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14 March 2013
Guilty Verdict Returned in South Bend District CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- United States Attorney David Capp announced:
Yulia Yurevna Abair, 43, of South Bend, Indiana, was found guilty at trial on all eight counts of an Indictment charging her with structuring transactions to evade reporting requirement.According to documents filed by the government in this case, structuring includes breaking down a single sum of currency over $10,000 into smaller sums, or conducting a series of cash transactions all at or below $10,000, with the purpose of evading currency transaction reporting requirements. These charges were filed as the result of an investigation by the Internal Revenue Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald Schmid.
Gregg County Man Sentenced for Dealing MethamphetamineRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 49-year-old Kilgore, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Brett Bates pleaded guilty on Mar. 14, 2012, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, up until May 27, 2011, Bates conspired with other individuals to acquire and distribute methamphetamine in the Gregg County area of East Texas. Bates admitted to being responsible for the distribution of more than 150 grams of methamphetamine during this time. Bates was named in a federal indictment returned by a grand jury on Nov. 2, 2011.
Five of Bates’ co-defendants have also been sentenced. Terri Rhea Young received a sentence of 24 months in federal prison on July 23, 1012. David Christopher Wheeler and Raelene Dawn Ferguson were each sentenced to 46 months in federal prison on July 20, 2012. Matthew Dean Willis was sentenced to 15 months in federal prison on June 12, 2012. Harold Burgess Dickens received a 210 month sentence on Jan. 10, 2013.
This case was investigated by the DEA, Rusk County Sheriff’s Office and Kilgore Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Greece Woman indicted for supplying guns used in christmas eve shootingRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester returned a three-count indictment charging Dawn Nguyen, 24, of Greece, N.Y., with knowingly making a false statement in connection with the purchase of firearms; selling and disposing of firearms to William Spengler, a known felon; and possession of firearms while being an unlawful user of marijuana. The indictment involves firearms that were used in the Christmas Eve shooting that resulted in the deaths of Webster Police Lt. Michael Chiapperini and Firefighter Tomasz Kaczowka, and seriously injured Firefighters Theodore Scardino and Joseph Hostetter. Each charge carries a maximum penalty of 10 years in prison, a fine of $250,000.00, or both.
Assistant U.S. Attorney Bret A. Puscheck, who is handling the case, stated that according to the indictment, on June 6, 2010, Nguyen made false statements during the purchase of a Bushmaster semiautomatic rifle and a Mossberg 12 gauge shotgun from Gander Mountain in Henrietta, N.Y., in order to acquire the firearms on behalf of William Spengler, Jr. The indictment further alleges that the defendant gave the firearms to William Spengler with the knowledge that he was a convicted felon. The indictment also alleges that Nguyen herself unlawfully possessed the firearms at a time when she was an unlawful user of marijuana.
“While there is no allegation that this defendant was aware that William Spengler would kill two first responders, and seriously injure two others, the fact remains that the defendant stands accused of providing the guns that Spengler used for these purposes,” said U.S. Attorney Hochul. “Given the serious nature of these charges, our Office will push to prosecute this defendant as expeditiously as possible. This case should serve as a warning to any individual who attempts to facilitate the actions of a criminal that you too will be vigorously prosecuted to the fullest extent of the law.”
The indictment is the culmination of an investigation on the part of the Webster Police Department, under the direction of Chief Gerald Pickering, the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Joseph Anarumo, the New York State Police, under the direction of Major Mark Koss, and the Monroe County Sheriff’s Department, under the direction of Sheriff Patrick O’Flynn.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Gordonsville Man Indicted on Drug ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A Gordonsville man was recently indicted by a Federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville on charges related to the manufacturing of methamphetamine.
On February 27, the grand jury charged Jerry Richard Blackwell, 43, of Gordonsville, Va., with one count of conspiring to manufacture, to possess with the intent to distribute and to distribute over 50 grams of methamphetamine, one count of possessing pseudoephedrine with the intent to manufacture methamphetamine and one count of manufacturing methamphetamine while creating a substantial risk of harm to human life.
The investigation of the case was conducted by the Blue Ridge Narcotics and Gang Task Force and the Drug Enforcement Administration. Special Assistant United States Attorney Robert Abendroth is prosecuting the case for the United States.
At sentencing, Blackwell faces a sentence of 10 years to life in prison and/or a fine of up to $10,000,000 on count one, a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000 on count two and a maximum possible penalty of up to 10 years in prison and/or a fine of up to $250,000 on count three.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Fort Myers Man Pleads Guilty to Bank Fraud and Investor FraudRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces that Gregory Wayne Eagle (62, Cape Coral) pleaded guilty today to four counts of bank fraud, one count of mail fraud, and one count of wire fraud. Eagle faces a maximum penalty of 30 years in federal prison on each of the six counts, and a fine of up to $1 million. He will also be ordered to pay restitution to his victims.
According to the plea agreement, Eagle was president and director of Eagle Realty of Southwest Florida, Inc. In June 1990, Eagle created a Trust Agreement for approximately 101 acres of unimproved land in Cape Coral. A portion of this land bordered on Pine Island Road. Eagle was the trustee of this Pine Island 101 Land Trust and was also one of the beneficiaries. There was a total of 52 named combined interest holders or beneficiaries of the land trust. Eagle mortgaged the trust property without the knowledge of the other beneficiaries. He did so by submitting fraudulently altered trust agreements to multiple banks naming him, or an entity which he controlled, as the sole beneficiary.
Eagle also executed a number of loan documents in which he falsely claimed he was the sole beneficiary and that he had authorization to mortgage the property. In the first mortgage loan in 2002, Eagle received $2 million from Florida Community Bank. He paid off that loan in 2006 with a mortgage loan from First National Bank of Pennsylvania. The 2006 loan was for an amount exceeding $17 million. Eagle used most of the proceeds of the second loan for his own personal use, mainly to fund other projects.
Eagle defaulted on the First National Bank of Pennsylvania mortgage loan, causing the bank to initiate foreclosure proceedings in October 2009. The unpaid principal balance is $17.03 million. The beneficiaries to the Pine Island 101 Land Trust have not received compensation for their initial payments as interest holders, yearly mortgage, taxes, insurance, and administrative payments, nor for the increase in the value of the Trust property from the time the Trust was created in June 1990.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Web Producer Indicted in California for Conspiring with “Anonymous” Members to Attack Internet News SiteRead the Press Release
A former web producer for a Tribune Company-owned television station in Sacramento, Calif., was charged today in an indictment for allegedly conspiring with members of the hacker group “Anonymous” to hack into and alter a Tribune Company website, the Justice Department announced.
Matthew Keys, 26, of Secaucus, N.J., was charged in the Eastern District of California with one count each of conspiracy to transmit information to damage a protected computer, transmitting information to damage a protected computer and attempted transmission of information to damage a protected computer.
Keys was employed by Sacramento-based television station KTXL FOX 40, as its web producer, but was terminated in late October 2010.
The three-count indictment alleges that in December 2010 Keys provided members of the hacker group Anonymous with log-in credentials for a computer server belonging to KTXL FOX 40’s corporate parent, the Tribune Company. According to the indictment, Keys identified himself on an Internet chat forum as a former Tribune Company employee and provided members of Anonymous with a login and password to the Tribune Company server. After providing log-in credentials, Keys allegedly encouraged the Anonymous members to disrupt the website. According to the indictment, at least one of the computer hackers used the credentials provided by Keys to log into the Tribune Company server, and ultimately that hacker made changes to the web version of a Los Angeles Times news feature.
The indictment further alleges that Keys had a conversation with the hacker who claimed credit for the defacement of the Los Angeles Times website. The hacker allegedly told Keys that Tribune Company system administrators had thwarted his efforts and locked him out. Keys allegedly attempted to regain access for that hacker, and when he learned that the hacker had made changes to a Los Angeles Times page, Keys responded, “nice.”
Each of the two substantive counts carry a maximum penalty of 10 years in prison, three years of supervised release and a fine of $250,000. The conspiracy count carries a maximum penalty of five years in prison, three years of supervised release and a fine of $250,000.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Sacramento and Los Angeles Field Offices of the FBI. The case is being prosecuted by the Criminal Division’s Computer Crime and Intellectual Property Section and the U.S. Attorney’s Office for the Eastern District of California.Former Tulsa Public Schools Athletic Director Pleads Guilty to Theft of School District FundsRead the Press Release
Tulsa, Oklahoma – Today, STEPHANIE SPRING, 45, from Tulsa, Oklahoma, pled guilty to theft of funds from the Tulsa Public School district before United States District Judge John E. Dowdell at the Page Belcher Federal Courthouse in Tulsa, Oklahoma, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Spring is the former Athletic Director of the Tulsa Public Schools, a recipient of federal funds from the U.S. Department of Education. It is alleged that during 2011, while serving as Athletic Director, Spring rented certain school facilities and misappropriated rental proceeds by depositing those funds into her own personal account.
Today, Spring entered a guilty plea and agreed that she owes $92,218.72 in restitution to the Tulsa Public Schools.
At sentencing, Spring faces up to ten years in federal prison, a fine of up to $250,000 and mandatory restitution. A sentencing date will be set by the Court.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Vicki Zemp Behenna.
Former Thurman, Iowa Resident Pleads Guilty to Fraud ChargesRead the Press Release
COUNCIL BLUFFS, IA - On March 12, 2013, 54 year old Robert W. Duncan, formally a resident Thurman, Iowa, entered guilty pleas to defrauding the Social Security Administration, filing a false income tax return and making a false statement to a financial institution.
Duncan, the former owner and auctioneer for Bob Duncan and Associates, admitted during the plea proceeding that he had defrauded the Social Security Administration of between $200,000 and $400,000 by receiving benefits he was not entitled to between 1993 and 2011. Duncan also admitted that he had caused to be filed a false 1040 tax form for tax year 2008 by under-reporting his income, and that he had provided false financial documents to Treynor State Bank to obtain a $225,000 loan in 2005.
Duncan faces a potential sentence of up to thirty years in prison, $1,000,000 in fines, and five years of supervised release. Sentencing is currently set for June 11, 2013, in Council Bluffs, Iowa.
The investigation was conducted by the Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, the Mills County, Iowa, Sheriff’s Office, the Internal Revenue Service-Criminal Investigation, the Social Security Administration-Office, of the Inspector General, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Former Rosedale Resident Convicted of Robbing a Business Resulting in the Death of the Business OwnerRead the Press Release
Baltimore, Maryland - After a five day bench trial, U.S. District Judge William D. Quarles, Jr., convicted Pedro Rodriguez Garcia, age 34, formerly of Rosedale, Maryland, late yesterday of conspiring to commit an armed commercial robbery on July 29, 2009, armed robbery and brandishing a gun during a crime of violence.
The verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore City Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Maryland Attorney General Douglas F. Gansler.
“Superb law enforcement coordination brought the defendant to justice for the armed robbery that resulted in the tragic death of Constantine Frank,” said U.S. Attorney Rod J. Rosenstein.
“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said Niall Meehan, Special Agent in Charge of the Washington Field Office of the Diplomatic Security Service.
According to evidence presented at the trial, Garcia participated in a robbery planned by Nikolaos Mamalis. Mamalis recruited Garcia, Daniel Chase and others to rob Constantine Frank, the owner of Precision Vending located on S. Lakewood Avenue in Baltimore. Mamalis knew the owner socially and from prior business dealings, and he was familiar with the physical layout and security at Precision Vending from previous visits with Mr. Frank. On July 29, 2009, after Mamalis advised his co-conspirators that Mr. Frank was alone inside, Garcia and Chase entered the business disguised as package delivery men. Chase took out a gun from a false package they had brought inside, brandished the weapon and then gave it to Garcia who used the gun to hold Mr. Frank captive. The two robbers also used zip-ties and duct tape to restrain the victim while Chase searched the business for cash, stealing over $11,000. Knowing that Mr. Frank would recognize him, Mamalis waited outside the building and received periodic reports from Chase using prepaid wireless phones which Mamalis and a co-conspirator had previously purchased.
