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Thursday 31 January 2013
Two Charged with Using Stolen Identities to File Fraudulent Income Tax Returns Claiming More Than $1.3 Million in RefundsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Internal Revenue Service agents arrested Roma L. Sims, 34, Westerville, Ohio and Samantha C. Towns, 30, Reynoldsburg, Ohio today based on criminal complaints that they filed 559 individual income tax returns for 2011 claiming total refunds of $1,312,513.89 using the stolen personal information of victims including many Kentucky residents who were receiving disability or other public assistance benefits.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the arrests today.
According to an affidavit filed in support of the complaints, Sims established Express Tax and Accounting on Morse Road in Columbus in December 2011 and Towns organized X-Press Taxes and Accounting Services in Reynoldsburg, Ohio in January 2012. They allegedly filed the fraudulent returns and had the refunds deposited into five bank accounts they opened and controlled.
Sims and Towns appeared before U.S. Magistrate Judge Elizabeth Preston Deavers who scheduled a detention hearing for Friday, February 1 at 2 p.m.
The complaint charges each individual with aggravated identity theft, which carries a mandatory two-year sentence, conspiracy which is punishable by five years in prison and wire fraud, which is punishable by up to 30 years in prison. If convicted, mandatory restitution to victims would be part of any sentence.
“Identity theft is a serious crime that victimizes honest taxpayers and causes immense hardship,” said Richard Weber, Chief, IRS Criminal Investigation. “Today’s actions should serve as a warning that we will continue to work with our law enforcement partners and the U.S. Attorney’s office to hold accountable those individuals who undermine our income tax system by filing false claims for refunds.”
U.S. Attorney Stewart commended the ongoing investigation by IRS agents, and Assistant U.S. Attorney Dan Brown, who is representing the United States in the case.
Allegations in a criminal complaint are accusations only. Defendants should be presumed innocent until and unless proven guilty in court.
Two Charged in Federal Indictments for Alleged Embezzlement of Federal Tax ChecksRead the Press Release
PROVIDENCE, R.I. – An investigation by Internal Revenue Service – Criminal Investigation (IRS-CI) has resulted in the federal indictment of two individuals from Providence, R.I., on charges of allegedly embezzling federal tax checks in excess of $1,000, and allegedly converting the funds for personal use, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston Field Office of IRS-CI.
Elvy Gomez, 39, is charged with one count each of theft of government property, aggravated identity theft, fraudulent endorsement of United States Treasury checks, and money laundering. The indictment alleges that Gomez embezzled government tax checks totaling in excess of $1,000, and, without permission, used the identity of another person and that person’s bank account to deposit and withdraw funds that were fraudulently obtained. It is also alleged that Gomez used the bank account to wire $17,000 to the Dominican Republic, which had been derived from unlawful activity.
In an unrelated matter, a federal grand jury returned an indictment charging Leticia Gonzalez, 39, with one count of theft of government property. It is alleged that Gonzalez embezzled government tax checks totaling in excess of $1,000.
In addition, both defendants face forfeiture allegations of all properties which constitute, or are derived from, proceeds traceable to the embezzlement allegations.
“IRS Criminal Investigation has made investigating refund fraud, identity theft and related crimes a top priority," stated William P. Offord, Special Agent in Charge of the Boston Field Office of IRS-CI. “Law enforcement is serious about investigating these crimes and holding to account those who would defraud the government.”
An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The defendants will appear in federal court on dates yet to be determined for arraignment. If convicted as charged, theft of government property, fraudulent endorsement of U.S. Treasury checks and money laundering are each punishable by up to 10 years in federal prison, followed by up to 3 years supervised release; and a fine of up to $250,000. Aggravated identity theft is punishable by a mandatory sentence of two years in federal prison, followed by up to 3 years supervised release; and a fine of up to $250,000.
Agents from the U.S. Secret Service assisted in the investigation of these matters.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
Contact: 401-709-5357
[email protected]Two Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
Two members of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Ben Christian Dillon, aka “Tuff,” 40, of Houston, and James Marshall Meldrum, aka “Dirty,” 40, of Dallas, each pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Dillon, Meldrum and other ABT gang members and associates, agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Dillon, Meldrum and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
Dillon and Meldrum admitted to being ABT gang members and engaging in multiple acts in support of the criminal enterprise. Dillon admitted to trafficking in methamphetamine, acting as an enforcer to collect drug debts owed to the ABT enterprise, committing acts of arson for the gang and attempting to kill a fellow ABT gang member who had been marked for death by senior ABT officials. Meldrum admitted to trafficking in methamphetamine and severely beating a subordinate gang member.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, Dillon and Meldrum each face a maximum penalty of life in prison. Dillon’s sentencing hearing is scheduled for April 24, 2013, and Meldrum’s sentencing hearing is scheduled for Sept. 26, 2013.
Dillon and Meldrum are two of 34 defendants charged in October 2012 with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Fort Worth, Texas, Police Department; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Montgomery County District Attorney’s Office; Atascosa County District Attorney’s Office; and the Kaufman County, Texas, District Attorney’s Office.The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Jay Hileman of the Southern District of Texas.
Tuscaloosa Man Sentenced 18 Months for Possessing and Intending to Distribute SteroidsRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Tuscaloosa man to 18 months in prison for possessing anabolic steroids with the intent to distribute the performance-enhancing drugs, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Special Agent in Charge Clay A. Morris.
U.S. District Judge R. David Proctor sentenced JOHN WADE WALKER, 29, on one count of Possession with the Intent to Distribute a Controlled Substance. Walker pleaded guilty to the charge in April 2012. He is scheduled to report to prison April 10, 2013.
According to Walker’s December 2011 indictment, the steroids recovered at his Tuscaloosa home when he was arrested in August 2011 included: Dromostanolone Prioprionate Trenbolone Enanthate Testosterone Proprionate, Methenolone Enanthate, Testosterone Cypionate, Testosterone Enanthate, Nandrolone Decanoate, Testosterone Proprionate Testerone Isocaproate Testosterone Phenylproprionate, Dromostanolone Proprionate, Trenbolone Enanthate, Boldenone Undecylenate, Testosterone, Stanozolol, Oxymethelone, and Methandrostenolone.
The DEA, in conjunction with the West Alabama Drug Task Force, investigated the case. Assistant U.S. Attorney John B. Felton is prosecuting the case.
Ten Indicted on Prescription Drug ChargesRead the Press Release
LYNCHBURG, VIRGINIA -- A Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Roanoke has charged ten individuals with conspiring to possess with the intent to distribute and distribution of a variety of prescription drugs, as well as other charges.
In an indictment returned under seal on January 17, 2013 and unsealed late Wednesday following the defendants’ initial court appearances, the grand jury has charged the following:
Bryant Edward Reynolds, 47, of Thaxton, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone and two counts of distributing oxycodone.
Danielle Norman Reynolds, 37, of Thaxton, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone , one count of distributing adderall, one count of distributing methadone and one count of distributing oxycodone.
Mark Anthony Campbell, 47, of Bedford, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone .
Timothy Lee Goodman, 23, of Thaxton, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone and one count of distributing suboxone.
Matthew Thomas Barlow, 24, of Bedford, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone, one count of distributing suboxone, one count of possessing with the intent to distribute oxycodone, one count of possessing with the intent to distribute distributing marijuana, one count of using a firearm in furtherance of a drug trafficking crime, one count of being a prohibited person in possession of a firearm and one count of distributing suboxone.
Jeffery Earl Reynolds, 39, of Thaxton, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone, two counts of distributing oxycodone, one count of possessing with the intent to distribute methadone, one count of using a firearm in furtherance of a drug trafficking crime and one count of being a prohibited person in possession of a firearm.
Tony Gene Abee, 40, of Thaxton, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone.
Dana Michelle Parker, 32, of Thaxton, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone.
George Franklin Lynch, 38, of Thaxton, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone.
Andy Lee Dooley, 27, of Bedford, Va., with one count of conspiracy to possess with the intent to distribute and to distribute Oxycontin, oxycodone, methadone, Adderall, oxymorphone, hydromorphone and suboxone.
If convicted, each defendant faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $1,000,000 on each count.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, the Drug Enforcement Administration and the Bedford County Sheriff’s Office. Assistant United States Attorney Ashley Neese will prosecute the case for the United States.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Telford Man Pleads Guilty to Illegal Distribution of SteroidsRead the Press Release
GREENEVILLE, Tenn. – On Jan. 30, 2013, Freddie Matthew Sergent, 30, of Telford, Tenn., pleaded guilty in U.S. District Court to unlawfully distributing anabolic steroids. Sentencing has been set for 9:00 am on August 12, 2013. Sergent faces up to 10 years in prison and a $500,000 fine.
Anabolic steroids are synthetically produced variants of the naturally occurring male hormone testosterone and are regulated under the Controlled Substances Act (CSA) as a Schedule III controlled substance. As a Schedule III controlled substance, they may not be possessed lawfully in the United States without a prescription. Distribution and possession with intent to distribute anabolic steroids by a person who is not a Drug Enforcement Agent (DEA) registrant, such as a physician or a pharmacy, is unlawful and a violation of the CSA.
From approximately 2009 to April 2012, Sergent unlawfully distributed anabolic steroids from his residence in Telford, Tenn. He obtained raw steroid powders and other materials through the U.S. mails and other carriers from sources in China. Sergent further processed and packaged the steroids into vials containing approximately 300 milliliters of a solution containing an anabolic steroid, to include the Schedule III anabolic steroid boldenone undecylenate, often referred to by the trade name “Equipoise.” He then sold the steroids to customers in eastern Tennessee as well as customers across the United States.
In March 2012 Sergent mailed a package to a customer in Michigan that was intercepted and opened pursuant to a federal search warrant. Agents found a glass bottle with a label affixed which read in part, "Equipoise 300 mg/ml." Subsequent testing by the DEA Laboratory determined the bottle to contain boldenone undecylenate, an anabolic steroid.
In April 2012, a federal search warrant was executed at Sergent’s residence. Agents recovered steroid powders, materials used to process and package steroids, syringes, computers used to order and sell steroids over the Internet, and three firearms. Sergent admitted that he had been ordering steroid powder from China, processing and packaging the steroids, and selling the steroids to customers throughout the United States, sending the steroids through the U.S. mail. He said he had sold approximately $80,000 worth of steroids at $40 per vial.
Agencies involved in this investigation which led to the charges and guilty plea included the Drug Enforcement Administration, U.S. Postal Inspection Service, Homeland Security Investigations, and the Washington County Sheriff’s Office. Assistant U.S. Attorney Neil Smith represented the United States.
Tampa Man Pleads Guilty in Tax Fraud SchemeRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces that Larry Lee Northern, Jr. (29, Tampa) has pleaded guilty to theft of government funds and aggravated identity theft. Northern faces a maximum penalty of 12 years in federal prison.
According to the plea agreement, on October 6, 2011, Northern was stopped by law enforcement officers for excessive speeding. During the traffic stop, he was found to be in possession of illegal narcotics and various prepaid debit cards. Specifically, Northern possessed 15 prepaid debit cards in the names of various individuals, as well as multiple Wal-Mart Money Cards, for a total of 32 separate cards. In addition, Northern had internal corporate documents from a local healthcare company. The documents contained the personal identification information of 32 individuals. The individuals were later identified as current or former clients of the healthcare company. Northern also had $15,700.00 in cash.
Subsequent investigation determined that 12 of the 15 prepaid cards were credited with U.S. Treasury income tax refunds. The refunds on the prepaid cards, totaling $93,879.00, were obtained as a result of the filing of fraudulent income tax returns. The fraudulent returns were filed in the names of individuals who reportedly had not given Northern permission to file the returns for them. Of the 17 Wal-Mart Money Cards possessed by Northern, nine of the cards had a total of $65,463.00 loaded onto them. These were also determined to be the proceeds of fraudulently filed income tax returns. Based upon Northern’s possession of the 32 cards and cash, the total loss to the government was $175,042.00.
