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Wednesday 16 January 2013
Brazilian Husband and Wife Plead Guilty in Florida to Human SmugglingRead the Press Release
Two Brazilian nationals pleaded guilty today in Miami to smuggling undocumented migrants to the United States for profit, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Juliana Rose Tome-Froes, 36, and her husband, Fabio Rodrigues Froes, 49, pleaded guilty before U.S. District Court Judge Federico A. Moreno in the Southern District of Florida to six counts and two counts, respectively, of bringing and attempting to bring aliens to the United States for commercial advantage and private financial gain.
According to plea documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States.
At sentencing, scheduled for March 21, 2013, Juliana Tome-Froes faces a maximum penalty of 15 years in prison and a $250,000 fine, and Fabio Froes faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida.
The investigation was conducted by ICE Homeland Security Investigations in Miami.
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.
Bend Couple Charged with $4.4 Million Investment Scheme Pleads GuiltyRead the Press Release
Eugene, Ore. - Late Tuesday, January 15, 2013, Tamara Sawyer, 49, and Kevin Sawyer, 60, of Bend, Oregon, pled guilty. Mr. Sawyer pled guilty to Count 14 of a 21-count indictment for making false statements to a financial institution. Ms. Sawyer pled guilty to all 21 counts including conspiracy to commit wire fraud, wire fraud, bank fraud, making a false statement to a financial institution, money laundering. They agreed to forfeiture of certain assets and to pay full restitution to the victims of the fraud scheme.
Defendant Kevin Sawyer, a former Bend Police Captain, admitted to lying to a bank to obtain a mortgage. He intentionally misrepresented assets, liabilities, and the source of the down payment. Defendant Tamara Sawyer, a former licensed real estate broker in Bend, Oregon, admitted to lying to investors to obtain their money. She enticed investors by falsely promising high rates of return, typically 12 percent, and secured the investments with promissory notes. Rather than investing the money as promised, she used it to fund their other companies and ventures and to pay personal expenses, including cars, credit cards, and the construction of their vacation home in Mexico. Additionally, as the scheme progressed and investors began to demand a return on their investment, she used new investor money to pay older investors. Defendant Tamara Sawyer caused investors to lose more than $4.4 million.
Sentencing is set for April 30, 2013, at 9:00 a.m. before Chief U.S. District Court Judge Ann Aiken at the federal courthouse in Eugene, Oregon.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Amy E. Potter.
Belview Woman Sentenced for Embezzling from Minnwest BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 48-year-old woman from the southwestern Minnesota community of Belview was sentenced for stealing hundreds of thousands of dollars from the customers of Minnwest Bank, in Marshall, Minnesota, where she worked. United States District Court Judge John R. Tunheim sentenced Barbara Kaye Rechtzigel to 24 months in federal prison on one count of embezzlement by a bank officer. The judge also ordered her to pay $1,013,018.27 in restitution to the bank. Rechtzigel was charged on July 23, 2012, and pleaded guilty on August 6, 2012.
In her plea agreement, Rechtzigel admitted that from 1998 through June of 2012, she embezzled the money for her personal use, primarily to pay off shopping debts. When she was terminated from employment on June 4, 2012, Rechtzigel was the senior operations manager at the bank’s Marshall location.
To carry out her embezzlement scheme, Rechtzigel created false paperwork to make bank customers believe their CDs were being renewed and earning interest, when, in fact, she was stealing and spending the money. The bank ultimately repaid the customers victimized by the scheme. In total, the bank paid out more than $1 million.This case was the result of an investigation by the Federal Bureau of Investigation and the Marshall Police Department, with assistance from the Federal Deposit Insurance Corporation—Office of Inspector General. It was prosecuted by Assistant U.S. Attorney William J. Otteson.
Bank Vice-President and Senior Business Director Pleads Guilty to Wire Fraud SchemeRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces today that Susan Emily Jones (50, Lutz) pleaded guilty to wire fraud. Jones faces a maximum penalty of 20 years in federal prison. As part of her plea agreement, Jones has agreed to a money judgment of $824,301.57, representing the proceeds of her criminal conduct.
According to the plea agreement, Jones served as Vice-President and Senior Business Director of Citicorp Services, Inc. and managed its employees and operations during the relevant time period. From November 13, 2003, through January 5, 2010, in Tampa, Jones falsely and fraudulently led Citicorp Services, Inc. employees to believe that she was authorized to make certain expenditures of Citicorp Services, Inc. funds. She misappropriated the funds for her personal enrichment, including paying for season tickets to the Tampa Bay Buccaneers, personal credit card and auto-related expenses, charitable contributions, prepaid debit cards, travel, and other personal expenses. In addition, Jones caused the unauthorized transfer of funds from the Citibank, N.A. reserve account to the Citicorp Services, Inc. account. In sum, she caused the transmission of wires in interstate commerce and bypassed Citicorp Services, Inc.’s and Citibank, N.A.’s internal controls for business and travel and entertainment expenses. In so doing, she misappropriated $824,301.57.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Another Guilty Plea in Aryan Knights CaseRead the Press Release
BOISE – Dallas Tyler Thompson, 31, of Boise, pleaded guilty today in United States District Court to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Thompson admitted that on June 19, 2012, he was in possession of a Glock 9 millimeter handgun. Thompson was prohibited from possessing the handgun because he was previously convicted of the felony crime of aggravated battery in 2001. Thompson’s case is part of a larger, ongoing investigation involving the Aryan Knights gang, in which twenty-two people were charged with drug trafficking and firearms violations. Thompson is the twelfth person to plead guilty.
Unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Thompson is set for sentencing on April 8, 2013, before Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Allen Man Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Allen, South Dakota, man has been indicted by a federal grand jury for allegedly stealing money order checks, which had a value of over $1,000, from a woman at Pine Ridge in March 2012.
Clarence W. Yellow Hawk, Sr., age 44, was indicted by a federal grand jury on December 18, 2012, for Larceny. Yellow Hawk appeared before United States Magistrate Judge Veronica L. Duffy on January 10, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine. The charge is merely an accusation, and Yellow Hawk 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 United States Attorney Wayne Venhuizen is prosecuting the case. Yellow Hawk was released on bond pending trial. A trial date has been set for March 19, 2013.
32 Individuals Charged in Manhattan Federal Court in Connection with Alleged Organized Crime Scheme to Control the Commercial Waste Disposal IndustryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George C. Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and George N. Longworth, the Commissioner of the Westchester County Police Department today announced the unsealing of charges against 32 individuals as part of a multi-year investigation into organized crime’s alleged continuing control of large aspects of the commercial waste-hauling industry in the greater New York City metropolitan area and in parts of New Jersey. The main Indictment charges 12 defendants under the Racketeer Influenced and Corrupt Organizations Act (“RICO”) for conspiring to participate in a racketeering enterprise that asserted illegal and extortionate control over commercial waste-hauling companies, and 17 other defendants with individual acts of extortion, loansharking, and other crimes associated with those activities. The charges are contained in three Indictments, United States v. Franco, et al., United States v. Giustra, et al., and United States v. Lopez.
Thirty of the defendants were arrested this morning in connection with today’s charges, and will be presented and arraigned in Manhattan federal court before U.S. Magistrate Judge Kevin N. Fox later this afternoon. Two defendants, DOMINICK PIETRANICO and PASQUALE P. CARTALEMI, are expected to surrender this week.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, organized crime still wraps its tentacles around industries it has fed off for decades, but law enforcement continues to pry loose its grip. Here, as described in the indictments, organized crime insinuated itself into the waste disposal industry throughout a vast swath of counties in New York and New Jersey, and the tactics they used to exert and maintain their control come right out of the mafia playbook – extortion, intimidation, and threats of violence. And while these accused mobsters may have hidden themselves behind seemingly legitimate owners of waste disposal businesses, law enforcement was able to pierce that veil through its painstaking, multi-year investigation. Organized crime has many victims – in this case small business owners who pay for waste removal, potential competitors, and the communities infected by this corruption and its cost. Organized crime is in a losing battle and we and our law enforcement partners remain committed to its extinction.”
FBI Assistant Director-in-Charge George C. Venizelos said: “The indictments show the ongoing threat posed by mob families and their criminal associates. In addition to the violence that often accompanies their schemes, the economic impact amounts to a mob tax on goods and services. The arrests – the culmination of a long and thorough investigation – also show the ongoing determination of the FBI to diminishing the influence of La Cosa Nostra.”
Westchester County Police Department Commissioner George N. Longworth said: “The long-term partnership between the Westchester County Police and federal law enforcement is an important means of combating organized crime and ensuring that businesses in Westchester are free to operate without fear of extortion or undue influence.”
The following allegations are based on the Indictments unsealed today and statements made in Manhattan federal court:
Twelve of the defendants, who are members and associates of three different Organized Crime Families of La Cosa Nostra (“LCN”) – the Genovese, Gambino and Luchese Crime Families – are charged with participating in a RICO enterprise in which they worked together to control various waste disposal businesses in the New York City metropolitan area and multiple counties in New Jersey (the “Waste Disposal Enterprise,” or “Enterprise”). The Waste Disposal Enterprise was a criminal organization the members of which engaged in crimes including extortion, loansharking, mail and wire fraud, and stolen property offenses. CARMINE FRANCO, ANTHONY PUCCIARELLO, HOWARD ROSS, ANTHONY CARDINALLE, PETER LECONTE, FRANK OLIVER, CHARLES GIUSTRA, DOMINICK PIETRANICO, JOSEPH SARCINELLA, WILLIAM CALI, SCOTT FAPPIANO, and ANTHONY BAZZINI (“Enterprise members”) were leaders and members of the Waste Disposal Enterprise who committed crimes as part of the racketeering conspiracy in order to accomplish the Enterprise’s goals of enhancing its power, financially enriching its members, and keeping its victims - including small business owners and potential competitors – in check by threatening economic and physical harm.
