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Wednesday 27 February 2013
Former Director for Chicago Black Nurses Association Pleads Guilty to Fraud SchemeRead the Press Release
Springfield, Ill. – A former program director for the Chicago Chapter of the National Black Nurses Association, Margaret A. Davis, 62, entered pleas of guilty this afternoon to mail fraud and money laundering in a scheme that defrauded state grant programs from 2005 to 2009. Davis appeared before U.S. District Judge Sue E. Myerscough, who scheduled sentencing for July 22, 2013. According to terms of the conditional plea agreement, Davis faces a sentence of no more than 41 months in prison. Davis may also be ordered to pay restitution. Davis was allowed to remain on bond pending sentencing.
In court documents and during today’s hearing, Davis admitted that from December 2005 to June 2009, she solicited and received 15 different grants and contracts totaling $1,062,000 on behalf of the Chicago Chapter of the Black Nurses Association from Illinois state agencies including the Department of Commerce and Economic Opportunity; Department of Public Health; Department of Human Services; and the State Board of Education. Davis represented that the grant funds and contracts would be used to conduct numerous healthcare advocacy-related and nursing student assistance programs, including recruitment of 200 students from one Illinois senatorial district to participate in the “Young Enough to Make a Difference Project;” educational activities to promote public awareness of HIV/AIDS, breast and cervical cancer, prostate cancer, and pandemic flu; and, implementation of two nursing student internship programs.
Instead, Davis admitted that she, with the assistance of former chapter treasurer Tonja Cook, 45, commingled and converted a substantial amount of funds to Davis’s personal use and to Davis’s family members, friends and associates; to a not-for-profit healthcare advocacy organization known as the African American Aids Network, which Davis controlled; and, for the personal use and benefit of Cook.
Davis admitted that more than $200,000 in grant funds was converted to cash by cashing numerous checks at a currency exchange located near Davis’s residence. Further, Davis admitted that she caused more than $100,000 in grant funds to be made payable to AAAN by failing to disclose her interest in the organization to the State of Illinois, concealed the amount of grant and contract funds to be disbursed to AAAN, and forged the name of a co-signatory on AAAN bank account checks. Davis admitted that she deposited $125,000 in grant proceeds, converted to cash, into her personal bank account and used the funds for payment of personal expenses, including payments for her mortgage, utility and credit card expenses.
Sentencing for Cook is currently scheduled for Mar. 25, 2013; however, a motion to continue the sentencing date is pending. On Nov. 26, 2012, Cook entered a plea of guilty to a single count of mail fraud related to the scheme to defraud. Cook remains on bond pending sentencing.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and the Illinois Secretary of State Office of Inspector General. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Former Correctional Officer Pleads Guilty to Conspiring to Assault an InmateRead the Press Release
Dustin Norris, a former correctional officer at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., pleaded guilty to conspiring with other RCI officers to assault an inmate at the state prison on March 9, 2008.
Norris, 28, pleaded guilty to conspiring with other RCI officers to beat K.D. on March 9, 2008.
According to court documents filed in connection with his guilty plea, Norris and other officers met at RCI and agreed to assault K.D. in retaliation for a prior incident involving K.D. and another officer. Norris and four other correctional officers then entered K.D.’s cell and assaulted inmate K.D., while a fifth officer, Ryan Lohr, watched from the cell door. The officers beat inmate K.D. even though the inmate already had visible facial injuries. Following this assault, K.D. was transported to a local hospital.
Norris further admitted that he lied to state investigators when he was asked about the injuries K.D. suffered while held in a single-occupant segregation cell.
“Mr. Norris has admitted that he and other officers used unjustified and unlawful force to punish an inmate,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those officers who violate the constitutional rights of inmates.”
Norris faces a maximum penalty of 5 years in prison and a fine of $250,000. Sentencing is set for Oct. 28, 2013, before U.S. District Judge James K. Bredar.
In a related case, former RCI Correctional Officer Ryan Lohr entered a guilty plea on Jan. 30, 2013, also before Judge Bredar.
The investigation by the Frederick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the District of Maryland.
Florida Couple Pleads Guilty for Roles in Procurement Contract Bribery SchemeRead the Press Release
SALT LAKE CITY – A Florida couple who owned a military contracting company pleaded guilty Wednesday in federal court in Salt Lake City for their roles in a bribery and fraud scheme involving federal procurement contracts, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow for the District of Utah.
Sylvester Zugrav, 70, of Sarasota, Fla., pleaded guilty to conspiracy to commit bribery and procurement fraud. His wife, Maria Zugrav, 67, also of Sarasota, pleaded guilty to misprision of a felony related to her efforts to conceal the conspiracy. The Zugravs were charged in an indictment, returned on Oct. 12, 2011, along with Jose Mendez, 51, of Farr West, Utah,a procurement program manager for the U.S. Air Force Foreign Materials Acquisition Support Office (FMASO) at Hill Air Force Base, in Ogden, Utah.
Mendez was charged in the indictment with conspiracy, bribery and procurement fraud, and has since pleaded guilty to all charges and agreed to forfeit more than $180,000 he received as part of the bribery scheme and awaits sentencing.
According to court documents, the Zugravs owned Atlas International Trading Company, a business that contracted to provide foreign military materials to the U.S. government through FMASO.
In his plea agreement, Sylvester Zugrav admitted that, from 2008 through August 2011, he gave Mendez more than $180,000 in bribe payments, and offered Mendez more than $1.05 million in additional bribe payments contingent upon Atlas’s receipt of future contracts with FMASO. In exchange for Sylvester Zugrav’s bribe payments and offers, Mendez ensured that Atlas and Sylvester Zugrav received favorable treatment in connection with procurement contracts, including, among other things, assisting Atlas in obtaining and maintaining procurement contracts; assisting Atlas in receiving payments on such contracts; and providing Atlas with contract bid or proposal information or source selection information before the award of procurement contracts.
In her plea agreement, Maria Zugrav admitted that she was aware of Sylvester Zugrav’s bribe payments to Mendez and assisted with concealment of the crime. According to court records, Sylvester Zugrav provided bribe payments to Mendez in three ways: cash payments via Federal Express to Mendez’s residential address; in-person payments of cash and other things of value; and electronic wire transfers to a bank account in Mexico opened by and in the name of Mendez’s cousin. Between November 2009 and August 2011, Sylvester Zugrav sent nine FedEx packages to Mendez’s home address. Each package contained $5,000 in cash, except the last package, containing $3,000, which was seized by law enforcement. Maria Zugrav assisted her husband and Mendez’s bribe scheme by limiting cash withdrawals from Atlas’ bank account to not more than $5,000 to avoid scrutiny by banking officials and law enforcement.
According to the plea documents, on multiple occasions when Sylvester Zugrav and Mendez traveled to the same location, Sylvester Zugrav would give Mendez cash payments and other things of value. From 2008 through August 2011, Sylvester Zugrav gave Mendez seven in-person cash payments ranging from $500 to $10,000, and purchased a laptop computer and software package worth over $2,900.As Mendez admitted, during the course of the corrupt scheme, Mendez opened a foreign bank account so that Sylvester Zugrav could pay Mendez larger bribe payments. Mendez asked his cousin in Mexico to open an account there. After the account was opened by Mendez's cousin, Maria Zugrav made wire transfers to the bank account located in Mexico in the name of Mendez's cousin to avoid detection of the larger bribe payments by law enforcement. From 2008 through August 2011, Maria Zugrav sent 10 wire transfers to the Mexico account ranging from $350 to $26,700.
Court records also describe additional steps taken to conceal the bribery scheme, including creating and using covert e-mail accounts, using encrypted documents, adopting false names and using code words. For instance, to avoid detection of their e-mail communications, Sylvester Zugrav and Mendez established e-mail accounts to be used only to communicate requests and offers for bribe payments. Sylvester Zugrav and Mendez also created password-protected documents for e-mail communications, and used code words and false names. Within the encrypted documents, Mendez adopted the moniker “Chuco” and Sylvester Zugrav used the codename “Jugo.” They referred to cash as “literature.”
Sylvester Zugrav faces a maximum potential penalty of five years in prison and a $250,000 fine on the conspiracy count, and Maria Zugrav faces a maximum penalty of three years in prison and a $250,000 fine on the misprision count. Sentencing for the Zugravs is scheduled for June 19, 2013.
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case is being prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Carlos A. Esqueda for the District of Utah and Trial Attorney Deborah Curtis of the National Security Division’s Counterespionage Section.
Firearm Possession Lands Mexican Citizen in Federal PrisonRead the Press Release
BROWNSVILLE, Texas – Luis Ivan Nino-Duenes, 28, of Control, Tamaulipas, Mexico, has been sentenced to prison following his convicted of being an alien in possession of a firearm, United States Attorney Kenneth Magidson announced today. Nino-Duenes pleaded guilty on June 19, 2012, immediately prior to jury selection in his trial.
Yesterday, U.S. District Court Judge Hilda G. Tagle, who accepted the guilty plea, handed him a 60-month prison term and three years of supervised release after he completes his term of incarceration. At the hearing yesterday, additional evidence was presented including that Nino-Durenes was a member of the Gulf Cartel for three years prior to his arrest and an enforcer for Plaza Boss Jose Luis Zuniga-Hernandez. Evidence was also presented that while in jail on this case, Nino-Duenes joined the prison gang known at the “Partido Revolutionario Mijicano” (PRM). The court found that he obstructed justice by joining the PRM and attempting to intimidate a witness.
At sentencing, Nino-Duenes argued that he did not join the PRM or obstruct justice. He argued that the federal sentencing guidelines called for a sentence of 21 months given he pleaded guilty and accepted responsibility for his crime.
In handing down the sentence, Judge Tagle indicated the court would issue a non-guideline sentence, noting the defendant’s flight from a gunfight in Mexico was an example of spill over violence. The court stated that “crime begins over there (Mexico) and ends over here (U.S).”