This case was investigated by the Internal Revenue Service Criminal Investigation, U.S. Department of Health and Human Services, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Tampa Man Arrested and Charged with Making False Statements During His Naturalization ProcessRead the Press Release
Tampa, FL - United States Attorney Robert E. O’Neill announces the arrest and unsealing of a federal indictment charging Georges Jean-Philippe (48, Tampa), a/k/a Benedique Jean-Philippe, with making false statements in connection with his naturalization application. Special agents from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) arrested Jean-Philippe yesterday at his home in Tampa. United States Magistrate Judge Anthony Porcelli ordered him detained and held without bond.
According to the indictment, Jean-Philippe made false statements in his application for naturalization to become a United States citizen. During his application for citizenship, Jean-Philippe, a citizen of Haiti, falsely withheld information that he had previously been ordered deported from the United States under a different name and thus made false statements as to his ineligibility for naturalization. As a result of those falsehoods, he illegally obtained United States citizenship, in 2008, under a name different from the one he used in his initial dealings with U.S. immigration authorities in 2002.
This case was investigated by ICE HSI. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Superseding Indictment Returned Against Longtime Fugitive Enrico PonzoRead the Press Release
BOSTON - A Boston man was charged today in federal court with 18 counts of racketeering, drug trafficking, witness tampering and other charges.
Enrico Ponzo, a/k/a Jeffrey John Shaw, a/k/a Jay Shaw, 44, of Boston, Mass., and Marsing, Idaho, was charged in a superseding indictment with racketeering (RICO) conspiracy including conspiracy to commit murder in aid of racketeering; attempted murder and assault with a dangerous weapon; conspiracy to distribute and to possess with intent to distribute cocaine; possession of cocaine with the intent to distribute; multiple counts of using, possessing, or carrying a firearm during or in relation to a crime of violence or a drug trafficking crime; conspiracy to use extortionate means to collect or attempt to collect extensions of credit; use of extortionate means to collect or attempt to collect extensions of credit; conspiracy to commit extortion; extortion and attempted extortion; unlawful flight to avoid prosecution; conspiracy to distribute and to possess with intent to distribute marijuana; conspiracy to launder monetary instruments; laundering of monetary instruments; witness tampering; and forfeiture.
According to the superseding indictment, from June 1989 through December 1994, the Patriarca Family of La Cosa Nostra (“Family”) engaged in various criminal activities, including multiple acts involving murder, racketeering, extortionate credit transactions, extortion and conspiracy. In or about 1991, Francis P. Salemme, a/k/a Frank Salemme, became Boss of the Family. Ponzo and his co-conspirators are alleged to have acted to usurp control of the Family by plotting and attempting to murder Salemme and others who were loyal to Salemme, or who were viewed as rivals in their efforts to control the organized criminal activity in the greater Boston area. It is further alleged that Ponzo and his co-conspirators derived income from illegal activities including extortion, loan sharking, and narcotics distribution, and to have utilized violence and the threat of violence to further their aims.
It is alleged that Ponzo and his co-conspirators engaged in a pattern of racketeering activity that included murdering and conspiring to murder Richard Devlin and Joseph Souza, and conspiring and attempting to murder Salemme, Richard Gillis, Joseph Cirame, Michael Prochilo, Stephen Rossetti and Timothy Lawrence O’Toole, Jr. It is further alleged that Ponzo and his co-conspirators conspired to possess with intent to distribute and to distribute cocaine, and that they committed various other criminal acts including extortion, the use of extortionate means to collect extensions of credit, and using, possessing, or carrying a firearm during or in relation to a crime of violence and a drug trafficking offense.
According to the superseding indictment, from approximately October 1994 through February 7, 2011, Ponzo fled with the intent to avoid prosecution. Ponzo had been a fugitive for more than 16 years when he was apprehended in Idaho in February 2011.
It is further alleged that between approximately October 1994 and March 1999, Ponzo conspired with others to distribute and to possess with intent to distribute more than a ton of marijuana, and at other times to have engaged in acts of money laundering and conspiracy to launder monetary instruments, and witness tampering.
The maximum sentence under the statute is up to life in prison, up to three years of supervised release and a $250,000 fine on each of the racketeering charges. The maximum penalty on the drug trafficking offenses is up to life in prison and a mandatory minimum of 10 years in prison, no less than five years of supervised release and a $10 million fine on each count.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Michael Tabak and Karen Beausey of Ortiz’s Organized Crime Strike Force and Drug Task Force Units.
The details contained in the superseding indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Stratford Doctor Pays $700,000 to Settle False Claims Act AllegationsRead the Press Release
January 31, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that JAMES P. RALABATE, MD, a physician, and his professional corporation, PRIMARY CARE ASSOCIATES P.C., which is located at 2890 Main Street in Stratford, have entered into a civil settlement with the government in which they will pay $700,000 to resolve allegations that RALABATE violated the False Claims Act.
The allegations against RALABATE involve fraudulent billing to Medicare occurring over a five-year period for medical services allegedly provided at various nursing homes in Connecticut. The government alleges that RALABATE billed Medicare for high-level physician services when the services of a physician were not medically necessary. The medical records did not provide documentation necessary to meet the detailed history, examination or medical decision-making requirements necessary to justify the high level of physician care. At times, there was no medical record documenting RALABATE’s visit.
The government further alleges that RALABATE billed Medicare for services he supposedly provided to patients in nursing homes when the patients were, in fact, not present in the nursing homes. Instead, the patients had been transferred to local hospitals for treatment. Yet RALABATE billed government health care programs as if he had provided medical services in the nursing homes.
To resolve their liability under the False Claims Act, RALABATE and his professional corporation will pay $700,000 in order to reimburse the Medicare programs for conduct occurring between January 1, 2006 and August 31, 2011.
In addition, RALABATE has agreed to be subject to an Integrity Agreement with the Office of Inspector General for the U.S. Department of Health and Human Services.
“Health care providers that overcharge Medicare drain critical funds from the Medicare program and increase health care costs,” U.S. Attorney Fein stated. “The U.S. Attorney’s office is committed to vigorously pursuing physicians and other health care providers who submit fraudulent claims to federal health care programs. Providers who submit false claims to the government face serious monetary and administrative sanctions.”
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $5,500 to $11,000 for each false claim.
This case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services. The case was prosecuted by Assistant United States Attorney Anne F. Thidemann, with the assistance of Auditor Kevin A. Saunders.
In entering into the settlement agreement, RALABATE and PRIMARY CARE ASSOCIATES P.C. did not admit liability.
U.S. Attorney Fein encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]St. Peter Man Sentenced for Transporting Illegal AliensRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a St. Peter man was sentenced on one count of transporting illegal aliens. United States District Court Judge Patrick J. Schiltz sentenced Juan Arrazolo, also known as John Arrazolo, to three years of probation, six months of home confinement and a $2,000 fine. Arrazolo was indicted on April 16, 2012 and pleaded guilty on August 16, 2012.
Following today’s sentencing, Mike Feinberg, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations St. Paul Field Office (“ICE HSI”), said, “Those who transport or harbor illegal aliens require secrecy and often coercion to succeed. ICE HSI has a long history of targeting criminals who seek illegal gain at the expense of the innocent. We work with our state and local law enforcement partners to bring justice to anyone who exploits others for illegal profit.”
In his plea agreement, Arrazolo admitted that between October 2006 and October 2011, he transported two undocumented aliens from Texas to Minnesota to work in his business. Arrazolo’s company, Poultry Service Management, provided manual labor to large corporate chicken farms in Minnesota and the surrounding area. The workers loaded chickens for shipping, vaccinated chickens, trimmed chicken beaks, and provided other general labor as requested by the poultry producers. Arrazolo admitted that one of the individuals he transported was a citizen of Mexico, and that he knew the individual was not a U.S. citizen when he transported him from Texas to Minnesota.
This case was the result of an investigation by ICE HSI, the St. Peter Police Department, the Nicollet County Sheriff’s Office, the LeSueur County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp.Springfield Man Sentenced for Possessing Firearms and Ammunition After Felony ConvictionRead the Press Release
BOSTON - A Springfield man was sentenced today for possessing firearms and ammunition while under felony indictment.
Manuel Lora, 23, was sentenced by U.S. District Chief Judge Patty B. Saris to 40 months in prison, followed by three years of supervised release with the special conditions that he avoid the members the Almighty Latin Kings and Eastern Avenue Posse street gangs. In September 2012, Lora pleaded guilty to possession of firearms and ammunition while under felony indictment.On May 28, 2011, at a shooting range in Springfield, Lora fired a variety of pistols and ammunition, all of which had traveled in interstate commerce. Lora, who had been previously convicted of distributing narcotics, gained access to the shooting range by falsely certifying that he had not been convicted of a crime punishable by more than one year in jail. In addition, Lora was facing pending felony charges for possession with intent to distribute a class B controlled substance near a school zone or park
United States Attorney Carmen M. Ortiz; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Boston Field Division; Mark Mastroianni, Hampden County District Attorney; and Commissioner William Fitchett of the Springfield Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz=s Springfield Branch Office.Springfield Man Sentenced for Bank Fraud and Passing Counterfeit SecuritiesRead the Press Release
BOSTON - A Springfield man was sentenced today for committing bank fraud and passing counterfeit securities.
John Jordan, 52, was sentenced by U.S. District Judge Patti B. Saris to 17 months in prison, followed by one year of supervised release and $1,435 in restitution. In September 2012, Jordan pleaded guilty to four counts of bank fraud and four counts of counterfeit security fraud.Jordan created high quality counterfeit checks on his computer and then sold these checks at a discounted price to co-conspirators who would attempt to cash them at local businesses and financial institutions. Jordan surreptitiously acquired legitimate customer and corporate account information that he used on the counterfeit checks making it more likely they would be transacted.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Paul Hart Smyth of Ortiz’s Springfield Branch Office.
Spencer Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty January 30, 2013, in federal court in Sioux City.
Gabriel Ginger, 26, from Spencer, Iowa, was convicted of one count of conspiring to distribute methamphetamine.
At the plea hearing, Ginger admitted his involvement in a conspiracy from about 2010 through August 2011 that distributed more than 50 grams of actual (pure) methamphetamine. On July 21, 2011, law enforcement officers executed a search warrant at Ginger’s residence and seized over 10 grams of methamphetamine which Ginger planned to distribute to others.
Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Ginger remains in custody of the United States Marshal pending sentencing. Ginger faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, a special assessment of $100, and at least four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Spencer Police Department, Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, and the Iowa Division of Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4049.
Sex Offender Sentenced to 25 Years on Child Pornography ChargesRead the Press Release
BOSTON - An Ayer man who fled to Belize was sentenced today for producing, distributing and possessing child pornography.
Thomas A. Donahue, 45, was sentenced by U.S. District Judge F. Dennis Saylor, IV to 25 years in prison, followed by 10 years of supervised release. In October 2012, Donahue pleaded guilty to producing, distributing, and possessing child pornography.
Between March 2010 and February 2011, Donahue produced, distributed, and possessed child pornography, and in February 2011, a search warrant was executed at Donahue’s apartment where a laptop computer, external hard drive and other computer related media were seized. A preliminary search of the devices revealed a large quantity of images and videos depicting child pornography, including pornographic videos that depicted Donahue and a minor male. An extensive investigation led to the identification of the minor male. Sometime between the execution of the search warrant and March 7, 2011, when Donahue was charged via federal complaint, Donahue fled the country. After an extensive manhunt, Donahue was tracked to Belize and was arrested in April 2011 before he was returned to the United States to face charges.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division; and Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. This case was investigated with the assistance of the Bureau of Diplomatic Security Regional Security Office in Belize, and the Special Branch of the Belize Police Department. The case was prosecuted by Assistant U.S. Attorney Cory S. Flashner of Ortiz’s Worcester Branch Office.
Scranton Man Pleads Guilty to Online Enticement of MinorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 46-year-old Scranton resident pleaded guilty today before Senior U.S. District Court Judge A. Richard Caputo to attempting to entice a minor to engage in illegal sexual conduct.
According to United States Attorney Peter J. Smith, Lewis John Davies admitted to using a computer to attempt to persuade a minor to engage in sexual acts with him during April-June 2008.
