Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Friday 8 March 2013
Women Plead Guilty in Conspiracy to Embezzle Crime Stoppers’ Cash RewardsRead the Press Release
One Defendant Worked as a Bank Teller
DALLAS — Two local women, Amelia Blair Lopez, of Lancaster, Texas, and Eva Barrientos, of Red Oak, Texas, both 26, appeared in federal court this week and admitted embezzling Crime Stoppers’ funds on deposit at JP Morgan Chase Bank, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Specifically, each woman, who remains on bond, pleaded guilty to one count of conspiracy to commit theft, embezzlement or misapplication by a bank employee and faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Sentencings are set for this summer.
According to documents filed in the case, from February to April 2010, Lopez, a teller with JP Morgan Chase Bank, and Barrientos, embezzled approximately $18,750 of money entrusted to the care of JP Morgan Chase Bank by the North Texas Crime Commission.
Lopez provided Barrientos and Barrientos’s husband with confidential Crime Stoppers tip information, including tip numbers and code words necessary to collect the Crime Stoppers cash rewards. Barrientos, Barrientos’s husband and others would present the tip numbers and code words to Lopez, and other tellers at the bank, to collect the Crime Stoppers cash rewards. After Barrientos, Barrientos’s husband and others collected the cash rewards, they would divide the cash among the coconspirators.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
Woman Ordered to Pay Restitution for Filing False Day Care Services Claims to Federal ProgramRead the Press Release
LAKE CHARLES, La: United States Attorney Stephanie A. Finley announced that Annette Victorian, 44, of Lake Charles, was ordered Thursday by U.S. District Judge Patricia Minaldi to pay $71,660.70 in restitution, a $1,000 fine, serve five years probation, and complete 100 hours of community service, for defrauding the Louisiana Department of Children and Family Services.
Victorian is the owner/director of Annette’s Developmental and Learning Center located in Lake Charles, which receives payments for child care services through the Child Care Assistance Program (CCAP). Prior to being paid by CCAP for child care services she provided, Victorian was required to submit accurate provider invoices for each child. According to court documents, beginning in April 2007 and continuing through October 2009, Victorian submitted invoices which contained false and fraudulent information, inflating the number of children who received care and the hours the children were present. In some instances, Victorian claimed reimbursement for children who were no longer enrolled at her day care center.
“The money this defendant took should have been used to help those in need of day care services,” Finley said. “Instead, the money was siphoned out of the community and grant system for personal use. Our office will continue to aggressively prosecute those who defraud these programs.”
CCAP is funded by a U.S. Department of Health and Human Services’ grant and is administered by the Louisiana Department of Children and Family Services.
The Department of Health and Human Services and the Louisiana Department of Children and Family Services investigated the case. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ruben Trevino, 35, of Weslaco, Texas, a defendant in the case US v Doty et al., pled guilty before District Judge Jon DeGuilio to the felony offense of conspiracy to distribute marijuana.Sentencing has been set for 6/13/13.These charges were filed as a result of an investigation by the Drug Enforcement Administration with assistance from the Laporte County Prosecutor’s office, the Laporte County Drug Unit, the Elkhart County ICE unit.This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Javon Thomas, 20, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 120 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of carrying a firearm which discharged during a drug trafficking crime and crime of violence.According to documents filed by the government in this case, Thomas was one of four armed men who broke into the home of a known drug dealer and the drug dealer’s girlfriend and four children. One of the men (not Mr. Thomas) shot the drug dealer. The four men stole drugs and money, split the money, and distributed the marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Wesley King, 42, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 5/22/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
Maria Guadalupe Sustaita, 50, of East Chicago, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of aggravated identity theft and obstruction of correspondence.Sentencing has been set for 4/16/13.These charges were filed as a result of an investigation by the United States Postal Service-Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Richard Jenkins, 39, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 33 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute crack cocaine.According to documents filed by the government in this case, law enforcement conducted multiple trash pulls at Jenkins’ residence after receiving a tip regarding drug dealing occurring at the residence. The pulls uncovered evidence indicative of drug packaging material, drug trafficking activity and drug sales taking place.A search warrant was executed on the residence where law enforcement recovered a knotted plastic bag containing 20 clear plastic bags, each containing crack cocaine, digital scales, a compact disc case containing two razor blades and a scale with white powder residue confirmed to be cocaine and marijuana.Jenkins admitted that he had been selling crack cocaine for months. This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Gregorio Valencia, 29, of Griffith, Indiana, was sentenced by Chief Judge Philip Simon to 121 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute five hundred grams of more of methamphetamine.According to documents filed by the government in this case, a confidential source made arrangement to meet with Valencia to receive a free sample of methamphetamine and to negotiate a future purchase of 5 kilograms of methamphetamine.After the agreement was made, Valencia met with the source to deliver the drugs.Agents moved in and arrested Valencia.The Agents recovered a black duffel bag from Valencia’s vehicle containing 5 kilograms of methamphetamine and another 1 kilogram from his residence during a subsequent search.This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Dante Christopher Vasquez, 44, of East Chicago, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 210 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of production of child pornography.According to documents filed by the government in this case, the Hammond Police started an investigation after receiving a complaint of an adult family member taking nude pictures of a juvenile.The responding officer interviewed the mother and her child about the complaint and learned that Vasquez was related to her and had frequently cared for her children and had used the mother’s camera to take nude pictures of the child.Law enforcement executed a search warrant at the Vasquez residence, locating multiple computers revealing images indicative of child pornography that included the child involved in the initial complaint.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Antonio Sewell, 31, of Fort Wayne, Indiana, a defendant in the case US v Buchanan et al., pled guilty before Magistrate Judge Roger Cosbey to the felony offense of conspiracy to distribute and possession with the intent to distribute crack cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Federal Bureau of Investigation/G-NET, the Indiana State Police, the Fort Wayne Police Department, the Allen County Police Department, the Allen County Drug Task Force and the New Haven Police Department.This case is being prosecuted by Assistant United States Attorneys Anthony Geller and Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Watertown Man Sentenced to 15 Years Pursuant to the Armed Career Criminal StatuteRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that SHAWN J. ADAMS (39, of Watertown, NY) was sentenced to today by United States District Court Judge Glenn T. Suddaby to 15 years imprisonment for being a three time convicted felon in possession of a firearm.
The charges stemmed from an incident on November 8, 2010, at approximately 1:00 a.m., when the Watertown Police Department received complaint involving a man with a gun that had entered the complainant’s residence through an open third floor window. Upon arrival at the third floor apartment, Watertown police officers located SHAWN J. ADAMS asleep on a couch along with a gun case near an open window. The officers then woke ADAMS and arrested him. Thereafter, ADAMS stated that the firearm in the gun case belonged to him and that the gun was a Remington. The officers then opened the gun case and located a Remington, SPR 453, 12 gauge, semi-automatic shotgun manufactured in Russia.
ADAMS had been previously convicted of crimes punishable by a term of imprisonment exceeding one year, that being: (1) a conviction in Saint Lawrence County Court on February 7, 1994, for the felony crime of Burglary in the Third Degree; (2) a conviction in Jefferson County Court, on October 26, 1998, for the felony crime of Attempted Burglary in the Third Degree; and (3) a conviction in Suffolk County Court on November 15, 2001, for the felony crime of Attempted Burglary in the Second Degree.
This prosecution resulted from an investigation conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Syracuse Office, the Watertown Police Department, and the New York State Police Troop D Unit. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Two Men Sentenced to Prison Terms for Robbery of Seven Men in Northwest Washington-Early-Morning Attack Took Place in Courtyard-Read the Press Release
WASHINGTON – Torrell Page, 21, was sentenced today to five years in prison on charges stemming from a robbery in which he and a 17-year-old accomplice targeted seven men in a courtyard in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The co-defendant, Isaiah Harris, 17, was sentenced today to a two-year prison term, with all but six months of the time suspended on the condition that he successfully complete three years of supervised release. Harris also was ordered to perform 80 hours of community service.
Page pled guilty to robbery and Harris pled guilty to attempted robbery in December 2012 in the Superior Court of the District of Columbia. They were sentenced by the Honorable Florence Pan. Upon completion of his prison term, Page will be placed on three years of supervised release. He and Harris also must make restitution to the victims.
According to the government’s evidence, on Oct. 13, 2012, at about 12:35 a.m., Page and Harris staged their attack in a courtyard in the 900 block of Gallatin Street NW. They approached their first victim in the rear of the courtyard, grabbing him and throwing him to the ground. Page pointed what appeared to be a semi-automatic firearm at the victim’s chest. He then pointed it at six other men, who were standing in the courtyard. Page yelled, “Hands up or I’ll kill y’all.” Harris then went into each of the victims’ pockets and took their personal property, including wallets, debit cards, cellphones and other items.
Page and Harris fled the courtyard and the victims chased them through the neighborhood. Both defendants were stopped by the police and identified by each of the seven victims as the men who had robbed them of their property. The weapon, which had been spray painted and taped over to look like a semiautomatic firearm, turned out to be a paintball gun.
In announcing the sentences, U.S. Attorney Machen commended the work of the officers and others who investigated the case for the Metropolitan Police Department. He also praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Debra McPherson and Todd McClelland, and Intelligence Specialist Sharon Johnson. Finally, he thanked Assistant U.S. Attorney Phil Selden, of the Fourth District Unit of the Felony Major Crimes Section, who investigated and prosecuted the case.
13-090Two Maryland Men Sentenced for Wire Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two Maryland men have been sentenced for engaging in a scheme to steal nearly $16 million from Vienna-based Southern Management Corporation’s (SMC) employee pension plan.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Robert Fulton Rood IV, 44, of Potomac, Md., was sentenced to 120 months in prison and Nikolaos M. Hepler, 31, of Gaithersburg, Md., was sentenced to 30 months in prison by U.S. District Judge Claude M. Hilton in Alexandria, VA. Both men pled guilty on Oct. 23, 2012.
Rood conceived and led a scheme to defraud Southern Management Corporation Retirement Trust (SMCRT), a pension plan established by SMC for its employees. As of Dec. 31, 2012, the plan’s assets were more than $30 million, and prior to April 2006 SMCRT generally managed its own investments, which included short-term, high-interest loans to real estate developers.
In April 2006, Rood persuaded SMC’s President and CEO to let Rood locate borrowers, negotiate loans to them, prepare the loan agreements, promissory notes and trust deeds and present loan application packages to the SMCRT loan committee, which would decide whether to purchase the proposed loans. If the committee decided to do so, it would wire the money to purchase the loan to a settlement company designated by Rood. Rood would use the money from SMCRT to fund the loan and would obtain from the borrower an executed loan agreement, promissory note and trust deed, which he would assign to SMCRT. In most cases, the borrowers were not aware of SMCRT’s involvement in the process.
Rood represented to both SMCRT and the borrowers that he would set up escrow accounts for the payment of interest to SMCRT and for construction payments to the borrowers. Instead, the moneys from all the loans were co-mingled into Rood’s principal bank account. When the project was finished and sold, the borrower was to pay back the amount borrowed to SMCRT.
From April 2006 to around October 2007, Rood sold to SMCRT approximately 32 mortgage loans that he had originated, of which 24 went into default after they were funded by SMCRT. One loan, referred to as the “K Street” loan, never closed because the title company was unable to clear title to the property, and Rood simply kept the money that SMCRT paid him to purchase the loan. Two other loans – the “Eastern Shore” and “Accom” loans – involved SMCRT loans that the borrowers refinanced with different lenders and sent their payoffs to Rood, who kept the payoff monies. In each case, Rood, assisted by Hepler, his employee, misrepresented to SMCRT that the loans were in place and performing satisfactorily, including Rood’s making of the monthly interest payments to SMCRT on the nonexistent loans.
