Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 21 February 2013
Operators of Idaho Aquarium Arrested for Wildlife ViolationsRead the Press Release
Florida Indictment Alleges Two Illegally Purchased Marine Life
BOISE – Ammon Covino, 39, of Meridian, Idaho, and Christopher Conk, 40, of Middleton, Idaho, were arrested today for violations of the Lacey Act, U.S. Attorney Wendy J. Olson announced. A federal grand jury in the Southern District of Florida returned a sealed indictment on November 8, 2012, charging the defendants with conspiracy to violate the Lacey Act and violating the Lacey Act by purchasing Florida protected marine life in interstate commerce.
The four count indictment, which was unsealed today, alleges that Covino and Conk purchased four spotted eagle rays (Aeobatus nairnari) and two lemon sharks (Negaprion brevirostris) for approximately $6,300. The marine wildlife were allegedly harvested illegally and without a permit.
Covino and Conk appeared this afternoon before Chief U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise. The court ordered the defendants to appear on March 15, 2013, before U.S. Magistrate Judge Lurana S. Snow, at the Sidney M. Aronovitz Federal Courthouse in Key West, Florida.
The defendants are each charged with one count of Conspiracy and three counts of Illegal Purchase and Sale of Fish/Wildlife. Each count is punishable by up to five years in prison, a maximum fine of $250,000, and at least three years of supervised release. The indictment also includes a forfeiture count.
The case is being investigated by U.S. Fish and Wildlife Service (USFW), National Oceanic and Atmospheric Administration (NOAA), and Idaho Department of Fish and Game.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Ohkay Owingeh Pueblo Man Pleads Guilty to Brandishing a Firearm During a Home Invasion on Santa Clara PuebloRead the Press Release
ALBUQUERQUE – Joshua W. Phillips, 20, a member and resident of Ohkay Owingeh Pueblo, N.M., pled guilty yesterday to brandishing a firearm during a crime of violence under a plea agreement with the U.S. Attorney’s Office. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Phillips was arrested on June 22, 2012, on a criminal complaint charging him with assault with a dangerous weapon and with the intent to do bodily harm. According to the criminal complaint, Phillips assaulted a man on Feb. 12, 2011, on Santa Clara Pueblo land within Rio Arriba County, N.M.
During yesterday’s plea hearing, Phillips pled guilty to brandishing a firearm in relation to an assault with a dangerous weapon. In his plea agreement, Phillips admitted that on Feb. 12, 2012, he and an accomplice committed a home invasion in a Santa Clara Pueblo residence for the purpose of robbing the owner. Phillips was armed with a rifle and the accomplice was armed with a knife. After forcing their way into the residence, Phillips fired a round from the rifle into the ceiling when one of the residents failed to comply with his demand for money. When the homeowner attempted to wrest the rifle away from Phillips and prevent Phillips from escaping, the accomplice kicked, punched and stabbed the homeowner so that Phillips could get away.
Under the terms of the plea agreement, Phillips will be sentenced to seven years in prison. A sentencing date has yet to be scheduled.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Northern Pueblos Agency, with assistance from the Santa Clara Pueblo Tribal Police Department and the Espanola Police Department, and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Newark Man Admits Role in Scheme to Steal Checks from U.S. MailRead the Press Release
Deposited Hundreds of Thousands of Dollars into Personal Accounts
NEWARK, N.J. – A Newark man today admitted his role in a scheme to gain access to personal checks from the U.S. mail, fraudulently endorse and deposit them into personal checking accounts, U.S. Paul J. Fishman announced.
Kurtis Steele, 26, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an Information charging him with one count of conspiracy to commit bank fraud.According to the documents filed in this case and statements made in court:
Steele and his conspirators gained access to blank checks that were sent via U.S. Mail and stolen from unsuspecting victims. Steele and his co-conspirators then fraudulently endorsed the blank checks for a certain sum and deposited those checks into legitimate bank accounts that defendants and unnamed conspirators opened at the banks, including TD Bank, Bank of America, Capital One Bank, Garden State Community Bank, Hudson City Savings Bank, PNC Bank and Valley National Bank. Before the victims and banks discovered the checks were fraudulent, Steele and his conspirators had withdrawn the funds either via Automated Teller Machine (ATM) or by entering the banks and filling out a withdrawal slip. During the investigation, U.S. Postal Inspection Service and FBI agents were able to obtain bank video surveillance which captured Steele making fraudulent deposits of the stolen checks and withdrawals of the proceeds of those checks.
Steele and his conspirators deposited $1.5 million in fraudulent checks stolen from 122 victims, which were deposited into 258 different banks. Steele and his conspirators’ conduct resulted in approximately $625,000 in loss.Steele faces a maximum potential penalty of 30 years in prison on the conspiracy charge and a maximum fine of $1 million or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for May 29, 2013.
U.S. Attorney Fishman credited special agents of the U.S. Postal Inspection Service, under the direction of Philip Bartlett; and special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark.13-087
Defense Counsel: Stephen A. Turano Esq., NewarkSteele, Kurtis Information
New York Man Charged with Sex Trafficking of Young FemalesRead the Press Release
PHILADELPHIA - Justin Williams, a/k/a “New York Ice”, a/k/a “Pimp Juice”, 38, of NY, NY, is charged by indictment, unsealed today, with the sex trafficking of minors, announced United States Attorney Zane David Memeger. According to the indictment, between November 2011 and January 2012, Williams recruited young females to work as prostitutes in his business, created Internet advertisements in which he advertised various females as available for purchase for purposes of prostitution, and engaged in acts of physical violence to force the victims to remain in his business. The advertisements that Williams created featured pictures of the victims, either scantily clad, or topless with their hands covering their breasts, the price, and a phone number to call to arrange a meeting with a female. Williams allegedly forced the victims to engage in sex acts with clients.
If convicted, the defendant faces a 15-year mandatory minimum and maximum life sentence in prison, supervised release and a fine of up to $500,000.
The case was investigated by the FBI and is being prosecuted by Michelle Morgan.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Most Wanted “Deadbeat Parent” Pleads Guilty to Flight to Evade over $1.2 Million in Child Support ObligationsRead the Press Release
Earlier today, defendant Robert D. Sand, the nation’s “Most Wanted Deadbeat Parent” according to a child support enforcement web page, pleaded guilty to two counts of traveling in interstate and foreign commerce with the intent to evade child support obligations totaling over $1.2 million. The proceedings were held before the Honorable Joseph F. Bianco at the United States Courthouse located in Central Islip, New York. Sand faces a maximum sentence of 4 years’ imprisonment when sentenced on May 21, 2013.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Thomas O’Donnell, Special Agent in Charge of the New York Regional Office, Office of the Inspector General, United States Department of Health and Human Services (“OIG-DHHS”) and Charles Dunne, United States Marshal for the Eastern District of New York.
As part of his plea, Sand admitted that he initially relocated from New York to Florida and then fled the United States in order to evade his support obligations following the issuance of arrest warrants in 2000 and 2002. Sand admitted that he had spent much of the past decade in the Kingdom of Thailand where he operated a business. Sand was arrested in late November 2012, upon entering the Republic of the Philippines from Thailand without proper identification documents, and on December 17, 2012, he was deported to Los Angeles, where he was taken into custody by deputies with the United States Marshals Service. During the time Sand was a fugitive, his support obligations continued to grow. At the time of his arrest, Sand owed more than $1.2 Million in back child support.
According to a complaint filed in federal court on April 8, 2002, the New York State Family Court in Nassau County issued an arrest warrant for Sand on November 22, 2000, following multiple contempt findings against him in child support proceedings. A federal arrest warrant was issued for Sand on April 8, 2002. On September 17, 2009, an indictment was filed in the United States District Court for the Eastern District of New York charging Sand with two counts of failure to pay child support, and on February 17, 2010, a federal arrest warrant was issued for Sand’s arrest.
In January 2012, OIG-DHHS launched a child support enforcement web page (http://oig.hhs.gov/fraud/child-support-enforcement/) to seek the public’s help in ongoing federal efforts to bring fugitive “deadbeat parents” to justice. Sand was listed on the site as the number one “Most Wanted Deadbeat Parent” based upon his child support obligations that allegedly totaled more than $1 million.
“Today, the defendant has admitted to abandoning his responsibilities to the children he helped bring into this world, and to leaving the country to do so. Neither court orders nor the familial bond meant anything to him as he fled to avoid his obligations. Today’s guilty plea stands as a strong warning to those who would flee their lawful child support obligations that we will prosecute them to the fullest extent of the law,” stated United States Attorney Lynch. “Neither time, nor distance, will prevent the vigorous pursuit by law enforcement to bring them to justice.” Ms. Lynch expressed her grateful appreciation to the Office of the Inspector General, United States Department of Health and Human Services and the United States Marshals Service for their assistance in this case.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
Name: ROBERT D. SAND
Age: 50Montara Man Charged with Running Bankruptcy Fraud SchemeRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Walter Bruce Harrell, of Montara, with eight counts of bankruptcy fraud and two counts of making false statements in bankruptcy proceedings, United States Attorney Melinda Haag announced. The Indictment alleges that Harrell devised and executed a scheme to defraud creditors who were attempting to lawfully foreclose on numerous properties, and that he did so by delaying and obstructing foreclosure sales through the improper use of the federal bankruptcy process.
According to the Indictment, Mr. Harrell, 71, is alleged to have arranged for property owners to grant fractional interests of between 2% and 20% of their properties to individuals whom Harrell had paid to file bankruptcy cases in the U.S. Bankruptcy Court for the Northern District of California. These actions invoked the “automatic stay” provision of the U.S. Bankruptcy Code, which halts foreclosure sales until the creditor seeks relief from the stay or until the bankruptcy case is dismissed. The Indictment alleges that Harrell’s scheme forced creditors to file motions to lift the automatic stays, or to wait until the debtors’ bankruptcy cases were dismissed, in order to proceed with the foreclosure sales. A number of the creditors affected by the scheme were recipients of funds under the Troubled Asset Relief Program. The Indictment identifies at least six properties involved in the scheme, one of which was occupied by Harrell. The Indictment also charges Harrell with making false statements in bankruptcy proceedings with respect to two bankruptcy cases that Harrell paid an individual identified as “T.W.” to file.
Mr. Harrell was arrested in Montara on February 20, 2013, and he made his initial appearance in federal court in San Francisco on February 21, 2013. He was released on a $50,000 bond. The defendant’s next scheduled appearance is at 9:30 a.m. on February 25, 2013, for identification of counsel before Magistrate Judge Maria-Elena James.
The maximum statutory penalty for each count of bankruptcy fraud, in violation of Title 18, United States Code, Section 157, and each count of making false statements in bankruptcy proceedings, in violation of Title 18, United States Code, Section 152(3), is 5 years in prison and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Kyle F. Waldinger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation and the Special Inspector General for the Troubled Asset Relief Program, as well as investigators from the Alameda County District Attorney’s Office.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Harrell must be presumed innocent unless and until proven guilty.
Miami Man Charged in $12 Million Identity Theft Tax Refund Fraud Scheme Involving Thousands of Fraudulently Obtained U.S. Treasury ChecksRead 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), Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the filing of a criminal complaint charging defendant Frankie Jermaine Anderson, 40, of Miami, with conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371, theft of government money or property, in violation of Title 18, United States Code, Section 641, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to the affidavit filed in support of the criminal complaint, from about February through June 2012, a check casher in Perrine, Florida (J&S Taxes) cashed thousands of fraudulently obtained U.S. income tax refund checks worth over $12 million. The defendant allegedly provided the vast majority of these fraudulently obtained checks to the check casher for cashing. Proceeds from this fraud were then used by the defendant to purchase two separate homes—one for the defendant and one for the defendant’s mother (each valued at approximately $250,000). In addition, the defendant used the proceeds from the fraud to purchase a 2012 BMW 530i, a Porsche Cayenne, a 2012 Porsche Panamera, a 212 Cadillac CTS, a 2012 Jaguar XF, a 2013 BMW X6, a 2012 Jaguar XJ, and a 2013 Bentley GT Coupe. According to State of Florida employment records, the defendant has been unemployed since 2003.
According to the affidavit, on November 28, 2012, the defendant was arrested in possession of 35 U.S. Treasury checks totaling approximately $119,165.60, including at least one check issued in the name of a deceased person.
Mr. Ferrer thanked IRS-CI, USSS, USPIS, and FBI for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger, Evelyn Baltodano -Sheehan and Elijah Levitt.
A criminal complaint is only an accusation and the defendant is presumed innocent until proven guilty.
Attachments:
Complaint (PDF)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.
Marysville Man Pleads Guilty to Coercion of A MinorRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Justin S. Mote, 33, of Marysville pleaded guilty in U.S. District Court today to one count of using the internet to coerce a minor to engage in unlawful sexual activity. The plea agreement provides for a sentence between 240 and 300 months in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr.
According to testimony presented during the plea hearing, Mote met a 12-year old girl online and went to Connecticut and Pennsylvania to visit her in 2012. Franklin County ICAC investigators received information from a Newtown, Connecticut police officer on October 16, 2012 after the girl’s father found letters, text messages and gifts from Mote. Investigators executed a search warrant at Mote’s residence on October 19 and found fully nude photographs of the victim on various media devices including a tablet computer belonging to Mote.
Mote, who was under indictment on state charges of attempted unlawful sexual contact with a minor and importuning in connection with a separate incident that occurred in August 2011, was arrested. He has been in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by HSI agents and ICAC task force officers, as well as Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
The court will conduct a pre-sentence investigation before accepting the terms of the plea agreement and schedule a date for sentencing.
Manhattan U.S. Attorney Announces Arrest of Virgin Islands-Based Investment Adviser for Multi-Million Dollar Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Keith Milke, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today that JAMES TAGLIAFERRI, who managed and controlled TAG Virgin Islands, Inc. (“TAG”), an SEC-registered investment adviser, was arrested today for executing a scheme to defraud TAG clients. Through TAG, TAGLIAFERRI received undisclosed payments in exchange for causing his clients to invest in certain securities; used client funds for improper purposes, including making payments to other clients who were demanding their funds; and caused false and fictitious securities instruments to be placed in client accounts. In total, TAGLIAFERRI received more than $3 million in undisclosed payments in connection with the fraud. He was arrested in St. Thomas, U.S. Virgin Islands, and is expected to be presented today in federal court in St. Thomas.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, James Tagliaferri concocted an elaborate scheme to defraud his clients, including taking millions of dollars in undisclosed compensation in exchange for placing their hard-earned money in certain investments. Financial advisers have a professional and legal responsibility to act in their clients’ best interests which is exactly the opposite of the conduct in which Tagliaferri allegedly engaged.”
Inspector-in-Charge Keith Milke said: “Today's arrest of James Tagliaferri for allegedly investing client funds in risky ventures, then using part of their investments as a ‘fee’ violated the trust his clients placed with him, leaving many financially scarred. His arrest should serve as a reminder that whenever someone uses the US Mail for illegal activities Postal Inspectors will bring them to justice.”