Davies was indicted by a federal grand jury in June 2008, as a result of an investigation by the Federal Bureau of Investigation and the Scranton Police Department.
Under the terms of the plea agreement, if it is accepted by the court, Davies will be sentenced to between 66 months and 78 months in prison, to be followed by five years of supervised release. The agreement also requires Davies to comply with sex offender registration and treatment requirements. Davies also agreed to forfeit to the United States computers and related material used in the commission of the crime.
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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
San Diego Company Admits Misleading SEC as Part of Settlement Agreement Unico, Inc. Agreed to Pay A Monetary Penalty and to Submit to Oversight by A Government-Approved Monitor for A Period of at Least Three YearsRead the Press Release
United States Attorney Laura E. Duffy announced today that San Diego-based Unico, Inc. (“Unico”) entered into a negotiated settlement in which it admitted that its former CEO, Mark Anthony Lopez, made a false statement to the Securities and Exchange Commission (“SEC”) when he mischaracterized funds received from a lender. Unico also agreed to pay a monetary penalty and to submit to at least three years of oversight by a corporate monitor approved by the United States Attorney’s Office.
As part of the negotiated settlement, Unico (on January 30, 2013) entered into a deferred prosecution agreement with the United States Attorney’s Office before the Honorable William McCurine, Jr. According to the terms of the agreement, the monitor (who is required to act as an independent thirdparty) will have the power to approve—as well as veto—various business and financial decisions that Unico attempts to make. In exchange for Unico’s concessions, the United States Attorney’s Office agreed to postpone its prosecution against Unico for charges related to securities fraud, false statements and obstruction of justice.
The deferred prosecution agreement comes after the January 17, 2013 arrest of Unico’s former CEO on charges of conspiracy to commit securities fraud and obstruction of justice. According to the indictment against Lopez, he conspired with New Jersey-based stock trader Mark Allen Lefkowitz (who previously pled guilty) to manipulate the share price and volume of Unico’s stock to benefit corporate insiders at the expense of shareholders. As a result of the fraud, the company issued approximately 9 billion new shares of its stock that it did not register with the SEC. These new, unregistered shares diluted existing shares, causing their value to drop by as much as $7 million. At the same time, Lefkowitz received free-trading shares from Unico worth more than $28 million, which he sold to unsuspecting buyers on the open market.
Also according to the indictment against Lopez, he tried to obstruct an SEC probe into his misconduct by refusing to turn over emails, which he printed and concealed in two manila folders marked “Files Deleted” and another marked “Not Released to SEC Subpoena (Delete).” The indictment further alleged that Lopez redacted portions of an email and tried to delete it from his computer, and later lied to the SEC under oath during deposition testimony.
According to United States Attorney Duffy, the Deferred Prosecution Agreement was an appropriate vehicle in this case as it did not further penalize Unico’s stockholders for criminal behavior undertaken by Lefkowitz and a former company executive. She added, though, that this remedy was available only because of the company’s cooperation in this investigation. The United States Attorney also stressed that the designation of a corporate monitor was another integral component of this agreement as it guards against Unico being involved in future stock fraud.
DEFENDANT Case Number: 13CR0355-JAH Unico, Inc. SUMMARY OF CHARGESFalse Statement to a Government Agency, in violation of Title 18, United States Code, Section 1001(a)(2). Maximum penalties: 5 years in prison, 5years' supervised release, a $500,000 fine and a $400 special assessment.
INVESTIGATING AGENCYFederal Bureau of Investigation
The public is reminded that an indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Ralston Man Sentenced to 2 years for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that James R. Nelson, 56, was sentenced in the United States District Court in Omaha for failure to register as a sex offender. The Honorable Lyle E. Strom, Senior District Court Judge, sentenced Nelson to 2 years in prison. After his release from prison Nelson will begin a 5 year term of supervised release.
Nelson was convicted in Illinois of sexual assault of a seven year old in 1995. He is required to register as a sex offender for life. He was last registered at an address in Iowa. Nelson moved to Ralston in June of 2012. He acquired a Nebraska Identification card. He failed to register as a sex offender in Nebraska. He was arrested on July 9, 2012, by the United States Marshal Service.
The case was prosecuted as a part of Project Safe Childhood. Project Safe Childhood is an initiative of the United States Department of Justice designed to protect children from individuals who would exploit them online or offline and includes individuals who travel in interstate commerce and fail to register as sex offenders as required by law. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Quality Roofing, Inc., Pleads Guilty to Submitting False Documents to GovernmentRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Quality Roofing, Inc., a Michigan-based corporation, pleaded guilty before U.S. District Judge Charles J. Siragusa to preparing and submitting false documents to the government. The charge carries a maximum penalty of a fine of $500,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant was a subcontractor on a government roofing project at the Kenneth B. Keating Federal Building in 2007-2008. Quality Roofing was required to pay its employees the prevailing wage, as established by the Secretary of Labor, and to submit weekly certified payrolls confirming this fact. The defendant did not pay its employees the prevailing wage, but falsely claimed in its certified payrolls that it had done so.
As part of the plea, Quality Roofing has agreed to pay a fine of $75,000 to the United States, and restitution to its employees in the amount of $19,197.50, which represents the difference between what the employees should have been paid and what they were actually paid.
The plea is the culmination of an investigation on the part of Special Agents of the General Services Administration, under the direction of James E. Adams, and the Department of Labor, under the direction of Special Agent in Charge Robert L. Panella.
Sentencing is scheduled for date April 15, 2013, at 4:00 p.m. before Judge Siragusa.
President of Excavating Company Pleads Guilty to Tax ChargesRead the Press Release
RICHMOND, Va. – Jimmy Holland Boyd, 63, of Fredericksburg, Virginia pled guilty on January 29, 2013, to failing to pay employment taxes and failing to file personal income tax returns. As part of the plea, he admitted that he had not filed personal income tax returns since 1988 and owes the United States $350,000 in back taxes.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Sheila A. Olander, Acting Special Agent in Charge of the Criminal Investigation Division of the Internal Revenue Service, made the announcement after the plea was accepted by United States Magistrate Judge M. Hannah Lauck. Boyd is facing a maximum sentence of 5 years in prison and $250,000 in fines on the employment tax charge and 1 year in prison and $100,000 on the personal tax charge when he is sentenced by United States District Judge James R. Spencer on May 3, 2013.
At all material times, Boyd was President of Spring City Company Excavating, Inc., a Virginia-based real estate developing and excavating business. He pled guilty to failing to pay over $5,776 in federal income and FICA taxes on $34,864.62 of wages paid to his employees for the first quarter of 2009, ending March 31, 2009, in violation of 26 U.S.C. Section 7202.
As part of the written statement of facts accompanying his plea, Boyd also admitted that from 2005 through 2009 he paid employees of Spring City Excavating Company approximately $248,504 in net wages that were subject to federal income and FICA taxes, but to failed to pay the $41,170.77 of federal income and FICA taxes due the United States on those wages. Boyd also failed to issue IRS forms W-2 or 1099 to those employees.
Boyd also pled guilty to failing to file his personal tax return for 2007, even though he had gross income of $567,428.69 that year, in violation of 26 U.S.C. Section 7203. In the written statement of facts, Boyd admitted that he had not filed tax returns since 1988 and also acknowledged that he owes the IRS approximately $350,000 in personal taxes.
This case was investigated by the Criminal Investigation Division of the Internal Revenue Service. Assistant United States Attorney David T. Maguire is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Portola Valley Man Pleads Guilty to Failure to Report Foreign Bank AccountsRead the Press Release
SAN JOSE, Calif. – Christopher B. Berg of Portola Valley, Calif., entered a plea of guilty yesterday to willful failure to file the required report of foreign bank account (FBAR) for an account he controlled at United Bank of Switzerland AG (UBS), United States Attorney Melinda Haag announced.
In pleading guilty Berg admitted that in 1999, he began working as a consultant in the furniture industry. In 2000, he met with a Swiss financial consultant and Vice President of Banking at UBS in San Francisco, Calif., regarding setting up a bank account at UBS in Switzerland to shelter a portion of his consulting income from taxation. Beginning in 2001 and continuing through 2005, funds representing $642,069 in compensation earned by Berg from consulting services were deposited by wire transfer to UBS accounts. Berg used the money in these accounts at UBS in Switzerland to purchase a vehicle, to obtain cash while in Europe, and to pay the balance on a Eurocard he used while traveling in Europe. Berg did not disclose the existence of his accounts at UBS in Switzerland to his Certified Public Accountant, and did not disclose the income earned by these accounts or the consulting income deposited to the accounts. The tax harm associated with Berg’s conduct is $270,757.
United States citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file an FBAR with the United States Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
On Dec. 18, 2012, Berg of Portola Valley, Calif., was charged with one count of Willfully Violating Foreign Bank Account Reporting Requirements. Under the plea agreement, Berg pled guilty to that count.
Berg is scheduled to be sentenced on July 10, 2013, before United States District Court Judge Lucy H. Koh in San Jose. The maximum statutory penalty for a violation of 31 U.S.C. §§ 5314 and 5322(a) is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Trial attorneys from the Department of Justice Tax Division are prosecuting the case. The prosecution is the result of an investigation by IRS - Criminal Investigation.
Philadelphia Traffic Court Judges Indicted for FraudRead the Press Release
PHILADELPHIA - An indictment and three separate informations, unsealed today, charge nine elected judges along with three other individuals in a fraud conspiracy that allegedly involved frequent and pervasive “ticket-fixing” at the Philadelphia Traffic Court. The defendants participated in a widespread culture of giving breaks on traffic citations to friends, family, the politically-connected, and business associates. The defendants include:
• Michael J. Sullivan (sitting Judge, Traffic Court)
• Michael Lowry (sitting Judge, Traffic Court)
• Robert Mulgrew (former Judge, Traffic Court)
• Willie Singletary (former Judge, Traffic Court)
• Thomasine Tynes (former Judge, Traffic Court)
• Mark A. Bruno (Chester County Magisterial District)
• H. Warren Hogeland (Bucks County Senior Magisterial District Judge)
• Kenneth Miller (Delaware County Senior District Judge)
• Fortunato N. Perri, Sr. (Senior Judge, Traffic Court)
• William Hird (former Director of Records, Traffic Court)
• Henry P. Alfano (local businessman)
• Robert Moy (local businessman)The 77-count indictment was announced by United States Attorney Zane David Memeger and Acting Special Agent-in-Charge John Brosnan.
According to the indictment, Philadelphia ward leaders, local politicians and associates of the Democratic City Committee regularly contacted defendants seeking preferential treatment on specific tickets. Additionally, defendants were regularly contacted by family, friends and associates seeking a “break” on tickets. These defendants accepted these requests and either gave the preferential treatment directly or communicated the request to another judge to whom the case was assigned.
Tickets were “fixed” by either being dismissed, finding the ticket holder “not guilty,” or finding the ticket holder guilty of a lesser offense. In many cases, the ticket holder did not even appear in Traffic Court, yet their ticket was “fixed.” As a result, these ticketholders paid lesser or no fines and costs, and evaded the assessment of “points” on their driver’s record. This widespread “ticket-fixing” defrauded both the Commonwealth of Pennsylvania and the City of Philadelphia of funds, and allowed potentially unsafe drivers to remain on the roads.
The defendants allegedly used their personal assistants and courtroom staff to communicate requests to “fix tickets” to other judges. The indictment further alleges that the conspiracy also involved a cover-up which consisted of shredding paperwork, speaking in code, and trusting only certain individuals to carry out the fraud scheme.
Three judges - defendants Lowry, Mulgrew, and Tynes - are each charged with committing perjury before the federal grand jury. One judge - defendant Singletary - and defendant Hird are charged with lying to the FBI when they were approached and asked questions about ticket fixing at Traffic Court.
Defendant Henry P. Alfano regularly gave defendant Fortunato N. Perri, Sr. free auto repairs, free towing, free videos, and free seafood in exchange for “fixing” tickets. According to the indictment, Alfano would give Perri traffic citation numbers, the names of offenders, or the actual citations to arrange “fixing” the ticket. Perri conveyed the information to William Hird.
