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28 February 2013
Michigan Man Found Guilty in Florida of Child Sex Tourism ChargesRead the Press Release
A former Michigan resident was found guilty by a federal jury today in Miami of child sex tourism charges, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer and Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Miami office.
Matthew Andrew Carter, aka “William Charles Harcourt” and “Bill Carter,” 67, formerly of Brighton, Mich., was found guilty in U.S. District Court for the Southern District of Florida of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so. Carter was charged in a second superseding indictment returned on Jan. 12, 2012.
According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed them, send them to school or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the center. Carter sexually and physically abused the children in his care and custody at the center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the center and/or continue to receive school tuition payments.At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo, Egypt and Winter Haven, Fla.
At sentencing, Carter faces a maximum sentence of 15 years in prison on one count and a maximum sentence of 30 years in prison for each of the other five counts. Carter is scheduled for sentencing on May 20, 2013, in Miami before U.S. District Judge Joan A. Lenard.
The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida and Child Exploitation and Obscenity Section Trial Attorney Bonnie L. Kane of the Criminal Division. The case against Carter was investigated by ICE-HSI in Miami, the ICE-HSI Assistant Attaché’s Office in Santo Domingo, Dominican Republic and the ICE-HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the U.S. Secret Service Miami field office; the Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; the Ministry of the Interior for Haiti; the Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince, Haiti; the Consular Section of the U.S. Embassy in Port-au-Prince, Haiti; the London Metropolitan Police Service; the FBI’s Washington, Boston and Miami field offices; and the ICE-HSI Attaché’s Offices in London and Cairo.Michigan Man Found Guilty of Child Sex Tourism ChargesRead the Press Release
A former Michigan resident was found guilty by a federal jury today in Miami of child sex tourism charges, announced U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, and Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Miami Office.
Matthew Andrew Carter, aka “William Charles Harcourt” and “Bill Carter,” 67, formerly of Brighton, Mich., was found guilty in the U.S. District Court for the Southern District of Florida of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so. Carter is scheduled to be sentenced in Miami, Florida on May 20, 2013, before the Honorable Joan A. Lenard. At sentencing, Carter faces a maximum sentence of 15 years in prison on one count and a maximum sentence of 30 years in prison for each of the other five counts.
U.S. Attorney Wifredo A. Ferrer said, “The sexual exploitation of children, wherever it occurs, is a heinous crime. In this case, a U.S. citizen travelled to Haiti and, over the course of 16 years, preyed on vulnerable children. The daily sexual abuse of the children in his care caused irreparable harm to the victims and their families. Although nothing will repair the damage done to them, we hope that today’s verdict brings a sense of justice and closure to these victims. This verdict is a warning to child predators that they cannot evade justice simply by travelling abroad to avoid detection and prosecution.”
“The unspeakable acts committed by Mr. Carter against his innocent victims brought agencies and countries together to make him face justice. I commend the jury who had to sit through weeks of horrific testimony,” said Alysa D Erichs ,Special Agent in Charge of HSI Miami. “Although nothing can be done to repair the damage done to these victims by Mr. Carter, perhaps this will provide some respite.”
According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing, and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed them, send them to school, or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the Center. Carter sexually and physically abused the children in his care and custody at the Center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the Center and/or continue to receive school tuition payments.
At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo, Egypt, and Winter Haven, Fla.
The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida and Child Exploitation and Obscenity Section Trial Attorney Bonnie L. Kane of the Criminal Division. The case against Carter was investigated by ICE-HSI in Miami, the ICE-HSI Assistant Attaché’s Office in Santo Domingo, Dominican Republic and the ICE-HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; the Ministry of the Interior for Haiti; the Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince, Haiti; the Consular Section of the U.S. Embassy in Port-au-Prince, Haiti; the London Metropolitan Police Service; the U.S. Secret Service Miami Field Office; the FBI’s Washington, Boston and Miami Field Offices; and the ICE-HSI Attaché’s Offices in London and Cairo.
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.
Miami Man Pleads Guilty to Access Device FraudRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces that Hosmel Barona-Cardona (41, Miami) pleaded guilty to access device fraud. Barona-Cardona faces a maximum penalty of 10 years in federal prison and a fine of up to $250,000.
According to the plea agreement, between November 14, 2009 and November 30, 2011, Barona-Cardona used counterfeit credit cards, with stolen credit card numbers, at retail stores and other businesses in Florida, Georgia, Kentucky, Indiana, Tennessee, Virginia, Maryland, Ohio, and Michigan. These credit cards were created to appear as legitimate Discover, MasterCard, Visa, and American Express cards. These counterfeit credit cards contained stolen credit cards numbers. Over the course of the scheme, Barona-Cardona used more than 100 stolen credit card numbers and fraudulently obtained $155,452.77.
This case was investigated by the United States Secret Service and the St. Cloud Police Department. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
Mexican Citizen Pleads Guilty to Role in Drug Trafficking OrganizationRead the Press Release
Victor Castaneda, 39, a citizen of Mexico, who most recently resided in Madison, Illinois, entered a plea of guilty in federal court on February 26, 2013, to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine (Count 1); Entry Into the United States Without Inspection (Count 4); and four counts of Unlawful Distribution of Cocaine (Counts 6, 7, 8, and 9), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. No counts were dismissed against Castaneda in return for his plea. Castaneda had been charged on August 22, 2012, in an indictment charging ten individuals with being members of a large drug trafficking organization. Castaneda is currently scheduled to be sentenced on June 14, 2013. At that time he will face penalties of 5 to 40 years in prison, a fine of up to $5 million, at least 4 years of supervised release, and a $100 Special Assessment for Count 1. For Count 4, Castaneda faces penalties of not more than 6 months in prison, a fine of up to $5,000, and a $10 Special Assessment. For Counts 6 through 9, Castaneda faces penalties of not more than 20 years in prison, a fine of up to $1 million, at least 3 years of supervised release, and a $100 Special Assessment on each count.
Castaneda admitted the Forfeiture Allegation in the Indictment and agreed to forfeit $30,240.00 to the United States. In addition, Castaneda agreed to the entry of a Judicial Order of Removal, which will require that he be deported from the United States following any term of imprisonment.
Of the nine individuals named in the indictment with Castaneda, three others have entered pleas of guilty and are awaiting sentencing; four others have been arrested and are awaiting trial; two are fugitives. Those not yet convicted are presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff’s Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Mercer County, N.J., Man Sentenced to 30 Years in Prison for Robbing the Same Bank Twice, Carjacking A Car and Shooting Two PeopleRead the Press Release
TRENTON, N.J. - A Mercer County, N.J., man was sentenced today to 30 years in prison for robbing a bank and returning nine months later to rob the same bank, carjacking a vehicle and shooting two people in the course of that conduct, U.S. Attorney Paul J. Fishman announced.
