Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
16 April 2013
Anchorage Drug Dealer sentenced in Federal CourtRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for his conviction of possession of controlled substances with intent to distribute.
Tristan Jamal Grant, 27, was sentenced today by U.S. District Court Judge Sharon L. Gleason to 47 months’ prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the defendant at trial, in November 2011, Grant possessed a total of 1.7 grams of crack cocaine, packaged in thirteen individual bindles. Law enforcement discovered the crack cocaine while executing an arrest warrant for Grant stemming from two unrelated cases charged by the State of Alaska. At the time of Grant’s arrest, he also possessed over one thousand dollars in cash and a type of digital scale commonly used to weigh illegal controlled substances. When the U.S. Marshals Service Fugitive Task Force found Grant, he was driving a white Cadillac, which was registered to Grant and another individual. Members of the Task Force observed a Heckler and Koch .40 caliber handgun partially exposed underneath the driver’s seat where Grant had been sitting. The firearm was loaded with ten rounds of ammunition. In November 2012, a jury convicted Grant of possessing the crack cocaine with intent to distribute.
At sentencing, Judge Gleason found that Grant was likely aware of the presence of the firearm, which resulted in a sentencing enhancement. Judge Gleason also found a sentencing enhancement for obstructing justice, as Grant attempted to influence a witness prior to trial and presented perjured testimony while under oath. Grant has other felony convictions for robbery, misconduct involving a controlled substance and assault in the third degree for causing fear of injury with a weapon.
Prior to imposing sentence, Judge Gleason noted a need to deter the defendant from further criminal conduct, as well as a need to protect the public from drug trafficking.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases. Assistant U.S. Attorneys’ Stephanie Carowan Courter and Kimberly Sayers-Fay participated in the sentencing phase of this case.
Amgen to Pay U.S. $24.9 Million to Resolve <br /> False Claims Act AllegationsRead the Press Release
Amgen Inc., a California-based biotechnology company, has agreed to pay the United States $24.9 million to settle allegations that it violated the False Claims Act, the Justice Department announced today. Amgen develops, manufactures, and sells pharmaceutical products, including products sold under the trade name Aranesp.
The settlement resolves allegations that Amgen paid kickbacks to long-term care pharmacy providers Omnicare Inc., PharMerica Corporation and Kindred Healthcare Inc. in return for implementing “therapeutic interchange” programs that were designed to switch Medicare and Medicaid beneficiaries from a competitor drug to Aranesp. The government alleged that the kickbacks took the form of performance-based rebates that were tied to market-share or volume thresholds. The government further alleged that, as part of the therapeutic interchange program, Amgen distributed materials to consultant pharmacists and nursing home staff encouraging the use of Aranesp for patients who did not have anemia associated with chronic renal failure.
“We will continue to pursue pharmaceutical companies that pay kickbacks to long-term care pharmacy providers to influence drug prescribing decisions,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Patients in skilled nursing facilities deserve care that is free of improper financial influences.”
“By this agreement we are making important strides in holding drug manufacturers accountable for fraudulent and abusive practices not only in South Carolina but nationwide,” said William Nettles, U.S. Attorney for the District of South Carolina. “I am proud of the tireless work of this office to investigate this case across the country.”
This civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil actions on behalf of the United States and share in any recovery. The False Claims Act suit was filed in the U.S. District Court for the District of South Carolina, and is captioned United States ex rel. Kurnik v. Amgen Inc., et al.
Acting Assistant Attorney General Delery noted that the settlement with Amgen, Inc. was the result of a coordinated effort among the Civil Division, the U.S. Attorney’s Office for the District of South Carolina, and the U.S. Department of Health and Human Services, Office of Inspector General.
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 more than $10.3 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 $14.2 billion.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Related Materials:
Amgen Settlement Agreement
Albuquerque Man Pleads Guilty to Four Commercial Robberies and Unlawful Possession of A FirearmRead the Press Release
Plea Agreement Requires Fifteen Year Prison SentenceALBUQUERQUE – Alfonso Lezine, 40, of Albuquerque, N.M., pled guilty this morning to robbing four Albuquerque-area businesses and being a felon in possession of a firearm under a plea agreement with the U.S. Attorney’s Office. Under the terms of his plea agreement, Lezine will be sentenced to 15 years in prison followed by three years of supervised release.
Lezine was arrested on Aug. 21, 2012, on a six-count indictment charging him with four counts of violating the Hobbs Act by robbing businesses engaged in interstate commerce; one count of using a firearm during a crime of violence; and one count of being a felon in possession of a firearm. The indictment alleged that Lezine committed four commercial robberies in Albuquerque between Oct. 2011 and March 2012.
During this morning’s proceedings, Lezine plead guilty to Counts 1, 3, 4 and 5 of the indictment, each of which charged him with a Hobbs Act robbery, and Count 6, which charged him with unlawful possession of a firearm. In entering his guilty plea, Lezine admitted robbing the following Albuquerque businesses: (1) the Family Dollar, located at 2001 2nd Street NW, on Oct. 15, 2011; (2) the same Family Dollar on March 6, 2012; (3) the Allied Cash Advance, located at 3821 Menaul NE, on March 20, 2012; and (4) the Family Dollar, located at 9550 Sage Road SW, on March 14, 2012. Lezine also admitted that he unlawfully possessed a firearm on March 20, 2012. According to court records, Lezine was prohibited from possessing firearms and ammunition because he previously had been convicted of residential burglary and a Hobbs Act robbery and using a firearm in relation to a crime of violence in California.
Lezine was arrested on state charges on March 20, 2012, and remained in state custody until he was transferred to federal custody in connection with this case. Lezine will remain in federal custody pending his sentencing hearing, which has yet to be set.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. The new initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the District Attorney’s Office for the Second Judicial District of the State of New Mexico, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
15 April 2013
Upcoming Jacksonville Fraud Summit to Arm Consumers with Information to Protect Themselves Against Fraud SchemesRead the Press Release
Federal Agencies Host Conference Open to the Public
Jacksonville, FL - United States Attorney Robert E. O'Neill announces that his office, in conjunction with the Federal Bureau of Investigation, and the Florida Department of Law Enforcement will host a fraud conference for the general public on Wednesday, April 24, 2013 (8:30 a.m. to 1:30 p.m.). The conference will be held at the Florida Department of Law Enforcement Jacksonville Regional Operation Center located at 921 North Davis Street (Building E ) in Jacksonville. Admission is free.
Investor fraud, identity theft, cyber intrusion, and financial exploitation of the elderly are serious national problems. Our country's recent financial crisis has resulted in an unprecedented rise in investment fraud schemes, tax fraud, and other financial crimes, involving thousands of victims and staggering losses. The United States Attorney's Office and its federal, state, and local law enforcement partners are hosting this conference to educate the public about the fraudulent schemes that are being perpetrated in our region and to provide information on resources and strategies to protect citizens from becoming a victim of these types of crime.
Members of the public are invited to attend this conference. Admission is free and educational materials will be provided, but space is limited. To RSVP for the conference, please call (904) 301-6341 or send an e-mail to [email protected].
This conference is part of the ongoing efforts of the Financial Fraud Enforcement Task Force which was created by President Obama in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. For more information on the task force, visit www.stopfraud.gov.
(Download Conference Flyer )
United States Settles with SugarHouse Casino over Environmental ViolationsRead the Press Release
PHILADELPHIA - SugarHouse HSP Gaming, LP, has agreed to pay the United States $650,000 to resolve claims that it performed unauthorized work at the SugarHouse casino and entertainment complex along the Delaware River in Philadelphia, in violation of the Clean Water Act and the Rivers and Harbors Act. The resolution was announced by United States Attorney Zane David Memeger.
The Clean Water Act requires SugarHouse to obtain a United States Army Corps of Engineers (“Army Corps”) permit before discharging dredged and/or fill material into waters of the United States. The Rivers and Harbors Act requires SugarHouse to obtain an Army Corps permit for all work in or affecting navigable waters of the United States.
As a result of an investigation by the Army Corps, the United States asserts that from 2009 to 2010, SugarHouse, and or persons acting on its behalf, conducted work and discharged dredged and/or fill material into waters of the United States, at the SugarHouse site, without an Army Corps permit, in violation of the Clean Water Act and the Rivers and Harbors Act. Specifically, despite three cease and desist letters by the Army Corps, SugarHouse performed unauthorized work on several occasions at areas immediately surrounding the casino that included along Piers 42 and 43. The settlement agreement attaches an aerial photo showing the location of each alleged violation, and contains more information regarding when each violation occurred, and when subsequent remedial measures were taken. The unauthorized work remaining at the final location is permitted pursuant to the terms of the settlement agreement.
“This case reinforces our commitment to protecting the environment by ensuring that corporations either follow environmental laws or face serious sanctions,” Memeger said.
To ensure that the environment receives the maximum benefit from this resolution, the settlement requires SugarHouse to pay the majority of the money, $625,000, to the Brandywine Conservancy, which is an Army Corps-approved non-profit conservation organization with demonstrated experience in land and water conservation. The Army Corps will ensure that the $625,000 will be used towards protecting waters and wetlands in the five county area. The remaining $25,000 payment will be made to the United States as a civil penalty in accordance with the Clean Water Act and the Rivers and Harbors Act.
This case was handled by Assistant United States Attorney Stacey L. B. Smith. United States Army Corps of Engineers agency counsel, Barry Gale, and surveillance and enforcement biologists, Jeffrey Steen and Kevin Maley, conducted site visits, and shared technical and legal expertise.
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, 215-861-8525Two New Jersey Men Sentenced to Decades in Prison for Conspiring to Kill Overseas with Designated Foreign Terrorist Organization Al ShabaabRead the Press Release
NEWARK, N.J. – Two New Jersey men convicted for conspiring to travel to Somalia to join a terrorist group and murder individuals whose beliefs and practices did not align with their extremist ideology were sentenced today to 22 and 20 years in prison, respectively, New Jersey U.S. Attorney Paul J. Fishman announced.
Mohamed Hamoud Alessa, 23, of North Bergen, who was sentenced to 264 months in prison, and Carlos Eduardo Almonte, a/k/a “Omar,” 27, of Elmwood Park, who was sentenced to 240 months in prison, previously pleaded guilty to one count of conspiring to murder persons outside the United States on behalf of designated Foreign Terrorist Organization Al Shabaab. The defendants entered their guilty pleas before U.S. District Judge Dickinson R. Debevoise, who also imposed the sentences today in Newark federal court.
On June 5, 2010, Alessa and Almonte were taken into custody by pre-staged arrest teams as they attempted to board separate international flights at JFK International Airport. They have been held in continuous custody since their arrests by order of U.S. Magistrate Judge Madeline Cox Arleo.
“Alessa and Almonte wanted to join terrorists who shared their violent, extremist ideology so they could murder those who did not,” said U.S. Attorney Fishman. “We need not speculate about their intentions: their own words confirm the deadly mission for which they trained, planned and attempted to embark. Their decades-long sentences are both a just punishment for their admitted actions and a warning to others who would be tempted down this dead-end path.”
According to documents filed in this case and statements made in court:
Alessa and Almonte admitted that they planned to travel outside the United States to join Al Shabaab, an international terrorist group based in Somalia, knowing the group was engaged in carrying out violent attacks against individuals in that country – including members of the Transitional Federal Government of Somalia and African Union soldiers. As part of this campaign, Al Shabaab has conducted military assaults, bombings and other violent acts, and has attempted through its media operations to recruit foreigners – including Americans and other westerners – to join its ranks.
In October 2006, the FBI received a tip concerning the defendants’ activities. As the investigation continued, an NYPD Intelligence Division undercover officer recorded numerous meetings and conversations with them, during which the defendants discussed and prepared to carry out their plan.
The defendants admitted that those preparations included: saving and pooling thousands of dollars; physically conditioning themselves by, among other things, lifting weights and running; engaging in combat simulations using paintball guns, computer software and other items; acquiring tactical clothing, hydration systems and other equipment; and purchasing airline tickets to Egypt with the intent to then travel to Somalia. They also admitted that as part of their plan, Alessa and Almonte had traveled to Jordan in February 2007 and while there, inquired about opportunities to meet with groups committed to establishing Islamic law through violence.
Additionally, Alessa and Almonte admitted that they acquired, viewed and displayed for others audio, video and written materials – produced by and relating to Al Qaeda, Al Shabaab and other extremist groups – which advocated, depicted and/or sought to justify the killing of individuals who opposed them, including civilians.
In addition to the prison terms, Judge Debevoise sentenced Alessa and Almonte to lifetime terms of supervised release.
