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2 April 2013
Ellenwood Man Indicted for Possession of Child PornographyRead the Press Release
Used His Home Computer to Receive and Store Images
ATLANTA – David Rice was arraigned Thursday, March 28, 2013, for possession and receipt of child pornography, and has been released on bond with conditions including electronic monitoring, and a requirement that he not have unsupervised contact with children.“The possession and receipt of child pornography attempts to normalize the exploitation of children,” said United States Attorney Sally Quillian Yates. “It not only harms the minor victims portrayed in those images, it fuels a heinous market. We will protect children, so individuals in our District interested in acquiring and using these images need to understand that we will prosecute them.”
“The child pornography cases we investigate reveal the disturbing and sobering truth that some adults will go to great lengths to sexually exploit children,” said Brock D. Nicholson, Special Agent in Charge of Homeland Security Investigations, Atlanta. “While we cannot give back the innocence that's been stolen from these children, we can make sure that those who commit these horrible crimes are brought to justice.”
According to United States Attorney Yates and the information presented in court: In April and May 2012, a federal agent with Homeland Security Investigations determined that Rice possessed approximately 950 files containing known or suspected child pornography at his home. Those files included images of minor girls being molested by adult males. In June 2012, law enforcement officers executed a search warrant at Rice’s home. Agents seized his home computer during that search, which contained numerous images of child pornography.The indictment charges Rice, 51, of Ellenwood, Ga., with receipt of child pornography, which carries a maximum term of imprisonment of 20 years and a fine of $250,000. He is also charged with possession of child pornography, which carries a maximum term of imprisonment of ten years and a fine of $250,000. Both charges carry no less than five years to a lifetime of supervised release. His arraignment was held before United States Magistrate Judge Gerrilyn G. Brill.
If convicted, Rice will be required to register as a sex offender. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt.
This case is being 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 U.S. Attorneys’ Offices, 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 http://www.justice.gov/psc/.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Doreen Alexander Extradited to the United States to Face Kidnapping ChargesRead the Press Release
Doreen Alexander has been extradited to the United States from Trinidad and Tobago to face charges related to her alleged role in the 2005 kidnapping of naturalized U.S. citizen Balram “Balo” Maharaj, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office.
Alexander, 47, arrived in the United States on Sunday, March 31, 2013, and was arraigned yesterday before U.S. Magistrate Judge Deborah A. Robinson in the District of Columbia. Alexander was charged in a two count indictment filed in September 2010. If convicted, Alexander faces a maximum penalty of life in prison. She is presumed innocent until proven guilty beyond a reasonable doubt.
Alexander is the last charged co-conspirator involved in the alleged kidnapping of Maharaj, Alexander’s former boyfriend and father to one of her sons who died as a result of the kidnapping. The other 12 co-conspirators were previously extradited and prosecuted by the U.S. Attorney’s Office for the District of Columbia.
Alexander is alleged to have initiated the April 2005 kidnapping of Maharaj and provided information that allowed the kidnappers to identify, locate and track Maharaj. Alexander allegedly alerted the kidnappers to Maharaj’s visits to Trinidad and Tobago, gave them information on his wealth, which was used to calculate the ransom, and reassured the kidnappers that they had the right man after the ransom negotiations went awry.
Valuable assistance was provided by the Criminal Division’s Office of International Affairs, which worked with its counterparts in Trinidad & Tobago to effect the extradition. The U.S. Attorney’s Office for the District of Columbia has also provided significant assistance in this case.
The case was investigated by the FBI’s Miami Division Extraterritorial Squad with the assistance of the FBI's Legal Attache's Office in Port of Spain, Trinidad and Tobago. Special assistance was further provided by the Trinidad and Tobago Police Service Anti-Kidnapping Squad and Homicide Bureau.
The case is being prosecuted by Trial Attorneys Matthew Singer and Teresa Wallbaum of the Criminal Division’s Human Rights and Special Prosecutions Section.
District Man Pleads Guilty to Charges in 2011 Collision with Bicyclist in Northeast Washington -Victim Knocked to Street, Escaped Serious Injury-Read the Press Release
WASHINGTON - John W. Diehl, 57, of Washington, D.C., pled guilty today to charges stemming from a hit-and-run incident in August 2011 in which the truck he was driving struck a bicyclist in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Diehl pled guilty in the Superior Court of the District of Columbia to charges of leaving the scene after a collision and destruction of property. The plea includes a deferred sentencing agreement that calls for Diehl to perform 25 hours of community service, undergo counseling for anger management, complete a drivers’ safety course, and complete alcohol and drug treatment if necessary over the next year. If he complies with all of the conditions of the agreement, the government will not oppose a defense motion to withdraw the guilty plea and will move to dismiss the case. The Honorable Robert I. Richter scheduled sentencing for April 2, 2014.
If the defendant does not comply with the conditions, the government can oppose his withdrawal of the plea and ask the Court to immediately proceed with sentencing.
According to the government’s evidence, on Aug. 31, 2011, at about 9:05 a.m., the victim was riding his bicycle and traveling west in the 3000 block of Rhode Island Avenue NE. Diehl pulled up in his truck next to the victim, drove alongside him as he was riding, and cursed at him for being in the middle lane.
Diehl then changed lanes and drove his truck into the bicyclist’s lane, striking him with his truck and knocking him to the ground. After knocking the victim off of his bicycle, Diehl drove away without stopping. As a result of the collision, the victim suffered injury to his shoulder, road rash and multiple scrapes and bruises, as well as damage to his bicycle.
In announcing the plea, U.S. Attorney Machen commended the work of the officers of the Metropolitan Police Department’s Fifth District, who were involved in the arrest and investigation of this case. U.S. Attorney Machen also expressed his appreciation to Paralegal Specialists D’Yvonne Key and Richard Cheatham, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
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Detroit-Area Home Health Agency Owner and Physical Therapist Convicted in $2.3 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit today convicted a home health agency owner and a physical therapist for their participation in a $2.3 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Detroit Office.
Mehran Javidan, 52, was found guilty in U.S. District Court for the Eastern District of Michigan of one count of conspiracy to commit health care fraud, three counts of health care fraud, three counts of making false statements related to health care matters, and one count of conspiracy to solicit or pay health care kickbacks in exchange for referrals of patients to a Detroit-area home health care company, Acure Home Care Inc.
Vishnu Meda, 32, a physical therapist, was found guilty of one count of conspiracy to commit health care fraud, two counts of health care fraud and two counts of making false statements relating to health care matters.
The jury found Javidan not guilty of one count of making false statements and one count of health care fraud, and did not reach a verdict on one additional count of health care fraud. Meda was found not guilty of one count of making false statements and one count of health care fraud.
The defendants were charged in a superseding indictment returned Nov. 29, 2012. Another individual charged in the indictment remains a fugitive.
According to evidence presented at trial, Javidan owned and operated Acure Home Care Inc., a home health care company in Oak Park, Mich., and later Troy, Mich. As shown at trial, Javidan paid doctors to refer non-homebound patients for physical therapy treatment that was medically unnecessary. The evidence showed that she also paid patient recruiters to obtain Medicare information and pre-signed physical therapy documents from Medicare beneficiaries. The recruiters for Acure obtained the Medicare information and pre-signed forms by paying patients in cash and by promising that the referring doctors would prescribe them narcotic prescriptions.
Evidence presented at trial established that Meda and other physical therapists and physical therapy assistants employed by Acure created false and fraudulent physical therapy files using the blank, pre-signed forms to make it appear as if physical therapy services were actually rendered, when, in fact, the services had not been rendered.
Acure was paid over $2.3 million from Medicare between December 2008 and November 2010.
The health care fraud conspiracy count carries a maximum potential penalty of 10 years in prison; each count of health care fraud carries a maximum penalty of 10 years in prison; each count of making false statements carries a maximum penalty of five years in prison; and each count of kickback conspiracy carries a maximum penalty of five years in prison. Sentencing for both defendants is scheduled for July 8, 2013.
The case was prosecuted by Trial Attorneys Catherine K. Dick and Niall M. O’Donnell of the Criminal Division’s Fraud Section. The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Eastern District of Michigan and the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.Dana Yvonne Kent Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 1, 2013, before U.S. District Judge Sam E. Haddon, DANA YVONNE KENT, a 49-year-old resident of Santa Ana, California, was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Restitution: $101,490
Supervised Release: 1 year
KENT was sentenced in connection with her guilty plea to wire fraud/telemarketing.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
Between October of 2009 and May 25, 2012, KENT was involved with other individuals in oil and gas lease schemes totaling approximately $673,406.62 in monies from investors.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KENT will likely serve all of the time imposed by the court. In the federal system, KENT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the U.S. Department of Interior - Office of Inspector General.
Coin Dealer Formerly from Hackensack Is Indicted on Federal Tax ChargesRead the Press Release
NEWARK, N.J. – A federal grand jury in Newark today returned a three-count Indictment charging a former Bergen County dealer in ancient coins, with aiding and assisting in the filing of false federal income tax returns, U.S. Attorney Paul J. Fishman announced.
Gantcho Zagorski, 59, formerly a resident of Hackensack, N.J., was charged with aiding and assisting in the filing of false federal income tax returns for calendar years 2006, 2007 and 2008. A date for Zagorski’s arraignment will be scheduled once the case has been assigned to a federal district judge.According to the Indictment:
Zagorski owned and operated a business that sold ancient coins to domestic and international customers, primarily on eBay, from his residence in Hackensack. Zagorski, along with his wife and, at times, his daughter, operated the coin-selling business under the names “Diana Coins,” “Paganecoins,” and “Diana Coins, LLC.” For calendar years 2006, 2007, and 2008, Zagorski provided his tax preparer with false and fraudulent information by understating the amount of gross receipts and sales earned by his business. Zagorski then caused to be filed with the IRS those federal income tax returns for 2006, 2007 and 2008 containing that false and fraudulent information.
Each of the three tax counts carries a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of Department of Homeland Security, Homeland Security Investigations New York, under the direction of Special Agent in Charge James T. Hayes Jr.; IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, Newark Field Office; and the FBI, under the direction of Acting Special Agent in Charge David Velasquez, with the investigation leading to the Indictment.
The government is represented by Assistant U.S. Attorneys Maureen Nakly of the U.S. Attorney’s Office Special Prosecutions Division and Leslie Schwartz of the U.S. Attorney’s Office Economic Crimes Unit.The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: John Yauch Esq., Assistant Federal Public Defender, NewarkZagorski Indictment
Clear Lake Man Pleads Guilty to Possessing Child PornographyRead the Press Release
A man who possessed child pornography pled guilty on April 1, 2013, in federal court in Cedar Rapids.
Brandon Phinney, age 27, from Clear Lake, Iowa, was convicted of one count of possession of child pornography.
At the plea hearing, Phinney admitted that, between September 2010 and April 2011, he possessed child pornography on a computer. In a plea agreement, Phinney admitted that he possessed over 1,000 images of child pornography and that he used the Internet to trade child pornography with others.Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Phinney was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Phinney faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clear Lake Police Department, the Mason City Police Department, and the Iowa Division of Criminal Investigation.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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3005.
