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5 March 2013
Owner of Colorado Car Dealership and Two Associates Arrested for Structuring and Money LaunderingRead the Press Release
DENVER – Raul Mendoza, age 48, Julia Castillo-Caraveo, age 28, both of Denver, Colorado, and Isidro Noe Mendoza-Ortiz, age 25, of Thornton, Colorado were arrested this morning for structuring and money laundering, the United States Attorney’s Office, IRS Criminal Investigation, the Drug Enforcement Agency (DEA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) announced. All three defendants were named in a sealed indictment returned by a federal grand jury in Denver on February 14, 2013. The defendants appeared this afternoon before a U.S. Magistrate Judge, where they were advised of their rights, and the charges pending against them. All three are scheduled to appear in court on Friday, March 8, 2013 at 10:00 a.m. for a detention hearing and for arraignment.
This morning, in addition to the three arrests, agents and officers executed search warrants at a residence and an automobile business. Twenty automobiles with clear titles from the car dealership were seized.
According to the indictment, beginning in February 2008, and continuing through May 2012, Raul Mendoza (Mendoza) and Isidro Noe Mendoza-Ortiz (Mendoza-Ortiz), conspired with each other and others to structure currency (the depositing of just under $10,000) by depositing transactions with the intent to evade the reporting requirements as required by law. Daily cash receipts from the business, Chopeque Auto Sales, which is owned by Mendoza, were received at the business and structured into separate accounts at various banks to avoid the $10,000 reporting requirements. From February 26, 2008 through May 29, 2012, they structured over 700 deposit totaling $4,543,714.
As part of the conspiracy, on June 4, 2011, Mendoza, Mendoza-Ortiz and Julia Castillo-Caraveo (Castillo-Caraveo), knowingly caused Chopeque Auto Sales, a non-financial trade or business, to fail to file a Federal IRS Form 8300, a report required by law for all currency transactions over $10,000 received by a business. Particularly, they sold a 2004 Dodge Ram 1500 in exchange for $10,500 that was represented by undercover law enforcement officers to be the proceeds of a specified unlawful activity (drug distribution) and that they did so with the intent to conceal the nature of the proceeds of the specified unlawful activity and to avoid IRS Form 8300 reporting requirements. On March 8, 2012, Mendoza and Castillo-Caraveo followed a similar pattern and sold a 2008 Chevrolet Silverado 1500 in exchange for $20,900 that was represented by undercover law enforcement officers to be the proceeds of a specified unlawful activity (drug distribution); no IRS From 8300 was filed.
The defendants conspired to conceal the nature and source of the specified unlawful activity and attempted to launder drug proceeds. Particularly, Chopeque Auto Sales sold automobiles to known drug dealers, prepared false documents relating to the sale of vehicles to known drug dealers, structured currency deposits to conceal the source, falsely claimed to law enforcement authorities to be a valid lien holder of a seized vehicle in order to assist a known drug dealer in seeking the return of the vehicle. Upon conviction of the offenses above, they shall forfeit to the United States all of the defendants right, title and interest in all property, real or personal, involved in such offenses, or all proceeds traceable to such property, for which the defendants are joint and severally liable.
“Working with our federal, state and local law enforcement partners, we were able to uncover a sophisticated scheme where the defendants hid drug dealing proceeds by laundering the money through the sale of automobiles,” said U.S. Attorney John Walsh.
“I applaud the fine work of the investigators and prosecutors who used very innovative techniques to shut down this financial conspiracy facilitating illicit drug trafficking organizations,” said DEA Denver Field Division Special Agent in Charge Barbra M. Roach.
“Helping drug dealers launder drug money is unacceptable and illegal. IRS CI will work with our law enforcement partners to ensure those who do are brought to justice,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
“Drug smugglers use various creative means to launder and conceal their illegal drug profits,” said Kumar C. Kibble, special agent in charge of HSI Denver. “HSI and our law enforcement counterparts were able to pool our law enforcement authorities and expertise to identify and investigate the significant structured deposits made under the guise of a legitimate car dealership.”
Mendoza was charged with three counts of structuring and three counts of money laundering. Castillo-Caraveo was charged with two counts of structuring and three counts of money laundering. Mendoza-Ortiz was charged with two counts of structuring and two counts of money laundering. If convicted, each count of structuring and money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $500,000.
This case was investigated by agents with IRS-Criminal Investigation (IRS-CI), the Drug Enforcement Administration (DEA) and the Department of Homeland Security. In addition, Denver Police Department, Commerce City Police Department, Thornton Police Department, and Department of Revenue – Auto Industry Division assisted in the execution of the warrants.
The case is being prosecuted by Assistant U.S. Attorney Jim Boma. The asset forfeiture is being handled by Assistant U.S. Attorney Tonya Andrews.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Ottawa Woman Sentenced to 25 Years for Running Prescription Drug Trafficking RingRead the Press Release
KANSAS CITY, KAN. – An Ottawa, Kan., woman has been sentenced to 25 years in federal prison for running a prescription drug trafficking ring tied to the death of a man who died from taking a mixture of prescription drugs, U.S. Attorney Barry Grissom said today.
Connie Edwards, 61, Ottawa, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute prescription drugs. In her plea, she admitted that from Nov. 1, 2007, to Feb. 28, 2012, she conspired with others to distribute oxycodone, hydrocodone, methadone, morphine and other prescription drugs in Ottawa.
An investigation began early in 2010 when the Franklin County Drug Enforcement Unit received information that people working for Edwards were distributing prescription drugs in Ottawa. Sources told investigators Edwards rented to people who paid her in prescription pills and she accepted stolen property in payment for pills.On May 10, 2009, a victim who bought drugs from the Edwards' organization, was found unconscious in the living room of his mother's home. He was taken to a hospital and pronounced dead. An autopsy revealed that he died from taking a toxic combination of methadone, hydrocodone and carisoprodol.
Investigators learned that the afternoon before the victim died he went to Edwards' house, where he bought a white powder he was told was methamphetamine. In fact, one of Edwards' associates produced the powder by crushing prescription pills including hydrocodone, methadone and carisoprodol. Edwards was present when the victim bought the drugs, but the associate handled the sale. Later that evening, the victim purchased prescription pills from Edwards, who delivered the pills to the victim in a van outside the Hidden Meadows apartment complex in Ottawa. The victim then took the pills and injected the substance he believed was methamphetamine, creating a toxic combination that caused his death.
Investigators documented numerous incidents in which Edwards and her associates sold prescription drugs.
Co-defendants include: Brittany Edwards, 20, Ottawa, Kan., who is set for sentencing May 6. Shirley Price, 45, Ottawa, Kan., who is set for sentencing June 10.
Dustin Price, 24, Ottawa, Kan., who is set for sentencing May 6.
Joel Keith Price, 55, Ottawa, Kan., who is set for sentencing May 6.
Morgan Price, 22, Ottawa, Kan., who was sentenced to 5 years probation with 6 months in the halfway house.
Brandi Bivens, 31, Ottawa, Kan., who is set for sentencing July 22.
Angela Mitchell, 36, Ottawa, Kan., who is set for sentencing April 29.
Tamara Ledom, 37, Ottawa, Kan., who is set for sentencing May 28.
Florence Edwards, 39, Ottawa, Kan., who is set for sentencing April 15.Grissom commended the Franklin County Drug Task Force, the Drug Enforcement Administration, the Ottawa Police Department, the Franklin County Sheriff’s Office, the Internal Revenue Service, the Kansas Bureau of Investigation and Assistant U.S. Attorney Sheri McCracken for their work on the case.
Oregon Resident Charged with Conspiring to Provide Material Support to Terrorists in Connection with Suicide Bombing of ISI Headquarters in PakistanRead the Press Release
PORTLAND, Ore. – Reaz Qadir Khan, 48, a naturalized U.S. citizen residing in Portland, has been arrested on charges of conspiracy to provide material support to terrorists for the assistance he allegedly provided to an individual who participated in a May 27, 2009, suicide bomb attack at the headquarters of Pakistan’s intelligence service in Lahore, Pakistan, that killed approximately 30 individuals and injured 300 more.
The arrest was announced by Amanda Marshall, U.S. Attorney for the District of Oregon; Lisa Monaco, Assistant Attorney General for National Security; and Gregory Fowler, Special Agent in Charge of the FBI Portland Division.
FBI agents arrested Khan this morning without incident at his residence in Portland. He made his initial appearance today before Magistrate Paul Papak in federal court in Portland, where the charges against him were unsealed and defendant was detained, pending a detention hearing tomorrow, Wednesday, March 6, 2010 at 1:30 p.m. Khan is charged by a federal indictment with one count of conspiracy to provide material support to terrorists. If convicted, he faces a potential maximum sentence of life in prison.
“The indictment unsealed today set forth how Mr. Khan allegedly supported a terrorist who killed dozens of innocent people in Lahore Pakistan,” said U.S. Attorney Amanda Marshall. “The events of May 27, 2009 remind us that terrorism is not defined by Muslims targeting non-Muslims, but is defined by violent extremists targeting anyone they perceive as a threat to their oppressive agenda without regard for the religion, race, or nationality of their victims. We will find and prosecute those who use this country as a base to fund and support terrorists. Dismantling terrorist networks continues to be a top priority for this office and the Department of Justice.”
“Those who provide material support to terrorists are just as responsible for the deaths and destruction that follow as those who commit the violent acts,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “The FBI will continue to focus on cutting off the flow of funds that help terrorists train, travel and launch their attacks.”
According to the indictment, from Dec. 14, 2005 through June 2, 2009, Khan conspired with an individual named Ali Jaleel and others to provide material support and resources, and to conceal the nature of such support and resources, knowing they would be used in a conspiracy to kill, maim or kidnap persons abroad. Jaleel was a Maldivian national who resided outside the United States. Jaleel died while participating in the suicide attack on the Inter-Services Intelligence (ISI) headquarters in Lahore on May 27, 2009, according to the indictment.
As part of the conspiracy, Khan allegedly used email and intermediaries to provide advice and financial assistance to Jaleel and his family. Khan allegedly provided Jaleel with advice to help him in his efforts to travel undetected from the Maldives to commit violent jihad and used coded language when communicating with Jaleel to avoid detection. Further, Khan allegedly provided financial assistance so Jaleel could attend a training camp to prepare for an attack such as that carried out in Lahore on May 27, 2009. Khan also allegedly provided financial support and advice to Jaleel’s family while Jaleel traveled to Pakistan and after he died.
In April 2006, Jaleel and a small group from the Maldives attempted to travel to Pakistan to train for violent jihad in Iraq or Afghanistan, but they were detained and returned to the Maldives, where Jaleel was placed under house arrest, according to the indictment.
In 2008, Jaleel allegedly emailed Khan about his plans to travel to Pakistan again, and in response, Khan provided advice to Jaleel on how to avoid detection and offered to arrange for money to be sent to Jaleel. In October 2008, Jaleel allegedly told Khan he needed “$2500 for everything” and asked that Khan take care of his family and educate his children. Khan promised to help Jaleel’s family. Khan later instructed Jaleel to pick up the money he needed to enter the training camp from an individual in Karachi, Pakistan. To arrange for this transfer, Khan allegedly contacted an individual in Los Angeles who he knew could quickly arrange for Jaleel to pick up money in Pakistan. According to indictment, the individual in Los Angeles then arranged for the money to be available for pick-up from the individual in Karachi.
On Nov. 5, 2008, Jaleel wrote Khan that he was about to gain admission to the training camp and that he would have left-over money from the funds that Khan had provided him. Khan allegedly advised Jaleel to keep the extra funds so they could be sent to Jaleel’s two wives in the Maldives and instructed Jaleel to leave a closed envelop with the individual in Karachi.
According to the indictment, on May 27, 2009, Jaleel and two others conducted the suicide attack at the ISI Headquarters in Lahore. The blast resulted in the death of approximately 30 people and injured 300 more. In a video released by the media outlet of al-Qaeda shortly after the attack, Jaleel allegedly made a statement taking responsibility for the attack and he was shown preparing for the attack at a training camp in what is believed to be the Federally Administered Tribal Area of Pakistan. In June 2009, Khan allegedly wired approximately $750 from a store in Oregon to one of Jaleel’s wives in the Maldives.
This case was investigated by the FBI. The prosecution is being handled by Assistant U.S. Attorney Ethan D. Knight from the U.S. Attorney’s Office for the District of Oregon. Trial Attorney David P. Cora, from the Counterterrorism Section of the Justice Department’s National Security Division, is assisting.
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty in a court of law.
For additional information, the attached indictment can be found at this link.
Oregon Man Sentenced for Growing Marijuana in N. IdahoRead the Press Release
Four Co-Conspirators Sentenced Earlier
COEUR D’ALENE – Justin Edward Egner, 36, of Springfield, Oregon, the fifth defendant in a multi-state marijuana trafficking operation, was sentenced today in United States District Court in Coeur d’Alene, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Egner to 40 months in prison followed by four years of supervised release for conspiracy to manufacture and possess with intent to distribute marijuana. Judge Lodge also ordered Egner to forfeit $75,000 and a number of vehicles to the United States. He pleaded guilty to the charges in September 2012.
Court documents and statements made during the plea hearing indicate that between January 2008 and July 2010, Egner conspired with others, including co-defendants, to grow marijuana on property owned by Robert Baucum in Naples, Idaho. The conspiracy involved at least 100 kilograms of marijuana. During the investigation, law enforcement officers seized marijuana, marijuana growing equipment, vehicles, over $50,000 in currency and precious metals, and over $1 million in real estate.
In November 2012, four co-conspirators were sentenced to serve federal prison sentences. Robert Wayne Baucum, 57, of Scio, Oregon, was sentenced to 70 months; Charles Albert Goodenough, 41, of Houston, Alaska, to 37 months; Ronald Clifford Underwood, 55 of Albany, Oregon, to 34 months; and Raymond Earl Hogle, 51, of Albany, Oregon, to 21 months. The men were also ordered to serve between three and five years of supervised release following their prison terms.
The case was investigated by the Idaho State Police, Boundary County Sheriff’s Office, the Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation, Linn County Sheriff’s Office (Oregon), and the Alaska State Troopers.
The investigation was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
Navajo Man Sentenced to 166 Months Imprisonment for Assault with A FirearmRead the Press Release
PHOENIX – On March 4, 2013, Harry McCabe, Sr., 52, of Woodsprings, Ariz. was sentenced by U.S. District Judge James A. Teilborg to a cumulative sentence of 166 months imprisonment. McCabe was found guilty by a federal jury on Nov. 29, 2012, of one count of assault with a dangerous weapon, one count of assault resulting in serious bodily injury, and two counts of discharging a firearm during a crime of violence
The evidence at trial showed that the defendant assaulted the victim by firing a .22 caliber rifle at him, causing a bullet wound to the head resulting in serious bodily injury.