Jeffrey Garrett, 36, of Trenton, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Counts One, Three, Five and Six of an Indictment charging him with two armed bank robberies, carjacking, and discharging a firearm during a crime of violence. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Garrett robbed the Chase Bank, in Hamilton, N.J., on Nov. 10, 2010. He handed the teller a note that stated: “I have a gun, give me all the fifty and hundred dollar bills.” He displayed a black handgun before fleeing with the cash. Surveillance cameras revealed clear images of Garrett, and FBI agents determined that Garrett used his own Visa card at the Chase Bank’s ATM just moments before the robbery. Federal authorities charged Garrett by Complaint two days later and obtained an arrest warrant, but Garrett remained at large.
Nine months later, on Aug. 23, 2011, Garrett robbed the same bank. To get to the bank, he carjacked a car at 5:30 a.m. He pistol-whipped the victim, and the gun discharged, causing the victim a serious head wound. Garrett locked the bleeding victim in the trunk of the car and shortly thereafter bound his hands with cable and threatened his life.
Garrett arrived at the same Chase Bank in Hamilton in the stolen vehicle around 10 a.m., after driving around for hours. He wore a dark baseball cap and sunglasses when he entered the bank. Showing a chrome revolver, he demanded that the teller give him all the money. When she complied, he asked for more money and threatened to shoot her if she turned any keys at her station. The handgun discharged and the teller was shot in the abdomen.
Garrett drove off in the stolen car and later abandoned it in a shopping mall parking lot in Moorestown, N.J., with the bound carjacking victim still locked in the trunk. Both victims survived.
Garrett was arrested in Florida on Oct. 17, 2011.
In addition to the prison term, Judge Sheridan sentenced Garrett to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; officers of the Hamilton Township Police Department, under the direction of Police Chief James W. Collins; officers of the Trenton Police Department, under the direction of Police Director Joseph S. Juniak; and the U.S. Marshals Service, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: David E. Schafer Esq., Assistant Federal Public Defender, Trenton
Manhattan U.S. Attorney Settles Lawsuit Against New York City over Hiring Procedures That Violated the Americans with Disabilities ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed and simultaneously settled a federal civil rights lawsuit alleging that NEW YORK CITY (the “City”), and specifically the NEW YORK CITY POLICE DEPARTMENT (“NYPD”), violated the Americans with Disabilities Act of 1990 (“ADA”) in the course of its failure to hire an applicant for a School Crossing Guard position. The settlement agreement, in the form of a Consent Decree, was filed today by U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Preet Bharara said: “The ADA expressly prohibits medical and psychological exams until a conditional offer of employment has been made – so that an applicant will know if his or her disability is the reason he or she didn’t get the job. This transparency in the hiring process is crucial because it protects the applicant from disability-based discrimination that might otherwise be masked by an employer.”
According to the Complaint filed Tuesday in Manhattan federal court, the applicant applied for the position of School Crossing Guard, and immediately after doing so was directed to report for medical testing. At the time the NYPD directed the applicant to report for medical testing, it had not extended the applicant a conditional offer of employment, in clear violation of the ADA which generally prohibits medical and psychological exams until a conditional offer of employment has been made. After a conditional offer has been made, an employer may then require a prospective employee to undergo a medical examination. The purpose of this two-step process is so that an applicant will be able to discern if he or she was rejected for medical or psychological reasons.
In the Consent Decree, the City admits and acknowledges that it had a hiring procedure at the time that violated the ADA, and agrees to make the applicant a conditional offer of employment and pay her $65,000.
More information on the obligations of employers with respect to job applicants with disabilities is available at www.ada.gov and www.eeoc.gov .
Mr. Bharara thanked the Equal Employment Opportunity Commission for its initial investigation of the Complaint.
The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney David J. Kennedy is in charge of the case.
US v.City of New York ADA Settlement Consent Decree
US v. City of New York ADA Settlement ComplaintManhattan U.S. Attorney Charges Seven Members and Associates of Bronx Narcotics Organization with Drug Trafficking and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Joseph Anarumo, Jr., the Special Agent-in-Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Raymond W. Kelly, the Police Commissioner for the City of New York (“NYPD”), announced today the unsealing of an Indictment charging seven members and associates of a drug trafficking organization (the “Organization”) that operated in the Bronx with narcotics trafficking. Six of the defendants are also charged with possessing, brandishing, and discharging firearms in connection with their drug trafficking.
One of the defendants charged, ADONY NINA, was originally arrested by ATF agents in April 2012 for possession of ammunition by a convicted felon and has been in federal custody since that time. Three additional defendants, CANDIDO ANTOMATTEI, JORGE CRUZ, and TIARA FELIX, were arrested last night. Two additional defendants, STEPHANIE MESA and JASON MORALES, who are already in custody on state charges, will be transferred to federal custody tomorrow. One defendant, EDUARDO RODRIGUEZ, remains at large. The three defendants arrested last night are expected to be presented and arraigned today in Manhattan federal court before U.S. Magistrate Judge Frank Maas. The case has been assigned to U. S. District Judge Richard J. Sullivan.
Manhattan U.S. Attorney Preet Bharara said: “With today’s takedown in the Bronx, we are once again reminded of the connection between narcotics trafficking, guns and violence. These defendants allegedly conspired to blanket a section of the Bronx with heroin and crack cocaine, using guns as their calling cards. Today’s arrests represent the latest coordinated work of law enforcement to clean the drug trade and the people who peddle drugs out of our neighborhoods and to make those communities safe for their residents.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said: “This investigation is extremely vital not only because it has resulted in the arrests of violent individuals known to be using firearms in furtherance of their drug trafficking, but also because it exemplifies inter-agency cooperation at its best. By combining the investigative resources and techniques of the NYPD and ATF, an organized and defined heroin and crack trafficking operation has been effectively dismantled. The essence of law enforcement is realized when we can rid the streets of criminals and also cause the initiation of additional investigations into even more serious offenders.”
NYPD Commissioner Raymond W. Kelly said: “Police investigated the source of New Year’s Day gunfire and discovered alleged crack cocaine and heroin trafficking, much of it occurring within feet of a school and playground. Law-abiding New Yorkers in nearby public housing and elsewhere in the Bronx bore the brunt of the subjects’ drug dealing and gun violence - until NYPD detectives, their ATF partners, and Federal prosecutors stepped in. I commend their dedication to public safety, and congratulate them on the arrests in this case.”