Charlotte Woman Pleads Guilty to $4.8 Million Medicaid Scheme, Aggravated Identity Theft and Other ChargesRead the Press Release
Woman Steals Identity of Therapist to Submit False Claims to Medicaid and Attempts to Sell Mercedes-Benz to Prevent Law Enforcement Officers from Seizing Vehicle
CHARLOTTE, N.C. – A Charlotte woman pleaded guilty today in U.S. District Court for her involvement in a health care fraud scheme that attempted to defraud Medicaid of $4.8 million for sham mental and behavioral health services, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Rodnisha Sade Cannon, 26, of Charlotte, also pleaded guilty to stealing a therapist’s identity to commit the fraud, money laundering conspiracy and attempting to sell her Mercedes-Benz in order to prevent law enforcement agents from seizing the vehicle.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID); Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); and Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
Cannon appeared this morning before U.S. Magistrate Judge David Cayer and pleaded guilty to one count of health care fraud conspiracy, one count of aggravated identity theft, and one count of money laundering conspiracy. Cannon also pleaded guilty to a single count of attempting to remove property subject to seizure, namely a 2010 Mercedes-Benz CLS550, in a related case. At today’s plea hearing, Cannon admitted that from 2010 to 2012, she and others submitted in excess of $4.8 million in false claims to Medicaid. According to filed court documents and statements made in court, Cannon and her co-conspirators operated after-school and summer childcare programs in Gastonia and Shelby, N.C. Although therapists initially performed some services at these programs, Cannon and others devised a scheme to defraud Medicaid by using the Medicaid provider numbers assigned to other companies and individual therapists for all therapy services supposedly provided at their programs regardless of whether those companies and individuals actually provided the claimed services. In many instances, the claimed mental and behavioral health services were never provided at all. Cannon and others accomplished this scheme by re-directing Medicaid payments away from the Medicaid providers’ bank accounts and to bank accounts controlled by Cannon and her co-conspirators.
According to the criminal bill of information and court documents, Cannon was not licensed or qualified to provide mental and behavioral health services and she was not approved by Medicaid. Instead, Cannon and others stole the identity of Medicaid-approved providers who had some relationship with the programs in order to accomplish the fraud. For example, court documents indicate that Cannon hired M.B. to work for her company in or about May 2012 and M.B. worked there for a single day. Cannon stole M.B.’s Medicaid provider information and redirected all Medicaid payments to M.B. be deposited into a bank account controlled by Cannon and others. Cannon and others then billed claims to Medicaid in excess of $800,000 for services that M.B. never provided, including claims for dates of service before M.B. worked for Cannon and her co-conspirators. In total, from 2010 to 2012, pursuant to the scheme to defraud, Cannon and her co-conspirators submitted approximately $4.8 million in false and fraudulent claims to Medicaid, resulting in payments of over $2.5 million to Cannon and her co-conspirators.
According to documents filed in court, Cannon also worked with Victoria Brewton, who pleaded guilty in January 2013 to carrying out a similar $8 million Medicaid fraud scheme in Shelby. Cannon assisted Brewton by providing and selling Medicaid beneficiary identification numbers and information to be used in Brewton’s fraud scheme. Brewton’s sentencing date has not been set yet.
As part of her plea, Cannon also admitted that she used the proceeds of her scheme to defraud Medicaid to purchase a 2010 Mercedes-Benz CLS550 for the purchase price of $59,500. In September 2012, law enforcement agents sought and obtained a warrant to seize this vehicle as the proceeds of Cannon’s health care fraud scheme. According to court documents, when Cannon learned that agents had a seizure warrant for the vehicle, she attempted to sell the Mercedes-Benz in order to avoid seizure of the vehicle. Cannon has agreed to forfeit the Mercedes-Benz as part of her plea today.
“Stealing money from Medicaid degrades the integrity of our health care system and victimizes those who rely on this important health care program for legitimate patient care,” said U.S. Attorney Tompkins. “The money that Cannon stole through her health care fraud scheme was intended to cover patient needs, not to purchase luxury items. Cannon will be held accountable for her actions,” Tompkins added.
Attorney General Roy Cooper stated, “Cheating Medicaid hurts needy patients, wastes taxpayer money, and drives up health care costs. Our Medicaid Investigations Division attorneys and investigators will continue to work closely with federal officials to root out fraud in North Carolina and make wrongdoers pay.”
“Money gained through illegal sources, such as healthcare fraud, is part of the untaxed, underground economy. This untaxed underground economy poses a threat to our voluntary tax compliance system and undermines the overall public confidence in our American system of taxation,” stated Charlotte Field Office Special Agent in Charge Jeannine A. Hammett, IRS Criminal Investigation.
At sentencing, Cannon faces a mandatory two years in prison consecutive to any other term of imprisonment and a $250,000 fine for the aggravated identity theft charge, a maximum term of 10 years in prison and a $250,000 fine for the health care fraud charge, a maximum term of ten years in prison and a $250,000 for the money laundering conspiracy charge and maximum term of imprisonment of five years and a $250,000 fine for the attempted removal of property to prevent seizure. In her plea agreement, Cannon has agreed to pay full restitution to Medicaid for any losses resulting from her criminal scheme. The final restitution amount will be determined by the Court at Cannon’s sentencing hearing, which has not been scheduled yet.
Cannon has been in local federal custody since her arrest on the attempted removal of property to prevent seizure charge on September 28, 2012.
The investigation into Cannon was handled by the FBI, MID, IRS, and HHS-OIG. The prosecution was handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistleblower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447- 8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
California Man Sentenced for Theft in New TownRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 2, 2013, Paul A. Bonilla, 40, Riverside, Calif., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of theft within Indian country. Bonilla pleaded guilty to the charge on Dec. 18, 2012.
Judge Hovland sentenced Bonilla to one year in federal prison, to be followed by three years of supervised release. Bonilla was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On Nov. 6, 2012, on Main Street in New Town, Bonilla entered a vehicle without permission and drove away. In the back seat of the vehicle was a 2-year-old child, who was asleep. The owner of the vehicle had gone into Better B’s Restaurant in New Town to pick up an order of food. The vehicle was located in the parking lot of the Four Bears Casino, and the child was still asleep in the back seat. Bonilla was found inside the casino playing slot machines and was arrested.
The case was investigated by Bureau of Indian Affairs – Fort Berthold Agency.
Assistant U.S. Attorney Rick Volk prosecuted the case.
California Man Sentenced for Trafficking Cocaine in N. IdahoRead the Press Release
COEUR D'ALENE – Hector Rivera, 35, of Paramount, California, was sentenced today in United States District Court to 50 months in prison followed by four years of supervised release for conspiracy to possess with intent to distribute cocaine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Rivera to serve four years of supervised release after his prison term. He pleaded guilty to the charge on November 5, 2012.
Rivera’s co-defendant, Barbara Jeanne Willoughby, 23, also of Paramount, California, was sentenced on February 4 to 18 months in prison for conspiracy to possess with intent to distribute cocaine, U.S. Attorney Wendy J. Olson announced.
Rivera admitted in court that on March 18, 2012, he conspired with Barbara Willoughby to distribute 500 grams or more of cocaine. According to court documents, Willoughby drove a rental vehicle from California to Idaho because Rivera’s license was suspended. The vehicle was stopped by law enforcement because it did not have a front license plate. During this contact, law enforcement became suspicious of Rivera and Willoughby’s behavior. A search of the vehicle discovered cocaine in a backpack in the cab of the truck.
The case was investigated by the Bonners Ferry Police Department, Idaho State Police, U.S. Border Patrol, and the North Idaho Violent Crimes Task Force (NIVCTF). NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff’s Office, Shoshone County Sheriff’s Office, Bonner County Sheriff’s Office, Coeur d’Alene Police Department, Post Falls Police Department, and the Coeur d’Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
Business Owner Pleads Guilty to $1.5 Million Wire Fraud SchemeRead the Press Release
KANSAS CITY, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a business that provided rehab loans for distressed properties pleaded guilty in federal court today to defrauding his firm’s lender in a $1.5 million wire fraud scheme.
JonPaul “JP” Edward Sauer, 41, of Olathe, Kan., waived his right to a grand jury and pleaded guilty before U.S. District Judge Greg Kays to a federal information that charges him with wire fraud.
Sauer is the owner of Peak Management in Lenexa, Kan., which provides capital acquisition, financial consulting and real estate investment services. Sauer was formerly the chief executive officer, co-owner and co-manager of Flatirons Financial, Inc., an acquisition and improvement lender that made rehabilitation loans on distressed properties, primarily in Kansas City, Mo. Flatirons Financial was acquired by an unrelated third-party entity in late 2007. From November 2007 until August 2008, when he was terminated, Sauer continued in his management positions.
By pleading guilty today, Sauer admitted that he engaged in a wire fraud scheme from Feb. 1, 2007, to Feb. 14, 2008 in which Wells Fargo Foothill, Inc., suffered losses of approximately $1,500,900.
According to today’s plea agreement, Flatirons Financial made draws on its line of credit with Wells Fargo Foothill of approximately $26.6 million during the period of the fraud scheme. Flatirons Financial used those funds to make loans to rehabilitate distressed properties in the Kansas City, Mo., area. Wells Fargo Foothill relied on borrowing base certificates and supporting documents that were materially false and fraudulent in allowing Flatirons Financial to continue to make draws on its line of credit.
Sauer admitted to engaging in several practices that were contrary to the loan servicing agreement with Wells Fargo Foothill in order to conceal the delinquent status of 129 loans. Sauer caused Flatirons Financial to make payment entries in its loan servicing software even though no payment was received. Often without the knowledge of its borrowers, Sauer caused Flatirons Financial to defer payments on loans that were approaching 75 days past due, adding the amount of the delinquent payments to the loan balance in such a manner that it appeared actual payments had been made. Often without the knowledge of the borrowers, Sauer caused Flatiron Financial to use construction escrow funds to make it appear that the borrowers’ delinquent loans were current, at times transferring the escrow funds for one loan of a borrower to another loan of the same or an affiliated borrower. Sauer caused Flatirons Financial to establish second mortgages for borrowers specifically to use second mortgage funds to make payments on delinquent first mortgages.
As a result of the false payment entries and payment histories, Sauer caused Flatirons Financial to prepare and submit borrowing base certificates and supporting documents at least weekly to Wells Fargo Foothill which were materially false and fraudulent. The borrowing base certificates misrepresented that loans made by Flatirons Financial were “eligible” when in fact the loans were in delinquent status, non-performing, not in good standing, and not “eligible” loans.
Under federal statutes, Sauer is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Senior Litigation Counsel Linda Parker Marshall. It was investigated by the FBI.
Brandon Laferty Sentenced to 30 Months in Prison for Failure to Register as A Sex OffenderRead the Press Release
GREENEVILLE, Tenn. – On Apr. 1, 2013, Brandon Lee Laferty, 27, of Sullivan County, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 30 months in prison for failure to register as a sex offender. Upon his release from prison, Laferty will serve 15 years on supervised release.
In 2011, Laferty was sentenced by the Sullivan County Criminal Court to serve 10 years of probation, and ordered to wear an electronic monitoring device, for solicitation to commit aggravated sexual battery on a 12-year-old child. This required him to register as a sex offender. After transferring his probation to Hawkins County, Tenn., Laferty removed the device and fled from his probation officer. When Hawkins County sheriff’s deputies located him in Hawkins County in November 2011, he attempted to attack them, resulting in gunshot wounds to Laferty’s chest. After the monitoring device was reinstalled on Laferty, he removed it a second time and fled to Roxanna, Ill., where U.S. Marshals arrested him in April 2012.
During sentencing, Judge Greer noted that communities are entitled to notice that a convicted sex offender has entered the community. He further remarked that Laferty’s attempt to attack the Hawkins County officers and his removal of the electronic monitoring devices demonstrated a profound lack of respect for the law and law enforcement officers. Incarceration was needed because the 10 year state court probationary sentence was not effective. The obvious need to protect the public from Laferty justified a sentence at the top of the sentencing range.
The indictment and subsequent conviction of Laferty were the result of an investigation conducted by the Sullivan County, Tennessee Sheriff’s Office, Hawkins County, Tennessee Sheriff’s Office, and U.S. Marshals Service. Assistant U.S. Attorney Helen Smith represented the United States.
Armed Robber Sentenced to More Than 28 Years in Federal PrisonRead the Press Release
Orlando - Chief U.S. District Judge Anne C. Conway yesterday sentenced William Washington (58, Orlando) to 28 years and one month in federal prison for using and carrying a firearm during and in relation to a crime of violence, namely commercial robbery. Washington pleaded guilty to the offenses on July 25, 2012.
According to the plea agreement, on July 5, 2011, Washington used a firearm to rob the RBC Bank in Groveland, Florida. During the robbery, Washington pulled a silver gun from his waistband, placed it on the counter, and pointed it directly at a bank teller. He then demanded money from the teller.