At the time of his guilty plea, Nino-Duenes admitted he had entered the United States illegally and that at the time of his arrest he was in possession of a customized gold, diamond and ruby encrusted Colt 38 Super handgun.
Nino-Duenes has been in custody since his arrest on Oct. 26, 2011, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorney Angel Castro.
Federal Grand Jury Indicts El Paso Attorney Marco Delgado in Connection with A Multi-million Dollar Fraud/Money Laundering SchemeRead the Press Release
In El Paso today, a federal grand jury returned a 17-count indictment charging 46-year-old El Paso attorney Marco Antonio Delgado a.k.a. Marco Delgado Licon in connection with a multi-million dollar wire fraud and money laundering scheme announced United States Attorney Robert Pitman and Homeland Security Investigations Special Agent in Charge Dennis Ulrich.
The indictment charges Delgado with two wire fraud counts and 15 money laundering counts. According to the indictment, in January 2010, Delgado, as a legal representative of FGG Enterprises, Inc. (FGG) signed a $121 million contract between FGG and the Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, for the acquisition and installation of equipment at the Agua Prieta II power plant located in Agua Prieta, Sonora, Mexico. Pursuant to the agreement, payments from CFE to FGG were to be deposited into a FGG bank account located in El Paso. The indictment alleges that Delgado, for the purpose of personal enrichment and without the consent of the sole owner of FGG, submitted a fraudulent written request to the Banco Nacional de Comercio Exterior in Mexico which caused two wire transfers—one on March 8, 2010, in the amount of $20 million and one on July 6, 2010, in the amount of $12 million—to be deposited into a bank account he controlled located in the Turks and Caicos Islands.
The indictment further alleges the Delgado subsequently wire transferred approximately $1.15 million
from the Turks and Caicos Island bank account to bank accounts in El Paso, Taos, NM; and Pittsburg, PA, in order to conceal or disguise the nature, location source ownership or the control of the proceeds from his scheme.
The indictment also contains a notice of criminal forfeiture in which the Government is seeking the forfeiture of proceeds traceable to the indicted offenses, namely, $32 million in U.S. Currency, the defendant’s residence and furnishings in El Paso and condominium in Taos, NM; plus two vehicles.
“HSI investigates crimes and traces illegal activity around the globe, and as this case shows, it doesn’t matter in which countries individuals commit crimes,” said Dennis A. Ulrich, special agent in charge for HSI El Paso. “When individuals steal money from foreign governments, and attempt to use the United States infrastructure to launder those funds, HSI is committed to stop that activity.”
Upon conviction, Delgado faces up 20 years in federal prison per count. Delgado has remained in federal
custody since his arrest in November 2012 based on an unrelated federal money laundering conspiracy charge contained in a separate indictment (EP12CR2106). That indictment alleges that Delgado is responsible for attempting to launder approximately $1 million in alleged drug distribution proceeds.
This indictment resulted from an investigation by the Homeland Security Investigations (HSI). Assistant
United States Attorney Juanita Fielden is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is
presumed innocent until proven guilty in a court of law.Fayetteville Woman Sentenced for Producing Child PornographyRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court on February 22, 2013, in Wilmington, North Carolina, CATINA MARTELL, 38, of Fayetteville, North Carolina, was sentenced by Senior United States District Court Judge James C. Fox to 360 months imprisonment followed by a lifetime of supervised release.
On November 5, 2012, MARTELL pled guilty to one count of manufacturing/producing child pornography in violation of Title 18, United States Code, Section 2251(a) and (e).
“This case shows our ongoing determination to protect children in our community from those who prey on their innocence”, stated Mr. Walker.
Fayetteville Police discovered that in August of 2011, MARTELL had drugged a child and used the child to produce images of child pornography while the child was unconscious. Fayetteville Police Officers conducted a forensics review of MARTELL’S computer and found numerous images of child pornography. Fayetteville Police then worked with Homeland Security Investigations to complete the investigation and confirm by a forensic examination of computer equipment MARTELL’S criminal conduct. The Immigration and Custom’s Enforcement, Homeland Security Investigations Office in Raleigh was contacted because it was determined that MARTELL was sharing the images internationally.
"This sentence serves as an unfortunate reminder that women can be involved in these sickening crimes, too,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “While law enforcement agencies like HSI and the Fayetteville Police Department will continue to partner together to identify and arrest child predators, the sexual exploitation of children in our society is a growing problem that must be addressed by all levels of our communities."
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the Fayetteville Police Department, Immigration and Customs Enforcement-Homeland Security Investigations (HSI). Assistant United States Attorneys Jay Exum and Leslie K. Cooley prosecuted this case for the United States, with the support and assistance of the Cumberland County District Attorney’s Office.
Eagle Pass Police Officer Enters Guilty Plea in Connection with Stolen Firearm CaseRead the Press Release
In Del Rio, 40-year-old Eagle Pass police officer Eriberto Leija faces up to ten years in federal prison and a
maximum $250,000 fine after pleading guilty this afternoon to one count of possession of a stolen firearm announce United States Attorney Robert Pitman and FBI Special Agent In Charge Armando Fernandez.
Appearing before United States Magistrate Judge Collis White, Leija admitted that on July 15, 2012, he
possessed a stolen firearm, namely an M1 .30 caliber rifle with a folding stock. According to the factual basis filed in the case, Leija claimed to have discovered the firearm in a vacant lot in Eagle Pass while investigating a drive-by shooting incident. Furthermore, Leija admitted to taking a picture of it, then sending that picture to a co-worker in an attempt to sell the firearm for $500. The factual basis further states that on the following morning, Leija contacted EPPD dispatch and requested a firearms check through the NCIC database to determine if the rifle was stolen. The query returned a positive hit indicating that the weapon had been stolen. During questioning by EPPD personnel, Leija stated that he was not in possession of the firearm, that it was in Mexico, and that he queried it as a favor to a Mexican Federal Police officer.
The factual basis also states that Leija attempted to cover up the fact that he knowingly was in possession of a stolen firearm by soliciting a Mexico Federal Police officer to create a false document purporting to transfer the custody of the stolen firearm. When confronted by authorities with the solicitation and photo he sent to his coworker, Leija admitted that he lied about the scheme and the fact that the weapon had been in his possession the entire time.
Leija is currently on bond pending sentencing. Sentencing has yet to be scheduled.
This investigation was conducted by the Federal Bureau of Investigation together with the Eagle Pass Police Department. Assistant United States Attorney Jay Hulings is prosecuting this case on behalf of the
Government.Eagle Butte Woman Indicted for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota woman has been indicted by a federal grand jury for Child Abuse.
Alex White Eyes, age 23, was indicted by a federal grand jury on February 13, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 19, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 15 years of custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered. The charge is merely an accusation, and White Eyes is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case. White Eyes was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Indicted for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Child Abuse.
Allen White, a/k/a AJ White, age 24, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 15 years of custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered. The charge is merely an accusation, and White is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case. White was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Indicted for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Child Abuse.
David Roberts, Jr., age 30, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 15 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered. The charge is merely an accusation, and Roberts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case. Roberts was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Indicated for BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury for Third Degree Burglary.
Jake Morrison, age 31, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years in custody, a $250,000, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
The charge relates to a January 6, 2013 alleged break-in at a downtown business in Timber Lake. The charge is merely an accusation, and Morrison is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case. Morrison was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Eagle Butte Man Convicted of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Leon Donald Farlee, age 31, of Eagle Butte, South Dakota was convicted on February 22, 2013 of one count of Assault with a Dangerous Weapon and one count of Assault Resulting in Serious Bodily Injury. The guilty verdicts followed a four-day federal jury trial. Each charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
Farlee was indicted by a federal grand jury in April 2012. The convictions were the result of an incident that occurred in Eagle Butte in March 2012, when the defendant assaulted a 62-year-old man from Dupree by kicking him with cowboy boots and causing serious bodily injury.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. It was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Sentencing has been set for May 13, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Eagle Butte Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man has been indicted by a federal grand jury.
Albert Spotted Bear, age 55, was indicted by a federal grand jury on February 13, 2013 for Failure to Register as a Sex Offender. Spotted Bear appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; a mandatory minimum period of 5 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charge is merely an accusation, and Spotted Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Spotted Bear was released on bond pending trial. A trial date has not been set.
Doctor Pleads Guilty in White Plains Federal Court to Illegal Distribution of OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian C. Crowell, the Special-Agent-in-Charge of the New York Division of the Drug Enforcement Administration (“DEA”), announced today that FELIX RODRIGUEZ, a licensed medical doctor, pled guilty to a one-count Information charging RODRIGUEZ with distribution of more than 1,000 pills of Oxycodone, a Schedule II controlled substance. RODRIGUEZ pled guilty today in White Plains federal court before U.S. District Judge Kenneth M. Karas, who set a sentencing date for May 20, 2013.
Manhattan U.S. Attorney Preet Bharara stated: “This doctor took an oath to do no harm and then violated his oath by using his position of trust to distribute Oxycodone outside the scope of his professional medical practice. The abuse of diverted prescription pain medication is the fastest growing drug problem in our country. We will continue to work with federal, state, and local law enforcement organizations to identify and investigate those responsible at all levels.”
DEA Special-Agent-in-Charge Brian C. Crowell stated: “Felix Rodriguez should not be called a doctor by his peers or patients for illegally distributing prescriptions for pain killers to individuals he never examined. Rodriguez made a deal with the devil and profited by the sale of powerful pain medication for illegitimate use. According to the Centers for Disease Control and Prevention painkillers now take the lives of more Americans than heroin and cocaine combined, and since 2008 drug-induced deaths have outstripped those from traffic accidents. Federal, State and Local law enforcement will not tolerate any illegal drug distribution that puts our community in peril.”
