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15 March 2013
Monmouth County, N.J., Man Sentenced to 71 Months in Prison for Defrauding 16 People of $1.2 MillionRead the Press Release
TRENTON, N.J. — A Monmouth County, N.J., man was sentenced today to 71 months in prison for defrauding 16 victims, including friends and family, of $1.2 million in an investment fraud scheme, U.S. Attorney Paul J. Fishman announced.
Brian McCahery, 45, of Bradley Beach, N.J., previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an Information charging him with engaging in a monetary transaction in excess of $10,000, using proceeds from wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:McCahery was an employee of a “day trading” company in Matawan, N. J., which provided computer terminals, capital and other business services to “day traders,” who traded shares of public companies for profit.
From Jan. 9, 2009 through March 14, 2011, McCahery carried out a scheme to defraud investors of $1.2 million in cash, checks or wires, money which he obtained through false representations and promises. McCahery used the name of the day-trading company to promise a high rate of return on initial investments. He promised the investments would be used to purchase short-term equity funds and, in some instances, Initial Public Offerings. The investors provided him funds directly by wire, check, or cash, which were deposited in bank accounts in the name of McCahery or his spouse. McCahery used most of these funds for personal expenditures or to pay “lulling” payments to the victims to extend the life of the scheme.
McCahery communicated via phone, e-mail, and in person with the investors and falsely informed them where their money was being invested, and the value of their investment accounts. In fact, such investment accounts for the most part were never created. McCahery modified a software program he obtained at the company to allow investors to log on and check the balance of their purported investment accounts. There, they would see false figures indicating their money had been invested in a particular account and was increasing in value.
In addition to the prison term, Judge Thompson sentenced McCahery to three years of supervised release with restrictions, including a bar on fiduciary positions and management or access to other people’s money, and ordered restitution to the 16 victims of $1.19 million as well as forfeiture of $63,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, and IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation that resulted in today’s sentencing.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Antonio Martinez Esq., Trenton, NJ
Medical Director for Miami-Based Health Care Clinic Sentenced to 144 Months in Prison for Role in $50 Million Medicare Fraud SchemeRead the Press Release
A former medical director for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 144 months in prison for his role in a fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Dr. Gary Kushner, 72, of Plantation, Fla., was sentenced by U.S. District Judge Robert N. Scola Jr. in the Southern District of Florida. In addition to the prison term, Kushner was ordered to serve three years of supervised release.
Kushner was convicted on Aug. 28, 2012, of one count of conspiracy to commit health care fraud and one substantive count of health care fraud, following a two-month jury trial.According to the evidence at trial, Kushner and his co-conspirators caused the submission of over $50 million dollars in false and fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead of providing legitimate PHP services, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided or were not properly reimbursable by Medicare. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications.
The evidence at trial further showed that, as Biscayne Milieu’s medical director, Kushner authorized the treatment of patients that he knew were ineligible for PHP treatment. Biscayne Milieu then billed Medicare for millions of dollars in PHP treatments for these patients under Kushner’s name. Evidence further revealed that Kushner would often conduct cursory examinations lasting only minutes before authorizing such fraudulent billings.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – were each convicted at trial of various offenses and are scheduled for sentencing in April 2013.
This case is being prosecuted by Assistant U.S. Attorneys Michael Davis, Marlene Rodriguez and James V. Hayes of the U.S. Attorney’s Office for the Southern District of Florida; James V. Hayes was formerly a Trial Attorney in the Criminal Division’s Fraud Section. The case was investigated by the FBI with the assistance of HHS-OIG, and was brought by the U.S. Attorney’s Office for the Southern District of Florida in coordination with the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Medical Director for Miami-Based Health Care Clinic Sentenced to 144 Months in Prison for Role in $50 Million Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office announced that a former medical director for Biscayne Milieu, a Miami-based mental-health clinic, was sentenced today to serve 144 months in prison for his role in a fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare.
Dr. Gary Kushner, 72, of Plantation, Fla., was sentenced by U.S. District Judge Robert N. Scola Jr. in the Southern District of Florida. In addition to the prison term, Kushner was ordered to serve three years of supervised release.
Kushner was convicted on Aug. 24, 2012, of one count of conspiracy to commit health care fraud and one substantive count of health care fraud, following a two-month jury trial.
According to the evidence at trial, Kushner and his co-conspirators caused the submission of over $50 million dollars in false and fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead of providing legitimate PHP services, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided or were not properly reimbursable by Medicare. Many of the patients admitted to Biscayne Milieu were not eligible for PHP because they were chronic substance abusers, suffered from severe dementia and would not benefit from group therapy, or had no mental health diagnosis but were seeking exemptions for their U.S. citizenship applications.
The evidence at trial further showed that, as Biscayne Milieu’s medical director, Kushner authorized the treatment of patients that he knew were ineligible for PHP treatment. Biscayne Milieu then billed Medicare for millions of dollars in PHP treatments for these patients under Kushner’s name. Evidence further revealed that Kushner would often conduct cursory examinations lasting only minutes before authorizing such fraudulent billings.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial. Antonio and Jorge Macli and Sandra Huarte – the owners and operators of Biscayne Milieu – were each convicted at trial of various offenses and are scheduled for sentencing in April 2013.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation and the Office of the Inspector General for the Department of Health and Human Services in coordination with the Medicare Fraud Strike Force. The case was prosecuted by Assistant U.S. Attorneys Michael Davis, Marlene Rodriguez and James V. Hayes.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mechanicsburg Man Charged with Tax EvasionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Thomas C. Holloway, age 46, of Mechanicsburg, Pennsylvania, was charged today with attempted income tax evasion for 2008.
A plea agreement was filed at the same time as the Information. In it, Holloway agreed to plead guilty to the offense and pay $80,000 in restitution to the IRS.
According to United States Attorney Peter J. Smith, Holloway previously was employed by Spherion (an IT firm based in Mechanicsburg and formerly known as Intellimark and Technisource) between 2001 and 2009 and embezzled company funds which were not reported on his income tax returns. Holloway previously was charged by local authorities with theft by deception in connection with the embezzlements and was sentenced in 2010 in state court to probation and ordered to pay $125,000 in restitution to Spherion. The current tax charges allege that the tax loss to the IRS was $80,000 for the years 2003-2009.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentencing following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years' imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Mayfield Heights Woman Charged with Embezzling More Than $650,000Read the Press Release
A one-count criminal information was filed today charging Willoughby Hills woman with embezzling more than $650,000 in federal funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Theresa E. Medsker, age 51, is accused of embezzling approximately $654,192 in federal funds while working as the bookkeeper for the Schnurmann House in Mayfield Heights, Ohio. Schnurmann House is a non-profit, inter-denominational housing community consisting of 198 apartments for individuals age 62 and over that receives a substantial portion of its funding from the United States Department of Housing and Urban Development.
“This defendant was in a position of trust, and the charge lays out behavior that is a clear violation of that trust,” Dettelbach said. “This office will continue to hold accountable those that would betray the public’s confidence, in whatever form.”
The information charges that from on or about December 28, 2005 through on or about January 10, 2012, Medsker controlled Schnurmann House's bank accounts, and issued fraudulent checks from these accounts to herself. Because all of the Schnurmann House checks required two signatures, one from the executive director and one from the administrative assistant, Medsker forged the signature of the executive director on the checks and presented them to the administrative assistant, who signed them believing that the executive director had already approved the checks, according to the information.
Then, Medsker cashed and deposited the Schnurmann House checks into her personal bank accounts. In order to conceal her theft of funds from the Schnurmann House, Medsker altered and falsified the Schnurmann House’s monthly bank statements by physically cutting and pasting vendor checks on top of the checks she wrote to herself, and making counterfeit copies of the bank statements, according to the information.
Medsker then submitted the altered bank statements to the executive director and the board as Schnurmann House’s official financial records, according to the information.
Over the course of the fraud, Medsker deposited approximately 300 Schnurmann House checks made payable to her into her personal accounts totaling approximately $654,192, according to the information.
If convicted, Medsker’s sentence will be determined by the court after review of factors unique to this case, including defendant’s prior criminal record, if any, defendant’s role in the offense, and the characteristics of the violation. The sentence will not exceed the statutory maximum and will likely be less than the maximum statutory period of incarceration.This case is being prosecuted by Assistant United States Attorney Mark S. Bennett, following an investigation by the Cleveland Office of the United States Department of Housing and Urban Development, Office of Inspector General, and the City of Mayfield Heights Police Department.
An information is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Maryland Man Sentenced to 18 Years in Prison for 2011 Murder at Northwest Washington Restaurant-Defendant Shot Victim Without Provocation-Read the Press Release
WASHINGTON – Alexis Pineda, 26, of Suitland, Md., was sentenced today to 18 years in prison on a charge stemming from the killing last year of a patron at a restaurant in Northwest Washington, announced U.S. Attorney Ronald C. Machen Jr.
Pineda pled guilty in October 2012, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. His friend, Jaime Cruz, 31, of Lanham, Md., pled guilty that month to obstructing justice in the case. Cruz was sentenced on Oct. 19, 2012, to three years of incarceration.
The Honorable Robert E. Morin sentenced Pineda. Upon completion of his prison term, Pineda will be subject to five years of supervised release. However, he will be deported to his native country of El Salvador at that time due to his other earlier conviction for an illegal re-entry charge in the U.S. District Court for the District of Columbia.
According to the government’s evidence, Pineda, Cruz and another friend went to the El Sauce Restaurant, in the 1200 block of Eleventh Street NW, at about 2:30 a.m. on March 27, 2011. Pineda encountered the victim, Jose Manuel Hernandez-Romero, 24, inside the restaurant. Then, without provocation, he shot Mr. Hernandez-Romero one time in the chest with a revolver.
Immediately afterward, other patrons tackled Pineda outside the restaurant and wrestled the revolver away from him. Cruz tried to pry Pineda from the other patrons and threatened to shoot them unless they released him. Cruz also assaulted one of the patrons who held Pineda. Pineda repeatedly screamed, “I’ll kill him.” Despite the threats and assault, the patrons bravely continued to hold Pineda until the police arrived and arrested him.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives and officers of the Criminal Investigations Division and the Third District of the Metropolitan Police Department, as well as U.S. Immigration and Customs Enforcement of the Department of Homeland Security. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim Witness Advocates Christina Principe and Melissa Milam, Paralegal Specialists Marian Russell and Meridith McGarrity. Finally, U.S. Attorney Machen praised Assistant U.S. Attorneys Shana Fulton, David Saybolt and Alan Boyd, who prosecuted the case.
13-100Man Sentenced for Possession of Stolen Firearm on Hannahville ReservationRead the Press Release
MARQUETTE, MICHIGAN – Marco Antonio Arteaga, 20, of Wilson, Michigan, was sentenced to 24 months in federal prison for possession of a stolen firearm, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Arteaga to serve three years of supervised release following his release from prison, and to pay a $100 special assessment. Arteaga pled guilty to the charge last October.The investigation into Arteaga’s activities stemmed from an unrelated assault in which a 12 year-old child had a gun pointed at his head. Through the course of the investigation, it was discovered that the gun used in that incident, as well as other guns, had been stolen from a residence on the Hannahville reservation. One of the stolen firearms was found in Arteaga’s house underneath his mattress. Arteaga ultimately admitted to concealing two of the firearms that had been stolen in his residence.