When SMCRT requested an independent review of Rood’s accounts, Rood engaged Lloyd M. Mallory, a Maryland certified public accountant, to perform a review of the loans, disbursements and escrows. The accountant issued a report, which was actually prepared by Rood and Hepler, that falsely showed the status of the loans and the funds held by Rood. Mallory was sentenced to 24 months in prison on Aug. 2, 2012, following his plea of guilty to the conspiracy.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Michael E. Rich and Uzo E. Asonye prosecuted 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.Two Japanese Freight Forwarding Companies Agree to Plead Guilty to Criminal Price-Fixing ChargesRead the Press Release
WASHINGTON – Two Japanese air freight forwarding companies have agreed to plead guilty and to pay criminal fines totaling $18.9 million for their roles in a conspiracy to fix certain fees in connection with the provision of air freight forwarding services for air cargo shipments from Japan to the United States, the Department of Justice announced today. “K” Line Logistics Ltd. has agreed to pay a $3,507,246 criminal fine and Yusen Logistics Co. Ltd. has agreed to pay a $15,428,207 criminal fine.Including today’s charges, as a result of this investigation, 16 companies have either pleaded guilty or agreed to plead guilty and have agreed to pay criminal fines totaling more than $120 million.
“Consumers were forced to pay higher prices on the goods they buy every day as a result of the noncompetitive and collusive service fees charged by these companies,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Prosecuting these kinds of global, price-fixing conspiracies continues to be a top priority of the Antitrust Division.”
Freight forwarders manage the domestic and international delivery of cargo for customers by receiving, packaging, preparing and warehousing cargo freight, arranging for cargo shipment through transportation providers such as air carriers, preparing shipment documentation and providing related ancillary services.
According to charges filed separately today in the U.S. District Court for the District of Columbia, “K” Line Logistics and Yusen Logistics engaged in a conspiracy to fix and to impose certain freight forwarding service fees, including fuel surcharges and various security fees, charged to customers for services provided in connection with air freight forwarding shipments of cargo shipped by air from Japan to the United States from about September 2002 until at least November 2007.
According to the charges, the companies carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate and impose certain freight forwarding service fees and charges on customers purchasing freight forwarding services for cargo shipped by air from Japan to the United States. The department said the companies levied freight forwarding service fees in accordance with the agreements reached and engaged in meetings and discussions for the purpose of monitoring and enforcing adherence to the agreed-upon freight forwarding service fees.
Each company is charged with price fixing in violation of the Sherman Act, which carries a maximum $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charges are the result of a joint investigation being conducted by the Antitrust Division’s National Criminal Enforcement Section, the FBI’s Washington Field Office and the Department of Commerce’s Office of Inspector General. Anyone with information concerning the price fixing or other anticompetitive conduct in the freight forwarding industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contract/newcase.htm or call the FBI’s Washington Field Office at 202-278-2000.
Two Hungarian Nationals Sentenced in Tennessee for Roles in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
Hungarian nationals Beatrix Boka and Aleksandar Kunkin were sentenced today to serve 36 months and 46 months in prison, respectively, for their roles in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Boka, 34, and Kunkin, 40, were sentenced by U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee. In addition to their prison terms, Boka and Kunkin were each sentenced to serve two years of supervised release and ordered to pay $464,581 in restitution.
Boka and Kunkin each pleaded guilty in November 2012 to one count of conspiracy to commit bank and wire fraud.
According to testimony at Boka and Kunkin’s plea hearings, members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed the victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid. From May to June 2012, Boka and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.
The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department and the Cobb County, Ga., Sheriff’s Department.
Two Hungarian Nationals Sentenced in Tennessee for Roles in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
WASHINGTON – Hungarian nationals Beatrix Boka and Aleksandar Kunkin were sentenced today to serve 36 months and 46 months in prison, respectively, for their roles in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Boka, 34, and Kunkin, 40, were sentenced by U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee. In addition to their prison terms, Boka and Kunkin were each sentenced to serve two years of supervised release and ordered to pay $464,581 in restitution.
Boka and Kunkin each pleaded guilty in November 2012 to one count of conspiracy to commit bank and wire fraud.
According to testimony at Boka and Kunkin’s plea hearings, members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed the victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid. From May to June 2012, Boka and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.
The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department and the Cobb County, Ga., Sheriff’s Department.
The Executive Office for Immigration Review Announces Office of the Chief Immigration Judge Staffing UpdateRead the Press Release
FALLS CHURCH, Va. - The Executive Office for Immigration Review (EOIR) today announced the appointment of a second deputy chief immigration judge (DCIJ). Effective March 10, 2013, Assistant Chief Immigration Judge (ACIJ) Edward F. Kelly will become a DCIJ. Judge Kelly will assume direct supervision of the program components in the Office of the Chief Immigration Judge (OCIJ), including the legal unit, the language service unit, the organizational results unit, the chief clerk, and the executive officer.
“Judge Kelly’s appointment as deputy chief immigration judge is in recognition of his tremendous contributions to OCIJ’s efficiencies and services,” said Chief Immigration Judge Brian M. O’Leary. “With his expanded role, I am confident OCIJ will continue to improve our operations and inspire our staff.”
Biographical information follows:
Attorney General Holder appointed Judge Kelly as an ACIJ in March 2011. He received a bachelor of arts degree in 1982 and a juris doctorate in 1987, both from the University of Notre Dame. From November 2009 to March 2011, Judge Kelly served as senior counsel and chief of staff for OCIJ. From 2007 to 2009, he was counsel for operations for OCIJ at EOIR. From 1998 to 2007, Judge Kelly was a senior legal advisor for the Board of Immigration Appeals (BIA), EOIR. From 1995 to 1998, he served as a supervisory attorney and team leader for the BIA. From 1989 to 1993 and again from 1994 to 1995, Judge Kelly was an attorney advisor for the BIA. From 1987 to 1989, he served as an assistant counsel, Subcommittee on Immigration, Refugees, and International Law, U.S. House of Representatives, Washington, D.C. From 1982 to 1984, he served in the U.S. Peace Corps in Gabon, Africa. Judge Kelly is a member of the Virginia State Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewThe Executive Office for Immigration Review Announces New Senior Executive Service MemberRead the Press Release
FALLS CHURCH, Va. - The Executive Office for Immigration Review (EOIR) today announced an important staffing update within the Office of the Chief Immigration Judge (OCIJ). Effective March 10, 2013, Deputy Chief Immigration Judge (DCIJ) Michael C. McGoings will become a member of the Senior Executive Service, continuing to directly supervise the assistant chief immigration judges and the 58 field courts.
“I am so pleased to welcome Judge McGoings into the Senior Executive Service, a corps of government leaders who share a wealth of experience and a true commitment to public service,” said Chief Immigration Judge Brian M. O’Leary. “His well-honed executive skills and broad perspective of government will continue to benefit OCIJ.”
Biographical information follows:
Attorney General Eric Holder appointed Judge McGoings as Deputy Chief Immigration Judge in October 2009. He received a bachelor of arts degree in 1965 from Morgan State University, a master of science degree in 1967 from the University of Illinois, and a juris doctorate in 1973 from The Catholic University of America. From March 1995 to October 2009, Judge McGoings served as an Assistant Chief Immigration Judge. During this time, from February to July 2009, he served as acting Chief Immigration Judge. From 1994 to 1995, Judge McGoings was an associate general counsel serving as Chief of the Enforcement Legal Program and from 1991 to 1994, he was an associate general counsel for the Employer Sanctions and Civil Document Fraud Legal Program at the former Immigration & Naturalization Service (INS). From 1987 to 1990, he worked as assistant general counsel for the former INS. Judge McGoings is a member of the District of Columbia and Pennsylvania bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewTexas Man Pleads Guilty to Possession with Intent to Distribute More Than 50 Grams of MethamphetamineRead the Press Release
Jackson, Miss - Alberto Morales Alejandre, 25, of Dallas, Texas, pled guilty on March 7, 2013 to possession with intent to distribute more than 50 grams of methamphetamine, U.S. Attorney Gregory K. Davis announced.
Alejandre was indicted following his arrest on July 16, 2012 when, during a traffic stop on I-20, he was found to be transporting 9,991 grams of methamphetamine in a hidden compartment beneath the carpet of his vehicle. He will be sentenced on May 23, 2013 at 9:00 a.m. and faces a maximum sentence of life in prison and a $10 million fine.
This case was investigated by the Drug Enforcement Administration and the Pearl, Mississippi Police Department. It was prosecuted by Assistant U.S. Attorney Erin Chalk.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Tennessee-Based Therapy Providers to Pay $2.7 Million to <br /> Resolve False Claims Act AllegationsRead the Press Release
The Justice Department announced today that Chattanooga, Tenn., based nursing home manager Grace Healthcare LLC and its affiliate Grace Ancillary Services LLC (collectively, Grace) have agreed to pay $2.7 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for medically unreasonable and unnecessary rehabilitation therapy. Grace Ancillary Services LLC provided the therapy in some of the skilled nursing facilities Grace Healthcare LLC owns and/or manages in Tennessee and elsewhere.
The settlement resolves claims that in ten nursing home facilities in which Grace provided physical, occupational, and speech therapy for periods ranging from 2007 through June of 2011, Grace pressured therapists to increase the amount of therapy provided to patients in order to meet targets for Medicare revenue that were set without regard to patients’ individual therapy needs and could only be achieved by billing for a large amount of therapy per patient. As part of the settlement, Grace has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
“In today’s economic climate, it is more important than ever for the United States to make sure that Medicare and Medicaid funds are spent appropriately,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “The Department of Justice will not tolerate those who abuse government health care programs by providing services based on their own financial considerations, rather than the needs of their patients.”
“The continued viability of our federal healthcare benefit programs depends, in large part, on the honesty and integrity of the program participants,” said U.S. Attorney for the Eastern District of Tennessee Bill Killian. “Health care providers must make decisions regarding the level of services to be provided based solely on individual patient need rather than a desire to increase the bottom line. As this settlement demonstrates, when aggressive business practices cross the line into waste and abuse, we are committed to working with our federal and state partners to protect public funds.”
“Medicare does not pay for medically unnecessary rehabilitation services,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “The Inspector General is committed to identifying improper billing to Medicare and Medicaid and returning those dollars to the taxpayers.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
The allegations settled today arose from a lawsuit filed by a former Grace employee under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The whistleblower in this case will receive $405,000. The case is United States of America and State of Tennessee ex rel. Ottinger v. Grace Healthcare, LLC, Grace Ancillary Services, LLC, and John Does 1-5, No. 3:10-cv-83 (E.D. Tenn.).
The case was handled by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Tennessee, the Office of the Inspector General of the U.S. Department of Health and Human Services, the Tennessee Attorney General’s Office, and the Tennessee Bureau of Investigation’s Medicaid Fraud Control Unit. This action was supported by the Elder Justice and Nursing Home Initiative, which coordinates the Department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs.The claims settled by this agreement are allegations only; there has been no determination of liability.
Tax Preparer IndictedRead the Press Release
A tax preparer from Waterville, Ohio, was indicted on four tax counts related to efforts to evade his personal income tax obligation on more than $1.3 million in income, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
According to the indictment, Ronald D. Durbin, age 72, was the principal officer and operator of Citizens Tax Service. He is alleged to have failed to have filed income tax returns for the following years in which he had income on which taxes were due:
2006: $286,604
2007: $306,620
2008: $363,031
2009: $348,881
The indictment alleges that he sought to evade payment of his income taxes for these years by using a nominee owner of his tax preparation business and using nominee bank accounts to conceal the income.
This case is being prosecuted by Assistant United States Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations.An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilty beyond a reasonable doubt.
Tax Attorney Convicted of Causing Tax Loss of More Than $2 MillionRead the Press Release
HOUSTON – Tax attorney and Certified Public Accountant (CPA) William R. Zweifel has entered a plea to two counts of willfully aiding and assisting in the preparation and presentation of U.S. Individual Income Tax Returns that were false or fraudulent, United States Attorney Kenneth Magidson announced today along with Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI)
According to the plea agreement filed in the record of the case, Zweifel acknowledged he was a tax attorney and CPA and that he prepared false income tax returns for some taxpayers that claimed large tax refunds to which the taxpayers were not entitled. The method he used to create a false income tax refund was to offset a taxpayer’s income with an alleged loss from either a partnership in which the taxpayer had no partnership interest or from an S corporation which reported no loss for the taxpayer to claim. Zweifel stipulated in the plea agreement that the tax losses to the United States from the false claims on the two income tax returns listed in the criminal information were approximately $61,000 and approximately $42,000, respectively. Zweifel further admitted that for purposes of determining relevant conduct under the U.S. Sentencing Guidelines, the tax loss to the United States in this case is approximately $2.2 million.