Five days later, on July 10, 2011, Washington used a firearm to rob a Save Rite grocery store in Orlando. During the robbery of the store, Washington threatened to shoot a cashier.“ATF’s ‘Frontline’ strategy is to deploy investigative and technical resources to ensure the safety of our communities,” said Special Agent in Charge Julie Torres. “We come together and work with our law enforcement partners to remove any individual that uses a firearm to commit robberies of commercial businesses or violent acts. This is our mission and commitment to the public and communities we serve to protect.”
"The Orlando Police Department is committed to keeping Orlando a safe city,” said Chief Paul Rooney. “William Washington not only committed armed robberies but tried to kill Orlando Police Officers by shooting at them during his arrest on July 11, 2011. This violent and dangerous criminal is now off the streets thanks to interagency cooperation and the commitment of OPD and ATF, as partners against those who threaten the safety of everyone. OPD will continue to work with ATF in the relentless pursuit of criminals who use guns."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Groveland Police Department, the Orlando Police Department and the Lake County Sheriff's Office. It was prosecuted by Assistant United States Attorney Daniel W. Eckhart.
Ambulance Company and Owners Plead Guilty in Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - MedEx Ambulance, Inc., located in Feasterville, PA, and its owners, Aleksandr N. Zagrodony and Sergey Zagorodny, pleaded guilty to all counts of a 41-count Indictment charging them with health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy to commit health care fraud and wire fraud, announced United States Attorney Zane David Memeger.
Defendant MedEx Ambulance was incorporated in 2004, and its owners operated an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The Zagorodny brothers, or others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants and their employees knew that the patients could be transported safely by other means and, in fact, many of the patients were able to walk. The defendants billed for the ambulance services as if those services were medically necessary. As a result of the fraudulent billing, the Medicare program paid more than $2.5 million for this inappropriate method of transportation.
Aleksandr Zagorodny and Sergey Zagorodny face a maximum sentence of 370 years of imprisonment, three years of supervised release, a fine of $10.25 million, mandatory restitution currently estimated at in excess of $2.6 million, and a $4,100 special assessment. MedEx faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could be excluded from participating in federal health care programs if convicted.
Agents previously seized four ambulances owned by MedEx Ambulance, purchased for over $200,000, which are subject to criminal forfeiture proceedings. Three bank accounts also were seized, and the funds contained in those accounts, as well as other assets, including the company headquarters, are subject to criminal forfeiture proceedings.
Sentencing is scheduled for July 2, 2013 before the Honorable Berle M. Schiller.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-85257 Enter Guilty Pleas in Operation Prison Cell Racketeering CaseRead the Press Release
CORPUS CHRISTI, Texas – Seven former Texas Department of Criminal Justice (TDCJ) correction officers have pleaded guilty in the large-scale racketeering case involving the McConnell Unit in Beeville, United States Attorney Kenneth Magidson announced today.
The hearing lasted all day and concluded less than an hour ago. Former McConnell Unit employees Stephanie Deming, 23, of Beeville, Christy Nesloney, 27, of Cuero, Kimberly Koenig, 32, of Victoria, Yvonne Sandoval, 36, of Sinton, Jaime Garza, 38, of Santa Elena, each entered pleas of guilty to one count of racketeering. Former correction officer Justin Leonard, 23, of Conroe, entered his guilty plea to possession with intent to distribute cocaine. The former officers admitted to acts of bribery and drug trafficking inside and outside the prison system. Not charged in the racketeering count, former correction officer Jamar Green, 29, of Refugio, pleaded to possession with intent to distribute ecstasy. These seven defendants are set for sentencing June 24, 2013.
A total of 30 defendants were taken into custody in late February in relation to this case, including 17 former TDCJ officers. Two other defendants remain fugitives. The cases against the other 25 defendants are still pending and they are presumed innocent unless and until convicted through due process of law. They are set for trial July 8, 2013. The indictment remains sealed as to those charged but not as yet in custody.
The arrests of those charged were a joint effort between TDCJ-Office of Inspector General and federal authorities to attempt to break the “culture of corruption” that permeated the McConnell Unit Prison during a period between 2005 to the present. State and federal authorities worked together in a determined effort to disrupt and dismantle the violent criminal gangs who were profiting through the corruption of guards at the prison.
According to the indictment, 14 former TDCJ correction officers were part of a criminal enterprise that engaged in bribery and narcotics trafficking. The indictment details specific acts, wherein the correction officers assisted prisoners incarcerated in the TDCJ McConnell Unit Prison in Beeville by smuggling cellular telephones and drugs into the prison system. The drugs and phones were allegedly sold inside the prison to other inmates. The phones were used by inmates to assist in their coordination of criminal activities outside the prison, according to the allegations.
The investigation was initiated in 2009 when several Aryan Circle Gang Members were apprehended attempting to transport stolen vehicles from Corpus Christi to Brownsville. The vehicles were destined to be smuggled across the border and sold to Mexico Cartel members. The operation was coordinated by inmates incarcerated at the McConnell Unit through the use of illegal cell phones.
The resulting investigation led to a December 2010 federal indictment charging 14 alleged members and associates of the Raza Unida Street and Prison Gang with committing violent acts to support racketeering (VICAR). These violent acts included home invasions, shootings and conspiracy to commit murder. During the course of the investigation, agents and officers seized approximately 13 pounds of crystal methamphetamine with an estimated street value of more than $300,000. Additionally, seven assault rifles, 14 pistols, five shotguns, five bullet proof vests and approximately 1,000 rounds of ammunition were seized from the gang. All were subsequently convicted, two of whom were sentenced to life imprisonment.
The overall case is the result of a four-year investigation conducted by the U.S. Attorney’s Office, Homeland Security Investigations, TDCJ-OIG, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Corpus Christi Police Department Gang and Organized Crime Units, U.S. Postal Inspection Service and the Bee County District Attorney’s office.
The case is being prosecuted by Assistant U.S. Attorneys Mark Patterson and Michael Hess.
15 People Arrested in Drug RaidRead the Press Release
Montgomery, Alabama - Law enforcement arrested 15 people, executed five federal search warrants and seized over a pound of “ice” methamphetamine, over 30 firearms, nearly $13,000 in cash and several vehicles that were being used to transport illegal drugs, through a joint effort by federal, state and local authorities.
Six of the 15 people arrested were arrested by the federal government for conspiracy to distribute methamphetamine. Those arrested federally were Mark “Mighty Whitey” Elliott, 50 years old, of Deatsville; William “Bill” Elliott, 57 years old, of Deatsville; Wendell “Cain” Gaskin, 40 years old, of Deatsville; Willie C. Moody, 64 years old, of Montgomery; William Christopher Moody, 36 years old, of Montgomery; and Mark Allen Vinson, 43 years old, of Elmore. Mark “Mighty Whitey” Elliott, William “Bill” Elliott, Wendell “Cain” Gaskin, and Mark Vinson were all detained without bond pending trial. Willie C. Moody and Christopher Moody were allowed a bond while awaiting trial.
During this raid, nine of the 15 people were arrest by the State of Alabama for various drug crimes. Those arrested on State of Alabama charges were: Brandon Fuller, of Wetumpka, arrested for unlawful possession of controlled substance and given a $5,000 bond; Faye Diane Allen of Wetumpka, arrested for three counts of unlawful distribution of controlled substance, and given a $30,000 bond; Bobby Roten of Millbrook, arrested for three counts of unlawful distribution of controlled substance, and given a $30,000 bond; Paul Bryant of Montgomery, arrested for two counts of unlawful distribution of controlled substance, and given a $20,000 bond; Caleb Elliott of Deatsville, arrested for trafficking of methamphetamine, and given a $1,000,000 bond; Brandon Horton of Wetumpka, arrested for two counts of unlawful distribution of controlled substance, and given a $20,000 bond; Lindsey Lawrence of Deatsville, arrested for trafficking of methamphetamine, and given a $250,000 bond; Haley Dallas Hamrac of Deatsville, arrested for trafficking of methamphetamine, unlawful possession of controlled substance, and unlawful possession of drug paraphernalia, and given a $1,500,000 bond; and Michael Lee Smith of Atmore, arrested for trafficking of methamphetamine, unlawful possession of controlled substance, and unlawful possession drug paraphernalia, and given a $515,000 bond.
Along with the arrests, law enforcement executed five federal search warrants, two in Montgomery, two in the Deatsville area of Autauga County, and one in the Central community in Elmore County. During the search warrants, law enforcement found lots of evidence of drug dealing including methamphetamine, firearms, cash and other items indicative of drug dealing.
According to the search warrant affidavit, Mark “Mighty Whitey” Elliott is a captain in the Aryan Brotherhood, a powerful prison gang with white supremacy beliefs. Elliott has tattoos of Swastikas, the words “White Power” and SS in lightning bolts on his body, all tattoos that indicate membership in the Aryan Brotherhood. Also, several individuals in this case have used violence, threats of violence and intimidation to further its drug dealing and to collect money.
“This investigation highlights the importance of our law enforcement partnerships,” stated Clay X. Morris, Assistant Special Agent in Charge of the Drug Enforcement Administration. “Without the combined efforts of the law enforcement agencies involvement in the investigation, this organization would have continued to distribute pound quantities of methamphetamine throughout central Alabama. This investigation should send a clear and resounding message that we will not allow our communities to be poisoned by drugs or hate.”
“This investigation is more evidence that ATF’s commitment to combating violent crime is unwavering,” stated ATF Special Agent in Charge Jeff Fulton. “We will utilize every resource to make our communities safer places to live.”
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty. However, if convicted, the six federal arrestees are facing a minimum of ten years in jail and a maximum prison term of life. In the federal system, there is no parole.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Elmore County Sheriff’s Office, the Gulf Coast High Intensity Drug Trafficking Area Task Force, the Central Alabama Drug Task Force, the Autauga County Sherriff’s Office, the Wetumpka Police Department and the Prattville Police Department.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
1 April 2013
Wheeling Resident Enters Plea to Possession of Child PornographyRead 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 25-year old Wheeling, West Virginia, resident entered a plea of guilty on March 25, 2013, in United States District Court in Wheeling before Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: JEFFREY JOSEPH OLIVER entered a plea of guilty to“Possession of Child Pornography” on June 12, 2012, in Wheeling. As part of his plea, OLIVER will forfeit the computer and all storage devices, including approximately 181 CDs and DVDs, a cell phone and a Playstation and memory card which were seized on June 12, 2012. OLIVER, who is free on bond, faces a maximum exposure of 10 years imprisonment and a fine of $250,000. This case was prosecuted by by Assistant United States Attorney Robert H. McWilliams, Jr. and was investigated by the West Virginia State Police-Bureau of Criminal Investigations and the Federal Bureau of Investigation.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wabaunsee County Woman Sentenced for Mortgage FraudRead the Press Release
TOPEKA, KAN. – A woman from Wabaunsee County, Kan., has been sentenced to two years federal probation and ordered to pay a $5,000 fine for mortgage fraud, U.S. Attorney Barry Grissom said today.
Linda Kay Miller, 51, Alma, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted fraudulently submitting false documents to New Century Bank of Manhattan, Kan., in an effort to obtain a $200,000 mortgage loan. Miller admitted she created documents falsely stating that a $65,000 second mortgage on her home in Wabaunsee County had been paid in full. She filed the false documents with the Wabaunsee County Register of Deeds.
Grissom commended the Wabaunsee County Sheriff’s Department, the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Virginia Nurse Sentenced to Federal Prison for Tax FraudRead the Press Release
Jeffrey Charles, a resident of Grimstead, Va., was sentenced today to serve 46 months in federal prison for conspiring with his daughter and son-in-law to defraud the United States, aiding and assisting in the preparation of false tax returns in his daughter’s name, and filing a false tax return in his own name, the Justice Department and the Internal Revenue Service (IRS) announced.