U.S. Attorney Fishman praised the outstanding work of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Newark Joint Terrorism Task Force (JTTF); the New York City Police Department, under the direction of Commissioner Raymond W. Kelly; and the State of New Jersey Office of Homeland Security and Preparedness, under Director Edward Dickson, in conducting the investigation leading to today’s sentences. The JTTF is made up of agents and officers of the U.S. Department of Homeland Security’s Immigration and Customs Enforcement, Homeland Security Investigations; the U.S. Department of Homeland Security’s Customs and Border Protection; the U.S. Department of State; the New Jersey State Police; the Jersey City Police Department; the Bayonne Police Department; the Port Authority of New York and New Jersey Police Department; and other law enforcement agencies.
The government is represented by Chief Andrew Kogan and Assistant U.S. Attorney L. Judson Welle of the U.S. Attorney’s Office National Security Unit, and Alamdar S. Hamdani, Deputy Chief, Counterterrorism Section of the Justice Department’s National Security Division.
13-168
Defense counsel: Alessa: Stanley L. Cohen Esq., New York
Almonte: James Patton Esq., Livingston, N.J.Third Active Shooter Training to be Offered this FridayRead the Press Release
BUFFALO. N.Y. – In the wake of the shooting tragedies in Webster, New York and Newtown, Connecticut, U.S. Attorney William J. Hochul, Jr. announced today that the United States Attorney’s Office is sponsoring the third training session dedicated to preventing mass shootings and violence. The focus of the training is protecting and preventing mass shooting episodes in businesses and similar commercial settings, and will be valuable for employers, employees, and members of law enforcement.
"Active Shooter: Educate Yourself to Protect Yourself" will be held this Friday, April 19, 2013 from 8:00 a.m. to 1:00 p.m. at Hilbert College. Participants will learn how to spot aggression in the workplace, appropriate response techniques to shooting episodes, what to do before police arrive, and tips on creating an emergency plan for business.
The training is free and open to all businesses, large and small, in the 17 counties of the Western District of New York.
"Our Office is committed to prosecuting those who commit violence in our community, but this response is after-the-fact," said U.S. Attorney Hochul. “It is even more important that the public learn from experts in the field exactly how to protect staff and facilities in the first place. Our first two trainings focused on officer response and safety in the school systems. This third training – focusing on the work place- is an important piece in our overall strategy of making Western New York one of the safest communities in the country."
U.S. Attorney Hochul noted that more than 1,600 people attended the first two training sessions, "Street Survival and Officer Safety" and "Understanding Human Aggression and Violence, and Making Our Schools Safe," held in February and March, respectively. Hochul predicted that the third training will also be well attended, given that it will be conducted by professionals with a long history of work in the field. Speakers include James H. Robertson, Delaware North Companies Director of Corporate Securities and former Special Agent in Charge of the Buffalo FBI Office, George W. Gast, Niagara Frontier Transit Authority Chief of Police and also a former member of the FBI, including the FBI’s Hostage Rescue Team, and Gary M. Everett, Canisius College Director of Public Safety.
U.S. Attorney Hochul said that "There is no single solution to preventing all violent crime. Certainty denial - or mere hope - is not a strategy for preventing violence. By working collaboratively, we all can be prepared to prevent and respond to the next episode should it ever occur."
Friday's event is sponsored by the U.S. Attorney's Office, Western District of New York; the Better Business Bureau of Upstate New York; the Niagara Frontier Transit Authority Police; Delaware North Companies; Medaille College; Hilbert College; Canisius College Public Safety; Erie County Law Enforcement Foundation; ASIS International; and Greater Buffalo Metropolitan Crime Stoppers.
Tax Preparer Charged with Aggravated Identity Theft and Million Dollar Tax FraudRead the Press Release
Cynthia Lozano, a tax preparer from Lemon Grove, was arrested today and an indictment was unsealed in connection with a scheme to steal Social Security numbers, file false tax returns, and defraud the Internal Revenue Service ("IRS"). She was taken into custody by IRS agents in Phoenix, Arizona, where she will make her first appearance in U.S. District Court tomorrow.
According to a federal grand jury indictment, Lozano owned and operated the tax preparation business, "CLozano Income Tax," in Spring Valley, California. From 2010 to the present, Lozano used her business to submit fraudulent federal income tax returns seeking bogus refunds. In carrying out this scheme, Lozano made false statements which caused the IRS to issue refunds under the EIC provisions. An EIC is a refundable federal income tax credit for low- to moderate-income working individuals and families that is intended to offset the burden of social security taxes and to provide an incentive to work. If a taxpayer's EIC exceeds the amount of taxes actually owed, it results in the IRS paying a refund to the taxpayers who claim and qualify for the credit.
As reflected in charging documents, Lozano targeted over 200 victims by filing fraudulent IRS Forms 1040 in the taxpayers' names. Frequently, the taxpayers were unaware that Lozano used their Social Security numbers thus also becoming victims of aggravated identity theft. As a result, Lozano improperly received over $1 million from the IRS in fraudulent refunds which she laundered through a bewildering maze of bank accounts.
Using the proceeds of this fraud, Lozano, among other things, purchased 20 properties in and near Phoenix, Arizona. Her indictment seeks forfeiture of these properties to recompense the government from the loss of her fraud and to prevent Lozano from reaping a financial benefit from her crimes.
United States Attorney Laura Duffy said, "In these times of financial hardship, tax fraud is essentially a theft from each and every citizen who shoulders their rightful share of the tax burden." She added that the U.S. Attorney's Office is committed to stopping the recent increase in theft of personal identification information and its use in a variety of criminal offenses."
N. Dawn Mertz, Special Agent in Charge for IRS Criminal Investigation, said, “The IRS takes particular interest in cases where someone, for their own personal benefit, steals the identity of others to file false tax returns with the IRS. Taxpayers deserve our unwavering vigilance in the investigation and prosecution of allegations of identity theft and tax fraud by unscrupulous tax professionals who victimize others.”
DEFENDANT Case Number: 13cr1354AJB Cynthia Lozano SUMMARY OF CHARGESCounts 1-13 Title 18, United States Code, Section 287 (false claims) Maximum penalty: 5 years of custody; $250,000 Fine
Counts 14-25 Title 18, United States Code, Section 1343 (wire fraud) Maximum penalty: 20 years of custody; $250,000 Fine
Count 26 Title 18, United States Code, Section 1341 (mail fraud) Maximum penalty: 20 years of custody; $250,000 Fine
Counts 27-33 Title 18, United States Code, Section 1028A (aggravated identity theft) Minimum penalty: 2 years of custody, consecutive to sentence for other crimes; No Probation; Fine same as for underlying offense
AGENCIESInternal Revenue Service - Criminal Investigations ("IRS-CI")
Department of Treasury, Inspector General for Tax Administration ("TIGTA")An indictment itself is not evidence that the defendants committed the crimes charged.
The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.Tamaroa Man Sentenced for Bankruptcy FraudRead the Press Release
David E. Woodside, 37, of Tamaroa, Illinois, was sentenced Friday, April 12, 2013, in United States District Court in Benton to a term of 3 years’ probation for fraudulently concealing assets from the United States Trustee and the chapter 7 trustee during the pendency of his 2009 bankruptcy case in the United States Bankruptcy Court, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Woodside waived indictment by a Grand Jury and pled guilty to an information charging him with that offense on December 7, 2012.
“This is another example of how I will not tolerate fraud and cheating in our court processes.” said United States Attorney Wigginton. “My goal is to keep our processes fair for all Southern Illinoisans.”
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Southern Illinois, Central Illinois, and Indiana (Region 10). “I am gratified by the actions taken by United States Attorney Wigginton and our law enforcement partners to prosecute those who engage in fraudulent conduct.”
Evidence introduced in support of the guilty plea and sentence showed that in 2009 Woodside filed a bankruptcy petition in which he sought to discharge $49,446.00 in debts he owed to various creditors. Under bankruptcy law, Woodside was required to list all of his assets, including any interest he might have in any lawsuit from which he might receive a settlement or award of damages. Woodside repeatedly failed to disclose on his petition or to the Chapter 7 Trustee that he expected to receive a settlement of $10,667.18 from a class action lawsuit related to a 2003 train derailment near his residence in Tamaroa. The Chapter 7 Trustee, however, independently discovered the existence of the settlement and was able to seize the funds and distribute them to Woodside’s creditors.
In addition to the 3 year term of probation, Woodside was ordered to pay to the United States fines and special assessments totaling $600 and to perform 30 hours of community service.
The case was investigated by the Federal Bureau of Investigation with the assistance of the United States Trustee for Region 10 and the Peoria Office of the United States Trustee. Region 10 of the U.S. Trustee Program is headquartered in Indianapolis, Indiana, with additional offices in Peoria, IL and South Bend, IN. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
San Diego College Pays $700,000 and Former Financial Aid Director Pleads Guilty to Resolve Allegations of Financial Aid FraudRead the Press Release
United States Attorney Laura E. Duffy announced today that United States University, a for-profit college located in San Diego, has agreed to pay a civil settlement in the amount of $686,720 and that the school’s former Financial Aid Director has pled guilty, resolving allegations that between December 2008 and February 2011, the school submitted falsified financial aid applications to the U.S. Department of Education in order to obtain Pell Grant funds for which students were not eligible.
The civil settlement was paid by Educacion Significativa, LLC, and IAC Funding, LLC, doing business as United States University. The school, which has campuses in Chula Vista and Cypress, California, was known as InterAmerican University from 1997 to 2010, when it changed its name to United States University. United States University offers courses of study in nursing and other programs.
The school’s former Financial Aid Director, Christina Miller, pled guilty in federal court (Case Number 13cr1157MMA) to criminal financial aid fraud, in violation of Title 20, United States Code, Section 1097(b), admitting that she knowingly and willfully falsified student financial aid applications, resulting in the improper awarding of federal Pell Grants to ineligible students. Under federal law, students already holding Bachelor’s degrees are generally not eligible for Pell Grant funds, but Miller admitted changing student degree status in order to allow the school to improperly receive Pell Grant funds from the U.S. Department of Education. Miller is scheduled to be sentenced on June 27, 2013.
“We all benefit from successful students’ economic and professional contributions to our country,” said United States Attorney Duffy. “Financial aid fraud not only harms the American taxpayer, but robs our community of that investment. This resolution should send a strong message to those who would choose to fraudulently obtain monies from taxpayer-funded financial aid programs. We will continue to work closely with our investigative partners in taking both criminal and civil measures to combat fraud against government programs.”
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. As the law enforcement arm of the U.S. Department of Education, the Office of Inspector General is committed to fighting student aid fraud and we will continue to aggressively pursue those that participate in these types of crimes,” said Natalie Forbort, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Western Regional Office.
FBI Special Agent in Charge, Daphne Hearn stated, “Fraud and abuse of educational taxpayer-funded programs deprives those who are eligible and most deserving of this financial aid. The FBI and our partners will pursue those who would seek to undermine these programs, so that this important block of financial aid is available for those who need it most.”
The investigation arises from a lawsuit that was brought under the qui tam, or whistleblower, provisions of the federal False Claims Act, which permit private citizens with knowledge of fraud against the government to bring an action on behalf of the United States. As provided by the False Claims Act, the whistleblower in this case, Veronica Glaser, a former student and employee at the school, will receive a share of the recovery.
The investigation and prosecution of this matter was the result of the collaborative effort of the United States Attorney’s Office for the Southern District of California; the Department of Education, Office of Inspector General; and the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher Tenorio is handling the criminal prosecution of Christina Miller. Assistant U.S. Attorneys Joseph Price and Douglas Keehn handled the civil False Claims Act matter brought against United States University.
DEFENDANT Criminal Case Number: 13CR1157-MMA Christina Miller SUMMARY OF CHARGESFinancial Aid Fraud-Title 20, United States Code, Section 1097(b)
INVESTIGATING AGENCIESDepartment of Education, Office of Inspector General
Federal Bureau of InvestigationRochdale Securities Trader Admits to Fraudulent Scheme Involving Nearly $1 Billion Purchase of Apple StockRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that DAVID MILLER, 40, of Rockville Centre, N.Y., waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to conspiracy and fraud offenses related to his role in a fraudulent scheme to make large purchases of stock in Apple Inc. as an institutional sales trader for Rochdale Securities LLC of Stamford.
“This defendant participated in a fraudulent scheme in which he would either reap huge profits through the unauthorized purchase of approximately $1 billion of Apple stock or, if he faced huge losses, explain it away as simple human error,” stated U.S. Attorney Fein. “This scheme caused catastrophic losses for his former employer and was unraveled promptly by the FBI. The U.S. Attorney’s Office and our many partners on the Connecticut Securities, Commodities and Investor Fraud Task Force are committed to protecting investors and the integrity of American capital markets. This investigation is ongoing.”
“Risk is inherent in the investment world, but that risk should never be borne from the actions of investment professionals who choose to serve their own financial agendas rather than those of their clients,” stated FBI Special Agent in Charge Mertz. “As this guilty plea demonstrates, the FBI and its partners on the Connecticut Securities, Commodities and Investor Fraud Task Force will act swiftly to investigate and bring to justice those who violate securities laws.”
