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8 April 2013
Founder and President of Labor Union Sentenced to 76 Months<br /> for Stealing from Union’s Treasury and Pension FundRead the Press Release
The founder and president of the National Association of Special Police and Security Officers (NASPSO) was sentenced to 76 months in prison today for stealing union treasury and pension funds, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Caleb Gray-Burriss, 62, of Washington, D.C., was convicted on Dec. 4, 2012, of six counts of mail fraud, seven counts of theft from a labor organization, one count each of obstruction of justice and criminal contempt, and three counts of union recordkeeping offenses. Gray-Burriss was sentenced by U.S. District Judge Richard W. Roberts of the District of Columbia and ordered to pay $252,000 in restitution and to perform 100 hours of community service. Because of these convictions Gray-Burris is also now disqualified by federal law from serving as an officer or being employed by a labor union or employee benefit plan until 13 years following his release from prison.
NASPSO represents private security guards assigned to protect federal buildings in the metro Washington area. According to the evidence at trial, from approximately June 2004 through February 2011, Gray-Burriss wrote numerous checks to himself or to other third parties from the NASPSO pension plan checking account. Gray-Burriss spent more than $100,000 of the pension plan funds in this way, while falsely maintaining it was an operational fund that he was properly administering and that was providing benefits to the beneficiaries. The evidence further showed that Gray-Burriss committed criminal contempt of a court order addressing his prior misappropriation of pension and health plan funds after Gray-Burriss resumed his scheme in 2009 to defraud employers and NASPSO members of pension funds.
In addition, the evidence presented at trial showed that Gray-Burriss, while an officer and employee of NASPSO, stole over $150,000 in NASPSO funds consisting of cash withdrawals to himself, unauthorized salary increases and bonuses to himself and another person, fraudulently drawn checks to himself – purportedly for employment taxes on behalf of NASPSO – and unlawfully used NASPSO funds to pay his personal fines in a civil lawsuit.
The jury also found that Gray-Burriss committed obstruction of justice by destroying or concealing NASPSO financial records during a grand jury investigation; failing to file required annual reports on behalf of NASPSO, falsifying those reports, and failing to maintain properly the records of NASPSO.
The investigation was conducted by agents and investigators of the U.S. Department of Labor. Trial Attorney Vincent J. Falvo of the Criminal Division’s Organized Crime and Gang Section and Trial Attorney Tracee Plowell, of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Los Angeles Man Sentenced to 17 Years in Prison for Role in Plot to Attack Seattle Military Processing CenterRead the Press Release
SEATTLE – A former Los Angeles resident was sentenced today to 17 years in prison in connection with the June 2011 plot to attack a military installation in Seattle, U.S. Attorney Jenny A. Durkan announced. Walli Mujahidh, 34, pleaded guilty in December 2011 to conspiracy to murder officers and agents of the United States and conspiracy to use weapons of mass destruction and being a felon in possession of a firearm. Mujahidh plotted with lead defendant Abu Khalid Abdul-Latif of Seattle in a plan to use grenades and machine guns to attack recruits at the Military Entrance Processing Center in a federal office complex in south Seattle. U.S. District Judge James L. Robart imposed 10 years of supervised release following the prison term.
“This defendant was a cold hearted, enthusiastic partner in this murderous scheme. He talked at length in recorded conversations about the innocent people he planned to gun down,” said U.S. Attorney Jenny A. Durkan. “Even after his arrest he boldly tried to justify his plot. I am thankful this plot was disrupted, and again thank the FBI and Seattle Police Department.”
The other defendant in the case, Abu Khalid Abdul-Latif, of Seattle, was sentenced to 18 years in prison last month.
Law enforcement first became aware of the plot when a citizen alerted them that he/she had been approached by Abdul-Latif about participating in the attack and supplying firearms to the conspirators. The person then agreed to work with law enforcement, which began monitoring Abdul-Latif and Mujahidh. Beginning in early June 2011, the conspirators were captured on audio and videotape discussing a violent assault on the Military Entrance Processing Station (MEPS). The MEPS is where each branch of the military screens and processes enlistees. In addition to housing many civilian and military employees, the building houses a federal daycare center.
In his plea agreement, Mujahidh admitted that he agreed to carry out the planned attack and that he traveled to Seattle from Los Angeles to participate in the attack. Mujahidh arrived in Seattle on June 21, 2011. On that same day, during a meeting between Abdul-Latif, Mujahidh, and a person who was working with law enforcement, Abdul-Latif outlined the plan of attacking the MEPS with machine guns and grenades, and took steps to purchase weapons and further the plot. In accordance with the defendants’ plan, the next day the person working with police brought three machine guns to a meeting with Abdul-Latif and Mujahidh. The men were arrested after they took possession of the weapons, which had been rendered inoperable by law enforcement.
In their sentencing memo, prosecutors describe multiple times where Mujahidh described his enthusiasm for the attack and his terrorist motivations. “During the planning sessions for the attack, Mujahidh made clear that he was eager to kill his intended victims, and as many as possible. He made numerous statements along these lines while he and Abdul-Latif planned out the play-by-play movements of the attackers using the map of the Federal Center South building,” prosecutors wrote in their sentencing memo.
The case was prosecuted by the U.S. Attorney’s Office for the Western District of Washington, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. The investigation is being conducted by the FBI’s Joint Terrorism Task Force, which has investigators from federal, state and local law enforcement, and the Seattle Police Department. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) contributed significant expertise to this investigation.
Former Garland High School Teacher Sentenced to Eight Years in Federal Prison for Possessing Child PornographyRead the Press Release
Willis Bassham Videotaped Himself Having Sexual Relations With a Student at the School
DALLAS — A former teacher at Garland High School, Willis Bassham, 40, formerly of McKinney, Texas, was sentenced Friday afternoon by U.S. District Judge Barbara M. G. Lynn to eight years in federal prison and a lifetime of supervised release following his guilty plea in December 2012 to an information charging one count of possession of child pornography. Bassham was remanded into federal custody after he entered that plea. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Basham admitted that he engaged in sexual acts and sexual conduct with three female minors who were students at the school where he was employed. He also admitted that he produced images and videos of two of the minors engaged in sexually explicit conduct. Bassham had videos on his cell phone of himself and one of the minors, then age 17, engaging in sexually explicit conduct. He also received pornographic images of one of the minors by copying the images from the minor’s cell phone memory card to his computer.
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 U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department. Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.
Former Federal Fugitive Pleads Guilty in California to Massive Fraud and Identity Theft Scheme in Connection with Nationwide Foreclosure ScamRead the Press Release
A former Los Angeles resident, who fled to Canada and was a federal fugitive for 12 years, pleaded guilty today to aggravated identity theft and bankruptcy fraud in connection with leading a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Central District of California André Birotte Jr., U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Glen Alan Ward, 48, pleaded guilty in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 to 61 months in custody for engaging in similar conduct.On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
“Glen Alan Ward spent years preying on distressed homeowners and stealing the identities of bankruptcy debtors, all to pad his own pockets,” said Acting Assistant Attorney General Raman. “Now he faces years in prison for his crimes. This successful prosecution illustrates our commitment to tirelessly pursuing fraudsters and ensuring that sophisticated schemes that prey on vulnerable homeowners will not go unpunished.”
“Mr. Ward fled the United States years ago in an attempt to keep his fraudulent foreclosure scheme running,” said United States Attorney André Birotte Jr. “Today's conviction should serve as a reminder that criminals can run, but they can't hide. The reach of the federal law is long and scammers like Ward, who try to take advantage of distressed homeowners, will be tracked down and prosecuted regardless of their efforts to do otherwise.”
According to the plea agreement filed today before U.S. District Judge Dale S. Fischer in the Central District of California, Ward admitted to engaging in a fraud scheme that took place from 1997 to April 5, 2012, the day he was arrested by Canadian authorities. According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting more than $1.2 million from his clients who paid for his illegal foreclosure-delay services, all of which he has agreed to forfeit.
“Today's announcement is the result of a collaborative international effort and the FBI is grateful to our partners with the Royal Canadian Mounted Police and the Waterloo Regional Police for their assistance in the fugitive investigation and apprehension,” said Bill Lewis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Mr. Ward's long-term scheme is an extreme example of calculated fraud based on greed, and I'm proud of the persistence shown by our federal partners at SIGTARP, the Office of United States Trustees, and the United States Attorney's Office, in pursuing this case to its successful end."
“We are committed to pursuing those who defraud the most vulnerable victims of the real estate market,” said FBI San Francisco Special Agent in Charge David J. Johnson. “This is an excellent example of how closely we work with our law enforcement partners here and abroad to ensure that criminals are brought to justice.”
“With today’s plea, justice is served for the victims of Ward’s long-running bankruptcy fraud scheme,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “While on the run for 12 years and having fled to Canada to avoid answering for earlier charges of bankruptcy fraud, Ward continued to victimize hundreds of struggling homeowners, steal the identities of unsuspecting U.S. taxpayers involved in bankruptcy proceedings, and exploit civil protections under bankruptcy law to defraud lenders, including numerous TARP recipients. SIGTARP and our law enforcement partners will continue to ensure that those responsible for fraud related to TARP are brought to justice and answer for their crimes.”
Each count of bankruptcy fraud carries a maximum sentence of five years in prison. Aggravated identity theft carries a two-year mandatory sentence, to run consecutive to any other sentence. Ward will be sentenced on July 29, 2013 before United States District Judge Dale S. Fischer, and will continue to be held without bond.
This case is being prosecuted by Trial Attorney Paul Rosen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas. The investigation was conducted by SIGTARP and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Bank Teller Pleads Guilty to Aggravated Identity TheftRead the Press Release
Jackson, Miss. -- Kelly Taplin, 31, of Byram, Mississippi, pled guilty in federal court today to aggravated identity theft, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced. She will be sentenced by U.S. District Judge Henry T. Wingate on July 11, 2013, at 9:30 a.m. and faces a mandatory penalty of two years in prison and a maximum possible fine of $250,000.
Taplin admitted that, while working as a teller at Trustmark National Bank in Byram, she used the name, social security number, and date of birth of a Trustmark customer to obtain a $2,550 loan in that customer’s name without the customer’s knowledge or consent. She then used the loan proceeds for her personal benefit.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Help us combat the proliferation of sexual exploitation crimes against children.
Five Members of Sandusky Family IndictedRead the Press Release
Five members of a Sandusky family were charged in a three-count indictment related to skimming more than $1.8 million in cash from three restaurants the family operates in the Sandusky area and depositing the cash at numerous financial institutions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Haralambos Gonos, age 52; Andreas Gonos, age 28; Chris Gonos, age 31; Kryiakos Gonos, age 30, and Sofia Skoura, age 52.