According to the allegations in the Indictment filed in Manhattan federal court, other publicly filed documents, and statements made in court earlier today:
From 2008 through 2012, the Organization’s members sold crack cocaine and heroin to street level drug customers, and supplied those drugs to other Bronx drug dealers, primarily in the vicinity of Longwood Avenue and Beck and Kelly Streets in the Bronx.
For example, in October 2011, JORGE CRUZ sold a quantity of crack cocaine to an NYPD undercover officer. And in March 2010, JASON MORALES was in possession of four firearms, at least one of which was brandished and discharged in connection with a drug trafficking crime.
The federal investigation into the Organization’s narcotics trafficking began in concert with the arrest of ADONY NINA by NYPD officers after he allegedly fired a handgun into the air early on the morning of January 1, 2012 in the Bronx. NINA is a leading member of the Organization.
All of the defendants are charged with one count of conspiring to distribute, and possess with the intent to distribute, crack cocaine and heroin, which carries a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. In addition, six of the defendants are charged with possessing firearms, which were brandished and discharged, in connection with their drug trafficking, which carries a mandatory minimum sentence of 10 years in prison. A chart containing the names, ages, residences, and charges for the defendants is attached.
Mr. Bharara praised the outstanding investigative work of the ATF, and added that the investigation is continuing.
The prosecution is being handled by the Office’s Violent Crimes Unit. Assistant U.S. Attorneys Daniel Noble and Laurie Korenbaum are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
US v Nina et al Indictment
Man Sentenced for Attack on Federal MarshalsRead the Press Release
MOBILE, Ala. - Robert Lee Locke, 29, of Prichard, Alabama, was sentenced in federal court today for his assault of two United States deputy marshals. Court documents reflect that the attack occurred outside a federal courtroom where Locke had just been sentenced for a violation of a supervised release term in a prior federal drug conviction. Locke became unruly as the court proceeding adjourned, and in the hallway outside the courtroom, Locke, who was in custody, used the handcuffs on his hands and his fingernails against the deputy marshal escorting him back to the marshals holding area for prisoners in federal custody. A second deputy marshals was also present, who sought to gain control of Locke. In addition to cuts and abrasions on the face and head of the first deputy marshal, Locke scratched the cornea of the second deputy marshal and bit her on the arm.
Locke pled guilty to two counts of impeding a deputy marshal in the performance of official duties in November of 2012. United States District Court Judge Callie V.S. Granade imposed a sentence of 70 months imprisonment on each count, but ordered that the time run concurrently. Locke was also ordered to serve another term of three years supervised release following the completion of his prison term. The judge ordered that Locke pay restitution for the medical expenses incurred by the injuries he inflicted on the deputy marshals, and imposed a special mandatory assessment of $200.
The United States Marshals Service in Mobile conducted the investigation. It was prosecuted by Assistant United States Attorney Gloria A. Bedwell.
Man Pleads Guilty to Conspiring to Sell over 4 Kilos of Methamphetamine in OaklandRead the Press Release
OAKLAND - Miguel Bedoya pleaded guilty in federal court in Oakland on Wednesday, February 27, 2013, to conspiracy to distribute and possess with intent to distribute methamphetamine, United States Attorney Melinda Haag announced.
In pleading guilty, Bedoya admitted to conspiring with other individuals to distribute methamphetamine in Oakland, California. He admitted that, on September 5, 2012, he met with an individual in Oakland, and showed him approximately 4.4 kilograms of crystal methamphetamine inside a speaker box in the trunk of a vehicle that Bedoya’s co-conspirator was driving.
The co-conspirator, Hassan Johnny Valenzuela, pleaded guilty on February 20, 2013.
Bedoya, 56, of Mexico, was indicted by a federal Grand Jury on September 27, 2012. He was charged with one count of conspiracy to distribute and possess with the intent to distribute methamphetamine in violation of Title 21, United States Code Sections 846, 841(a)(1) and 841(b)(1)(A)(viii), and possession with the intent to distribute methamphetamine in violation of Title 21, United States Code Sections 841(a)(1) and 841(b)(1)(A)(viii).
Bedoya has been in continuous federal custody since October 3, 2012.
The sentencing of Bedoya is scheduled for May 15, 2013, before the Honorable Phyllis J. Hamilton in Oakland. The maximum statutory penalty for violating 21 U.S.C. §841(a)(1) and 846 is life imprisonment and a fine of $10,000,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Chinhayi Cadet is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Jacquelyn Lovrin. The prosecution is the result of a an investigation by the Federal Bureau of Investigation and the Oakland Police Department.
Lusby Man Pleads Guilty to Possession and Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland - Shawn Fred Crawford, age 47, of Lusby, Maryland, pleaded guilty today to possession and distribution of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the plea agreement, on July 25, 2012, Crawford distributed six images and 16 videos depicting children engaged in sexually explicit conduct. After an investigation by the FBI, a search warrant was executed at Crawford’s home on September 18, 2012. A subsequent forensic examination of the computers and other digital media seized during the search revealed approximately 4,700 images and 1,100 videos of children engaged in sexually explicit conduct, including children under the age of 12.
As part of his plea agreement, Crawford will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Crawford faces a mandatory minimum sentence of five years and a maximum of 20 years in prison for distribution of child pornography; and a maximum of 10 years in prison for possession of child pornography, each followed by up to a lifetime of supervised release. U.S. District Judge Roger W. Titus has scheduled sentencing for May 14, 2013, at 9:00 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing and abused children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who is prosecuting the case.
Laredo Resident Sentenced in Alien Smuggling CaseRead the Press Release
LAREDO, Texas – Jorge Castenada, 38, of Laredo, has been sentenced to total of 63 months following his conviction of alien smuggling, United States Attorney Kenneth Magidson announced today. Jorge Castenada pleaded guilty Oct. 22, 2012.
Following a four-hour sentencing hearing today, visiting U.S. District Judge Keith P. Ellison handed Castenada a sentence of 51 months for the alien smuggling offense and another 12 months for violating terms of supervised release, to be served consecutively, for a total of 63 months.
In May 2012, Castenada agreed to transport an undocuented Guatemalan female alien from McAllen to Houston via Laredo for $1500. Castenada, who already has an extensive criminal history, then took the lone female alien to a deserted house where he sexually assaulted her and threatened her to keep quiet. Later in the day, he was stopped by Border Patrol for an immigration inspection and was arrested for alien smuggling when it was revealed he was transporting an alien in violation of federal law.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sonah Lee.
