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Tuesday 29 January 2013
Prior Felon from Artesia, N.M., Sentenced to 30 Months in Prison for Unlawful Possession of FirearmsRead the Press Release
ALBUQUERQUE – Earlier today a federal judge in Las Cruces, N.M., sentenced Adrian Gutierrez, 33, of Artesia, N.M., to 30 months in prison followed by three years of supervised release for being a felon in possession of firearms. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Gutierrez was arrested on June 29, 2012, on a criminal complaint, and has been in federal custody since that time. Gutierrez pled guilty to an Information on Aug. 23, 2012, that charged him with unlawfully possessing three firearms on March 23, 2012, in Eddy County, N.M. At the time, Gutierrez was prohibited from possessing firearms or ammunition because he previously had been convicted of a marijuana trafficking felony in the Fifth Judicial District Court for the State of New Mexico.
“This case serve as a shining example once again of the collaborative relationship between federal and local law enforcement,” stated ATF Special Agent in Charge Atteberry.
The case was investigated by the Roswell office of the Bureau of Alcohol Tobacco, Explosives and Firearms, the Pecos Valley Drug Task Force and the Carlsbad Police Department, and was prosecuted by Special Assistant U.S. Attorney Donald F. Moore, Jr.
Prior Felon from Albuquerque Sentenced to Eight Years in Prison for Possession of Stolen FirearmRead the Press Release
ALBUQUERQUE – Charles Brown, 61, of Albuquerque, N.M., was sentenced this morning to eight years in prison followed by three years of supervised release for possessing a stolen firearm and ammunition. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Brown was indicted in Oct. 2011, and was charged with two counts of the unlawful possession of a firearm and ammunition on Dec. 20, 2010 and on June 14, 2011 in Bernalillo County, N.M. On both dates, Brown was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in Second Judicial District Court for the State of New Mexico: (1) robbery in May 1972; (2) residential burglary in June 1978; (3) residential burglary and larceny in Feb. 1978; (4) receiving or transferring a stolen motor vehicle in Dec. 1980; (5) receiving stolen property in Dec. 1980; (6) receiving stolen property in Jan. 1990; (7) heroin trafficking in Dec. 1995. He also was convicted of (8) burglary of a dwelling and conspiracy to commit burglary of a dwelling in Jan. 1996, in the Thirteenth Judicial District Court for the State of New Mexico; and (9) endangerment in Aug. 2003, in the Arizona Superior Court, Pima County.
Brown was arrested on Oct. 13, 2011, and has been in federal custody since that time. On Aug. 1, 2012, Brown pled guilty to a criminal information charging him with possession of a stolen firearm on June 14, 2011. The plea agreement required Brown to forfeit the firearms and ammunition that were in his possession on Dec. 20, 2010 and June 14 2011.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Louis E. Valencia.
Philadelphia Pill Mill Doctor Sentenced to Seven Years in PrisonRead the Press Release
PHILADELPHIA - Richard Minicozzi, M.D., 79, of Philadelphia, was sentenced today to seven years in prison for conspiracy to distribute controlled substances and 17 counts of distribution of controlled substances for running a pill mill out of his office located at 731 Morris Street in Philadelphia. Minicozzi was distributing hydrocodone (“Vicodin”), and alprazolam (“Xanax”) and was selling prescriptions for oxycodone. Minicozzi ordered the drugs from a supplier and had them shipped to his office in small boxes which he then sold to cash-paying customers who had no legitimate need for the drugs and without a physical examination. Minicozzi and his office assistant, Joan Israel, who previously pleaded guilty, created phony medical records for his drug-buying customers.
In addition to the prison term, U.S. District Court Judge J. Curtis Joyner also ordered three years supervised release, a $40,000 fine, and a $1,800 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement
Administration, and the Philadelphia Police Department and was prosecuted by Assistant United
States Attorney Mary Kay Costello.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pennsylvania Man Indicted in Oregon for Scheme to Defraud Four Dioceses of the Catholic ChurchRead the Press Release
Portland, Ore. - A federal grand jury in Portland has returned an indictment against Shamont Sapp, 49, charging him with mail fraud in a five-year scheme involving false claims of child sex abuse by Catholic priests in four dioceses. Sapp, originally from Harrisburg, Pennsylvania, is alleged to have used "legal mail" while an inmate of the U.S. Bureau of Prisons to file, pursue and litigate the false claims in federal courts from 2005 through 2010. According to the indictment, the false claims caused the dioceses, their representatives, several courts and other entities to expend money, time and other resources to investigate and resolve the claims, which were ultimately denied or dismissed.
The indictment states that the four fraudulent claims sought money damages, and each alleged similar sexual assaults by specified priests when Sapp was a minor in 1978-79. It charges that Sapp had not been sexually assaulted by the priests and, indeed, had not even been present in the dioceses as alleged in his claims.
Fraudulent claims listed in the indictment involved the dioceses of Tucson, Arizona; Covington, Kentucky, and Spokane, Washington, as well as the Archdiocese of Portland, Oregon. In the Covington and Spokane cases, the indictment notes that Sapp falsely alleged sexual assaults by priests in two different cities on the same day, August 18, 1978.
Sapp initially will appear in U.S. District Court in Harrisburg, Pennsylvania, where the government will seek his removal to Portland to face trial on the indictment.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted of mail fraud, Sapp faces a maximum sentence of 20 years in prison and a fine of $250,000, as well as mandatory restitution for all damages incurred.
The case has been investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U. S. Attorney Stephen F. Peifer.
Nine Residents of Kingsport and Gate City Plead Guilty to Drug Distribution ConspiracyRead the Press Release
ABINGDON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that nine residents of Virginia and Tennessee entered pleas of guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to charges involving drug distribution. These charges resulted from a cooperative investigation by the Scott County, Virginia Sheriff’s Office, Sullivan County, Tennessee Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the United States Marshals Service.
Yesterday in District Court, Tabatha Drake, 22, Blountville Tenn., Mickey Fields, 26, Gate City, Va., Joshua Holmes, 21, Kingsport, Tenn., Thomas, Laney, 25, Kingsport, Tenn., Jessica Light, 25, Gate City, Va., Connie Puckett, 43, Kingsport, Tenn., Jacob Spivey, 25, Gate City, Va., Lovella Sweeney, 30, Kingsport, Tenn., and Donald Lee Whitefeather, 59, Gate City, Va., entered pleas of guilty to one count of conspiracy to distribute Oxycodone.
“The success of this case demonstrates our commitment to work together across state lines to put criminal drug organizations out of business,” United States Attorney Timothy J. Heaphy said today. “Prescription drug abuse is a serious health problem in Southwest Virginia and this office will continue to prosecute those who profit from the addiction of others. We will also continue to support education and treatment programs and pursue a holistic response to this persistent problem.”
Each defendant faces a potential maximum sentence of 20 years imprisonment and a fine of $1,000,000. Spivey also entered a plea of guilty to one count of distributing Suboxone within 1,000 feet of a school which carries a potential punishment of up to twenty years imprisonment, a $1,000,000 fine and a mandatory minimum term of imprisonment of one year.
According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary Lee, the individuals who pleaded guilty were all involved in the distribution of controlled substances in Scott County, Virginia and Sullivan County, Tennessee from approximately 2007-2011. The Scott County Sheriff’s Office, Sullivan County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives determined that Drake, Spivey, Whitefeather, Fields, and Light distributed large quantities of oxycodone and suboxone. It was also determined that large quantities of oxycodone were being supplied by Connie Puckett, Lovella Sweeney, and Thomas Laney to other members of the conspiracy for further distribution in Scott County, Virginia and Sullivan County, Tennessee.
The investigation of this case was conducted by the Scott County, Virginia Sheriff’s Office, Sullivan County, Tennessee Sheriff’s Office, Sullivan County, Tennessee District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshals Service. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon is prosecuting the case.New York Man Sentenced for Cape Cod Property Fraud SchemeRead the Press Release
BOSTON - A New York man was sentenced today in connection with a scheme to defraud a Massachusetts man of his Hyannis waterfront property.
Michael Howard Clott, aka Michael Howard, 60, was sentenced by U.S. District Judge Rya W. Zobel to 152 months, followed by 36 months of supervised release, forfeiture of $1,269,168 and ordered to pay $1,425 in restitution. In November 2012, Clott pleaded guilty to three counts of mail fraud and three counts of wire fraud.
From December 2009 through April 2010, Clott spent several months on Cape Cod engaged in a scheme to defraud a Massachusetts man of a property he valued at more than $2.8 million. During this period Clott was a fugitive from a federal criminal case against him in New York. Clott used the alias “Michael Howard,” and represented to others that he was an attorney and financial executive who specialized in purchasing, repairing and marketing bank-owned real estate when, in fact, Clott was none of those things. Clott, however, persuaded a local real estate broker to sell a client’s property for half the asking price, then give the sale proceeds to Clott who would use his purported financial expertise to generate an after-tax benefit for the client equivalent to the client’s asking price. Instead of using the proceeds for the client’s benefit, Clott manipulated others to unwittingly assist in negotiating the proceeds check to enable him to deposit the funds in an account for Clott’s personal benefit. However, Clott’s scheme was discovered and the funds were secured before Clott could further disburse or conceal them.During the past 30 years, Clott has either been engaged in significant fraud schemes, or been serving time in prison for those schemes. Most recently, Clott was sentenced by the Southern District of New York to 259 months in prison which he will serve concurrent to his sentence in the District of Massachusetts.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorneys Mark J. Balthazard and Veronica Lei of Ortiz's Economic Crimes Unit and Asset Forfeiture Unit, respectively.
New Martinsville Resident Sentenced for Being A Convicted Felon in Possession of AmmunitionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA — A 38 year-old New Martinsville, West Virginia, resident was sentenced on January 28, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: PAUL JASON BILLITER a/k/a “P.J.” was sentenced to 51 months imprisonment to be followed by three years of supervised release. BILLITER was convicted on October 24, 2012, following a two- day jury trial, of Possession of Ammunition on November 23, 2011, in New Martinsville after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year. BILLITER was convicted of the offenses of Burglary and Grand Larceny in the Circuit Court of Tyler County, West Virginia.
Trial evidence indicated that BILLITER illegally possessed 102 rounds of ammunition at his residence in New Martinsville.
BILLITER, who is free on bond, will self-report to the designated Federal institution on February 28, 2013.
The case was prosecuted by Assistant United States Attorney David J. Perri and investigated by the New Martinsville Police Department.
New Jersey Businessman Indicted on Tax ChargesRead the Press Release
PHILADELPHIA - Mark Olkowski, 62, of North Wildwood, NJ, a business partner in K & O Sports, was indicted today on tax charges, announced United States Attorney Zane David Memeger. K&O sports, on Moyamensing Avenue, is a South Philadelphia distributor of t-shirts and other clothing items for labor unions, municipalities, and political candidates.
According to the indictment, Olkowski under-reported, by approximately $250,000, K & O’s gross partnership receipts to the Internal Revenue Service on K & O’s partnership tax returns from 2006 through 2009. Olkowski also allegedly failed to report all of his "flow through" partnership income on his personal income tax returns during that same time period. It is further alleged that Olkowski failed to report as income the value of personal expenses he paid with corporate funds, and failed to report as income significant sums of cash received by K & O but which he retained and did not deposit to K & O business accounts.
Olkowski is charged with filing four false personal income tax returns and four false partnership tax returns for his business during 2006 through 2009. Olkowski is also charged with 15 counts of wire fraud concerning approximately $25,000 in allegedly improper unemployment compensation benefits he received while he held an ownership interest in K & O Sports and was receiving income from K & O.If convicted, Olkowski faces a maximum possible sentence of over 100 years in prison, five years supervised release, a $5.75 million fine, and a $2,300 assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L. Gray and John M. Gallagher.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Haven Man Sentenced to 70 Months in Federal Prison for Distributing HeroinRead the Press Release
January 29, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that QUIYON REED, also known as “Gutter,” 29, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin.
REED is one of 108 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms.