According to an Indictment unsealed today in Manhattan federal court:
Beginning in or about 2007, TAGLIAFERRI opened TAG in the Virgin Islands and began offering investment advisory services to clients through that company. He exercised substantial discretion over client investment accounts which, at times, totaled more than $250 million in assets under his management.
Beginning in or about 2007, TAGLIAFERRI executed a multi-faceted scheme to defraud TAG clients. First, he began taking payments he was legally required to disclose but did not, in exchange for placing client funds in investments with certain companies. He received at least $1.6 million in secret fees for causing clients to invest in securities relating to a company located in Garden City, New York (“Company 1”). He also received at least $1.75 million in undisclosed compensation in exchange for placing client funds in investments with several companies affiliated with an associate of his (“Associate 1”).
TAGLIAFERRI often used his clients’ money to finance these undisclosed payments to TAG. He did this by transferring client funds from custodial accounts to a trust account maintained by an attorney. He then diverted a portion of those funds – the undisclosed fee – from the trust account to a TAG account in the Virgin Islands that he controlled. By routing fees to TAG through this trust account and other third-party accounts, TAGLIAFERRI was able to receive these fees with no record of such fees appearing on the monthly statements custodial financial institutions sent to TAG clients.
Second, TAGLIAFERRI used client funds for improper purposes, including making payments to other clients who were demanding their money, and to make payments on behalf of companies he was affiliated with, including Company 1. He orchestrated a complex series of transactions between and among TAG client accounts to access funds for these purposes. For example, when an immediate need for funds arose, he caused clients to purchase shares of a publicly-traded company affiliated with Associate 1 from a client account affiliated with Associate 1 that TAGLIAGERRI controlled. Once those sales took place and TAG client funds were transferred to that account, he used those funds for his own purposes, including for payments to other clients demanding their money.
Third, TAGLIAFERRI caused false and fictitious securities to be placed in client accounts. He signed a series of investment instruments relating to a company located in Pennsylvania (the “Pennsylvania Company”). According to these instruments, the Pennsylvania Company was obligated to make payments to certain TAG clients based on a note agreement between the Pennsylvania Company and TAG. In reality, however, the Pennsylvania Company never executed any agreement with TAG that obligated it to make payments to TAG or TAG clients. As TAGLIAFERRI well knew, these investment instruments, and the obligation they referenced, were false and fictitious.
TAGLIAFERRI, 73, of St. Thomas, has been charged with one count of investment adviser fraud, one count of securities fraud, five counts of wire fraud, and eight counts of violating the Travel Act. The penalties for each of the charged offenses are listed in the attached chart.
Mr. Bharara praised the work of USPIS and the Criminal Investigators of the United States Attorney’s Office, which jointly investigated this case. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason H. Cowley and Richard C. Tarlowe are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view chart(s)Tagliaferri, James Indictment
Luis Misael Madrid-romero Sentenced for Illegal Re-entryRead the Press Release
LUIS MISAEL MADRID-ROMERO, age 42, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Carl J. Barbier to forty-six (46) months imprisonment, announced U. S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Barbier ordered that MADRID be placed on two (2) years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
According to court documents, on November 15, 2012, MADRID, pled guilty to one count of an indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States in Jefferson Parish, Louisiana without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his reapplication for admission into the United States. MADRID’s sentence was subject to an enhancement based on a previous aggravated felony conviction.
The case was investigated by U. S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Local Home Health Care Agency Owners Are Sentenced for Roles in Nearly $1.3 Million Health Care Fraud ConspiracyRead the Press Release
DALLAS — Two owners of Alliance Healthcare Services, L.P., a Dallas home health care agency, were sentenced today by U.S. District Judge Jane J. Boyle for their roles in a nearly $1.3 million health care fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Richardson, Texas, residents, George Opurum, 62, and his wife, Agatha Opurum, 55, were each sentenced to 37 months in federal prison. They were ordered to surrender to the Bureau of Prisons on March 27, 2013.
George Opurum was the chief financial officer and alternate administrator of Alliance. Edith Opurum was the Director of Nursing at Alliance. Co-conspirator Ernest Amadi, 55, was the chief executive officer of Alliance and his wife, Edith Amadi, 52, was a nurse at Alliance. Alliance was located on Estate Lane in Dallas.
The Amadi’s, residents of Wylie, Texas, also pleaded guilty to conspiracy to commit health care fraud. Edith Amadi was sentenced to 37 months in federal prison; a sentencing date has not been set for Ernest Amadi. Another co-conspirator in the case, Ollie Futrell, 57, of Garland, Texas, pleaded guilty to her role in the conspiracy and is currently serving a 33-month federal prison sentence.
The five defendants in the case billed a total of $1,296,357, and are ordered to pay restitution in the amount of $853,702.
According to documents filed in the case, as part of the conspiracy, from November 2008 through mid-February 2011, Alliance submitted claims to Medicare for home health services purportedly provided to Medicare beneficiaries. Alliance employees, including the owners, falsified Medicare documentation and skilled nursing notes indicating that the patients were homebound and eligible for home health care services. In fact, the majority of Alliance patients were not eligible for the services because they were not homebound. Alliance employees and owners falsified time sheets and patient visit logs for services that were not adequately rendered or were never provided at all. Alliance then billed Medicare as if the services were adequately provided.
Further, according to documents filed in the case, Alliance owners conspired with Futrell to recruit Medicare patients for the company so Alliance could increase its Medicare billing and revenue. Futrell, who was paid in cash by Alliance owners, recruited Medicare beneficiaries in a variety of ways and initiated Alliance services for them. She agreed to pay kickbacks — sometimes $100 a month — to patients so that they would continue to use Alliance. Alliance owners knew about, and at times facilitated, these kickbacks.
The case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General (HHS OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit.
Assistant U.S. Attorney Katherine E. Pfeifle of the U.S. Attorney’s Office in Dallas and Trial Attorney Benjamin A. O’Neil of the Fraud Section in the Justice Department’s Criminal Division are in charge of the prosecution.
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: http://www.stopmedicarefraud.gov/
Justice Department Seeks to Shut Down New Jersey Tax Return PreparerRead the Press Release
The United States has asked a federal court in Camden, N.J., to bar Doris E. Baules, who operates D’Vazquez Tax Solutions, from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Baules continually and improperly claimed the Earned Income Tax Credit (EITC) on her clients’ returns to enable them to receive erroneous tax refunds. The suit alleges that the defendant improperly increases their EITC claims.
According to the complaint, the Internal Revenue Service previously conducted an investigation into the tax returns that Baules prepared for the 2009 tax year, and assessed $12,500 in return preparer penalties against her because she failed to exercise due diligence in determining whether her clients were entitled to the EITC. Baules continued to claim increased EITC on returns she prepared even after the IRS contacted her. According to the complaint, the total harm to the U.S. Treasury caused by Doris Baules’ misconduct is estimated to be as high as $6.2 million.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website
Related Materials:
United States v. Doris E. Baules
Complaint for Permanent Injunction and Other Relief (PDF)
Justice Department Seeks to Shut Down Detroit-Area Tax Return PreparersRead the Press Release
The Justice Department announced today that it has asked a federal court in Detroit to permanently bar Calvin Carter and brothers Raheen Stroud and Laron Stroud, who do business as E-File Tax Pros LLC and Tax King, from preparing federal tax returns. The civil injunction suit alleges that Carter and the Stroud brothers falsify customers’ income on their tax returns, frequently by fabricating business income and expenses, in order to claim the maximum earned income tax credit (EITC) for them.
The EITC is a refundable credit available to certain low-income people. The maximum credit in 2010 was $5,666. Due to the method used to calculate the EITC, people with higher annual incomes may be entitled to a larger credit. Some tax preparers refer to the range of earned income generating a maximum EITC as the “sweet spot.” According to the complaint, Carter and the Stroud brothers fabricated businesses and reported fake business income and expenses on their customers’ tax returns to achieve reported income in the EITC sweet spot. The complaint alleges that the defendants filed tax returns in 2009, 2010, and 2011 that had an extremely high refund-request rate of 97 percent.
The complaint also alleges that the defendants prepare returns for customers that falsely claim the first-time-homebuyer credit even though the customers had not bought new homes and were ineligible for the credit.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Calvin Carter, et al.
Complaint for Permanent Injunction and Other Relief (PDF)
Jury Convicts New Hampshire Woman for Obtaining U.S. Citizenship UnlawfullyVictims from Rwanda Testify Regarding Her Role in the 1994 GenocideRead the Press Release
CONCORD, N.H. - A Manchester, NH woman was convicted today by a federal jury of two counts of procuring citizenship unlawfully.
A federal jury in New Hampshire found that Beatrice Munyenyezi, 43, obtained her U.S. citizenship unlawfully after fleeing her home country of Rwanda by misrepresenting material facts to U.S. Immigration authorities both before and after she arrived here. The verdict was announced today by United States Attorney Carmen M. Ortiz, First Assistant United States Attorney for the U.S. District of New Hampshire Donald Feith and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston.
Munyenyezi, who was charged in June 2010, faces up to 10 years in prison to be followed by three years of supervised release and a $250,000 fine on each count. Munyenyezi’s U.S. citizenship was revoked immediately upon conviction. She also faces removal proceedings after serving the sentence imposed by the judge.
Sentencing has been scheduled for June 3, 2013, at 9:30 a.m. in Concord, NH, before Judge Steven J. McAuliffe, who presided over the trial.
Testimony during the 12-day trial revealed that Munyenyezi concealed her involvement in the MRND (National Republican Movement for Democracy and Development), the political party in power before and during the Rwandan genocide. Munyenyezi misrepresented this fact in order to obtain immigration and naturalization benefits.
U.S. Attorney Ortiz said, “United States citizenship is one of our Nation’s most valued privileges. Those involved in human rights violations should be aware that the United States will not idly tolerate the abuse of its accepting borders and will diligently investigate those who obtain citizenship fraudulently, even decades after the events.”
“The United States has always welcomed refugees and those fleeing oppression, but as today’s guilty verdict clearly demonstrates, this nation will never be a safe haven for human rights violators and war criminals,” said Bruce M. Foucart, special agent in charge of HSI Boston. “After much persistence and dedication by HSI special agents and our partners at the U.S. Attorney’s Office for the District of Massachusetts, Munyenyezi will be held accountable for disguising her role as a participant in the Rwandan genocide. I am hopeful that this case will send a message to others like Munyenyezi: HSI will never allow our country to be a place where individuals seeking to distance themselves from their pasts can hide or evade detection.”
Homeland Security Investigations investigated the case with the assistance of the Department of State Diplomatic Security Service. The case is being prosecuted by Special Assistant U.S. Attorneys Aloke Chakravarty and John Capin from Ortiz’s Anti-Terrorism Unit in the District of Massachusetts.
Janice Staves and James Youngblood Charged with Defrauding HanoRead the Press Release
JANICE STAVES, age 55, a resident of New Orleans, and JAMES YOUNGBLOOD, age 69, a resident of New Orleans, were charged in a bill of information today with conspiracy to commit theft concerning programs receiving federal funds, announced U. S. Attorney Dana Boente.
According to court documents, STAVES was employed as a Purchasing Clerk for the Housing Authority of New Orleans (HANO) from 1992 until June 1, 2009. YOUNGLOOD also had previously worked at HANO from 1972 until 2003. Upon leaving HANO, YOUNGBLOOD formed and operated YOUNGBLOOD and YOUNGBLOOD Construction, LLC.
During the conspiracy, STAVES and YOUNGBLOOD figured out a way to embezzle money from HANO, which receives federal funding. In 2007, STAVES and YOUNGBLOOD discussed, telephonically and in person, that STAVES could get YOUNGBLOOD paid with HANO funds, for doing no work, and in return, YOUNGBLOOD provided kickbacks to STAVES. During this time frame, YOUNGBLOOD received HANO checks totaling $661,904.11, despite having performed no work. STAVES, deposited approximately $100,448.00 in cash from YOUNGBLOOD, into accounts that she controlled. YOUNGBLOOD and STAVES would meet at the HANO office and in parking lots of various businesses close to the HANO office where she would receive her portion of the cash.
Procedures for requisition orders for jobs were circumvented in connection with the elaborate scheme which allowed STAVES to generate false paperwork, which appeared legitimate, resulting in payments to YOUNGBLOOD for work never performed and payments in advance for work to be performed, which was never authorized and never performed at a late date. The fraudulent purchase orders were often designated for debris removal and/or supplies, such as locks.
If convicted, STAVES and YOUNGBLOOD face a maximum term of imprisonment of five (5) years, as well as a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment, as to each count. Boente reiterated that the bill of information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the United States Department of Housing and Urban Development, Office of the Inspector General. The prosecution is being handled by Assistant United States Attorney Jon Maestri.(Download Bill of Information )
Jamaica Citizen Sentenced to for Possessing A Firearm as an Illegal AlienRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II, sentenced Omar O'Neill Lewis last week to 57 months in federal prison for possession of a firearm by an illegal alien. He pleaded guilty to the charge on August 13, 2012.
According to court documents, an Orange County Sheriff’s deputy observed Lewis attempting to conceal a handgun under a parked car in a parking lot. The handgun was recovered and identified as a FN Herstal 5.7 mm. The gun was loaded with a round in the chamber and 16 rounds in the magazine. Lewis was arrested for carrying a concealed weapon. At the time of his arrest, Lewis identified himself to deputies using a fictitious name. He also produced an illegally obtained Florida identification card and Florida driver's license. Through a search warrant for the collection of DNA samples, the Florida Department of Law Enforcement’s laboratory in Orlando confirmed the DNA collected from the firearm matched DNA collected from Lewis.
Lewis was later identified as a national and citizen of Jamaica. On April 3, 2001, an immigration judge had ordered Lewis removed from the United States. He was physically removed from the United States on June 28, 2001. Lewis reentered the United States on or about July 25, 2005, without the permission of the Attorney General or Secretary of the Department of Homeland Security. He was physically removed again on February 23, 2006. Lewis made other attempts to enter the United States using fictitious identities. On October 5, 2009, in the Southern District of Florida, Lewis was sentenced to 46 months’ imprisonment for illegal re-entry. On May 25, 2010, he was sentenced to 19 months’ imprisonment for false impersonation of a United States citizen.
This case was investigated by the Orange County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on February 21, 2013:
Roberto Ramirez Cardona, 53, of Hammond, Indiana, was charged in an Indictment with distribution of heroin.These charges were filed as the result of an investigation by the United States Postal Service-Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Nicholas Padilla.
Julian Robert Rebeles, 21, of Hammond, Indiana, was charged in an Indictment with possession of a firearm by a convicted felon. These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
Scott Filbey, 47, of Walton, Kentucky, was charged in an Indictment with production of child pornography.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Indiana State Police, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Franklin County Ohio Sheriff’s Department and the Cincinnati/Hamilton County Sheriff Electronics Computer Investigation Section.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
Anthony Edward Stewart, 23, of East Chicago, Indiana, was charged in an Indictment with possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task force.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
William Weigand, 43, of Portage, Indiana, was charged in an Indictment with possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force, the Federal Bureau of Investigation and the Indiana State Police.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
In Joint Operation, United States Secret Service and United States Attorney's Office Charge 68 People with Counterfeit Check ChargesRead the Press Release
ABINGDON, VIRGINIA -- Nearly 70 people, most of them residents of Southwest Virginia and Northeast Tennessee, have been or will be arrested during a sweeping joint operation headed by the United States Secret Service and the United States Attorney’s Office for the Western District of Virginia.