The robbers left Mr. Frank bound, knowing that he was sweating profusely and in obvious discomfort. Shortly after leaving, Chase called one of Mr. Frank’s other businesses and said: “Your boss is in his office, and he is not doing so good.” Mr. Frank had suffered a stroke by the time officers found him conscious, but still in physical restraints and unable to speak. Mr. Frank was listed in critical condition when he arrived at the hospital and died less than two weeks later on August 11, 2009. The autopsy concluded that the cause of death was an intra-cerebral hemorrhage associated with stress resulting from the robbery and ruled the death a homicide.
After Mr. Frank’s death, Garcia fled the country and was captured by agents from the U.S. Border Patrol two years later.
Garcia was convicted of conspiracy, commercial robbery, and a corresponding firearms charge, and faces a mandatory minimum sentence of 57 years in prison and a maximum of life in prison. Judge Quarles has scheduled sentencing for June 18, 2013 at 1:00 p.m.
Nikolaos Mamalis, age 56, of Edgewood, Maryland, was sentenced to 77 years in prison, for conspiracy, three counts of commercial robbery and three corresponding firearms charges in connection with the Precision Vending robbery and two home invasion robberies in Maryland. Mamalis was convicted by a federal jury on February 3, 2011. Daniel Chase, age 67, of Browns Mill, New Jersey; pleaded guilty to his participation in a series of robberies planned by Mamalis and was sentenced to 141 months in prison.
United States Attorney Rod J. Rosenstein thanked: the Federal Bureau of Investigation; Baltimore City Police Department; Baltimore County Police Department; New Jersey State Police; the Baltimore City State’s Attorney’s Office; Baltimore County State’s Attorney’s Office; and U.S. Department of State’s Diplomatic Security Service, for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Debra L. Dwyer and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.
Former IRS Worker, Two Others Convicted of Tax Refund SchemeRead the Press Release
PHILADELPHIA - Former Internal Revenue Service employee Patricia Fountain, 35, Larry Ishmael, 40, and Calvin Johnson, Jr., 35, all of Philadelphia, PA, were found guilty yesterday of committing a series of tax refund schemes that defrauded the U.S. Government. A federal jury found each of the three defendants guilty of multiple counts of both conspiracy and filing false claims/tax returns to the IRS. For abusing her public office, Fountain was also found guilty of extortion. Johnson, Jr. was also found guilty of filing false claims while he was on pretrial release. Collectively, the defendants’ schemes cost the IRS well over $1 million.
Each of the defendants solicited claimants whose personal information the defendants used to file false tax returns claiming the Telephone Excise Tax Refund (TETR) in 2007 and the First Time Homebuyer Credit in 2009. Fountain also claimed the TETR by filing false tax returns for herself and for Ishmael, and used one of the claimant’s information to file a false tax return in 2008. Johnson, Jr. also used claimants’ information to file false tax returns in 2012, while he was being supervised on pretrial release in this case.
For each of the schemes, which Fountain engineered using inside information from the IRS, the defendants charged claimants a cash fee. With respect to her TETR scheme, Fountain warned that she would “red flag” those claimants who did not pay her a $400 fee. She then filed amended returns for those whom she believed had not paid the fee, causing the IRS to demand payment from certain claimants who had previously received TETRs. Fountain and Ishmael pooled their cash fees for their mutual use, including an $11,299 down payment on a Mercedes Benz R350, which Fountain structured by paying $9,900 in cash and charging the rest to a credit card.
Sentencing hearings for the defendants are scheduled for Fountain and Ishmael for June 17, 2013. Johnson’s sentencing hearing is scheduled for June 18, 2013. Pending sentencing, Ishmael and Johnson are being detained in federal custody and Fountain is being supervised on home detention. Fountain faces an expected advisory sentencing guideline range of 188 to 235 months in prison; Ishmael faces an expected advisory sentencing guideline range of 78 to 97 months; Johnson, Jr., faces an expected advisory sentencing guideline range of 108 to 135 months in prison. The defendants could also be ordered to pay restitution to the IRS, and fines, in addition to the mandatory special assessments. Co-defendants Andre Bruce, Howard Chilsom, William Martin, and Calvin Johnson, Sr. previously pleaded guilty.
The case was investigated by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Joe Khan and Department of Justice, Tax Division Trial Attorney Tiwana L. Wright.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Cfo of Westport Hedge Fund Sentenced to 41 Months in Prison for Embezzling More Than $1 MillionRead the Press Release
March 14, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that DARRIN FOSTER, 46, formerly of the Bronx, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for embezzling more than $1 million from his Connecticut employer.
According to court documents and statements made in court, FOSTER worked as the Chief Financial Officer for a hedge fund based in Westport. As CFO, FOSTER had access to his employer’s bank accounts, was authorized to make business-related charges on the corporate American Express card and was entrusted to pay the American Express bill. From approximately September 2004 to July 2010, FOSTER made thousands of unauthorized charges for personal expenses on his employer’s American Express account. He then arranged for telephonic payments of his unauthorized charges to be made from the hedge fund’s bank accounts.
Through this scheme, FOSTER made a total of $1,093,856.20 in unauthorized personal charges.
FOSTER was arrested by the New York State Police in Yonkers on May 27, 2012. On October 16, 2012, he pleaded guilty to one count of wire fraud.
This matter was investigated by the United States Secret Service and was prosecuted by Assistant United States Attorney Susan Wines.
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(203) 821-3722 [email protected]Federal Court Permanently Bars Michigan Woman from Preparing Tax Returns Claiming the Earned Income Tax CreditRead the Press Release
A federal court has permanently barred Crystal Ireland, of Detroit, who does business as Master Mind Preparation, from preparing federal tax returns that claim the earned income tax credit, the Justice Department announced today. The civil injunction order, to which Ireland consented, was signed by Judge Bernard Friedman of the U.S. District Court for the Eastern District of Michigan.
The complaint in the case alleged that Ireland failed to comply with due diligence requirements imposed by federal law on tax preparers who claim the earned income credit on customers’ returns. According to the complaint, Ireland fabricated businesses and reported fake business income on her customers’ tax returns in order to claim the maximum credit for them.
The complaint alleged that the Internal Revenue Service penalized Ireland in 2010 for failing to comply with federal law due diligence requirements, yet a 2011 follow-up investigation revealed ongoing failures and fraudulent claims. According to the complaint, Ireland prepared at least 2,300 returns from 2008 through 2011, with unusually high refund rates ranging from 97 to 99 percent for those years.
The permanent injunction order also bars Ireland from preparing forms Schedule C on which she knowingly fabricates income or expenses, preparing tax returns on which she knowingly claims a dependent that does not actually qualify as a dependent of the taxpayer, and preparing tax returns on which she fails to identify herself as the paid preparer or falsely identifies someone else as the paid preparer.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Crystal E. Ireland, etc.
Order of Permanent Injunction Against Crystal E. Ireland (PDF)Farmington Man Pleads Guilty to Methamphetamine Trafficking and Firearms ChargesRead the Press Release
Plea Agreement Requires Defendant to Serve 17 Year Prison SentenceALBUQUERQUE – Lindsey Joe Brown, II, 40, of Farmington, N.M., pled guilty this morning to methamphetamine trafficking and firearms charges under a plea agreement that requires him to serve a17 year prison sentence. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, District Attorney Rick P. Tedrow for the 11 th Judicial District of the State of New Mexico in San Juan County, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Lt. Neil Haws, Director of the Region II Narcotics Task Force.
Brown was indicted in March 2012 and charged with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, and using a firearm in relation to a drug trafficking crime. According to the indictment, Brown committed these crimes in San Juan County, N.M., in Oct. 2011. Brown was arrested on April 5, 2012, and has been in federal custody since that time.
This morning, Brown pled guilty to possession of methamphetamine with intent to distribute and the firearms offense. In his plea agreement, Brown admitted that, on Oct. 26, 2011, he agreed to sell methamphetamine to a person who unbeknownst to him was working as an informant. Law enforcement officers conducted surveillance as Brown drove from Farmington to Cuba, N.M., where he purchased methamphetamine from his supplier. While Brown was traveling back to Farmington, the officers obtained a search warrant for Brown’s 2009 Ford Mustang. When the officers executed the search warrant, they found a box in the Mustang’s trunk that contained more than 200 grams of methamphetamine. In the center console of the Mustang, the officers found a fully loaded .9 mm semi-automatic pistol and other .9 mm ammunition. Brown was arrested on state charges, which were later dismissed after Brown was arrested on federal charges.
Under the terms of his plea agreement, Brown has agreed to forfeit the Mustang used to transport the methamphetamine and the firearm and ammunition found in the vehicle.
11th Judicial District Attorney Rick P. Tedrow said, “The assistance provided by the U.S. Attorney’s Office has provided San Juan County a great benefit in allowing our agencies to coordinate strengths and remove dangerous offenders from our communities. It is our hope to continue working together with prosecutors from our office, the prosecutors from the U.S. Attorney’s office, and all our law enforcement agencies and keep moving forward toward our common goal of safe communities in this State.”
“The message to drug traffickers is clear: Make no mistake. HSI is working aggressively with our state and local law enforcement partners to reduce drug trafficking activity in New Mexico,” said Dennis A. Ulrich, Special Agent in Charge of HSI El Paso. “And our alliance is strengthened by our commitment to public safety and border security.”
“I want to thank HSI and the U.S. Attorney's Office for their continued partnership with Region II and local agencies in San Juan County,” said Lt. Neil Haws, Director of Region II Narcotics Task Force. “Lindsey Brown was a major methamphetamine supplier to our area, and this prison sentence will ensure that he will not be selling drugs in our community for a long time. It is also a reminder to other local drug dealers that we have State and Federal partners in our efforts to investigate drug trafficking organizations and their members and that we will aggressively pursue and prosecute them for their crimes.
In announcing the guilty plea, U.S. Attorney Kenneth J. Gonzales commended the 11th Judicial District Attorney’s Office, HSI and the Region II Narcotics Task Force for their work in this cooperative investigation and prosecution. Assistant U.S. Attorney Lynn W.Y. Wang is prosecuting the case for the government and Assistant U.S. Attorney Cynthia L. Weisman is handling the forfeiture proceedings.
Eight Individuals Indicted for Lacey Act Violations and Other Crimes Relating to the Trafficking of Paddlefish “Caviar”Read the Press Release
Eight individuals face federal charges stemming from a joint U.S. Fish and Wildlife Service and Missouri Department of Conservation investigation of interstate and international trafficking in paddlefish “caviar,” the Department of Justice Environment and Natural Resources Division and the U.S. Attorney for the Western District of Missouri announced. Arkadiy Lvovskiy, Dmitri Elitchev, Artour Magdessian, Felix Baravik, Petr Babenko, Bogdan Nahapetyan, Fedor Pakhnyuk and Andrew Praskovsky have been charged in four, separate indictments in the Western District of Missouri for acts that occurred in 2011 and 2012.
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any state.
Arkadiy Lvovskiy, 51, of Aurora, Colo., Dmitri Elitchev, 46, of Centennial, Colo., Artour Magdessian, 46, of Lone Tree, Colo., and Felix Baravik, 48, of Aurora, Colo., were charged with conspiring with each other, and others, to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that in the spring of 2011 and 2012, the defendants traveled to Warsaw, Mo., where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, the defendants transported the caviar from Missouri to Colorado. The indictment further alleges that, during the interstate transportation, the defendants engaged in counter-surveillance efforts in order to avoid being detected.
Petr Babenko, 42, of Vineland, N.J., and Bogdan Nahapetyan, 33, of Lake Ozark, Mo., were charged with conspiring with each other and other individuals to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that between March and April 2012, the defendants traveled to Warsaw where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, they transported the caviar from Missouri to New Jersey.