According to court documents and statements made in court, MILLER, while working as an institutional sales trader at Rochdale Securities LLC (“Rochdale”) in Stamford, conspired with another individual to execute a trade to buy 1,625,000 shares of stock in Apple Inc. (“Apple”) on behalf of a Rochdale customer whose account Miller handled. As part of the scheme, MILLER and his co-conspirator had agreed that the co-conspirator would submit an order for Apple stock on October 25, 2012, the day Apple was scheduled to announce its earnings for the quarter, and would write the order in such a way that MILLER could later claim he misinterpreted it. MILLER would then execute a trade for 1,000 times the number of shares written in the order. If the trade proved profitable, MILLER and his co-conspirator would share in the profits. If the trade proved unprofitable, MILLER would claim human error, leaving Rochdale holding the losing position.
At approximately 9:31 a.m. on October 25, 2012, MILLER’s co-conspirator submitted an order for Apple that read: “b 125 ok (per 1/2 hr).” MILLER then began executing orders to buy 125,000 shares of Apple stock, purportedly on behalf of the Rochdale customer. Over the course of the day, MILLER entered multiple, separate orders in Rochdale’s order management system in the amount of 125,000 shares. After Apple announced its earnings later that day, the stock price began dropping and it became clear that the trade would not be profitable. When confronted, MILLER falsely claimed that he had made a mistake in ordering many multiples of what was written in a client’s order.
As a result of this scheme, Rochdale was left holding approximately 1,623,375 shares of Apple. It promptly traded out of the position, but suffered a loss $5,292,202.50.
While he was executing the scheme at Rochdale, MILLER also defrauded another broker-dealer into taking on a significant short position in Apple stock. Through a series of misrepresentations made over the course of several weeks, MILLER convinced the broker-dealer to sell 500,000 shares of Apple stock, falsely claiming that he was trading for the account of a company, which he had no relationship with and for which he was not authorized to trade. MILLER engaged in this part of the scheme to hedge against the large purchase of Apple stock he was executing at Rochdale. As a result of the scheme, MILLER placed the broker-dealer at risk of sustaining substantial losses. In the end, the broker was able to trade out of the position at a profit.
MILLER pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud, and one count of wire fraud. He is scheduled to be sentenced by United States District Judge Robert N. Chatigny on July 8, 2013, at which time MILLER faces a maximum term of imprisonment of 25 years.
MILLER has been released on a $300,000 bond since his arrest on December 4, 2012.
This matter is being investigated by the Federal Bureau of Investigation.
U.S. Attorney Fein acknowledged the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) for their substantial assistance and cooperation during the investigation.
The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Physician Sentenced for Drug Fraud ChargeRead the Press Release
CONCORD, NH – Douglas McCullom, 52, of East Wakefield, was sentenced in United States District Court for the District of New Hampshire to serve three years of probation as a result of his conviction for fraudulently obtaining controlled substances, announced United States Attorney John P. Kacavas.
McCullom is a doctor of osteopathic medicine who is licensed to practice medicine in Maine. He worked as a physician for the Department of Veterans Affairs in New Hampshire. In 2010, McCullom wrote approximately 17 prescriptions for oxycodone and OxyContin that were not documented in the medical records of one of his patients. Some of these prescriptions were written for the patient after McCullom was placed on worker’s compensation leave. The patient has stated that he later provided some of these pills to McCullom.
McCullom had a registration with the Drug Enforcement Administration (DEA) that allowed him to write prescriptions for controlled substances. As part of his plea agreement, McCullom has agreed to surrender his DEA registration and never to seek another DEA registration. He also must advise the licensing authorities in Maine about his conviction.
In November of 2012, McCullom entered into a separate civil settlement agreement to resolve allegations that he violated federal regulations when he issued prescriptions that were not for a legitimate medical purpose and were outside the scope of his DEA registration. While not admitting any wrongdoing, McCullom paid $25,000 to resolve his potential civil liability.The case was investigated by the Office of Inspector General of the Department of Veterans Affairs and the Drug Enforcement Administration. The Office of Inspector General of the Office of Personnel Management also provided assistance in this investigation. The case was prosecuted by Assistant U.S. Attorney John J. Farley.
Owners of Gun Store/Beauty Shop Sentenced for Firearms ViolationsRead the Press Release
WICHITA, KAN. – A Butler County couple who ran a combined beauty shop and gun store have been sentenced for federal firearms violations, U.S. Attorney Barry Grissom said today.
Jeffrey Eberhart, 51, Augusta, Kan., was sentenced to five years in federal prison. He pleaded guilty to one count of dealing firearms without a license. His wife, Tracey Eberhart, 42, Augusta., Kan., was sentenced to three years on probation including six months house arrest. She pleaded guilty to one count of failing to keep records of firearms transactions.
The Eberharts operated Traceys Dream Weavers Salon And Sporting Goods at 431 State Street in Augusta, Kan. The store advertised that it was “Where Beauty and Bullets Collide.” In his plea, Jeffrey Eberhart admitted that he bought and sold hundreds of firearms at the store and at gun shows from Oct. 1, 2009, to Aug. 22, 2012. Throughout that time, he was not licensed as a federal firearms dealer because he was a previously convicted felon.
In her plea, Tracey Eberhart admitted that while she held a license as a federal firearms dealer she failed to keep records and make reports to the Bureau of Alcohol, Tobacco, Firearms and Explosives on at least 33 firearms transactions.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case. Other law enforcement agencies that assisted in the case include the Butler County Sheriff’s Department, the Wichita Police Department, the Augusta Police Department, the Kansas Bureau of Investigation and the U.S. Marshals Service.
Orange, Ohio, Man Pleaded Guilty to Overbilling Medicaid and Medicare by $2.5 MillionRead the Press Release
A man who lives in Orange, Ohio, admitted to overbilling Medicaid and Medicare by more than $2.5 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Divyesh “David” C. Patel, age 39, pleaded guilty to one count of conspiracy to commit health care fraud and four counts of health care fraud. Patel is expected to be sentenced later this year.
“This defendant enriched himself and his company by flouting rules designed to protect the public,” Dettelbach said.
“Mr. Patel defrauded the tax payers by scamming Medicaid and Medicare,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Waste, fraud and abuse take critical resources out of our health care system and contribute to the rising cost of health care for all Americans.”
Patel was the owner and president of Alpine Nursing Care, Inc., located at 4753 Northfield Road, Suite 5, North Randall, Ohio, employed Belita Mable Bush, as the office manager and director of provider services from June 1, 2006 through October 18, 2009, according to court documents.
Patel and Alpine employed Bush to prepare and submit the billings to Medicaid and Medicare for reimbursement for services provided by Alpine as a home health care provider, even though Patel knew that Bush had been previously convicted of a health care-related felony that excluded Bush from being involved in any way with Alpine’s Medicaid and Medicare billings, according to court documents.
In addition to the fact that Bush was excluded from handling Alpine’s medical billings, Patel was aware that Bush falsified documents related to health care services allegedly provided to home health patients where the services were never provided, or were provided by home health aide that had previous criminal convictions that excluded them from providing health services in people’s houses, according to court documents.
As a result of the conspiracy, Medicaid and Medicare suffered a loss of approximately $2,564,392, according to court documents.
Bush was convicted on related charges and is scheduled to be sentenced May 28.
The defendant's sentence will be determined by the court after review of factors unique to this case, including any prior criminal record, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Mark S. Bennett and Special Assistant General Constance A. Nearhood, following an investigation by the Office of the Inspector General, Department of Health and Human Services, Cleveland, Ohio; Ohio Attorney General’s Office, Medicaid Fraud Control Unit; and the Federal Bureau of Investigation, Cleveland, Ohio.
If you suspect health care fraud, waste or abuse, please report it by calling HHS Office of Inspector General at 800-447-8477, the Centers for Medicare & Medicaid Services at 800-633-4227, or the FBI Cleveland Field Office at (216) 522-1400. To learn more about health care fraud prevention and enforcement go to www.medicare.gov.
Ohio Man Sentenced to 4 Years in Prison for Precious Metals SchemeRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II sentenced Dustin Michael Letourneau (29, Warren, Ohio) last week to four years in federal prison for mail fraud and wire fraud. Letourneau was also ordered to serve a 3-year term of supervised release following his prison term, and to pay $240,481 in restitution to his victims. Letourneau pleaded guilty on January 17, 2013.
According to his plea agreement, Letourneau was the chief executive officer of Letourneau Holdings Inc., which was also known as LH Metals. Letourneau Holdings claimed to invest in silver, gold, and palladium bullion on behalf of investors. Investors would give Letourneau Holdings money to invest in these items on the commodities market. Letourneau represented to investors that the physical bullion was held on their behalf with one of Letourneau Holdings' counter parties. Rather than invest the funds as had been represented, Letourneau used significant portions of the investors' funds for his personal benefit. During the investigation, a confidential law enforcement source recorded several conversations with Letourneau. In those recorded conversations, Letourneau admitted that he had not been purchasing precious metals. He stated, [I’m] “being stupid with my money.” He also said that would be prosecuted for mail fraud because “the proof is all there."
To deceive his investors into believing that he was using the money to purchase precious metals, Letourneau had trade confirmations and monthly account statements sent to investors. The confirmations and statements falsely represented precious metals purchases. Letourneau was successful in defrauding 19 victims out of more than $240,000.
This case was investigated by the Federal Bureau of Investigation and the Florida Office of Financial Regulation, Bureau of Financial Investigations. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Obstruction Charges Filed in Ongoing FCPA Investigation <br /> into Alleged Guinean Mining Rights Bribe SchemeRead the Press Release
Frederic Cilins, 50, a French citizen, has been arrested and accused of attempting to obstruct an ongoing investigation into whether a mining company paid bribes to win lucrative mining rights in the Republic of Guinea.
Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Preet Bharara, the U.S. Attorney for the Southern District of New York; and George Venizelos, the Assistant Director in Charge of the FBI’s New York Field Office, made the announcement.
“Mr. Cilins is charged with scheming to destroy documents and induce a witness to give false testimony to a grand jury investigating potential violations of the Foreign Corrupt Practices Act,” said Acting Assistant Attorney General Raman. “The Justice Department is committed to rooting out foreign bribery, and we will not tolerate criminal attempts to thwart our efforts.”
“A grand jury can never learn the truth, and justice cannot prevail, where documents are intentionally destroyed and testimony is tainted by lies,” said U.S. Attorney Bharara. “As alleged, Frederic Cilins attempted to obstruct a significant investigation by corrupting evidence and testimony in precisely those ways. With today’s arrest, he now begins his own path to justice for his alleged conduct.”
“As alleged, Cilins attempted to buy evidence he sought to destroy,” said FBI Assistant Director in Charge Venizelos. “The destruction of evidence was in furtherance of Cilins’s alleged effort to obstruct an investigation into a bribery scheme. In effect, he was allegedly willing to commit bribery in an effort to cover up a bribery.”
Cilins was arrested in Jacksonville, Fla., on April 14, 2013, and a criminal complaint was filed in the Southern District of New York today charging Cilins with tampering with a witness, victim or informant; obstructing a criminal investigation; and destroying, altering or falsifying records in a federal investigation. The obstruction charge carries a maximum penalty of five years in prison, and the tampering and record-destruction charges each carry a maximum penalty of 20 years in prison. Cilins made an initial appearance in the Middle District of Florida and was detained pending a detention hearing scheduled for April 18, 2013.
According to the complaint, Cilins allegedly attempted to obstruct an ongoing federal grand jury investigation concerning potential violations of the Foreign Corrupt Practices Act and laws proscribing money laundering. The complaint states the federal grand jury is investigating whether a particular mining company and its affiliates – on whose behalf Cilins has been working – transferred into the United States funds in furtherance of a scheme to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins allegedly agreed to pay substantial sums of money to induce a witness to the bribery scheme to turn over documents to Cilins for destruction, which Cilins knew had been requested by the FBI and needed to be produced before a federal grand jury. The complaint also alleges that Cilins sought to induce the witness to sign an affidavit containing numerous false statements regarding matters under investigation by the grand jury.
The complaint alleges that the documents Cilins sought to destroy included original copies of contracts between the mining company and its affiliates and the former wife of a now-deceased Guinean government official, who at the relevant time held an office in Guinea that allowed him to influence the award of mining concessions. The contracts allegedly related to a scheme by which the mining company and its affiliates offered the wife of the Guinean official millions of dollars, which were to be distributed to the official’s wife as well as ministers or senior officials of Guinea’s government whose authority might be needed to secure the mining rights.
According to the complaint, the official’s wife incorporated a company in 2008 that agreed to take all necessary steps to secure the valuable mining rights for the mining company’s subsidiary. That same contract stipulated that $2 million was to be transferred to the official’s wife’s company and an additional sum was to be “distributed among persons of good will who may have contributed to facilitating the granting of” the valuable mining rights. According to the complaint, in 2008, the mining company and its affiliates also “commit[ted] to giving 5% of the shares of stock” in particular mining areas in Guinea to the official’s wife.