“One of the IRS’s main objectives is to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law,” said Cruz. “CI’s efforts to deter refund fraud are critical to overall tax compliance. Our special agents play a valuable role in protecting revenue by identifying, investigating and recommending prosecution of abusive return preparers.”
Zweifel also has agreed to pay restitution to the United States of $250,000 and to never again aid or assist in the preparing or presenting of tax returns for any taxpayer other than himself and any entity he owns. He further agreed not to oppose any civil injunction action brought by the United States seeking to enjoin him from preparing income tax returns for anyone but himself and any entity he owns.
The court has set sentencing for May 23, 2013. The maximum penalty Zweifel faces on each count of willfully preparing a false income tax return is imprisonment of three years and a fine of $250,000. He was permitted to remain on bond pending that hearing.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
St. Lucie County Resident Convicted of Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announced that on March 7, 2013, a Ft. Pierce federal jury found defendant Cameron Dean Bates, 46, of Port Saint Lucie, guilty on all 18 counts of an indictment that charged Bates with receipt and distribution of child pornography via the internet.
U.S. District Judge K. Michael Moore, who presided over the eight day trial, immediately remanded Bates to the custody of the U.S. Marshall Service. Sentencing has been scheduled for June 3, 2013 in Ft Pierce. At sentencing, Bates faces a mandatory minimum of five years in jail and up to 20 years in prison and a lifetime of supervised release on each of the eight counts of receipt of child pornography and the one count of distribution of child pornography. Bates faces up to ten years imprisonment on the eight counts of accessing child pornography and the one count of possession of child pornography. In addition, Bates will be required to register as a sex offender.
According to testimony at trial, in March 2011, SLCSO detectives and members of the South Florida Internet Crimes against Children (ICAC) Task Force began an Internet investigation using Peer-to-Peer (P2P) software. During this investigation, law enforcement found that between December 2010 and June 19, 2012, several internet protocol (IP) addresses linked to Cameron Dean Bates in both St. Lucie County and Palm Beach County were used to download and share child pornography files. Detectives reviewed a number of the files associated with the IP addresses, and confirmed that the files contained child pornography.
On June 29, 2012, a state authorized search warrant was executed at Bates’ residence in Port Saint Lucie, Florida. During the search, law enforcement seized a Dell black/silver laptop computer from Bates’ car. An on-sight forensic preview scan of the computer found numerous, non-deleted, child pornography images and videos, which included a minor child engaging in sexually explicit conduct. A full forensic analysis of Bates’ laptop revealed numerous images and videos of child pornography, along with personally produced adult pornography by Bates.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff’s Office and HSI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and A. Marie Villafana.
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.
St. George Man Faces Fraud, Money Laundering, Tax Charges in Indictment Returned by Federal Grand JuryRead the Press Release
SALT LAKE CITY – A federal grand jury returned a six-count indictment Wednesday afternoon charging Christopher C. Harris, age 46, of St. George, Utah, with wire fraud, money laundering, and failure to file a federal tax return in connection with a scheme to defraud individuals and companies who were trying to purchase large quantities of cement.
According to the indictment, Harris owned a commodities distribution business under the name of Revolution Holdings, Inc., in St. George. Harris purported to supply commodities of all kinds throughout the world by obtaining and arranging for shipping of the commodities. Harris conducted business by, among other things, entering into contracts with customers who wired money into his personal accounts.
The indictment alleges that from about July 2008 to about July 2009, Harris devised a scheme to defraud individuals and companies identified in the indictment as D.D. (DJD International Solutions, LLC) and M.O. (American Quality Importers, LLC).
The indictment alleges Harris told the victims he had purchased and delivered large shipments of cement to prior customers and that he owned a large quantity of cement when, in fact, he did not. Harris also sent victims fraudulent documents purporting to be from third parties indicating that he and Revolution Holdings had fulfilled large-scale contracts in the past and that he had arranged for shipping vessels to transport cement overseas.
The indictment alleges that Harris defrauded victims of about $725,000 through his scheme.
The first three counts of the indictment allege wire fraud in the execution of the scheme by falsely obtaining the money and property of victims through the use of materially false representations and the omission of material facts. Two money laundering counts allege Harris used money he obtained through the scheme to make a $350,000 down payment on a personal residence and to purchase a $121,758 boat. The final count of the indictment alleges Harris did not file a federal tax return for 2008.
The potential maximum penalty for each count of wire fraud is 20 years in prison. The money laundering counts each carry potential 10-year sentences. The potential penalty for the tax charge is up to one year in prison. The indictment also includes a notice that federal prosecutors are seeking a forfeiture judgment of $725,000.
A summons will be issued to Harris to appear for an arraignment on the charges.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by special agents of the U.S. Secret Service and the IRS Criminal Investigation Division.
Six Men from Northwest Ohio Indicted for Their Roles in Chop-Shop ConspiracyRead the Press Release
Six men from northwest Ohio were indicted on a variety of charges related to their roles in a conspiracy to transport semi-trucks, trailers and cargo stolen in Ohio, Michigan and Indiana, said law enforcement officials said.
The 17-count indictment names Michael Wymer, age 54, of Toledo; Robert W. Debolt, Jr., age 47, of Toledo; Michael A. Deutsch, age 38, of Toledo; Shawn M. Wymer, age 27, of Holland; Gary J. Wymer, age 55, of Rossford, and Terrance L. Wymer, age 28, of Toledo, Ohio.
“This was a highly organized group that stole from people throughout the Midwest,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The FBI, Ohio State Patrol and all the law enforcement partners involved in this investigation did a tremendous job shutting down this ring.”
“These defendants operated a truck and cargo-theft ring, stealing from Ohio, Michigan and Indiana, which resulted in a multi-million dollar losses,” said Stephen D. Anthony, Special Agent in Chargeof the FBI’s Northern District of Ohio. “This case was a true collaborative effort by all participating agencies, and we are committed to holding accountable those individuals who engage in this organized criminal activity.”
Colonel John Born, Superintendent of the Ohio State Highway Patrol, said: “Criminals are using Ohio’s vast interstate system to engage in vehicle theft and fraud. These crimes degrade the quality of life in Ohio, and we will continue working together to ensure the safety and security of all Ohioans.”
The charges relate conduct that took place from August 2012 through February 2013, according to the indictment.
The men operated a chop shop located at 642 Sterling Street in Toledo, while Gary Wymer and others operated another chop shop at 2322 Consual Street in Toledo, according to the indictment.
The men would dismantle stolen semi-trucks, trailers and cargo, transport the pieces and parts of said stolen items between the two chop shops and the ultimately destroy or scrap the stolen goods, according to the indictment.
They also received stolen motor vehicles and parts with the intent to sell or dispose of them, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Cleveland, Ohio in conjunction with the Ohio State Highway Patrol and the Ohio Bureau of Motor Vehicles. The case is being handled by Assistant United States Attorneys Alissa M. Sterling and Thomas A. Karol.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Second Defendant Pleads Guilty in Tax Rebate ScamRead the Press Release
ROANOKE, VIRGINIA -- For the second time this week, one of three individuals charged with conspiracy and fraud charges related to a scheme to profit from fraudulent United States Treasury checks has pleaded guilty in the United States District Court for the Western District of Virginia in Roanoke.
Thursday in District Court, Khaldoun Khalil Khawaja, 47, of Wesley Chapel, Fla., pled guilty to one count of conspiracy to defraud the United States: buy, sell, exchange treasury checks bearing forged endorsements and one count of conspiracy to commit money laundering.
Earlier this week, Muawua Khalil Abdeljalil, 43, of Roanoke, Va., pled guilty to the same two charges as Khawaja, plus an additional count of structuring. A third defendant, Osama Mahmud Mustafa, has not yet been brought to trial.
“Mr. Khawaja conspired with two other men to negotiate fraudulent income tax refund checks and provided a market for the fraudulent checks,” United States Attorney Timothy J. Heaphy said today. “Stolen identity refund fraud is an emerging problem, one we will continue to prioritize. We will vigorously pursue all forms of fraud against the federal government and do what we can to hold those who commit these crimes accountable.”
“Today’s result is a tribute to strong multi-agency investigative work and efforts to eradicate this type of fraudulent scheme,” said Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Division.
“Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today's plea hearing is a reminder that individuals who scheme to defraud the U.S. Government by submitting false claims for profit will be brought to justice.”
The defendants have admitted to purchasing fraudulent income tax return checks and then presenting those fraudulent checks for payment at financial institutions in the Western District of Virginia, the Middle District of Florida and elsewhere.
In all, the defendants fraudulently deposited more than $17.5 million as a result of the scheme.
At sentencing, Khawaja faces up to 25 years in prison and/or a fine of up to $750,000. Abdeljalil faces up to 40 years in prison and/or a fine of up to $1,250,000 on these charges and an additional marriage fraud count charged in a separate indictment.
The investigation of the case was conducted by the Federal Bureau of Investigation, the United States Secret Service, the United States Marshals Service Asset Forfeiture Program, the Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) The United States Attorney’s office for the Middle District of Florida and the United States Attorney’s Office for the Western District of Virginia coordinated the prosecutions of the income tax refund fraud cases. Assistant United States Attorney Joseph Mott of the United States Attorney’s Office for the Western District of Virginia prosecuted the case for the United States.
San Diego Man Indicted for Fraudulently Obtaining Millions of Dollars of Cash and Equipment from CiscoRead the Press Release
SAN FRANCISCO – Yesterday, a federal grand jury in San Francisco indicted Quin Rudin (aka Dean Rubin, aka David Rubin) with two counts of wire fraud and one count of aggravated identity theft, United States Attorney Melinda Haag announced.
According to court documents, Rudin controlled CGC Digital (“CGC”), a company that was as an authorized partner of Cisco Systems, Inc. Last fall, CGC contacted Cisco to arrange for the lease of Cisco equipment on behalf of an end user, Altura Pharmaceuticals Inc. (“Altura”). Based on the information provided by CGC, Cisco approved the lease of equipment to Altura and agreed to provide more than $5.8 million in financing for the lease. According to the agreements, CGC would receive the Cisco equipment and the financing to install and service the equipment at Altura. In truth, Altura did not intend to lease any Cisco equipment, and no employee of Altura had engaged CGC to arrange a lease.
At the end of October 2012, a representative of CGC e-mailed to Cisco signed copies of agreements regarding Altura’s purported lease of Cisco equipment. Each agreement was purportedly signed by Altura’s Chief Financial Officer. Days prior to submission of these forged Altura documents to Cisco, Rudin allegedly caused the creation of an Internet domain purported to be that of Altura ending in “.net.” This .net domain was registered, not to Altura, but to CGC. Rudin then allegedly caused e-mails to be sent from the Altura.net domain to a Cisco representative. Each e-mail purported to be from the same employee at Altura who had executed the agreements, and each e-mail prompted Cisco to make a payment to CGC. These payments to CGC totaled approximately $2 million dollars.
The FBI arrested Rudin in San Diego on February 26. Rudin made his initial appearance in federal court in San Diego, and he remains in custody pending his arrival in San Francisco to face these charges.
The maximum statutory penalty for each count of wire fraud, in violation of 18 U.S.C. § 1343, is 20 years’ imprisonment, a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution if appropriate. The maximum statutory penalty for aggravated identity theft, in violation of 18 U.S.C. § 1028A, is 2 years’ imprisonment, to be imposed consecutively to any term of imprisonment imposed for wire fraud. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Kyle Waldinger and Hallie Hoffman are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth and Rawaty Yim. The prosecution is the result of a one-month investigation by the Federal Bureau of Investigation.
Please note that an indictment contains only allegations against an individual, and, as with all defendants, Rudin must be presumed innocent unless and until proven guilty.
