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4 April 2013
Thirty-Nine People Charged in Connection with Trafficking Drugs in Hancock CountyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
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22 Arrested in Early Morning Sweep of Chester & Newell; 17 Suspects Still Wanted
NEW CUMBERLAND, WV - Thirty-nine individuals involved in the trafficking of heroin, cocaine, and methamphetamine and other drugs in Hancock County have been charged in federal and state court, according to U.S. Attorney William Ihlenfeld, II, Hancock County Prosecutor James Davis, and Hancock County Sheriff Ralph Fletcher.
An early morning arrest operation took place today during which 22 defendants were taken into custody. The sweep was spearheaded by the Hancock-Brooke-Weirton Drug Task Force and was supported by the Ohio Valley Drug Task Force of Wheeling, the Marshall County Drug Task Force, the Mountaineer Highway Interdiction Team, the Greater Harrison County (W.Va.) Drug Task Force, and the United States Marshals Service.
During the sweep additional quantities of illegal drugs were recovered and additional charges may be filed as a result of those discoveries.
The arrests dealt a major blow to the drug activity that has plagued the areas of Chester and Newell for the past year, and this investigation is one that Sheriff Fletcher has been focused upon since he took office in January. The leading to the charges became operational in September of 2012 and included extensive surveillance and many controlled purchases of narcotics.
“We’re fortunate to have such a talented and hard-working drug task force to serve the citizens of Hancock County,” said Sheriff Fletcher. “These men worked long hours to help to make the streets of Newell, Chester, and other communities in this county a safer place for everyone.”
“Hancock County struggles with the fact that our boundaries to the North, East and West are the Commonwealth of Pennsylvania and the State of Ohio,” said Prosecuting Attorney Jim Davis. “This makes the transport of controlled substantives relatively easy from Pittsburgh, Youngstown, Columbus, Cleveland, Detroit and even the New Jersey area. That’s why it takes a cooperative effort, such as the one that occurred in this investigation, to make a significant impact.”
“The Drug Enforcement Administration, working in partnership with the Hancock- Brooke-Weirton HIDTA Drug Task Force has brought a significant heroin and crack cocaine trafficking organization; operating in Newell and Chester, West Virginia to justice,” stated DEA Special Agent in Charge Karl C. Colder of the Washington Division Office. “This investigation demonstrates the continued commitment by DEA and the HIDTA Drug Task Force to impact drug trafficking organizations at their highest level.”
Nineteen of those involved were charged by a federal grand jury in Wheeling which returned three separate indictments with a total of ninety-four counts related to the distribution of heroin, methamphetamine, powder cocaine, crack cocaine, marijuana, oxycodone in the Hancock County area.
Of the thirty-nine individuals charged, six are from Chester, ten are from Newell, eight are from East Liverpool, Ohio, four are from New Cumberland; three are from Weirton; two are from New Brighton, Pennsylvania, one is from Aliquippa, Pennsylvania, one is from Georgetown, Pennsylvania, two are from Mckees Rocks, Pennsylvania, one is from Wellsburg, one is from Colliers and one is from Wellsville, Ohio.
FEDERAL CHARGES
The following individuals were indicted by the Wheeling federal grand jury earlier this week:
MICHAEL OGDEN ALLEN, 22 years old of Chester, West Virginia, was charged with seven felony counts related to the distribution of heroin and methamphetamine in Hancock County.
EDWARD LEON CROW, JR., of Newell, West Virginia, was charged with eight felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
BRIAN CUSTER, 30 years old of Newell, West Virginia, was charged with ten felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
SHAWN LEE DANVER a/k/a “SHAWN D,” 29 years old of East Liverpool, Ohio, was charged with two felony counts related to the distribution of cocaine base in Hancock County.
BRANDON DUNN, 28 years old of Chester, West Virginia, was charged with nineteen felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
JUSTIN GRAHAM, 30 years old of Newell, West Virginia, was charged with eight felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
KAREN GRAHAM, 41 years old of Newell, West Virginia, was charged with three felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
ANTONIO SCOTT FRAZIER a/k/a “ANTONIO SCOTT HARLIN” a/k/a “KOBE, 27 years old, was charged with six felony counts related to the distribution of cocaine base in Hancock County.
BRANDI LOU HISSOM, 37 years old of East Liverpool, Ohio, was charged with nine felony counts related to the distribution of cocaine base in Hancock County.
BRITTANY LUCINDA HISSOM, 18 years old of East Liverpool, Ohio, was charged with eight felony counts related to the distribution of cocaine base in Hancock County.
ANTONYO W. JOHNSON, 26 years old of East Liverpool, Ohio, was charged with eight felony counts related to the distribution of cocaine base in Hancock County.
NIKKI J. KOFFEL, 24 years old of East Liverpool, Ohio, was charged with five felony counts related to the distribution of cocaine base in Hancock County.
ELIZABETH KWOLEK, 20 years old of Chester, West Virginia, was charged with nine felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
LARISSA ANNE MARINER, 28 years old of Newell, West Virginia, was charged with six felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
RANDY ALLEN SAVORS, JR., 35 years old of East Liverpool,, Ohio, was charged with two felony counts related to the distribution of cocaine base in Hancock County.
KYLE ROBERT THORN, 27 years old of Chester, West Virginia, was charged with three felony counts relating to the distribution of heroin and methamphetamine in Hancock County.
DAVID WESLEY TREAD WAY, 54 years old of Newell, West Virginia, was charged with eight felony counts related to the distribution of cocaine base in Hancock County.
MALIK ALONSO WARE a/k/a “BLAKE,” 30 years old of New Brighton, Pennsylvania, was charged with ten felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
TONY WOLFE, 39 years old of East Liverpool, Ohio, was charged with eleven felony counts related to the distribution of heroin, cocaine, cocaine base, oxycodone and marijuana in Hancock County.
STATE CHARGES
The following individuals have been charged in state court as part of the same investigation:
JOSHUA RYAN AYERS, 23 years old of Aliquippa, Pennsylvania, with Conspiracy to Deliver Controlled Substances, Delivery of a Controlled Substance; Transporting a Controlled Substance into the State; and, Delivery of a Counterfeit Controlled Substance.
ROSALYN GALLOWAY, 28 years old Newell, West Virginia, with Delivery of a
Controlled Substance.BRIAN HUMPHREYS, 33 years old of East Liverpool, Ohio, with Conspiracy to
Deliver Controlled Substances and Delivery of a Controlled Substance.SCOTT R. LAMB, 30 years old, of Chester, West Virginia, with Delivery of a
Controlled Substance.AMANDA M. MACKALL, 20 years old, of Georgetown, Pennsylvania, with Conspiracy to Deliver Controlled Substances, Delivery of a Controlled Substance; Transporting a Controlled Substance into the State; and, Delivery of a Counterfeit Controlled Substance.
CHRISTIAN D. PARR, 28 years old of Colliers, West Virginia, with Delivery of a
Controlled Substance.HEATHER WELLS, 32 years old of Chester, West Virginia, with Conspiracy to
Deliver Controlled Substances and Delivery of a Controlled Substance.DWAYNE WHITAKER, 25 years old of McKees Rocks, Pennsylvania, with Delivery of a Controlled Substance.
The following individuals were also charged in State Court as part of today’s operation: JAMES A. ACCONICA, JR., age 47, of Newell, West Virginia; JAMES A. ACCONICA, III a/k/a “JT,” age 26, of Weirton, West Virginia; COURTNEY MARIE BOYLES, age 23, of Weirton, West Virginia; ADAM SCOTT GRAHAM, age 26, of Newell, West Virginia, BONNIE GRAHAM-BUCKLEY, age 31, of New Cumberland, West Virginia; WILLIAM EMMIT HART, age 51, of New Cumberland, West Virginia, MYSTIC LEIGH HUGGINS, age 29, of Wellsville, Ohio; RICHARD ALAN MAXWELL, age 39, of New Cumberland, West Virginia, DUSTIN MITCHEL MCCOY, age 34, of New Cumberland, West Virginia; LUKE A. MORRIS, age 34, of East Liverpool, Ohio; CHRISTOPHER CARLTON NIXON, age 34, of Newell, West Virginia; JOHN ROBERT SPEARS, age 38, of Weirton, West Virginia; and, DAWYNE WHITAKER, age 25, of McKees Rocks, Pennsylvania.
Of those charged the following individuals have not yet been apprehended: MICHAEL OGDEN ALLEN
NIKKI J. KOFFEL
SHAWN LEE DANVER ANTONIO SCOTT HARLIN RANDY ALLEN SAVORS, JR. MALIK ALONSO WAREJAMES A. ACCONICA, JR. JAMES A. ACCONICA, III JOSHUA RYAN AYERS COURTNEY BOYLES SCOTT LAMB
AMANDA MARIE MACKALL DUSTIN MCCOY
CHRISTIAN D. PARR JOHN ROBERT SPEARS HEATHER ANN WELLS DAWYNE WHITAKERAll of those charged face prison sentences, or fines, or both. The United States is also seeking the forfeiture of money and property which constitute proceeds derived as a result of such offenses.
The charges contained in the federal indictment and state warrants are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Statement from U.S. Attorney Robert E. O’Neill Regarding Resignation PlansRead the Press Release
I would like to thank President Obama, U.S. Attorney General Holder, Senators Nelson and Rubio, and former Senators Martinez and LeMieux for providing me the opportunity to serve as the United States Attorney for the Middle District of Florida. I appreciate the confidence which they exhibited in me and I hope and trust that I, and this office, have lived up to their expectations. I am very thankful for having been given this wonderful opportunity.
It has been both an honor and a privilege to serve as the United States Attorney in the Middle District of Florida. This is a great office. Statistically, the Middle District of Florida is one of the busiest and most productive districts in the nation. It ranks at or near the top of the 94 districts in virtually every category maintained by the United States Department of Justice. Yet, while serving the second largest population in the nation, it is the 16th largest office in terms of personnel. The significant accomplishments of this district are the result of the collective efforts of the hard working men and women who comprise this United States Attorney’s Office. They are dedicated public servants who believe in pursuing justice and the rule of law. In an era in which it has become fashionable to impugn the public employee, the individuals in this office work long hours, often without recompense, simply because they believe in the mission of the office.
I was offered an extremely unique opportunity to join the Freeh Group International Solutions, LLC. It was an offer that I could not pass upon. The Freeh Group is an global risk management firm serving in the areas of business integrity and compliance, safety and security, and investigations and due diligence. The firm was founded by Louis J. Freeh, former Director of the Federal Bureau of Investigation and former United States District Judge.
In order to accept that position, I have to resign from a position that is extraordinarily rewarding. My resignation is effective this summer. I will continue in my present position for the next few months to ensure an orderly transition for this office and for my successor.
State Employee Pleads Guilty to $158,000 Fraud Scheme to Pay Refunds to Springfield BusinessRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an employee of the Missouri Department of Revenue pleaded guilty in federal court today to fraudulently paying $158,000 in refunds to a Springfield business owner, who has also pleaded guilty to his role in the scheme, and others.
Roselly Delores Otto, 31, of Meta, Mo., waived her right to a grand jury and pleaded guilty today before U.S. Magistrate Judge David P. Rush to a federal information that charges her with two counts of mail fraud. James Edward Bruhn, 46, of Springfield, waived his right to a grand jury and pleaded guilty on March 13, 2013, before U.S. District Judge Richard E. Dorr to a federal information that charges him with one count of mail fraud.
Otto and Bruhn evenly split $127,905 in proceeds from the fraud scheme between April 2011 and September 2012. Otto also received approximately $30,000 in a separate, but similar, fraud scheme between January 2009 and September 2012. Otto worked for the Taxation Division of the Missouri Department of Revenue. Bruhn operated a lawn care business known as EB Lawncare in Springfield.
As a part of his business, Bruhn would submit motor fuel refund claims to the Taxation Division of the Missouri Department of Revenue. Motor fuel that is used for certain non-highway purposes is exempt from the state fuel tax and a refund may be claimed by the consumer. Part of Otto’s responsibilities included approving or declining motor fuel refund claims received by her division.
Bruhn admitted that he submitted refund documents knowing that his claims that fuel was purchased and that the fuel was used for statutorily exempt purposes was entirely false and fraudulent. Otto admitted that she received the fraudulent refund claims from Bruhn, and even though she knew that the information provided in the documents was entirely false, approved Bruhn’s refund claims. Otto caused refund checks to be mailed to Bruhn. Bruhn cashed his refund checks and mailed a portion of the proceeds back to Otto. The Missouri Department of Revenue detected the fraud, alerted law enforcement authorities and cooperated in the investigation.
Under federal statutes, Otto is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. Bruhn is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service and the Missouri Department of Revenue Compliance and Investigation Bureau.St. Francis Man Sentenced for Controlled Substance Charge and for Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man convicted of Simple Possession of a Controlled Substance and for Failure to Appear, charged in two separate criminal cases, was sentenced on April 2, 2013 by U.S. District Judge Roberto A. Lange.
Antoine Kills In Water, age 30, was sentenced to 6 months in custody, a $1,000 fine, and a $25 special assessment to the Victim Assistance Fund for the Simple Possession of a Controlled Substance conviction. He was also sentenced to 6 months and 1 day in custody, 1 year supervised release, and a $100 special assessment to the Victim Assistance Fund for the Failure to Appear conviction.