Fedor Pakhnyuk, 39, of Hinsdale, Ill., is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in the spring of 2011 and 2012 Pakhnyuk traveled from Illinois to Missouri for the purpose of obtaining paddlefish eggs. The indictment alleges that Pakhnyuk procured paddlefish eggs by purchasing them, and by performing processing services for other persons in exchange for a share of the processed eggs. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Illinois. The indictment alleges that Pakhnyuk also attempted to form an enterprise with other individuals that would market processed paddlefish caviar at markets in Chicago, Illinois.
Andrew Praskovsky, 40, of Erie, Colo., is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in March and April 2012, Praskovsky twice traveled to Warsaw for the purpose of purchasing paddlefish. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Kansas. The indictment alleges that, in April 2012, Praskovsky attempted to export some of the paddlefish eggs in checked luggage on an international flight departing from Dulles International Airport in Washington, D.C. The paddlefish eggs were seized at Dulles, as paddlefish eggs may only be exported if they are accompanied by a valid permit issued by the U.S. Fish & Wildlife Service under the Convention for International Trade in Endangered Species (CITES).
If convicted, the individual defendants face a maximum penalty of five years in prison, and a $250,000 fine per count, as well as forfeiture of any vehicles that were used during the commission of the crimes.
The case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation. The case is being prosecuted by Trial Attorneys James B. Nelson and Adam C. Cullman of the Department of Justice’s Environmental Crimes Section and Supervisory Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri.
An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.
Eight Individuals Indicted for Lacey Act Violations and Other Crimes Relating to the Trafficking of Paddlefish "Caviar"Read the Press Release
WASHINGTON –Eight individuals face federal charges stemming from a joint U.S. Fish and Wildlife Service and Missouri Department of Conservation investigation of interstate and international trafficking in paddlefish “caviar,” the Department of Justice Environment and Natural Resources Division and the U.S. Attorney for the Western District of Missouri announced. Arkadiy Lvovskiy, Dmitri Elitchev, Artour Magdessian, Felix Baravik, Petr Babenko , Bogdan Nahapetyan, Fedor Pakhnyuk, and Andrew Praskovsky have been charged in four, separate indictments in the Western District of Missouri for acts that occurred in 2011 and 2012.
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any State, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any State.
Arkadiy Lvovskiy, 51, of Aurora, Colorado, Dmitri Elitchev, 46, of Centennial, Colorado, Artour Magdessian, 46, of Lone Tree, Colorado, and Felix Baravik, 48, of Aurora, Colorado, were charged with conspiring with each other, and others, to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that in the spring of 2011 and 2012, the defendants traveled to Warsaw, Missouri, where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, the defendants transported the caviar from Missouri to Colorado. The indictment further alleges that, during the interstate transportation, the defendants engaged in counter-surveillance efforts in order to avoid being detected.
Petr Babenko, 42, of Vineland, New Jersey, and Bogdan Nahapetyan, 33, of Lake Ozark, Missouri, were charged with conspiring with each other and other individuals to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that between March and April 2012, the defendants traveled to Warsaw, Missouri, where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, they transported the caviar from Missouri to New Jersey.
Fedor Pakhnyuk, 39, of Hinsdale, Illinois, is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in the spring of 2011 and 2012 Pakhnyuk traveled from Illinois to Missouri for the purpose of obtaining paddlefish eggs. The indictment alleges that Pakhnyuk procured paddlefish eggs by purchasing them, and by performing processing services for other persons in exchange for a share of the processed eggs. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Illinois. The indictment alleges that Pakhnyuk also attempted to form an enterprise with other individuals that would market processed paddlefish caviar at markets in Chicago, Illinois.
Andrew Praskovsky, 40, of Erie, Colorado, is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in March and April 2012, Praskovsky twice traveled to Warsaw, Missouri, for the purpose of purchasing paddlefish. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Kansas. The indictment alleges that, in April 2012, Praskovsky attempted to export some of the paddlefish eggs in checked luggage on an international flight departing from Dulles International Airport in Washington, DC. The paddlefish eggs were seized at Dulles, as paddlefish eggs may only be exported if they are accompanied by a valid permit issued by the U.S. Fish & Wildlife Service under the Convention for International Trade in Endangered Species (CITES).
If convicted, the individual defendants face a maximum penalty of five years in prison, and a $250,000 fine per count, as well as forfeiture of any vehicles that were used during the commission of the crimes.
The case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation. The case is being prosecuted by Trial Attorneys James B. Nelson and Adam C. Cullman of the Department of Justice’s Environmental Crimes Section and Supervisory Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri.
An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.
Lvovskiy, et al Indictment
Babenko, et al Indictment
Pakhnyuk Indictment
Praskovsky Indictment
Drug Dealer Sentenced to 30 Years in Prison After Four Years on the RunRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 30 years in prison on cocaine distribution charges from 2008, charges for which he was convicted in October after evading the law for four years, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
U.S. District Judge L. Scott Coogler sentenced LAMAR GIBSON, 41, on one count of conspiracy to distribute crack cocaine, one count of distributing crack cocaine and one count of attempting to distribute the drug. Gibson fled after he was indicted in August 2008 and evaded capture until August 2012.
Gibson's co-defendant in the case, Shawn Greer, 44, of Birmingham, pleaded guilty to the charges in November 2008 and was sentenced after Gibson's trial to 15 years in prison.
The two men were convicted of conspiracy and distribution in connection to their sale of about 70 grams of crack cocaine for $1,750 on Feb. 22, 2008. They were convicted of attempting to distribute another 2 ½ ounces of crack cocaine on May 22, 2008.
The DEA investigated the case, and Assistant U.S. Attorney L. James Weil Jr. prosecuted the case.
Driver of “chubby Bandit” Bank Robber ConvictedRead the Press Release
United States Attorney Laura E. Duffy announced that Vahid Edrisi was found guilty by a federal jury earlier today in San Diego of six counts of bank robbery and one count of robbing a pharmacy. The verdicts follow a two-day trial before United States District Judge Larry A. Burns.
The evidence presented at trial showed Edrisi accessing cellular towers in the vicinity of six of the seven robberies committed by Aaron Hyman, dubbed the “Chubby Bandit,” in October 2012. Edrisi himself was captured by video surveillance just prior to one of the robberies, and Edrisi’s black 2011 Chevrolet Camaro Convertible was captured on video surveillance at three of the seven robberies. Hyman entered guilty pleas to seven counts of robbery on January 24, 2013.
The evidence further showed that Edrisi twice fled law enforcement at high rates of speed to avoid capture. Edrisi abandoned the car following the second chase. Inside the car, officers found a hat worn during one of the seven “Chubby Bandit” robberies. Edrisi was arrested when he went to the tow yard to attempt to retrieve his car.
The defendants were convicted of robbing:
$369.00
2 Bottles of Oxycontin
$2,307.00
Attempted
$309.00
$1,590.00
$830.00
U.S. Bank, 12265 Scripps Poway Parkway, Poway, CA
CVS Pharmacy, 191 Woodland Parkway, San Marcos, CA
Chase Bank, 7176 Avenida Encinitas, Carlsbad, CA
Chase Bank, 607 Lomas Santa Fe Dr., Solana Beach, CA
Wells Fargo, 276 N. El Camino Real, Encinitas, CA
U.S. Bank, 770 Carlsbad Village Dr., Carlsbad, CA
Wells Fargo, 11986 Bernardo Plaza Dr., San Diego, CA
Judge Burns set a sentencing hearing for Edrisi on June 10, 2012 at 9:30 a.m. Hyman is scheduled for sentencing on April 8, 2012 at 9:30 a.m.
DEFENDANTS Case Number: 12cr5098-LAB Aaron Alan Hyman
Vahid Edrisi SUMMARY OF CHARGESTitle 18, United States Code, Section 2113(a) Bank Robbery
INVESTIGATING AGENCIES
Title 18, United States Code, Section 1951(a) – Obstruction of Interstate Commerce by Force (Hobbs Act)
Maximum Penalties: 20 years for each countFederal Bureau of Investigation
Carlsbad Police Department
San Diego County Sheriff’s Department
San Diego Police DepartmentDavid Joseph Sanders Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 13, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DAVID JOSEPH SANDERS, a 49-year-old resident of Billings, appeared for sentencing. SANDERS was sentenced to a term of:
Prison: 135 months
Special Assessment: $200
Supervised Release: 3 years
SANDERS was sentenced in connection with his guilty plea to distribution of oxycodone.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
From February 2012 until May 14, 2012, SANDERS sold oxycodone and dilaudid (hydromorphone) to undercover law enforcement officers in Billings.
SANDERS received prescription pills from other people in the Billings area and then sold them to undercover officers. SANDERS sold oxycodone and dilaudid on February 24, March 28, and April 16, 2012.
On May 14, 2012, SANDERS was arrested in a buy/bust operation.
In total, officers purchased 167 dilaudid and 100 oxycodone pills from SANDERS. On May 14, 2012, the officers recovered 69 dilaudid and 40 oxycodone pills.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SANDERS will likely serve all of the time imposed by the court. In the federal system, SANDERS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Drug Enforcement Administration.
Court of Appeals Affirms Tony Nelson's Convictions on Corruption ChargesRead the Press Release
Jacksonville, FL - U.S. Attorney Robert E. O'Neill announces that the United States Court of Appeals for the Eleventh Circuit today affirmed the convictions of former Jacksonville Port Authority (JAXPort) Chairman Tony Devaughan Nelson on thirty-six corruption-related charges, including bribery, money laundering, honest services mail fraud, and making a false statement to the FBI. The evidence at trial established that, as Chairman, Nelson had demanded and accepted $143,500 in bribes from a dredging contractor at JAXPort. Nelson is serving a 40-month prison sentence.Nelson argued on appeal that his convictions should be vacated because the federal fraud and bribery statutes under which he was convicted are unconstitutionally vague, the district court improperly instructed the jury on the applicable law, and the court improperly admitted the testimony of JAXPort's director of procurement. The ACLU Foundation of Florida, Inc., and the National Association of Criminal Defense Lawyers also filed a brief on Nelson's behalf as amicus curiae.
After hearing oral argument, the Court of Appeals issued a split decision, with the majority holding that the challenged statutes "gave Nelson adequate notice of the conduct they prohibit," that the district court's instructions correctly "propelled [the jury] to look to Nelson's state of mind" in taking payments in exchange for his influence, and that the challenged evidence was relevant and not unfairly prejudicial.
The appeal was handled by Assistant United States Attorneys David P. Rhodes and Susan H. Rothstein-Youakim. The underlying case was prosecuted by Assistant United States Attorneys Mac D. Heavener, III, and Mark B. Devereaux, and was investigated by the Federal Bureau of Investigation.
Computer Printer Technician Sentenced for Defrauding Children’s of AlabamaRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former computer printer service technician at Children’s of Alabama to 27 months in prison for defrauding the hospital of $426,986 by charging it for printer cartridges he sold to another company, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge L. Scott Coogler sentenced JOHN DAVID NICHOLS, 36, of Hueytown, on one count of wire fraud, ordering him to pay $526,943 in restitution and to serve three years of supervised release after completing the prison term. Nichols pleaded guilty to the fraud in October.
According to his plea agreement and other court documents, Nichols worked on site at Children’s of Alabama as a service technician for Tech-Optics Inc. from October 2009 through October 2011. Tech-Optics had a contract with the hospital that included providing preventive maintenance, repair and toner cartridges for printers. Nichols acknowledges that from August 2010 to October 2011, he used Tech-Optics’ computer inventory system to order toner cartridges for Children’s. The hospital paid for the cartridges, but Nichols sold them to an Alabama company, Image Craft, which bought new and used toner cartridges.
Due to Nichols’ scheme, Children’s paid $426,986 to Tech-Optics for items Nichols ordered, and then sold to Image Craft. Children’s ceased payments in December 2011, leaving a balance to Tech-Optics of $140,956, according to court documents. The judge ordered Nichols to pay restitution in those amounts to the two victims.