Kennel Operators Plead Guilty to Conspiracy and Mail Fraud in Dog SalesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Floyd and Susan Martin, of Shippensburg, Pennsylvania, d/b/a Chestnut Grove Kennel, entered guilty pleas today before U.S. District Court Judge John E. Jones, III, in Harrisburg.
Pursuant to the terms of written plea agreements, Floyd Martin entered a plea of guilty to one count of mail fraud. Susan Martin entered a plea of guilty to one count of conspiracy. The plea agreements also specify that Floyd and Susan Martin are jointly and severally liable for restitution in the amount of $300,000.
The charges stem from an investigation initiated in February 2009 by the Internal Revenue Service, U.S. Department of Agriculture-Office of Inspector General, Animal & Plant Health Inspection Service, and Animal Care. According to United States Attorney Peter J. Smith, the Martins were charged with the unlawful procurement of hundreds of random sourced dogs by unnamed co-conspirators, and the subsequent resale of those dogs to medical research facilities by Floyd and Susan Martin, d/b/a Chestnut Grove Kennel.
The indictment alleged that the defendants conspired to circumvent federal regulations, which place limitations on the number of allowable sales of dogs, by stealing the identities of multiple individuals and falsifying federal documents.
U.S. Attorney Smith said that activities such as those alleged in the indictment will be investigated and prosecuted by his office: “This kind of alleged conduct constitutes a cruel fraud on dog owners and mistreatment of animals as well as showing a flagrant disregard for the U. S. Department of Agriculture’s program to ensure that such animals are treated properly and safely.”Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. A sentencing date has not yet been scheduled.
In this particular case, the maximum penalty under the federal statute is 20 years imprisonment for mail fraud and 5 years imprisonment for conspiracy, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Kansas Man Sentenced for Murder-for-Hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Basehor, Kan., man was sentenced in federal court today for attempting to hire a man to kill his wife.
Lee D. Smith, 38, of Basehor, was sentenced by U.S. District Judge Beth Phillips to eight years in federal prison without parole.
Smith, who pleaded guilty on Oct. 2, 2012, admitted that he contacted a Kansas City, Mo., man (who is only identified in the plea agreement as a confidential informant) on May 9, 2012, about hiring the man to kill his wife. On the same day, Smith drove to a bus stop near Brush Creek and Highway 71 in Kansas City, Mo., to pick up the man. Smith drove him to an office building in Overland Park, Kan., where his wife worked. Smith pointed out the door she used to enter the building, showed the man where she parked her vehicle, and described the type of vehicle she would be driving. Smith gave the man a physical description of his wife and told him what time she usually arrived at work in the morning. Smith told the man that he would pay him $1,500 to kill his wife when she arrived at the work the next day (May 10, 2012).
The man informed the Kansas City Police Department about Smith’s plan to murder his wife. Following police instructions, he called Smith on May 11, 2012, and told him that he had abducted both his wife and daughter. Smith told the man to release his daughter but to kill his wife. Later on the same day, the man, following police instructions, again called Smith and told him that he had killed Smith’s wife; he demanded $1,800 for doing this.
Smith agreed to meet the man later that day at a grocery store in Kansas City, Mo., and pay him the $1,800 for murdering his wife. Following this conversation, Smith went to his bank and cashed a check for $1,600. Later that morning, the Kansas City Police Department asked Smith to come to police headquarters so they could give him “news” about his wife. When Smith arrived at police headquarters he was arrested.This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Settles Immigration-Related Discrimination Claim Against Illinois Staffing AgencyRead the Press Release
The Justice Department today reached an agreement with The Agency Staffing located in West Dundee, Ill., resolving claims that the staffing company violated the anti-discrimination provisions of the Immigration and Nationality Act (INA).
The Justice Department’s investigation was initiated based on a referral from the U.S. Citizenship and Immigration Services (USCIS) under a memorandum of agreement between the Civil Rights Division and USCIS. The department’s investigation concluded that The Agency Staffing applied enhanced employment eligibility procedures to work-authorized non-U.S. citizens that were run through E-Verify. The company did not utilize these additional procedures when it ran U.S. Citizens through E-Verify. E-Verify is an Internet-based system run by USCIS that confirms employment eligibility by comparing information from an employee’s Form I-9.
Under the settlement agreement, The Agency Staffing will pay $8,400 in civil penalties to the United States, undergo Justice Department training on the anti-discrimination provision of the INA, and be subject to monitoring of its employment eligibility verification practices for a period of three years. The case settled prior to the Justice Department filing a complaint in this matter.
“Employers cannot create higher hurdles for non-U.S. citizens in the employment eligibility verification process, which includes E-Verify, than those required of U.S. citizens or those required by law,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “We commend The Agency Staffing for restructuring its hiring processes to ensure that it will no longer be treating new hires differently based on their citizenship status.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Announces More Than $12.6 Million in Grants to 20 Communities to Reduce Dating ViolenceRead the Press Release
The Department of Justice’s Office on Violence Against Women (OVW ) today announced $12.6 million dollars in grants awarded to 20 communities as part of a new, consolidated program designed to more effectively reduce dating violence . For the first time, grantees can implement a comprehensive approach to dating violence that includes services for victims, prevention programs, partnering with schools and engaging men and boys in ending violence against women . OVW combined four separate grant programs into one, enabling more efficient, effective work and responding to the call for bold new initiatives from The Attorney General’s Task Force on Children Exposed to Violence.
Grantees of the Consolidated Grant Program to Address Children and Youth Experiencing Domestic and Sexual Violence and Engaging Men and Boys as Allies will provide services to children and youth exposed to violence, training for professionals to improve interventions and responses, coordinated school-based strategies, supportive services for non-abusing parents and coordinated community responses. The Program also supports innovative prevention strategies that encourage men and boys to work as allies with women and girls to prevent domestic violence, dating violence, sexual assault and stalking.
Acting Associate Attorney General Tony West announced the grants to a room full of high school and college students at a White House event commemorating Teen Dating Violence Awareness and Prevention Month.
“Teen dating violence is about our community, our schools and our relationships. And that means it’s about us. Each one of us, as well as, importantly, those of us who are men,” Acting Associate Attorney General West said. “As fathers, brothers, coaches, teachers and classmates – men’s voices must be part of this conversation – as men, both young and old, this is our individual and collective responsibility.”
Research shows that our nation’s teens and young adults experience particularly high rates of violence. One-in-ten 9th-12th grade students were physically hurt, on purpose, by a boyfriend or girlfriend in 2011. According to the latest CDC data, 80% of rape victims were raped for the first time before their 25th birthday. Many young people do not know where to turn for help. A 2008 study found that 67 percent of students who were abused in a relationship talked to a friend, but only 13 percent also talked to a parent or other adult.