A complaint is merely an accusation, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elisha J. Kobre of the Southern District of New York. The case is being investigated by the FBI. The Justice Department’s Office of International Affairs and Office of Enforcement Operations have also assisted in the investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Nigerian Man Sentenced for Craigslist ScamRead the Press Release
PHILADELPHIA - Adebowale Ayodeji Owoaje, 31, of Nigeria, was sentenced today to 24 months in prison for wire fraud in a scheme to defraud individuals who were selling items and applying for jobs on Craigslist.com. Using various aliases while he was located overseas, Owoaje used e-mail to reach an agreement with the individuals on the sale price of items or terms of employment, including funds for a purported bonus or training materials. Owoaje pleaded guilty on January 15, 2013. He has been in federal custody since March 2012.
From overseas, Owoaje sent counterfeit cashier’s checks to his co-conspirators here in the United States. Based on instructions from Owoaje, a co-conspirator typed amounts on counterfeit cashier’s checks that exceeded the sales price or bonus agreed to by Owaoje and the individuals. The co-conspirator then mailed the counterfeit cashier’s checks to the individuals.
Owoaje informed individuals that a check in the wrong amount was sent to them by “mistake.” Owaoje then asked individuals to deposit that check in their bank account and to keep the amount Owoaje owed the individual plus an additional sum for their trouble. Owoaje instructed individuals to wire the balance of the money via Western Union to a co-conspirator, whom Owoaje falsely represented to individuals as his secretary or shipping agent. Only after wiring this money did individuals learn that the cashier’s checks they received were counterfeit.
In addition to the prison term, U.S. District Court Judge Mary A. McLaughlin ordered $193,175.86 in restitution, three years of supervised release and a $400 special assessment.The case was investigated by Immigrations and Customs Enforcement Homeland Security Investigations and was prosecuted by Assistant United States Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Newark, N.J., Man Sentenced to 55 Months in Prison for CarjackingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 55 months in prison for his role in a carjacking on March 14, 2012, U.S. Attorney Paul J. Fishman announced.
Anthony Reynolds, 18, previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh in Newark federal court to an Information charging him with one count of theft of a motor vehicle by force, violence and intimidation.
According to documents filed in this case and statements made in court:
Reynolds admitted that on March 14, 2012, he was a passenger in a BMW that had stopped at an intersection in Newark. Reynolds exited the vehicle and approached the driver’s side of a Porsche 911 Turbo that was stopped behind the BMW. Reynolds brandished a .38-cal. revolver at the driver of the Porsche 911 Turbo and ordered the driver out of the car. Once the driver got out of the car, Reynolds attempted to drive away in the Porsche 911 Turbo, but was unable to operate its manual transmission. A police chase ensued on foot and the police apprehended Reynolds.
In addition to the prison term, Judge Cavanaugh sentenced Reynolds to three years of supervised release.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Organized Crimes/Gangs Unit in Newark.
13-167Defense counsel: Joseph Ferrante Esq., Newark
Nearly 22 Years in Prison for Woman Who Produced Child Porn Images for Rent MoneyRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Laura J. Sigler, 26, to serve 262 months (21 years, 10 months) in federal prison and to remain on supervised release for life following her release from prison. Sigler has been detained in the custody of the U.S. Marshals Service since her arrest in March 2012, along with co-defendant Anthony L. Ferguson, 25.
On Dec. 6, 2012, Sigler pled guilty to using a five-year-old child to produce child pornography in November 2011, when Sigler and Ferguson were living at the Budget Inn in Lincoln, Ill. According to court documents, Ferguson and Sigler used the images of child pornography to secure rent money. Ferguson pled guilty to the offense in July 2012, and was sentenced in January 2013, to a term of 235 months (19 years, 7 months) in prison.
Sigler and Ferguson were each ordered to remain on supervised release for life following completion of their respective prison terms.
The case was investigated by ICE’s Homeland Security Investigations and the Lincoln Police Department. Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the government.
The case was prosecuted under Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Nacogdoches County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 31-year-old Nacogdoches, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lincoln Jerome Watts pleaded guilty on Nov. 19, 2012, to being a felon in possession of a firearm and was sentenced to 90 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Nov. 13, 2011, law enforcement authorities responding to a report of a disturbance involving a weapon encountered Watts in the 100 block of Zula Street in Nacogdoches, Texas. Watts consented to a search and was arrested after an officer discovered a loaded pistol in Watts’ front pants pocket. Further investigation revealed Watts was a convicted felon having been found guilty of aggravated robbery in Nacogdoches County; possession of a firearm while under indictment in the Eastern District of Texas; possession of a stolen firearm in the Eastern District of Texas; and burglary of a federal firearms licensee in the Eastern District of Texas, all in 2001. Federal law prohibits a convicted felon from owning or possessing firearms or ammunition. Watts was indicted by a federal grand jury on Oct. 3, 2012.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.Murphysboro Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
On April 11, 2013, David A. Shockley, 36, of Murphysboro, IL, pled guilty in United States District Court in Benton to an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea hearing established that Shockley was involved with others in the manufacture of methamphetamine. Shockley obtained pseudoephedrine for use during the manufacture methamphetamine and was also involved in the methamphetamine cooks.
Shockley is currently being held without bond pending an August 15, 2013, sentencing hearing. At that time, Shockley faces up to 20 years’ imprisonment, 3 years’ supervised release, and a fine of up to $1,000,000. Six co-defendants have previously pled guilty to the methamphetamine charge and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Miami Woman Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Tom Caul, Acting Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), and Steven Steinberg, Chief, Aventura Police Department, announced today the conviction at trial of Natoya Mashea Handy, 30, of Miami, for her participation in a tax refund scheme using stolen identities to convert government monies for her own use. More specifically, on Friday, April 12, 2013, Handy was convicted by a jury of one count of access device fraud in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft in violation of Title 18, United States Code, Section 1028A, in connection with an identity theft tax refund fraud scheme.
The Honorable Robin S. Rosenbaum, U.S. District Judge, scheduled sentencing for June 24, 2013 at 9:00 A.M.
According to testimony and evidence presented at trial, on or about April 5, 2012, the defendant was found with at least fifteen (15) social security numbers, names, and dates of birth belonging to persons who were formerly or presently incarcerated by the state of Florida. The trial testimony and evidence further showed that fraudulent tax returns were filed for tax year 2011 for seventeen (17) of the individuals whose social security numbers the defendant possessed. Each of these fraudulent tax returns fraudulently claimed entitlement to a refund, amounting to thousands of dollars in fraud.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the City of Aventura Police Department, the City of Miami Gardens Police Department, and IRS-CID, with assistance from the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorneys Alexandra Hui and Amanda Perwin.
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.
Mexican National Convicted in Alien Smuggling Scheme to Steal Fees from Aliens and Their FamiliesRead the Press Release
McALLEN, Texas – Pedro Rayon-Perez, 26, has been convicted of harboring undocumented aliens, United States Attorney Kenneth Magidson announced today. The Mexican National entered a guilty plea just moments ago as he was set to begin trial.
Rayon-Perez had been charged in an indictment returned Aug. 28, 2012, along with Roxanna Leal, 25, of McAllen, and Mexican Nationals Luis Aguilar-Hernandez, 41, and Osiel Castillo, 45, who had previously entered guilty pleas in the case.
The investigation revealed Rayon-Perez coordinated a smuggling ring that involved five undocumented aliens who crossed into the United States on Nov. 12, 2011. Rayon-Perez, Leal and Aguilar-Hernandez had agreed to demand payment of the aliens’ smuggling fees from their families while they held the aliens at stash houses in McAllen and Pharr. The aliens had previously agreed to pay the remainder of their fees once they arrived in Houston. However, the defendants planned to coerce early payment of these fees from their families and release them in public places throughout the Rio Grande Valley, not in Houston. They had previously conducted similar scams against other smuggled aliens.
The investigation began when Rayon-Perez convinced the family of a pregnant alien and her husband to wire $4,800, after which he double-crossed Aguilar-Hernandez by failing to divide the proceeds. When Aguilar-Hernandez demanded additional payment from the aliens, the family sought law enforcement assistance. The San Juan Police Department, assisted by the United States Marshals Service, conducted a tactical operation that freed the aliens on Nov. 17, 2011, from the stash house where Aguilar-Hernandez and Leal were harboring the aliens.
U.S. District Judge Randy Crane, who accepted all the pleas on the case, has set sentencing for June 20, 2013, for Rayon-Perez and Aguilar-Hernandez, while the other two will be sentenced on June 13, 2013, at 2:00 p.m. At sentencing, all four face up to 10 years imprisonment. With the exception of Leal, who was permitted to remain on bond, all will remain in custody pending their respective hearings.
The case was investigated by Homeland Security Investigations with assistance from the San Juan Police Department. Assistant United States Attorneys Grady J. Leupold and Leo J. Leo III are prosecuting the case.
Manhattan U.S. Attorney Announces Settlement with Department of Defense Weapons Parts Supplier for Procurement FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed and simultaneously settled a civil fraud lawsuit against Electrical & Electronic Controls, Inc. (“E&E”), a small distributor of electrical components, for knowingly supplying the United States Department of Defense (“DoD”) with non-conforming electrical and other parts critical to weapons performance and operation, that later turned out to be defective. The Complaint was filed on March 21, 2013 in Manhattan federal court and the settlement was approved Friday by U.S. District Court Judge William H. Pauley, III.
Manhattan U.S. Attorney Preet Bharara said: “As E&E admitted, they provided less expensive unapproved parts to our Department of Defense, conduct that jeopardized both the flawless functioning of our weapons system and the safety of those who operate it. This Office is committed to ensuring that the U.S. Government gets what it pays for, and pursues those who would mislead it.”
According to the allegations contained in the Complaint:
From 2004 through 2007, E&E bid on and entered into fourteen contracts with the DoD. Under those contracts, E&E was required to supply parts from specific manufacturers that had been vetted and approved by the DoD for the quality of their products. Instead, E&E knowingly supplied less expensive parts from unapproved sources to the DoD. Twelve of the 14 contracts involved Critical Application Items, i.e., items that are essential to weapon system performance or operation, or the safety of operating personnel. In addition, many of the substituted parts turned out to be defective and unusable, costing the DoD hundreds of thousands of dollars.
As part of the settlement, E&E admitted, acknowledged, and accepted responsibility for repeatedly substituting less expensive parts from unapproved sources, and misrepresenting the source of the parts it then supplied to DoD. E&E must also pay $250,000 to the United States under the False Claims Act.
Mr. Bharara praised the investigative work of the DoD in this case.
Assistant U.S. Attorney Jaimie L. Nawaday is in charge of the case.
Manhattan U.S. Attorney Announces Arrest of French Citizen for Obstructing Foreign Bribery and Money Laundering InvestigationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest today of FREDERIC CILINS, a French citizen, for obstructing a grand jury investigation concerning alleged bribes paid for certain mining rights in the Republic of Guinea. CILINS was arrested yesterday in Jacksonville, Florida, and was presented in federal court in Jacksonville this afternoon. He was detained pending a detention hearing scheduled for April 18, 2013.
Manhattan U.S. Attorney Preet Bharara stated: “A grand jury can never learn the truth, and justice cannot prevail, where documents are intentionally destroyed and testimony is tainted by lies. As alleged, Frederic Cilins attempted to obstruct a significant investigation by corrupting evidence and testimony in precisely those ways. With today’s arrest, Mr. Cilins now must answer to the system he allegedly tried to obstruct.”
Acting Assistant Attorney General Mythili Raman said: “The Department of Justice considers efforts to obstruct grand jury and FBI investigations to be a serious threat to the due administration of justice. The Department will actively prosecute those found to be subverting our efforts to fight corruption.”
FBI Assistant Director-in-Charge George Venizelos: “As alleged, Cilins attempted to buy evidence he sought to destroy. The destruction of evidence was in furtherance of Cilins’s effort to obstruct an investigation into a bribery scheme. In effect, he was willing to commit bribery in an effort to cover up a bribery.”
According to the allegations in the Complaint filed today in Manhattan federal court:
Since January 2013, a federal grand jury sitting in the Southern District of New York has been conducting a criminal investigation into potential violations of the Foreign Corrupt Practices Act (“FCPA”) and money laundering related to a scheme in which a particular mining company (“Entity”) allegedly paid bribes to officials of a former governmental regime of the Republic of Guinea to win valuable mining concessions in the Simandou region of Guinea. The investigation is focused on, among other things, at least one individual who is a “domestic concern” within the meaning of the FCPA and also concerns certain proceeds that were wired to or through the Southern District of New York.