On Nov. 6, 2012, following a six-day jury trial in Newport News, Va., Charles was convicted of one count of conspiracy, three counts of aiding and assisting in the preparation of false tax returns, and one count of filing a false tax return. According to the evidence presented at trial, Charles, a registered nurse and the administrator of a rehabilitation center, conspired with his daughter and son-in-law to impair and impede the IRS in ascertaining, computing, assessing and collecting federal income taxes. The evidence also proved that Charles aided and assisted in the preparation of three false tax returns in his daughter’s name for tax years 2000, 2001 and 2005, and attached false documents to each tax return.
Finally, the evidence at trial also established that Charles filed a false tax return in his own name for tax year 2006 in which he allegedly falsely reported earning $0.00 income. Charles joined American Rights Litigators (ARL), a Florida-based organization, and paid ARL to send fraudulent documents to the IRS on his behalf and on behalf of his daughter. In August 2004, a federal district judge permanently enjoined ARL and two of its promoters from the sale of a nationwide tax scam. In August of 2010, three promoters of ARL were each sentenced in the District of Columbia to 10 years in prison along with ARL founder Eddie Ray Kahn, who received a 20 year sentence.
Senior Judge Henry Coke Morgan Jr. also ordered Charles to pay over $300,000 in restitution to the IRS as part of his sentence.
In a separate but related case, Charles’s co-conspirators, his daughter and son-in-law Kathryn Miles and John Miles, each pleaded guilty to conspiracy and were sentenced to federal prison.
Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division commended the investigative efforts of special agents of IRS Criminal Investigation, and Tax Division Trial Attorney Justin K. Gelfand and Assistant U.S. Attorney Brian Samuels, who prosecuted the case.
Virginia Charter Boat Captains Sentenced for Felony Illegal Harvest of Striped BassRead the Press Release
ALEXANDRIA, Va. – Jeffery S. Adams, 41, of Hudgins, Va., was sentenced today to 180 days home confinement with electronic monitoring, followed by three years of probation for violating the Lacey Act by trafficking in illegally-harvested striped bass. Adams’ corporation, Adams Fishing Adventures, Inc., was sentenced to three years of probation. One of the conditions of their probation is the requirement to acquire and maintain Vessel Monitoring Units on all vessels owned or operated by them.
David Dwayne Scott, 41, of Lusby, Md., was also sentenced today for trafficking in illegally-harvested striped bass, in violation of the Lacey Act. Scott was sentenced to three years of probation, a $5,600 fine payable to the Lacey Act Reward Account, and ordered to pay $1,900 restitution to NOAA. One of the conditions of his probation is the requirement that he cannot engage in either charter or commercial fishing industry anywhere in the world, in any capacity to include captaining or mating on a vessel or performing any services in support of a charter or commercial fisherman.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Logan Gregory, Special Agent in Charge for NOAA’s Office of Law Enforcement’s Northeast Division, made the announcement after sentencing by United States District Judge Mark S. Davis.
On January 19, 2013, Adams and Adams Fishing Adventures pled guilty to violation of the Lacey Act in the United States District Court in Norfolk, Va. The Lacey Act, among other things, makes it unlawful for any person to transport, sell, receive, acquire or purchase any fish or wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States.
According to the plea agreement, Adams and Adams Fishing Adventures, Inc., admitted that they sold a chartered Striped Bass fishing trip on January 19, 2010, for $800. As part of that trip, Adams knowingly took his charter clients into the Exclusive Economic Zone (EEZ) to harvest striped bass, even though Adams knew that it was a violation of federal law to harvest striped bass inside the EEZ. Adams’ clients illegally harvested 10 striped bass within the EEZ and Adams transported the illegally harvested striped bass back to Rudee Inlet in Virginia Beach, Va. According to other documents filed in connection with the sentencing, Adams and Adams Fishing Adventures, Inc., routinely harvested striped bass illegally from within the EEZ from 2007 to 2013. Since 1990, federal law has made it unlawful to fish, catch, or possess striped bass in the Exclusive Economic Zone (EEZ). The laws were passed in response to a decline in the striped bass populations in the late 1970’s and are designed to protect and preserve striped bass for future generations.
In a statement of facts filed with Scott’s plea agreement, Scott admitted that on February 7, 2009, he took a charter fishing trip into the Exclusive Economic Zone (EEZ) to fish for striped bass and when approached by law enforcement, 19 striped bass were dumped overboard in an attempt to avoid detection by law enforcement.
The cases were investigated by NOAA’s Office of Law Enforcement and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office. Assistant U.S. Attorney Stephen W. Haynie of the United States Attorney’s Office for the Eastern District of Virginia and Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Two Alice Men Arrested for Aiming Laser Pointer at HelicopterRead the Press Release
CORPUS CHRISTI, Texas - Joshua Nathaniel Vela and Jon David Lopez, both 21 and from Alice, have been arrested following the return of a two separate indictments alleging felony charges of aiming a laser pointer at an aircraft, United States Attorney Kenneth Magidson announced today.
The indictments were returned on March 27, 2013, and both defendants surrendered to the FBI today. Lopez was brought before U.S. Magistrate Judge Brian Owsley who ordered he be detained pending a detention hearing set for April 4, 2013, while Vela appeared before U.S. Magistrate Judge B. Janice Ellington and was released on a $20,000 personal recognizance bond. Vela and Lopez are both set for arraignment on April 4, 2013, in Corpus Christi.
According to the indictment, on Dec. 27, 2012, each knowingly aimed the beam of a laser pointer at the Halo Flight helicopter “Halo Three” while the aircraft was in the special aircraft jurisdiction of the United States.
In response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams, Congress passed the FAA Modernization and Reform Act of 2012, which specifically prohibited aiming a laser pointer at an aircraft.
If convicted, Vela and Lopez each face up to five years in federal prison and a possible $250,000 fine.
The cases were investigated by the FBI with the assistance of Robstown Police Department. The cases are being prosecuted by Assistant United States Attorney Robert D. Thorpe Jr.
Three Southern Illinois Residents Sentenced for Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Apeil 1, 2013Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Roda Jefferies, 40, of Belleville, Illinois, Lula M. Gooden, 48, of East St. Louis, Illinois, and Yvette Rutherford, 45, of Belleville, Illinois, were each sentenced in United States District Court for defrauding the unemployment insurance program. Jeffries pled guilty on December 7, 2012, to Embezzlement of Public Funds, and was sentenced to a 5 year term of probation, the first 6 months of which Jefferies must spend on home confinement. Jefferies also was ordered to repay $18,130 in restitution to the Illinois Department of Employment Security and to pay a $100 special assessment. Gooden pled guilty on December 11, 2012, to Embezzlement of Public Funds, and was sentenced to a 5 year term of probation, the first 7 months of which Gooden must spend on home confinement. Gooden also was ordered to repay $23,898.34 in restitution to the Illinois Department of Employment Security and to pay a $100 special assessment. Rutherford pled guilty on November 19, 2012, to Embezzlement of Public Funds, and was sentenced to a 5 year term of probation, the first 7 months of which Rutherford must spend on home confinement. Rutherford also was ordered to repay $23,684 in restitution to the Illinois Department of Employment Security and to pay a $100 special assessment.
“Lying in order to receive unemployment compensation is a crime,” said United States Attorney Wigginton. “Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois, particularly as public programs face economic crises. I will continue to place a high priority on pursuing those who steal from the United States Treasury.”
At the time of their guilty pleas, all three admitted to being employed while also filing for and receiving unemployment insurance benefits. In order to receive the benefits, each woman had to certify, approximately every two weeks, to the Illinois Department of Employment Security (IDES) that she was not working and that she was ready, willing, and able to work. She also had to verify that she was actively seeking work.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; the United States Postal Inspection Service; and the Illinois Department of Employment Security. This case was prosecuted by Special Assistant United States Attorney Katherine L. Lewis.
Three People Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a man and woman from South Dakota and a woman from North Dakota, convicted of two counts of Possession of a Controlled Substance were sentenced on March 28, 2013 by U.S. Magistrate William D. Gerdes.
Clemmy Swimmer from Timber Lake, South Dakota, age 30, and Theresa Cadotte from Ft. Yates, North Dakota, age 23, were sentenced to 3 years of probation on each count to run concurrently, a $1,000 fine on each count, and a $25 special assessment on each count to the Victim Assistance Fund. Francis Dubray from Wakpala, South Dakota, age 24, was sentenced to time served with 1 year of supervised release, a $1,000 fine on each count, and a $25 special assessment on each count to the Victim Assistance Fund.
Swimmer, Cadotte and Dubray were indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury on June 12, 2012 and pled guilty to an Information in December. The charge stems from an incident occurring between December 23, 2011 and December 28, 2011 in which Defendants knowingly and intentionally possessed cocaine and methamphetamine, both controlled substances.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Three Individuals Enter Pleas of Guilty in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA - Three individuals entered pleas of guilty in United
States District Court in Elkins on March 27, 2013, before Magistrate Judge John S. Kaull.United States Attorney William J. Ihlenfeld, II, announced that:
RONALD JOHN LOUK, age 30, of Churchsville, Virginia, entered a plea of guilty to
“Failure to Update Sex Offender Registration.” During the period October 20 to November
21, 2012, LOUK, a person required to register under the Sex Offender Notification Act and who traveled in interstate commerce, did knowingly fail to update his registration. LOUK, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the United States Marshals Service and the West Virginia State Police.VELAIR VON COLLINS, II, age 42, of Elkins, West Virginia, entered a plea of guilty to the charge of “Felon in Possession of a Firearm.” COLLINS, having previously been convicted in the Circuit Court of Randolph County, West Virginia, of the felony offense of Driving Under the Influence-Third Offense, knowingly possessed a Harrington & Richardson shotgun and a Marlin rifle on September 4, 2012, in Elkins. COLLINS, who is on bond pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Stephen D. Warner and was investigated by the Elkins Police Department and the West Virginia State Police.
JANEL PHILLIPS, age 44, of Belington, West Virginia, entered a plea of guilty to “Federal Program Fraud.” From January of 2007 to May of 2010, PHILLIPS, while working as a ombudsman for Legal Aid of West Virginia, submitted false mileage claims and time sheets to fraudulently obtain over $90,000 from the federally funded Long-Term Care Ombudsman Fund. PHILLIPS, who is free on bond pending sentencing, faces a maximum exposure of 10 years imprisonment and a fine of $250,000. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Department of Health and Human Services and the Legal Services Corporation-Office of Inspector General.
St. Paul Felon Sentenced for Possessing A .38-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old St. Paul felon was sentenced for possessing a .38-caliber, semi-automatic pistol. United States District Court Judge David S. Doty sentenced Jose Antonio Caban to 84 months in prison on one count of being a felon in possession of a firearm. Caban was indicted on July 16, 2012, and pleaded guilty on September 18, 2012.
In his plea agreement, Caban admitted that on June 6, 2012, a police officer found him in possession of a firearm at a bar in St. Paul. Because he is a felon, Caban is prohibited under federal law from possessing firearms at any time. He was previously convicted in Ramsey County in 2011 for terroristic threats.
This case was the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Richard A. Newberry.Spring Hill, Kan., Company Owners Charged with Harboring Undocumented AliensRead the Press Release
KANSAS CITY, KAN. – The owners and managers of a framing company in Spring Hill, Kan., have been charged with harboring undocumented aliens who worked for the company, U.S. Attorney Barry Grissom said today.
An indictment unsealed here today alleges that Advantage Framing knowingly employed undocumented aliens for the purpose of commercial advantage and private financial gain. The company issued checks to crew leaders, who in turn cashed the checks and paid the undocumented workers in cash.
“The indictment alleges the defendants devised a scheme to lower their operating costs and boost their profits by employing undocumented workers,” said U.S. Attorney Barry Grissom. “The company did not pay for Social Security, workers compensation or unemployment insurance benefits for those employees.”
Advantage Framing provided local builders and contractors with engineered floor, pre-built wall panels and roof truss systems, along with onsite framing erection labor. The company had two components. Advantage Framing Systems, Inc., was the umbrella for the framing services and trucking. Advantage Component Systems, Inc., carried out the equipment, lumber, inventory and design functions.
The following defendants are charged in the indictment:
James Humbert, 44, owner of Advantage Framing, who is charged with one count of conspiracy to harbor illegal aliens for commercial advantage and private financial gain, 11 counts of harboring illegal aliens, one count of conspiracy to commit money laundering and 18 counts of money laundering.