For the Controlled Substance charge, Kills In Water was indicted by a federal grand jury on July 18, 2012 and pled guilty to the charge on January 10, 2013. For the Failure to Appear charge, he was indicted on December 11, 2012 and pled guilty on January 10, 2013.
The Controlled Substance conviction stems from an incident that took place between April 29, 2011 and May 11, 2011, when Kills In Water used and possessed methamphetamine and marijuana. The Failure to Appear conviction is the result of his not appearing at his jury trial for the drug case.
The Controlled Substance investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. The Failure to Appear investigation was conducted by the U.S. Marshal’s Service.Both cases were prosecuted by Assistant U.S. Attorney Timothy M. Maher.
Kills In Water was remanded to the custody of the U.S. Marshal.
Shrewsbury Man Pleads Guilty to Sex TourismRead the Press Release
BOSTON – A Shrewsbury man pleaded guilty today in U.S. District Court in Worcester to traveling to the Dominican Republic with the intent to engage in illicit sexual conduct.
Conrad Gallant, 61, previously of Winchendon and most recently of Shrewsbury, pleaded guilty before U.S. District Court Judge Timothy S. Hillman to engaging in illicit sexual conduct in foreign places and travel with intent to engage in illicit sexual conduct. Under the terms of the plea agreement, the Court must sentence Gallant to between 60 and 168 months in prison, 10 years of supervised release, restitution and forfeiture. Sentencing is scheduled for June 26, 2013.
According to the agreed upon statement of facts, Gallant traveled to the Dominican Republic in February 2011 and had sexual relations in his apartment with a 14-year-old girl he knew was underage. Gallant returned to the Dominican Republic four times over the course of a year to engage in illicit sexual relations with the underage victim, giving her money, a laptop computer, and jewelry during that time. Additionally, on these trips, Gallant took photographs of the victim while she was nude and while engaging in sexual acts, and took those images back to the United States.In February 2012, the National Tourist Police of the Dominican Republic learned that Gallant had engaged in sexual relations with the then 15-year-old victim. The victim was forensically interviewed by a medical professional and she confirmed that Gallant engaged in sex with her. She provided agents with a cell phone containing images of Gallant naked, including an image of Gallant and the victim engaged in sexual activity. The victim disclosed that Gallant had promised her certain items and money to take her mother to the doctor, but never gave them to her. Additionally, the victim stated that Gallant forced her to have sex with him a couple times when she was unwilling. The victim also informed investigators that Gallant asked her to bring him other minor girls to have sex with and this happened on two occasions. Gallant paid both of these minors $100.
In March 2012, a federal search warrant was executed at Gallant’s Shrewsbury address. During the search, agents recovered images of Gallant and the victim together engaged in sexually explicit conduct, including an image of the victim performing oral sex on Gallant and a close-up image of the victim’s genitalia displayed in a sexually explicit manner.
A second federal search warrant was executed on the items seized from Gallant’s apartment in the Dominican Republic and revealed a laptop containing numerous images of child pornography, including the images mentioned above of Gallant engaging the sexual conduct with the victim.United States Attorney Carmen M. Ortiz; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in Boston; Worcester County District Attorney Joseph Early; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief James Hester, Jr. of the Shrewsbury Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Michael I. Yoon, Stacy Dawson Belf, and Eve Piemonte Stacey of Ortiz's Major Crimes Unit.
The U.S. Attorney’s Office would like to extend its appreciation to HSI’s attaché in Santo Domingo, the Dominican Tourist Police (Politur), Dominican prosecutors in Higuey and Santo Domingo, Dominican Migration and HSI's Santo Domingo Transnational Criminal Investigative Unit members for their assistance and cooperation.
Settlement with Tyson Foods to Address Multiple Releases of Anhydrous AmmoniaRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a Clean Air Act (CAA) settlement with Tyson Foods Inc. and several of its affiliate corporations to address threats of accidental chemical releases after anhydrous ammonia was released during incidents at facilities in Kansas, Missouri, Iowa and Nebraska, resulting in multiple injuries, property damage and one fatality.
“This settlement will protect workers at Tyson facilities throughout Kansas, Iowa, Missouri and Nebraska that use anhydrous ammonia, and make the communities surrounding these 23 facilities safer. It will also provide emergency response equipment for first responders to chemical releases,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The requirements of this agreement, which include comprehensive third party audits, will help mitigate the impact of releases of anhydrous ammonia by ensuring compliance with the Risk Management Program under the Clean Air Act.
“Exposure to anhydrous ammonia can cause serious health issues, and in extreme cases, even death,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement with Tyson Foods will ensure the proper safety practices are in place in the future to protect employees, first responders, and communities located near processing facilities from the threat of dangerous chemical releases.”
Under the terms of the consent decree, Tyson is required to conduct third-party audits of its current compliance with the CAA’s Risk Management Program requirements at all 23 facilities in Kansas, Iowa, Missouri and Nebraska. The third-party auditors must have expertise in ammonia refrigeration systems, be recognized experts in risk management program compliance and be approved by EPA. Tyson must correct any violations discovered in the audits and certify the completion of the work. Tyson has also agreed to test certain piping used in its refrigeration systems at the 23 facilities to identify any problems that may have led to accidental releases and to replace any non-compliant piping.
Under the consent decree, Tyson will pay a $3.95 million penalty. Tyson has also agreed to implement a supplemental environmental project to purchase $300,000 worth of emergency response equipment for first responders in communities with significant environmental justice concerns in which Tyson operates facilities. The equipment will assist responses to emergencies involving chemicals that are regulated pursuant to the CAA Risk Management Program, including anhydrous ammonia.
Anhydrous ammonia is a poisonous gas and considered an extremely hazardous substance under the CAA. Exposure to vapors can cause temporary blindness and eye damage, as well as irritation of the skin, mouth, throat, respiratory tract and mucous membranes. Prolonged exposure to anhydrous ammonia vapor at high concentrations can lead to serious lung damage and even death.
The Clean Air Act’s Risk Management Program requires owners and operators of facilities that exceed a threshold quantity of a regulated substance, such as anhydrous ammonia, to develop and implement a risk management plan that must be submitted to EPA. The 23 Tyson facilities named in the consent decree are subject to the regulations because the refrigeration systems at the facilities each contain more than 10,000 pounds of anhydrous ammonia. The facilities have a combined inventory of more than 1.7 million pounds of anhydrous ammonia.
Tyson Foods Inc. is headquartered in Springdale, Ark. and is the world’s largest processor and marketer of chicken, beef and pork.
The proposed settlement lodged in the U.S. District Court for the Eastern District of Missouri, is subject to a 30-day public comment period and final court approval. A copy of the consent decree is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.
More information: www.epa.gov/enforcement/waste/cases/tysonfoodsinc.html
Service Members to Receive $39 Million for Violations of the Servicemembers Civil Relief ActRead the Press Release
The Justice Department announced today that under its 2011 settlements with BAC Home Loans Servicing LP, a subsidiary of Bank of America Corporation, and Saxon Mortgage Servicing Inc., a subsidiary of Morgan Stanley, 316 service members whose homes were unlawfully foreclosed upon between 2006 and 2010 are due to receive over $39 million in monetary relief for alleged violations of the Servicemembers Civil Relief Act (SCRA).
Under the first settlement, Bank of America is required to pay over $36.8 million to service members whose homes were unlawfully foreclosed upon between 2006 and 2010. Each service member will receive a minimum of $116,785, plus compensation for any equity lost with interest. Bank of America has already begun compensating 142 service members whose homes were illegally foreclosed on between 2006 and the middle of 2009. Under the same agreement, Bank of America agreed to provide information about its foreclosures from mid-2009 through the end of 2010. As a result of that review, Bank of America will now pay 155 service members upon whose homes it illegally foreclosed. Borrowers receiving payment under this settlement may receive an additional payment under a settlement between Bank of America and federal banking regulators -- the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System -- if the foreclosure occurred in 2009 or 2010. Payments provided under the federal banking regulators’ settlement will bring the total amount received by eligible borrowers to $125,000 plus equity where applicable.
Under the second settlement, Saxon Mortgage Services Inc. is in the process of paying out over $2.5 million to 19 service members whose homes were unlawfully foreclosed upon between 2006 and 2010. Each service member will receive a minimum of $130,555.56, plus compensation for any equity lost with interest.
Bank of America is one of five mortgage servicers that entered into a settlement, known as the National Mortgage Settlement, with the Justice Department in 2012 regarding its foreclosure practices. Pursuant to the National Mortgage Settlement, the Justice Department is overseeing ongoing audits of the five largest mortgage servicers in the country (Wells Fargo, Bank of America, Citibank, JP Morgan Chase and Ally) to identify violations of the SCRA’s foreclosure provisions between Jan. 1, 2006 and April 4, 2012 and its 6 percent interest rate cap provision between Jan. 1, 2008 and April 4, 2012. The $36.8 million currently being paid by Bank of America to 297 service members is pursuant to the 2011 consent decree (which predated the National Mortgage Settlement), and represents only the non-judicial foreclosures conducted by Bank of America. As the National Mortgage Settlement audits progress, the Justice Department will be requiring payments by Bank of America for judicial foreclosure and interest rate violations, and by the other four servicers for judicial and non-judicial foreclosure and interest rate violations. Under the National Mortgage Settlement most service members wrongly foreclosed on will receive $125,000 plus any lost equity. For the foreclosure violations that took place in 2009 and 2010, the Justice Department is coordinating closely with the Office of the Comptroller and the Federal Reserve Board, which are conducting separate reviews of 12 mortgage servicers under the Independent Foreclosure Review process.
“Our men and women in the military should not have to worry about a bank foreclosing on their home while they bravely serve our country,” said Eric Halperin, Special Counsel for Fair Lending in the Civil Rights Division. “The Justice Department will vigorously enforce the laws that protect service members while they do their difficult and necessary work.”
The SCRA provides critical additional consumer and other protections to the men and women serving our nation in the military. For more information on the Justice Department’s work to enforce service members’ rights, please visit www.servicemembers.gov.
Sentences for April 02- 03, 2013Read the Press Release
Shea Breshears, 20, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2013, for conspiracy to interfere with interstate commerce by means of robbery and aiding and abetting. Breshears was arrested in Casper, Wyoming. She received time served, to be followed by three years of supervised release, with the first six months on home confinement. Breshears was also ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Brian Kountz, 22, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 3, 2013, for conspiracy to interfere with interstate commerce by means of robbery and aiding and abetting. Kountz was arrested in Casper, Wyoming. He received 80 months of imprisonment, to run concurrent with a state sentence. In addition, he was ordered to pay a $400.00 fine and a $100.00 special assessment and will be placed on three years of supervised release upon release from custody. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Nicholas Shane Bath, of Fremont County, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 2, 2013, for credit union and bank robbery. Bath appeared pursuant to a Writ. He received five years of supervised probation, with the first four months to be served on house arrest. Bath was further ordered to pay $24,170.00 in restitution and a $200.00 special assessment. This case was investigated by the Shoshone and Riverton Police Departments, the Fremont County Sheriff’s Office and the Federal Bureau of Investigation.
Seabrook Man Pleads Guilty to Paying Bribe to IRS AgentRead the Press Release
CONCORD, NH –Hoang O. Hoang, 45, of Seabrook, pled guilty in United States District Court for the District of New Hampshire to charges that he paid a bribe to an agent of the Internal Revenue Service, announced United States Attorney John P. Kacavas.
On December 9, 2011, Hoang met with an IRS Revenue Agent, who was conducting an audit of a nail salon business in Newington owned by Hoang. Over the course of multiple conversations, Hoang offered to pay the agent personally, not the IRS, $4,000 if the agent could reduce the business’ tax liability. On January 12, 2012, Hoang met with and paid the IRS agent $2,295 for the purpose of corruptly influencing the agent in the exercise of his official duties, specifically the outcome of the agent’s IRS audit of Hoang’s business.
Hoang is facing a maximum prison sentence of 15 years, 3 years of supervised release and a $250,000 fine. He is scheduled to be sentenced on July 10, 2013.
The case was investigated by the office of the United States Treasury Inspector General for Tax Administration (TIGTA) and is being prosecuted by Assistant United States Attorney Arnold H. Huftalen.
San Fernando Valley Man Sentenced to 15 Months in Federal Prison for Trafficking in Counterfeit, Chinese-Made PharmaceuticalsRead the Press Release
LOS ANGELES – A North Hollywood man was sentenced today to 15 months in federal prison in relation to a plot in which he possessed, and had the intent to distribute for profit, more than 2,000 Chinese-made counterfeit pharmaceutical pills.
Edward Alarcon, 44, was sentenced this morning by United States District Judge George H. Wu. In addition to the prison term, Judge Wu ordered Alarcon to pay $1,000 restitution to Eli Lilly and Company, the manufacturer of Cialis, and $1,000 to Purdue Pharma L.P., the manufacturer of OxyContin.
After a three-day jury trial in January, Alarcon was convicted on two counts of trafficking in counterfeit OxyContin and Cialis. The evidence presented at trial showed that Alarcon had purchased the bogus OxyContin from Bo Jiang, a Chinese national and the alleged head of a counterfeit drug ring. Alarcon had offered to sell counterfeit Cialis, Viagra and Levitra on Craigslist.