Hird, in turn, conveyed the request to the assigned judge. Court authorized intercepted telephone conversations reveal that Perri prioritized assisting Alfano and Alfano made sure to take care of Perri.. Perri told Alfano “when you call, I move, brother, believe me. I move everybody.” After multiple free repairs on his cars and family members’ cars, Perri allegedly told Alfano their relationship was “becoming like a one way street. I like a two way street.” To which Alfano responded “if I need something, you’re going to do it.”Defendant Hird, it is alleged, was extremely loyal to Perri given that Perri helped Hird move up the ladder to a high-level administrator at Traffic Court. Recorded conversations demonstrate that Hird acceded to Perri’s requests to “fix” certain tickets. Given Hird’s position at Traffic Court and access to the judges, Hird was allegedly able to facilitate requests for ticket fixing, not only for Perri, but also for various Philadelphia ward leaders.
Defendant Michael J. Sullivan, in addition to requests from ward leaders, also assisted friends and customers of his bar, the Fireside Tavern. According to the indictment, Sullivan directed associates who wanted their tickets “fixed” to leave them at his tavern where they were placed in a box behind the bar. Defendant Sullivan would assure his associates that the ticket would be “fixed.” In one recorded call, Sullivan told a ticket holder, “I know you’re broke” and “it don’t matter which judge would be hearing the case, because “you’re good,” meaning the “fix” was conveyed.
Defendant Willie Singletary and Thomasine Tynes allegedly “fixed” tickets on behalf of defendant Robert Moy, who owned “Number One Translations,” a business located in Philadelphia. Moy, it is alleged, would guarantee paying customers favorable results on their Traffic Court citations based on his relationship with both Singletary and Tynes. According to the indictment, Moy even advertised in a local newspaper that he “Tackles the traffic ticket, and guarantees no points or fewer points.” Ticket holders took their citations to defendant Moy, paid Moy hundreds of dollars in cash, were instructed not to appear in Traffic Court, and ultimately were found not guilty by either Tynes or Singletary.
In addition to the conspiracy charging a longstanding and widespread practice of fixing tickets, the indictment specifically lists 50 separate citations as being “fixed.” These tickets involved driving at unsafe speeds, driving an unregistered vehicle, texting while driving, operating an ATV on the highway, running a red light, making a prohibited u-turn, careless driving, not using a child safety restraint, and towing a vehicle without a towing agreement, among others. Yet, these ticket holders unjustly incurred no penalties for their vehicle code violations.
“Our judicial system requires that the finder of fact determine guilt or innocence impartially,” said Memeger. “Ignoring this basic rule of justice, the judges in this case allegedly routinely "fixed" traffic tickets by giving preferential treatment to people with whom they were politically and socially connected. In addition to depriving the City of Philadelphia and the Commonwealth of Pennsylvania of funds rightfully owed by traffic violators, their allegedly corrupt conduct also undermined the confidence that law abiding citizens have in the Philadelphia Court System. Those who seek to game the system by refusing to follow the rules need to be held accountable by the rule of law they swore to uphold.”“The citizens of Philadelphia expect and deserve public officials who perform their duties free of deceit, favoritism, bias, self-enrichment, concealment and conflict of interest,” said Brosnan. “Everyone is entitled to the same treatment in Traffic Court, regardless of their personal relationships, regardless of political considerations, and regardless of the personal preferences of court officials.”
The moneys that would have been received from adjudicated citations would have been equally divided between the City of Philadelphia and the Commonwealth of Pennsylvania and used to fund, for example, the City of Philadelphia’s general fund; the Philadelphia Parking Authority; the First Judicial District’s procurement department; the funds lost to the Commonwealth of Pennsylvania would have paid for Emergency Medical Services training; MCARE, which helps compensate people injured by medical malpractice; and the Access to Justice Fund, which provides money for legal aid for low income people and victims of domestic violence.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise Wolf and Anthony Wzorek.
Indictment.pdf | Hogeland Information.pdf | Perri Information.pdf | Miller Information.pdf | Charges.pdf |Defendants.pdf
UNITED STATES ATTORNEY'S OFFICE Contact:
EASTERN DISTRICT, PENNSYLVANIA PATTY HARTMAN
Suite 1250, 615 Chestnut Street Media Contact
Philadelphia, PA 19106 215-861-8525
COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT
http://www.usdoj.gov/usao/paeUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Peregrine Financial Group CEO Sentenced to 50 Years for Fraud, Embezzlement, and Lying to Regulators [Court’s Sentence Is the Maximum Allowed by Law]Read the Press Release
Russell R. Wasendorf, Sr., age 64, from Cedar Falls, Iowa, who stole more than $215,000,000 in customer funds from his commodity futures business, was sentenced today to 50 years in federal prison. Wasendorf received the prison term after a September 17, 2012 guilty plea to one count each of:
● mail fraud,
● embezzlement of customer funds by a person registered under the Commodity Exchange Act,
● making false statements to the Commodity Futures Trading Commission, and
● making false statements to a futures association registered under the Commodity Exchange Act.Wasendorf was the owner and former Chief Executive Officer of the now-bankrupt Peregrine Financial Group, Inc. (PFG), a futures commission merchant headquartered in Cedar Falls, Iowa.
In a plea agreement, Wasendorf admitted that, from about the early 1990s through about July of 2012, he stole millions of dollars from PFG’s customers. Wasendorf admitted he stole the funds, at least in part, by withdrawing money secretly from a customer segregated bank account, and then by omitting the withdrawals from and inflating the balances on forged bank statements purportedly issued by the bank. Wasendorf admitted that the forged bank statements overstated the amount of customer funds in the account by more than $200 million. Wasendorf admitted he prevented regulators from discovering his crimes by submitting false periodic reports, and forged bank account verification forms to the National Futures Association and the Commodity Futures Trading Commission.
Also in the plea agreement, Wasendorf admitted establishing a post office box to intercept paperwork sent by regulators and intended for U.S. Bank. Wasendorf included the post office box number on forged bank statements so that auditors and regulators would think the box belonged to the bank.
According to information disclosed at the sentencing hearing, Wasendorf stole more than $215,000,000 from more than 13,000 victims over the course of nearly 20 years. A bankruptcy trustee and a court-appointed receiver have been gathering known assets for distribution to creditors, including PFG’s commodities futures account holders.
Wasendorf was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Wasendorf was sentenced to 50 years’ imprisonment – the maximum sentenced allowed by law for his offenses of conviction. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. The Court imposed a judgment of forfeiture in the amount of $100 million and it ordered Wasendorf to make $215,530,041.39 in restitution to more than 13,000 victims. As part of the plea agreement, Wasendorf agreed that any proceeds from any publicity about his crimes would be assigned to the United States and applied toward his restitution.
“By lying to investors and regulators, Wasendorf defrauded thousands of innocent investors out of a staggering $215,000,000,” said Acting United States Attorney Sean R. Berry. “The lengthy prison sentence imposed today is just punishment for a con man who built a business on smoke and mirrors.”
Thomas R. Metz, Special Agent In-Charge of the Omaha Division of the Federal Bureau of Investigation, said: “Today’s sentence demonstrates this agency’s commitment to holding accountable those who prey on unwary investors and lie to those regulatory agencies responsible for protecting the integrity of U.S. financial markets.”
Wasendorf is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Peter Deegan and Matthew Cole and was investigated by the Federal Bureau of Investigation with the assistance of the Blackhawk County Sheriff’s Office and the United States Postal Inspection Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-CR-2021 LRR.
Owner of Japanese Restaurant Receives 33-Month Prison Sentence for Tax CrimesRead the Press Release
SAN FRANCISCO – Michael Chen, the owner of Fune Ya Japanese Restaurant in San Francisco was sentenced yesterday to 33 months in prison and ordered to pay restitution in the amount of $459,105 for filing false federal corporate income tax returns with the Internal Revenue Service (IRS), and mail fraud for filing false sales tax returns with the California Board of Equalization, United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge Jose M. Martinez announced.
During a five day jury trial in March, 2012, a federal jury found that Michael Chen filed a false 2004 U.S. income tax return for an S Corporation (Form 1120S) for his restaurant, Fune Ya Japanese Restaurant; failed to file corporate income tax returns for Fune Ya Japanese Restaurant for 2005 and 2006; filed nine false employer’s quarterly federal tax returns (Forms 941) with the IRS, and used the U.S. mail to file nine false quarterly sales and use tax returns with the California Board of Equalization. Evidence at trial showed that Chen maintained detailed records of Fune Ya’s daily receipts in twenty-six boxes marked “Seasoned Octopus.” The boxes were stored in a crawl space beneath the restaurant floor. The cash sales shown on Fune Ya’s receipts were not reported to the IRS. The evidence also showed that Chen maintained an encrypted Excel spreadsheet documenting $1,910,803 in sales, while he reported $450,165 in sales to the California Board of Equalization, and $65,738 in sales to the IRS. Chen also paid Fune Ya employees cash wages totaling $548,919 for the 2004 through 2006 tax years. Employees received cash wages in white envelopes each payday. Chen failed to include these cash wages on the quarterly payroll tax returns (Forms 941) filed with the IRS.
Chen was convicted by a jury on March 27, 2012. The sentence was handed down by U.S. District Court Judge Maxine Chesney following a jury trial on 10 counts of filing false tax returns in violation of 26 U.S.C. Section 7206(1); two counts of failure to file tax returns in violation of 26 U.S.C. Section 7203; and nine counts of mail fraud in violation of 18 U.S.C. Section 1341. Judge Chesney also sentence the defendant to a three-year term of supervised release. The defendant is scheduled to self-surrender and begin serving his sentence on March 27, 2013.
Cynthia Stier and Damali Taylor are the Assistant U.S. Attorneys who prosecuted the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Oregon Resident Convicted in Plot to Bomb Christmas Tree Lighting Ceremony in PortlandRead the Press Release
After a 14-day trial, Mohamed Osman Mohamud, 21, a naturalized U.S. citizen from Somalia and resident of Corvallis, Ore., was convicted today by a federal jury in the District of Oregon of attempting to use a weapon of mass destruction (explosives) in connection with a plot to detonate a vehicle bomb at an annual Christmas tree lighting ceremony in Portland.
At sentencing, Mohamud faces a maximum statutory sentence of life in prison. Mohamud was arrested on Nov. 26, 2010, after he attempted to detonate what he believed to be an explosives-laden van that was parked near the tree lighting ceremony in Portland. The arrest was the culmination of a long-term undercover operation, during which Mohamud was monitored closely for months as his bomb plot developed. The device was in fact inert; and the public was never in danger from the device.
“When an individual concocts a plan to commit mass violence – and is determined to follow through – law enforcement has an obligation to take action to protect the public. Today’s verdict shows that they will be held to account,” said Lisa Monaco, Assistant Attorney General for National Security. “I applaud all those who worked so diligently to thwart this plot and ensure no one was harmed.”
“This trial provided a rare glimpse into the techniques Al Qaeda employs to radicalize home-grown extremists. With the verdict today, the jury has held this defendant accountable,” said Amanda Marshall, U.S. Attorney for the District of Oregon. “I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome. I look forward to our continued work with Muslim Communities in Oregon who are committed to ensuring that all young people are safe from extremists who seek to radicalize others to engage in violence.”
“The verdict returned in the Mohamed Mohamud case highlights the difficult, but important, work that FBI employees do every day. Whether an employee is an undercover agent or analyst or technician – each has a role to play in keeping our community safe while at the same time respecting the freedoms that make this country strong. Indeed, in this country everyone has a right to live, work and worship freely and without fear. FBI employees – in Oregon and around the world – find strength in preserving and protecting these core values,” said Gregory Fowler, Special Agent in Charge of the FBI Portland Division.
According to court documents and evidence presented by the government at trial, in February 2009, Mohamud began communicating via e-mail with Samir Khan, a now-deceased al-Qaeda terrorist who published Jihad Recollections, an online magazine that advocated violent jihad, and who also published Inspire, the official magazine of al-Qaeda in the Arabian Peninsula. Between February and August 2009, Mohamed exchanged approximately 150 emails with Khan. Mohamud wrote several articles for Jihad Recollections that were published under assumed names.