“Every year, millions of children and adolescents across the United States are victimized and exposed to violence in their homes and neighborhoods, and often suffer severe, long-term emotional and physical consequences,” said Acting Director of OVW Bea Hanson. “As we work to help keep our children safe, we must view prevention and intervention as intertwined, not separate and distinct. This grant program is an essential part of our vision for safe and healthy communities, places where young people can grow to their fullest potential.”
Grantees will receive awards ranging from $350,000 to $1,000,000 based on the scope of their projects. The selected applicants are: Aleut Community of St. Paul Island, Alaska; The Alaska Network on Domestic Violence and Sexual Assault, Alaska; Center for Hope and Healing, Mass.; Deaf Abused Women’s Network, Washington, D.C.; The Family Partnership, Minn.; Family Violence and Rape Crisis Services, N.C.; Jenesse Center Inc., Calif.; Jewish Women International, Inc., Washington, D.C.; HOPE Works, Vt.; Mecklenburg County, N.C.; Meriden-Wallingford Chrysalis Inc., Conn.; Kalispel Tribe of Indians, Wash.; King County Sexual Assault Resource Center, Wash.; Nashville Young Women’s Christian Association, Tenn.; Peace Over Violence, Calif.; Project Pave, Colo.; SafeHaven of Tarrant County, Texas; Wiconi Wawokiya Inc., S.D.; Youth Organizations Umbrella Inc., Ill.; and YWCA Knoxville, Tenn.
For more information on OVW and its programs, please visit: www.ovw.usdoj.gov .
Judge Hands Down Long Prison Term for Illegal Oxycodone DistributionRead the Press Release
PHILADELPHIA - William Andrews, 52, of Philadelphia, was sentenced today to 145 months in prison for a drug distribution conspiracy involving approximately 7,000 pills of a mixture and substance containing a detectable amount of oxycodone. Andrews obtained oxycodone pills from various sources, including a licensed physician who issued prescriptions authorizing Andrews to obtain oxycodone pills from licensed pharmacies. Andrews then supplied oxycodone pills to his alleged co-conspirator, Joseph Fareri, for the purpose of selling the pills to customers, typically charging $20 for a 30 milligram pill. Andrews also sold oxycodone pills to customers.
In addition to the prison term, U.S. District Court Judge Mitchell S. Goldberg ordered six years of supervised release. Andrews pleaded guilty on April 11, 2013 to the conspiracy, to a charge of distribution, and a charge of distribution within 1,000 feet of a protected area. His co-defendant, Joseph Fareri, was sentenced on February 4, 2013 to 86 months in prison; co-defendant John Marshall is awaiting trial.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Attorney General’s Office. It is being prosecuted by Assistant United States Attorneys David Troyer and Frank Labor and Special Assistant United States Attorneys Erik Olson and Heather Castellino of the Pennsylvania State Attorney General’s Office.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illinois Man Sentenced on Interstate Sex OffenseRead the Press Release
Boston - An Illinois man was sentenced today in federal court for an interstate sex offense involving a 15-year-old girl.
James Waddell, 36, of Montrose, Ill., was sentenced by U.S. District Judge Michael A. Ponsor to five years in prison, to be followed by five years of supervised release. Waddell pleaded guilty to one count of Inducing Travel to Engage in Illegal Sexual Activity on Nov. 14, 2012.Waddell met a 15-year-old girl in Massachusetts on the Internet through a role-playing game. Waddell later began communicating with the girl by telephone and webcam, and by the spring 2009, Waddell was encouraging the girl to masturbate on the webcam while he recorded it. In August 2009, Waddell traveled from Illinois to Enfield, Conn. to meet the girl and have sex with her. Waddell induced her to cross from Massachusetts into Connecticut so that he could take her to a motel room where he had sex with her and recorded it. At the time, the sex was a violation of Connecticut law because Waddell was 31 and the girl was 15.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The Federal Bureau of Investigation, Massachusetts State Police and Longmeadow Police Department also provided assistance. The case was being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz's Springfield Branch Office.
Holdman IndictedRead the Press Release
BATON ROUGE, LA – United States Attorney Donald J. Cazayoux, Jr. announced today that a Federal Grand Jury returned an indictment on February 27, 2013 charging JAMES R. HOLDMAN with 18 (eighteen) counts of mail fraud for his role in executing a fraudulent investment scheme.
According to the indictment, HOLDMAN operated a hedge fund called Greenwing Capital Management, LLC. As the owner and operator of the fund, HOLDMAN solicited and received millions of dollars in investment funds from the victim investors. The indictment alleges that from approximately February 2008 to October 2008, HOLDMAN concealed a failed investment plan by falsely representing to the victim investors that their investments were earning positive rates of return when, in fact, HOLDMAN had lost over 98% of their funds.
The indictment alleges by making these false representations, HOLDMAN was able to conceal his failed investment plan and defraud the victim investors into keeping their remaining money with Greenwing Capital or investing more money in it, thereby allowing HOLDMAN to continue receiving money in the form of fees for his own personal use and benefit. In order to continue to conceal his fraud, HOLDMAN continued to put the victim investors’ money at risk in an attempt to recoup his losses.
FBI Special Agent-in-Charge Michael J. Anderson stated, “Those individuals who prey on a vulnerable investing public, especially during such challenging economic times, will continue to be held fully accountable.”
U.S. Attorney Donald J. Cazayoux, Jr. stated, “Prosecuting those who commit investment fraud in the district will continue to be a priority as we strive to protect the public and to deter wrongdoers.”
The case is being prosecuted by Assistant U.S. Attorney Shubhra Shivpuri. The joint investigation is being conducted by the Federal Bureau of Investigation, the Louisiana Office of Financial Institutions, the Texas State Securities Board, and the Securities and Charities Division of the Mississippi Office of the Secretary of State.
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Heroin Charges Filed on Detroit ManRead the Press Release
A federal grand jury sitting returned a one-count indictment charging Reginald G. Davis, age 61, of Detroit, Michigan, with possession with the intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about February 6, 2013, Reginald G. Davis possessed with the intent to distribute more than 100 grams of heroin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration - Youngstown Resident Office. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Henderson Man Charged with Possession of Ammunition While Subject to A Domestic Violence Protective OrderRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that a criminal complaint, filed February 25, 2013, charges WILLIAM IRA HARRIS, JR. with possession of ammunition while subject to a domestic violence protective order, in violation of Title 18, United States Code, Sections 922(g)(8) and 924.A detention hearing was held today and U.S. Magistrate Judge Gates ordered HARRIS detained pending his trial.