Beginning the morning of February 20 and continuing through February 21, agents with the Secret Service, US Marshal’s Service and Washington County Sheriff’s Office will make 68 total arrests throughout the region.
Each of the 68 defendants have been charged in Federal criminal complaints with a single count of conspiracy to possess with the intent to defraud, false and fictitious checks appearing and purporting to be actual financial instruments issued under the authority of an organization.
“Today’s arrests are the product of a long running, multi-agency investigation into counterfeit check cashing in our district,” United States Attorney Timothy J. Heaphy said today. “The Secret Service has done an incredible job supervising this investigation with the assistance of other agencies. The law enforcement collaboration in this matter has made possible the numerous and significant charges faced by these defendants.”
“This case is an example of how, by working together, law enforcement at the local and federal level can make our communities safer and stronger. The Secret Service truly believes in this partnership approach to law enforcement, especially when we can combine our resources to make a significant impact and fight these financial crimes in the communities where we live,” said William Frantzen, Special Agent in Charge for the United States Secret Service’s Richmond Division.
An affidavit attached to the criminal complaint claims the 68 defendants charged this week were part of a conspiracy that attempted to cash fraudulent checks at various retails locations throughout Southwest Virginia and Northeast Tennessee. The defendants are charged with presenting fraudulent Comdata Comchecks claiming to be issued by local trucking companies.The investigation of the case is being conducted by the United States Secret Service, the Washington County Sheriff’s Office, the United States Marshal’s Service, the Scott County Sheriff’s Office, the Sullivan County Tennessee Police Department and the Kingsport Tennessee Police Department. Assistant United States Attorney Randy Ramseyer will prosecute the case for the United States.
A criminal Complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Houstonian Convicted of Receiving Child PornographyRead the Press Release
HOUSTON – Sean Louis Walsh, 30, a Houston resident, has entered a guilty plea to receipt of child pornography, United States Attorney Kenneth Magidson announced today.
Walsh had been identified in an earlier investigation involving a company that operated a “nudist” website. On Sept. 16, 2011, inspectors with the U.S. Postal Inspection Service (USPIS) sent a mailing to Walsh at his home address in Houston. The mailing contained an undercover name and address and invited individuals to become a customer of the undercover company which was supposed to be a leader in taboo and forbidden videos. There was an invitation to request a free catalog specific to the customer’s desires and the flyer also had a checklist for the customer to note such desires.
In November 2011, inspectors received an order from Walsh for two DVDs in the mail, one of which was clearly described as containing child pornography, and a check for $50 in his name. The video depicted two prepubescent boys, approximately 9-10 years old and a pubescent female, approximately 11-12 years old engaging in oral sex and masturbation.
On Dec. 6, 2011, a search warrant was executed at the home of Sean Walsh, at which time agents seized several media devices. A forensic exam was conducted on three computers found in Walsh’s bedroom which yielded approximately 4,630 images and 322 videos of child pornography. Walsh was shown copies of the emails and correspondence and he acknowledged that he had sent or received the items.
U.S. District Judge Nancy Atlas, who accepted the guilty plea, has set sentencing for May 9, 2013. At that time, he faces at least five and up to 20 years imprisonment and a maximum fine of $250,000. Upon completion of any prison term imposed, Walsh also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
This case, prosecuted by Assistant United States Attorney Robert Stabe and investigated by USPIS, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Grand Jury for the District of NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 26 indictments charging 30 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Tomas Barrios-Samaniego is charged with being an alien illegally in the United States in possession of a firearm, to wit: a Walther P22 .22 caliber firearm. The maximum possible penalty includes imprisonment of up to 10 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Cesar Cabrera-Juarez, age 29, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about December 19, 2012, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Larry K. Christiansen, age 33, and Michelle C. Christiansen, age 43, both of Omaha, are charged in a two count indictment. Count I alleges the defendants conspired together and with others beginning from an unknown date but at least as early as January 1, 2010, and continuing to on or about October 31, 2012, to manufacture and attempt to manufacture 100 or more marijuana plants. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about October 31, 2012, the defendants possessed with intent to distribute less than 50 kilograms of marijuana. The maximum possible penalty includes imprisonment of up to 20 years, a $1 million fine, a 5 year term of supervised release and a $100 special assessment. Count III alleges that on or about October 31, 2012, Larry K. Christiansen possessed a Black Rain Ordinance .223 caliber rifle, during, in relation to, and in furtherance of the drug trafficking offense alleged in Count II. The maximum possible penalty includes imprisonment of not less than 5 years and up to life to be served consecutive to any other sentence imposed, a $250,000 fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to:
a. $146,197.00 in United States currency;
b. 2007 Chevrolet Silverado 2500;
c. 2011 Cadillac SRX;
d. 2012 Chevrolet Corvette;
e. 2012 Harley Davidson FLSTF Fat Boy Motorcycle;
f. 2013 Harley Davidson FLS Softail Slim Motorcycle;
g. Eight 100 Troy Ounce silver bars;
h. Seventy-four 1 Troy Ounce silver round;
i. Five 10 Troy Ounce silver bars;
j. One 5 Troy Ounce silver bar;
k. Five 1 Troy Ounce silver bars;
l. Two 1 Troy Ounce gold American Buffalo gold coins;
m. One 1 Troy Ounce gold Canadian Maple Leaf gold coin;
n. Black Rain Ordinance .223 Caliber Rifle;
o. DPMS Panther Arms .223 Rifle;
p. Beretta CX4 Storm .45 cal Auto Machine Pistol;
q. Black Rain Ordinance Rifle;
r. Smith and Wesson MP-15 Rifle;
s. HK MR762A1 Rifle;
t. Lot 21, in Deer Creek, a Subdivision, locally known as 7361 North 122nd Avenue Circle, Omaha, Douglas County, Nebraska; and
u. Lot 134, Pine Creek, a Subdivision, locally known as 16221 Young Street, Omaha, Douglas County, Nebraska, seized on October 31, 2012, should be forfeited to the United States.
* Randy Lee Contreras, age 35, and Veronica Contreras, age 25, both of Culbertson, Nebraska, are charged with conspiring together and with others to possess and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine beginning on or about November 2012, and continuing to on or about December 7, 2012. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* John R. Creel, Sr., age 59, of Omaha, is charged with failure to register as a Sex Offender in the State of Nebraska from on or about October 2012 through January 2013. The maximum penalty for this count includes imprisonment of 10 years, a fine of $250,000, a term of supervised release for life, and a special assessment of $100.
* John Harvey Deming, age 26, of Sioux City, Iowa, is charged with Assault in the Third Degree. On or about March 23, 2012, Deming assaulted and caused bodily injury to an Indian female minor within the boundaries of the Omaha Indian Reservation. The maximum penalty for this count includes imprisonment of 6 months, a $1,000 fine, supervised release for 1 year, and a special assessment of $10.
* Jeremy David Evans, age 30, of Carol Stream, Illinois, is charged with bank robbery of Bank of the West, 7910 Cass Street, Omaha, Nebraska, on or about October 10, 2012, in the amount of approximately $11,340. The maximum possible penalty, if convicted, includes 20 years imprisonment, a fine of $250,000, a 3 year term of supervised release, and a $100 special assessment.
* Matthew David Fell, age 29, of Waterloo, Iowa, is charged in a two-count indictment. Counts I and II charge that on or about June 18, 2012, and June 25, 2012, respectively, Fell made threats via the mail to kill unspecified individuals and to unlawfully damage real and personal property. The maximum possible penalty for each Count includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Ismael Francisco-Francisco, age 28, of Omaha, is charged with illegal reentry into the United States on or about December 17, 2012, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Christi Leigh Freemont, age 30, of Winnebago, Nebraska, is charged in a one-count Indictment with embezzlement from an Indian tribe. From on or about January 1, 2012, and continuing to on or about June 4, 2012, Freemont, an employee of the Winnebago Tribe of Nebraska, embezzled more than $1,000 for her own use from the Winnebago Tribe of Nebraska. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, supervised release of 3 years, and a special assessment of $100.
* Troy Gee, age 34, of Omaha, is charged in a 15 count indictment. Count I alleges that on or about September 27, 2012, the defendant distributed 28 grams or more of a mixture or substance containing a detectable amount of crack cocaine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Counts II through VII allege that on or about August 24, 2012, the defendant sold an individual an H&R Topper 12 gauge break open shotgun (Count II), a Remington Fieldmaster 572 .22 caliber rifle (Count III), a Remington Wingmaster 870 12 gauge shotgun (Count IV), a Ruger 10/22 .22 caliber semi-automatic rifle (Count V), a Squires Bingham Squibman 20A .22 caliber semi-automatic rifle (Count VI), and a Baikal Russia, imported by EAA, MP-153 12/89 (Count VII), knowing the individual had previously been convicted of a felony. The maximum possible penalty for each count includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts VIII through XI allege that on or about September 5, 2012, the defendant sold an individual a Harrington and Richardson model 349 Gamemaster 12 gauge bolt action shotgun (Count VIII), a Remington model 1100 12 gauge semi-automatic shotgun (Count IX), and two Arisaka bolt action rifles (Counts X and XI), knowing the individual had previously been convicted of a felony. The maximum possible penalty for each count includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts XII through XIV allege that on or about September 27, 2012, the defendant sold an individual a DPMS model A15.233 caliber semi-automatic rifle (Count XII), a Taurus model PT740 slim .40 caliber semi-automatic pistol (Count XIII) and a Colt model Diamondback .38 caliber revolver (Count XIV), knowing the individual had been previously convicted of a felony. The maximum possible penalty for each count includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count XV alleges that on or about October 25, 2012, the defendant possessed a Romarm Cugir/WASR 10/63 UF 7.62 caliber semi-automatic rifle from which the serial number had been removed, altered and obliterated. The maximum possible penalty for this count includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Ilman Jose Gonzalez-Davila, age 29, of Grand Island, Nebraska, is charged with being an illegal alien in possession of a firearm on or about December 31, 2012. The penalty for this count includes imprisonment of 10 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II alleges that on or about December 31, 2012, Gonzalez-Davila was in possession of an unregistered firearm. The penalty for this count includes imprisonment of 10 years, a fine of $10,000, followed by a term of supervised release of 3 years, and a special assessment of $100.
* Gabriel Gonzalez-De La Cruz, age 38, of Columbus, Nebraska, is charged with illegal reentry into the United States on or about January 1, 2013, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Floyd Victor Johnson, age 21, of Niobrara, Nebraska, is charged with sexual abuse of a minor sometime between on or about April 1, 2011, and on or about May 15, 2011, within the Santee Sioux Indian Reservation. The maximum penalty includes imprisonment of 15 years, a fine of $250,000, supervised release for life, and a $100 special assessment.
* Tyler Joseph Keup, age 29, of North Platte, Nebraska, is charged in a two count indictment. Count I alleges that beginning on or about October 1, 2012, and continuing until on or about November 25, 2012, the defendant conspired with others to distribute and possess with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about November 2, 2012, the defendant possessed with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.* Moises Mendez-Coti, age 30, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about February 3, 2013, following deportation as a felon. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Isidro Ortiz, Jr., age 33, is charged in a three count indictment. Count I alleges that beginning on or about October 1, 2012, and continuing until on or about November 25, 2012, the defendant conspired with others to distribute and possess with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about November 2, 2012, the defendant possessed with intent to distribute 5 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count III alleges that on or about November 19, 2012, the defendant, having previously been convicted of a felony, was in possession of three firearms: a Winchester, model 1400, 12 gauge shotgun, a Smith and Wesson SW40VE, .40 caliber pistol, and a Jimenez Arms J.A. NINE, 9mm pistol. The maximum possible penalty includes imprisonment of 10 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violations alleged in the indictment, including but not limited to $2,000.00 in United States currency seized on November 19, 2012, from the purse of Angel Benitez and $770 in United States currency seized from Angel Benitez on November 1, 2012, should be forfeited to the United States.* Troy M. Ortmeier, age 45, of West Point, Nebraska, is charged with four counts of wire fraud from on or about July 2, 2008, to on or about September 1, 2011. It is alleged that Ortmeier, Manager of Ortmeier & Associates under a Broker-Sales Associate Contract and a Real Estate Broker, paid himself from the Real Estate Trust Account and from the Operating Account, monies to which he was not entitled, in addition to his commissions and monthly payment which were legitimate payments to himself from Ortmeier & Associates. Ortmeier made false entries in Ortmeier & Associates’ electronic bookkeeping system to conceal the unauthorized payments. Ortmeier also sent falsified Reconciliation Detail Reports to the owners of Ortmeier & Associates. The maximum possible penalty for each of these counts includes imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of these violations should be forfeited to the United States.
* Sergio Arturo Portillo-Lujan, age 30, of Omaha, is charged with illegal reentry into the United States on or about December 11, 2012, following deportation as a felon. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Jairo Rodriguez, age 27, who was previously convicted of possession of a firearm with an obliterated serial number, a felony, is charged with being in possession of a firearm, to wit: a Smith and Wesson Bodyguard .380 handgun and .380 ammunition on or about February 8, 2013. The maximum possible penalty includes imprisonment for 10 years, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jhonatan Roman-Heredia, age 24, Virgilio Roman-Chadez, age 48, and Gonzalo Arredondo-Sicairos, age 27, of Omaha, are charged in a four count indictment. Count I alleges that beginning from an unknown date but at least as early as January 1, 2012, and continuing to on or about February 8, 2013, the defendants conspired together and with others to possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty includes imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release and a $100 special assessment. Counts II, III, and IV allege that on or about January 17, 29, and February 5, 2013, Gonzalo Arredondo-Sicairos distributed 5 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty for each count includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained by Jhonatan Roman-Heredia and Virgilio Roman-Chaidez, directly or indirectly as a result of the violations alleged in the indictment, including but not limited to $113,817.00 in United States currency seized on February 8, 2013, should be forfeited to the United States.
* Valentin Saenz-Tarrango, age 28, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about January 31, 2013, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Christopher S. Stevens, age 51, of Omaha, is charged with theft of funds from the United States Social Security Administration beginning on or about March 18, 2007, and up to and including May 16, 2012, by receiving Supplemental Security Income in the amount of approximately $43,722. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, supervised release of 3 years, and a $100 special assessment.
* Jose Suarez-Estrada, age 46, of Omaha, is charged with illegal reentry into the United States on or about February 8, 2013, following deportation as a felon. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Gustavo Armenta Trujillo, also known as Gustavo Trujillo Armenta, also known as Gustabo Trujillo Armenta, also known as Gustavo Armenta-Trujillo, also known as Carlos Mendoza-Armenta, also known as Marcos Armenta Valdez, also known as Miguel Carasco Perez, also known as Miguel Contreras Perez, age 41, of Lincoln, is charged in a two count indictment. Count I alleges that on or about January 28, 2013, the defendant possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about January 28, 2013, the defendant who had previously been excluded from the United States following a conviction for an aggravated felony, to wit: possession with intent to deliver a controlled substance, was found in the United States. The maximum possible penalty includes imprisonment of not less than 20 years, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to $697.00 in United States currency seized from the defendant on or about January 28, 2013, should be forfeited to the United States.