“The size, shape and color of the pills, as well as the markings on them and their packaging were identical to and substantially indistinguishable from genuine marks in use and registered for the brand-name pills on the principal register of the United States Patent and Trademark Office,” prosecutors wrote in a sentencing memo filed in Alarcon’s case. “The use of these marks was likely to cause confusion, to cause mistake, or to deceive because the pills and their packaging appeared to be the legitimate, brand-name products but were not. Moreover, the chemical composition of the pills was not the same as that of the legitimate products.”
Jiang, whose last known residence was in New Zealand, was taken into custody in January 2011 by New Zealand law enforcement authorities after being named with Alarcon in a federal grand jury indictment. However, Jiang was released on bond and became a fugitive.
On November 10, 2009, federal agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) found approximately 237 counterfeit OxyContin pills and approximately 1,592 counterfeit Cialis pills in Alarcon’s car and house. Investigators also found hundreds of other counterfeit pills, including Viagra and Levitra (at trial, Alarcon was acquitted on charges related to the Viagra and Levitra). Only a month before the federal search, Alarcon had been convicted in state court on counterfeit drug charges for selling bogus Cialis to an undercover Los Angeles Police Department officer.
In a related case, Francis Ortiz Gonzalez, who worked as a “dropshipper” for Jiang in the United States, was sentenced by Judge Wu in January to two years in federal prison and was ordered to pay $324,530 in restitution for trafficking counterfeit pharmaceuticals (see: http://www.justice.gov/usao/cac/Pressroom/2013/012.html).
The cases against Alarcon, Jiang and Ortiz Gonzalez are the result of investigations by HSI; the Food and Drug Administration, Office of Criminal Investigations; and the United States Postal Inspection Service.
Release No. 13-048
Rosebud Woman Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Patricia Pacheco, age 23, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 2, 2013 and pled guilty to Count II of the Indictment that charged her with Possession with Intent to Distribute a Controlled Substance. The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; at least 2 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge stems from an incident on March 21, 2012 wherein Pacheco’s vehicle and residence were searched. Controlled substances and drug paraphernalia were found.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Pacheco was remanded to the custody of the U.S. Marshal Service pending sentencing, which has been set for June 24, 2013.
Rosebud Man Pleads Guilty to Interstate Transportation of Stolen VehicleRead the Press Release
United States Attorney Brendan V. Johnson announced that Alec Arapahoe, age 20, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 2, 2013 and pled guilty to Interstate Transportation of a Stolen Motor Vehicle. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on July 3, 2011 when Arapahoe stole a pickup truck from Colorado and drove the vehicle from Colorado to South Dakota and onto the Rosebud Sioux Indian Reservation.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Timothy M. Maher.
A presentence investigation was ordered and a sentencing date was set for June 24, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rhode Island Businessman Pleads Guilty to Attempted Tax EvasionRead the Press Release
PROVIDENCE, R.I. – Richard Scialo, 58, owner and operator of Personal Touch, a Providence based home and business cleaning service, pleaded guilty in federal court in Providence today to attempting to evade the payment of more than $180,000 in federal taxes by underreporting taxable income he claimed was cash “gifts” from some of his clients for whom he provided cleaning services.
According to information presented to the court, despite being warned during a routine IRS audit in 2008 that all income generated by his business was taxable, including cash “gifts” provided by clients for services rendered by his company, Scialo failed to accurately report income generated by his business through tax year 2009. A further investigation by IRS agents revealed that Scialo failed to accurately report his business’ taxable income for tax years 2004 – 2009, and that he failed to pay $181,417 in federal taxes.
Scialo’s guilty plea to one count of attempted tax evasion was announced by United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation.
Scialo is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on July 19, 2013. Attempted tax evasion is punishable by up to five years in federal prison; 3 years supervised release; and, a fine of $250,000. According to a plea agreement filed in this matter, Scialo has agreed to pay restitution to the IRS in the amount of $181,417.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by Internal Revenue Service, Criminal Investigation
Contact: 401-709-5357
[email protected]Raleigh County Pill Addict Admits to Illegally Possessing A .45 Caliber PistolRead the Press Release
BECKLEY, W.Va. – A Raleigh County man who admitted to having an addiction to prescription painkillers pleaded guilty today in federal court to illegal possession of a firearm, announced United States Attorney Booth Goodwin. James David Morris, 34, of Eccles, W.Va., entered a guilty plea to being an unlawful drug user in possession of a firearm. Morris admitted that he knowingly possessed a .45 caliber pistol near Harper, Raleigh County on March 28, 2012. Morris further admitted that at the time he possessed the firearm, he was an unlawful user of and addicted to the powerful prescription painkiller oxycodone.
Morris faces up to 10 years in prison and a $250,000 fine when he is sentenced on August 1, 2013 by United States District Judge Irene C. Berger.
The West Virginia State Police and the FBI conducted the investigation. Assistant United States Attorney John File is in charge of the prosecution.
This case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
This case is also being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Quincy Man Convicted of Credit Card SkimmingRead the Press Release
BOSTON – A Quincy man was convicted today of credit card fraud and aggravated identity theft in connection with his use of stolen credit card numbers to purchase more than $64,000 in cigarettes and other items.
Yek Doug Wong, 50, pleaded guilty before U.S. District Judge George A. O’Toole to using counterfeit access devices, possession of device-making equipment, and six counts of aggravated identity theft. For the charge of using counterfeit access devices, the statutory maximum penalty is 10 years in prison, followed by three years of supervised release and a $250,000 fine; for the charge of possession of device-making equipment, the statutory maximum penalty is 15 years in prison, followed by three years of supervised release and $250,000 fine; for the charges of aggravated identity theft, the statute mandates two years in prison. Sentencing is scheduled for July 16, 2013.
In October 2011, the Braintree, Brockton and Holbrook Police Departments received reports from numerous people who identified fraudulent activity on their credit card accounts, even though all of the victims still possessed their actual cards. Law enforcement collected surveillance video from many of the locations where the purchases had been made as well as receipts from suspect transactions. The surveillance videos showed a man, later identified as Wong, making the purchases and then driving off. Ultimately, one clerk noted the license plate of the car which led to Wong and a search of his residence. The search resulted in the seizure of, among other things, more than 1,170 embossed and blank Visa, MasterCard and American Express cards, three credit card skimming devices, a card reader and encoding device, two credit card embossing machines, various pieces of computer equipment, 42 cartons of cigarettes, 22 bottles of rice wine, and $16,900 in cash. Officers also seized two safe deposit box keys which led to the seizure of an additional $4,250 in cash.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; Chief Russell W. Jenkins of the Braintree Police Department; Chief Emanuel Gomes of the Brockton Police Department; Chief William D. Marbel, Jr. of the Holbrook Police Department; and Chief Paul Keenan of the Quincy Police Department, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Philadelphia Woman Charged Is Fourth Defendant in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Dontaya S. Devore, 38, of Philadelphia, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Devore is charged with conspiracy to commit loan and wire fraud, false statement in connection with Federal Housing Administration loan, and loan fraud. The information also seeks the criminal forfeiture of over $467,000 from Devore.
Devore is the fourth defendant charged in this district with participating in a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia involving KREW Settlement Services, a Philadelphia real estate settlement company that is alleged to have been at the center of the conspiracy. Devore is alleged to have directly participated in several fraudulent loan applications by purchasing properties in her name based on the submission of false loan applications and other false documents.
The other three co-conspirators charged in this district with participating in the same mortgage fraud conspiracy involving KREW are Willie G. Manley Jr., Eric Ponder, and Rashika J. Moon. According to the information, co-conspirator Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. Co-conspirator Eric Ponder, charged elsewhere, is alleged to have held himself out as a real estate developer and helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers. The information also alleges that another co-conspirator, Rashika J. Moon, had the legal authority to sign checks from KREW’s bank account and directly participated in numerous fraudulent loan applications by purchasing properties in her name based on the submission of false loan applications and other false documents, or by later “selling” many of those properties to “straw buyers” whose identities and fraudulent information were used to obtain other loans.
The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.
If convicted, Devore faces a maximum possible sentence 37 years imprisonment, 5 years supervised release, a fine of $1.5 million or twice the value of the property involved in the transactions, and a $300 special assessmentThe case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
UNITED STATES ATTORNEY’S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
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Philadelphia, PA 19106COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT
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PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Man Charged with Pizza Hut RobberyRead the Press Release
Jamal Craig, 43, of Philadelphia, Pennsylvania was charged by Indictment today with one count of Hobbs Act Robbery, and one count of brandishing, using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. According to the indictment, defendant robbed the Pizza Hut, located at 2530 Aramingo Avenue, Philadelphia, PA on January 25, 2013.
If convicted, defendant faces a mandatory minimum of seven years in prison with a maximum possible sentence of life, consecutive to any other sentence, five years of supervised release, a $500,000 fine, restitution and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Owner of Brotherly Love Ambulance Charged in $2 Million Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - Feda Kuran, 37, of Philadelphia, PA, pleaded guilty today to a health care fraud scheme that involved billing Medicare for ambulance services that were not medically necessary, that were not actually provided, or that were induced by illegal kickbacks. During this health care fraud scheme, the defendant also gave and received illegal kickbacks. As a result, the Medicare program paid approximately $2,015,712 for the fraudulent bills. Kuran pleaded guilty to one count of Health Care Fraud and one count of violating the Anti-Kickback Statute. U.S. District Court Judge William H. Yohn, Jr. scheduled a sentencing hearing for July 24, 2013. Kuran faces a maximum possible sentence of 15 years in prison, three years of supervised release, a $250,000 fine, a $200 special assessment, and restitution to Medicare. In addition, the defendant has agreed to forfeiture and a money judgment against her for more than $2 million.
As documents filed in connection with the plea revealed, in July 2010, the defendant began operating Brotherly Love Ambulance, Inc. with a co-schemer. Kuran, or others acting at her direction, transported patients by ambulance when those patients could have been transported safely by other means and were, therefore, not eligible for ambulance service under Medicare and Medicaid requirements. Not only were those patients able to be safely transported by means other than ambulance, but also many of the patients were observed walking to and from ambulances. The defendant and others acting on behalf of Brotherly Love Ambulance also caused bills to be submitted to Medicare for ambulance services for patients who were transported by Brotherly Love employees in personal vehicles or who drove themselves or took public transportation to their destinations. In addition, the defendant and other employees paid kickbacks to some patients to induce them to allow Brotherly Love Ambulance, Inc. to transport them. Brotherly Love paid other patients so that the ambulance company could use those patients’ information to bill for transportation that Brotherly Love Ambulance never actually provided. The defendant also agreed that she received kickbacks from other ambulance companies to refer patients to the other ambulance companies.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the Federal Bureau of Investigation, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Matthew J.D. Hogan and Paul W. Kaufman.
Click here to view the indictment
1An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Ohio Resident Sentenced on Heroin Conspiracy ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - A 24 year old Bellaire, Ohio, resident was sentenced on April 4, 2013, in United States District Court in Wheeling by Chief Judge John Preston Bailey.
United States Attorney William J. Ihlenfeld, II, announced that: CHAZ WILLIAM ERAZMUS, 24 years old of Bellaire, Ohio, was sentenced to 33 months imprisonment to be followed by three years of supervised release. ERAZMUS entered a plea of guilty on November 2, 2012, to “Conspiracy to Distribute Heroin” from April to June of 2012 in Wheeling. ERAZMUS, who is free on bond, will self-report to the designated Federal institution.
This case was prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the West Virginia State Police-Bureau of Criminal Investigations.
New Haven Man Sentenced to Nine Years in Federal Prison for Robbing Six Connecticut BanksRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that KEVIN BOLDEN, 47, of New Haven, was sentenced yesterday by United States District Judge Janet Bond Arterton in New Haven to 108 months of imprisonment, followed by three years of supervised release, for robbing six Connecticut banks.
According to court documents and statements made in court, in March 2012, BOLDEN committed six bank robberies in New Haven, Woodbridge, Stamford (2), Greenwich and Bridgeport, stealing a total of more than $15,000.
During five of the robberies, BOLDEN was assisted by Moneek Grant, also of New Haven.
BOLDEN has been detained since his arrest on April 4, 2012. On December 4, 2012, he pleaded guilty to one count of bank robbery.
On October 2, 2012, Moneek Grant pleaded guilty to one count of bank robbery. On December 19, 2012, she was sentenced to 30 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the New Haven, Stamford, Woodbridge, Greenwich and Bridgeport Police Departments. The case was prosecuted by Assistant United States Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]NYPD Officer Assigned to Harlem Precinct Indicted for Armed Robbery and Narcotics TraffickingRead the Press Release
A superseding indictment was unsealed yesterday evening in federal court in Brooklyn charging New York City Police Officer Jose Tejada with armed robbery conspiracy, narcotics distribution conspiracy, and the unlawful use of a firearm.1 Tejada is a 17-year veteran of the New York City Police Department (“NYPD”) who, at the time of the robberies, was assigned to the 28th Precinct in Harlem and committed at least one of the robberies while on duty and in uniform. Tejada will be arraigned later today before United States Magistrate Judge Marilyn D. Go at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration, New York, and Raymond W. Kelly, Commissioner, New York City Police Department.