According to filed court documents, on February 13, 2013 Raleigh Police Officers responded to a call regarding a violation of a Domestic Violence Protection Order. Officers located HARRIS in an office building where his estranged wife worked and asked him to go outside. After verifying that HARRIS had been served with a Domestic Violence Protective Order, the officers then arrested him for the violation. Officers received verbal consent to search HARRIS’ vehicle and located 59 rounds of ammunition, including one round of .243 caliber Winchester bullet with his wife’s name written on it.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Raleigh Police Department. Assistant United States Attorney Kimberly A. Moore is prosecuting this case for the United States.
Gansevoort Man Sentenced for Receiving Child PornographyRead the Press Release
Defendant Who Received Multiple Still Images and Videos of Child Pornography Sentenced to 96 Months in Prison
Albany, New York — WAYNE L. CONRAD, JR., age 47, of Ganesvoort, New York, was sentenced today by United States District Court Judge Mae A. D’Agostino, in Albany to ninety-six (96) months of imprisonment for receiving child pornography images, announced United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division, and Joseph D’Amico, Superintendent of New York State Police. CONRAD, who had entered a guilty plea on October 15, 2012, was also ordered to have no unsupervised contact with minors and to register with the New York State Sex Offender Registry Program.
Between May 2007 and February 1, 2012, CONRAD used the Internet to access various child pornography websites and various file sharing networks. While accessing some of the child pornography websites or file sharing networks, CONRAD downloaded multiple still images and videos of child pornography onto his home computer and external hard drives.
This case was investigated by the Federal Bureau of Investigation and the New York State Police.
LOCAL CONTACT: Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247Ft. Lauderdale Man Convicted of Money Laundering and Obstruction of Justice in Connection with MBC FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that, after a four-week trial before U.S. District Judge Kathleen M. Williams, a federal jury sitting in Miami convicted defendant Steven Steiner, a/k/a “Steven Steinger,” 60, on 19 of 54 counts, including conspiracy to commit money laundering offenses, money laundering, conspiracy to commit offenses against the United States, and various obstruction of justice offenses, relating to Steiner’s participation in a scheme to launder and conceal more than $15 million in proceeds derived from the Mutual Benefits Corporation (“MBC”) fraud, and Steiner’s obstruction of United States Securities and Exchange Commission (“SEC”), the court-appointed receiver for MBC, and the United States District Court, in their efforts to secure and recover assets traceable to the fraud. Co-defendant Henry Fecker, III was acquitted on all charges. Steiner is scheduled to be sentenced by Judge Williams on May 8, 2013.
According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, chronically ill, and elderly persons. Having purchased the life insurance policies, MBC sold fractionalized interests in the death benefits, known as “viatical settlements,” to approximately 30,000 investors. In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence at trial established that MBC misrepresented various material facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s title to certain life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors. Witnesses testified that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. The evidence established that as the fraud continued, investor money was required to prevent the MBC Ponzi-scheme from collapsing. Ultimately, investors lost more than $750 million.
Steiner was a founder, principal, and Vice President of MBC, and he received more than $15 million in proceeds from the MBC fraud through two shell corporations that he controlled, Camden Consulting, Inc., and SKS Consulting, Inc.
In May 2004, the SEC filed a civil enforcement action in the United States District Court for the Southern District of Florida, SEC v. Mutual Benefits Corp., et al., Case No. 04-60573-CIV-MORENO (the “SEC Fraud Action”), against MBC and various “relief defendants,” including Steiner’s shell corporations. On May 4, 2004, United States District Judge Federico A. Moreno entered an order appointing Coral Gables attorney Roberto Martinez as the receiver for MBC, with the mandate to identify, secure, trace, and recover the assets of MBC.
According to evidence presented at trial, the jury found that, following the closure of MBC and the appointment of the MBC receiver, Steiner engaged in money laundering transactions designed to conceal the source, location, ownership, and control of his proceeds from the MBC fraud. At the same time, Steiner acted to obstruct the SEC, the MBC receiver, and the United States District Court.
Evidence at trial also disclosed that in 2006 and early 2007, Steiner submitted false and misleading financial disclosure documents to the SEC to persuade the SEC to agree to a favorable settlement of the SEC claims against him and his shell corporations Camden Consulting and SKS Consulting, in the SEC Fraud Action. Based upon Steiner’s fraudulent financial disclosure, the SEC agreed to a reduced penalty of $3.9 million, and on April 10, 2007, the District Court entered a Final Judgment in the SEC Fraud Action ordering Steiner, SKS and Camden to pay $3.9 million to the court-appointed receiver for MBC. Evidence at trial established that Steiner acted to thwart the MBC receiver’s efforts to trace and recover MBC assets and recover on the final judgment. Among other things, Steiner repeatedly lied under oath during depositions and physically concealed documents, including checks representing proceeds from the MBC fraud.
Steiner is currently awaiting trial in two related cases in the Southern District of Florida. In United States v. Joel Steinger, et al., Case No. 08-21158-CR-Scola, Steiner and co-defendants Joel Steinger and Anthony Livoti are charged with conspiracy to commit mail and wire fraud and money laundering, in relation to the MBC fraud scheme. In United States v. Joel Steinger et al., Case No. 12-20123-CR-Rosenbaum, Steiner, Joel Steinger, and Henry Fecker III are charged with engaging in a multi-million dollar scheme to defraud insurance companies.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Dwayne E. Williams.
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.
Fort Hall Man Pleads Guilty to Assault with Dangerous WeaponRead the Press Release
POCATELLO – Adan Diaz, 21, of Fort Hall, Idaho, pleaded guilty yesterday in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced.
In court yesterday, Diaz pleaded guilty to the indictment filed on September 25, 2012, and admitted that on January 28, 2012, he pointed a gun at the victim who was sitting in a vehicle near a Fort Hall residence. Diaz fired a shot, which missed the victim but struck a window in the vehicle. Diaz later admitted in an interview with Fort Hall Police that he intended to injure the victim when he pointed the gun at him. Police later recovered the gun, a Keltec .380 caliber handgun.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for May 28, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Yazoo Federal Prison Guard Sentenced for Accepting BribeRead the Press Release
Natchez, Miss – Robert Kale Johnson, 38, of Bentonia, Mississippi, was sentenced in U.S. District Court today to serve 15 months in prison followed by 3 years of supervised release for accepting a $5,000 bribe while working as a prison guard at the Yazoo Federal Correction Complex in Yazoo, Mississippi, announced U.S. Attorney Gregory K. Davis and Teresa M. Gulotta-Powers, Special Agent in Charge of the DOJ Office of Inspector General. Johnson was also ordered to pay a $1,500.00 fine.