* Eduardo Valenzuela-Nunez, also known as Eden Mora-Castro, also known as Damien Palacios, also known as Lalo, also known as Gordo, also known as Viejon, age 34, is charged in a two count indictment. Count I alleges that beginning on or about December 1, 2009, and continuing to on or about November 27, 2012, the defendant conspired with others to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 10 years and up to life, a $10 million dollar fine, a 5 year term of supervised release and a $100 special assessment. Count II alleges that on or about October 4, 2012, the defendant distributed 50 grams or more of actual methamphetamine. The maximum possible penalty includes imprisonment of not less than 10 years and up to life, a $10 million dollar fine, a 5 year term of supervised release and a $100 special assessment.Grand Jury Indicts Henry County Man Charged with Production, Possession of Child PornograpyRead the Press Release
Rock Island, Ill. – A federal grand jury has returned an indictment charging a Henry county man, Steven D. Ford, 27, of Cambridge, Ill., with production and possession of child pornography. Ford was previously arrested and charged by federal criminal complaint in July 2012. Ford has remained in federal law enforcement custody since his arrest; the court granted Ford’s request for psychiatric evaluation at a federal Bureau of Prisons facility. During a court hearing on Jan. 29, 2013, before U.S. Magistrate Judge Thomas J. Shields, Ford was determined mentally competent and remanded to the custody of the U.S. Marshals Service.
The indictment charges Ford with two counts of production of child pornography and one count of possession of child pornography. The crimes allegedly occurred from June 2011 to July 2012. The indictment also seeks forfeiture of Ford’s computer, cell phone and related equipment allegedly used in the offenses.
The charges were investigated by the U.S. Secret Service, the Henry County Sheriff’s Office and the Davenport Police Department. The case is being prosecuted by Assistant U.S. Attorney Kirk W. Schuler.
If convicted, the statutory penalty for each count of production of child pornography is a mandatory minimum 15 years to 30 years in prison. For possession of child pornography, the penalty is up to 20 years in prison. Each of the child pornography offenses carry terms of supervised release of up to life following any term of imprisonment.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Indicts Henry County Man Charged with Production, Possession of Child PornographyRead the Press Release
Rock Island, Ill. – A federal grand jury has returned an indictment charging a Henry county man, Steven D. Ford, 27, of Cambridge, Ill., with production and possession of child pornography. Ford was previously arrested and charged by federal criminal complaint in July 2012. Ford has remained in federal law enforcement custody since his arrest; the court granted Ford’s request for psychiatric evaluation at a federal Bureau of Prisons facility. During a court hearing on Jan. 29, 2013, before U.S. Magistrate Judge Thomas J. Shields, Ford was determined mentally competent and remanded to the custody of the U.S. Marshals Service.
The indictment charges Ford with two counts of production of child pornography and one count of possession of child pornography. The crimes allegedly occurred from June 2011 to July 2012. The indictment also seeks forfeiture of Ford’s computer, cell phone and related equipment allegedly used in the offenses.
The charges were investigated by the U.S. Secret Service, the Henry County Sheriff’s Office and the Davenport Police Department. The case is being prosecuted by Assistant U.S. Attorney Kirk W. Schuler.
If convicted, the statutory penalty for each count of production of child pornography is a mandatory minimum 15 years to 30 years in prison. For possession of child pornography, the penalty is up to 20 years in prison. Each of the child pornography offenses carry terms of supervised release of up to life following any term of imprisonment.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Charges Peoria Teacher with Enticing A Minor for SexRead the Press Release
Peoria, Ill. – A federal grand jury today returned an indictment charging a Peoria, Ill., teacher with enticement of a minor. Amanda May Ludwig, 28, a teacher at Manual High School in Peoria, Ill., was previously arrested and charged with the offense in a federal criminal complaint filed on Feb. 4, 2013.
Following Ludwig’s arrest, she appeared on Feb. 11, 2013, before U.S. District Judge Michael M. Mihm in Peoria. Ludwig was released from custody to a third-party custodian under home incarceration.
The indictment alleges that from about Aug. 4, 2012, to Jan 31, 2013, Ludwig used a cellular telephone to entice a minor, under the age of 18, to engage in sexual activity.
The charges were investigated by the Peoria Police Department with assistance from officers of Peoria School District 150. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Keith.
If convicted, the statutory penalty for the offense is 10 years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Grand Jury Charges Peoria Teacher with Enticing A Minor for SexRead the Press Release
Peoria, Ill. – A federal grand jury today returned an indictment charging a Peoria, Ill., teacher with enticement of a minor. Amanda May Ludwig, 28, a teacher at Manual High School in Peoria, Ill., was previously arrested and charged with the offense in a federal criminal complaint filed on Feb. 4, 2013.
Following Ludwig’s arrest, she appeared on Feb. 11, 2013, before U.S. District Judge Michael M. Mihm in Peoria. Ludwig was released from custody to a third-party custodian under home incarceration.
The indictment alleges that from about Aug. 4, 2012, to Jan 31, 2013, Ludwig used a cellular telephone to entice a minor, under the age of 18, to engage in sexual activity.
The charges were investigated by the Peoria Police Department with assistance from officers of Peoria School District 150. The case is being prosecuted by Assistant U.S. Attorney Thomas A. Keith.
If convicted, the statutory penalty for the offense is 10 years to life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Golden Heart Executive Director Sentenced to Almost 4 Years in Federal Prison for ConspiracyRead the Press Release
In-home care operator admits to altering and falsifying company records
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that the founder and executive director of a St. Albans-based in-home care business was sentenced to 46 months in federal prison for conspiracy in connection with a health care fraud investigation. Shida S. Jamie, 63, owner of Golden Heart In Home Care, LLC (Golden Heart), previously pleaded guilty in October 2012. Jamie admitted that in or about August or early September 2009, she altered and falsified records and documents of Golden Heart. Golden Heart specialized in providing in-home care services to the elderly and disabled under a contract with Putnam Aging Inc., an authorized West Virginia Medicaid provider.
U.S. Attorney Booth Goodwin said, “Today’s sentencing underscores my office’s commitment to not only protect the nation’s health care services, but also to vigorously pursue the criminals who steal from it.”
Jamie admitted that she directed office staff to review the personnel files of caregivers who provided personal care services and directed staff members to place newly created and altered documents into personnel files that contained missing training documents. Jamie further admitted that she agreed with known Golden Heart employees to falsify signatures on training documents to make it appear as if caregivers had received training in compliance with the personal care program guidelines. Jamie also directed that those files be provided to Putnam Aging so that Putnam Aging would allow the Medicaid program to be billed for personal care services provided by Golden Heart.
Jamie also admitted that in late December and early January 2010, she learned about a West Virginia Department of Health and Human Resources Medicaid Fraud Control Unit (MFCU) investigation regarding transportation hours and mileage expenses that had been claimed by Golden Heart under the Aged and Disabled Waiver Program. Jamie admitted that she was aware that a known employee of Golden Heart lacked a valid drivers’ license and she agreed to alter existing records to make it appear as if another known employee with a valid driver’s license had performed the services. The altered records were then provided to a MFCU investigator. By the defendant’s actions, she intended to prevent the MFCU from learning that Golden Heart had claimed transportation and mileage expenses to which it was not entitled to be reimbursed under Medicaid.
The Court recognized that entitlement programs are a significant portion of the federal budget, funded by taxpayers. The Court also noted that health care fraud is one of the reasons the country is in financial trouble and today’s sentencing must serve as a deterrent to others who attempt to defraud entitlement programs. The Court further acknowledged that the government is not only justified but required to aggressively pursue such fraud, as they have done here.
In October 2012, the United States settled three civil cases that had been filed against Jamie and Golden Heart to recover losses associated with the fraud against Medicaid, to freeze assets to preserve them for restitution, and to forfeit assets derived from the proceeds of the fraud. The civil settlement resolves all three civil actions by recovering all known assets of Jamie and Golden Heart which represent proceeds of the fraud. The money derived from the settlement will be used to make restitution to Medicaid for the losses it sustained from Jamie and Golden Heart’s fraudulent conduct.
The United States Department of Health and Human Services, the Federal Bureau of Investigation, the West Virginia State Police and the MFCU conducted the investigation. Assistant United States Attorneys Meredith George Thomas, Philip Wright and Eumi Choi handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
Garland Man Sentenced to 20 Years in Federal Prison for Downloading Child Pornography from the InternetRead the Press Release
Defendant Downloaded Images of Children as Young as Two-Years-Old
DALLAS — Isaac Heredia Luciano, 25, of Garland, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 20 years in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to an Information charging one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Luciano has been in federal custody since he surrendered to authorities in October 2012 on a related federal charge outlined in a criminal complaint.
According to documents filed in the case, a detective with the Garland Police Department who was working in an undercover capacity and using peer-to-peer file sharing program to investigate the distribution of child pornography, identified a computer that was sharing images of child pornography. In fact, on various dates from September 2011 until August 2012, the detective downloaded 27 images and videos of child pornography from that computer, including videos involving children as young as two-years-old, who could be heard on the videos crying and yelling “mommy.”
In late August 2012, a search warrant was executed at Luciano’s home in Garland and computers and related storage equipment were seized. Luciano admitted that he had been downloading child pornography, and in fact, had downloaded child pornography the previous day. He explained that he had a “sickness” with child pornography, admitted that videos he downloaded ranged from “diaper porn” to toddlers to teens, and that he possessed videos that included bondage and other sadistic acts involving minors.
This matter was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Garland Police Department’s Internet Crimes Against Children (ICAC) Task Force and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
Former U.S. Corrections Officer Pleads Guilty to Theft of Government PropertyRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a former correctional officer at the United States Penitentiary-Lewisburg pleaded guilty today to a charge of theft of government property in federal court in Williamsport before U.S. District Court Judge Christopher C. Conner.
According to United States Attorney Peter J. Smith, a criminal Information was filed in January 2013 charging Fred Hagenbuch, age 52, of Danville, Pennsylvania, with theft of government property. The property stolen was from the Federal Correctional Complex at Allenwood and included electrical conduit, fence post, and mesh fencing valued at approximately $1,545. At the time of the theft in December 2010, Hagenbuch was employed as a Senior Officer Specialist at the Lewisburg Penitentiary.
This case was investigated by the U.S. Department of Justice's Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney William Simmers.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years' imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Officials and Broker of Peanut Corporation of America Indicted Related to Salmonella-Tainted Peanut ProductsRead the Press Release
A 76-count indictment was unsealed yesterday charging four former officials of the Peanut Corporation of America (PCA) and a related company with numerous charges relating to salmonella-tainted peanuts and peanut products, the Justice Department announced today. Stewart Parnell, 58, of Lynchburg, Va.; Michael Parnell, 54, of Midlothian, Va.; and Samuel Lightsey, 48, of Blakely, Ga., have been charged with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy. Stewart Parnell, Lightsey and Mary Wilkerson, 39, of Edison, Ga., were also charged with obstruction of justice.
Also yesterday, an information filed against Daniel Kilgore, 44, of Blakely was unsealed. On the same day that charges against Kilgore were filed, he pleaded guilty to that information, which charged him with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy.
The investigation into the activity at PCA began in 2009, after the Food and Drug Administration and the U.S. Centers for Disease Control and Prevention traced a national outbreak of salmonella to a PCA plant in Blakely as the likely source. As alleged in the indictment, the Blakely plant was a peanut roasting facility where PCA roasted raw peanuts and produced granulated peanuts, peanut butter, and peanut paste; PCA sold these peanut products to its customers around the country.
The charging documents charge that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products, and in so doing misled PCA customers. As alleged in the indictment, those customers ranged in size from small, family-owned businesses to global, multibillion-dollar food companies.
“When those responsible for producing or supplying our food lie and cut corners, as alleged in the indictment, they put all of us at risk,” said Stuart F. Delery, who heads the Justice Department’s Civil Division. “The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the safety of Americans who have done nothing more than eat a peanut butter and jelly sandwich.”
Although PCA is now no longer in business, the allegations against each of the defendants arise from his or her conduct while at PCA and a related company. The following allegations are set forth in the indictment: Stewart Parnell was an owner and president of PCA; Michael Parnell, who worked at P.P. Sales, was a food broker who worked on behalf of PCA; Lightsey was the operations manager at the Blakely plant from on or about July 2008 through February 2009; and Wilkerson held various positions at the Blakely plant – receptionist, office manager and quality assurance manager – from on or about April 2002 through February 2009. As charged in the information, Kilgore served as operations manager of the PCA plant in Blakely from on or about June 2002 through May 2008.
“We all place a great deal of trust in the companies and individuals who prepare and package our food, often times taking it for granted that the public’s health and safety interests will outweigh individual and corporate greed,” said Michael Moore, U.S. Attorney for the Middle District of Georgia. “Unfortunately and as alleged in the indictment, these defendants cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety. This investigation was complex and extensive, and I credit the cooperation of our federal agencies with not only making sure that the cause of this outbreak was uncovered and the people responsible called to account, but also with working hard every day to make sure that parents across the country can feel confident that the food they are feeding their children is safe.”
The charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in several schemes by which they defrauded PCA customers about the quality and purity of their peanut products and specifically misled PCA customers about the existence of foodborne pathogens, most notably salmonella, in the peanut products PCA sold to them. As the charging documents allege, the members of the conspiracy did so in several ways – for example, even when laboratory testing revealed the presence of salmonella in peanut products from the Blakely plant, Stewart Parnell, Michael Parnell, Lightsey and Kilgore failed to notify customers of the presence of salmonella in the products shipped to them.
In addition, the charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to fabricate certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including results concerning the presence or absence of pathogens. As alleged in the charging documents, on several occasions these four defendants participated in a scheme to fabricate COAs stating that shipments of peanut products were free of pathogens when, in fact, there had been no tests on the products at all or when the laboratory results showed that a sample tested positive for salmonella.
After the salmonella outbreak that gave rise to this investigation, FDA inspectors visited the plant several times in January 2009. According to the indictment, the inspectors asked specific questions about the plant, its operations, and its history, and, in several instances, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to these questions.
“The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable,” said FDA Commissioner Margaret A. Hamburg, M.D. “The health of our families and the safety of our food system is too important to be thwarted by the criminal acts of any individual or company.”
Stewart Parnell, Michael Parnell, and Samuel Lightsey are each charged with two counts of conspiracy; multiple counts of introducing adulterated food into interstate commerce with the intent to defraud; multiple counts of introducing misbranded food into interstate commerce with the intent to defraud; multiple counts of interstate shipment fraud; and multiple counts of wire fraud. Stewart Parnell, Lightsey and Wilkerson are also charged with multiple counts of obstruction of justice.