In count one – conspiracy to structure financial transactions to evade filing currency transaction reports -- Haralambos Gonos, Andreas Gonos, Chris Gonos, and Kryiakos Gonos are accused of taking large amounts of cash from Dianna’s Deli, Dianna’s and The Depot and making multiple deposits of cash just under the $10,000 threshold, for the purpose of evading the filing of a Currency Transaction Report. The conduct took place between 2007 and 2009, according to the indictment.
Count two charges that Haralambos Gonos and an unindicted co-conspirator conspired to structure financial transactions to evade filing Form 8300 between March 2010 and November 2011. Specifically, Gonos purchased a 2007 Mercedes and 2005 Porsche Cayenne motor vehicles by using combinations of cash and multiple cashier’s checks, according to the indictment.
Count three charges Haralambos Gonos and Sofia Skoura conspiring to engage in bulk cash smuggling in an attempt to transport currency to a place outside the United States on or about January 31, 2013. Specifically, they are accused of attempting to transport more than $14,700 to Greece, where they maintain a residence, according to the indictment.
"These defendants are accused of avoiding bank regulations," Dettelbach said.
“It is IRS-CI’s responsibility when investigating financial institution fraud to focus on the flow of the money which ultimately leads us to the beneficiaries of this illegal activity,” said Denise Rocawich, Acting Special Agent in Charge, IRS Criminal Investigation.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the Internal Revenue Service, Toledo, Ohio the Department of Homeland Security, Dearborn, Michigan, , ICE Homeland Security Investigations, Detroit, Michigan, and the U.S. Customs and Border Protection, Detroit, Michigan. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fargo Man Sentenced on Child Pornography ChargesRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 8, 2013, Brandon Lee Stockburger of Fargo, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on three counts of possession of materials involving the sexual exploitation of minors and one count of receipt of materials involving the sexual exploitation of minors. Stockburger, 26, pleaded guilty to the charges on Jan. 14, 2013.
Judge Erickson sentenced Stockburger to nine and one-half years in prison to be followed by a lifetime of supervised release. Stockburger was ordered register as a sex offender and to pay a $400 special assessment to the Crime Victim's Fund.
The case came to the attention of law enforcement after a North Dakota Bureau of Criminal Investigation agent located child pornography files which had been offered to be shared by an internet protocol (IP) address originating in Fargo, N.D. The IP address was assigned to Stockburger’s residence which was eventually searched by law enforcement pursuant to a state search warrant.
During the search, state and federal agents recovered numerous electronic media containing approximately 156 videos and 2,328 images depicting the graphic sexual abuse of children, including images depicting prepubescent children.The incidents occurred from 2007 through April 2012, in the District of North Dakota.
The case was investigated by the North Dakota Bureau of Criminal Investigation, Fargo Police Department, and Homeland Security Investigations.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.Fairfax County Man Pleads Guilty to Producing Child Pornography and Attempted Enticement of A MinorRead the Press Release
ALEXANDRIA, Va. – Douglas Lee Payne Jr., 31, of Fairfax County, Va., pleaded guilty today to three child exploitation related charges.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Lt. Colonel James A. Morris, Acting Fairfax County Chief of Police made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.
Payne pleaded guilty to two counts of production of child pornography, which each carries a mandatory minimum penalty of 25 years and a maximum penalty of 50 years in prison. This sentence has been enhanced due to a prior conviction of using a computer to solicit a minor in Fairfax County. Payne also pleaded guilty to one count of attempted enticement of a minor, which carries a mandatory minimum of 10 years and a maximum of life in prison. Sentencing is scheduled for July 5, 2013.
According to court documents, during the investigation of a Fairfax County probation violation in December 2011, electronic communications between Payne and a minor victim in Indiana and another minor victim in Pennsylvania were discovered. In these text messages and online chats, Payne requested that the minor victims send him nude images of themselves. Payne also instructed the minor females on how to pose in various sexually revealing positions. Payne possessed at least one child pornography image of each minor victim which they had sent in response to his request. Payne and the minor victim located in Indiana also had specific conversations about Payne going to Indiana and having sex with her there. On December 28, 2011, while Payne was on his way to Indiana, he was instructed to return home for a meeting with his Fairfax County probation officer.
This case was investigated by the Fairfax County Police Department and the FBI Washington Field Office’s Child Exploitation Task Force. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.Eight People Indicted for Drug ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that eight individuals have been indicted by a federal grand jury for Conspiracy to Distribute Controlled Substances in South Dakota between 1993 and 2013. The individuals charged include the following:
• Marlena Jo Pond, age 27, Pine Ridge
• Harry John Steele, age 26, Pine Ridge
• Karen Faith Boltz, age 48, Wounded Knee
• Edward Joseph White Dress, Jr., age 45, Wounded Knee
•Brian O. Little Bear, age 26, Pine Ridge
• Tonya Lynn Provost, age 38, Pine Ridge
• James Albert Colhoff, age 43, Pine Ridge
• Gabriel Carl White Plume, age 28, Manderson
All defendants were indicted on March 19, 2013 for conspiracy to distribute cocaine and marihuana. The defendants listed above appeared before U.S. Magistrate Judge Veronica L. Duffy, on March 28, 2013 and pled not guilty to the indictment. The penalty upon conviction is not less than 5 years of imprisonment and up to 40 years of imprisonment and/or $5,000,000 fine. The charges are merely accusations and each individual is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force which is comprised of the following agencies: Federal Bureau of Investigation, Division of Criminal Investigation, Bureau of Indian Affairs Office of Justice Services, Oglala Sioux Tribe Department of Public Safety, Fall River County Sheriff’s Office, and Fall River State’s Attorney’s Office. Homeland Security Investigations also assisted with the investigation. Special Assistant U.S. Attorney Laura Shattuck is prosecuting the case.
Boltz and White Dress, Jr. were released on bond pending trial. Pond, Steele, Provost, Little Bear, Colhoff, and White Plume were remanded to the custody of the U.S. Marshal. A trial date has not been set.
Ebay Fraudster Sentenced for Fencing Stolen PropertyRead the Press Release
Hill Made Millions Reselling Stolen Merchandise Acquired From Identity Thieves
ATLANTA – Robert A. Hill was sentenced today to serve over seven years in federal prison for selling over $9 million in stolen property from his eBay store and shipping the goods across state lines to his customers.
“Robert Hill fueled his Internet-based fraud with the help of a group of identity thieves who gave him a steady supply of merchandise,” said United States Attorney Sally Quillian Yates. “His use of the Internet expanded his reach and magnified the crime, ending in millions of dollars of damage to both individual victims and retailers. Today’s prison sentence does justice for the widespread damage he caused.”
“The defendant’s criminal actions reflect how advancements in digital technology can also have a negative effect on our communities. The Secret Service, in conjunction with our law enforcement partners, will continue to actively investigate and arrest those that commit crimes that prey on unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“This case demonstrates the ever-increasing need for law abiding citizens to remain vigilant about their personal identifying information and credit profiles,” said Cherokee County Sheriff Roger Garrison. “The ongoing increase of identity related crimes is concerning and troubling both to the economy and the criminal justice system. The Cherokee Sheriff’s Office is proud to see justice on behalf of the many victims in this case.”
According to United States Attorney Yates, the charges and other information presented in court: For over ten years through December 2011, Hill operated a scheme out of Roswell, Ga. that involved shipping stolen merchandise across state lines. Hill had an eBay store called atlantis_discount_ warehouse_llc, where he sold the merchandise online to buyers from across the United States. To get merchandise for sale, Hill worked with a group of identity thieves who used fraudulent credit cards opened in the names of numerous identity theft victims to buy expensive items, such as iPads, iPods, iPhones, computers, Wii game systems, cameras, golf clubs, and tools, from large retail stores. These co-conspirators used fake drivers’ licenses to apply for new credit cards and take over existing accounts at the stores. They targeted accounts at Best Buy, Sam’s Club, Home Depot, Lowe’s, Walmart, Target, and Dick’s Sporting Goods.
Hill then bought the items from his co-conspirators for about 60% of their retail value, knowing that the merchandise had been stolen and obtained by fraud. He sometimes gave the thieves lists of items that he needed for his eBay store. Hill stored the merchandise at a storage facility in Alpharetta, Ga. He sold it at just under retail value to buyers from around the United States. As part of the scheme, he shipped items to buyers in numerous states, including California, New York, Florida, New Hampshire, Indiana, Maryland, Colorado, North Carolina, Michigan, Illinois, Washington, Virginia, Utah, and Maine.
During the course of the scheme, Hill sold millions of dollars’ worth of stolen merchandise through his eBay store. Search warrants executed at his residence and storage facility uncovered over $44,000 in cash and a large quantity of high-value electronic equipment in boxes ready for sale.
Hill, 51, now of Swainsboro, Ga., was sentenced today by United States District Judge Richard W. Story to serve seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $740,446.58. In a parallel civil action, Judge Amy Totenberg also ordered the forfeiture of over $44,000 in cash, two bank accounts with over $47,000, a 1999 Lexus RS 300, and thousands of dollars’ worth of electronics equipment and jewelry. Hill was convicted of these charges on December 19, 2012, after pleading guilty.
This case was investigated by Special Agents of the United States Secret Service and Investigators with the Cherokee County Sheriff’s Office.
Assistant United States Attorneys Stephen H. McClain and Jeffrey Viscomi prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Easthampton Man Convicted of Drug ConspiracyRead the Press Release
BOSTON – An Easthampton man was convicted today in U.S. District Court in Springfield of distributing more than 500 grams of cocaine.
Julio Vidal Hermida, 26, formerly of Easthampton, pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiring to possess with intent to distribute and distribution of more than 500 grams of cocaine.
Between July 31, 2010, and May 2, 2011, Hermida and others participated in a criminal conspiracy that transported kilograms of cocaine from Texas to western Massachusetts.
Sentencing is scheduled for July 2, 2013. The statutory maximum penalty is up to 40 years in prison, followed by four years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration Boston Field Division, and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
Doctor Convicted in New York Medicare Fraud SchemeRead the Press Release
After an eight-week trial, a jury in Brooklyn, N.Y. today convicted Gustave Drivas, M.D., for his role at a clinic that engaged in a $77 million Medicare fraud scheme, announced the Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of New York Loretta Lynch, Assistant Director-in-Charge Janice K. Fedarcyk of the FBI’s New York field office and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
Dr. Gustave Drivas, 50, of Staten Island, N.Y., was convicted today of health care fraud conspiracy and health care fraud. He was acquitted of kickback conspiracy.