During his guilty plea on November 19, 2012, Johnson admitted accepting the bribe while employed as a corrections officer and using his official position to bring contraband to inmates.
Special Agent in Charge T.M. Gulotta-Powers of the Department of Justice Office of the Inspector General, Miami Field Office, stated, “The integrity of our federal prison system depends upon the honesty and commitment to duty of correctional personnel. DOJ OIG will continue to partner with the U.S.Attorney’s Offices and the Federal Bureau of Prisons to aggressively pursue breaches of those duties by correctional officers who put their own financial gain above the security of our institutions.”
U.S. Attorney Davis praised the efforts of the DOJ Office of Inspector General and the Federal Bureau of Prisons Office of Internal Affairs who investigated the case, as well as Assistant U.S. Attorney Mary Helen Wall who prosecuted the case.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Former NYC Department of Corrections Chaplain and His Brother Sentenced in Manhattan Federal Court for Housing Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LEIB GLANZ, a former New York City Department of Corrections chaplain who conspired with his brother MENASHE GLANZ to defraud the government of more than $220,000 in federal housing subsidies, was sentenced today in Manhattan federal court to 45 days in prison. He previously pled guilty to making false statements to the U.S. Department of Housing and Urban Development (“HUD”) with the intent to defraud and was sentenced by U.S. District Judge P. Kevin Castel. MENASHE GLANZ previously pled guilty to theft of government funds and was sentenced to six months in prison last week by Judge Castel.
According to the Information, Indictment, and other court documents, as well as statements made during proceedings in the case:
LEIB GLANZ is a former Chaplain with the New York City Department of Corrections, who previously worked at the Brooklyn Detention Complex, in Brooklyn, New York, and the Manhattan Detention Complex, in Manhattan, New York, from October 2006 through June 2009.
LEIB and MENASHE GLANZ participated in a scheme to fraudulently obtain Section Eight Program housing benefits. Under the Section Eight Program, HUD subsidizes the rent of low-income tenants who meet certain income and eligibility requirements. In New York City, this program is administered by the New York City Housing Authority (“NYCHA”) and the New York City Department of Housing Preservation and Development (“HPD”).
As part of this scheme, MENASHE GLANZ applied for and obtained Section Eight housing benefits to live at an apartment located in Brooklyn, New York (the “Section Eight Apartment”). While MENASHE GLANZ received these benefits, his brother LEIB GLANZ actually resided at this apartment from 1996 through September 2011, while MENASHE GLANZ lived at another apartment that was not subsidized by the Section Eight Program. Additionally, according to documents submitted to NYCHA and HPD, LEIB GLANZ previously signed contracts with NYCHA on behalf of the landlord of the Section Eight Apartment, the United Talmudical Academy, which also purportedly employed MENASHE GLANZ. In the course of this scheme, LEIB and MENASHE GLANZ defrauded NYCHA and HPD of a total of approximately $222,985, with LEIB GLANZ responsible for defrauding NYCHA and HPD of approximately $36,484, and MENASHE GLANZ responsible for defrauding NYCHA and HPD of approximately $186,501.
In addition to the prison term, Judge Castel sentenced LEIB GLANZ, 54, of Brooklyn, New York to one year of supervised release and ordered him to pay a fine of $3,000 and restitution in the amount of $36,484. Judge Castel sentenced MENASHE GLANZ, 51, of Brooklyn, New York, to 6 months’ home confinement to be followed by three years’ supervised release in addition to his prison term, ordered him to pay a fine of $3,000, and ordered restitution and forfeiture in the amount of $186,501.
Mr. Bharara praised the investigative work of the New York City Department of Investigation and NYCHA in this investigation.
This matter is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Steve C. Lee and Justin Anderson are in charge of the prosecution.
Former Massey Executive Pleads Guilty to Federal Mine Safety ChargesRead the Press Release
Longtime Massey division president impeded federal mine inspectors and violated mine safety laws
BECKLEY, W. Va. – U.S. Attorney Booth Goodwin today announced that a longtime Massey Energy Company executive pleaded guilty to two federal crimes in connection with an ongoing investigation of Massey. David Hughart, 53, of Crab Orchard, West Virginia, admitted that he conspired to impede the Mine Safety and Health Administration (MSHA) and conspired to violate mine health and safety laws. Hughart pleaded guilty to the charges today in federal district court in Beckley, W.Va. Hughart is the former president of Massey’s Green Valley Resource Group and is the highest-ranking official charged to date in an ongoing federal investigation.
“Mine safety and health laws are not optional," said U.S. Attorney Booth Goodwin. "This prosecution reiterates the message that mine safety violations are very serious crimes."
Hughart admitted that he and others at Massey conspired to violate health and safety laws and concealed those violations by warning mining operations when MSHA inspectors were arriving to conduct mine inspections.
Hughart is believed to be the highest-ranking mine official ever convicted of conspiracy to impede MSHA or conspiracy to violate mine health and safety standards.
Coal mines in the United States are subject to an array of mandatory federal mine health and safety standards designed to prevent dangers such as explosions, roof collapses, and fires. MSHA conducts frequent, unannounced mine inspections to monitor compliance with those requirements. When MSHA inspectors find violations of health and safety requirements, mine owners are subject to monetary penalties and, in some cases, production shutdowns until violations are corrected.
The investigation was conducted by the Federal Bureau of Investigation, the Department of Labor Office of Inspector General, and the Internal Revenue Service Criminal Investigation Division. Alpha Natural Resources, Inc., which acquired Massey’s operations in a June 2011 merger, is continuing to cooperate with the investigation.
Hughart faces up to six years in prison and a $350,000 fine when he is sentenced on June 25, 2013 by United States District Judge Irene C. Berger.
Counsel to the United States Attorney Steven Ruby is handling the prosecution.
Former Maryland Correctional Officer Pleads Guiltyto Conspiring to Assault an InmateRead the Press Release
Philip Mayo, a former correctional officer at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., pleaded guilty to conspiring with other RCI officers to assault an inmate at the state prison during the 11 p.m. to 7 a.m. (midnight) shift on March 8-9, 2008.
Mayo, 41, of Randolph, N.Y., pleaded guilty to conspiring with other RCI officers to beat K.D. during the midnight shift on March 9, 2008.
According to court documents filed in connection with his guilty plea, Mayo and other officers met at RCI during the midnight shift and agreed to assault K.D. in retaliation for a prior incident involving K.D. and another officer. Mayo and three other correctional officers then entered K.D.’s cell in order to assault inmate K.D., while a fourth officer watched. Officers then assaulted K.D.