According to court documents and statements made in court, in the fall of 2011, REED assisted a co-defendant’s large-scale drug trafficking operation. REED packaged heroin for street sale and served his co-defendant’s drug customers. The investigation also revealed that REED had access to firearms stored at one of his co-defendant’s residences.
REED has been detained since his arrest on May 17, 2012. On October 25, 2012, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided invaluable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Montgomery Woman Indicted for Stolen Identity Refund FraudRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, Ala., returned an indictment charging LaQuanta Clayton with aggravated identity theft and theft of government money, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama
According to the indictment, Clayton used stolen identity information to facilitate the theft of federal tax refunds. As alleged, Clayton used the stolen identity information to open bank accounts at the bank where she was working and then stole federal tax refunds that were deposited into the bank accounts.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Clayton faces a maximum potential sentence of 10 years in prison for each of the 15 theft of government money counts and a mandatory two-year sentence for the aggravated identity theft counts. She is also subject to fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Montgomery Woman Indicted for Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - A federal grand jury returned an indictment charging Scottie Alice Johnson of Montgomery with a conspiracy to commit theft of public funds and to defraud the IRS, announced George L. Beck, U.S. Attorney for the Middle District of Alabama.
According to the indictment, between 2006 and 2012, Scottie Johnson conspired with others to defraud the IRS and commit theft of public funds. Co-conspirators filed false federal income tax returns with stolen identities and had refunds directly deposited into several bank accounts, including bank accounts in the name of Scottie Alice Johnson and another individual. The bank accounts associated with the conspiracy received at least $1.3 million in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Johnson faces 5 years imprisonment for the conspiracy count and 10 years imprisonment for each theft of public funds count. Johnson is also subject to fines, mandatory restitution, and forfeiture.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department's Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Monterio Wiggins Pleads Guilty to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances ActsRead the Press Release
MONTERIO WIGGINS, age 21, of Gretna, Louisiana pled guilty in federal court yesterday before U.S. District Judge Lance M. Africk to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances Acts, announced U.S. Attorney Dana J. Boente.
WIGGINS pled guilty to Count 1: Conspiracy to violate the Racketeer Influence and Corrupt Organizations Act (“RICO), in violation of Title 18, United States Code, Section 1962(d); Count 2: Conspiracy to Distribute and Possess with Intent to Distribute over 280 grams of Cocaine Base (“crack”), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846; and Count 5: Conspiracy to Possess Firearms, in violation of Title 18, United States Code, Section 924(o). As part of the RICO Conspiracy, WIGGINGS admitted that both he and other Murder Squad members participated in the murder Mr. Reginald Francois on April 1, 2010. Specifically, both Dane Carson and WIGGINS shot Mr. Reginald Francois. WIGGINS pled guilty pursuant to an 11(c)(1)(C) plea agreement where he will be sentenced to a term of imprisonment of 360 months. The Court may accept or reject the plea agreement.
This case arose out of a joint investigation by ATF, FBI, and the Jefferson Parish Sheriff’s Office. This investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution. Federal and local law enforcement officers interviewed witnesses, confidential informants, as well as state defendants, relative to the targeted individuals. It was revealed that a group of individuals operated in various areas of Harvey Louisiana, specifically the neighborhoods known as Scottsdale and Haydel. This group controlled these areas for their narcotics distribution activities through violence and through threats of violence, to include murder, attempted murder, obstruction and assaults. They were referred to as the Harvey Hustlers and/or Murder Squad.The “Murder Squad, “ or MS, was a faction of the Harvey Hustlers composed primarily of individuals residing in the Harvey, Louisiana area of Jefferson Parish, Louisiana. While they primarily operated on the Westbank of Jefferson Parish, members conducted business in other parts of the Eastern District of Louisiana. The “Harvey Hustlers” also referred to as “HH” originated in the Harvey area in the mid-1980s. Members of the organization “hustled” meaning they distributed illegal narcotics. The original goal of the Harvey Hustlers was to make money from sales of illegal narcotics.
Sentencing for the named defendants is set for May 2, 2013 before United States District Judge Lance M. Africk.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco and Firearms, and the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Duane A. Evans and Bill McSherry.
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Mescalero Apache Man Sentenced to 79 Months in Prison for Aggravated Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Earlier today in federal court in Las Cruces, N.M., Terrence Charles Blake, 29, a member and resident of the Mescalero Apache Nation, was sentenced to 79 months in prison for his aggravated sexual abuse conviction. Blake will serve a five-year term of supervised release after he completes his prison sentence, and will be required to register as a sex offender. Blake’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Blake was arrested on August 10, 2011, based on a criminal complaint alleging that he raped a Mescalero Apache woman on May 13, 2011, on the Mescalero Apache Reservation. He has been in federal custody since his arrest. On Nov. 16, 2011, Blake was indicted and charged with aggravated sexual abuse.
According to court records, on May 13, 2011, Blake drove the victim to a secluded field behind the Pena Housing Area on the Mescalero Reservation and sexually assaulted her. Blake pled guilty to the indictment on May 7, 2012, and admitted meeting the victim at the Inn of the Mountain Gods Resort and Casino in Ruidoso, N.M., on May 13, 2011. Blake admitted leaving the resort with the victim and later driving her to the secluded field, where he sexually assaulted her against her will and by use of force.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Mescalero Agency, and was prosecuted by Assistant U.S. Attorneys Jessica Càrdenas Jarvis and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
Mercer County Man Pleads Guilty to Illegal Distribution of Prescription PainkillersRead the Press Release
BLUEFIELD, W.Va. – U.S. Attorney Booth Goodwin announced that a Mercer County man pleaded guilty on Jan. 29 in federal court to distribution of hydromorphone. Trusby Hubbard also known as “Red,” 34, of Bluefield, Mercer County, W.Va., admitted that on August 16, 2012, he sold two hydromorphone pills to a person cooperating with law enforcement authorities. Hubbard also admitted that during the illegal transaction, he possessed an additional 15 hydromorphone pills. The illegal pill transaction took place at the defendant’s Bluefield residence.
The defendant also admitted that he was responsible for distributing a total of no more than 17 hydromorphone pills.
Hubbard faces up to 20 years in prison and a $1 million fine when he is sentenced on April 26, 2013 by United States District Senior Judge David A. Faber.
The Southern Regional Drug and Violent Crime Task Force handled the investigation. Assistant United States Attorney John File is in charge of the prosecution.
The case is being brought as part of the Bluefield Pill Initiative. The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming Counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments.
Media AdvisoryRead the Press Release
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, Veronica Hyman-Pillot, Internal Revenue Special Agent in Charge, and Clayton Slay, U.S. Secret Service Resident Agent in Charge, will hold a press conference to announce the government’s continued crackdown on identity theft and fraudulent tax preparers. Since January 30, 2013, is the first day of the tax filing season for 2012 taxpayers, it is a perfect time to warn taxpayers about these fraudulent tax preparers and identity theft. Press releases and other handouts will be provided at the conference. The press conference will be held on Wednesday, January 30, 2013, at 1:00 p.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Maryland Man Sentenced to 57-Month Prison Term for Robbing A Man in Northwest Washington-Summertime Attack Took Place in Broad Daylight-Read the Press Release
WASHINGTON – Deandre Swann, 25, of Hyattsville, Md., was sentenced today to four years and nine months in prison for robbing a man in broad daylight last summer in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Swann pled guilty in November 2012 in the Superior Court of the District of Columbia to robbery and destruction of property. He was sentenced by the Honorable Robert I. Richter. Upon completion of his prison term, Swann will be placed on three years of supervised release.
As part of the plea, Swann admitted that on July 28, 2012, at about 1:25 p.m., he and another man approached the victim in the 500 block of T Street NW. Swann tried to grab the victim’s iPhone, then repeatedly struck him. The victim threw the iPhone and was knocked to the ground. Swann’s accomplice picked up the iPhone, and the two fled the scene together.
In addition to the seriousness of the offense itself, the sentence reflected the fact that at the time of the crime, Swann was on probation in the District of Columbia for a 2008 conviction for five counts of distribution of cocaine in a drug-free zone. In that case, he is facing a probation revocation hearing before the Honorable John M. Mott on Feb. 8, 2013.
In announcing the sentence, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, which investigated the case. He also commended the work of Paralegal Specialist Allison Daniels and Assistant U.S. Attorney Stephen Rickard, who prosecuted the matter.
13-032Mark James Denny Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 29, 2013, before Chief U.S. District Judge Richard F. Cebull, MARK JAMES DENNY, a 33-year-old resident of Hardin, pled guilty to theft from an organization receiving federal funding. Sentencing has been set for May 1, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies. DENNY was also an employee of the CTHPO.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees assigned to projects as monitors. X.X. did not serve as a monitor in the field.
In the Summer of 2011 - from June to August - DENNY was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DENNY's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who as Director of the CTHPO had assigned several others and DENNY as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DENNY admitted that he knew that he took direct payments while a tribal employee and that it was wrong to be paid by the Tribe and the companies for the same work. He admitted that the time sheets he submitted to the Tribe and the invoices he submitted to the companies were false and fraudulent because they were inflated and represented demands for payment for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
The United States will seek restitution in the amount of $73,046 - the amount of loss directly attributable DENNY.
I meet regularly with tribal officials on each of Montana's reservations, and at each meeting they ask this office to do more to put an end to corruption and theft in the administration of federal grants and programs. I take - and have taken - their pleas to heart when my office created the Guardians Project with just that mission in mind. The change of plea today represents just one of many, many steps this office will take to respond the concerns of our Indian communities for honesty and integrity in tribal government." Michael W. Cotter, United States Attorney for the District of Montana.
DENNY faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Manhattan U.S. Attorney Sues TestQuest, Criminally Charges One Former TestQuest Manager, and Announces Guilty Pleas of Two Former Directors at Princeton Review for Defrauding Federal Government into Paying for Tutoring Services That Were Never ProvidedRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian M. Hickey, the Special Agent-in-Charge of the Northeastern Region of the United States Department of Education’s Office of Inspector General (“ED-OIG”), announced today a number of civil and criminal actions relating to false claims for reimbursement submitted by educational testing services companies, TESTQUEST, INC. (“TESTQUEST”) and THE PRINCETON REVIEW, INC. (“PRINCETON REVIEW”) in connection with a federally-funded program that provides tutoring services to public school children. The actions include: (1) the filing of a civil fraud lawsuit earlier today against TESTQUEST and MICHAEL LOGAN, a former Manager at TestQuest, seeking treble damages and civil penalties under the False Claims Act for the fraudulent reimbursement claims submitted by TESTQUEST between 2005 and 2012; (2) the arrest this morning of LOGAN on fraud charges; (3) the guilty pleas of ANA AZOCAR and ZORAYMA AZOCAR, two former Site Managers and then Directors of PRINCETON REVIEW’s New York City Supplemental Educational Services program (“SES”), to fraud charges and the settlement of civil claims filed against them; and (4) the settlement of civil claims filed against ROBERT STEPHEN GREEN, a former Director and Vice President of PRINCETON REVIEW. LOGAN was presented before U.S. Magistrate Judge James C. Francis IV this afternoon. ZORAYMA AZOCAR pled guilty before U.S. District Judge John F. Keenan on January 11, 2013, and ANA AZOCAR pled guilty before U.S. District Judge Jesse M. Furman on January 15, 2013.
The Government reached a settlement in December 2012 with EDUCATION HOLDINGS, INC. which was formerly known as THE PRINCETON REVIEW, INC. for its role in the government billing fraud.
Manhattan U.S. Attorney Preet Bharara said: “Today, we continue our push to clean up corruption in the tutoring of our school kids perpetrated by those who put their pockets before their pupils. In little more than a month since we exposed and resolved a scheme by Princeton Review to fraudulently bill the government for critical tutoring services that could make the difference between a child’s academic success or failure, we are now holding individuals to account – both criminally and civilly – for their roles in that scheme. But today we go even further – charging a second company and one of its principals for allegedly feeding at the trough of government largesse by targeting the same Supplemental Education Services program and manufacturing student beneficiaries of those services out of whole cloth.”
