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Wednesday 20 February 2013
Essex County, N.J., Man Sentenced to 130 Months in Prison for Armed CarjackingRead the Press Release
NEWARK, N.J. – An Essex County man was sentenced today to 130 months in prison for his role in an armed carjacking in Elizabeth, N.J., on Jan. 25, 2011, U.S. Attorney Paul J. Fishman announced.
Alhakim Young, 23, of Newark, N.J., previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to a Superseding Information charging him with conspiracy, theft of a motor vehicle by force, violence and intimidation, and use of a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
Young conspired with Jermaine May, David Jones and Maurice Williams to carjack a vehicle. On Jan. 25, 2011, Young, May, Jones and Williams traveled to Elizabeth in a white Jeep Cherokee to carjack a vehicle. Young and May approached two victims who were standing near a 2004 Infiniti G-35 that was parked and warming up on Britton Street in Elizabeth, and at gunpoint, ordered the two victims to the ground. Williams and Jones fled in the Infiniti, while Young and May fled in the white Jeep Cherokee. May, Jones and Williams previously pleaded guilty to conspiracy to commit carjacking, carjacking, and use of a firearm in furtherance of a crime of violence.
Judge Cecchi sentenced Young to concurrent 70-month prison terms on the counts of carjacking and conspiracy and a consecutive 60-month sentence on the firearms count. In addition to the prison term, Judge Cecchi sentenced Young to five years of supervised release. Restitution will be determined at a hearing on May 19, 2013.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Dara Aquila Govan of the Organized Crime/Gangs Unit and Gurbir Grewal of the Economic Crimes Unit in Newark.
13-086Defense counsel: Sean McGovern Esq., Newark
Emissions Inspector Sentenced for Falsely Passing Vehicle InspectionsRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced ANGEL DARIO RODRIGUEZ NUNEZ, 30, of Durham, North Carolina, to 5 years of probation with a special condition of 6 months house arrest and a $500 fine. The sentence reflected a reduction for NUNEZ cooperation in the on-going investigation.
“Falsifying vehicle emission inspections directly undermines the Clean Air Act’s goal to protect and enhance our Nation’s air resources. This prosecution reflects that corruption among licensed inspectors that perpetrates pollution for personal monetary gain will not be tolerated,” said Mr. Walker.
A Criminal Information was filed on March 6, 2012, charging NUNEZ with conspiring to violate the Clean Air Act, in violation of Title 18, United States Code, Section 371, and making a material false statement, representation, or certification, in violation of Title 42, United States Code, Section 7413(c)(2)(A). On April 9, 2012, NUNEZ pled guilty to the charges.
According to the Criminal Information, NUNEZ worked at both Express Auto Sales, in Durham, North Carolina, and Services and Car Care Express Auto Sales and Services, also in Durham, North Carolina, as a licensed North Carolina emissions inspector. From May, 2009, to July, 2010, NUNEZ conspired with others to pass vehicles that would normally have failed the emissions inspection in exchange for $150 to $225 per car.
The Information further alleges that NUNEZ and his co-conspirators would enter the vehicle identification number either manually or by scanning. A surrogate vehicle, usually one manufactured between 1996 and 1999 that would not generate a vehicle identification number when connected to the analyzer, would be selected. Using the surrogate vehicle, an emissions report would be generated for the customer’s vehicle. During this period 817 vehicles passed the false inspection. Of those 817, NUNEZ falsely tested 353.
Each day emissions inspection reports are electronically transferred to the North Carolina Office of Information and Technology Services in Raleigh, North Carolina. The United States Environmental Protection Agency requires the State to conduct vehicle emissions testing in certain areas because the areas exceed national standards for carbon monoxide and ozone.
“Cheating on emissions tests damages the air we breathe and puts businesses that do things the right way at an unfair disadvantage,” said Attorney General Roy Cooper, whose department includes the NC SBI. “We’re working closely with our state and federal partners to crack down on these illegal polluters.”
“Americans have a right to breathe clean air, free from excessive vehicle emissions,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “In order to protect the public from harmful air pollutants, governments must have accurate and honest vehicle emissions tests. This case is an excellent example of government agencies working together to protect both the public and the environment.”
Investigation of this case was conducted by the United States Environmental Protection Agency, Criminal Investigation Division; the North Carolina State Bureau of Investigations; and the North Carolina Department of Motor Vehicles, License and Theft Bureau. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case.
El Departamento de Justicia Lanza un Video en Español Sobre la Discriminación en la Verificación de la Elegibilidad para el EmpleoRead the Press Release
WASHINGTON – La División de Derechos Civiles del Departamento de Justicia anunció hoy el lanzamiento de su primer video educativo en español. El video fue elaborado por la Oficina del Consejero Especial [Office of Special Counsel (OSC)] para Prácticas Injustas de Empleo Relacionadas a la Inmigración para ayudar a los empleadores a evitar cargos de discriminación durante el proceso del Formulario I-9 de Verificación de Elegibilidad para el Empleo y para ayudar a los empleados a enterarse de sus derechos legales. La OSC hace cumplir la provisión contra la discriminación que contiene la Ley de Inmigración y Nacionalidad [Immigration and Nationality Act (INA)], la que prohíbe a los empleadores el discriminar en la contratación, el despido, el reclutamiento o la recomendación a personas autorizadas para trabajar, independientemente de su estado de ciudadanía u origen nacional. Asimismo, la ley prohíbe la discriminación durante los procesos del Formulario I-9 y de Verificación Electrónica [E-Verify].
La OSC elaboró un video sobre este tema llevado frecuentemente a la atención de la OSC por medio de llamadas a su línea directa y cargos presentados por empleados. Los empleadores suelen creer incorrectamente que necesitan verificar de nuevo la autorización de trabajo de trabajadores que tienen el status de residente permanentes cuando sus Tarjetas de Residente Permanente [Permanent Resident Cards or Green Card] se vencen. El nuevo video de la OSC aclara esta práctica y explica que esto no está permitido y que puede ser motivo de reclamos bajo la provisión contra la discriminación.
“Creemos que este video ayudará tanto a los empleadores como a los empleados de todo el país a comprender las normas de verificación de la elegibilidad para el empleo y que también ayudará a los residentes permanentes legales a conservar sus empleos”, dijo Thomas E. Perez, Secretario de Justicia Auxiliar de la División de Derechos Civiles. “La ley federal prohíbe la discriminación en el proceso de verificación de elegibilidad para el empleo, y el Departamento de Justicia se compromete a hacer cumplir la ley”.
Se puede observar el video en español en:
www.youtube.com/watch?v=HLps_3sWJxk
Una versión del mismo video con subtítulos en inglés se puede observar en :
www.youtube.com/watch?v=XWRSMNFxxKY
El video es parte de la serie de videos educativos de la OSC lanzo en el 2012. La OSC también opera una línea directa para empleadores y trabajadores, frecuentemente orientando a los empleadores acerca de cómo evitar la discriminación y educando a los al respecto de sus derechos protegidos por la provisión contra la discriminación. La OSC ofrece ‘webinars’ o seminarios por internet en vivo para educar a los empleadores acerca de cómo evitar la discriminación en el trabajo y educar a los empleados respecto de sus derechos. El próximo seminario por internet en español se dará a cabo hoy febrero 20 del 2013 a las 3:00pm tiempo del Este. Usted se puede registrar por internet en: http://www.justice.gov/crt/about/osc/webinars.php. Para obtener más información sobre las protecciones contra la discriminación laboral bajo la ley de inmigración, llame a la línea directa del trabajador de la OSC al: 1-800-255-7688 (1-800-237-2525, TDD para las personas con problemas auditivos); llame a la línea directa del empleador de la OSC al: 1-800-255-8155 (1-800-362-2735, TDD para las personas con problemas auditivos); envíe un mensaje de correo electrónico u ‘email’ a: [email protected]; o visite el portal en Internet de la OSC, www.justice.gov/crt/about/osc.East Haven Woman Charged with Threatening Violent Attack at Gateway Community CollegeRead the Press Release
February 20, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, today announced that AMANDA C. BOWDEN, 19, of East Haven, has been charged by federal criminal complaint with falsely threatening to carry out a violent attack at Gateway Community College in New Haven.
“As alleged, this defendant made a series of threats that described in great detail her intention to carry out a suicidal mass murder at a community college in New Haven,” stated U.S. Attorney Fein. “All threats of this nature will be viewed as serious by this office and prosecuted to the full extent of federal law. I commend the FBI’s Joint Terrorism Task Force and the New Haven and East Haven Police Departments for their swift investigation of this matter.”
“The FBI’s investigations into threats of violence will be swift and thorough,” stated FBI Special Agent in Charge Mertz. “In this day and age, the making of any threat will not and cannot be tolerated. There will be consequences. The Agents and Task Force Officers assigned to the New Haven Division’s Joint Terrorism Task Force and the U.S. Attorney’s Office did an outstanding job in addressing this threat from the time it was first reported to the FBI until the successful arrest of the subject.”
As alleged in the criminal complaint, between approximately February 4 and February 16, 2013, BOWDEN made numerous telephonic threats, initially through text messaging with a cooperating witness and subsequently through text messaging and verbal conversations with an undercover law enforcement agent, discussing her plans to commit a suicidal mass shooting and bombing at Gateway Community College in New Haven. In these communications, BOWDEN claimed to possess firearms and to have constructed at least two napalm-based bombs at her residence.
BOWDEN was arrested yesterday on state charges. At that time, investigating agents conducted a court-authorized search of BOWDEN’s East Haven residence. No firearms or explosive devices or related materials were found during the search.
BOWDEN appeared today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport and is detained pending a hearing that is scheduled for March 1.
BOWDEN is charged with one count of false information and hoaxes. The charge carries a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the New Haven Police Department and the East Haven Police Department. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Drug Dealer Sentenced to 108 Months in Federal PrisonRead the Press Release
EUGENE, Ore. – Jose Gonzalez-Alvarado, 32, of Springfield, Oregon, was sentenced today by U.S. District Court Chief Judge Ann Aiken to 108 months in federal prison for possession with intent to distribute methamphetamine. Upon his release from prison, Gonzalez-Alvarado will be on supervised release for five years.
On November 3, 2010, Springfield Police Department detectives contacted Gonzalez-Alvarado in Springfield after receiving a tip that he was going to deliver methamphetamine. Gonzalez-Alvarado was searched and detectives found four ounces of methamphetamine on his person. A residence associated with Gonzalez-Alvarado was also searched and five ounces of methamphetamine, $6,000 in drug proceeds, scales, packaging material, and a pistol were located.