Kilgore pleaded guilty to one count of conspiracy to commit fraud, one count of conspiracy to introduce adulterated and misbranded food into interstate commerce, eight counts of introducing adulterated food into interstate commerce with the intent to defraud, six counts of introducing misbranded food into interstate commerce with the intent to defraud, eight counts of interstate shipment fraud, and five counts of wire fraud.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The FBI was brought in to this matter to provide additional resources and expertise to a complex and very serious investigation. We fully understand the victim impact as a result of this salmonella outbreak and will be asking to hear from other possible victims in this matter.”
Individuals who feel that they may have been affected by or have become ill from tainted PCA products, and businesses that purchased products that were recalled as a result of the outbreak, should visit the following website for further details: https://forms.fbi.gov/pca-salmonella-tainted-product-case/
The case is being prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division of the Department of Justice and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Marietta Geckos, formerly a Trial Attorney with the Consumer Protection Branch, also worked on the prosecution. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations and the FBI.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
---
Due to public interest in this case, the Department of Justice is releasing documents that may not be in an accessible format. If you have a disability and the format of any material on the site interferes with your ability to access some information, please email the Department of Justice webmaster at [email protected] or contact Charles Miller at 202.514.2007. To enable us to respond in a manner that will be of most help to you, please indicate the nature of the accessibility problem, your preferred format (electronic format (ASCII, etc.), standard print, large print, etc.), the web address of the requested material, and your full contact information so we can reach you if questions arise while fulfilling your request.
Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader.Related Materials:
Kilgore Information
PCA Indictment
Principal Deputy Assistant Attorney General Stuart F. Delery Speaks at the PCA Pen and PadFormer Officials and Broker of Peanut Corporation of America Indicted Related to Salmonella-Tainted Peanut ProductsRead the Press Release
Allegations Include Mail and Wire Fraud, Introduction of Adulterated and Misbranded Food into Interstate Commerce with Intent to Defraud or Mislead, and ConspiracyWASHINGTON – A 76-count indictment was unsealed yesterday charging four former officials of the Peanut Corporation of America (PCA) and a related company with numerous charges relating to salmonella-tainted peanuts and peanut products, the Justice Department announced today. Stewart Parnell, 58, of Lynchburg, Va.; Michael Parnell, 54, of Midlothian, Va.; and Samuel Lightsey, 48, of Blakely, Ga., have been charged with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy. Stewart Parnell, Lightsey and Mary Wilkerson, 39, of Edison, Ga., were also charged with obstruction of justice.
Also yesterday, an information filed against Daniel Kilgore, 44, of Blakely was unsealed. On the same day that charges against Kilgore were filed, he pleaded guilty to that information, which charged him with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy.
The investigation into the activity at PCA began in 2009, after the Food and Drug Administration and the U.S. Centers for Disease Control and Prevention traced a national outbreak of salmonella to a PCA plant in Blakely as the likely source. As alleged in the indictment, the Blakely plant was a peanut roasting facility where PCA roasted raw peanuts and produced granulated peanuts, peanut butter, and peanut paste; PCA sold these peanut products to its customers around the country.
The charging documents charge that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products, and in so doing misled PCA customers. As alleged in the indictment, those customers ranged in size from small, family-owned businesses to global, multibillion-dollar food companies.
“When those responsible for producing or supplying our food lie and cut corners, as alleged in the indictment, they put all of us at risk,” said Stuart F. Delery, who heads the Justice Department’s Civil Division. “The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the safety of Americans who have done nothing more than eat a peanut butter and jelly sandwich.”
Although PCA is now no longer in business, the allegations against each of the defendants arise from his or her conduct while at PCA and a related company. The following allegations are set forth in the indictment: Stewart Parnell was an owner and president of PCA; Michael Parnell, who worked at P.P. Sales, was a food broker who worked on behalf of PCA; Lightsey was the operations manager at the Blakely plant from on or about July 2008 through February 2009; and Wilkerson held various positions at the Blakely plant – receptionist, office manager and quality assurance manager – from on or about April 2002 through February 2009. As charged in the information, Kilgore served as operations manager of the PCA plant in Blakely from on or about June 2002 through May 2008.
“We all place a great deal of trust in the companies and individuals who prepare and package our food, often times taking it for granted that the public’s health and safety interests will outweigh individual and corporate greed,” said Michael Moore, U.S. Attorney for the Middle District of Georgia. “Unfortunately and as alleged in the indictment, these defendants cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety. This investigation was complex and extensive, and I credit the cooperation of our federal agencies with not only making sure that the cause of this outbreak was uncovered and the people responsible called to account, but also with working hard every day to make sure that parents across the country can feel confident that the food they are feeding their children is safe.”
The charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in several schemes by which they defrauded PCA customers about the quality and purity of their peanut products and specifically misled PCA customers about the existence of foodborne pathogens, most notably salmonella, in the peanut products PCA sold to them. As the charging documents allege, the members of the conspiracy did so in several ways – for example, even when laboratory testing revealed the presence of salmonella in peanut products from the Blakely plant, Stewart Parnell, Michael Parnell, Lightsey and Kilgore failed to notify customers of the presence of salmonella in the products shipped to them.
In addition, the charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to fabricate certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including results concerning the presence or absence of pathogens. As alleged in the charging documents, on several occasions these four defendants participated in a scheme to fabricate COAs stating that shipments of peanut products were free of pathogens when, in fact, there had been no tests on the products at all or when the laboratory results showed that a sample tested positive for salmonella.
After the salmonella outbreak that gave rise to this investigation, FDA inspectors visited the plant several times in January 2009. According to the indictment, the inspectors asked specific questions about the plant, its operations, and its history, and, in several instances, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to these questions.
“The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable,” said FDA Commissioner Margaret A. Hamburg, M.D. “The health of our families and the safety of our food system is too important to be thwarted by the criminal acts of any individual or company.”
Stewart Parnell, Michael Parnell, and Samuel Lightsey are each charged with two counts of conspiracy; multiple counts of introducing adulterated food into interstate commerce with the intent to defraud; multiple counts of introducing misbranded food into interstate commerce with the intent to defraud; multiple counts of interstate shipment fraud; and multiple counts of wire fraud. Stewart Parnell, Lightsey and Wilkerson are also charged with multiple counts of obstruction of justice.
Kilgore pleaded guilty to one count of conspiracy to commit fraud, one count of conspiracy to introduce adulterated and misbranded food into interstate commerce, eight counts of introducing adulterated food into interstate commerce with the intent to defraud, six counts of introducing misbranded food into interstate commerce with the intent to defraud, eight counts of interstate shipment fraud, and five counts of wire fraud.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The FBI was brought in to this matter to provide additional resources and expertise to a complex and very serious investigation. We fully understand the victim impact as a result of this salmonella outbreak and will be asking to hear from other possible victims in this matter.”
The PCA indictment can be viewed at: www.justice.gov/iso/opa/resources/61201322111426350488.pdf.
Kilgore’s filed information can be viewed at: www.justice.gov/iso/opa/resources/22820132211141246302.pdf.
Individuals who feel that they may have been affected by or have become ill from tainted PCA products, and businesses that purchased products that were recalled as a result of the outbreak, should visit the following website for further details: https://forms.fbi.gov/pca-salmonella-tainted-product-case/
The case is being prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division of the Department of Justice and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia. Marietta Geckos, formerly a Trial Attorney with the Consumer Protection Branch, also worked on the prosecution. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations and the FBI.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
# # #13-220
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Former Director of Navajo Economic Development Project Pleads Guilty to Evading Federal TaxesRead the Press Release
ALBUQUERQUE – Hak Ghun, 62, of Durango, Colo., pled guilty this morning to a federal tax evasion charge under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Ghun will be sentenced to prison for a period of 12 to 18 months. He also will be required to pay $249,567 in restitution to the Internal Revenue Service (IRS).
Ghun was charged on April 10, 2012, in a three-count indictment with evading an aggregate of $367,809 in federal taxes during tax years 2005, 2006 and 2007. According to the indictment, Ghun was the chief executive officer of BCDS Manufacturing, Inc. (BCDS), a manufacturing company located in Shiprock, N.M. In 2003 and 2004, the Navajo Nation invested economic development funds in BCDS and became the majority owner of the company, and in 2006, obtained a $2.2 million loan for the purpose of expanding the BCDS facility in Shiprock. The indictment alleged that, between 2005 and 2007, Ghun used BCDS funds to pay his personal expenses and evaded his personal tax obligations on those funds by concealing his conduct from BCDSDs corporate accountant and by filing false corporate tax returns on behalf of BCDS.
During today’s proceedings, Ghun entered a guilty plea to Count 2 of the indictment charging him with evading federal income taxed in 2006. In his plea agreement, Ghun admitted that, during 2005, 2006 and 2007, he was the chief operating officer of BCDS, a company that sought military procurement contacts as a source of economic development for the Navajo Nation, and had access to the company’s bank accounts. Ghun also admitted withdrawing funds from BCDS’s bank accounts and spending a significant portion of the funds for himself. Ghun used the funds to make support payments to his ex-wife and paying for luxury cars, hotels stays and casino gambling. Ghun acknowledged that the funds he misused were taxable as personal income and that he failed to pay taxes on that income.
More specifically, Ghun admitted receiving gross income of $207,726 in calendar year 2005 and willfully evading approximately $29,197 in federal income taxes. He also admitted receiving gross income exceeding $620,361 in calendar year 2006 and willfully evading approximately $145,156 in federal income taxes, and receiving gross income exceeding $251,435 in taxable income in 2007 and evading approximately $65,214 in taxes.
The case was investigated by the IRS, Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Former Connecticut Resident Sentenced to 37 Months in Prison for Mortgage Fraud OffensesRead the Press Release
February 21, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that ERIC S. SCHERZ, 44, of Stuart, Fla., formerly of Barkhamsted, was sentenced yesterday by United States District Judge Vanessa L. Bryant in Hartford to 37 months of imprisonment, followed by three years of supervised release, for mortgage fraud offenses.
According to court documents and statements made in court, in October 2007, SCHERZ secured a $417,000 mortgage loan to finance the purchase of a property in Barkhamsted. In April 2008, SCHERZ created a fraudulent release of mortgage on the property stating that the lender, a fictitious company SCHERZ created, had received full payment of the loan. SCHERZ subsequently filed the fraudulent release of mortgage with the Town of Barkhamsted.
SCHERZ stopped making payments on his mortgage in March 2009 but, in April 2009, he made three fraudulent payments via wire transfer to his mortgage lender that he knew would be and were, in fact, reversed for insufficient funds.
In May 2009, SCHERZ sold the Barkhamsted property for $299,000 to a buyer who relied on the fraudulent release of mortgage as being genuine. At the time of the sale, SCHERZ’s unpaid principal balance on his mortgage was $410,718.56. SCHERZ did not use any of the $299,000 from the fraudulent sale to his pay his outstanding mortgage debt.
On January 6, 2012, SCHERZ waived his right to indictment and pleaded guilty to three counts of wire fraud.
SCHERZ has previously served a 70-month federal term of imprisonment for his role in a mortgage fraud scheme in Florida in the 1990s.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Michael J. Gustafson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former California Assemblyman Admits Defrauding Banks Out of $193,661 by Falsely Claiming to Be Identity Theft VictimRead the Press Release
LOS ANGELES – Carl Edward Washington, a former California Assemblyman who represented the state’s 52nd district, has agreed to plead guilty to federal bank fraud charges, admitting that he bilked financial institutions by falsely claiming to be the victim of identity theft.
As part of a plea agreement filed yesterday in United States District Court, Washington agreed to plead guilty to three counts of bank fraud for causing losses of $193,661 to financial institutions that include Farmers and Merchants Bank, First City Credit Union, and LA Financial Credit Union.
Washington, 47, a resident of Paramount who currently is employed as a division chief with the Los Angeles County Probation Department, admitted in the plea agreement that during a lengthy scheme that ran through the summer of 2011, he defrauded the three banks by concealing several unpaid debts – debts that he simply stopped paying – and his overall lack of creditworthiness.
Washington was able to hide his bad debts by filing a series of bogus police reports with the Los Angeles County Sheriff’s Department in which he falsely claimed to be the victim of identity theft. After filing the false police reports, Washington sent copies of the reports to the credit reporting agency Experian and demanded that the information relating to the bad debts be removed from his credit report. Once Experian removed this data from his credit report, Washington submitted applications for new credit cards to the victim banks, applications that failed to disclose all of his outstanding debts and the fact that he had negative information reported by other financial institutions removed from his credit report. Once the victim banks issued new credit cards to Washington, he purchased goods and services. But, after making several payments, Washington contacted Experian and, claiming that he was the victim of identity theft, requested that information related to the new credit cards be removed from his credit report. Washington admitted filing five false police reports with LASD.
Washington’s scheme was exposed when he attempted to refinance two auto loans through LA Financial. When the credit union examined Washington’s credit report, it discovered that the auto loans it had previously issued were not showing up on his credit report. LA Financial subsequently learned from Experian that Washington disputed he had earlier sought to refinance his auto loans and that he claimed to be a victim of identity theft. Because LA Financial knew Washington’s claims were false, it froze Washington’s credit card account and reported him to authorities.
Washington was elected to the California legislature in 1996, and he served in the Assembly until 2002. Washington later went to work for the Los Angeles County Probation Department, where he ran a unit called Intergovernmental Relations and Legislative Affairs. Washington has been on administrative leave from the Probation Department since his arrest in this case in September.
Washington is scheduled to enter his guilty pleas on Monday before United States District Judge S. James Otero. Once he pleads guilty, Washington will face a statutory maximum penalty of 30 years in federal prison for each of the three bank fraud counts. However, the parties have agreed that the United States Sentencing Guidelines call for a term of imprisonment of one year to 18 months. The actual sentence will be determined by Judge Otero later this year.
The case against Washington was investigated by the Federal Bureau of Investigation’s Public Corruption Squad.
Release No. 13-025
Final Defendant Sentenced in “Food Stamp” Fraud and Money Laundering Conspiracy Involving Grocery StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerOmar Yahya, 56, formerly known as Darnell Bernard Watts, was sentenced to 12 months one day in prison followed by three years of supervised release for his role in a conspiracy to use a Dayton grocery store to launder money and defraud the Supplemental Nutrition Assistance Program (SNAP). Yahya pleaded guilty to one count of conspiracy and one count of conspiracy to launder money.
Yahya and three co-defendants were also sentenced to repay $3.8 million, which represents a portion of the money involved in the scheme, and forfeit their interests in approximately $80,209 in bank accounts and cash, and four firearms seized during execution of a search warrant in May, 2011.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Joe Smith, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA), Darryl Williams, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Robert Booker, Executive Director, Ohio Investigative Unit and other members of the Ohio Organized Crime Investigations Commission Task Force announced the sentence handed down today by U.S. District Judge Timothy S. Black.
A federal grand jury indicted Yahya, along with Al-Idu al-Gaheem, 62, formerly known as Lawrence Phillips, Abdul R. Qadir, 64, formerly known as Frank Appleberry, Jr., and Abdul H. Yamini Sr, 71, formerly known as Larry Shipp, in March 2012 following a multi-agency investigation into illegal activities at the Five Pillars Market and Restaurant.