According to the allegations in the Complaint and Information filed in White Plains federal court:
From May 2010 through February 2011, FELIX RODRIGUEZ, a doctor who worked out of a medical office in Manhattan, provided Oxycodone prescriptions to individuals who he had never met or examined. When RODRIGUEZ wrote these prescriptions, he knew that by doing so he was violating the law and generally accepted medical practice. Oxycodone is a powerful painkiller with a high potential for addiction and abuse.
FELIX RODRIGUEZ, 52, of Bronx, New York, is a medical doctor who practiced in Manhattan, New York. RODRIGUEZ faces a maximum term of imprisonment of 20 years.
Mr. Bharara praised the efforts of the DEA’s New York City Tactical Diversion Squad; comprised of agents and officers from the DEA, the New York City Police Department, and the New York State Department of Financial Services, and the Westchester County Department of Public Safety. He also praised the assistance of the Westchester County District Attorney’s Office, the U.S. Marshals Service, the New York State Police, the Yonkers Police Department, and Mount Vernon Police Department in this case.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey Alberts and Abigail S. Kurland are in charge of the prosecution.
Rodriguez, Felix Information
Detroit Preparer Charged with Preparing False Tax ReturnsRead the Press Release
Matthew Bender, a paid preparer of tax returns residing in Detroit, was charged in a superseding indictment with preparing false tax returns and tax obstruction, the Justice Department, Internal Revenue Service (IRS), and the Treasury Inspector General for Tax Administration (TIGTA) announced today.
Bender had been arrested on a portion of those charges on January 10, 2013. The superseding indictment charges Bender with 16 counts of assisting in the presentation of false tax returns to the IRS along with one count of corruptly endeavoring to obstruct the due administration of the Internal Revenue laws.
According to the superseding indictment, between 2004 and 2012, Bender prepared returns for taxpayers that falsely claimed refunds and contained false deductions and tax withholdings. The superseding indictment also alleges that Bender filed false tax returns for himself for 2007 and 2009 and failed to file his own tax returns for 2003, 2004, 2005, 2006, 2008, 2010, and 2011.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a potential maximum sentence of three years in prison and a $250,000 fine on each count.
This case was investigated by special agents of IRS-Criminal Investigation and TIGTA and is being prosecuted by Trial Attorneys Jeffrey McLellan and Kenneth Vert of the Justice Department’s Tax Division.
Crow Creek Woman Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Crow Creek, South Dakota woman convicted of Distribution of a Controlled Substance was sentenced on February 20, 2013 by U.S. District Judge Roberto A. Lange. Buffy Dion, age 30, was sentenced to 2 months of custody and 6 months of home confinement thereafter with 3 years of supervised release.
Dion was indicted by a federal grand jury on July 18, 2012. The conviction stems from an incident occurring on April 13, 2011 wherein an undercover agent purchased 12 marijuana cigarettes from Dion’s residence. The undercover agent also purchased 4 grams of methamphetamine from Dion and negotiated a future purchase of one pound of marijuana.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. Dion was released but needs to self-report by February 27, 2013.
Colorado U.S. Attorney John Walsh Testifies Before U.S. Senate Judiciary Committee in Support of Proposed Assault Weapon and High Capacity Magazine BansRead the Press Release
DENVER – Colorado United States Attorney John Walsh this morning appeared before the United States Senate Judiciary Committee, where he testified on behalf of the Department of Justice in support of the proposed Assault Weapon ban and High Capacity Magazine Ban. The hearing was entitled “Hearing on the assault weapon ban of 2013.”
During his testimony, U.S. Attorney Walsh addressed the Assault Weapons Ban and the High-Capacity Magazine Ban. Walsh’s testimony can be found attached to this document. A video of the hearing can be found at: http://www.c-span.org/Events/Senate-Judiciary-Cmte-Looks-at-Assault-Weapons-Ban/10737438374-1/
California Woman Convicted for Impersonating<br /> Congressional Aide to Deceive Tax ClientRead the Press Release
The operator of a California-based tax consulting business has been convicted by a federal jury in Fresno, Calif. for impersonating an aide to a U.S. Congressman in order to deceive a client, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Susan Tomsha-Miguel, 52, of Atwater, Calif., was convicted late yesterday, Feb. 26, 2013, of the sole count in the indictment against her: impersonating an officer or employee of the United States. The jury deliberated for only 15 minutes before returning a guilty verdict.
As the evidence at trial showed, Tomsha-Miguel operated a tax consulting and bookkeeping business in Atwater. A client, who owned a commercial business in Merced, Calif., hired Tomsha-Miguel to resolve a tax dispute with the Internal Revenue Service (IRS).
Tomsha-Miguel requested help with the tax problems from the office of U.S. Representative Dennis A. Cardoza, who represents the 18th Congressional District – which includes Merced County, as well as parts of San Joaquin, Stanislaus, Madera and Fresno Counties. As the evidence revealed, Representative Cardoza’s office agreed to help, and transmitted written material – including a form printed under his official Congressional letterhead – to Tomsha-Miguel.
According to the evidence presented in court, Tomsha-Miguel then sent her client a counterfeit letter written under Representative Cardoza’s official letterhead and purportedly written and signed by a congressional aide. The letter falsely claimed that due to Tomsha-Miguel’s efforts on behalf of her client, the aide had contacted an IRS official. The counterfeit letter claimed that the IRS official had agreed to make resolving the client’s tax dispute his “number one priority” after he returned from “Washington, D.C. for an emergency strategy meeting with the U.S. Treasury Secretary and others for a planning session in the event a budget does not get passed by both the House and Senate.”
In reality, the aide did not exist, and Tomsha-Miguel had forged the letterhead by copying the official letterhead onto a blank sheet of paper. The evidence also showed that Tomsha-Miguel had written the letter from the non-existent aide herself and then sent it to her client in order to mislead him into believing she had succeeded in alleviating his tax problems.
Tomsha-Miguel faces a maximum potential penalty of three years in prison and a $250,000 fine at sentencing, currently scheduled for June 24, 2013 before U.S. District Judge Lawrence J. O’Neill, who presided over the trial.
The case was prosecuted by Trial Attorney Barak Cohen of the Public Integrity Section in the Justice Department’s Criminal Division and investigated by the Sacramento, Calif. Division of the FBI.California Man Sentenced to Life in Federal Prison for Methamphetamine Trafficking in Kansas City, Kan.Read the Press Release
KANSAS CITY, KAN. – A California man has been sentenced to life in federal prison for methamphetamine trafficking in Kansas City, Kan., U.S. Attorney Barry Grissom said today.
Juan Manuel Cortez-Diaz, 36, Modesto, Calif., was convicted in a jury trial in June 2012 on three counts of distributing methamphetamine and two counts of possession with intent to distribute methamphetamine.
During trial, prosecutors presented evidence that Cortez-Diaz handled more than 9 pounds of methamphetamine, including methamphetamine sold to undercover agents, found in his car and seized during a search at a drug stash house at 3046 Washington Ave., in Kansas City, Kan. On May 16, 2011, officers of the Kansas City, Kan., Police Department stopped his car after investigators saw him leave the drug stash house carrying a shoe box. Police seized the shoe box, which contained two pounds of methamphetamine. They seized another seven pounds of methamphetamine from the drug stash house.
Investigators determined that a co-defendant brought the methamphetamine to Kansas City from California.
Co-defendant Juan Carlos Lopez Razo, 36, North Highlands, Calif., is a fugitive from justice.
Grissom commended the Immigration and Customs Enforcement, the Department of Homeland Security, the Kansas City, Kan., Police Department, Assistant U.S. Attorney Chris Oakley and Assistant U.S. Attorney David Zabel for their work on the case.
Broward Man Sentenced 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 (IRS-CI), and Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announce the sentencing of defendant Luis Enrique Ledee Bernard, a/k/a “Luis L. Bernard,” 21, of Miramar. Bernard was sentenced to 30 months in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $22,000 in restitution. Bernard pled guilty on December 17, 2012 to one count of theft of government funds and one count of aggravated identity theft.
On October 9, 2012, the defendant was charged in a seventeen count indictment in connection with a scheme to obtain fraudulent tax return proceeds. According to the indictment, the defendant deposited nine (9) fraudulent tax refund checks that were fraudulently obtained by using the stolen personal identification information of at least (4) persons who were deceased. The proceeds from the nine fraudulent tax return refunds were direct-deposited into the defendant's bank account.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the U.S. Postal Inspection Service and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
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.
Black P Stone Nation “General” Sentenced to 20 Years in Federal Prison for Narcotics and Gun CrimesRead the Press Release
CHICAGO — A self-admitted high-ranking member of a Chicago street gang that operates in a south side neighborhood that he and his associates refer to as “Terror Town,” was sentenced today to 20 years in federal prison. The defendant, GILBERT SPILLER, holds the rank of “general” in the Black P Stone Nation street gang and has criminal convictions spanning two decades. He was arrested by the FBI and Chicago Police in October 2011 and pleaded guilty last September to two counts of selling crack cocaine and one count of illegally selling a firearm.
The sentence was imposed today by U.S. District Judge Charles Kocoras in Federal Court.
Spiller, 37, admitted selling approximately 62.2 grams of crack cocaine on July 13, 2011, and approximately 59.2 grams of crack on July 21, 2011, to a confidential informant in the vicinity of the 7800 block of South Kingston Avenue.
On Oct. 18, 2011, Spiller sold the same individual a loaded .40 caliber handgun, knowing that the individual was a felon on parole, had recently purchased crack from Spiller on two occasions, and believing that the individual had a score to settle with rival gang members.
According to court documents, Spiller admitted that he first joined the Black P Stone Nation while he was in grade school. He was subsequently convicted of aggravated battery with a firearm and aggravated discharge of a firearm, which arose from a drive-by shooting that killed one victim and wounded four others. He was later convicted of aggravated battery of a Chicago police officer.