The Hannahville Indian Community Tribal Police, the Federal Bureau of Investigation, the Upper Peninsula Substance Enforcement Team, and the Menominee County Sheriff Department investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case..
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Madison Illinois Man Pleads Guilty to Conspiracy, Wire Fraud, and Identity Theft in Multi-State Auto Theft SchemeRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 15, 2013, Gordon D. Caldwell, 46, of Madison, Illinois, pled guilty in federal court to Conspiracy to Possess and Pass Counterfeit Securities, Wire Fraud, and Aggravated Identity Theft, as charged in three-count information. Caldwell faces a mandatory minimum sentence of two years for Aggravated Identity Theft and could be sentenced up to 27 years of imprisonment. Caldwell also faces a fine of up to $500,000.00, a period of supervised release of up to three years and the payment of a $300.00 special assessment. Caldwell will also be required to pay approximately $100,000.00 in restitution when he is sentenced on June 21, 2013, at 1:30 p.m. in United States District Court in East St. Louis, Illinois.
“The significance of this prosecution rests not only with the conviction of Caldwell, who had crossed state lines and police jurisdictions to defraud citizens in eight counties in two states, but also with the outstanding team work that included multiple law enforcement and prosecutors’ offices from Illinois and Missouri working together to reach this result,” said United States Attorney Wigginton. “With federal and state agencies working together, the focus will not be on where you do the crime, instead, the focus is going to be where you’re going to do the time.”
During his plea, Caldwell admitted that from April of 2011 to August of 2012 he had schemed and conspired with others to use counterfeit cashier’s checks of financial institutions to defraud individuals in both Illinois and Missouri who had listed their vehicles for sale in various media sources. Caldwell admitted that he would go to the seller’s house or location the vehicle was held for sale, and while using false identification, he would give the counterfeit cashier’s check to the seller. Caldwell also admitted that on two occasions, he used the fraudulently obtained vehicle titles to take out vehicle loans.
The investigation was conducted by the Metro East Auto Theft Task Force with the assistance of the Madison County Sheriff’s Office; the Granite City, Madison, Glen Carbon, Maryville, Effingham, Decatur and South Roxana Police Departments in Illinois; the Jefferson, and Boone County Sheriff’s Offices; the St. Charles County Sheriff’s Department and the St. Peters, St. Louis County and Arnold Police Departments in Missouri. Assistance was also given by the state’s attorneys’ offices in Madison, Macon, Effingham and Morgan Counties in Illinois, as well as prosecutors in Jefferson, St. Charles, St. Louis, and Boone Counties in Missouri. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Local Real Estate Professionals Sentenced for Wire FraudRead the Press Release
Geoffrey Montani and Kenneth Jones Sentenced for Submitting Fraudulent Mortgage Loan ApplicationsPORTLAND, Ore. – Geoffrey Montani, 36, and Kenneth Jones, 50, both of Portland, Oregon, were sentenced to 15 months in prison in separate hearings following their convictions for wire fraud in connection with a mortgage fraud scheme. Montani was sentenced by the Honorable Robert E. Jones on Friday March 15, 2013. Jones was sentenced by the Honorable Anna J. Brown on Thursday, March 7, 2013. In addition to the prison sentence, each was ordered to pay restitution in an amount exceeding $1.4 million dollars
In mid-2005 through April 2007, Montani and Jones bought and resold (“flipped”) houses in the Portland metropolitan area. Rather than sell these houses to real buyers in arms-length negotiations, the defendants, in 37 separate transactions, knowingly sold the houses to straw-buyers provided by another member of the scheme, Marty Folwick. Folwick was convicted in 2008 and sentenced to 63 months in prison.
The scheme, in essence, worked as follows: Montani and Jones purchased residential houses in the Portland area with money provided by Montani’s father, Stephen Montani, and other “hard money” investors. In some cases, remodeling was done on the house after purchase. Rather than listing the house for resale through a realtor or other traditional means, Montani and Jones contacted Folwick, told him they had a property for sale at a set price and solicited him to produce a straw-buyer for the property in exchange for a kickback following closing. These straw-buyers had no intent to live in the property or pay the monthly mortgage, but they allowed (or were duped into allowing) their name and credit score to be used on the mortgage application, on the false promise that they would become successful real estate investors. Once a straw-buyer was identified, a mortgage application was prepared by Montani and Jones or their associates for the straw-buyer to sign. Montani and Jones knew that each application contained false information and would be submitted to a lender for approval based on the false information in the application. In a number of cases, Montani and Jones created false supporting documentation for inclusion with the application. Once the mortgage loan was approved, the property was sold to the straw-buyer; thereafter Montani and Jones paid off the hard money loan and divided the significant profits between themselves and others. In every case, the property subsequently fell into foreclosure, causing losses to the mortgage lender. The losses on the 37 properties identified by the government for prosecution totaled $1.9 million dollars.
U. S. Attorney for the District of Oregon Amanda Marshall said, “Mortgage fraud committed during the housing bubble of 2005-2008 continues to impact the livability of our community. These convictions demonstrate that the Department of Justice remains committed to investigating and prosecuting those who are responsible for the damage done to our neighborhoods and financial institutions.”
The investigation was initiated by the Portland office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Scott Erik Asphaug.
Local Man Pleads Guilty to Sex Trafficking ChargesRead the Press Release
St. Louis, MO - Carl Mathews pled guilty to charges involving the sex trafficking of two area women by force and intimidation.
According to statements made in court during today's plea, between 2010 and October 2012, Carl Mathews conspired with others to force the two women to engage in prostitution in the St. Louis metropolitan area. The defendant arranged for one of the women to work in a local hotel. One of the women was told that she needed to help support the household by applying for state and federally-regulated food-stamp benefits and by having sex for money. Their food-stamp identification (EBT) cards were kept from them to deprive them of food and drink as a method of control, and they were sometimes provided the drug MDMA and clothing in preparation for the commercial sex dates.
CARL MATHEWS, Breckenridge Hills, MO, pled guilty to one felony count of conspiracy to commit sex trafficking by force, fraud or coercion, before United States District Judge Henry Autrey. Sentencing has been set for June 12, 2013.Co-defendant Carla Mathews, also of Breckenridge Hills, is facing trial on one felony count of conspiracy to commit sex trafficking by force, fraud or coercion, and two felony counts of sex trafficking by force, fraud or coercion.
The conspiracy charge carries a maximum penalty of life in prison; each count of sex trafficking by force, fraud or coercion carries a penalty range of fifteen years to life in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Agriculture Office of Investigations, and the Breckenridge Hills Police Department. Assistant United States Attorney Noelle Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Defendant Carla Mathews is presumed to be innocent unless and until proven guilty.
Lawyer Pleads Guilty to Involvement in Massive No-Fault Automobile Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SOL NAIMARK, an attorney, pled guilty to his role in two separate conspiracies to defraud private insurance companies under New York’s no-fault automobile insurance law, including one charge related to the largest single no-fault automobile insurance fraud scheme ever charged. NAIMARK pled guilty yesterday before U.S. District Judge J. Paul Oetken. Recently, ALEXANDER SANDLER, an owner and controller of several fraudulent no-fault clinics, GREGORY MIKHALOV, an owner and controller of medical clinics, LYNDA TADDER, a manager at a no-fault clinic, and CHAD GREENSHNER, a licensed chiropractor, also pled guilty to conspiracy to commit mail fraud and health care fraud in connection with the scheme before Judge Oetken.
The five defendants were arrested in February 2012, along with 31 others, and charged with conspiracy to commit mail fraud and health care fraud in connection with a systemic scheme to defraud private insurance companies of more than $279 million under New York’s no-fault automobile insurance law. Some of the defendants were also charged with racketeering and money laundering. A total of 10 defendants, including one licensed doctor, have now pled guilty. NAIMARK also pled guilty to a separate conspiracy to commit health care fraud.
Manhattan U.S. Attorney Preet Bharara said: “Sol Naimark actively solicited clients for whom he could churn out bogus lawsuits as part of a multi-million dollar insurance fraud scheme. It is particularly egregious when an attorney uses his license to perpetrate a fraud.”
According to the Superseding Information and other publicly filed information in the case, and the defendants’ statements in open court:
Under New York State Law, every vehicle registered in New York State is required to have no-fault automobile insurance, which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to $50,000 per person for injuries sustained in an automobile accident, regardless of fault, (the “No-Fault Law”). The No-Fault Law requires prompt payment for medical treatment, thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed. Under the No-Fault Law, patients can assign their right to reimbursement from an insurance company to others, including medical clinics that provide treatment for their injuries. New York State Law also requires that all medical clinics in the State be incorporated, owned, operated, and/or controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No-Fault Law. Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned, operated, and controlled by a licensed medical practitioner.
In order to mislead New York authorities and private insurers, some of the defendants in this case who were the true owners of these medical clinics (“No-Fault Clinic Controllers”) paid licensed medical practitioners, including doctors, to use their licenses to form the professional corporations through which the medical clinics would then bill the private insurers for the bogus medical treatments. SANDLER owned, operated, and controlled at least four of these no-fault clinics, and TADDER was a manager at one of the clinics.
The No-Fault Clinic Controllers also instructed the clinic doctors to prescribe excessive and unwarranted referrals for various “modality treatments” for nearly every patient they saw. The treatments included physical therapy, acupuncture and chiropractic treatments – as much as five times per week for each – and treatments for psychology, neurology, orthopedics, and range of motion, in addition to functional capacity tests. Clinic doctors also prescribed unnecessary MRI’s, x-rays, orthopedics, and medical supplies. The No-Fault Clinic Controllers received thousands of dollars in kickbacks for patient referrals from the owners of the modality clinics (“Modality Controllers”). MIKHALOV was a Modality Controller who admitted to owning modality clinics that purported to be owned by licensed doctors, as required by New York Law. GREENSHNER was a chiropractor who provided unnecessary medical treatments at one of the modality clinics.
Patients were also referred to personal injury lawyers to file lawsuits against the insurance companies arising out of their exaggerated injuries from automobile accidents. The success of these lawsuits hinged on how many medical treatments the patients received, providing the necessary incentive for the patients to receive multiple treatments at the no-fault and modality clinics. NAIMARK admitted to paying a No-Fault Clinic Controller to refer him patients that received unnecessary treatments so that he could file personal injury lawsuits on behalf of the patients.
The second charge to which NAIMARK pled guilty relates to payments he made to a runner to bring him no-fault patients so that he could file personal injury lawsuits on their behalf.
NAIMARK, 54, of Flushing, New York, pled guilty to two counts of conspiracy to commit health care fraud. He faces a maximum sentence of 20 years in prison. He is scheduled to be sentenced by Judge Oetken on July 22, 2013.