ED-OIG Special Agent-in-Charge Brian M. Hickey said: “The Supplemental Education Services program provides critical resources for children to improve their academic performance. Ana Azocar, Zorayma Azocar, and Robert Stephen Green were trusted to provide those services, but instead they chose to abuse that trust for personal gain, and that is unacceptable. And Michael Logan is alleged to have done the exact same thing. I am proud of the work of our office in holding these individuals accountable for their fraudulent actions and we will continue to track down those who cheat this important program and the students and families that rely on it.”
According to the Criminal Complaint against LOGAN, the Criminal Informations against the AZOCARS, the Civil Complaints against PRINCETON REVIEW and TESTQUEST, and the Settlement with GREEN filed in Manhattan federal court:
The Supplemental Educational Services Program
Each year, the New York City Department of Education (“NYCDOE”) receives funds from the federal government to pay for SES, such as after-school tutoring and other remedial and supplemental academic enrichment services for students attending underperforming public schools. NYCDOE typically enters into contracts with private entities and organizations to provide SES tutoring to students in New York City public schools. Students are eligible to receive SES tutoring if they meet certain criteria, such as attending a school that has been identified as needing improvement or restructuring for at least two years. Private entities contracted by NYCDOE to provide SES tutoring are required to have each student who attends a class sign a standard attendance form. The tutor of each class also is required to sign the form attesting that he or she provided SES tutoring to the students whose signatures appear on the attendance form. As a condition of getting paid for providing tutoring, the private entities are required to certify to the NYCDOE that their attendance records are “true and accurate.”
TESTQUEST
From 2005 through 2012, TESTQUEST contracted with the NYCDOE to provide SES tutoring to students in New York City. It provided individual tutoring to students at their homes and group tutoring at various New York City public schools, including the Monroe Academy of Business and Law/High School of World Cultures (“Monroe”) and the Global Enterprise Academy/Christopher Columbus High School (“Columbus”). TESTQUEST received tens of millions of dollars of federal funding for tutoring during this time period, including more than $2.3 million for purportedly providing tutoring at Monroe and Columbus alone.
MICHAEL LOGAN was an employee of TESTQUEST responsible for managing its SES tutoring program at Monroe and later at Columbus. LOGAN also worked as a long-term substitute teacher and computer technician at Monroe and, at times, coached Monroe’s baseball team. As a result of LOGAN’s conduct, TESTQUEST employees repeatedly submitted to the NYCDOE bills for students who never received any tutoring. LOGAN instructed TESTQUEST employees to forge student signatures on attendance forms and to have students sign attendance forms for tutoring classes they had not in fact attended. On some occasions, LOGAN caused TESTQUEST employees to fraudulently obtain students’ signatures by collecting them from students assembled in the school cafeteria or participating in afterschool activities such as baseball or basketball practice. LOGAN would direct employees to participate in this fraud by saying, for example, “if you can’t find the students, sign them in,” “make them sign or you won’t get paid,” and “I already got paid, this is how you get paid.” Further, when LOGAN learned of the criminal investigation, he coached others to lie. In one recorded conversation, LOGAN encouraged another witness to lie about teaching classes that occurred when the witness and LOGAN were actually coaching after-school sports, saying “…we just gotta stick to we taught the classes.” Through the fraud conducted at LOGAN’s direction, TESTQUEST was paid substantial sums for tutoring that never occurred.
TESTQUEST’s management knew of, deliberately ignored or recklessly disregarded the fraud by LOGAN. For example, during the 2008/2009 academic year, little or no tutoring was taking place at Monroe, and employees collected student signatures on attendance forms in the school cafeteria. During other years, the reported attendance at TESTQUEST's afterschool tutoring at Monroe and Columbus was greater than the number of students actually receiving tutoring. Moreover, TESTQUEST’s management was exposed to clear warning signs of the fraud, including one occasion in 2010 when TESTQUEST’s President saw student signatures on an attendance form and expressly stated that they looked forged.
PRINCETON REVIEW
From 2002 to 2010, PRINCETON REVIEW contracted with the NYCDOE to provide SES tutoring to students in New York City. Between 2006 and 2010, however, Site Managers at PRINCETON REVIEW’s New York City SES division falsified entries on daily student attendance sheets to make it appear that more students had attended the PRINCETON REVIEW’s SES classes than had, in fact, attended. In some cases, Site Managers falsified entire daily student attendance sheets for SES classes that did not, in fact, take place. If a Site Manager failed to report a sufficiently high rate of student attendance at PRINCETON REVIEW’s SES classes, the Site Manager’s Director would threaten to terminate and/or lower the hours and pay of the Site Manager.
ANA AZOCAR and ZORAYMA AZOCAR worked as Site Managers and then as Directors of PRINCETON REVIEW’s New York City SES division, responsible for supervising Site Managers at schools throughout New York City, including in Manhattan and the Bronx. As described in the Informations to which they pled guilty, as well as the civil settlements they entered into, ANA AZOCAR and ZORAYMA AZOCAR not only falsified attendance records on their own, but also pressured and instructed the Site Managers they supervised to commit fraud in this manner. ROBERT STEPHEN GREEN was also a Director at PRINCETON REVIEW and, later, the Vice President in charge of PRINCETON REVIEW’s New York City SES program. As he admitted in the civil settlement he entered into, he gave the Site Managers he supervised a daily quota for student attendance and pressured the Site Managers to meet the quota, including by threatening to fire them or lower their pay if they reported low attendance. He texted or called the Site Managers on a daily basis demanding that they continually report higher attendance and said, for example, “find 15 more students,” “get more students,” and “make it happen, I don’t want any excuses.” GREEN admitted that even after he became Vice President, he was “repeatedly put on notice that Site Managers were in fact falsifying entries on the daily student attendance sheets.” Through the fraud committed at the direction of ANA AZOCAR, ZORAYMA AZOCAR and GREEN, PRINCETON REVIEW billed for and received millions of dollars in federal funds for SES tutoring that it had not provided.
MICHAEL LOGAN, 48 of White Plains, New York, was charged with one count of conspiracy to commit mail and wire fraud and one count of conspiracy to defraud the United States and the U.S. Department of Education, and faces a maximum sentence of 25 years in prison. The charges in the Criminal Complaint against him are merely allegations and he is presumed innocent unless and until proven guilty.
By filing its Civil Complaint, the Government joined a private whistleblower lawsuit that had previously been filed against TESTQUEST under the False Claims Act.
ANA AZOCAR, 36 of New York, New York, and ZORAYMA AZOCAR, 35 of New York, New York, each pled guilty to one count of conspiracy to defraud a federal program and one count of federal program fraud. They both face a maximum sentence of 15 years in prison. ANA AZOCAR will be sentenced by Judge Furman on May 23, 2013, and ZORAYMA AZOCAR will be sentenced by Judge Keenan on June 26, 2013.
Separately, ANA AZOCAR and ZORAYMA AZOCAR settled civil claims filed against them, made admissions concerning their conduct, and agreed to pay $1,043,400 and $1,020,500, respectively, in restitution and forfeiture in satisfaction of the civil claims against them.
ROBERT STEPHEN GREEN also settled civil claims filed against him, made admissions concerning his conduct, and agreed to execute a judgment in favor of the Government in the amount of $3.2 million, and to pay $221,058 in satisfaction of the civil claims against him. The $221,058 represents the maximum of GREEN’s ability to pay a monetary settlement to the Government. In addition, in connection with their civil settlements, ANA AZOCAR, ZORAYMA AZOCAR and GREEN have each agreed not to participate in any procurement or non-procurement transactions with the federal Government for a period of five years.
The Government reached a settlement in December 2012 with EDUCATION HOLDINGS, INC. which was known as THE PRINCETON REVIEW, INC. until May 2012, for PRINCETON REVIEW’s repeated submission of false claims for reimbursement. In the settlement, EDUCATION HOLDINGS admitted, acknowledged, and accepted responsibility for engaging in fraudulent conduct while it was doing business as PRINCETON REVIEW and agreed to pay up to $10 million to the United States in damages and penalties under the False Claims Act.
Mr. Bharara thanked the Office of the ED-OIG for its extraordinary assistance in this case.
The criminal cases are being handled by the Complex Frauds Unit and Assistant U.S. Attorneys Joseph P. Facciponti and Christopher B. Harwood are in charge of the prosecution. The civil cases are being handled by Christopher B. Harwood of the Office’s Civil Frauds Unit.
The Civil Frauds Unit works in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The charges contained in the Criminal Complaint against LOGAN are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. TestQuest, Inc, et al. Complaint
U.S. v. Michael Logan Michael Complaint
U.S. v. Education Holdings1, Inc (Princeton Review) Amended Complaint
U.S. v. Zorayma Azocar Information
U.S. v. Ana Azocar InformationMan Pleads Guilty to Threatening to Kill DeputyRead the Press Release
A man who made threatening phone calls to Allamakee County employees pled guilty on January 25, 2013, in federal court in Cedar Rapids.
Kenneth Haag, age 26, from Lansing, Iowa, was convicted of one count of using a telephone to transmit an interstate communication threatening to injure another person.
In a plea agreement, Haag admitted that on November 9, 2011, he called the Allamakee County Sheriff’s Office and threatened to kill an Allamakee County Sheriff’s Deputy. Other information filed in the case showed that Haag initiated numerous communications via telefax, email, or telephone, between about November 2011, and January 2012, to the Allamakee County Sheriff’s Office; the Allamakee County Clerk of Court Office; and State of Iowa Judges in Allamakee County. In several of the communications, Haag made threats to injure or kill county officials or judges.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Haag remains in the custody of the United States Marshal pending sentencing. Haag faces a possible maximum sentence of up to five years’ imprisonment, a $250,000 fine, a $100.00 special assessment, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-1001.
Man Pleads Guilty to Firearm ChargesRead the Press Release
BOSTON - A former Mattapan man pleaded guilty yesterday to possessing a firearm and ammunition.
Aylis Dryden, 27, pleaded guilty before U.S. District Judge Richard G. Stearns to being a felon in possession of a firearm and ammunition.
On April 7, 2010, four Boston Police officers were on routine patrol in an unmarked cruiser in the vicinity of the Heath Street Housing Development in Jamaica Plain when they observed a large group of people gathered, some drinking from open containers of alcohol. The officers observed Dryden act suspiciously and make adjustments to his center front waistband, prompting one of the officers to ask Dryden if he was carrying a gun. Although Dryden initially denied having a gun, he inadvertently revealed it when he lifted his shirt at the officers’ request. Ultimately, officers seized the gun as he attempted to flee. Dryden, a previously convicted felon, was arrested and transported in a cruiser, where the officers found additional ammunition.
Sentencing is scheduled for May 1, 2013. The sentence under the statute is a minimum of 15 years and up to life in prison, followed by up to five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives Boston Field Office; and Boston Police Commissioner Edward Davis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Lisa Asiaf Schlatz.
Louisville Man, Formerly Employed as A Police Officer and Officer with the Kentucky Department of CorrectionsRead the Press Release
– Sentenced To 42 Months For Threatening A Federal Agent
BOWLING GREEN, Ky. – A Jefferson County, Kentucky resident, formerly employed as a police officer and officer with the Kentucky Department of Corrections was sentenced in U.S. District Court today, by Senior Judge Thomas B. Russell to 42 months in prison and 3 years’ supervised release for mailing threatening communications to a federal law enforcement officer and knowingly depositing a firearm in the mail announced David J. Hale, United States Attorney for the Western District of Kentucky.
Ted Ray Schlenker, age 48, pleaded guilty on October 24, 2012 to charges that he knowingly deposited for mail at the United States Post Office in Bowling Green, Kentucky on Scottsville Road, a written threatening communication and a Jennings, Bryco Arms, 9mm handgun, addressed to the personal residence of a Special Agent for the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
In open court, Schlenker admitted on April 25, 2012, while under investigation by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for federal firearms violations, the defendant, Ted Ray Schlenker, placed a handgun and handwritten letter addressed to an ATF special agent in a mail receptacle at the United States Post Office on Scottsville Road in Bowling Green, Kentucky, which is located in the Western District of Kentucky. The envelope was addressed to Special Agent D.V.'s personal residence and read as follows:
"Dan if you want this to look like a suicide get me another piece because to use this one would be suicide. The slide is cracked on this one. Where ever you borrowed or stole it, give it back! If this is a set-up we will burn you with it! Just so you remember I have the DVD and I gonna make copies! I suggest you answer your other phone or return the Text! If you want this done right I suggest you get me a gun that works! Answer your other phone dam it.”Postal employees recovered a manila envelope which contained the handwritten note and the firearm, a Bryco, Model Jennings Nine, 9mm pistol, serial number 1350201.