The trial evidence showed that Drivas, a medical doctor licensed in the state of New York, worked for a clinic in Brooklyn that operated under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC (the Bay Medical clinic). Owners, operators and employees of the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary and never provided. The clinic billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests. The evidence at trial demonstrated that Drivas was a “no show” doctor, yet his Medicare billing number was used to bill more than $20 million to the Medicare program, of which more than $12 million was paid. Drivas signed numerous clinic applications to Medicare, was a signatory on two clinic bank accounts that received the ill-gotten Medicare money and was listed on bank paperwork as the president of Bay Medical.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, identified in the complaint as the “Kickback Room,” in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. The Kickback Room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
To generate the large amounts of cash needed to pay the patients, the conspirators used a network of external money launderers. The owners/operators of the clinic wrote clinic checks to numerous shell companies that were controlled by money launderers. These checks did not represent payment for any legitimate service at or for the Bay Medical clinics, but rather were written to launder the Bay Medical clinics’ fraudulently obtained Medicare proceeds. Two of the external money launderers, Anatoly Kraiter and Larisa Shelabadova, pleaded guilty prior to trial. Irina Shelikhova and her son Maksim Shelikhov, who directed the money laundering operation from inside the clinic, also pleaded guilty prior to trial to conspiracy to commit money laundering.
At sentencing before U.S. District Judge Nina Gershon of the Eastern District of New York, scheduled for July 9, 2013, Drivas faces a maximum penalty of 20 years in prison. Drivas faces mandatory restitution to be paid jointly and severally with his co-defendants of up to $50 million, and a fine of up to $100 million.
The charges were announced by the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Assistant Director-in-Charge Janice K. Fedarcyk of the FBI’s New York field office; and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
The case is being prosecuted by Assistant U.S. Attorneys William C. Campos , Shannon C. Jones and Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS.
In total, 16 individuals were charged in the Bay Medical scheme, including two doctors, nine clinic owners/operators/employees and five external money launderers. Prior to trial, twelve defendants pleaded guilty. At trial, Alexander Zaretser, 32, of Brooklyn, New York was acquitted of money laundering conspiracy and two substantive counts of money laundering; and Vladimir Kornev, 53, and Yelena Galper, 40, both of Brooklyn, New York were acquitted of money laundering conspiracy.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
District Court Enters Permanent Injunction Against Houston-Based Producer of Egg Rolls and Other FoodsRead the Press Release
U.S. District Court Judge Melinda Harmon entered an order of permanent injunction against Chung’s Products LP, a Houston-based producer of egg rolls and other foods, Charlie A. Kujawa, Chung’s president of operations, and Gregory S. Birdsell, Chung’s former director of quality assurance, the Justice Department announced today.
The permanent injunction was issued by the district court along with the court’s opinion and order granting the United States’ motion for summary judgment against the defendants for violating the Federal Food, Drug and Cosmetic Act. Chung’s products are sold in grocery stores and large retail stores nationwide.
As set forth in the complaint filed by the United States on March 8, 2010, the Food and Drug Administration (FDA) conducted inspections from 2005 through 2009 at Chung’s facility located in Houston. According to the complaint, the defendants, among other things, violated the Food, Drug and Cosmetic Act by preparing, packing and holding shrimp egg rolls under insanitary conditions, whereby they may have become contaminated with filth and rendered injurious to health.
In a decision entered on April 4, 2013, Judge Harmon found that the defendants had a long history of violating the Food, Drug and Cosmetic Act, including producing food under insanitary conditions and failing to control for the risks of Clostridium Botulinum, “the most potent toxin known to man,” in their seafood products and a potentially deadly strain of listeria in their manufacturing environment. The court also noted defendants’ numerous refusals to cooperate with the FDA. Based on the evidence before it, the Court concluded there is a reasonable possibility that Chung’s food products were both contaminated with filth and unsafe and injurious to health. The court further found that the defendants’ challenges to FDA testing methods were “frivolous” and “demonstrated [a] wanton disregard of a potential food safety hazard in [Chung’s] products.”
“We will continue to take strong action against those who would risk the safety of the American food supply by manufacturing and storing products under insanitary conditions or flouting important food safety rules,” said Acting Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division. “The Court’s ruling ensures that these defendants will take appropriate steps to ensure that consumers who purchase their foods will receive products that are prepared, packaged and held under sanitary conditions as required by law.”
Pursuant to the injunction issued by the Court, defendants are enjoined from receiving, processing, preparing, packing, holding and distributing food from Chung’s Houston-based facility or any other facility until defendants take the remedial action required by the Court’s order.
Principal Deputy Assistant Attorney General Delery thanked the FDA for referring this matter to the Department of Justice. David Sullivan, Trial Attorney at the Consumer Protection Branch of the Justice Department, in conjunction with Assistant U.S. Attorney Jose Vela Jr. in the Southern District of Texas and Sonia Nath, Associate Chief Counsel for Enforcement at FDA’s Office of the Chief Counsel, brought this case on behalf of the United States.
Update, April 10, 2013
On April 9, 2013, U.S. District Court Judge Melinda Harmon modified a paragraph of the injunction issued on April 4, 2013. The modification enjoins defendants from receiving, processing, preparing, packing, holding and distributing any fish or fishery products from Chung’s Houston-based facility or any other facility until defendants take the remedial action required by the court’s order.
Defendant Convicted of Heroin Trafficking & Illegal Re Entry Sentenced to 17.5 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Jose Lizarraras-Chacon, 38, of Nayarit, Mexico, was sentenced today by U.S. District Judge Marco A. Hernandez to 210 months (17.5 years) in prison for heroin-trafficking and illegal reentry. During the fall of 2011, the Portland Police Bureau received information regarding a husband and wife team selling large quantities of heroin. Defendant and his wife, Maria Gonzalez-Torres. (co-defendant) fielded phone call orders from customers for heroin, and then would make deliveries throughout the Portland metro area, often accompanied by their children. Earlier in 2011, the St. Helens Police Department investigated this same husband-wife team, and that evidence was charged in the federal indictment as part of the yearlong conspiracy to distribute heroin.
On November 29, 2011, officers with the Portland Police Bureau’s Drugs and Vice Division (DVD) arranged for a controlled purchase of heroin from this duo. Co-defendant Gonzalez-Torres answered the call, made the deal, and indicated they would be on their way to deliver shortly. Surveillance officers observed defendant leave their apartment carrying a baby in a car seat and enter one of the family vehicles. Gonzalez-Torres followed her husband into their vehicle, along with two other children (ages 7 and 4). Officers stopped the car as it was traveling towards the agreed-upon delivery location.
During the traffic stop, a female officer conducted a pat-down search of Gonzalez-Torres and located approximately five ounces of heroin concealed in her bra. There was also over $300 in the diaper bag. Officers conducted a search of the family’s apartment on East Burnside at 179th, and seized over $84,000 in U.S. currency stashed all over the residence. Agents also seized approximately 470 grams of heroin hidden within a diaper genie and a .45 caliber semi-automatic firearm in a hall closet. Gonzalez-Torres admitted that she had been involved in her husband’s heroin business and had not held legitimate employment for four years. She explained that she received $1100 per month in public benefits. When asked about all the cash in her apartment, she said that she and her husband were saving money to build a home in Mexico.
In 2010, defendant was convicted of unlawful delivery of heroin in Clackamas County, after which he was deported to Mexico. He returned to the United States illegally, and continued to distribute heroin. This case was investigated by the Portland Police Bureau, the St. Helen’s Police Department, the DEA, and the U.S. Department of Agriculture Office of Inspector General. The case was prosecuted by Assistant U. S. Attorney Leah K. Bolstad.
Convicted Drug Dealer Sentenced to 21 Months in Prison for Violating Supervised ReleaseRead the Press Release
PHILADELPHIA - Edward Montgomery, also known as “One-Eye Eddie,” 35, of Philadelphia, Pennsylvania, was sentenced today by the Honorable Gene E.K. Pratter to 21 months in prison followed by 39 months of supervised release for violating the terms of a previously imposed term of supervised release.
On July 20, 2009, Montgomery was sentenced to 60 months in prison followed by 4 years of supervised release by the Honorable Christopher C. Connor of the United States District Court for the Middle District of Pennsylvania for trafficking crack cocaine in Lewiston, Pennsylvania. Montgomery was released from federal prison on August 3, 2012.
On August 25, 2012, only three weeks after being released from prison, Montgomery fired into a group of young men sitting on the steps of a vacant house in the 1200 block of North Hollywood Street. Montgomery hit two people in what was apparently a drug-related shooting. One of the victims had a drug trafficking case pending in state court. In addition to being charged by the state for this offense, Montgomery’s federal probation officer filed a notice that this conduct violated the terms of Montgomery’s supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Robert J. Livermore.
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PATTY HARTMAN, Media Contact, 215-861-8525Connecticut Resident Sentenced in Manhattan Federal Court to Five Years in Prison for Manufacturing and Distributing Explosives and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that NICOHLAS LAHINES was sentenced today in Manhattan federal court to five years in prison for manufacturing and dealing in explosives and firearms without licenses, conspiring to distribute methamphetamine, and immigration fraud. LAHINES pled guilty in February 2012, and was sentenced today by U.S. District Judge Kimba M. Wood.
Manhattan U.S. Attorney Preet Bharara stated: “It is bone-chilling to contemplate the damage that the improvised explosive devices Nicholas Lahines manufactured in his Connecticut home could have caused had he not been caught by law enforcement. These devices had the capacity to maim and kill many innocent people, and now he will serve a significant sentence for his crimes.”
According to the Complaint, the Indictment, the Information to which LAHINES pled guilty, the plea agreement, and statements made in Court:
During the spring of 2011, law enforcement officers came to suspect that an individual, later identified as LAHINES, was involved in the distribution of explosive devices, and they directed a confidential source (“CS”) to meet with him. After selling four cylindrical explosive devices to the CS for $3,200, LAHINES was arrested in the Bronx on May 19, 2011. During the sale of the devices, LAHINES discussed with the CS the components that he had used to make them – including ball bearings – and told the CS that he had added glass and metal to similar explosive devices in the past. LAHINES was then placed under arrest, and bomb technicians immediately took custody of the devices, which were determined to be live explosives.
Pursuant to a search warrant executed at LAHINES’s Connecticut residence, agents recovered tubes, cord-like material, and caps similar in appearance to those used to construct the devices that LAHINES sold to the CS. Agents also found a small jar containing powdery residue that detonated in the course of being examined, injuring a law enforcement officer.
In addition to his criminal activity relating to the manufacture and distribution of explosives, LAHINES participated in a conspiracy to distribute methamphetamine. In the course of their search, law enforcement officers found various items that are used in the illegal manufacture and distribution of methamphetamine, including hundreds of ephedrine tablets, in the trunk of his car.