“As his life in the gang further hardened, he became involved in violent crime,” the government wrote in a sentencing argument. Spiller “admitted that he was involved in shooting at other people on 5 to 10 different occasions, and believed that he hit the people he was aiming at in roughly half of these shootings.”
The government was represented by Matthew Burke. 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; and Garry McCarthy, Superintendent of the Chicago Police Department. The investigation was conducted by the FBI/CPD Joint Task Force on Gangs.
Bismarck Man Arraigned on Sexual Abuse ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bismarck, North Dakota man has been indicted by a federal grand jury for Sexual Abuse.
Joshua James Martin, age 28, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on February 14, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is any term of years up to life imprisonment, a $250,000 fine or both, and a mandatory minimum term of 5 years up to life of supervised release. The charge is merely an accusation and Martin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley is prosecuting the case. Martin was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Bartow Woman Charged for Methamphetamine TraffickingRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Lydia Santiago (38, Bartow) with conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine. Santiago also faces one count of being a felon in possession of a firearm. If convicted on all counts, she faces a maximum penalty of life in federal prison. The indictment also notifies Santiago that the United States intends to forfeit various vehicles and currency seized during the course of the investigation.
According to the indictment, from an unknown date and continuing until approximately February 19, 2013, in Polk County, Santiago possessed and conspired with others to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Law enforcement also located a Ruger model SR40c .40 caliber handgun was inside her Bartow home. As a previously convicted felon, Santiago is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration (DEA) and the Polk County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
Bank Executive Charged with Receiving Bribes from Oxford Collection AgencyRead the Press Release
February 27, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that WILBUR TATE III, 48, of Dacula, Ga., was arrested today on a federal criminal complaint charging him with conspiracy to commit bank bribery while he was an executive at U.S. Bank in Ohio. TATE appeared today before U.S. Magistrate Judge Linda T. Walker in Atlanta and was released on a $50,000 bond.
According to the complaint and court documents filed in related cases, Oxford Collection Agency was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Between 2007 and 2011, Oxford Collection Agency executives engaged in a multi-year scheme to defraud its lender, investors and clients. The investigation also revealed that Oxford Collection Agency was actively involved in bribing bank officials.
The complaint alleges that TATE, an Assistant Vice President of U.S. Bank in Ohio from January 2004 through February 2011, was in charge of outsourcing collection accounts to collection agencies, including Oxford Collection Agency. Beginning in approximately August 2008 and continuing for more than two years, Oxford Collection Agency executives engaged in a bribery scheme with TATE in order to obtain and retain the business of U.S. Bank. As part of the scheme, Oxford executives initially provided TATE with boxes of expensive cigars, and subsequently sent TATE monthly cash payments of between $2,500 and $5,000, which were hidden in cigar boxes and mailed to TATE’s residence in Mason, Ohio.
U.S. Bank received funds through the Troubled Asset Relief Program (TARP).
U.S. Attorney Fein also stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities, and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan, Special U.S. Attorney John McReynolds and Deputy U.S. Attorney Deirdre Daly, with the assistance of the U.S. Attorney’s Office for the Northern District of Georgia.
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 e-mail 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]29 Taken into Custody in Massive Racketeering Indictment, Including 17 Former TDCJ OfficersRead the Press Release
CORPUS CHRISTI, Texas- A sealed indictment charging numerous defendants with racketeering violations has been unsealed following their recent arrests throughout the Southern District of Texas and elsewhere. The arrests include 17 former Texas Department of Criminal Justice (TDCJ) correction officers and 12 others in relation to the case.
The indictment was announced today by United States Attorney Kenneth Magidson along with along with Special Agent in Charge of Homeland Security Investigations (HSI) Brian M. Moskowitz, Inspector General Bruce Toney with TDCJ - Office of the Inspector General (TDCJ-OIG), Special Agent in Charge of Internal Revenue Service – Criminal Investigation (IRS-CI) Lucy Cruz, Special Agent in Charge Melvin King Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Corpus Christi Police Department (CCPD) Chief Floyd D. Simpson and Postal Inspector in Charge Robert B. Wemyss of U.S. Postal Inspection Service.
Following an operation involving federal, state and local law enforcement personnel, a total of 22 have been arrested on criminal charges in the indictment. Seven defendants named in the indictment were already in custody. As a result, a total of 29 people are now in custody in connection with the four-year investigation. Thirteen former correction officers were arrested on racketeering charges and four others on separate drug charges. The indictment remains sealed as to those charged but not as yet in custody.
The arrest of the former correction officers was a joint effort between TDCJ-OIG and federal authorities to attempt to break the “culture of corruption” that permeated the McConnell Unit Prison during a period between 2005 to the present. State and federal authorities worked together in a determined effort to disrupt and dismantle the violent criminal gangs who were profiting through the corruption of guards at the prison.
According to the indictment returned under seal by a federal grand jury last week, 13 former TDCJ correction officers were part of a criminal enterprise that engaged in bribery and narcotics trafficking. The indictment details specific acts, wherein the correction officers assisted prisoners incarcerated in the TDCJ McConnell Unit Prison in Beeville by smuggling cellular telephones and drugs into the prison system. The drugs and phones were allegedly sold inside the prison to other inmates. The phones were used by inmates to assist in their coordination of criminal activities outside the prison, according to the allegations.
Today’s announcement caps a four-year investigation conducted by the U.S. Attorney’s Office, HSI, TDCJ-OIG, IRS-CI, ATF, CCPD Gang and Organized Crime Units, USPIS and the Bee County District Attorney’s office. The investigation was initiated in 2009 when several Aryan Circle Gang Members were apprehended attempting to transport stolen vehicles from Corpus Christi to Brownsville. The vehicles were destined to be smuggled across the border and sold to Mexico Cartel members. The operation was coordinated by inmates incarcerated at the McConnell Unit through the use of illegal cell phones.
The resulting investigation led to a December 2010 federal indictment charging 14 alleged members and associates of the Raza Unida Street and Prison Gang with committing violent acts to support racketeering (VICAR). These violent acts included home invasions, shootings and conspiracy to commit murder. During the course of the investigation, agents and officers seized approximately 13 pounds of crystal methamphetamine with an estimated street value of more than $300,000. Additionally, seven assault rifles, 14 pistols, five shotguns, five bullet proof vests and approximately 1,000 rounds of ammunition were seized from the gang. All were subsequently convicted, two of whom were sentenced to life imprisonment.
The case is being prosecuted by Assistant United States Attorneys Mark Patterson and Michael Hess.
Tuesday 26 February 2013
Winston County Man Charged with Arson at Poultry Company OfficeRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Northwest Alabama man for arson in connection with a December fire at a Marshall Durbin office building in Haleyville, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.
CHARLES WILLIAM HEAVNER JR., 43, of Hackleburg, is charged in a two-count indictment filed in U.S. District Court. The indictment charges that Heavner maliciously damaged the Marshall Durbin Field Operations Office by means of fire on Dec. 4, and that he knowingly used fire as the means to maliciously damage the poultry company’s field office.
“Trying to burn down a building is a serious and dangerous crime,” Vance said. “In this instance, only quick action prevented terrible damage to property and potential loss of life.”
The maximum sentence for both arson counts is 35 years in prison and a $250,000 fine.
The ATF, Alabama State Fire Marshal, U.S. Marshals Service, and the Winston County Sheriff’s Office investigated the case. Assistant U.S. Attorney Michael W. Whisonant Sr. is prosecuting the case.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.Two Wheeling Residents Convicted of Firearms ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - Two Wheeling, West Virginia, residents entered pleas of guilty last week in United States District Court in Wheeling before Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that WILLIAM “CHAZ” CRISWELL, age 29 and ERICA MORRIS HERCULES, age 29, each entered a plea of guilty to “Aiding and Abetting a Prohibited Person in the Possession of a Firearm.”
CRISWELL had previously been convicted in the Circuit Court of Ohio County of the felony offense of “Burglary,” and HERCULES had previously been convicted in the Circuit Court of Ohio County of the felony offense of “Uttering.” Both admitted to knowingly assisting one another in the possession of a Winchester Rifle and of a Conbray Leinad pistol on June 20, 2011, in Ohio County.
CRISWELL, who is free on bond pending sentencing, and HERCULES, who is in custody pending sentencing, each face up to 10 years imprisonment and a $250,000 fine.
The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives along with the Wheeling Police Department.
Two Virginia Businessmen Plead Guilty to<br /> Illegally Reimbursing Campaign ContributionsRead the Press Release
William P. Danielczyk Jr. and Eugene R. Biagi pleaded guilty today to reimbursing $186,600 in contributions to the Senate and Presidential campaign committees of a candidate for federal office, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Danielczyk, 51, and Biagi, 78, both of Oakton, Va., pleaded guilty to making illegal conduit campaign contributions. The charge carries a maximum penalty of five years in prison. Danielczyk also faces a fine of not less than 300 percent of the amount involved and not more than the greater of $50,000 or 1,000 percent of the amount involved, and Biagi faces a potential fine of not more than $250,000 when they are sentenced on May 17, 2013.
“With today’s guilty pleas, Danielczyk and Biagi admit they used straw donors to circumvent the rules of the electoral process,” said AAG Breuer. “Our democracy depends on voters honoring campaign contribution limits and other campaign finance laws, and the Justice Department will continue to pursue corrupt individuals whose illegal tricks threaten the legitimacy of elections and undermine public confidence in the democratic process.”
“Today Mr. Danielczyk admitted that he tried to corrupt the electoral process by evading corporate contribution limits,” said U.S. Attorney MacBride. “Mr. Danielczyk abused his power as an employer and abused his power as a participant in a U.S. election. Direct contribution limits for corporations provide an important check in the integrity of our electoral process, and today’s convictions help ensure that those who illegally go beyond those limits are held accountable.”