In August 2009, according to evidence presented at trial, Mohamud was in email contact with Amro Al-Ali, a Saudi national who was in Yemen at the time and is today in custody in Saudi Arabia for terrorism offenses. Al-Ali sent Mohamud detailed emails designed to facilitate Mohamud’s travel to Yemen to train for violent jihad. In December 2009, while Al-Ali was in the northwest frontier province of Pakistan, Mohamud and Al-Ali discussed the possibility of Mohamud traveling to Pakistan to join Al-Ali in terrorist activities. Mohamud responded to Al-Ali in an email: “yes, that would be wonderful, just tell me what I need to do.” Al-Ali referred Mohamud to a second associate overseas and provided Mohamud with a name and email address to facilitate the process.
In the following months, Mohamud made several unsuccessful attempts to contact Al-Ali’s associate. Ultimately, an FBI undercover operative contacted Mohamud via email under the guise of being an associate of Al-Ali’s. Mohamud and the FBI undercover operative agreed to meet in Portland in July 2010. At the meeting, Mohamud told the FBI undercover operative he had written articles that were published in Jihad Recollections. Mohamud also said that he wanted to become “operational.” Asked what he meant by “operational,” Mohamud said he wanted to put an explosion together, but needed help.
According to evidence presented at trial, at a meeting in August 2010, Mohamud told undercover FBI operatives he had been thinking of committing violent jihad since the age of 15. Mohamud then told the undercover FBI operatives that he had identified a potential target for a bomb: the annual Christmas tree lighting ceremony in Portland’s Pioneer Courthouse Square on Nov. 26, 2010. The undercover FBI operatives cautioned Mohamud several times about the seriousness of this plan, noting there would be many people at the event, including children, and emphasized that Mohamud could abandon his attack plans at any time with no shame. Mohamud indicated the deaths would be justified and that he would not mind carrying out a suicide attack on the crowd.
According to evidence presented at trial, in the ensuing months Mohamud continued to express his interest in carrying out the attack and worked on logistics. On Nov. 4, 2010, Mohamud and the undercover FBI operatives traveled to a remote location in Lincoln County, Ore., where they detonated a bomb concealed in a backpack as a trial run for the upcoming attack. During the drive back to Corvallis, Mohamud was asked if he was capable of looking at all the bodies of those who would be killed during the explosion. In response, Mohamud noted, “I want whoever is attending that event to be, to leave either dead or injured.” Mohamud later recorded a video of himself, with the assistance of the undercover FBI operatives, in which he read a statement that offered his rationale for his bomb attack.
On Nov. 18, 2010, undercover FBI operatives picked up Mohamud to travel to Portland to finalize the details of the attack. On Nov. 26, 2010, just hours before the planned attack, Mohamud examined the 1,800 pound bomb in the van and remarked that it was “beautiful.” Later that day, Mohamud was arrested after he attempted to remotely detonate the inert vehicle bomb parked near the Christmas tree lighting ceremony
This case was investigated by the FBI, with assistance from the Oregon State Police, the Corvallis Police Department, the Lincoln County Sheriff’s Office and the Portland Police Bureau. The prosecution is being handled by Assistant U.S. Attorneys Ethan D. Knight and Pamala Holsinger from the U.S. Attorney’s Office for the District of Oregon. Trial Attorney Jolie F. Zimmerman, from the Counterterrorism Section of the Justice Department’s National Security Division, is assisting.
Oregon Resident Convicted in Plot to Bomb Christmas Tree Lighting Ceremony in PortlandRead the Press Release
PORTLAND, Ore. - After a 14-day trial, Mohamed Osman Mohamud, 21, a naturalized U.S. citizen from Somalia and resident of Corvallis, Ore., was convicted today by a federal jury in the District of Oregon of attempting to use a weapon of mass destruction (explosives) in connection with a plot to detonate a vehicle bomb at an annual Christmas tree lighting ceremony in Portland, Ore.
At sentencing, Mohamud faces a maximum statutory sentence of life in prison. Mohamud was arrested on Nov. 26, 2010, after he attempted to detonate what he believed to be an explosives-laden van that was parked near the tree lighting ceremony in Portland. The arrest was the culmination of a long-term undercover operation, during which Mohamud was monitored closely for months as his bomb plot developed. The device was in fact inert; and the public was never in danger from the device.
"This trial provided a rare glimpse into the techniques Al Qaeda employs to radicalize home-grown extremists. With the verdict today, the jury has held this defendant accountable," Amanda Marshall, U.S. Attorney for the District of Oregon. "I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome. I look forward to our continued work with Muslim Communities in Oregon who are committed to ensuring that all young people are safe from extremists who seek to radicalize others to engage in violence."
"When an individual concocts a plan to commit mass violence - and is determined to follow through - law enforcement has an obligation to take action to protect the public. Today's verdict shows that they will be held to account," said Lisa Monaco, Assistant Attorney General for National Security. "I applaud all those who worked so diligently to thwart this plot and ensure no one was harmed."
"The verdict returned in the Mohamed Mohamud case highlights the difficult, but important, work that FBI employees do every day. Whether an employee is an undercover agent or analyst or technician - each has a role to play in keeping our community safe while at the same time respecting the freedoms that make this country strong. Indeed, in this country everyone has a right to live, work and worship freely and without fear. FBI employees - in Oregon and around the world - find strength in preserving and protecting these core values," said Gregory Fowler, Special Agent in Charge of the FBI Portland Division.
According to court documents and evidence presented by the government at trial, in February 2009, Mohamud began communicating via e-mail with Samir Khan, a now-deceased al-Qaeda terrorist who published Jihad Recollections, an online magazine that advocated violent jihad, and who also published Inspire, the official magazine of al-Qaeda in the Arabian Peninsula. Between February and August 2009, Mohamed exchanged approximately 150 emails with Khan. Mohamud wrote several articles for Jihad Recollections that were published under assumed names.
In August 2009, according to evidence presented at trial, Mohamud was in email contact with Amro Al-Ali, a Saudi national who was in Yemen at the time and is today in custody in Saudi Arabia for terrorism offenses. Al-Ali sent Mohamud detailed e-mails designed to facilitate Mohamud's travel to Yemen to train for violent jihad. In December 2009, while Al-Ali was in the northwest frontier province of Pakistan, Mohamud and Al-Ali discussed the possibility of Mohamud traveling to Pakistan to join Al-Ali in terrorist activities. Mohamud responded to Al-Ali in an e-mail: "yes, that would be wonderful, just tell me what I need to do." Al-Ali referred Mohamud to a second associate overseas and provided Mohamud with a name and email address to facilitate the process.
In the following months, Mohamud made several unsuccessful attempts to contact Al-Ali's associate. Ultimately, an FBI undercover operative contacted Mohamud via email under the guise of being an associate of Al-Ali's. Mohamud and the FBI undercover operative agreed to meet in Portland in July 2010. At the meeting, Mohamud told the FBI undercover operative he had written articles that were published in Jihad Recollections. Mohamud also said that he wanted to become "operational." Asked what he meant by "operational," Mohamud said he wanted to put an explosion together, but needed help.
According to evidence presented at trial, at a meeting in August 2010, Mohamud told undercover FBI operatives he had been thinking of committing violent jihad since the age of 15. Mohamud then told the undercover FBI operatives that he had identified a potential target for a bomb: the annual Christmas tree lighting ceremony in Portland's Pioneer Courthouse Square on Nov. 26, 2010. The undercover FBI operatives cautioned Mohamud several times about the seriousness of this plan, noting there would be many people at the event, including children, and emphasized that Mohamud could abandon his attack plans at any time with no shame. Mohamud indicated the deaths would be justified and that he would not mind carrying out a suicide attack on the crowd.
According to evidence presented at trial, in the ensuing months Mohamud continued to express his interest in carrying out the attack and worked on logistics. On Nov. 4, 2010, Mohamud and the undercover FBI operatives traveled to a remote location in Lincoln County, Ore., where they detonated a bomb concealed in a backpack as a trial run for the upcoming attack. During the drive back to Corvallis, Mohamud was asked if was capable looking at all the bodies of those who would be killed during the explosion. In response, Mohamud noted, "I want whoever is attending that event to be, to leave either dead or injured." Mohamud later recorded a video of himself, with the assistance of the undercover FBI operatives, in which he read a statement that offered his rationale for his bomb attack.
On Nov. 18, 2010, undercover FBI operatives picked up Mohamud to travel to Portland to finalize the details of the attack. On Nov. 26, 2010, just hours before the planned attack, Mohamud examined the 1,800 pound bomb in the van and remarked that it was "beautiful." Later that day, Mohamud was arrested after he attempted to remotely detonate the inert vehicle bomb parked near the Christmas tree lighting ceremony
This case was investigated by the FBI, with assistance from the Oregon State Police, the Corvallis Police Department, the Lincoln County Sheriff's Office and the Portland Police Bureau. The prosecution is being handled by Assistant U.S. Attorneys Ethan D. Knight and Pamala Holsinger from the U.S. Attorney's Office for the District of Oregon. Trial Attorney Jolie F. Zimmerman, from the Counterterrorism Section of the Justice Department's National Security Division, is assisting.
Oregon Man Indicted for Tax Fraud and Identity TheftRead the Press Release
Ricky Lee Greenwood, of Portland, Ore., was indicted late last night on nine counts of wire fraud, nine counts of filing false claims for tax refunds, and eight counts of aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced. Greenwood made his initial appearance in court Wednesday in Portland.
According to the 26-count indictment, Greenwood electronically filed at least 66 false tax returns with fictitious wage and false dependent information, requesting at least $300,000 in fraudulent refunds. Greenwood is alleged to have obtained the names and Social Security numbers of unemployed individuals in order to file fraudulent tax returns in their names. According to the indictment, Greenwood also obtained the Social Security numbers of children and claimed them on the tax returns of unrelated individuals to maximize refundable credits – such as the Earned Income Tax Credit and the Additional Child Tax Credit – and further inflate the fraudulent refunds. In addition, according to the indictment, Greenwood had the fraudulent refunds delivered to him or deposited into accounts that he controlled.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Greenwood faces a maximum sentence of 5 years in prison for each false claims count, up to 20 years in prison for each wire fraud count, and a mandatory 2-year sentence on the aggravated identity theft counts. If convicted, he could be subject to fines, mandatory restitution and a money judgment.
This case was investigated by the IRS Criminal Investigation Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Todd P. Kostyshak of the Justice Department’s Tax Division and Assistant U.S. Attorney Claire Fay are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
North Hills Man Pleads Guilty to Possession of Child Pornography VideosRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Daniel L. King, 24, of Glenshaw, Pa., pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on June 21, 2012, King possessed visual depictions, namely, videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Bissoon scheduled sentencing for June 4, 2013, at 10:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Immigration and Customs Enforcement, Homeland Security Investigations and the Pennsylvania State Police conducted the investigation that led to the prosecution of King.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nicholas County Man Sentenced to 5 Years in Federal Prison for Selling Prescription PainkillersRead the Press Release
Bryant admitted to selling powerful painkillers from his Nicholas Co. auto care business
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Nicholas County man was sentenced to five years in federal prison for selling morphine. Ralph Donald Bryant II, 41, of Summersville, Nicholas County, W.Va., previously pleaded guilty in September 2012 to distribution of morphine. Bryant admitted that on August 4, 2010, he sold one morphine tablet to an individual cooperating with law enforcement authorities in exchange for $120. Bryant further admitted that the illegal pill transaction took place at his auto care business located in Summersville. The defendant also admitted that from the fall of 2007 until April 11, 2011, he distributed multiple controlled substances including oxymorphone and oxycodone in and around the Nicholas County area.
The Central West Virginia Drug Task Force conducted the investigation. Assistant United States Attorney John Frail handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Newington Resident Charged with Orchestrating Extensive Mortgage Fraud SchemeRead the Press Release
January 31, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that FILIPPOS (“FILIP”) MILIOS, 54, of Newington, was arrested today on a federal criminal complaint charging him with bank fraud stemming from his alleged involvement in an extensive mortgage fraud scheme in the greater Hartford area.