Waste Disposal Enterprise members avoided any official connection to the waste disposal businesses they controlled because they were either officially banned from the waste hauling industry, or unlikely to be granted the necessary licenses required to do business in the waste hauling industry because of their affiliations with organized crime. Accordingly, Enterprise members concealed themselves behind waste disposal businesses that were officially owned and operated by non-Enterprise members (“Controlled Owners”), who were able to obtain the necessary licenses because they had no known affiliations with organized crime. Ultimately, Enterprise members exerted control over these waste disposal businesses by, among other things, dictating which trash pick-up stops that a particular hauling company could use and extorting payments in exchange for protection by individuals associated with organized crime. By asserting and enforcing purported “property rights” over the trash pick-up routes, the Enterprise members excluded any competitor that might offer lower prices or better service, in effect imposing a criminal tax on businesses and communities. Separately, some of the Controlled Owners were also committing crimes, including stealing property of competing waste disposal businesses and defrauding businesses of their customers.
The operation of the Waste Disposal Enterprise was coordinated by and among factions of the LCN families through the use of “sit-downs” to determine which faction would control a particular waste disposal company and established the financial terms upon which control of that company could be transferred from one faction to another in return for payment.
During the time period alleged in the Indictment, Enterprise members extorted a Controlled Owner, who, unknown to them, was a cooperating witness (the “CW”). The CW incorporated a waste removal company (the “CW Company”) that ultimately was controlled by a number of different factions of the Waste Disposal Enterprise.
At various times, the CW Company was under the control of CARMINE FRANCO, a Genovese Crime Family associate who was banned by New Jersey authorities from maintaining any involvement in the waste hauling business in that state due to prior criminal convictions. A Genovese Crime Family crew based principally in Lodi, New Jersey (“Lodi Crew”), which included Genovese Family soldiers ANTHONY PUCCIARELLO and PETER LECONTE, as well as Genovese Family associates ANTHONY CARDINALLE, HOWARD ROSS, and FRANK OLIVER, subsequently wrested control of the CW’s waste company from FRANCO, and further extorted the CW for weekly payments for “protection” from other LCN factions. In addition, at various times, a different faction of the Genovese Crime Family – led by Genovese soldiers DOMINICK “PEPE” PIETRANICO and JOSEPH SARCINELLA – and a Gambino Crime Family crew – including Gambino Family soldier ANTHONY BAZZINI and associate SCOTT FAPPIANO – controlled the CW’s waste hauling company.
In addition to the 12 defendants charged as members of the Waste Disposal Enterprise, 17 of the defendants are charged with carrying out various illegal activities in relation to the waste hauling industry. These illegal activities include: extortion, mail and wire fraud conspiracy, and interstate transportation of stolen property.
Charts identifying each defendant, the charges, and the maximum penalties, as well as the defendants’ ages and residency information are attached to this release. U.S. District Judges P. Kevin Castel, Colleen McMahon, and Laura Taylor Swain have been assigned to this case.
U.S. Attorney Preet Bharara thanked the FBI and the Westchester County Police Department for their work in the four-year investigation, which he noted is ongoing. Mr. Bharara also thanked the New York City Business Integrity Commission, the New York State Police, and the Town of Orangetown Police Department for providing invaluable assistance with the investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Arianna R. Berg, Natalie Lamarque and Brian R. Blais are in charge of the prosecution. Assistant U.S. Attorney Martin S. Bell of the Office’s Asset Forfeiture Unit is responsible for the forfeiture of assets.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Carmine Franco, et al. Indictment
U.S. v. Charles Giustra, et al. Indictment
U.S. v. Kenneth Lopez Indictment
Tuesday 15 January 2013
Youngstown Man Charged with Bank RobberyRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a one-count information was filed charging Richard D. Gooding, age 38, of Youngstown, Ohio, with bank robbery.
On November 13, 2012, Gooding entered the Bangor Savings Bank, 1048 Brighton Avenue, Portland, Maine, and robbed a teller of approximately $1,543. He was subsequently arrested in Youngstown, Ohio.
If convicted, a 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 violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by the Portland, Maine Police Department, the Federal Bureau of Investigation and the Mahoning Valley Violent Crimes Task Force. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
An information 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.
Woman Sentenced in Bank RobberyRead the Press Release
US Attorney Brendan V. Johnson announced that a Sioux City woman charged with bank robbery was sentenced on January 14, 2013, by US District Judge Karen E. Schreier. Michelle Marie Bock, age 39, was sentenced to 36 months in custody to be followed by 2 years of supervised release. She was also ordered to make restitution to the bank in the amount of $808.
Bock robbed the First Premier Bank, located at 3401 South Kiwanis Avenue, in Sioux Falls on July 17, 2012. At that time she presented a note reading “This is a robbery” to a teller, and was given money. Bock had taped fake dynamite to her torso and wore the “bomb” into the bank.
Bock concocted a story to law enforcement that she had been kidnapped in Sioux City and forced to rob the bank. She said two men had taped the bomb to her torso and said they told her they would blow it up if she failed to do as instructed.
This case was investigated by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant US Attorney John E. Haak prosecuted the case.
Bock was immediately turned over to the custody of the US Marshal.
Wanblee Woman Sentenced for Causing Death of Her Infant SonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee woman convicted of Felony Child Abuse & Neglect was sentenced on January 3, 2014, by Chief U.S. District Judge Jeffrey L. Viken. Kehuanna Poitra, age 31, was sentenced to 120 months' custody and 3 years' supervised release, and ordered to pay $100 to the Victim Assistance Fund.
Between July and August, 2011, at Wanblee, Poitra failed to properly care for her infant son and did not seek necessary medical attention, causing his death. The infant was sent home from Rapid City Regional Hospital in the care of Poitra who was given strict instructions for his care including monitoring or an apnea/Bradycardia machine, medication, and specialized formula. She failed to provide this care for him, resulting in his extreme malnourishment, dehydration, and ultimately pneumonia, which caused his death. Poitra pled guilty on October 3, 2013.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Poitra was immediately turned over to the custody of the U.S. Marshal.
Vermont Man Sentenced to Three Years in Federal Prison for Illegal Firearms DealingRead the Press Release
January 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that KYLE FARACE, 26, of Brattleboro, Vt., was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment for dealing firearms without a license. FARACE also was ordered to serve three years of supervised release and perform 150 hours of community service after his release from prison.
According to court documents and statements made in court, on at least three separate occasions between April and June 2011, FARACE, who is not a licensed firearms dealer, transferred five firearms to someone he believed to be a convicted felon and who resided in a different state.
It is a violation of federal law for a person to engage in the business of dealing in firearms without a license, to sell firearms to a convicted felon, or to transfer a firearm to a person residing in a different state.
On January 6, 2012, FARACE pleaded guilty to one count of dealing in firearms without a license. When he pleaded guilty, FARACE also admitted that he illegally possessed and distributed marijuana in April and May 2011.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Hartford Police Department, the East Hartford Police Department and the Connecticut Department of Revenue Services. The ATF and DEA in Burlington, Vt., the Addison County (Vt.) Sheriff’s Department, and the United States Attorney’s Office for the District of Vermont assisted the investigation of this matter.
The case was prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Ndidi Moses.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Guatemalan Nationals Sentenced to A Combined 67 Years in Prison for Roles in Hostage TakingRead the Press Release
PHOENIX, Ariz. – On Jan. 14, 2013, Domingo Agustin-Simon, 31, and Leonardo Rabanales-Casia, 30, both of Guatemala, were sentenced by U.S. District Judge David G. Campbell for their roles in a Mesa-based hostage taking. Agustin-Simon was sentenced to 35 years in prison for the hostage taking and conspiracy to commit hostage taking. He was sentenced to an additional consecutive term of seven years for brandishing a shotgun in connection with the hostage taking. Rabanales-Casia was sentenced to 25 years in prison for the hostage taking and conspiracy to commit hostage taking. Both men had previously been found guilty of those charges by a federal jury.
U.S. Attorney John S. Leonardo stated that, "These lengthy sentences serve to not only punish and deter such cruel and inhumane activity but also to protect the public from dangerous individuals that prey upon the vulnerabilities of their victims."
“This case illustrates the ruthlessness and brutality of the human smuggling trade,” said Matt Allen, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Arizona. “These smugglers treated the people in the drop house as a mere business commodity, with no qualms about jeopardizing human life in order to extort personal profit. Investigating these cases is a top priority for HSI, and we will continue to work with our law enforcement partners to bring those who would choose to exploit people in this despicable way to justice. ”
Evidence at trial was that defendants were part of an alien smuggling operation responsible for crossing illegal aliens into the United States and harboring them at a drop house in Mesa. On Aug. 10, 2011, an IIMPACT task force comprised of law enforcement from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, Arizona Department of Public Safety and Phoenix Police Department raided the drop house and found more than 40 illegal aliens inside. Testimony at trial revealed that the smugglers threatened the aliens with physical harm and death and told family members that the aliens would be harmed or killed if payments were not made. One hostage was beaten by the smugglers, the women were subject to sexual molestation and the evidence presented showed that one of the women was raped by Agustin-Simon. The smugglers used a shotgun to keep order in the drop house.
The following four co-defendants previously pleaded guilty in connection with their roles at the drop house and were sentenced to prison terms ranging from 24 months to 8 years: Sergio Rivera-Jimenez, 34; Jose Luis Garcia-Ortega, 22; Santos Bautista-Juan, 34; and Walmar Rocael Morales-Tomas, 19.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations. The prosecution was handled by Christine D. Keller and Sean K. Lokey, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-11-01622-PHX-DGC
RELEASE NUMBER: 2013-002_ Agustin-Simon_etalFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Two Chicago Area Men Sentenced on Federal Racketeering Conspiracy ChargesRead the Press Release
St. Louis, MO - Two Chicago area residents have been sentenced within the past week to federal prison for Racketeering Conspiracy charges in United States District Court in St. Louis.
ANTHONY OWENS, a/k/a“Pharaoh,”of Chicago, IL, was sentenced to 102 months in prison today, after previously pleading guilty to being an accessory after-the-fact to murder and tampering with evidence. TREVOR SEYMOUR, a/k/a “Cyclopse,” of Chicago, IL, was sentenced last week to 120 months in prison for conspiring with other members of the Wheels of Soul to commit a murder in 2009, and kidnapping a member of another motorcycle gang in January 2010. They appeared for sentencing before Chief United States District Judge Catherine D. Perry.
This case was investigated by the Federal Bureau of Investigation in St. Louis, the Bureau of Alcohol, Tobacco, Firearms, and Explosives in Chicago and the Chicago Police Department.