LAHINES had also engaged in immigration fraud. Specifically, he filed false documents and other materials with the United States Department of Homeland Security, U.S. Citizenship and Immigration Service concerning his marriage.
In addition to his prison term, LAHINES, 38, of Bridgeport, Connecticut, was sentenced to four years of supervised release and ordered to forfeit $3,200. He was also ordered to pay a $400 special assessment fee.
Mr. Bharara praised the investigative efforts of the FBI’s Joint Terrorism Task Force (“JTTF”) in New York and Connecticut, especially those JTTF members from the FBI New York Field Office and the New York City Police Department, the Bronx District Attorney’s Office, the Connecticut State Police Department, the FBI New Haven Field Office, the trial attorneys with the U.S. Department of Justice’s National Security Division, and the U.S. Attorney's Office for the District of Connecticut. He also thanked Kimberly Mertz, the FBI Special Agent-in-Charge of the New Haven Field Office.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys John P. Cronan and Sean S. Buckley are in charge of the prosecution.
Company Owner Pleads Guilty to Failing to Pay TaxesRead the Press Release
Baltimore, Maryland – Jonas Purisch, age 39, of Perry Hall, Maryland pleaded guilty today to subscribing to a false tax return and failing to file a tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, Purisch owned and operated JP Staffing, Inc., a company based in Baltimore which provided temporary factory workers. JP Staffing paid its employees in cash. Purisch earned significant amounts of revenue from his operation of the business. In order to avoid paying income taxes, Purisch deposited his income from the business into one of his two personal bank accounts.
In the years 2006 and 2007, Purisch filed individual federal income tax returns which understated his income. Purisch falsely stated in his 2006 tax return that his income was $52,870, when in fact he deposited $276,572 of income into his personal bank accounts. Purisch’s unpaid personal income tax for 2006 was $17,851. Purisch falsely stated on his 2007 tax return that his income was $4,000, when in fact he earned $375,158, resulting in personal income tax liability of $48,410 for 2007.
Purisch deposited $457,499 of income into his personal bank accounts in 2008, and deposited $280,426 in 2009, but never filed a 2008 or 2009 tax return. Purisch’s unpaid personal income tax was $73,836 in 2008, and $41,100 in 2009.
The total tax loss in this case including interest on unpaid taxes is $210,019.04.
Purisch faces a maximum sentence of three years in prison and a fine of $250,000 for subscribing to a false tax return, and one year in prison and $100,000 fine for failing to file a tax return. Purisch will be required to pay restitution of $210,019.04 to the IRS, including interest. U.S. District Judge James K. Bredar scheduled sentencing for June 24, 2013, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Peter M. Nothstein, who is prosecuting the case.
Colorado Man Pleads Guilty to LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that Scott Stewart, age 19, of Colorado Springs, Colorado, appeared before U.S. Magistrate Judge Veronica L. Duffy on March 28, 2013 and pled guilty to Larceny. The maximum penalty upon conviction is 1 year imprisonment and a $100,000 fine.
The charge relates to Stewart stealing the credit card of another person at Ellsworth Air Force Base and making withdrawals on September 9, 2012. The investigation was conducted by the United States Air Force. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date was set for June 6, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Coeur D'Alene Man Pleads Not Guilty to Federal Child Exploitation and Obscenity ChargesRead the Press Release
BOISE – Jeremy E. Durkin, 35, of Coeur d’Alene, Idaho, pleaded not guilty in federal court today to charges related to allegations of child exploitation and obscenity, U.S. Attorney Wendy J. Olson announced. A federal grand jury in Boise indicted Durkin on March 13, 2013, on one count of using a facility of interstate commerce to entice a minor to engage in criminal sexual activity; one count of transferring obscene material to a minor; and one count of receiving sexually explicit images of a minor under the age of 16 years. The indictment alleges that the offenses occurred between December 2009 and July 2010.
The indictment alleges that Durkin was previously convicted in Kootenai County, Idaho, of sexual abuse of a child under age 16. Durkin was a registered sex offender at the time of the new allegations. He is currently an inmate at the Idaho Department of Correction.
The new federal crimes are punishable by up to life in prison.
A trial is set for May 21, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation and the Idaho Department of Correction.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.”
Citizen of Honduras Who Illegally Reentered U.S. After Deportation Is SentencedRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that RAMON MATAMORO-MEJIA, also known as Ramon Majano-Guzman, 34, a citizen of Honduras last residing in Norwalk, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 10 months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, MATAMORO-MEJIA was deported from the U.S. to his native Honduras in February 2002 after he had served a prison sentence in California for attempted murder. He returned to the U.S., was prosecuted in federal court for illegally reentering the U.S., and was deported to Honduras in June 2003. MATAMORO-MEJIA again illegally reentered the U.S. and was deported a third time in July 2007.
MATAMORO-MEJIA again illegally reentered the U.S. in 2011 and, in October 2012, was arrested by the Norwalk Police Department and charged with third-degree assault, disorderly conduct, illegal use of a fake gun, threatening, interfering/resisting arrest, breach of peace and criminal trespass.
On February 7, 2013, MATAMORO-MEJIA pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
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(203) 821-3722 [email protected]Chinese Business Executive Convicted for Illegal Trade in Rhino HornRead the Press Release
Shusen Wei, 45, a citizen of China, pleaded guilty Friday in Miami federal court to charges stemming from his involvement in the smuggling of a carved rhinoceros horn from the United States to China, announced Wifredo A, Ferrer, U.S. Attorney for the Southern District of Florida, Ignacia S. Moreno, Assistant Attorney General for the Environment & Natural Resources Division, and William C. Woody, Chief of the U.S. Fish & Wildlife Service’s Office of Law Enforcement.
Wei entered his guilty plea before U.S. District Judge Cecilia M. Altonaga, who scheduled sentencing for April 29, 2013. Wei faces a possible term in prison of up to 10 years on the single count filed against him, a fine of up to $250,000, and a term of supervised release of up to three years.
According to documents filed in Court, Wei traveled from China to Miami, Fla., in January 2013, to attend the Original Miami Beach Antique Show. While attending the show, he roomed with another Chinese national who was later arrested for smuggling of rhinoceros horns from the United States to China. In pleading guilty, Wei admitted that he paid commissions to this other individual to purchase objects made of rhino horn in the United States and smuggle them to China and that he knew that this individual was engaged in the smuggling of protected species of wildlife, including rhinoceros horn and elephant ivory. Wei also knew that this individual had paid bribes to Chinese customs officials to assist in his smuggling. Special Agents with the U.S. Fish & Wildlife Service learned that Wei had previously purchased libation cups made from carved rhinoceros horns from this same individual. One of those items was sold at a U.S. auction house for $242,500. This and other photographs of carved rhinoceros horns were found on Wei’s cell phone.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by 178 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to 668 in 2012.
Mr. Ferrer commended the investigative efforts of the Special Agents of the U.S. Fish & Wildlife Service and thanked the U.S. Attorneys Offices in the Eastern District of New York and the District of New Jersey for their assistance. The case is part of “Operation Crash” (named for the term used to describe a herd of rhinoceros) which is an ongoing multi-agency effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald and Richard A. Udell, a Senior Counsel with the Environmental Crimes Section of the U.S. Department of Justice.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Convicted in Tax Refund Fraud Scheme Using Stolen IdentitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that yesterday a jury convicted Lee Ervin Dale, 30, of Fort Lauderdale, for his participation in a tax refund scheme using stolen identities to convert government monies to his own use, and to make and present false, fictitious and fraudulent claims to the IRS. More specifically, Dale was convicted of two counts of converting government funds to his own use (income tax refund checks), six counts of making and presenting false claims to the IRS (presenting income tax returns for refunds), and two counts of aggravated identity theft.
Sentencing has been scheduled for June 17, 2013, at 9:00 A.M. before U.S. District Judge Kathleen M. Williams. At sentencing, the defendant faces a statutory maximum sentence of up to 10 years in prison on each count of theft of government funds, up to 5 years in prison on each count of making and presenting a false claim to the government, and two years consecutive to the other sentences on the aggravated identity theft charges.
According to testimony and evidence presented at trial, 291 handwritten tax returns claiming more than $2 million in refunds were filed between 2006 and 2009 using stolen identities and listing the Dale’s P.O. Box address. Although the IRS was able to prevent refund checks from being issued on most of these claims, approximately $195,000 in refund checks were mailed to Dale’s P.O. Box. Several of these checks were deposited directly into bank accounts bearing both Dale’s name and the identity theft victim’s name. Other checks were cashed at a check cashing store in Oakland Park, Florida, in exchange for cash and money orders that the Defendant then deposited into his own accounts.
Mr. Ferrer thanked the agents at IRS-CI for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Laurie E. Rucoba and Jared Strauss.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooklyn Doctor Convicted in $77 Million Medicare Fraud SchemeRead the Press Release
Gustave Drivas, M.D., a medical doctor and resident of Staten Island, was convicted today of two felony counts for his role in a $77 million Medicare fraud scheme. The jury’s verdict followed an eight-week long trial in United States District Court in Brooklyn, New York, before the Honorable Nina Gershon. The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Mythili Raman, Acting Assistant Attorney General of the United States for the Department of Justice.
The evidence at trial showed that Drivas, a medical doctor licensed in the State of New York, knowingly authorized his coconspirators at a medical clinic in Brooklyn, New York, to use his Medicare billing number to charge Medicare for more than $20 million in medical procedures and services that were never performed. In return he received more than $500,000 for his role in the scheme. The evidence established that Drivas was a “no show” doctor, who almost never visited the clinic. The evidence also showed that the medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary and never provided.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
To generate the large amounts of cash needed to pay the patients, the conspirators used a network of external money launderers. The owners and operators of the clinic wrote clinic checks to numerous shell companies that were controlled by money launderers. These checks did not represent payment for any legitimate service at, or for, the medical clinics. Rather, the checks were written to launder the medical clinics’ fraudulently obtained Medicare proceeds. Two of the external money launderers, Anatoly Kraiter and Larisa Shelabadova, pleaded guilty prior to trial. Irina Shelikhova and her son Maksim Shelikhov, who directed the money laundering operation from inside the clinic, also pleaded guilty prior to trial to conspiracy to commit money laundering.
Drivas was convicted today of health care fraud conspiracy and health care fraud. He was acquitted of kickback conspiracy. At sentencing before U.S. District Judge Nina Gershon of the Eastern District of New York, scheduled for July 9, 2013, Drivas faces a maximum penalty of 20 years in prison. Drivas also faces mandatory restitution to be paid jointly and severally with his co-defendants of up to $50 million, and a fine of up to $100 million.