The defendant knowingly and willfully mailed the firearm, an improperly mailed item, and letter which Special Agent D.V. reasonably took as a serious expression of the defendant's intent to inflict bodily harm. Furthermore, the mailing was perceived by Special Agent D.V. to effect some change or achieve some goal through intimidation.
According to an Affidavit filed in support of a federal criminal complaint, defendant Schlenker was being investigated by ATF for firearms violations in connection with Kentucky Gun Runners, Inc., a company formerly owned by Schlenker. Specifically, the agent to whom Schlenker mailed the gun and letter was conducting the investigation. In 2010, ATF conducted a compliance inspection on Kentucky Gun Runners, Inc., and discovered ten firearms not properly recorded and 49 firearms that were recorded, but missing from the store’s inventory. Schlenker is suspected of falsifying ATF forms. The ATF determined that Kentucky Gun Runners, Inc., had purchased the Jennings, Bryco Arms 9mm handgun, but did not officially record the purchase.
ATF conducted a federal search warrant on Schlenker’s Jefferson County, Kentucky residence on April 27, 2012. Agents located a white notepad inside a Ford Escape and a wrinkled piece of paper in a trash bag with the words, “Dan if you whant”. The phraseology and hand writing matched the writing of the letter sent to the ATF Special Agent, while the notepad had indentations of hand writing which matched the letter placed in the mail to be sent to the personal residence of the ATF Special Agent.
A search of the garage revealed several documents, including computer research data containing the personal information, including addresses, phone numbers, and personal vehicle types of law enforcement agents and their spouses. During the search, Schlenker is alleged to have remarked, “You know what they say, know your enemies.”
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Postal Inspection Service and the Bowling Green Police Department.
Louisiana Man Sentenced for Purchasing Cold Pills in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A48-year-old Shreveport, LA man has been sentenced for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jay S. Gaines pleaded guilty on Sep. 4, 2012, to possession of pseudoephedrine with intent to manufacture methamphetamine and was sentenced to 57 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, on Apr. 4, 2011, Gaines purchased cold pills containing pseudoephedrine at a Walmart store in Longview, Texas with the intent to manufacture methamphetamine. Within an hour, Gaines also made two other purchases of cold pills at another Walmart store and a Walgreens store in Longview.
Gaines’ co-defendants have all been sentenced. Jimmie Langston, Jr., was sentenced on Oct. 4, 2012 to 120 months in federal prison. Donnie Regis was sentenced to 75 months on June 21, 2012. Christopher Conley received a sentence of 100 months on Jan. 17, 2012. Connie Parker was sentenced to 70 months on Feb. 8, 2012. Stacy Campbell was sentenced to 75 months on June 1, 2012. Keith Kates received a 70 month sentence on June 21, 2012. Penny Mooney was sentenced to 57 months in federal prison on Feb. 8, 2012.
This case was investigated by the Texas Department of Public Safety Criminal Investigations Division and the Panola County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Mary Ann Cozby. ####Louisiana Man Sentenced for Dealing Meth in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A35-year-old Zwolle, LA man has been sentenced to federal prison for drug trafficking charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kinte Varness Garner pleaded guilty on Aug. 21, 2012, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 262 months in federal prison today by U.S. District Judge Michael H. Schneider. Garner was also ordered to submit to forfeiture of $5,000.00.
According to information presented in court, up until September 2011, Garner conspired with another person to acquire and distribute more than 500 grams of methamphetamine throughout the Tyler, Texas area. A federal grand jury returned an indictment on Oct. 5, 2011, charging Garner with federal violations.
Garner’s co-defendant, Camera Neal Holden, Jr., was sentenced to 60 months in federal prison on Sep. 11, 2012.
This case was investigated by the Drug Enforcement Administration, the Canton Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####Leesville Accountant Pleads Guilty to Failure to Report Taxes - More than $190,000 Taken in BonusesRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that Larry Wayne Bruce, 60, of Leesville, pleaded guilty Tuesday before U.S. District Judge Richard T. Haik to two counts of failure to pay taxes.
Bruce pleaded guilty to one count of the pending indictment for admitting to his failure to pay the proper amount of payroll taxes owed to the Internal Revenue Service while working as a financial officer at Express Marketing Incorporated in Leesville from 2003 to 2007. Bruce admitted it was his responsibility to pay the payroll taxes withheld from EMI employees, and also admitted to taking more than $190,000 in excess of his salary from EMI.
Bruce also pleaded guilty to another count of the pending indictment, where he admitted to not paying his personal taxes from 2005 until he left the company in 2007.
Bruce could face up to five years in prison, a fine of $250,000 or both with three years of supervised release on the first count, and he could face up to one year in prison, $25,000 in fines or both with one year supervised release for the other charge. Sentencing has not been scheduled.
The Internal Revenue Service conducted the investigation. Assistant U.S. Attorney Myers Namie prosecuted the case.
Las Cruces Man Sentenced to Seventy Months in Prison for Robbing 1st New Mexico Bank of Las Cruces in December 2011Read the Press Release
ALBUQUERQUE – Daniel Francis Jones, 51, of Las Cruces, N.M., was sentenced this morning to 70 months in prison followed by three years of supervised release for his bank robbery conviction. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Jones was arrested on Dec. 13, 2011, on a criminal complaint alleging that he robbed the 1st New Mexico Bank of Las Cruces, located at 3000 E. Lohman in Las Cruces, on Dec. 13, 2011. He has been in federal custody since his arrest.
Court records reflect that Jones entered the bank with a backpack and approached a bank teller with a note demanding money. After obtaining cash from two bank tellers, Jones left the bank on foot and headed towards stores located near the bank. Shortly thereafter, officers of the Las Cruces Police Department detained Jones at pets store because he matched the description of the robber. Jones was arrested when the officers found him in possession of the stolen money.
Jones pled guilty to the bank robbery on March 8, 2012, without the benefit of a plea agreement.
The case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department, and was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Larkin Troy Chandler Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 29, 2013, before Chief U.S. District Judge Richard F. Cebull, LARKIN TROY CHANDLER, a 46-year-old resident of Crow Agency, pled guilty to theft from an organization receiving federal funding. Sentencing has been set for May 1, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies. CHANDLER was also an employee of the CTHPO.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO, including CHANDLER, and the two non-employees assigned to projects as monitors. X.X. did not serve as a monitor in the field. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
When interviewed, CHANDLER confirmed that he had been a tribal employee being paid on a per hour basis for his services as a monitor. He also confirmed that he billed the companies directly, at the direction of X.X., for performing the services for which he was already being compensated by the Tribe.
The United States will seek restitution in the amount of $44,546.50, the amount of loss to the Crow Tribe directly attributable CHANDLER.
I meet regularly with tribal officials on each of Montana's reservations, and at each meeting they ask this office to do more to put an end to corruption and theft in the administration of federal grants and programs. I take - and have taken - their pleas to heart when my office created the Guardians Project with just that mission in mind. The change of plea today represents just one of many, many steps this office will take to respond the concerns of our Indian communities for honesty and integrity in tribal government." Michael W. Cotter, United States Attorney for the District of Montana.
CHANDLER faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Keith Daniel Skunkcap Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 29, 2013, before U.S. Magistrate Judge Keith Strong, KEITH DANIEL SKUNKCAP, a 21-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, pled guilty to burglary. Sentencing has been set for May 10, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On August 17, 2011, at approximately 2:00 a.m., SKUNKCAP entered the residence of T.L.G. The residence is located Browning, which is within the exterior boundaries of the Blackfeet Indian Reservation.
T.L.G., the owner of the residence, told SKUNKCAP to leave, but he refused. T.L.G. pointed to the back door of the residence, again requesting SKUNKCAP to leave. SKUNKCAP eventually pushed T.L.G. After being pushed, T.L.G. fell to the ground. As a result of the assault, T.L.G.'s upper lip was split open. T.L.G. was transported to Kalispell due to the seriousness of the facial laceration. T.L.G. underwent reconstructive surgery on her lip and nose.
In an interview with the FBI, SKUNKCAP admitted that he pushed T.L.G. Although SKUNKCAP claimed that T.L.G. hit him about seven times in the face, he did not have any injuries.
SKUNKCAP faces possible penalties of 20 years in prison, a $50,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Kansas City Man Sentenced to 30 Years for Armed Robbery, Firearms ViolationsRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Mo., man has been sentenced to 30 years for armed robbery and firearms violations, U.S. Attorney Barry Grissom said today.
Mark R. Davis, 35, Kansas City, Mo, was convicted in a jury trial in October 2012 on one count of robbery, one count of brandishing a firearm during a crime of violence and one count of unlawful possession of a firearm after a felony conviction.
Co-defendant Abasi Baker was convicted in a jury trial on 21 counts including seven counts of robbery, seven counts of unlawful possession of a firearm after a felony conviction and seven counts of brandishing a firearm during a robbery. He was sentenced to 164 years in federal prison.
The jury found Davis guilty of brandishing a .40 caliber Glock pistol while robbing the Radio Shack store at 6945 W. 7th Street in Overland Park on March 3, 2011. At the time, he was prohibited from possessing a firearm because of four prior felony convictions for robbery.Grissom commended the following agencies and individuals for their work on the case: The FBI and the FBI Violent Crimes/Fugitive Task Force; the Wyandotte County District Attorney’s Office; the U.S. Attorney, Western District of Missouri; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kansas City, Mo., Police Department; the Kansas City, Kan., Police Department; he Overland Park Police Department; the Olathe Police Department; the Johnson County Sheriff’s Office; the St. Joseph, Mo., Police Department; the Lee’s Summit, Mo., Police Department; the Mission, Kan., Police Department; and assistant U.S. Attorney Terra Morehead, who prosecuted the case.
Jury Convicts Juarez-Sanchez Following Trial Involving Marijuana Grow Operation in Iron CountyRead the Press Release
SALT LAKE CITY – A jury convicted a Compton, Calif., man of manufacturing a controlled substance by cultivation in connection with a 2012 marijuana grow on U.S. Forest Service land in Iron County following a three-day trial late last week in U.S. District Court.
Roman Juarez-Sanchez, age 46, faces up to life in federal prison for the conviction with a 10-year mandatory minimum sentence. U.S. District Judge Ted Stewart, who presided over the trial, set sentencing for April 1, 2013, in St. George.
In recent years, drug trafficking organizations have been cultivating marijuana in the mountains of Southern Utah. Federal, local, and state agencies are coordinating efforts to reduce and eliminate this illegal and dangerous practice.
“This is a victory in the fight against marijuana grows on Utah’s public lands. DEA will continue to stand steadfast with our federal, state and local partners to keep dangerous drug trafficking organizations from setting up grow operations on public lands in Utah,” Frank Smith, Assistant Special Agent in Charge of DEA in Salt Lake City, said today.
Iron County Sheriff Mark Gower believes law enforcement officers in Utah have found a successful strategy for dealing with marijuana grows. “We have adopted a policy of being proactive rather than reactive in dealing with drug traffickers attempting to grow marijuana on Utah’s public lands. We’ve been aggressive in our efforts to identify and investigate those cultivating the marijuana as well as those who support the operations, like the defendant convicted in this case. Ultimately, successful cases start with boots on the ground and solid investigative work,” Sheriff Gower said.
Acting on tips from a citizen, law enforcement officers located the Iron County grow in July of last year and began conducting surveillance of the area to identify those involved in the grow operation. Officers executed a traffic stop later in July and arrested three individuals in the area of the grow. Jaurez-Sanchez was in the car along with two other individuals, Gabriela Lopez, age 25, of Compton, and Marcelo Balderas-Contreras, age 28, of Mira Loma, Calif. Officers found several large bags in the trunk of the car that contained more than 80 pounds of harvested marijuana. Lopez admitted that she and Juarez left California earlier in the day to deliver food to workers at the grow site and bring back harvested marijuana. Juarez-Sanchez told officers he was to be paid $3,000 for the trip. He said he knew where to meet the grow workers because he had been communicating with the on-site grow supervisor.