At sentencing, Judge Teilborg sentenced McCabe to the mandatory minimum sentence of 120 months imprisonment for discharging a firearm during a crime of violence and an additional 46 months imprisonment for the assault charges, ordering the 46 month sentence to run consecutive to the defendant’s 120 month sentence of imprisonment.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigation. The prosecution was handled by Cassie Bray Woo, Brian E. Kasprzyk, and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8135-PCT-JAT
RELEASE NUMBER: 2013-020_ McCabeFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Massachusetts Man Sentenced in Manhattan Federal Court for Hiding Millions from Irs in Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JACQUES WAJSFELNER was sentenced today to six months of probation, including three months of home confinement, for willfully failing to file Reports of Foreign Bank and Financial Accounts (“FBARs”) with the IRS, regarding Swiss bank accounts that he maintained and controlled. WAJSFELNER used the services of Beda Singenberger, a Swiss financial adviser who was charged in July 2011 with conspiring with various U.S. taxpayers and others to hide more than $184 million offshore at various Swiss banks. WAJSFELNER also had undeclared accounts at Wegelin & Co., a Swiss bank sentenced yesterday for conspiring to evade taxes, file false tax returns, and defraud the IRS in the Southern District of New York, and Credit Suisse. As part of his resolution of the criminal charges against him, WAJSFELNER agreed to pay a civil penalty of over $2.8 million, representing 50% of the high value of the accounts that he maintained. Today’s sentence was imposed by U.S. District Judge Naomi Reice Buchwald.
According to the Information filed in Manhattan federal court, other court documents, and statements made in connection with WAJSFELNER’s guilty plea and sentencing:
Under federal law, when filing Individual Income Tax Returns, form 1040, U.S. taxpayers are required to report their worldwide income. Taxpayers who have a financial interest in, or signature or other authority over, a bank account in a foreign country with an aggregate value of more than $10,000 at any time during a particular year, are required to file FBARs every year for each qualifying account. The FBAR requires the disclosure of the financial institution where the account is held, the type of account, the account number, and the maximum value of the account during the calendar year for which it is being filed.
Beginning in 1995, WAJSFELNER held an account in his own name at Credit Suisse, a Swiss bank with its headquarters in Zurich, Switzerland. In June 2006, with the assistance of Singenberger, WAJSFELNER opened an undeclared account at Credit Suisse in the name of a sham corporation formed under the laws of Hong Kong, Ample Lion Ltd. (“Ample Lion”). By opening the Ample Lion account at Credit Suisse, WAJSFELNER was attempting to obscure his ownership of the assets in the account from the IRS. As of December 31, 2007, WAJSFELNER’s account at Credit Suisse in the name of Ample Lion held assets valued at nearly $5.7 million.
In the fall of 2008, Credit Suisse began the process of exiting its U.S. cross-border banking business. In order to continue hiding money in Switzerland, in June 2009, WAJSFELNER opened an undeclared account at Wegelin. With Singenberger’s assistance, WAJSFELNER then transferred the assets from his account at Credit Suisse into his account at Wegelin. As of December 31, 2010, WAJSFELNER’s account at Wegelin held assets valued at nearly $5.5 million.
For each of the calendar years from 1995 through 2011, WAJSFELNER failed to file an FBAR with the IRS disclosing his authority over his accounts at the Credit Suisse and at Wegelin. His tax returns for the years 2005 through 2011 were similarly false in omitting the information about his Swiss bank accounts. WAJSFELNER’s sentencing is the latest in a series of prosecutions in the Southern District of New York of U.S. taxpayers who held undeclared accounts in Switzerland at UBS, Wegelin, Credit Suisse, and/or other Swiss banks, and who failed to make timely voluntary disclosures to the IRS as part of the IRS’s Voluntary Disclosure Program.
In addition to his probation, WAJSFELNER, 83, of Weston, Massachusetts, was also ordered to pay back taxes of $419,940 and a fine of $20,000.
The case against Singenberger is pending. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
Wegelin was sentenced yesterday and ordered to pay approximately $58 million to the United States. Together with the April 2012 forfeiture of more than $16.2 million from Wegelin’s U.S. correspondent bank account, this amounts to a total recovery to the United States of approximately $74 million.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation, which he noted is ongoing. Mr. Bharara also thanked U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Daniel W. Levy, Jason H. Cowley, and David B. Massey are in charge of the prosecution.
Manhattan U.S. Attorney Sues Park Avenue Medical Associates for Medicare Billing FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a lawsuit against PARK AVENUE MEDICAL ASSOCIATES (“PAMA”) and PARK AVENUE MEDICAL ASSOCIATES, P.C. (“PAMA PC”), and related entities, alleging that they billed Medicare for services purportedly provided to elderly, mentally ill patients that were not medically necessary, were not documented in the medical record, and/or failed otherwise to comply with Medicare rules and regulations. The Government’s Complaint alleges that, as a consequence of the conduct of PAMA and PAMA PC, the entity that allegedly submitted claims to Medicare on behalf of PAMA, Medicare paid the defendants for thousands of claims that were not eligible for payment, resulting in over $1 million in damages.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Park Avenue Medical Associates inundated Medicare with bogus claims, including bills for unnecessary psychiatric services for vulnerable elderly patients, who did not have the ability to benefit from the services. We will continue our efforts to protect this taxpayer-funded program and the people who rely on it for care from fraud and abuse.”
According to the Complaint filed today in Manhattan federal court:
PAMA directly employs physicians, nurses, and other medical professionals who provide services to elderly patients at hospitals, including inpatient psychiatric facilities, nursing homes, assisted living facilities, and other types of long-term care facilities. The patients and residents at these facilities suffer from various chronic health conditions, including Alzheimer’s disease, dementia, schizophrenia, psychosis, depression, and anxiety. The doctors and nurses employed by PAMA receive a salary from PAMA, which contracts with the facilities. In addition to their regular salaries, psychiatrists and psychologists employed by PAMA receive bonuses based on how many services they provide and the level of reimbursement they generate for PAMA from government and other insurance providers, including Medicare.
Medicare prohibits payment for services that are not reasonable and necessary for the diagnosis or treatment of an illness or injury. Medicare also prohibits payment for any claim without adequate documentation substantiating the reasonableness and necessity of the services provided. In particular, Medicare does not cover psychotherapy services rendered to patients with Alzheimer’s disease or dementia unless the patient’s dementia is mild, the patient has the capacity to recall what occurred at the therapy from one session to the next, and that capacity is documented in the patient’s record. Psychotherapy services are not covered when dementia has produced a severe enough cognitive deficit to prevent them from being effective. In addition, Medicare provides that psychiatric diagnostic examinations are generally covered only once for each episode of illness or suspected illness in a patient and must be medically necessary.
In violation of Medicare policies, as well as its own policies, PAMA provided psychotherapy to patients who lacked the capacity to benefit from it due to severe dementia. In addition, PAMA PC billed for psychiatric evaluations that were duplicative, failed to comply with Medicare rules, and reflected a lack of coordination of care both among PAMA’s own psychiatrists, psychologists and nurses, and between PAMA’s employees and staff at the facilities with which PAMA contracted to provide services. Moreover, PAMA PC billed for services for which it lacked any documentation whatsoever. PAMA PC billed Medicare for a far larger number of services per psychiatrist and psychologist during the period 2001 through 2012 than any other provider with a similar patient population in the New York area.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Heidi A. Wendel and Mara E. Trager are in charge of the case.
U.S. v. Park Ave Medical Associates, et al. Complaint
Man Indicted in International Drug Conspiracy Extradited to Boston from ColombiaRead the Press Release
BOSTON - A man from Colombia, charged in an international cocaine conspiracy in 2010, made his initial appearance in federal court today after he was ordered to be extradited to the United States from Colombia.
Roberto Mendez-Hurtado, 49, was originally charged in 2010 with conspiracy to import and distribute and manufacture five kilograms or more of cocaine for unlawful importation to the United States.
According to the indictment, Mendez-Hurtado conspired between June 2008 and April 2010 to import from Columbia and Venezuela at least five kilograms of cocaine. Mendez-Hurtado is alleged to have manufactured and distributed at least five kilograms of cocaine knowingly and with intent that such substance would be unlawfully imported into the United States.
Pursuant to a request for extradition from the U.S. government, in August 2011, law enforcement authorities arrested him in Colombia. In February 2012, the Supreme Court from Colombia ordered his extradition to U.S. District Court in Boston to face charges.
The maximum sentence under the statute is life in prison to be followed by five years of supervised release and a fine of up to $4 million. Mendez-Hurtado also faces similar charges in the Southern District of Florida and the District of Puerto Rico.
United States Attorney Carmen M. Ortiz and John J. Arvanitis, Special Agent in Charge of U.S. Drug Enforcement Administration, New England Division, made the announcement today. The case was investigated by the DEA's New England Field Division with assistance from DEA's Bogota Country Office, the Colombian National Police, and Dutch law enforcement authorities in Aruba from Recherche Samenwerkings Team (RST). The United States Marshals Service provided assistance with the apprehension of Mendez-Hurtado.
The case is being prosecuted by Assistant U.S. Attorneys Neil J. Gallagher, Jr. of Ortiz's Organized Crime Drug Enforcement Task Force Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Landlord Ordered to Pay Back Servicemember for Illegally Penalizing Him for Moving to New PostRead the Press Release
ALEXANDRIA, Va. – A federal judge has ordered the landlord of a rental property in Manassas, Va., to return money owed a servicemember after he was penalized for breaking the rental lease because the military ordered him to move.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Thomas E. Perez, Assistant Attorney General for the Civil Rights Division, made the announcement after a memorandum opinion was issued by United States District Judge Claude M. Hilton.
“Our military men and women put their lives on the line for us, and we must protect them both overseas and here at home,” said U.S. Attorney MacBride.
“Service members should never be penalized financially for their commitment to serve and protect our country,” said Assistant Attorney General Perez. “The Department of Justice will continue to use tools like the Servicemember Civil Relief Act to protect the rights of service members.”
According to court records, Occoquan Forest Drive LLC and its registered agent, John Williams, of Alexandria, Va., leased a residential property in Manassas, Va., to a servicemember tenant and his wife. After receiving permanent change of station orders to move to Nevada, the tenants properly terminated the lease pursuant to the Servicemember Civil Relief Act (SCRA), which protects the rights of servicemembers while on active duty in the military by suspending or modifying certain civil obligations.
The United States brought suit against Occoquan and Williams under the SCRA for refusing to return the tenants’ security deposit and charging early termination fees. In a memorandum opinion issued on Feb. 15, 2013, Judge Hilton found both Occoquan and Williams liable under the statute, ordered them to return the tenants’ security deposit, and enjoined them from imposing early termination charges.
This case was investigated by the Pentagon Army and Air Force Legal Assistance Office and the Civil Rights Division of the Department of Justice, Housing and Civil Enforcement Section. Assistant United States Attorney Stephen J. Obermeier litigated the case on behalf of the United States. The case name is United States v. Williams, 1:12cv551.
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.Laguna Pueblo Man Pleads Guilty to Assaulting a Federally Deputized Tribal Police OfficerRead the Press Release
ALBUQUERQUE – This afternoon, Phillip Derek Lorenzo, 24, a member and resident of Laguna Pueblo, pled guilty to an indictment charging him with assaulting a federal officer. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Lorenzo was indicted on Sept. 25, 2012, on a charge of assaulting a federal officer on Nov. 11, 2011, in Cibola County, N.M. According to the indictment, on Nov. 11, 2011, Lorenzo repeatedly struck and kicked an officer of the Laguna Pueblo Tribal Police Department who holds a Special Law Enforcement Commission from the BIA when the officer responded to a call at a residence located in Laguna Pueblo.
During today’s proceedings, Lorenzo pled guilty to the indictment and admitted assaulting a federal officer and employee who was engaged in the performance of his official duty without cause or excuse. More specifically, Lorenzo admitted punching and kicking the federal officer during a struggle.
At sentencing, Lorenzo faces a maximum penalty of eight years in prison. His sentencing date has yet to be scheduled.
The case was investigated by the BIA, Office of Justice Services, Southern Pueblos Agency, with assistance from the Laguna Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Justice Department Settles with the University of Medicine and Dentistry of New Jersey over Discrimination Against People with Hepatitis BRead the Press Release
The Justice Department announced today that it has reached a settlement with the University of Medicine and Dentistry of New Jersey School (UMDNJ) under the Americans with Disabilities Act (ADA). The settlement resolves complaints that the UMDNJ School of Medicine and the UMDNJ School of Osteopathic Medicine unlawfully excluded applicants because they have hepatitis B. This is the first ADA settlement ever reached by the Justice Department on behalf of people with hepatitis B.
In 2011, the two applicants in this matter applied and were accepted to the UMDNJ School of Osteopathic Medicine, and one of them was also accepted to the UMDNJ School of Medicine. The schools later revoked the acceptances when the schools learned that the applicants have hepatitis B. The Justice Department determined that the schools had no lawful basis for excluding the applicants, especially because students at the schools are not even required to perform invasive surgical procedures, and that the exclusion of the applicants contradicts the Centers for Disease Control and Prevention’s (CDC) updated guidance on this issue.
According to the CDC’s July 2012 “Updated Recommendations for Preventing Transmission and Medical Management of Hepatitis B Virus (HBV) – Infected Health Care Workers and Students,” no transmission of Hepatitis B has been reported in the United States from primary care providers, clinicians, medical or dental students, residents, nurses, or other health care providers to patients since 1991.
“Excluding people with disabilities from higher education based on unfounded fears or incorrect scientific information is unacceptable,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “We applaud the UMDNJ for working cooperatively with the Justice Department to resolve these matters in a fair manner.”
“It is especially important that a public institution of higher learning – especially one with a mission to prepare future generations of medical professionals – strictly follow the laws Congress has enacted to protect from discrimination those people who have health issues,” said U.S. Attorney for the District of New Jersey Paul Fishman. “The remedies to which the school has agreed should ensure this does not happen again.”
Under the settlement agreement, the UMDNJ must adopta disability rights policy that is based on the CDC’s Hepatitis B recommendations, permit the applicants to enroll in the schools, provide ADA training to their employees and provide the applicants a total of $75,000 in compensation and tuition credits.
Both of the applicants in this matter come from the Asian American Pacific Islander community. The CDC reports that Asian American Pacific Islanders (AAPIs) make up less than 5 percent of the total population in the United States, but account for more than 50 percent of Americans living with chronic Hepatitis B. Nearly 70 percent of AAPIs living in the United States were born, or have parents who were born, in countries where hepatitis B is common. Most AAPIs with Hepatitis B contracted Hepatitis B during childbirth . The Civil Rights Division is committed to ensuring that this community is not subjected to discrimination because of disability.
Title II of the ADA prohibits state and local government entities, like the UMDNJ, from discriminating against individuals with disabilities in programs, services, and activities. State and local governments must also make reasonable modifications in policies, practices, and procedures when the modifications are necessary to avoid discrimination on the basis of disability, unless those modifications would result in a fundamental alteration.