SANDLER and MIKHALOV each pled guilty to conspiracy to commit health care fraud and conspiracy to commit mail fraud, and each faces a maximum sentence of five years in prison. TADDER pled guilty to conspiracy to commit health care fraud and conspiracy to commit mail fraud and faces a maximum sentence of 30 years in prison. GREENSHNER pled guilty to conspiracy to commit health care fraud, and faces a maximum sentence of 10 years in prison.
GREENSHNER, MIKHALOV, SANDLER, and TADDER are scheduled to be sentenced by Judge Oetken on July 1, 2013, July 8, 2013, July 9, 2013, and September 27, 2013, respectively.
U.S. Attorney Preet Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Daniel S. Goldman, Nicholas L. McQuaid, Carolina A. Fornos and Daniel S. Noble are in charge of the prosecution. Assistant U.S. Attorneys Jason L. Cowley and Martin Bell of the Office’s Asset Forfeiture Unit are responsible for the forfeiture of assets.
U.S. v. Sol Naimark S11 Information
Keyser Resident Convicted on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — A 51 year old Keyser, West Virginia, resident was convicted on March 13, 2013, by a Martinsburg jury on six counts. The trial lasted two days, concluding late afternoon Wednesday. Judge Gina M. Groh presided over the trial.
United States Attorney William J. Ihlenfeld, II, announced that: CHARLES PAGE HAINES, III was convicted on one count of “Conspiracy to Distribute Cocaine Base” from June 5 to June 28, 2012; four counts of “Distribution of Cocaine Base” on June 5, June 6 and twice on June 7, 2012; and one count of “Maintaining a Drug-Involved Premise” from June
5 to June 28, 2012, all in Keyser, Mineral County, West Virginia.Trial evidence indicated that HAINES was involved with co-defendants Loren Constantine Brown and Crystal Starr Metz in a conspiracy to distribute cocaine base and provided his residence as a place from which the crack was distributed.
HAINES, who is in custody pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine on each of the conspiracy and distribution counts and up to 20 years imprisonment and $500,000 fine on the maintaining a drug-involved premise count.
This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Potomac Highlands Drug and Violent Crimes Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
Kbic Man Sentenced to Prison for Sexual Abuse of A MinorRead the Press Release
MARQUETTE, MICHIGAN – Brian Paul Loonsfoot, 31, of Baraga, Michigan, was sentenced to 78 months in federal prison for sexual abuse of a minor, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Loonsfoot to serve ten years of supervised release following his release from prison, and to pay a $100 special assessment. Loonsfoot’s sentence to custody will begin after his release from the Wisconsin prison system, where he is serving a sentence for sexual abuse of the same victim. Loonsfoot had pled guilty to the federal charge last November.
The investigation of this case revealed that Loonsfoot, who was 28 years old at the time of the offense, had sexual relations with a 12 year old girl who was a close friend of his family. These sexual acts occurred in Green Bay, Wisconsin, and on the Keweenaw Bay Indian Community reservation. Loonsfoot was prosecuted by Brown County, Wisconsin authorities for his offenses in Green Bay. In September 2011, Loonsfoot pleaded guilty to one count of second degree sexual assault of a child under 16. He was sentenced to seven years of confinement by the Brown County Circuit Court in December, 2011.
The Keweenaw Bay Indian Community Tribal Police and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
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Katelyn & Claire, Inc and Alex T, Inc Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that KATELYN & CLAIRE, INC. and ALEX T, INC., both doing business as Quality Express, pled guilty before United States District Court Chief Judge Brian A. Jackson to conspiracy to launder monetary instruments and multiple counts of failure to file Currency Transaction Reports. The corporations also agreed to forfeit to the United States $992,462.40, which were funds involved in the charged offenses.
Quality Express, which is located on Foster Drive in Baton Rouge, Louisiana, offered check cashing, currency exchanges and money transfers. Between March 2010 and April 2011, an undercover agent, working at the direction of the DEA and IRS, provided more than $275,000 in United States currency to agents of Quality Express to be exchanged or transferred so that it could be more easily concealed and avoid detection by law enforcement. The money was represented to be drug proceeds.
To further conceal the currency exchanges and transfers, Quality Express and its agents failed to file Currency Transaction Reports that would have reflected the receipt of United States Currency, on six separate occasions, in amounts ranging from $12,000 to $90,000. The defendants believed that the money was proceeds from drug trafficking.
United States Attorney Donald J. Cazayoux, Jr. stated, “This plea along with the nearly one million dollar money forfeiture here should send a clear message to any businesses, which attempt to help drug dealers and any other criminals launder the proceeds of their illegal actions, that we will not tolerate these acts in the Middle District of Louisiana.”
Damon Rowe, Acting IRS Special Agent-in-Charge, stated that “avoiding currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Deliberately avoiding these requirements is a form of money laundering; and IRS Criminal Investigation will work closely with the U.S. Attorney’s Office, and our law enforcement counterparts, to forcefully investigate these conspiracies.”
DEA Acting Assistant Special Agent-in-Charge Tony James stated, “The DEA, in conjunction with the IRS and local law enforcement agencies, will continue to pursue entities that lauder drug trafficking funds in order to fully dismantle drug trafficking organizations’ ability to pollute the city of BR with drugs.”
THANG MINH TRAN, also known as Tommy, had previously pled guilty to conspiracy to launder monetary instruments and money laundering. TRAN was one of the operators of Quality Express, and he used the business to facilitate the money laundering. Former Quality Express employees THAHN NGUYEN, also known as Money, and SON NGUYEN, also known as Tattoo, previously pled guilty to distribution of MDMA, more commonly known as Ecstasy.
This investigation was conducted by the United States Drug Enforcement Agency and the Internal Revenue Service. The Baton Rouge Police Department, West Baton Rouge Sheriff’s Office, East Baton Rouge Sheriff’s Office, Ascension Parish Sheriff’s Office and Gonzales Police Department assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Jennifer M. Kleinpeter and J. Lane Ewing, Jr.
Justice Department Announces Nearly $2 Million in Grants to Strengthen Legal Services for the PoorRead the Press Release
Attorney General Eric Holder announced today $1.8 million in new resources to improve access to criminal legal services and strengthen indigent defense across the nation. In remarks during the “50 Years Later: The Legacy of Gideon v. Wainwright” event hosted by the Department of Justice, the Attorney General emphasized the department’s commitment to ensuring that all those accused of a crime, regardless of their wealth, education or class, have adequate legal representation and counsel. March 18th marks the 50th Anniversary of the U.S. Supreme Court’s landmark decision in Gideon v. Wainwright, where the court unanimously ruled that even those unable to afford counsel are entitled to counsel by court appointment. At today’s event, Attorney General Holder led a discussion on keeping and continuing the promise of Gideon, which included U.S. Supreme Court Justice Elena Kagan and former Vice President Walter Mondale, who, as Minnesota Attorney General in 1963, organized the submission of the amicus curiae brief to the U.S. Supreme Court with 21 state attorneys general in support of Clarence Gideon.
“Despite half a century of progress, far too many Americans still struggle to gain access to the legal assistance they need, and far too many children and adults enter our justice systems with little understanding of their rights,” said Attorney General Holder. “This is unacceptable and unworthy of a legal system that stands as an example for the world. I’m proud to say that today’s Justice Department is rising to the challenge to confront the obstacles facing indigent defense providers.”
Acting Associate Attorney General Tony West also delivered remarks about reclaiming Gideon’s petition at today’s ceremony.
“The constitutional right to counsel is a cornerstone of our criminal justice system,” said Acting Associate Attorney General Tony West. “It’s a principle that resides at the core of our concept of equal justice under the law, to which the Department of Justice remains deeply committed. Gideon reminds us that justice is as much a journey as it is a destination -- as much a process as it is an outcome -- and that we must give equal attention to both.”
At the event, Attorney General Holder discussed the importance of the Department’s Access to Justice Initiative, which he launched in 2010, to address the access to justice crisis in the criminal and civil justice system and help ensure that the justice system delivers outcomes that are fair to everyone, regardless of wealth and status. Strengthening the indigent defense system is among the Initiative’s priorities.“Fair treatment and justice are the right of everyone, no matter what their income,” said Deborah Leff, Acting Senior Counselor of the Access to Justice Initiative. “Clarence Earl Gideon won a victory in the U.S. Supreme Court for all Americans. It is now our responsibility to make sure that Gideon’s promise is fulfilled.”
The following Bureau of Justice Assistance (BJA) initiatives were a part of today’s announcement:
- $720,000 toward the upcoming grant solicitation, Answering Gideon’s Call: National Assistance to Improve the Effectiveness of Right to Counsel Services, which will enable an organization to work directly with states and counties to improve their ability to provide quality representation to indigent defendants and implement innovative strategies.
- $540,000 for two new jurisdictions, chosen by BJA, from last year’s Answering Gideon’s Call solicitation that will improve public defender and other indigent defense systems. The two new jurisdictions will join four jurisdictions, selected last year, to receive assistance with improving the capacity of indigent defense systems and increase the knowledge base about those systems.
- $140,000 toward opportunities through BJA’s National Training and Technical Assistance Center (NTTAC) that will provide technical assistance to help jurisdictions meet their constitutional obligation and provide adequate representation to indigent defendants. Additionally, these funds will support an initiative that will collect data to help determine ineffective components of criminal justice systems, and enable stakeholders, including district attorneys and judges, to join public defenders in the call for more manageable caseloads and to ensure adequate time is devoted to their clients.
The following Office of Juvenile Justice and Delinquency Prevention (OJJDP) solicitation was also part of today’s announcement:
- $400,000 for the Office of Justice Programs’ Office of Juvenile Justice and Delinquency Prevention competitive solicitation, Juvenile Indigent Defense National Clearinghouse. This award will support the improvement of juvenile indigent defense by providing a broad range of activities and services to improve the overall level of systemic advocacy, improving the quality of juvenile indigent defense representation and ensuring professional and ongoing technical support to the juvenile indigent defense bar.
For more information on the DOJ’s Access to Justice Initiative, which works to strengthen and improve legal services for disadvantaged groups, please visit: www.justice.gov/atj and www.justice.gov/atj/gideon/.
Related Materials:
Attorney General Eric Holder Speaks at the Justice Department's 50th Anniversary Celebration of the U.S. Supreme Court Decision in Gideon v. Wainwright
Acting Associate Attorney General Tony West Speaks at the Justice Department's 50th Anniversary Celebration of the U.S. Supreme Court Decision in Gideon v. WainwrightJury: Cahokia Man Guilty of Child Pornography OffensesRead the Press Release
A Cahokia man was found guilty on March 14, 2013, after a 3 day jury trial, for Production of Child Pornography (Count 1), Receipt of Child Pornography (Count 2), and Possession of Child Pornography (Count 3), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Charles E. Hicks, 24, Cahokia, IL, faces a term of not less than fifteen years but not more than thirty years in prison on Count 1; on Count 2, Hicks faces a term of not less than five but not more than twenty years in prison; and, on Count 3, Hicks faces a term of not more than ten years in prison. Additionally, each count of conviction carries a potential fine up to $250,000, and a term of supervised release of five (5) years to life. Upon his release from prison, Hicks must register as a sex offender as a condition of his supervised release. Sentencing is scheduled for June 28, 2013, in East St. Louis, Illinois. Hicks was ordered detained (held without bond) after the jury’s verdict.