Between 2009 and 2011, the four conspired to traffic in electronic benefit cards in order to defraud the USDA’s Supplemental Nutrition Assistance Program (SNAP). The conspiracy caused more than $3.8 million in criminal proceeds in the form of USDA SNAP wire transfers to be deposited into various bank accounts and more than $1.2 million in criminal proceeds in the form of currency withdrawals to be made from the store’s accounts.
The other three defendants were also sentenced to twelve months and one day in prison by Judge Black on charges of conspiracy and conspiracy to launder money. Al-Gaheem was sentenced on December 13, 2012. Qadir was sentenced on October 25, 2012. Yamini was sentenced on December 20, 2012.
The investigation was conducted by a task force operating under the Ohio Organized Crime Investigation Commission. In addition to the agencies named above, other agencies participating in the task force and in this investigation include the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), the Ohio Bureau of Criminal Investigation, and police departments in Centerville, Kettering, Miamisburg, Moraine, Oakwood and West Carrollton.
Stewart commended the cooperative investigation by the task force members, and recognized Assistant U.S. Attorney Dwight Keller, who represented the United States in this case.
Federal Officials Arrest and Charge A Dozen Suspected Meth TraffickersRead the Press Release
Twelve suspected members of a methamphetamine and cocaine trafficking ring were arrested early Wednesday and today at the culmination of a yearlong investigation by the Drug Enforcement Administration and the Major Mexican Traffickers’ Strike Force. All but two of the defendants appeared in federal court this afternoon for arraignment on drug conspiracy charges.
These arrests are associated with the unsealing of a criminal complaint Wednesday charging 19 defendants with conspiracy to traffic methamphetamine and cocaine. The investigation, known as “Operation Crystal Haven,” focused on a long-term distribution ring which was importing methamphetamine and cocaine from Tijuana- and Guadalajara-based cartels into San Diego County, where it was then distributed in areas of northern San Diego County and elsewhere.
The task force is a multi-agency effort to focus on Mexico-based drug trafficking organizations with ties to the San Diego area. Its members include the DEA, FBI, IRS, and ICE, with assistance from other federal and local law enforcement agencies as well.
Including the previous arrest of another defendant in the case, as of today, a total of 13 defendants are in custody, charged with distributing methamphetamine and cocaine.
“We are relentlessly pursuing major trafficking organizations that operate in our neighborhoods and imperil our children,” said U.S. Attorney Laura Duffy. “It’s gratifying to wrap up a lengthy investigation like this one with many arrests and drug seizures, knowing the community is safer because of our efforts.”
“The conclusion of this investigation marks the end of a large scale methamphetamine transportation and distribution organization that has been operating in San Diego County,” says San Diego Drug Enforcement Administration Acting Special Agent in Charge William Sherman. “This organization was distributing multi-pound quantities of methamphetamine in our cities, and making a huge profit. Throughout the course of the investigation, DEA and its law enforcement partners seized large quantities of methamphetamine and arrested 13 people who will not be selling their product on our streets.”
N. Dawn Mertz, Acting Special Agent in Charge of IRS Criminal Investigation for the Los Angeles Field Office made the following comment on Operation Crystal Haven, “All drug trafficking organizations are motivated by profit and greed. By working closely with our law enforcement partners and using our financial expertise, IRS Criminal Investigation will continue to unravel the illicit financial networks created and used to launder the money generated by these narcotics organizations.”
Daphne Hearn, Special Agent in Charge, San Diego Field Office, said: “Through the combined efforts of local, state, and federal law enforcement, a significant methamphetamine criminal enterprise has been disrupted. The FBI will continue to work with our partners to make our communities a safer place.”
“ICE Homeland Security Investigations is committed to working together with our federal partners to combat dangerous drug trafficking that threatens public safety in our communities, “ said Derek Benner, special agent in charge for ICE Homeland Security in San Diego. “ Our mutual goal is to dismantle these distribution networks that are at the core of illicit drug sales in the U.S. There is no 3 better strategy to strengthen our law enforcement resources and achieve our goals than joint operations. ”
DEFENDANTS Case Number: 13mj0608 JOSE ISIDRO RODRIGUEZ-LARA
DAVID AGUILAR
ALMA JAIME
MANUEL MARCIAL
FELIPE GARCIA-GALLEGOS
GUADALUPE NATALIE PEREZ
JOSE LUIS LOPEZ
ROSALIA LOURDES NIEVES
ALICIA REYNA MARIN
LEONARDO GARCIA-GAYTAN
NANCY BLANCAS-PENA
SYLVIA SANCHEZ-ZARATE
SYLVIA LARA
JULIO CESAR RODRIGUEZ-ZARATE
MIGUEL GUTIERREZ-MARANTES
JOSE JUAN MANCILLA-MONJE
EDSON SOLIS-VALDOVINOS
NATHAN KAHAKULANI YASSO
HERNAN SEBASTIAN BERNAL Arrested 2/20/13
Arrested 2/20/13
Arrested 2/20/13
Arrested 2/20/13
Arrested 2/21/13
Arrested 2/20/13
Arrested 2/20/13
Arrested 2/20/13
Arrested 2/20/13
In state custody
Arrested 2/20/13
Arrested 2/20/13
Fugitive
Fugitive
Arrested 2/20/13
Fugitive
Fugitive
Fugitive
Fugitive
SUMMARY OF CHARGESTitle 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Methamphetamine
AGENCIES
Maximum Penalties: Life in Custody; Minimum Custody: 10 years; Maximum Fine: $4 millionDrug Enforcement Administration
Federal Bureau of Investigation
Internal Revenue Service
Department of Homeland Security, U.S. Immigration and Customs Enforcement, U.S. Customs and
Border Protection
San Diego County Sheriff's Department
Los Angeles County Sheriff's DepartmentAn indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Federal Grand Jury Returns IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA — Eight individuals were named in six Indictments returned by a federal grand jury sitting in Elkins, West Virginia, on February 20, 2013.
United States Attorney William J. Ihlenfeld, II, announced the following indictments: BARBARA ANN SPIVA, age 47, of Elkins, was named in a 10-count indictment. Count
One charges SPIVA with “Maintaining a Drug-Involved Premise” from the Fall of 2012 to
December 29, 2012, in Randolph County for the purpose of manufacturing, storing, distributing and using methamphetamine. Count Two charges SPIVA with “Possession of Materials Used in the Manufacture of Methamphetamine” on December 29, 2012. Counts Three through Eight charge SPIVA with“Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on September 27, October 26, October 28, November 23, December 5 and December 28, 2012. Counts Nine and Ten charge SPIVA with “Attempting to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on November 9 and November 14, 2012. If convicted, SPIVA faces up to 20 years imprisonment and a $500,000 fine as to Count One; 10 years imprisonment and a $250,000 fine as to Count Two; and, 20 years imprisonment and a $250,000 fine as to each of Counts Three through Ten.WILLIAM TRENT RICHARDSON, age 21, of French Creek, West Virginia; KRISTIN ELAINE DYE, age 20, of Buckhannon, West Virginia; and, BRANDON EDWARD ANDERSON, age 22, of Rock Cave, West Virginia, were named in a 32-count Indictment. Count One charges RICHARDSON, DYE and ANDERSON with “Conspiracy to Distribute Methamphetamine” from February 2 to September 13, 2012, in the Northern District of West Virginia. Count Two charges RICHARDSON, DYE and ANDERSON with”Maintaining a Drug-Involved Premise” from February 2 to September 13, 2012, to manufacture, store, distribute and use methamphetamine. Count Three charges RICHARDSON and DYE with
“Possession of Material Used in the Manufacture of Methamphetamine” on September 13,
2012. Counts Four through Thirteen charge RICHARDSON with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on February 2, February 13, February 28, March 12, April 16, April 29, May 27, May 31, June 7 and August 1, 2012. Counts Fourteen and Fifteen charge RICHARDSON with “Attempting to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on two occasions on June 22, 2012. Counts Sixteen through Nineteen charge DYE with “Possession of Material Used in the Manufacture of Methamphetamine” on May 28, June 13, June 20 and September 9, 2012. Counts Twenty and Twenty-One charge DYE with “Attempting to Possess
Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on June 22 and July
4, 2012. Counts Twenty-Two through Thirty-One charge ANDERSON with “Possession of
Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on February 14, April
26, May 2, May 5, June 4, June 6, June 9, June 15, July 5 and August 20, 2012. Count Thirty- Two charges ANDERSON with “Attempting to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on May 14, 2012. If convicted, RICHARDSON, DYE and ANDERSON face up to 20 years imprisonment and $1,000,000 fine as to Count One; 20 years imprisonment and a $500,000 fine as to Count Two; 10 years imprisonment and a fine of $250,000 as to Count Three; and 20 years imprisonment and a $250,000 as to each of Counts Four through Thirty-Two.These cases will be prosecuted by Assistant United States Attorney Stephen D. Warner and were investigated by the West Virginia State Police.
RONALD JOHN LOUK, age 30, of Churchsville, Virginia, was named in a one-count Indictment charging him with “Failure to Update Sex Offender Registration.” The Indictment alleges that from October 20 to November 21, 2012, in Huttonsville, West Virginia, LOUK knowingly failed to update a registration pursuant to the Sex Offender Notification Act. If convicted, LOUK faces up to 10 years imprisonment and a $250,000 fine.
TIMOTHY WAYNE WALDEN, age 36, of Baltimore, Maryland, was named in a one- count Indictment charging him with “Failure to Update Sex Offender Registration.” The Indictment alleges that from November 12, 2012, to January 17, 2013, in Bayard, West Virginia, WALDEN knowingly failed to update a registration pursuant to the Sex Offender Notification Act. If convicted, WALDEN faces up to 10 years imprisonment and a $250,000 fine.
These cases will be prosecuted by Assistant United States Attorney Shawn A. Morgan and were investigated by the United States Marshals Service.
JANEL PHILLIPS, age 44, of Elkins, was named in a one-count Indictment charging her with “Federal Program Fraud.” The Indictment alleges that from January of 2007 to May of 2010, PHILLIPS embezzled, obtained by fraud and intentionally misapplied property owned by the Regional Long-Term Care Ombudsman Program for Legal Aid of West Virginia. The Indictment also contains a Forfeiture Allegation wherein the United States seeks to forfeit a money judgment of approximately $91,588 which constitutes or is derived from proceeds traceable to the offense. If convicted, PHILLIPS faces a maximum exposure of 10 years imprisonment and a fine of $250,000. This case was investigated by the Department of Health and Human Services and the Legal Services Corporation-Office of Inspector General.
KYLE HEFT, age 34, of Mahanoy City, Pennsylvania was named in a one-count Indictment charging him with “Failure to Update Sex Offender Registration.” The Indictment alleges that on July 17, 2012, in Hillsboro, HEFT knowingly failed to update a registration pursuant to the Sex Offender Notification Act. If convicted, HEFT faces up to 10 years imprisonment and a $250,000 fine. This case was investigated by the United States Marshals Service.
These two cases will be prosecuted by Assistant United States Attorney Andrew R. Cogar.All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Federal Grand Jury Indicts Dallas Man for Aiming A Laser Pointer at AircraftRead the Press Release
DALLAS — A federal grand jury in Dallas has indicted Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, on one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Santodomingo was arrested on January 28, 2013 after a criminal complaint was filed for the offense, and he has been in custody since that time.
According to that complaint, at approximately 4:08 a.m. on January 28, 2013, Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in Dallas when the cockpit was illuminated approximately four times by a laser pointer. The intensity of the light obscured the vision of the pilot and impaired the pilot’s ability to control the aircraft.
After the officers in the helicopter pinpointed the location where the laser originated, they directed patrol officers on the ground to a residence in the 7000 block of Lake June Road. Santodomingo answered the officers’ knock at the front door. He admitted having pointed the green laser light at the helicopter to see how far it would go and handed over the laser pointer to the officers at that time.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. If convicted, the maximum statutory penalty is five years in federal prison and a $250,000 fine.
The case is being investigated by the DPD and the FBI. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
Excelsior Coin Dealer Pleads Guilty to Defrauding Customers and Investors Out of $2.7 MillionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 53-year-old Excelsior coin dealer pleaded guilty to devising and executing a scheme to defraud customers and investors out of $2.7 million. David Laurence Marion pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of money laundering. Marion, who was indicted on November 14, 2012, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Marion admitted that he owned International Rarities Corporation (“IRC”), a business that bought, sold, and traded gold coins and precious metals, among other things. Marion directed his sales staff to “cold call” people from “lead” sheets in an attempt to get them to buy, sell, or trade coins and precious metals.
Marion also admitted that between December 2010 and August 2011, IRC received over $2 million in coins, precious metals, and money from customers who intended to purchase or exchange coins and precious metals. In August 2011, IRC purportedly had over $2 million in unfulfilled customer orders. When customers inquired about the status of their orders, Marion admitted that he and the IRC sales staff ignored them, falsely indicated that their orders were being processed, or told them that their money, coins, and precious metals could not be returned because they were not available. Meanwhile, Marion used the customers’ money, coins, and precious metals for gambling and his lavish lifestyle or to pay commissions and salaries, fulfill other customer orders, or to support his family. Customers lost approximately $1.7 million in money, coins, and precious metals as a result of this scheme.
In addition, Marion was the president of International Rarities Holdings (“IRH”), and in that capacity, he directed his sales staff to sell securities in the form of ownership shares in the company. However, at the time, Marion was not registered with the Securities and Exchange Commission (“SEC”) as a broker or dealer, nor was he associated with a registered SEC broker or dealer. In fact, in April 2009, the SEC rejected Marion’s attempt to register the IRH offering as a security yet, from at least November 2008 through July 2009, Marion and his sales staff raised approximately $1 million from at least 26 investors who believed they were purchasing ownership shares in IRH. Marion admittedly used approximately $200,000 of those investor funds for his own personal use.
For his crimes, Marion faces a potential maximum penalty of 20 years in federal prison for conspiracy and ten years for money laundering. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Division, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Karen B. Schommer.
The U.S. Attorney’s Office wants to remind people to protect themselves from securities fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.Eastern Shoshone Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Christopher A. Crofts announced today that on February 20, 2013, Russell Hill, a 19-year-old enrolled Eastern Shoshone from the Wind River Indian Reservation, appeared in Federal District Court for sentencing before United States District Judge Scott W. Skavdahl on a single count of assault resulting in serious bodily injury. Hill received 29 months of imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and restitution in the amount of $12,363.25. The charge stemmed from a stabbing which occurred on June 10, 2012, on the Wind River Indian Reservation. The case was investigated by the Fremont County Sheriff’s Office, the Wind River Police Department, the Bureau of Indian Affairs and the Federal Bureau of Investigation.
District Man Found Guilty of First-Degree Premeditated Murder and Other Charges in Two Slayings and Related Violence-Opened Fire in Two Attacks in Northwest Washington in 2011-Read the Press Release
WASHINGTON – Irvin Johnson, 26, of Washington, D.C., was found guilty by a jury today of killing two men and wounding another, and shooting at a fourth man, in a pair of shootings that took place within weeks in 2011, U.S. Attorney Ronald C. Machen Jr. announced.