More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt. More information about the ADA and today’s agreement with UMDNJ can be accessed at the ADA website at www.ada.gov or by calling the toll-free ADA information line at 800-514-0301 or 800-514-0383 (TTY).
Jackson Man Sentenced on Drug ChargesRead the Press Release
Jackson, Miss - Warwick Demuntrel Mikell, 34, of Jackson, was sentenced to 74 months in federal prison for possession with intent to distribute more than 500 grams of cocaine, U.S. Attorney Gregory K. Davis announced.
Warwick was indicted following an extensive investigation targeting illegal narcotics distribution in the City of Jackson, dubbed “Operation Paperchase”, conducted by the U.S. Drug Enforcement Administration’s High Intensity Drug Trafficking Area Group and the Federal Bureau of Investigation with assistance from the U.S. Marshals Service, Mississippi Bureau of Narcotics, Jackson Police Department and Hinds County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Erin Chalk.###
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International Heating and Cooling Product Distributor Pleads Guilty and Sentenced for Illegal Purchase and Sale of Smuggled Ozone-Depleting Refrigerant GasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, and Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announced today that defendant, FSD Group, LLC a Florida corporation with its headquarters in Miami, was convicted and sentenced in connection with the illegal receipt, purchase, and sale of ozone-depleting refrigerant gas that had been smuggled into the United States contrary to the Clean Air Act, in violation of Title 18, United States Code, Section 545.
FSD Group pled guilty to a one count Information filed against it before United States District Court Judge Joan Lenard, for knowingly receiving, buying, selling and facilitating the transportation, concealment, and sale of approximately 65,592 kilograms of the ozone-depleting substance hydrochlorofluorocarbon-22 (“HCFC-22") which had been illegally smuggled into the United States contrary to the Clean Air Act. HCFC-22 is a widely used refrigerant for residential heat pump and air-conditioning systems.
Immediately following the guilty plea, FSD Group was sentenced to three years of probation and ordered to pay a $100,000.00 criminal fine. In addition, as a special condition of probation, FSD Group was ordered to implement and enforce a comprehensive Environmental Compliance Plan. FSD Group was also ordered to forfeit to the United States $180,051.00, which represents proceeds received as a result of the crime and pay owed duties to the United States Customs and Border Protection for incorrectly classified merchandise.
Federal law prohibits dealing in merchandise that is imported contrary to law. The Federal Clean Air Act regulates air pollutants including ozone depleting substances such as HCFC-22. The Clean Air Act and its implementing regulations established a schedule to phase out the production and importation of ozone-depleting substances beginning in 2002, with a complete ban starting in 2030. To meet its obligations under an international treaty to reduce its consumption of ozone-depleting substances, the United States issued baseline allowances for the production and importation of HCFC-22 to individuals and companies. In order to legally import HCFC-22, you must hold an unexpended consumption allowance.
According to court records, FSD Group which also operates under the name Saez Distributors, is an international supplier and distributor of merchandise for heating, ventilation, air conditioning, and refrigerator systems, equipment and products including ozone-depleting substances. In business for thirty five years, and itself, an original allowance holder under the Clean Air Act, FSD had extensive knowledge regarding the Act’s rules and prohibition against purchasing illegally imported HCFC-22. During the course of the illegal conduct, in addition to its legal imports, FSD Group made additional purchases of HCFC-22 from various importers, knowing they did not hold the required unexpended consumption allowances, totaling approximately 65,592 kilograms, of restricted HCFC-22, with a fair market value of approximately $733,096.00.
United States Attorney Wifredo A. Ferrer stated, “The regulatory program here is intended to protect us all from the harmful effects associated with depletion of the earth’s ozone layer. By aggressively supporting the investigative agencies in their efforts to enforce federal laws that seek to protect our environment, we are both meeting our country’s commitment and responsibility to our future generations and the international community.”
EPA SAC Maureen O’Mara said, “HCFC’s deplete the stratospheric ozone layer, which is critical to life on earth and protecting people from the harmful effects of ultraviolet radiation, including cancer. EPA will continue working with ICE and other agencies to combat such criminal conduct, preventing these dangerous smuggling and distribution operations, and curbing the world-wide threat of stratospheric ozone depletion. This plea and sentence, the first of its kind against an allowance holder, sends a strong message that those who jeopardize public safety in order to make illegal profits will be vigorously prosecuted and punished.”
“EPA realizes that as HCFCs are phased out domestically, smuggling is likely to rise, jeopardizing human health and our atmosphere. This is why EPA is working harder than ever, in cooperation with our federal partners, to seek justice against those that not only illegally import R-22, but also knowingly purchase contraband material,” said Drusilla Hufford, Director of EPA’s Stratospheric Protection Division.
“The unlawful importation of goods poses a significant threat to the national security, public safety, and in this particular case, the illegal importation posed a global hazard to our environment,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “We will continue to vigorously investigate those who are determined to line their pockets with the proceeds of crimes against the environment.”
This matter and others involving the smuggling and distribution of ozone-depleting substances are being investigated through a multi-agency initiative known as Operation Catch-22. Operation Catch-22 has, to date, including the successful conviction of nearly a dozen individuals and corporations at every level of the refrigerant gas smuggling and distribution chain.
Mr. Ferrer commended the investigative efforts of the EPA, ICE-HSI, the Florida Department of Environmental Protection, Criminal Investigation Bureau, and the Miami-Dade Police Department. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indictment Charges Two Former Maryland Correctional Officers in Relation to an Assault of an InmateRead the Press Release
A third indictment, this time charging two former officers at Roxbury Correctional Institution (RCI), was returned today, in relation to assaults of an inmate, identified as K.D., and subsequent obstruction of justice, announced Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. On Feb. 26, 2013, a grand jury returned two indictments charging a total of nine current or former RCI officers with two subsequent assaults of the same inmate, K.D.
In the indictment returned today, former RCI Lieutenant Robert Harvey and former Correctional Officer Keith Morris are charged with a civil rights offense for their alleged assault on K.D., an inmate, during the 3 p.m. to 11 p.m. shift on March 8, 2013. Harvey also faces an obstruction of justice charge for allegedly filing a false report related to the assault.
Harvey faces a maximum sentence of 30 years in prison, and Morris faces a maximum term of 10 years in prison.
These indictments bring the total number of individuals charged in relation to this case to 14. Including today’s charges, seven current or former RCI officers have been charged with a civil rights offense for their alleged involvement in a series of assaults on K.D. Two former RCI officers, Dustin Norris and Philip Mayo, recently entered guilty pleas acknowledging that they conspired with other officers to assault K.D. Ten current or former RCI officers have been charged with conspiracy or obstruction offenses for their alleged efforts to cover up staff involvement in the assaults on K.D. Ryan Lohr, a former RCI officer, previously entered a guilty plea admitting that he conspired with other officers to obstruct the investigation into an assault on K.D.
These three cases, which are ongoing, are being investigated by the Frederick Resident Agency of the FBI, and are being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Justice Department’s Civil Rights Division, with the assistance of P. Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Government Consents to New Trial in United States v. Robert “Red” Stevens and Arthur Gilmore, Jr.Read the Press Release
MONROE, La.: The U.S. Attorney’s Office has informed United States District Judge Donald E. Walter that it consents to a new trial in United States v. Robert “Red” Stevens and Arthur Gilmore, Jr., two former Monroe City Councilmen indicted for racketeering and extortion. Thereafter, the Court continued the evidentiary hearing scheduled for March 4, 2013, and entered an order today scheduling a new trial for April 22, 2013, in Shreveport. Stevens and Gilmore had sought a new trial based on allegations of misconduct by the former lead Assistant United States Attorney and FBI agent.
U.S. Attorney Stephanie Finley stated: “While I do not believe that the jury’s guilty verdict in this case was the result of any misconduct, I believe that it is important that the public have confidence in the integrity of the prosecutions brought by the United States. Therefore, I directed the prosecutors in this case to consent to a new trial even though the trial had been completed and the case was on appeal. We chose to disclose the allegations of misconduct to the Court and to all defense attorneys because we want every prosecution to be based on fairness.
The allegations at issue first came to light in June 2012 when defense counsel in the case of United States v. Royce Toney, Michael Davis, made allegations of misconduct on the part of Assistant United States Attorney Mignonne Griffing. My office reviewed the allegations, and pursuant to established protocol, an investigation was opened by the Department of Justice. In the meantime, in order to ensure the integrity of the prosecution of former Sheriff Toney, I removed AUSA Griffing from the case and assigned a different prosecutor in my office to take it over. Based on the totality of the evidence and the testimony of the witnesses, the prosecution was ultimately resolved with a guilty plea to nine misdemeanor counts of unauthorized access of a protected computer. This resolution was based on the most readily provable offenses, not because of any allegations of misconduct. The plea agreement addressed Sheriff Toney’s criminal conduct and was in the interest of justice. The Government believed then, as it does now, that this was the fairest resolution to this case in light of all of the evidence.
On August 2, 2012, Royce Toney appeared before U.S. District Judge Robert G. James and knowingly and voluntarily pled guilty with advice of his counsel.
Our goal in every case that we prosecute is to ensure the integrity of the prosecution. My office, along with the appropriate offices at the Department of Justice, will continue to investigate any and all allegations of misconduct to determine whether or not there is any merit to them, and at the same time will take all necessary steps to preserve the integrity of all prosecutions brought by the United States.”
During the trial set for April 22, 2013, Mr. Stevens and Mr. Gilmore will face the same charges as returned by the Grand Jury in June of 2010. Specifically, each defendant was named in a two-count indictment charging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1962(c), and the Hobbs Act, 18 U.S.C. § 1951.
If convicted, both men face a maximum sentence on Count 1, RICO, of 20 years in prison, a $250,000 fine, or both. The Hobbs Act contained in Count 2 is punishable by a maximum sentence of 20 years in prison, a $250,000 fine, or both.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
Garland, Texas, Tax Preparer Sentenced to More Than Three Years in Federal Prison for Submitting Hundreds of Tax Returns That Falsely Claimed First Time Homebuyer CreditRead the Press Release
Instant Tax Service Manager Also Ordered to Pay $1,665,000 in Restitution
DALLAS — Cora Latrice Hopkins was sentenced yesterday by U.S. District Judge David C. Godbey to 37 months in federal prison and ordered to pay $1,665,000 in restitution, following her guilty plea in November 2012 to filing a false claim with an agency of the United States. Hopkins, who according to the indictment filed in the case is a Garland, Texas, resident, has been in custody since her arrest in August 2012 by special agents with Internal Revenue Service Criminal Investigation (IRS CI). Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, from December 2008 through March 2009, Hopkins was employed as the manager of the Instant Tax Service (ITS) office located on South Buckner Boulevard in Dallas. In this capacity, she was responsible for preparing and filing tax returns for ITS clients; she filed the returns electronically with the IRS, using an identification number assigned to the ITS office on South Buckner.
The factual resume further states that between January 1, 2009, and March 12, 2009, Hopkins prepared and filed 403 tax returns, for tax year 2008, with the IRS. Of these 403 tax returns, 316 claimed the First Time Homebuyer Credit that was available to qualified individuals who purchased a home as a primary residence in 2008. Hopkins, however, knew that the taxpayer named in each of those returns did not qualify for, or had not provided the information necessary to qualify for, the First Time Homebuyer Credit. Hopkins admitted that she knew that the false credits claimed on the tax returns would reduce the taxpayer’s tax liability or increase the amount of any refund due to the taxpayers.
The investigation was conducted by IRS CI; Assistant U.S. Attorney Paul Yanowitch was in charge of the prosecution.
Four Topeka Man Charged in RobberiesRead the Press Release
TOPEKA, KAN. – Four Topeka men have been charged in a series of commercial robberies, U.S. Attorney Barry Grissom said today.
Charged are: Johnnie Lee McCall, 28, Topeka, Kan., who is charged with three counts of commercial robbery and two counts of brandishing a firearm during robberies.
Jordan Christopher Lucas, 26, Topeka, Kan., who is charged with two counts of commercial robbery and one count of brandishing a firearm during a robbery.
Alonzo Nathan Lax, 26, Topeka, Kan., who is charged with two counts of robbery and two counts of brandishing a firearm during robberies.
David Pierre Wigfall, 22, Topeka, Kan., who is charged with one count of robbery and one count of brandishing a firearm during a robbery.The indictment alleges that: On Feb. 12, McCall and Lucas robbed the Dollar General store at 1001 SW Fairlawn Road in Topeka.
On Feb. 27, McCall, Lucas and Lax robbed the Baskin Robbins at 4400 SW 21st Street in Topeka. They allegedly brandished firearms during the robbery.
On March 1, McCall, Lax and Wigfall robbed Little Caesars at 2620 SW Sixth, Suite B, in Topeka. They allegedly brandished firearms during the robberies.Upon conviction, the crimes carry the following penalties: Commercial robbery: A maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
Brandishing a firearm during a crime of violence: A penalty of not less than seven years and not more than life and a fine to $250,000 pm each count.The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Former Watertown Police Officer Charged with Passing False Prescriptions Using Another’s IdentityRead the Press Release
BOSTON - A Framingham man was charged in federal court in connection to crimes committed while in his official capacity as a Watertown police officer.
Joseph Deignan, 57, was charged with unlawful possession of a controlled substance by fraud and fraud in connection with identification documents.
According to the complaint affidavit, Deignan, a former Watertown Police Officer who retired in February 2012, used the identity of another person to obtain oxycodone and other controlled substances by forging prescriptions in the other person’s name. Deignan is alleged to have stolen the driver’s license of the person in 2010, while he was working as the traffic supervisor for the Watertown Police Department.
The maximum sentence under the identity theft count is 15 years in prison, followed by three years of supervised release and a $250,000 fine. Deignan was arrested this morning and is scheduled for his initial appearance at 3:15 p.m.
United States Attorney Carmen M. Ortiz and John Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement today. The DEA was provided assistance from the Marlborough Police Department. The Watertown Police Department has been cooperative during the investigation. The case is being prosecuted by Assistant U.S. Attorney Eugenia Carris of Ortiz’s Public Corruption Unit.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former U.S. Consulate Guard Sentenced to Nine Years in Prison <br /> for Attempting to Communicate National Defense Information to ChinaRead the Press Release
Bryan Underwood, a former civilian guard at a U.S. Consulate compound under construction in China, was sentenced today to nine years in prison in connection with his efforts to sell for personal financial gain classified photographs, information and access related to the U.S. Consulate to China’s Ministry of State Security (MSS), announced Lisa Monaco, Assistant Attorney General for the Justice Department’s National Security Division; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gregory B. Starr, Director of the U.S. State Department’s Diplomatic Security Service.
Underwood pleaded guilty Aug. 30, 2012, in the U.S. District Court for the District of Columbia to one count of attempting to communicate national defense information to a foreign government with intent or reason to believe that the documents, photographs or information in question were to be used to the injury of the United States or to the advantage of a foreign nation. He was sentenced by the Honorable Ellen S. Huvelle. Upon completion of his prison term, Underwood will be placed on two years of supervised release.