According to statements made in court, it is alleged that MILIOS led and organized a multi-year mortgage fraud scheme to purchase and sell houses using straw borrowers and false or fictitious loan applications, employment verifications, bank statements, and pay stubs. MILIOS purchased numerous homes and then sold them at a significantly higher sales price to straw borrowers that he and his co-conspirators recruited. In addition, it is alleged that MILIOS used his own funds to make the down payments on behalf of the borrowers, and that he made payments outside of closing to the straw borrowers and his co-conspirators.
This alleged scheme involved more than 40 fraudulent mortgages exceeding $10 million and losses exceeding $5 million.
Following his arrest this morning, MILIOS appeared before United States Magistrate Judge Donna F. Martinez in Hartford and was released on a $100,000 bond.
U.S. Attorney Fein noted that the investigation into these alleged schemes is ongoing and asked individuals who have information that may helpful to the investigation to contact the U.S. Department of Housing and Urban Development – Office of Inspector General at (860) 240-4800.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. The defendant is entitled to have this matter presented to a grand jury and, in the event an indictment is returned, he is entitled to a trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney David T. Huang and Paul H. McConnell.Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Doctor Admits Oxycodone Distribution and ConspiracyRead the Press Release
TRENTON, N.J. – A physician who wrote illegal prescriptions for oxycodone today admitted his participation in a conspiracy to illegally distribute the medication, and admitted that he distributed it on numerous occasions, U.S. Attorney Paul J. Fishman announced.
Dr. Hassan Lahham, 54, of New York, was charged by Indictment with one count of conspiracy to distribute oxycodone and eleven counts of distribution of oxycodone. He pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of the Indictment, which charges that he conspired to distribute oxycodone.
According to documents filed in this case and statements made in court:
Since January 2009, Lahham issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various New Jersey pharmacies located in and around Monmouth, Ocean, and Atlantic counties and redistributed by others. Lahham wrote the prescriptions in exchange for cash payments, and knew the pills were to be redistributed.
Oxycodone, the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
The charge to which Lahham pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for May 10, 2013.U.S. Attorney Fishman credited the Drug Enforcement Administration’s New Jersey Division under the direction of Acting Special Agent in Charge Robert G. Koval, along with the Special Agents, Diversion Investigators, Task Force Officers, Detectives and Intelligence Analysts of the Atlantic City Resident Office; Camden Resident Office Diversion Group; Seaside Heights Police Department; Barnegat Police Department; Ship Bottom Police Department; and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Fabiana Pierre-Louis of the U.S. Attorney’s Office in Trenton.
13-052
Defense counsel: Frank P. Arleo Esq., West Orange, N.J.
Lahham Indictment
Navajo Man from Arizona Sentenced for Violating Migratory Bird Treaty ActRead the Press Release
ALBQUERQUE –Daniel Chee Walley, 47, a member of the Navajo Nation from Chambers, Ariz., was sentenced this afternoon for violating the Migratory Bird Treaty Act, announced U.S. Attorney Kenneth J. Gonzales and Nicholas E. Chavez, Special Agent in Charge of the Southwest Region, U.S. Fish and Wildlife Service Office of Law Enforcement.
Walley was arrested on Sept. 14, 2012, based on an indictment charging him with selling and bartering parts of a Swainson’s hawk tail on Jan. 31, 2009, in McKinley County, N.M., without obtaining permission from the Secretary of the U.S. Department of the Interior, in violation of the Migratory Bird Treaty Act. On Oct. 22, 2012, Walley pled guilty to the During this afternoon’s proceedings, Walley was sentenced to two months of home confinement followed by a year of probation. Walley also fined $150 to be paid to the North American Wetlands Conservation Fund.
Swainson’s hawks and other migratory birds are protected under federal wildlife laws, including the Migratory Bird Treaty Act. These laws prohibit the possession, use, and sale of the feathers or other parts of federally protected birds, as well as the unauthorized killing of these birds, to help ensure that bird populations remain healthy and sustainable.
“We want people to understand that over 1000 birds are safeguarded under the Migratory Bird Treaty Act, and the Service is committed to ensuring their protection,” said Nicholas E. Chavez, the US Fish and Wildlife Services Southwest Region Special Agent in Charge.
This case was prosecuted by Special Assistant U.S. Attorney Adam S. Rowley, and was investigated by the U.S. Fish and Wildlife Service and the Navajo Department of Fish and Wildlife Conservation.
The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, watch its YouTube Channel at http://www.youtube.com/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq.
Mission Man Convicted on Child Pornography ChargesRead the Press Release
McALLEN, Texas – Mission resident Jose Alaniz-Allen, 22, has entered a plea of guilty to one count of receipt of child pornography, United States Attorney Kenneth Magidson announced today.
Alaniz-Allen came to the attention of law enforcement following an investigation which began Sept. 14, 2012, into persons using the Internet to traffic in child pornography. A Homeland Security Investigations (HSI) agent was able to locate and identify Alaniz-Allen as the owner of a computer as offering to participate in the distribution of child pornography movies through a peer-to-peer network .
On Nov. 29, 2012, a search warrant was executed at his Mission residence and a computer and various external storage media devices were seized. The forensic examination revealed 23 movies of clearly young children engaged in sexually explicit conduct. The images included children under the age of 12 engaged in bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Alaniz-Allen admitted he downloaded child pornography from the Internet thereby receiving and possessing the child pornography found on his computer.
U.S. District Judge Micaela Alvarez, who accepted the guilty plea, has set sentencing for May 16, 2013. At that time, Alaniz-Allen faces up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
This case, prosecuted by Assistant United States Attorney Kimberly Leo and Juan Villescas and investigated by Homeland Security Investigations, 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."Maryland Man Sentenced for Car Jacking A Sears Delivery TruckRead the Press Release
NEWPORT NEWS, Va. – Antonio Daniel McGhee of Essex, Md. was sentenced today to a total of 244 months in prison. McGhee was convicted by a federal jury on June 22, 2012, on charges of conspiracy to commit robbery, robbery, carjacking, and brandishing a firearm during a crime of violence.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, James D. Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by United States District Judge Mark S. Davis.
On January 10, 2012, McGhee and co-defendant Gabriel D. M. Mitchell carjacked a Sears delivery truck while it was delivering appliances in Hampton, Virginia. They were given information as to the property on the truck and the delivery schedule by an employee of a Sears sub-contractor, Travis Williams, who posed as one of the two victims. The actual victim was handcuffed, duct taped, and blind folded while the Williams was barely restrained. McGhee and Mitchell used a U-Haul truck to off load the appliances. The Sears appliances were recovered.
During the sentencing hearing the Judge found that McGhee testified falsely during the trial in an effort to frame the actual victim of the robbery. McGhee was sentenced to 160 months in prison for his participation in the conspiracy to commit robbery, robbery and carjacking, with a consecutive 84 month sentence for brandishing a firearm during the robbery. Mitchell is awaiting sentencing.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and assisted by Hampton Police Department. Assistant United States Attorney Howard J. Zlotnick and Brian J. Samuels prosecuted this 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.Man Sent to Prison for Unlawful Possession of Gun Used in MurderRead the Press Release
A man who hid a gun that his brother used in a murder was sentenced January 30, 2013, to 8 years in federal prison.
Winsdell Nowelin Lamb, age 25, from Mason City, Iowa, received the prison term after a September 12, 2012, guilty plea to one count of possession of a firearm by a felon.
On August 9, 2011, Lamb’s half-brother Jamaal Leslie shot and killed a man in Mason City. As Leslie fled the scene, he discarded the handgun which Lamb picked up. Lamb was later found hiding in the attic of a residence with the handgun. Lamb had previously been convicted of possession of marijuana with intent to deliver in 2008 and possession of marijuana in 2011, both felonies. At the time of the offense, Lamb was on escape status from the Beje Clark Residential Facility on these drug convictions.
Lamb was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Lamb was sentenced to 96 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Lamb will be returned to state prison in Iowa to complete his state drug sentences before being transferred to federal prison to serve his federal gun sentence.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Mason City Police Department, the Cerro Gordo Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-3032.
Laguna Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – This morning Laurence Kasero, 38, a member and resident of Laguna Pueblo, N.M., pled guilty to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Kasero was indicted on Sept. 25, 2012, and charged with assault resulting in serious bodily injury. The indictment charged Kasero with assaulting a woman on March 20, 2011, in Indian Country within Bernalillo County.
During this morning’s proceedings, Kasero pled guilty to the indictment. In entering his guilty plea, Kasero admitted assaulting his wife, a member of Acoma Pueblo, at the Route 66 Casino parking lot on Laguna Pueblo on March 20, 2011. Kasero admitted that, after he caused the victim to fall to the ground, he stomped on her ankles causing her to sustain serious bodily injury.
Kasero has been in federal custody since his arrest on Sept. 28, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Kasero faces a maximum penalty of ten years of imprisonment.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Southern Pueblos Agency, and the Pueblo of Laguna Police Department, and is being prosecuted by Special Assistant U.S. Attorney David M. Adams.
Kewa Pueblo Woman Sentenced to Fifteen Months in Prison for Aggravated Assault ConvictionRead the Press Release
ALBUQUERQUE – Lolita Nieto, 36, a member and resident of Kewa Pueblo, was sentenced this afternoon to 15 months in prison followed by a year of supervised release for her aggravated assault conviction. Nieto also was ordered to pay $3,745.20 in restitution to the victim of her attack.
Nieto was indicted on March 1, 2012, and charged with assault resulting in serious bodily injury. She has been in federal custody since her arrest on March 9, 2012.
On July 26, 2012, Nieto pled guilty to an Information charging her with aggravated assault. In entering her guilty plea, Nieto admitted that, on July 23, 2011, she assaulted another woman in Indian country within Sandoval County, N.M. More specifically, Nieto admitted striking and kicking the victim of her assault.
As required by Nieto’s plea agreement, the indictment against Nieto was dismissed after sentence was imposed.
The case was investigated by the Santa Fe office of the FBI and the Bureau of Indian Affairs, Office of Justice Services, Southern Pueblos Agency, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
KC Man Sentenced to 26 Years in Prison for Illegal FirearmRead the Press Release
Project CeasefireKANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Damon L. Collier, 40, of Kansas City, was sentenced by U.S. District Judge Greg Kays to 26 years and eight months in federal prison without parole. Collier was sentenced as an armed career offender due to his prior felony convictions for serious drug offenses.
Collier was found guilty on Aug. 14, 2012, of being a felon in possession of a firearm. Evidence introduced during the trial indicated that Collier was in possession of a loaded AMT .380-caliber, 9mm Kurz pistol on July 23, 2011. At about 11 p.m. that day, Kansas City police officers responded to a report of a disturbance. Collier was inside an apartment in the 3500 block of Gillham Road, highly intoxicated, waving a gun around and yelling threats against two other people. When officers entered the residence, Collier immediately placed the gun on a table and was taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Collier has eight prior felony convictions, including three prior felony convictions for possession of a controlled substance, two prior felony convictions for sale of a controlled substance, and prior felony convictions for distributing a controlled substance, trafficking drugs and attempted property damage. According to court documents, Collier was arrested for the federal offense while he was on parole for selling a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Bruce Clark and Special Assistant U.S. Attorney Shalanda Smith. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Justin Lane Flor Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 31, 2013, before Chief U.S. District Judge Richard F. Cebull, JUSTIN LANE FLOR, a 35-year-old resident of Miles City, appeared for sentencing. FLOR was sentenced to a term of:
Prison: 120 months
Special Assessment: $100
Forfeiture: cell phone
Supervised Release: 10 years
FLOR was sentenced in connection with his guilty plea to possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
In January 2012, law enforcement personnel in Miles City received a report that FLOR (then age 35) was believed to be involved in a sexual relationship with a 14-year-old girl. The investigation revealed that FLOR had provided the girl with drug paraphernalia and the two had smoked marijuana together and had repeatedly engaged in sexual activities at FLOR's residence in Miles City. FLOR's cellular telephone was seized as part of the investigation, and forensic examination revealed the presence of three child pornography movies that were saved in a directory on the phone. The movies had been downloaded from the Internet and saved. The movies depicted children engaged in sexually explicit conduct and their nature was readily apparent. FLOR possessed the three movies on his cell phone and they were mailed, shipped or transported in interstate commerce or produced using material that traveled in interstate commerce.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FLOR will likely serve all of the time imposed by the court. In the federal system, FLOR 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 Miles City Police Department and the Federal Bureau of Investigation.