“With today’s guilty pleas, Mr. Danielczyk and Mr. Biagi admitted their roles in a scheme in which they evaded FEC law to donate money to a Senate and Presidential candidate. By doing so, they funneled more than $186,600 through their company by creating fraudulent invoices for straw donors and falsely back-dating letters to those individual contributors,” said Assistant Director in Charge Parlave. “The FBI will continue to work with the U.S. Attorney’s office to investigate allegations of campaign finance abuse, which are in place to ensure openness and fairness in our elections so the people’s interests are protected.”
According to court records, Danielczyk was the Chairman of Galen Capital Corporation, and Biagi served as the corporation’s secretary and treasurer. In September 2006, Danielczyk co-hosted a fundraiser for a candidate’s campaign for the U.S. Senate and in March 2007 he co-hosted a fundraiser for the same candidate’s 2008 campaign for the President of the United States.
Danielczyk admitted that he recruited individuals, including Biagi and other corporate employees, to serve as “straw donors” to the campaigns, assuring the donors that they would be reimbursed for their contributions. Danielczyk’s assistant collected the contributions, and Danielczyk and Biagi then reimbursed the straw donors for their contributions using Galen Capital Corporation’s corporate funds.
Biagi admitted that he disguised the nature of the reimbursement payments by writing “consulting fees” on the checks’ memorandum lines and by issuing the checks for amounts slightly larger than the campaign contributions. Danielczyk and Biagi also created falsely back-dated letters to the individual contributors, which characterized the reimbursement payments as “consulting fees” or that a contributor would receive money for certain work.
Danielczyk and Biagi admitted they used corporate funds to reimburse a total of $186,600 to the two campaigns. The campaigns unwittingly reported the straw donations as lawful contributions from the individual donors.
This case was investigated by the FBI’s Washington Field Office. Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Mark D. Lytle and Timothy D. Belevetz from the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case on behalf of the United States.
Two Virginia Businessmen Plead Guilty to Illegally Reimbursing Campaign ContributionsRead the Press Release
ALEXANDRIA, Va. – William P. Danielczyk Jr. and Eugene R. Biagi pleaded guilty today to reimbursing $186,600 in contributions to the Senate and Presidential campaign committees of a candidate for federal office, announced U.S. Attorney Neil H. MacBride of the Eastern District of Virginia, Assistant Attorney General Lanny A. Breuer of the Criminal Division, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Danielczyk, 51, and Biagi, 78, both of Oakton, Va., pleaded guilty to making illegal conduit campaign contributions. The charge carries a maximum penalty of five years in prison. Danielczyk also faces a fine of not less than 300 percent of the amount involved and not more than the greater of $50,000 or 1,000 percent of the amount involved, and Biagi faces a potential fine of not more than $250,000 when they are sentenced on May 17, 2013.
“Today Mr. Danielczyk admitted that he tried to corrupt the electoral process by evading corporate contribution limits,” said U.S. Attorney MacBride. “Mr. Danielczyk abused his power as an employer and abused his power as a participant in a U.S. election. Direct contribution limits for corporations provide an important check in the integrity of our electoral process, and today’s convictions help ensure that those who illegally go beyond those limits are held accountable.”
“With today’s guilty pleas, Danielczyk and Biagi admit they used straw donors to circumvent the rules of the electoral process,” said AAG Breuer. “Our democracy depends on voters honoring campaign contribution limits and other campaign finance laws, and the Justice Department will continue to pursue corrupt individuals whose illegal tricks threaten the legitimacy of elections and undermine public confidence in the democratic process.”
“With today’s guilty pleas, Mr. Danielczyk and Mr. Biagi admitted their roles in a scheme in which they evaded FEC law to donate money to a Senate and Presidential candidate. By doing so, they funneled more than $186,600 through their company by creating fraudulent invoices for straw donors and falsely back-dating letters to those individual contributors,” said Assistant Director in Charge Parlave. “The FBI will continue to work with the U.S. Attorney’s office to investigate allegations of campaign finance abuse, which are in place to ensure openness and fairness in our elections so the people’s interests are protected.”
According to court records, Danielczyk was the Chairman of Galen Capital Corporation, and Biagi served as the corporation’s secretary and treasurer. In September 2006, Danielczyk co-hosted a fundraiser for a candidate’s campaign for the U.S. Senate and in March 2007 he co-hosted a fundraiser for the same candidate’s 2008 campaign for the President of the United States.
Danielczyk admitted that he recruited individuals, including Biagi and other corporate employees, to serve as “straw donors” to the campaigns, assuring the donors that they would be reimbursed for their contributions. Danielczyk’s assistant collected the contributions, and Danielczyk and Biagi then reimbursed the straw donors for their contributions using Galen Capital Corporation’s corporate funds.
Biagi admitted that he disguised the nature of the reimbursement payments by writing “consulting fees” on the checks’ memorandum lines and by issuing the checks for amounts slightly larger than the campaign contributions. Danielczyk and Biagi also created falsely back-dated letters to the individual contributors, which characterized the reimbursement payments as “consulting fees” or that a contributor would receive money for certain work.
Danielczyk and Biagi admitted they used corporate funds to reimburse a total of $186,600 to the two campaigns. The campaigns unwittingly reported the straw donations as lawful contributions from the individual donors.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Mark D. Lytle and Timothy D. Belevetz from the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Eric L. Gibson of the Criminal Division’s Public Integrity Section are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Two Southwest Idaho Men Plead Guilty to Violating the Clean Air ActRead the Press Release
BOISE – Douglas Greiner, 52, of Boise, and Bradley David Eberhart, 51, of Garden Valley, Idaho, pleaded guilty today in federal court to violating work practice standards of the Clean Air Act, U.S. Attorney Wendy J. Olson announced. Griener and Eberhart were charged in a one count information, filed separately on January 25, 2012.
According to court documents, Greiner was employed as the project superintendent and Eberhart as the on-site supervisor for Riverside Water and Sewer District’s Phase III project. During re-construction of the Water System Improvement Project, old cement asbestos pipe was encountered and improperly handled. Greiner admitted to violating the Clean Air Act’s work practice standards and waste disposal standards by knowingly causing another employee to pick up pieces of cement asbestos pipe from a dump site without ensuring proper retrieval and disposal of the asbestos pipe. Eberhart, who pleaded guilty to the same charge, admitted that by his own actions or the actions of employees he supervised, he knowingly failed to adequately wet cement asbestos pipe during cutting or disjoining operations; failed to place the asbestos material in proper containers with clear labeling; and failed to dispose of the asbestos material in a licensed facility.
The defendants each face up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Greiner and Eberhart are scheduled to be sentenced on June 3, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the U.S. Environmental Protection Agency.
Two Individuals Enter Pleas in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - Two individuals entered pleas of guilty in United States District Court in Martinsburg on February 21, 2013, before Magistrate Judge David J. Joel.
United States Attorney William J. Ihlenfeld, II, announced that:
PAULA S. HIGH, age 55, of Virginia Beach, Virginia, entered a plea of guilty to “Acquiring, Obtaining, and Possessing Controlled Substances by Mispresentation, Fraud, Forgery and Deception,” on March 9, 2009. HIGH, while a Registered Nurse assigned to the ER of the Department of Veterans Affairs, VA Medical Center, in Martinsburg, acquired controlled substances using an account assigned and authorized to her through her employment. However, instead of administering the medication to a patient, HIGH kept the controlled substances for personal use. HIGH, who is on bond pending sentencing, faces up to 4 years imprisonment and a $250,000 fine.
The case was prosecuted by Assistant United States Attorney Andrew R.Cogar and investigated by the U.S. Department of Veterans Affairs/Office of Inspector General.
COREY HASSAN MITCHELL, age 42, of Falling Waters, West Virginia, entered a plea of guilty to “Distribution of Crack Cocaine.” MITCHELL, who is in custody pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine.
This case was investigated by Assistant United States Attorney Paul T. Camilletti and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department
Two Individuals Enter Pleas in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - Two individuals entered pleas of guilty last week in United States District Court in Martinsburg, before Magistrate Judge David J. Joel.
United States Attorney William J. Ihlenfeld, II, announced that:
WILLIAM LAWRENCE, age 64, of Shepherdstown, West Virginia, entered a plea of guilty to “Sale of a Firearm to a Prohibited Person.” On July 1, 2012, LAWRENCE sold a pistol and magazine to an individual knowing that the individual had been convicted of a felony offense and was prohibited from possessing a firearm. LAWRENCE, who is free on bond pending sentencing, face up to 10 years imprisonment and a $250,000 fine.
This case was prosecuted by Assistant United States Attorney Jarod Douglas and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
JUAN MARRON-CERDA, age 33, entered a plea of guilty to “Re-Entry by a Removed Alien.” On May 7, 2012, MARRON-CERDA was found in the Berkeley County, West Virginia, after having been removed in March of 2008, and had not received consent to reapply for admission to the United States. MARRON-CERDA, who is in custody pending sentencing, faces up to two years imprisonment, a $250,000 fine and deportation.
This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
Tuscaloosa Man Sentenced to Nearly Six Years in Prison for Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Tuscaloosa man to nearly six years in prison for possessing child pornography obtained over the Internet, announced U.S. Attorney Joyce White Vance, U.S. Immigration and Customs Enforcement Special Agent in Charge Raymond R. Parmer Jr. and Alabama Department of Public Safety Director Hugh B. McCall.
BRUCE HENRY, 37, pleaded guilty before U.S. District Judge Inge P. Johnson to one count of possessing child pornography. Judge Johnson then sentenced Henry to 70 months in prison and ordered that he be taken into custody immediately. He must serve five years of supervised release after completing his prison term.
According to Henry’s plea agreement with the government, he possessed more than 300 images of child pornography that he obtained over the Internet between April 1, 2009, and April 1, 2011. The images are of real children engaged in sexually explicit conduct.