This is the 13th conviction in this case. Prior to trial, 12 defendants pleaded guilty. At trial, Alexander Zaretser, 32, Vladimir Kornev, 53, and Yelena Galper, 40, were acquitted.
“Gustave Drivas sold his license and his ethics for cold, hard cash, and was the linchpin in a scheme that defrauded the Medicare system of millions. Medicare fraud weakens a vitally important program which millions of our citizens rely upon. We will continue to be vigilant in bringing those who seek to steal from Medicare to justice,” stated United States Attorney Lynch. Ms. Lynch thanked the Federal Bureau of Investigation and Health and Human Services for their hard work in connection with this investigation that led to the defendant’s arrest and conviction.
The case was brought together with the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009, between the Department of Justice and Health and Human Services to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
The government’s case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys William C. Campos and Shannon C. Jones.
The Defendant:
Gustave Drivas, M.D.
Age: 50Bonesteel Man Sentenced for Sexual Abuse and Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bonesteel, South Dakota man convicted of one count of Sexual Abuse of a Minor and one count of Sexual Contact with a Minor was sentenced on April 8, 2013 by U.S. District Judge Roberto A. Lange.
Robert Prue, age 34, was sentenced to 17 years in custody, 5 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
Prue was indicted by a federal grand jury on January 18, 2012, and pled guilty to the charge on February 6, 2013.
The convictions stem from incidents that took place between June 22, 2011, and September 22, 2011 when Prue had sexual contact with a minor victim.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Timothy M. Maher.
Prue was remanded to the custody of the U.S. Marshal.
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge Phillip T. Williams from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on April 5, 2013. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Williams in March 1995. Judge Williams received a bachelor of arts degree in 1978 from Temple University, a master of arts degree in 1981 from Howard University, and a juris doctorate in 1986 from Howard University School of Law. From 1997 to 2008, he was an assistant chief immigration judge. From 1995 to 1997, he served as an immigration judge in New York. From 1987 to 1995, Judge Williams was an attorney with Maggio & Kattar in Washington, D.C. From 1984 to 1986, he worked as a District of Columbia pre-trial services officer. Judge Williams is a member of the District of Columbia and Pennsylvania Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewAir Duct Company and Its Owner Sentenced for Selling Diluted Pesticide with Forged LabelsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas air duct company and its owner/president were sentenced today to fines and probation for making false statements to federal investigators and for manufacturing and selling thousands of gallons of misbranded and diluted pesticide between 2005 and 2010,announced Daniel G. Bogden, United States Attorney for the District of Nevada. A company engineer was also sentenced for his role in the offense.
“The defendants knowingly produced and sold a misbranded pesticide, misleading their customers and potentially endangering the public,” said U.S. Attorney Bogden. “We are committed to the prosecution of this type of federal crime and the significant risk it poses to human health.”
DPL Enterprises Inc. (dba Air Care Indoor Quality Specialists), located at 3868 East Post Road, was sentenced to two years of probation and ordered to pay an $80,000 fine. The company must also establish within 30 days a plan to assure that it is operating in full compliance of all environmental and occupational safety regulations. It pleaded guilty in December 2012 to one felony count of making a materially false statement and two misdemeanor counts of misbranding of a pesticide.
Richard Papaleo, 75, of Las Vegas, Nev., the company’s president and owner, was sentenced to two years of probation and ordered to pay a $15,000 fine. Papaleo pleaded guilty in December to one felony count of making a materially false statement and two misdemeanor counts of misbranding of a pesticide.
Michael Stanovich, 67, of Henderson, Nev., an engineer who worked at the company since 1991, was sentenced to one year of probation. Stanovich pleaded guilty in December 2012 to two misdemeanor counts of misbranding of a pesticide.
According to the court records, Air Care was in the business of manufacturing and selling air duct cleaning equipment, filters and various chemical compounds, and it also ran its own air duct cleaning and repair operation. Air Care purchased and sold to its customers a disinfectant pesticide known as Sporicidin. Air Care diluted it with 10 times the amount of water, and sold the fake Sporicidin with a forged label that claimed that it could kill various organisms, including HIV, Avian Flu, Salmonella, Staph and MRSA. Neither the diluted pesticide nor the label was approved by the EPA as required. Air Care and Papaleo had been warned by the maker of Sporicidin as far back as 1998 that the company must obtain EPA approval for its label and that misbranding was “illegal.” Air Care admitted to selling approximately 6,312 gallons of the misbranded and diluted pesticide between 2005 and 2010.
"When people purchase a product, they expect it to be genuine and that it will do what it's supposed to do," said Jay M. Green, Special Agent in Charge of EPA's criminal program in Nevada. "Not only did the defendants dilute and repackage a legitimate product, the product in this case was a disinfectant often used in hospitals and posed a significant risk to human health. Anyone who knowingly misuses a pesticide is committing a crime and like any other violator, he or she will be prosecuted."
The government’s investigation was initiated after EPA received complaints from the maker of Sporicidin. EPA made an undercover purchase of the fake Sporicidin sold by Air Care, and EPA’s National Enforcement Investigations Center (NEIC) laboratory in Colorado found that it was diluted with water even though the fake label made by Air Care claimed it contained the original strength of the active ingredient. When federal agents from the FBI and from EPA’s Criminal Investigations Division questioned Papaleo about whether his company was selling the diluted chemical, he denied it.
EPA regulates pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), which makes it a crime manufacture a pesticide in the United States without first being registered with the EPA and obtaining from the EPA a manufacturer establishment number. Approved labels must be affixed to any container of the pesticide that is distributed or sold. A pesticide is deemed “misbranded” if among other things the labeling is false or misleading. Misbranding pesticides is a misdemeanor offense.
The case was investigated by EPA’s Criminal Investigation Division with assistance from the FBI. The case was prosecuted by Assistant U.S. Attorney Kathryn C. Newman and Richard A. Udell, a Senior Trial Attorney with the Environmental Crimes Section of the U.S. Department of Justice.Addison Seafood Company and Its Owner Resolve Civil and Criminal Charges of Mislabeling Frozen Fish and ShrimpRead the Press Release
CHICAGO — An Addison seafood distributor and its owner have agreed to resolve civil and criminal charges for mislabeling certain products by substituting cheaper fish for more expensive fish and misstating the weight of shrimp to charge customers more for a lesser quantity, federal officials announced today. GOURMET EXPRESS MARKETING, INC., and its president and owner, PATRICK A. BRUNO, agreed to a permanent injunction in settling a civil lawsuit and Bruno has agreed to plead guilty to a criminal misdemeanor charge, admitting that he mislabeled and sold swai as “catfish,” and perch as “red snapper” or “pacific snapper,” and also packaged shrimp in an ice glaze that added to its weight.
The mislabeling has not resulted in any known illnesses or danger to public health, officials said.
U.S. District Judge Edmond Chang signed a consent decree today after the government filed a civil lawsuit against Bruno and Gourmet Express, alleging violations of the Federal Food, Drug, and Cosmetic Act. The decree enjoins the defendants from committing any future violations, requires the hiring of an independent expert at the company’s expense to ensure compliance with the agreement and federal laws, and provides for civil damages of $5,000 a day and $10,000 for each shipment in the event violations occur.
Also today, Bruno, 71, of Addison, was charged in a criminal information with a misdemeanor violation of the Federal Food, Drug, and Cosmetic Act for mislabeling Gourmet Express’ products. Through his attorney, Bruno has authorized the government to disclose that he will plead guilty to the criminal charge. He will be arraigned at a later date in U.S. District Court.
“Customers who purchase seafood products are entitled to know they got what they paid for,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois. “Proper labeling is necessary to protect consumers and we stand ready to take action against food distributors who violate federal food laws and regulations.”
Mr. Shapiro announced today’s action with Scott MacIntire, district director of the FDA’s Chicago District Office, and John P. Stich, Acting Special Agent-in-Charge of the FDA’s Office of Criminal Investigations.
According to court documents, Gourmet Express purchases, processes and repacks frozen seafood and sells its products to retailers and wholesalers in Illinois and other states. The Food and Drug Administration issued a warning letter to the defendants in February 2010 after inspections in 2009 found that they misrepresented the weight of frozen shrimp after adding an ice glaze to the products, and mislabeled perch as “red snapper,” or “pacific snapper.” Subsequent inspections in March and April 2010 documented continuing and additional violations.
The FDA tested samples of the defendants’ frozen cooked shrimp during some inspections in 2009 and 2010 to evaluate the net weight stated on the product labels. The tests revealed that the actual weight of the products was, respectively, 21.5 and 14.4 percent under the labeled weight. The FDA tested DNA samples to determine the true species of the fish.
The criminal case alleges that between 2007 and 2010, Bruno knew that seafood sold he was mislabeled and that the packages of frozen shrimp overstated the weight of that ice-glazed product. The FDA violation carries a maximum penalty of a year in prison and a $100,000 fine.
The civil consent decree requires Gourmet Express and Bruno to hire a qualified independent expert who will develop and implement a written plan for the receipt, processing, packing, labeling, and distribution of seafood to ensure that product labeling is accurate and the products are what they purport to be. Bruno must regularly certify to the FDA that the defendants are in compliance with the plan, and the defendants must pay for future FDA inspections to evaluate compliance. After five years of continuous compliance, Gourmet Express and Bruno may ask a judge to end the consent decree.
The government is being represented by Assistant U.S. Attorneys Donald Lorenzen and Kaarina Salovaara.
In a criminal case, the defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. In a civil case, the government must prove its allegations by a preponderance of the evidence.
Bruno Information
Gourmet Express Consent Decree
Gourmet Express Complaint
5 April 2013
Wyoming Man Indicted for Assaulting A Federal OfficerRead the Press Release
United States Attorney Christopher A. Crofts announced today that Corey James Hill, a 19 year old Eastern Shoshone tribal member of the Wind River Indian Reservation, appeared in Federal Court after having been indicted in a one count Indictment charging him with assaulting and resisting a federal officer. The charge carries a maximum penalty of twenty years imprisonment and a fine of not more than $250,000.00. This case is being investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.Wilmington Man Sentenced for Drug Trafficking & Firearm ViolationsRead the Press Release
New Bern - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan, sentenced LEANDER HANDS, 37, of Wilmington, North Carolina, to 300 months imprisonment and 5 years of supervised release.
On January 16, 2013, HANDS pled guilty to possession with the intent to distribute a quantity of heroin, distribution of a quantity of heroin and aiding and abetting same, and possession of a firearm in furtherance of a drug trafficking crime.