The superseding indictment added Tejada as a defendant to a previously filed indictment against a violent crew responsible for more than one hundred armed robberies of narcotics traffickers in the New York City metropolitan area that netted more than 250 kilograms of cocaine and $1 million in drug proceeds. As detailed in the superseding indictment and a detention letter filed by the government, beginning in 2001, members of the robbery crew, posing as police officers, staged arrests of drug traffickers, using fake arrest and search warrants, and then forcibly took drugs and money from the traffickers. Members of the crew restrained the drug traffickers with handcuffs, rope, and duct tape. During some of these robberies, crew members brandished firearms and assaulted their victims. The crew included actual officers, such as Tejada, who is the third member of law enforcement to be charged in the case.
According to the government’s filings, Tejada personally participated in three robberies in 2006 and 2007, which netted thousands of dollars in cash and multiple kilograms of cocaine. During one of the robberies, Tejada, while on duty and in uniform, used his status as a police officer to demand and gain access to a private residence in the Bronx. The crew mistakenly believed the residents to be drug dealers. In fact, the residents were a family of three, including a teenager, who had no involvement in drug dealing. Tejada and two others unsuccessfully searched the premises for drugs, while Tejada brandished his service weapon at the family. During another robbery in Upper Manhattan, Tejada and other crew members dressed in NYPD uniforms – including a second, actual NYPD officer – pulled over a car, handcuffed the driver, and stole five kilograms of cocaine hidden inside the car.
According to the government’s filings, Tejada helped robbery crew members pose as police officers by supplying them with NYPD equipment and paraphernalia. Tejada also searched confidential law enforcement databases to determine whether there were outstanding warrants in the names of his confederates.
Twenty-one members of the robbery crew, including a second NYPD officer and an auxiliary NYPD officer, have previously been convicted in the case. At the time of the robberies, Tejada was assigned to the 28th Precinct in Harlem. Currently, he is assigned to Police Service Area 7 of the NYPD Housing Bureau, located in the Bronx.
United States Attorney Lynch thanked the Drug Enforcement Administration and the NYPD Internal Affairs Bureau for their work on the case, and the New York State Police, United States Customs and Border Protection and Homeland Security Investigations for their assistance.
If convicted, Tejada faces a maximum sentence of life imprisonment on the narcotics and firearms charges.
The government’s case is being prosecuted by Assistant United States Attorneys Alexander Solomon and Douglas Pravda.
The Defendant:
JOSE TEJADA
Age: 45_____________________________
1 The charges contained in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Monadnock Community Hospital Enters into Settlement Agreement to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
CONCORD, NH- Monadnock Community Hospital of Peterborough, New Hampshire, without admitting liability, has entered into a settlement agreement to resolve allegations that it violated the Americans with Disabilities Act (“ADA”) by failing to provide appropriate auxiliary aids and services (such as sign language interpreters) that were necessary to ensure effective communication with deaf or hard-of-hearing individuals, announced United States Attorney John P. Kacavas
Amy Dauphinais is deaf and communicates primarily via American Sign Language. She alleged that the hospital failed to provide appropriate auxiliary aids and services when necessary for effective communication. She alleged that she was unable to communicate adequately with hospital personnel while she was receiving medical treatment at the hospital in 2010 because she was not provided with a sign language interpreter or other adequate auxiliary aids. She also alleged that she was required to use her minor daughter to interpret for her.
As part of the settlement, the hospital, which cooperated in the investigation, agreed to establish a program to ensure that it provides effective communication to deaf and hard-of-hearing patients in the future. This includes the appointment of Program Administrators to answer questions and provide appropriate assistance regarding immediate access to and proper use of appropriate auxiliary aids and services required by the settlement agreement. The hospital has agreed to make efforts to determine the needs of deaf and hard-of-hearing individuals and to provide them with appropriate auxiliary aids and services (including qualified interpreters) in a timely fashion. Among other things, the hospital has agreed to provide training for the staff and to provide reports to the U.S. Attorney’s Office regarding its compliance with the agreement. The hospital also agreed to pay $5,000.00 to the complainant, Amy Dauphinais.Under the ADA, health care providers must furnish appropriate auxiliary aids and services where necessary to ensure effective communication with individuals with disabilities. The ADA applies to all hospital programs and services, such as emergency room care, inpatient and outpatient services, surgery, clinics, educational classes, and cafeteria and gift shop services. Wherever deaf patients or their companions are interacting with medical staff, a health care provider is obligated to provide effective communication. When complex communication is involved (such as when discussing complex medical issues), the ADA often requires health care providers to provide sign language interpreters for deaf or hard-of-hearing patients or other deaf or hard-of-hearing individuals (such as the deaf parents of a minor child). More information about the ADA may be found at www.ada.gov.
“The Department of Justice takes these civil rights violations seriously,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. “The U.S. Attorneys are key partners in stopping discrimination against individuals with disabilities in the critical area of health care and we are very pleased to be working with them.”
United States Attorney John P. Kacavas observed that “full and proper access to health care for people with disabilities is a civil right and my office will continue to eradicate the barriers to such access wherever they may arise.”
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, a multi-faceted initiative that addresses access to health care for people with disabilities, including individuals with hearing and mobility disabilities and for people with HIV. It is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ office, including the U. S. Attorney’s Office for the District of New Hampshire. Information about the initiative can be found by visiting www.ada.gov/usao-agreements.htm.
Miami Man Sentenced for His Role in A $3.3 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that defendant Arthy Icart, 25, of Miami, was sentenced yesterday for his participation in a $3.3 million stolen identity tax refund fraud scheme. Specifically, U.S. District Judge Joan A. Lenard sentenced Icart to 70 months in prison, to be followed by 3 years of supervised release. Icart had previously pled guilty to charges of conspiracy to file fraudulent claims, access device fraud, and aggravated identity theft.
On October 5, 2012, Arthy Icart and co-conspirator Charlton Escarmant, 29, of Miami, were charged in a five-count indictment for their participation in an identity theft tax refund scheme. According to testimony and evidence presented at trial, some of the personal identification information used by Icart and Escarmant to file fraudulent tax returns was stolen from Tallahassee Community College’s (TCC) financial aid office. In fact, more than 3,200 names found on a computer in Escarmant’s possession came from TCC.
To execute the scheme, Icart and Escarmant filed tax returns using the stolen identification information and also in their own name and created false W-2 forms with fictitious employer information. Icart’s W-2 falsely claimed the he worked at Memorial Regional South Auxiliary. Escarmant’s W-2 form falsely claimed that he was a veterinarian at Central Broward Animal Hospital. IRS Special Agents contacted the employers listed on both Icart and Escamant’s W-2 and the employers confirmed that neither defendant ever worked for them.
At the time of their arrest, Icart and Escarmant unlawfully possessed approximately 22 pre-paid tax debit cards in the names of other individuals. In total, during the course of the scheme, Icart and his co-conspirator submitted approximately 400 fraudulent tax returns to the Internal Revenue Service, seeking more than $3.3 million in tax refunds.
Sentencing for Charlton Escarmant has been scheduled for June 17, 2013, before U.S. District Judge Lenard. At sentencing, he faces a possible statutory maximum sentence of 24 years in prison.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI and the North Miami Beach Police Department. Mr. Ferrer also thanked the Tallahassee Community College for their cooperation during this investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Elina Rubin-Smith.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Citizen Indicted for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, announced today that a 31- year-old native and citizen of Mexico has been charged with Illegal Reentry into the United States.
According to United States Attorney Peter J. Smith, Navor Silva-Garcia, age 31, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg Wednesday.
The indictment alleges that Silva-Garcia, an alien who was convicted on March 19, 2012, of Unlawful Restraint, was previously arrested and deported from the United States on April 13, 2012, did knowingly and unlawfully re-enter the United States. He was located by federal immigration agents in Dauphin County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. It is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Marianna, Pennsylvania, Resident Sentenced on Bank Robbery ChargeRead the Press Release
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WHEELING, WEST VIRGINIA — A 32 year old Marianna, Pennsylvania, resident was sentenced on April 4, 2013, in United States District Court by Chief Judge John Preston Bailey.
United States Attorney William J. Ihlenfeld, II, announced that: JESSICA CRAWFORD was sentenced to 51 months imprisonment to be followed by five years of supervised release and ordered to make restitution in the amount of $31,846. CRAWFORD entered a plea of guilty on November
30, 2012, to “Bank Robbery” for her involvement in the robbery on December 3, 2010, of the
United Bank on Three Springs Drive in Weirton, West Virginia.CRAWFORD was charged for her involvement in this and 5 other bank robberies with her then boyfriend, Rudolph Todd Haladyna, formerly of Clarksville, Pennsylvania. Haladyna has already been sentenced to 20 years imprisonment for his involvement in these robberies. CRAWFORD was the get-a-way driver in most of the robberies, which included two robberies of the Charleroi Federal Savings Bank in Bentleyville, Pennsylvania, in September, 2010, two robberies of PNC Bank in Redstone Twp., Fayette County, Pennsylvania, in October 2010 and a robbery of Huntington Bank, Cheat Lake Branch, in Morgantown, West Virginia, in November 2010.
CRAWFORD was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorneys Robert H. McWilliams, Jr. and investigated by the Federal Bureau of Investigation, the West Virginia State Police and the Weirton Police Department.
Manhattan U.S. Attorney Files Mortgage Fraud Lawsuit Against Golden First Mortgage Corp. and David Movtady for Fraudulently Certified LoansRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Helen R. Kanovsky, General Counsel of the U.S. Department of Housing and Urban Development (“HUD”), and David A. Montoya, Inspector General of HUD, announced today that the United States has filed a civil mortgage fraud lawsuit against GOLDEN FIRST MORTGAGE CORP. (“GOLDEN FIRST”), and its owner, operator, and president, DAVID MOVTADY. The Government’s Complaint seeks damages and civil penalties under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”) for years of misconduct in connection with GOLDEN FIRST’s participation in the Federal Housing Administration’s (“FHA’s”) Direct Endorsement Lender Program. The Complaint alleges that GOLDEN FIRST and MOVTADY intentionally, knowingly, and recklessly approved loans since 2002 that should never have been federally insured.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Golden First and David Movtady churned out bad loans and lied about their compliance with HUD requirements, leaving taxpayers on the hook for millions of dollars when the loans inevitably defaulted. This Office continues its work to hold the perpetrators of mortgage fraud accountable, as this latest complaint demonstrates.”
HUD General Counsel Helen R. Kanovsky said: “Our program depends on lenders properly originating FHA loans and certifying their compliance with our rules. Today’s complaint should send an unmistakable message that we will use the False Claims Act to protect working families and FHA’s insurance fund from allegedly unscrupulous lenders.”
HUD Inspector General David A. Montoya said: “The alleged utter disregard and willful failure to abide by the standards set by the FHA make this one of the worst examples of mortgage fraud that I have seen since becoming Inspector General. My office will continue its dedicated efforts to protect the integrity of FHA’s mortgage insurance program. Safeguarding HUD’s programs from exploitation and ensuring that they are managed with honesty, competency, and stewardship is our commitment to the public we serve.”
The following allegations are based on the Complaint filed today in Manhattan federal court:
GOLDEN FIRST was a participant in the Direct Endorsement Lender Program – a federal program administered by FHA – from 1989 until 2010. MOVTADY was the owner, president, and operator of GOLDEN FIRST from 1979 until 2010. As a Direct Endorsement Lender, GOLDEN FIRST had the authority to originate, underwrite, and certify mortgages for FHA insurance. If a Direct Endorsement Lender approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD for the costs associated with the defaulted loan, which HUD must then pay.
Under the Direct Endorsement Lender program, HUD relies on lenders to properly review, underwrite, and certify loans before they are endorsed for FHA insurance. Direct Endorsement Lenders are required to follow HUD’s program rules, including certifying mortgages and maintaining a quality control program that can prevent and correct any deficiencies in their underwriting. The quality control program requirements include maintaining a program independent of the lender’s business units; disclosing to HUD, within 60 days of initial discovery, all loans containing evidence of fraud or other serious underwriting problems; and conducting a full review of all loans that go into default within the first six payments GOLDEN FIRST and MOVTADY failed to comply with all three of these basic requirements.
Since 2002, GOLDEN FIRST and MOVTADY failed to maintain a quality control program independent of the company’s business units even though HUD expressly warned the company in 2005 that its quality control plan failed to conform to HUD requirements. Closing and selling loans trumped quality control, as GOLDEN FIRST employees closed loans at rates inconsistent with any semblance of due diligence, paid employees to expedite loan approvals, and spent minimal time on underwriting. GOLDEN FIRST and MOVTADY also did not meet their obligation to disclose to HUD all loans containing evidence of fraud or other serious underwriting problems. The defendants failed to pass on to HUD any such reports even though the default rate on the company’s loans exceeded 75% in 2008 and the company’s contractor advised it of significant deviations from HUD guidelines. In addition, GOLDEN FIRST and MOVTADY failed to conduct a full review of loans that defaulted within the first six payments, even though in 2008 nearly one of every three loans underwritten by GOLDEN FIRST defaulted shortly after closing. Notwithstanding these failures, MOVTADY fraudulently certified that GOLDEN FIRST “conforms to all HUD-FHA regulations necessary to maintain its HUD-FHA approval.”