Henry victimized specific children and harmed our society by his illegal conduct, the government said in its sentencing memorandum to the court. Individuals who view and possess child pornography enable and support its continued production by providing the incentive for its creation and distribution, the memorandum notes.
“This defendant did not just look at a few images once in his life, but used technology for years to possess hundreds of images that depict the rape and exploitation of prepubescent children,” according to the memorandum.
ICE and the Alabama Bureau of Investigation investigated the case, and it was prosecuted by Assistant U.S. Attorney Daniel J. Fortune.
Three Individuals Enter Pleas in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — Three individuals entered pleas of guilty on February 25, 2013, in United States District Court in Martinsburg before Magistrate Judge David J. Joel.
United States Attorney William J. Ihlenfeld, II announced that:
ISMAIL OMARA, age 34, formerly of Wallingford, Pennsylvania, entered a plea of guilty to “Bank Fraud.” Between March 16 and April 15, 2011, OMARA utilized a mobile telephone app that the USAA Federal Savings Bank offers to allow customers to make deposits from their mobile phone using scanner technology, to deposit ten checks totaling $27,530 from a bank account in which OMARA had nearly no money. After making the deposits to the USAA Federal Savings Bank account, OMARA immediately withdrew the funds via ATM withdrawals at casinos in Atlantic City, New Jersey, and Charles Town, West Virginia. As part of his plea, OMARA will make restitution to USAA for the total loss of $25,152.32. OMARA, who is free on bond pending sentencing, faces up to 30 years imprisonment and a
$1,000,000 fine. This case was prosecuted by Assistant United States Attorney John C. Parr and was investigated by the United States Secret Service.VAUGHAN J. HENRY, age 27, of Kearneysville, West Virginia, enter a plea of guilty to “Possession with Intent to Distribute Crack Cocaine” in Martinsburg. HENRY, who is in custody pending sentencing, faces a maximum exposure of 20 years imprisonment and a
$1,000,000 fine. This case was prosecuted by First Assistant United States Attorney Betsy C. Jividen and was investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.CARLOS VINCENT RIVERA, age 43, of Martinsburg, entered a plea of guilty to “Felon in Possession of a Firearm.” On June 21, 2012, RIVERA possessed a firearm despite having a prior felony convictions for possession of cocaine and aggravated robbery. RIVERA, who is in custody, pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department.
Three Atlanta Men Indicted for Trafficking Counterfeit Super Bowl TicketsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted three Atlanta men for trafficking in counterfeit Super Bowl XLVII tickets, announced U.S. Attorney Joyce White Vance and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
The grand jury also charged two of the three men with possessing and concealing counterfeit U.S. currency. The fake money and 57 counterfeited tickets were seized following a Jan. 31 traffic stop in Sumter County.
The indictment filed in U.S. District Court charges DWIGHT E. WILCOXSON, 53, ANTHONY A. HUNTER, 47, AND DARRYL A. WESBY, 45, with conspiring to transport and sell, and possessing counterfeit tickets to the Feb. 3 Super Bowl in New Orleans.
The indictment also charges that Wilcoxson, with intent to defraud, possessed and concealed $4,820 in counterfeit $100 and $20 bills on Jan. 31. Hunter faces the same charge for possessing and concealing $2,240 in counterfeit $100 and $20 bills.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case. Assistant U.S. Attorney J. Pat Meadows is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Texas Firm and Field Operations Supervisor Agree to Plead Guilty to Involvement in the Harboring and Transporting of Illegal Aliens Used in North Central Pennsylvania Oil and Gas Survey WorkRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that GPX/GPX, USA, a seismic surveying company based in Sealy, Texas, and its field operations supervisor, Douglas C. Wiggill, have agreed to plead guilty to federal charges involving harboring and transporting 19 illegal aliens for a project in the Williamsport, PA area.
GPX has agreed to plead guilty to conspiracy to harbor illegal aliens. The company has agreed to forfeit $250,000 and pay a $25,000 fine. Wiggill, age 43, a Canadian citizen residing in Ft. Worth, Texas, has agreed to plead guilty to a misdemeanor violation of aiding and abetting the improper entry of aliens to the United States.
As part of the plea agreement, GPX agreed to implement a corporate compliance program for confirming the employment eligibility and identity of all current and prospective employees.
Both plea agreements are subject to the approval of the Court. A court date has not yet been scheduled. The case is assigned to U.S. District Court Chief Judge Yvette Kane.
According to United States Attorney Peter J. Smith, in May 2012, a 20-count indictment was filed charging GPX/GPX, USA and Wiggill with harboring and transporting illegal aliens, and conspiracy to commit those offenses. GPX is engaged in the business of providing seismic and surface mapping surveys for the oil and gas industry.
The indictment alleged that in May 2011 GPX and Wiggill hired 19 illegal aliens to work on a seismic surveying project in Lycoming County. The indictment alleged that GPX and Wiggill failed to verify the immigration status of the aliens and did not prepare the required Form I-9 and supporting documentation concerning the aliens’ authorization to be in the United States.
According to the indictment, GPX executed a contractor compliance agreement certifying that all personnel were authorized to work legally in the United States when, in fact, they were not. On June 23 and 24, 2011, officers of the Williamsport Bureau of Police and agents of U.S. Department of Homeland Security Investigations arrested the 19 aliens employed by GPX at, or in the vicinity of, apartments rented for them in Williamsport by Wiggill and GPX. The arrests were a result of an investigation of one of the aliens by Williamsport Police.
The case was investigated by Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Williamsport Bureau of Police. Prosecution of this matter is assigned to Assistant United States Attorney George J. Rocktashel.
Steven Sann Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on January 26, 2013, before U.S. District Judge Dana L. Christensen, STEVEN SANN, a 58-year-old resident of Lolo, appeared for sentencing. SANN was sentenced to a term of:
- Probation: 4 years
- Special Assessment: $100
- Forfeiture: Warehouse
SANN was sentenced in connection with his guilty plea to conspiracy to maintain drug-involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
Beginning in January 2011, and continuing into June 2011, SANN and others maintained a drug premises for the purpose of manufacturing marijuana. This facility was known as "The Wye" located in Missoula. "The Wye" had between 1,000 and 1,200 marijuana plants at various growth stages and was capable of producing at least 30 pounds of marijuana a month. The marijuana was distributed through Big Sky Health marijuana dispensaries to marijuana cardholders and individuals who were not marijuana cardholders.
SANN was the original owner of "The Wye" and sold the facility to another individual for approximately $300,000 over a number of months.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SANN will likely serve all of the time imposed by the court. In the federal system, SANN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration and the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
Steven Sann Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on January 26, 2013, before U.S. District Judge Dana L. Christensen, STEVEN SANN, a 58-year-old resident of Lolo, appeared for sentencing. SANN was sentenced to a term of:
- Probation: 4 years
- Special Assessment: $100
- Forfeiture: Warehouse
SANN was sentenced in connection with his guilty plea to conspiracy to maintain drug-involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
Beginning in January 2011, and continuing into June 2011, SANN and others maintained a drug premises for the purpose of manufacturing marijuana. This facility was known as "The Wye" located in Missoula. "The Wye" had between 1,000 and 1,200 marijuana plants at various growth stages and was capable of producing at least 30 pounds of marijuana a month. The marijuana was distributed through Big Sky Health marijuana dispensaries to marijuana cardholders and individuals who were not marijuana cardholders.
SANN was the original owner of "The Wye" and sold the facility to another individual for approximately $300,000 over a number of months.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SANN will likely serve all of the time imposed by the court. In the federal system, SANN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration and the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
Steven Sann Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 26, 2013, before U.S. District Judge Dana L. Christensen, STEVEN SANN, a 58-year-old resident of Lolo, appeared for sentencing. SANN was sentenced to a term of:
- Probation: 4 years
- Special Assessment: $100
- Forfeiture: Warehouse
SANN was sentenced in connection with his guilty plea to conspiracy to maintain drug-involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
Beginning in January 2011, and continuing into June 2011, SANN and others maintained a drug premises for the purpose of manufacturing marijuana. This facility was known as "The Wye" located in Missoula. "The Wye" had between 1,000 and 1,200 marijuana plants at various growth stages and was capable of producing at least 30 pounds of marijuana a month. The marijuana was distributed through Big Sky Health marijuana dispensaries to marijuana cardholders and individuals who were not marijuana cardholders.
SANN was the original owner of "The Wye" and sold the facility to another individual for approximately $300,000 over a number of months.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SANN will likely serve all of the time imposed by the court. In the federal system, SANN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration and the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
Statement Concerning Death of Correctional Officer Eric WilliamsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania issued the following statement concerning the death of Correctional Officer Eric Williams at the United States Penitentiary, Canaan, Pennsylvania:
The staff at the United States Attorney’s Office for the Middle District of Pennsylvania extends its condolences to the family of Officer Williams, his coworkers and staff of the U.S. Bureau of Prisons facility at Canaan, Pennsylvania. This matter is under investigation by the FBI, with the cooperation and assistance of the Bureau of Prisons. Attorneys from the U.S. Attorney’s Office have been assigned to the matter.
We have no further comment at this time.
South Jordan Woman Pleads Guilty to Money Laundering; Admits Embezzling $462,455.80 from EmployerRead the Press Release
SALT LAKE CITY – Monica Paris, age 30, of South Jordan, pleaded guilty to one count of money laundering in federal court Monday, admitting she embezzled approximately $462,455.80 from Ultradent Products, Inc., her former employer. She used the funds she embezzled from her employer to pay for personal expenses, including car payments, airline tickets, vacations, personal items, food, and entertainment, according to a Felony Information filed by federal prosecutors in January.
According to the Felony Information, Paris worked at Ultradent, a privately-owned Utah corporation involved in the production and distribution of dental products, from 1997 until her termination around February 2012. Her last position at the company was assistant to the director of major accounts.According to court documents, as a part of her job duties, Paris was responsible for purchasing promotional materials used by Ultradent. The standard practice at the company involved Paris purchasing the items using her personal credit card and then seeking reimbursement for charges she had incurred on the company’s behalf.