Johnson was found guilty of a total of 15 charges following a two-week trial in the Superior Court of the District of Columbia. They include two counts of first-degree premeditated murder, two counts of assault with intent to kill while armed, and numerous related firearms offenses. The Honorable Lynn Leibovitz scheduled sentencing for April 25, 2013. Johnson could face more than 100 years in prison for the various offenses.
According to the government’s evidence, the violence stemmed from a longstanding dispute between Johnson and the victims, stemming from a robbery that Johnson had committed against one of their friends in 2008. During the evening hours of June 21, 2011, Johnson and an associate entered the 1500 block of Spring Place NW and shot at a man. No one was injured during the shooting, but a number of cars and buildings in the block were damaged.
Nearly three weeks later, in the early morning hours of July 9, 2011, in the 1400 block of Parkwood Place NW, Johnson ambushed and executed by shooting in the head Jimmie Simmons, 32, and Dominique Barbour, 31. The defendant also shot Anthony Thomas, then 21, in the head and chest. Miraculously, Mr. Thomas survived. Sadly, after a year of struggling from the injuries inflicted by the defendant, Mr. Thomas took his own life.
Immediately after the shooting, Johnson went on the run. He hid at friends’ homes in Washington, D.C., and eventually fled to a relative’s house in Lusby, Md., where he was apprehended by the Capitol Area Regional Fugitive Task Force on Sept. 9, 2011.
In announcing the verdict, U.S. Machen praised the outstanding investigative work of the Metropolitan Police Department; the U.S. Marshals Service, including the Superior Court Warrant Squad; the Capitol Area Regional Fugitive Task Force; the Maryland State Police; the Maryland Office of the Chief Medical Examiner, and the Prince George’s County Police Department. He also thanked Dr. Carolyn Revercomb formerly of the Office of the Chief Medical Examiner of the District of Columbia, as well as the Court Supervision and Offender Services Agency. U.S. Attorney Machen acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Alesha Matthews, Meridith McGarrity, Sandra Lane, Sharon Newman, and Fern Rhedrick; Intelligence Analysts Lawrence Grasso and Sharon Johnson; Criminal Investigators Tommy Miller and Durand Odom; Witness Security Specialists David Foster, La June Thames, and Debra Cannon; Litigation Services Specialists Joshua Ellen, William Henderson and Paul Howell, and Victim Advocates Marcey Rinker and Christina Principe for their support.
Finally, he acknowledged the work of Assistant U.S. Attorney Erin O. Lyons, who investigated the case and Assistant U.S. Attorneys Lyons and Glenn L. Kirschner, who tried the case.
13-062Convicted Sex Offender Sentenced on Gun Charge to 10 Months in Prison, $10,000 FineRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that William Henry Pittman, 67, of Mobile, was sentenced today for being a felon in possession of a firearm. Pittman was sentenced to ten months in prison and fined $10,000 for possession of a firearm after being convicted in 1989 of transportation of a minor for sexual purposes and distribution of a controlled substance to a minor.
Pittman pled guilty in August to being a felon in possession of a firearm. Deputies with the United States Marshals service discovered the firearm in the course of an unrelated investigation in May, 2012, and Pittman was indicted the following month.
The case was investigated by the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile Police Department. Assistant United States Attorney Sean P. Costello handled the prosecution on behalf of the United States.
Charlotte Man Sentenced to More Than 29 Years in Prison for Drug Trafficking and Related Firearms OffensesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, February 19, 2013, U.S. District Judge Max O. Cogburn, Jr. sentenced Malcolm Springs, 22, of Charlotte, to 355 months in prison for drug trafficking and firearms offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Springs was also ordered to serve five years under court supervision following his prison term and to pay $21,434 as restitution.
U.S. Attorney Tompkins is joined in making today’s announcement by Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Rodney Monroe of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and statements made in court, on or about March 20, 2011, Springs met an individual identified as “S.C.” in the parking lot of a gas station in Charlotte for the purpose of purchasing a distribution amount of crack cocaine. Court records reflect that Springs stole the drugs and brandished a firearm. Court records indicate that a struggle over the gun ensued and S.C. was shot in the arm and in the abdomen. Following the shooting, Springs fled the scene in his car, according to court records.
According to filed documents, CMPD officers spotted Springs’ car and attempted to make a traffic stop. Springs did not stop and led police on a short chase, and then jumped and ran from his vehicle when he drove into a dead end. According to court records, a uniformed CMPD police officer spotted Springs, who was moving between two houses. Court records indicate that while fleeing, Springs pointed and then shot his gun at the officer. After being shot, the officer returned fire and struck Springs. Springs was then apprehended by the officers, court records indicate.
At the sentencing hearing, prosecutors described the shootings committed by Springs as “reckless and wanton” acts, and noted that “Springs could have killed two people.” Prosecutors also said that Springs’ shooting of a police officer reflected “complete lack of respect for the law.”
In making today’s announcement United States Attorney Anne Tompkins stated, “The Springs case demonstrates the U.S. Attorney’s Office’s commitment to vigorously prosecuting violent criminals and to enforcing existing federal firearms laws. Let it also be known,” U.S. Attorney Tompkins added, “that we will not tolerate any acts or attempted acts of violence against police officers.”
“Malcolm Springs’ ruthless actions put many lives at risk. The FBI and our law enforcement partners stand united in our commitment to hold violent offenders accountable for their negative impact on our communities,” said Roger Coe, Acting Special Agent in Charge of the Charlotte Division of the FBI.
“It is unfortunate that the incident escalated to where the suspect fired a gun and placed two lives in danger,” said Chief Rodney Monroe, Charlotte-Mecklenburg Police Department. “Oftentimes those who are intent on breaking the law and who knowingly engage in criminal activities also lack a regard for human life.”
In December 2011, Springs pleaded guilty to one count of possession with intent to distribute crack cocaine, one count of possession of a firearm in furtherance of a drug trafficking offense and one count of possession of a firearm by convicted felon. Springs’ sentence was enhanced because of his four prior violent felony convictions, which make him an Armed Career Criminal under the United States Sentencing Guidelines.
Springs has been in local federal custody since June 2011. Upon designation of a federal facility, he will be transferred to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and CMPD, assisted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Assistant United States Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte.
Burlington County, N.J., Man Sentenced to 18 Months in Prison for Defrauding CharityRead the Press Release
TRENTON, N.J. – The director of operations at a warehouse for a non-profit organization was sentenced today to 18 months in prison for defrauding the charity of $101,927, U.S. Attorney Paul J. Fishman announced.
Sean J. Smith, 38, of Mount Holly, N.J., pleaded guilty Nov. 15, 2012, before U.S. District Judge Michael A. Shipp to an Information charging him with one count of mail fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Smith admitting to stealing money from Clothes for Kids Sake Inc., (Clothes for Kids) by making it appear as though employees were working for Clothes for Kids and entitled to wages even though those employees had either left or never worked there. Smith caused Clothes for Kids to electronically deposit their wages into bank accounts he controlled and spent the funds on various personal expenses. Between May 2011 and August 2012, Smith made it appear that two employees were entitled to compensation of $59,361, all of which was directly deposited into his own bank accounts
Smith admitted to stealing money from Clothes for Kids by causing Clothes for Kids to pay wages to at least seven employees who had recently stopped working for Clothes for Kids and directing that those wages be deposited into his own bank accounts. Beginning in January 2012, Smith manually changed the direct deposit information for approximately seven employees who recently stopped working for him at the Mount Laurel warehouse. After changing the direct deposit information to his own bank accounts, Smith would make it appear as though the former employees were continuing to do work for Clothes for Kids, which would continue to pay them wages. Smith stole approximately $42,566 from Clothes for Kids as wages for employees who no longer worked at his warehouse.In addition to the prison term, Judge Shipp also sentenced Smith to three years of supervised release, and ordered him to pay $117,615 in restitution to victims of his offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s sentencing.The Government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-088
Defense Counsel: David Bahuriak Esq., Philadelphia
Brunswick Couple Indicted and Arrested on Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, FL - U.S. Attorney Robert E. O’Neill announces the return of a multi-count indictment charging Estella D. Wright and Dorian D. Wright, both of Brunswick, Georgia, with conspiracy to defraud the government and theft of public money. Estella Wright is also charged with seven counts of aggravated identity theft. The Wrights were both arrested today in Brunswick. If convicted, Estella D. Wright faces a maximum penalty of up to 10 years in federal prison for the conspiracy charge, and for each of the seven theft of public money charges. She faces two consecutive years’ imprisonment for the seven aggravated identity theft counts. If convicted, Dorian Wright faces up to 10 years’ in federal prison for the conspiracy charge and each of the two theft public money charges.
According to the indictment, between March 2007 and April 2010, the Wrights conspired with an inmate in the custody of the Florida Department of Corrections to defraud the Internal Revenue Service through the filing of false federal income tax returns. The alleged conspiracy involved using the names, forged signatures and social security numbers of others. The indictment further alleges that Estella Wright obtained the names and social security numbers through her employment at a temporary staffing agency.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Kelly S. Karase is handling the prosecution of this case.
Brown County, Texas, Man Sentenced to 188 Months in Federal Prison for Using the Internet to Collect and Share Hundreds of Images of Child PornographyRead the Press Release
LUBBOCK, Texas --- Nathan Derek McGinn, 33, of Brownwood, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison and a 10-year term of supervised release, following his guilty plea in November 2012 to one count of receiving child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. McGinn has been in custody since September 17, 2012.
According to documents filed in the case, McGinn used his computer, which was connected to the Internet, to access music and various forms of pornography through the use of file-sharing software. Specifically, McGinn used the software to collect and share hundreds of images of child pornography.
This matter was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Brooklyn Woman Sentenced in Manhattan Federal Court to Two Years in Prison for Participating in $57.3 Million Fraud on Organization That Makes Reparations to Victims of Nazi PersecutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that VALENTINA ROMASHOVA, a/k/a “Tina Rome,” was sentenced today in Manhattan federal court to two years in prison for her participation in a $57 million fraud scheme that targeted programs administered by the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”), and that were established to aid the survivors of Nazi persecution. ROMASHOVA pled guilty in October 2012 to one count of conspiracy to commit mail fraud. She was sentenced by U.S. District Judge Thomas P. Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Valentina Romashova traded on her position at a law firm to manufacture applicants for funds that were intended to compensate victims of one of the darkest periods in world history – the Holocaust – all so she could get a cut of the proceeds. The fraud that she helped perpetrate is reprehensible, and the fact that she did so from a law office makes it that much worse.”
According to the Superseding Indictment, the Complaint, and statements made during court proceedings:
The Claims Conference, a not-for-profit organization which provides assistance to victims of Nazi persecution, supervises and administers several funds that make reparation payments to victims of the Nazis, including “the Hardship Fund” and “the Article 2 Fund,” both of which are funded by the German government. Applications for disbursements through these funds are processed by employees of the Claims Conference’s office in Manhattan, and the employees are supposed to confirm that the applicants meet the specific criteria for payments under the funds.
As part of the charged scheme, a network of individuals systematically defrauded the Article 2 Fund and Hardship Fund programs for over a decade. The Claims Conference first suspected the fraud in December 2009, and immediately reported their suspicions to law enforcement, which conducted a wide-reaching investigation.
The Hardship Fund pays a one-time payment of approximately $3,500 to victims of Nazi persecution who evacuated the cities in which they lived and were forced to become refugees. Members of the conspiracy submitted fraudulent applications for people who were not eligible. Many of the recipients of fraudulent funds were born after World War II, and at least one person was not even Jewish. Some members of the conspiracy recruited other individuals to provide identification documents, such as passports and birth certificates, which were then fraudulently altered and submitted to corrupt insiders at the Claims Conference, who then processed those applications. When the applicants received their compensation checks, they kept a portion of the money and passed the rest back up the chain.
From the investigation to date, the Claims Conference has determined that at least 3,839 Hardship Fund applications appear to be fraudulent. These applications resulted in a loss to the Hardship Fund of approximately $12.3 million.
The Article 2 Fund makes monthly payments of approximately $400 to survivors of Nazi persecution who make less than $16,000 per year, and either lived in hiding or under a false identity for at least 18 months; lived in a Jewish ghetto for 18 months; or were incarcerated for six months in a concentration camp or a forced labor camp. The fraud involved doctored identification documents in which the applicant’s date and place of birth had been changed. The fraud also involved more sophisticated deception, including altering documents that the Claims Conference obtained from outside sources to verify a person’s persecution by the Nazis. Some of the detailed descriptions of persecution in the fraudulent Article 2 Fund applications were completely fabricated.
From the investigation to date, the Claims Conference has determined that at least 1,112 Article 2 Fund cases it processed have been determined to be fraudulent. Those cases have resulted in a loss to the Claims Conference of approximately $45 million.
ROMASHOVA worked at a law firm in New York City that advertised in Russian-language newspapers that it could assist people with applying for compensation from the Claims Conference. While employed at this firm, ROMASHOVA used her position to steer applicants who may have been eligible to receive compensation from the Hardship Fund to the Article 2 Fund, and submitted, or caused to be submitted, fraudulent Article 2 Fund applications on their behalf, in exchange for tens of thousands of dollars in fees.
Since 2010, a total of 31 individuals have been charged with participating in the scheme to defraud the Article 2 Fund and Hardship Fund programs. Twenty-three defendants, including ROMASHOVA, have pled guilty, and a total of nine defendants have now been sentenced. Charges remain pending against the remaining eight defendants in the case, and they are presumed innocent unless and until proven guilty.
In addition to her prison term, ROMASHOVA, 65, of Brooklyn, New York, was sentenced to one year of supervised release. She was also ordered to forfeit $150,110 and pay restitution in the amount of $3,278,154.65.
In sentencing ROMASHOVA, Judge Griesa said, “…the fraudulent conduct committed here was of a uniquely serious character and the sentence should reflect that.”
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Claims Conference for bringing this matter to the FBI’s attention and for its extraordinary continued cooperation in this investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Christopher D. Frey and Jonathan Cohen, and Special Assistant U.S. Attorney Rebecca Rohr are in charge of the prosecution.
Bedford-stuyvesant Based Drug Ring Charged with Narcotics TraffickingRead the Press Release
An indictment was unsealed today in Brooklyn federal court charging six defendants from the Bedford-Stuyvesant section of Brooklyn, New York, with trafficking crack and powder cocaine.1 Four of the arrested defendants are scheduled to be arraigned today before United States Magistrate Judge Viktor V. Pohorelsky, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York. A fifth defendant was arrested yesterday in Harrisburg, Pennsylvania. A sixth is currently in being held in Vermont state custody on narcotics charges and will be brought to Brooklyn for arraignment on the federal indictment.
The charges and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Raymond W. Kelly, Commissioner, New York City Police Department.