In addition, GOLDEN FIRST and MOVTADY engaged in a regular practice of originating and underwriting FHA loans that GOLDEN FIRST and MOVTADY knew should have never been approved. GOLDEN FIRST certified that more than a thousand FHA loans met HUD’s requirements and were eligible for FHA insurance. In some instances, MOVTADY personally performed the underwriting and provided false certifications that the loans conformed to HUD’s requirements. Despite these certifications, GOLDEN FIRST and MOVTADY knew that the company’s underwriters routinely failed to perform basic due diligence, failed to verify information in the loan file that bore directly on the borrower’s ability to make payments on the mortgage, and repeatedly certified mortgage loans that contained serious defects and departures from HUD’s underwriting standards. The extremely poor quality of GOLDEN FIRST’s loans stemmed from GOLDEN FIRST’s and MOVTADY’s determination to increase volume and profits irrespective of the quality of the loans being originated.
As a result of GOLDEN FIRST’s and MOVTADY’s refusal to truthfully advise HUD of its failures to comply with HUD requirements, their false certifications to HUD, and their approval of loans that should never have been approved, FHA has paid more than $12 million in insurance claims on loans underwritten by GOLDEN FIRST and MOVTADY since July 2007. Claims for millions of additional dollars in defaulted loan obligations have not yet been, but likely will be submitted to HUD, and will likely result in additional Government expenditures stemming from defendants’ fraud.
The Complaint seeks treble damages and penalties under the False Claims Act, as well as FIRREA penalties for millions of dollars in insurance claims already paid by HUD for mortgages wrongfully certified by GOLDEN FIRST and MOVTADY. In addition, the United States seeks compensatory damages under the common law theories of gross negligence, negligence, and breach of fiduciary duty for the millions of dollars in insurance claims that HUD has paid, and expects to pay in the future, for mortgages wrongfully certified by GOLDEN FIRST and MOVTADY.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating financial fraud, including mortgage fraud.
The Civil Frauds Unit works in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Mr. Bharara thanked HUD and HUD-OIG for its assistance in this case. He also expressed his appreciation for the support of the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington, D.C.
Assistant U.S. Attorneys Lara K. Eshkenazi and Lawrence H. Fogelman are in charge of the case.
U.S. v. David Movtady and Golden First, Corp. Complaint
Manhattan U.S. Attorney Announces Bribery Charges Against New York State Assemblyman Eric Stevenson in Connection with Alleged Scheme to Sell Legislation for CashRead the Press Release
Second Assemblyman Cooperated in the Investigation and Has Agreed to Resign
Preet Bharara, United States Attorney for the Southern District of New York, and Robert T. Johnson, the District Attorney for Bronx County, announced today the unsealing of a Complaint charging New York State Assemblyman ERIC STEVENSON with accepting bribes in exchange for official acts. STEVENSON is charged with taking more than $22,000 in bribes from IGOR BELYANSKY, ROSTISLAV BELYANSKY (a/k/a “SLAVA”), IGOR TSIMERMAN, and DAVID BINMAN, all of whom are also charged, in exchange for STEVENSON’s official acts, which include drafting, proposing, and agreeing to enact legislation. Specifically, BELYANSKY, SLAVA, TSIMERMAN, and BINMAN, who were interested in operating and constructing adult day care centers in the Bronx, allegedly paid STEVENSON to sponsor, and ultimately cause to be enacted, legislation that would declare a three-year moratorium on the construction of adult day care centers in New York City, but from which their current centers would be exempted. In connection with one of the defendants’ adult day care centers on Jerome Avenue in the Bronx (the “Jerome Avenue Center”), STEVENSON is also alleged to have used his office to facilitate the issuance of a certificate of occupancy and the installation of a gas line. In addition, he is alleged to have held events in his official capacity to recruit senior citizens to attend a second center on Westchester Avenue in the Bronx (the “Westchester Avenue Center”). Four of the defendants were arrested this morning and the fifth, TSIMERMAN, self-surrendered . All of the defendants will be presented in Manhattan federal court later today.
Manhattan U.S. Attorney Preet Bharara said: “For the second time in three days, we unseal criminal charges against a sitting member of our state legislature. As alleged, Assemblyman Eric Stevenson was bribed to enact a statutory moratorium to give his co-defendants a local monopoly – a fairly neat trick that offends core principles of both democracy and capitalism, simultaneously, and it is exactly what the defendants managed to do. The allegations illustrate the corruption of an elected representative’s core function – a legislator selling legislation. And based on these allegations, it becomes more and more difficult to avoid the sad conclusion that political corruption in New York is indeed rampant and that a show-me-the- money culture in Albany is alive and well.”
Bronx County District Attorney Robert T. Johnson said: “The conduct alleged in these charges can only shake public confidence in those who have been entrusted to govern and deliver taxpayer funded services fairly and honestly. What is most disturbing here is that an elected official allegedly acted not only to personally enrich himself, but was willing to limit the community’s access to a needed service by advancing legislation designed to effectively bar any other providers of day care for seniors from operating in a specified geographical area.
While it is our hope that every prosecution of this type should help drive home the message that honest, hard-working citizens will not tolerate elected officials who serve themselves rather than the members of the communities who put them into office, the message is sometimes ignored. These bribes allegedly were solicited even with the knowledge of successful past prosecutions of a long list of corrupt politicians. If there is any good news regarding today’s arrests, it is that talented investigators, such as those in my office and the U.S. Attorney’s office, will continue to do everything possible to bring alleged betrayals of the public trust to light and those responsible to justice.”
According to the Complaint unsealed today in Manhattan federal court:
STEVENSON has served as a member of the New York State Assembly since 2011 representing District 79, which includes various neighborhoods in the Bronx. ASSEMBLYMAN-1 is another member of the New York State Assembly who has been cooperating in this investigation since January 2012. ASSEMBLYMAN-1 has been charged with multiple felonies in a sealed Indictment in Bronx County Supreme Court (the “Bronx Indictment”), but has entered into a non-prosecution agreement under which he has agreed to continue to cooperate and to resign his office with the New York State Assembly. BELYANSKY, SLAVA, TSIMERMAN, and BINMAN are individuals who, during 2012 and 2013, were seeking to open and manage adult day care centers in the Bronx, New York, including the Westchester Avenue Center, within STEVENSON’s Assembly District and the Jerome Avenue Center, within ASSEMBLYMAN-1’s District. During that time period, they made multiple bribe payments to STEVENSON and ASSEMBLYMAN-1, who was cooperating with the government at the time, in connection with efforts to open and operate both centers.
For example, at a meeting on July 23, 2012, STEVENSON, BELYANSKY, and TSIMERMAN discussed the opening of the Westchester Avenue Center. During this meeting, STEVENSON said that on the following Thursday, July 26, 2012 he was “having a night [event]” for “my reelection” and that [he needed] the support and help like everyone else.” Subsequently, on July 25, 2012, SLAVA provided a cooperating witness (the “CW”) with a check for $2,000 made out to STEVENSON’s political action committee, which the CW provided to STEVENSON.
At a September 7, 2012 meeting at a steakhouse in the Bronx, BELYANSKY and SLAVA offered to pay STEVENSON $10,000 in exchange for calling Con Edison to expedite the installation of a gas line and assisting with obtaining a Certificate of Occupancy from the New York City Buildings Department at the Jerome Avenue Center, and for assistance recruiting senior citizens to attend the Westchester Avenue Center. STEVENSON agreed, but when BELYANSKY attempted to hand him the $10,000 in an envelope, STEVENSON indicated that he was concerned that there might be surveillance cameras in the restaurant, so the transaction was conducted outside. On September 18, 2012, STEVENSON gave the CW a $1,500 cut of the $10,000 bribe in exchange for the CW’s assistance, and promised to pay the CW an additional $500.
On December 27, 2012, the CW met with STEVENSON and showed STEVENSON a copy of an email dated December 26, 2012, sent from the contractor for the Jerome Avenue Center to SLAVA and TSIMERMAN. In the email, the contractor stated that “[i]t is urgent . . . that we call the State Senator Eric Stevenson so that he can call the building department at once and ask them to have this application reviewed” in connection with getting “a permit to install the gas lines into the building.” After reviewing this email, STEVENSON stated, “he’s not a smart guy . . . he’s not too bright, this guy” because “he put this in writing . . . why he got to put my name in it? . . . He shouldn’t have said that.” STEVENSON said they needed to avoid creating a “paper trail.”
During that meeting, the CW and STEVENSON also discussed the possibility of STEVENSON introducing legislation that would establish a temporary moratorium on the construction and/or opening of new adult day care centers (the “Moratorium Legislation”), which would have the effect of eliminating competition with the Jerome Avenue Center and the Westchester Avenue Center, thereby substantially increasing the profits earned by those two centers. STEVENSON told the CW: “All you gotta do is tell me what you want in the bill, and the bill drafter will put it together…I just need you to tell me what they [the co-defendants] want; we prepare the bill . . . . You can write down the language, basically what you want.” STEVENSON then asked: “Are Igor [BELYANSKY] and them putting together a nice little package [of money] for me, huh?” He said: “I got my inauguration I gotta take care of, I got a lot of sh*t man.” STEVENSON then said to the CW, in reference to the legislation, “I’m telling you, it’s done. It’s no problem.” Subsequently, the CW met with TSIMERMAN and BELYANSKY. TSIMERMAN said that as a result of the Moratorium Legislation, the value of their adult day care centers was “gonna skyrocket. . . . As long as [there’s a] moratorium, I can guarantee you at least a triple [in profits].”
On January 1, 2013, the CW and STEVENSON spoke on the telephone and STEVENSON referred to “Igor” [BELYANSKY] as “Santa,” in reference to the money he expected to receive. In a subsequent meeting on the same day in the CW’s car, STEVENSON sought assurances that “Igor” [BELYANSKY] was going to “bless everything,” meaning pay STEVENSON. He added that: “I got the inauguration, I want a blessing [payment] in place, man.” Two days later, the CW gave BELYANSKY and SLAVA a copy of a document titled “Proposed Adult Day Care Center Bill,” which contained a proposal for the Moratorium Legislation. On January 7, 2013, the CW provided the same proposal to STEVENSON. Later that day, TSIMERMAN provided STEVENSON with another copy of the proposal containing TSIMERMAN’s notes. On January 9, 2013, the CW told BELYANSKY that STEVENSON wanted $10,000 for the Moratorium Legislation, with $5,000 paid up front. Two days later, on January 11, 2013, at the Westchester Avenue Center, BELYANSKY, SLAVA, TSIMERMAN, and BINMAN gave the CW $5,000 cash. The CW then left the Westchester Avenue Center with the envelope of money and got in his car where STEVENSON joined him, at which time the CW gave the envelope of money to STEVENSON, after taking out his $500 cut.
On January 27, 2013, STEVENSON met with the CW and told the CW that he was concerned that TSIMERMAN might be cooperating with law enforcement officials and recording their conversations. STEVENSON expressed a concern that if “they bring me down… somebody’s going to the cemetery.”
STEVENSON had a draft of the Moratorium Legislation prepared by January 31, 2013 which he showed the CW at a meeting in his office and which was consistent with the bullet points. On February 11, 2013, STEVENSON told the CW: “We got the bill [the Moratorium Legislation] back today . . . [t]he bill is done now, it’s going out to the members . . . to the committee and . . . we’re gonna . . . try to push it to get it to the floor.” On February 16, in a hotel room in Albany, SLAVA gave $5,000 in cash to the CW, which the CW gave to STEVENSON after taking a $500 cut. While the CW took out his $500 cut, STEVENSON walked into the bathroom of the CW’s room and left the door open so that he could receive the $4,500 cash in the bathroom.
STEVENSON introduced and sponsored Bill Number A05139, which places a temporary moratorium on the construction and/or opening of new adult day care centers within New York City on February 20, 2013 and it is currently pending before the New York State Assembly’s Committee on Aging. Two days later, in a meeting between the CW and BELYANSKY, TSIMERMAN and BINMAN, BELYANSKY said that the legislation would double the value of his share in the Jerome Avenue and Westchester Avenue Centers from approximately $350,000 to $700,000.
In the course of recorded conversations between STEVENSON and the CW, STEVENSON repeatedly referenced the convictions and sentences of other New York officials for corruption crimes, even as STEVENSON himself requested bribe payments. For example, during one meeting between STEVENSON and the CW on December 27, 2012, STEVENSON observed, “if half of the people up here in Albany was ever caught for what they do . . . they . . . would probably be in [jail] . . . so who are they bullsh**ing?” During the same meeting, STEVENSON and the CW discussed the sentences imposed on New York City Councilman Miguel Martinez, New York State Senator Efrain Gonzalez, and New York State Senator Carl Kruger. During another meeting, on January 1, 2013, after discussing the convictions of former New York State Senator Carl Kruger, former New York State Senator Pedro Espada, Jr., and former New York State Comptroller Alan Hevesi, STEVENSON commented on being “careful” about “the recorders and all those things” that informants wear in order to be careful not to “put yourself in jail.”
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are attached.