This case was investigated by the Springfield Police Department and the Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Convicted Fraudster Sentenced to 8 Years in Prison in Scheme to Buy Merchandise Using Stolen Identifying Information to Open Instant Credit AccountsRead the Press Release
Convicted in a Similar Scheme in 2007Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Lavon Richard Caldwell, age 31, of Baltimore, today to eight years in prison followed by five years of supervised release for bank fraud and four counts of aggravated identity theft. Judge Bennett also ordered Caldwell to pay restitution of $16,024.70.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
Caldwell pleaded guilty after four days of trial to using the personal identifying information of individual victims, without their knowledge, to obtain credit accounts in the victims’ names. According to evidence introduced at trial, from September 2011 to February 3, 2012 Caldwell used the fraudulently obtained credit accounts to purchase high priced merchandise from retail stores, including designer clothing, electronics and other personal items, without intending to pay for the merchandise. Caldwell used fake driver’s licenses and other identifying information to assume the identity of the victims.
Caldwell stole the personal identifying information of five individual victims to purchase and attempt to purchase merchandise, including luxury items, such as Hermes sweaters and Gucci bags, electronics and other personal items, totaling at least $70,677.52.
On February 3, 2012 the defendant was arrested at the Neiman Marcus in Washington, D.C., while attempting to purchase $4,000 in merchandise using a fraudulently obtained account and fake driver’s license.
At the time Caldwell engaged in this fraud scheme, he was on supervised release after having served 61 months in federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with a similar scheme. Judge Bennett also sentenced Caldwell today to 21 months in prison, followed by two years of supervised release, to be served concurrent to the eight year sentence, for violating his supervised release.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul Budlow and Michael Cunningham, who prosecuted the case.
Charlotte Man Charged with Stealing More Than $829,000 from the University of North Carolina at CharlotteRead the Press Release
The Defendant Has Agreed to Plead Guilty to Conspiracy to Commit Theft of Program Receiving Federal Funds
CHARLOTTE, N.C. – A bill of information and a plea agreement were filed today in U.S. District Court charging a Charlotte man with one count of federal program theft conspiracy for stealing over $829,000 from the University of North Carolina at Charlotte (“UNCC”), announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Jeffrey A. Baker, of UNCC’s Police Department, join U.S. Attorney Tompkins in making today’s announcement.
According to the criminal bill of information, Sam Hanna, 62, of Charlotte, and two co-conspirators engaged in a scheme involving fraudulent contracts, bribes and kickbacks which defrauded UNCC of over $829,000. Court documents indicate that beginning in March 2005 Hanna was employed by UNCC as a Facilities Engineer Specialist and was responsible for soliciting bids and selecting outside contractors to work at UNCC. Hanna also had the authority to award contracts under $30,000 without a bid process. UNCC is an educational institution that receives federal assistance in the form of grants, loans and subsidies, among others.
According to the charging document and plea agreement filed today, Hanna used his position and authority to award no-bid contracts under $30,000 to two entities owned by Hanna’s co-conspirators. One of the companies owned by Hanna’s son-in-law, identified in the bill of information as “Individual A,” owned and operated “Air Handling Equipment Enterprises (“Air Handling”), based in Washington, D.C. A second co-conspirator, identified as “Individual B,” owned and operated “Air Motion Systems” (“Air Motion”) a company based in Greenville, S.C. Both companies maintained company bank accounts which were used to facilitate the scheme, filed documents indicate.
According to information contained in the charging document and the plea agreement, beginning from 2006 through 2011 Hanna awarded no-bid contracts to Air Handling and Air Motion and directed $829,807 as payments to the two companies in connection with such no-bid contracts. Air Handling and Air Motion did little or no work to justify the payments and Hanna issued fraudulent invoices from UNCC for Air Handling and Air Motion to cover up the fraudulent scheme. Court records show that the co-conspirators deposited the fraud proceeds in the companies’ bank accounts. Then, at Hanna’s direction, individuals A and B directed $413,170 in bribe payments to Hanna by depositing the money in a bank account of a company owned by Hanna, “Air Touch Systems” (“Air Touch”). Filed documents indicate that Hanna used the money he obtained through these kickbacks to pay for personal expenditures, including payments for multiple consumer lines of credit, mortgage payments for his home, and to make purchases from Dish Network, Anne Taylor and Verizon, among other things.
Hanna has been charged with, and agreed to plead guilty to, one count of federal program theft conspiracy. He faces a maximum prison term of five years and a $250,000 fine. The defendant has also agreed to pay full restitution, the amount of which will be determined by the Court at sentencing. Hanna’s initial appearance and plea hearing will be scheduled by the U.S. District Court.
The investigation is handled by FBI and the UNCC Police Department. The prosecution for the government is being handled by Assistant United States Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte.
Chadron Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Robert Fleming, 32, of Chadron, Nebraska, was sentenced today, February 20, 2013, in Lincoln, Nebraska, to 10 years in prison by United States District Judge Richard G. Kopf, for receipt and distribution of child pornography. After his release from prison, Fleming will be required to serve the rest of his life under supervision.
On November 22, 2008, the Chadron Police Department executed a search warrant at Fleming’s residence in Chadron, Nebraska. The Chadron Police Department then contacted the FBI seeking assistance in conducting forensic examinations of the computer and other storage media to determine if there was child pornography on the items seized from Fleming’s residence. The FBI determined that there were 78 videos and 4,000 pornographic images depicting child pornography found on the computer and storage media. The images found included prepubescent minors engaged in graphic sexually explicit conduct. The images were received from at least July 27, 2006 to November 22, 2008.
This case was investigated by the Federal Bureau of Investigation and Chadron Police Department.Camp Hill Marijuana Trafficker ChargedRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment today charging a Camp Hill marijuana trafficker.
According to United States Attorney Peter J. Smith, Andrew Angle, age 25, is charged with conspiracy to distribute marijuana and money laundering. The Government is also seeking the forfeiture of approximately $85,000 in drug proceeds seized from a bank account, safe deposit box, and locations affiliated with Angle.
The case was investigated by the Drug Enforcement Administration, Dauphin County Drug Task Force, and the Cumberland County Drug Task Force. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In these particular cases, the maximum penalty under the federal statute is five years’ imprisonment for Angle and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Brooksville Man Sentenced to More Than Eight Years in Prison for Running Fraudulent Home Inspection BusinessRead the Press Release
Tampa, FL - U.S. District Judge James S. Moody today sentenced Dean Counce (42, Brooksville) president and founder of American Mortgage Field Services, LLC (AMFS), to 8 years and one month in federal prison for conspiracy to commit wire fraud. The court also ordered Counce to forfeit his interest in real estate and jewelry, which are traceable to proceeds of the offense. In addition, the court entered a money judgment in the amount of $12,774,102, which are the proceeds of the conspiracy. Counce pleaded guilty on September 14, 2012.
According to the plea agreement, Counce owned American Mortgage Field Services, LLC (AMFS). AMFS performed preservation and inspection work for homes in various phases of foreclosure, including homes that were owned by government entities such as Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The government entities paid servicing lenders, such as Bank of America, to protect and maintain their properties. Beginning in or around 2007, in order to protect the investments and to prevent unnecessary deterioration that may result from neglect or vandalism, some of these servicing lenders retained Counce’s company to conduct periodic inspection of government-owned or insured properties.
Each month, the servicing lenders would send Counce and AMFS a list of properties that required inspection. Counce performed some inspections personally and, as the business grew, he hired others to assist and eventually take over the inspection process. These inspections required Counce and other AMFS employees to visit a property, fill out an inspection report, and take photographs. Counce and others then compiled these inspection reports and transmitted them electronically to the servicing lender. The servicing lenders then paid Counce and AMFS a fee per inspection.
As the real estate market declined in Florida and throughout the country, Counce and AMFS began to receive an increasing number of requests for inspections on properties in foreclosure, the mortgages for most or all of which were owned or insured by Fannie Mae, Freddie Mac or FHA. The requests far exceeded Counce’s or AMFS’s capacity to deliver. As a result, Counce and other AMFS employees began fabricating inspection reports.
In total, between 2007 and 2009, Bank of America remitted $4,490,398.87 to Mid-Florida Home Securing (later known as AMFS) and, between 2009 and 2012, Bank of America paid AMFS $19,044,973.06 for inspections, a large percentage of which were never actually performed. As a result of this fraud, Counce and AMFS managed to keep overhead and expenses low and profits high, resulting in net profits to Counce of up to $1 million in a single month. Based on employee reports of fabrication rates, the government estimates the loss in this case to be approximately $12,774,102.
This case was investigated by the Federal Housing Finance Agency Office of Inspector General, Department of Housing and Urban Development Office of the Inspector General, and the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Brooklyn Man Pleads Guilty in Manhattan Federal Court to 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 HENRY GORDIN pled guilty today in Manhattan federal court to conspiring to defraud programs administered by the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”), established to aid the survivors of Nazi persecution, out of more than $57 million. GORDIN was arrested in October 2011, as part of an ongoing investigation that has resulted in charges against a total of 31 defendants, 10 of whom were former Claims Conference employees, including a former director. He pled guilty today before U.S. District Judge Thomas P. Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Henry Gordin was supposed to help survivors of the Holocaust be financially supported in their waning years, but instead he used his position to defraud the Claims Conference and help himself to money intended for victims of the Nazis. With his plea today, we are closer to holding to account all those who participated in this repulsive fraud.”
According to the Complaint and the Indictment filed in Manhattan federal court:
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.
While employed as a caseworker in the Hardship Fund program at the Claims Conference, GORDIN knowingly processed fraudulent applications in return for payments from his co-conspirators. In addition, after he left the employ of the Claims Conference, GORDIN passed materials, including identification documents, to a co-conspirator still employed at the Claims Conference to support other fraudulent Hardship Fund applications.
GORDIN is the 23rd of the 31 defendants charged in the scheme to plead guilty, including six former Claims Conference employees. Charges remain pending against the remaining eight defendants in the case, who are presumed innocent unless and until proven guilty.
GORDIN, 75, of Brooklyn, New York, faces a maximum sentence of 20 years in prison. He is scheduled to be sentenced by Judge Griesa on August 7, 2013 at 4:30 p.m.
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.