Law enforcement officers raided the marijuana grow a few days later but made no additional arrests. Officers found 4,211 marijuana plants at the grow site.
Evidence at Juarez-Sanchez’ trial last week showed that he played a significant role in the marijuana cultivation operation. Specifically, he organized the transportation of workers and supplies into the grow area and was trusted to haul large quantities of marijuana out of the cultivation site.
U.S. Attorney for Utah David B. Barlow said Juarez-Sanchez’ conviction should send an important message to those involved in marijuana cultivation operations. “This case illustrates that a person need not be physically present in the grow area to be considered a key player in a marijuana-grow operation. There was no evidence this defendant was ever in the grow site itself or that he ever planted, tended, or cut the plants himself. However, we had strong evidence that his efforts helped facilitate the crime. We will continue to aggressively prosecute those who are involved in marijuana grows on Utah’s public lands, including those whose actions aid and abet the operation,” Barlow said.
Prosecutors said that in addition to the 4,211 marijuana plants found at the cultivation area, forest trees were cut down, scarce water was diverted to the grow, and those involved in the cultivation left a large amount of trash in the national forest.
The two other defendants in the case, Lopez and Balderas-Contreras, reached plea agreements with federal prosecutors. Both pleaded guilty to one count of manufacture of a controlled substance by cultivation. Lopez admitted she aided and assisted in delivering food to those working in the Iron County marijuana cultivation site and helped transport harvested plants from the grow area. Balderas-Contreras admitted he assisted in cultivating marijuana plants and in transporting harvested marijuana away from the cultivation site. Sentencing for both is scheduled for March 4, 2013, in St. George.
“The organizations that grow and traffic marijuana on public lands pose a significant threat to public safety. Additionally, they do significant damage to our natural resources and public lands. The special agents and law enforcement officers of the U.S. Forest Service stand firm in their commitment to work with local, state, and federal partners to investigate, prosecute, and dismantle the organizations that choose to use our public lands to further their criminal enterprises,” Mike McKinney, Special Agent in Charge of the U.S. Forest Service in Utah, said today.
Local, state, and federal officers and prosecutors believe their unified efforts in the identification, investigation, and prosecution of individuals involved in marijuana grow operations in Utah is reducing the number of plants and grows in Utah. During the 2010 Utah outdoor marijuana grow season, enforcement efforts resulted in the seizure of 106,845 plants from 17 grows. In 2011, 78,363 plants were seized in nine grows. The 2012 grow season ended with a total of 13,177 plants seized from four grows.
The case was prosecuted by Assistant U.S. Attorneys Paul Kohler and Matt Bell with DEA Special Agent Cliff Lark as the lead case agent.
Jason Charles Shouse Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 29, 2013, before U.S. Magistrate Judge Keith Strong, JASON CHARLES SHOUSE, a 36-year-old resident of Cascade County, pled guilty to sexual exploitation of children and penalties for registered sex offenders. Sentencing has been set for May 10, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
In 1997, in the Eighth Judicial District Court of Montana, SHOUSE was pled to sexual intercourse without consent. In June of 1998, he was sentenced to 20 years imprisonment with 18 years suspended. Due to that offense, SHOUSE was required to register as a sex offender.
In July 2012, the Cascade County Sheriff's Office received a report that photos which depicted child pornography were located on one of SHOUSE's old cell phones. The SD card from the old cell phone was seized and searched. Investigators located videos on the SD card which depict SHOUSE performing sexual acts which meet the federal definition of "sexually explicit conduct" on an approximately 2-year-old child. SHOUSE was identified on the videos and appeared to have filmed the videos himself in 2008.
SHOUSE faces possible penalties of a mandatory minimum of 25 years in prison and could be sentenced to 50 years, a $250,000 fine, and lifetime supervision. In addition, SHOUSE faces an additional mandatory 10 year imprisonment, consecutive to any other sentence, for penalties for registered sex offenders.
The investigation was a cooperative effort between the Internet Crimes Against Children (ICAC) Task Force, the Cascade County Sheriff's Office, and the Montana Division of Criminal Investigation.
Indictment: Man from North Carolina Set up $72,000 Drug Deal in WichitaRead the Press Release
WICHITA, KAN. – A man from North Carolina and two associates from Texas have been charged with coming to Wichita to sell more than $72,000 worth of methamphetamine, U.S. Attorney Barry Grissom said today.
Jorge Castro-Cisneros, 29, Hickory, N.C.; Fabrizio Tovar-Rodriguez, 26, Houston, Texas; and Daniel Santiago-Bermudez, 37, Houston, Texas, are charged with one count of possession with intent to distribute methamphetamine.
The men initially were charged in a criminal complaint filed Jan. 18 in U.S. District Court in Wichita. The complaint alleged that in October Castro-Cisneros talked to a Wichita Police Department detective working undercover about coming to Wichita to sell methamphetamine. Castro-Cisneros sent the detective a text indicating the methamphetamine would cost $24,000 a pound.
Castro-Cisneros arrived in Wichita Jan. 15 and the undercover detective picked him up at the Greyhound bus depot. Castro-Cisneros told the detective that the drugs would be arriving soon from Houston. On Jan. 16, a Chevy pickup with a Texas tag met Castro-Cisneros and the undercover detective at the Motel 6 at 5736 W. Kellogg. The detective told the driver of the pickup to follow him. Police stopped the pickup near Central and Ridge. They found a package hidden in the engine compartment containing more than 3 pounds of methamphetamine.
If convicted, the defendants face a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Wichita Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.
OTHER INDICTMENTSLlewellyn Richard, 44, Kansas City, Kan., was charged with 12 counts of robbery.
Richard initially was charged with nine counts of robbery in a criminal complaint filed Jan. 3 in U.S. District Court.
The three new robbery counts include:
– Cricket Wireless, 840 Minnesota, Kansas City, Kan., Dec. 29, 2012
– Russell Stover Candies, 2814 Shawnee Mission Parkway, Fairway, Kan., Dec. 30, 2012.
– Nationwide Cellular, 4314 Rainbow Boulevard, Kansas City, Kan., Dec. 31, 2012.The other robberies include:
– Boost Mobile, 3726 State Avenue, Kansas City, Kan., Dec. 21, 2012.
– Dollar General, 2272 Quindaro, Kansas City, Kan., Dec. 25, 2012.
– Family Dollar, 1251 Central Avenue, Kansas City, Kan., Dec. 25, 2012.
– Quick Service gas station, 7959 State Avenue, Kansas City, Kan., Dec. 25, 2012.
– Boost Mobile, 7640 State Avenue, Kansas City, Kan., Dec. 26, 2012.
– Cricket store, 4635 Shawnee Drive, Kansas City, Kan., Dec. 27, 2012.
– Sally’s Beauty Supply, 5020 Roe Boulevard, Roeland Park, Kan., Dec. 28, 2012.
– Dollar General, 2801 S. 47th Street, Kansas City, Kan., Dec. 28, 2012.
– Family Dollar, 3129 State Avenue, Kansas City, Kan., Dec. 30, 2012.
According to a criminal complaint and affidavit, the first robbery at the Boost Mobile store occurred at about 1:14 p.m. Dec. 21 when Richard walked behind the counter, grabbed a clerk around the waist and demanded money. He gestured to her as if he had a gun in his jacket pocket. He fled the store with the money.In the second robbery at the Dollar General Store on Dec. 24, he walked behind the counter and pushed the clerk. The clerk stated she felt what she believed to be a gun that the robber shoved into her back. She said he threatened her, saying “Don’t look at me! Don’t turn around!”
On Jan. 1, 2013, officers of the Kansas City, Kan., Police Department stopped a 1997 red GMC pickup. The driver pulled over and then drove away when the officers approached the truck. A pursuit ended when the truck crashed and Richard was arrested.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
The Kansas City, Kan., Police Department investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Ramiro Gonzalez-Gonzalez, 41, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported and two counts of making a false claim of U.S. citizenship. He was found Jan. 18, 2013, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000 on the re-entry charge and a maximum penalty of three years and a fine up to $250,000 on each of the other counts. The Kansas Department of Revenue and ICE Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jeremy L. Smith, 41, Wichita, Kan. and Brandee L. Rimer, 31, Wichita, Kan., are charged in a superseding indictment with one count of possession of stolen mail, two counts of producing a false identity document, two counts of using an unauthorized credit card and three counts of aggravated identity theft. In addition, Smith is charged with one count of aggravated identity theft, one count of forging an endorsement on a savings bond and one count of possession of a false identification document with intent to commit fraud.
Upon conviction, the crimes carry the following penalties:
Possession of stolen mail: A maximum penalty of five years and a fine up to $250,000.
Production of false identity documents: A maximum penalty of 15 years and a fine up to $250,000 on each count.
Aggravated identity theft: A mandatory two years to run consecutive to any other sentence and a fine up to $250,000 on each count.
Using an unauthorized credit card: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Forging an endorsement on a bond: A maximum penalty of one year and a fine up to $100,000.
Possession of a false identification with intent to defraud: A maximum penalty of 15 years and a fine up to $250,000.The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Julius T. Williams, 33, Wichita, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction and six counts of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred Dec. 19, 2012, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 15 years and not more than life and a fine up to $250,000 on each count. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Indictment Unsealed on Plot to Intimidate WitnessRead the Press Release
Tulsa - United States Attorney Danny C. Williams, Sr. announced today the unsealing of an indictment with charges against four men and one woman for plotting to interfere with a federal witness. Christopher Aaron Charlton (age 30), Erin Elizabeth Mackool (age 26), William Lucas Mayberry (age 26), Charles August Hoffman (age 30) and David Bryce Brooner (age 37), all of Tulsa, are accused of conspiring to prevent a witness from communicating with federal law enforcement information concerning a violent crime. Documents filed in the case described possession of duct tape, zip ties and firearms for use with threats and intimidation to prevent the witness from communicating with authorities.
Additional charges against the men and woman were also filed for their illegal possession of firearms, including an unregistered sawed-off shotgun. The conspirators could receive prison sentences of up to thirty (30) years imprisonment with no parole if convicted of the plot to interfere with the witness.
U.S. Attorney Williams stressed that interfering with any witness, whether state or federal, is a serious offense that will result in lengthy sentences. Williams noted that the U.S. Attorney’s Office for the Northern District of Oklahoma cooperates fully with federal, state and local authorities to protect witnesses who come forward with information regarding criminal behavior. Agencies participating in the investigation include the Department of Homeland Security, the Tulsa Police Department and the Tulsa County District Attorney’s Office.
Indictments are a charging instrument and each defendant is presumed innocent until convicted of the charged crimes.
Illinois Man Sentenced to Two Years for Role in Credit Union CollapseRead the Press Release
An Illinois man who played a role in one of the largest credit union collapses in American history was sentenced to two years in prison, United States Attorney Steven M. Dettelbach said.
Bujar Sejdic, 33, Ottawa, Illinois, was also ordered to repay $1.6 million in restitution by U.S. District Judge Christopher Boyko.
Sejdic pleaded guilty last year to financial institution fraud, giving gifts for procuring loans and three counts of money laundering related to his activities at St. Paul Croatian Federal Credit Union, located in Eastlake, Ohio.
The credit union closed in 2010, costing the National Credit Union Share Insurance Fund more than $170 million.
Between January 2004 through March 2010, Sejdic obtained 25 loans totalling more than $1.6 million from SPCFCU. These loans were made fraudulently, under false and fraudulent pretenses, and many were made after Sejdic had already defaulted on previous loans, according to court documents.
He obtained these loans with the assistance of the credit union’s then-chief operating officer, Anthony Raguz. In return, Sejdic gave Raguz $40,000 in cash and one check, according to court documents.
Raguz is currently serving a 14-year prison sentence for his crimes related to the credit union’s collapse.