Mr. Bharara praised the work of the investigators from the United States Attorney’s Office for the Southern District of New York and the District Attorney’s Office for Bronx County.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Krieger and Brian A. Jacobs and Special Assistant United States Attorney Elizabeth A. Brandler of the Bronx County District Attorney’s Office are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Eric Stevenson et al Complaint
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Charges Against Seven Individuals for Conspiring to Commit Securities Fraud and ExtortionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of charges against ALEXANDER GOLDSHMIDT, ALEX PUZAITZER, MICHAEL VAX, PAUL ORENA, YITZ GROSSMAN, EFIM AKSANOV, and STEVE KOIFMAN for their roles in a conspiracy to commit securities fraud and the extortion of a co-conspirator whom they believed owed them money and stock related to the scheme. Together, the defendants worked to fraudulently inflate the prices and trading volumes of publicly traded stock of small companies, also known as “penny stocks,” and then to sell shares of the stock at the fraudulently inflated prices to the investing public for a profit. GOLDSHMIDT, PUZAITZER, VAX, ORENA and GROSSMAN were arrested this morning in connection with today’s charges and were presented in Manhattan federal court before Magistrate Judge Kevin Nathaniel Fox this afternoon. EFIM AKSANOV and STEVE KOIFMAN were arrested in Florida and presented in federal court in the Southern District of Florida.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants preyed on unsuspecting investors by manipulating the share price of a publicly traded stock in a classic ‘pump and dump’ scheme that they thought would reap big dividends. But when their pot of gold failed to materialize, they allegedly turned on a co-conspirator with threats and extortion, showing that their greed was strong enough to make them turn to violence.”
FBI Assistant Director-in-Charge George Venizelos said: “Pump and dump schemes depend on unwitting investors who are deceived by grossly inflated claims about the stocks they are induced to buy. One group of victims in this case was those defrauded investors. But this was not white collar crime in the traditional sense. Another victim was the co-conspirator who, as alleged, was repeatedly threatened by the defendants with grievous harm to him and his family.”
The following allegations are based on the Complaint unsealed today in Manhattan federal court:
From 2012 through March 27, 2013, GOLDSHMIDT, PUZAITZER, VAX, ORENA, GROSSMAN, AKSANOV, and KOIFMAN conspired to commit securities fraud. As part of their “pump and dump” scheme, various defendants acquired control of a large block of shares of Face Up Entertainment Group, Inc. (“FUEG”), and then inflated the stock price and trading volume of FUEG before selling, or “dumping,” those shares at inflated prices to unsuspecting traders for a profit. FUEG was a publicly traded company that was purportedly involved in the reality gaming social network market with its principal place of business located in Valley Stream, New York. As captured through judicially authorized wiretap interceptions, the defendants coordinated control over a significant portion of FUEG shares and then promoted the stock through the dissemination of false press releases sent over the Internet. In addition, the defendants coordinated trading of FUEG shares to create the impression of increased trading volume to make FUEG appear to be an attractive purchase for unsuspecting investors. However, the defendants were unable to reap a profit from trading FUEG stock timed to the promotions, and their scheme ultimately failed.
As a result of the failed promotion of FUEG stock, GOLDSHMIDT, PUZAITZER, VAX, ORENA, GROSSMAN, AKSANOV, and KOIFMAN conspired to extort one of their co-conspirators, referred to as “CC-1” in the Complaint. In the summer of 2012, AKSANOV, KOIFMAN, GOLDSHMIDT and PUZAITZER met with CC-1 in New York, New York, and demanded that CC-1 pay them $350,000 and return shares of FUEG, or AKSANOV would “put slugs into” CC-1’s chest. In several subsequent telephone calls and meetings, various defendants continued to demand that CC-1 repay them for their stake in the failed FUEG scheme, or they would harm CC-1. During a meeting on or about March 5, 2013, GOLDSHMIDT, PUZAITZER, ORENA and VAX met with CC-1 at a hotel in New York City and further threatened CC-1 and CC-1’s family if CC-1 did not comply with their demands.
GOLDSHMIDT, PUZAITZER, VAX, ORENA, GROSSMAN, AKSANOV, and KOIFMAN are each charged with one count of conspiracy to commit securities fraud, which carries a maximum penalty of five years in prison, and one count of conspiracy to commit extortion, which carries a maximum penalty of 20 years in prison.
Mr. Bharara praised the efforts of the FBI’s Eurasian Organized Crime Squad and thanked the FBI for its work on the case. Mr. Bharara also thanked the Securities and Exchange Commission for its assistance on the case.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Jennifer E. Burns and Jason A. Masimore are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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U.S. v. Alexander Goldshmidt, et al Complaint
Man Sentenced to 16 Years in Prison for Selling Stolen Weapons and Explosives in Exchange for Drugs and MoneyRead the Press Release
RENO, Nev. – A man who sold an undercover detective stolen firearms, stolen explosives, and a stolen police officer’s badge, in exchange for methamphetamine and cash, has been sentenced to just over 16 years in federal prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Michael Alan Doiel, 44, currently in federal custody, but most recently a resident of Stagecoach, Nev., was sentenced by U.S. District Judge Howard D. McKibben on Wednesday, April 3, 2013, to 195 months in prison and five years of supervised release. Doiel pleaded guilty on Dec. 20, 2012, to possession with intent to distribute 50 grams or more of methamphetamine and possession of stolen explosives that had been transported in interstate commerce.
“As this sentence indicates, if you get caught selling stolen explosives and firearms, you face prosecution by the federal government and a very lengthy sentence of imprisonment with no parole,” said U.S. Attorney Bogden. “We will continue working proactively and aggressively with our local, state and federal law enforcement partners, to capture dangerous individuals who are committing this type of crime and in preventing guns and explosives from landing in the hands of criminals or persons with mental health problems. I would like to thank the Reno Regional Street Enforcement Team and the Northern Nevada Project Safe Neighborhoods Task Force for their efforts in keeping our community safe.”
According to court records, on Dec. 16, 2011, local police officers assigned to the Regional Street Enforcement Team (SET), a collaborative law enforcement unit comprised of officers from the Reno Police Department, Sparks Police Department, Washoe County Sheriff’s Office, and the University of Nevada Police Department, received information that Michael Doiel was attempting to sell stolen weapons and explosives material in exchange for methamphetamine and cash. On that date, an undercover detective contacted Doiel and spoke to him about purchasing weapons and explosives. That afternoon, Doiel met the undercover detective at a Reno location and sold the detective four stolen firearms, including two handguns and two semi-automatic rifles, a package of stolen C4 explosive and a stolen police officer’s badge, in exchange for three ounces of methamphetamine and $1,500. Doiel was taken into custody immediately after the transaction by other law enforcement officers who were monitoring the scene.
Doiel has three prior felony convictions, including possession of a controlled substance, attempted possession of stolen property and grand larceny.
The case was prosecuted by Assistant United States Attorney William R. Reed and investigated by the Reno Regional Street Enforcement Team. Additionally, the case was screened through the Northern Nevada Project Safe Neighborhoods Task Force, a team of federal and local law enforcement officers and prosecutors who meet on a regular basis to discuss arrests involving guns and explosives. Project Safe Neighborhoods, also known as PSN, is a Department of Justice initiative and a nationwide commitment to reduce gun and gang crime in America.Justice Department Reaches Multiple Settlements with Health Care Providers to Stop Discrimination Against Persons with Hearing DisabilitiesRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, over the past year it has reached seven settlements with eight health care providers from across the United States to ensure that they are providing effective communication to people who are deaf or have hearing disabilities. These settlements address the requirements of the Americans with Disabilities Act (ADA) for health care providers, such as hospitals, medical clinics, nursing homes and doctor’s offices, to provide effective communication to people who are deaf or have hearing disabilities in the provision of medical services.
The Department of Justice’s Barrier-Free Health Care Initiative is a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorney’s offices. Six of the seven settlements were obtained by the U.S. Attorney’s Offices. The settlement obtained by the department’s Civil Rights Division covers two facilities.
The seven settlements from the past year are:
- April 2012 - Richard Noren, M.D., Henry Kurzydlowski, M.D. and Pain Care Consultants Inc ., in the Northern District of Illinois and
- May 2012 - Steven Senica, M.D., and Senica Bruneau, in the Northern District of Illinois;
- June 2012 - Northshore University HealthSystem in the Northern District of Illinois;
- November 2012 - Dr. Paul S. Biedenbach & Northern Ohio Medical Specialists Healthcare in the Northern District of Ohio;
- January 2013 - The Center for Orthopaedic and Sports Medicine in the Eastern District of Virginia;
- March 2013 - Manassas Health and Rehabilitation Center and Gainesville Health and Rehabilitation Center, both in the Eastern District of Virginia;
- March 2013 - Monadnock Community Hospital in the District of New Hampshire
“Disability-based discrimination in health care is illegal under the Americans with Disabilities Act and will not be tolerated,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “All types of health care providers – from hospitals to nursing homes, from surgeons to general practitioners – all across the country – need to provide equal access to people with disabilities, including people who are deaf. More than 20 years after passage of the ADA, the time for compliance is now.”
In addition to the department’s settlements, in early March, the U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) reached a settlement agreement with Genesis HealthCare, one of the nation’s largest providers of senior care with over 400 facilities, to provide sign language interpreters and other means of effective communication to individuals who are deaf or hard of hearing.
OCR Director Leon Rodriguez noted “My office continues its enforcement activities and work with providers, particularly large health care systems like Genesis, to make certain that compliance with nondiscrimination laws is a system wide obligation.”
Title III of the ADA requires health care providers to ensure that their communications with people with hearing disabilities are as effective as their communications with people without disabilities. To meet this obligation, health care providers, as well as other public accommodations, must provide auxiliary aids and services unless doing so would cause an undue burden to the facility or fundamentally alter the service being provided. Although handwritten notes or typed text can be an appropriate auxiliary aid for simple communications, in complex health care-related communications, a qualified sign language interpreter may be required. The individual with a disability cannot be charged extra for the cost of an interpreter or other auxiliary aid.
The Justice Department found that at each of the eight facilities, a person who is deaf sought to access health care services and was denied a needed sign language interpreter, resulting in discrimination on the basis of disability. By not providing a sign language interpreter or otherwise communicating effectively with the individuals who are deaf, the facilities and doctors were compromising the overall health of their patients.
In the Monadnock Community Hospital settlement, the complainant went to the emergency department at the hospital for treatment for an allergic reaction that caused her to have difficulty breathing. Upon entering the hospital she requested a sign language interpreter by presenting an Emergency Interpreter Referral Card. Despite this request, hospital staff attempted to use the complainant’s 11-year-old daughter as an interpreter. The complainant repeatedly asked for an interpreter during her time in the ER, where she was administered medical procedures. She was eventually discharged, and although she was provided with discharge paperwork, she alleged she had no understanding of what was done to her, and had no understanding of the discharge document.
In the Center for Orthopaedic and Sports Medicine settlement, the patient, who is deaf, repeatedly requested an interpreter for multiple medical and physical therapy appointments related to a back injury. The orthopedic practice told the patient it was her responsibility to provide an interpreter and did not provide her with an interpreter at any of her appointments. Similarly, in the Northern Ohio Medical Specialists matter, the complainant, who is deaf and communicates using American Sign Language (ASL), sought medical care and requested an interpreter, but Northern Ohio Medical Specialists refused to provide an interpreter for her at her appointment, citing company policy.
In the Northshore University HealthSystem matter, R.A., who is deaf, was the primary caretaker of his 80-year-old mother S.A. On three separate occasions, for an emergency room visit and two hospitalizations, R.A. and S.A. requested a sign language interpreter so R.A. could communicate with the hospital’s medical personnel about his mother’s condition. R.A. was told that the hospital does not provide interpreters to family members of patients who are not hearing impaired.
Under each settlement agreement, the health care provider agreed to change their policies to provide effective communication, including sign language interpreters, free of charge, and to train all staff on their new policies and procedures and the effective communication requirements of the ADA. Under the terms of the agreements with Monadnock Community Hospital, the Center for Orthopaedic and Sports Medicine, the Northshore University Health Specialists, Senica Bruneau and Noren, monetary damages were paid to the complainants. In the Northshore University HealthSystem and the Northern Ohio Medical Specialists settlements, the health care providers agreed to pay a civil penalty to the United States. Under the ADA a civil penalty of up to $55,000 may be assessed against a healthcare provider or other entity that violates the ADA.
The Barrier-Free Health Care Initiative addresses access to health care for people with hearing disabilities and for people with HIV, as well as physical access to health care facilities. Earlier this year the Civil Rights Division and U.S. Attorney’s offices reached four settlement agreements regarding access to medical care for people with HIV in just five weeks.
The department has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, www.ada.gov/hospcombr.htm, and publications specific to health care providers, HIV discrimination, and effective communication with people with hearing and vision disabilities, as well as publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov. The seven Barrier-Free Health Care Initiative settlements may be found at www.ada.gov/settlemt.htm. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Jonathan Laporte Sentenced for 2012 Robbery of Mandeville BankRead the Press Release
JONATHAN LAPORTE, age 27, of Covington, Louisiana, was sentenced today by U. S. District Judge Eldon E. Fallon to 100 months imprisonment for the January 13, 2012, robbery of a Citizens Bank and Trust in Mandeville, Louisiana, announced U. S Attorney Dana Boente.
The charge resulted from an investigation by the Mandeville Police Department and Federal Bureau of Investigation following the January 13, 2012, robbery of the Citizens Bank and Trust branch located in Mandeville. During the robbery, LAPORTE brandished a weapon that appeared to be a firearm but was later determined to be a BB gun. While inside the bank, through force and intimidation, LAPORTE obtained approximately $12,777 in bank funds. Upon exiting the bank, LAPORTE briefly eluded responding police units and caused a high speed chase that resulted in property damage to multiple vehicles. LAPORTE was apprehended after crashing his vehicle and suffering minor injuries. The money stolen from the bank was recovered from LAPORTE’s vehicle along with the BB gun.