Trinity County Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 57-year-old Trinity, Texas man has been sentenced to federal prison for failing to register as a sex offender in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Clarence Robert Ward pleaded guilty on June 12, 2012, to failure to register as a sex offender and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, Ward was convicted on indecency with a minor in Polk County, Iowa in 1998. As a result of this conviction, Ward is required to register under the Sex Offender Registration and Notification Act. In March 2010, Ward moved to Huntsville, Texas and then in 2011, he moved from Huntsville to Trinity, Texas. Ward failed to update his sex offender registration with the State of Iowa or to initiate registration with the State of Texas.
This case was investigated by ICE/HSI and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Tarentum Drug Dealer Pleads Guilty to Gun and Drug ChargesRead the Press Release
PITTSBURGH -A resident of Tarentum, Pa., has pleaded guilty in federal court to charges of federal drug and firearms offenses, United States Attorney David J. Hickton announced today.
Curtis Veasley, 33, pleaded guilty on Jan. 14, 2013, to four counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that the defendant stored and sold both crack cocaine and heroin from his Tarentum residence. When police searched the home they found drugs, guns, ammunition, a bullet-proof vest and $7,540 in cash. As a felon, the defendant is precluded from possessing a firearm or ammunition under federal law.
Judge McVerry scheduled sentencing for May 17, 2013, at 9:30 a.m. The law provides for a total sentence of up to 70 years in prison, a fine of $3,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history of the defendant.
The court remanded Veasley back to jail to await sentencing.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tarentum Police Department conducted the investigation that led to the prosecution of Curtis Veasley.
Tammy Lynn Lapie Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 15, 2013, before U.S. District Judge Sam E. Haddon, TAMMY LYNN LAPIE, a 47-year-old resident of Great Falls, pled guilty to possession with the intent to distribute methamphetamine. Sentencing has been set for April 22, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, law enforcement originally became alerted to a methamphetamine distribution ring from Washington state to Great Falls.
In June 2012, law enforcement learned of an individual, X.X., who made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls.
On June 29, 2012, a CI (confidential informant) informed the drug task force that X.X. was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from X.X. near the University of Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from X.X. over the next few days.
Law enforcement located X.X.'s car in early July 2012, and the task force tracked this car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine. X.X., the driver of the car, told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as Robert Boucher, since February or March 2012. In total, X.X. believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from Boucher.
X.X. told law enforcement that Boucher provided him with a GPS system in order for X.X. to find Boucher's house in Spokane. Once X.X. obtained the methamphetamine from Boucher, X.X. would sell the methamphetamine by the gram for $100 around Great Falls. Boucher sold the methamphetamine to X.X. for $1,400 an ounce.
X.X. and Boucher also dealt methamphetamine with LAPIE and another individual, Z.Z., in Great Falls. The methamphetamine dealing continued into the fall of 2012. During the end of October 2012, detectives interviewed additional witnesses. One witness stated that LAPIE was heavily involved in using and dealing methamphetamine. LAPIE obtained her methamphetamine from Boucher, and Boucher delivered methamphetamine to LAPIE approximately once a week.
The witness further provided that Boucher stored the methamphetamine in the hood and trunk of his car. He then divided the methamphetamine between the sellers who obtained the methamphetamine on credit. Boucher stayed in town at LAPIE's house until the money was collected. LAPIE would then repackage the methamphetamine into eight-ball baggies and distribute it to other sellers.
On November 13, 2012, a witness contacted the drug task force and stated Z.Z. was selling methamphetamine. Law enforcement then arranged controlled drug purchases from Z.Z. in Great Falls. The following evening, detectives saw Z.Z. drive to LAPIE's house, where he stayed for a half hour before again returning to his motel room. A little while later, Z.Z. and a woman drove to a gas station. Z.Z. conducted a drug deal in the parking lot. Officers conducted a traffic stop on Z.Z.'s car shortly thereafter.
After ordering Z.Z. out of the car, officers found a glass container of methamphetamine in Z.Z.'s pocket. He spoke with law enforcement and said he had been dealing methamphetamine with LAPIE. Z.Z. regularly purchased two eight balls of methamphetamine per week from LAPIE. Z.Z. also identified Boucher as one of LAPIE's suppliers and said he delivered methamphetamine to LAPIE once per week.
LAPIE faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release.
The investigation was conducted by the Russell County Drug Task Force.
Sally
St. Francis Woman Charged with Making False Statement to Federal Agency and Concealing Person from ArrestRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis woman has been indicted by a federal grand jury for Making False Statement to a Federal Agency and Concealing Person From Arrest. Candice Waln, age 34, was indicted by a federal grand jury on December 11, 2012. She appeared before United States Magistrate Judge Mark A. Moreno on January 14, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both.
The charges are merely accusations, and Waln is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal's Service. Assistant United States Attorney Tim Maher is prosecuting the case.
Waln was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Pleads Guilty to Drug OffenseRead the Press Release
US Attorney Brendan V. Johnson announced that Darrel Ray Hollingsworth, age 46, of Sioux Falls appeared before U.S. District Judge Karen E. Schreier on January 14, 2013, and pled guilty to an indictment that charged him with conspiracy to distribute 50 grams or more of a mixture containing methamphetamine. The offense carries a mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison, and/or a $5 million fine.
Between August 2011 and January 2012, Hollingsworth and a co-conspirator traveled to Arizona on at least three occasions to obtain methamphetamine to sell in South Dakota. Hollingsworth provided funds to finance the trips and to purchase the drugs. Others distributed the methamphetamine, collected payments, and returned the payments to Hollingsworth.
The investigation was conducted by the U.S. Drug Enforcement Administration, and the case is being prosecuted by Assistant US Attorney John E. Haak.
A presentence investigation was ordered, and a sentencing date was set for April 8, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.
San Fernando Valley Doctor Pleads Guilty in Multi-Million Dollar Medicare Fraud Case Involving Treatments Never PerformedRead the Press Release
LOS ANGELES – A medical doctor who owns a clinic in the Winnetka district of the San Fernando Valley pleaded guilty today to federal fraud charges for bilking Medicare out of more than $3 million by submitting bills for procedures never performed, sometimes involving patients he never met.
Pezhman Ebrahimzadeh, who uses the name “Pez Abrahams,” 50, of Calabasas, pleaded guilty today to one count of health care fraud before United States District Judge George H. Wu.
Ebrahimzadeh owns the Winnetka Medical Group, a cosmetic health care clinic that operates under the name Health & Beauty Clinic. At his clinic, Ebrahimzadeh provides cosmetic treatments that involve radiofrequency lasers and liposuction. As some of his patients were Medicare beneficiaries, Ebrahimzadeh obtained their beneficiary information, which was used to bill Medicare for procedures he did not perform. Ebrahimzadeh also obtained beneficiary information for patients he never treated, and he used that information to submit other fraudulent bills to Medicare.
In relation to the bogus bills submitted to Medicare, Ebrahimzadeh typically claimed he had performed three expensive procedures: revascularization, ablation of a bone tumor, or the placement of a radiotherapy catheter in a breast. Ebrahimzadeh made these claims, even though he lacked the equipment needed to perform revascularizations or the placement of radiotherapy catheters. On at least one occasion, Ebrahimzadeh admitted in court today, he billed Medicare for performing these procedures, even though the purported patient was dead.
Between September 2008 and April 2012, Ebrahimzadeh submitted $7.5 million in bogus claims, and Medicare paid just over $3 million.
Judge Wu is scheduled to sentence Ebrahimzadeh on May 20. At sentencing, Ebrahimzadeh faces a statutory maximum penalty of 10 years in federal prison. The plea agreement contemplates a sentence of approximately four to five years, but Judge Wu will make the final determination as to the actual sentence that will be imposed in this case. In the plea agreement, Ebrahimzadeh agreed to repay the millions of dollars he stole from Medicare.
The case against Ebrahimzadeh was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the California Department of Justice, Bureau of Medi-Cal Fraud & Elder Abuse.
Release No. 13-009
Rochester Man Charged with Attempting to Extort a Rochester BusinessmanRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that John L. Lyons, of Caledonia, N.Y., was charged by criminal complaint with intending to extort money by threatening to injure the reputation of another. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, between November 30, 2012 to December 20, 2012, the defendant posed as a private investigator in text messages to the president of a local company in Rochester who was involved in a contentious battle over control and operations of the family owned business. Specifically, Lyons, using his text messaging, stated to the victim that he had obtained incriminating information about the victim. The complaint further stated that if the victim paid the defendant $25,000 in cash, he would give the incriminating information to the victim, rather than turn over the information to the entities that hired Lyons to gather the information about victim.
The complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rapid City Woman Sentenced for Assaulting InfantRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City woman convicted of Simple Assault was sentenced on January 3, 2013, by U.S. Magistrate Judge Veronica L. Duffy. Shalaine Bear Runner, age 26, was sentenced to 3 years of probation and ordered to pay $25 to the Victim Assistance Fund.
In June 2012 at Pine Ridge, Bear Runner and another person assaulted a seven-month old infant, causing bruising and bleeding. She pled guilty on October 9, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety . Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Project Safe Neighborhoods Grant Announcement - Violent Gang & Gun Crime Reduction ProgramRead the Press Release
Deadline for grant proposals is March 11, 2013
United States Attorney Stephanie A. Finley announced today that the Department of Justice (DOJ), the Office of Justice Programs (OJP), and the Bureau of Justice Assistance (BJA) is seeking applications for funding of grants under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods. This program furthers the Department of Justice’s mission and violent crime reduction strategy by providing support to state, local and tribal efforts to reduce gun and gang-related violent crime. Contingent on the availability of funds, grant awards totaling $300,000 are possible in the Western District of Louisiana to fund new and current comprehensive gun crime reduction strategies and gang violence reduction strategies. The deadline to apply is March 11, 2013.
The 2013 Competitive Grant Announcement can be found at http://www.bja.gov/Funding/13PSNsol.pdf.
Various types of single or multi-grantee grant applications are welcome including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach, and education;
- Enforcement, adjudication, and supervision programs;
- Prisoner Reentry Programs; or
- Other innovative related projects.
To apply, applicants must first register at www.Grants.gov. Once registered, applicants must submit applications through www.Grants.gov. Complete instructions on how to register and submit an application is at www.Grants.gov. The deadline to apply is March 11, 2013.