On January 14, 2011, an undercover operation conducted by a member of the United States Secret Service's Southern Illinois Cyber Crime Unit identified a computer that was offering to share images and videos of child pornography. The agent downloaded three images of child pornography from this computer, and later obtained a subpoena to identify the subscriber information related to this computer. The subscriber information identified Hicks’ residence as the location of the computer from which the images of child pornography were downloaded. Agents were able to make contact with Hicks at his mother’s house in Belleville, Illinois. While speaking with him, agents learned that he had two computers stored at his mother’s residence, one of them a HP Pavilion desktop computer. A forensic preview at the scene revealed images of child pornography on the HP computer.
While Hicks initially denied downloading child pornography, he admitted to using search terms on LimeWire that he knew would result in child pornography files that he was able to download. Hicks eventually admitted that he had been downloading child pornography for about two to three years, but that he only did so in the hope that law enforcement officers would track him down so they could find the person making the images available.
A forensic examination performed on the HP Pavilion desktop computer revealed 159 images and 130 video files of child pornography on this computer, and that the forensic evidence was consistent with Hicks being the person who downloaded and possessed the images. It also revealed that on April 3, 2008, Hicks knowingly downloaded several image and video files from LimeWire that he knew contained child pornography.
The investigation further revealed that, on August 1, 2008, Hicks took two pornographic photographs of a minor knowing that he/she was 16 years old at the time. One of the photographs depicted Hicks engaged in sexual intercourse with the minor. The other photograph was of the lascivious display of the minor=s genitals. The evidence at trial established that Hicks had persuaded or coerced the minor to engage in sexual activity for the purposes of photographing it.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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".
The case was investigated by the Illinois State Police and United States Secret Service=s Southern Illinois Cyber Crime Unit. The case is assigned to Special Assistant United States Attorney Matthew Brooks and Assistant United States Attorney Angela Scott.
Jury Convicts Cedar Rapids Man on Child Pornographt ChargesRead the Press Release
A man who received and possessed child pornography was convicted by a jury today after a four-day trial in federal court in Cedar Rapids.
James Sumner, age 49, from Cedar Rapids, was convicted of one count of receipt of child pornography and three counts of possession of child pornography. The verdict was returned this morning following about six hours and thirty minutes of jury deliberations.
The evidence at trial showed that, between 2007 and 2008, Sumner used the Internet to download child pornography. The evidence also showed that, between 2007 and 2011, Sumner possessed child pornography on CDs at his residence in Cedar Rapids.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Sumner was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Sumner faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of fifty years’ imprisonment, $1,000,000 in fines, $400 in special assessments, and at least five years and up to life on supervised release following any imprisonment. He also will be required to register as a sex offender.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-92.
Hartford Man Charged with Murdering Potential Witness in Federal InvestigationRead the Press Release
March 15, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella today announced that a federal grand jury sitting in Hartford returned an indictment yesterday charging KERONN MILLER, also known as “Fresh,” 22, of Hartford, with the 2010 murder of Ian Francis of Hartford.
According to court documents and statements made in court, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis succumbed to his injuries on January 15, 2011.
The indictment alleges that MILLER and others, known and unknown to the grand jury, murdered Francis with the intent to prevent the attendance of appearance of a person at a federal proceeding and to prevent Francis and another person from communicating with a federal law enforcement officer or judge about the commission or possible commission of a federal crime, namely, narcotics trafficking.
The indictment further alleges that MILLER conspired with others, known and unknown to the grand jury, to commit this offense.
The charges of witness tampering murder and conspiracy to commit witness tampering murder carry a mandatory lifetime term of imprisonment or death, should the government seek the death penalty in this matter.
MILLER was arrested on a federal arrest warrant on November 7, 2012. He has been detained since his arrest.
This indictment followed a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Guilty Pleas in RICO eBay Fraud CaseRead the Press Release
>MOBILE, AL-- United States Attorney Kenyen R. Brown announced today that Jason Christopher Spellen, Raymond Spellen and Andrew Valentino Wilson, III, all pleaded guilty today to a Racketeer Influenced and Corrupt Organization (RICO) conspiracy, in violation of Title 18, United States Code, Section 1962(d), in federal district court. Trial for the remaining defendants named in the Superseding Indictment is currently set for June 2013.
Jason Christopher Spellen agreed to forfeit the items seized from his residence and storage unit and agreed to the entry of a $6,000,000.00 money judgment. Raymond Spellen and Andrew Valentino Wilson III also agreed to the entry of money judgments as well. The defendants face a maximum possible penalty of 20 years.
The RICO count alleges the Spellen Enterprise fraudulently purchased electronics from retail stores using counterfeited credit cards and drivers’ licenses provided them by other members of the conspiracy, and by the use of lines-of-credit from retail stores. It also alleges the Enterprise sold both fraudulently-procured electronics and stolen electronics on eBay and by other means. A total of ten individuals have previously entered guilty pleas in connection with the same eBay fraud investigation. Those individuals are all awaiting sentencing.
Kenyen Brown, United States Attorney, said: “The sophistication and magnitude of the fraud scheme engaged in in this case is startling. While technological advances may present new avenues for thieves to sell their stolen goods, law enforcement will continue to use every tool at its disposal to bring law breakers to justice.”
The case arose from an investigation by the United States Secret Service, who were assisted by the United States Postal Inspection Service and the Georgia Bureau of Investigation (GBI). The eBayProAct team also assisted the Secret Service. The case is being prosecuted by Assistant United States Attorney Deborah Griffin.
Grand Marais Man Sentenced in Child Pornography CaseRead the Press Release
MARQUETTE, MICHIGAN – Roger Harrison White, 70, of Grand Marais, Michigan, was sentenced to 63 months in federal prison for possession of child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered White to serve five years of supervised release following his release from prison, and to pay a $300 fine and a $100 special assessment. White will also be required to register as a sexual offender. White had pled guilty to the charge last October.
The investigation into White’s activities stemmed from his brief subscription to a child pornography website in 2008. The investigation ultimately led to a search of White’s computer and compact disks. That search revealed that White had downloaded and stored thousands of images, as well as videos, of child pornography via the internet over a period of several years.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
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Former Osage Man Sentenced to 14 Years on Child Pornography ChargesRead the Press Release
A man who received child pornography was sentenced March 14, 2013, to 14 years in federal prison.
Kevin Perrin, age 49, formerly of Osage, Iowa, received the sentence after a December 21, 2012, guilty plea to one count of receiving child pornography. In a plea agreement, Perrin admitted he knowingly used the Internet to receive and distribute child pornography.Perrin was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Perrin was sentenced to 168 months’ imprisonment. A special assessment of $100 was imposed, and Perrin must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Mitchell County Sheriff’s Office and the Clinton County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2030.
Former Department of Health and Human Services Employee<br /> Pleads Guilty in Washington to Wire Fraud Charge in Retention Bonus SchemeRead the Press Release
An employee of the Department of Health and Human Services’ Office of the Assistant Secretary for Preparedness and Response (HHS-ASPR) pleaded guilty today in Washington, D.C., to defrauding the United States by submitting fraudulent employment offers in order to claim retention bonuses totaling $138,875, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division .
Michael A. Balady , 62, of Springfield, Va., pleaded guilty before U.S. District Judge Rudolph Contreras in the District of Columbia to a criminal information charging him with one count of wire fraud.
According to court documents, Balady worked in the HHS-ASPR first as the director of acquisition management systems in ASPR’s Biological Advanced Research and Development Authority and later as the acting director of ASPR’s Office of Acquisitions, Management, Contracts and Grants. As part of his plea, Balady admitted that he conspired with an employee of a communications firm based in Alexandria, Va., to fabricate employment offers for a position with that firm in order to justify retention bonuses paid to him by HHS. Retention bonuses are monetary incentives paid by HHS to employees deemed essential to its mission who would be likely to leave in the absence of such a bonus.
From 2009 until 2012, Balady improperly received retention bonus payments totaling $94,940. In June 2012, HHS approved another retention bonus in the amount of $38,875, but that bonus was never paid to Balady. As part of the plea agreement, Balady resigned from HHS and has agreed to pay restitution to HHS in the amount of $94,940.
At sentencing, scheduled for June 12, 2013, Balady faces up to 20 years in prison and a fine of $250,000.
This case is being prosecuted by Trial Attorneys Richard B. Evans and Mark Angehr of the Criminal Division’s Public Integrity Section, and is being investigated by the HHS Office of the Inspector General.
Former Broward Resident Pleads Guilty to Passport Fraud and Aggravated Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Wendy Bashnan, Special Agent in Charge, U.S. Department of State, Diplomatic Security Service, Miami Field Office, announce that defendant Arcesio Rojas Valencia a/k/a Arcisio Rojas Valencia a/k/a Arcy Valencia, 50, formerly of Broward County, Florida, and most recently of Costa Mesa, California, has entered a guilty plea to charges of passport fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1542 and 1028A. Valencia appeared today in federal court in Fort Lauderdale before U.S. District Judge William P. Dimitrouleas.
Valencia admitted that he was born in Colombia, South America in December 1962, but in or around March 2001 in Florida, applied for and obtained for his own use and with his own photograph, a U.S. passport in the name of his U.S.-born son and birthdate of October 1965. To do so, Valencia submitted to the Department of State a copy of his son’s U.S. birth certificate, with the year of birth altered from 1985 to 1965. Valencia admitted that he knew that his statements in the passport application as to the name, date of birth, and place of birth were false. Valencia further admitted to willfully and knowingly using the passport on or about May 26, 2008, at Fort Lauderdale International Airport, and during and in relation thereto, to knowingly possessing and using, without lawful authority, the means of identification of his son, “A.V.”
On November 30, 2012, a federal grand jury in Miami charged Valencia, and an arrest warrant was issued for him. Diplomatic Security Service agents located Valencia in Southern California, where they arrested him in Los Angeles on December 5, 2012. Based in part on an active Broward County arrest warrant dating back to 1990, the U.S. Magistrate Judge in California ordered that Valencia be detained until trial. Valencia was returned to the Southern District of Florida in late December. At a hearing before U.S. Magistrate Judge Lurana Snow in early January 2013, Valencia stipulated to continued pre-trial detention due to the outstanding state arrest warrant.
Valencia faces a mandatory two-year term of imprisonment when he is sentenced on May 28, 2013.
Mr. Ferrer commended the efforts of the U.S. Department of State, Diplomatic Security Service, in locating the defendant. The case is being prosecuted by Assistant United States Attorney Robert T. Watson.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Ferriday Funeral Home Director Pleads Guilty to Receiving Child PornographyRead the Press Release
ALEXANDRIA, La. – U.S. Attorney Stephanie A. Finley announced today that funeral home director John Casey Young, 45, of Vidalia, pleaded guilty before U. S. District Judge Dee D. Drell to knowingly receiving child pornography on his computer.