U.S. v. Domnitser, et al. S1 Indictment
Blairsville Man Pleads Guilty in Heroin Trafficking SchemeRead the Press Release
JOHNSTOWN, PA. - A resident of Blairsville, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Dewann Jamal Macon, 37, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Macon, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Judge Gibson scheduled sentencing for July 2, 2013, at 9:30 a.m. The law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Macon. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Baltimore Felon Sentenced to 15 Years in Prison for Possession of AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Robert Hubbard, age 37, of Baltimore, late yesterday to 15 years in prison, followed by five years of supervised release, for being a felon in possession of ammunition. Judge Bennett enhanced Hubbard’s sentence upon finding that he is an armed career criminal based on two previous convictions for carjacking and two previous robbery convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to testimony at Hubbard’s three day trial, on November 10, 2011, Baltimore Police Department officers executed a search warrant at Hubbard’s residence after a confidential informant purchased drugs from Hubbard at his home. During the search Hubbard was located in the front bedroom and told the officers that his gun was in the safe and the drugs on the bed belonged to him. During a search of the front bedroom, officers found a safe containing a .32 caliber revolver loaded with 5 rounds of ammunition, 1 box of ammunition (containing 47 .32 rounds), $150 cash, 1 clear ziplock bag with marijuana, and a copy of Hubbard's rental agreement. Officers also recovered 1 clear plastic bag containing seven ziplock bags of heroin and another clear bag containing cocaine.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, and Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.
Augusta Optometrist Pleads Guilty to Health Care Fraud CaseRead the Press Release
AUGUSTA, GA: JEFFREY SPONSELLER, 47, of Augusta, Georgia pleaded guilty today before United States District Court Judge J. Randal Hall to submitting over $800,000 in fraudulent claims to Medicare.
Evidence presented at today’s guilty plea hearing showed that SPONSELLER, an optometrist and an owner of Eye Care One, located at 3152 Washington Road in Augusta, Georgia, submitted claims to Medicare for payment for eye examinations of nursing home patients. Instead of billing Medicare for the actual service he was providing at the nursing homes, SPONSELLER claimed that he was conducting the most expensive type of eye examination which typically lasts 45 minutes. An example of this health care fraud presented at today’s guilty plea hearing involved a July 27, 2009 visit by SPONSELLER to a nursing home in Americus, Georgia where SPONSELLER billed Medicare for 177 patients that he claimed to have examined individually for 45 minutes each during that one-day visit. As a result this type of fraudulent billing, Medicare paid SPONSELLER for that type of eye exam more than any other doctor in the United States in 2009.
United States Attorney Edward J. Tarver said, “Health care fraud is a cancer on the financial health of our nation. In many cases, such as with this Defendant, it is committed by professionals who are well educated and highly regarded. Whether that fraud is perpetrated by an optometrist willing to claim that he worked the equivalent of 5½ days during a one-day visit to a nursing home – like this defendant did – or a medical equipment supplier that bills Medicare without authorization, the ultimate injury is to the American taxpayer. The United States Attorney’s Office and its law enforcement partners will actively pursue those who abuse our country’s health care programs for financial gain.”
Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region, said, “Any time false claims are submitted for payment, our nation's health insurance programs and beneficiaries suffer. Protecting precious Medicare funds remains a top priority for the Inspector General and our law enforcement partners.”
SPONSELLER faces a maximum penalty of five years imprisonment and a fine of up to $250,000, in addition to paying restitution. The date for SPONSELLER’s sentencing hearing has not yet been scheduled.
FBI Special Agents Paul Kubala and Jason Gustin, U.S. Attorney’s Office Investigator Kimberly Reinken, HHS-OIG Special Agent David Graupner, and IRS Special Agents Roger Garland and Jeffrey Hale participated in the investigation of this case. Assistant United States Attorney David Stewart is prosecuting in this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Aldama-Rodriguez Sentenced for Part in Abbeville Drug Distribution RingRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that Ramon Guadalupe Aldama-Rodriguez, 35, of Mexico, was sentenced Tuesday before U.S. District Judge Richard T. Haik to 37 months in prison plus five years supervised release for distributing cocaine and heroin between Abbeville and Baton Rouge.
According to court documents, Aldama-Rodriguez and Jose Manuel MojicaEcheverria were approached at a Duson trailer park by Abbeville drug traffickers Jesus Silverio Cervantes and Joel Sotomayor Cervantes on June 13, 2010, to drive a truck loaded with 2 kilograms of cocaine and 360 grams of heroin to Baton Rouge. Aldama-Rodriguez drove the truck and Mojica-Echeverria rode with him, while Jesus Silverio Cervantes and Joel Sotomayor Cervantes followed in another vehicle. Authorities stopped the truck and the drugs were found. Aldama-Rodgriguez pleaded guilty on Oct. 11, 2012.
“This investigation disrupted the sale of illegal drugs that spanned from Abbeville to Baton Rouge,” Finley stated. “We thank the federal, state and local authorities who participated to end this criminal activity. This case reflects a joint effort by this office, the DEA, the Baton Rouge Police Department and the sheriff’s office. More operations like this one make a difference in our communities.”
Aldama-Rodriguez was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The DEA, the Baton Rouge Police Department, and the Vermillion Parish Sheriff’s Office participated in this OCDETF investigation.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug traffickingorganizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Brett L. Grayson prosecuted the case.
Albuquerque Man Sentenced to More Than Fourteen Years in Prison for Robbing Three Albuquerque-Area BanksRead the Press Release
ALBUQUERQUE – Late yesterday afternoon, Danny Kevin Brawner, 50, of Albuquerque, N.M., was sentenced to 170 months in prison to be followed by nine years of supervised release for his bank robbery convictions. Brawner also was ordered to pay full restitution to the three banks he robbed.
Brawner was arrested on April 21, 2011, and has been in federal custody since that time. On Nov. 29, 2012, Brawner pled guilty to an indictment charging him with three counts of bank robbery.
At his plea hearing, Brawner admitted robbing the following three Albuquerque banks: (1) the Wells Fargo Bank inside the Albertson’s Supermarket at 6200 Coors Blvd. NW, on Feb. 7, 2011; (2) the First Community Bank at 1418 Carlisle Blvd. NE, on April 14, 2011; and (3) Bank of the West at 5901 Menaul Blvd. NE on April 18, 2011. In entering his guilty plea, Brawner admitted presenting each of the victim bank tellers with a note demanding cash and threatening that he had a weapon.
Court records reflect that the FBI began investigating Brawner after it received a tip identifying Brawner as the individual who robbed the three banks. The investigation revealed that the get-away car used during the April 14, 2011 bank robbery was registered in the name of Brawner’s girlfriend. After witnesses to the first two of Brawner’s bank robberies identified him from a photo array, the FBI and Albuquerque Police Department arrested Brawner, who admitted robbing the three banks.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Norman Cairns.
Alberto Jose Zapata Morel Sentenced for Illegal Re-entryRead the Press Release
ALBERTO JOSE ZAPATA MOREL, age 40, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Sarah S. Vance to twenty (20) months imprisonment, announced U. S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Vance ordered that MOREL be placed on three (3) 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 7, 2012, MOREL, who also goes by the name Martin de Jesus Herrera-Mayerena, 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 re-application for admission into the United States. MOREL’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, Homeland Security Investigations (ICE). The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Tuesday 19 February 2013
Washington County Man Sentenced to 5 Years in Prison for Violating Federal Firearms LawsRead the Press Release
PITTSBURGH, Pa. - A resident of Washington, Pa., has been sentenced in federal court to five years imprisonment, to be followed by two years supervised release, on violating federal firearms charges, United States Attorney David J. Hickton announced today.
Timothy D. Johnson, 41, was sentenced on 11 counts before United States District Judge Cathy Bissoon. Johnson was also ordered to forfeit firearms and silencers, including a Sten machine gun.
According to information presented to the court, in or around 2008 Johnson knowingly disposed of a firearm to a convicted felon. In addition, on various dates between Dec. 5, 2010, and Oct. 14, 2011, Johnson unlawfully possessed and transferred silencers and a machine gun. Most of the transactions and conversations preceding the transactions were captured on audio and video recordings supervised by the FBI.
Johnson frequently boasted of his ability to manufacture silencers and fully automatic weapons during the investigation. After his arrest, Johnson admitted that the firearm and silencer he possessed and transferred on May 18, 2011, were used by him in April 2011 in a drive-by shooting of a car parked outside a Washington County residence. One of the bullets from that shooting struck the house, though no one was injured. Johnson told the FBI that former East Washington Police Chief Donald Solomon instigated the shooting.
FBI Special Agent James Shearer testified that Johnson and Solomon were originally to be members of a "home invasion" team that would rob homeowners of cash and, in some instances, drugs. Solomon, as Police Chief, was to provide background information on the subjects and "cover" during the home invasions, according to recorded conversations captured by the FBI.
Prior to announcing sentence, Judge Bissoon described Johnson's challenges to the evidence as "unpersuasive" and "disingenuous".
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the assistance of the Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service,
and other state and federal law enforcement agencies, for the investigation leading to the successful prosecution of Johnson.Two Former Marines Charged in Miramar Air Station Bribery and Fraud SchemeRead the Press Release
United States Attorney Laura E. Duffy announced today that former U. S. Marine Sergeants Luis Gilbert Menchaca and Manuel Ramos Padilla have been indicted on bribery and fraud charges involving the filing of false travel and lodging claims at the Marine Corp Air Station (MCAS) Miramar.
The indictment alleges that from 2002 to 2011, Menchaca served in the U. S. Marine Corps reserves, and periodically received orders calling him onto active duty at MCAS Miramar. Ramos, a fellow Marine, worked in an administrative office at Miramar that processed lodging claims for reservists like Menchaca. The indictment alleges that Ramos and Menchaca conspired to defraud the Defense Department by submitting false monthly claims for lodging reimbursements for Menchaca, and by creating fake rental bills to substantiate those false claims. The address in San Diego that Menchaca claimed to be renting was, in fact, a nonexistent street number in Mission Valley.
According to the indictment, Ramos knowingly signed and approved dozens of false lodging claims for Menchaca and another reservist, a Staff Sergeant (identified only by initials in the indictment) who has been charged elsewhere. Each of the two reservists received tens of thousands of dollars in lodging payments as a result of the scheme. In exchange for facilitating the fraud, Ramos in turn demanded and received thousands of dollars of bribe payments from the reservists. Many of these bribes were paid by personal checks made payable to Ramos; other bribes were paid in cash.
The ten-count indictment charges both defendants with conspiracy to commit bribery and false claims in count one. Counts two through four charge Ramos with substantive counts of bribery. The remaining six counts charge the defendants with making false claims to the United States.