On February 15, 2011, New Hanover County Sheriff’s Detectives made an undercover purchase of heroin near an apartment complex in Wilmington, North Carolina. The detectives developed information that HANDS supplied the heroin to the person who was arrested by law enforcement.
Narcotics detectives stopped an automobile driven by HANDS in the area of the drug transaction. During a search of HANDS and the automobile, law enforcement found quantities of heroin and crack cocaine and $1,200 which included undercover funds used to purchase the heroin.
Following HANDS arrest, detectives searched a Taylor Holmes Apartment that was associated with HANDS. They found an additional 250 bags of heroin in a child’s bedroom. In the master bedroom closet, detectives found a safe containing more than $16,000, a bullet proof vest and a handgun. Detectives also found a stolen handgun in a bedroom drawer.
This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation entitled WoofPack, investigating importers and multi-level distributors of heroin, cocaine, crack cocaine and gang activity associated with this distribution. So far 32 persons have been sentenced in federal court as a part of this operation.
Investigation of this OCDETF case is being conducted by the Federal Bureau of Investigations (Safe Streets Task Force); the Bureau of Alcohol, Tobacco, and Firearms and Explosives; the North Carolina State Bureau of Investigations; the Wilmington Police Department; the New Hanover County Sheriff’s Office and the Greenville Police Department. Special Assistant United States Attorney Timothy Severo represents the government. Mr. Severo is a prosecutor with the New Hanover District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Whitehall Woman Pleads Guilty to Using Stolen Identities to Commit Benefits FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Audrey Costar, 46, of Whitehall, Ohio pleaded guilty in U.S. District Court to using 50 stolen identities to file for unemployment benefits in eight states over three years, netting her almost $80,000.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations, Mark Porter, Special Agent in Charge, U.S. Secret Service and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General announced the pleas entered today before U.S. Magistrate Judge Mark Abel.
According to court documents, Costar used 50 stolen identities to electronically file false unemployment insurance claims in Alaska, Minnesota, Montana, Arizona, Utah, Ohio, Colorado and Pennsylvania between February 2009 and December 2012. She collected approximately $78,674 using the scheme.
Costar was also collecting Social Security benefits in her own name at the time. Earnings made through the identity theft scheme were not reported to the Social Security Administration which resulted in her receiving approximately $7,906.78 in benefits to which she was not entitled.
Costar pleaded guilty to two counts of theft of government funds, each punishable by up to ten years in prison, and two counts of aggravated identity theft. Each count of aggravated identity theft is punishable by a mandatory two-year sentence to be served consecutive to any other time served.
The court will conduct a pre-sentence investigation before determining the sentence and schedule a date for sentencing.
U.S. Attorney Stewart commended the investigation by Department of Labor, Secret Service agents and Social Security Administration inspectors general, and Financial Crimes Chief Brenda S. Shoemaker, who is representing the United States in this case.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Kevin Howell, 46, of Michigan City, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession with the intent to distribute crack cocaine.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 7/17/13.These charges were filed as a result of an investigation by the Drug Enforcement Administration Task Force.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Brian Newman, 46, of Michigan City, Indiana, was sentenced by District Judge Jon DeGuilio to 360 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of enticement of a minor to engage in sexually explicit conduct.According to documents filed by the government in this case, Newman admitted that in April 2012 he contacted a 16 year old female on Facebook who resided in New York.He told her in a Facebook chat that a male she knew as Mark had hacked into her iPad and had video of her dressing in her room.He told her she could get the videos back if she would Skype with him.He asked her to engage in sexually explicit conduct and then e-mail the photos to him.Pursuant to a federal search warrant, law enforcement discovered numerous photos that the girl had sent to Newman’s e-mail account.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Michigan City Police Department, the Mound, Minnesota Police Department, the Cary, North Carolina Police Department and the New York State Police.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION:
Leon Thomas, 38, of Chesterton, Indiana, was sentenced by District Judge Jon DeGuilio to 24 months imprisonment, $25,216.00 in restitution and 1 year of supervised release after pleading guilty to the felony offense of aggravated identity theft.According to documents filed by the government in this case, f rom June 2009 through July 2010, while employed at a manufacturing company in Michigan City, Indiana, Thomas applied for unemployment insurance benefits and extended unemployment benefits using the identity of his brother by using his social security number and date of birth. While working for the company he unlawfully received unemployment insurance benefit payments that consisted of federal and state money. When asked on the weekly claim voucher whether he was working, Thomas answered no, when in truth he was working and receiving a paycheck.Thomas unlawfully received a total of $11,590 in Federal funds as well as $13,626 in State funds for the unemployment benefits. This case was the result of an investigation by the Department of Labor.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ku-La Lwin, 18, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of receipt and possession of a non-registered firearm.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Tina Nommay.
Leonard Riley, 21, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
James Rogers, 28, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Wallingford Man Sentenced to Federal Prison for Trading Child PornographyRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that PETER C. JOHNS, 39, of Wallingford, was sentenced yesterday by United States District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by 10 years of supervised release, for trading child pornography on the Internet.
According to court documents and statements made in court, on November 24, 2010, a detective assigned to the Richmond (Va.) Field Office of the Federal Bureau of Investigation and acting in an undercover capacity logged into a publicly available Internet file sharing program and downloaded several images and videos of child pornography from a shared directory maintained by JOHNS.
On March 25, 2011, JOHNS was arrested at his residence. On that date, law enforcement agents also seized his computer and related components. Forensic analysis of the seized computer and components revealed that JOHNS used the Internet to trade thousands of images and videos of child pornography. Included in his collection of child pornography were images of children under the age of 12 engaged in sexually explicit conduct, and images of children engaging in sadistic or masochistic conduct.
JOHNS has been released on bond under electronic monitoring by the U.S. Probation Office since shortly after his arrest. On January 7, 2013, he pleaded guilty to one count of receipt and distribution of child pornography.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State Police and Wallingford Police Department provided assistance to the investigation. The case was prosecuted by Assistant United States Attorney Sarala V. Nagala.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Virginia Settlement Attorney Pleads Guilty in Conspiracy to Fraudulently Obtain over $100 Million in SBA-backed LoansRead the Press Release
Attorney Used Her Law Firm and Settlement Company to Facilitate Fraudulent Loan ClosingsBaltimore, Maryland - Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia, pleaded guilty today to conspiracy to commit bank fraud and money laundering, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, Oh is an attorney with offices in Annandale, Virginia and the owner operator of Washington Settlement Group (WSG), a title company located in Annandale. In about 1998, Oh met Joon Park and his brother, Loren Park, who owned and operated Jade Capital, a loan brokerage company. Oh knew that Jade Capital specialized in securing loans for individuals interested in purchasing and refinancing small businesses in the Mid-Atlantic area, some of which were settled through Oh’s law firm and WSG. Oh knew that the Parks encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Over the course of Oh’s relationship with Joon and Loren Park, and to foster more business with their company, Oh agreed to use her settlement company and law firm to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, including banks authorized to lend under SBA’s Section 7(a) program. Oh helped the Parks misrepresent to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions.
To accomplish this, Oh sometimes agreed to “netting” a transaction, whereby the Parks would negotiate a sale price with the seller that was less than the price listed on the sales contract submitted to the bank, and/or they would increase the loan by the amount needed for the down payment. In so doing, they reduced the amount of money that the buyer actually had to inject into the deal and concealed that the buyer did not have sufficient equity to qualify for the loan. To conceal these arrangements, Oh completed the settlement sheets as if the buyer had made the required cash injection and the seller had received the full contract price.
Another way that Oh helped to facilitate the loan closing for Jade Capital was when she “fronted” the buyer’s cash injection. Oh temporarily loaned part of the buyer’s up-front payment by taking other people’s money out of the escrow accounts of either her law firm or her title company. Joon and Loren Park then paid back the fronted money after the settlement, usually from their share of the proceeds from that deal or a later one. As with the “netting” scheme, the settlement sheets and all other related documents for the “fronted” deal would falsely reflect that the buyer injected his own money into the transaction in accordance with the agreed upon financing terms established by the lending institution.
Oh faces a maximum penalty of 30 years in prison for the bank fraud conspiracy; and a maximum of 20 years in prison for money laundering. As part of her plea agreement, Oh will be required to pay a money judgment of $11,832,000 and forfeit all the property involved in the offense. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for July 9, 2013 at 1:00 p.m.
Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, pleaded guilty and is scheduled to be sentenced on May 28, 2013 at 1:00 p.m. Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively.
This law enforcement action is part of President Barack Obama’s 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.
United States Attorney Rod J. Rosenstein thanked the SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who are prosecuting the case.
Virginia Man Sentenced for Firearm OffenseRead the Press Release
King Malone, Jr., a 51-year old man, from Hampton, VA, was sentenced on April 5, 2013, in district court in East St. Louis, on one count of unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Malone, Jr. was sentenced to 12 months in prison, two years of supervised release, fined $200 and ordered to pay $100 special assessment. Malone, Jr., who had previously pled guilty, admitted ownership of a semi-automatic weapon recovered in a vehicle driven by him on January 7, 2011, during a law enforcement traffic stop, knowing that he was a convicted felon and that it was illegal for him to have a firearm.
The investigation was conducted by the Bureau of Alcohol, Tobacco Firearms and Explosives, and the Illinois State Police.
This was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
U.S. Attorney and Head of IRS Newark Field Office Remind Taxpayers Filing Deadline Is NearRead the Press Release
NEWARK, N.J. – As the April 15 deadline for filing taxes approaches, U.S. Attorney Paul J. Fishman and Shantelle P. Kitchen IRS-Criminal Investigations Acting Special Agent in Charge, Newark Field Office, are reminding taxpayers to accurately and completely fill out their returns and make sure they file them on time.
“Tax evasion is a felony, punishable by prison time and heavy fines and penalties,” U.S. Attorney Fishman said. “It’s important for the public to take time to carefully prepare their returns and make sure they file them – or seek a filing extension – before the deadline.”
“The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system,” Acting SAC Kitchen said. “Year round efforts of IRS-Criminal Investigation are directed at that portion of Americans who willfully and intentionally violate their legal duty to voluntarily file lawful and accurate tax returns.”
U.S. Attorney Fishman and Acting SAC Kitchen said taxpayers who are hiring someone else to prepare their returns for them should ensure they are working with reputable tax return preparers.
“Be careful when choosing someone else to prepare your taxes,” U.S. Attorney Fishman said. “Even if someone else prepares your return, you are ultimately responsible for all the information on it. Make sure you review your return, and never sign a blank form.”