Applicants can contact the www.Grants.gov Customer Support Hotline for technical assistance with submitting an application at 800-518-4726 or 606-545-5035 or by e-mail to [email protected]. Applicants may also contact Robert W. Gillespie, Jr., Assistant U. S. Attorney and PSN and Anti-Gang Coordinator for the Western District of Louisiana, at (318) 676-3600 for additional information.
For more information regarding the Project Safe Neighborhoods Program, please visit the Western District of Louisiana U.S. Attorney's Office website at:
http://www.usdoj.gov/usao/law/programs/projectsafe.html as well as www.psn.gov and http://www.ojp.usdoj.gov/BJA/grant/psn.html.Postal Worker Charged with Mail TheftRead the Press Release
BOSTON - A Taunton man was charged today in federal court with stealing mail.
Michael Gilman, 27, was charged with theft of mail. The indictment alleges that Gilman, an employee of the United States Postal Service in Brockton, stole letters while in his official capacity.
If convicted, Gilman faces up to five years in prison to be followed by three years of supervised release and up to a $250,000 fine.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions 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.
Porcupine Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine man has been indicted by a federal grand jury for allegedly assaulting another man at Porcupine on August 17, 2011.
Tony Little Boy, age 22, was indicted by a federal grand jury on December 18, 2012, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Little Boy appeared before United States Magistrate Judge Veronica L. Duffy on January 9, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 10 years in custody and a $250,000 fine on each count. The charges are merely accusations, and Little Boy 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 United States Attorney Wayne Venhuizen is prosecuting the case. Little Boy was released on bond pending trial. A trial date has been set for March 19, 2013.
Podiatrist Sentenced to 55 Months in Prison in Connection with $1.6 Million Medical Billing Fraud SchemeRead the Press Release
FLINT, Michigan – A Fenton podiatrist was sentenced in Bay City yesterday to 55 months in prison for his participation in a $1.6 million fraudulent medical billing scheme.
The sentencing was announced by United States Attorney Barbara L. McQuade, Special Agent in Charge Robert D. Foley, III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
Richard Alan Behnan, D.P.M., 56, was sentenced by U.S. District Judge Thomas L. Ludington in Bay City, Michigan. In addition to his prison term, Behnan was ordered to pay $1,427,133.12 million in restitution to Medicare, and $196,956.54 to Blue Cross Blue Shield of Michigan, jointly and severally with his podiatric assistant and co-defendant, Kelly Morel.
Behnan pleaded guilty on November 21, 2011, to one count of conspiracy to commit health care fraud. According to the plea documents, beginning approximately in 2000 and continuing to at least December 2010, Behnan, a traveling podiatrist who operated across Michigan, including Bay City, Flint, Detroit and Lansing, provided services to patients at various senior centers and assisted living facilities. Behnan and Morel submitted claims to Medicare and Blue Cross Blue Shield of Michigan for nail avulsion procedures, when in fact they had merely trimmed and polished the patients’ toenails - a form of routine foot care not covered by Medicare. In some instances, Behnan submitted claims for nail avulsion procedures he claimed to have performed at a time when he was outside of the United States. In total, Behnan billed and received a total of $1,624,089.66 in fraudulent claims.Kelly Morel, who had pleaded guilty May 26, 2011, was sentenced yesterday to 18 months in prison.
U.S. Attorney McQuade stated, “"We hope that cases like this one will alert doctors and other health care providers that defrauding taxpayers through Medicare fraud is a serious crime that will land them in prison."
FBI Special Agent in Charge Foley stated, “"Those who commit health care fraud by illegally billing Medicare for services never performed are stealing money from all taxpayers. The FBI is vigorously committed to stopping these criminal acts."
The case was investigated by the FBI and HHS-OIG. and prosecuted by the U.S. Attorney’s Office for the Eastern District of Michigan.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pierre Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre man has been indicted by a federal grand jury for Failure to Register as a Sex Offender. Adrian Wells, age 36, was indicted by a federal grand jury on December 11, 2012. He appeared before United States Magistrate Judge Mark A. Moreno on January 14, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both.
The charge is merely an accusation, and Wells is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal's Service. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case.
Wells was remanded to the custody of the United States Marshal pending trial. A trial date has not been set.
Peruvian Woman and Bahamian Woman Plead Guilty in Florida to Alien SmugglingRead the Press Release
WASHINGTON – A Peruvian national and a Bahamian national pleaded guilty to smuggling undocumented migrants to the United States for private financial gain, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and U.S. Immigration and Customs Enforcement (ICE) Director John Morton announced today.
Jessie Katherine Gonzales Urquizo, 37, a Peruvian national, and Irene Mildred Janette Burrows, 66, a Bahamian national, pleaded guilty on Jan. 11, 2013, before U.S. District Court Judge Kenneth A. Marra in the Southern District of Florida. Urquizo pleaded guilty to three counts and Burrows pleaded guilty to two counts, respectively, of bringing and attempting to bring aliens to the United States for commercial advantage and private financial gain.
According to plea documents, Urquizo and her mother-in-law, Burrows, facilitated the illegal smuggling of Brazilian nationals into the United States by working for a known alien smuggler in Brazil. Urquizo and Burrows provided lodging and transportation to undocumented migrants waiting on a boat to take them to the United States and charged between approximately $100 and $125 per day. According to court documents, Urquizo and Burrows received instructions from Brazil-based smugglers on when and where to deliver certain undocumented migrants to waiting boats for passage to the United States.
Urquizo and Burrows admitted that they brought undocumented migrants, all of whom are Brazilian nationals, to the United States for financial gain. Urquizo admitted to taking payment for lodging the undocumented migrants at various hotels and stash houses, including a nursing home operated by Burrows, her co-defendant and mother-in-law. Urquizo further admitted that she arranged for food to be taken to the undocumented migrants, transported the undocumented migrants to a waiting boat upon instructions from a known human smuggler in Brazil and demanded payment for her services. For her part, Burrows admitted to working with Urquizo, taking payment for lodging undocumented migrants at her nursing home and providing transportation.
At sentencing, scheduled for March 22, 2013, Urquizo faces a maximum penalty of 15 years in prison and a $250,000 fine, and Burrows faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Alexandra Hui of the Southern District of Florida.Pennsylvania Man Pleads Guilty to Coercion and Enticement of a Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – A Pennsylvania man pleaded guilty today for coercing and enticing a minor and possessing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Western District of Pennsylvania David J. Hickton and Special Agent in Charge John Kelleghan of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Philadelphia.
Jeffrey W. Herschell, 54, of Washington, Pa., pleaded guilty before U.S. District Judge David Stewart Cercone in the Western District of Pennsylvania. According to a statement of facts entered into the record by the government and agreed to by the defendant, Herschell sent money to the Philippines in February 2010 for a live, online sex show that included a 12-year-old minor female engaging in sexual activity. Herschell also admitted to possessing child pornography videos at his Pennsylvania residence.
At sentencing, Herschell faces a minimum sentence of 10 years in prison and a maximum sentence of life in prison on the coercion and enticement charge, and a maximum of 10 years in prison on the child pornography possession charge. Herschell also faces a term of supervised release of five years to life following his prison sentence, and will be required to register as a sex offender in any jurisdiction in which he lives, works or attends school. Sentencing has been scheduled for May 28, 2013. Judge Cercone deferred acceptance of the plea agreement until Herschell’s sentencing hearing.
This case was investigated by ICE-HSI Pittsburgh and the ICE-HSI Attache’s Office in the Philippines with significant assistance from the National Bureau of Investigation (Philippines) and the Philippine National Police. This case is being prosecuted by Assistant U.S. Attorney Jessica Lieber Smolar of the Western District of Pennsylvania and Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pennsylvania Man Pleads Guilty to Coercion and Enticement of A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – A Pennsylvania man pleaded guilty today for coercing and enticing a minor and possessing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Western District of Pennsylvania David J. Hickton, and Special Agent in Charge John Kelleghan of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Philadelphia.
Jeffrey W. Herschell, 54, of Washington, Pa., pleaded guilty before U.S. District Judge David Stewart Cercone in the Western District of Pennsylvania. According to a statement of facts entered into the record by the government and agreed to by the defendant, Herschell sent money to the Philippines in February 2010 for a live, online sex show that included a 12-year-old minor female engaging in sexual activity. Herschell also admitted to possessing child pornography videos at his Pennsylvania residence.
At sentencing, Herschell faces a minimum sentence of 10 years in prison and a maximum sentence of life in prison on the coercion and enticement charge, and a maximum of 10 years in prison on the child pornography possession charge. Herschell also faces a term of supervised release of five years to life following his prison sentence, and will be required to register as a sex offender in any jurisdiction in which he lives, works or attends school. Sentencing has been scheduled for May 28, 2013.
This case was investigated by ICE-HSI Pittsburgh and the ICE-HSI Attache’s Office in the Philippines with significant assistance from the National Bureau of Investigation (Philippines) and the Philippine National Police. This case is being prosecuted by Assistant U.S. Attorney Jessica Lieber Smolar of the Western District of Pennsylvania and Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oregon-Based Research Consultant John Kinnucan Sentenced in Manhattan Federal Court to 51 Months in Prison for Insider Trading SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN KINNUCAN, the President of Broadband Research, LLC, an investment research firm located in Portland, Oregon, was sentenced today to 51 months in prison for his participation in an insider trading scheme. KINNUCAN obtained material, non-public information (“Inside Information”) about publicly traded companies and sold that information to his clients, including hedge funds and money managers (the “BBR Clients”). KINNUCAN pled guilty in July 2012 to one count of conspiracy to commit securities fraud and two counts of securities fraud before U.S. District Judge Deborah A. Batts, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentence of John Kinnucan is a fitting conclusion to a criminal odyssey that began with the buying and selling of inside information and evolved into a vile and very public campaign to threaten public servants and obstruct the federal investigation into Kinnucan’s conduct. Mr. Kinnucan will now pay for both crimes with his liberty.”
According to the Indictment, other court documents filed in the case, as well as statements made during the guilty plea and sentencing proceedings:
From 2008 through 2010, KINNUCAN obtained Inside Information about publicly traded companies, including quarterly revenue numbers, and sold that information to BBR Clients. The Inside Information came from co-conspirators who were employed at publicly traded companies (the “Public Company Sources”), such as F5 Networks, Inc. (“F5”), Sandisk Corporation and Flextronics International, Ltd.