Between August 2010 and March 2012, Nichols sold about 6,316 items to Image Craft, according to his plea agreement. Of those items, about 4,900 were printer cartridges Nichols charged to Children’s and the remaining items included laptop computers, printers, printer parts and fax machines he had stolen from the hospital. Nichols received $234,525 from Image Craft for the equipment, according to the plea agreement.
The FBI investigated the case, which Assistant U.S. Attorney Henry Cornelius prosecuted.
Colorado Man Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Joshua Julian, age 24, of Denver, Colorado appeared before Chief U.S. District Judge Jeffrey L. Viken on February 22, 2013 and pled guilty to Conspiracy to Distribute a Controlled Substance. The maximum penalty upon conviction is 20 years of imprisonment and/or a $1,000,000 fine.
Between September 1, 2009, and February 16, 2010, Julian conspired with others to intentionally distribute, and possess with the intent to distribute cocaine, in South Dakota. The investigation was conducted by the Drug Enforcement Agency and Unified Narcotics Enforcement Team, which is compromised of the South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and Rapid City Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for June 11, 2013. The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Citizen of Jamaica Who Illegally Reentered U.S. After Deportation Sentenced to 18 Months in Federal PrisonRead the Press Release
March 14, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD ECCLESTON STEPHENS, 38, a citizen of Jamaica last residing in New Britain, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, STEPHENS was deported from the U.S. to his native Jamaica in April 2001 after he was convicted in Connecticut state court for selling narcotics. He illegally reentered the U.S. and, in June 2004, was arrested in Hartford for interfering/resisting arrest. At the time of his arrest he provided several false names to law enforcement. STEPHENS’ true identity was subsequently determined and he was deported to Jamaica in October 2004.
STEPHENS again illegally reentered the U.S. On September 5, 2012, he was arrested by the Wethersfield Police Department and charged with multiple narcotics offenses and motor vehicle violations. On that date, he also provided law enforcement with false identifying information.
STEPHENS has been detained since his arrest by U.S. Immigration and Customs Enforcement on September 6, 2012. On December 18, 2012, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Chicago Man to Serve Three Consecutive Life Sentences for Danville Murders Related to Drug-TraffickingRead the Press Release
Urbana, Ill. – U.S. District Judge Michael P. McCuskey today ordered a Chicago man to remain in prison for life. Freddell Bryant, 34, was convicted in December 2012 for using a firearm during a drug-trafficking crime that resulted in the deaths of three people in Danville, Ill., nearly six years ago. Bryant, also known as “Freddy Moe,” was ordered to serve three life prison sentences consecutive to each other and consecutive to the 25-year federal prison term he is currently serving for his role in the underlying cocaine and crack cocaine distribution conspiracy.
On Dec. 10, 2012, a jury convicted Bryant for causing the deaths on Mar. 27, 2007, of Rodney Pepper, 30; Madisen E. Leverenz, 19; and Tabreyan L. McCullough, 21. During the trial, the government presented evidence that on March 24, 2007, Bryant learned that multiple kilograms of cocaine that he had McCullough hold for him had been taken from her Danville home. On March 25, 2007, Bryant and others took McCullough to an apartment at 1707 East Main Street to confront Leverenz and Pepper, whom Bryant believed were involved in taking the cocaine. Further evidence was presented that during the ensuing confrontation, Bryant used and carried a firearm during and in relation to the drug conspiracy and that he used the firearm which resulted in the murder of Pepper, Leverenz and McCullough.
In March 2009, Bryant pled guilty to conspiracy to distribute crack cocaine and possession with intent to distribute crack cocaine in Vermilion County from October 2003 to March 2007. Bryant was sentenced on Apr. 29, 2010, to serve 300 months (25 years) in federal prison. Bryant has remained in federal law enforcement custody since his arrest in Chicago in May 2007.
The charges were investigated by the U.S. Drug Enforcement Administration, the Danville Police Department, the Vermilion County Metropolitan Enforcement Group, and the Illinois State Police. The government was represented by Assistant U.S. Attorneys Eugene L. Miller and Jason M. Bohm. The case was prosecuted by the U.S. Attorney’s Office for the Central District of Illinois, Urbana Division, in cooperation with the Vermilion County State’s Attorney’s office.
Charleston Man Sentenced to More Than 12 Years in Federal Prison for Selling Opana PillsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a Charleston man was sentenced to 12 years and seven months in federal prison for distribution of oxymorphone, also known as “Opana.” Maurice Minter, also known as “Mo,” 26, previously pleaded guilty in December 2012. Minter admitted that on August 5, 2011, he sold eight 40-milligram Opana pills to an individual in exchange for $400. Minter was arrested following the pill transaction. Metropolitan Drug Enforcement Network Team (MDENT) officers obtained a search warrant for the defendant’s Charleston residence. During the execution of the search warrant, officers found 180 oxycodone and 109 Opana pills at the residence.
Minter was sentenced as a career offender because of two prior felony controlled substance convictions in the Circuit Court of Cabell County, West Virginia.
The investigation was conducted by MDENT. Assistant United States Attorney Haley Bunn handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
California Man Sentenced for Dealing Cocaine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A44-year-old San Bernardino, CA, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Reginald Lavann Eastern pleaded guilty on Aug. 30, 2012, to possession with intent to distribute cocaine and was sentenced to 43 months in federal prison today by U.S. District Judge Leonard E. Giblin.
According to information presented in court, on Mar. 4, 2012, Eastern was in possession of approximately 1 kilogram of cocaine which he intended to deliver to others in the Eastern District of Texas.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Boone County Man Sentenced to 3 Years in Federal Prison for Illegal Firearm PossessionRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Boone County man was sentenced to three years in federal prison for being a felon in possession of a firearm. James Franklin Platt, 57, of Whitesville, Boone County, W.Va., previously pleaded guilty to charges contained in an indictment returned in October 2012. Platt admitted that on July 20, 2010, he possessed a .22 caliber revolver near Whitesville, W.Va.
Platt was prohibited from possessing firearms because of a prior felony conviction in February 1992 in the United States District Court for the Southern District of West Virginia for conspiracy to distribute marijuana and aiding and abetting the possession with intent to distribute marijuana. Platt was also previously convicted in June 1999 in the Circuit Court of Boone County, West Virginia of conspiracy to deliver a controlled substance.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
The Boone County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant United States Attorney Monica Coleman handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Aryan Brother Inmate Sentenced for Federal Hate Crime for Assaulting Fellow InmateRead the Press Release
John Hall, 27, an Aryan Brotherhood member and inmate at the Federal Correctional Institution (FCI) in Seagoville, Texas, was sentenced today by U.S. District Judge Reed O’Connor after pleading guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act stemming from his assault of a fellow inmate, whom he believed to be gay, the Department of Justice announced. Hall assaulted his fellow inmate with a dangerous weapon, causing bodily injury to the victim on Dec. 20, 2011. Hall was sentenced to serve 71 months in prison to be served consecutively with the sentence he is currently serving.
The assault occurred on Dec. 20, 2011, inside the FCI Seagoville when Hall targeted and attacked the victim, a fellow inmate, because he believed the victim was gay or involved in a sexual relationship with another male inmate. Hall repeatedly punched, kicked and stomped on the victim’s face with his shod feet, a dangerous weapon, while yelling a homophobic slur. The victim lost consciousness during the assault and suffered multiple lacerations to his face. The victim also sustained a fractured eye socket, lost a tooth, fractured other teeth and was treated at a hospital for the injuries he sustained during Hall’s unprovoked attack. Hall pleaded guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act on Nov. 8, 2012.
“Brutality and violence based on sexual orientation has no place in a civilized society,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to prosecute acts motivated by hate.”
“This prosecution sends a clear message that this office, in partnership with attorneys in the department’s Civil Rights Division, will prioritize and aggressively prosecute hate crimes and others civil rights violations in North Texas,” said U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
This case was investigated by the FBI Dallas Division. The case was prosecuted by Assistant U.S. Attorney Errin Martin and Trial Attorney Adriana Vieco of the Civil Rights Division.
Aryan Brother Inmate Sentenced for Federal Hate Crime for Assaulting Fellow InmateRead the Press Release
WASHINGTON – John Hall, 27, an Aryan Brotherhood member and inmate at the Federal Correctional Institution (FCI) in Seagoville, Texas, was sentenced today by U.S. District Judge Reed O’Connor after pleading guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act stemming from his assault of a fellow inmate, whom he believed to be gay, the Department of Justice announced. Hall assaulted his fellow inmate with a dangerous weapon, causing bodily injury to the victim on Dec. 20, 2011. Hall was sentenced to serve 71 months in prison to be served consecutively with the sentence he is currently serving.
The assault occurred on Dec. 20, 2011, inside the FCI Seagoville when Hall targeted and attacked the victim, a fellow inmate, because he believed the victim was gay or involved in a sexual relationship with another male inmate. Hall repeatedly punched, kicked and stomped on the victim’s face with his shod feet, a dangerous weapon, while yelling a homophobic slur. The victim lost consciousness during the assault and suffered multiple lacerations to his face. The victim also sustained a fractured eye socket, lost a tooth, fractured other teeth and was treated at a hospital for the injuries he sustained during Hall’s unprovoked attack. Hall pleaded guilty to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act on Nov. 8, 2012.
“Brutality and violence based on sexual orientation has no place in a civilized society,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to prosecute acts motivated by hate.”
“This prosecution sends a clear message that this office, in partnership with attorneys in the department’s Civil Rights Division, will prioritize and aggressively prosecute hate crimes and others civil rights violations in North Texas,” said U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
This case was investigated by the FBI Dallas Division. The case was prosecuted by Assistant U.S. Attorney Errin Martin and Trial Attorney Adriana Vieco of the Civil Rights Division.
Altoona Man Sentenced to Federal Prison for Lying About Military Record and Honors to Obtain VA Health Care BenefitsRead the Press Release
DES MOINES, IA - On March 14, 2013, Jeffrey Scott Kepler, age 53, of Altoona, Iowa, was sentenced by U.S. District Judge John A. Jarvey to one year and one day in federal prison, to be followed by three years of supervised release, announced U.S. Attorney Nicholas A. Klinefeldt.
Kepler pleaded guilty on September 7, 2012, to federal charges of health care fraud. As part of his plea agreement, Kepler admitted to submitting a false United States Department of Defense form, known as a “DD Form 214, Certificate of Release And Discharge From Active Duty,” to the U.S. Department of Veterans Affairs medical center in Des Moines in August 2007, in which he falsely represented his military service in an effort to fraudulently obtain VA medical benefits to which he was not entitled. Between 2007 and 2010, Kepler received over $100,000 in VA health care benefits for which he was not eligible. He also attempted to obtained VA disability benefits to which he was not entitled, but was caught.
Kepler only served in the United States Army for 27 days in 1986, when he was honorably discharged for not meeting medical fitness standards. He received no promotions, awards, or commendations, and was never in combat, and did not serve in the military long enough to earn veterans benefits. In the false DD Form 214, Kepler falsely claimed to have served in the Army for 2 years, 11 months, and 23 days between January 1977 and August 1979, portraying himself as an Airborne Ranger, who qualified for Officer Candidate School, and a war hero, who had been awarded numerous Army medals, including the Silver Star, and twice awarded the Bronze Star and Purple Heart.
Kepler also admitted in court that he had acquired military memorabilia over the years, including various crests, insignia, badges, ribbons, clothing, medals, awards, and military tatoos, which he used from time-to-time to falsely represent himself to individuals and the American Legion as a decorated, Army combat veteran. As part of the plea agreement, Kepler consented to forfeiting or adandoning these items to the United States.
The case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, and was prosecuted by the U.S. Attorney Office for the Southern District of Iowa.