Justice Department Settles with Fayetteville Pain Center over HIV DiscriminationRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with the Fayetteville Pain Center under the Americans with Disabilities Act (ADA). The settlement resolves allegations that the Fayetteville Pain Center violated the ADA by refusing to treat a woman because she has HIV.
The complainant, a woman with HIV who was suffering from back pain as a result of a car accident, visited the Fayetteville Pain Center in Fayetteville, N.C., seeking treatment. According to the complaint, the woman was unable to obtain medical treatment because the doctor at the Fayetteville Pain Center refused to treat a person with HIV. The ADA requires public accommodations such as doctors’ offices, medical clinics, hospitals, and other health care providers, to provide people with disabilities, including those with HIV, equal access to goods, services, and facilities.
Under the settlement, the Fayetteville Pain Center must pay $10,000 to the complainant and $5,000 to the United States in civil penalties, train its staff on the ADA, and develop and implement an anti-discrimination policy.
“All people deserve equal access to medical treatment. People with HIV and other disabilities must not be denied health care because of their disabilities. Medical professionals, perhaps more than anyone, should understand that the universal precautions they use when treating all patients mean no one should be excluded from treatment based on HIV,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This type of discrimination will not be tolerated.”
The U.S. Attorney in Eastern North Carolina, Thomas G. Walker, emphasized that “this settlement should also send a message to all health care providers in Eastern North Carolina that a disability cannot be a factor in determining accessibility to care and treatment.”
This settlement is part of the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative was announced on the anniversary of the ADA in July 2012 and 40 U.S. Attorneys’ offices are participating. The division expects the initiative to address access to health care for people with HIV and hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities.
For more information on the ADA and HIV visit www.ada.gov/aids. Those interested in finding out more information about these settlements or the obligations of public accommodations under the ADA, including how it protects people with HIV in accessing medical care, may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Justice Department Reaches Settlement with Houston Community College to Resolve Immigration-Related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it has reached an agreement with Houston Community College (HCC) resolving allegations that the college violated the anti-discrimination provision of the Immigration and Nationality Act (INA). HCC employs approximately 6,000 employees across 20 campuses and is one of the largest community colleges in the country.
The Justice Department’s investigation began after an individual filed a charge alleging that she was discriminated against in the hiring process. The department’s investigation revealed that for at least the last two years, HCC has engaged in a pattern or practice of discrimination by requiring non-U.S. citizens to provide specific documentation establishing their work authority, while not making similar demands from U.S. citizens. The department did not find that the individual that filed the charge was herself a victim of the discriminatory practice.
Under the terms of the agreement, HCC will pay $83,600 in civil penalties and agreed to abandon its prior department-based employment eligibility verification process in favor of a centralized verification process. HCC also agreed to create a $20,000 back pay fund to compensate potential victims who lost wages as a result of the discriminatory practices, to undergo Justice Department training on the anti-discrimination provision of the INA and to be subject to monitoring of its employment eligibility verification practices for a period of two years. The case was handled by Trial Attorney Liza Zamd and settled prior to the Justice Department filing a complaint in this matter.
“Employers cannot create higher hurdles for non-U.S. citizens in the employment process, including the employment eligibility verification process, than those required of U.S. citizens or those required by law,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “We commend HCC for restructuring its hiring processes to ensure that it will no longer be treating new-hires differently based on their citizenship status.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc.Related Materials:
HCC Settlement Agreement
Justice Department Files Antitrust Lawsuit Challenging <br /> Anheuser-Busch Inbev’s Proposed Acquisition of Grupo ModeloRead the Press Release
WASHINGTON – The Department of Justice filed a civil antitrust lawsuit today challenging Anheuser-Busch InBev’s (ABI) proposed acquisition of total ownership and control of Grupo Modelo. The department said that the $20.1 billion transaction would substantially lessen competition in the market for beer in the United States as a whole and in 26 metropolitan areas across the United States, resulting in consumers paying more for beer and having fewer new products from which to choose.Americans spent at least $80 billion on beer last year. According to the department, ABI’s Bud Light is the best selling beer in the United States and Modelo’s Corona Extra is the best-selling import. Because of the size of the beer market in the United States, even a small increase in the price of beer could result in billions of dollars of harm to American consumers, the department said.
The department’s lawsuit, filed in the U.S. District Court for the District of Columbia, seeks to prevent the companies from merging and to preserve the existing head-to-head competition between the firms that the transaction would eliminate.
“ The department is taking this action to stop a merger between major beer brewers because it would result in less competition and higher beer prices for American consumers,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “If ABI fully owned and controlled Modelo, ABI would be able to increase beer prices to American consumers. This lawsuit seeks to prevent ABI from eliminating Modelo as an important competitive force in the beer industry.”
ABI and Modelo–the largest and third largest beer firms, respectively–together control about 46 percent of annual sales in the United States. MillerCoors, the second largest beer firm, accounts for about 29 percent of nationwide sales. Beer is generally grouped into four distinct segments by industry participants–sub-premium, premium, premium plus and high-end. The sub-premium segment includes: Busch (owned by ABI); and Keystone (owned by MillerCoors). The premium segment includes: Bud Light; Coors Light; and MillerLite. The premium plus segment includes: Michelob (owned by ABI); and Modelo Especial (owned by Modelo). The high-end segment includes: imports such as Corona (owned by Modelo) and Heineken; and a variety of craft beers.
According to the department’s complaint, the U.S. beer market is already highly concentrated, and prices are increased by strategic interactions among the largest brewers, including ABI and MillerCoors. ABI generally acts as the price leader, implementing annual price increases in the sub-premium, premium and premium plus segments of the U.S. beer industry. MillerCoors and other brewers have typically joined the ABI price increases, while Modelo has not. By pricing aggressively, Modelo–through its importer, Crown Imports–puts pressure on ABI to maintain or lower prices, especially in certain parts of the country. As a result, Modelo has become a particularly important competitor in the U.S. market.
The complaint quotes internal company documents demonstrating both ABI’s determination to maintain its upward price leadership in the U.S. beer industry and Modelo’s present-day position as a significant competitive threat to ABI:- ABI has implemented a “conduct plan,” whereby ABI hopes to establish “the highest level of [price] followership” by its large rivals by being as “consistent,” “simple” and “transparent” as possible;
- ABI believes that its conduct plan provides the highest possibility of “sustaining a price increase” and “ensuring competition does not believe they can take share through pricing”;
- By contrast, Modelo’s pricing strategy in the United States is known as the “momentum plan” and aims to narrow the “price gap” between Modelo’s imports and domestic premium beers, such as ABI’s Bud Light, stealing market share from ABI by enticing consumers to “trade up” to Modelo beer; and
- ABI executives acknowledge that Modelo has “put increasing pressure” on ABI competitively, and that Modelo’s strategy is at odds with ABI’s well-established practice of leading prices upward with the expectation that its competitors will follow.
The complaint also discusses ABI’s efforts to target Corona. ABI considered Corona to be a significant threat, and launched Bud Light Lime in 2008 to compete with Corona. ABI went as far as to mimic Corona’s distinctive clear bottle. Ultimately, instead of trying to compete head-to-head with its own product, Bud Light Lime, ABI is thwarting competition by buying Modelo.
The department alleges that ABI’s acquisition of total ownership and control of Modelo would eliminate the existing competition between ABI and Modelo, further concentrating the beer industry, enhancing ABI’s market power and facilitating coordinated pricing between ABI and the remaining large players. Consumers would, as a result, see higher prices and less innovation.
The department’s complaint also alleges that ABI and Modelo efforts to remedy the anticompetitive aspects of their transaction are inadequate. The complaint states that ABI has agreed to sell Modelo’s existing 50 percent interest in Crown to its Crown joint venture partner, Constellation. ABI would also enter into an exclusive agreement to supply Constellation with Modelo beer to import into the United States, although ABI can terminate this supply agreement after 10 years and would retain the Modelo brands and its brewing and bottling facilities.
“The companies’ attempt to fix this anticompetitive deal through t he sale of Modelo’s existing interest in Crown and a temporary supply agreement is not sufficient to prevent consumer harm from ABI’s acquisition of its competitor, Modelo,” said Baer.
The complaint states that the combined effect of the proposed acquisition of Modelo and the proposed fix is to eliminate from the marketplace a sophisticated brewing firm with a long history of success and replace it with an importer which will own no brands or brewing facilities and be totally dependent on ABI for its supply of Corona and other Modelo brands. The documents in the case show that as Crown’s CEO wrote to his employees after the acquisition was announced: “our #1 competitor will now be our supplier…it is not currently or will not, going forward, be ‘business as usual.’” The department’s complaint said that not only will competition be harmed by the loss of Modelo as a competitor, but by removing an independent brewer–Modelo–from the market, strategically coordinated pricing will become easier in the future.
ABI is a Belgian corporation with its principal place of business in Leuven, Belgium. In 2011, ABI had revenues of approximately $39 billion. ABI currently has a 43 percent voting interest and a 50.35 percent economic interest in Modelo. ABI has stated in its annual reports filed with the Securities and Exchange Commission that it does not have voting or other effective control of Modelo. Through the proposed acquisition, ABI would acquire control of, and the remaining economic interest in Modelo.
Modelo is a Mexican corporation with its principal place of business in Mexico City. In 2011, Modelo had revenues of approximately $7 billion.
Joseph W. Jordan Sentenced to PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announces the sentencing of Joseph Wiley Jordan, age 64, a resident of Dougherty County, Georgia, on January 30, 2013, in Albany, Georgia by the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia.
On June 4, 2012, Jordan was found guilty by a jury of four felony counts: Count One, Conspiracy to Make Bribes or Kickbacks to a Bank Officer, and Counts Three, Four and Five, Substantive Acts of Bribes and Kickbacks to a Bank Officer.
Defendant Jordan was sentenced to fifteen (15) months in the custody of the Bureau of Prisons and two years of supervised release after serving his sentence. Defendant Jordan was allowed to remain on bond pending his surrender to the Bureau of Prisons.
The case was jointly investigated by Agents of the Federal Bureau of Investigation and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Jim Crane for the Middle District of Georgia.
“This prosecution was successful because of the cooperation of our law enforcement partners and the hard work of the agents and the prosecutor assigned to the case,” said U.S. Attorney Michael Moore.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
Jalen Jeremy Larance Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 31, 2013, before Chief U.S. District Judge Richard F. Cebull, JALEN JEREMY LARANCE, a 21-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, appeared for sentencing. LARANCE was sentenced to a term of:
Prison: 84 months
Special Assessment: $100
Supervised Release: 10 years
LARANCE was sentenced in connection with his guilty plea to aggravated sexual abuse.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
In late August or early September of 2011, LARANCE came to the house where the victim was staying, located in a housing area in Lame Deer, to check his Facebook account on her computer. LARANCE was drunk. While at the house, LARANCE pushed his body against the victim trying to hold her. She told LARANCE to leave and then she went into the bathroom. LARANCE followed her into the bathroom, pushed her against the sink, and forced her to engage in sexual intercourse. The victim repeatedly told LARANCE no.
The victim did not report the rape to law enforcement immediately, but she did tell her school counselor. There were also Facebook postings by LARANCE about the rape in which he apologized to the victim.
LARANCE was interviewed and provided a recorded statement admitting that he raped the victim.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LARANCE will likely serve all of the time imposed by the court. In the federal system, LARANCE 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 conducted by the Federal Bureau of Investigation.