According to court documents, the Federal Bureau of Investigations, during an investigation of a separate but related matter in September 2011, discovered that Young used his work computer to search for child pornography on the internet.
Young faces up to 20 years in prison, a $250,000 fine, and five years of supervised release. Sentencing has been set for June 10, 2013. The FBI and the Rapides Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Earl Campbell and John Luke Walker are prosecuting the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Investigators are available at all hours to answer hotline calls about child exploitation. The Alexandria FBI office number is (318) 443-5097.
Fake War Hero Sentenced for Making False Statements and Theft of Government ServicesRead the Press Release
Tampa, FL - U.S. District Judge Virginia M. Hernandez Covington sentenced Danny Crane (32, Riverview) yesterday to 12 months and one day in federal prison for theft of government funds. He is also ordered to serve a 3-year term of supervision, following his release from prison . Crane pleaded guilty on November 20, 2012, to fraudulently stealing government services and making false statements in connection with his application for U.S. Department of Veterans Affairs disability benefits.
According to court documents, Crane, an Army veteran, falsified his discharge paperwork in order to perpetrate a fraud on the United States Department of Veterans Affairs. Specifically, he fraudulently altered his DD Form 214 (“Certificate of Release or Discharge From Active Duty”) to reflect that he was an Army Sergeant and had been awarded a Distinguished Flying Cross, two Purple Hearts, an Air Medal, and various other war-related awards. In fact, Crane had not received any of those awards and had not been an Army Sergeant, but rather only served a little over three months. Crane submitted his altered discharge paperwork and made false representations to obtain VA medical treatment and attempted to obtain disability benefits to which he was not entitled for service connected injuries that he claimed to have suffered, but had not actually incurred. On June 12, 2012, in Pinellas County, Crane filed an application for VA disability benefits and submitted his altered DD Form 214 along with it. He alleged that he had service connected blindness in his right eye, twenty four plates in his face, six bullets in his back and broken ribs, when in reality, Crane had not suffered any injuries in service and had not served in any wars. He made these representations knowing that they were completely false. Crane had actually been discharged from the Army for "Failure to Adapt to Military Environment and Lack of Self Discipline” and he received an "Uncharacterized Discharge" that made him ineligible for veterans benefits.
To further his fraudulent disability claim, Crane went to the VA and obtained medical treatment and medication on multiple occasions, fraudulently claiming that he suffered from Post-Traumatic Stress Disorder. The loss to the United States based upon Crane’s various false statements was approximately $7,042.86.
This case was investigated by the US Department of Veterans Affairs, Office of the Inspector General, Criminal Investigations Division. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
East St. Louis Shooter Sentenced to Eight Years for Illegally Possessing A FirearmRead the Press Release
Cartez R. Beard, a 21-year old East St. Louis, Illinois, resident, was sentenced today in federal district court to 96 months (8 years) in federal prison for illegally possessing a firearm, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
According to court documents, on March 28, 2012, members of the WAVE Team came across a group of individuals, including Beard, standing on a street corner in East St. Louis. As law enforcement approached the group, Beard averted his eyes and turned his back away from the officers. One officer asked Beard if he had something on him that he should not, and Beard replied that he did. Beard told the officer he had a gun on his right hip. The officer recovered a Smith & Wesson, .40 caliber, semi-automatic pistol. The gun was loaded and a round was in the chamber. In late September 2012, Beard pled guilty to being a convicted felon who had knowingly possessed a firearm.
There is no parole in the federal prison system. In addition to the prison sentence, Beard will serve 3 years of supervised release and pay a $250 fine. United States Attorney Stephen R. Wigginton noted, “My office remains committed to prosecuting the district’s most violent criminals, especially those who illegally arm themselves with firearms and use them. As the Court recognized, Cartez Beard is an extremely dangerous and violent young man. A sentence this like one sends a strong message to the young people of East St. Louis -- Put down the guns or risk doing hard federal time.”
The WAVE Task Force investigated this case. The WAVE Task Force focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
Assistant United States Attorney Monica A. Stump prosecuted the offense.
Dubuque Woman Becomes Third Person Sent to Federal Prison for Methamphetamine Lab That Caused House FireRead the Press Release
A woman who assisted in the manufacture of methamphetamine that caused a fire in a home she was renting was sentenced on March 15, 2013, to just less than six years in federal prison.
Dawn Richey, 36, from Dubuque, Iowa, received the prison term after a December 7, 2012 guilty plea to aiding and abetting the attempted manufacture of methamphetamine near a school. Richey becomes the third person to serve federal prison time related to the incident.
Information from Richey’s guilty plea and sentencing revealed that Richey allowed Julie Uhrig, also of Dubuque, to manufacture methamphetamine in the basement of Richey’s residence on Windsor Avenue in Dubuque on February 15, 2012. Richey admitted that she assisted Uhrig in the manufacturing process. The attempted manufacture caused a fire to erupt in the residence. Richey’s minor child was present in the residence at the time. The residence was located within 1,000 feet of Audubon Elementary School.
Richey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Richey was sentenced to 70 months’ imprisonment. A special assessment of $100 was imposed and she was ordered to make $142,062.41 in restitution to the owner of the Windsor residence that she had been renting. She must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Richey is being held in the United States Marshal’s custody until she can be transported to a federal prison.
Two other individuals have also been sent to federal prison in connection with the February 15, 2012 incident. Uhrig pled guilty on September 11, 2012 to the attempted manufacture of methamphetamine near a school. She was sentenced on January 3, 2013 to 136 months’ imprisonment. Nickolas Clark, Richey’s fiancé at the time of the incident, pled guilty on September 24, 2012 to misprision of a felony as a result of false statements he intentionally made to investigators concerning the attempted manufacture. Clark was sentenced on January 16, 2013 to 33 months’ imprisonment.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Dubuque Drug Task Force, the Dubuque Police Department, and the Dubuque Fire Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number for Richey is CR 12-1021. Uhrig’s case file number is CR 12-1014, and Clark’s case file number is CR 12-1019.
District Man Sentenced to 78 ½ Years in Prison for Sexually Assaulting Three Women Who Thought He Was A Taxicab Driver-Defendant Trapped Victims in His Fake Cab, Drove Them to Secluded Areas-Read the Press Release
WASHINGTON – Emero Tornero, who targeted his victims by pretending to be a taxicab driver, was sentenced today to 78 ½ years in prison for a series of sexual assaults against women who got into his vehicle as passengers, U.S. Attorney Ronald C. Machen Jr. announced.
Tornero, 32, of Washington, D.C., was found guilty in January 2013 of 16 charges after a trial in the Superior Court of the District of Columbia. The charges included multiple counts of kidnapping and sexual abuse with aggravating circumstances, as well as related firearms offenses. He was sentenced by the Honorable Ronna L. Beck.
According to the government’s evidence, Tornero, pretending to be a taxicab driver, picked up women who hailed his “taxicab” in a series of incidents from 2005 to 2008. He trapped them inside the vehicle, which was rigged so the back doors and windows would not open from the inside. Then he took the victims to secluded locations, where he raped them.
The first attack took place at about 11:30 a.m. on May 10, 2005. The victim, 23, was with her three-year-old daughter, heading to a relative’s house, when she hailed the defendant’s taxicab at 9th and N Streets NW. Tornero abducted and took the victim to a secluded area. He threw the child to the front seat and sexually assaulted the victim in the back seat.
The second incident took place at approximately 5:30 a.m. on Jan. 7, 2006. The victim, 25, hailed a taxicab driven by the defendant near 8100 New Hampshire Avenue in Montgomery County, Md., so that she would not be late to work. Tornero instead took her to a deserted parking lot in the District of Columbia, where he raped her at gun and knife point.
The third attack occurred at about 2 a.m. on Nov. 29, 2008. The victim, 29, came into the District of Columbia to have a girls’ night out with her sister. The victim became extremely intoxicated inside a nightclub in the downtown area. After leaving the club, she was separated from her sister. Still very intoxicated, the victim got into Tornero’s taxicab alone, with the intention of going home. The victim passed out during the ride and the defendant took her to a secluded area, where he raped her while she was unconscious.
The cases were investigated by the Metropolitan Police Department (MPD) and City of Alexandria Police Department (ACPD), but remained open and unsolved until the second and third sexual assaults were linked through the Combined DNA Index System (CODIS), along with a robbery of a man in June 2008, who worked at a bar in downtown Washington and who had hailed the defendant’s taxicab to take him home to Arlington, Va. The linkage of these crimes led MPD to identify Tornero as the suspect. MPD detectives obtained a sample of the defendant’s DNA, and it matched the DNA left behind by the assailant in 2006 and 2008.
“Few defendants deserve to spend their lives in jail as much as Emero Tornero,” said U.S. Attorney Machen. “He is a predator who turned a taxicab into a cage on wheels that he used to lure, capture, and rape women. The District of Columbia is much safer without this serial rapist driving our streets looking for his next victim.”
In a separate case, Tornero was found guilty by a jury in 2011 of charges stemming from a series of violent attacks that took place in 2008 against Maryland and Virginia taxicab drivers who were working in the District of Columbia, including one victim who was 78 years old. He was sentenced to a prison term of 24 years and three months for those crimes. His sentence today runs consecutively to the sentence imposed in that case.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives from the MPD’s Sexual Assault Unit and officers from the Third, Fourth and Fifth Districts and Forensic Science Division and the work of officers and detectives from ACPD. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Melissa Milam; Paralegal Specialists Troy Griffith, Jason Manuel and Kristy Penny; Victim Witness Specialists David Foster, Katina Adams-Washington and LaJune Thames, and Litigation Technology Specialists Jeanie Lattimore-Brown, Leif Hickling and Josh Ellen. Lastly, he thanked Assistant U.S. Attorney David Last, who investigated the case, and Assistant U.S. Attorneys Sharon Donovan and Lindsay Suttenberg, who co-tried the case.
13-098District Man Sentenced to 25 Years in Prison in Killing of His Then-Girlfriend’s 20-Month-Old Child- Defendant Was Asked to Babysit for the Child -Read the Press Release
WASHINGTON - Jonathan Fullard, 29, of Washington, D.C., was sentenced today to 25 years in prison after earlier pleading guilty to second-degree murder in the killing of his former girlfriend’s 20-month-old son, U.S. Attorney Ronald C. Machen Jr. announced.
Fullard, who pled guilty in October 2012 in the Superior Court of the District of Columbia, was sentenced today by the Honorable William M. Jackson. Upon completion of his prison term, Fullard will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to a proffer of facts, signed by the defendant as well as the government, on March 4, 2012, Fullard was babysitting his then-girlfriend’s 20-month-old son, Keyontae Osbia Moore, at a residence in the 3000 block of 30th Street SE while she went to work. At about 3 a.m. on March 5, 2012, Fullard called his then-girlfriend and stated that the toddler had stopped breathing. Keyontae was initially taken to United Medical Center, and later transferred to Children’s National Medical Center, where physicians found trauma to his head, and body. The child died on March 5, 2012 from multiple blunt force trauma.