Kimberly Humbert, 46, wife of James Humbert and co-owner of Advantage framing, who is charged with one count of conspiracy to harbor illegal aliens for commercial advantage and private financial gain, 11 counts of harboring illegal aliens, one count of conspiracy to commit money laundering and 18 counts of money laundering.
Charles Stevens II, 50, brother of Kim Humbert and part-owner of Advantage Framing, who is charged with one count of conspiracy to harbor illegal aliens for commercial advantage and private financial gain, 11 counts of harboring illegal aliens, one count of conspiracy to commit money laundering and 18 counts of money laundering.
Jose Ramon Caro-Corral, 57, a crew leader for the company, who is charged with one count of conspiracy to harbor illegal aliens for commercial advantage and private financial gain, 11 counts of harboring illegal aliens, one count of conspiracy to commit money laundering, and two counts of money laundering.
Angel Arguello-Plata, 30, a crew leader for the company, who is charged with one count of conspiracy to harbor illegal aliens for commercial advantage and private financial gain, 11 counts of harboring illegal aliens, one count of conspiracy to commit money laundering, and two counts of money laundering.
Dennis Erickson Portillo, 29, a crew leader for the company, who is charged with one count of conspiracy to harbor illegal aliens for commercial advantage and private financial gain, 11 counts of harboring illegal aliens, one count of conspiracy to commit money laundering, and two counts of money laundering.
Jorge Uriel Delgado-Ovalle, 32, a crew leader for the company, who is charged with one count of conspiracy to harbor illegal aliens for commercial advantage and private financial gain, 11 counts of harboring illegal aliens, one count of conspiracy to commit money laundering, and two counts of money laundering.
Advantage Framing System, Inc., which is charged with one count of conspiracy to harbor illegal aliens for commercial advantage and private financial gain, 11 counts of harboring illegal aliens, one count of conspiracy to commit money laundering and 18 counts of money laundering.The indictment alleges James Humbert, Kimberly Humbert, Charles Stevens and the company itself were responsible for hiring undocumented workers for the purpose of lowering the company’s operating costs. The wages the company paid did not include the employer’s share of Social Security payments, workers compensation, or unemployment insurance benefits paid to lawfully employed workers in the construction industry. They placed themselves at a competitive advantage to other builders who did not employ undocumented workers.
The investigation began in March 2012 when the U.S. Department of Homeland Security and the Internal Revenue Service received information that the owners of Advantage Framing and its components employed undocumented workers. To pay the undocumented workers, the company relied on a method in which certain undocumented aliens who served as framing crew leaders obtained proof of insurance coverage. The crew leaders received checks from the company and they were responsible for paying the undocumented workers in their crews. Kim Humbert served as the point of contact from the framing crews for obtaining required liability insurance.
Sometime in 2005, James Humbert told a potential investor in Advantage that he knew of an individual who makes fraudulent identification documents for Advantage’s undocumented workers.
Advantage employed 25 to 33 crews. A framing crew consisted of five or six workers.
Advantage required crew leaders to attend safety training meetings at the main office. At the meetings, additional topics such as how to react if investigators from the Occupational Safety and Health Administration conducted a site inspection were discussed. Workers were instructed to tell OSHA they worked for a sub-contractor and not directly for Advantage.
The indictment alleges that James Humbert and Kim Humbert practiced running a drill in the event that immigration official came to the business. They remarked that the “white guys would have no clue what to do while everyone else ran and hid.”
Upon conviction, the alleged crimes carry the following penalties: Conspiracy to harbor undocumented aliens: A maximum penalty of five years in federal prison and a fine up to $250,000.
Harboring undocumented aliens: A maximum penalty of five years and a fine up to $250,000 on each count.
Conspiracy to commit money laundering: A maximum penalty of 20 years and a fine up to $250,000.
Money laundering: A maximum penalty of 20 years and a fine up to $250,000 on each count.U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Internal Revenue Service investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Sioux City Man Pleads Guilty to Robbery Conspiracy and Gun ChargesRead the Press Release
A man who conspired to rob a South Sioux City, Nebraska, business, and a Sioux City, Iowa business pled guilty March 28, 2013, in federal court in Sioux City.
Christopher Bailey, age 20, from Sioux City, Iowa, was convicted of two counts of conspiracy to commit robbery, one count of robbery; one count of possessing a short-barreled rifle, one count of possessing a shoft-barreled shotgun; and two counts of possessing a firearm in furtherance of a crime of violence.
Information presented by the United States at the plea hearing revealed that on or about June 19, 2012, Christopher Bailey and five others conspired to, and actually did rob, Seoul Foods in South Sioux City, Nebraska. The men planned the robbery, assembled for the robbery, and armed themselves for the robbery in Sioux City, Iowa. The men also escaped to Sioux City, Iowa, after the robbery, where they divided the proceeds. The men used various weapons to rob Seoul Foods including a stolen rifle that one of the men shortened.
Seoul Foods was just about to close when it was robbed, and the owners and employees had their children inside their store with them. One of the children was just 4 years old.
On or about July 13, 2012, Christopher Bailey and three others – including two of the men with whom he robbed the Seoul Foods – conspired to and did actually rob Sarg's Mini Mart in Sioux City, Iowa. The foursome used a single firearm – a short barreled shotgun with an obliterated serial number – to commit the robbery. Before robbing Sarg’s the foursome had driven around the metro area searching for a victim-business. They considered banks and at least one other convenience store.
Co-defendants who have entered pleas are: David Johnson on January 4, 2013; Dustin Mathison on January 16, 2013; Rudy Johnson on February 20, 2013; Joshua Fields on February 26, 2013; and Terrence Miles and Austin Peters on March 26, 2013. Defendant, Paige Mathison’s next appearance is for trial on May 6, 2013, in the United States District Court, in Sioux City. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Bailey remains in custody of the United States Marshal pending sentencing. On the conspiracy to commit robbery charges and the robbery charge, Bailey faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment. On the possession of a short-barreled rifle and short-barreled shotgun charges Bailey faces 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment. On the first charge of possession of a firearm in furtherance of a crime of violence, Bailey faces a mandatory minimum sentence of 10 years up to life imprisonment without the possibility of parole, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment which must be served consecutive to any other sentence. On the second charge of possession of a firearm in furtherance of a crime of violence, Bailey faces a mandatory minimum sentence of 25 years up to life imprisonment without the possibility of parole, a $250,000 fine, a $100 special assessment and three years of supervised release following any imprisonment which must be served consecutive to any other sentence.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4083.
This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Officers of the Sioux City, Iowa, Police Department; and the South Sioux City, Nebraska Police Department. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Settlement with Dominion Energy Reduces Harmful Pollution in Three States and Downwind CommunitiesRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today that Dominion Energy has agreed to pay a $3.4 million civil penalty and spend approximately $9.8 million on environmental mitigation projects to resolve Clean Air Act (CAA) violations. The settlement will result in reductions of nitrogen oxides, sulfur dioxide and particulate matter by more than 70,000 tons per year, across three of the utility’s coal-fired power plants, located in Kincaid, Ill., State Line, Ind., and Somerset, Mass.
“This settlement will improve air quality in states in the Midwest and Northeast by eliminating tens of thousands of tons of harmful air pollution each year,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “These reductions mark the latest step in our continuing efforts, along with EPA, to protect public health and the environment through rigorous enforcement of the Clean Air Act.”
“Today’s settlement substantially reduces harmful pollution from coal-fired power plants in and around communities with significant air pollution concerns,” said Cynthia Giles, Assistant Administrator for the EPA’s Office of Enforcement and Compliance Assurance. “Along with the pollution reductions at the three power plants covered by the agreement, the settlement also requires Dominion to invest over $9 million in pollution reducing projects in neighboring communities.”
Under the settlement, Dominion must install or upgrade pollution control technology on two plants, and permanently retire a third plant. Dominion will be required to operate the new and existing pollution controls continuously, and will be required to comply with stringent emission rates and annual tonnage limitations. The actions taken by Dominion to comply with this settlement will result in annual reductions at the Brayon Point and Kincaid plants of sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions by 52,000 tons from 2010 levels. The retirement of the State Line plant will result in an additional reduction of 18,000 tons of SO2 and NOx.
The settlement also requires Dominion to spend $9.75 million on projects that will benefit the environment and human health in communities located near the Dominion facilities. A total of $9 million will be spent on such projects as: 1) wood stove changeouts, including $2 million for changeouts in southeastern Massachusetts, Rhode Island and eastern Connecticut; 2) switcher locomotive idle reduction for Chicago rail yards; 3) land acquisition and restoration adjacent to, or near, the Indiana Dunes National Lakeshore; 4) energy efficiency and geothermal/solar projects for local schools and food banks; and 5) clean diesel engine retrofits for municipalities and school districts. Dominion must also pay a total of $750,000 to the U.S. Forest Service and the National Park Service, to be used on projects to address the damage resulting from Dominion’s alleged excess emissions.
Reducing air pollution from the largest sources of emissions, including coal-fired power plants, is one of EPA’s National Enforcement Initiatives for 2011-2013. SO2 and NOx, two key pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to fine particles that can cause severe respiratory and cardiovascular impacts, and premature death. Reducing these harmful air pollutants will benefit the communities located near Dominion facilities, particularly communities disproportionately impacted by environmental risks and vulnerable populations, including children. Because air pollution from power plants can travel significant distances downwind, this settlement will also reduce air pollution outside the immediate region.
This judicial settlement is secured as part of a national enforcement initiative to control harmful emissions from power plants under the CAA’s New Source Review requirements. The total combined sulfur dioxide and nitrogen oxides emission reductions secured from all power plant settlements to date will exceed nearly 2 million tons each year once all the required pollution controls have been installed and implemented.
The settlement was lodged today in the U.S. District Court for the Central District of Illinois, and is subject to a 30-day public comment period and final court approval. The settlement can be viewed at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement: www.epa.gov/enforcement/air/cases/dominionenergy.html
More information about EPA’s national enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Richmond Man Sentenced to Seven Years for Stealing Truck with White House Audio and Visual EquipmentRead the Press Release
RICHMOND, Va. – Eric Brown, 49, of Richmond, Va., was sentenced today to seven years in prison for stealing a truck that contained audio and visual equipment belonging to the office of the President of the United States.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; David E. Beach, Special Agent in Charge of the United States Secret Service’s Washington Field Office; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; D.A. Middleton, Chief of Police for the Henrico County Police Division; and Col. Thierry G. Dupuis, Chief of Police for Chesterfield County, made the announcement after sentencing by United States District Judge John A. Gibney.
Court documents show that on Oct. 16, 2011, a truck containing audio equipment utilized by the President of the United States during public appearances was reported stolen in Henrico County. The theft occurred at a hotel a few days prior to a speaking engagement that the President was attending in Central Virginia. Video surveillance from the hotel depicted a dark-colored SUV driving into the hotel lot. Shortly thereafter, the truck containing the President’s equipment was driven off of the lot. Immediately thereafter, a dark-colored SUV followed the truck containing the President’s equipment off of the hotel lot. This truck contained a laptop computer and other audio visual equipment bearing the Presidential seal, all of which had a value of approximately $200,000.
As a part of the plea, Brown admitted to telling others about his role in the theft, selling the laptop, and possessing audio visual equipment that still bore the Presidential seal. Additional facts in support of Brown’s guilty plea included cell tower data obtained by investigators that showed Brown was in the vicinity of the truck at the time it was stolen. Some of the equipment was recovered from pawn shops in Prince Georges County, Maryland, and in Montgomery County, Maryland.