In 2009 and 2010, Sejdic wired $240,000 from his SPCFCU account to an account in Belgrade, Serbia, according to court documents.As a result of Sejdic’s actions, SPCFCU and the National Credit Union Association lost more than $1.6 million, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Eastlake Police Department.
Homero Varela Pleads Guilty to Federal Drug Trafficking and Financial CrimesRead the Press Release
ALBUQUERQUE – Homero Varela, 30, of Albuquerque, N.M., entered a guilty plea today to federal drug trafficking and money laundering offenses under a plea agreement that requires a sentence of 120 to 135 months in prison. Varela’s guilty plea was announced U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Joseph M. Arabit of the El Paso Field Division of the DEA, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Acting Special Agent in Charge Gabriel L. Grchan of the Phoenix Division of the IRS Criminal Investigation.
Varela was arrested on Jan. 26, 2012, on a 29-count federal indictment charging him and 14 co-defendants with drug trafficking, money laundering and currency structuring offenses. The indictment charged Varela and his 14 co-defendants with conspiracy to distribute cocaine, methamphetamine and marijuana in New Mexico between May 2011 and January 2012. It also charged Varela and two co-defendants with participation in a money laundering conspiracy. Varela also was charged with distributing methamphetamine, money laundering, and using a communications device to facilitate drug trafficking offenses. The indictment included provisions seeking forfeiture of property constituting, or derived from proceeds obtained from the defendants’ illegal drug trafficking and financial crimes.
This morning, Varela pled guilty to the following three counts of the indictment: Count 1, charging him with conspiracy to distribute controlled substances; Count 5, charging him with conspiracy to launder money; and Count 6, charging him with money laundering. In entering his guilty plea, Varela admitted using cellular telephones on a regular basis to facilitate the distribution of illegal drugs in and about Albuquerque and his money laundering activities.
In his plea agreement, Varela acknowledged the nature and extent of his drug trafficking activities by admitting that he distributed half a kilogram of methamphetamine to a DEA source in July 2011 and again in Sept. 2011. He also admitted facilitating the distribution of 244 kilograms of marijuana and 26 kilograms of cocaine in early Nov. 2011. The marijuana and cocaine were seized on Nov. 10, 2011, when law enforcement authorities arrested co-defendant Ramon Gonzales, Sr., as he was transporting the drugs. Varela also admitted that he and codefendant Roy Madrid arranged for others transport a large amount of currency to Mexico in July 2011. On July 22, 2011, law enforcement authorities seized $112,270 from individuals who were taking drug proceeds from Varela’s drug trafficking activities to Mexico.
Varela also acknowledged the nature and extent of his money laundering activities in his plea agreement. He also agreed to the imposition of a $150,000 money judgment and to forfeit his right and interest in his Albuquerque residence.
Varela remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
Thirteen of Varela’s co-defendants have entered not guilty pleas to the indictment and are pending trial; the 14th co-defendant, Manuel Villa-Mayorquin, has not been apprehended and is considered a fugitive. The charges in the indictment against Varela’s 14 co-defendants are only accusations, and they are presumed innocent unless proven guilty beyond a reasonable doubt.
The indictment in this case was the result of a multi-agency investigation into a major drug trafficking and money laundering organization operating out of the Albuquerque metropolitan area that was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
The case is being prosecuted by Assistant U.S. Attorney Reeve Swainston and was investigated by DEA, IRS and FBI with support from the New Mexico State Police, the Albuquerque Police Department and, the El Paso County Sheriff’s Office.
Gunnery Sergeant Pleads Guilty to Soliciting BribesRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today JULIO ARREOLA, 36, of Camp Lejuene, North Carolinapled guilty before Senior United States District Judge James C. Fox to demanding and seeking a bribe in violations of Title 18, United States Code, Sections 201(b)(2)(A) and (B).
U.S. Attorney Walker stated, “Corruption among staff non-commissioned officers in the military like ARREOLA’S undermines our ability to ensure that our service members in the field have the resources they need to fulfill our nation’s missions overseas.”
According to the Indictment filed on July 17, 2012 and information stated in open court, ARREOLA was a Gunnery Sergeant in the United States Marine Corps (USMC). From in or about February, 2008, and continuing to in or about September, 2008, ARREOLA was assigned to the I Marine Expeditionary Forces Headquarters Group (I MHG), Engineer Company, at Camp Fallujah, Iraq. During his deployment to Camp Fallujah, ARREOLA served as a non commissioned officer who supervised construction projects. In this capacity he obtained quotes from contractors, initiated purchase orders on behalf of the U.S. Government, and oversaw the delivery of supplies. ARREOLA would submit the quotes for approval through the military chain of command.
Sometime in or about June 2008, the exact date unknown, ARREOLA solicited a bribe from Davut Construction and Services Company, a company offering engineering, logistics, construction and life support services to the U.S. Government. Specifically, ARREOLA told a company representative that he, ARREOLA, would recommend to the Department of Defense that various items be purchased from Davut in return for cash payments. ARREOLA further told the representative that the cash payments could be generated from the manipulation of the contracting relationship to be established between Davut and the Department of Defense; that is, ARREOLA told the representative to generate the bribe money by having Davut inflate the costs in the proposed quote and/or deliver less than the items listed in the quote, and then give him, ARREOLA, the difference in price as a bribe.
A sentencing hearing is scheduled for the Court’s May 13th term of court. At sentencing, ARREOLA faces a total maximum sentence of 15 years imprisonment and/or a $250,000 fine, and 3 years of supervised release.
Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "It is disheartening when a military member abandons his code of conduct and violates a position of trust for personal enrichment. The DCIS investigates fraud and corruption that undermines the integrity of the Department of Defense. We continue to aggressively investigate violators to preserve precious American taxpayer dollars and better support our Warfighters serving honorably and selflessly in Southwest Asia."
The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service and the United States Naval Criminal Investigative Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Gregg County Man Sentenced for Identity Theft SchemeRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Longview, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Benjamin Rojas pleaded guilty on Oct. 9, 2012, to conspiracy to commit identity theft and was sentenced to 21 months in federal prison today by U.S. District Judge Michael H. Schneider. Rojas was also ordered to pay restitution in the amount of $20,293.93.
According to information presented in court, from January to May 2012, Rojas conspired with others to possess and use false identification documents and means of identification of others unlawfully. The scheme involved stealing mail from mailboxes in East Texas and using the information from the stolen mail to produce false Texas driver licenses, which appeared to be actual Texas temporary driver licenses. The fictitious driver licenses were used for identification when passing stolen checks, as well as counterfeit and forged checks, at various businesses in East Texas.
Co-defendant, Robin Watkins is scheduled to be sentenced on Mar. 7, 2013.
This case was investigated by the U.S. Secret Service, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Smith County Sheriff’s Office, the Tyler Police Department, the Tyler Police Department, and the Longview Police Department and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
####Fulton County Man Sentenced for Producing and Possessing Child PornographyRead the Press Release
Sentenced to 720 Months in Prison
Albany, New York — NATHAN BROWN, age 33, of Fulton County, New York, was sentenced today by Chief United States District Court Judge Gary L. Sharpe, in Albany to 720 months of imprisonment and a lifetime period of supervised release for producing and possessing child pornography still images and videos, announced United States Attorney Richard S. Hartunian and Nick DiNicola, Assistant Special Agent in Charge of Homeland Security Investigations (HSI) Albany. BROWN, who had entered guilty pleas on June 19, 2012, was also ordered to pay restitution to his victims, forfeit various computer equipment, have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between January 2010 and November 2011, BROWN produced still images and videos of three different children engaged in sexually explicit conduct. On March 9, 2012, pursuant to a federal search warrant, investigators searched BROWN’s residence and recovered several computers and smart phones. In addition to the child pornography images and videos actually produced by BROWN, over 150,000 still images and 1,500 videos containing child pornography, depicting children from throughout the nation, were recovered during the forensic examinations of the computer media seized.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the U.S. Department of Justice in May 2006 to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. The goal of Project Safe Childhood is to enhance the national response to the growing threat to America’s youth posed by online sexual solicitation, abuse, and child pornography.
As technology improves and the Internet becomes more vast and accessible, the number of computer-facilitated sexual crimes against children continues to grow. According to one recent study, one in seven children, ages 10 to 17, who are regular Internet users, are sexually solicited online. That statistic translates to millions of kids at risk, and it suggests that there are thousands of offenders whom we have not yet identified and brought to justice. In order to address this problem, the Department of Justice initiated Project Safe Childhood which includes the following five core elements:
1. The creation of integrated partnerships of federal, state, and local law enforcement to investigate and prosecute offenders and identify, rescue, and assist victims;
2. Participation of these partnerships in coordinated national initiatives to pursue evidentiary leads sent out as a result of national operations;
3. Increased federal involvement in child exploitation cases so that all the resources of the federal government are brought to bear to ensure that investigations of online child exploitation crimes are effectively conducted and that offenders receive optimal punishment for their crimes;
4. Training of federal, state, and local law enforcement to ensure that law enforcement keeps up with technological advances; and
5. Increased efforts to raise community awareness and educate the public about the dangers facing children from sexual exploitation and abuse facilitated by technology.U.S. Attorney Richard S. Hartunian noted that, in the Northern District of New York, the U.S. Attorney’s Office and its federal, state, and local law enforcement partners are actively pursuing the various aspects of the Project Safe Childhood initiative. According to Mr. Hartunian, “these prosecutions, arising from joint investigations by federal and local law enforcement authorities, reflect our deep commitment to work together to target sexual abusers and pornographers who prey on the most innocent and vulnerable of our society–our children.”
Nick DiNicola, assistant special agent in charge of the HSI office in Albany, the office that led the investigation of BROWN, noted that “protecting children from dangerous sexual predators is one of HSI's highest priorities. Even commercial child pornography is not a victimless crime. Such crimes prey on the most vulnerable and innocent segment of society – our children.”
This case was investigated by Homeland Security Investigations, with assistance from members of the New York State Police, the National Center for Missing & Exploited Children (NCMEC), Customs & Border Protection Air Branch in Plattsburgh, N.Y., and HSI’s Cyber Crimes Center (C3) in Fairfax, Virginia.
LOCAL CONTACT:
Thomas Spina Jr.
Assistant U.S. Attorney
Tel: (518) 431-0247Frederick Paul Deputee, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 29, 2013, before Chief U.S. District Judge Richard F. Cebull, FREDERICK PAUL DEPUTEE, JR., a 25-year-old resident of Hardin and an enrolled member of the Crow Tribe, pled guilty to theft from an Indian organization. Sentencing has been set for May 1. He is released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors, one of which was DEPUTEE, were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees - one of which was DEPUTEE - assigned to projects as a monitor.
In the Summer of 2011 - from June to August - DEPUTEE was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DEPUTEE's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who, as Director of the CTHPO, had assigned DEPUTEE and others as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DEPUTEE maintained that he was authorized by his aunt to work as a monitor on the site and denied knowing that the money paid by the companies were tribal fees which should have been deposited with the tribal government. His aunt had no supervisory role at the CTHPO. DEPUTEE was convinced - based on the assurances given to him by his aunt - that he could act, and was participating in the CTHPO activities, as an independent contractor role and also received payment directly from GCM. He admitted, however, that he did not work the hours for which he billed the company and acknowledged the wrongfulness of billing for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
I meet regularly with tribal officials on each of Montana's reservations, and at each meeting they ask this office to do more to put an end to corruption and theft in the administration of federal grants and programs. I take - and have taken - their pleas to heart when my office created the Guardians Project with just that mission in mind. The change of plea today represents just one of many, many steps this office will take to respond the concerns of our Indian communities for honesty and integrity in tribal government." Michael W. Cotter, United States Attorney for the District of Montana.
DEPUTEE faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
A copy of the Offer of Proof can be obtained by contacting Sally Frank at (406) 247-4638.
Frederick Paul Deputee, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 29, 2013, before Chief U.S. District Judge Richard F. Cebull, FREDERICK PAUL DEPUTEE, JR., a 25-year-old resident of Hardin and an enrolled member of the Crow Tribe, pled guilty to theft from an Indian organization. Sentencing has been set for May 1, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors, one of which was DEPUTEE, were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees - one of which was DEPUTEE - assigned to projects as a monitor.