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Aliquippa Woman Sentenced to Time Served for Stolen Credit Card SchemeRead the Press Release
PITTSBURGH - A resident of Aliquippa, Pa., has been sentenced in federal court to time served of 19 months incarceration, to be followed by a three-year term of supervised release on her conviction of conspiracy to use stolen credit cards, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence yesterday on Courtney McFeaters, 33.
According to the information presented to the court, McFeaters, along with co-conspirators Calvin Smith and Joseph Dees, conspired to use stolen American Express credit account information to purchase merchandise at retail stores in Pennsylvania, West Virginia and Ohio between December 2010 and June 2011.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Officers from the United States Postal Inspection Service and United States Secret Service, along with along with agents from the Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the prosecution of McFeaters. The WPFCTF was established in February 1995 as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Ali Dwayne Khan Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 13, 2013, before Senior U.S. District Judge Jack D. Shanstrom, ALI DWAYNE KHAN, a 33-year-old resident of Billings, appeared for sentencing. KHAN was sentenced to a term of:
Prison: 211 months
Special Assessment: $400
Supervised Release: 5 years
KHAN was sentenced after a federal district court trial in which he was found guilty of conspiracy to possess with intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Assistant U.S. Attorney Marcia K. Hurd prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KHAN will likely serve all of the time imposed by the court. In the federal system, KHAN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force and the Federal Bureau of Investigation.
16 Members of an International Money Laundering Scheme Arrested in the United States and ColombiaRead the Press Release
Two indictments were unsealed today in federal court in Brooklyn, New York, charging 19 members of an international money laundering scheme with conspiring to launder tens of millions of dollars in narcotics proceeds.1 According to the indictments and a detention letter filed today by the government, members of the conspiracy laundered tens of millions of dollars in narcotics proceeds from the United States to Colombia between 2006 and 2013. As part of the government’s investigation, law enforcement officers have thus far seized more than $6.5 million in United States currency as well as 52.5 kilograms of heroin, 32 kilograms of cocaine, 63 pounds of marijuana, eight vehicles and three firearms.
Twelve of the defendants were arrested earlier today in Colombia by members of the Colombian National Police. Four other defendants were arrested today in Queens, Long Island, New Jersey and Connecticut. Three additional defendants are already in custody for previously charged crimes and will be transferred to the Eastern District of New York to be arraigned in the coming days. In addition, nine other defendants have previously been arrested in connection with this investigation and charged in separate indictments; six of those defendants have pleaded guilty to the charges. Those defendants arrested today in the New York City metropolitan area will be arraigned later this afternoon before United States Magistrate Judge Lois Bloom at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
According to the indictment and other court filings submitted by the government, the four-year investigation revealed that, between January 2006 and March 2013, individuals operating out of retail shopping malls in Cali, Colombia (“money brokers”) assisted drug trafficking organizations in Colombia by laundering the proceeds of sales of narcotics in the United States. The twelve individuals arrested in Colombia today were money brokers who operated out of the El Diamante, Gran Centro Commercial, San Andresito and Atlantis retail shopping malls in Cali. Photographs of the interior areas of the El Diamante and Gran Centro Commercial shopping malls, where some of these money brokers operated, are attached to this press release.
These twelve money brokers oversaw a large network of confederates to assist in transferring millions of dollars in narcotics proceeds from narcotics distributors in the United States to narcotics suppliers in Colombia. The money brokers employed many individuals known as “money movers,” i.e., people responsible for collecting narcotics proceeds and disposing of those proceeds as directed by either the drug trafficking organization or the money brokers. The money movers served as go-betweens, taking the proceeds from narcotics distributors in the United States and eventually passing the money to other members of the organization, who repatriated the proceeds to Colombia.
The four individuals arrested today in the United States (and the three others already in custody on other charges) were money movers. They received phone numbers and code words from the money brokers to use to contact and identify the recipients to whom they were to deliver the narcotics proceeds. The money movers concealed and transported amounts ranging from thousands to hundreds of thousands of dollars in narcotics proceeds at a time, hidden within compartments in vehicles, gasoline containers, duffel bags and shoeboxes. These cash deliveries took place in locations such as parking lots of retail stores and fast food restaurants in Queens, New York, and elsewhere. At these meeting places, the money movers delivered the United States currency, which often was bundled and heat sealed, to other members of the organization.
“Money laundering is the lifeblood of the narcotics trade, both here in the US and in Colombia,” stated United States Attorney Lynch. “The individuals arrested and charged today are alleged to have worked to funnel tens of millions of dollars in narcotics proceeds out of the US and back to narcotics traffickers in Colombia. This international investigation illustrates our resolve to fight these schemes both here and abroad. As several of today’s defendants have learned, distance does not insulate them from the reach of our investigation and our resolve. With these charges, we focus not just on those who moved money in the US but also on those who furthered this scheme in Colombia. We and our partners in law enforcement are committed to investigating and prosecuting international drug traffickers and seizing the proceeds of their crimes. We remain relentless in this pursuit.” Ms. Lynch expressed her grateful appreciation to the Colombian National Police, particularly the Investigative Directorate and members of the HSI Transnational Criminal Investigations Unit, for their hard work and dedication throughout the investigation. Ms. Lynch also thanked the HSI attaché in Bogota and the HSI Hartford Office for their assistance. The investigation was led by agents with HSI New York serving on the El Dorado Task Force, which investigates narcotics trafficking and narcotics money laundering.
ICE/HSI Special Agent-in-Charge Hayes stated, “As alleged, the brokers and members of this money laundering organization orchestrated the transfer of millions of dollars in illicit narcotics proceeds to circumvent law enforcement in the United States and reap their illicit gains abroad. HSI is dedicated to combating criminal organizations by severing their financial life line.”
If convicted, the defendants face a maximum penalty of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Douglas Pravda, Brendan King and Tiana Demas.
The Defendants: FABER ENRIQUE BERMUDEZ ARCINIEGAS
Age: 33HARBI CAICEDO
Age: 49ALEXANDER HENAO CHAMORRO
Age: 35EDWIN ARENAS CHAMORRO
Age: 38LUIS ANIBAL SALAZAR GARCIA
Age: 49JOSE LEONIDAS SALAZAR GARCIA
Age: 54JUAN CARLOS MEJIA GONZALEZ
Age: 48JAVIER ORLANDO ALVAREZ JARAMILLO
Age: 50JOSE LISANDRO ABADIA JIMENEZ
Age: 59JUAN FERNANDO MOLINA JIMENEZ
Age: 54MANUEL ANTONIO CAMPO JIMENEZ
Age: 51NUBIA ABADIA SARRIA
Age: 33RAFAEL ANTONIO ALVAREZ
Age: 33LEONARDO CALDERON-CASTRO
Age: 36JEFFERSON HERNANDEZ
Age: 24JUAN FRANCISCO MONEGRO PERALTA
Age: 29CEASAR STAPLETON
Age: 37MAGDIEL ELIAS VALENCIA
Age: 26
RICHARD VIQUEZ VARGAS
Age: 32_____________________________
1 The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
13 March 2013
Weirton Resident Enters Plea in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A 48 year old Weirton, West Virginia, resident entered a plea of guilty on March 6, 2013, in United States District Court in Wheeling before Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: DANNY LEE COOK entered a plea of guilty to “Sale of Stolen Goods Transported Interstate.” COOK obtained over 6,300 pounds of copper wire that he knew to be stolen from Mon Power’s Wylie Ridge substation in New Cumberland, West Virginia. COOK then transported the stolen wire to Canonsburg, Pennsylvania, where he sold it to a scrap metal dealer. COOK, who is free on bond pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.
The case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Federal Bureau of Investigation.
Vice President Biden and Attorney General Holder Announce Grants to Help Reduce Domestic Violence HomicidesRead the Press Release
Vice President Joe Biden and Attorney General Eric Holder today announced grants to 12 programs across the country to target the urgent need to reduce domestic violence homicides. On average, three women a day die as a result of domestic violence Research shows that women whose partner threatens them with a gun or other weapon are 20 times more likely to subsequently be murdered than other abused women. Moreover, children, coworkers, neighbors and police officers are also killed as a result of domestic violence. From 2009 to 2012, 40 percent of mass shootings – those with four or more victims killed – started with the murderer targeting their girlfriend, wife or ex-wife.
In total, the Department of Justice will award $2.3 million to 12 sites across the country as part of the new Domestic Violence Homicide Prevention Demonstration Initiative (DVHP Initiative). The DVHP Initiative, created by the Justice Department’s Office on Violence Against Women, (OVW) helps state and local jurisdictions reduce domestic violence homicides by effectively identifying potential victims and monitoring high-risk offenders. The DVHP Initiative is modeled after programs in Massachusetts and Maryland, where the use of coordinated teams of law enforcement, prosecutors, health professionals and victims’ services significantly reduced the domestic violence homicide rate.
“Every single day in America, three women die at the hands of their boyfriend, or their husband, or their ex-husband. Many of these women have been threatened or severely abused in the past. We know what risk factors put someone in greater danger of being killed by the person they love – and that also means we have the opportunity to step in and try to prevent these murders. That’s why these grants are so important. They’ll help stop violence before it turns deadly,” said Vice President Biden.
“Domestic violence is a devastating crime – and it claims far too many lives each and every day,” said Attorney General Holder. “With today’s grant announcement, we are strengthening our ability to fight back more effectively – and aggressively – than ever before. And we’re supporting the kinds of evidence-based domestic violence homicide prevention models that will allow us to reliably predict potentially lethal behavior, take steps to stop the escalation of violence and save lives.”
The Vice President and Attorney General announced the grant awards in Rockville, Md., where they were joined by dozens of Maryland law enforcement officers who have been at the forefront of domestic violence homicide prevention efforts in that state.
“While the statistics seem overwhelming, we are not helpless in the face of these terrible crimes,” said Acting Director of Office on Violence Against Women Bea Hanson. “We hope this evidence-based initiative to reduce domestic violence homicide is a breakthrough in preventing murders and serious injuries across the country.”
The new DVHP Initiative is based on an assessment tool that researchers have identified that can be used to reliably recognize women who may be in fatally abusive relationships. Attempted strangulation, threats with weapons, sexual assault and obsessively jealous and controlling behavior are among the markers of particularly lethal abusers. Once at-risk victims are identified, law enforcement, prosecutors, courts and service providers can take action to protect them and their families.
Since passage of the Violence Against Women Act (VAWA) in 1994, annual rates of domestic violence have dropped by more than 60 percent, but more work remains to reduce the most serious of this violence. OVW is partnering with the National Institute of Justice to rigorously monitor the implementation of the initiative and evaluate its outcomes. OVW is also working with national experts to provide technical assistance to the demonstration sites.
The demonstration sites, each receiving one-year awards ranging from $100,658 to $200,000, are: Contra Costa County, Calif.; Miami-Dade County, Fla.; Palm Beach County, Fla.; Rockdale County, Ga.; Winnebago County, Ill.; Boston; Brooklyn, N.Y.; Westchester County, N.Y.; Pitt County, N.C.; Cuyahoga County, Ohio; North Charleston, S.C.; and Rutland, Vt. After the 12-month assessment phase, up to six of the demonstration sites will be selected to continue a three-year implementation phase.
Click HERE for the fact sheet the Obama Administration’s commitment to reducing domestic violence homicides.
Click HERE for the fact sheet on the link between common sense efforts to reduce gun violence and preventing domestic violence homicides.
Related Materials:
Attorney General Eric Holder Speaks at the Domestic Violence Homicide Prevention Initiative Announcement
U.S. Attorney Durkan Testifies Before House Judiciary Subcommittee Regarding Cybercrime ProsecutionsRead the Press Release
U.S. Attorney Jenny A. Durkan testified today on behalf of the U.S. Justice Department in Washington, D.C before the U.S. House of Representatives Judiciary Subcommittee on Crime, Terrorism, Homeland Security and Investigations. The topic of the hearing was “Investigating and Prosecuting 21st Century Cyber Threats.” U.S. Attorney Durkan is Chair of the Attorney General’s Advisory Committee, Subcommittee on Cybercrime and Intellectual Property Enforcement. U.S. Attorney Durkan's testimony is available here.