The investigation was conducted by the U.S. Secret Service, the FBI’s Richmond Field Office, the Henrico County Police Department, and the Chesterfield Police Department. Assistant United States Attorney Roderick C. Young prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Repeat Offender Sentenced to 15 Year Prison Term for Drug and Gun CrimesRead the Press Release
A 35-year-old Auburn, Washington man was sentenced today to 15 years in prison and five years of supervised release for being an armed career criminal in possession of a firearm, possession of ammunition, and possession and distribution of cocaine base. MICHAEL PAUL GRADNEY, was identified and prosecuted as part of the 2011 ‘Hot Spot’ initiative designed to combat street crime in the White Center area of King County. GRADNEY was convicted in December 2012 after a five day jury trial. At sentencing today U.S. District Judge James L. Robart noted that GRADNEY lied when he testified during the trial and had “flagrant disregard for the law.”
According to records filed in the case and testimony at trial, GRADNEY sold cocaine to people working with law enforcement on two different occasions in September 2011. In October 2011, law enforcement witnessed GRADNEY making what appeared to be multiple hand to hand drug sales at a gas station and various bars in the White Center neighborhood. On October 13, 2011, officers searched GRADNEY’s Auburn residence and seized a Glock 10 mm pistol, a North American Arms 22 caliber revolver, ammunition for three different firearms, more than $25,000 in cash as well as cocaine and a scale with cocaine residue. GRADNEY is prohibited from possessing firearms because of his lengthy criminal history including five prior felony convictions for drug offenses.
The White Center ‘Hot Spot’ initiative targeted law enforcement resources in the White Center area from July to October 2011. The operation focused on illegal gun sales and drug dealing both on the street and in area businesses. In all approximately 50 people were arrested and law enforcement seized 68 guns, 51 lbs of methamphetamine, 2 lbs of crack cocaine and more than 10 lbs of powder cocaine.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was a coordinated joint effort by ATF, the King County Sheriff’s Office, U.S. Immigration and Customs Enforcement Homeland Security Investigation (HSI), the Seattle Police Department, the King County Metro Transit Police, Washington State Department of Corrections, Washington State Liquor Control Board and the Eastside Narcotics Task Force.
The case was prosecuted by Assistant United States Attorneys Michael Dion and Seth Wilkinson.Rapid City Man Pleads Guilty to Failure to RegisterRead the Press Release
United States Attorney Brendan V. Johnson announced that Seth Between Lodges, age 31, of Rapid City, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 28, 2013 and pled guilty to Failure to Register. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
Between Lodges failed to update his sexual offender registration as required from July 24, 2012 to November 19, 2012. The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Potomac Man Sentenced for Obstructing Investigations to Obtain/maintain a Government Security ClearanceRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Gurpreet Singh Kohli, age 58, of Potomac, Maryland, late on March 29, 2013, to six months of home detention with electronic monitoring, as part of three years’ probation, for obstruction of agency proceedings, in connection with false statements he made to investigators during his background investigation for a high level government security clearance. Judge Hollander also ordered Kohli to pay a fine of $30,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Special Agent in Charge Robert Craig of the Defense Criminal Investigative
Service - Mid-Atlantic Field Office (DCIS).
“The Defense Criminal Investigative Service is committed to supporting America’s warfighter and protecting the interest of the American taxpayers” said Robert Craig, Special Agent in Charge for the DCIS Mid-Atlantic Field Office. “The technology developed to support our warfighters is key to their safety and safety of all Americans. DCIS is committed to pursuing anyone who purposefully endangers our warfighters and our national security for personal gain”.
According to his plea agreement, from November 2002 through March 2011, Kohli operated NAVTEC, LLC from his residence and locations in India. NAVTEC was registered with the U.S. Department of State to act as a broker in the sale and transfer of U.S. manufactured defense electronics and related components. NAVTEC represented U.S. based manufacturers and suppliers of sophisticated defense electronics. The majority of NAVTECs customers were Indian government and military and defense-related agencies. Kohli was responsible for the day to day decision making and operations of NAVTEC.
From September 2003 through April 4, 2011, Kohli also held a full-time position with a defense electronics and weapons manufacturer based in Maryland, for which he was required to obtain and maintain a U.S. government security clearance. As part of his job, Kohli was involved in developing business opportunities with Indian military and defense-related government entities. Kohli did not reveal to his employer the full scope of his activities with NAVTEC, nor did he reveal his employment with the Maryland company to all of NAVTEC’s U.S. based clients.
Kohli admitted that during two separate background investigations by the Office of Personnel Management relative to his security clearance, required to maintain his employment with the Maryland defense contractor, he made a number of false statements and representations regarding his activities for NAVTEC and his contacts with foreign nationals. Specifically, Kohli minimized the nature and scope of his activities with NAVTEC and under oath denied that he had any established foreign business contacts or associations with Indian government organizations. Other false statements included that his contact with foreign nationals was limited to relatives in India; that his foreign business travel was limited to attending trade and air shows on behalf of the Maryland defense contractor; and that his contact with a foreign government or its representatives was limited to business meetings in the U.S. on behalf of the Maryland defense contractor. During a follow-up interview with an OPM investigator on March 9, 2011, Kohli falsely denied having any other employment or business ventures outside of his employment with the Maryland defense contractor.
In fact, Kohli admits that he traveled to India periodically to meet with NAVTEC’s Indian government clients and conduct NAVTEC business. Occasionally, Kohli was accompanied by representatives of the defense electronics manufacturers/suppliers that NAVTEC represented, as well as his son, who assisted with NAVTEC business.
On September 7, 2010, Kohli was interviewed by agents from the FBI and ICE Homeland Security Investigations in relation to his son’s pending application for employment with the FBI. Kohli minimized his son’s role with NAVTEC, his contact with NAVTEC’s U.S. clients and Indian customers, and falsely stated that his wife ran NAVTEC. Kohli also lied about the purpose of his Indian travel, stating that his foreign travel was limited to matters involving his employment with the Maryland defense contractor and that he did not meet with Indian government officials.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore and DCIS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who prosecuted the case.
Pine Ridge Man Receives 30-Year Sentence for Second Degree MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man was sentenced for Second Degree Murder on April 1, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Kyle C. Yankton, age 22, was sentenced to 30 years’ imprisonment, 5 years of supervised release, and a $100 special assessment to the Victim Assistance Fund. Yankton pled guilty to the Second Degree Murder charge on November 27, 2012.
The murder charge stems from an incident on June 30, 2012 when Yankton unlawfully and forcibly entered a residence in Pine Ridge. Pablo Galindo was sleeping in the basement of the residence, where Yankton located him and struck Galindo multiple times in the head with a baseball hat, causing death by blunt force trauma.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe - Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Yankton was remanded to the custody of the Bureau of Prisons to begin serving his sentence immediately.
Patient Recruiter for Miami Home Health Company <br /> Sentenced to 36 Months in $20 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter for a Miami health care company was sentenced today to serve 36 months in prison for his participation in a $20 million home health Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Vladimir Jimenez, 43, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Jimenez was sentenced to serve two years of supervised release and ordered to pay $950,000 in restitution, jointly and severally with co-defendants.
In January 2013, Jimenez pleaded guilty to one count of conspiracy to receive health care kickbacks.
According to court documents, Vladimir Jimenez was a patient recruiter who worked for Serendipity Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately April 2007 through approximately March 2009, Jimenez recruited patients for Serendipity, and in doing so solicited and received kickbacks and bribes from the owners and operators of Serendipity in return for allowing Serendipity to bill the Medicare program on behalf of the patients Jimenez had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
From approximately January 2006 through March 2009, Serendipity submitted approximately $20 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $14 million for these fraudulent claims.
As a result of Jimenez’s participation in the illegal scheme, the Medicare program was fraudulently billed more than $400,000 for purported home health care services.
In a related case, on June 21, 2012, Ariel Rodriguez and Reynaldo Navarro, the owners and operators of Serendipity, were sentenced to 73 and 74 months in prison, respectively, following guilty pleas in March 2012 to one count each of conspiracy to commit health care fraud.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Passaic County, N.J., Man Sentenced to 51 Months in Prison for Conspiring to Distribute Black Market PainkillersRead the Press Release
NEWARK, N.J. – A Passaic County, N.J., man was sentenced today to 51 months in prison for his role in a conspiracy to distribute the prescription painkiller Oxycodone and MDMA, an illegal drug commonly known as “ecstasy,” U.S. Attorney Paul J. Fishman announced.
Following a six-day trial before U.S. District Judge Jose L. Linares in December 2012, a jury found Bahadir Yahsi, 30, of Paterson, N.J., guilty on all five counts charged against him in the Second Superseding Indictment: One count of conspiring to distribute and to possess with intent to distribute quantities of Oxycodone and ecstasy; one count of distributing and possessing with intent to distribute Oxycodone; and three counts of distributing and possessing with intent to distribute ecstasy.
According to documents filed in this case and the evidence at trial:
Starting in June 2010 and continuing through October 2010, Yahsi conspired with Ersin Eroglu, a fellow Paterson resident, and others to illegally traffic black market Oxycodone pills and large quantities of ecstasy. On Sept. 30, 2010, Yahsi set up and carried out an illegal drug transaction with Eroglu, during which Yahsi and Eroglu dealt 96 80-milligram black market Oxycodone pills in the vicinity of Paterson, near the border with Clifton, N.J. After the illegal drug deal, which Yahsi and Eroglu intended to be a 100-pill transaction, Yahsi ensured that Eroglu distributed the remaining four 80-milligram Oxycodone pills in October 2010, at a subsequent black market Oxycodone deal carried out by Eroglu. Also, in August 2010, Yahsi dealt ecstasy pills on three separate occasions, in Paterson on August 15, 19 and 25, 2010.
In addition to the prison term, Judge Linares sentenced Yahsi to three years of supervised release.
Eroglu pleaded guilty to distribution charges, including the Sept. 30, 2010, illegal distribution with Yahsi, and was previously sentenced to 24 months in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu and Special Litigation Counsel Mark J. McCarren of the U.S. Attorney's Office in Newark.
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Defense counsel: Catherine M. Brown Esq., Morristown, N.J., and Paulette Pitt Esq., Woodbridge, N.J.
Owner of Nine Marijuana Stores in Orange and Los Angeles Counties Pleads Guilty to Drug Trafficking and Tax Evasion ChargesRead the Press Release
SANTA ANA, California – A San Clemente man pleaded guilty this morning to federal drug trafficking and tax offenses in relation to a string of nine illegal marijuana storefronts that generated millions of dollars in income.
John Melvin Walker, also known as “Pops,” 56, of San Clemente, pleaded guilty to one count of conspiring to distribute well over a ton of marijuana and to maintain drug-involved premises. He also pleaded guilty to a tax evasion count in a second case that was filed in February.
The investigation into Walker’s chain of marijuana stores was conducted by the Orange County Sheriff’s Department; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; IRS - Criminal Investigation; the California Board of Equalization; and the Orange County District Attorney’s Office.
Walker was one of 14 people named in an indictment returned by a federal grand jury in October (see: http://www.justice.gov/archive/usao/cac/Pressroom/2012/150.html). The indictment outlines a drug-trafficking conspiracy led by Walker, who owned and operated at least nine marijuana stores in cities across Los Angeles and Orange counties. The nine marijuana stores were Alternative Herbal Health in Long Beach, Safe Harbor Collective in Dana Point, Garden Grove Alternative Care in Garden Grove, Santa Ana Superior Care in Santa Ana, Belmont Shore Natural Care in Long Beach, Santa Fe Compassionate Health Care in Santa Fe Springs, Costa Mesa Patients Association in Costa Mesa, the Whittier Collective in Whittier, and APCC in San Juan Capistrano.
Walker, who has two prior felony drug-trafficking convictions from state court, admitted that he directed the managers of his marijuana stores to shred records as part of his effort to conceal from tax authorities income earned from the sale of marijuana. Accordingly, it was routine for Walker’s managers to destroy sales records.
Walker admitted in the federal tax case that he earned approximately $25 million from marijuana sales over the course of six years. Walker specifically admitted that he earned $11.4 million in 2009, but reported to the Internal Revenue Service income of only $200,180 and that he owed $2,656 in taxes. In fact, as Walker admitted in the plea agreement, he owes the IRS $944,133 in relation to the 2009 tax year alone.