San Angelo, Texas, Man Pleads Guilty in Federal Court to Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Victor Lopez, 47, of San Angelo, Texas, appeared this morning in federal court in Lubbock, Texas, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of receipt of child pornography. Lopez faces a maximum statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lopez has been in federal custody since his arrest following the execution of a federal search warrant at his residence by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) on January 23, 2013. He was indicted last month on several counts of receiving and possessing child pornography.
According to plea documents filed in the case, Lopez admitted that he used file-sharing software to collect numerous videos of child pornography, including depictions of sadistic and masochistic conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by ICE HSI and prosecuted by Assistant U.S. Attorney Steven M. Sucsy.
Rexford Woman Convicted of Harboring an Illegal AlienRead the Press Release
Albany, New York — A jury convicted Annie George, a/k/a Annie Kolath, a/k/a Sajimol George, age 40, of harboring an illegal alien following a five-day trial announced United States Attorney Richard S. Hartunian and Matthew Scarpino, Resident Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). Sentencing is scheduled for July 9, 2013 at 11:00 a.m. before the Honorable Gary L. Sharpe, Chief U.S. District Judge. George faces a maximum term of imprisonment of five years and a fine of up to $250,000.
According to the indictment, George harbored an illegal alien from India between about November 2005 and May 3, 2011 in George’s homes in Catskill, Menands, and Rexford, New York.
United States Attorney Hartunian stated: “This case demonstrates our commitment to investigate and prosecute those who harbor illegal aliens. We commend the U.S. Department of Homeland Security’s HSI for the thoroughness and professionalism demonstrated by their Special Agents throughout the course of this case.”
“Today’s conviction is a testament to our solemn commitment to protect those who cannot protect themselves,” said Matthew Scarpino, Resident Agent-in-Charge of HSI Albany. “HSI is committed to giving the victims the help they need to come forward with vigorous enforcement and tough penalties.”
This case was investigated by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). This case is being prosecuted by Assistant United States Attorney Rick Belliss.
LOCAL CONTACT:
Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247TextProvidence Man Sentenced to 8 Years in Federal Prison on Firearm and Drug ChargesRead the Press Release
PROVIDENCE, R.I. – Harold Moody, 47, of Providence, was sentenced today to 96 months in federal prison for being a felon in possession of a firearm and possession with the intent to distribute marijuana, announced United States Attorney Peter F. Neronha, Guy N. Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Boston Field Office, and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Chief Judge Mary M. Lisi also sentenced Moody to serve three years of supervised release following his prison term. Moody pleaded guilty to the charges on December 19, 2012.
According to information presented to the court, Moody failed to disclose numerous felony convictions, including convictions for armed robbery, assault and drug charges, on ATF forms he signed and submitted in April 2012 to a licensed firearms dealer in an attempt to transfer ownership of a Glock .45 caliber pistol to him from an acquaintance. The firearms dealer refused to transfer ownership of the firearm to Moody after determining that Moody was a convicted felon. Moody admitted to the court that he offered a clerk at the firearms dealership $900 in cash in attempt to persuade him to transfer ownership of the firearm. In June 2010, Moody proceeded to have his wife purchase two firearms for him.According to information presented to the court, an investigation by ATF agents beginning in May 2012 into suspected drug dealing activity by Moody resulted in multiple undercover purchases of marijuana from the defendant. A court authorized search of Moody’s residence on July 31, 2012, by ATF agents and Providence Police, resulted in the seizure of two Glock .45 caliber pistols, more than 58 grams of marijuana and various items used in the distribution of marijuana.
At the time of his guilty plea, Moody admitted to the court that he requested that his wife purchase the firearms from a licensed firearms dealer in June 2012 for protection. Moody also admitted to assisting his wife in making the purchases, and that the firearms belonged to him. In addition, Moody admitted to his drug dealing activities.
Moody has been detained in federal custody since his arrest on July 31, 2012.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Contact: 401-709-5357
[email protected]Portland Man Sentenced in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – A Portland man will spend six years in prison after pleading guilty to receiving child pornography. At a sentencing hearing held in federal court this morning, U.S. District Judge Anna J. Brown sentenced Keith Henry Jordan, 53, to 72 months in prison followed by a five-year term of supervised release. Jordan will be subject to stringent conditions of supervision, including prohibitions on associating with minors, and restrictions on his use of computers. Jordan will also be required to participate in sex offender treatment, and must register as a sex offender.
U.S. Attorney Amanda Marshall praised the sentence imposed on Jordan. “We as a society cannot and will not tolerate the sexual abuse and exploitation of children,” she said. “Every time someone uploads, downloads, trades, shares, or views images and videos of child sexual abuse, the children in those images are victimized all over again. By creating a demand for such images, those who collect them encourage the ongoing sexual abuse of children.” She added, “There is nothing innocent or harmless about collecting images depicting the sexual abuse of a child.”
The investigation began when a Clackamas County Sheriff’s detective, assigned to the Interagency Child Exploitation Prevention Team (“INTERCEPT”), learned that a computer user, later determined to be Jordan, was making images of child pornography available for download through a “peer-to-peer” file sharing program. INTERCEPT officers served a state search warrant at Jordan’s residence, then in Milwaukie, Oregon, and seized computer equipment and numerous compact discs. A forensic examination revealed that Jordan had almost 1300 images and over 200 videos graphically depicting the sexual abuse of very young children.
In imposing the sentence, Judge Brown described child pornography and the child pornography industry as an “abominable intrusion” into our society. She noted that it is “difficult” for the victims who appear in the images and videos “to ever have peace,” because the images and videos “can never be removed from the internet.” In determining the sentence, Judge Brown balanced the very serious nature of Jordan’s offense against his age, his lack of recent criminal history, and his health issues. Judge Brown expressed confidence that Jordan was not likely to re-offend following his release from prison.
Reading from a brief, prepared statement, Jordan apologized to the court and to the victims. He said he had “no idea” of the pain and suffering the victims continue to endure because the images of their abuse continue to circulate on the internet, but claimed that he understands now.
This case was investigated by the Clackamas County Sheriff’s Office, the INTERCEPT Task Force, and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U. S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the U.S. Attorney’s Office in Oregon.
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 and 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.
Pierce County Man Sentenced to 72 Months in Prison for Interstate Prostitution and Money Laundering Conspiracies, and Tax FraudRead the Press Release
A Milton, Washington man who owned a Federal Way Korean bar where Korean National women were promoted for prostitution was sentenced today to 72 months in prison and five years of supervised release, announced U.S. Attorney Jenny A. Durkan. CHANG YOUNG KIM, 59, was also ordered to pay $112,050 in restitution and over $1.6 million in back taxes and penalties to the Internal Revenue Service. KIM pleaded guilty in November 2012 to conspiracy to transport individuals for prostitution, conspiracy to engage in money laundering, bribery of a public official and tax evasion. KIM owned the Blue Moon Korean bar business in Federal Way which utilized Korean National women working illegally as ‘bar girls’ and prostitutes. KIM was indicted in three separate criminal schemes, some related to the club, and others to fraudulent business dealings. At sentencing U.S. District Judge Ronald B. Leighton said to the defendant, “you were a one-man criminal enterprise . . . [and] the most instrumental of everyone on a host of fronts.”
During 2010 and 2011, KIM owned the Blue Moon using ‘madam’ Miyoung Roberts, 42, of Auburn, Washington to recruit and manage more than two dozen “bar girls” and arranging their transportation from Korea to the U.S. KIM and his co-defendants arranged apartments for the women to live in and supervised some of the women’s prostitution activities. During the undercover investigation by law enforcement, KIM offered and paid $15,000 to a Washington State Liquor Control Board investigator believing the investigator was corrupt and that he was getting advance warning of inspections. The investigator was reporting the bribes as part of the undercover investigation.
In a separate scheme, KIM convinced two clients of his real estate company, Royal Realty, to invest $400,000 in the purchase of a Cle Elum, Washington motel. However there was no deal to purchase the property and KIM and two co-conspirators used the money for their own expenses. Finally, KIM attempted to evade more than $1.6 million in income taxes by failing to report income and by putting assets in other people’s names.
In asking for a significant sentence prosecutors wrote to the court that KIM “has spent a good part of his adult life steeped in fraud and deception. ….In order to commit these crimes, the defendant was willing to use his family members to further his personal objectives, causing them to place themselves in financial and legal jeopardy. He was willing to violate the law through bribery….. It is as though the defendant had no limits as to how far he would go to lie, cheat, and steal.”
“Kim operated a sex club a few blocks away from homes and schools, degrading the quality of life in the community as well as the women involved,” said Brad Bench, special agent in charge of HSI Seattle. “HSI will continue to work closely with its law enforcement partners to attack and dismantle these kinds of enterprises that prey on the vulnerable and often bring other criminal activity into the area.”
“Our communities deserve better than to have human trafficking going on in them,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “IRS Special Agents bring their unique skills in conducting financial investigations, ranging from tax evasion to money laundering, to the team of law enforcement professionals working to erase this type of crime from our region.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Internal Revenue Service Criminal Investigation (IRS-CI), the Washington State Liquor Control Board (WSLCB), the Federal Way Police Department, Lakewood Police Department, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Ye-Ting Woo.
Pennsylvania Police Officer Pleads Guilty to Federal Civil Rights OffenseRead the Press Release
Mark E. Thom Jr., 31, a Springdale Borough, Penn., Police Officer, pleaded guilty to a one count information charging him with violating the civil rights of an individual on Jan. 23, 2011 in Springdale, announced Thomas E. Perez, Assistant Attorney General for the Civil Rights Division and David J. Hickton, U.S. Attorney for the Western District of Pennsylvania.
According to the information and plea documents, on Dec. 17, 2011, Thom used excessive force on the victim during the course of making an arrest by assaulting him with his fists and deploying a Taser, all while the victim was handcuffed and not posing a threat to Thom or others. In accordance with his guilty plea, Thom admitted that his conduct amounted to a willful deprivation of the victim’s right to be free from unreasonable seizures.
“Police officers who abuse their power to assault citizens undermine the system of constitutional government they are sworn to uphold,” said Assistant Attorney General Perez. “As the plea in this case shows, the Civil Rights Division will work closely with our United States Attorneys to aggressively enforce the laws that prohibit police misconduct.”
“Thom admitted to using excessive force by punching and using a Taser against a handcuffed, non-resisting victim,” said U.S. Attorney Hickton. “Thom’s unlawful and unjustified conduct constitutes a clear deprivation of the man’s civil rights, a violation that this office takes seriously, and will vigorously investigate and prosecute.”
“The FBI holds as one of its highest priorities the investigation of civil rights violations, and the Pittsburgh Division will pursue those who are entrusted with protecting our citizenry and violate that trust. The FBI will continue to work with its law enforcement partners to ensure that justice is served,” said FBI Special Agent in Charge of the Pittsburgh Field Office G. Douglas Perdue. “I encourage the public to contact our FBI Civil Rights Public Corruption Hotline at 412-432-4122 to report any potential Civil Rights violation.”
Sentencing is scheduled for July 12, 2013. Thom faces a maximum sentence of 10 years in prison, a fine of $250,000 and three years of supervised release.
This case was investigated by the Pittsburgh Office of the FBI, and is being prosecuted by Assistant U.S. Attorney Shaun Sweeney and Civil Rights Division Trial Attorney Adriana Vieco.
Pennsylvania Man Sentenced for Possesion of child PornographyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Graham Godbey, 25, of Allentown, Pennsylvania, who was convicted of possession of child pornography, was sentenced to two years in prison and five years supervised release by
U.S. District Court Judge Richard J. Arcara.Assistant U.S. Attorney Fauzia K. Mattingly, who handled the case, stated that on June 29, 2010, the defendant attempted to enter Canada from the United States at the Peace Bridge. During an inspection of Godbey's vehicle by the Canada Border Services Agency, officers recovered a laptop computer which contained images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the result of an investigation being handled by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Niagara Regional Police, under the direction of Chief Jeffrey McGuire.Orlando Woman Agrees to Plead Guilty to Operating Multi-Million Dollar Fraud SchemeRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces that Tina Mangiardi (50, Orlando) has agreed to plead guilty to one count of conducting a prohibited monetary transaction. Mangiardi was charged by information on March 7, 2013, and faces a maximum penalty of 10 years in federal prison. The information also notifies her that the United States is seeking a money judgment in the amount of $100,000.00, the proceeds of the prohibited monetary transaction.