Two Plead Guilty to Participation in International Conspiracy to Import and Distribute Prescription Drugs and Anabolic SteroidsRead the Press Release
PROVIDENCE, R.I. – Two Rhode Island men have pleaded guilty in U.S. District Court in Providence, R.I., to participating in an international conspiracy to illegally import and distribute prescription drugs and anabolic steroids.
Edmond Paolucci, 54, of Coventry, and Patrick Cunningham, 44, of Cranston, admitted to the court that they participated in a conspiracy to repackage the illegal drugs and sell them under various names and labels to consumers who placed orders via the Internet. A significant portion of the proceeds realized from the sale of the illegal drugs was laundered back to individuals in Israel.
Paolucci and Cunningham’s guilty pleas were announced by United States Attorney Peter F. Neronha; Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigation.
According to information presented to the court, an investigation by the Rhode Island FDA Task Force revealed that from at least November 2009 until November 2011, Mr. Paolucci served as a U.S. confederate of an Israelis-based, international drug distribution ring that was also responsible for the manufacture and sale of prescription drugs, including drugs bearing the underground brand names Sciroxx and Xsorox in the United States and elsewhere.
According to information presented to the court, various misbranded prescription drugs as well as bulk quantities of pills and injectable oil-based drugs in 650 ml. jugs were shipped from Israel, Turkey and Bulgaria to postal boxes in Rhode Island, Massachusetts and Connecticut. Through his co-conspirators in Rhode Island, including Patrick Cunningham, Mr. Paolucci used an underground laboratory to repackage the drugs into retail-size pill packets and 10 ml vials, bearing Sciroxx and Xsorox labels that he then shipped to customers in the United States who had made purchases on websites operated by Mr. Paolucci and his Israeli co-conspirators. A significant portion of the proceeds from the sale of the misbranded and mislabeled drugs was sent back to co-conspirators in Israel.
Court authorized searches of Paolucci and Cunningham’s residences resulted in the seizure of a large amount of paraphernalia related to the manufacture and distribution of steroids. Agents also found various non-controlled and controlled drugs including 10 ml vials labeled as containing the anabolic steroids Testosterone, Enanthate, Boldenone, and Trenbolone.
According to information presented to the court, records obtained from money transfer service companies showed that from February 2009 to September 2011 Mr. Paolucci transferred in excess of $76,000 in proceeds from steroid and prescription drug sales to individuals in Israel.
Patrick Cunningham pleaded guilty on Tuesday to one count each conspiracy to distribute steroids and distribution of a misbranded drug. The defendant is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on May 28, 2013.
Edmond Paolucci pleaded guilty on November 28, 2012, to one count each of conspiracy to distribute steroids, possession with the intent to distribute steroids, distribution of a misbranded drug, and money laundering. The defendant is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on April 9, 2013.
Conspiracy to distribute steroids and possession with the intent to distribute steroids is punishable by a maximum sentence of up to 10 years in federal prison; a fine up to $500,000; and a term of supervised release of 2 years to life. Distribution of a misbranded drug and money laundering is punishable by a maximum sentence of up to 3 years in federal prison; a fine of up to $10,000; and a term of supervised release of 2 years.
The case is being prosecuted by Assistant U.S. Attorney Richard B. Myrus.
A task force led by the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation. The task force partnerships include the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigation, the U.S. Postal Inspection Service, the Immigration and Customs Enforcement, Homeland Security Investigations, the Rhode Island State Police, the North Providence Police, the East Providence Police, and the Rhode Island National Guard.
United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigation, acknowledged the assistance of international counterparts at the Israel Ministry of Health, Division of Enforcement and Inspection, and Jerusalem Customs and VAT who provided significant assistance in the investigation of this matter.
Contact: 401-709-5357
[email protected]Twenty-Six Charged with Operating Major Peninsula Drug Trafficking RingRead the Press Release
NEWPORT NEWS, Va. – Twenty-six alleged members of a major drug trafficking ring operating throughout the Virginia Peninsula were charged in federal court today following coordinated arrests that began early this morning as part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation dubbed “Dragon’s Lair.”
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s (DEA) Washington Field Division; and James D. Fox, Chief of Newport News Police, made the announcement after the court documents were unsealed.
“After law enforcement dismantled the major heroin trafficking rings in Tidewater, this organization allegedly stepped in to fill the demand,” said U.S. Attorney MacBride. “Since last October, at least four more people have overdosed on heroin and died on the Peninsula. Today’s charges are part of an ongoing effort to go after those who traffic these highly addictive and dangerous drugs that threaten our communities.”
“Operation Dragons Lair targeted what we allege to be an extremely violent cocaine and heroin drug trafficking organization operating in the Newport News and Hampton Roads areas of Virginia for more than a decade” stated DEA SAC Colder. “This investigation exemplifies how positive working relationships can result in removing violent offenders from our streets.”
“This is yet another example of local, state and federal law enforcement agencies and prosecutors working as a team to identify, arrest and prosecute those we allege are involved in the distribution of extremely dangerous illegal drugs” said Chief Fox. “While this operation seeks to put a large dent in the heroin distribution in this area, the good citizens of Hampton Roads can rest assured that this team of dedicated professionals will continue to identify and bring to justice those who are poisoning the community with illegal drugs.”
Those arrested this morning will make their initial appearance at 3 p.m. in the Norfolk federal courthouse before United States Magistrate Judge Douglas E. Miller.
The charges were unsealed today in two separate, but related, charging documents. Christopher Devon Barrett, 26, of Hampton, Va., and 12 alleged co-conspirators were charged by criminal complaint with conspiracy to distribute five kilograms or more of cocaine, 280 grams or more of crack cocaine and one kilogram or more of heroin. The criminal complaint alleges that the group originally trafficked crack cocaine and firearms since at least 2005, but recently branched out into selling heroin as a result of the successful arrest and prosecution of Peninsula groups involved in distributing heroin.
In September 2008, a prisoner at the Newport News City Farm died in a heroin overdose. That death spurred law enforcement to intensify their focus on the threat posed from heroin abuse within the Virginia Peninsula, which resulted in the federal prosecution of more than 70 defendants and the dismantling of three separate heroin drug trafficking organizations. The criminal complaint unsealed today states that as part of this ongoing investigation, agents are investigating at least four heroin overdose deaths that have occurred on the Virginia Peninsula since October 2012.
Barrett is alleged to be the leader of this violent drug trafficking organization, arranging for suppliers and running the day-to-day affairs of the conspiracy from the Colonial Landing Apartment complex in Hampton, Va.
Those charged today with Barrett include the following individuals:
- Wayne Dominique Barrett, 24, of Newport News, Va., and Demetrius Deangelo Askew, 31, of Hampton, Va. are alleged to be lieutenants in the criminal organization.
- Donald Lorenzo Smith, 29, Newport News, Va., Jetadia Sirica Cook, 35, of Newport News, Va., Stacy Ray Wise, 26, of Newport News, Va., Darryl Michael Elliott, 46, of Hampton, Va., Dominic Donte Walker, 26, of Hampton, Va., and Timothy Ray Alexander, 42, of Hampton, Va., are alleged to be mid-level distributors for the criminal organization.
- William Lewis Cofield, Sr., 58, of Hampton, Va., Larry Daniel Stokes, 55, of Hampton, Va., and Warren Lester Tribble, 62, of Hampton, Va. are alleged to be lower level distributors that sold narcotics and facilitated the activities of the criminal organization by transporting members of the conspiracy and narcotics from one location to another, and by allowing their residences to be used to package, store and distribute narcotics.
- Andrea Lanell Barrett, 24, of Newport News, Va., is the sister of Christopher Barrett, and is alleged to broker sales of narcotics and store firearms for the criminal organization. She is also alleged to facilitate the activities of the organization by renting cars for members of the drug trafficking organization.
Each individual charged by the criminal complaint faces a mandatory minimum of 10 years and a maximum of life in prison, if convicted.
In addition to those charged as alleged members of the Barrett drug trafficking organization, in a related indictment also unsealed today Steven Lavonne Morris, 38, of Newport News, Va., is alleged to be the leader of a cocaine drug trafficking organization supplied by sources in New York City and Atlanta, Ga. The indictment alleges that Morris obtained kilogram quantities of cocaine in New York and Atlanta, and supervised the transport of the cocaine to the Virginia Peninsula. The criminal organization generally paid from $40,000 to $44,000 per kilogram for cocaine. According to the Barrett criminal complaint, Morris and Barrett conspired with each other to purchase cocaine through the same sources in New York and distribute it throughout Tidewater. On Feb. 23, 2013, Morris and three others were arrested in a parking lot on West Mercury Boulevard, Hampton, Va., allegedly in possession of approximately 900 grams of cocaine. Agents allegedly located approximately $87,918 in U.S. currency at Morris’s residence later that evening.
Those indicted with Morris and charged with conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine include:
- Jonathan Holguin, 24, of New York, N.Y. and Edwin Fernandez, 28, of New York, N.Y., are alleged to be cocaine suppliers to Morris and the members of this conspiracy.
- Frederick Lavan Womack, 34, of Hampton, Va., is alleged to be a lieutenant in the Morris drug trafficking organization, traveling with Morris to New York City and converting cocaine powder into crack cocaine at Morris’s direction.
- Bradley Maurice Cephas, 38, of Newport News, Va.; James King Artis, II, 38, of Hampton, Va.; Aaron Evan Smith, 31, of Yorktown, Va.; Christopher Michael Flowers, 40, of Hampton, Va.; Leroy Cornelius Bugg, 33, of Hampton, Va.; and Arthur Gadsden, Jr., 41, of Newport News, Va., are alleged to be mid-level distributors who provided the drugs to street-level distributors and customers.
- James Vincent Taylor; 30, of Hampton, Va.; Alesha Dubrey Cousins; 30, of Hampton, Va.; and Tinesha Monica Dubrey, 31, of Hampton, Va., allegedly served as facilitators and couriers for Morris’s drug trafficking organization.
Each individual charged in the indictment faces a mandatory minimum of 10 years and a maximum of life in prison, if convicted.
This OCDETF operation was led by the DEA Hampton Post of Duty. The investigative team included the Newport News Police Department, the Newport News Sheriff’s Department, the Virginia State Police, and the Hampton Police Division. Assistant United States Attorney Laura Tayman is prosecuting the case on behalf of the United States.
The public is reminded that an indictment and a criminal complaint only contain charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Third Defendant in Ticket-Fixing Scheme Pleads GuiltyRead the Press Release
PHILADELPHIA - Fortunato Perri, 76, of Philadelphia, PA, pleaded guilty today to taking part in a fraud scheme involving nine other judges at Philadelphia Traffic Court. Perri pleaded guilty to conspiracy to commit wire fraud and mail fraud, one count of mail fraud, and two counts of wire fraud. He faces a possible advisory sentencing guideline range of zero to six months in prison, before variances or departures.
Perri admitted receiving free auto repairs, free towing, free videos, and free seafood from a co-defendant in exchange for “fixing” tickets. Perri would receive traffic citation numbers, the names of offenders, or the actual citations to arrange “fixing” the ticket and would convey the information to William Hird, Director of Records, charged elsewhere. Hird, in turn, allegedly conveyed the request to the assigned judge. Court authorized intercepted telephone conversations reveal that Perri prioritized assisting the co-defendant from whom he received free services.
Defendant Hird, it is alleged, was extremely loyal to Perri given that Perri helped Hird move up the ladder to a high-level administrator at Traffic Court. Recorded conversations demonstrate that Hird acceded to Perri’s requests to “fix” certain tickets. Given Hird’s position at Traffic Court and access to the judges, Hird was allegedly able to facilitate requests for ticket fixing for Perri.