Underwood, 32, a former resident of Indiana, was first charged in an indictment on Aug. 31, 2011, with two counts of making false statements and was arrested on Sept. 1, 2011. On Sept. 21, 2011, he failed to appear at a scheduled status hearing in federal court in the District of Columbia. The FBI later located Underwood in a hotel in Los Angeles and arrested him there on Sept. 24, 2011. On Sept. 28, 2011, Underwood was charged in a superseding indictment with one count of attempting to communicate national defense information to a foreign government, two counts of making false statements and one count of failing to appear in court pursuant to his conditions of release.
“Bryan Underwood betrayed America’s trust by attempting to sell access to secure areas of the very U.S. Consulate compound he was charged to protect,” said Assistant Attorney General Monaco. “Today, he is being held accountable for his actions. As this case demonstrates, we remain vigilant in protecting America’s secrets and in bringing to justice those who seek to compromise them.”
“Access to classified information is a special responsibility to be honored, not a financial opportunity to be exploited,” said U.S. Attorney Machen. “Bryan Underwood is going to prison because he tried to make millions by selling secret photos of a U.S. Consulate to a foreign government. His sentence demonstrates our dedication to jealously guarding our nation’s secrets. We all owe a great debt of gratitude to the agents who detected and stopped Underwood before he succeeded in betraying our country.”
“Bryan Underwood attempted to betray his country by using his access to sensitive information for his own benefit. Fortunately, he was stopped before classified information fell into the wrong hands,” said FBI Assistant Director in Charge Parlave. “Together with our partner agencies, the FBI will continue to diligently work to combat potential acts of espionage that threaten our national security.”“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI and the U.S. Attorney’s Office resulted in the conviction of Bryan Underwood before he could potentially harm the security of our country,” said Director Starr of the Diplomatic Security Service. “This was a great success by all of the agencies involved.”
According to court documents, from November 2009 to August 2011, Underwood worked as a cleared American guard (CAG) at the site of a new U.S. consulate compound that was under construction in Guangzhou, China. During this time, the compound was not yet operational. CAGs are American civilian security guards with top secret clearances who serve to prevent foreign governments from improperly obtaining sensitive or classified information from the construction site. Underwood received briefings on how to handle and protect classified information as well as briefings and instructions on security protocols for the U.S. Consulate, including the prohibition on photography in certain areas of the consulate.
In February 2011, Underwood was asked by U.S. law enforcement to assist in a project at the consulate and he agreed. In March and April of 2011, Underwood lost a substantial amount of money in the stock market. According to court documents, Underwood then devised a plan to use his assistance to U.S. law enforcement as a “cover” for making contact with the Chinese government. According to his subsequent statements to U.S. law enforcement, Underwood intended to sell his information about and access to the U.S. Consulate to the Chinese MSS for $3 million to $5 million. If any U.S. personnel caught him, he planned to falsely claim he was assisting U.S. law enforcement.
As part of his plan, Underwood wrote a letter to the Chinese MSS, expressing his “interest in initiating a business arrangement with your offices” and stating, “I know I have information and skills that would be beneficial to your offices [sic] goals. And I know your office can assist me in my financial endeavors.” According to court documents, Underwood attempted to deliver this letter to the offices of the Chinese MSS in Guangzhou, but was turned away by a guard who declined to accept the letter. Underwood then left the letter in the open in his apartment hoping that the Chinese MSS would find it, as he believed the MSS routinely conducted searches of apartments occupied by Americans.
In May 2011, Underwood secreted a camera into the new U.S. consulate compound and took photographs of a restricted building and its contents. Several of these photographs depict areas or information classified at the Secret level. Underwood also created a schematic that listed all security upgrades to the U.S. consulate and drew a diagram of the surveillance camera locations at the consulate. In addition, according to his subsequent statements to U.S. law enforcement, Underwood “mentally” constructed a plan in which the MSS could gain undetected access to a building at the U.S. consulate to install listening devices or other technical penetrations.
According to court documents, the photographs Underwood took were reviewed by an expert at the State Department’s Bureau of Diplomatic Security who had original classification authority for facilities, security and countermeasures at the U.S. Consulate. The expert determined that several of the photographs contained images classified at the Secret level and that disclosure of such material could potentially cause serious damage to the United States.
In early August 2011, Underwood was interviewed several times by FBI and Diplomatic Security agents, during which he admitted making efforts to contact the Chinese MSS, but falsely claimed that he took these actions to assist U.S. law enforcement. On Aug. 19, 2011, Underwood was again interviewed by law enforcement agents and he admitted that he planned to sell photos, information and access to the U.S. Consulate in Guangzhou to the Chinese MSS for his personal financial gain.
After initially being arraigned in this case on Sept. 1, 2011, Underwood was released on his personal recognizance, with certain conditions, including staying within the Washington, D.C. metropolitan area and returning to court for a status hearing on Sept. 21, 2011. Instead of returning to court as promised, Underwood purchased a bicycle, racks, panniers, helmet and multiple energy snack bars. He left a fake suicide note at his hotel room in Springfield, Va. Then, alive and well, he pedaled west out of Springfield and eventually boarded a bus in Wytheville, Va., under a false name. He was arrested on Sept. 24, 2011 in a hotel room in Los Angeles, with over $10,000 in cash and 80,000 Japanese yen. He has been in custody ever since.
The U.S. government has found no evidence that Underwood succeeded in passing classified information concerning the U.S. Consulate in Guangzhou to anyone at the Chinese MSS.
This investigation was conducted jointly by the FBI’s Washington Field Office and the State Department’s Bureau of Diplomatic Security. The prosecution was handled by the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Brandon L. Van Grack from the Counterespionage Section of the Justice Department’s National Security Division.
Former U.S. Consulate Guard Sentenced to Nine Years in Prison for Attempting to Communicate National Defense Information to ChinaRead the Press Release
WASHINGTON – Bryan Underwood, a former civilian guard at a U.S. Consulate compound under construction in China, was sentenced today to nine years in prison in connection with his efforts to sell for personal financial gain classified photographs, information and access related to the U.S. Consulate to China’s Ministry of State Security (MSS).
Underwood pled guilty Aug. 30, 2012, in the U.S. District Court for the District of Columbia, to one count of attempting to communicate national defense information to a foreign government with intent or reason to believe that the documents, photographs or information in question were to be used to the injury of the United States or to the advantage of a foreign nation. He was sentenced by the Honorable Ellen S. Huvelle. Upon completion of his prison term, Underwood will be placed on two years of supervised release.
The sentence was announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gregory B. Starr, Director of the U.S. State Department’s Diplomatic Security Service.
Underwood, 32, a former resident of Indiana, was first charged in an indictment on Aug. 31, 2011, with two counts of making false statements and was arrested on Sept. 1, 2011. On Sept. 21, 2011, he failed to appear at a scheduled status hearing in federal court in the District of Columbia. The FBI later located Underwood in a hotel in Los Angeles and arrested him there on Sept. 24, 2011. On Sept. 28, 2011, Underwood was charged in a superseding indictment with one count of attempting to communicate national defense information to a foreign government, two counts of making false statements and one count of failing to appear in court pursuant to his conditions of release.
“Bryan Underwood betrayed America’s trust by attempting to sell access to secure areas of the very U.S. Consulate compound he was charged to protect. Today, he is being held accountable for his actions. As this case demonstrates, we remain vigilant in protecting America’s secrets and in bringing to justice those who seek to compromise them,” said Assistant Attorney General Monaco.
“Access to classified information is a special responsibility to be honored, not a financial opportunity to be exploited,” said U.S. Attorney Machen. “Bryan Underwood is going to prison because he tried to make millions by selling secret photos of a U.S. Consulate to a foreign government. His sentence demonstrates our dedication to jealously guarding our nation’s secrets. We all owe a great debt of gratitude to the agents who detected and stopped Underwood before he succeeded in betraying our country.”
“Bryan Underwood attempted to betray his country by using his access to sensitive information for his own benefit. Fortunately, he was stopped before classified information fell into the wrong hands,” said FBI Assistant Director in Charge Parlave. “Together with our partner agencies, the FBI will continue to diligently work to combat potential acts of espionage that threaten our national security.”
“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI and the U.S. Attorney’s Office resulted in the conviction of Bryan Underwood before he could potentially harm the security of our country,” said Director Starr of the Diplomatic Security Service. “This was a great success by all of the agencies involved.”
According to court documents, from November 2009 to August 2011, Underwood worked as a cleared American guard (CAG) at the site of a new U.S. Consulate compound that was under construction in Guangzhou, China. During this time, the compound was not yet operational. CAGs are American civilian security guards with Top Secret clearances who serve to prevent foreign governments from improperly obtaining sensitive or classified information from the construction site. Underwood received briefings on how to handle and protect classified information as well as briefings and instructions on security protocols for the U.S. Consulate, including the prohibition on photography in certain areas of the consulate.
In February 2011, Underwood was asked by U.S. law enforcement to assist in a project at the consulate and he agreed. In March and April of 2011, Underwood lost a substantial amount of money in the stock market. According to court documents, Underwood then devised a plan to use his assistance to U.S. law enforcement as a “cover” for making contact with the Chinese government. According to his subsequent statements to U.S. law enforcement, Underwood intended to sell his information about and access to the U.S. Consulate to the Chinese MSS for $3 million to $5 million. If any U.S. personnel caught him, he planned to falsely claim he was assisting U.S. law enforcement.
As part of his plan, Underwood wrote a letter to the Chinese MSS, expressing his “interest in initiating a business arrangement with your offices” and stating, “I know I have information and skills that would be beneficial to your offices [sic] goals. And I know your office can assist me in my financial endeavors.” According to court documents, Underwood attempted to deliver this letter to the offices of the Chinese MSS in Guangzhou, but was turned away by a guard who declined to accept the letter. Underwood then left the letter in the open in his apartment hoping that the Chinese MSS would find it, as he believed the MSS routinely conducted searches of apartments occupied by Americans.
In May 2011, Underwood secreted a camera into the new U.S. Consulate compound and took photographs of a restricted building and its contents. Several of these photographs depict areas or information classified at the Secret level. Underwood also created a schematic that listed all security upgrades to the U.S. Consulate and drew a diagram of the surveillance camera locations at the consulate. In addition, according to his subsequent statements to U.S. law enforcement, Underwood “mentally” constructed a plan in which the MSS could gain undetected access to a building at the U.S. Consulate to install listening devices or other technical penetrations.
According to court documents, the photographs Underwood took were reviewed by an expert at the State Department’s Bureau of Diplomatic Security who had original classification authority for facilities, security and countermeasures at the U.S. Consulate. The expert determined that several of the photographs contained images classified at the Secret level and that disclosure of such material could potentially cause serious damage to the United States.
In early August 2011, Underwood was interviewed several times by FBI and Diplomatic Security agents, during which he admitted making efforts to contact the Chinese MSS, but falsely claimed that he took these actions to assist U.S. law enforcement. On Aug. 19, 2011, Underwood was again interviewed by law enforcement agents and he admitted that he planned to sell photos, information and access to the U.S. Consulate in Guangzhou to the Chinese MSS for his personal financial gain.
After initially being arraigned in this case on Sept. 1, 2011, Underwood was released on his personal recognizance, with certain conditions, including staying within the Washington, D.C. metropolitan area and returning to court for a status hearing on Sept. 21, 2011. Instead of returning to court as promised, Underwood purchased a bicycle, racks, panniers, helmet and multiple energy snack bars. He left a fake suicide note at his hotel room in Springfield, Va. Then, alive and well, he pedaled west out of Springfield and eventually boarded a bus in Wytheville, Va., under a false name. He was arrested on Sept. 24, 2011 in a hotel room in Los Angeles, with over $10,000 in cash and 80,000 Japanese yen. He has been in custody ever since.
The U.S. government has found no evidence that Underwood succeeded in passing classified information concerning the U.S. Consulate in Guangzhou to anyone at the Chinese MSS.
This investigation was conducted jointly by the FBI’s Washington Field Office and the State Department’s Bureau of Diplomatic Security. The prosecution was handled by the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Brandon L. Van Grack from the Counterespionage Section of the Justice Department’s National Security Division.
13-082Former Postal Service Employee Sentenced to Two Years in Prison for Stealing Credit/Debit Card Information from U.S. MailRead the Press Release
LAS VEGAS, Nev. – A former mail sorter for the U.S. Postal Service in Las Vegas was sentenced today to two years in federal prison after he was caught stealing items from the mail, including credit and debit card information, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jerome Harvey, 34, of Las Vegas, who pleaded guilty in November 2012, to one count of aggravated identity theft, was sentenced by Senior U.S. District Judge Kent J. Dawson to a mandatory two year prison term, one year of supervised release, and ordered to pay $5,951 in restitution.
According to the plea agreement, between May and July 2011, Harvey worked as a casual employee sorting mail for the U.S. Postal Service in Las Vegas. In that capacity, he stole items from the mail, including credit and debit cards and personal identification numbers. Harvey stole the information of 12 individuals, and used it to gain access to their financial accounts and to obtain other things of value. The total amount of actual loss associated with the thefts was $5,951.
Harvey is free on a personal recognizance bond, and was permitted to self-report to federal prison by June 7, 2013.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former Partner at Major International Law Firm Pleads Guilty in Manhattan Federal Court to Tax Fraud ViolationsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that THEODORE L. FREEDMAN, a former senior partner at a major international law firm (the “Law Firm”), pled guilty today in Manhattan federal court to four counts of tax fraud for under-reporting his partnership income at the Law Firm by a total of approximately $2 million from 2001 to 2004. FREEDMAN pled guilty before U.S. District Judge Deborah A. Batts.
Manhattan U.S. Attorney Preet Bharara stated: “Theodore Freedman was an attorney at a high-powered and prestigious law firm who lied about his multi-million dollar compensation in order to avoid paying taxes, breaking the law and violating his professional code of conduct. Two things are certain: Freedman will now have to pay his taxes and more; and Freedman is now an admitted felon who has sacrificed his reputation, career, and potentially his liberty, for a few dollars. Others should not make the same bad calculation.”
According to the Indictment and statements made at today’s plea proceeding:
FREEDMAN was a senior partner in the New York office of a major international law firm, where he was a member of the Law Firm’s restructuring group. In that capacity, FREEDMAN received income that was calculated as a percentage of the Law Firm’s partnership income for a given year. The Law Firm issued FREEDMAN the IRS form that reports an individual partner’s share of income or loss from the partnership. According to the form, FREEDMAN's aggregate income for calendar years 2001 through 2004 was approximately $5,388,699.
FREEDMAN self-prepared, signed, and filed tax returns for calendar years 2001 through 2004. Rather than reporting the true and correct amount of partnership income he received from the Law Firm for the years in question, FREEDMAN falsely and fraudulently under-reported his income in the aggregate amount of approximately $2,097,211.