Mangiardi’s initial appearance and arraignment are scheduled for March 20, 2013, at 10:00 a.m. before United States Magistrate Judge David A. Baker.
According to the information and plea agreement, between 2009 and 2012, Mangiardi, under the corporate name of TLM Design and Construction, Inc. (TLM), engaged in a scheme wherein she fraudulently obtained more than $2.5 million from investors. During the scheme, Mangiardi convinced victims to invest large sums of money in a construction“bid bond” investment. In return, and as inducements to invest, Mangiardi promised the return of the investors’ initial investment, as well as bonus money and additional monetary payments at rates as high as 100%. However, Mangiardi was not awarded bid bond contracts with the investment funds because the construction projects that she allegedly bid on, never existed. Instead, Mangiardi diverted the money for her own use.
An information is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service with the assistance of the Orlando Police Department Economic Crimes Unit. It will be prosecuted by Assistant United States Attorney David Haas.
New York-Based Corning Incorporated to Pay U.S. $5.65 Million<br /> to Resolve False Claims AllegationsRead the Press Release
Corning Incorporated has agreed to pay the U nited States $5.65 million to resolve claims that it knowingly presented false claims to the United States for laboratory research products sold to federal agencies through Corning’s Life Sciences division. Corning, a New York based corporation, creates and makes glass and ceramic components for consumer electronics, mobile emissions controls, telecommunications and life sciences.
T he settlement resolves claims relating to a contract entered into by Corning in 2005 to sell laboratory research products to federal government entities through the General Services Administration’s (GSA) Multiple Award Schedule (MAS) program. The MAS program provides the government and other General Services Administration authorized purchasers with a streamlined process for procurement of commonly-used commercial goods and services. To be awarded a MAS contract, and thereby gain access to the broad government marketplace and the ease of administration that comes from selling to hundreds of government purchasers under one central contract, contractors must agree to disclose commercial pricing policies and practices, and to abide by the contract terms.
The settlement resolves allegations that, in contract negotiations and over the course of the contract’s administration, Corning knowingly failed to meet its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, including discounts offered to other customers, and that Corning knowingly made false statements to GSA about its sales practices and discounts . The settlement further resolves allegations that Corning knowingly failed to comply with the price reduction clause of its GSA contract by failing to disclose to GSA discounts Corning gave to its commercial customers when they were higher than the discounts that Corning had disclosed to GSA, and by failing to pass those discounts on to government customers. The United States alleged that, because of these improper dealings, it received lower discounts and ultimately paid far more than it should have for Corning products.
“This settlement shows that the United States expects all contractors participating in the MAS program to make full and accurate disclosures of their commercial pricing practices to the GSA and to act in good faith when dealing with the United States government,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division. “The failure to make full and accurate disclosures material to the government’s contracting processes will not be tolerated.”
“At a time when our political leaders are making tough choices about how to rein in federal spending, government contractors need to understand that they will not get away with overbilling the taxpayer,” said U.S. Attorney for the District of Columbia Ronald C. Machen Jr. “Companies that want to take advantage of federal contracts are obligated to deal openly and fairly with their government customers. When contractors fail to meet their obligations, we will hold them accountable and seek to make the taxpayer whole.”
“Contractors need to be honest and follow through with their promises to the federal government – or pay the consequences," said Brian D. Miller, Inspector General for the General Services Administration.
The settlement resolves a lawsuit filed in the U.S. District Court for the District of Columbia by a former Corning Life Sciences sales representative Kevin Jones under the qui tam, or whistleblower provisions, of the False Claims Act. Under the Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. Mr. Jones will receive $904,000 as his share of the government’s recovery.
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Columbia; the Department of Justice, Civil Division, Commercial Litigation Branch; and the GSA’s Office of Inspector General in investigating the allegations in this case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
New York-Based Corning Incorporated to Pay United States $5.65 Million to Resolve False Claims AllegationsRead the Press Release
WASHINGTON – Corning Incorporated has agreed to pay the United States $5.65 million to resolve claims that it knowingly presented false claims to the United States for laboratory research products sold to federal agencies through Corning’s Life Sciences division. Corning, a New York based corporation, creates and makes glass and ceramic components for consumer electronics, mobile emissions controls, telecommunications and life sciences.
The settlement resolves claims relating to a contract entered into by Corning in 2005 to sell laboratory research products to federal government entities through the General Services Administration’s (GSA) Multiple Award Schedule (MAS) program. The MAS program provides the government and other General Services Administration authorized purchasers with a streamlined process for procurement of commonly-used commercial goods and services. To be awarded a MAS contract, and thereby gain access to the broad government marketplace and the ease of administration that comes from selling to hundreds of government purchasers under one central contract, contractors must agree to disclose commercial pricing policies and practices, and to abide by the contract terms.
The settlement resolves allegations that, in contract negotiations and over the course of the contract’s administration, Corning knowingly failed to meet its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, including discounts offered to other customers, and that Corning knowingly made false statements to GSA about its sales practices and discounts. The settlement further resolves allegations that Corning knowingly failed to comply with the price reduction clause of its GSA contract by failing to disclose to GSA discounts Corning gave to its commercial customers when they were higher than the discounts that Corning had disclosed to GSA, and by failing to pass those discounts on to government customers. The United States alleged that, because of these improper dealings, it received lower discounts and ultimately paid far more than it should have for Corning products.
"At a time when our political leaders are making tough choices about how to rein in federal spending, government contractors need to understand that they will not get away with overbilling the taxpayer,” said U.S. Attorney Ronald C. Machen Jr. “Companies that want to take advantage of federal contracts are obligated to deal openly and fairly with their government customers. When contractors fail to meet their obligations, we will hold them accountable and seek to make the taxpayer whole.”
“This settlement shows that the United States expects all contractors participating in the MAS program to make full and accurate disclosures of their commercial pricing practices to the GSA and to act in good faith when dealing with the United States government,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Department of Justice’s Civil Division. “The failure to make full and accurate disclosures material to the government’s contracting processes will not be tolerated.”
“Contractors need to be honest and follow through with their promises to the federal government – or pay the consequences," said Brian D. Miller, Inspector General for the General Services Administration.
The settlement resolves a lawsuit filed in the U.S. District Court for the District of Columbia by a former Corning Life Sciences sales representative Kevin Jones under the qui tam, or whistleblower provisions, of the False Claims Act. Under the Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. Mr. Jones will receive $904,000 as his share of the government’s recovery.
This settlement was the result of a coordinated effort by the U.S. Attorney=s Office for the District of Columbia; the Department of Justice, Civil Division, Commercial Litigation Branch; and the GSA’s Office of Inspector General in investigating the allegations in this case. The claims settled by this agreement are allegations only, and there has been no determination of liability.
13-089Missouri City Man Pays Price for Illegally Possessing Bald EagleRead the Press Release
CORPUS CHRISTI, Texas - Sam Mathew, 53, of Missouri City, has been ordered to pay the maximum fine allowed by law for illegally possessing a bald eagle, United States Attorney Kenneth Magidson announced today.
Mathew was indicted in May 2012 for one count of violating The Migratory Bird Treaty Act (MBTA). He was later convicted by a Victoria federal jury in on Dec. 18, 2012, following two days of trial and approximately an hour of deliberations.
Today, U.S. Magistrate Judge Brian L. Owsley, who presided over the trial, ordered Mathew to pay a $15,000 fine, the maximum allowed by law, and to serve three years of probation, during which time he must complete 150 hours of community service and anger management classes.
During trial, the government presented evidence and testimony that indicated Mathew intended to catch a juvenile bald eagle for the purpose of training it in falconry. Evidence indicated there was an active bald eagle nest located on Mathew’s property and he had already researched how to capture it.
Mathew testified in his defense and claimed the bird was out of its nest and on a tree limb and had instructed two ranch hands to remove it. However, testimony indicated the bird was actually still in its nest when they were about to capture it. The eagle apparently got scared and fell out of the tree at that time and Mathew and one of the ranch hands caught it. The MBTA does allow the possession of nongame birds, but only if they are injured, sick or orphaned and if they are immediately transported to be rehabilitated.
U.S. Fish and Wildlife Service (FWS) officials learned of the eagle and that the nest housing it had apparently been disturbed and went to the residence. Upon arrival, they noticed there were fresh tire tracks around the tree and several broken branches as well as a set of tree climbing gear with ropes.
Mathew claimed he thought the bird was injured and was rescuing it to take it to a rehabilitator. The jury disagreed and found him guilty as charged.
The MBTA provides protection for migratory birds. The MBTA prohibits to pursue, hunt, take, capture or kill, attempt to take, capture or kill, possess, offer for sale, sell, offer to purchase, purchase, deliver for shipment, ship, cause to be shipped, deliver for transportation, transport, cause to be transported, carry, or cause to be carried by any means whatever, receive for shipment, transportation or carriage, or export, at any time, or in any manner, any migratory bird, included in the terms of this Convention . . . for the protection of migratory birds . . . or any par, nest, or egg of any such bird. The bald eagle is a non-game migratory bird as defined in Title 50, Code of Federal Regulations, Part 10.13.
The case was investigated by agents from the U.S. Fish and Wildlife Service and Texas Parks and Wildlife Department. The case was prosecuted by Assistant United States Attorneys Hugo R. Martinez and Patti Hubert Booth.
Michigan Couple Pleads Guilty in Fraudulent Test Kit SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Allison C. Lerner, Inspector General, National Science Foundation (NSF), and Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announced today that Alexander Lorin Davis, 40, and Dawn Marie Davis, 46, both of Pinckney, Michigan, pled guilty today in federal District Court in West Palm Beach to charges related to falsely making and forging the seal of the National Science Foundation (NSF), an agency of the United States, and mail fraud in connection with the marketing by internet of environmental test kits to the public which were not in fact analyzed by qualified laboratories as asserted in advertisements and literature accompanying the kits, in violation of Title 18, United States Code, Sections 506(a)(1), 1341, 4, and (2).
U.S. District Judge Kenneth Ryskamp accepted the guilty pleas, and set sentencing for Alexander Davis for June 27, 2013 at 2:00 p.m. in West Palm Beach. The defendant faces a term of possible imprisonment of up to five years on the count of misusing the logo of the NSF and up to 20 years for the charges related to mail fraud. Additionally, he faces a term of supervised release of up to five years. Dawn Davis, who pled guilty to a charge of misprision of a felony for failing to alert appropriate authorities to the criminal conduct, was immediately sentenced in the matter by Judge Ryskamp to a 2 year term of probation and will be subject to a restitution order after a hearing to be held on April 25, 2013.
According to court records and Joint Factual Statements submitted to the Court, during the period from May 2011 through November 2012, Alexander Davis was the owner and operator of Davis Test Kits (DTK). DTK was in the business of marketing test kits to be used in homes or businesses for the purpose of detecting the presence of various environmental pollutants and substances, such as molds, asbestos, radon, and lead. During this time, the DTK website displayed the forged and counterfeited seal of the NSF, without the permission or knowledge of the NSF. As part of the scheme, Alexander Davis also made materially false representations and promises on the DTK website, claiming that upon return of the test kit by the customer DTK would cause the kit to be submitted for testing by individuals from an established, accredited laboratory.
In this way, Davis knowingly caused hundreds of the DTK kits to be delivered to and returned from customers via the U. S. Postal Service . In fact, DTK did not operate or employ testing laboratories certified as represented on the website and many test kits returned to DTK were never submitted for testing by an accredited laboratory. In order to provide a test report to customers whose mold test kits were not in fact tested, defendant would use a template from other laboratory tests as if they were unique to the new customer’s sample. The purpose of the false representations was to obtain money from customers whose samples were not tested by the accredited laboratory and/or to induce the customers to engage DTK to provide additional services for further payment.