“While the vast majority of return preparers are professional, honest and provide a valuable service to their clients, there are some who are not,” Acting SAC Kitchen said, noting the recent case of a Hudson County tax preparer who pleaded guilty Feb. 1, 2013, to filing false returns and tax evasion:
Elijah Washington Jr., of Jersey City, N.J., owned and operated a tax preparation business – Elijah’s Professional Tax Service – in Jersey City, where he prepared tax returns for tax years 2005 through 2008. He admitted that he fabricated various items to obtain larger refunds for clients, including tuition and fees deductions, child tax credits, charitable contributions and job expenses. He also failed to report his own income on the money he earned from the tax preparation business.
Tax evasion is a felony, punishable by up to five years in prison and a $250,000 fine. Other tax cases prosecuted recently by the U.S. Attorney’s office in New Jersey include:
Nicholas Papanier Sr., 57, of Sewell, N.J., pleaded guilty on March 22, 2013, to one count of tax evasion. Between 2006 and 2009, Papanier owned Nellie’s Provisions, a meat distribution company that provided all of the meat for Primo Hoagies franchises and other independent restaurants. In 2006, 2007 and 2008, Papanier persuaded Primo Hoagies franchise owners to buy Thumann’s deli products from Nellie’s Provisions, often paying for them in cash. He took a significant amount of the cash paid to Nellie’s Provisions and deposited it into his personal bank accounts. Papanier admitted that he did not report the diverted cash to the IRS and only reported Form W-2 wages, interest and dividend income, and property tax information. By omitting all of the diverted cash, he failed to disclose and report a significant portion of this income on his tax returns, causing those tax returns to substantially understate the amount of income he received.
Rakesh Chitkara, 60, of Marlboro, N.J., pleaded guilty March 21, 2013, to making and subscribing to a 2007 federal income tax return to the IRS that he did not believe to be true. Chitkara admitted that he had a financial interest in at least two financial accounts at UBS AG in Zurich, Switzerland, and that he knowingly failed to disclose these accounts, and income from these accounts, on his personal tax returns for five years.
Joseph Gallagher, 69, of Rutherford, N.J., a tax preparer and disbarred New Jersey lawyer, was sentenced on March 20, 2013, to 36 months in prison for submitting false tax returns or failing to file returns for five years, resulting in a tax loss to the government of more than $1.1 million.
“IRS-Criminal Investigation is committed to working with the United States Attorney’s Office in the investigation and prosecution of tax crimes,” Acting SAC Kitchen said. “We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS.”IRS-Criminal Investigation is the law enforcement side of the IRS. IRS Special Agents investigate potential violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.
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Two Rapid City Men Indicted for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that two 23-year-old men have been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Kenneth Morales-Scott, Jr., and Cayleb Louis Young from Rapid City, South Dakota were indicted by a federal grand jury on March 13, 2013. They appeared before U.S. Magistrate Judge Veronica L. Duffy on April 1, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of custody, a $250,000 fine, or both; 2 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Morales-Scott, Jr., and Young are presumed innocent until and unless proven guilty. The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Morales-Scott, Jr., and Young were released on bond pending trial. A trial date has not been set.
Sturgis Man Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that Carlos Jimenez-Burgos, age 28, of Sturgis, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on April 2, 2013 and pled guilty to Illegal Reentry After Deportation. The maximum penalty upon conviction is 2 years' imprisonment and/or a $250,000 fine.
In February 2013, after being arrested in Sturgis on a traffic offense, Jimenez-Burgos was found to be illegally living in the United States, having previously been deported. The investigation was conducted by the Bureau of Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S Marshal pending sentencing.
Springfield Men Sentenced for Stolen Check Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Springfield, Mo., men have been sentenced in federal court for their roles in a conspiracy to alter stolen checks and pass them at various retailers in the Springfield area.
Maurice Suton Anton Sayles, also known as “Ish” Washington, and his twin brother, Martinus Antuan Sayles, both 36 and both of Springfield, were each sentenced by U.S. District Judge Greg Kays on Wednesday, April 3, 2013 to seven years and one month in federal prison without parole. The court also ordered Maurice Sayles to pay $3,303 in restitution; Martinus must pay at least $1,838 in restitution.
Maurice Sayles, who admitted that he was the leader of the criminal conspiracy that involved at least five participants, pleaded guilty on Oct. 11, 2012. Martinus Sayles pleaded guilty to his role in the conspiracy on Aug. 27, 2012.
Martinus Sayles acquired stolen checks from an unidentified person in the Kansas City, Mo., area. Martinus and Maurice Sayles then altered the checks by cutting out digits from the routing and account numbers, and replacing them with other digits using glue and a hammer. They passed the forged checks at various retailers throughout the Springfield area and recruited others to pass the forged checks for them.
Sometimes the Sayles brothers and those they recruited used false identification to pass the forged checks. Maurice Sayles created the false identifications using a label maker to alter the existing identification card or driver’s license of the individual passing the check to match the name of the account holder on the check. The Sayles brothers, with the assistance of others they recruited, returned the merchandise they purchased for a cash refund.
Many times, the Sayles brothers facilitated their return of the merchandise by altering the purchase receipts to appear as though the purchase had occurred more than 10 days before the return. This was done to circumvent the 10-day return policy most stores had in place, which required customers paying by check to wait at least 10 days before returning merchandise in order to ensure the check had cleared before a refund was issued.
This case was prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Springfield, Mo., Police Department and the U.S. Secret Service.
Sioux Falls Man Convicted in Child Sex Trafficking CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man has been found guilty on two counts of Sex Trafficking of a Child. Emmanuel William Nyuon, age 34, was convicted by a federal jury for Sex Trafficking of a Child by Force, Fraud, or Coercion and Conspiracy to Engage in Sex Trafficking of a Child.
Following a four-day trial, the jury returned the guilty verdict after a short deliberation. These charges carry a mandatory minimum of 15 years in prison up to a maximum of life and/or a $250,000 fine. Nyuon was indicted by a federal grand jury in February 2012 on these sex trafficking charges.
“Many South Dakotans are shocked to learn that human trafficking and child prostitution exists within our borders, but the victims are here, often hiding in plain sight. We will continue working with victim advocates and law enforcement agencies to aggressively pursue these criminals who prey upon vulnerable children,” said U.S. Attorney Johnson.
In the spring of 2011, the Sioux Falls Police Department (SFPD) Street Crimes Unit began investigating a criminal organization operating in and around Sioux Falls. Witnesses identified several individuals they claimed had been selling narcotics and prostitutes, which included Emmanuel Nyuon. In January of 2012, the SFPD requested federal assistance, and a team consisting of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, the SFPD, and the South Dakota Division of Criminal Investigation began investigating the case.
Assistant U.S. Attorneys Kevin Koliner and Jeff Clapper prosecuted the case. A presentence investigation was ordered, and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshal.
Sesser Man Pleads Guilty to Firearm and Controlled Substance OffenseRead the Press Release
On April 5, 2013, Robert Olguin, a forty-seven year old Sesser, Illinois, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by an unlawful user of a controlled substance, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Olguin is scheduled for sentencing on July 29, 2013, at which time he faces a maximum potential sentence of 10 years’ in prison and a fine of up to $250,000, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100. Olguin also agreed to the forfeiture of the firearm.
Court proceedings revealed that on October 18, 2012, law enforcement officers on motorcycle patrol running radar checks along I-64 near Mascoutah, clocked a vehicle driven by Olguin at 82 mph in a 65 mph zone. An officer executed a traffic stop and smelled the odor of marijuana coming from the vehicle as he approached. The officer searched the vehicle recovering marijuana and a loaded rifle. Olguin admitted ownership of the firearm and his intent to smoke the marijuana recovered in the car.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Illinois State Police.
This case is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Rosebud Man Indicted for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man has been indicted by a federal grand jury for Abusive Sexual Contact.
Laun Leroy McCloskey, age 19, was indicted by a federal grand jury on April 2, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 4, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; life of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and McCloskey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
McCloskey was remanded to the custody of the U.S. Marshal pending trial on May 14, 2013.
Reehahlio Carroll Pleads Guilty to Murdering Catholic Nun During Commission of a Burglary on the Navajo ReservationRead the Press Release
Plea Agreement Requires Forty Year Prison SentenceALBUQUERQUE – Reehahlio Carroll, 21, an enrolled member of the Navajo Nation from Navajo, N.M., pleaded guilty this morning to a second degree murder charge under an agreement that requires him to serve a 40 year federal prison sentence. Carroll’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and John Billison, Director of the Navajo Nation Division of Public Safety.
Carroll was arrested in Nov. 2009, based on federal charges arising out of the murder of Sister Marguerite Bartz of the Order of the Sisters of the Blessed Sacrament, which is part of the Diocese of Gallup, N.M. The murder occurred on Nov. 1, 2009, during the burglary of Sister Bartz’s home on the Saint Berard Mission which is located on the Navajo Indian Reservation. Proceedings in the case were delayed by protracted competency proceedings resulting in a judicial finding that Carroll was competent to stand trial.
In announcing today’s guilty plea, U.S. Attorney Gonzales said, “No one, especially one who had dedicated her life to the service of others, should have to endure the brutal and terrifying death that Sister Marguerite Bartz suffered at the hands of Reehahlio Carroll. Although Carroll’s guilty plea cannot atone for the loss of Sister Marguerite’s life, I hope that it can bring a measure of solace to her biological family and her spiritual family as well as the community she chose to serve.”
Sister Bartz’s body was discovered in a pool of blood in the bedroom of her ransacked home, a double-wide trailer located next to the church, on the evening of Nov. 1, 2009, by a nun who was concerned about Sister Bartz’s failure to show up for mass in the Diocese’s church in Sawmill, Ariz. Today, Carroll pled guilty to a felony information charging him with the second degree murder of Sister Bartz. During his plea hearing, Carroll admitted that he killed Sister Bartz at approximately midnight on Nov. 1, 2009, after he broke into a trailer home on the grounds of the Catholic Church in Navajo for the purpose of stealing cash or items that he could readily sell for cash.
According to court records, after Carroll broke a window to gain access to Sister Bartz’s trailer, he rummaged through drawers and cabinets searching for cash and items of value that he could sell for cash or trade for drugs or alcohol. Carroll found a flashlight in a room that he used for illumination as he continued searching for items to steal. When Carroll encountered Sister Bartz in one of the bedrooms and she attempted to defend herself by hitting him with a slipper, he brutally murdered her by beating her repeatedly with a flashlight and then, in an attempt to silence her, strangling her with a t-shirt. The pathologist who performed the autopsy concluded that the cause of death was multiple blunt force head trauma and ligature strangulation.