In order to develop and maintain his network of Public Company Sources, KINNUCAN befriended public company employees and offered to provide some of them with consulting fees and other non-monetary consideration. Specifically, KINNUCAN paid one of his sources approximately $27,500 for Inside Information, and invested $25,000 in the business of another source.
After he obtained Inside Information from Public Company Sources, KINNUCAN provided it to BBR Clients with the understanding that they would use the information to execute securities transactions. For example, in June 2010 and early July 2010, KINNUCAN repeatedly sought information about F5’s quarterly financial results for the quarter ending on June 30, 2010 from an F5 employee. In a telephone call on the morning of July 2, 2010, KINNUCAN told the F5 employee that the guidance F5 previously provided to the investment community for the quarter that ended June 30, 2012 was $220 million. The F5 employee then informed KINNUCAN that the unadjusted revenue number was actually “$232 million,” confirming that F5 would beat Wall Street’s consensus estimates. Within minutes of the July 2, 2010 conversation with the F5 employee, KINNUCAN called numerous BBR Clients to provide them with the information. After receiving the F5 Inside Information from KINNUCAN, at least two BBR Clients executed securities transactions in F5 based, in whole or in part, on KINNUCAN’s Inside Information, earning profits and avoiding losses of more than $1.5 million.
In order to attract and retain BBR Clients, and in an effort to hide the true identity of his Public Company Sources, KINNUCAN lied to existing and prospective BBR Clients about the sources of his Inside Information, including by falsely stating that none of his sources was employed at public companies, and that he did not pay his sources.
In an effort to obstruct the ongoing federal criminal investigation, from December 2011 through February 2012, KINNUCAN made nearly 25 threatening telephone calls to prosecutors and agents responsible for the investigation of his unlawful activities. In these telephone calls, KINNUCAN made repeated references to genocide, sexual and other forms of violence, and threatened physical harm to one of the prosecutors handling this matter. He also made multiple telephone calls to one cooperating witness, and attempted to contact another in an effort to intimidate and harass them.
In addition to his prison term, KINNUCAN, 55, of Portland, Oregon, was sentenced to three years of supervised release and ordered to pay a $300 special assessment fee. As part of his plea agreement, KINNUNCAN will forfeit $164,000 to the United States.
During the sentencing proceeding, Judge Batts said, “[Kinnucan] lashed out in anger and made a spectacle of himself [by leaving] obscene, hateful, despicable and repetitive” voicemails for prosecutors, and that “…threatening personally government authorities who are doing their jobs by investigating insider trading cannot be tolerated.”
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He thanked the U.S. Securities and Exchange Commission for its assistance in this matter.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Katherine R. Goldstein, David B. Massey and Christopher L. LaVigne are in charge of the prosecution.
North Carolina Man Sentenced to Nearly 4 Years in Federal Prison for Illegal Firearm PossessionRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a North Carolina man was sentenced to three years and one month in federal prison for illegal firearm possession. Jason Alexander Thompson, 28, of Charlotte, N.C., previously pleaded guilty in October 2012 to being a felon in possession of a firearm. On December 23, 2010, members of the Huntington Police Department were dispatched to the 1200 block of 28th Street in Huntington for a call reporting a prowler. When officers arrived at the scene, they observed the defendant in the area. Thompson admitted that at the time, he removed a .25 caliber pistol from his jacket pocket and threw it to the ground as officers approached.Thompson was prohibited from possessing firearms because of his August 2003 felony conviction in the United States District Court for the Southern District of West Virginia for possession with intent to distribute crack cocaine.
The Court noted that the defendant was on supervised release at time of the offense and therefore sentenced the defendant to an additional 10 months’ imprisonment for total of 47 months in prison.
This case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
Nigerian Man Pleads Guilty to Wire Fraud in Craigslist ScamRead the Press Release
Adebowale Ayodeji Owoaje, 31, of Nigeria, pleaded guilty today to wire fraud in a scheme to defraud individuals who were selling items and applying for jobs on Craigslist.com. Using various aliases while he was located overseas, Owoaje used e-mail to reach an agreement with the individuals on the sale price of items or terms of employment, including funds for a purported bonus or training materials.
From overseas, Owoaje sent counterfeit cashier’s checks to his co-conspirators here in the United States. Based on instructions from Owoaje, a co-conspirator typed amounts on counterfeit cashier’s checks that exceeded the sales price or bonus agreed to by Owaoje and the individuals. The co-conspirator then mailed the counterfeit cashier’s checks to the individuals.Owoaje informed individuals that a check in the wrong amount was sent to them by “mistake.” Owaoje then asked individuals to deposit that check in their bank account and to keep the amount Owoaje owed the individual plus an additional sum for their trouble. Owoaje instructed individuals to wire the balance of the money via Western Union to a co-conspirator, whom Owoaje falsely represented to individuals as his secretary or shipping agent. Only after wiring this money did individuals learn that the cashier’s checks they received were counterfeit.
U.S. District Court Judge Mary A. McLaughlin scheduled a sentencing hearing for April 15, 2013. Owoaje faces a maximum possible sentence of 80 years in prison, a three year period of supervised release, a fine of up to $1 million, and a $400 special assessment.The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New York Woman Indicted for Lying to Federal Agents Investigating Newtown Fundraising FraudRead the Press Release
January 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Bridgeport returned an indictment today charging NOUEL ALBA, 37, of Bronx, N.Y., with making false statements to FBI agents in connection with their investigation into a fraudulent fundraising scheme related to the Newtown school shooting tragedy.
The indictment alleges that ALBA used her Facebook account, telephone calls and text messages to falsely claim to be an aunt of a shooting victim and supply fictitious details about the aftermath of the tragedy in order to solicit donations on the pretext that she was collecting on behalf of the family for the child’s “funeral fund.” At ALBA’s instruction, donor-victims sent money to a PayPal account controlled and accessed by ALBA. The indictment further alleges that, when contacted by FBI Special Agents investigating fundraising and charity scams related to the Newtown school shooting, ALBA falsely stated that she did not post information related to Newtown on her Facebook account, have contact with anyone about such postings, or recently access her PayPal account.
The indictment charges ALBA with one count of making false statements to federal agents, an offense that carries a maximum term of imprisonment of five years and a fine of up to $250,000.
ALBA was arrested on a criminal complaint on December 27, 2012, and she has been released on a $50,000 bond since the date of her arrest.
“Investigators continue to monitor the Internet to uncover other fundraising scams arising from this tragedy, and any individuals who attempt to profit through these schemes will be prosecuted,” stated U.S. Attorney Fein.
U.S. Attorney Fein noted that potential federal charges associated with fraudulent fundraising and charity schemes include wire fraud (18 USC 1343, 20-year maximum prison term), access device fraud (18 USC 1029, 10-year maximum prison term) and interstate transportation of stolen property (18 USC 2314, 10-year maximum prison term).
Individuals with knowledge of Newtown-related fundraising schemes are encouraged to contact the FBI in Connecticut at 203-777-6311.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jonathan Francis.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nacogdoches Man Sentenced for Drug Trafficking in East TexasRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A Nacogdoches man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today. The sentencing hearing was held before U.S. District Judge Ron Clark.
Tremaine Smith, 27, of Nacogdoches, Texas, pleaded guilty on Sep. 5, 2012, to possession with intent to distribute crack cocaine and was sentenced to 63 months in federal prison today.
According to information presented in court, from 2008 to June 20, 2012, Donald Dixon, a.k.a. “Black”, Cedrick Fowler, a.k.a. “C” and “C-Murder”, Kerry Wayne Griffin, a.k.a. “Big Boy”, Omar Paunetto, Jose Angel Bustillos, Michael John Pereira, Rodney Stevenson, a.k.a. “Arod”, Darius Thorn, a.k.a. “Bs” and “Beez”, Tremaine Smith and Anthony Fowler conspired to traffic cocaine and crack cocaine throughout East Texas.
Smith's role in the conspiracy was to acquire powder cocaine from C. Fowler and then convert it into a "crack" cocaine base. Smith would then redistribute the crack cocaine to others in East Texas.
On June 20, 2012, a federal grand jury returned a 10-count indictment charging 10 defendants, including Smith, with drug trafficking violations.
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Nacogdoches Police Department, and the Nacogdoches County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Baylor Wortham.
Mortgage Fraud Co-Schemers Sentenced in Case that Crippled Pierce Commercial BankRead the Press Release
Three Pierce County women who played important roles in a mortgage fraud scheme that crippled now defunct Pierce Commercial Bank were sentenced yesterday in U.S. District Court in Tacoma, announced U.S. Attorney Jenny A. Durkan. All three of the women worked for years with scheme leader Shawn Portmann, whose fraudulent loans resulted in losses of more than $10 million. Portmann will be sentenced later this month. U.S. District Judge Benjamin H. Settle will determine restitution later this year.
Loan Underwriter JEANETTE R. SALSI, 55, of Bonney Lake, Washington was sentenced to seven months in prison, four months of home confinement and three years of supervised release for conspiracy. In 2004, SALSI followed Portmann from a different mortgage lender to PC Bank Home Loans (a subsidiary of Pierce Commercial Bank.) Portmann paid SALSI 60 percent more than she made at her prior employer and she became the primary underwriter of loans originated by Portmann. SALSI approved fraudulently generated loan applications despite the fact that they were filled with fraudulent documents. SALSI knew the files contained false statements and phony documents regarding the applicant’s employment, debts, current residence and plans to reside in the home. SALSI’s sign-off meant the loans were approved and sold to other financial institutions and the FHA. After Portmann was fired at PC Bank Home Loans, SALSI followed him to two other mortgage companies.
Personal Assistant ALICE LORRAINE BARNEY, 54, of Graham, Washington was sentenced to two months in prison, four months of electronic home confinement, 100 hours of community service and three years of supervised release. BARNEY was Portmann’s long-time assistant who created and inserted some of the false documents into loan files. BARNEY participated in submitting at least 60 fraudulent loan files. After Portmann was fired from PC Home Loans, BARNEY followed him to his three next employers.