FREEDMAN, 65, of Pine Plains, New York, faces a maximum sentence of three years in prison on each of the tax fraud counts, for a total maximum sentence of 12 years in prison. As part of his plea agreement, FREEDMAN is also required to pay more than $671,000 in restitution to the IRS and more than $169,000 in restitution to New York State. He is scheduled to be sentenced by Judge Batts on September 17, 2013, at 10:30 a.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution.
U.S. v. Theodore L. Freedman Indictment
Former Lakeland Student Indicted on Fraud ChargesRead the Press Release
A two-count indictment was filed charging a Cleveland woman with crimes related to the misuse of more than $6,000 in federal financial aid, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Tanya Oliver, 28, is charged with one count each of mail fraud and student aid fraud.
Oliver enrolled at Lakeland Community College in Kirtland, Ohio. During the 2007-2008 school year, Oliver fraudulently caused more than $6,000 in federal financial aid to be provided to Lakeland for the purposes of funding her education. Those monies were the basis for providing refunds to Oliver in the amount of $5,174.95, according to the indictment.
Oliver obtained the funds for the purpose of using the monies for her own personal use, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Christos M. Georgalis following an investigation by the U.S. Department of Education, Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Intermediate Unit Executive Director Fred R. Rosetti Sentenced to 33 Months’ ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former Executive Director of the Northeastern Intermediate Unit #19 was sentenced today by U.S. District Court Judge Robert D. Mariani to 33 months’ imprisonment and a $30,000 fine for fraud and theft.
Judge Mariani ordered Rosetti to make restitution to the NEIU in the amount of $137,944.13 immediately.
During the three-hour sentencing hearing today, the court heard testimony concerning three individuals who told the FBI and investigators from the U.S. Department of Education - Office of Inspector General that Rosetti had attempted to influence the investigation in conversations that he had with them while the investigation was underway.
The court also heard testimony from two officials from the NEIU, Dr. Clarence Lamanna, the current Executive Director and Tom Rink, the Fiscal Director. Both men testified about the fiscal loss to the Unit caused by Rosetti’s activities and the loss of the Unit’s reputation.
U.S. Attorney Smith stated that, “The cooperation and support of the investigation provided by the NEIU staff members and the current officials, and especially the statements made today, showed that the vast majority of the staff of the NEIU are dedicated professionals and that Rosetti’s admitted abuse of the public trust was something that most of the staff of the NEIU had never approved or accepted.”
The indictment returned in February 2012 alleged that between July 1, 1998 through June 30, 2010, Rosetti, age 64, Archbald, engaged in a scheme to defraud the Northeastern Intermediate Unit #19 (NEIU). The indictment charged that during his tenure as Executive Director, Rosetti fraudulently, improperly, and unlawfully converted funds and property of the NEIU for his personal benefit and for the personal benefit of his family.
According to the summary of the evidence presented in court and in filings by Assistant U.S. Attorney Michelle Olshefski, Rosetti directed and ordered NEIU employees to perform home maintenance services at his personal residence, personal secretarial services, personal shopping for Rosetti and his family, and to assist in the planning and preparation of Rosetti family events.
Rosetti created false travel vouchers and directed and ordered NEIU employees to create false travel vouchers for the benefit of Rosetti.
Rosetti also intentionally failed to document his time-off in the form of used vacation, sick and personal days which enabled him to include all of the undocumented time-off in an accumulation of days for which he received a cash payout at the time of his retirement.
Intermediate Units provide services and support for special education in school districts throughout the State. The NEIU supports 20 school districts in northeastern Pennsylvania.
Rosetti pled guilty on February 7, 2013, after entering into a plea agreement with the U.S. Attorney’s Office.
In February 2013, Judge Mariani rejected Rosetti’s binding plea agreement in which Rosetti would be sentenced to a 12-18 month range prison term. At that point, Rosetti was entitled to withdraw the plea. However, he chose not to do so.
As a result of his activities, Rosetti has lost a substantial portion of his pension benefits as a result of an action taken last fall by the Pennsylvania School Employee Retirement System after Rosetti’s guilty plea.U.S. Attorney Smith noted that the discovery and exposure of Rosetti’s scheme was the result of a prompt and thorough investigation by the Pennsylvania Department of the Auditor General’s Office of Special Investigations.
“This case is an example of how the investigating and auditing process works well when there is cooperation among government agencies,” said PA Auditor General Eugene DePasquale. “I commend the professional investigators and auditors on our staff for their diligence and hard work.”
A joint investigation by the Federal Bureau of Investigation (FBI), and the United States Department of Education - Office of Inspector General then followed. Prosecution of the case was assigned to Assistant United States Attorney Michelle Olshefski.Judge Mariani ordered Rosetti to report to the Bureau of Prisons on April 4, 2013.
Former City of Cleveland Employee Indicted for ExtortionRead the Press Release
A former City of Cleveland employee was indicted on charges of Hobbs Act extortion for attempting to extort bribes from three companies in connection with his employment as a contract compliance officer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Lejon C. Woods, age 29, of Cleveland, is charged with three counts of extortion under color of official right.
“The businesses solicited by Woods were not involved in any type of illegal conduct,” Dettelbach said. “To the contrary, these companies should be commended because they came forward and contacted law enforcement when Woods made his bribe solicitations.”
The indictment charges that Woods, while acting in his capacity as a contract compliance officer with the City of Cleveland, solicited bribes from representatives of three local businesses, one of which was a nonprofit business, in connection with fines which were going to be imposed for non-compliance of contract requirements.
The conduct took place from May 18, 2010, through August 5, 2010, according to the indictment.
When City of Cleveland funds are used to pay for any part of a construction or rehabilitation project, the company involved in the project is subject to City of Cleveland, Office of Contract Compliance regulations relating to the hiring of certain percentages of minority business enterprises, disadvantaged business enterprises and city resident workers, according to the indictment.
The indictment alleges that at various times, Woods told representatives of the three companies that in exchange for a cash payment, Woods would alter records with the City of Cleveland to reflect compliance.
Woods obtained or attempted to obtain cash payments of $2,800, $3,000 and $1,200 from the respective companies, according to the indictment.The indictment is a result of an investigation conducted by the Federal Bureau of Investigation with assistance from the Cleveland Division of Police, Intelligence Unit. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former City Finance Dept. Employee Sentenced for Wire FraudRead the Press Release
Court Orders Restitution of $365,000
COEUR D'ALENE – Sheryl Lynn Carroll, 52, of Coeur d’Alene, Idaho, was sentenced yesterday in United States District Court to 40 months in prison followed by three years of supervised release for wire fraud, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Carroll to pay restitution in the amount of $365,000 and perform 100 hours of community service following her release from prison. Carroll pleaded guilty to six counts of wire fraud on November 5, 2012.
According to the plea agreement, Carroll was hired by the City of Coeur d'Alene in October 2002, as a payroll coordinator in the Finance Department. Beginning in at least 2007, Carroll devised a scheme to divert money from City of Coeur d’Alene bank accounts for her own personal benefit. At her plea hearing last November, Carroll admitted that she diverted payments intended for the Voluntary Employee Benefit Association (VEBA), International Association of Fire Fighters (IAFF), and United Heritage Mutual (UHM), all legitimate vendors who regularly received payment from the City of Coeur d'Alene. According to the plea agreement, Carroll represented that she was sending wire transfers to the vendors when in fact she was transferring the funds into her own personal bank account. On average, Carroll made fraudulent wire transfers from one to three times a month for several years. Carroll admitted that she fraudulently received approximately $365,000 from the City of Coeur d'Alene.
In court yesterday, Carroll apologized to her former employees and the taxpayers for taking the money that was not hers.
“Ms. Carroll, through her diversion of public money for her own personal gain, violated the trust of the citizens she was supposed to serve,” said Olson. “Public employees have a solemn obligation to ensure that taxpayer money is used for the public good. The U.S. Attorney’s Office will continue to work with state and local law enforcement and prosecutors to ensure that fraud is not a part of government business. I commend the Kootenai County Prosecutor’s Office and employees of the City of Coeur d’Alene for their cooperation and assistance to the U.S. Attorney’s Office.”
The case was investigated by the Kootenai County Sheriff’s Office and the United States Secret Service.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Federal and State Authorities Arrest Del Rio-based Texas Mexican Mafia Members on Federal ChargesRead the Press Release
United States Attorney Robert Pitman, Federal Bureau of Investigation (FBI) Special Agent in Charge Armando Fernandez, Homeland Security Investigations (HSI) Acting Special Agent in Charge Vincent Iglio, Drug Enforcement Administration (DEA) Special Agent in Charge Javier Pena, and Texas Department of Public Safety Director Steven McCraw announced today that seven Del Rio, Texas-based members and associates of the Texas Mexican Mafia (TMM) have been arrested based on a federal indictment charging Racketeer Influenced and Corrupt Organizations (RICO) Act violations as well as narcotics trafficking and firearms offenses. An eighth TMM associate was arrested for Misprision of a Felony. A ninth TMM associate was indicted for cocaine trafficking in a separate indictment and remains at large.
Those arrested, and charged by indictment include: 43-year-old Jesus Meza, Jr.; 43-year-old Jose Cardona, aka “Tinga”; 46-year-old Roberto Villarreal, aka “Flaco”; 40-year-old Ricardo Zapata, aka “Richie”; 29-year-old Daniel Rosario Lara, aka “Diablo”; 20-year-old Joel Costilla, aka “Sharky”; 26-year-old Joe Lee Jimenez; 21-year-old Ray Salgado; 20-year-old Jessica Meza. 29-year-old Pedro Armando Cardona remains at large.
A federal grand jury indictment, returned on February 27, 2013, and unsealed today, alleges that since June 1, 2010, the seven defendants charged with conspiring to violate the RICO Act were members or associates of the TMM and engaged in a pattern of extortion, attempted murder, attempted kidnapping, narcotics trafficking, and gun smuggling. The TMM is alleged to have transported bulk shipments of marijuana on behalf of a narcotics distributer based in Mexico affiliated with the Los Zetas Drug Trafficking Organization and supplied firearms to narcotics traffickers based in Mexico. The indictment also alleges that the defendants conspired to extort money from narcotics traffickers operating in Del Rio through the coercive collection of a ten percent drug tax, also known as “the dime.” Collection of “the dime” was enforced by robbery, serious bodily injury or other acts of violence.
The indictment also charges defendants Meza, Lara, and Costilla with conspiracy to possess with intent to distribute more than 100 kilograms of marijuana; defendants Meza, Cardona, Salgado, Costilla, and Jimenez with possession with intent to distribute less than 500 grams of cocaine; defendants Meza, Villarreal, and Costilla with smuggling an AR-15 style assault rifle to Mexico; and defendant Meza is charged with being in possession of six assault rifles after previously being convicted of a felony offense.
Upon conviction, the defendants face up to 20 years in federal prison on the RICO charge; between 5 and 40 years in federal prison for the marijuana charge; up to 20 years in prison on the cocaine charge; and up to 10 years in prison for each firearm charge.
Jessica Meza is facing two counts of Misprision of a Felony—alleging that she knowingly concealed the drug distribution crimes of others—and faces up to three years in prison for each count.
An additional indictment charges Pedro Armando Cardona with conspiracy to possess with intent to distribute cocaine as well as possession with intent to distribute cocaine. He faces up to 20 years in federal prison.
All eight defendants in custody had their initial appearance before Magistrate Judge Victor Garcia today. All eight were detained pending a detention hearing set for 9:00am on Friday March 8, 2013.
According to FBI Special Agent in Charge Fernandez, "Today's arrests confirm our on-going and collective efforts to continue the dismantling of the Texas Mexican Mafia wherever we find them operating."
"Today’s arrests show our collective resolve in Del Rio to attack and dismantle these dangerous street gangs," said Vincent Iglio, Acting Special Agent in Charge of HSI San Antonio. He went on to say that, "HSI remains committed to identifying gang members and removing them from the streets in the name of public safety.”
This investigation was conducted by the Federal Bureau of Investigation together with Homeland Security Investigations, the Texas Department of Public Safety--Criminal Investigations Division, and the Drug Enforcement Administration. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, and U.S. Customs and Border Protection also assisted in the investigation. This case will be prosecuted in the Del Rio Division of the Western District of Texas.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.Erie Man Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
ERIE, PA. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 24 months in prison on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Ollie Dion Pullium, 32.
According to information presented to the court, on January 10, 2012, Pullium conspired with another individual to distribute two ounces of cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Erie Police Department for the investigation leading to the successful prosecution of Pullium.
Dominican National Sentenced to Federal Prison in Identity Theft SchemeRead the Press Release
PROVIDENCE, R.I. – Rafael Lara-Mejia, a/k/a Gabriel Arenas, Martin Muniz Rosado, and Jeffrey Montanez Rivera, a Dominican national living in Providence, was sentenced today to 24 months in federal prison for his role in a scheme to steal and sell the identities and corresponding identity documents of Puerto Rican U.S. citizens, announced United States Attorney Peter F. Neronha.
In December 2012, Lara-Mejia pleaded guilty in U.S. District Court in Providence to one count each of conspiracy to commit identification fraud and conspiracy to encourage an alien to reside in the United States for financial gain. Lara-Mejia was among fifty individuals named in a federal indictment returned on December 29, 2011, in Puerto Rico.
The indictment alleges that conspirators located in the Savarona area of Caguas, Puerto Rico, illegally obtained Puerto Rican identities and corresponding identity documents. Conspirators in various locations throughout the United States (identity brokers) solicited customers, while identity brokers, like Lara-Mejia, sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set.
The indictment alleges that the customers generally obtained the documents to assume the identity of Puerto Rican U.S. citizens in order to, among other things, obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
Appearing before Judge John J. McConnell, Jr. on December 10, 2012, Lara-Mejia admitted to the court that beginning in at least April 2009 and continuing through January 2012, he and his co-conspirators sold personal identifying information, including names, dates of birth, and Social Security numbers of Puerto Rican U.S. citizens to between 25 and 99 undocumented aliens and others residing within the United States, including in Rhode Island. Lara-Mejia also admitted that he and his co-conspirators sold Puerto Rico government-issued issued birth certificates, Social Security cards, driver's licenses and voter registration cards belonging to Puerto Rican U.S. citizens.
Lara-Mejia has been detained since his arrest in Rhode Island on March 27, 2012. He faces deportation proceedings upon completion of his prison term.
The case was prosecuted by District of Rhode Island Assistant U.S. Attorney Richard B. Myrus, and Senior Trial Attorney James Yoon and Trial Attorney Sarah Chang of the Justice Department’s Criminal Division.
The matter was investigated by Homeland Security Investigations; U.S. Postal Inspection Service; U.S. State Department, Diplomatic Security Service; and Internal Revenue Service-Criminal Investigation.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at http://www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; http://www.ssa.gov/pubs/10064.html ; http://www.fbi.gov/about-us/investigate/cyber/identity_theft; and http://www.irs.gov/privacy/article/0,,id=186436,00.html.