As a part of her guilty plea Monday, Paris admitted that beginning around August 2010 and continuing through February 2012, she fraudulently submitted expense reports for personal reimbursement payments for items she never actually purchased. She then fraudulently approved the expense reports on behalf of Ultradent and directed that the reimbursement payments be sent to her personal bank account. She also admitted that she fraudulently claimed that personal items she purchased at Sam’s Club, including large amounts of pre-paid credit cards, were company expenses for which she sought reimbursement payments. Using her Sam’s Club membership, she admitted she bought personal items using the credit cards of two other company employees. She then submitted the purchases for reimbursement and created false invoices to show that the purchases were for company expenses.
Paris admitted that in August 2011, she sent a check for $10,891.29 to her credit union as payment for a car loan. She admitted she knew that the funds she transferred were stolen from her employer.
Sentencing in the case is set for June 27, 2013, at 2:30 p.m. before U.S. District Judge Ted Stewart. The potential maximum sentence for a money laundering conviction is 10 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by IRS Criminal Investigation Division special agents.Smith County, Texas Man Sentenced for Dealing Cocaine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 41-year-old Lindale, Texas man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher Florence pleaded guilty on Sep. 11, 2012, to possession with intent to distribute cocaine and was sentenced to 38 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, on Jan. 27, 2011, law enforcement officers executed a search warrant at a residence on County road 141 in Overton, Rusk County, Texas during which Florence was observed attempting to discard a semi-automatic pistol, $1,757 in cash and approximately 6.16 grams of cocaine base in the yard of the residence. Florence admitted to possessing the cocaine with the intent to distribute it to others in the area. Florence was indicted by a federal grand jury on Sep. 15, 2011.
This case was investigated by the Rusk County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
Smith County Man Sentenced for Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 52-year-old Hawkins, Texas man, formerly of Louisiana, has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Robin Marion Allen pleaded guilty on Sep. 11, 2012, to bank robbery and was sentenced to 160 months in federal prison today by U.S. District Judge Rodney Gilstrap.According to information presented in court, on June 25, 2012, Allen borrowed a car and drove to the Wells Fargo Bank on East Main Street in Atlanta, Texas. Allen approached a bank teller and gave the teller a hand-written note with instructions to fill a black bag with cash. The teller placed $1,944 in cash in the bag and returned it to Allen. Allen was arrested on June 27, 2012 in Atlanta, Texas. Allen was indicted by a federal grand jury on July 11, 2012 and charged with bank robbery.
This case was investigated by FBI and the Atlanta Police Department and prosecuted by Assistant U.S. Attorney Allen Hurst.Smith County Man and Woman Guilty of Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A Tyler, Texas man and woman have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Juan Dedias Herrera, 29, and Lamanda McCoy, 34, both pleaded guilty to the distribution of more than 50 grams of pure methamphetamine today before U.S. Magistrate Judge Judith K. Guthrie.
According to information presented in court, on Oct. 31, 2011, Herrera agreed to acquire and distribute methamphetamine with another person. McCoy admitted to being in possession of methamphetamine on Apr.20, 2011.
A federal grand jury returned an indictment on Feb. 1, 2012 charging Herrera and McCoy with federal drug trafficking crimes.
Herrera faces a minimum of 10 years and up to life in federal prison. McCoy faces up to 20 years in federal prison at sentencing. Sentencing dates have not been set.
This case is being investigated by the Drug Enforcement Administration and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Six Members of “Show Out” Crew Plead Guilty to Charges in Series of Assaults-Group Targeted Victims in Chinatown and Other Areas-Read the Press Release
WASHINGTON – Six men, all from Washington, D.C., pled guilty today to charges stemming from various gang-related crimes, including beatings, attempted robberies, and obstructing justice, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The defendants admitted actively participating in a crew called “Show Out” that committed crimes in the Chinatown, U Street and Adams Morgan areas. Since at least Jan. 1, 2012, the crew’s members canvassed the areas looking for targets of opportunity and teamed up to assault their victims, rob them of items of value, or both. The crew was also accused of engaging in “flash mob” style robberies at drug stores, convenience stores, and gas stations, in which multiple members flooded in to the business at the same time, overwhelming and intimidating the staff, and stealing items.
The guilty pleas took place in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for May 10, 2013. All six defendants remain in custody pending sentencing.
Those pleading guilty included Bernard Trowell, also known as “McLovin,”19, described in an indictment as “the self-styled president” of the group, and two others who allegedly had senior positions, identified as Deandre M. Williams, 19, and Quayshawn L. Leggett, 20. Also pleading guilty were James D. Matheny, 19; Ricardo J. Williams, 20, and Travis L. Morris, 20.
Trowell pled guilty to one count each of conspiracy, aggravated assault, and committing a crime while affiliated with a criminal street gang. He faces a statutory maximum of 30 years in prison for the crimes. Deandre Williams pled guilty to one count each of aggravated assault, assault with significant bodily injury, obstructing justice, and committing a crime while affiliated with a criminal street gang. He faces a statutory maximum of 48 years in prison. Leggett pled guilty to one count each of aggravated assault, attempted robbery, and committing a crime while affiliated with a criminal street gang. He faces a statutory maximum of 18 years in prison.
Matheny pled guilty to one count each of aggravated assault, obstructing justice, threats to do bodily harm, and committing a crime while affiliated with a criminal street gang. He faces a statutory maximum of 45 ½ years in prison. Ricardo Williams pled guilty to one count each of aggravated assault, attempted robbery, and committing a crime while affiliated with a criminal street gang. He faces a statutory maximum of 18 years in prison. Morris pled guilty to one count each of aggravated assault and committing a crime while affiliated with a criminal street gang. He faces a statutory maximum of 15 years in prison.
Two other defendants in the case earlier pled guilty to charges, and a third adult member of the crew is being sought. The investigation into other members of the crew is ongoing.
“Today’s guilty pleas by six members of the Show Out Crew should serve as a warning to young people tempted by the lure of gang life,” said U.S. Attorney Machen. “This violent group took pleasure in targeting innocent victims for beatings and robberies. As a result of the decision to participate in this crew violence, each of these criminals – none older than twenty – will now spend many years behind bars. This prosecution demonstrates our clear resolve to crush the gangs that terrorize our city.”
“The gratuitous, unprovoked robberies and assaults perpetrated by this gang were motivated primarily by the gang’s desire to establish credibility and notoriety, which was promoted by the gang through social media,” said Chief Lanier. “They preyed upon individuals whom they perceived to be vulnerable. I applaud the officers and detectives from the First District, the members of the Intelligence Division and our partners at the US Attorney’s Office for getting these thugs off our streets.”
As part of their plea agreements, the defendants admitted participating in various crimes, including these incidents:
-June 5, 2012: Beating in the 600 block of H Street NW
All six defendants admitted taking part in the beating of a man near a bus stop in the 600 block of H Street NW. As the victim approached the bus stop, at about 3:20 a.m., he was surrounded and assaulted. Deandre Williams and a juvenile member of Show Out knocked the man to the ground, and then multiple members punched, kicked and stomped him. Deandre Williams and others stole items from the victim while he was on the ground, including his cellphone and bank card. The victim was knocked unconscious for several minutes. He eventually found a police officer and received medical attention. He was treated later for a concussion, broken nose, and bruises to the head, face and torso.
--June 5, 2012: Beating near 2d and K Streets NW
Crew members targeted a second victim at about 3:45 a.m. The victim was walking to work near 2d and K Streets NW when Deandre Williams approached him and struck him repeatedly about the face and head with his fists. The victim received medical treatment on the scene and later was given stitches to close a bleeding laceration to the side of his face. Deandre Williams pled guilty to assault with significant bodily injury for his role in this attack.
-June 7, 2012: “Flash Mob” near North Capitol Street and Florida Avenue
Ricardo Williams and several others approached a gas station and convenience store at about 4:20 a.m., in the area of North Capitol Street and Florida Avenue. After the station attendant opened the locked door, Williams and the others overwhelmed and intimidated him. They grabbed food or beverage items and fled without paying. Ricardo Williams pled guilty to attempted robbery for his participation in this attack.
-June 19, 2012: Obstruction of Justice
During the evening hours, Deandre Williams and others approached a former associate at a bus stop in Chinatown and threatened him that he would be harmed if he talked to police. Deandre Williams pled guilty to obstruction of justice for this incident.
-June 21, 2012: Attack at Metro Center
Leggett and others were on the lower platform at the Metro Center Metro station when they confronted a man at about 5:20 a.m. Leggett demanded money and threatened the victim. The victim did not give him any money, and one of the individuals punched him in the face, knocking him down. Leggett pled guilty to attempted robbery for his role in this attack.
-July 31-Aug. 1, 2012: Threats to Do Bodily Harm, Obstruction of Justice
Matheny posted audio recordings to his Facebook page, in which he is rapping. In three of them, he accused a Show Out member of “snitching.” The songs carried a threat that this member would be shot “on sight.” Matheny pled guilty to threats to do bodily harm and obstruction of justice for these threats.
In announcing the guilty pleas, U.S. Attorney Machen and Chief Lanier commended the work of the officers, detectives and crime scene technicians who worked on the case for the MPD. They also expressed appreciation for the efforts of the Metro Transit Police Department, which assisted in the investigation. Additionally, they thanked local businesses for their assistance in the investigation, including Transwestern, a property management company, and employees of Securitas, a private security firm. Finally, they praised the work of those who are handling the case for the U.S. Attorney’s Office, including Assistant U.S. Attorneys Thomas Bednar and Clare Pozos, who are prosecuting the matter.