In relation to the tax years 2006 through 2011, Walker agreed to pay the IRS more than $2.4 million, as well as $1.8 million in restitution to the California Board of Equalization. In addition to the $4.2 million he has agreed to pay to federal and state tax authorities, Walker has agreed to forfeit to the government $25 million in illegally obtained income, which includes, among other assets, cash, his $1.7 million home in San Clemente, a string of mobile homes in Mammoth Lakes, rental properties in Long Beach, and his interest in two strip clubs.
The plea agreement provides for an enhancement to Walker’s sentence because he possessed firearms in relation to the drug-trafficking offense. Authorities discovered in one of Walker’s “stash houses” an AK-47-style assault rifle, three other firearms and ammunition. During a search of Walker’s residence, authorities also found nearly $400,000 in cash hidden in a safe, as well as another approximately $145,000 in cash throughout the house.
After Walker pleaded guilty to the drug conspiracy and tax evasion charges, he surrendered and is now in federal custody.
United States District Judge James V. Selna is scheduled to sentence Walker on July 22. At sentencing, Walker faces a maximum possible sentence of life in federal prison and a mandatory minimum sentence of 10 years. In the plea agreement, which contemplates a sentence of more than 20 years, Walker agreed not to argue for a sentence of less than 15 years. The actual prison sentence will be determined by Judge Selna.
The remaining defendants in this case are scheduled to go on trial on September 24.
Release No. 13-047
Operators of Louisiana Home Health Company Convicted in $17.1 Million Health Care Fraud SchemeRead the Press Release
The owner and the director of nursing of a Louisiana home health agency were each convicted late Friday for conspiring to defraud Medicare of $17.1 million announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Donald J. Cazayoux Jr. of the Middle District of Louisiana; Mike Fields, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas regional office; Michael Anderson, Special Agent in Charge of the FBI’s New Orleans Division; and Louisiana State Attorney General James Buddy Caldwell.
After a six-day trial, Louis T. Age, Jr., 64, and Verna S. Age, 60, both of Slidell, La., were each convicted by a federal jury in the Middle District of Louisiana of one count of conspiracy to commit health care fraud. Louis Age was also convicted of one count of conspiracy to defraud the United States and to pay and receive illegal health care kickbacks. Verna Age was previously convicted in this case of one count of conspiracy to defraud the United States and to pay and receive illegal health care kickbacks.
Louis Age owned South Louisiana Home Health Care Inc. and operated this company along with his former wife, Verna Age, who served as the company’s director of nursing. According to evidence presented at trial, Louis and Verna Age paid recruiters, including Mary L. Johnson, to obtain Medicare beneficiary information. The evidence showed that Louis Age hired and paid medical doctors, including Michael S. Hunter, to sign referrals and certifications for home health services that were not medically necessary. As a registered nurse and director of nursing for South Louisiana Home Health Care, Verna Age falsified and directed others to falsify certification evaluations and other forms to make it appear that the home health services were medically necessary.
Evidence at trial showed that South Louisiana Home Health Care fraudulently billed Medicare for home health care claims and was paid $17.1 million between 2005 and 2011.
At trial, Ayanna Age Alverez, who previously pleaded guilty in this case, testified that she was trained by her father, Louis Age, and her stepmother, Verna Age, to pay recruiters kickbacks to recruit beneficiaries, to falsify patient files and to pay doctors kickbacks for their signatures on home health certifications. Medicare beneficiaries testified that they did not need the services that South Louisiana Home Health Care billed to Medicare.
Age Alverez, Johnson and Hunter have pleaded guilty in this case and await sentencing. Co-defendant Milton L. Womack, who was also charged in the August 2011 indictment, died in July 2012.
Sentencing dates for Louis and Verna Age have not yet been scheduled. The conspiracy to commit health care fraud count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, and the conspiracy to pay health care kickbacks carries a maximum penalty of five years in prison and a $250,000 fine.The case was prosecuted by Trial Attorneys David Maria and Abigail Taylor of the Criminal Division’s Fraud Section, with assistance from Trial Attorney Arunabha Bhoumik of the Criminal Division’s Fraud Section. The case was investigated by the FBI, HHS-OIG and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS's Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Northwood Man Sentenced to Prison for Violating Copyright LawsRead the Press Release
Jeffrey J. Reichert was sentenced to one year and one day in prison for for violating the Digital Millennium Copyright Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Reichert, age 27, of Northwood, Ohio, was found guilty earlier this year following a jury trial before U.S. District Judge Donald C. Nugent.
On April 3, 2012, a federal grand jury returned a one-count indictment charging Reichert with knowingly manufacturing, importing, offering to the public, or otherwise trafficking in technology, products, services, devices, components or parts thereof, which were primarily designed to circumvent technological measures designed to effectively control access to a work copyrighted under Title 17 of the United States Code, for purposes of commercial advantage or private financial gain.
Specifically, the defendant was charged with trafficking in modification chips (also known as “Mod Chips”) which are primarily designed to circumvent the technological measures designed into video game consoles (such as the Nintendo Wii) to prevent access to copyrighted works.
This case was prosecuted by Assistant U.S. Attorneys Robert W. Kern and Chelsea Rice of the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Immigration and Customs Enforcement (ICE).
New York Pimp Pleads Guilty to Sex TraffickingRead the Press Release
Baltimore, Maryland - Charles Anderson, a/k/a “Chuck Corners,” a/k/a “Yowzer,” age 25, of Brooklyn, New York, pleaded guilty today to conspiracy to commit sex trafficking.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.
According Anderson’s plea agreement, he assisted his co-conspirator, a long-time friend of Anderson’s, who targeted female prostitutes between the ages of 19 and 28, to force them to work for him by engaging in commercial sex acts in order to make money. Anderson helped his co-conspirator locate female prostitutes that were working alone (i.e., without the oversight of a pimp) by searching websites that hosted advertisements for commercial sex services, then called or text messaged the telephone numbers listed in the advertisements, masquerading as a prospective client, helping his co-conspirator to schedule a hotel “date” with prostitutes. On other occasions, Anderson agreed to loan his cellular phone to his co-conspirator so he could call the prostitutes directly from an unrecognized telephone number. Anderson knew that his co-conspirator intended forcibly to coerce the girls to work as his prostitutes.
Anderson and the co-conspirator shared an apartment in Brooklyn, where Anderson saw the co-conspirator bring female prostitutes against their will. The prostitutes stayed in the co-conspirator’s room, where Anderson sometimes overheard his co-conspirator physically assaulting the females and forcing them to perform sex acts. On one occasion in the Spring of 2010, his co-conspirator returned to the apartment with a prostitute who had been brought there against her will, while at least two additional females were already detained against their will within the co-conspirator’s bedroom. Anderson had agreed to monitor the involuntary detainees while his co-conspirator traveled for approximately six hours in search of an additional female prostitute in Maryland. Anderson also helped his co-conspirator locate female victims who had escaped. He was also aware that his co-conspirator had two firearms in the apartment, a .9mm pistol and a larger sub-machine gun, along with corresponding ammunition.
While his co-conspirator was incarcerated in the Spring of 2010, Anderson agreed to hold the prostitutes’ earnings, which he later provided to his co-conspirator. These prostitutes both received clients inside the apartment and attended “outcall dates,” meeting clients at locations outside of the apartment.
Anderson faces a maximum of life in prison for sex trafficking. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 14, 2013 at 2:15 p.m.
The case was investigated by the Maryland Child Exploitation Task Force, with assistance from the Maryland Human Trafficking Task Force, which was formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of both task forces include federal, state and local law enforcement. The Maryland Human Trafficking Task Force also includes victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI’s Baltimore and New York offices and the Montgomery County Police Department for their work in the investigation and thanked the Montgomery County State’s Attorney’s Office, the Department of Homeland Security and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Mark W. Crooks and Paul E. Budlow, who are prosecuting the case.
Monmouth County, N.J., Man Sentenced to 41 Months in Prison for Distributing Images of Child Sexual Abuse via BlackberryRead the Press Release
TRENTON, N.J. — A Monmouth County, N.J., man was sentenced today to 41 months in prison for using his Blackberry smartphone to distribute images of child sexual abuse, including to a stranger in Nevada, U.S. Attorney Paul J. Fishman announced.
John Nutt, 55, of Asbury Park, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an Information charging him with one count of distribution of child pornography. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:On April 10, 2011, a woman in Nevada received an image of child pornography on her cellular telephone via picture message from a phone number not known to her. When she reported this event to Nevada law enforcement, law enforcement officers determined that the phone number belonged to Nutt, and that Nutt lived in Asbury Park.
On May 19, 2011, officers from the Asbury Park Police Department and the Monmouth County Prosecutor’s Office executed a search warrant at Nutt’s residence and seized his Blackberry smartphone, which federal investigators later determined had been used to distribute and receive child pornography.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security Immigration and Customs Enforcement, Homeland Security Investigations, in New Jersey under the direction of Special Agent in Charge Andrew M. McLees; the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni; the Asbury Park Police Department, under the direction of Chief Mark Kinmon; and the Mineral County, Nev., Sheriff’s Department, under the direction of Sheriff Michael Dillard, with the investigation leading to today’s guilty plea.
In addition to the prison term, Judge Pisano sentenced Nutt to five years of supervised release. He must register as a sex offender.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Minneapolis Felon Indicted for Possessing A .22-caliber PistolRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late last week charges a 20-year-old Minneapolis man for being a felon in possession of a .22-caliber pistol. Marcus Rashad Davis was charged with one count of being a felon in possession of a firearm. The indictment, which was filed on January 22, 2013, was unsealed following Davis’s initial appearance in federal court on March 28, 2013.
The indictment alleges that on June 15, 2012, Davis possessed the semi-automatic weapon. Because he is a felon, Davis is prohibited under federal law from possessing a firearm at any time. His prior Illinois convictions include manufacture/delivery of a controlled substance (2008), possession with intent to deliver cannabis (2008), and burglary of a vehicle (2011).
In the current federal case, Spencer faces a potential maximum penalty of ten years in prison. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Maryland Man Sentenced to 30 Years in Prison for Centreville MurderRead the Press Release
ALEXANDRIA, Va. – Tasheik Ashanti Champean, 46, of Suitland, Md., was sentenced today to 30 years in prison, followed by a three year term of supervised release, for his role in a 2010 robbery which resulted in the death of Jose Cardona.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Lt. Colonel Edwin C. Roessler, Jr., Acting Fairfax County Chief of Police made the announcement after Sentencing by United States District Judge Anthony J. Trenga.
Champean pleaded guilty on December 7, 2012, to conspiracy to commit Hobbs Act robbery and use of a firearm during a crime of violence causing death.
According to court records, Champean conspired with Reynard Lazaro Prather and another man to rob the owner of a check-cashing facility at the store owner’s residence in Centreville, where the conspirators believed the target kept the store’s proceeds.
On May 17, 2010, Champean and Prather drove from Maryland to a shopping center in Virginia, where a third co-conspirator picked them up and dropped them off at the target’s residence. Champean and Prather – both armed with semi-automatic pistols – entered the target’s garage to await the target’s arrival. When the owner’s son and an employee, Jose Cardona, attempted to access the garage, they were confronted by Champean and Prather. The four men immediately engaged in a struggle over the intruders’ two firearms. During the struggle, Cardona was shot and killed.
Prather was previously prosecuted in the Eastern District of Virginia for his role in the offense. On June 1, 2012, Prather was also sentenced to 30 years in prison.
This case was investigated by the Fairfax County Police Department. Assistant United States Attorneys Michael Rich and Zachary Terwilliger are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Maryland Man Sentenced to 13-Year Prison Term for Repeatedly Stabbing A Man in 2012 Attack-Victim Was Dating Defendant’s Ex-Girlfriend-Read the Press Release
WASHINGTON - Eugene Freeman, 30, of Temple Hills, Md., has been sentenced to a 13-year prison term on charges stemming from an attack in which he repeatedly stabbed a man who was dating his ex-girlfriend, U.S. Attorney Ronald C. Machen Jr. announced today.