The District of Columbia medical examiner’s office ruled the case a homicide. The evidence indicates that Fullard was the only person caring for the child at the time of his injuries. There also was evidence that the child had been sexually assaulted.
Initially, when questioned by the Metropolitan Police Department (MPD), the defendant provided a false name of “Jonathan Mason” and was released. After the child’s death, Fullard’s true name was discovered and he was subsequently arrested on March 12, 2012.
In announcing the sentence, U.S. Attorney Machen praised the work of the MPD detectives and officers who investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney and Victim Advocates Tamara Ince and Marcey Rinker. Finally, he praised the work of Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
13-099Denison, Texas, Man Sentenced to 46 Months in Federal Prison for Transporting More Than 100 Kilograms of MarijuanaRead the Press Release
LUBBOCK — Mark Dean Garrison, 48, of Denison, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 46 months in federal prison, following his guilty plea in December 2012 to one count of possession with intent to distribute 100 kilograms or more of marijuana, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in late October 2012, a trooper with the Texas Department of Public Safety stopped a pickup truck, owned and driven by Garrison, for a traffic violation on Interstate 20 near Abilene, Texas. Co-defendant Brian Julian Gallardo, 22 of Sherman,, Texas, was the only passenger in the truck, which was carrying several spools of barbed wire. After Garrison consented to a search of the truck, one of the troopers opened the inside of one of the spools of wire and detected the odor of marijuana. Further investigation revealed that the spools of wire contained 229 bricks of marijuana that weighed approximately 112 kilograms. Both Garrison and Gallardo were arrested and have been in custody since that time.
Gallardo has pleaded guilty to the same offense and is scheduled to be sentenced on March 29, 2013. He faces a statutory penalty of not less than five or more than 40 years in federal prison and a $5 million fine.
The case was investigated by the Texas Department of Public Service and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.
Council Bluffs Woman Sentenced on Methamphetamine ChargesRead the Press Release
COUNCIL BLUFFS, IA – On March 15, 2013, Lisa Marie Barrett, age 46, of Council Bluffs, Iowa, was sentenced in U.S. District Court in Council Bluffs, on the charge of distribution of 5 grams or more of methamphetamine, announced U.S. Attorney Nicholas A. Klinefeldt. Senior U.S. District Court Judge Robert W. Pratt sentenced Barrett to 60 months in prison and 5 years of supervised release following her imprisonment. The Judge also ordered Barrett to forfeit $1,061 and various drug-related paraphernalia seized at the time of Barrett’s arrest on these charges. Barrett remains in the custody of the U.S. Marshal pending designation of the Federal Bureau of Prisons facility to serve her federal sentence.
Barrett was sentenced upon her plea of guilty to distribution of 6.8 grams of 95% pure methamphetamine. The charge arose from a SouthWest Iowa Narcotics Task Force investigation in which Barrett made two sales of methamphetamine to an undercover operative.
This case was part of a larger investigation conducted by the SouthWest Iowa Narcotics Task Force, in which David Fisher was sentenced to 117 months imprisonment, plus 5 years supervised release; Nicholas Franks was sentenced to 133 months imprisonment, plus 5 years supervised release; and Steven Etherington was sentenced to 150 months imprisonment, plus 5 years supervised release. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Convicted Felon Operating A Grow House and Illegally Possessing Firearms in San Leandro Sentenced to 78 Months in PrisonRead the Press Release
OAKLAND, Calif. – This week, Vincent Nguyen was sentenced to 78 months in prison for conspiring to possess with the intent to distribute marijuana, possessing with the intent to distribute marijuana, and being a felon in possession of firearms, United States Attorney Melinda Haag announced.
Nguyen was arrested on Jan. 10, 2012, after complaints from citizens led to an investigation by the San Leandro Police Department. Nguyen pleaded guilty on Oct. 31, 2012.
In his plea agreement, Nguyen admitted that from August 2011 through January 2012, he, along with others, operated a marijuana grow house at 3471 Carrillo Drive in San Leandro, Calif. He was found in possession of 82 mature marijuana plants, almost one kilogram of marijuana packaged for sale, a Norinco US 7.62 caliber rifle with a high capacity magazine, a Romak-Romarm 7.62 caliber assault rifle that had been stolen, and a .45 caliber Smith & Wesson semiautomatic pistol. In addition, about $10,000 in cash, a 9mm Bryco Arms semiautomatic pistol, and more than 100 rounds of various caliber ammunition were found at 3471 Carrillo Drive and seized by law enforcement.
Nguyen, 21, of Oakland, had previously been convicted in 2010 for felony possession of marijuana for sale.
The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton, who also sentenced Nguyen to 3 years of supervised release. Nguyen was indicted, with others, by a federal grand jury on June 7, 2012. Co-defendants Van Do Nguyen and Loc Huynh were sentenced by Judge Hamilton on January 23, 2013, to 72 months and 87 months in prison, respectively.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is also the result of an investigation by the Federal Bureau of Investigation.
Congressional Candidate Pleads Guilty to Violation of the Federal Election Campaign ActRead the Press Release
Former Congressional candidate Justin Lamar Sternad pleaded guilty today in Miami to violating the Federal Election Campaign Act during his 2012 campaign, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer and Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office.
Sternad, 35, of Miami, pleaded guilty before U.S. District Court Judge Robin S. Rosenbaum in the Southern District of Florida. Sternad pleaded guilty to all counts of a criminal information that charged him with one count of conspiracy to make false statements to the Federal Election Commission (FEC), one count of making false statements to the FEC and one count of accepting illegal campaign contributions.
Sternad was a candidate in the 2012 Democratic Party primary election for Florida’s 26th Congressional District. According to court documents, Sternad engaged in a conspiracy to accept illegal campaign contributions and file false statements with the FEC in order to conceal the true source, amount and nature of the funds used by his campaign.
Sternad admitted that his campaign accepted cash and checks in excess of Federal Election Campaign Act limits and that he filed statements that intentionally misled the FEC about his campaign’s activities. During the campaign, illegal cash contributions from co-conspirators were used to pay for a rental car and the design, printing and distribution of campaign flyers.
According to court documents, Sternad reported to the FEC that he made loans to his campaign in the amount of $63,801, when he knew that he had actually loaned fewer than $300. In total, Sternad accepted over $70,000 in misreported campaign contributions.
At sentencing, scheduled for May 31, 2013, Sternad faces a maximum penalty of five years in prison and a fine up to $250,000 on each count.
The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill of the U.S. Attorney’s Office for the Southern District of Florida and Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity Section.
Congressional Candidate Pleads Guilty to Violation of the Federal Election Campaign ActRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mythili Raman, Acting Assistant United States Attorney for the Criminal Division of the Department of Justice, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Justin Lamar Sternad, 35, pled guilty before U.S. District Court Judge Robin S. Rosenbaum to violating the Federal Election Campaign Act (Election Act) in connection with the 2012 Democratic Party primary election for Florida’s 26th Congressional District.
Sternad, 35, of Miami, pleaded guilty before U.S. District Court Judge Robin S. Rosenbaum in the Southern District of Florida. Sternad pleaded guilty to all counts of a criminal information that charged him with one count of conspiracy to make false statements to the Federal Election Commission (FEC), one count of making false statements to the FEC and one count of accepting illegal campaign contributions.
Sternad was a candidate in the 2012 Democratic Party primary election for Florida’s 26th Congressional District. According to court documents, Sternad engaged in a conspiracy to accept illegal campaign contributions and file false statements with the FEC in order to conceal the true source, amount and nature of the funds used by his campaign.
Sternad admitted that his campaign accepted cash and checks in excess of Federal Election Campaign Act limits, and that he filed statements that intentionally misled the FEC about his campaign’s activities. During the campaign, illegal cash contributions from co-conspirators were used to pay for a rental car and the design, printing and distribution of campaign flyers.
According to court documents, Sternad reported to the FEC that he made loans to his campaign in the amount of $63,801, when he knew that he had actually loaned fewer than $300. In total, Sternad accepted over $70,000 in misreported campaign contributions.
Judge Rosenbaum set sentencing for May 31, 2013 at 10:00 a.m. At sentencing, Sternad faces a maximum penalty of five years in prison and a fine up to $250,000 on each count.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation. The case is being prosecuted by Senior Litigation Counsel Thomas J. Mulvihill and Richard C. Pilger, Director of the Election Crimes Branch of the Public Integrity Section of the Criminal Division of the U.S. Department of Justice.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Colorado Man Sentenced to Federal Prison for Iowa Drug ConspiracyRead the Press Release
A Colorado man who conspired to distribute methamphetamine in Iowa was sentenced March 15, 2013, to more than seven years in federal prison.
Javier Torres, 30, from Denver, Colorado, received the prison term after an October 24, 2012, jury verdict finding him guilty of conspiracy to distribute methamphetamine. Torres was previously convicted of possession with intent to distribute a controlled substance - cocaine, a felony, in the Colorado District Court for Adams County, on November 4, 2011.
Evidence at trial showed that Torres was involved in a conspiracy to distribute at least 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine from 2009 through about August 2010. Torres transported methamphetamine from sources in Colorado to individuals in Iowa who would then distribute the methamphetamine to a number of different people in Iowa.Torres was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Torres was sentenced to 85 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system.
Torres 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 Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, North Central Iowa Drug Task Force, Iowa Division of Criminal Investigation, Fort Dodge Police Department, Mason City Police Department, Webster County Sheriff’s Office, Cerro Gordo County Sheriff’s Office, Franklin County Sheriff’s Office, Wright County Sheriff’s Office, and Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; United States Immigration and Customs Enforcement; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 11-3014.
Cass Lake Felon Indicted for Possessing A .357 RevolverRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges a 25-year-old Cass Lake felon with possessing a .357-caliber revolver. The indictment, which was filed on March 12, 2013, charges Anthony Duane Howard with one count of being a felon in possession of a firearm. The indictment was unsealed following Howard’s initial appearance in federal court.
The indictment alleges that on December 1, 2012, Howard possessed the revolver. Because he is a felon, Howard is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include first-degree assault (2003) and fourth-degree assault (2011).
If convicted, Howard faces a potential maximum penalty of ten years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Minneapolis Police Department, and the Violent Impact Team for the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Camden County, N.J., Man Sentenced to 163 Months in Prison for Robbing Three BanksRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man today was sentenced to 163 months in prison for robbing three banks in Pennsauken, N.J., in November 2011 while on federal supervised release for bank robbery, U.S. Attorney Paul J. Fishman announced.
Richard B. Jones, 38, of Pennsauken, previously pleaded guilty to an Information charging him with one count of bank robbery in connection with his robbing a Sovereign Bank on Nov. 28, 2011. He also admitted robbing the same Sovereign Bank and the PNC Bank in Pennsauken, N.J., that same month.
Jones also previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to committing the three bank robberies while on federal supervised release for a bank robbery in Rhode Island in 2006.