In addition to the term of imprisonment, Judge Fallon sentenced LAPORTE to 5 years of supervised release following the term of imprisonment. During the 5 year term, the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release. Judge Fallon also ordered LAPORTE to pay restitution to the victims who suffered property damage as a result of LAPORTE’s reckless flight from responding police officers.
This prosecution was the result of an investigation conducted by special agents of the Federal Bureau of Investigation and officers and detectives of the Mandeville Police Department.
The prosecution has been handled by Supervisory Assistant U. S. Attorney William J. Quinlan, Jr., Supervisor of the U. S. Attorney’s Violent Crime Unit.
Joint Statement on the Meeting Between Attorney General Eric Holder and European Commission Vice President Viviane RedingRead the Press Release
U.S. Attorney General Eric Holder and European Commission Vice President Viviane Reding met today in Washington, D.C. They had cordial discussions on a wide range of fields of collaboration between the Department of Justice and the European Commission.
Among the topics discussed were victims’ rights, rights of persons with disabilities and the need to protect children against online predators. Attorney General Holder referred to the experience both of the department’s Office for Victims of Crime and the Disability Rights Section of the department’s Civil Rights Division. Attorney General Holder and Vice President Reding welcomed the opportunity for a meeting of experts in this regard. Both Attorney General Holder and Vice President Reding also noted the important role that Eurojust, the European Union’s Judicial Cooperation Unit, has taken in coordinating highly successful multilateral investigations, including investigations of online child predators, and both committed to ensuring the continuation of such collaboration through Eurojust.
The meeting concluded with a discussion of the ongoing negotiations for a data protection agreement covering police and judicial information. They noted the importance attached on both sides of the Atlantic to providing a high level of personal data and privacy protection for all individuals. Attorney General Holder and Vice President Reding expressed appreciation for the ongoing and positive dialogue between U.S. and EU experts on protecting and sharing data on the basis of a commonly agreed framework. Each noted recent progress made, and both sides were optimistic in reiterating their determination to finalize negotiations as rapidly as possible.
Johnston Man Sentenced to Four Years in Federal Prison on Firearms and Drug Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Anthony Cucinotta, 28, of Johnston, R.I., was sentenced in U.S. District Court in Providence today to 48 months in federal prison and fined $5,000 for growing marijuana in his home with the intent to sell it, and being a felon in possession of a semi-automatic pistol and an assault rifle, announced United States Attorney Peter F. Neronha and Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Boston Field Office.
U.S. District Court Judge William E. Smith also ordered Cucinotta to serve 3 years of supervised release upon completion of his prison term. Cucinotta pleaded guilty on October 23, 2012, to one count of possession of marijuana with the intent to distribute and two counts of being a felon in possession of a firearm. Cucinotta had previously been convicted in Rhode Island state court of a felony offense punishable by a term of imprisonment of greater than one year.
At the time of his guilty plea, Cucinotta admitted to the court that on November 25, 2011, he accompanied his girlfriend to a gun shop in Rhode Island where they selected two firearms for purchase, a Glock 9mm semi-automatic pistol and a Bushmaster .223 caliber military assault style rifle, and a 100 round ammunition drum magazine for the assault rifle. Cucinotta failed to disclose his previous felony conviction and told the dealer that there was no legal reason why he could not possess firearms. Cucinotta, nonetheless, had his girlfriend act as a straw-purchaser for him and complete the paperwork for the transaction. On later dates, Cucinotta admitted to an employee of the gun shop and to an ATF agent that the firearms were his.
According to information presented to the court, on February 14, 2012, ATF agents conducted a court authorized search of Cucinotta’s home and seized the Glock 9mm semi-automatic pistol, twenty-one marijuana plants, and items used in the packaging and sale of marijuana. Cucinotta had previously turned the assault rifle over to an employee of the gun store, who, at the request of ATF, led Cucinotta to believe that the weapon may be defective. The assault rifle was never returned to Cucinotta.
Cucinotta made an initial appearance in U.S. District Court on February 17, 2012, and was freed on $10,000 unsecured bond. At today’s sentencing hearing, U.S. District Judge William E. Smith ordered Cucinotta to self-surrender by May 15, 2013, to begin serving his prison term.
The firearms and ammunition seized in this matter have been forfeited to the U.S. Government and will be destroyed.
The case was prosecuted by Assistant U.S. Attorneys Milind M. Shah, Stephen G. Dambruch and Paul F. Daly, Jr.
The matter was investigated by agents from ATF, with the assistance of the Johnston Police Department.
Contact: 401-709-5357
[email protected]Jefferson County Man Sentenced for Burglarizing BankRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 28-year-old Beaumont, Texas man has been sentenced to federal prison for burglarizing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Michael Anthony Jones pleaded guilty on Jan. 14, 2013, to bank burglary and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia Crone. Jones was also ordered to pay restitution in the amount of $2,908.50.According to information presented in court, on June 8, 2012, Jones burglarized the Chase Bank branch on Washington Blvd. in Beaumont by breaking a window while the bank was closed. Jones admitted to stealing $2,908.50 in cash from the bank. Jones was arrested in Louisiana on Aug. 2, 2012, and questioned about an unrelated charge. During questioning, he admitted to burglarizing the bank in Beaumont. Jones was indicted by a federal grand jury on Nov. 7, 2012 and charged with bank burglary.
This case was investigated by the FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Indictment: Police Watched Topeka Woman Try to Pick up Meth at Post OfficeRead the Press Release
TOPEKA, KAN. – A Topeka woman has been charged with trying to pick up a seven-pound package of methamphetamine at a post office, U.S. Attorney Barry Grissom said today.
Maria DeSocorro Martinez, 41, Topeka, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 18, 2013, in Shawnee County, Kan.
Martinez initially was charged in a criminal complaint filed March 19, 2013, in U.S. District Court in Topeka. An agent’s affidavit stated that the Topeka Police Narcotics Squad had Martinez under surveillance on March 18, 2013, when she picked up a package containing methamphetamine at the post office at 2921 Adams in Topeka.
Martinez did not know that earlier investigators had learned the package contained methamphetamine and they had obtained a search warrant. When they opened the package they found it contained seven pounds of methamphetamine.
If convicted, she faces a penalty of not less than 10 years and not more than life and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
OTHER INDICTMENTS
Michael Dean Engstrom, Jr., 33, Topeka, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Jan. 28, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.
Steven Harrison, 51, Kansas City, Kan., is charged in a superseding indictment with one count of receiving child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in November 2011 and April 2012 in Wyandotte County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the charge of receiving child pornography and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge. The FBI investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Mark David Davis, 45, Manhattan, Kan., is charged with failing to register under the Sex Offender Registration and Notification Act. The crime is alleged to have occurred from April to November 2012 in Riley County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Tony Dennis, 26, Grandview Plaza, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Feb. 3, f2013, in Geary County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Ricardo Rivera-Guiterrez, 52, Palm Dale, Calif., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Jan. 29, 2013, in Shawnee County, Kan.
If convicted, he faces a penalty of not less than 10 years and not more than life and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Indictment Alleges Illegal Reentry After DeportationRead the Press Release
Mario Tiatenco-Nolasco, a/k/a “Tiatenco Mario Nolasco,” a/k/a “Mario Nolasco,” 23, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about January 30, 2013, Tiatenco-Nolasco, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about August 27, 2010.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement (“ICE”) and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Alleges Illegal Reentry After DeportationRead the Press Release
Carlos Enrique Romero-Peguero, a/k/a “Juan Rodriguez-Perez,” 40, of Philadelphia, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about March 7, 2013, Romero-Peguero, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about August 28, 1997, April 24, 1998, January 27, 2000 and August 8, 2001.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement Removal and Enforcement Operations and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Head of New Haven-area Oxycodone Trafficking Ring Sentenced to More Than Five Years in Federal PrisonRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that MICHAEL MARCHITTO, JR., 30, of Hamden, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by five years of supervised release, for leading a New Haven-area drug ring that trafficked in oxycodone, a powerful prescription pain killer.
This matter stems from “Operation Big Blue,” a year-long investigation by the Drug Enforcement Administration’s New Haven Task Force into MARCHITTO’s oxycodone trafficking operation. The investigation included the use of court-authorized wiretaps, physical surveillance, and controlled purchases and seizures of oxycodone. Sixteen individuals were charged as a result of this investigation.
According to court documents and statements made in court, MARCHITTO and his associates were involved in the distribution of substantial quantities of oxycodone in and around New Haven. MARCHITTO and others regularly traveled, at MARCHITTO’s expense, to Florida where they obtained prescriptions for large amounts of oxycodone at unscrupulous pain clinics, commonly referred to as “pill mills.” He also arranged to have three Florida residents ship bulk quantities of oxycodone to him on a regular basis. MARCHITTO sold most of the pills that he and his associates were able to acquire to an established network of redistributors in Connecticut.
MARCHITTO was arrested on April 7, 2011. On that date he was found in possession of approximately 2,000 oxycodone pills.
On July 29, 2011, MARCHITTO pleaded guilty to one count of conspiracy to possess with intent to distribute oxycodone and one count of money laundering.
MARCHITTO also has forfeited a 2010 Acura TL that he purchased using approximately $44,000 in drug proceeds.
This matter was investigated by the DEA New Haven Task Force, including personnel from the New Haven, West Haven, Ansonia, Meriden, Hamden, Branford, and Wallingford Police Departments, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Patrick Caruso and Douglas Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Guilty Pleas Entered in Counterfeit DVD/CD RingRead the Press Release
William Joseph Henneberger, 32, Ruth Gloria Henneberger, 36, Daniel Justino Diaz, 34, Vanessa Pecina, 30, Leticia Perez Aguilar, 39, Joe Silvas, 43, and Joe Cruz Hernandez, 31, have all admitted to reproducing and distributing 10 or more copyrighted works during a 180-day period. The total amount of combined losses as calculated by the Recording Industry Association of America (RIAA) and the Motion Picture Association of America (MPAA) are $690,297.67.
The convictions come as a result of a year-long investigation into the manufacture and distribution of counterfeit DVDs and music CDs in the Corpus Christi area. With the exception of Silvas, a local DJ who owned Bomb Records, the remaining six defendants were all vendors at a Corpus Christi flea market. All defendants were identified as being involved in the manufacture and distribution of counterfeit DVDs and music CDs. As a result, agents obtained federal search warrants in August 2012 for three residences and Bomb Records, all located in Corpus Christi. During the execution of the warrants, agents seized more than 58,000 pirated DVDs and CDs along with production materials including computers and DVD duplicators.
All seven convicted today face up to five years imprisonment and a fine up to $250,000 at their sentencing hearing, set for July 9, 2013.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by Homeland Security Investigations, Corpus Christi Police Department Organized Crime Unit, Kingsville Specialized Crimes Task Force, Customs and Border Protection, RIAA and MPAAding Industry Association of America and the Motion Picture Association of America. This case is being prosecuted by Assistant United States Attorney Hugo R. Martinez.
Grand Rapids Podiatrist Sentenced to Prison in Health Care Fraud SchemeRead the Press Release
GRAND RAPIDS, MICHIGAN – Anthony J. Kirk, D.P.M., 61, of Grand Rapids, Michigan, was sentenced to six months in prison, fined $15,000, and ordered to pay $65,110 in restitution for committing health care fraud, U.S. Attorney Patrick Miles announced today. Upon release from prison, Dr. Kirk will be placed on home detention for a period of five months, during which time he must remain in his residence except for employment and other activities approved in advance by his probation officer. The sentence was imposed by U.S. District Judge Janet T. Neff.
Dr. Kirk, a licensed doctor of podiatric medicine, pled guilty in November 2012 to knowingly and willfully executing a scheme to defraud the Medicare program. Dr. Kirk defrauded Medicare by repeatedly submitting false and fraudulent claims for nail avulsion services he did not actually perform on his patients. A nail avulsion is a surgical procedure that involves the separation and removal of the entire nail, or a border of the nail, from the nail bed to the layer of epidermis extending over the base of a nail. Dr. Kirk admitted billing the surgical procedure when in fact he only performed “routine foot care,” a service that generally is not reimbursable by Medicare. Kirk admitted that he received $65,110 in fraudulent payments from the Medicare program over several years. Dr. Kirk has paid the full amount of restitution. The $15,000 fine imposed by the Court will be paid in addition to the restitution amount.
U.S. Attorney Miles stated, “Dr. Kirk abused the trust placed in him by our community and the health care profession. This particular form of health care fraud -- billing for nail avulsions not actually performed -- is a popular scheme authorities do not tolerate. Investigating and prosecuting those who engage in fraudulent billing schemes against government health care programs is a top priority of the U.S. Attorney’s office. We are vigorously pursuing those who knowingly defraud taxpayers by falsely billing Medicare for services they have not performed for payments they are not entitled to receive.”
This case was investigated by the Health and Human Services Office of Inspector General and prosecuted by Assistant U.S. Attorney Christopher O’Connor.
END
Fruit Heights Man Charged with Violations of Tax Laws; Indictment Alleges He Took Several Steps to Evade Paying TaxesRead the Press Release
SALT LAKE CITY – An initial appearance in federal court has been scheduled for April 26, 2913, for a Fruit Heights, Utah, man charged with filing a false tax return, attempted tax evasion, and evasion of payment in an indictment returned by a grand jury in Salt Lake City.