In the Summer of 2011 - from June to August - DEPUTEE was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DEPUTEE's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who, as Director of the CTHPO, had assigned DEPUTEE and others as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DEPUTEE maintained that he was authorized by his aunt to work as a monitor on the site and denied knowing that the money paid by the companies were tribal fees which should have been deposited with the tribal government. His aunt had no supervisory role at the CTHPO. DEPUTEE was convinced - based on the assurances given to him by his aunt - that he could act, and was participating in the CTHPO activities, as an independent contractor role and also received payment directly from GCM. He admitted, however, that he did not work the hours for which he billed the company and acknowledged the wrongfulness of billing for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
I meet regularly with tribal officials on each of Montana's reservations, and at each meeting they ask this office to do more to put an end to corruption and theft in the administration of federal grants and programs. I take - and have taken - their pleas to heart when my office created the Guardians Project with just that mission in mind. The change of plea today represents just one of many, many steps this office will take to respond the concerns of our Indian communities for honesty and integrity in tribal government." Michael W. Cotter, United States Attorney for the District of Montana.
DEPUTEE faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
A copy of the Offer of Proof can be obtained by contacting Sally Frank at (406) 247-4638.
Fraudster Sentenced to 9 Years in Prison for Schemes to Obtain Maryland Unemployment Benefits, Defraud More than 10,000 Credit Card Holders and DirecTvRead the Press Release
Also Ordered to Pay Over $202,000 in RestitutionBaltimore, Maryland - U.S. District Judge Ellen L Hollander sentenced Amiee Arora, age 32, of Washington, D.C., today to nine years in prison, followed by three years of supervised release, for conspiracy to commit and committing credit/debit card fraud, and aggravated identity theft in connection with a series of fraud schemes. Judge Hollander also ordered Arora to pay restitution of $161,782.23 to the State of Maryland for fraudulent unemployment benefits paid to Arora and his co-conspirators, and $41,209.82 to the merchant to cover his losses in the credit card scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent-in-Charge Michael Barcus, U.S. Department of Labor-Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division. Mr. Rosenstein thanked the Maryland Department of Labor, Licensing and Regulation (DLLR) for its assistance in this investigation and prosecution.
According to his plea agreement, Arora was the sole director and resident agent of Top Of The Line Marketing, Inc. (TOTL Marketing) and co-defendant Vivek Jain worked for him. From February 14, 2010 through February 14, 2011, Arora and Jain used identifying information that they obtained through TOTL Marketing to fraudulently apply for Maryland unemployment benefits. Arora instructed Jain as to how to fraudulently apply for Maryland unemployment benefits, which DLLR, who administered unemployment benefit programs in Maryland, provided to applicants on prepaid debit cards. Once the fraudulent benefits were approved, Arora and Jain changed the mailing address for the debit cards to mailboxes that they rented, then used the cards to withdraw cash from ATM machines. On February 14, 2011, law enforcement officers in Georgia recovered 42 debit cards issued through the Maryland unemployment insurance program, from Jain’s car. Police officers also located several pages and a computer file containing the personal identifying information of approximately 1,200 Maryland residents from the Eastern Shore, Hagerstown, Baltimore and Gaithersburg. Arora had obtained the list of individuals from AV Wireless, a telecommunications business that he operated from 2004 through March 2009, and supplied the list to Jain for his use in the scheme.
Arora and Jain obtained more than 45 unauthorized debit cards worth more than $340,000 in fraudulent unemployment benefits as a result of the scheme.
Vivek Jain, age 27, of Gaithersburg, Maryland, pleaded guilty to his role in the unemployment scheme and is awaiting sentencing.
Credit Card Fraud Scheme
From May 2011 through about August 2011, Arora made fraudulent representations to a merchant, that he was marketing a shopping club membership for a fee of $9.95. Arora obtained the credit card information of more than 30,000 individuals, which he planned to use to charge the membership fee. The merchant agreed to allow Arora to use his credit card processing account to “test” approximately 18,000 credit card numbers, and to actually charge the membership fee more than 10,000 times. The merchant forwarded Arora an agreed upon percentage of funds he received from each transaction. Eventually, the credit card and other companies began reversing the fraudulent charges and the merchant ended up being charged more than $40,000 in chargeback fees.
Pretrial Release Violations
Arora was placed on pre-trial release on August 26, 2011, under rigorous conditions, including that he stay at his parents’ home on 24/7 electronic home monitoring and that he not use a computer or other electronic device to access the Internet. Despite this, Arora arranged with a third party to purchase a cellular telephone in another name and have the phone delivered covertly to the basement door of his parents’ home. In this way, he was able to continue a scheme to defraud DirecTV.
DirecTV Fraud Scheme
Under federal regulations, DirecTV and its dealers are forbidden from engaging in unsolicited telemarketing pitches. DirecTV dealers receive a $200 commission from each new DirecTV subscription. In November 2011, Arora and others agreed to sell DirecTV subscriptions through unsolicited telemarketing, which DirecTV dealers would submit as their own sales, splitting the $200 commission with Arora. Arora and a co-conspirator also assumed the identities of dormant DirecTV dealer accounts to submit subscriptions that they intended to sell through telemarketing, in order to keep the full commission themselves.
On December 8, 2011, federal agents arrested Arora and executed a search warrant at his parents’ home in Potomac and recovered the cell phone Arora had illegally obtained, thereby preventing Arora from fully carrying out the DirecTV fraud.
United States Attorney Rod J. Rosenstein praised the U.S. Department of Labor-Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the U.S. Postal Inspection Service for their work in the investigation and thanked the Maryland DLLR, District Attorney’s Office, Atlantic Judicial District in Liberty County, Georgia and the Darien, Georgia, Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Tamera L. Fine, who prosecuted the case.
Four Indicted in Tax Fraud SchemeRead the Press Release
TALLAHASSEE, FLORIDA B Kimberly Watson, 32, Malcolm Lipscomb, 35, Shavone Ricketts, 31, and Alfretta Jones, 37, all of Tallahassee, have been indicted for conspiracy to file false claims for more than $80,000 in federal tax refunds. The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
The indictment alleges that between June 2009 and September 2012, the defendants conspired to file false federal income tax returns that included fabricated wage, tax withholding, and tax credit information. When refunds were issued on the bogus returns, the conspirators had them deposited into their own bank accounts or placed onto pre-paid debit cards.
Watson, Lipscomb, and Ricketts are also charged with multiple counts of filing false claims, wire fraud, as well as aggravated identity theft, based on the unauthorized use of the personal identifying information of others.
The defendants have been arrested and are scheduled for trial on March 4, 2013, before United States District Judge Robert L. Hinkle.
If convicted of conspiracy, each defendant faces up to ten years in prison. Wire fraud carries a maximum sentence of 20 years in prison. The offense of filing false claims is punishable by five years in prison. Each count of aggravated identity theft carries a mandatory sentence of two years in prison, which must be served consecutively to any other sentence.
Jones is additionally charged with obstruction of justice, which carries a maximum sentence of ten years in prison, and with making false statements and perjury, each of which carries a maximum sentence of five years in prison.
U.S. Attorney Marsh commended the work of the Internal Revenue Service – Criminal Investigations, the Leon County Sheriff=s Office, and the United States Postal Inspection Service, whose joint investigation led to the indictment in this case.
- The case is being prosecuted as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
Assistant United States Attorney Corey J. Smith is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fort Lauderdale Woman Convicted in Identity Theft Tax Refund Fraud Scheme Involving the Filing of Approximately 2,000 Fraudulent Tax Returns Seeking $11 Million Dollars in RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announced yesterday’s conviction at trial of Alci Bonannee, 36 of Fort Lauderdale, of one count of conspiracy to defraud the government in violation of Title 18, United States Code, Section 286, nine counts of filing false claims in violation of Title 18, United States Code, Section 287, nine counts of aggravated identity theft in violation of Title 18, United States Code, Section 1028A, and fourteen counts of wire fraud in violation of Title 18, United States Code, Section 1343.
According to testimony and evidence presented at trial, the defendant was the primary perpetrator of an identity theft tax fraud scheme that operated from December 2010 to June 2012. During the course of the fraud scheme, there were approximately 2,000 fraudulent tax returns submitted to the Internal Revenue Service for payment seeking $11 million dollars in refunds. The Department of Treasury paid out several million dollars into bank accounts in the name of and controlled by the defendant and her co-conspirators. The defendant and her co-conspirators withdrew this money in cash.
According to testimony and evidence presented at trial, the defendant filed a large percentage of these fraudulent returns from her house in Fort Lauderdale, from her friends’ houses in Broward County and from a hotel in Charlotte, North Carolina. The defendant filed many of these fraudulent returns using compromised personal identification information obtained from a nurse at a local hospital.
Bonannee is scheduled to be sentenced on April 26, 2013. She faces a possible maximum prison sentence of 351 years.
Defendant’s co-conspirator, Chante Mozley, pled guilty to conspiracy to file fraudulent claims on January 9, 2013. Mozley faces a possible maximum prison sentence of 10 years. Sentencing is scheduled for March 28, 2013.
Defendant’s co-conspirator, Sonyini Clay, pled guilty to conspiracy to file fraudulent claims and aggravated identity theft on January 14, 2013. Clay faces a possible maximum prison sentence of 12 years. Sentencing is scheduled for April 26, 2013.
Mr. Ferrer commended IRS-CID and USSS for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Wilfredo Fernandez.
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.
Former USP Hazelton Inmate Convicted on Obstruction and Assault ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — A 42 year old Federal inmate was convicted on January 29, 2013, by a Clarksburg jury on six counts. The trial lasted six days, concluding late afternoon Tuesday afternoon. Judge Irene M. Keeley presided over the trial.
United States Attorney William J. Ihlenfeld, II, announced that: TARVIS LEVITICUS DUNHAM, a former inmate at the United States Penitentiary in Hazelton, West Virginia, was convicted on one count of “Obstructing Justice by Retaliating Against a Witness,” and five counts of “Assaulting, Resisting and Impeding Certain Officers or Employees of the Bureau of Prisons.”
Trial evidence indicated that on June 14, 2011, DUNHAM attempted to retaliate against a case manager for producing a record and document during disciplinary proceedings conducted by the Bureau of Prisons relating to an incident that occurred on November 8, 2010. DUNHAM forcibly assaulted the case manager and when other Correctional Officers attempted to restrain DUNHAM, he forcibly assaulted them by kicking and biting them. He also refused to comply with their orders before they were able to restrain and handcuff him. DUNHAM was transferred to another United States Penitentiary that same day. A week after the incident, the staff at USP Lee recorded a telephone call between DUNHAM and his mother where DUNHAM told his mother that he “about near killed that woman.”
DUNHAM, who is in custody where he is currently serving a 318-month sentence, faces up to 89 years imprisonment and a $1,350,000 fine.
This case was prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Federal Bureau of Investigation and the Special Investigative Services Unit at USP Hazelton.
Former Town Creek Police Officer Indicted for Using Excessive ForceRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former Town Creek police officer for violating an individual’s civil rights during the course of an arrest, announced U.S. Attorney Joyce White Vance, Assistant Attorney General Thomas E. Perez, chief of the Department of Justice’s Civil Rights Division, and FBI Special Agent in Charge Richard D. Schwein Jr.
The indictment filed in U.S. District Court charges BRANDON SHANE MUNDY, 32, of Oxford, with striking a man with a dangerous weapon and causing bodily injury during the man’s November 2009 arrest in Town Creek, a small northern Alabama town. Mundy’s action deprived the man, identified as J.T., of the constitutional right to be free from the use of unreasonable force by someone acting under the color of law, according to the indictment.
If convicted, Mundy could face a maximum sentence of 10 years in prison and a $250,000 fine. An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The FBI is investigating the case, and it is being prosecuted by Assistant U.S. Attorney Elizabeth Holt and Justice Department Civil Rights Division Trial Attorney Daniel H. Weiss.