During the same time period, Dawn Davis, was aware that her husband was employing and using the seal of the NSF on the internet website of DTK and knew the company was marketing the test kits. She was also aware that DTK in fact did not submit all the customer test kits received through the mail to accredited laboratories for analysis as DTK represented on its website and in written materials provided to the customers. Despite her knowledge of the mail fraud being perpetrated by her husband, Dawn Davis concealed and failed to make known as soon as possible to an appropriate official that DTK was selling its testing services without any affiliation or connection to NSF, and was failing to provide the purchased testing services to some customers.
The National Science Foundation is an independent federal agency established by Congress in 1950 to promote the progress of science and to advance the national health, prosperity, and welfare. The agency meets this mission by funding approximately 20% of all federally supported basic research conducted by America’s colleges and universities with an annual budget of approximately $6.9 billion. The National Science Foundation neither tests consumer products, nor audits and inspects private laboratories.
Mr. Ferrer commended the investigative efforts of the National Science Foundation and the U. S. Postal Inspection Service. The criminal case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Miami County Man Pleads Guilty to Producing Sexually Explicit Videos of Children He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Kevin D. Todd, 41, of Ludlow Falls, Ohio pleaded guilty in U.S. District Court to one count of sexual exploitation of children for producing sexually explicit videos of pre-pubescent children he babysat and offering online to trade the videos.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, Franklin County Sheriff Zach Scott, Miami County Sheriff Charles A. Cox, and Darke County Sheriff Toby L. Spencer announced the plea entered yesterday before U.S. District Judge Timothy S. Black.
Terms of the plea agreement call for Todd to spend at least 20 years and up to 25 years in prison. Judge Black will review the plea agreement and has scheduled sentencing for Todd for July 11.
“Sexual exploitation of children by someone who has the responsibility of caring for them is a crime that merits swift, sure punishment,” U.S. Attorney Stewart said. “I want to encourage anyone with any information involving any other possible victims of exploitation to call local law enforcement.”
According to court documents, an undercover investigator with the Franklin County Internet Crimes Against Children Task Force (ICAC) responded to an ad Todd posted on the internet in November 2012 seeking people looking for “taboo.” Through a series of emails, Todd asked the undercover investigator to meet and trade videos and pictures of child pornography. They arranged a meeting and officers arrested Todd on November 24, 2012 when he showed up for the meeting. Investigators found DVDs and other storage media containing pornographic videos and photos in Todd’s car.
Forensic examination found that Todd had produced the videos of the minor females between August 2010 and November 2012 in the bathroom of his residence.
Todd has been held without bond since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorney Sheila Lafferty, who is representing the United States in this case.
Metro-East Businessman Sentenced in Conspiracy to Defraud the City of East St. Louis and Money LaunderingRead the Press Release
Stephen L. Carraway, 50, of Cahokia, IL, was sentenced to a total term of imprisonment of 36 months in prison, a $2,000 fine and two years of supervised release for the offenses of Conspiracy to Defraud the City of East St. Louis’ Demolition Program and Engaging in a Monetary Transaction over $10,000 in Property Derived From Specified Unlawful Activity, in addition to a supervised release revocation for a previous controlled substance conviction, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Carraway received a sentence of 30 months in prison on the new offenses and received a consecutive six month sentence of incarceration on the supervised release revocation.
Stephen L. Carraway owned and operated Steve’s Hauling Inc., an Illinois corporation with its principle place of business in the City of East St. Louis. Steve’s Hauling provided demolition services to the City of East St. Louis. The convictions are the result of Carraway's conduct in 2010 when he made a cash payment in the form of a kickback to a City of East St. Louis official in order to receive an emergency demolition contract from the City of East St. Louis. Carraway was told how much to bid in order to be awarded the contract. Carraway thereafter submitted a falsified certificate of insurance in the bid proposal when he did not have an existing liability insurance policy in effect.
The investigation was handled by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations with the cooperation of the St. Clair County State’s Attorney’s Office. The prosecution of the case was handled by Assistant United States Attorney Norman R. Smith.
Man Sentenced in Federal Court for Violent Home InvasionRead the Press Release
MOBILE, Ala. - Brandon Jarrod Nobles, 26, was sentenced in federal court today for his role in a violent home invasion here during November of 2011. Nobles entered a guilty plea to the three charges, (1) conspiracy to use and carry a firearm in connection with a crime of violence and possession of a firearm in furtherance of a crime of violence, (2) the use of a firearm in furtherance of a crime of violence, and (3) kidnapping, in July of 2012. The indictment alleges that Nobles and his co-defendants, Zerrick Robinson and Miller Griffin, broke into the victims’ residence shouting “FBI,” and “Police.” They sought to steal drugs and money from one of the occupants of the residence, and when they did not get what they wanted, they shot one victim and kidnapped the other. The victim who was kidnapped was held for ransom while Nobles and the others used cell phones to make calls to collect money for her release.
The kidnap victim made a statement in court about her ordeal, and how the violence of the incident at her residence had adversely affected her minor child. She explained that the child was present when Nobles and the others broke into the home, assaulted her, shot her husband, and took her away at gunpoint. She told the judge that she could not take her child to any event where police were present, like parades and circuses, because the child had been traumatized by the actions of Nobles and his co-defendants that night at her home when they broke in, claiming to be the police.
District Court Judge Kristi Dubose ordered that Nobles serve a total sentence of 22 years imprisonment, to be followed by a supervised release term of five years. She also imposed the special mandatory assessment of $300, but no fine.
The case was investigated by the Chickasaw Police Department, the Federal Bureau of Investigations, the Mobile Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Local Businessman Pleads Guilty to Fraud, Bankruptcy ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A local businessman and former commercial real estate agent, who was indicted in September 2012 on a variety of federal fraud charges, pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville to an Information charging him with related conduct.
Today in District Court, Michael Wayne Harding, 59, of Keswick, Va., waived his right to be indicted and entered a plea of guilty to one count of wire fraud and one count of bankruptcy fraud.
“In a series of schemes devised over several years, Mr. Harding defrauded investors and mortgage companies in order to sustain his lavish lifestyle,” United States Attorney Timothy J. Heaphy said today. “He repeatedly lied to his clients, banks, and courts of law and ultimately obtained more than $2 million for his personal use. Mr. Harding’s lies came to an end today in federal court, where he was justly held accountable for his actions.”
“Mr. Harding intentionally falsified documents to secure mortgages, and failed to comply with instructions of his bankruptcy proceedings. His guilty plea today is a result of the investigative work of our law enforcement partners, representing a unified effort to investigate those who choose to circumvent the law,” said Jeffrey C. Mazanec, Special Agent in Charge for the FBI’s Richmond Field Office.
According to a statement of facts agreed to by the defendant and admitted to the Court at this afternoon’s hearing, Harding was the president and sole employee of a company called HMC Holdings. On numerous occasions, Harding attempted to secure mortgages for properties HMC Holdings owned based on improvements that had been made to those properties. However, in order to secure the mortgages, Harding was required to provide the mortgage companies with proof that work had been done to the properties. Harding is alleged to have created fake invoices in order to secure the mortgages.
Harding also admitted that after being issued checks by the mortgage companies intended for the contractors, Harding took those checks to local businesses and had the funds converted for his own personal use.
In April 2011, Harding filed bankruptcy. The defendant admitted today that during his bankruptcy proceedings he filed false Monthly Operating Reports, failed to deposit all income into his Debtor-in-Possession account, which is required by the Court, and lied about forging signatures on releases, liens and deeds of trust.
The investigation of the case was conducted by the Albemarle County Commonwealth Attorney’s Office, the Virginia State Police, the Federal Bureau of Investigation, IRS Criminal Investigation and the Office of the United States Trustee. Special Assistant United States Attorneys Matt Quatrara, Elliott Casey and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.
Lebanon City Man Charged Federally with Enticement and Child PornographyRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the indictment today by a federal grand jury in Harrisburg of Lebanon City man for child pornography offenses.
According to United States Attorney Peter J. Smith, Howard D. Davis, age 57, is charged with allegedly enticing a fourteen-year-old to engage in sexually explicit activity and requesting that these sexual images be sent through the internet. The fourteen-year-old was, in reality, an undercover officer with the Nebraska State Police. A subsequent search warrant executed at Davis’s address uncovered a computer with alleged child pornography which Davis distributed to others over the internet.
The case was investigated by the United States Postal Inspectors in conjunction with the Nebraska State Police and the Pennsylvania Office of Attorney General. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is life imprisonment for Davis and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Leader of 4x4 Drug Organization Exiled to 20 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Dearius Forrester, a/k/a “D,” “Little D,” “Muffler” and “Chicken,” age 24, of Rosedale, today to 20 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute powder and crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Forrester’s plea agreement, the indictment and other court documents, from at least June 2009 through August 2010, Forrester led a drug distribution organization that operated in the Northeast Baltimore neighborhood known as the “4x4." The “4x4” is a small, relatively closed neighborhood consisting of four streets running north-south and four streets running east-west. Ravenwood, Elmora, Lyndale and Elmley Avenues all run east and west and are one-way streets. Greenview, St. Cloud, Highview and Longview Avenues all run north and south and are two-way streets.
The area is bordered on the east and west ends by Edison Highway and Belair Road, respectively.
According to his plea and other court documents, law enforcement overheard Forrester and his co-conspirators discussing their drug activities. Forrester admitted that during the time of the conspiracy he distributed crack and powder cocaine, collected money from drug customers and distributors, and assisted the drug trafficking activities of other members of the drug conspiracy. During the time of the conspiracy, Forrester was responsible for the distribution of 280 grams or more of crack cocaine, and 5 kilograms or more of powder cocaine.
Co-defendants Raymond Moore, a/k/a “Money,” age 20, and Tony Robinson, a/k/a “Peterman,” and “Pete,” age 30, both of Baltimore, each pleaded guilty to the same charge and were sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein thanked ATF’s Violent Crime Impact Team, the Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorney Michael C. Hanlon and former Special Assistant United States Attorney Traci L. Robinson, a cross-designated Baltimore City Assistant State’s Attorney, who prosecuted the case.
Layne Housel Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on March 8, 2013, before U.S. District Judge Dana L. Christensen, LAYNE HOUSEL, a 61-year-old resident of Philipsburg, appeared for sentencing. HOUSEL was sentenced to a term of:
Prison: 12 months and 1 day
Special Assessment: $100
Supervised Release: 3 years
HOUSEL was sentenced in connection with his guilty plea to Social Security disability fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Leif M. Johnson, the government stated it would have proved at trial the following:
Between 1995 and 2009, HOUSEL received disability payments for himself and his minor children related to degenerative disc disease that prevented him from working. Pursuant to the terms of his continued eligibility to receive disability payments, HOUSEL had to periodically update his status and report whether his condition had changed.
Beginning in 1997, HOUSEL declared employment as a part-time butcher in Hamilton. He reported only $180 in wages per month, which, at that time, was the minimum amount that could be reported without triggering a reassessment of his disability status by the Social Security Administration (SSA). He would later report $200, and then $220 per month as the SSA threshold amounts indicating "substantial gainful activity" increased.
Eventually, SSA officials became aware that HOUSEL was working more than he was reporting. SSA asked HOUSEL to update his work status. HOUSEL reported no new information and reiterated his previous statements about working 2 hours a day for about $200 per month. The SSA also contacted HOUSEL's employer. The employer submitted a report indicating the same thing that HOUSEL had stated - that HOUSEL worked only a couple hours a day for a couple hundred dollars a month. In an interview in 2009 with SSA, HOUSEL stuck to the story that he only worked 2 hours a day for about $200 per month.
A search was conducted at the business. Records there indicated that HOUSEL was working far more than he reported to the SSA and that his employer was paying him cash "under the table" for any amounts above the SSA minimum threshold to qualify for disability payments.
Several former employees at the business confirmed that HOUSEL worked far more than the limited amount reported to SSA.