As part of the scheme, tickets were “fixed” by either being dismissed, finding the ticket holder “not guilty,” or finding the ticket holder guilty of a lesser offense. In many cases, the ticket holder did not even appear in Traffic Court, yet their ticket was “fixed.” As a result, the ticketholders paid lesser or no fines and costs, and evaded the assessment of “points” on their driver’s record. This widespread “ticket-fixing” defrauded both the Commonwealth of Pennsylvania and the City of Philadelphia of funds, and allowed potentially unsafe drivers to remain on the roads.
Perri is the third defendant to plead guilty. Co-defendants H. Warren Hogeland, who was a Bucks County Senior Magisterial District Judge, and Kenneth Miller, who was a Delaware County Senior District Judge, admitted to participating in the practice of giving breaks on Philadelphia traffic citations to friends, family, the politically-connected, and business associates. They entered their guilty pleas on February 12, 2013 and will be sentenced on May 24, 2013.This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Denise S. Wolf and Anthony J. Wzorek.
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, 215-861-8525Tacoma Sex Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
PORTLAND, Ore. — Depri Marquis Spenser, 25, of Tacoma, Washington, was sentenced to 10 years in prison today by United States District Judge Michael H. Simon, for transporting two young girls from Washington to Oregon for the purpose of prostitution. On October 17, 2012, Spenser pleaded guilty to one count of transporting a minor across state lines for prostitution. Upon release from custody, Spenser will serve a 10-year period of supervised release. During his supervised release, he must abide by a number of conditions which include a sex offender assessment and treatment program, no contact with minors without approval, restricted access to computers and the Internet, and registration as a sex offender.
“Attention out of state traffickers,” said U.S. Attorney Amanda Marshall. “If you are caught trafficking girls in this district, we will not send you home. We will send you to federal prison for at least ten years.”
"It is our responsibility as law enforcement to protect the children in our shared community," said Greg Fowler, Special Agent in Charge of the FBI in Oregon. "No child should be put on the street. No child should be sold for sex. No child should be subjected to the violence and abuse and exploitation that these kids are. We can and will come after the pimps who profit off these kids. With the public's help, we will continue to target those pimps, and we look to our partners on the FBI's Child Exploitation Task Force to lead the fight."
Spenser was arrested in February 2012, after transporting two 15-year-old girls from Tacoma to Seattle to Portland for the purpose of sex trafficking. In Portland, Spenser caused the girls to post prostitution advertisements on www.backpage.com, a website frequently used by sex traffickers. Several Portland-area men supported Spenser’s illegal trafficking by responding to these advertisements and setting up “dates” with one of the 15-year-old victims. Spenser drove with the victim to area hotels, dropped her off a few blocks away to avoid detection, picked her up afterwards, and then demanded all of the money she received from the “date.”
This case stemmed from a coordinated investigation by members of the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force (CETF), including the FBI, the Portland Police Bureau’s Minor Victims of Sex Trafficking Unit, and the Washington County Sheriff’s Office. The FBI’s CETF marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. CETF members include the Portland Police Bureau, Tigard Police Department, Vancouver Police Department, and Beaverton Police Department. CETF partners include the Multnomah County Sheriff’s Office and the Hillsboro Police Department. The case was prosecuted by Assistant U.S. Attorney Stacie Beckerman.
Substance Abuse Counselor Pleads Guilty to Federal Health Care Fraud ChargeRead the Press Release
March 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ALAN EMMETT BRADLEY, 57, of Norwalk, Conn., and Ocoee, Fla., pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of health care fraud.
According to court documents and statements made in court, BRADLEY, a certified alcohol and drug abuse counselor, obtained the Medicaid identification numbers of various Medicaid clients and used the identification numbers to submit hundreds of claims to Connecticut’s Department of Social Services. The claims alleged that BRADLEY performed 75 to 80-minute individual psychotherapy sessions to these Medicaid clients at his office in Norwalk. Hundreds of these counseling sessions did not occur and, for many of them, BRADLEY was actually living and attending school in Florida.
The Connecticut Medicaid program is a joint federal-state program designed primarily to finance the provision of medical services to the indigent. It is administered in Connecticut by the Department of Social Services, and is also supervised by the federal Centers for Medicare and Medicaid Service.
Through this scheme, BRADLEY defrauded the Connecticut Medicaid program of $151,898.75.
BRADLEY was arrested in Florida on May 17, 2012. He has been detained since November 29, 2012, after he was found to have violated certain conditions of his pretrial release.
Judge Bryant has scheduled sentencing for June 5, 2013, at which time BRADLEY faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter is being investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Special Assistant United States Attorney Michael Ahearn, Assistant United States Attorney David Sheldon and Auditor Kevin Saunders.
U.S. Attorney Fein encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Spaulding Rehabilitation Hospital North Shore Settles Allegations of Improper Medicare BillingRead the Press Release
BOSTON – On March 12, the United States reached a civil settlement with the Shaughnessy-Kaplan Rehabilitation Hospital (doing business as Spaulding Rehabilitation Hospital for Continuing Medical Care North Shore, or “Spaulding”), resolving allegations that it inappropriately billed Medicare for certain days of patient care in violation of Medicare’s “midnight rule.”
Spaulding has agreed to pay $91,800 to settle the allegations against it. This settlement resolves a civil lawsuit under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery.
The United States contended that Spaulding billed Medicare for days on which patients left the facility before midnight, in violation of the midnight rule which authorizes Medicare reimbursement only when a patient remains in the nursing facility through midnight on a given day. The investigation revealed that, over a period of years, Spaulding would sometimes transfer patients temporarily to the care of other medical providers before midnight, but still bill Medicare for the preceding day’s stay at Spaulding.
“Health care is too important to allow a single dollar to be wasted,” said United States Attorney Carmen M. Ortiz. “We will continue to investigate claims from whistleblowers to ensure that the tax dollars that fund Medicare and Medicaid are properly allocated.”
“Taxpayers and Medicare bargained to pay an honest day’s pay for an honest day’s work,” said Susan Waddell, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s Boston region. “But when hospitals violate that bargain – as the government charged here – our office will aggressively investigate and prosecute.”
U.S. Attorney Ortiz and SAC Waddell made the announcement today. The case was handled by Assistant United States Attorney Brian Pérez-Daple of Ortiz’s Affirmative Civil Enforcement Unit.
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in two separate cases regarding foreign nationals who entered the United States illegally after being deported as criminals. In each case, the individual was charged with one count of illegal re-entry after removal.
In the first case, United States District Court Chief Judge Michael J. Davis sentenced Hugo Beltran-Aragon, age 29, to time served. Beltran-Aragon was indicted on February 15, 2011, and pleaded guilty on September 10, 2012. In his plea agreement, Beltran-Aragon admitted that on June 8, 2010, he was found in the U.S. illegally after having been previously deported to Mexico in 2003, following a Hennepin County conviction for third-degree criminal sexual conduct.
This case was the result of an investigation by the Brooklyn Park Police Department and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (“ICE ERO”). It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.In the second case, on March 11, 2013, Sergio Vasquez, age 36, pleaded guilty before U.S. District Court Judge Susan Richard Nelson in St. Paul. He was indicted on January 8, 2013. In his plea agreement, Vasquez admitted that on December 4, 2012, he was found in the U.S. after having been previously deported to Mexico in 2008, following a 2003 Pennsylvania conviction for delivery of a controlled substance. On December 3, 2012, Vasquez was arrested by Minneapolis Police for DWI in connection to a personal-injury crash in south Minneapolis. He was identified as an illegal alien with a criminal record. That identification was made though the ICE’s Criminal Alien Program (“CAP”). The goal of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.
For his crime, Vasquez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Police Department and ICE ERO. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Both men will be deported after serving their federal sentences. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/Owner of Tax Preparation Business Sentenced<br /> in Alabama to Federal PrisonRead the Press Release
Bruce King, the founder and operator of Premier Tax, was sentenced today in Montgomery, Ala., to 70 months in prison and ordered to pay $781,305 in restitution to the Internal Revenue Service (IRS) for orchestrating a tax fraud scheme at his business, the Justice Department and the IRS announced. King had previously pleaded guilty to charges of conspiring to defraud the United States and filing false tax returns.
According to court documents, Premier Tax was a tax preparation business operated by King that had several locations in Alabama and Georgia. King held training sessions in which he taught preparers how to falsify tax returns in order to fraudulently increase clients’ tax refunds. Those he taught went on to work at Premier Tax and filed numerous false tax returns. According to court documents, the tax loss caused by these fraudulent returns exceeded $1 million. To date, seven return preparers trained by King have also pleaded guilty and been sentenced.
This case was investigated by special agents of the IRS - Criminal Investigation. Trial Attorneys Jason Poole and Justin Gelfand of the Justice Department’s Tax Division and Assistant U.S. Attorney Jared Morris are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Owner of Colorado Aircraft Painting Company Pleads Guilty to Unlawfully Treating Hazardous WasteRead the Press Release
Norman Teltow, owner of Gold Metal Paint Co. LLC (GMP), pleaded guilty late yesterday in Denver to a criminal information charging him with illegally treating hazardous waste at the company’s facility, the Justice Department announced. Teltow, who will be sentenced on June 10, 2013, faces a maximum sentence of five years in prison, a $250,000 fine, and three years of supervised release.
Teltow operated GMP out of a hangar near the Front Range Airport in Watkins, Colo. GMP was primarily in the business of painting small aircraft. During the course of its business, GMP created hazardous waste in the form of spent methylene chloride-based solvents mixed with paint waste. Methylene chloride, a listed hazardous waste, is both ignitable and toxic. Moreover, exposure to methylene chloride can cause skin irritation, headache, dizziness, nausea, and vomiting.
Under the Resource Conservation and Recovery Act, GMP was required to use a licensed waste management company to transport the hazardous waste to a licensed facility for disposal. To avoid the costs associated with proper disposal, Teltow directed GMP employees to store the spent solvents in an underground tank below the facility, knowing that it was illegal to store the waste in that manner.When the Colorado Department of Public Health and Environment (CDPHE) became aware that Teltow and GMP were storing hazardous waste in an underground tank, the agency conducted an inspection and ordered Teltow to hire a licensed waste management company to pump the waste out of the tank and dispose of it properly. CDPHE further ordered that the tank be cleaned, that the trench drain leading to the underground tank be sealed, and that GMP use a licensed waste management company to transport all hazardous waste in the future. In response to CDPHE’s orders, Teltow hired a licensed waste management company to pump out the tank, and sealed off the trench drain to the underground tank. However, rather than hire a licensed waste management company to clean out the tank, Teltow ordered subordinate employees to clean out the tank without the benefit of any personal protective equipment. The employees were exposed to hazardous waste containing methylene chloride, and suffered from headaches, dizziness, and nausea.
Teltow then devised a new plan for treating GMP’s hazardous waste by “evaporating” it into the atmosphere. Teltow ordered subordinate GMP employees to pour the hazardous waste onto the floor of the hangar at the end of the work day. Workers would then leave the hangar doors ajar and allow the methylene-chloride waste to evaporate. Teltow knew that it was illegal to treat the hazardous waste in this manner. When Teltow’s “evaporation” method was unsuccessful at treating all of the waste that GMP accumulated, Teltow drilled open the trench drain so that the waste could again flow into the underground tank.
“The illegal handling of hazardous waste threatens public safety and the environment and puts workers in harms way,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Colorado. “The defendant admits that he attempted to make hazardous waste ‘disappear’ by ordering his workers to allow spent solvents to evaporate and to clean up hazardous chemicals without protective safety gear, putting the workers at great risk. Although this case centers on the illegal treatment of hazardous materials, it’s really about the defendant trying to save a buck by cutting corners.”