CILINS is a French citizen who has identified himself as a representative of the Entity. From at least March 2013 to the present, CILINS has repeatedly attempted to obstruct the grand jury investigation in conversations and meetings he has had with a cooperating witness (“CW”), the former wife of a now deceased high-ranking official in Guinea. Among other things, CILINS offered to pay the CW as much as $5 million if, in exchange, the CW would: provide, certain documents that CILINS knew had been requested from the CW by special agents of the FBI so that he could destroy them; and sign an affidavit containing numerous false statements regarding matters within the scope of the grand jury investigation. The documents that CILINS sought to destroy included original copies of contracts between the Entity and its affiliates and the CW, whose husband then held an office in Guinea that allowed him to influence the award of mining concessions. These contracts reflect an alleged corrupt deal in which the Entity offered to pay the CW’s company millions of dollars, among other benefits, with the understanding that, in exchange for these payments, the CW’s husband would undertake official action to help the Entity with respect to certain valuable mining concessions the Entity sought in the Simandou Region in Guinea.
In at least one meeting with the CW, which was recorded, when CILINS learned that a U.S. grand jury was investigating the Entity’s conduct, CILINS repeatedly said that the documents in the CW’s possession needed to be destroyed “urgently.” CILINS offered to pay the CW $200,000 and another $800,000 at a later date. Further, if the case was completed, and the Entity did not lose its business in Guinea, CILINS offered to pay the CW $5 million.
CILINS, 50, is a resident of France. He is charged with one count of witness tampering, which carries a maximum term of 20 years in prison; one count of destroying, altering, or falsifying records in a federal investigation, which carries a maximum term of 20 years in prison; and one count of obstructing a criminal investigation, which carries a maximum term of five years in prison.
Mr. Bharara praised the outstanding efforts of FBI in the investigation, which he noted is ongoing. He also thanked the Justice Department’s Office of International Affairs and Office of Enforcement Operations for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Elisha J. Kobre and Stephen Spiegelhalter of the Fraud Section of the Criminal Division are in charge of the prosecution.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Frederic Cilins Complaint
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Kidnapping Conspiracy Charges Against Massachusetts Veterans Affairs Police Chief and Former New York City High School LibrarianRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), today announced the arrests of RICHARD MELTZ, Chief of Police for the U.S. Department of Veterans Affairs, for the Bedford, Massachusetts Veteran Affairs Medical Center, and ROBERT CHRISTOPHER ASCH, a former high school librarian, for conspiracy to kidnap, torture, rape, and kill women and children. MELTZ was arrested yesterday afternoon and ASCH was arrested this morning by special agents of the FBI. MELTZ and ASCH will be presented today before U.S. Magistrate Judge James C. Francis IV in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “The bone-chilling conduct alleged in this complaint is a chronicle of sadism and depravity that includes the defendants’ very real steps to carry out their plans to kidnap, torture, rape, and kill the women and children they targeted. As alleged, Richard Meltz and Robert Christopher Asch assiduously planned their plot in detailed conversations and alternately served as advisors and facilitators of the plan – Meltz provided ‘strategic advice’ and Asch conducted surveillance, and provided supplies including leather ties, a sleeping agent, instruments of torture, and a taser gun. The only thing that stood between these alleged kidnappers and their horrifying plot was the outstanding investigative teamwork of the FBI and the prosecutors in this Office.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, both of these defendants took affirmative steps to carry out the conspiracy to kidnap and torture women. Their actions were not confined to talking about these ghoulish plans. They acquired the tools to accomplish the deed, including a taser and the chemical means to anesthetize their victims. And they made detailed plans to use these instruments – plans that were foiled by the FBI’s intervention.”
According to the Complaint filed today in Manhattan federal court:
Between 2011 and October 2012, MELTZ, ASCH, and a co-conspirator, Michael Vanhise, who was previously indicted on kidnapping conspiracy charges, engaged in a series of electronic mail (“e-mail”) and instant message communications during which they discussed and planned in great detail the kidnapping, torture, and murder of women. In October 2012, FBI agents became aware of these communications. Specifically, they learned that Vanhise was sending e-mail and instant messages from various computers to solicit individuals, including MELTZ and ASCH, to kidnap, rape, and kill his wife, his sister-in-law, her children and his step-daughter. Vanhise eventually met with FBI agents, and told them that he sent MELTZ and ASCH photographs of his sister-in-law and her minor children. MELTZ and ASCH both expressed interest in kidnapping the proposed victims, and Vanhise provided MELTZ and ASCH with a location that was in close proximity to the kidnapping targets’ actual home address. In an e-mail exchange between MELTZ and Vanhise about this plan, MELTZ wrote: “we go over there she know you let’s [sic.]us in we choke her out tie her up throw her in the back of your car take her someplace and [rape and torture her].”
In October 2012, an FBI agent working in an undercover capacity (“UC-1”) contacted ASCH online and began discussions about kidnapping a woman, who, unbeknownst to the defendants, was also actually an FBI undercover agent (“UC-3”). UC-1 and ASCH met on a number of occasions in Manhattan, and during one such meeting on March 13, 2013, ASCH provided UC-1 with a bag of materials to be used during the kidnapping and torture of UC-3, including a ski mask, hypodermic needles, leather ties, chrome forceps, a three-page gun show itinerary, documents relating to a “leg-spreader” and “dental retractor” that ASCH claimed to have purchased, and the liquid form of doxepin hydrochloride, commonly used as a sleep agent. During the same meeting, ASCH, along with UC-1 and another FBI agent acting in an undercover capacity (“UC-2”), conducted surveillance of UC-3, the intended victim, as she left her purported work place. ASCH, upon viewing UC-3, said, “She has to die.”
ASCH also introduced UC-1 to MELTZ, who participated in multiple conversations with both UC-1 and ASCH about the conspiracy’s objective to kidnap and commit acts of violence against women. For example, after MELTZ and ASCH discussed the widespread availability of stun guns in gun shops in New Hampshire, where MELTZ lived, and at gun shows in Pennsylvania, and MELTZ provided advice about the use of a stun gun in the commission of the kidnapping offense, ASCH traveled from New York to Pennsylvania to attend a gun show and purchased a high-voltage taser gun.
Throughout this investigation, the FBI intercepted numerous phone calls during which MELTZ provided advice, information, and assistance to ASCH on how to avoid detection and minimize the risks associated with abducting and murdering a woman. Examples of the techniques suggested by MELTZ include the avoidance of toll roads, using rental cars, paying for “tools” in cash, looking for victims in desolate areas who are engaged in other activities (such as talking on the phone), abducting victims at night, and using disguises when first approaching a potential victim.
On April 14, 2013, MELTZ met with UC-1 at a location in New Jersey. This meeting was recorded and observed by FBI agents. At the meeting, MELTZ and UC-1 discussed the kidnapping and murder of UC-3. MELTZ advised UC-1 on how best to dispose of UC-3’s body, including how to transport it from the crime scene to a desolate location in the woods in upstate New York. MELTZ told UC-1 that given the weather at the time of year, if UC-3’s body were left in the woods, wild animals would likely find and destroy it before law enforcement could find it.
On April 15, 2013, ASCH met UC-1 in lower Manhattan to conduct surveillance of UC-3. UC-1 and ASCH previously had discussed ASCH giving UC-1 the tools ASCH had gathered to use for the kidnapping, so that UC-1 could take them to the location where UC-3 was to be brought following her abduction. ASCH brought to the April 15 meeting two bags of tools intended to be used in the kidnapping, rape, torture, and murder of UC-3, including but not limited to a taser gun, rope, a meat hammer, duct tape, gloves, cleaning supplies, zip ties, a dental retractor, two speculums, 12-inch skewers, pliers, a wireless modem, and a leg spreader.
ASCH, 60, of Manhattan, and MELTZ, 65, of Stanhope, New Jersey, and Nashua, New Hampshire, are each charged with one count of conspiracy to commit kidnapping, which carries a maximum sentence of life in prison, and a maximum fine of $250,000, or twice the gross gain or gross loss from the offense.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the New Jersey State Police. Mr. Bharara added that the investigation is continuing.
This case is being handled by the Office's Violent Crimes Unit. Assistant United States Attorneys Hadassa Waxman and Brooke E. Cucinella are in charge of the prosecution.
The charges contained in the Complaint and the Indictment against Vanhise are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Robert Christopher Asch and Richard Meltz Complaint
Longest Federal Prison Term in El Paso Corruption Investigation Handed Down This Morning to Former Aliviane C.E.O. Cirilo "Chilo" Lara MadridRead the Press Release
In El Paso this morning, former Aliviane Chief Executive Officer Cirilo “Chilo” Lara Madrid was sentenced to 15 years in federal prison for conspiring to embezzle federal program funds announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Madrid pay a $100,000 fine and be placed under supervised release for a period of three years after completing his prison term. Judge Montalvo also ordered that Madrid, along with his co-defendants, jointly and severally pay $550,000 restitution to the Substance Abuse and Mental Health Services Administration (SAMHSA).
Last month, Judge Montalvo sentenced Madrid’s co-defendants. Former L.K.G. Enterprises, Inc., (LKG) president Ruben “Sonny” Garcia, Jr., received four years in federal prison followed by three years of supervised release after he pleaded guilty to conspiracy to commit theft or embezzlement of federal program funds. Judge Montalvo also sentenced LKG to five years probation during which time the corporation is prohibited from receiving any government contract.
“Mr. Madrid’s sentence today should send a clear message to the community that we will not tolerate abuse of the American taxpayers or corruption of our institutions of government. The next time someone with such intentions thinks it’s ‘business as usual’ in El Paso, they should remember the fifteen years that Mr. Madrid will spend in federal prison,” stated U.S. Attorney Robert Pitman.
In December, a jury convicted Madrid of one count of conspiracy to steal or embezzle federal program funds, one substantive count of theft of embezzlement of federal program funds and one count of conspiracy to commit mail fraud and the deprivation of honest services. Evidence presented before the jury revealed that Madrid and Garcia conspired to pay a total of $24,000 in bribes to former El Paso County Judge Dolores Briones for her help and assistance to LKG with an El Paso County contract it was awarded to evaluate a health program for severely mentally handicapped and emotionally disturbed children in El Paso County. The program, Border Childrens’ Mental Health Collaborative (BCMHC), was funded by a 5-year federal grant valued at over $9 million. Furthermore, evidence revealed that Madrid and Garcia caused fraudulent reports to be mailed to SAMHSA reflecting that they were satisfying the grant funding requirements.
“Today marks the end of a long and dark chapter in a sad story in which public confidence was shattered by a group, to include Mr. Madrid, who were entrusted to serve the needs of mentally challenged children but instead used their influence to feed their own personal greed. Today’s sentencing of Mr. Madrid also marks the continued commitment of the FBI to aggressively pursue individuals who have violated the public’s trust by holding them personally accountable for their self-serving acts,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Juanita Fielden and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.
Lawrenceville Couple Sentenced for Bankruptcy FraudRead the Press Release
Thomas G. Grogan, 50, and Debra A. Grogan, 54, both of Lawrenceville, Illinois, were each sentenced on Friday, April 12, 2013, in United States District Court in Benton to 3 year terms of probation for fraudulently concealing assets from the United States Trustee and chapter 7 trustee during the pendency of their 2009 bankruptcy case in the United States Bankruptcy Court, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Both waived indictment by the Grand Jury and pled guilty to an information charging them with that offense on December 7, 2012.
“My office will not condone any lies in any official proceeding,” said United States Attorney Wigginton. “Keeping the process fair for all is what I intend to do.”
“Concealing assets in a bankruptcy proceeding is a crime that threatens the integrity of the bankruptcy process and public confidence in that process, ” stated Nancy J. Gargula, United States Trustee for Southern Illinois, Central Illinois, and Indiana (Region 10). “We are grateful to all of our law enforcement partners, and in particular to U.S. Attorney Steve Wigginton for his commitment to pursuing those who commit bankruptcy fraud.”
Evidence introduced in support of the guilty pleas and sentences showed that in 2009 the Grogans filed a bankruptcy petition in which they sought to discharge $24,506.00 in debts owed to various creditors. Under bankruptcy law, the Grogans were required to list all of their assets, including any interest they might have in any lawsuit from which they might receive a settlement or award of damages. The Grogans repeatedly failed to disclose on their petition or to the Chapter 7 Trustee that Thomas Grogan expected to receive a settlement of $111,770.05 related to the pharmaceutical Vioxx. The Chapter 7 Trustee, however, independently discovered the existence of the settlement and was able to seize the funds and distribute them to the Grogans’ creditors.
In addition to his 3 year term of probation, Thomas Grogan was ordered to pay to the United States fines and special assessments totaling $2100 and to perform 30 hours of community service. Debra Grogan was also ordered to pay $2100 and to perform 20 hours of community service.