The cash payments dwarfed the payroll checks. For instance, in November of 2007, HOUSEL was paid nearly $5,000, while he reported only $200.
In a second interview, his employer admitted that he had lied on HOUSEL's behalf and had mis-stated HOUSEL's true work hours and earnings in an effort to help HOUSEL make ends meet.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HOUSEL will likely serve all of the time imposed by the court. In the federal system, HOUSEL 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 Social Security Administration - Office of Inspector General.
Lawrence County Man Indicted for False Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has charged Harold J. “Bucky” Shafer, 66, of Pedro, Ohio with ten counts of aiding and assisting in the preparation of false and fraudulent income tax returns and two counts of filing false income tax returns.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office (IRS) announced the indictment returned March 6.
The indictment alleges that Shafer prepared returns for customers of his tax preparation service that falsely represented that the taxpayers were entitled to claim expenses and deductions he knew they were not entitled to claim. The indictment also alleges that Shafer filed fraudulent tax returns on his own behalf for two tax years reporting that his business earned income of $426 one year and $1,101 the following year, knowing that he earned more than he reported.
Each count of the indictment is punishable by up to three years in prison and a fine of up to $250,000.
Shafer will appear in U.S. District Court in Cincinnati for an initial hearing on March 14, 2013.
Assistant United States Attorney Deborah Grimes is representing the United States in this case.
U.S. Attorney Stewart commended the agents of IRS Criminal Investigation in Charleston, West Virginia, which is part of the Washington, D.C. Field Office, who conducted the investigation.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Last of the Arellano Felix Brothers Enters Guilty PleaRead the Press Release
SAN DIEGO, CA - Eduardo Arellano-Felix, 56, the last of four brothers to be targeted by U.S. prosecutors for leading one of the world’s most notorious multi-national drug trafficking organizations, pleaded guilty today in federal court in San Diego to money laundering and conspiracy charges.
The plea marks the conclusion of the U.S. government’s 20-year legal battle to dismantle the Arellano Felix Organization (AFO), which moved hundreds of tons of cocaine and marijuana from Mexico and Colombia into the U.S. and made hundreds of millions of dollars in the process. The cartel terrorized the Southwest border and beyond with executions, torture, beheadings, kidnappings and bribes to law enforcement, military personnel and government officials.
“I’m proud to say this is the end of an era,” said U.S. Attorney Laura Duffy. “When this ruthless cartel was thriving in the 1990s, we made what some considered an audacious and impossible commitment to wipe out the organization. Today, we can say we have done just that.”
“This plea agreement pounds the final nail in the coffin of what used to be the Arellano- Felix Organization,” says DEA San Diego Special Agent in Charge William R. Sherman. “The AFO, once a brutally violent cartel, now becomes a footnote in history books, while DEA and our partners focus on dismantling the drug trafficking organizations that have moved in since the AFO’s demise. We will be just as relentless in our pursuit of these new trafficking organizations and they will be brought to justice in the same manner as the AFO.”
In his plea agreement, Arellano-Felix – a medical doctor nicknamed “El Doctor” - admitted he was a senior member of the AFO. He also admitted that he laundered hundreds of millions of dollars in drug trafficking proceeds and used some of the income to pay AFO members to commit crimes; to buy firearms, ammunition and vehicles; to travel on AFO-related business; to pay bribes; and to purchase drugs. He signed his plea agreement, “Dr. Eduardo Arellano Felix.”
In connection with his plea, Arellano-Felix will also forfeit $50 million and the parties will jointly recommend that he be sentenced to serve 15 years in prison. Before he was extradited, Arellano-Felix spent almost four years in custody in Mexico, from October 25, 2008 to August 31, 2012. Sentencing was set for August 19, 2013 at 9:30 a.m., before U.S. District Judge Larry A. Burns.
“We have effectively dismantled the leadership of a notorious cartel that operated with impunity for more than a decade,” Duffy said. “Given the mission’s overall success and the prosecution challenges of building a case against the highest-ranking members of a major trafficking organization, this resolution is a very favorable disposition for the United States.”
“Today’s guilty plea by Eduardo Arellano-Felix is the final major blow to this powerful and vicious drug trafficking organization whose criminal enterprise included an elaborate money laundering scheme,” said Special Agent in Charge Jose A. Gonzalez, IRS Criminal Investigation, Los Angeles Field Office. “IRS Criminal Investigators can and will unravel sophisticated money laundering schemes, working side-by-side with our law enforcement partners, in the dismantling of these dangerous and deadly drug cartels.”
San Diego FBI Special Agent in Charge Daphne Hearn said, “Todays guilty plea demonstrates the unwavering commitment of the FBI to continue working with our domestic and international law enforcement partners to disrupt and dismantle violent criminal enterprises such as the Arellano-Felix Organization, that instill fear and threaten the safety of our citizens.”
The resolution of this case was a long time in coming.
Arellano-Felix was first indicted in 1998, along with his brothers, on drug conspiracy charges. Then in 2002, prosecutors added charges of racketeering, money laundering and conspiracy to distribute and import marijuana and cocaine in a subsequent indictment. He was arrested by Mexican authorities in Tijuana, Baja California, Mexico on October 25, 2008, following a gun battle with a Mexican Special Tactical Team. A final order of extradition to the United States was granted in 2010.
After two years of unsuccessful appeals, Arellano-Felix was extradited by the government of Mexico to the United States on August 31, 2012, to face charges in the Southern District of California.
Brothers and former leaders of the AFO, Benjamin Arellano-Felix and Francisco Javier Arellano Felix, were captured in 2002 and 2006, respectively, and are currently serving sentences in the United States following their convictions for racketeering, drug trafficking, and money laundering charges. Ramon Arellano-Felix, the cartel's enforcer, was killed in a shootout with police in 2002.
In addition to the brothers, this office has convicted a long line of top AFO lieutenants, including, in part, Arturo Paez-Martinez in 2002, Ismael and Gilberto Higuera-Guerrero in 2007 and Jesus Labra-Aviles in 2010.
This case (Case Number: 97cr2520-LAB) was investigated by agents from the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation and prosecuted in the Southern District of California by Assistant United States Attorneys Joseph S. Green, James P. Melendres, and Daniel E. Zipp.
The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The investigation of Eduardo Arellano-Felix was coordinated by an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was created to consolidate and coordinate all law enforcement resources in this country's battle against major drug trafficking rings, drug kingpins, and money launderers.
SUMMARY OF CHARGES IN GUILTY PLEASCount 1
Count 2
Title 18, United States Code, Sections 371 (Conspiracy to
launder monetary instruments) Maximum penalty: 5 years of custody.Title 21, United States Code, Sections 854(a) and 846 (Conspiracy to use and invest illicit drug profits) Maximum penalty: 10 years of custody.
LIRR Retiree Sentenced in Manhattan Federal Court to 20 Months in Prison for Role in Massive Disability Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that GARY SATIN, a former electrician with the Long Island Railroad (“LIRR”), was sentenced today to 20 months in prison for his participation in a massive fraud scheme in which LIRR workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. SATIN previously pled guilty to his participation in the scheme as well as to perjury for making false statements to the grand jury that was hearing evidence in this case. SATIN was sentenced by U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Preet Bharara said: “With his sentence today, Gary Satin becomes the first in a long line of perpetrators to learn the price for his participation in this reprehensible scheme, but he will not be the last.”
According to the Complaint and the Superseding Information:
The LIRR Disability Fraud Scheme
The Railroad Retirement Board (“RRB”) is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service), they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under oath in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 2004 through 2008, 61% of LIRR employees who stopped working and began receiving RRB disability benefits were between the ages of 50 and 55. In contrast, only 7% of employees at Metro-North who stopped working and received disability benefits during the same time period were between the ages of 50 and 55.
SATIN’s Fraud
GARY SATIN was an LIRR electrician who retired in June 2005 at the age of 55. In his last year of employment, SATIN received approximately $84,000 in compensation. After retirement, he sought and obtained sickness and disability benefits from the RRB. In 2010, he received approximately $32,000 in LIRR pension payments and approximately $36,000 from his RRB disability annuity, for a total of $68,000 in annual benefits.
In applying for disability benefits, SATIN claimed that he was unable to perform his railroad job and that indoor and outdoor chores were “difficult.” However, as SATIN admitted in his plea allocution, no medical condition prevented him from performing his railroad job. Instead, SATIN had pre-planned his false disability to supplement his retirement income. In fact, in the 18 months prior to his retirement, SATIN did not take a single day of sick leave, and in the five months prior to his retirement, he worked approximately 154 overtime hours. In the years after his retirement, SATIN performed landscaping, contracting, and electrical work for pay. SATIN also exploited his false disability to obtain other benefits to which he was not entitled, such as a handicapped parking pass from New York State, claiming that his disability “severely limited” his “ability to walk.”
SATIN’s Perjury
On April 28, 2011, SATIN appeared before a grand jury in the Southern District of New York. After swearing to tell the truth, and after having been advised of his rights and his obligation to provide truthful testimony, SATIN intentionally provided false and misleading testimony on material matters, including falsely denying that he performed landscaping, contracting, and electrical work post-retirement.
In addition to the prison term, Judge Marrero sentenced SATIN, 63 of Mooresville, North Carolina, to three years of supervised release and ordered him to pay restitution and forfeiture in the amount of $247,000, and a $200 special assessment.
Manhattan U.S. Attorney Bharara praised the RRB-OIG, the FBI, and the MTA-OIG for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
Thirty-two people have been charged in connection with the LIRR disability fraud scheme, 22 of whom have pled guilty. The charges against the remaining defendants are merely allegations and they are all presumed innocent unless and until proven guilty.
The Office’s Complex Frauds Unit is handling the case. Assistant U.S. Attorneys Justin Weddle, Nicole Friedlander, and Daniel Tehrani are in charge of the prosecution.
Ketchikan Man sentenced to 36 months in Federal Prison for drug conspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen Loeffler announced today that a Ketchikan resident was sentenced in Juneau to federal prison for drug conspiracy.
Travis E. Straight, 38, was sentenced today by U.S. District Court Judge Timothy M. Burgess to 36 months in prison for his role in a drug trafficking conspiracy.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the DEA, Port of Seattle Police Department and the Ketchikan Police Department involving the importation of heroin into Ketchikan, Alaska, using commercial package delivery services. In May 2012, Straight arranged with co-conspirators in Washington to use a commercial package delivery service to send 405 grams of heroin to Ketchikan, Alaska, for subsequent distribution. Straight paid for the drugs using drug proceeds and admitted the heroin was intended to be sold to others.
Since May 2012, Straight has been incarcerated on related state drug charges to which he also pled guilty. In the State case, Straight received a sentence of three years in prison with one year suspended.Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense, the importance of deterrence regarding the defendant and others, the need for protection of the public, and rehabilitation of the defendant in light of his criminal history, as reasons that supported the imposition of the above sentence.
Ms. Loeffler commended the Drug Enforcement Administration, Port of Seattle Police Department, and the Ketchikan Police Department for the investigation leading to the successful prosecution of Travis E. Straight.Justice Department Secures Nearly $2 Billion in Consumer Protection Cases in 2012Read the Press Release
The Justice Department’s Consumer Protection Branch secured nearly $2 billion in criminal fines, forfeiture, restitution, and civil disgorgement in 2012, Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division, announced today at the Consumer Protection Working Group’s Second Annual Consumer Protection Summit. Since 2009, the consumer protection efforts of the Civil Division, working with U.S. Attorneys’ Offices around the country, have led to recoveries of more than $5.89 billion, over 140 criminal convictions, and total prison sentences exceeding 327 years.
“This summit and our other outreach efforts are essential to the fight against consumer fraud. But our real strength lies in the cases brought by the attorneys in the Consumer Protection Branch every day. The results the branch achieved in 2012 are outstanding, and reflect the determination of this Department of Justice to combatting consumer fraud,” said Principal Deputy Assistant Attorney General Delery, who serves as a co-chair of the Consumer Protection Working Group of the President’s Financial Fraud Enforcement Task Force. “The Consumer Protection Branch’s extraordinary work enforcing federal consumer protection laws has reached new levels, and is evidence that the department has made protecting consumers a top priority.”