Former President and Executive Director of Vanguard Public Foundation Sentenced to 40 Months in Prison for Fraud and Money LaunderingRead the Press Release
SAN FRANCISCO – Hari J. Dillon, the former President and Executive Director of the Vanguard Public Foundation, was sentenced today to 40 months in prison for diverting funds directed for the benefit of the Vanguard Public Foundation to his own purposes, United States Attorney Melinda Haag announced.
Dillon pleaded guilty in July 2010 to wire fraud and money laundering. According to the plea agreement and trial testimony in United States v. Samuel “Mouli” Cohen (CR 10-0547 CRB), Dillon met Mouli Cohen (aka Samuel Cohen) in approximately August 2002. Cohen presented Dillon with an investment opportunity through which Dillon and others associated with the Vanguard Public Foundation – a non-profit charitable organization – could purchase Cohen’s founder’s shares in his company, Ecast, which Cohen falsely claimed was soon to be acquired by Microsoft. According to Cohen, this would allow Dillon, Vanguard donors, and Vanguard to reap substantial profits after the acquisition of Ecast.
From late 2002 through mid-2003, individuals associated with Vanguard, including Dillon, paid more than $6 million to Cohen to purchase some of Cohen’s founder’s shares in Ecast. During the ensuing years, Cohen claimed the acquisition was suffering various delays by United States and European regulators, and that the investors had to pay additional bonds and fees to maintain their stake in the deal. From approximately late 2004 through 2007, individuals associated with Vanguard contributed more than an additional $25 million purportedly to cover these fees. In fact, there never was any such acquisition.
Dillon admitted that while soliciting and collecting these fees, he defrauded various victims by intentionally failing to tell them that he intended to and did use some of their contributions for his own personal expenses. For example, according to his plea agreement, Dillon used approximately $60,000 to pay his American Express bills. In addition, the government noted in connection with sentencing that Dillon used victim money toward luxury hotel expenses, fine dining, limousine travel and other personal expenses. In all, Dillon admitted that of the tens of millions he solicited and collected for this investment, most of which he passed on to Cohen, Dillon skimmed not less than $2.5 million, defrauding his victims out of that amount.
Dillon, 64, formerly of San Francisco, was charged by Information in June 2010. He was charged with two counts of wire fraud and two counts of money laundering. He pleaded guilty to all four counts.
In November 2011, after a one-month trial, a federal jury convicted Samuel “Mouli” Cohen of 15 counts of wire fraud, 11 counts of money laundering, and 3 counts of tax evasion. Dillon testified at that trial. In April 2012, Cohen was sentenced to 264 months in prison. He is currently in custody, and he has appealed his convictions and sentence.
The sentence was handed down by United States District Court Judge Charles R. Breyer. Judge Breyer also sentenced Dillon to a three-year period of supervised release following his prison term. The parties are scheduled to appear before Judge Breyer on Feb. 19 to discuss a date for Dillon to surrender to serve his prison sentence.
Hallie Hoffman and Doug Sprague are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth and Beth Margen. The prosecution is the result of a one-year investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation.
Former Postal Service Employee Indicted for Fraud in Travel ExpensesRead the Press Release
Former Postal Service Employee Indicted for Fraud in Travel Expenses
BIRMINGHAM – A federal grand jury today indicted a former U.S. Postal Service employee for a wire fraud scheme in which he falsified electronic travel vouchers totaling more than $30,000, announced U.S. Attorney Joyce White Vance and Postal Service Office of Inspector General Assistant Special Agent in Charge Christopher Nugent.
The indictment filed in U.S. District Court charges BOBBY W. BRUCE JR., 36, of Gadsden, with submitting 39 false expense vouchers through the Postal Service’s electronic travel expense system. Bruce sought mileage reimbursement between January 2012 and October 2012 for official travel that he never took, according to the indictment. Once the fictitious expense claim was submitted, Bruce used his manager’s computer login information to approve the voucher, the indictment says.
The Postal Service Finance and Account Center in Minnesota approved the falsified vouchers and paid $31,126 as mileage reimbursement into Bruce’s credit union account in Gadsden, according to the indictment.
The indictment seeks to have Bruce forfeit that amount as proceeds of illegal activity.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The U.S. Postal Service Office of Inspector General investigated the case, which Assistant U.S. Attorney Terence M. O’Rourke is prosecuting.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Former Postal Employee Pleaded Guilty to $265,000 FraudRead the Press Release
A former employee of the United States Postal Service pleaded guilty to fraudulently collecting approximately $265,000 in benefits by exaggerating her medical condition and other acts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Robert LaPina, Special Agent in Charge for the U.S. Postal Service Office of Inspector General.
Melissa Scherz Leist, age 37, of Coshocton, and formerly of Sandusky, pleaded guilty to one count of fraud in the obtaining of Federal Employee’s Compensation Act (FECA) benefits.
Leist is scheduled to be sentenced on May 20. She resigned from the Postal Service prior to her plea.
Leist fraudulently exaggerated her medical condition and limitations, fraudulently rejected limited duty job offers by the United States Postal Service, falsely represented her physical abilities and range of activities and deliberately concealed activities which would have made her ineligible for disability benefits, all for the purpose of fraudulently obtaining FECA benefits in excess of $265,000, according to court documents.
“The majority of postal employees who collect compensation benefits have legitimate claims due to on-the-job injuries and are truly unable to perform any postal jobs,” LaPina said. “A small percentage, however, abuse the system and cost the Postal Service millions of dollars in fraudulent claims. This guilty plea should put those employees who choose to abuse the system on notice that USPS OIG agents will vigorously investigate worker compensation fraud and will seek criminal prosecution and termination of their job and benefits when appropriate.”
The case is being prosecuted by Assistant United States Attorney Thomas A. Karol following an investigation by the United States Postal Service, Office of Inspector General.
Former Philadelphia Police Officer Sentenced for Role in Steroid Distribution CaseRead the Press Release
PHILADELPHIA - Joseph McIntyre, 38, of Philadelphia, was sentenced today to six months incarceration for his role in a conspiracy to illegally distribute anabolic steroids. McIntyre, a former Philadelphia Police Officer, was charged in an indictment that named 14 others including fellow officers Keith Gidelson and George Sambuca. McIntyre pleaded guilty, August 24, 2011, to conspiracy, possession with intent to distribute anabolic steroids, and possession with intent to distribute anabolic steroids.
The indictment charged Gidelson with operating the anabolic steroid distribution organization in Philadelphia and throughout the United States, acquiring steroids from foreign suppliers and then selling the steroids to his co-conspirators who distributed to their own customers. McIntyre bought the steroids from Gidelson for his own use and to distribute to others. Numerous intercepted calls and text messages between the men demonstrate that McIntyre discussed with Gidelson the acquisition of steroids from Gidelson’s suppliers; the acquisition from Gidelson of specific types of anabolic steroids for McIntyre’s customers; and the use and effects of the steroids Gidelson and McIntyre were distributing. In many of these intercepted calls and text messages, McIntyre discussed acquiring steroids for people who worked at a local night club.
In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered three years of supervised release, a $300 special assessment, and ordered McIntyre to pay a fine of $10,000.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Philadelphia Police Department, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney David L. Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Former Michigan Supreme Court Justice Diane Marie Hathaway Pleads Guilty to Bank FraudRead the Press Release
Press Conference - Former Michigan Supreme Court Justice Diane M. Hathaway
Diane M. Hathaway, a former Michigan Supreme Court Justice, pleaded guilty today to committing bank fraud in connection with a property owned at 15834 Lakeview Court, Grosse Pointe Park, Michigan, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge Robert D. Foley, III of the Federal Bureau of Investigation ("FBI"), and Michigan Attorney General, Bill Schuette.
During a hearing this morning before United States District Judge John Corbett O’Meara, Hathaway, 58, of Grosse Pointe, Michigan, admitted that between 2010 and 2011 she knowingly engaged in a scheme to defraud ING Direct bank by concealing assets from the bank to qualify for a “short sale.” A short sale is a forgiveness of debt by the bank to a borrower who claims financial hardship.
Based on her guilty plea and felony conviction for committing bank fraud Hathaway is facing a maximum of thirty years in prison, a fine of up to $1,000,000 and up to five years of supervised release.United States Attorney McQuade said, "We have made mortgage fraud a priority in this district because of the harm this crime causes to our housing markets in the aggregate. Homeowners who play by the rules should know that those who don't will be held accountable, no matter who they are."
Robert Foley, Special Agent in Charge of the FBI said, "Regardless of a person's stature or position in life, we must all follow the same set of rules. In this case, an individual in a prominent position of public trust made extremely poor choices that have resulted in criminal activity. The FBI is committed to stopping these illegal acts."
Michigan Attorney General Bill Schuette said, “"Public corruption scandals have damaged the public's trust in government and tarnished our state's reputation. But today, we begin to move forward, beyond the cloud of controversy that hung over our state's Supreme Court. I appreciate the hard work of U.S. Attorney Barbara McQuade and FBI Special Agent In Charge Bob Foley, who brought this case to a swift and just end."
This case was investigated by the FBI with assistance from Michigan Attorney General’s Office.Former Little Rock Diagnostic Clinic Nurse Pleads Guilty to Aiding and Abetting Ceo in Obtaining Hydrocodone by FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Drug Enforcement Administration Assistant Special Agent in Charge William J. Bryant announced Catherine L. Minor waived indictment and pled to a felony information charging her with one count of aiding and abetting James Derek Johnston to obtain hydrocodone by fraud.
Although hydrocodone abuse is rising among all ages and across all ethnic and socioeconomic groups, it has been called the ‘white-collar’ addiction because so many professionals have become caught in its trap,” stated Thyer. “Prescription drug abuse knows no boundaries. Its effect on careers and lives is devastating. If someone you know is involved in the abuse of prescription drugs, educate yourself, talk to them, take them to a substance abuse program, and seek medical advice. You can help prevent a loved one or co-worker from losing their career and you must might save their life.”
According to the felony information, Minor, age 62, who was employed as a nurse, aided and abetted James Derek Johnston, age 42, to knowingly and intentionally obtain hydrocodone, a Schedule III narcotic controlled substance, on or about February 8, 2012, when she submitted a false prescription for the drug to a pharmacy in Johnston’s name, when in fact, no such prescription had been issued or authorized by a physician with DEA prescribing authority.
At the hearing held today before United States District Judge J. Leon Holmes, Minor admitted that she worked as a nurse at Little Rock Diagnostic Clinic for 15 years, and retired in late 2012. She admitted that in approximately 2007, James Derek Johnston, who was employed at the clinic as Chief Executive Officer, began to request that she call in or fax prescriptions for hydrocodone in his name to a number of different pharmacies in the Little Rock area. While Johnston had received hydrocodone prescriptions legitimately from a physician at Little Rock Diagnostic Clinic in the past, the prescriptions Minor submitted for Johnston between approximately 2007 and July 2012 were submitted without the knowledge or consent of any prescribing physician at Little Rock Diagnostic Clinic or elsewhere.
According to the factual summary offered by the Assistant United States Attorney at the hearing, during the time frame in which the fraud occurred, Minor called in or faxed approximately 200 fraudulent hydrocodone prescriptions in Johnston’s name, allowing Johnston to obtain approximately 25,000 pills.
Johnston, who is no longer employed by Little Rock Diagnostic Clinic, waived indictment and pled guilty on December 18, 2012, to a felony information charging him with one count of obtaining hydrocodone by fraud.
The maximum statutory penalty for aiding and abetting another to obtain a controlled substance by fraud is 4 years imprisonment, a fine of $250,000, and one year of supervised release. Sentencing for both Minor and Johnston will be set at a later date to be determined by the Court.
LRDC was fully cooperative with federal authorities in the investigation, and the investigation did not reveal any evidence that compromised any patient information or identities.
This investigation was conducted by the newly formed Tactical Diversion Squad at the DEA Little Rock District Office, whose main priority is to investigate individuals involved in the diversion of Prescription Drugs. DEA special agents, DEA diversion investigators, United States Secret Service agents and task force officers from the Little Rock Police Department participated in this investigation. The case was prosecuted by Assistant United States Attorneys Patricia S. Harris and Kristin Bryant.