13-070Owner of Ocean County, N.J., Architectural Firm Admits Submitting False Corporate ReturnsRead the Press Release
NEWARK, N.J. – The owner of an Ocean County, N.J. architectural and engineering firm today admitted filing fraudulent tax returns on behalf of his firm, U.S. Attorney Paul J. Fishman announced.
Pravin H. Patel, 67, of Toms River, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler to an Information charging him with subscribing to false corporate tax returns on behalf of his firm, Pravin H. Patel Associates Inc., of Toms River, N.J.
According to documents filed in this case and statements made in court:
Patel was the owner and operator of Pravin H. Patel Associates, Inc. for more than 25 years; in recent years, the firm’s primary clients included the Toms River Board of Education and Ocean County College. Between 2005 and 2009, Patel filed corporate tax returns which falsely passed off personal expenses as legitimate business deductions.
Among the personal expenses which Patel admitted to improperly using to reduce the tax liability owed by his company was $112,650 in payments for renovations on his personal residence in 2006. Patel also admitted that the corporate tax return for the year ending in March 2007 improperly included more than $8,200 in expenses related to a personal country club membership and associated fees, as well as numerous personal expenses paid through a corporate credit card. Patel admitted that the corporate tax return for the year ending in March 2007 included false deductions of more than $145,000 and that the tax loss over a four-year period for which he is criminally liable totaled $63,815.
The count to which Patel pleaded guilty is punishable by a maximum potential penalty of three years in prison and a maximum fine of $250,000. Sentencing is scheduled for June 4, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, and special agents of the FBI under Acting Special Agent in Charge David Velazquez, with the investigation that resulted in today’s plea.The government is represented by Special Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division.
13-091
Defense counsel: Lawrence Horn Esq. and Richard Sapinski Esq.Patel Information
Owner of Mental Health Facilities Sentenced to 168 Months in Prison in Connection with $63 Million Health Care Fraud SchemeRead the Press Release
A former owner of mental health facilities in Florida and North Carolina was sentenced yesterday to serve 168 months in prison for his leadership role in a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Armando Gonzalez, 50, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Gonzalez was sentenced to serve three years of supervised release and ordered to pay 28,092,283 in restitution, which, under the terms of Gonzalez's plea agreement, will be satisfied in part by seized assets including $987,000 in currency seized in July 2012 and Gonzalez's mansion in Hendersonville, N.C.
On Dec. 17, 2012, Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering.
According to court documents, HCSN operated community mental health centers at three locations in Miami-Dade County, Fla., and one location in Hendersonville. HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. A PHP is a form of intensive treatment for severe mental illness. According to court documents, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not even provided.
Gonzalez orchestrated the HCSN fraud scheme, which centered on the recruitment and admission of patients who could not benefit from PHP services. In Miami, Gonzalez utilized patient recruiters to pay cash kickbacks in exchange for referrals from Assisted Living Facilities (ALF) patients who often suffered from conditions such as dementia and mental retardation. Once the unqualified patients were admitted to HCSN, Gonzalez's employees would fabricate virtually every portion of the patients' mental health medical records. The fake medical records were then utilized to support false billings to government sponsored health care benefit programs and to avoid detection by Medicare auditors.
In North Carolina, HCSN employees also routinely submitted false billing for patients watching movies, attending BBQs and, more commonly, patients who were not even present at the Miami and North Carolina facilities.
Gonzalez also admitted to his role in a money laundering scheme involving Psychiatric Consulting Network Inc. (PCN), a Florida corporation that was utilized by HCSN as a shell corporation to launder millions in health care fraud proceeds.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services that resulted in more than $28 million in payments.
Fifteen defendants have been charged for their alleged roles in the HCSN health care fraud scheme, and ten defendants have pleaded guilty. Alleged co-conspirators Wondera Eason and Paul Layman are scheduled for trial on March 11, 2013, before Judge Altonaga in Miami. Alleged co-conspirators Dr. Alina Feas, Dana Gonzalez and Lisset Palmero are scheduled for trial on June 3, 2013. Defendants are presumed innocent until proven guilty at trial.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division's Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. In support of the Medicare Fraud Strike Force, the FBI Criminal Investigative Division's Financial Crimes Section has funded the Special Trial Attorney position.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS's Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Orleans Parish Sheriff’s Deputies Charged with Receiving BribesRead the Press Release
JOHN P. SENS, age 52, a resident of New Orleans, Louisiana, and GERARD J. HOFFMAN, age 59, a resident of Mandeville, Louisiana, were charged today in two separate bills of information with conspiracy to commit bribery, announced U.S. Attorney
Dana J. Boente.According to court documents, SENS was employed as the Director of Purchasing at the Orleans Parish Sheriff’s Office (“OPSO”), from in or around 2006 through 2013. HOFFMAN was employed at the OPSO from in or around 1976 through 2012, rising to the rank of Colonel in charge of the maintenance department at the OPSO.
Beginning in 2007, according to the bills of information filed against them, SENS and HOFFMAN began receiving things of value from two contractors, identified as Businessman A and Businessman B in court documents, in exchange for a rigged bidding system they employed to steer OPSO work to Businessman A and Businessman B. In particular, from 2007 through 2011, Businessman A and Businessman B would submit bids for OPSO work in the names of their respective companies but, with the knowledge and participation of SENS and HOFFMAN, would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from Businessman A or Businessman B and, consequently, SENS and/or HOFFMAN would award the work to Businessman A or Businessman B.
In exchange for this rigged bidding process, SENS and HOFFMAN received various things of value from Businessman A and Businessman B, according to the bills of information. For example, from 2007 through 2011, SENS received approximately $30,000 in cash from Businessman A, as well as the digging and installation of a pool at a residence owned by SENS, at no cost to him. Similarly, during this same period of time, Businessman B paid for the purchase, framing, and matting of several paintings (so-called “Blue Dog” prints) for SENS. During this same period of time, Businessman B also provided things of value, including free electrical work and a trailer, to HOFFMAN, all at no cost to him.
If they are convicted of the conspiracy count charged against them, SENS and HOFFMAN face a maximum penalty of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment.
U.S. Attorney Boente reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Boente, as well as the investigative and prosecution team, offer their thanks to Rafael Goyeneche and the Metropolitan Crime Commission for providing valuable assistance in this case.
The case was investigated by special agents of the Federal Bureau of Investigation.The case is being prosecuted by Assistant U.S. Attorneys Matt Chester and Jon Maestri.
(Download Bill of Information- SENS )
(Download Bill of Information- HOFFMAN )
North Carolina Poultry Processing Plant Sentenced for Violating Clean Water ActRead the Press Release
A federal judge sentenced House of Raeford Farms Inc., a poultry slaughtering and processing facility located in Raeford, N.C., to a fine of $150,000, a two year period of probation and to pay a special assessment of $4,000 on Feb. 26, 2013, for 10 counts of knowingly violating the Clean Water Act.
House of Raeford Inc. allowed plant employees to bypass the facility’s pretreatment system and send its untreated wastewater directly to the City of Raeford’s Wastewater Treatment Plant, without notifying city officials. House of Raeford Inc. failed to prevent employees from sending thousands of gallons of wastewater into a pretreatment system that did not have the capacity to adequately treat the amount of wastewater before it discharged to the city plant. The untreated wastewater discharged directly to the city plant was contaminated with waste from processing operations, including blood, grease, and body parts from the slaughtered turkeys. A House of Raeford, Inc. former employee admitted that the facility would continue to “kill turkeys” despite being warned that the unauthorized bypasses had an adverse impact on the city’s Wastewater Treatment Plant. The city plant was responsible for treating industrial, commercial and residential wastewater before it was discharged to Rockfish Creek in Hoke County.
The bypasses and failure to report them were in violation of House of Raeford’s pretreatment permit as well as the city’s sewer use ordinance. Many of the bypasses took place while House of Raeford was subject to a consent order with the city that required it to construct a new pretreatment system and comply with all requirements of its pretreatment permit. A number of the bypasses were recorded in log books kept by House of Raeford Inc. wastewater operators, and were never revealed to the City.
The case was prosecuted by the Justice Department’s Environmental Crimes Section and was investigated by U.S. Environmental Protection Agency-Criminal Investigation Division and North Carolina State Bureau of Investigation.
North Carolina Poultry Processing Plant Sentenced for Violating Clean Water ActRead the Press Release
WASHINGTON— A federal judge sentenced House of Raeford Farms Inc., a poultry slaughtering and processing facility located in Raeford, N.C., to a fine of $150,000, a two year period of probation and to pay a special assessment of $4,000 on Feb. 26, 2013, for 10 counts of knowingly violating the Clean Water Act.
House of Raeford Inc. allowed plant employees to bypass the facility’s pretreatment system and send its untreated wastewater directly to the City of Raeford’s Wastewater Treatment Plant, without notifying city officials. House of Raeford Inc. failed to prevent employees from sending thousands of gallons of wastewater into a pretreatment system that did not have the capacity to adequately treat the amount of wastewater before it discharged to the city plant. The untreated wastewater discharged directly to the city plant was contaminated with waste from processing operations, including blood, grease, and body parts from the slaughtered turkeys. A House of Raeford, Inc. former employee admitted that the facility would continue to “kill turkeys” despite being warned that the unauthorized bypasses had an adverse impact on the city’s Wastewater Treatment Plant. The city plant was responsible for treating industrial, commercial and residential wastewater before it was discharged to Rockfish Creek in Hoke County.
The bypasses and failure to report them were in violation of House of Raeford’s pretreatment permit as well as the city’s sewer use ordinance. Many of the bypasses took place while House of Raeford was subject to a consent order with the city that required it to construct a new pretreatment system and comply with all requirements of its pretreatment permit. A number of the bypasses were recorded in log books kept by House of Raeford Inc. wastewater operators, and were never revealed to the City.
The case was prosecuted by the Justice Department’s Environmental Crimes Section and was investigated by U.S. Environmental Protection Agency-Criminal Investigation Division and North Carolina State Bureau of Investigation.
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