The case was investigated by the Federal Bureau of Investigation with the assistance of the United States Trustee for Region 10 and the Peoria Office of the United States Trustee. Region 10 of the U.S. Trustee Program is headquartered in Indianapolis, Indiana, with additional offices in Peoria, IL and South Bend, IN. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Kanawha Co. Resident Who Collected and Traded Child Pornography Gets Federal Prison TimeRead the Press Release
CHARLESTON, W.Va. –A Kanawha County resident who collected more than 600 images of child pornography was sentenced on April 15 to two years in federal prison followed by 15 years of supervised release, announced U.S. Attorney Booth Goodwin. Michael Lee McCormick, 42, of Winifrede, Kanawha County, W.Va., pleaded guilty in November 2012. McCormick admitted that he possessed more than 600 images of child pornography. McCormick also admitted that he downloaded the images on his computer. McCormick further admitted that he shared the images with other individuals using the Internet.
U.S. Attorney Booth Goodwin said, “Pedophiles like this defendant who download and trade child pornography encourage the abuse and exploitation of children. Behind every piece of child pornography traded over the Internet, there is a child somewhere who has been exploited in the most heinous way imaginable. I will continue to spare no effort in prosecuting these crimes against children.”
Goodwin continued, “This sentencing underscores the fact that sexual exploitation remains a serious problem.”
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney John Frail handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/usao/wvs/PSCpage.html. For more information about internet safety education, please visit www.usdoj.gov/psc and follow the link named “Resources.”
Justin Doucet Indicted and Arrested for Receipt of Child PornographyRead the Press Release
JUSTIN DOUCET, age 20, a resident of Larose, was charged on Friday, April 12, 2013 in a one-count indictment by a Federal Grand Jury for receipt of child pornography, announced U. S. Attorney Dana Boente. DOUCET was arrested at his home on April 15, 2013 by Special Agents of the FBI.
According to court documents, beginning at a time unknown and continuing until on or about February 8, 2012, the defendant knowingly received computer images and digital video files which contained visual depictions of minors engaging in sexually explicit conduct.
If convicted, DOUCET faces a minimum term of imprisonment of 5 years and maximum term of imprisonment of 20 years. The defendant also faces a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney G. Dall Kammer.
(Download Indictment )
Justice Department Sues to StopSouth Carolina Tax Return PreparersRead the Press Release
The United States has asked a federal court in Charleston, S.C., to permanently bar Stacy Middleton of Charleston, and George Jenkins of Blythewood, S.C., from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Middleton and Jenkins have prepared federal income tax returns in Charleston and Columbia, S.C., through a business named MBM Tax and Accounting Services LLC. The complaint alleges that they have prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes.
The government complaint alleges that Middleton and Jenkins prepared returns that unlawfully created fictitious deductions and credits as well as overstating and duplicating existing deductions and credits. The complaint also alleges that Middleton created fraudulent Forms 1099 on behalf of customers, creating fake income to enable Middleton to claim the Earned Income Tax Credit on behalf of those customers. According to the complaint, the Internal Revenue Service has examined 842 returns prepared by Middleton and Jenkins, and over 93 percent of those examinations resulted in an adjustment to their client’s tax liability. Altogether, the government complaint alleges that Middleton’s and Jenkins’s activities may have resulted in as much as $55 million of loss to the United States.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department’s website.
United States v. StacyMiddleton , etc.
Complaint for Permanent Injunction (PDF)Justice Department Sues to Permanently EnjoinFlorida Tax Return PreparerRead the Press Release
The Justice Department filed suit today asking the United States District Court for the Southern District of Florida to permanently bar Osvaldo J. Diaz from preparing federal tax returns for others. The civil injunction suit alleges that Diaz prepares returns through Professional Accounting Services Inc. in Coral Gables, Fla.
According to the complaint, Diaz prepares tax returns that fabricate deductions and credits in an attempt to understate his customers’ tax liabilities or inflate his customers’ refunds. The government alleges that Diaz fabricates business and personal expenses and inflates real estate losses for his customers. The Internal Revenue Service has examined 250 returns prepared by Diaz and found that 93 percent resulted in deficiencies. As alleged in the complaint, the IRS projects that the tax loss from the returns prepared by Diaz could be tens of millions of dollars.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department’s website .
Related Materials:
United States v. Ann M. Williams , etc.
Complaint for Permanent Injunction (PDF)Justice Department Sues to StopRead the Press Release
SOUTH CAROLINA TAX RETURN PREPARERSWASHINGTON – The United States has asked a federal court in Charleston, S.C., to permanently bar Stacy Middleton of Charleston, and George Jenkins of Blythewood, S.C., from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Middleton and Jenkins have prepared federal income tax returns in Charleston and Columbia, S.C., through a business named MBM Tax and Accounting Services LLC. The complaint alleges that they have prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes.
The government complaint alleges that Middleton and Jenkins prepared returns that unlawfully created fictitious deductions and credits as well as overstating and duplicating existing deductions and credits. The complaint also alleges that Middleton created fraudulent Forms 1099 on behalf of customers, creating fake income to enable Middleton to claim the Earned Income Tax Credit on behalf of those customers. According to the complaint, the Internal Revenue Service has examined 842 returns prepared by Middleton and Jenkins, and over 93 percent of those examinations resulted in an adjustment to their client’s tax liability. Altogether, the government complaint alleges that Middleton’s and Jenkins’s activities may have resulted in as much as $55 million of loss to the United States.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department’s website.
Related Documents:
United States v. StacyMiddleton , etc.
Complaint for Permanent Injunction
(PDF documents)Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader
Accessibility Information13-428
Harrisburg Man Convicted of Federal Drug Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man faces at least 20 years and up to life imprisonment after his conviction last week on federal drug trafficking charges.
According to United States Attorney Peter J. Smith, Damien Hammonds, age 28, of Harrisburg, was convicted by a jury in United States District Court in Harrisburg following a weeklong trial before U.S. District Judge Christopher C. Conner on charges of unlawfully distributing cocaine base, also known as crack, as well as cocaine hydrochloride. The jury also held that the amount of crack cocaine involved was at least 280 grams plus at least half a kilogram of cocaine hydrochloride.
The evidence showed that Hammonds sold crack cocaine and also supplied co-conspirator Michael Hansley, also of Harrisburg, with multiple ounces of cocaine hydrochloride on a weekly basis which Hansley would convert into crack and then distribute through individuals working with and for him.
Hansley previously pleaded guilty and is awaiting sentencing on May 23, 2013.
Hammonds was stopped at the airport in San Juan, Puerto Rico in June 2010 and found to have approximately $22,000 in U.S. currency hidden on his person and in his luggage. Hammonds was in Puerto Rico to purchase a kilogram of cocaine from a source of supply located there.
The evidence also showed that in April 2011 Hammonds sold two ounces of crack cocaine to an individual who was assisting the Drug Enforcement Administration and the Dauphin County Drug Task Force. That sale was under surveillance by those agencies and was subject to both audio and video recording.
Hammonds was indicted in May 2011. A sentencing date has not been scheduled.
The case was investigated by the Drug Enforcement Administration’s Harrisburg Resident Office, the Pennsylvania Attorney General’s Bureau of Narcotics Investigation and the Dauphin County Drug Task Force.
Assistant United States Attorney William A. Behe prosecuted the case for the United States.
Granger Man Sentenced for Threat to Congressman’s OfficeRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —United States Attorney David Capp announced:
Brett Keiling, 49, of Granger, Indiana, was sentenced by District Judge Robert Miller, Jr. to 27 months imprisonment (time served) and 3 years of supervised release after pleading guilty to the felony offense of threatening to assault an employee of the United States with intent to impede the performance of official duties.On January 24, 2011, Keiling made a telephone threat to an employee of then Congressman Joseph Donnelly’s office.Keiling has been in federal custody since that date.
Keiling is subject to numerous conditions while on supervised release including having no contact with any public official’s office without first obtaining the permission of the United States Probation Office.
This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Grand Jury Charges Four with Gun and Drug CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A federal grand jury here has returned a 24-count indictment charging three Columbus-area men and a woman with providing and using firearms in illegal drug trafficking crimes.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), and Gahanna Police Chief Dennis Murphy announced the indictment today.The indictment charges Jack A. Morris, 37, of Columbus, Jeremy S. Baker, 25, of Blacklick, fugitive and Judy L. Kindle, 45, of Columbus with conspiracy and possession with intent to distribute oxycodone, which are each punishable by up to 20 years in prison, and possession with intent to distribute marijuana, punishable by up to five years in prison.
Morris is also charged with seven counts of possession of one or more firearms during and in relation to a drug trafficking crime. The first count is punishable by at least five years and the other counts are punishable by at least 25 years in prison. Baker and Kindle are also charged with one count of possession of a firearm in relation to a drug crime.
If convicted on all counts, Morris faces a mandatory minimum sentence of 155 years.
The indictment alleges that Morris and others supplied street level distributors of marijuana, cocaine and oxycodone with firearms and body armor as a way of protecting themselves from potential robberies. Morris also placed firearms in strategic locations throughout the house he shared with Kindle in order to intimidate potential robbers and protect the narcotics and proceeds kept at the house.
The indictment charges Christopher W. Wilcox, 30, of Reynoldsburg with two counts of supplying the others with firearms including an AK-47 and an AR-15, knowing that the weapons were to be used in the drug trafficking. Each count is punishable by up to ten years in prison.
"ATF will continue to work with our law enforcement partners to aggressively pursue those individuals who possess and use firearms in furtherance of their illicit activities", stated ATF Special Agent in Charge Shoemaker.
U.S. Attorney Stewart commended the investigation conducted by ATF and the Gahanna Police officers, and Assistant U.S. Attorney David DeVillers and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Former Full-Tilt Poker CEO Pleads Guilty and Is Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RAYMOND BITAR, the former Chief Executive Officer of Full Tilt Poker, pled guilty today to unlawful internet gambling and to conspiracy to commit bank fraud and wire fraud and was sentenced to time served by U.S. District Judge Loretta A. Preska. In pleading guilty, BITAR admitted to working with others to defraud his poker customers by lying to them about the security of their funds and falsely promising players that their funds would be protected in “segregated” accounts. In connection with his plea and sentencing, BITAR agreed to forfeit $40 million dollars in money and other property derived from his offenses. In sentencing BITAR, Judge Preska made clear that she would have imposed a substantial term of imprisonment had it not been for the fact that BITAR has an extremely serious heart condition and is in urgent need of a heart transplant.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea and sentencing today, former Full-Tilt Poker CEO Raymond Bitar now stands convicted and must forfeit tens of millions of dollars in ill-gotten gains in connection with the massive fraud his company orchestrated against the U.S. banking system and the scheme that defrauded Full-Tilt Poker’s U.S. customers.”
The following allegations are based on the Superseding Information filed today in Manhattan federal court, the Superseding Indictment unsealed following the defendant’s arrest in 2012, and the Indictment unsealed on April 15, 2011 in which BITAR was initially charged, other documents previously filed in the case, and statements made in court:
In late 2006, Congress enacted the Unlawful Internet Gambling Enforcement Act ("UIGEA"), making it a crime to "knowingly accept" most forms of payment "in connection with the participation of another person in unlawful Internet gambling." Notwithstanding the enactment of UIGEA, Full Tilt Poker – a company founded by professional poker players in the U.S. in 2004 – contined to offer Internet gambling to U.S. residents, and took in an estimated $1 billion from U.S. residents through April 15, 2011. Because U.S. bankes were laregely unwilling to process payments for illegal Internet gambling, BITAR relied on fraudulent means designed to trick U.S. banks by disguising payments to Full Tilt Pker as payments unrelated to Internet gambling.
In order to encourage players to deposit money with Full Tilt Poker, BITAR directed Full Tilt Poker employees to falsely assure potential customers that player deposits would be held in segregated accounts that would be kept separate and distinct from the company’s operating accounts. In fact, Full Tilt Poker did not protect player funds in segregated accounts, and instead, used them for whatever purposes BITAR directed, including to pay him and other owners millions of dollars. Because player funds were being used to cover operating expenses, Full Tilt Poker experienced an increasing shortfall between the cash it had in its bank accounts and the money it owed to players. For example, by early November 2010, Full Tilt Poker owed its customers approximately $344 million but had only approximately $145 million in all of its bank accounts. To conceal this financial shortfall, BITAR directed Full Tilt Poker employees to misrepresent how much cash the company had on hand. Among other things, Full Tilt Poker
Further, to prevent players from learning about Full Tilt Poker’s shaky finances and to induce them to continue gambling with Full Tilt poker, BITAR concocted a scheme in which Full Tilt Poker players were led to believe they were gambling real money when in actuality they were gambling with “phantom” online credits. As explained in greater detail in the Superseding Indictment, in the fall of 2010, Full Tilt Poker lost its ability to reliably collect deposits from U.S. bank accounts. Rather than terminate its U.S. operations – an option that would likely have exposed the fact that Full Tilt Poker was not holding player cash in segregated accounts, and was holding less than half of the money it owed players – BITAR arranged for Full Tilt Poker to continue approving player deposits, and to award credit to depositors even though Full Tilt Poker had not actually collected the money from players and had no ability to do so. As United States players gambled and won or lost these phantom funds – ultimately totaling over $130 million – Full Tilt Poker would list the phantom funds on players’ online account statements, even though the funds were never collected, or available to pay the winning players.