Pierce Commercial Vice President and Residential Lending Manager SONJA LIGHTFOOT, 53, of Tacoma, Washington was sentenced to one month in prison, four months of home confinement, 60 hours of community service and three years of supervised release for her role in the conspiracy. LIGHTFOOT joined the bank in 2002, before Portmann began his scheme. Between 2004 and 2009 it was LIGHTFOOT’s job to lock the loans and sell them on the secondary market to other larger banks. LIGHTFOOT knew that some of the loans contained false statements from borrowers but sold them anyway. When the fraud was discovered the loans reverted back to Pierce Commercial Bank. The risk that additional loans would revert back to the bank ultimately forced the closure of the bank.
“Mortgage fraud can turn the American Dream of homeownership into a nightmare for our communities. Law enforcement will not sit idly by when greed causes professionals to abandon their integrity and become fraudsters,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest.
From 2004 to 2008, Shawn Portmann closed almost $1 billion in loans and he earned over $1.7 million per year. A review of a sample of conventional and FHA loans revealed that Portmann and his staff closed over 300 loans with false and fraudulent information. More than half of these loans have defaulted or otherwise caused loss to Pierce Commercial Bank, secondary investors, and/or the FHA, resulting in an estimated loss of $10 million.
Shawn Portmann is scheduled for sentencing January 28, 2013. At that time Judge Benjamin H. Settle will set a restitution amount, a share of which will be owed by all the defendants in the conspiracy.
The case was investigated by the FBI, the HUD Office of Inspector General (HUD-OIG), Internal Revenue Service Office of Criminal Investigation (IRS-CI) and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Brian Werner and Arlen Storm.
Monongalia County Resident Sentenced on Drug and Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - A 27-year old Monongalia County, West Virginia, resident was sentenced on January 11, 2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that: AARON FLEMING was sentenced to 51 months imprisonment to be followed by three years of supervised release. FLEMING entered pleas of guilty on October 4, 2012, to one count of Possession with Intent to Distribute Crack Cocaine and Possession of a Firearm by a Convicted Felon, with both offenses occurring on April 30, 2012, in Monongalia County. FLEMING was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by the West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Westover Police Department.
Missouri Man Sentenced for Firearm OffenseRead the Press Release
Lavon C. Lashley, 36, from St. Louis, MO, was sentenced on January 15, 2013, in District Court in East St. Louis, IL, on one count of Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Lashley was sentenced to 87 months in prison, three years of supervised release, fined $375 and ordered to pay $100 special assessment. Lashley, who previously pled guilty, admitted that a firearm recovered on him during a pat down search stemming from an incident on a Metro Link passenger train leading to his arrest, belonged to him. He forfeited the firearm. Lashley, admitted that he had possessed a gun, knowing that he was a convicted felon and that it was illegal for him to have a gun.
Prior to June 5, 2012, Lashley had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
The investigation was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Special Assistant United States Attorney Matthew H. Brooks.
Meriden Man Sentenced to Federal Prison for Selling Stolen FirearmsRead the Press Release
January 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that COREY WILLIAMS, JR., also known as “Little Corey,” 24, of Meriden, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 20 months of imprisonment, followed by three years of supervised release, for selling stolen firearms.
According to court documents and statements made in court, WILLIAMS told his father, Khalid Aziz, that he had stolen multiple firearms from a Meriden gun store and was having trouble selling some of the “big guns.” Aziz put WILLIAMS in touch with Airess Johnson, who knew someone interested in purchasing firearms. The potential purchaser was an individual cooperating with law enforcement, and that cooperator negotiated a purchase price for three firearms with Williams.
At approximately 8:30 p.m. on February 2, 2012, WILLIAMS, Aziz, and Johnson drove to the parking lot of a New Haven restaurant. After WILLIAMS and Aziz exited the vehicle and waited in front of a nearby store, the cooperator purchased two 12 gauge shotguns and a .308 caliber semi-automatic rifle from Johnson in exchange for $1,200. After the transaction, WILLIAMS, Aziz, and Johnson departed together. WILLIAMS then paid Aziz approximately $50 for his role in facilitating the sale of the three firearms.
Law enforcement officers later recovered the three firearms from the cooperator’s vehicle. All three had been reported stolen from a federal firearms licensee in Meriden on November 5, 2011.
The owner and employees of the Meriden gun dealer subsequently identified WILLIAMS as someone who had been in the store prior to the theft of nine firearms from the store. On May 25, 2012, at WILLIAMS’s residence, law enforcement officers recovered a gun box for one of the six additional stolen firearms, as well as two boxes of ammunition, a ballistic vest carrier, and two rifle magazines.
The six additional firearms that were stolen from the Meriden gun dealer have not been recovered.
On November 2, 2012, WILLIAMS, pleaded guilty to one count of sale of stolen firearms. He had no prior criminal history.
On October 22, 2012, Aziz pleaded guilty to the same charge. On January 10, 2013, Aziz, whose criminal history included at least 19 felony convictions, was sentenced to 10 years of imprisonment.
Johnson, 35, of New Haven, pleaded guilty on July 3, 2012, to one count of possession of firearms by a previously convicted felon. On January 3, 2013, she was sentenced to 20 months of imprisonment.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance provided by the New Haven Police Department and the Meriden Police Department. The case was prosecuted by Assistant United States Attorney Marc H. Silverman.
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[email protected]McKees Rocks Woman Pleads Guilty to Conspiring to Distribute Prescription DrugsRead the Press Release
PITTSBURGH - A resident of McKees Rocks pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Carol Combs, 54, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Combs conspired to distribute oxycodone and oxymorphone between Aug. 24, 2010 and Jan. 20, 2012.
Judge Cercone scheduled sentencing for May 28, 2013, at 10 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Combs.
Mason County Man Gets Federal Prison Time for Illegally Dumping Raw SewageRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Mason County man was sentenced to a year and a half in federal prison for dumping a pollutant into waters of the United States without a permit. Frank Zuspan, 61, of Mason County, W.Va., previously pleaded guilty in September 2012. Zuspan admitted that in or about December 2010, he took a 2400-gallon sewage hauling truck to property in Mason County, W.Va. and illegally dumped sewage onto the property. Zuspan further admitted that the sewage was dumped into a lake and stream watershed in Mason County that connected to the Ohio River. The defendant also admitted that he discharged untreated sewage onto the Mason County property on multiple occasions between November 2010 and February 2011.
“You can’t pour raw sewage into your neighbors’ water supply,” said U.S. Attorney Goodwin. “It’s dangerous and it’s illegal, for obvious reasons. People should know better.”
“Today’s sentencing proves that anyone who damages the environment and puts the public at risk will be vigorously prosecuted,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in West Virginia.
The Environmental Protection Agency conducted the investigation. Assistant United States Attorney Erik S. Goes and Special Assistant United States Attorney Perry McDaniel handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
Manhattan U.S. Attorney Announces Arrest of Hong Kong Man for Selling and Smuggling Stolen U.S. Military Equipment into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and Kenneth Siegler, Resident Agent-in-Charge of the New York Office of the Defense Criminal Investigative Service (“DCIS”), today announced the arrest of KWOK KUEN LEUNG, a resident of Hong Kong, for selling equipment that had been stolen from the United States military and for smuggling that equipment and other items into the United States. LEUNG was arrested last night at the San Francisco International Airport. He was presented earlier today in federal court in the Northern District of California and ordered detained. The case has been assigned to Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York.
Manhattan U.S. Attorney Preet Bharara said: “Today’s indictment reveals an alleged attempt by Kwok Kuen Leung to operate under the radar to import stolen equipment into the United States that could potentially be used as weapons. Our office remains committed to ensuring that devices intended for the military and other law enforcement authorities do not get into the wrong hands.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Kwok Kuen Leung allegedly made false statements to import and sell stolen military grade equipment. This technology is so sensitive that, if in the wrong hands, it can pose a threat to our national security. This case underscores the threat by those who attempt to circumvent U.S. Customs laws. It strengthens our resolve with our federal law enforcement partners to vigorously pursue violators.”
DCIS Resident Agent-in-Charge Kenneth Siegler said: "This investigation demonstrates the Defense Criminal Investigative Service and fellow agencies’ continued commitment to identifying individuals involved in the theft, sale, and smuggling of U.S. military technology. It is imperative that those involved in trafficking stolen Department of Defense equipment be identified and held accountable for their actions.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:
On several occasions from January 2005 through March 2005, LEUNG sold infrared laser aiming devices that were stolen from United States military installations. Infrared laser aiming devices are mounted on weapons, and work by projecting an infrared laser beam on a target that cannot be seen with the naked eye, but can be seen with night-vision equipment. Laser aiming devices are generally manufactured under contract with the U.S. Department of Defense for military use or under contract with law enforcement agencies.
In addition, on multiple occasions from 2005 through 2009, LEUNG smuggled military equipment including the stolen laser aiming devices, night-vision scopes, and other items into the United States by making false and fraudulent statements in customs declaration forms. For example, LEUNG falsely stated that the majority of his shipments contained “distance measuring devices.” He also significantly understated the actual dollar value of the shipments and paid substantially less in customs duties than would have been owed if the true value of the equipment had been declared.
LEUNG, 38, resides in Hong Kong. He is charged with eight counts of falsely classifying goods for entry into the United States, eight counts of importing goods through false and fraudulent statements, eight counts of smuggling, and four counts of selling stolen military equipment. He faces a maximum penalty of 142 years in prison on all counts combined.
Mr. Bharara praised ICE HSI and DCIS for their outstanding work in the investigation.
This prosecution is being handled by the Complex Frauds Unit of the United States Attorney’s Office. Assistant United States Attorney Zachary Feingold is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v Kwok Kuen Leung S1 Indictment
Man Pleads Guilty to Drug ChargeRead the Press Release
US Attorney Brendan V. Johnson announced that Casey Dean Hoefert, age 33, of Sioux Falls, appeared before U.S. District Judge Karen E. Schreier on January 15, 2013, and pled guilty to an indictment that charged him with conspiracy to distribute 500 grams or more of a mixture containing methamphetamine. The charge carries a mandatory minimum penalty of 10 years and a maximum penalty of life in prison, and/or a $10 million fine.
Between May 2010 and January 2012, Hoefert acted as a middle man between two co-conspirators, accepting delivery of methamphetamine from one and delivering it to another, who gave Hoefert payment for the drugs. Hoefert then gave the money to the co-conspirator who originally provided the drugs.