Contact: 401-709-5357
[email protected]District Man Sentenced to 15 Years in Prison for Carjacking, Other Charges in Attacks in Southeast Washington-Defendant Carjacked Two Vehicles, Including One with A Pregnant Woman-Read the Press Release
WASHINGTON - James Corbin, 64, of Washington, D.C., was sentenced today to 15 years in prison on carjacking, robbery and theft charges in the violent takeover of two cars in a single afternoon, U.S. Attorney Ronald C. Machen Jr. announced.
Corbin hijacked one of the cars from a pregnant woman and rode off with her still in the passenger seat. He beat and threatened her until he finally pushed her out of the vehicle.
Corbin was found guilty by a jury in December 2012, following a trial in the Superior Court of the District of Columbia, of two counts of carjacking, one count of robbery, and one count of first-degree theft. He was sentenced by the Honorable Stuart G. Nash. Upon completion of his prison term, Corbin will be placed on three years of supervised release.
According to the government’s evidence, the crimes took place on the afternoon of Dec. 16, 2007. Corbin’s first target was a woman who got lost in Southeast Washington while driving her five-year-old daughter to a violin concert. She saw Corbin walking, pulled up to him, and asked for directions. Without warning, Corbin jumped into the passenger seat, claiming that he lived near her destination and that he would provide directions as she kept driving.
Fighting against her impulse to believe she was in a dangerous situation, the woman drove with Corbin for about 10 minutes until he told her to slow down inside Fort Dupont Park. She did so, and Corbin tried to grab the keys from the ignition. When he couldn’t get the keys, Corbin got out of the car, went to the driver’s side door, and attempted to pull the woman out of the vehicle. As this was happening, two people pulled up behind her and ran towards the scene. Corbin ran off into the woods and got away. Corbin left behind some blood smears in the car.
Less than 30 minutes later, Corbin got into the front seat of another car that was parked near a gas station in the 2500 block of Pennsylvania Avenue SE. The victim, who was three months pregnant, was in the passenger seat while her boyfriend was inside the gas station.
Corbin approached the car, made eye contact, and suddenly got into the driver’s seat, yelling for the woman to exit the vehicle. The victim opened her door and tried to yell to her boyfriend for help. In response, Corbin punched her in the chest, pulled the door closed, and sped off with her still in the car. As he did so, Corbin told the woman, “…you should have gotten out. Now I’m going to kill you.” He said that he had a gun and would shoot her.
As they sped along the street, the victim tried to look behind the car, in hopes that someone might be following them and trying to help. As she did so, Corbin punched her in the face and demanded that she sit down. He then punched her in the stomach. The victim feared for her life and prayed for the safety of herself and the baby she was carrying. She remembered that she had a bottle of ginger ale in the car, and poured it onto her lap. She pleaded with Corbin, “I’m pregnant! I’m bleeding! I’m having a miscarriage!” This gave Corbin momentary pause. He slowed down the car– but did not stop – and pushed her out of the vehicle.
No arrest was made that day. DNA eventually linked Corbin to the blood left on the car at Fort Dupont Park. Follow-up investigation by the FBI and the U.S. Park Police established that Corbin was the source of that blood. Further investigation led to charges in both carjackings.
In announcing the sentence, U.S. Attorney Machen commended the work of the U.S. Park Police and the Metropolitan Police Department. He also acknowledged the assistance of the FBI’s laboratory analysts and the District of Columbia Department of Forensic Services. He expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Theresa Nelson and Antoinette Sakamsa; Supervisory Paralegal Specialist Lesley Slade; Litigation Technology Specialist Leif Hickling; Jim Brennan, of the Victim Assistance Unit, and John Cummings, Chief of the Felony Major Crimes Section. Finally, he commended the work of Assistant U.S. Attorneys Erik Kenerson and Peter Lallas, who investigated and tried the case.
13-084Department of Justice Statement on Seattle Police Department Monitoring PlanRead the Press Release
After extensive and productive conversations with the parties and working hundreds of hours with members of the Seattle Police Department, the Monitor has submitted a plan that provides clear guidance and certainty for SPD’s reform efforts. The Monitoring Plan details the requirements and deadlines for new policies and training, the Monitor’s role in assuring compliance under the Settlement Agreement, and, ultimately, what success looks like.
The Monitor has proposed a process for the development of policies and training that allows for significant collaboration among the parties and for critical community input. The community must have faith and confidence that the reforms Seattle agreed to are implemented fully, efficiently, and effectively.
In an effort to avoid unnecessary distractions or delay, the Department of Justice will expedite its final review of the Monitoring Plan and anticipates filing its notice of approval with the Court soon.
Crime Stoppers Tip Helps Catch Bank RobberRead the Press Release
McALLEN, Texas – A Palmview resident accused of robbing the International Bank of Commerce in McAllen has now been convicted, United States Attorney Kenneth Magidson announced today. Erick Lee Chiu, 21, entered a plea of guilty just a short time ago.
In November 2012, Chiu walked into the bank wearing a wig and trying to conceal his identity, and handed the teller a note demanding money. The note threatened that he had a gun, but that no one would be hurt as long as they did not call the police. Bank tellers handed Chiu the money and fled the bank before law enforcement arrived.
Through a McAllen Crime Stoppers Tip the following day, police were able to identify Chiu as the bank robber. He was subsequently arrested and the money was recovered.
Chiu is set for sentencing before Chief United States District Judge Ricardo H. Hinojosa on June 11, 2013. At that time, he faces as much as 20 years in prison, a maximum $250,000 fine.
He has been in custody since Nov. 17, 2012, and will remain in custody pending sentencing.
The FBI investigated the case along with the McAllen Police Department. Assistant U.S. Attorney Kristen J. Rees is prosecuting the case.
Corrales Man Sentenced to 97 Months in Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Ernest Brian Tucker, 59, of Corrales, N.M., was sentenced this morning to 97 months in prison followed by 15 years of supervised release for his child pornography conviction. Tucker will be required to register as a sex offender when he completes his prison sentence. Tucker’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigation (HSI) in El Paso, Texas.
Tucker has been in federal custody since his arrest on March 7, 2012, on a criminal complaint charging him with child pornography offenses. Tucker subsequently was indicted and charged with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct and two counts of possession of a visual depiction of minors engaged in sexually explicit conduct. On Nov. 8, 2012, Tucker pled guilty to Count 2 of the indictment, a receipt of child pornography charge.
According to court filings, on March 7, 2012, the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a search warrant at Tucker’s residence and seized computers and computer-related media. The search warrant was based on an undercover investigation initiated in Jan. 2012 by the New Mexico State Police aimed at identifying those who possess, receive and distribute child pornography. The search warrant was obtained after the investigation revealed that an IP Address subscribed to Tucker's residence was participating in the distribution of child pornography.
In entering his guilty plea, Tucker admitted that, while the search warrant was executed, he voluntarily participated in a recorded interview with ICAC Task Force officers during which he admitted that he used a file-sharing program to down-load child pornography. Tucker also acknowledged that an examination of his computer and computer-related media revealed approximately 38,000 images and videos consistent with child pornography, including more than 2,700 images and videos of numerous children who have been identified as child pornography victims and have been rescued.
Assistant U.S. Attorney Charlyn E. Rees prosecuted the case, which was investigated by Homeland Security Investigations, the New Mexico State Police, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Lab.
Tucker was charged as part of Operation Artemis, an investigative effort by federal, state and local law enforcement affiliates of the New Mexico ICAC Task Force aimed at identifying individuals throughout New Mexico involved in the distribution, receipt, and possession of child pornography through peer-to-peer file sharing programs. In March 2012, federal, state and local law enforcement officers executed thirteen unrelated federal and state search warrants at residences throughout New Mexico, and seized computers and computer-related evidence related to child pornography offenses. To date, ten individuals have been arrested for violating federal and state child pornography laws based on the search warrants executed as part of Operation Artemis. The law enforcement agencies that participated in Operation Artemis include: Homeland Security Investigations, NMSP, New Mexico Attorney General’s Office, FBI, Albuquerque Police Department, Los Lunas Police Department, Santa Fe Police Department, Rio Rancho Police Department, and the New Mexico Regional Computer Forensic Lab.
Operation Artemis was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Corpus Christi Radiologist Group and Children’s Genetic Services Clinic Settle False Claims Act AllegationsRead the Press Release
HOUSTON – Children’s Physician Services of South Texas (CPSST) and Radiology Associates have agreed to pay to settle claims they violated the False Claims Act and the Texas Medicaid Fraud Prevention Act between 2002 and 2007, United States Attorney Kenneth Magidson announced today. CPSST, a part of the Driscoll Health System, has agreed to pay $1.5 million, while Radiology Associates, an independent physician group serving the Driscoll Health System, will pay $800,000 to settle claims they billed and received payment twice for the professional reading and interpretation of genetic ultrasounds.
“Improper double billing by health care providers defrauds the government funded health care programs, adds to the government’s deficit and, most importantly, reduces the funds available to meet the patients’ medical needs,” said Magidson. “In addition to yielding a substantial recovery for taxpayers, this settlement should serve notice to health care providers that taxpayers will not tolerate, much less accept, paying twice for services rendered to them.”
The settlement announced today involved allegations that CPSST billed and received payment for Radiology Associates’ professional services and, without disclosing the payments, directed Radiology Associates to bill and receive payment for the same professional services.
There are two components for each ultrasound, a technical component and a professional component. The technical component refers to the actual taking of the ultrasound by a technician and the professional component refers to the reading and interpretation of the ultrasound images by a physician, usually a radiologist. CPSST made arrangements to have Radiology Associates read and interpret the ultrasounds taken at CPSST. From Jan. 1, 2002, to June 1, 2007, Radiology Associates read and interpreted several thousand ultrasounds for CPSST. The understanding between the two providers was that CPSST would bill and receive payment solely for the technical component and Radiology Associates would bill and receive payment solely for the professional component. In reality, CPSST billed and received payment for both the technical and professional components without informing or disclosing this fact to Radiology Associates. Upon discovery of this fact, Radiology Associates informed CPSST about the double billing for the professional component, but CPSST denied billing for the professional component except for a few accidental and isolated occasions. Instead, CPSST instructed and directed Radiology Associates to continue to bill for the professional component and reaffirmed that CPSST would only bill for the technical component. Despite additional evidence of double billing, Radiology Associates ignored the evidence, accepted CPSST’s misrepresentations without question and continued to bill and receive payment for the professional component.
Government funded health care programs such as Medicare, Medicaid, TRICARE and the Federal Employees Health Benefits program agree to pay enrolled health care providers once for the technical and professional components of each ultrasound performed on a patient covered by theses health care programs. Health care providers enrolled and servicing patients covered by these government funded health care programs are prohibited from billing and receiving payment twice for the ultrasound’s technical or professional component.
The settlement resolves allegations made against Radiology Associates, Children’s Physician Services of South Texas, Center for Genetic Services, and Raymond C. Lewandowski Jr. M.D. in a qui tam or whistleblower lawsuit filed in 2008 by a former revenue manager and coding compliance officer with Radiology Associates. Under the False Claims Act, private citizens can bring suit on behalf of the government and share in any amounts that are obtained through that legal action. In this case, the share will be between 15 - 25% of the proceeds of the overall settlement.
The investigation was conducted by the United States Department of Health and Human Services - Office of Inspector General and the State of Texas Attorney General’s Office - Medicaid Fraud Control Unit (MFCU) and Civil Medicaid Fraud Division. Assistant United States Attorney Jose Vela Jr., Assistant Attorney General of Texas Christen Nedwick and MFCU Investigative Auditor Clint Lawhon led the investigation.
Cincinnati Man Sentenced to 199 Months in Prison for Carjacking, Illegal Use and Possession of A FirearmRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Bennie Overton, 34, of Cincinnati was sentenced in U.S .District Court to 115 months in prison for carjacking and illegal possession of a handgun and an additional 84 months for using a firearm in a crime of violence for a total sentence of 199 months.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Stephanie R. Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Cincinnati Police Chief James Craig and Silverton Police Chief Bruce M. Molett announced the sentence imposed today by U.S. District Judge Michael Barrett.
According to court documents, Overton approached a man in a parked car on April 29, 2012 and distracted the man by asking to borrow the car’s cigarette lighter. While the man’s head was turned, Overton pulled a firearm, placed it next to the victim’s head and forced the victim to move over into the passenger seat. The victim jumped out of the car and Overton sped away.
On May 4, 2012, Cincinnati Police found Overton passed out in the victim’s car. A firearm was found on the seat between Overton’s legs. A search of Overton’s apartment recovered a large quantity of ammunition, two revolvers, a loaded assault rifle, a shotgun and another long rifle. Overton had prior convictions as a felon and under federal law, felons are prohibited from owning or possessing firearms.
Overton pleaded guilty on August 13, 2012 to being a felon in possession. Two days later, a jury convicted Overton on the other two counts. He has been in custody since he was convicted.
“Overton, a convicted felon, knew that he was prohibited from possessing firearms and/or ammunition yet did so anyway, showing a blatant disregard for the law,” Cincinnati Branch Chief Anthony Springer wrote in a sentencing memorandum filed with the court.
U.S. Attorney Stewart commended the cooperative investigation by the ATF, CPD and Silverton Police, as well as Cincinnati Branch Chief Springer and Special Assistant U.S. Attorney Jennifer Deering with Hamilton County Prosecutor Joseph T. Deters’ office who represented the United States in the case.
Che Brown Sentenced to Three Months in Prison for Bank Fraud, Used False Documents to Modify His Mortgage-Claimed Income That He Didn’t Actually Receive-Read the Press Release
WASHINGTON – Che M. Brown, 45, of Washington, D.C., was sentenced today to three months of incarceration on a federal charge of bank fraud stemming from a scheme in which he submitted false documents to a mortgage lending service to win approval of a modification on a mortgage for his residence.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Brown pled guilty in December 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Brown will be placed on five years of supervised release. During that time, the judge ordered that Brown perform 200 hours of community service.
According to a statement of offense signed by the government as well as the defendant, Brown fell several months behind on his monthly mortgage in 2009. GMAC Mortgage LLC, a mortgage lending and servicing business, informed him that the mortgage was in default. GMAC also sent a letter to Brown in June 2009 that advised him that he should consider whether he was eligible for a loan modification that would make his monthly mortgage payment more affordable.
From September 2009 through September 2010, Brown schemed to defraud GMAC by submitting documents that made it appear that he had received $35,000 in income that he, in fact, had never received. Based on those and other representations, Brown was deemed qualified for the mortgage modification, which ultimately reduced his payments by $717.44 a month, to $1,499.
This marked the second time that Brown has been convicted of bank fraud. In 1995, he was convicted in the U.S. District Court for the District of Columbia of conspiracy to commit bank fraud in a scheme involving credit cards that resulted in $58,500 in losses.