Carroll was arrested on tribal charges on Nov. 5, 2009, after law enforcement officers learned that he had been observed driving a car that was reported stolen from the Mission’s grounds. Following his arrest, Carroll provided a detailed confession in which he admitted murdering Sister Bartz while burglarizing her home. Carroll remained in tribal custody until he was arrested on federal charges on Nov. 10, 2009. Carroll remains detained pending his sentencing hearing, which has yet to be scheduled.
“The successful investigation and prosecution of this crime would not have been possible without the hard work and collaborative efforts of the Albuquerque FBI and our law enforcement partners,” said FBI Special Agent in Charge Lee. “Outstanding detective work by FBI Special Agents, the FBI's Evidence Response Team, Navajo Nation Tribal Authorities and the New Mexico State Police resulted in a solid case against the defendant. We hope this guilty plea brings some closure to the victim's family, which endured a great deal of personal grief as a result of this senseless crime. The FBI takes its role in protecting tribal communities seriously. We will continue to work closely with our tribal partners and the U.S. Attorney's Office to ensure the safety and security of the reservations and pueblos in New Mexico.”
“Sister Marguerite Bartz spent the last decade of her life serving the Navajo people, and her death was a tremendous loss to the community she loved and served as a teacher, companion, spiritual advisor and advocate,” said Director Billison of the Navajo Nation Division of Public Safety. “I commend the tribal officers and criminal investigators who worked with the FBI to investigate this heinous crime and who are dedicated to ensuring the safety and welfare of the Navajo people.”
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety, with assistance from the New Mexico State Police. Assistant U.S. Attorneys Presiliano A. Torrez and Paul H. Spiers are prosecuting the case.
Real Estate Developer, Entrepreneur Convicted of Wire FraudRead the Press Release
BOSTON - A Weston real estate developer and entrepreneur, who was apprehended in Cyprus nearly eight months after he was indicted on federal criminal charges, was convicted yesterday of wire fraud in connection with his defrauding several individuals in 2008.
After a jury trial, Paul John McMann, 54, was convicted of three counts of wire fraud. United States District Judge Rya W. Zobel scheduled sentencing for June 27, 2013.
In October and November of 2008, McMann purchased various fraudulent bank documents, including “Proof of Funds” letters on Bank of America and Wachovia Bank letterhead purporting to show that McMann and his company, Commonwealth Albanian Hydro Ventures, Inc. (CAHV), held accounts in those banks containing large sums of money. McMann used these and other fraudulent documents, including a phony letter of credit purporting to come from Wachovia Bank, as part of fraudulent scheme to obtain money and other consideration from various individuals in the Boston area and elsewhere. Specifically, McMann utilized the fraudulent documents to secure at least $450,000 in loans, as well as to convince a creditor to whom McMann owed over $1.6 million, to hold off on foreclosing on various properties McMann had developed.
The indictment was returned on November 10, 2010, but McMann, after being informed by the United States Secret Service of the pending charges against him, remained at-large, outside the United States, until he was detained on July 10, 2011, in Cyprus. He has been held pending trial.
The statutory maximum penalty is up to 20 years in prison to be followed by three years of supervised release and a fine of up to $250,000 or twice the amount of loss inflicted by his fraud, whichever is greater, on each count of wire fraud.
United States Attorney Carmen M. Ortiz, Steven Ricciardi, Special Agent in Charge of the United States Secret Service, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division and United States Marshal John Gibbons made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Vassili Thomadakis and Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
Individuals who believe that they may have been a victim of McMann, should contact the United States Attorney’s Office at: [email protected].
Reading Woman Gets 342 Months for Drug-Debt KidnappingRead the Press Release
PHILADELPHIA - Grace Marie Perez-Jimenez, 27, of Reading, PA, was sentenced today to 28.5 years in prison for kidnapping a 14 year-old child for ransom over a drug debt. In 2011, Perez sold "crack" cocaine to a Reading resident. On November 3, 2011, after the drug customer failed to pay her $500, Perez abducted the customer's 14-year old child, as the child walked home from school in Reading, Pennsylvania. Inside the car, Perez physically assaulted the 14-year old victim, threatening to kill the child by saying, for example, “you see this right here (referring to the gun), if I don't get my money you may not be going home to mom.” The victim was then blindfolded and handcuffed to a chair. Reading Police assisted the kidnapping victim's mother to arrange a ransom drop. Perez's co-defendant, Samantha Conrad, was captured on a video recording retrieving the first drop of pre-recorded ransom money. After the first $500 ransom payment, Perez drove to Philadelphia, along with the minor child, in Perez's gold Mitsubishi and used the $500 to buy "PCP" to later sell in Reading. Perez demanded more money and a second ransom drop was placed in the mailbox of Perez's mother.
Finally, after the second ransom payment and hours of psychological torture, the child was released with the threat that Perez would kill the 14 year old victim and the family if anyone was told the identity of the kidnappers. Perez pleaded guilty on July 12, 2012 to conspiracy to kidnap, kidnapping, conspiracy to distribute phencyclidine ("PCP"), possession with intent to distribute phencyclidine ("PCP"), collection of extension of credit by extortionate means, possession of a firearm in furtherance of a crime of violence, and one count of possession of a firearm by a convicted felon.
In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered Perez to pay a $5,000 fine, a $700 special assessment, and ordered five years of supervised release.
This case was investigated by the Federal Bureau of Investigation, the Reading Police Department, and the Berks County District Attorney's Office. It was prosecuted by Assistant U.S. Attorney Jessica Natali.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Raleigh Drug Dealer SentencedRead the Press Release
Raleigh - United States Attorney Thomas G. Walker announced that in federal court yesterday United States District Judge Louise W. Flanagan sentenced DARRIN HOWARD MERRITT, 48, of Raleigh,North Carolina, to 151 months imprisonment followed by 3 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on June 20, 2012, charging MERRITT with violations of federal narcotics laws. MERRITT entered a guilty plea on September 11, 2012, to distributing a quantity of crack cocaine.
According to evidence presented in Court, on May 31 and June 9, 2011, MERRITT distributed crack cocaine in Raleigh, North Carolina. Upon further investigation, it was learned that MERRITT was responsible for possessing and selling over 102 grams of cocaine and 10 grams of crack cocaine.
Investigation of this case was conducted by the Raleigh-Durham Safe Streets Taskforce. Members of the Raleigh-Durham Safe Streets Taskforce include: Federal Bureau of Investigation, Raleigh Police Department, NC Alcohol Law Enforcement, NC Highway Patrol, Durham Police Department, Durham County Sheriff’s Office, Cary Police Department, Garner Police Department, and NC Department of Probation and Parole.
The federal prosecution was handled by Special Assistant United States Attorney Shawn Evans and Assistant United States Attorney Denise Walker. Mr. Evans is a prosecutor with the Wake County District Attorney’s Office. Wake County District Attorney Colon Willoughby has assigned Mr. Evans to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. His assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Pawtucket Man Sentenced to 14 Years in Federal Prison for Trafficking Heroin from VenezuelaRead the Press Release
PROVIDENCE, R.I. – Carlos Gonzalez, 42, of Pawtucket, R.I., was sentenced today to 168 months in federal prison for possession with the intent to distribute one kilo or more of heroin, announced United States Attorney Peter F. Neronha. Gonzalez was arrested by federal agents in January 2012, shortly after he accepted delivery of a parcel which had contained a large quantity of heroin stashed inside a pair of flat screened monitors shipped from Venezuela to his Pawtucket residence.At sentencing, U.S. District Court Judge William E. Smith also ordered Gonzalez to serve five years of supervised release upon completion of his prison term. Gonzalez pleaded guilty on August 30, 2012, to possession with the intent to distribute one kilogram or more of heroin.
According to information presented to the court, on January 20, 2012, Customs and Border Protection (CBP) agents in Miami selected the parcel for intensive exam based on anomalies observed when x-rayed. A certified drug dog also alerted to the package. Agents opened the package and discovered two flat screen monitors which emitted a strong chemical odor. One of the monitors was opened to reveal a light brown substance which field tested positive for heroin.
The parcel was re-packaged to its original state for a possible controlled delivery to Gonzalez at his Pawtucket residence. CBP agents forwarded the parcel to Homeland Security Investigations agents in Rhode Island who removed the heroin from the package and replaced it with a representative sample of heroin.
According to information presented to the court, on January 26, 2012, an undercover U.S. Postal Inspection Service agent delivered the parcel to Gonzalez at his residence. Gonzalez acknowledged to the agent that he was expecting the package, then signed for it and accepted delivery. A short time later, as he attempted to drive away from the area, Gonzalez was detained in a traffic stop and was returned to the apartment by uniformed Rhode Island State Troopers. He was not in possession of the subject parcel when he was stopped. After Gonzalez was returned to his residence, agents searched the apartment and recovered the package containing the flat screen monitors.
The suspect heroin was tested at the DEA Regional Laboratory in New York. It tested positive for 1.322 kilograms of heroin.The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Contact: 401-709-5357
[email protected]Pamlico County Drug Trafficker Sentenced in Operation “NO QUARTER”Read the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced KEVIN CORNELIOUS DAVIS, 44, of Bayboro, North Carolina to 131 months imprisonment followed by 5 years supervised release. DAVIS was also ordered to pay a $5000 fine.
DAVIS was arrested on July 4, 2011, after more than 12 kilograms of cocaine being transported from Arizona were seized in Pamlico County. DAVIS was one of the intended recipients of the cocaine. The investigation revealed that from 2006 until his arrest, DAVIS was responsible for distributing approximately 83 kilograms of cocaine. DAVIS was subject to an enhanced sentence based on his status as a career offender.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $1.5 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney's Office. District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney's Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. His assignment to the United States Attorney's Office has been made possible by grants funded by the Governor's Crime Commission.
Oxford Man Sentenced to Eight Years in Prison for Illegal Gun PossessionRead the Press Release
Joseph White, 46, of Oxford, Pennsylvania was sentenced today to eight years in prison by the Honorable Stewart Dalzell for possession of a firearm by a convicted felon. During the evening of April 12, 2012, Pennsylvania State Police were called to White’s home in Oxford for a domestic disturbance. Prior to this date, White was convicted in Pennsylvania on several felony charges including drug trafficking and receiving stolen property. When the troopers arrived that night, they found White in possession of a loaded .44 caliber revolver and a loaded shotgun and placed White under arrest. The troopers later returned to his home with a search warrant and seized 91 additional firearms, including a machine gun, a sawed-off shotgun, parts to a rocket launcher, and a large quantity of ammunition. White pleaded guilty January 7, 2013.
In addition to the prison term, White was ordered to pay a $1,500 fine, a $100 special assessment, and was ordered to complete three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennsylvania State Police. It was prosecuted by Assistant United States Attorney Robert J. Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525