Judge Bumb sentenced Jones today in Camden federal court. On the robbery count, Jones was sentenced to 151 months in prison and for violating his supervised release, he was sentenced to 24 months in prison, 12 of which are to be served consecutively.According to documents filed in this case and statements made in court:
In November 2011, Jones entered a PNC Bank in Pennsauken, approached a bank teller and presented a note that said: “Got a gun, no dye packs, all 20's, 50's, 100's.” He received money from the teller and fled. He also robbed the Sovereign Bank twice that month.
In addition to the prison term, Judge Bumb sentenced Jones to three years of supervised release and ordered him to pay $10,000 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark; the Pennsauken Police Department, and the Camden County Prosecutor’s Office for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Christopher H. O’Malley Esq., Assistant Federal Public Defender, CamdenCalifornia Cocaine Dealer Sentenced to 24 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Fontana, Calif., has been sentenced in federal court to 292 months imprisonment and five years supervised release on his conviction of federal drug and money laundering laws, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Dwayne Thompson, a/k/a D, a/k/a White Chocolate, 47.
According to information presented to the court, from 2001 and continuing until July 2007, Thompson was responsible for distributing more than 500 kilograms of cocaine in Detroit, Michigan; Indianapolis, Indiana; Atlanta, Georgia; and in the Pittsburgh region. The organization was referred to locally as the "Cali Connect" because a number of its member came from California. Thompson used his drug proceeds to purchase high-end luxury automobiles; a failed night club venture; and a speed boat with an estimated value of $225,000. Thompson's boat and cars have been forfeited to the government.
Assistant United States Attorney Michael L. Ivory prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Pasadena Police Department and the Texas State Highway Patrol for the investigation leading to the successful prosecution of Thompson.
Beaver County Men Arrested for Analogue Drug MethyloneRead the Press Release
PITTSBURGH, Pa. - Two residents of Beaver County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
The four-count indictment, returned on March 12 and unsealed today, named Michael Anthony Stokes, 26, of New Brighton, Pennsylvania, and Ryan John Konarski, 22, of Aliquippa, Pennsylvania, as defendants.
According to the indictment presented to the court, from November 2010 to March 12, 2011, Stokes and Konarski conspired with others to possess with intent to distribute the controlled substance analogue 3,4 methylenedioxymethcathinone, also commonly known as methylone,"bath salts" or "Molly". The indictment alleges that the pair maintained a drug involved premises for purposes of distributing and using the analogue, while Stokes imported "Molly" into the United States.
Since drug suppliers have tried in the past to avoid prosecution by making minor changes in the chemical structures of controlled substances, Congress created the Controlled Substance Analogue Enforcement Act of 1986. This Act makes these "designer" drugs illegal if they are intended for human consumption and resemble a controlled substance in molecular structure as well as actual or purported physiological effects.
The law provides for a maximum total sentence of 60 years in prison and a fine of $2,500,000 for Konarski, and 80 years in prison and a fine of $3,500,000 for Stokes. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the New Brighton Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bay Village Man Charged with Mail Fraud and Tax EvasionRead the Press Release
A Bay Village man was charged via criminal information with mail fraud and tax evasion, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Frederick C. Bryant, age 45, is accused of embezzling $505,832 from a victim that he guaranteed a 5 percent rate of return.
Bryant converted the money for his own personal use. Bryant also failed to report the funds to the IRS, according to the information.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, his role in the offense, and the characteristics of the violation. In all cases the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
An information is only a charge and is not evidence of guilt. The Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ashburn Man Sentenced to 84 Months for Ponzi Scheme Involving Purchase of Beacon Hill Golf CourseRead the Press Release
ALEXANDRIA, Va. – Brett A. Amendola, 38, of Ashburn, Va., was sentenced to 84 months in prison today for carrying out a $5 million Ponzi scheme involving his purported purchase of a golf course in Loudoun County, Va. The scheme resulted in losses of at least $2.8 million to more than a dozen victims who had invested with Amendola.
Amendola was immediately taken into the custody of the U.S. Marshals Service at sentencing, where he will remain until transferred to the Bureau of Prisons to serve his prison sentence.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
Amendola pleaded guilty on April 4, 2012, to wire fraud. According to court records, during 2010 and 2011, Amendola persuaded various investors to provide him with short-term funding that would be held in escrow to fulfill a requirement by his lender to purchase the Beacon Hill Golf Course in Loudoun County. He promised that the money would be returned to the investors – with interest – in a matter of days. In reality, Amendola diverted the investors’ money to his own use, including funding his and family members’ trading accounts, making payments to investors in this and other schemes, and paying for personal expenses, including gambling.To carry out his fraud, Amendola posed as the attorney representing the escrow account both over the phone and through various email messages, leading investors to believe that they were wiring funds to financial accounts controlled by the escrow attorney, when in reality the financial accounts were controlled by Amendola and quickly looted for his personal use. In sentencing Amendola, the Court found that the fraud was sophisticated and that Amendola abused a position of trust when he impersonated the lawyer.
In a related case, Jerry J. Mckerac, 61, of Las Vegas, Nev., and Fond du Lac, Wis., was charged yesterday in an indictment with conspiracy to commit wire fraud and aggravated identify theft for his involvement in the scheme, which the indictment alleges included similarly impersonating the escrow attorney as well as Amendola’s father while dealing with the victims.
This case was investigated by the FBI’s Washington Field Office and the Loudoun County Sheriff’s Office. Assistant United States Attorneys James P. Gillis and G. Zachary Terwilliger are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Arlington Man Pleads Guilty to Conspiracy to Fabricate False Grain Elevator Scale Tickets, Bankruptcy Fraud, and Interference with Internal Revenue LawsRead the Press Release
A North-Iowa man pled guilty yesterday in federal court in Cedar Rapids to two fraudulent schemes, one involving the fabrication of fictitious grain elevator tickets, and another involving lying to the bankruptcy court about proceeds from the sale of a combine. He also admitted impeding the Internal Revenue laws.
Michael Recker, age 47, from Arlington, Iowa, was convicted of one count of conspiring to fabricate false grain elevator scale tickets, one count of bankruptcy fraud, and one count of interfering with Internal Revenue laws.
At the plea hearing and in a written plea agreement, Recker admitted that in 2008 and 2009, he bribed an employee of a Northern Iowa grain elevator to create false and fictitious grain elevator scale tickets. During the conspiracy, the employee fabricated eight false grain elevator tickets, accepting thousands of dollars in bribes from Recker in exchange. The grain elevator paid Recker more than $20,000 based on the false grain elevator tickets. Recker also admitted that he had sold a combine at auction for approximately $50,000.00 prior to filing for bankruptcy protection in the United States Bankruptcy Court for the Northern District of Iowa. In bankruptcy documents, Recker did not disclose the proceeds still owed to him by the auction company and when questioned about the proceeds, Recker lied to the court, claiming he never owned the combine or had an interest in its proceeds. Finally, Recker admitted that he tried to obstruct or impede the administration of the Internal Revenue laws by trying to hide and conceal his taxable income by, among other ways, having the checks from the grain elevator fraud made payable to his then-girlfriend and passing them, and the bribes, through a bank account established in her name.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Recker remains free on bond pending sentencing. Recker faces a possible maximum sentence of thirteen years’ imprisonment, a $750,000 fine, $300 in special assessments, and seven years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the United States Department of Agriculture Office of Inspector General and the Internal Revenue Service Criminal Investigation Division.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-cr-2027-LRR.
Algona, Washington Man Sentenced to 18 Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
An Algona, Washington man with a history of molesting young boys, was sentenced in U.S. District Court in Seattle to 18 years in prison and lifetime supervised release for distribution and possession of child pornography. MICHAEL ALLEN DREYER, 59, was convicted of distribution of child pornography and possession of child pornography following a four day jury trial in September 2012. DREYER has a May 2000 conviction for possession of child pornography and therefore faced a mandatory minimum 15 years in prison. At sentencing Chief U.S. District Judge Marsha J. Pechman said, “People who create the market for child pornography are as guilty as those who took the photos, posed the children, and engaged in their physical abuse.”
According to records filed in the case, DREYER most recently came to the attention of law enforcement during an investigation of child pornography distribution utilizing peer-to-peer file sharing software. In April 2011, a federal investigator operating online was able to observe the files DREYER was sharing over the peer-to-peer network and saw images and videos of child pornography. Investigators traced the internet protocol address to DREYER’s Algona, Washington home. In July 2011, law enforcement served a search warrant at DREYER’s home, seizing a computer and other media storage devices. DREYER has been in federal custody since April 2012. DREYER was indicted by the grand jury in May 2012. The forensic examination of his computer revealed that it contained more than 20 video files of child pornography and over 1,300 image files of child pornography.
In May 2000, DREYER was sentenced to 27 months in prison for possession of child pornography. DREYER had attempted to order child pornography from an undercover website operated by law enforcement. When his home was searched, additional child pornography was found. DREYER also admitted to molesting two young relatives in the late 1970s and early 1980s, and told agents he used child pornography as a release to satisfy his urges to molest children.
In asking for a 25 year sentence, prosecutors wrote to the court that “The distribution and possession of child pornography feeds an industry that causes untold psychological, emotional, and mental trauma to the child victims. As technology develops, and as use of the Internet to trade images of child pornography becomes increasingly widespread, more and more permanent records of child abuse are created and disseminated around the world, allowing for the continued victimization of the child depicted…. Defendant’s actions contributed to the demand for these horrific images of abuse. Every participant in the chain--producer, distributor, consumer--sustains the market for these images, and each victim, whether identified or not, suffers not only when an image of him or her is created, but each and every time an image of him or her is viewed.”
The case was investigated by ICE’s Homeland Security Investigations (HSI), with assistance from the Naval Criminal Investigative Service (NCIS).
The case was prosecuted by Assistant United States Attorneys Marci Ellsworth and Justin Arnold.
Press contact for the U.S. Attorney’s Office is Emily Langlie at (206) 553-4110 or [email protected].
14 March 2013
Wide Ranging Drug Trafficking Conspiracy DismantledRead the Press Release
A drug trafficking organization that distributed large amounts of methamphetamine and heroin from Mexico to Washington State was dismantled today with more than a dozen arrests, announced U.S. Attorney Jenny A. Durkan. The criminal organization spanned a large area of the state with operations ranging from Everett to Vancouver, Washington and from Aberdeen on the coast to the Tri-Cities in Eastern Washington. Over the course of the investigation law enforcement has seized more than 56 pounds of heroin and more than eight pounds of highly pure methamphetamine.
“This case exemplifies the drug trafficking we see in Western Washington from Mexico based crime groups. These criminal groups are bringing in heroin, meth and cocaine and poisoning our communities,” said U.S. Attorney Jenny A. Durkan. “We must stop the flow of these drugs, while also working to reduce demand. Too many families and communities are being irrevocably damaged by addiction.”