The investigation was conducted by the Environmental Protection Agency, Criminal Investigation Division, with assistance from inspectors at the Occupational Safety and Health Administration and CDPHE. The case was prosecuted by James B. Nelson of the Department of Justice’s Environmental Crimes Section
Owner and Manager of Disaster Restoration, Inc. Sentenced to Prison for Conspiracy and Mail FraudRead the Press Release
DENVER – The owner/operator of Disaster Restoration, Inc., Michael Arthur Griggs, age 58, of Lafayette, Colorado, was sentenced today by Chief U.S. District Court Judge Marcia S. Krieger to serve 50 months in federal prison today for conspiracy and mail fraud, the U.S. Attorney’s Office and the U.S. Postal Inspection Service announced. Following his prison sentence, Chief Judge Krieger sentenced Griggs to serve 3 years on supervised release. He was also ordered to pay a $500,000 fine, and $477,643.49 in restitution. He was ordered to report to a facility designated by the Bureau of Prisons within 15 days of designation.
A co-defendant, Charles Sharp, age 52, of Broomfield, Colorado, the chief operating officer/general manager, was sentenced by Chief Judge Krieger on March 11, 2013, to serve 36 months in prison, followed by 3 years of supervised release. He was also ordered to pay restitution totaling $477,643.49 joint and several with Griggs. In August of 2012, a jury found Griggs guilty of one count of conspiracy and 13 counts of mail fraud. The jury also found Sharp guilty of one count of conspiracy and 9 counts of mail fraud.
Disaster Restoration, Inc., (DRI), was a Colorado corporation located in Denver, Colorado. DRI engaged in the repair, restoration, and reconstruction of commercial and residential real estate properties that have been damaged by fire, water, and other disasters. DRI acted as a general contractor, which regularly hired and paid subcontractors to restore damaged properties and then submitted the cost of the repairs made by these subcontractors to insurance companies for payment.
At trial the government proved that beginning in or about the Fall of 2003, and continuing until approximately early 2007, the defendants knowingly agreed and conspired with each other to commit mail fraud. Further, every Tuesday, DRI would hold an internal meeting where they often discussed how to instruct many of the subcontractors working for DRI to inflate their original bid proposals by 20% to 30%. DRI employees regularly instructed subcontractors to provide DRI with two different documents reflecting their bids, one inflated and one non-inflated, for the same work they would perform for DRI. The inflated price was to be submitted to the insurance company for payment while DRI would pay the subcontractor based on the lower original price. DRI pocketed the difference between the inflated price paid by the insurance company and the lower price paid out to the subcontractor thereby increasing, often substantially, DRI’s profit margin on DRI’s restoration projects.
The insurance companies relied on these false and inflated subcontractor prices when they made payments for the restoration projects performed and supervised by DRI. Most of these insurance payments were sent through the United States Postal System. DRI would, in turn, issue checks payable to the subcontractors and mail them as well.
“Insurance fraud results in higher premiums for everyone,” said U.S. Attorney John Walsh. “I would like to recognize the hard work of the prosecutors from the U.S. Attorney’s Office, for obtaining a conviction in this case. I would also like to thank the Postal Inspectors who worked so diligently preparing this case for prosecution.”
“Insurance fraud, like many financial crimes, erodes the integrity of our Insurance Industry, and threatens the financial health of our communities,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “It is critical we make every effort to protect the public from insurance fraud and its impact on our consumers by ensuring the integrity of the U.S. Mail.”
The case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
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Orange County Couple Sentenced to Prison in Federal Fraud Case for Bilking Seven Banks Out of Nearly $5 MillionRead the Press Release
SANTA ANA, California – A husband and wife from Newport Coast have been sentenced to federal prison for defrauding a consortium of seven banks, including Bank of America, in connection with a $130 million line of credit.
Thomas Chia Fu, 64, was sentenced yesterday to 21 months in federal prison.
Fu’s wife, Cheri L. Shyu (also known as Cheri Fu), 61, was sentenced on March 4 to three years in federal prison.
In addition to the prison terms, United States District Judge Cormac J. Carney ordered to Fus to pay $4.7 million in restitution.
The Fus owned Anaheim-based Galleria USA, Inc., which imported home decor items manufactured in China. The Fus obtained a $130 million revolving line of credit for Galleria from a consortium of seven banks. In connection with that revolving line of credit, the couple overstated by tens of millions of dollars the accounts receivables of the company – lies they told the banks in order to continue borrowing funds under the revolving line of credit, according to court documents. When they pleaded guilty last year, the Fus also admitted to falsifying in Galleria’s computer system the accounts receivable amounts by a factor of 10 or more times the actual amount purchased to support the exaggerated numbers and hide Galleria’s true financial status.
“Bank fraud is not a victimless crime as it has detrimental effects on both creditors and consumers,” said United States Attorney André Birotte Jr. “The Fus plundered a consortium of banks, which deprived legitimate customers from having access to the those funds and caused the financial institutions to suffer millions of dollars in losses. The prison sentences issued to this couple demonstrate our resolve to hold fraudsters accountable for their crimes.”
The banks suffered losses of $4.7 million on the revolving line of credit from October 2008 to July 2009.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, and the United States Secret Service.
“At a time when taxpayers were bailing out Bank of America and United Commercial Bank with TARP funds, Thomas and Cheri Fu defrauded those banks and others out of nearly $5 million,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “The Fus fraudulently obtained funds from the TARP banks and other banks using a second set of books that overstated accounts receivable. They lived comfortably off the money, buying property and putting their daughter through college, when many taxpayers who funded the bailout were tightening their belts. Illegally profiting from the TARP bailout is reprehensible and will be met with swift justice by SIGTARP and our law enforcement partners.”
SIGTARP investigates fraud, waste, and abuse in connection with the Troubled Asset Relief Program (TARP). To report suspected illicit activity involving TARP, call the SIGTARP Hotline at 1-877-SIG-2009 (1-877-744-2009).
Release No. 13-034
Olathe Contractor Pleads Guilty to Tax EvasionRead the Press Release
KANSAS CITY, KAN. – The owner of an Olathe drywall contracting company has pleaded guilty to failing to pay more than $370,000 in federal income taxes, U.S. Attorney Barry Grissom said today.
Marcos Bowman, 41, Olathe, Kan., pleaded guilty to one count of federal tax evasion. In his plea, he admitted he did not file an individual income tax return in 2007, 2008 and 2009 even though the company he owned, BCK Drywall, had gross receipts during those years of more than $7.9 million. Based on bank records and other sources, he owed at least $373,473 dollars in income tax during those years.
Bowman’s company installed drywall on new commercial projects such as hotels and apartments. Bowman paid for his personal expenses out of BCK’s bank accounts. He took actions to avoid taxes including paying for a girlfriend to purchase a $355,000 home in Olathe in her name and then transfer the property to the mother of his children. He also paid for the purchase of several vehicles in his girlfriend’s name.
He also failed to provide subcontractors who did work for his company with Form 1099s so they could report the income they received from him on their own tax returns.
Sentencing is set for June 17. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. IRS Criminal Investigation investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
New Haven Man Sentenced to 30 Months in Federal Prison for Distributing HeroinRead the Press Release
March 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that CARL HAILEY, also known as “Squirt,” 48, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by five years of supervised release, for distributing heroin.
HAILEY 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. The investigation revealed that HAILEY conspired with others to purchase and redistribute heroin.
HAILEY was on state special parole at the time of this offense, and he has been detained in state custody since February 14, 2012, for violating his parole. His maximum release date from state custody is January 22, 2014.
Judge Burns ordered HAILEY to begin serving his 30-month federal sentence after his release from state custody.
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 S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Middlesex County, N.J., Man Charged with Five Bank RobberiesRead the Press Release
NEWARK, N.J. – A New Brunswick, N.J. man has been arrested in connection with five bank robberies, U.S. Attorney Paul J. Fishman announced today.
Peter Greer, 38, of New Brunswick, N.J., is charged by Complaint with five counts of bank robbery. He made his first court appearance later today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the Complaint:
Greer robbed three banks in Essex County, one bank in Passaic County and attempted to rob one bank in Essex County. Greer used a similar procedure for all robberies: After entering the bank and approaching the teller window, he would hand the victim teller a note that claimed he had a gun and demanded money.
The banks Greer is charged with robbing are: ∙ Sept. 27, 2012, Valley National Bank, Newark; ∙ Oct. 31, 2012, Greer attempted to rob Sovereign Bank, Newark; ∙ Nov. 6, 2012, Valley National Bank, Belleville, N.J.; ∙ Dec. 8, 2012, Valley National Bank, Passaic, N.J.; ∙ Feb. 23, 2013, Valley National Bank Belleville.
If convicted on the bank robbery charges, Greer faces a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, for each count with which he is charged.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, with the investigation leading to charges. He also thanked N.J. State Parole Board, the Newark Police Department, the Passaic Police Department and the Passaic County Sheriff’s Department for their contributions to the case.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-117
Defense Counsel: Linda Foster Esq., Assistant Federal Public Defender, NewarkGreer Complaint
Manhattan U.S. Attorney Announces Arrest of Four Bronx Men in Connection with Robbery and Shooting of Off-Duty Police OfficerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Joseph Anarumo, Jr., Special-Agent-in-Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced that JEFFREY OKINE, MARQUIS DANIELS, RAYSHAUN JONES, and TYQUEZ HARRELL were arrested today on robbery and gun charges in connection with their alleged January 2013 attempt to rob employees at a used car dealership in the Bronx, including off-duty NYPD Police Officer Juan Pichardo. Officer Pichardo was allegedly shot in the leg by OKINE during the course of the robbery. OKINE, DANIELS, JONES, and HARRELL were arrested and taken into federal custody today at Rikers Island, where they were being held since January 4, 2013, on state charges for these offenses. All four defendants will be presented in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “Officer Juan Pichardo was true to his NYPD badge, even off duty, when he bravely resisted this alleged armed robbery and it was sheer luck that he was not fatally injured doing so. These four defendants, who are alleged to have engaged in a robbery spree in the Bronx, will now have to answer for their conduct.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said: “Gun violence in our community is unacceptable. Particular to this arrest, allegations involving the use of firearms in a violent act to include the shooting of an off-duty NYPD Officer will not be tolerated. The United States Attorney’s Office, NYPD and ATF have worked jointly on this matter to ensure that these perpetrators are punished severely under federal law. I commend all who have participated in this investigation.”
NYPD Commissioner Raymond W. Kelly said: “Officer Pichardo was one of three NYPD officers shot in separate incidents in Brooklyn and the Bronx within one hour on Jan. 3. Despite their injuries, he and his colleagues took swift and courageous action to prevent harm from coming to others. The arrests of Officer Pichardo’s alleged assailants show that the New York City police and prosecutors will not relent in bringing to justice those who wield illegal guns and squander the public’s safety.”
According to the allegations in the Complaint unsealed today in Manhattan federal court and other documents in the public record:
OKINE, DANIELS, JONES, and HARRELL robbed employees at a variety of commercial establishments in the Bronx. During a January 3, 2013, robbery, OKINE and HARRELL went to a car dealership and posed as potential buyers. When the off-duty officer and another employee brought them into the dealership’s office, HARRELL took out a gun and ordered the employees to empty their pockets. OKINE and HARRELL took their money and cellphones. HARRELL then gave OKINE the gun and went to inspect a safe. OKINE got into a skirmish with the off-duty police officer and shot him in the leg. He then tried to flee, but two other employees stopped him. HARRELL managed to run away and got into a getaway car, but NYPD officers apprehended and arrested him along with DANIELS and JONES. Among the items recovered from the car was the off-duty officer’s cell phone.
OKINE, 21, DANIELS, 23, JONES, 25, and HARRELL, 22, have all been charged with one count of Hobbs Act robbery conspiracy, which carries a maximum sentence 20 years in prison, and one count of using, possessing and discharging a firearm in relation to a crime of violence, which carries a maximum sentence of life in prison.
Mr. Bharara praised the ATF and the NYPD for their work in this investigation.
The prosecution is being overseen by the Office's Violent Crimes Unit. Assistant United States Attorneys Jessica Ortiz and Parvin Moyne are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Jeffrey Okine, et al. Complaint