Jon T. McBride, age 51, of Fruit Heights, charged in a five-count indictment, will appear for arraignment at 10:15 a.m. before U.S. Magistrate Judge Paul M. Warner. The indictment, returned last week, alleges one count of filing a false tax return, three counts of attempted tax evasion, and one count of evasion of payment. The alleged activity occurred from 2005 through 2010.
The first count of the indictment alleges McBride filed a false tax return for the 2005 tax year by failing to disclose approximately $109,785 in gross income he received from his partnership in The Clip Company, a Nevada company that sold cell phone belt clips. The company also was registered to do business in Utah.
The three attempted tax evasion counts relate to affirmative acts of evasion the indictment alleges McBride took to avoid paying taxes to the federal government, including the use of several nominee entities and bank accounts to hide substantial income he received and the proceeds from the sale of property he controlled. As a part of the alleged scheme, McBride instructed companies to report his earned income as having been earned by several nominee entities he controlled. He then filed false tax returns for those nominee entities failing to report the income they allegedly earned. The indictment alleges he used money in the nominee bank accounts for personal purposes.
The final count of the indictment alleges that beginning in 2006 through about April 15, 2010, McBride attempted to evade the payment of approximately $839,328 in back taxes for the tax years 1999 to 2002. The indictment alleges he committed affirmative acts of evasion, including creating nominee entities to replace him as a partner in companies; opening bank accounts in nominee names; depositing money in nominee bank accounts; transferring real property to a nominee entity; filing false tax returns and forms with the IRS; and failing to file tax returns.
The potential penalty for a conviction of the charges in the indictment is up to five years in federal prison.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by special agents of IRS Criminal Investigation.
Fort Thompson Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota man convicted of Assaulting a Federal Officer was sentenced on April 3, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Dwight Rank, age 25, was sentenced to 18 months of probation, with six months of home confinement; a $3,000 fine; and a $25 special assessment to the Victim Assistance Fund.
Rank was indicted by a federal grand jury on July 13, 2012 and pled guilty to a Superseding Information on January 22, 2013.
The charge stems from an incident occurring on January 7, 2012 wherein Rank was driving erratically and a Bureau of Indian Affairs officer observed him crossing the center line twice and the right fog line twice. The officer activated his emergency lights and siren and attempted to make a traffic stop. Rank went on a high-speed chase. Eventually Rank stopped his vehicle in the middle of BIA Road 5 and then accelerated and began to drive away. Rank made a U-turn and stuck the officer’s vehicle before fleeing the scene.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Fort Thompson Man Pleads Guilty to Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Samuel Redwater, age 22, of Fort Thompson, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 2, 2013 and pled guilty to Count I of the Indictment that charged him with Felon in Possession of a Firearm. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge stems from an incident wherein Redwater, on or about December, 19, 2012, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a firearm which had been previously shipped and transported in interstate and foreign commerce.
The investigation was conducted by the South Dakota Highway Patrol; Bureau of Alcohol, Tobacco, Firearms and Explosives; Northern Plains Safe Trails Drug Enforcement Task Force; and the Chamberlain City Police. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Redwater was remanded to the custody of the U.S. Marshal Service pending sentencing which has been set for June 11, 2013.
Former Usd Assistant Basketball Coach Thaddeus Brown Sentenced for Conspiring to Commit Sports BriberyRead the Press Release
United States Attorney Laura E. Duffy announced that Thaddeus Brown was sentenced today in federal court in San Diego by the Honorable Anthony J. Battaglia to serve 12 months in custody, followed by three years supervised release, for his role in a conspiracy to commit sports bribery. The indictment charged that Brown and others influenced the outcome of basketball games at the University of San Diego during the 2009-2010 season, and then attempted to recruit players to do the same during the 2010-2011 season. Brown pleaded guilty to the indictment on November 13, 2012. To date, eight of the ten defendants indicted have pled guilty.
According to court documents and admissions from co-defendants’ guilty pleas, Brown, who was an assistant coach at USD during the 2006-2007 season, bribed co-defendant Brandon Johnson to influence the outcome of basketball games during the 2009-2010 season while Johnson was a member of USD’s basketball team. Brown and his co-conspirators then profited by placing bets at Las Vegas casinos on games Johnson influenced. Co-defendant Steve Goria, who was sentenced to 30 months imprisonment in October 2012, admitted that the conspiracy profited more than $120,000 from the game-fixing scheme. Brown admitted in his guilty plea that during the 2010-2011 season, he solicited a current USD basketball player to influence the outcome of basketball games for bribe money.
Judge Battaglia ordered the defendant to report on June 5, 2013 to begin serving his sentence.
DEFENDANT Criminal Case No. 11CR1345-AJB Thaddeus Brown SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 - Conspiracy
INVESTIGATING AGENCYFederal Bureau of Investigation
Former Poplar Tree Elementary School Teacher Convicted on Child Pornography ChargesRead the Press Release
ALEXANDRIA, Va. – Robert Fenn, 27, of Herndon, Va., was convicted by a federal jury today of receiving and possessing child pornographyFenn was a special education teacher at Poplar Tree Elementary School in Chantilly, Va., prior to his arrest on related state charges in June 2012.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Lt. Colonel Edwin C. Roessler Jr., Acting Fairfax County Chief of Police, made the announcement after the verdict was accepted by United States District Judge James C. Cacheris.
Fenn was convicted of one count of receipt of child pornography, which carries a mandatory minimum penalty of five years and a maximum penalty of 20 years in prison; and one count of possession of child pornography, which carries a maximum penalty of 10 years in prison. Fenn was taken into custody following his conviction and will remain in custody pending his sentencing, which is scheduled for June 21, 2013.
According to court records and evidence at trial, Fenn was identified through an international initiative originated with Italian law enforcement that investigated a website offering access to child pornographic images and/or video files identified by the domain name “liberalmorality.com.” The website was hosted in the United States and HSI obtained Internet records showing each Internet account that accessed the website and the specific images each account accessed.
Fenn taught special education at Poplar Tree Elementary School in Chantilly, Va. and gave private music lessons to children in their homes. Fenn admitted an interest in girls between the ages of nine and 14, which corresponded to the ages of the victims of child pornography depicted in images and videos found on Fenn’s computers and external hard drives.
This case was investigated by HSI’s Child Exploitation Section in the Washington Field Office and the Fairfax County Police Department. 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, and Assistant United States Attorneys Lindsay Kelly and Jay Prabhu are prosecuting the case on behalf of the United States.
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.”
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Local Real Estate Broker Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO - Jerrick Hawkins was sentenced to 37 months in prison on multiple fraud charges involving a scheme to defraud lenders by submitting false information on real estate loan applications. Most of the loans made as a result of the scheme went into default because the borrowers failed to make payments on the loans, resulting in more than $2 million in losses to the U.S. and financial institutions. In addition to the prison sentence, he was also ordered to pay restitution of $2,392,237.
According to the facts stated in court during the plea, from at least 2007 until as late as September 2011, Hawkins recruited various individuals to apply for conventional and FHA loans to purchase properties in the St. Louis area. Hawkins directed borrowers to supply false employment and income information on loan applications and caused false documents to be submitted in support of the loan applications, including pay stubs, W-2s, gift letters and verification of employment forms. In order to conceal the fraud, Hawkins arranged for the verification of the false information by either directing others to verify it or by verifying it himself. He received substantial monetary payments, either directly or through third party entities, in connection with the loans made as a result of the fraud scheme.
JERRICK HAWKINS, St. Louis, MO, pled guilty in January to one felony count of bank fraud and two felony counts of making false statements. He appeared today for sentencing before United States District Judge Audrey Fleissig.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney's Office.Former Fugitive Pleads Guilty to Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA -- A man who was a fugitive for more than a year, pled guilty this morning in the United States District Court for the Western District of Virginia in Lynchburg to a variety of fraud charges.
James Gordon Fields, 47, whose last known address in unknown, pled guilty this morning to two counts of bank fraud, one count of making a false statement in relation to a loan, one count of aggravated identity theft, one count of making a false statement under oath in relation to a bankruptcy case and one count of engaging in a monetary transaction in criminally derived property of a value greater than $10,000.
Today in District Court, Fields admitted to submitting forged signatures on guarantees for loans, submitting fraudulent documentation showing he was the beneficiary of a $77 million trust, which in fact did not exist, and lying about all of the above during his bankruptcy proceedings.
Fields admitted that he forged documents in September 2007 and March 2008 that caused Wachovia bank to issue more than $14 million in fraudulent loans. In addition, he admitted that at the time of his arrest, he removed a screen from a second story window and attempted to escape capture by United States Marshals. He was eventually apprehended two houses away.
At a sentencing hearing scheduled for July 2, 2013, Fields faces a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1,000,000 on the bank fraud charges, a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1,000,000 on the false statement charge, a mandatory two-year prison term on the aggravated identity theft charge, a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000 on the bankruptcy charge and a maximum possible penalty of up to 10 years in prison and/or a fine of up to $250,000 on the monetary transaction charge.
The investigation of the case was conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and the United States Marshal’s Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Former Federal Contractor to Serve Seventy-Eight Months in Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Lawrence Lucero, 65, of Tucumcari, N.M., was sentenced this morning to 78 months in prison followed by 15 years of supervised release for his federal child pornography conviction. Lucero’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and George Opfer, Inspector General for the Department of Veterans Affairs (VA).
Lucero was charged in July 2012 in a five-count indictment with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct and two counts of possession of matter containing visual depictions of minors engaged in sexually explicit conduct. The indictment charged Lucero with receiving and possessing child pornography between March 2012 and May 2012 in Rio Arriba and San Miguel Counties, N.M. During that time, Lucero was employed as a social worker by a company that provided healthcare staff at the Veterans Affairs Community-Based Outpatient Clinics in Las Vegas and Espanola, N.M., under a contract with the VA.
Lucero entered a guilty plea to the indictment in December 2012, without the benefit of a plea agreement. Lucero admitted that in March 2012, the VA began an investigation into concerns that computers on the VA network were being used to access child pornography. The investigation led to Lucero, who admitted to agents that he had accessed the sites and downloaded child pornography images.
Lucero has been in federal custody since his arrest in July 2012. After completing his prison sentence, Lucero will be required to register as a sex offender.
The case was investigated by the Office of Inspector General of the Department of Veterans Affairs and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former Deep River Resident Admits Mortgage Fraud OffensesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that JOHN J. DORAN, 63, of Niantic, formerly of Deep River, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of making false statements to influence a bank in connection with a mortgage application.
According to court documents and statements made in court, in May 2007, DORAN applied to Bank of America for a mortgage to purchase a condominium in New Haven. In connection with the application, DORAN submitted a false individual tax return that indicated that his adjusted gross income for 2004 was $464,197 when, in fact, the actual 2004 tax return DORAN filed with the Internal Revenue Service showed an adjusted gross income of -$69,298. DORAN also submitted a fictitious sale contract for his personal residence in Deep River and a false bank statement.
In pleading guilty, DORAN also admitted that, in March 2005, he submitted a false individual tax return in connection with a $500,000 refinance loan application with JP Morgan Chase. The tax return indicated that his adjusted gross income for 2003 was $296,735 when, in fact, his actual 2003 tax return showed an adjusted gross income of -$81,911. DORAN also admitted that, in March 2007, he submitted false individual 2003 and 2004 tax returns in connection with a loan application to Wachovia Dealer Services to finance the purchase of a yacht.
DORAN is scheduled to be sentenced by United States District Judge Robert N. Chatigny on June 25, 2013, at which time DORAN faces a maximum term of imprisonment of 30 years and a maximum fine of approximately $1.9 million. As part of his plea agreement, DORAN has agreed to pay restitution of $991,883.65.
This case has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David T. Huang.
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(203) 821-3722 [email protected]Former Car Dealer to Serve Sixteen Months in Prison and Pay More Than $276,000 in Restitution for Bank FraudRead the Press Release
Oklahoma City, Oklahoma – John B. Langley, 62, of Harrah, Oklahoma, has been sentenced to serve sixteen months in prison for making a false statement to a federally insured credit union, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Langley was ordered to pay $276,216.57 in restitution to his victims.
In 2008 and 2009, Langley owned and operated J&K Langley Corporation, which sold used cars in Oklahoma City under the name Bargain Network Auto Sales. On June 5, 2012, Langley was indicted for fraudulently taking out duplicate loans on multiple vehicles. In particular, the indictment alleged that he borrowed money from Municipal Employees Credit Union and pledged vehicles on his lot as collateral, when he knew that those vehicles had been pledged to Floorplan Xpress, a financing company that specializes in lending money to car dealers. The indictment also alleged that Langley defrauded the credit union by selling collateralized vehicles and failing to give the proceeds to the credit union to satisfy his loans.
On November 7, 2012, Langley pled guilty to giving a fictitious lien release letter on Floorplan Xpress letterhead to Municipal Employees Credit Union on March 23, 2009, in connection with a loan for a 2009 Nissan Maxima.
Today, United States District Judge Joe Heaton sentenced Langley to serve sixteen months in federal prison, based in part on the importance of protecting the integrity of financial institutions. Based on his plea agreement, the court ordered Langley to pay $200,806.57 in restitution to Municipal Employees Credit Union and $75,410.00 to Floorplan Xpress. Langley was also ordered to serve five years of supervised release after he is released from prison.
This case was result of an investigation conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Scott E. Williams.