The current prosecution arose from a broader investigation into the campaign activities of Brown’s brother, Kwame R. Brown, the former chairman of the Council of the District of Columbia. That investigation also led to the conviction of Kwame Brown in another bank fraud matter. Kwame Brown pled guilty in June 2012 to a federal charge of bank fraud stemming from false documents that he used to secure a $166,000 home equity loan, as well as a $55,335 loan that he used to purchase a boat. The Honorable Richard J. Leon sentenced Kwame Brown in November 2012 to a day in confinement and six months of home detention. Following the period of home detention, Kwame Brown will be placed on two years of supervised release; during that time, Judge Leon ordered that he perform 480 hours of community service.
The cases were investigated by the FBI’s Washington Field Office and the Washington Field Office of IRS-Criminal Investigation.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Special Agent in Charge Kelly commended those who investigated the case for the FBI and IRS-CI. They also acknowledged the efforts of those who prosecuted the case, including Assistant U.S. Attorneys David S. Johnson, Maia L. Miller, Matt Graves, and Ellen Chubin Epstein, and former Assistant U.S. Attorney Daniel Butler, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office, and Assistant U.S. Attorney Anthony Saler, of the Office’s Asset Forfeiture and Money Laundering Section.
Finally, they expressed appreciation to Forensic Accountant Crystal Boodoo; Paralegal Specialists Diane Hayes, Lenisse Edloe, Krishawn Graham, Tasha Harris, Shanna Hays, Christopher Samson, and Nicole Wattelet; former Paralegal Specialist Sarah Reis; former Legal Assistant Jared Forney; Criminal Investigators Matthew Kutz and Duncan Templeton; Litigation Support Services Specialist Thomas Royal; Information Technology Specialist Kimberly Austin; Victim-Witness Coordinator Dawn Tolson-Hightower; former Student Law Clerks Carl Barnes, Iris Postelnicu, and Danielle Rosborough, and Intelligence Specialist Lawrence Grasso, all of the U.S. Attorney’s Office for the District of Columbia.
13-083Career Offender Sentenced to 14 Years in Sex Trafficking CaseRead the Press Release
PORTLAND, Ore. – Dwayne Jamal Hubbard, 24, of Portland, Oregon, was sentenced today by U. S. District Judge Anna J. Brown to 168 months in prison, to be followed by a five-year term of supervised release. The federal charges were filed in May 2012 after an investigation led by the FBI’s Child Exploitation Task Force working in conjunction with the Tigard Police Department. On December 10, 2012, Hubbard pled guilty to sex trafficking of a minor, which carries a mandatory minimum of ten years in prison and a maximum of life imprisonment.
Today at his sentencing, the Court found Hubbard qualified as a career offender based on his prior felony convictions, and this status subjected him to enhanced penalties. According to prosecutors, Hubbard met a 17-year-old female online, arranged a meeting, and immediately started encouraging her to engage in commercial sex acts by posting sexual advertisements on Backpage.com. Within days of meeting, defendant took sexually suggestive photographs of her, created online advertisements, and began sending her out to engage in sex acts with strangers in exchange for money. Hubbard continuously pestered her through text messages asking her if she could make him some money.
“This defendant believed being a pimp and selling young women for sex was a low-cost way to earn significant financial benefit,” said U.S. Attorney Amanda Marshall. “My office is committed to changing the cost side of the analysis – if you get caught sex trafficking in this District, we will work with our law enforcement partners to arrest you and seek the kind of stiff penalties that Congress envisioned for this crime.”
In crafting an appropriate sentence, Judge Brown noted the horrific nature of the offense and addressed the negative impact it has in our community. Because Hubbard agreed to accept responsibility for his crime and resolve his case early, the government recommended some downward variance to his guideline range to reach a 14-year sentence. The Court agreed that by resolving early, defendant prevented further harm to the victim that can only be compounded by protracted litigation.
The case was prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
California Man Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
COEUR D’ALENE – Donald Paul Hankey, 28, of San Jose, California, pleaded guilty today to an indictment charging him with one count of felon in possession of a firearm, U.S. Attorney Wendy J. Olson announced. Hankey appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
According to the indictment, on November 13, 2012, Hankey knowingly and illegally possessed a Springfield Armory 9 millimeter handgun. Hankey is prohibited from possessing firearms due to a previous felony conviction for possessing a controlled substance. The government is seeking forfeiture of the firearm.
The charge of felon in possession of a firearm is punishable by up to ten years in a prison, a maximum fine of $250,000, and up to three years of supervised release.
Hankey is scheduled to be sentenced on June 24, 2013, at the federal courthouse in Coeur d’Alene.
The case was investigated by the North Idaho Violent Crimes Task Force (NIVCTF). The NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and the Coeur d'Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Brothers and Hit-Man Convicted of RICO and Murder Conspiracies Involving Little Village False Identification Document RingRead the Press Release
CHICAGO — Three defendants are facing mandatory life imprisonment after a federal jury found them guilty of racketeering conspiracy, murder in aid of racketeering, and related crimes after a six-week trial in U.S. District Court. Two brothers, JULIO and MANUEL LEIJASANCHEZ, who operated a lucrative, black-market counterfeit identification document business in Chicago’s Little Village community for at least 15 years, were convicted along with GERARDO SALAZAR-RODRIGUEZ, who they directed to commit an execution-style murder in Mexico of a fledgling competitor. The murder plot was intended to prevent two former employees from starting a competing business and to maintain control over employees of their operation, which generated annual revenues of approximately $3 million.
Evidence at trial showed that Salazar-Rodriguez fired more than a dozen shots in killing one of the victims in his taxi cab near Mexico City in April 2007, and the jury heard transcripts of intercepted telephone conversations in which he boasted to the brothers after the murder. He also hunted for a second victim who he believed was in Mexico at the time but who was actually in federal custody in Chicago. That intended victim, who pleaded guilty to fraudulent identification document charges, cooperated and testified as a government witness at trial.
After the jury returned guilty verdicts on all counts yesterday afternoon, the trial ended today when the jury returned special findings regarding the murder that raised the maximum penalty for racketeering conspiracy to life in prison. The murder in aid of racketeering conviction carries a mandatory life sentence for all three defendants. U.S. District Judge Rebecca Pallmeyer scheduled sentencing for Sept. 12.
“This violent conspiracy went to great lengths to corner the fake document market in Chicago, going so far as to murder a rival vendor in order to protect their lucrative turf,” said Gary Hartwig, Special Agent-in-Charge of HSI in Chicago. “The guilty verdicts clearly demonstrate our unyielding resolve to dismantle the criminal organizations that perpetuate and profit from document fraud within our borders.”
The trial and convictions stem from Operation Paper Tiger, an investigation conducted by Homeland Security Investigations agents, along with other local, state, and federal law enforcement agencies. In April 2007, the investigation resulted in charges against 24 defendants and the dismantling of the Leija-Sanchez fraudulent document organization that operated in and around the Little Village Discount Mall at West 26th and Albany in Chicago. Except for the three trial defendants and three fugitives, all of the remaining defendants were convicted.
Manuel Leija-Sanchez, 45, and Salazar-Rodriguez, 40, were arrested later in Mexico and were extradited to the United States in 2010 and 2011 to stand trial, together with Julio Leija- Sanchez, 37, who was arrested in Chicago in 2007. A third Leija-Sanchez brother, Pedro, 40, was also arrested in Mexico and extradited to the U.S in 2011. He pleaded guilty last August to racketeering conspiracy for operating the fraudulent ID ring with his brothers and is awaiting imposition of an agreed sentence of 20 years in prison, currently scheduled for March 13.
Evidence at trial showed that the three Leija-Sanchez brothers operated the bustling illegal business between 1993 and 2007. The Mexico-based organization was supervised by an overall leader living in Chicago, and the leadership position rotated among the Leija-Sanchez brothers. The organization sold as many as 100 sets of fraudulent identification documents each day, charging customers approximately $200 per “set,” consisting of a Social Security card and either an immigration “green card” or a state driver’s license.
Manuel and Julio Leija-Sanchez and Salazar-Rodriguez conspired to murder Guillermo Jimenez-Flores, also known as “Montes,” a former member of their organization who became a fledgling rival and was shot to death by Salazar-Rodriguez in Mexico in April 2007. The three trial defendants also were convicted of conspiracy to kill a second victim, Bruno Freddy Ramirez-Camela, who they believed was in Mexico but was actually incarcerated in Chicago.
The convictions were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois. He commended the years of hard work by HSI agents, who were joined in the investigation by the Chicago and Galveston, Tex., police departments and the Chicago offices of the U.S. Secret Service, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Government of Mexico and Mexican law enforcement partners also provided significant assistance.
The government is being represented by Assistant U.S. Attorneys Michelle Nasser, Andrew Porter and William Ridgway.
Bosnian Woman Charged with Naturalization FraudRead the Press Release
A grand jury returned a two-count indictment charging Divna Maslenjak, 50, with naturalization fraud and misuse of evidence of naturalization, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Maslenjak, while a citizen of Bosnia Herzegovina, made material false statements in her application and interview for naturalization by failing to acknowledge she had lied to government officials when applying for her refugee status.
The indictment further alleges that Maslenjak used her unlawfully obtained naturalization as a basis for assisting her husband in securing his lawful permanent resident status based upon their marriage.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Phillip J. Tripi and Margaret Sweeney, following investigation by agents of the U.S. Immigration and Customs Enforcement.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Belleview Man Sentenced to Four Years in Federal Prison for Possession of Child PornographyRead the Press Release
Ocala, FL - U.S. District Judge Charlene Edwards Honeywell today sentenced Ronald E. Slauson (73, Belleview) to 4 years in federal prison, followed by ten years of supervised release, for possession of child pornography. The court also ordered Slauson to forfeit computers and computer items relating to such criminal activity. Slauson pleaded guilty on November 12, 2012.
According to court documents, on May 8, 2012, a special agent with U.S. Immigration and Customs Enforcement's Homeland Security Investigations was conducting an online investigation into the possession of child pornography. The agent identified an Internet Protocol (IP) address that was being used for sharing videos and images of suspected child pornography. During the investigation, the agent was able to determine that the internet subscriber was Ronald Slauson. On September 7, 2012, a federal search warrant was executed at Slauson's Belleview residence, and computers and computer storage items were seized. Subsequent computer forensic examinations revealed that Slauson was in possession of approximately 1,498 videos approximately 2,860 images of child pornography. This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Sam Armstrong.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Baltimore Felon Exiled to over 11 Years in Prison for Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jermaine Miller, age 29, of Baltimore, today to 134 months in prison followed by three years of supervised release for possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on June 7, 2010 Baltimore police officers saw Miller exit an alley from the 1800 block of Rutland Avenue, Baltimore. When Miller saw the police officers, he popped an object into his mouth. The police officers ordered Miller to spit out the object, which was found to be a gel cap containing heroin. Miller was arrested and four additional gel caps containing heroin were seized from Miller. A search warrant was executed at Miller’s residence and police seized a plastic baggie containing nine individual baggies of cocaine along with a .357 revolver and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorneys Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Architect of Fraudulent Gold Futures Trading Investment Scheme Sentenced to Nearly Ten Years in Federal PrisonRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Terry Vernon Koontz (56, Apollo Beach) yesterday to 9 years and 7 months in federal prison for conspiracy to commit mail fraud and wire fraud. The court also ordered the forfeiture of a $50,000 cashier's check, which is traceable to proceeds of the fraud scheme, and a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme.
According to court documents, from about December 2010, through November 2011, Koontz and a co-conspirator developed a plan to use false and fraudulent representations, pretenses and promises to solicit victim-investors to wire funds into bank accounts which they controlled. The accounts were for investment in a purported gold futures investment program supposedly run by an existing New York-based investment firm called Paulson & Co., Inc. To facilitate the scheme, conspirators utilized an unincorporated Florida entity (CK&K), in Tampa. Koontz was the primary architect of the fraud scheme.
In late January 2011, conspirators opened a bank account in the name of CK & K to be used to receive victim-investors’ funds. During the same time frame, Koontz and co-conspirators began soliciting prospective victim-investors to invest in the purported gold futures investment program. Once convinced to participate, Koontz or co-conspirators directed the victim-investor to transmit his or her funds, via wire and other means, to the CK & K account.
In an effort to enhance the appearance of the fraudulent investment program, Koontz created false and fraudulent documents, including promissory notes and assignments of collateral, which supposedly evidenced and guaranteed the victim-investors’ participation in the investment program. In preparing these documents, Koontz used the names and signatures of various existing foreign and/or domestic entities, without such entities’ and individuals’ knowledge or consent. The promissory notes also guaranteed a rate of return, usually ranging between three and six percent, each month. After a victim-investor wired his or her investment funds, Koontz and/or co-conspirators caused a false and fraudulent promissory note and assignment of collateral to be sent, via FedEx, from either Tampa or Ft. Myers, to the victim-investor. Most of the victim-investors resided outside of Florida.
As the fraudulent investment program grew, Koontz and co-conspirators organized and hosted live presentations, conducted via conference call, to solicit more prospective victim-investors. Some of the presentations were recorded for later access by other prospects. At times, Koontz falsely posed as a satisfied investor and gave a testimonial touting the success of the fraudulent investment program. He also portrayed himself as a close personal friend and professional associate of the founder of the existing New York-based investment firm Paulson & Co., Inc., to persuade the prospective victim-investor to participate in the purported gold futures investment program.
Koontz and co-conspirators used the victim-investors’ funds to perpetuate the fraud scheme and for the personal enrichment of themselves, their family members, and friends. Specifically, they purchased motor vehicles, real property, home furnishings, jewelry, and other goods and services. Funds invested by later victim-investors were used to make interest payments to earlier victim-investors in order to make it appear that the investment program was performing as represented. Other such funds were used to pay expenses associated with operating the fraud scheme, including, but not limited to, office rents, wire transfer fees, and FedEx fees.
On January 30, 2013, U.S. District Judge Susan C. Bucklew sentenced co-conspirators John Henley Fowler (64, Ft. Myers) to 70 months in federal prison for conspiracy to commit mail fraud and wire fraud, and Jeffrey Robert Fowler (35, Ft. Myers) to 37 months in federal prison on a similar charge. The court also ordered the Fowlers to forfeit bank accounts, vehicles, real property, computer equipment, a big screen television, iPad and iPhone, which are traceable to proceeds of the fraud scheme, and the court entered a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme.
This case was investigated by the Federal Bureau of Investigation and the United States Secret Service. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
83 Individuals Indicted for Drug Trafficking in the Municipality of San JuanRead the Press Release
SAN JUAN, PR – On March 1st, 2012, a federal grand jury returned two separate indictments against 83 individuals as a result of two investigations led by the Drug Enforcement Administration (DEA) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez.