Interstate Identity-theft Ringleader Sentenced to Almost Ten Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Marcus Montell Thames, 32, of Ft. Lauderdale, Florida, was sentenced to serve nine years and seven months in Federal prison for his leading role in an interstate identity-theft conspiracy that was based out of Florida, but whose members traveled throughout the Southeast and Upper Midwest committing bank fraud and identity theft during 2010 and 2011. The scheme involved eight charged defendants, all of whom have since been convicted of felonies including conspiracy to commit identity theft and bank fraud; bank fraud; and aggravated identity theft.The scheme involved the defendants, travelling in teams controlled by Thames, going to locations such as gyms, day-care centers, and other places where they hoped to find purses that had been left in vehicles. After breaking into the vehicles and stealing purses to obtain check books, driver licenses, and other means of identification, the defendants would then forge high face-value checks from one victim’s bank account made payable to another victim, and then travel to branches of the payee victim’s bank that had drive-through teller lanes. There, female fraud-team members wearing basic disguises would cash the forged checks from the lane farthest from the teller window, presenting that victim’s stolen means of identification as proof of identity. The fast-moving and wide-ranging scheme, dubbed “Felony Lane” by the lawenforcement agencies that investigated it, victimized significant numbers of private citizens and federally-insured financial institutions in states that included Georgia, Ohio, Indiana, Illinois and Michigan.
The investigation of Thames and his accomplices began with a February 2011 arrest by the Blackmon Township Police Department of defendant Wendy S. Bailey, 44, of Saginaw, Michigan, after she attempted to cash a forged check while on a trip with Thames and others. After initial investigation by Blackmon Township developed evidence that Bailey was part of an interstate fraud ring, the Lansing office of the FBI joined the investigation. From there, the investigation grew to include participation by the Meridian Township Police Department, the Michigan State Police, and numerous other law-enforcement agencies in communities outside of Michigan through which the fraud teams had passed.
The sentence was imposed by U.S. District Judge Janet T. Neff, who commented on the seriousness of identity theft in general, and on the aggravated character of this scheme in particular given its geographic reach, the number of victims over time, and the financial and psychic harms it caused.
Other defendants received the following sentences: Peter P. Simone, 50, of Davie, Florida, who was convicted following a jury trial in October 2011, received a sentence of six years in prison; Jarod L. Jackson, 29, of Ft. Lauderdale, Florida, was sentenced to 41 months in prison; Lucious L. Felder, 23, of Ft. Lauderdale, was sentenced to 30 months in prison; Carlton L. Brown, 24, of Ft. Lauderdale, was sentenced to 18 months in prison; Kimberly L, Kirkby, 52, of Florence, Alabama, was sentenced to 12 months in prison; and Wendy S. Bailey, 44, of Saginaw, Michigan, received a sentence of time-served, or approximately three months. Erica S. Robinson, 29, of Smyrna, Georgia, is pending sentencing on February 19, 2013. She is presently in the custody of the U.S. Marshals Service. All of the sentences were imposed by U.S. District Judge Neff, who also presided over the Simone trial.
Commenting on the sentences, U.S. Attorney Patrick A. Miles Jr. stated, “identity theft is a particularly pernicious form of property crime because it involves more than simply stealing money, it involves stealing the peace of mind of victims and, sometimes, harming their reputations and their credit-worthiness. For that reason, my Office will continue to aggressively pursue identity thieves – particularly those who mistakenly believe that they can escape accountability if they just keep moving quickly enough from county to county or from state to state.”
Robert D. Foley III, Special Agent in Charge, FBI Detroit Division stated, “Those individuals who engage in identity theft and other crimes as part of a ring, are robbing citizens of their money and their piece of mind. The FBI is committed to pursuing and prosecuting these criminals for these illegal acts.”
The Lansing office of the FBI was the lead investigating agency in the case. It was prosecuted by Assistant U.S. Attorney Hagen W. Frank, who serves as the principal of the Identity Theft and Cybercrime Task-Force of the U.S. Attorney’s Office..
END
Internet Scammer Indicted for FraudRead the Press Release
SYRACUSE, NEW YORK —United States Attorney Richard S. Hartunian announced that a Syracuse Federal Grand Jury has returned an indictment charging Alexandru Turcan, 29, with wire fraud, false use of a passport, and aggravated identity theft in violation of 18 U.S.C. § 1343, 1543 and 1028A. Turcan, originally from Chisinau, Moldova, is a lawful permanent resident of the United States. He was apprehended while entering the United States through Orlando, Florida.
The indictment alleges that Turcan conducted a scheme to defraud individuals who responded to advertisements listing vehicles on http://www.autotrader.com/, a website that displays automobiles for sale. Two victims, in responding to an advertisement posted by Turcan, believed they were purchasing a 2007 Chevrolet Silverado and a 1968 Ford Shelby Mustang. The victims, citizens of Connecticut and Georgia, wired $17,900 and $21,000 respectively to purchase the vehicles to a bank account established by Turcan in Syracuse, New York. Turcan opened the account under a false name using a counterfeited passport. After transferring the funds to Turcan’s bank account, the victims never received the vehicles they believed they had purchased.
If convicted of aggravated identity theft, Turcan faces a mandatory two year term of imprisonment that would run concurrently with any term of imprisonment imposed for conviction of wire fraud and false use of a passport. If convicted of wire fraud, Turcan faces a 20 year maximum term of imprisonment, a fine of up to $250,000, and an order of restitution compensating the victims for their losses. If convicted of false use of a passport, Turcan faces a 10 year maximum term of imprisonment, a fine of up to $250,000 and an order of restitution.
The indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Upstate Electronic Crimes Task Force including the Syracuse Police Department and the United States Secret Service, the Office of the Ohio Attorney General, the Federal Bureau of Investigation, Diplomatic Security Services, and the Department of Homeland Security, Connecticut State Police Computer Crimes Unit. The case is being prosecuted by Assistant U.S. Attorney Gwen Carroll. For further information, contact Executive Assistant U.S. Attorney John G. Duncan at 315-448-0672
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 31, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
JOSEPH MATTHEW BALLANTYNE, a 54-year-old resident of Billings, appeared on a charge of failure to register as a sexual offender. He is currently detained. If convicted of this charge, BALLANTYNE faces possible penalties of 10 years in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Marcia K. Hurd is the prosecutor for the United States. The investigation was conducted by the United States Marshals Service.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Houston Jury Convicts Woman of Alien Smuggling Resulting in DeathRead the Press Release
HOUSTON – Demi Mishel Muniz, of Los Angeles, Calif., has been convicted of conspiracy to transport and harbor aliens resulting in the death of a 38-year-old illegal alien from Mexico, U.S. Attorney Kenneth Magidson announced today. The Houston federal jury returned its verdict just a short time ago following a three-day trial before U.S. District Judge Lee H. Rosenthal.
During trial, testimony revealed that on Aug. 18, 2010, the Oldham County Sheriff’s Office was notified there was a body on the side of Interstate 40 outside of Vega, approximately 20 miles west of Amarillo. The identity of the deceased was discovered following receipt of an inquiry from the alien’s son.
The deceased was in the process of being smuggled from Mexico into the United States, being transported from Houston to Los Angeles, Calif. During the course of the journey, Muniz contacted the wife of the deceased and provided a bank account number for the deposit of $650 in smuggling fees. Subsequently, Muniz contacted the wife again and informed her he was ill. The wife told Muniz her husband was a diabetic and required insulin and requested he be taken to a hospital. Muniz refused and stated she had other people in the van and had to keep moving. A few hours later, the wife was called and told not to deposit the money into the bank account because her husband had been “left behind.”
An autopsy on the body of the deceased determined he had died of a combination of pneumonia and diabetes. Testimony also revealed that had the deceased received proper and timely medical care, he likely would have survived.
The bank accounts of Muniz were extensively reviewed and it was determined that approximately $84,000 in the account was derived from unknown sources. Agents determined many of the deposits were from various other states and that this was a characteristic consistent with alien smuggling operations.
A co-defendant testified Muniz and others were heavily involved in alien smuggling and that during the course of the trip Muniz refused to provide help to the deceased.
Although Muniz previously said she was not involved in the smuggling venture and was not in the van with the deceased, Muniz elected to testify in the trial and admitted to being in the van, but said she did not know the aliens were illegal. She further denied having talked to the widow and also denied being told the deceased was diabetic and required insulin. The jury disagreed and found her guilty.
Sentencing is scheduled for May 14, 2013, at which time she faces up to life in prison and a maximum fine of $250,000.
The case was investigated by the Oldham County Sheriff’s Office, Texas Rangers, Texas Department of Public Safety and Homeland Security Investigations. Assistant United States Attorneys Julie Searle and Douglas Davis prosecuted the case.
Holden Man Convicted for Tax EvasionRead the Press Release
BOSTON - A Holden man was convicted today of tax evasion.
David L. Toppin, 47, was convicted by a jury sitting in Worcester before U.S. District Judge Timothy Hillman on a charge of tax evasion.
Toppin, the sole owner and operator of Pelletizer Group, Inc., did not file federal income tax returns for 1997-1999 until 2006. In the returns, Toppin reported earning a total adjusted gross income of $727,701 and owing $227,199 in federal income taxes for 1997-1999. The evidence at trial showed that Toppin evaded payment of his taxes and tried to impede the IRS’s collection of his income tax by, among other things, placing real estate and checking accounts in his wife’s name and by misleading the IRS about the extent of his assets and income.
Sentencing is scheduled for May 2, 2013.
The maximum sentence under the statute is five years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Christine J. Wichers and Sandra Bower of Ortiz’s Economic Crimes Unit.High-Ranking Member of Mexican “Los Zetas” Cartel Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
Jesus Enrique Rejon Aguilar, aka “Mamito” and “Caballero,” a high ranking member of the “Los Zetas” drug cartel, pleaded guilty today to conspiracy to import multi-ton quantities of cocaine and marijuana into the United States, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
Rejon Aguilar, 36, pleaded guilty before U.S. District Judge Barbara J. Rothstein in the District of Columbia. Rejon Aguilar was extradited to the United States in September 2012 and was ordered detained in federal custody pending trial.
On Nov. 4, 2010, Rejon Aguilar and 19 co-defendants were charged in a superseding indictment with conspiracy to manufacture and distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana for importation into the United States. The indictment charges that between 2000 and 2010, members of Los Zetas, including Rejon Aguilar, engaged in a conspiracy with members of the Gulf Cartel in an arrangement referred to as the “Company” to import drugs into the United States. Rejon Aguilar was an original member of Los Zetas and held a high ranking position with the Company.
“As a leader of the Company’s drug trafficking operation, Rejon Aguilar ensured that mass quantities of cocaine and marijuana were brought into the United States for distribution,” said Assistant Attorney General Breuer. “The Justice Department is committed to working with its law enforcement partners to bring cartel members and associates to justice for their crimes.”
“As an original and high-ranking member of the Los Zetas cartel, Jesus Enrique Rejon Aguilar was responsible for funneling massive amounts of marijuana and cocaine into the United States while using violence to intimidate anyone that stood in his way,” said DEA Administrator Leonhart. “Rejon Aguilar’s plea today was possible only with the strength and power of international law enforcement cooperation. DEA, along with our Mexican counterparts, are committed to bringing violent criminals like Rejon Aguilar, to justice.”
According to the indictment, the Company transported shipments of cocaine and marijuana by motor vehicles from Mexico to cities in Texas for distribution to other cities within the United States. The indictment alleges that Rejon Aguilar, his co-defendants and others organized, directed and carried out various acts of violence to retaliate against and to intimidate anyone who interfered with, or who were perceived to potentially interfere with, the cocaine and marijuana trafficking activities of the Company.
On April 15, 2009, under the Foreign Narcotics Kingpin Designation Act, the President identified Los Zetas as a Significant Foreign Narcotics Trafficker. On March 24, 2010, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) named Rejon Aguilar as a Significant Foreign Narcotics Trafficker. On July 25, 2011, an executive order was issued that blocks the transfer, payment or export of property belonging to certain transnational criminal organizations, including Los Zetas.
The department expressed its gratitude and appreciation to the government of Mexico for its assistance in this matter.
At sentencing, Rejon Aguilar faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The case is being prosecuted by trial attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The investigation in this case was led by the DEA’s Houston Field Division and the DEA Bilateral Investigation Unit.