A one-year joint investigation by the FBI and the NYPD resulted in the charges against members of a narcotics trafficking organization based in Bedford-Stuyvesant, Brooklyn. As detailed in the indictment and a detention memorandum filed by the government, Glenn Miller, also known as “Chewy,” Jaron Johnson, also known as “Jay Jay,” Rashawn Johnson, also known as “SB,” Raumel Johnson, Azee Patterson and Eric South together trafficked cocaine and cocaine base (or “crack”), supplying street-level drug dealers with narcotics for re-sale. During the investigation, investigating agents intercepted communications over a series of cellular telephones used by Rashawn Johnson, pursuant to court-authorized wiretaps, purchased over 500 grams of cocaine base from Rashawn Johnson through a confidential informant, and executed two search warrants. Also during the investigation, state authorities in upstate New York and Vermont arrested Patterson in possession of distribution-level quantities of heroin, cocaine and cocaine base. As described in the detention memorandum, the investigation revealed that the defendants engaged in daily drug trafficking of large quantities of narcotics in Brooklyn and transported narcotics to upstate New York and Vermont for re-sale.
During the wiretaps, the defendants spoke in code, referring to “eight-balls” or 3.5 gram quantities of narcotics as “squirrelies,” and two-hundred gram quantities of narcotics as a “deuce.” During one intercepted call, Rashawn Johnson reported to a co-conspirator that he had prepared approximately 198 grams of cocaine base or “crack,” with a street wholesale value of approximately $7,900, for Miller. During the call, the co-conspirator asked Rashawn Johnson, “You do that shit for Chewy [Miller] already?” Rashawn Johnson answered: “Yea. I been do that shit already.” The co-conspirator asked, “Was it that much?” Rashawn Johnson answered, “Na. It was only a deuce. Not even a deuce. A little under a deuce. Like a buck 98.” As alleged by the government in the detention memorandum, the defendants’ drug business was of a sufficiently large scale that 198 grams of crack cocaine was considered a small amount.
Glenn Miller, Rashawn Johnson, Raumel Johnson and Eric South were arrested yesterday afternoon in Brooklyn. As alleged in government filings, contemporaneously with the arrests, agents executed search warrants and seized two kilograms of cocaine, 24 grams of cocaine base, two .45 caliber handguns, two .22 caliber handguns, scales and materials for making cocaine base from the defendants’ stash house in Bedford Stuyvesant, Brooklyn, and ten grams of heroin, over $6,000 in currency and an electronic money-counter from a residence across the street. Jaron Johnson was arrested yesterday by FBI agents in Harrisburg, Pennsylvania. At the time of his arrest, Jaron Johnson possessed approximately $23,000 in currency. Jaron Johnson will be arraigned today in United States District Court in Pennsylvania.
“As set forth in the indictment, instead of working to improve the Bedford-Stuyvesant neighborhood, the defendants chose to supply crack and powder cocaine to their community, building a lucrative narcotics organization. The narcotics trade siphons off not just dollars from those affected, but hope and opportunity. This case also illustrates how drug trafficking and illegal firearms go hand in hand. We are committed to removing the scourge of illegal guns and drugs from our communities, and holding those who possess and sell them accountable for their conduct,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the NYPD, and added that the government’s investigation is ongoing.
FBI Assistant Director-in-Charge Venizelos stated, “It’s hardly a surprise, in a case where the indictment charges drug trafficking, to find a cache of guns. Guns - and the potential for gun violence - go hand-in-hand with illegal drugs. That connection between drugs and guns is why the FBI will continue to work with the Police Department to curtail drug trafficking.”
The cases have been assigned to United States District Judge Eric N. Vitaliano. If convicted of the most serious offenses in the indictment, the defendants face a maximum sentence of life imprisonment and a minimum sentence of ten years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Matthew Amatruda.
The Defendants:
GLENN MILLER
Alias: Chewy
Age: 32JARON JOHNSON
Alias: Jay Jay
Age: 35RAUMEL JOHNSON
Age: 36RASHAWN JOHNSON
Alias: SB
Age: 32AZEE PATTERSON
Age: 28ERIC SOUTH
Age: 59_____________________________
1 The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Bath Township Man Sentenced to 18 Months in Prison for Evading Nearly $400,000 in TaxesRead the Press Release
John W. Hufgard was sentenced to 18 months of incarceration and ordered to pay restitution of $397,659, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Hufgard, age 59, of Bath Township, was also sentenced to two years of supervised release by U.S. District Judge Patricia A. Gaughan.
Hufgard pleaded guiltt to three counts of income tax evasion (for the 2007, 2008 and 2009 income tax years) on November 26, 2012.
Hufgard was the sole proprietor of Universal Service and Repair, Limited. Hufgard sold manufacturing racks to metal scrap dealers, and failed to report the proceeds on his federal income tax returns. Hufgard concealed his scheme by selling racks for cash, by depositing business income into his personal account, business income diverted into his personal account, and falsely recording business income as short term loans from himself, according to court documents.
He also tried to conceal his scheme by moving large amounts of scrapped metal racks, long distances, to scrap dealers who were willing to pay him in cash rather than using unknown dealers who might pay by check, according to court documents.
Through this scheme, Hufgard evaded approximately $397,659 in federal taxes.
This case is being prosecuted by Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service Criminal Investigation Division.
19 Arrested in Connection with Austin-based Cocaine Distribution and Bulk Cash Smuggling OperationRead the Press Release
Federal, state and local authorities have arrested 19 individuals in connection with a cocaine distribution and bulk cash smuggling conspiracy based in Austin announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Division, and Texas Department of Public Safety Director Steve McCraw. A list of the arrested defendants is below.
A two-count federal grand jury indictment (A13cr067), returned on Tuesday and unsealed today, charges the defendants with one count of conspiracy to possess with intent to distribute cocaine. The indictment also charges (6) defendants with one count of bulk cash smuggling. The indictment alleges that from January 2009 to the present the defendants conspired to possess with intent to distribute more than five kilograms of cocaine. According to the indictment, G. R. Custom Body and Paint in Austin, owned by defendant Hugo Gaspar, served as the primary distribution hub for multiple sources of cocaine smuggled into the United States from Mexico. Authorities allege that in addition to distributing cocaine in the Austin area, cocaine was transported to Houston and Dallas as well as Kentucky, Georgia, North Carolina, Florida and Alabama for further distribution. Proceeds from the sale of the cocaine were transported back to Austin and ultimately to Mexico. During this investigation, authorities have seized over $1millon in U.S. Currency and approximately 120 pounds of cocaine attributed to this cocaine distribution network.
A separate, but related, federal grand jury indictment (A13cr027) returned last month in Austin charges 20–year-old Erick Rodriguez-Aguilar and 19–year-old Julio Ramon Sandoval-Arizmendi for their roles in this operation. Both are charged with one count of possession with intent to distribute five kilograms or more of cocaine. Rodriguez and Sandoval both remain federal custody.
Upon conviction of the drug charge, the defendants face between ten years and life in federal prison; of the bulk cash smuggling charge, they face up to five years in federal prison.
“The investigation uncovered one of the most significant drug organizations in the Austin area in terms of sheer quantities of cocaine being distributed, and the convoluted distribution web which facilitated the large-scale trafficking operation,” stated DEA-Houston Division Special Agent in Charge Javier Pena.
“Today marks a milestone in disrupting a major Mexico-based cocaine trafficking organization that supplies narcotics to the Central Texas area and beyond. Thanks to the efforts of DPS Criminal Investigations Division agents working in conjunction with our federal and local law enforcement partners, our neighborhoods are safer today with these individuals off our streets and behind bars,” stated Lt. Colonel David Baker, DPS Deputy Director - Law Enforcement Operations.
This case resulted from an investigation by the South Texas High Intensity Drug Trafficking Area (HIDTA) made up of investigators from the following agencies: Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), United States Marshals Service, Texas Department of Public Safety, Austin Police Department, Round Rock Police Department, Georgetown Police Department, Cedar Park Police Department, Temple Police Department, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Hays County Sheriff’s Office and the Bastrop County Sheriff’s Office.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Operation Treasure Lost Defendants
Case number: A-13 cr 067
Name Age Citizenship Indicted Counts
Ubaldo RODRIGUEZ-Perez 41 Mexico 1,2
Santos FLORES-Aviles 24 Mexico 1
Jose Francisco GAONA-Segura 32 Mexico 1,2
Hugo Castillo GASPAR 40 Mexico 1,2
Abel GAONA 34 Mexico 1
Ricardo RAMOS-MUNOZ 40 Mexico 1
Jerrimie Jerome HYDER 26 U.S. 1
Francisco Javier CASTILLO 28 Mexico 1,2
Miguel Angel ELIAS 40 Mexico 1
Eduardo LOZA 26 U.S. 1
Galdino LOZA 28 U.S. 1
**Marlon RAMIREZ-Castro 28 Mexico 1,2
Jose Manuel CARBAJAL 29 U.S. 1,2
**Santos Nieto JAIMES 35 Mexico 1
**Ranferi GARCIA-Jaramillo 28 Mexico 1
**Sergio VALLE-Ramirez 21 Mexico 1
**Ruben CORREA-Sandarte 30 Mexico 1Case number: A-13 cr 027
**Erick RODRIGUEZ-Aguilar 20 Mexico
**Julio Ramon SANDOVAL-Arizmendi 19 Mexico** Were already in custody prior to today’s arrests
Wednesday 20 February 2013
Wilson, North Carolina, Crop Insurance Adjuster SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JIMMY THOMAS SASSER, 61, to 48 months imprisonment followed by 3 years supervised release. Restitution of $21,045,917 was also imposed. The sentence reflected a reduction for SASSER’S cooperation in the on-going investigation. SASSER has been on house arrest since November 21, 2011, when he was arrested on a criminal complaint for threatening a witness.
U.S. Attorney Thomas G. Walker stated, “Today’s sentence reflects the harm committed on our community as a result of this massive multi-million dollar fraud scheme and should serve as a deterrent for adjusters who are contemplating taking pay-offs to help farmers and agents file false claims.”
On January 23, 2012, a three-count Criminal Information was filed charging SASSER with conspiring to make false statements, to make material false statements, and to commit mail and wire fraud, all in violation of Title 18, United States Code, Section 371; wire fraud, in violation of Title 18, United States Code, Section 1343; and retaliating against a witness, victim, or informant, and attempting to do so, in violation of Title 18, United States Code, Section 1513. On February 21, 2012, SASSER pled guilty to the charges.
According to the Criminal Information and information provided in open court, SASSER, a crop insurance adjuster for Rural Community Insurance Services (RCIS), received cash pay-offs from 1996 through 2007 to falsify claims regarding the scope of damage or the farmer’s true tobacco production on a particular acreage.
The scheme consisted of adjusters, including SASSER, who would submit a false assessment of loss on a Proof of Loss form which was mailed or wired to the insurance company. The co-conspiring insurance agent would collect pay-offs for the inflated loss adjustments from the co-conspiring farms and would share the monies with the adjusters, including SASSER.
During the course of the investigation, SASSER lied to federal law enforcement officers. SASSER also sent a letter to the North Carolina Department of Insurance in November 2010, falsely denying having received money from Robert Carl Stokes. Stokes, an insurance agent from Wilson, North Carolina, previously pled guilty to charges in connection with the on-going crop insurance fraud investigation.
The Criminal Information further states that on November 19, 2011, SASSER threatened to cause bodily injury to two other people, one of whom was a cooperating defendant, in retaliation for giving information regarding the conspiracy to law enforcement officers.
“Adjusters play an important role when adjusting claims for producers. The sentencing of an insurance adjuster in this case should serve as a strong deterrent to those who chose to commit fraud against the federal crop insurance program and will help protect the integrity of this program by ensuring that taxpayer dollars are safeguarded,” stated Karen Citizen-Wilcox, Special Agent-in-Charge of the Southeast Region, USDA-OIG-Investigations.
Special Agent in Charge Jeannine A. Hammett, IRS-Criminal Investigation stated, “This criminal enterprise reaped thousands of dollars in profits by engaging in insurance fraud and money laundering. IRS-Criminal Investigation will zealously pursue individuals involved in such blatant and far-reaching criminal activity.”
Investigation of this case was conducted by the United States Department of Agriculture (USDA) - Office of Inspector General - Investigations, USDA - Risk Management Agency - Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case.
White-Supremacist William White Sentenced to 42 Months in Prison for Soliciting Violence Against Hale Jury ForemanRead the Press Release
CHICAGO — Self-proclaimed white-supremacist WILLIAM A. WHITE was sentenced today to 42 months in federal prison for soliciting violence to the foreman of a federal jury in Chicago that convicted another white-supremacist, Matthew Hale, in 2004. White stood trial in Chicago in January 2011 and was convicted by a jury of one count of solicitation.
“No doubt the experience was extremely frightening for the juror,” U.S. District Judge Lynn Adelman, of Milwaukee, who imposed the sentence, said in reference to the Hale jury foreman who was the victim of White’s violent solicitation.
Judge Adelman, who was assigned to preside over the case in Federal Court in Chicago, ordered White to serve the sentence consecutively to all but a little more than a month remaining on a federal sentence that White is currently serving for making threats to other victims and intimidating a witness in Virginia. White’s prior sentence totaled 43 months and is scheduled to end in early April.
Initially, Judge Adelman dismissed the 2008 indictment against White but a federal appeals court in Chicago reinstated the solicitation charge in 2010. After White’s trial in January 2011, the judge overturned the jury’s guilty verdict, but the government appealed and White’s conviction was reinstated, leading to today’s sentencing. White’s prior sentence stemmed from a December 2009 trial conviction by a federal jury in Roanoke.
“This defendant has been prolific in making threats to people,” Assistant U.S. Attorney Michael Ferrara told Judge Adelman today in arguing for a consecutive sentence instead of White’s request for time served.
The evidence at White’s Chicago trial showed that after Matthew Hale was tried, convicted and sentenced for soliciting the murder of a federal j udge in Chicago, White solicited his followers to retaliate against the foreman of that jury. White created and maintained a former web site, “Overthrow.com,” which was publicly accessible on the Internet. The web site purported to be affiliated with the “American National Socialist Workers Party” (ANSWP), and claimed the organization was comprised of a “convergence of former [white supremacy] ‘movement’ activists who grew disgusted with the general garbage that ‘the movement’ has attracted and who formed the ANSWP under the Command of Bill White.” Members of the ANSWP were described as “National Socialists... who fight for white working people.”
Between Sept. 11 and Oct. 11, 2008, White used the web site to solicit anyone to injure Juror A on account of Juror A’s role as the foreperson of the jury that convicted Hale, the leader of a white-supremacist organization known as the World Church of the Creator. Hale was sentenced to 40 years in prison for soliciting the murder of a federal judge in Chicago.
As part of White’s solicitation of violence against Juror A, White posted derogatory comments and personal information about Juror A, including Juror A’s home address and phone numbers, on the Overthrow.com web site on Sept. 11, 2008. The solicitation occurred under circumstances strongly corroborating White’s intent that another person use, attempt to use, or threaten the use of force against Juror A.
White was aware that individuals associated with the white-supremacist movement, who were the target audience of his web site, at times engaged in acts of violence, directed at non-whites, Jews, gays and persons perceived by white-supremacists as acting contrary to their interests. Prior to the solicitation against Juror A, White on multiple occasions caused postings to the web site that disclosed what purported to be the home address and/or personal identifying information of individuals who were targets of criticism on the Internet.
The Government was represented by Assistant U.S. Attorneys Michael Ferrara and William Hogan. The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.