United States Attorney Duffy stated, “Investigating and prosecuting bribery is one of our top priorities. With our nation’s military budget being strained to the breaking point, public corruption that drains needed U. S. Marine Corps resources will not be tolerated.”
The Naval Criminal Investigative Service notes that fraud in the armed services is not a victimless crime; it squanders hard-earned tax dollars and erodes the confidence that citizens place in their military. Charles Warmuth, NCIS Special Agent in Charge for Marine Corps West Field Office, stated "The Department of the Navy is facing massive budget cuts in the near future so it is as important as ever that offenders are found and held accountable.”
Menchaca was arraigned today before U. S. Magistrate Judge Karen S. Crawford and Ramos was arraigned on January 24 before U.S. Magistrate Judge Barbara L. Major. Both defendants pled not guilty. The case has been assigned to U. S. District Judge Dana M. Sabraw. The next scheduled court appearance is March 1, 2013 for a motion hearing.
DEFENDANTS Case Number: 12cr5099-DMS Manuel Ramos-Padilla
Luis Gilbert Menchaca SUMMARY OF CHARGESCount 1: Conspiracy to commit bribery and false claims, in violation of Title 18, United States Code, Section 371 (all defendants) - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.
Counts 2 to 4: Bribery, in violation of Title 18, United States Code, Section 201 (defendant Ramos) - Maximum penalties (per count): Fifteen years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
Counts 5 to 7: False claims, in violation of Title 18, United States Code, Section 287 (defendants Ramos and Menchaca) - Maximum penalties (per count): Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
Counts 8 to 10: False claims, in violation of Title 18, United States Code, Section 287 (defendant Ramos) - Maximum penalties (per count): Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYNaval Criminal Investigative Service
An indictment is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Three Individuals Plead Guilty to Selling Meth on the Spirit Lake Indian ReservationRead the Press Release
GRAND FORKS - U.S. Attorney Timothy Q. Purdon announced that on Feb. 19, 2013, Fulton Merrick, Jr., Garrick Mini, and Rayone Sherman, each pleaded guilty before U.S. District Judge Ralph R. Erickson to a charge of distribution of a controlled substance.
Merrick, Jr., 37, Devils Lake, N.D., pleaded guilty to distributing approximately .40 grams of a substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in August of 2011.
Mini, 32, Devils Lake, N.D., pleaded guilty to distributing approximately .15 grams of methamphetamine in August of 2011.
Sherman, 44, Fort Totten, N.D., pleaded guilty to distributing approximately .72 grams of a substance containing a detectable amount of methamphetamine in May of 2011.
All incidents occurred on the Spirit Lake Indian Reservation.
The charge of distribution of a controlled substance carries a statutory maximum penalty of 20 years' imprisonment.
These cases were investigated by the Drug Enforcement Administration, Bureau of Indian Affairs, North Dakota Bureau of Criminal Investigation and Devils Lake Police Department.
Sentencing for all defendants has been scheduled for May 9, 2013, in U.S. District Court in Grand Forks, N D.
Assistant U.S. Attorney Janice M. Morley is prosecuting the cases.
Three Automotive Parts Suppliers Charged in Manhattan Federal Court with Selling Counterfeit Replacement PartsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of Indictments charging three automotive parts suppliers with selling counterfeit replacement parts. The three men – SHASHI MALHOTRA, FADI KILANI, and RICHARD DININNI – were arrested at their homes earlier this morning. MALHOTRA and KILANI will be presented in Manhattan federal court before U.S. Magistrate Judge Gabriel W. Gorenstein this afternoon. DININNI will be presented in federal court in Allentown, Pennsylvania.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants sold the automobile replacement parts equivalent of designer knock-offs, but represented to their unsuspecting customers that they were buying the ‘name brand.’ And while their replacement parts may have been no different from many other generic parts sold every day in the aftermarket, they were able to command the same higher prices charged by the automobile manufacturers’ whose names they stole. We encourage those who think they may have purchased counterfeit parts from these defendants or from anyone else to call the numbers listed at the end of this release.”
FBI Assistant Director-in-Charge George Venizelos said: “While it is not generally against the law to sell replicas or imitations, it is illegal to try to pass them off as authentic or original. Likewise, there is a legitimate market for aftermarket auto parts, but these defendants allegedly packaged parts to appear to be original manufacturer equipment and sold them as such. That isn’t legitimate; it’s fraud.”
According to the allegations in the Indictments unsealed in Manhattan federal court earlier today:
New automobiles sold to consumers are equipped with automotive parts that are manufactured or provided by the automobile’s manufacturer (“Original Equipment Manufacturer” or “OEM”). When a consumer needs to replace a part in an automobile, he or she can purchase either: parts made by OEMs which are sold under the OEMs’ brand names; or generic parts made by other manufacturers that are commonly referred to as “aftermarket” parts. Generic parts are regularly bought and sold lawfully as aftermarket parts, typically at lower prices than OEM parts. Many types of aftermarket parts – including those sold and falsely packaged as OEM parts by MALHOTRA, KILANI, and DININNI – do not have to meet independent federal safety standards.
MALHOTRA and KILANI
From October 2011 through February 2013, MALHOTRA, who operated Worldwide Auto Parts and S&S International Products and Manufacturing in Paterson, New Jersey, and KILANI, who operated Cypros Trading and Shipping in Paterson, New Jersey, conspired to sell counterfeit OEM parts. Specifically, the defendants and their co-conspirators deceptively packaged and caused to be packaged certain aftermarket automotive parts – including brakes, brake pads, brake shoes, ignition coils, water pumps, window regulators, suspension sway bar links, wheel hubs, anti-lock braking sensors, control arm bushings, transmission filters, pitman arms, tie rod ends, and suspension air springs – to falsely make it appear as though these parts had been manufactured by OEMs such as Ford Motor Company, General Motors, and Federal Mogul (the “Manufacturers”). They sold these parts to individuals and entities that they understood would re-sell them to the general public and to certain automotive repair shops, including repair shops that service New York City’s taxis and limousines, which are subject to separate and regularly scheduled safety testing by the New York City Taxi and Limousine Commission. MALHOTRA obtained some of these counterfeit parts from China, and KILANI exported some of these counterfeit parts to Saudi Arabia.
DININNI
Similarly, from November 2011 through June 2012, DININNI, who operated Professional Parts USA in Easton, Pennsylvania, also conspired to sell counterfeit OEM parts. Along with his co-conspirators, DININNI also deceptively packaged and caused to be packaged certain aftermarket automotive parts, including brake pads and water pumps to falsely make it appear as though these parts had been manufactured by OEMs. DININNI and his co-conspirators then sold these parts to individuals and entities that they understood would re-sell them to the general public and to certain automotive repair shops, including repair shops that service New York City’s taxis and limousines.
MALHOTRA, 67, of Norwood, New Jersey, KILANI, 28, of Englewood, New Jersey, and DININNI, 57, of Easton, Pennsylvania, are each charged with one count of conspiracy to traffic in counterfeit goods, which carries a maximum sentence of five years in prison, and one count of trafficking in counterfeit goods, which carries a maximum sentence of 10 years in prison.
As the U.S. Attorney’s Office and the FBI identify individuals and entities that may have purchased counterfeit automotive parts from these defendants, both will make appropriate notifications. If you believe you may have purchased any counterfeit automotive parts from these defendants or anyone else, you may wish to have your car inspected at an authorized and qualified vehicle inspection facility to determine whether the parts in question are counterfeit.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked U.S. Customs and Border Protection, Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Department of Commerce for their assistance with this investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Joseph Facciponti and Christopher D. Frey are in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the asset forfeiture aspects of the case.
If you have questions, you may call the victim witness hotline for the U.S. Attorney’s Office at (866) 874-8900 or the FBI at (212) 384-2135. Several original equipment manufacturers have also established numbers which you may call with questions. You may call Ford Motor Company at (313) 337-3663, Federal Mogul at (877) 489-6659, and Chrysler at (855) 818-7612.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Shashi Malhotra and Fadi Kilani Indictment
U.S v. Richard Dininni IndictmentTax Preparer Charged with Falsifying Returns to Increase Client RefundsRead the Press Release
PHILADELPHIA - Shawn Sisco, 48, of Philadelphia, PA, was charged today by Indictment with preparing false income tax returns for her clients, announced United States Attorney Zane David Memeger. According to the indictment, Sisco, who owned Sisco Accounting, a home-based tax preparation business, falsified the itemized deductions on her clients’ returns in order to obtain refunds in amounts larger than the filers would have otherwise received if Sisco had truthfully prepared the tax returns. According to the indictment, the bogus expense deductions included: medical and dental expenses; charitable contributions; mortgage interest; cell phone expenses; property tax expenses; clothing and shoe expenses; laundry expenses; and maintenance expense.
If convicted the defendant faces a maximum possible sentence of 93 years of imprisonment, a fine of $7.750 million, a special assessment of $3,100 and 1 year of supervised after she is released from prison.
The case was investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
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, 215-861-8525Tabor City Man Pleads Guilty in Crop Insurance Fraud CaseRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today PATRICK REX LOVETT, 48, of Tabor City, North Carolina, pled guilty before Chief United States District Judge James C. Dever III, to structuring transactions to evade reporting requirements, in violation of Title 31, United States Code, Sections 5324(a)(3) and (d)(2).
According to the Criminal Information filed on November 26, 2012, and information presented in open court, LOVETT, a farmer and President of Lovett Farms, structured currency transactions with one or more domestic financial institutions for the purpose of evading the legal obligation to report currency transactions in excess of $10,000. From October 8, 2008, through September 14, 2009, LOVETT cashed 22 checks totaling over $160,000. Each check was issued in amounts less than $10,000, and some of the checks were tied to tobacco sales.
At sentencing, set for the May 20th, 2013, term of court, LOVETT faces up to 10 years imprisonment followed by up to 3 years of supervised release and a fine of $500,000.
This case is part of the ongoing investigation of the multi-million dollar crop insurance fraud in the Eastern District of North Carolina.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Suwannee County Man Indicted on Federal Charge of Failure to Register as Sex OffenderRead the Press Release
Jacksonville, Florida - United States Attorney Robert E. O'Neill announced today the return of an indictment charging Denny Junior Jenkins (41, Live Oak) with failing to register as sex offender in the State of Florida after traveling from South Carolina. Jenkins faces up to 10 years in federal prison and a $250,000 fine. An arraignment and detention hearing are scheduled for February 22, 2013, at 10:00 a.m. before United States Magistrate Judge Monte C. Richardson.
