 30, 2012, Sanchez pled guilty to conspiring to launder the proceeds of health care fraud. According to court documents, Sanchez acted as a middleman between individuals engaging in health care fraud, and Caribbean Transfers, a company that remitted money from the United States to Cuba. Sanchez admitted to providing approximately $10 million in cash to individuals who defrauded the Medicare program.
Mr. Ferrer commended the investigative efforts of FDLE, FBI, and HHS-OIG in coordination with the Medicare Fraud Strike Force, for their work on this case. The case was prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Eloisa Fernandez.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Inmate Pleads Guilty to Obtaining $23,000 in Social Security Benefits FraudulentlyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old woman incarcerated at the Federal Correctional Institute in Waseca, Minnesota, pleaded guilty to stealing more than $23,000 in Social Security benefits. Nefertiti Randall specifically pleaded guilty to one count of theft of government money or property. Randall, who was indicted on January 22, 2013, entered her plea before United States District Court Judge John R. Tunheim.
In her plea agreement, Randall admitted that from June 12, 2009, through April 2012, she stole $23,012 from the Social Security Administration (“SSA”). The funds, which were automatically deposited into a bank account accessible to both Randall and her mother, represented benefits intended solely for Randall’s mother. Her mother died in June of 2009, and in August of 2009, Randall began serving an unrelated, multi-year, identity-theft sentence at the Federal Correctional facility in Waseca. According to the indictment, Randall nonetheless continued to access her mother’s social security benefits until spring of 2012.
For her crime, Randall faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the SSA-Office of Inspector General, with cooperation from the U.S. Bureau of Prisons. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.Extradited Mexican with Ties to Zetas Sentenced in Large-Scale Cocaine Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Benito Aguilar-Ozuna, aka “Pichollo,” a Mexican citizen who was extradited to the U.S. late last year, has been sentenced to prison for nearly 20 years for conspiracy to traffic cocaine, United States Attorney Kenneth Magidson announced today. Aguilar-Ozuna pleaded guilty Jan. 25, 2013.
Just moments ago, Senior U.S. District Judge Janis Graham Jack handed Aguilar-Ozuna a sentence of 235 months. As a Mexican citizen, he is expected to face deportation proceedings following his release from prison.
Benito Aguilar-Ozuna was charged with conspiracy to possess with intent to distribute cocaine in an indictment returned Nov. 25, 2008, which was superseded in April 2009 and again in January 2010. Aguilar-Ozuna was charged along with three others, including Carlos Alberto Oliva-Castillo aka “La Rana,” a Mexican citizen arrested in October 2011 in Mexico. According to records, Oliva-Castillo was known as the number three figure in the Zetas drug cartel at the time of his arrest and allegedly controlled Zeta operations in the key northern states of Tamaulipas, Coahuila and Nuevo Leon.
The investigation in this case began in 2006 when law enforcement authorities discovered a narcotics importer/distributor based in Robstown for whom Oliva-Castillo was the source of supply. Aguilar-Ozuna was Oliva-Castillo’s most trusted associate in this large-scale cocaine trafficking organization based out of Diaz Ordaz, Mexico. The organization was responsible for the importation of cocaine from Mexico and the distribution of cocaine to the organization’s cells located in Texas, Florida, California, Oregon, Georgia and Illinois. Agents also discovered that Oliva-Castillo and Aguilar-Ozuna oversaw the transportation of narcotics proceeds in the hundreds of millions from the United States to Mexico. During the course of the investigation, law enforcement seized approximately 174 kilograms of cocaine from members of this organization. The case against Oliva-Castillo remains pending. He is presumed innocent unless convicted through due process of law.
The investigation leading to the criminal charges was conducted through the Organized Crime Drug Enforcement Task Force in Corpus Christi lead by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Homeland Security Investigations, Corpus Christi Police Department, United States Border Patrol and the United States Marshals Service. The Department of Justice’s Office of International Affairs provided substantial assistance in Aguilar-Ozuna’s extradition.
This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Elroy Jay Weaselbear, Sr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 25, 2013, before U.S. District Judge Richard F. Cebull, ELROY JAY WEASELBEAR, SR., a 39-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, appeared for sentencing. WEASELBEAR was sentenced to a term of:
Prison: 135 months
Special Assessment: $100
Supervised Release: 10 years
WEASELBEAR was sentenced in connection with his guilty plea to incest.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the government.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WEASELBEAR will likely serve all of the time imposed by the court. In the federal system, WEASELBEAR does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Eighth Member of Conspiracy That Traded Child Pornography SentencedRead the Press Release
WASHINGTON – The last conspirator charged in the Western District of Virginia was sentenced today for his role in a conspiracy that disseminated thousands of images and videos of the sexual abuse of children, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and the U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.
Jesse Leon Coleman, 48, of Lynchburg, Va., was sentenced today following his previous plea to one count of receipt of child pornography by Senior U.S. District Judge Norman K. Moon in the Western District of Virginia to serve 135 months. Following his release, Coleman must register as a sex offender.
In January 2012, a grand jury charged nine individuals, including Coleman, with conspiracy to receive, distribute, possess and access with intent to view child pornography.
Co-defendants Manuel Antonio Mares, 57, of Miami; Jeremy Hart Yost, 26, of West Bend, Ore.; Richard Phillip Allen, 66, of Redondo Beach, Calif.; James Calvin Boyd, 59, of Pell City, Ala.; and Peter Franklin Ortiz, 57, of Greenville, S.C., were previously sentenced in the Western District of Virginia for their roles in the conspiracy. Co-defendants Thomas Syfor, 71, and Matthew Ackerman, 49, both of Bethlehem, Pa., were previously transferred to the Eastern District of Pennsylvania for disposition in that district. The ninth defendant, known as “Andy Danilov” is believed to reside in Russia and remains at large.
According to court documents, beginning in August 2010 and continuing until at least November 2011, Danilov distributed emails to a group of individuals, including the defendant, that contained links to compressed files and file attachments depicting minors engaged in sexually explicit conduct. Danilov often used the screen name “Cinemaboy” in the emails. According to information presented at the plea hearing, forensic analysis of each of the defendants’ computers confirmed their involvement in the conspiracy, and some of the defendants were found to possess very large numbers of images and movies depicting the sexual abuse of children.
Evidence presented at the sentencing hearing indicated that, while in the military, Coleman was convicted for possession of child pornography, and sexually abused three minor boys overseas.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit ww.projectsafechildhood.gov.
The investigation of the case was conducted by the FBI Innocent Images Operations Unit. The case is being prosecuted by Assistant U.S. Attorney Nancy Healey of the Western District of Virginia and Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.Eagle Butte Man Sentenced for Disorderly ConductRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of two counts of Disorderly Conduct was sentenced on April 18, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Frankie Delgado, age 53, was sentenced to a $1,000 fine and a $10 special assessment.
Delgado was indicted for 3 counts of Abusive Sexual Contact by a federal grand jury in December 2011. He pled guilty to a Superseding Information charging him with two counts of Disorderly Conduct on April 18, 2013.
The conviction stems from two incidents that occurred in May 2011 in Eagle Butte.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson prosecuted the case.