The investigation was conducted by the Minnesota Bureau of Criminal Apprehension, the South Dakota Division of Criminal Investigation, and the US Drug Enforcement Administration. The case is being prosecuted by Assistant US Attorney John E. Haak.
A presentence investigation was ordered, and a sentencing date was set for April 8, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.
Logan County Pill Dealers Plead Guilty to Federal Charges in Connection with an Oxycodone Distribution SchemeRead the Press Release
Brothers admit distributing a total of more than 7,000 prescription pain pills during conspiracy
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced that two men pleaded guilty (Jan. 15) for their role in an illegal oxycodone distribution scheme. Michael Ray Fortuna, 45, of Peach Creek, Logan County, W.Va., pleaded guilty to conspiracy to distribute oxycodone. Fortuna’s brother and co-defendant Ronald Fortuna, 36, also of Peach Creek pleaded guilty in a separate hearing to conspiracy to distribute oxycodone.
Michael Fortuna admitted that from at least the summer of 2008 until August 18, 2011, he was involved in the distribution of prescription drugs – including oxycodone and alprazolam, also known as “Xanax,” in and around Logan County, W.Va. Michael Fortuna further admitted that he obtained oxycodone from Florida and on some instances, he or others at his direction would travel to Florida and bring oxycodone back to Logan County. Fortuna also admitted that sources of supply located in Florida mailed shipments of oxycodone to his address in Logan County, W.Va.
On April 29, 2011, investigators from the United States Postal Inspection Service executed a federal search warrant on a package addressed to Michael Fortuna. The package contained 1,789 30-milligram oxycodone tablets and bore a fictitious return address and had been shipped from Palm Bay, Fla. Investigators approached Michael Fortuna as he arrived at the Peach Creek Post Office in Logan, West Virginia to pick up the package. Michael Fortuna admitted that he had received a total of three such packages from Florida in April 2011. Additionally, Fortuna admitted that he mailed cash to his source of supply in Florida as payment for the packages. The defendant mailed one package that contained at least $30,000.
Ronald Fortuna admitted flying to Florida with two other individuals in late June or early July 2011 in order to obtain oxycodone. On July 3, 2011, investigators from the Multi-Agency Diversion Task Force in Palm Beach County, Florida arrested one of Ronald Fortuna’s companions at the West Palm Beach Airport as the men were attempting to board their return flight. The companion was found to be smuggling 1,377 30-milligram oxycodone tablets. The individual cooperated with law enforcement and stated that he, Ronald Fortuna, and the other man had been sent to Florida by Michael Fortuna to pick up the pills. He identified Michael Fortuna as the head of a drug trafficking organization that obtained oxycodone from Palm Beach County, Fla. and distributed the pills in Logan County, W.Va. The cooperating source admitted that he had been recruited to carry oxycodone pills on his person during a return flight to West Virginia.
Michael Fortuna admitted that he distributed a total of at least 4,955 30-milligram oxycodone tablets during the scheme.
Ronald Fortuna admitted that from at least the summer of 2009 until late summer 2011, he regularly sold oxycodone tablets from his Peach Creek residence located in Logan County, W.Va. Ronald Fortuna also admitted that on or about November 10, 2010, he sold four 30-milligram oxycodone tablets to an informant working for the U.S. 119 Task Force. The transaction occurred at a Peach Creek residence in Logan County.
Ronald Fortuna further admitted that he distributed a total of approximately 2,500 30-milligram oxycodone tablets during the scheme.
Both defendants face up to 20 years in prison and a $1 million fine when they are sentenced on May 2, 2013 by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
The Drug Enforcement Administration Task Force, the United States Postal Inspection Service and the Logan County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecutions.
Local Man Sentenced for Role in Counterfeit Check Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to time served on his conviction of uttering counterfeit checks, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Jonathan Brown, 23, of Pittsburgh, Pa.
According to the information presented to the court, Brown obtained stolen identities and then, on April 14, 2011, and negotiated counterfeit checks at Big Lots stores which he used to buy merchandise. The court was advised that Brown was involved in a larger check fraud scheme.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Inspectors from the United States Postal Inspection Service along with agents from the United States Secret Service who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Jonathan Brown. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Lebanon Man Pleads Guilty, Faces 20 Years in Prison for Coercing a Minor to Become a Sex SlaveRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., man pleaded guilty in federal court today to using the Internet to groom and entice a minor girl into illegal sexual conduct that led to years of sadomasochistic abuse.
“Today’s guilty plea brings closure to a shocking and horrific case,” Dickinson said. “Six defendants now have been brought to justice for their roles in the brutal sexual torture and enslavement of a young woman who was just a teenager when the victimization began.
“The Human Trafficking Rescue Project continues to lead the nation by breaking new ground in trafficking cases,” Dickinson added, “prosecuting both the supply and the demand, both the sex traffickers and their customers.”
Edward Bagley, Sr., also known as “Master Ed,” 45, of Lebanon, pleaded guilty before U.S. District Judge Dean Whipple to enticing a minor into illegal sexual conduct. Under the terms of today’s binding plea agreement, Bagley will face 20 years in federal prison without parole. The court will also order Bagley to pay restitution to his victim.
“Both the interest of the victim and the cause of justice have been served today,” Dickinson said. “The victim is spared having to endure a difficult trial and she can continue her healing process.”
Bagley met the female victim (identified in court documents as FV) in 2002, when she was 16 years old and dating his teenage son. FV visited his trailer residence in Lebanon on numerous occasions. Bagley knew that FV grew up in foster care, came from a troubled home life and had suffered emotional, physical, and sexual abuse in her past. He also knew that FV suffered from mental deficiencies and had previously sustained a traumatic head injury.
During FV’s visits to Bagley’s residence, he showed her images and videos of pornography on the Internet and downloaded from the Internet, including images and videos of bondage and sadomasochistic conduct. Bagley admitted that he provided FV with controlled substances. He taught her about bondage and sadomasochistic activities. His wife, co-defendant Marilyn Bagley, 47, modeled stripper and bondage clothing for FV. The Bagleys told FV that she would love being a “slave” for him. Bagley began a sexual relationship with FV prior to her seventeenth birthday.
FV viewed Edward Bagley as her boyfriend and moved into the Bagleys’ residence in 2003. They provided FV her own room and clothes, and promised her a great life.
Over the course of the next six years, Edward Bagley executed sadomasochistic acts on FV, including sewing her vagina closed, whipping and flogging her body, penetrating her breasts with needles and skewers, suffocating her with plastic bags, strangling her with rope, putting her in a dog cage, and electrocuting FV’s sexual organs with devices which produced electrical voltage. Edward Bagley photographed and videotaped many of the acts he performed on her.
Edward Bagley is the sixth and final defendant to be convicted in this case. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Five defendants have pleaded guilty to their roles in a conspiracy to commit sex trafficking by force, fraud or coercion. This is the first time nationwide that the customers, or “Johns,” have been convicted under the Trafficking Victims Protection Act in a sex trafficking case in which the victim was an adult.
Marilyn Bagley pleaded guilty on Dec. 6, 2012, to her role in the conspiracy. According to Marilyn Bagley’s plea agreement, the victim was subject to sadistic acts of torture that increased in quantity and intensity over a six-year time period. They involved, for example, strangulation, suffocation, breast and vaginal penetration with skewers, and electrical voltage. FV would be punished if she did not do as instructed.
Marilyn Bagley admittedly knew that other individuals, including four co-defendants who have pleaded guilty in this case, came to the residence to engage in sexual conduct and sadistic acts on FV. They provided bondage pornography, meat, cigarettes, and cash, among other items, in exchange for the sessions involving sexual conduct and sadistic acts on FV.
Under the terms of her binding plea agreement, Marilyn Bagley will receive a sentence of probation. The government stated in court that Marilyn Bagley is considered in a separate category from the other defendants in this case because she was a victim of extensive physical and emotional abuse for over 25 years prior to her criminal conduct and participation in the conspiracy. Her participation in the criminal conduct resulted in the abuse being redirected away from her and to the victim.
Co-defendant Michael Stokes, also known as “The Rodent,” 47, of Lebanon, pleaded guilty on Jan. 5, 2012, to participating in the conspiracy.
Stokes became familiar with FV in 2006 when he received pictures of her over the Internet in which she was naked with whip marks over her body. Stokes was told that the victim was a slave for “life” who was tortured for hours at a time and was required to do “everything and anything” she was told. After a few weeks of chatting online, the plea agreement says, a co-conspirator brought the victim to Stokes’ house so she could do a “demo” for him. When they arrived at Stokes’ residence, bringing a duffle bag of torture devices with them, FV was instructed to “put on a show for us.” FV was naked, wearing only dog collars and ankle collars with locks. Stokes was asked whether he wanted to have sex with her. Stokes said “yes” and he had sex with FV.
Stokes was stunned that “someone had that much control over someone” and “had never seen anything like it.”
Stokes began visiting the residence where FV was being held. During his first visit, he was shown a photo of FV’s vaginal opening sewn shut and told this was done to demonstrate “what was expected of her.” FV was present for these statements and remained silent. FV never talked back or spoke up. FV never offered herself to Stokes and only acted on command.
Stokes visited the residence eight to 12 times. During these visits, he would receive sexual acts or be allowed to watch or participate in torturing FV. When he visited he brought steaks, hamburgers, jackets, personalized playing cards, lighters, cigarettes, and cash. Among other things, he witnessed FV being tortured with a crank phone, with electricity shot through devices clamped to her vaginal and anal openings.
Stokes began assisting in promoting FV at the strip clubs. Stokes took photos of FV around to the clubs to promote her there. Stokes gave $1,000 so that FV could be taken for a sexual bondage photo shoot in California for Taboo magazine. Stokes then took a copy of the magazine to promote her at the clubs. The photos in Taboo magazine were extremely mild and did not depict any of the cruel sessions Stokes had witnessed at the residence.
In 2009, Stokes was warned that there was an FBI investigation involving his conduct with FV. Stokes went on his computer and deleted hundreds of photos, his contacts with other females online, pictures of FV that he saved, and destroyed his copies of Taboo magazine and the sexual devices that he had acquired.Under federal statutes, Stokes is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.
Co-defendant Bradley Cook, also known as APutHer2GoodUse,@ 34, of Kirkwood, pleaded guilty on Dec. 20, 2011, to participating in the conspiracy.