According to the indictment, on September 4, 1992, Jenkins was convicted of committing two sex offenses in Florida. Subsequent to his conviction, between March 2012 and September 2012, Jenkins traveled from South Carolina to Florida, where he has since resided. Jenkins allegedly failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Steven Ray Cook Sentenced to 360 Months for Running Multi-State Drug Distribution RingRead the Press Release
Memphis, TN – Stephen Ray Cook, 40, of Trenton, TN, was sentenced on Friday, February 15, 2013, to 360 months in federal prison for his role in masterminding a drug distribution ring that operated across the eastern United States, announced U.S. Attorney Edward L. Stanton III.
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Cook was indicted by a federal grand jury on May 18, 2011 and charged with one count of conspiracy to possess with intent to distribute at least 1,000 kilograms of marijuana, and one count of possession with intent to distribute at least 500 grams of methamphetamine. He pleaded guilty to the marijuana conspiracy charge on January 12, 2012. The government agreed to dismiss the methamphetamine count.
It was revealed during his plea hearing and at sentencing that Cook recruited family members and acquaintances to assist him in trafficking marijuana from locations in Mexico to Memphis, Chicago, Atlanta and other cities.
In addition to the prison sentence, U.S. District Judge Samuel H. Mays, Jr. ordered Cook to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Drug Enforcement Administration, the Bolivar Police Department, and the West Tennessee Drug Task Force. Assistant U.S. Attorney Jerry Kitchen represented the government.Second Former Humana Inc. Employee Admits to Taking Kick-Backs Totaling $2 Million Dollars in an Insurance Sales Bribery SchemeRead the Press Release
LOUISVILLE, Ky. – Former Humana Inc. regional sales director, Glen Allan Fine, pleaded guilty in United States District Court in Louisville, Kentucky today, to charges of racketeering and bribery, in connection with his former position, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Fine, age 56, of Louisville, pleaded guilty to a single count federal information charging him with taking kickbacks totaling at least two million dollars while employed as part of Humana’s sales and marketing division known as the MarketPoint Organization. Co-defendant, James Wenger, age 50, of Louisville pleaded guilty to the charge on January 23, 2013.
According to the plea agreement, Fine admits that in 2005, he, along with Wenger and others, met at a hotel in Florida to discuss sending insurance agents to Shep Cutler, one of the larger Managing General Agencies (MGA). Fine and co-defendant James Winger, another Humana employee, agreed to send insurance agents, who wanted to sell Humana Medicare Advantage and Prescription Drug Plan products, to Cutler and McNerney in exchange for Cutler sending payments to Fine and Wenger. The four agreed to split the override fees, and each would receive payments of 25%. Fine and Wenger agreed to set up fictitious businesses accounts in their wives' names. Fine admitted he sent agents to Cutler and McNerney's MGAs, and acknowledged his wife did not provide any service in exchange for the money received from Cutler. Fine was not authorized by Humana to enter into a kickback relationship with Cutler and McNerney. Fine received approximately $2,000,000 for his participation in the scheme. As a result of this kickback arrangement, Humana suffered a loss to its business, and had to pay legal and other investigative costs.
At sentencing, Fine faces a combined maximum term of five years in prison, a combined maximum fine of $250,000, and a three year period of supervised release. Fine may also be ordered to forfeit any and all property derived from the gross proceeds of the offenses for which he has pleaded guilty.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of Inspector General, and the United States Postal Inspection Service, with assistance from the Humana Inc.
San Francisco Man Sentenced to Eight Years in Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO - Vincent Lee was sentenced yesterday to 96 months in prison, and ordered to pay $2,400 in restitution for possession of child pornography, United States Attorney Melinda Haag announced.
Mr. Lee pleaded guilty on September 6, 2012, to one count of possessing child pornography in violation of 18 U.S.C. § 2252(a)(4)(B). According to the plea agreement, Mr. Lee admitted that he possessed over 200 videos of child pornography, including videos of prepubescent children being sexually abused in ways that would cause them pain. Mr. Lee also admitted that upon learning a search warrant would be executed at his residence, he obstructed the investigation by deleting software and images on his computer before the police arrived.
Mr. Lee, age 54, of San Francisco, California, was indicted by a federal grand jury on May 3, 2012. He was charged with distributing and possessing child pornography. He has been in continuous custody since his initial bond was revoked after he cut off his electronic bracelet and left the District in violation of his bond conditions.
The sentence was handed down by U.S. District Court Judge Jeffrey S. White following a guilty plea to one count in violation of 18 U.S.C. § 2252(a)(4)(B) (possession of child pornography). Judge White also sentenced the defendant to a five-year period of supervised release.
Stacey Geis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rania Ghawi. The prosecution is the result of an investigation by the Department of Homeland Security in coordination with the San Jose Police Department.
Parkville Man Sentenced to 27 Years in Prison for Sexual Bondage of a 15 Year Old GirlRead the Press Release
Recruited Women and Girls Online Into a Bondage and Sadistic Lifestyle; Took the 15 Year Old Girl from Her Home and Kept Her ConfinedBaltimore Maryland - U.S. District Judge James K. Bredar sentenced John Andrew Blaes, age 49, of Parkville, Maryland, today to 27 years in prison followed by a lifetime of supervised release for conspiracy to produce child pornography and transporting a minor to engage in sexually explicit conduct. Judge Bredar ordered that upon his release from prison, Blaes must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to the plea agreement, at some time prior to March 2010, Blaes and 37 year old co-conspirator Margaret Jones met online and became involved in a sexual relationship. Blaes used the Internet to recruit other women and girls into a bondage and sadistic sexual lifestyle.
On July 5, 2011, Blaes solicited a 15 year old girl to have sex with him and Jones. Blaes and Jones knew that the victim was a vulnerable minor. Blaes and Jones sent pornographic pictures of themselves to the victim using the computer.
On July 22, 2011, Blaes and Jones traveled to the victim’s home in North Carolina to bring her to live with them in Parkville. After picking the victim up in North Carolina, Blaes and Jones sexually abused her in the back of their vehicle, including using bondage with ropes, chains and clamps. The next day, Blaes and Jones rented a hotel room in North Carolina to have sex with the victim. Blaes and Jones used a camera to document the sexual abuse of the victim in the van and the hotel. The images include sadistic and masochistic conduct.
From July 22 to November 20, 2011, Blaes and Jones engaged in sex acts with the victim multiple times a week. Blaes also cut the victim and held lemons to her injuries. Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret. The victim was kept in their residence or in their control at all times, and was not enrolled in school.
Blaes and the co-conspirator used a camera and cell phones to photograph the victim in sexually explicit poses and their sexual abuse of the victim. Blaes distributed the sexually explicit images online to recruit other individuals.
Margaret Ellen Jones, of Parkville, Maryland, pleaded guilty to conspiracy to produce child pornography and is scheduled to be sentenced on June 11, 2013 at 4:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Judson T. Mihok, who prosecuted the case.
Parker Man Pleads Guilty to Abusive Sexual Contact with Minor ChildRead the Press Release
PHOENIX – Roberto Aguilar-Ramirez, 51, of Parker, Ariz., pleaded guilty in federal district court in Phoenix on Feb. 19, 2013, to abusive sexual contact with a minor. The minor victim was a member of the Colorado River Indian Tribes and the acts occurred on the Colorado River Indian Tribes Indian Reservation.
Aguilar-Ramirez, a foster father, had been charged with engaging in various abusive sexual acts with the minor victim over a period of two years.
A conviction for abusive sexual contact with a minor carries a maximum penalty of life in prison, a $250,000 fine, or both.
Sentencing is set before Chief Judge Roslyn O. Silver on May 13, 2013.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution is being handled by Christina J. Reid-Moore and Jennifer E. Green, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-0922-PHX-ROS
RELEASE NUMBER: 2013-018_Aguilar-RamirezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
North Hills Man Sentenced to Prison for Stealing Firearms from Hunting Supply CompanyRead the Press Release
PITTSBURGH, Pa. - A resident of Gibsonia, Pa., has been sentenced in federal court to one year and one day incarceration, to be followed by three years supervised release, on his conviction of violating federal firearm laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Robert Keller, 25.
According to information presented to the court, on Nov. 1, 2010, Keller stole five firearms from Misczak Hunting Supplies located at 201 Crawford Run Road, Creighton, Pa. As part of the sentence in this case, Keller was ordered to pay $1,480 in restitution to Misczak Hunting Supplies, as well as a $500 fine.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Robert Keller.
New Haven Man Pleads Guilty to Federal Narcotics ChargeRead the Press Release
February 19, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RODNEY SNAPE, 32, of New Haven, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of possessing cocaine base ("crack cocaine").
According to court documents and statements made in court, this matter stems from an FBI New Haven Safe Streets Task Force investigation into drug trafficking and associated violence in the Hill area of New Haven. From October to December 2012, an individual working with law enforcement made four purchases of a total of approximately 52 grams of crack cocaine from SNAPE.
Judge Arterton has scheduled sentencing for May 17, 2013, at which time SNAPE faces a maximum term of imprisonment of 20 years and a fine of up to $1 million.
This matter is being investigated by the FBI New Haven Safe Streets Task Force, which is composed of agents and officers with the Federal Bureau of Investigation, New Haven, Milford and Hamden Police Departments, and the Connecticut Department of Correction.
This case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mobile Accountant Sentenced to Federal Prison for Bankruptcy, Tax Perjury ChargesRead the Press Release
United States Attorney Kenyen Brown announces that Simon Ndongo of Mobile, Alabama was sentenced to eighteen (18) months in Federal prison and three years supervised release on his conviction of charges of falsification of documents in relation to a bankruptcy case and tax perjury. Ndongo, a former City of Mobile accountant, was also ordered to pay restitution of $278,055.47 to Bank of America; $50,131.33 to Citibank; $5,205.29 to JPMorgan Chase; $1,509.93 to Discover Card; $38,088.79 to the Bankruptcy Court; and 36,872 to the Internal Revenue Service.
The guilty plea concerns Ndongo’s 2008 Federal tax return, which falsely claimed the First Time Home Buyer Credit for purchasing a home in 2008, when he had not in fact purchased a home that year. Ndongo filed that false tax return with the Internal Revenue Service.