Only weeks before U.S. law enforcement took action against Full Tilt Poker in April 2011, Full Tilt Poker’s internal financial statements reported $390 million in debts to players but only $60 million in its bank accounts. As players around the world began demanding their funds from Full Tilt Poker following the law enforcement action, rather than suspend operations, BITAR lured players to continue gambling with Full Tilt Poker by continuing to promise them that their funds were safe. In actuality, BITAR was using new customer deposits to pay off some of the backlog of player requests to withdraw funds and to cover the company’s operating expenses, including salary for himself and others. In effect, Full Tilt Poker operated what was, by then, nothing more than a Ponzi scheme. When the scheme finally collapsed, Full Tilt Poker was unable to pay players the approximately $350 million it owed them.
BITAR, 41 of Glendora, California, was also ordered to pay a $200 special assessment fee.
Mr. Bharara thanked the Federal Bureau of Investigation for its outstanding work in the investigation, which he noted is ongoing. He also thanked Immigration and Customs Enforcement’s Homeland Security Investigations New York and New Jersey offices for their continued assistance in the investigation.
BITAR is the eighth of the eleven defendants charged in connection with the original Internet poker indictment to have been arrested, all of whom have pled guilty. In addition to BITAR they are: Bradley Franzen, Ryan Lang, Ira Rubin, Brent Beckley, Chad Elie, John Campos and Nelson Burtnick. Charges are still pending against the remaining three defendants – Isai Scheinberg, Paul Tate and Scott Tom – who are at large, and are presumed innocent unless and until proven guilty.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Arlo Devlin-Brown, Niketh Velamoor, and Nicole Friedlander are in charge of the criminal case, and Assistant U. S. Attorneys Sharon Cohen Levin, Jason Cowley, Andrew Goldstein, Michael Lockard and Christine Magdo are in charge of related civil money laundering and forfeiture actions.
U.S. v. Raymond Bitar S1 Information
Former Chief Financial Officer Pleads Guilty to Federal Charge in Theft of More Than $1 Million from Non-ProfitActivities Took Place over Seven Years, with Money Being Used for Defendant’s Personal BenefitRead the Press Release
WASHINGTON – Zachery K. Shaw, 52, the former chief financial officer of a non-profit dedicated to youths and young adults, pled guilty today to a federal charge stemming from a seven-year scheme involving the theft of more than $1 million of organization funds, announced U.S. Attorney Ronald C. Machen Jr. and Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service.
Shaw, of Glenn Dale, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of theft of federal program funds. The Honorable John D. Bates scheduled sentencing for June 26, 2013. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, Shaw faces a likely range of 37 months to 46 months in prison and a fine of up to $75,000. As part of the plea agreement, Shaw has agreed to the entry of a forfeiture money judgment against him in the amount of $1,113,245.
According to a statement of offense signed by the government and the defendant, Shaw worked from 1993 through 2009 for Youth Services America (YSA), a non-profit with a mission to “improve communities by increasing the number and the diversity of young people, ages 5-25, serving in substantive roles.” The organization received federal funds for various purposes, including services for children and youth. Shaw began work as a part-time bookkeeper. In 1996, he was promoted to Director of Finance. He became Chief Financial Officer in or around 2006.
From in or approximately 2002 until the summer of 2009, when he left YSA, Shaw transferred about $1,113,245 of the non-profit’s funds to pay personal bills and make purchases for his benefit and the benefit of friends. The money was transferred through dozens of fraudulent wire transfers and forged checks to Shaw’s personal bank account, bank accounts of organizations he controlled, and credit card companies from which Shaw had obtained credit cards.
Among other things, Shaw caused YSA to transfer $289,829 to a fictitious company that he created, called “A Few Good Brothers,” or “AFGB.” AFGB did not have any employees, and was used to hold parties and promote events at night clubs. Additionally, and without YSA approval, Shaw used $26,561 of the non-profit’s money to pay for season tickets from 2002 until 2007 for the Washington Wizards professional basketball games.
“Zachery Shaw abused his position of trust to steal more than $1 million from programs for our youth,” said U.S. Attorney Machen. “He committed fraud dozens of times over seven years in an effort to enrich himself at the expense of our kids. His prosecution demonstrates our commitment to protecting charities and their donors from con men.”
In announcing the plea, U.S. Attorney Machen and Inspector in Charge Barksdale commended the work of the Special Agents who investigated the case from the Washington Division of the U.S. Postal Inspection Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Daniel Friedman, Mary Chris Dobbie, and Jonathan P. Hooks; Paralegal Specialist Diane Hayes, and Assistant U.S. Attorney James E. Smith, who is prosecuting the matter.
13-135Former Bank Ceo Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
Jackson, Miss. -- Larry Barnette Hill, 58, of Meadville, Mississippi, pled guilty today in U.S. District Court to bank fraud and money laundering, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced.
Larry Barnette Hill served as CEO of People’s Bank of the South in Bude, Mississippi. From 2004 through 2012, he fraudulently withdrew money from the bank’s Payroll Clearing Account and deposited those funds into the bank accounts of his family members and into a “shell” bank account he created for his personal benefit and the benefit of others. Hill also used the bank’s credit card for personal expenses without the bank’s authorization, and took third-party checks issued in the name of People’s Bank to make payments on a personal loan that he held at another bank and to embezzle funds into other accounts he owned and controlled for his own benefit or the benefit of others.
Hill concealed his fraudulent activities by creating false general ledger tickets which appeared to be for bank expenses in order to disguise his fraudulent activities within the budget of the bank. He also falsely inflated the bank’s budget each month in order to disguise additional money he was embezzling.
The total amount of loss in this case is still being calculated, but is estimated to be from $600,000 to over $1 million.
Hill will be sentenced by U.S. District Judge Tom Lee on July 11, 2013, at 9:30 a.m.
The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine, and the maximum penalty for money laundering is 20 years in prison and a $500,000 fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.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.
Federal, City, and Local Officials Unveil Decal for Sexual Assault Awareness MonthRead the Press Release
Law enforcement vehicles to display “End Sexual Abuse” teal decals throughout the month of April
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, members of the law enforcement community, and REACH Rape Crisis Program advocates gathered today at the Robert C. Byrd Federal Courthouse in Charleston to unveil a special magnetic decal in recognition of Sexual Assault Awareness Month. The ceremony was held in conjunction with Sexual Assault Awareness and Prevention Month, which is recognized nationally during the month of April.
“Sexual assault and rape are terrible crimes that affect people of every age and background,” said U.S. Attorney Booth Goodwin, “These acts damage the lives of their victims irrevocably. Entire families can be turned upside down in the blink of an eye. Victims often spend the rest of their lives trying to pick up the broken pieces.”
During today’s ceremony, U.S. Attorney Goodwin said that the magnetic decals are small, yet enormously symbolic. “The magnetic decals symbolize our collective commitment to fighting sexual assault.”
According to statistics, nearly 1 in 5 women (18.3%) and 1 in 71 men (1.4%) in the United States have been raped at some time in their lives, representing approximately 22 million women and 1.6 million men. When all types of sexual violence are included, the number grows to nearly half of all women and one in five men experiencing sexual violence in their lifetime.
Statistics further reveal that child sexual abuse affects over one quarter of the national population. It is estimated that one in four girls and one in six boys will be sexually abused by age 18.
The United States Attorney’s Office for the Southern District of West Virginia is committed to prosecuting individuals who sexually exploit children, and also works diligently to identify and rescue victims as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice.
U.S. Attorney Goodwin said, “Behind every piece of child pornography traded over the Internet, there is a child somewhere who has been exploited in the most heinous way imaginable. People who download these pictures encourage that exploitation, and I will be relentless in prosecuting them.”
The magnetic decals unveiled at today’s ceremony will be prominently displayed on law enforcement vehicles and cruisers throughout the month of April.
For more information on the “End Sexual Abuse” magnetic ribbons or how they can be obtained, please contact REACH director Marla Willcox Eddy at: [email protected] or 304-340-3676.
Photo: U.S. Attorney Booth Goodwin led today's unveiling ceremony held at the Robert C. Byrd Federal Courthouse. The teal decal was created in recognition of Sexual Assault Awareness month.
Click here to view photo
Federal Inmate Pleads Guilty in Pennsylvania to Prison MurderRead the Press Release
A federal inmate pleaded guilty today for the violent murder of a fellow inmate in Pennsylvania’s Allenwood Correctional Complex, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith.
Ritz D. Williams Jr., 32, of Gila River Indian Reservation, Sacaton, Ariz., pleaded guilty before Chief U.S. District Judge Yvette Kane to one count of first degree murder and possession of a weapon.
Williams and his co-conspirator Shawn Cooya were indicted by a federal grand jury in February 2008 and a superseding indictment was returned in July 2009.
According to court documents, Williams and Cooya aided each other in the premeditated murder of inmate Alvin Allery. On Sept. 28, 2005, Williams and Cooya stabbed Allery 10 times with a homemade knife and repeatedly kicked him in the head and torso, which resulted in Allery’s death.
On Jan. 8, 2013, Cooya pleaded guilty to one count of first degree murder. On March 18, 2013, he was sentenced to serve life in prison without the possibility of parole.
As a result of Williams’s plea, he faces a mandatory sentence of life in prison. His sentencing has been scheduled for May 15, 2013, in the Middle District of Pennsylvania.
The case is being prosecuted by Assistant U.S. Attorneys Wayne P. Samuelson and Michelle Olshefski of the Middle District of Pennsylvania and Trial Attorneys Julie B. Mosley and Mike Warbel of the Criminal Division’s Capital Case Unit (CCU) and former CCU Trial Attorney C.J. Williams. The case was investigated by the Bureau of Prisons and the FBI.
Federal Inmate Pleads Guilty in Pennsylvania to Prison MurderRead the Press Release
A federal inmate pleaded guilty today for the violent murder of a fellow inmate in Pennsylvania’s Allenwood Correctional Complex, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith.
Ritz D. Williams Jr., 32, of Gila River Indian Reservation, Sacaton, Ariz., pleaded guilty before Chief U.S. District Judge Yvette Kane to one count of first degree murder and possession of a weapon.
Williams and his co-conspirator Shawn Cooya were indicted by a federal grand jury in February 2008 and a superseding indictment was returned in July 2009.
According to court documents, Williams and Cooya aided each other in the premeditated murder of inmate Alvin Allery. On Sept. 28, 2005, Williams and Cooya stabbed Allery 10 times with a homemade knife and repeatedly kicked him in the head and torso, which resulted in Allery’s death.
On Jan. 8, 2013, Cooya pleaded guilty to one count of first degree murder. On March 18, 2013, he was sentenced to serve life in prison without the possibility of parole.
As a result of Williams’s plea, he faces a mandatory sentence of life in prison. His sentencing has been scheduled for May 15, 2013, in the Middle District of Pennsylvania.
The case is being prosecuted by Assistant U.S. Attorneys Wayne P. Samuelson and Michelle Olshefski of the Middle District of Pennsylvania and Trial Attorneys Julie B. Mosley and Mike Warbel of the Criminal Division’s Capital Case Unit (CCU) and former CCU Trial Attorney C.J. Williams. The case was investigated by the Bureau of Prisons and the FBI.District Man Pleads Guilty to Voluntary Manslaughter While Armed in 2009 Shooting in Northeast Washington-Technology Provided Key Evidence in Case-Read the Press Release
WASHINGTON – Terrell Patton, 20, of Washington, D.C., pled guilty today to a charge of voluntary manslaughter while armed stemming from a slaying that took place in October 2009 in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Patton entered the plea in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a sentence of up to 11 years of incarceration. The Honorable Robert E. Morin scheduled sentencing for June 21, 2013.
According to the government’s evidence, on Oct. 29, 2009, at about 10:30 p.m., Patton, also, known as, “Fatman,” was observed with the victim, Deuante Ray, 20, in the area of the 1200 block of 49th Place NE. Another individual observed Patton in possession of a nine-millimeter handgun. A third person noted that the defendant was angry with Mr. Ray because he believed that Mr. Ray had taken his pack of Ecstasy pills valued at roughly $80.
At approximately midnight, Patton called Mr. Ray’s friend and asked to talk to Mr. Ray. He told Mr. Ray to meet him on 49th Street. Mr. Ray was last seen riding a bicycle and entering a rear alley off the 1100 block of 48th Street NE with Patton.
By Patton’s own admissions, he permitted Mr. Ray to use his cellphone to call Mr. Ray’s girlfriend. Mr. Ray made one call to his girlfriend at 12:20 a.m. on Oct. 30, 2009, and a second call at 12:30 a.m., which ended at 12:35 a.m. Phone records and other witnesses confirm that Mr. Ray had used Patton’s telephone.