Freeman was found guilty by a jury in December 2012, following a trial in the Superior Court of the District of Columbia, of charges of aggravated assault while armed, mayhem while armed, assault with a dangerous weapon and assault with significant bodily injury. He was sentenced March 29, 2013 by the Honorable Florence Pan.
According to the government’s evidence, Freeman and his former girlfriend broke up in April 2012 and have two children. Shortly after the break-up, the ex-girlfriend began dating the victim, and Freeman began to threaten them. On May 20, 2012 at approximately 8:30 p.m., Freeman went to his ex-girlfriend’s house in the 4500 block of South Capitol Street to pick up the two children. As Freeman walked away from the building with his children, the victim came around the corner. Freeman turned around, saw the victim and went after him with a knife.
As the confrontation continued, outside and inside the building - witnessed by the children - Freeman stabbed the victim twice in the back. He then cornered the victim underneath the stairwell of the building and repeatedly stabbed him. All told, Freeman stabbed the victim six times, including once in the eye. The victim lost his left eye as a result of the assault.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked in the case from the U.S. Attorney’s Office, including Litigation Technology Specialist Leif Hickling; Victim/Witness Advocates Maria Shumar and Shawn Slade; Paralegal Specialists D’Yvonne Key and Kristy Penny, and Assistant U.S. Attorney Adrienne Dedjinou, who prosecuted the matter.
13-112Manhattan U.S. Attorney Announces the Appointment of Chief CounselRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced the appointment of Joon H. Kim as the Office’s Chief Counsel.
Mr. Kim returns to the U.S. Attorney’s Office from Cleary Gottlieb Steen & Hamilton LLP, where he has been a partner in the litigation and enforcement group. At Cleary Gottlieb, which Mr. Kim rejoined in 2006 and where he also worked as an associate from 1997 to 2000, Mr. Kim’s practice has focused on white-collar criminal defense and regulatory enforcement, as well as commercial civil litigation and international arbitration. He has also represented corporations and individuals in a wide range of investigations and disputes, including matters involving securities fraud, insider trading, accounting fraud, antitrust violations and corruption.
From 2000 to 2006, Mr. Kim was an Assistant U.S. Attorney in the Southern District, where he investigated and prosecuted a variety of crimes, including racketeering, murder, money laundering, securities fraud, firearms and narcotics offenses, tax evasion, and terrorism. He spent his last four years in the Office in the Organized Crime and Terrorism Unit, prosecuting violent organized crime syndicates, including Asian gangs and the Mafia. During his tenure, Mr. Kim convicted a number of high-ranking organized crime figures, including Peter Gotti, then Boss of the Gambino Family, for conspiring to kill Salvatore “Sammy the Bull” Gravano.
Mr. Kim graduated Phi Beta Kappa from Stanford University in 1993 and graduated cum laude from Harvard Law School in 1996. After law school, he clerked for the Honorable Miriam Goldman Cedarbaum of the Southern District of New York until 1997.
In making the appointment, Manhattan U.S Attorney Preet Bharara said: “I am thrilled to welcome Joon back to the Office, where we will be lucky to have his smart and thoughtful judgment. I am confident that his rigor and intellect will enormously benefit the people of the Southern District of New York.”
Managing Director of Walnut Creek Investment Company Arrested for Defrauding LendersRead the Press Release
OAKLAND, Calif. – Stephen B. Lopez, age 57, of Lafayette, California, was arrested on Thursday, March 28, 2013 on mail fraud, wire fraud and money laundering charges, United States Attorney Melinda Haag announced.
According to the indictment, Lopez was the managing director of Lighthorse Ventures, LLC, a private equity investment company founded in 2000 and located in Walnut Creek, California. Lopez solicited loans on behalf of Lighthorse, drafting and signing promissory notes in which he promised to timely pay the principal and interest of 10% and 12% per year. In furtherance of the fraud, Lopez allegedly produced and distributed brochures that falsely represented Lighthorse’s ownership interests in companies, real properties, and oil wells, and overvalued and misrepresented the entities owned by Lighthorse. When soliciting loans, Lopez allegedly failed to inform the prospective lenders that: (1) he had previously failed to return the principal and interest to the majority of lenders, and (2) he would shortly be required to make a final payment of $600,000 to Lonestar Trust as a result of a civil settlement agreement between Lopez and his former clients.
The money laundering charges allege that Lopez used the fraud profits, that is, money received from lenders on behalf of Lighthorse, to pay a personal debt of $600,000 owed to clients and to make a $50,000 payment to a consultant.
Lopez made his initial appearance on March 29, 2013 before a magistrate judge in San Francisco and was released on a $100,000 bond.
The maximum statutory penalty for each count of mail fraud and wire fraud is 20 years imprisonment, $250,000 fine or twice the amount of gain or loss, whichever is greater, three years of supervised release, a $100 special assessment, and restitution. The maximum statutory penalty for money laundering is 10 years in prison, a fine of $250,000 or twice the gain or loss from the offense conduct, three years supervised release, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 355.
Stephen Corrigan is the Assistant U.S. Attorney who is prosecuting this case with the assistance of Kathleen Turner. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Lopez must be presumed innocent unless and until proven guilty.
(Lopez indictment )
Lincoln Man Sentenced for Conspiracy to Distribute Cocaine, Methamphetamine, and MarijuanaRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 1, 2013, Aaron Raul Nunez, 25, of Lincoln, was sentenced to 10 years (120 months) in prison for his involvement in a conspiracy to distribute cocaine, methamphetamine, and marijuana between January of 2006 and September 21, 2012. Nunez’s sentence was ordered to be run concurrently with a state sentence of 20 months to 5 years imposed on March 29, 2013, in Lancaster County District Court after Nunez’s probation was revoked in a related case. Following the prison term, Nunez will serve five years on supervised release. He was also ordered to forfeit $6,242 in cash to the United States.
Nunez was held responsible for the distribution of at least 5 kilograms (approximately 11 pounds) of cocaine, at least 50 grams (approximately 1 ¾ ounces) of methamphetamine, and at least 10 kilograms (22 pounds) of marijuana in the Lincoln area. On September 21, 2012, Nunez was arrested on a federal warrant and was found in possession of $1,980.00 in cash. A search warrant was executed at Nunez’s Lincoln apartment and garage where officers found approximately ¾ ounce of cocaine, more than 1 pound of marijuana, and an additional $4,262.00 in cash.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff's Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Leader of Whatcom County Drug Distribution Ring Pleads Guilty to Gun and Drug CrimesRead the Press Release
The leader of a Whatcom County based drug distribution ring, who corrupted a state prison worker, pleaded guilty to gun and drug crimes, announced U.S. Attorney Jenny A. Durkan. TODD HAMILTON, 35, pleaded guilty today to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. The drug crime carries a mandatory minimum 10 years in prison, and the firearm charge carries a mandatory minimum five years in prison to run consecutive to any sentence imposed on the drug crime. Prosecutors and HAMILTON’s attorneys have agreed to recommend a sentence between 16 and 21 years in prison when he is sentenced by U.S. District Judge John C. Coughenour on June 11, 2013.
According to the plea agreement and other records filed in the case, upon his January 2011 release from Washington State prison, HAMILTON began running a heroin and methamphetamine distribution ring operating in Whatcom County. During a court authorized wiretap investigation, law enforcement learned HAMILTON purchased significant quantities of methamphetamine and heroin from his Olympia, Washington based supplier and had it transported to the Bellingham area for further distribution. When HAMILTON’s home was searched in December 2011, investigators found meth and heroin, drug ledgers and packaging Materials. They also found a loaded Cobra Enterprise, Inc. .45 caliber pistol.
During the investigation, DEA agents learned that HAMILTON purchased several pounds of methamphetamine and heroin each week, spending tens of thousands of dollars to redistribute the drugs in his community for profit. The investigation also revealed that HAMILTON had recruited an employee of the Department of Corrections (DOC) to assist him with his drug trafficking. The employee, also charged and convicted in this conspiracy, used his access to a Department of Corrections computer to determine whether law enforcement was investigating HAMILTON. He no longer works for the DOC.In all, 14 defendants have pleaded guilty in this conspiracy. Those who have been sentenced so far have received five to eight years in prison.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved, and was investigated and prosecuted pursuant to the United States Attorney’s Northwest Washington Hot Spot Initiative. The case was investigated by the Drug Enforcement Administration, Washington State Department of Corrections, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Northwest Regional Drug Task Force.
The case was prosecuted by Assistant United States Attorneys Jill Otake and Roger Rogoff.
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Kansas Woman Sentenced for $561,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson United States Attorney for the Western District of Missouri, announced that a Leavenworth, Kan., woman was sentenced in federal court today for a bank fraud scheme in which she embezzled more than $561,000 from her North Kansas City, Mo., employer.
Paula A. Cathey, 53, of Leavenworth, was sentenced by U.S. District Judge Dean Whipple to three years and five months in federal prison without parole. The court also ordered her to pay $556,935 in restitution.
On Oct. 10, 2012 Cathey pleaded guilty to 15 counts of bank fraud. Cathey was employed from Sept. 7, 1997, through March 31, 2011, as the controller for Mega Industries Corp., a heavy highway and general contractor construction company in North Kansas City with approximately 25 employees.
Cathey admitted that she embezzled approximately $561,552 as a result of her fraud scheme. Cathey obtained checks from the office of a subordinate, wrote unauthorized checks to herself and, without the knowledge or consent of the company presidents, forged their signatures on the checks. Cathey deposited the checks in her personal bank account and used the money largely for gambling.
In order to conceal her fraud, Cathey manipulated the company’s ledgers and created false accounting entries. Cathey was the first person to get the mail; when monthly bank statements came in the mail, she removed them and destroyed most of them.
This case was prosecuted by Senior Litigation Counsel Linda Parker Marshall. It was investigated by the FBI.
Justice Department to Monitor Elections in Kansas and NebraskaRead the Press Release
The Justice Department announced today that the Civil Rights Division will monitor elections on April 2, 2013, in Finney County, Kan., and Douglas County, Neb. The monitoring will ensure compliance with the Voting Rights Act of 1965 and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Justice Department personnel will monitor polling place activities in Finney and Douglas Counties. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from the Office of Personnel Management, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Houston Man Indicted for Sex Trafficking of MinorsRead the Press Release
HOUSTON – Tevon Harris aka “Da Kidd” and “King Kidd,” 21, of Houston, has been ordered detained pending trial on charges related to the trafficking of minors for commercial sex, United States Attorney Kenneth Magidson announced today.
Scott made his initial appearance today before U.S. Magistrate Judge Francis Stacy. The indictment was returned March 20, 2013, and he was subsequently arrested March 26 by members of the Houston FBI Innocence Lost Task Force. Harris is charged with two counts of trafficking of a children under 18 for commercial sex while knowing they were underage and using force, fraud or coercion to cause them to engage in a commercial sex act. The crimes allegedly occurred in January and July of 2012.
An investigation by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department, developed this case using statements from victims as well as on line advertisements for the victims’ services and hotel records from several hotels.
At the detention hearing today, information was presented that in order to gain the trust of victims, whom he allegedly met on social networking sites, Harris would tell them he was going to help them become models. He would allegedly pick them up, take them to motel rooms and force them to have sex with him. The allegations further indicate he would also deprive them of their cell phones, thereby cutting off their communication with the outside world. In court, it was also presented that he would use violence to keep the minors cooperating with him. In one instance, he allegedly deprived a victim of food more than four days period because he did not believe she was servicing his clients well enough, according to allegations. He allegedly also supplied her with marijuana and alcohol. It is also alleged that the victims were photographed and their images were posted in online ads for prostitution. All monies they earned were kept by Harris, according to the information presented in court. One of the victims was allegedly beaten with a towel rack torn from a motel room wall when Harris found her using the phone to call her mother for help.
Harris was ordered detained pending trial, currently set before United States District Judge Sim Lake on June 4, 2013.
Harris faces up to life imprisonment and a maximum fine of $250,000. Upon completion of any prison term imposed, Harris also faces a maximum of lifetime term of supervised release and he will be required to register as a sex offender.
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack of the Southern District of Texas.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.