Ndongo also pled guilty to charges that he falsely answered questions about his investments in his bankruptcy Schedules, which obstructed the proper administration of the bankruptcy case, Case No. 08-11173, by concealing the investments from the Bankruptcy Court for the Southern District of Alabama, the Trustee and creditors. The plea agreement also required Ndongo to make restitution to the victims of crimes charges in other counts of the indictment to which he did not plead guilty.
The case was investigated by agents of the Mobile Office of the Federal Bureau of Investigation and the Mobile Office of Criminal Investigation, Internal Revenue Service. United States Attorney Kenyen R. Brown stated that the prosecution shows that the Department of Justice understands its duty to work to ensure that honest taxpayers are not taken advantage of and to endeavor to keep the bankruptcy system clean. Special Agent In Charge Veronica Hyman-Pilot, Internal Revenue Service Criminal Investigation, stated “Fraud and dishonesty in bankruptcy proceedings undermines the integrity of those important proceedings. Concealing assets from the bankruptcy court and not paying taxes is a gross violation of civic duty and deserves punishment such as that handed down today.”
The case was prosecuted by Assistant U.S. Attorneys Vicki Davis, Michele O’Brien and Charles Baer on behalf of the United States Attorney’s Office for the Southern District of Alabama.
Milwaukee Man Sentenced for Gun ChargeRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Feb. 19, 2013, Shawn R. Larkin, 30, Milwaukee, Wis., who was living in Minot, N.D., at the time of this incident, was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon. Larkin pleaded guilty to the charge on Oct. 12, 2012.
Judge Hovland sentenced Larkin to serve two years and seven months in federal prison, to be followed by two years of supervised release. Larkin was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On July 14, 2012, officers from the Minot Police Department responded to the report of a fight at Rooster’s Bar in Minot, N.D. While investigating the report, a witness indicated that a man, later identified as Larkin, had a gun in his possession. Officers found that Larkin had a loaded .40 caliber handgun in his waistband.
Larkin was prohibited from possessing either a firearm or ammunition by virtue of his previous felony convictions for theft, Milwaukee County, Wis., in 2001, and simple assault on a peace officer, Ward County, N.D., in 2012.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Minot Police Department.
Assistant U.S. Attorney David Hagler prosecuted the case.
Miami Man Sentenced in Federal Court for Medical Identity Theft SchemeRead the Press Release
Rural Gainesboro, Tennessee Barn Used as Medical Provider Address
Yennier Capote Gonzalez, 33, of Miami, Florida, was sentenced on February 15, 2013, by Chief U.S. District Judge William J. Haynes, Jr., to serve 67 months in federal prison, and ordered to pay restitution in the amount of $19,296 for his role in a medical identity theft scheme, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
Gonzalez was convicted by a federal jury in Nashville, Tennessee on November 2, 2012, of five counts of health care fraud, two counts of aggravated identity theft and one count of money laundering, after he falsely billed $232,000 to Medicare Advantage Program insurance companies.
“Health care fraud and identity theft are top priorities of the U.S. Attorney’s Office,” said U.S. Attorney, Jerry E. Martin. “We continue to expand our focus and dedicate new resources to investigating and prosecuting this type of white collar criminal activity and will stay the course to insure that those who operate fraudulent schemes such as this are held accountable.”
“Medical identity theft is one of the fastest growing areas of health care fraud,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services- Office of Inspector General in Atlanta. “In this case, the defendant was arrested less than 48 hours after our office received the complaint. The sentence handed down today should serve as a deterrent to anyone who tries to defraud the Medicare program.”
This investigation began in August 2010 after the U.S. Department of Health and Human Services- Office of Inspector General was notified that an individual in Miami, Fla. had attempted to wire $17,000 from a new Tennessee account that had recently received a $38,000 Medicare deposit. Gonzalez had opened the account for his recently incorporated business, Gainesboro Ultimate Med Service, in rural Gainesboro, Tennessee. A visit to the property revealed the only structure at the business location was an old barn and an uncompleted house at another tract of land that was used as the address for the fraudulently billed patients.
The investigation also revealed that Gainesboro Ultimate Med Service had stolen the identity of a Knoxville, Tennessee physician and used it to obtain a Medicare provider number at the barn address. Gainesboro Ultimate Med Service then submitted claims using the names of several Medicare beneficiaries who lived in South Florida. The patients, who were also victims of identity theft, were billed for services purportedly rendered at Gainesboro Ultimate Med Service, even though they had never been to Tennessee.
Gonzalez was arrested on August 25, 2010, at a bank in Miami, Fla., during another wire transfer attempt.
This case was investigated by agents of the U.S. Department of health & Human Services-Office of Inspector General. The government is represented by Assistant U.S. Attorneys Darryl Stewart and William Abely.
Leader in Marijuana Distribution Organization Convicted on Racketeering ChargesRead the Press Release
Charges Include Kidnapping and Murder in Aid of RacketeeringBaltimore, Maryland - A federal jury today convicted Jean Brown, age 43, of Jamaica in connection with a conspiracy to distribute marijuana as one of the leaders of the Brown Organization, a criminal organization whose members distributed narcotics primarily in Maryland, Pennsylvania, New York, Arizona and Jamaica. Co-defendant Gabriel Campa-Mayen, age 45, of Tijuana, Mexico, was acquitted of all charges.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s conviction of Jean Brown for drug conspiracy and kidnapping and murder in aid of racketeering is a victory for Homeland Security Investigations (HSI) special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and two countries. HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators that used intimidation and violence to further their criminal activities,” said William Winter, special agent in charge for ICE HSI Baltimore. “HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to evidence presented at their seven-day trial, Jean Brown and Carl Smith were the leaders of a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. The evidence showed that they transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
Brown employed drivers to drive the trucks, arranged for the distribution of the marijuana on the East Coast – principally in Baltimore and Pittsburgh, used couriers to smuggle the drug proceeds to Jamaica, and sent cash back to the Southwest to pay for the next load.
Witnesses testified that on December 16, 2009, Brown, Smith and co-defendants Peter Blake, Hubert Downer and Dean Myrie kidnapped Michael Knight, one of Brown’s money couriers. According to trial testimony, Knight was holding $1 million for the organization, but when the money was collected $250,000 was missing. Myrie drove Brown and Knight, who was bound with a telephone cable, and other members of the organization to an apartment in White Marsh, Maryland, where Brown and others interrogated Knight. After Knight was not able to provide the location of the money, Brown ordered Downer and Blake to kill Knight. Knight was stabbed to death in the bathtub. Over the next few days Brown, Myrie, Downer and Blake dismembered Knight and disposed of his body in dumpsters in the Loch Raven and Liberty Road areas of Baltimore County.
In addition to the murder of Knight, the evidence showed that after threatening Smith on several occasions, in April 2010, Brown offered to pay Campa-Mayen and Leo Alvarez Tostado-Gastellium to murder Smith in Tijuana, Mexico. Witnesses testified that Tostado-Gastellium killed Smith, shooting him in the head. Brown also assaulted a former partner in the drug organization with a baseball bat and a woman and her infant child with boiling water and a with a knife.
Brown faces a maximum of life in prison for the drug conspiracy, for kidnapping in aid of racketeering, and for murder in aid of racketeering; and a maximum of 10 years in prison for conspiracy to commit murder in aid of racketeering.
Hubert Downer, a/k/a “Doc” and “Michael Reid,” age 51, of Jamaica; Dean Myrie, a/k/a “Journey,” age 39, of Jamaica; and Peter Blake, age 55, of Jamaica have all pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Leo Alvarez Tostado-Gastellium, a/k/a “Superman,” is a fugitive.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit, and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Kodiak Man charged with murder of two Coast Guard EmployeesRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that James Michael Wells, 61, of Kodiak was indicted by a federal grand jury for the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle. Belisle, who was working as a Coast Guard civilian employee and Hopkins, were murdered at the U.S. Coast Guard Communications Station Kodiak on April 12, 2012. Wells’ is charged with four counts of premeditated murder and two counts of using a weapon in a crime of violence. All counts relate to the two murders.
Wells was arrested on February 15, 2013, under a federal arrest warrant based on a criminal complaint. As charged each count carries a maximum penalty of life in prison. Anyone with knowledge of the facts or information concerning these events is urged to contact the FBI.
Ms. Loeffler notes that the indictment comes after an extensive investigation led by the Federal Bureau of Investigation and the Coast Guard Investigative Service, with support from the Alaska State Troopers.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Kingsville Woman Arrested in Ohio on Corpus Christi Embezzlement CaseRead the Press Release
CORPUS CHRISTI, Texas – Maricella Garza, 37, of Kingsville, has been arrested following the return of an indictment charging her with embezzling funds from the Kingsville Community Federal Credit Union, United States Attorney Kenneth Magidson announced today.
Garza was arrested by U.S. Marshals Friday, Feb. 15, 2013, at a residence in Englewood, Ohio. She appeared in federal court that afternoon before U.S. Magistrate Judge Sharon L. Ovington.
The one-count indictment, returned on Jan. 9, 2013, alleges Garza was an employee of the Kingsville Community Federal Credit Union and embezzled approximately $30,555.55. The thefts are alleged to have occurred between Aug. 28, 2009, and July 9, 2010, according to the indictment.
If convicted, Garza faces up to 30 years in prison as well as a possible $1 million fine. She remains in custody in Dayton pending a bond hearing set for Feb. 20, 2013, at 1:30 p.m. She is expected to appear in Corpus Christi in the near future.
This case is being investigated by the FBI with assistance from the U.S. Marshals Service and prosecuted by Assistant United States Attorney Sam Brown IV.Kansas Man Pleads Guilty to Interstate Travel for the Purpose of Having Sex with A ChildRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man has pleaded guilty to interstate travel for the purpose of engaging in sex with a child, U.S. Attorney Barry Grissom said today.
Robert Poe, III, 38, Kansas City, Kan., pleaded guilty to three counts of traveling from Kansas to Missouri for the purpose of engaging in sex acts with a child.
During a hearing today, prosecutors told a judge the crimes occurred in 1999 and 2000. They said the investigation began in November 2000 when the Kansas City, Kan., Police Department received a complaint from the mother of a 7-year-old boy. She said Poe had engaged in sexual acts with her son. At the time, Poe was a friend of the mother’s boyfriend, Michael Arnett, and Poe sometimes served as a babysitter for the boy. Arnett is charged in a separate federal criminal case.
Prosecutors told the judge that one incident (count one) occurred in April 2000 when Poe was babysitting the boy at Poe’s home. Poe showed the boy photos of nude children and then made the boy perform oral sex on him.
Another incident (count two) occurred in July 2000 when Poe was babysitting. The boy said Poe held a gun to his head and forced him to perform oral sex.