According to records filed in the case, using court authorized wire taps, law enforcement intercepted hundreds if not thousands of drug trafficking related phone calls and text messages between September 2012 and the present. The investigation began in October 2011, and identified members of the criminal organization smuggling drugs from Mexico across the border into Texas and California, and then north to Western Washington. In two notable seizures earlier this year, law enforcement found two kilograms of suspected crystal methamphetamine that was hidden in paint cans in the back of a truck stopped on Interstate 84 in Oregon. A second stop in Aberdeen, Washington resulted in the seizure of more than 53 pounds of heroin. During a search of the vehicle, investigators located an access panel in the rear cargo area of the vehicle that enabled investigators to access the gas tank. Inside of the gas tank, investigators located and removed the suspected heroin. Each package of heroin was covered in mustard and red pepper, which is one method used by drug traffickers in an attempt to mask the smell of the heroin from drug detection canines.
The grand jury has indicted these defendants:
Antonio Zuniga-Barajas, 29 of Kennewick, Washington
Javier Zuniga-Ochoa, 50, Kennewick, Washington
Hector M. Hernandez-Hernandez, 36, of Vancouver, Washington
Enrique Orozco-Rojas, 37, Kennewick, Washington
Pedro Barragan-Valdovinos, 39, of Pasco, Washington
Braulio Zuniga-Cervantes, 30, of Kent, Washington
Jose Manuel Pardo-Martinez, 32, of Aberdeen, Washington
Esgardo Daniel Martinez-Pizano, 18, of Aberdeen, Washington
Victor Carmona-Tapia, 28, of Everett, Washington
Omar Valencia-Barajas, 24, of Everett, Washington
Jose Trinidad Cuevas-Mendoza, 32, of Monroe, Washington
Alberto Bernal-Rodriguez, 43, of Vancouver, Washington
Omar Huerta-Garcia, 29, of Pasco, Washington“Drug trafficking organizations have one priority: financial wealth through addiction,” said DEA Special Agent in Charge Matthew G. Barnes. “Seizures of heroin are on the rise in the Pacific Northwest. This investigation alone prevented 4 million user doses of heroin from hitting our streets, ruining lives and giving drug dealers over $1 million dollars in profits. The DEA and our law enforcement partners will continue to have an unwavering focus on keeping our communities safe.”
Today 14 different locations and multiple vehicles were searched state wide. One additional person was arrested by criminal complaint. Law enforcement seized two pounds of crystal methamphetamine, heroin, two weapons, six vehicles and over $20,000 in cash.
The defendants appeared in U.S. District Court in Seattle at 2:30 today.
If convicted the defendants face a mandatory minimum ten years in prison because of the quantity of drugs involved. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
This investigation was led by the Drug Enforcement Administration with significant investigative contributions from the following agencies: ICE - Homeland Security Investigations, South Snohomish County Narcotics Task Force, King County Sheriff’s Office, Grays Harbor Drug Task Force, Seattle Police Department, Port of Seattle, Tri-Cities Metro Drug Task Force, and Washington State Patrol.The case is being prosecuted by Assistant United States Attorneys Jeffrey Backhus and Sarah Vogel.
For images associated with the drug seizures please contact Jodie Underwood, DEA Public Affairs Officer at 206-553-1162 or [email protected]
Press contact for the U.S. Attorney’s Office on March 14, 2013 is Thomas Bates at (206) 553-7970 or [email protected]. After March 14, 2013, press contact is [email protected].Westfield Man Charged with Sexual Exploitation of A ChildRead the Press Release
BOSTON – A Westfield man was charged today with the sexually exploitation of a child.
Gardner Whitney, 61, was indicted on seven counts of sexual exploitation of a child and possession of child pornography.
The indictment alleges that between June 2010 and December 2011, Whitney used a minor to produce child pornography and that he possessed child pornography.
The maximum sentence under the statute is 30 years in prison on each count of sexual exploitation of a child and 10 years on the charge of possession of child pornography, followed by a lifetime of supervised release and a $2 million fine.
United States Attorney Carmen M. Ortiz; Mark G. Mastroianni, Hampden County District Attorney; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief John Camerota of the Westfield Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington, Pa., Man Sentenced to Probation for Fraudulently Obtaining Social Security BenefitsRead the Press Release
PITTSBURGH - A resident of Washington, Pa., has been sentenced in federal court to five years probation with six months home detention with electronic monitoring, and was ordered to pay $100,821.64 in restitution on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Bruce K. Gaito, 54.
According to information presented to the court, Bruce K. Gaito fraudulently obtained a Social Security number in the name of “David Gaito” and used the number to obtain Supplemental Security Income Benefits from the Social Security Administration.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Social Security Administration, Office of Inspector General for the investigation leading to the successful prosecution of Gaito.
Violence Against Women Advocacy Group Names U.S. Attorney Brendan Johnson Prosecutor of the YearRead the Press Release
The South Dakota Domestic Violence Coordinating Committee (SDVCC) has chosen Brendan Johnson as their Prosecutor of the Year. Brendan Johnson began his career prosecuting violence against women cases as a state prosecutor and has been the U.S. Attorney for the District of South Dakota since 2009. During this time the U.S. Attorney’s office has made human trafficking, domestic abuse and sexual violence a priority, and prosecution rates have increased.
“Brendan has demonstrated a heartfelt commitment to protecting women and holding defendants accountable,” said Brenda Hill, Native Co-Director of SD Coalition Ending Domestic & Sexual Violence, praised the selection. “He truly comprehends the entire continuum of violence against women and strongly supports our efforts to reduce domestic and sexual violence. Brendan Johnson is an excellent role model and provides remarkable leadership.”
The SDDVCC is an organization led by the South Dakota Coalition Ending Domestic & Sexual Violence and the South Dakota Network Against Family Violence and Sexual Assault. The organization includes law enforcement leaders from the state, federal, and tribal levels and is designed to protect and represent the interests of survivors of domestic and sexual assault.
Krista Heeren-Graber, Director of the SD Network Against Family Violence and Sexual Assault, also applauded the selection. “Brendan has an impressive track record in the fight against domestic violence. His grit and determination to bring these perpetrators to justice has been a turning point in the lives of several victims. Quite simply, he has given them hope,” said Heeren-Graber.
“I am extremely honored to receive this award, but want to recognize the work of my entire office and our law enforcement partners. Without them, none of this is possible,” said Johnson. “I’ve appreciated the opportunity to work with violence against women advocates and am proud of our shared accomplishments. Progress has been made, but there is more work to be done.”
Johnson is the second recipient of the committee’s award. Last year’s recipient was Michael Moore, Beadle County State’s Attorney.
U.S. and City of New Orleans to Hold Public Meetings<br /> to Select Consent Decree Monitor <br /> for the New Orleans Police DepartmentRead the Press Release
The United States and the city of New Orleans announced today that public meetings would be held regarding a consent decree court monitor for the New Orleans Police Department (NOPD). The United States and the city of New Orleans on Sept. 6, 2012 issued a request for proposals to serve as the consent decree court monitor for NOPD. In response, the United States and the city of New Orleans received 12 proposals. The United States and the city of New Orleans formed an evaluation committee to evaluate those proposals and select a consent decree court monitor. The committee met publicly on March 7, 2013 and selected five candidates to be interviewed for the position. Those five candidates are:
1. The Bromwich Group
2. Elite Performance Assessment Consultants LLC
3. Hillard Heintze
4. OIR Group
5. Sheppard Mullin
The proposals submitted by each of these candidates can be found at www.justice.gov/crt/about/spl/ and at http://new.nola.gov/purchasing/consent-decree/ . On April 2 and April 3, 2013 beginning at 8 a.m. CST, the Evaluation Committee will hold public meetings in which each of these candidates will be interviewed. The meetings will be held in the Superdome, in the Bienville Club Lounge. The Bienville Club Lounge can be accessed through the Gate B plaza level entrance in Garage 1.
There also will be opportunities for public comment at the meetings on April 2 and 3. At those meetings, each monitor candidate will be allowed to make a presentation of up to 30 minutes. Following each presentation, the public will be given up to 30 minutes in which to comment. Following the public comments, the evaluation committee may spend up to one hour asking questions of the monitor candidates.
If you wish to provide written comments about the process or the prospective monitor, you are encouraged to submit those comments by email to New Orleans City Attorney Richard Cortizas at [email protected] . Please note “Re: NOPD Consent Decree Court Monitor” in the e-mail subject line. Comments also may be mailed or hand-delivered to the following address:
City of New Orleans Attorney
City of New Orleans
Re: NOPD Consent Decree Court Monitor
1300 Perdido St.
New Orleans 70112
The Department of Justice and the city of New Orleans will review any comments received by March 29, 2013, prior to the presentations. All written comments must be provided by 12:00 p.m. CDT on April 8, 2013. The city of New Orleans will file copies of all public comments received in the electronic record of United States of America v. City of New Orleans, Civil Action No. 12-1924 (E.D. La.).
Two Men Indicted by Federal Grand Jury on Prescription Drug and Firearm Possession ChargesRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that two men were indicted on March 13 by a federal grand jury sitting in Beckley in connection with illegal prescription drug distribution and firearm possession offenses. According to a two-count indictment, Jody Lowell Sowder, 36 of Scarbro, Fayette County, W.Va., allegedly distributed oxycodone on September 25, 2012 near Oak Hill, W.Va. The indictment also alleges that also on September 25, 2012, Sowder possessed a semi-automatic pistol during and in relation to a drug trafficking crime.
According to a separate six-count indictment filed yesterday, Bobby White, 66, of Gordon, W.Va., allegedly sold a quantity of alprazolam, also known as “Xanax,” on July 5, 2010 near Danville, Boone County, W.Va. The indictment also alleges that White sold quantities of hydrocodone and oxycodone in August 2012 near Boone Co., W.Va. The indictment further alleges that White possessed a .32 caliber pistol during and in relation to a drug trafficking crime on February 12, 2013.
Sowder faces up to 20 years in prison and a $1 million fine on Count 1; and up to five years to life in prison on Count 2 if convicted.
White faces up to life in prison, a $1 million fine on each drug charge and a $250,000 fine on the firearm charge if convicted.
The investigations were conducted by the Oak Hill Police Department, the U.S. 119 Drug Task Force and the West Virginia State Police. Assistant United States Attorneys Joshua Hanks and Steven Loew are in charge of the prosecutions.
The matters are being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
The matters are also being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Note: The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Topeka Business Owner Pleads Guilty in Check Kiting SchemeRead the Press Release
TOPEKA, KAN. – A Topeka business owner has pleaded guilty to writing more than 5,000 insufficient fund checks in a check kiting scheme, U.S. Attorney Barry Grissom said today.
John Charles Humpage, III, 48, Topeka, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted that in 2008 he defrauded the Educational Credit Union, Kaw Valley State Bank and Alliance Bank. Humpage did business under various names including Humpco, Inc., Crescent Limousine, Yellow Cab of Topeka and Wire and Glass Lease, LLC. He carried out a scheme to defraud the banks by exchanging and cross-depositing insufficiently funded checks between two or more of his bank accounts. In that manner, he generated artificially inflated account balances. The check kiting scheme utilized bank system “float” periods for purposes of creating artificially enhanced bank account balances.
From May through August 2008 he exchanged and cross deposited more than 5,000 insufficient checks and created in excess of $78 million in aggregate deposit amounts. Those deposits falsely inflated his bank account balances by more than $600,000.
Sentencing is set for June 10. He faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for his work on the case.