The summit brings together over two dozen state and federal agencies to highlight some of the most significant issues facing consumers today: consumer debt, nutritional supplements, money and imposter scams and tax-related fraud. The summit exposes some of the most egregious fraud schemes, provides information on how consumers can protect themselves, and shares what the Consumer Protection Working Group is doing to combat fraud in these areas.
Recently reorganized, the Consumer Protection Branch deploys powerful enforcement tools in creative ways to protect the most vulnerable consumers from myriad forms of fraud and abuse, including financial fraud, new forms of telemarketing fraud, and immigration services fraud.
In 2012, for example, the branch prosecuted three Missouri individuals for their roles in a scheme to defraud consumers seeking immigration-related services. These individuals worked for a company that defrauded legal immigrants who were trying to abide by the rules. The firm falsely told consumers that it employed paralegals who would help customers correctly fill out immigration forms, that it handled excess call volume for U.S. Citizenship and Immigration Services (USCIS), and that fees paid to the firm included government processing fees. All three defendants in the case pled guilty to conspiring to defraud consumers.
Collaborating closely with state Attorneys General and other federal agencies, t he Consumer Protection Branch has been instrumental in the department’s effort to hold accountable those who, in violating the law, contributed toward the 2008 financial crisis. Earlier this year, the department filed a civil lawsuit against the credit rating agency Standard & Poor’s alleging that S&P engaged in a scheme to defraud investors in structured financial products known as Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). The lawsuit, brought under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), alleges that investors, many of them federally insured financial institutions, lost billions of dollars on CDOs for which S&P issued inflated ratings that misrepresented the securities’ true credit risks. The complaint also alleges that S&P falsely represented that its ratings were objective, independent, and uninfluenced by S&P’s relationships with investment banks when, in reality, S&P’s desire for increased revenue and market share led it to favor the interests of these banks over investors. The Consumer Protection Branch played a key role in investigating and bringing the case, along with the Federal Programs Branch of the Civil Division and the U.S. Attorney’s Office for the Central District of California.
The Consumer Protection Branch has also responded to the financial crisis by aggressively pursuing various forms of financial fraud, including foreclosure rescue schemes targeting distressed homeowners. For instance, in 2012, the branch successfully prosecuted four individuals in connection with a firm that claimed to assist homeowners at risk of foreclosure. The defendants represented that homeowners’ properties would be sold to investors, but that the present homeowners could stay in their homes. The defendants designed sham sales to straw purchasers, created false loan applications and documents, pocketed the equity drawn out of the sham sales, and then allowed the loans to go into foreclosure. Victims lost their equity, and most were forced to move out of their homes. The defendants were sentenced to prison for terms of up to five and a half years.
In addition to playing a prominent role in the Consumer Protection Working Group, and organizing the annual Consumer Protection Summit the Consumer Protection Branch has employed new techniques to enhance its outreach and prevention efforts. For instance, the Branch has conducted webinars to educate financial institutions on the dangers of working with payment processors who may facilitate fraudulent schemes. It has also engaged consumer advocacy groups in new ways, and sought to create new partnerships with state attorneys general and military legal assistance providers.
While continuing to innovate, the branch has also sharpened its focus in traditional areas of enforcement, such as ensuring the safety of pharmaceutical products, medical devices, food, and dietary supplements. Health care fraud cases were the sources of the Consumer Protection Branch’s largest recoveries in 2012. The branch brought enforcement actions and criminal prosecutions in response to a number of violations, including the misbranding of pharmaceuticals, deficient manufacturing processes, the sale of adulterated and unsafe products, and the resale of prescription drugs that had been diverted from lawful channels of distribution. The branch recovered more than $1.9 billion in criminal fines and forfeiture and secured 16 criminal convictions in connection with these cases.
“Whether consumers are targeted by scammers looking to cheat them or manufacturers of food or pharmaceuticals that put profit ahead of consumer safety, the department will bring to bear its expertise and all available tools to root out conduct that harms consumers,” said Principal Deputy Assistant Attorney General Delery. “The success of the Consumer Protection Branch demonstrates our unwavering commitment to the protecting the health and safety of Americans.”
Another key component of the Consumer Protection Branch’s work is defense of the decisions of government agencies charged with protecting consumers. In 2012, the branch successfully defended cases involving, for example, the Food and Drug Administration’s (FDA) approval of various generic drugs to increase consumers’ market choices and the Federal Trade Commission’s (FTC) interpretation of a provision of the Fair Credit Reporting Act (FCRA) that requires lenders to disclose certain information to consumers. The branch was also instrumental in securing court orders requiring major tobacco companies to place statements on their websites, on cigarette packages, and at retail stores correcting past false statements that they had been making about the safety of their products.
Principal Deputy Assistant Attorney General Delery expressed his gratitude and appreciation for the dedicated public servants who work tirelessly to protect consumers. These individuals include attorneys, investigators, paralegals and other personnel throughout the Civil Division, the U.S. Attorneys’ Offices, the Department of Health and Human Services, the FDA, the FTC, the Consumer Product Safety Commission, the Postal Inspection Service and other federal and state agencies.
Related Materials:
Principal Deputy Assistant Attorney General Stuart F. Delery Speaks at the Second Annual Consumer Protection Summit
Jury Finds Tolutau Guilty of Walmart Robbery; Brandishing Firearm During A Violent CrimeRead the Press Release
SALT LAKE CITY – A jury convicted Tevita Tolutau, age 23, of Salt Lake City, of robbery and brandishing a firearm during a crime of violence Thursday afternoon following a four-day trial in U.S. District Court in Salt Lake City. Tolutau was charged in connection with a Sept. 25, 2008, robbery of a Riverton Walmart store.
According to documents filed in court, just after midnight on Sept. 25, 2008, two employees were gathering money from cash registers at the store to take to the office for nightly accounting. The two employees were confronted just outside the office by two men wearing hoodies. One of the men demanded the women give them their cell phones and a radio communication device. The store employees complied with the demand.
The two employees entered the outer office with the two assailants following directly behind. The assailants then began ordering the employees to open the door to the inner cash office. Not having a key to the inner office, one of the employees knocked on the door. Inside the office, another Walmart employee could see the robbery in progress through a surveillance camera and refused to open the door. The assailants eventually fled the store.
Eric Kamahele and Mataika Tuai, two members of the Tongan Crip Gang, were previously convicted of this offense and other violent crimes in furtherance of a RICO conspiracy during a fall 2011 trial in federal court. Kamahele is serving 384 months in federal prison and Tuai is serving an 84-month sentence.
Evidence at this week’s trial proved that Tolutau was the getaway driver for Kamahele and Tuai. He also provided the firearm used in the robbery and disposed of the firearm after the robbery.
The potential maximum penalty for the robbery conviction is 20 years. Brandishing a firearm during the commission of a violent crime carries a statutory maximum penalty of life in prison with a mandatory minimum sentence of seven years. The penalty for the firearm conviction must be imposed consecutively to whatever sentence is imposed for the robbery. Sentencing in the case is set for May 16, 2013, at 3:30 p.m. in U.S. District Judge Clark Waddoups’ courtroom.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of the FBI, members of the FBI’s Safe Streets Task Force, and the Unified Police Department.
Joplin Man Pleads Guilty to Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Leslie Lynn Williams, 53, of Joplin, pleaded guilty before U.S. District Richard E. Dorr to the charges contained in a Dec. 13, 2012 federal indictment.
Williams admitted that he filed for disaster relief on May 27, 2011. Williams listed a Joplin address as his primary residence and claimed that it had been damaged by the tornado. FEMA authorized a $1,196 payment to Williams. Williams admitted today, however, that he was not living at that address at the time of the tornado, but had moved out in February 2011.
Under federal statutes, Williams is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI, Department of Homeland Security-Office of Inspector General, and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Indictment Names Former and Current Police Officers in Charges Related to Loan-SharkingRead the Press Release
PHILADELPHIA - One former and one active Philadelphia police officer were charged by indictment, unsealed today, with extortion in an alleged loan-sharking scheme. According to the indictment, Gary Cottrell, 46, a former 14th district police officer, made high interest loans to others, including Cheryl L. Stephens, 46, an active 18th district police officer. Cottrell, who was arrested this morning, is charged with four counts of making an extortionate extension of credit, four counts of collecting an extension of credit by extortionate means, and eight counts of obstruction; Stephens is charged with two counts of making false statements to the grand jury. The charges were announced today by United States Attorney Zane David Memeger and FBI Acting Special Agent-in-Charge John Brosnan.
The indictment alleges that during the time he worked as a police officer and for a time after he left the Philadelphia Police Department, Cottrell operated a business in which he extended credit to borrowers, typically in amounts ranging from several hundred dollars to several thousand dollars. He allegedly required each borrower to repay the amount of money he loaned to them plus interest. The interest generally was in an amount equal to $25 for every $100 borrowed and generally had to be repaid in four weeks. The interest rate on these loans was substantially greater than the legally enforceable rate of 25% per annum. The indictment further alleges that some of the individuals borrowing money from Cottrell understood that he would use force, if necessary, to collect the money he loaned them plus the interest, and Cottrell did use force and the threat of force to collect money from borrowers. At times Cottrell allegedly sent threats of force to the borrowers via text messages.
It is further alleged Stephens falsely testified that Cottrell did not charge interest on her loan from him, and did not tell her to deny paying interest when talking to law enforcement officers.
If convicted, Cottrell faces a maximum statutory sentence of 320 years in prison, three years of supervised release, a $4 million fine, and a $1,600 special assessment. Stephens faces a maximum statutory sentence of 10 years in prison, three years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation/Philadelphia Police Department Public Corruption Task Force and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Anthony J. Wzorek and Special Assistant United States Attorney Vicki J. Markovitz.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Howard Skaw Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on March 8, 2013, before U.S. District Judge Dana L. Christensen, HOWARD SKAW, a resident of Hamilton, appeared for sentencing. SKAW was sentenced to a term of:
Probation: 3 years
Special Assessment: $50
Restitution: $2,000
Fine: $18,000
Community Service: 200 hours
SKAW was sentenced in connection with his guilty plea to aiding and abetting the theft of public funds.
In an Offer of Proof filed by Assistant U.S. Attorney Leif M. Johnson, the government stated it would have proved at trial the following:
Between 1995 and 2009, Layne Housel received disability payments for himself and his minor children related to degenerative disc disease that prevented him from working. Pursuant to the terms of his continued eligibility to receive disability payments, Housel had to periodically update his status and report whether his condition had changed.
Beginning in 1997, Housel declared employment as a part-time butcher in Hamilton. He reported only $180 in wages per month, which, at that time, was the minimum amount that could be reported without triggering a reassessment of his disability status by the Social Security Administration (SSA). He would later report $200, and then $220 per month as the SSA threshold amounts indicating "substantial gainful activity" increased.
Eventually, SSA officials became aware that Housel was working more than he was reporting. SSA asked Housel to update his work status. Housel reported no new information and reiterated his previous statements about working 2 hours a day for about $200 per month. The SSA also contacted his employer, SKAW, who was also the owner of the business. SKAW submitted a report indicating the same thing that Housel had stated - that Housel worked only a couple hours a day for a couple hundred dollars a month. In an interview in 2009 with SSA, Housel stuck to the story that he only worked 2 hours a day for about $200 per month.
A search was conducted at the business. Records there indicated that Housel was working far more than he reported to the SSA and that SKAW was paying him cash "under the table" for any amounts above the SSA minimum threshold to qualify for disability payments.
Several former employees at the business confirmed that Housel worked far more than the limited amount reported to SSA.
The cash payments dwarfed the payroll checks. For instance, in November of 2007, Housel was paid nearly $5,000, while he reported only $200.
In a second interview, SKAW admitted that he had lied on Housel's behalf and had mis-stated Housel's true work hours and earnings in an effort to help Housel make ends meet.
Housel pled guilty to federal charges and has been sentenced.
The investigation was conducted by the Social Security Administration - Office of Inspector General.