Another incident (count three) occurred in 1999 or 2000. A victim told federal agents that he and his now deceased brother were molested by Poe and Arnett while the victim was between 10 and 12 years old. The victim said he first met Arnett in 1997 when his brother was a patient at a hospital in Kansas City. The victim’s brother had cystic fibrosis and died in May 2003. The victim said Arnett befriended him and his brother. The victim said the molestation started when Arnett’s friend Poe started showing up with Arnett in 1998. The victim said Poe held a gun to his head and forced him to perform oral sex on him. The victim said Poe first molested him at the house of Poe’s father in Shawnee Mission, Kan. The victim said Arnett and Poe took him and his brother out of town on weekend trips and molested both boys. The trips were to St. Louis, Mo., Bennet Springs, Mo., and Oklahoma City, Okla.
Sentencing is set for May 20. Poe faces a maximum penalty of 30 years in federal prison and a fine up to $250,000 on each count. In a separate federal case, Arnett pleaded guilty to one count of producing child pornography and is set for sentencing May 13.
Grissom commended the Kansas City, Kan., Police Department, ICE’s Homeland Security Investigations and Assistant U.S. Attorney Kim Martin for their work on the case.
Kansas City Man Gets 95 Years in Federal Prison for Robberies in Topeka and LeavenworthRead the Press Release
KANSAS CITY, KAN. – A Kansas City man has been sentenced to 95 years in federal prison for robbing financial institutions in Topeka and Leavenworth, U.S. Attorney Barry Grissom said today.
Charles E. Shaw, 55, Kansas City, Mo., was convicted in a jury trial in November of the following:
– Robbing the Main Street Credit Union at 1609 S. 4th in Leavenworth, Kan., on Nov. 24, 2010; and brandishing a firearm during the robbery.
– Robbing the Citizens National Bank at 601 Delaware Street in Leavenworth on Feb. 14, 2011.
– Robbing the Educational Credit Union at 901 Topeka Boulevard in Topeka, Kan., on Dec. 30, 2011; and brandishing a firearm during the robbery.
– Attempting to rob the Educational Credit Union again on Feb. 9, 2012; carrying a firearm during the attempted robbery; and carrying a firearm after a felony conviction.At sentencing, prosecutors noted that Shaw had five prior convictions for armed robbery dating back to 1983.
The judge also ordered Shaw to pay $54,052 in restitution.
Grissom commended the Topeka Police Department, the Leavenworth Police Department, the FBI and Assistant U.S. Attorney Terra Morehead for their work on the case.Justice Department and Town of East Haven, Conn., Select Kathleen O’toole as Joint Compliance Expert for Police Reform AgreementRead the Press Release
The Department of Justice Civil Rights Division and the U.S. Attorney’s Office for the District of Connecticut announced today, together with the town of East Haven, Conn., and the East Haven Board of Police Commissioners, they have selected Kathleen O’Toole as the Joint Compliance Expert (JCE) to assess and report on the implementation of a comprehensive settlement agreement to reform the East Haven Police Department (EHPD). The district court approved the agreement on Dec. 21, 2012.
Under the agreement, the JCE will assist in determining whether the terms of the agreement have been fully and timely implemented. The JCE’s assessment will include a thorough review of EHPD’s policies, training curricula, standard operating procedures, plans, protocols and other operational documents related to the agreement. The JCE will also assess whether the implementation of the agreement is resulting in constitutional policing, increased community trust, and the professional treatment of individuals by EHPD officers.
Following a joint review that included multiple candidates, the parties selected Ms. O’Toole to serve as JCE. She brings extensive policing experience and a collaborative compliance framework that will assist the parties, the court, and other stakeholders to evaluate the implementation of critical reforms by EHPD. Ms. O’Toole is an internationally-recognized leader in the law enforcement field and recently completed a six-year term as Chief Inspector of the Garda Síochána Inspectorate, an oversight body responsible for bringing reform, best practice, and accountability to the Irish national police service. Previously, she worked her way up the ranks of the Boston Police Department, beginning as a patrol officer and eventually serving as Boston Police Commissioner. Ms. O’Toole also served as Massachusetts Secretary of Public Safety. Ms. O’Toole intends to hire several other police experts to assist her in assessing compliance with the agreement. She will begin her work as JCE immediately.
“We are pleased to have worked collaboratively with the town to select Ms. O’Toole, who we believe is uniquely positioned to assess and report on the East Haven Police Department’s reform efforts,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “We look forward to working together with Ms. O’Toole and the town to ensure effective and constitutional policing by the East Haven Police Department.”
U.S. Attorney David Fein commented, “I am pleased that the joint selection of Kathleen O’Toole as the Joint Compliance Expert will now allow the real work to begin on the implementation of the settlement agreement approved by the court.”
The full text of the settlement agreement is available at www.justice.gov/crt/about/spl/findsettle.php . For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt .
Justice Department Reaches Settlement with Texas Champion Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
The Justice Department announced today that Texas Champion Bank of Alice, Texas, will establish uniform pricing policies, conduct employee training and pay $700,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.
The settlement, which is subject to court approval, was filed in conjunction with the Justice Department’s complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that Texas Champion charged higher prices on unsecured consumer loans made to His panic borrowers through its branch offices in violation of the Equal Credit Opportunity Act (ECOA).
“The complaint filed today demonstrates that the Civil Rights Division is committed to fair lending enforcement across the entire spectrum of credit markets,” said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. “We commend Texas Champion for working cooperatively with the Justice Department in reaching an appropriate resolution of this case.”
The lawsuit originated from a 2010 referral by the Federal Deposit Insurance Corporation (FDIC) to the Justice Department’s Civil Rights Division. Texas Champion is a member of the FDIC.
Under the settlement, Texas Champion will pay $700,000 to approximately 2,000 Hispanic victims of discrimination, monitor its loans for potential disparities based on national origin, and provide equal credit opportunity training to its employees. Texas Champion will also revise its pricing policies to ensure that the price charged for its loans is set in a non-discriminatory manner consistent with the requirements of ECOA. The agreement also prohibits the bank from discriminating on the basis of national origin in any aspect of a credit transaction.
“The Southern District of Texas is committed to ensuring banks and other lending institutions do not discriminate against borrowers on the basis of race or national origin,” said U.S. Attorney for the Southern District of Texas Kenneth Magidson. “The consent order filed today should serve as a reminder that discrimination in lending will not be tolerated.”
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Right Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 24 lending matters under the Fair Housing Act, ECOA, and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $660 million in monetary relief for impacted communities and more than 300,000 individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at http://www.justice.gov/crt/publications .
The Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Texas, and the FDIC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov .
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at www.justice.gov/fairhousing .
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 19, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
JONATHAN JAMES HENDERSON, a 28-year-old resident of Great Falls, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. He is currently detained. If convicted of these charges, HENDERSON faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release on each count. Assistant U.S. Attorney Bryan R. Whittaker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Gallup Man Pleads Guilty to Federal Assault Charge Arising from Domestic Violence IncidentRead the Press Release
ALBUQUERQUE –Derek Yabeny, 26, an enrolled member of the Navajo Nation who resides in Gallup, N.M., pled guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Yabeny was arrested on a criminal complaint in Oct. 2012. He subsequently was indicted and charged with assault resulting in serious bodily injury, and abandonment or abuse of a child. According to the criminal complaint, on Oct. 7, 2012, Yabeny assaulted his girlfriend, who is the mother of his two-year old toddler. At the time of the assault, the victim was carrying her infant daughter. The victim sustained two orbital fractures as a result of the assault.
During today’s proceedings, Yabeny pled guilty to Count one of the indictment. In entering his guilty plea, Yabeny admitted assaulting the victim, a Navajo woman, by striking her with his fists and causing her to suffer serious bodily injury. The assault occurred on the grounds of the Shiprock Fair, which are located on the Navajo Indian Reservation on Oct. 7, 2012.
Yabeny has been in federal custody since his arrest on Oct. 26, 2012, and remains detained pending his sentencing hearing, which has not yet been scheduled. Under the terms of the plea agreement, Yabeny will be sentenced to 25 months in prison followed by a supervised release term to be determined by the court.
The case was investigated by the Albuquerque office of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety, and is being prosecuted by Special Assistant U.S. Attorney David M. Adams.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Franklin Troy Caplette Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 19, 2013, before U.S. District Judge Sam E. Haddon, FRANKLIN TROY CAPLETTE, a 28-year-old resident of Havre, pled guilty to possession with intent to distribute methamphetamine. Sentencing has been set for June 10, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
CAPLETTE had been known throughout the Rocky Boy's and Havre communities to be a source of methamphetamine for the past several years. Law enforcement began their investigation into CAPLETTE in 2010.
Several witnesses would have testified that they purchased methamphetamine numerous times from CAPLETTE between 2010 and August 2012.
CAPLETTE faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $2,000,000 fine, and 4 years supervised release.
The investigation was conducted by the Havre Police Department.
Four Sentenced in Connection with El Paso Corruption InvestigationRead the Press Release
In El Paso this morning, former El Paso County Commissioner Larry Medina, El Paso attorney David Escobar, and former Ysleta Independent School District (YISD) Trustees Linda Chavez and Mickey Duntley were sentenced for their roles in a corruption scheme involving healthcare service contracts with AccessHealth, Inc. (ACCESS), announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
United States District Judge Frank Montalvo sentenced: Escobar and Duntley each to 41 months in federal prison followed by three years of supervised release; Medina, 16 months in federal prison followed by three years of supervised release; and, Chavez, five years probation with 30 days in a halfway house. Judge Montalvo also ordered that Escobar pay a $10,000 fine and $42,077.24 restitution; Medina, a $100,000 fine and $56,700.42 restitution; and Chavez, $9,000 restitution.
Last year, Chavez, Duntley and Escobar pleaded guilty to conspiracy to commit mail/wire fraud and deprivation of honest services; Medina, aiding and abetting mail fraud and deprivation of honest services. By pleading guilty, the four defendants admitted to participating in a deliberate and long-term effort to bribe elected officials in order to insure that ACCESS would receive lucrative healthcare service contracts from El Paso County and YISD.
“Today’s sentencing sends a strong message regarding the FBI’s continued aggressive investigations of individuals in the El Paso community involved in public corruption. The FBI, along with our law enforcement partners, will continue our pursuit of individuals and elected officials who actions violate the public’s trust and confidence,” stated FBI Special Agent In Charge Mark Morgan.