ShotSpotter technology recorded gunfire at 12:35:15 a.m. in the rear alley. A witness heard shots and observed a thin person and a heavier individual in the alley. This witness called 911 at 12:36 a.m. This witness also saw the heavier individual, believed to be Patton, take a bike. The witness was unable to make any identification.
The Metropolitan Police Department (MPD) arrived at approximately 12:40 a.m. and found Mr. Ray’s body. He had been shot at close range in the head and also in the chest with a nine-millimeter weapon. He was found with his pants down, and his pockets turned out. Mr. Ray was known to typically carry a wallet, and none was found. His bike also was missing.
Patton was arrested in Washington, D.C. on July 2, 2011 and has been incarcerated since.
In announcing the plea, U.S. Attorney Machen praised the work of the MPD detectives and officers who investigated the case. He also acknowledged the effort of those who worked on the case from the U.S. Attorney’s office, including Paralegal Specialists Kelly Blakeney, Fern Rhedrick and Phaylyn Hunt; Investigators Stephen Cohen, Durand Odom and Tommy Miller; Victim/Witness Advocate Marcia Rinker; Litigation Technology Specialist Leif Hickling, and Assistant U.S. Attorney David B. Goodhand of the Appellate Section. Finally, he commended the work of Cynthia G. Wright, of the Homicide Section, who prosecuted the case.
13-136Defendants Convicted After Jury Trial of Trafficking Contraband CigarettesRead the Press Release
United States Attorney James L. Santelle announced today that on Friday, April 12, 2013, a federal jury in the Eastern District of Wisconsin found Shakil Wamiq, (age: 32), of Elgin, Illinois, and Mazher Ali Khan, (age: 49), of Evergreen Park, Illinois, guilty of contraband cigarette trafficking, a violation of Title 18, United States Code, Section 2342(a).
Wamiq, who was operating as Good Deal Wholesale, Inc., in Streamwood, Illinois, was convicted of four counts, and Khan, who was operating as MAK Distributors, Inc., in Mokena, Illinois, was convicted of three counts. Each offense is punishable by up to five years in prison and a $250,000 fine.
Wamiq and Khan where charged in a federal indictment that included seven other defendants. They are Mohammad Uddin, (age: 30), of Naperville, Illinois; Mohammed Mazheruddin, (age: 41), formerly of Milwaukee, now residing in Texas; Adil Majid, (age: 54) of Bolingbrook, Illinois; Haroon Bheri, (age: 33), of Glendale Heights, Illinois; Maher Sunnakrot, (age: 38), of Worth, Illinois; and Farrukh Aslam, (age: 28), of Glendale Heights, Illinois. All other defendants except Aslam, who is a fugitive, resolved their cases prior to trial.
The Bureau of Alcohol, Tobacco, Firearms and Explosives initiated the year-long investigation based upon a complaint from a local citizen who alleged that his business was being financially undercut by persons who were dealing in untaxed tobacco products. The investigation included the use of an undercover warehouse in Milwaukee, and an undercover agent posing as a source of untaxed cigarettes. The defendants purchased untaxed cigarettes at the warehouse at a cost substantially below that of an authorized manufacturer, and they transported the cigarettes into Illinois, where they were further dispersed.
Under federal law, only certain categories of persons may possess cigarettes which do not bear a State tax stamp. Wamiq and Khan contended that their Illinois distributors’ licenses authorized them to purchase the cigarettes in Wisconsin and place them into commerce in Illinois.
Uddin, Mazharuddin, Majid, Bheri and Sunnakrot will be sentenced in June. Wamiq and Khan will be sentenced in July.
In announcing the guilty verdicts returned by the jury on Friday, United States Attorney Santelle commented: “This prosecution and the investigation on which it was premised reflects the continuing, focused commitment of federal law enforcement to identify, pursue, and bring to justice those individuals who not only engage in the unlawful trafficking of contraband but do so in a manner that compromises the legitimate business operations of law-abiding entrepreneurs. In concert with the prosecuting attorneys and professional staff of my office, the ATF Special Agents investigated, developed, and presented compelling evidence of criminal behavior here in Wisconsin and in Illinois, and Friday’s verdict—along with the previous convictions of the other co-defendants—should serve as a deterrent to others who may consider like conduct.”
The case was prosecuted by Assistant United States Attorneys Carol L. Kraft and Laura S. Kwaterski and investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cuyahoga Falls Man Sentenced to Prison for Trafficking in Counterfeit PursesRead the Press Release
Ronald Jason Azar, age 34, of Cuyahoga Falls, Ohio, was sentenced to 18 months in prison in connection with his recent conviction for trafficking in more than $180,000 worth of counterfeit merchandise, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Azar pleaded guilty in October to a one-count indictment charging him with trafficking in merchandise containing counterfeit trademarks, logos or labels.
On or about April 27, 2011, Azar intentionally trafficked and attempted to traffic in approximately 104 counterfeit designer handbags which, if genuine, were valued at approximately $183,488, according to court documents.
The handbags included 12 Gucci, 23 Coach, 17 Louis Vuitton, five Versace, five Chanel, two Marc Jacobs, three Dooney & Burke, six Prada, eight Fendi, seven Chloe, seven Jimmy Choo and nine Dolce & Gabbana handbags, which contained counterfeit marks, logos, labels, hang tags, patches, stickers, emblems, holograms and packaging. The marks on the merchandise were identical to and substantially indistinguishable from marks used on genuine merchandise, and were in use and registered for such goods on the principle register of the United States Patent and Trademark Office, according to court documents.
The use of such counterfeit and spurious marks was likely to cause confusion, mistake or to deceive, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Robert W. Kern, Cybercrime Coordinator for the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Office Immigration and Customs Enforcement.
Creal Springs Man IndictedRead the Press Release
A Williamson County, Illinois, man was indicted on April 2, 2013, in an indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On April 8, 2013, Jeremieh L. Hodge, 32, of Creal Springs, was arraigned in United States District Court in Benton. The indictment alleged that the offense occurred between 2009 and March 2013, in Williamson, Saline, and Johnson Counties. At an April 9, 2013, hearing, Hodge was ordered released on bond pending a June 10, 2013, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Hodge faces a minimum of 5, to a maximum of 40 years in prison, a $5,000,000 fine, and 4 years of supervised release.
The ongoing investigation is being conducted by the Illinois State Police, Johnson County Sheriff’s Office, Williamson County Sheriff’s Office, and Jackson County Sheriff’s Office. The Creal Springs Police Department also assisted during the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Collinsville Man Sentenced for Firearm OffenseRead the Press Release
Duran L. Morgan, 27, from Collinsville, IL, was sentenced on April 12, 2013, in federal district court in East St. Louis, IL, on one count of unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Morgan was sentenced to 41 months in prison, three years of supervised release, fined $375 and ordered to pay $100 special assessment. Morgan, who previously pled guilty, admitted that a firearm recovered from a parked car belonged to him. Court proceedings revealed that law enforcement officers observed Morgan repeatedly bending towards the center of the front seat while apparently focusing on something under the seat. Upon approaching the car, police noticed a loaded semi-automatic weapon in plain view on the driver’s side floor of the vehicle. Morgan admitted that he had possessed a gun, knowing that he was a convicted felon and that it was illegal for him to have a firearm. The firearm was forfeited as a result of this case.
The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Special Assistant United States Attorney Matthew H. Brooks.
Chicago Leader of Romanian-Based Conspiracy That Obtained $1.6 Million in False Tax Refunds Sentenced to 85 Months in PrisonRead the Press Release
CHICAGO — The leader in Chicago of a Romanian-based international conspiracy to fraudulently obtain millions of U.S. tax dollars was sentenced to just over seven years in federal prison. The defendant, OVIDIU ISAC, oversaw and directed nearly two dozen co-defendants in the United States who used their bank accounts to receive fraudulent federal income tax refunds after overseas co-conspirators filed hundreds of false tax returns claiming refunds in the names of Romanian citizens who had visited the United States on exchange student visas.
At least 470 false tax returns, typically claiming refunds between $4,000 and $7,000, were filed and resulted in a loss of more than $1.6 million to the U.S. Treasury during the conspiracy that spanned three tax years between 2007 and 2009. The returns were filed in the names and social security numbers of individuals who had previously traveled to the United States on temporary student visas and had filed tax returns in the past, but who were likely no longer living in the U.S. nor filing a real return in their own name. Isac led and organized the coconspirators in Chicago and controlled the flow of money to his co-conspirators in Romania. On one occasion, Isac led a group of co-conspirators in physically attacking a group of individuals who were associated with someone who refused to pay Isac his cut of the proceeds.
Isac, 31, a Romanian citizen who lived in Skokie, was sentenced on Friday to 85 months in prison and ordered to pay restitution totaling $1,641,209 by U.S. District Judge Charles Norgle. Isac pleaded guilty in January to conspiracy to defraud the United States and theft of government funds. He will be subject to deportation after completing his sentence.
Isac was arrested in April 2010 and was among 24 defendants who were indicted in July that year for their roles in the conspiracy. Nineteen of the defendants have been convicted and sentenced, while five remaining co-defendants are fugitives.
Evidence in two companion cases showed that the fraudulent returns typically claimed large deductions for moving expenses, and the fraud was concealed by electronically submitting false wage and tax statements. The returns were filed in the names of real individuals and employers who likely were unaware that their identities and information were being misused. At least 200 bank accounts in the names of more than 75 individuals were used to receive and obtain the tax refund money triggered by the fraudulent returns.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division; and Gary Hartwig, Special Agent-in-Charge of Homeland Security Investigations (HSI) in Chicago.
The government was represented by Assistant U.S. Attorneys Matthew Burke, Jennie Levin and Julie Porter.
California Resident to Begin Serving Wire Fraud SentenceRead the Press Release
CONCORD, NH:- Sirous Sorat, 58, a California resident, self-surrendered today to the Federal Bureau of Prisons to begin serving a thirty-seven month sentence for wire fraud, announced United States Attorney John P. Kacavas.
The sentence stems from Sorat's conviction in the United States District Court for the District of New Hampshire for participating in a scheme to defraud companies that purchased fraudulent health insurance claims that Sorat represented were legitimate.
These claims were generated when Los Angeles area doctors purportedly gave workers compensation patients certain cream compound for joint and muscle pain. The government investigation revealed that, in fact, the doctors had not delivered the creams to the patients but Sorat nevertheless claimed to have purchased the resulting health insurance claims from the doctors. Sorat then sold the purported insurance claims to companies in Massachusetts and Florida, who, through a New Hampshire billing agent, submitted the claims to various insurance companies for potential reimbursement.
In addition to his jail sentence, Sorat was ordered to pay forfeiture and restitution of over $2.3 million.
The case was investigated by the Federal Bureau of Investigations and prosecuted by Assistant United States Attorneys for the District of New Hampshire Michael Gunnison and Seth Aframe.Armed Bank Robbery Sends Final Two to PrisonRead the Press Release
HOUSTON – The final two defendants convicted in the armed robbery and attempted robbery of two local banks have been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Andrea Steptore, 30, Odis Darrell Wheeler, 21, both of Houston, had previously pleaded guilty to aiding and abetting aggravated bank robbery. Steptore was further convicted of brandishing a firearm during a crime of violence.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty pleas, sentenced Steptore to a sentence of 67 months for the underlying bank robbery charge, but also received a mandatory seven years for the firearms charge which must be served consecutively for a total sentence of 151 months. Wheeler was ordered to serve a 46-month-term of imprisonment. Both will also serve a term of three years on supervised release following completion of their sentences.
On Sept. 9, 2010, Steptore and Barry Ogilvie, 37, of Houston, were armed with firearms and robbed the Prosperity Bank located on the 2800 block of F.M. 1960 East in Houston. During the robbery, Ogilvie shot two rounds of ammunition into a wall. No one was injured, but behind the wall was a drive-thru teller stand. Zachary Ellis, 48, of Houston, had selected the bank, scouted it prior to the robbery and shared in the proceeds.
Less than two weeks later, Ogilvie and Steptore attempted to rob the Vista Bank on the 14500 block of Northwest Freeway in Houston. They were both armed with semi-automatic pistols and wore masks. When they approached the bank, an off-duty police officer, who was working security at the bank, saw them and began firing at them. Steptore was able to flee in the getaway vehicle driven by a third individual, but Ogilvie was arrested. Odis Darrell Wheeler, 21, of Houston, stole a car which was used in the robbery and waited around the corner in a switch vehicle. Ellis had again selected the bank, told his co-conspirators he had scouted it prior to the robbery and planned to share in the proceeds.
Ogilvie and Ellis also pleaded guilty and were previously sentenced to 198 and 97 months, respectively. Steptore, Ogilvie and Ellis were further ordered to pay restitution to Prosperity Bank.
The case was investigated by FBI Houston Bank Robbery Task Force. Assistant United States Attorney Jennie Basile is prosecuting the case.