According to the first indictment, 41 defendants are charged with conspiracy to possess with intent to distribute “crack” (cocaine base,) heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax). The object of the conspiracy was to distribute controlled substances at the Dr. López Sicardó Public Housing Project and other areas nearby and within the Municipality of San Juan, Puerto Rico, for significant financial gain. The main leader of the organization was Gregorio Cardenas-Marquez, (aka “Tio”, “Gre”), who directly controlled the drug trafficking activities. Cardenas- Marquez also purchased and transported wholesale amounts of narcotics that were delivered to co-conspirators for further distribution at the drug points.
The 41 co-conspirators had many roles, in order to further the goals of the conspiracy, including: one leader, six drug point owners (including the leader), one supplier, two enforcers, four runners, 25 sellers and three facilitators.
It was further part of the manner and means of the conspiracy that a co-conspirator prepared and possessed a list of the rules that were to be followed at all times by the members of the drug trafficking organization. The rules included the following: shifts were not to be changed without authorization; those who were not scheduled to work should not show up at the drug point; look-outs had to be paid for their work; all members should have a scanner; a maximum of two “materials” (narcotics) should be distributed at each drug point; customers should be allowed to request what narcotics they want to purchase, without taking money from their hands; and members of the organization were not allowed to fight against each other.
It was further a part of the manner and means of the conspiracy that during the course of the conspiracy, basketball games were organized by the co-conspirators in which the teams of various drug points were identified by the same color used to label the drugs or “material” that they worked with or owned. In addition, the members of the drug trafficking organization would possess, carry, use, brandish and/or use firearms in order to protect themselves and their drug trafficking business. Ten members of the drug trafficking organization are facing one count for using and carrying firearms during and in relation to a drug trafficking crime.
The second indictment charges 42 defendants with conspiracy to possess with intent to distribute “crack” (cocaine base,) heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax). The object of the conspiracy was to distribute controlled substances at the Los Peña Public Housing Project and other areas nearby and within the Municipality of San Juan, Puerto Rico, for significant financial gain. The main leader of the organization was Evelio Rosario-Rosado, aka “Casper”, “Cuquito”, “Cuqui”, “El Boss”.
The 42 co-conspirators had many roles, in order to further the goals of the conspiracy, including: one leader, four drug point owners (including the leader), four runners, 29 sellers and five facilitators. Eight members of the drug trafficking organization are facing one count for using and carrying firearms during and in relation to a drug trafficking crime.
Both drug trafficking organizations face a narcotics forfeiture allegation of 10 million dollars.
“The criminal activity laid out in these indictments is extensive, however, our commitment to continue our fight against these offenders is unwavering,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This extensive investigation has taken dangerous drug traffickers off our streets, and they will face justice for their crimes.”
“Today’s arrests stand as a warning to those individuals whose greed drives them to pollute our streets and schools with poisonous contraband. Our message to drug vendors is – deal at your own risk. We are going to find you and you are going pay a severe and certain penalty in federal court,” said Pedro Janer, DEA Acting Special Agent in Charge for the Caribbean Division.
This case is being prosecuted by Assistant United States Attorney Teresa Zapata-Valladares.
If convicted, the defendants face a minimum of ten (10) years imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
4 March 2013
Wounded Knee Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota man has been indicted by a federal grand jury for allegedly using a hard object to cause serious bodily injury to a female at Wounded Knee on December 28, 2012.
Lyle Sutton, Jr., age 26, was indicted by a federal grand jury on February 20, 2013 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Sutton appeared before U.S. Magistrate Judge Veronica L. Duffy on February 26, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction for each charge is 10 years of imprisonment and a $250,000 fine. The charges are merely accusations and Sutton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Wayne Venhuizen and Sarah Collins are prosecuting the case.
Sutton was remanded to the custody of the U.S. Marshal. A trial date has been set for May 7, 2013.
Two Sentenced for Trafficking Counterfeit GoodsRead the Press Release
United States Attorney Brendan V. Johnson announced that two people from Rapid City, South Dakota convicted of Trafficking in Counterfeit Goods and Services were sentenced on February 22, 2013 by Chief U.S. District Judge Jeffrey L. Viken.
Ravaye Meltzer, age 34, and Bar Braver, age 29, were both sentenced to 1 year of probation, ordered to pay $100 to the Victim Assistance Fund, and forfeited their rights in approximately $300,000 in bank accounts and goods.
Between February 2010 and August 2011, Meltzer and Braver intentionally sold counterfeit goods near Rapid City, Keystone, Deadwood, Hill City, and Sturgis. The sale of the counterfeit goods violated the trademarks held by Monster Energy, Angry Birds, Hollister, The North Face, and Ed Hardy.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Two Pill Dealers Sentenced to Federal Prison for Oxycodone Distribution ConspiracyRead the Press Release
Defendants brought thousands of pills from Detroit and distributed them in Huntington
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that two pill dealers were sentenced to a total of more than eleven years in federal prison for selling prescription painkillers. Joseph Dre Moore, also known as “Tay,” 33, of Huntington, was sentenced to seven years and three months in prison. Moore admitted that beginning in late summer 2009, he was involved in an illegal pill distribution scheme in and around Huntington, W.Va. Moore admitted that during the scheme, he obtained pills from Detroit, Michigan or from individuals with ties to sources in Detroit. Moore further admitted that on September 22, 2009, he directed a known individual to distribute nine 80-milligram oxycodone tablets to a confidential informant working for the Huntington Violent Crimes and Drug Task Force. The transaction occurred near 14th Street and Adams Avenue in Huntington. Moore also admitted that in December 2009, he began using a Huntington residence to store and distribute controlled substances including marijuana, crack cocaine, and oxycodone. Moore admitted that he sold approximately 30 80-milligram oxycodone tablets per month for at least two months.
In a separate hearing today, Moore’s co-defendant Rita Evette Johnson, 33, of Detroit, was sentenced to three years and ten months in prison. Johnson admitted that she became involved in the illegal pill conspiracy during the spring of 2011. Johnson admitted that she typically obtained pills from Detroit and shipped them to co-defendant Moore in Huntington. Johnson further admitted that in the spring of 2011, she arranged for approximately 2,700 30-milligram oxycodone tablets to be sent to co-defendant Moore. Johnson also admitted that she recruited an individual to carry 600 30-milligram oxycodone tablets and 90 40-milligram oxycodone tablets by commercial bus from Detroit to co-defendant Moore in Huntington. Moore also admitted his participation in the pill drop-off scheme.
The Huntington Violent Crimes and Drug Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecutions. The sentences were imposed by United States District Chief Judge Robert C. Chambers.
The cases were 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.
Two Leaders of the Newburgh Latin Kings Found Guilty in White Plains Federal Court of Three Murders, Racketeering, Drug, Firearms, and Witness Tampering ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILSON PAGAN, a/k/a “King Gunz,” and CHRISTIAN SANCHEZ, a/k/a “King Chi Chi,” leaders of the Latin Kings gang in Newburgh, New York (the “Newburgh Latin Kings”), were found guilty today before U.S. District Judge Cathy Seibel in White Plains federal court of 29 counts, including murder, racketeering, drug, firearms, and witness tampering charges, after a six-week jury trial. Judge Seibel set July 11, 2013 for sentencing, at which time PAGAN and SANCHEZ will both face mandatory terms of life in prison.
PAGAN and SANCHEZ are two of 35 members and associates of the Newburgh Latin Kings originally indicted in connection with the case, all of whom have been convicted. Among other charges, PAGAN was found guilty of the May 6, 2008 murder of Jeffrey Zachary, and SANCHEZ was found guilty of the March 11, 2010 murder of Jerome Scarlett, a/k/a “Rudeboy,” and the murder of John Maldonado, a/k/a “Tarzan,” less than 24 hours later, on March 12, 2010.
“U.S. Attorney Preet Bharara stated: For far too long, the residents of Newburgh were plagued by lethal violence and narcotics trafficking at the hands of these two defendants and their cronies, and in just nine hours, the jury unanimously found them guilty of a catalogue of crimes, including the tragic murder of an innocent 15-year-old boy who was in the wrong place at the wrong time. Their reign of terror is now over for good and everyone can breathe easier as a result. Today’s guilty verdicts are the latest example of how we are making good on our promise to eradicate the scourge of gangs and to give neighborhoods back to their residents, and together with our federal, state, and local law enforcement partners, we will continue our fight.”
According to the evidence at trial before Judge Seibel:
Between 2007 and 2011, the Newburgh Latin Kings and their trusted associates sold crack cocaine, heroin, powder cocaine, and marijuana at drug spots in Newburgh, including the areas of Benkard Avenue and William Street, and South Miller Street and Broadway. Gang members and associates protected the gang’s drug turf, drugs, and drug money, with guns and violence. The violence included frequent shootings, stabbings, and assaults of rival drug dealers, including members of another gang in Newburgh known as the Bloods, as well as witnesses and suspected Government witnesses within their own gang.
The Newburgh Latin Kings were governed by a council of five officers, who were referred to as crowns (collectively, the “Crown Council”). PAGAN and SANCHEZ each served as the First Crown, and overall head of the Newburgh Latin Kings -- PAGAN from 2008 through January 2010 and SANCHEZ from February 2010 through February 2011.
The Newburgh Latin Kings had regular chapter meetings at which attendance was mandatory and members were required to pay dues. At the meetings, members discussed their criminal activities and alleged transgressions of chapter rules. They also directed punishments, known as “violations,” against members who were determined to have committed transgressions. Furthermore, at the meetings the Newburgh Latin Kings discussed conflicts with other gangs. In some instances, the Crown Council used meetings to order attacks on individuals and rival gangs.
On May 6, 2008, two members of the Newburgh Latin Kings were ordered by PAGAN and another leader of the gang to shoot a member of the Bloods on Dubois Street in Newburgh. The members of the gang then drove to the vicinity of Dubois Street and shot at individuals they mistakenly believed were members of the Bloods, including Jeffrey Zachary, a 15-year old, who was shot and killed.
The Latin Kings violence continued after the Zachary murder, and included a violent altercation on November 1, 2008 when PAGAN ordered other members of the Latin Kings to bring a gun to South Miller Street in Newburgh, resulting in another member of the gang discharging a gun; the stabbing of a gang member, on orders from PAGAN, in January 2010; and the attempted stabbing of a gang member, who was believed cooperating with law enforcement, on orders from SANCHEZ in February 2010.
The violence culminated in March 2010 with the shooting deaths of Scarlett and Maldonado on back-to-back nights of bloodshed. SANCHEZ along with other leaders of the Newburgh Latin Kings ordered the murder of Maldonado. SANCHEZ spoke on the phone with other members of the gang at they walked Maldonado to the intersection of Benkard and Little Monument Street, where a shooter, recruited by gang members that same day, lay in wait to gun Maldonado down. After the shooting, the same leaders of the gang spoke to SANCHEZ on the phone as they stood over Maldonado, who lay dying in the street.
Finally, in September 2010, SANCHEZ shot another member of the gang during a violent confrontation over the leadership of the gang.
The investigation resulting in the prosecution of members and associates of the Newburgh Latin Kings was conducted by the Federal Bureau of Investigation’s (“FBI”) Hudson Valley Safe Streets Task Force, which combined the efforts of dozens of law enforcement officers from federal, state, and local agencies and departments, including agents and officers with the FBI, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the City of Newburgh Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the Middletown Police Department, the Orange County Sheriff’s Office, the New York State Police, and the Town of Newburgh Police Department. Mr. Bharara thanked the member agencies of the Task Force for their work in the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Nicholas McQuaid, Benjamin Allee, and Abigail Kurland are in charge of the prosecution.
U.S. v. Wilson Pagan, et al. S20 Indictment
Two Grey Hills, N.M., Man Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Erick McDonald, 21, an enrolled member of the Navajo Nation who resides in Two Grey Hills, N.M., entered a guilty plea this morning to abusive sexual contact charges under a plea agreement with the U.S. Attorney’s Office.
During his plea hearing, McDonald pled guilty to a two-count information charging him with abusive sexual contact with a six-year-old Indian child and a 12-year-old Indian child on Sept. 19, 2012. In entering his guilty plea, McDonald admitted that he intentionally touched the genitals and other body parts of the two victims to gratify his sexual desire. Court records reflect that McDonald’s unlawful conduct occurred in a residence on the Navajo Indian Reservation.
McDonald has been in federal custody since his arrest on Oct. 9, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, McDonald faces a maximum penalty of three years of imprisonment for abusing the 12-year-old victim and six years of imprisonment for abusing the six-year-old victim. McDonald also will be required to register as a sex offender.
The case was investigated by the Albuquerque and the Farmington offices of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Three Philippine Nationals Convicted in Los Angeles of Importing Military Grade WeaponsRead the Press Release
Three Philippine nationals were convicted today in Los Angeles of illegally importing military grade weapons into the United States after being caught in a sting operation that was conducted in the Philippines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Bill Lewis, Assistant Director in Charge of the FBI's Los Angeles Field Office.
Sergio Syjuco, 26, Cesar Ubaldo, 27, and Arjyl Revereza, 26, each of the Philippines, were convicted after a four-week trial by a federal jury in U.S. District Court in the Central District of California of conspiring to illegally import the weapons into the United States, and aiding and abetting the importation of those weapons. The defendants were charged in an indictment filed on Jan. 12, 2012.
According to the evidence presented at trial, the defendants conspired to sell high-powered military and assault weapons to a buyer interested in bringing weapons into the United States to arm drug dealers in Mexican drug cartels and Mexican Mafia gang members. In November 2010, Ubaldo met with a prospective weapons buyer, who was actually an undercover FBI agent, and offered to introduce the agent to suppliers of high-powered firearms. Ubaldo subsequently introduced the undercover agent to Syjuco, who supplied the weapons, and Revereza, who was a police officer in the Philippines Bureau of Customs who facilitated the movement of the illegal weapons through Philippines customs and eventually into the United States. The weapons supplied included a rocket propelled grenade launcher, a mortar launcher, an M203 single-shot grenade launcher and 12 Bushmaster machine guns, as well as explosives including mortars and grenades. The trial evidence demonstrated that the defendants also illegally imported into the United States the highest level military body armor.
The weapons, which were tracked and safeguarded by the FBI during their shipment, landed in Long Beach, Calif., on June 7, 2011, where they were seized by the FBI.
At sentencing, which is scheduled for June 10, 2013, each defendant faces a maximum potential penalty of five years in prison and a $250,000 fine for conspiracy to import weapons into the United States, as well as 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons, excluding the 12 fully automatic Bushmaster firearms. In addition, defendants Syjuco and Revereza face a maximum potential penalty of 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons in this case, and five years in prison and a $250,000 fine for causing the importation of the 12 fully automatic Bushmaster firearms in this case.
The investigation was conducted by agents and investigators of the FBI, the U.S. Secret Service and the Philippine National Bureau of Investigation. Deputy Chief Kim Dammers and Trial Attorney Margaret Vierbuchen of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.