These sentencings are a result of a large scale FBI investigation which began in 2004. To date, 32 individuals have been convicted of federal offenses stemming from the investigation. Four are awaiting trial. Assistant United States Attorneys Debra Kanof, Jose Luis Gonzalez, William F. Lewis, Jr., Juanita Fielden, Chris Skillern and Donna Miller are prosecuting these cases on behalf of the Government.
Four Plead Guilty to Selling Homes Without Knowledge of Real Property OwnersRead the Press Release
ALEXANDRIA, Va. – Four individuals – including two settlement agents in Annandale, Va. – have pleaded guilty to conspiring to fraudulently taking over the titles of homes in Washington, D.C., without the real property owners’ knowledge, selling those homes, and keeping the profit.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the pleas were accepted by United States District Judge Gerald Bruce Lee.
According to court records, Jamaul Roberts, 25, College Park, Md., conspired with others to visit the D.C. tax courts to identify properties with overdue property tax bills. They would use sources such as Ancestry.com and the D.C. property tax database to locate vulnerable properties where they could take over the home’s title without the real owners’ knowledge. These homes included those left vacant, passed on to heirs after the owner’s death, or owned by the elderly in nursing homes who did not understand the transactions taking place.
The fraudulent sales were facilitated by two settlement agents, Patricia Mantilla, 35, of Lorton, Va., and Melissa McWilliams, 35, Chantilly, Va., who worked at Ace Title & Escrow in Annandale. The agents knew the home sales were fraudulent and that the owners appearing at settlement were not the rightful owners. They also assisted the conspirators in hiding profits on the property sales from other parties involved in the sale through fictitious invoices to be paid at closing.
The conspirators, including Michael Brown, 41, Hyattsville, Md., recruited straw sellers to sign documents and falsely represent themselves as the owners of the properties. Brown, for example, appointed himself the personal representative of the rightful owner of a property and prepared a fake death certificate for the owner, although the owner was still living. He attempted to sell the property to another member of the conspiracy for $350,000.
During the course of the scheme, numerous properties were fraudulently sold, resulting in more than $1 million in actual and intended losses.
Roberts and Brown pled guilty to conspiring to commit wire fraud and face a maximum penalty of 20 years in prison when they are sentenced on May 10, 2013, and May 3, 2013, respectively.
Mantilla and McWilliams pled guilty to conspiring to commit wire fraud and face a maximum penalty of five years in prison when they are sentenced on April 26, 2013, and June 7, 2013.
This ongoing investigation is being conducted by the FBI’s Washington Field Office. Assistant United States Attorney Chad Golder of the Office’s Financial Fraud and Public Corruption Unit is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Wayne County Official Found Guilty of Falsifying Documents to Conceal Bribery SchemeRead the Press Release
Zayd Allebban, former Wayne County Director of Enterprise Applications, the office that does software application development for Wayne County, was found guilty today by a federal jury in Detroit on charges of falsifying documents with the intent to obstruct justice, U.S. Attorney Barbara L. McQuade announced. The purpose of the falsified documents was to conceal a bribery/extortion scheme by Allebban’s friend and supervisor, Tahir Kazmi, former Wayne County Chief Information Officer.
McQuade was joined in the announcement by Special Agent in Charge Robert D. Foley, III of the Federal Bureau of Investigation (“FBI”).
The eight day trial was conducted before United States District Judge Stephen J. Murphy. The jury deliberated for approximately a day and a half before reaching their verdict.
The evidence presented at trial established that Allebban and Kazmi sought to obstruct justice by seeking to persuade a private contractor to provide false information to the FBI and to a federal grand jury investigating corruption in the Wayne County government. Allebban and Kazmi sought to conceal the fact that the contractor had given Kazmi tens of thousands of dollars in cash and trips to Hawaii, Turkey, and Florida. Allebban was found guilty of falsifying documents that indicated that all payments from the contractor had been repaid by Kazmi, prior to the initiation of the grand jury investigation, with the intent to obstruct the grand jury and FBI investigation. Allebban, as part of the scheme, also delivered $24,000 in cash to the private contractor in an effort to induce the contractor to tell the FBI that the contractor had never given anything to Kazmi.
Allebban faces up to twenty years in prison and a fine of up to $250,000 on each of the two counts of falsifying documents.
A sentencing date will be set by Judge Murphy’s chambers.
Allebban was found not guilty on separate charges of conspiracy to obstruct justice and obstruction of justice by means of false documents.
Tahir Kazmi pleaded guilty on July 26, 2012 to accepting a bribe and is scheduled to be sentenced on February 22, 2013. He faces a maximum sentence of ten years in prison and/or a $250,000 fine.
U.S. Attorney McQuade said, “Public officials who illegally enrich themselves will be detected and brought to justice. Efforts to conceal their crimes will bring additional charges and higher penalties.”
FBI Special Agent in Charge Foley said, "The citizens of Wayne County deserve honest government and leaders committed to serving the needs of taxpayers. This verdict should serve as a reminder that the FBI-led Detroit Area Public Corruption Task Force will remain vigilant and dedicated to stopping these illegal acts."The case was investigated by Special Agents of the FBI and Detroit Area Public Corruption Task Force. It is being prosecuted by Assistant United States Attorney Sheldon Light.
Former Topeka Lawyer Sentenced for Stealing from Clients' Trust FundsRead the Press Release
TOPEKA, KAN. – A former Topeka lawyer has been sentenced to five years in federal prison for stealing money from clients’ trust funds, U.S. Attorney Barry Grissom said today. He was ordered to pay restitution of $537,680.
Robert M. Telthorst, 52, Topeka, Kan., pleaded guilty to one count of wire fraud and one count of money laundering. In his plea, he admitted that from November 2005 to August 2011 he executed what was in essence a Ponzi scheme in which he took clients' money and used it both to benefit himself and to cover up the fact he was taking money from other clients' trust accounts.
The list of clients he allegedly defrauded includes the following:
-- The daughters of a man identified in court documents as Otto K. After the man's death, Telthorst was appointed to administer $463,344 for the man's two daughters. The man wanted the first daughter, identified as Sheri T., to receive a lump sum. Money for the second daughter, identified as Marlene O., was to be invested, with monthly payments to be made to her. Before providing the lump sum to Sheri T., Telthorst took approximately $22,000 for his own benefit. In the trust for Marlene O, the balance dropped from more than $208,500 to less than $150 after Telthorst removed most of the funds for his own benefit.
-- The granddaughters of a client, identified as Mia, Olivia and Lillian. Telthorst set up three educational gift trusts of $10,000 each. He depleted all three trusts, leaving them each with balances of less than $350.
-- Arnold and Bertha J., who established a charitable trust of $80,000 for the KU School of Business. The balance in the account dropped to less than $1,750 after Telthorst diverted funds to his own benefit.Grissom commended the FBI, the Shawnee County District Attorney's Office and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Former South Plainfield, N.J., Police Captain Charged with Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A former South Plainfield, N.J., police captain is charged with the sexual exploitation of a minor female after enticing the girl to live-stream sexually explicit acts via the Internet, U.S. Attorney Paul J. Fishman announced.
Michael Grennier, 50, of South Plainfield, N.J., is charged by Complaint with one count of sexual exploitation of a child. Grennier appeared today before U.S. Magistrate Judge Tonianne J. Bongiovanni and was detained.
According to the Complaint:
Special agents of the FBI executed a consent search of the New Jersey home of “Jane Doe,” a minor female, on Feb. 15, 2013. Jane Doe stated in an interview that day that for several years Grennier paid her for photographs and video of herself naked and partially clothed. Grennier had also paid Jane Doe and another minor female, “Mary Roe,” to engage in sexually explicit conduct in hotel rooms, which Grennier videotaped. Grennier paid Jane Doe to perform sexually explicit acts while Grennier watched via webcam from another computer. The last time Grennier enticed Jane Doe to do this was at approximately 10:30 p.m. on February 14, 2013, according to Jane Doe. This was confirmed by text-messages between Grennier and Jane Doe on February 14, 2013, at approximately that time. As payment for those acts, Grennier was going to purchase approximately $175 worth of merchandise for Jane Doe.
The charge of sexual exploitation of children carries a mandatory minimum penalty of
15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.U.S. Attorney Fishman credited the FBI Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to the federal charges. Fishman also thanked the South Plainfield Borough Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Bruce J. Kaplan, for their assistance with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to
combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by
the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and
Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe
Childhood marshals federal, state and local resources to better locate, apprehend and prosecute
individuals who exploit children as well as to identify and rescue victims. For more information
about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.The charge and allegations contained in the Complaint are merely accusations, and the
defendant is presumed innocent unless and until proven guilty.13-085
Grennier Complaint
Former South Plainfield, N.J., Police Captain Charged with Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A former South Plainfield, N.J., police captain is charged with the sexual exploitation of a minor female after enticing the girl to live-stream sexually explicit acts via the Internet, U.S. Attorney Paul J. Fishman announced.
Michael Grennier, 50, of South Plainfield, N.J., is charged by Complaint with one count of sexual exploitation of a child. Grennier appeared today before U.S. Magistrate Judge Tonianne J. Bongiovanni and was detained.
According to the Complaint:
Special agents of the FBI executed a consent search of the New Jersey home of “Jane Doe,” a minor female, on Feb. 15, 2013. Jane Doe stated in an interview that day that for several years Grennier paid her for photographs and video of herself naked and partially clothed. Grennier had also paid Jane Doe and another minor female, “Mary Roe,” to engage in sexually explicit conduct in hotel rooms, which Grennier videotaped. Grennier paid Jane Doe to perform sexually explicit acts while Grennier watched via webcam from another computer. The last time Grennier enticed Jane Doe to do this was at approximately 10:30 p.m. on February 14, 2013, according to Jane Doe. This was confirmed by text-messages between Grennier and Jane Doe on February 14, 2013, at approximately that time. As payment for those acts, Grennier was going to purchase approximately $175 worth of merchandise for Jane Doe.
The charge of sexual exploitation of children carries a mandatory minimum penalty of
15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.U.S. Attorney Fishman credited the FBI Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to the federal charges. Fishman also thanked the South Plainfield Borough Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Bruce J. Kaplan, for their assistance with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to
combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by
the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and
Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe
Childhood marshals federal, state and local resources to better locate, apprehend and prosecute
individuals who exploit children as well as to identify and rescue victims. For more information
about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.The charge and allegations contained in the Complaint are merely accusations, and the
defendant is presumed innocent unless and until proven guilty.13-085
Grennier Complaint