From 2006 to 2009, Cook watched the victim being sexually abused and tortured in live online sessions and as depicted in photos and videos that he downloaded from the Internet. Cook admitted that he traveled to Lebanon on multiple occasions during that time to engage in sessions of sexual acts and torture with the victim. In exchange, Cook paid the victim=s Amaster@ for these sessions with such items as computer hard drives that contained images and videos of bondage, domination, sadism and masochism, which he had downloaded from the Internet.
Cook also admitted he was aware of other men who engaged in sexual acts and torture with the victim. He witnessed the victim being whipped and locked in a dog cage, as well as being tied up and shocked with multiple electrical devices. Cook described the abuse suffered by the victim as the Amost extreme@ he had ever seen.
Under the terms of a binding plea agreement, Cook is subject to a sentence of 20 years in federal prison without parole. Cook must also pay restitution to the victim. In addition to the sentence of imprisonment, the court may impose a term of supervised release up to life. Cook must also forfeit to the government the computer media he used to commit the offense.
Co-defendant Dennis Henry, 53, of Wheatland, formerly the postmaster of Nevada, Mo., pleaded guilty on March 24, 2011, to participating in the conspiracy. Henry also pleaded guilty to transporting the victim across state lines for sexual activity.
Henry admitted that he engaged in sex with the victim, and participated in torture sessions with FV that would last for hours. Henry saw pictures of FV=s vagina sewn shut, which he was told was a form of punishment. Henry also admitted that he visited FV at a Lebanon strip club where she was forced to work.
Under federal statutes, Henry is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution.
Co-defendant James Noel, 47, of Springfield, pleaded guilty on Feb. 24, 2011, to participating in the conspiracy. Noel admitted that he was one of the customers who sexually abused and tortured FV. Noel watched the victim being tortured and sometimes operated torture devices himself beginning in 2006, when she was approximately 20 years old. For example, Noel knew that FV hated being electrocuted with a crank phone (which was wired inside FV=s vaginal and anal openings and to her toes), which he described as Aextremely painful,@ but he used it on her anyway.
Under federal statutes, Noel is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.
This case is being prosecuted by Assistant U.S. Attorneys Cynthia L. Cordes, Paul Becker and John Cowles with assistance from the Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.
Lawyer Sentenced to Two Years in Prison for Tax EvasionRead the Press Release
Las Vegas, Nev. – Las Vegas lawyer Charles C. LoBello has been sentenced to two years in prison and ordered to pay $260,625 in restitution to the IRS for his guilty plea to one count of tax evasion for the 2002 tax year, announced Daniel G. Bogden, United States Attorney for Nevada.
LoBello was sentenced on Monday, Jan. 14, 2013, by U.S. District Judge James C. Mahan, and must self-report to federal prison by April 15, 2013.
According to the court records, LoBello, who operated as a sole practitioner in Las Vegas, concealed over $900,000 in income from the United States, intentionally gave incomplete information to his bookkeeper and tax return preparer, and used personal checking accounts to hide large checks he received as legal fees. LoBello admitted in his guilty plea agreement that for the years 2001 through 2005, he owed an additional $260,625 in income taxes.
LoBello’s brother, Mark LoBello, also a Nevada attorney, pleaded guilty to tax evasion in August of 2008, and was sentenced by Judge Mahan on Dec. 1, 2008, to 15 months in prison. Mark LoBello’s license to practice law was subsequently suspended by the Nevada Bar in December 2008.
The case was investigated by IRS Criminal Investigation and prosecuted by Department of Justice Tax Division Trial Attorneys Thomas W. Flynn and Dennis R. Kihm.
Kissimmee Man Sentenced to More Than Two Years in Prison for Copyright Infringement and Pirating DVDsRead the Press Release
Orlando, Florida - U.S. District Judge Charlene Edwards Honeywell today sentenced Patrick Jason Thomas (32, Kissimmee) to 2 and one-half years in federal prison for reproducing and distributing DVDs containing copyrighted movies. The court also ordered Thomas to forfeit approximately 10,000 pirated DVDs and several pieces of computer and DVD-copying equipment, which he used to produce the pirated DVDs. In addition, Thomas was ordered to pay the Motion Picture Association of American $100,000 in restitution. Thomas pleaded guilty on October 24, 2012.
According to court documents, on June 8, 2012, the Osceola County Sheriff’s Office (OCSO) executed a search warrant at Thomas’ home. During the search, agents discovered thousands of counterfeit DVDs and electronic equipment used to produce those counterfeit DVDs. For example, in the garage, agents found a metal shelving unit that held about 6,000 DVDs, along with plastic cases, and several binders of catalogued movies. Thomas used computer equipment to decrypt and extract copyright protected data from DVDs and Blu-Ray discs, and then reproduce and sell movies illegally.
This case was investigated by the Federal Bureau of Investigation and the Osceola County Sheriff's Office. It was prosecuted by Assistant United States Attorney Daniel C. Irick.
Justice Department Reaches Settlement with Community State Bank Regarding Alleged Lending Discrimination in MichiganRead the Press Release
Community State Bank of St. Charles, Mich., will open a loan production office in an African-American neighborhood in Saginaw, Mich., invest $165,000 in majority African-American areas in and around Saginaw and take other steps as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of race, the Justice Department announced today.
The settlement, which remains subject to court approval, was filed in conjunction with the department’s complaint in the U.S. District Court for the Eastern District of Michigan. The complaint alleges that Community State Bank violated the Fair Housing Act and the Equal Credit Opportunity Act (EOCA), which prohibit financial institutions from discriminating on the basis of race in their lending practices. The lawsuit alleges that Community State Bank between 2006 and 2009 served the credit needs of the residents of predominantly white neighborhoods in the Saginaw and Flint metropolitan areas to a significantly greater extent than it served the credit needs of majority African-American neighborhoods. Those neighborhoods are easily recognized because the Saginaw area has long had highly-segregated residential housing patterns, especially for African-Americans.
“The complaint filed today shows that the practice of drawing lending areas with boundaries that exclude borrowers in predominately minority neighborhoods is not just a shameful historical practice,” said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. “We are pleased that Community State Bank will improve access to responsible and affordable credit to qualified borrowers in Saginaw’s minority neighborhoods.”
Barbara McQuade, the U.S. Attorney for the Eastern District of Michigan added: “Today’s settlement will bring badly needed resources to Saginaw and the surrounding areas. It will broaden opportunities for home ownership and home improvement for families who live in neighborhoods where credit has been unlawfully limited. We appreciate the bank’s cooperation in resolving this case.”
The lawsuit originated from a referral by the Federal Deposit Insurance Corporation (FDIC) to the Justice Department’s Civil Rights Division. Community State Bank is regulated by the FDIC.
Under the settlement, Community will invest $75,000 in a special financing program to increase the amount of credit the bank extends to majority African-American neighborhoods in and around Saginaw, $75,000 in partnerships with organizations that provides credit, financial, homeownership, and/or foreclosure prevention services to the residents of these neighborhoods, and $15,000 in outreach that promotes its products and services to potential customers in these neighborhoods. Community also will open a loan production office in a majority African-American neighborhood of Saginaw and conduct fair lending training for its employees. The agreement also prohibits Community from discriminating on the basis of race in any aspect of a credit transaction.
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Right Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 23 lending matters under the Fair Housing Act, the ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $660 million in monetary relief for impacted communities and more than 300,000 individual borrowers. The attorney general’s annual reports to Congress subject to the ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications .
This settlement was accomplished as part of the Financial Fraud Enforcement Task Force’s (FFETF) Non-Discrimination Working Group which focuses on discrimination in the housing and finance markets and is co-chaired by Assistant Attorney General for the Civil Rights Division Tom Perez. The Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Michigan and the FDIC are members of the FFETF, an interagency initiative, established by President Obama in 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force’s efforts, visit www.StopFraud.gov .
Additional information about fair lending enforcement by the Justice Department can be obtained from the Justice Department’s website at www.justice.gov/fairhousing .
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Community Consent OrderJury Convicts Utah Man of Child Pornography ChargesRead the Press Release
WASHINGTON – A Utah man was convicted late yesterday by a federal jury in Salt Lake City of possessing, receiving and distributing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
Michael Loren Dunn, 43, of Park City, Utah, was convicted of one count each of possession, receipt and distribution of child pornography. U.S. District Judge Robert J. Shelby presided over the week-long trial.
According to evidence presented at trial, Dunn, who works in the computer industry, received and shared child pornography, and encrypted the files so that they could only be accessed by him. Evidence of child pornography was recovered from three different computers and two external hard drives owned by Dunn. Evidence also showed that the overwhelming majority of files the defendant searched for contained terms indicative of child pornography content.
Judge Shelby set sentencing in the case for April 8, 2013. Dunn faces up to 10 years in federal prison for his conviction on possession of child pornography. The potential maximum penalties for the receipt of child pornography and distribution of child pornography counts are 20 years per count with mandatory minimum five-year sentences for each count.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by special agents of the FBI and prosecuted by Assistant U.S. Attorneys Mark K. Vincent and Carol A. Dain of the District of Utah, and Trial Attorney Jeffrey H. Zeeman of CEOS.
Jury Convicts Nashua Tax Preparer for Filing False Tax ReturnsRead the Press Release
CONCORD, N.H. –Maria M. Ulloa, 51, of Nashua, was convicted in United States District Court for the District of New Hampshire of filing false, fictitious and fraudulent claims for tax refunds with the Internal Revenue Service following a five day jury trial, announced United States Attorney John P. Kacavas.
Ulloa operated Main Travel, a Nashua business that provided, among other things, federal income tax return preparation services. During the 2007 and 2008 tax filing seasons, she filed ten false federal income tax returns in the names of her clients, diverting most of the resulting inflated tax refunds to herself. The jury returned guilty verdicts on all ten counts.
Ulloa faces a maximum sentence of three years in prison and criminal fines of up to $250,000 on each count. Ulloa will be confined to her home and subject to electronic monitoring pending sentencing which is presently scheduled for April 29, 2013.Ulloa’s prosecution arose from an investigation by the Internal Revenue Service’s Criminal Investigation office in Manchester. The case is being prosecuted by Assistant United States Attorneys Nick Abramson and Bill Morse.