“Mr. Mayo has admitted that he and other officers conspired to use unlawful force to punish an inmate,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those officers who violate the rights of inmates.”
Mayo faces a maximum penalty of five years in prison and a fine of $250,000. Sentencing is set for Oct. 28, 2013, before U.S. District Judge James K. Bredar.
In connection with an assault on inmate KD that occurred during the 7 a.m. to 3 p.m. shift on March 9, 2008, former RCI Correctional Officers Ryan Lohr and Dustin Norris each recently entered guilty pleas before Judge Bredar.
The investigation by the Frederick, Md., Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the District of Maryland.
Former Jackson Police Officers Sentenced for Accepting BribesRead the Press Release
Jackson, Miss. - Former Jackson Police Officers Monyette Quintel Jefferson, 27, Terence Dale Jenkins, 25, and Anthony Ricardo Payne, Jr., 26, were sentenced in U.S. District Court today for accepting bribes from an undercover FBI agent, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced.
Monyette Quintel Jefferson was sentenced to 10 years in prison followed by three years of supervised release, and ordered to pay restitution to the FBI in the amount of $20,500.00.
Terence Dale Jenkins was sentenced to 10 years in prison followed by three years of supervised release, and ordered to pay restitution to the FBI in the amount of $10,000.00.
Anthony Ricardo Payne, Jr. was sentenced to 9 years in prison followed by three years of supervised release, and ordered to pay restitution to the FBI in the amount of $10,000.00
On June 10, 2010, Monyette Quintel Jefferson made an agreement with an undercover FBI agent, who he believed was a drug trafficker, to protect a shipment of 100 kilograms of cocaine that would be coming into Hawkins Field Airport in Jackson, Mississippi.
On June 25, 2010, the undercover FBI agent, posing as a drug trafficker, met with Jefferson and Anthony Ricardo Payne, Jr. at the Metro Center Mall in Jackson. Jefferson and Payne agreed to protect a shipment of cocaine that was coming into Jackson that day. They also agreed that Jefferson, Payne and another police officer would receive payment for protecting the shipment of cocaine coming into Jackson.
Jefferson arrived at Hawkins Field in his JPD patrol vehicle and met with the undercover FBI agent. At approximately 3:50 pm that same day, JPD Officer Terrence Dale Jenkins, driving a JPD patrol vehicle, met with the undercover FBI agent in the parking lot of Hawkins Field for the purpose of providing police protection for a drug transaction. The undercover FBI agent informed Jenkins that the total drug shipment involved approximately 100 kilograms of cocaine. At approximately 3:55 p.m., another FBI agent, working in an undercover capacity, arrived and simulated the purchase of approximately 20 kilograms of cocaine from the first undercover FBI agent in the presence of Jenkins. After the exchange took place, the first undercover FBI agent paid Jenkins $5,000 for his assistance in protecting this drug transaction. Jenkins then provided further protection by following the second undercover FBI agent from Hawkins Field to Interstate 20 in Jackson.
At approximately 4:10 p.m., JPD Officer Anthony Ricardo Payne, Jr., driving a JPD patrol vehicle, met the first undercover FBI agent in the main parking lot of Hawkins Field for the purpose of providing police protection for another purported drug transaction. The undercover FBI agent informed Payne that the total drug shipment involved approximately 100 kilograms of cocaine. At approximately 4:15 p.m., a different undercover FBI Agent arrived and simulated the purchase of approximately 20 kilograms of cocaine from the first undercover FBI agent in the presence of Payne and Jefferson. After the exchange, the first undercover FBI agent paid Payne $5,000 for helping to protect the simulated drug transaction. Payne then provided further protection by following the third undercover FBI agent from Hawkins Field to the vicinity of Hanging Moss Road in Jackson.
After the simulated drug transactions were completed, at approximately 4:30 p.m., the undercover FBI agent paid Jefferson $6,000 in the Hawkins Field parking lot for providing protection for the first undercover FBI agent during the aforementioned simulated drug transactions.
“The vast majority of police officers work hard every day to protect the citizens and the communities they serve,” said U.S. Attorney Gregory K. Davis, “but these officers chose to use their law enforcement positions to protect illegal drug transactions. Their corrupt conduct is deserving of the sentences imposed today.”###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Five Cleveland Men Indicted on Federal Firearms ChargesRead the Press Release
Five Cleveland men were indicted on charges of being felons in possession of a firearm or ammunition, said U.S. Attorney Steven M. Dettelbach.
The cases are unrelated. Those indicted are: Kevin M. Bembry, age 28; Alfred Jones, Jr., age 31; Vincent Pickett, age 26; Allen L. Tyes, age 33, and Richard Warren, age 47.
“This office places a high priority on keeping firearms out of the hands of those who are forbidden by law from obtaining them,” Dettelbach said. “Whether it is a person who uses a gun to commit a violent crime, a felon illegally obtaining a firearm or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.”
Bembry possessed a .357-caliber revolver on Jan. 24 despite a previous conviction for attempted felonious assault, according to the indictment.
Jones possessed a .380-caliber pistol and nine rounds of ammunition on Jan. 15, despite previous convictions for drug trafficking and involuntary manslaughter, according to the indictment.
Pickett possessed a 12-gauge shotgun shell on Feb. 13, despite previous convictions for aggravated robbery with a firearms specification and aggravated burglary with a firearms specification, according to the indictment.
Tyes possessed a .45-caliber pistol and ammunition on Feb. 11, despite previous convictions for attempted felonious assault and being a felon in possession of a firearm, according to the indictment.
Warren possessed a .45-caliber revolver and ammunition on Jan. 8, despite previous convictions for aggravated robbery, felonious assault and aggravated burglary, according to the indictment.These cases are being prosecuted by Assistant United States Attorney Kelly L. Galvin following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police, East Cleveland Police, the Cuyahoga Metropolitan Housing Authority Police and the Ohio Adult Parole Authority.
Federal Jury Convicts Austin Attorney Marc G. Rosenthal in Connection with South Texas Bribery SchemeRead the Press Release
In Corpus Christi, a federal jury convicted 51–year-old Austin attorney Marc Garrett Rosenthal of federal charges related to a bribery scheme in South Texas announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Field Division, and Brownsville Police Chief Carlos Garcia.
After a four week-long trial, jurors convicted Rosenthal of conspiring to bribe a State District Judge, bribe witnesses in both state and federal court cases, file fraudulent personal injury cases in both state and federal courts and deprive the citizens of Cameron County, Texas, of the right to honest services of an elected official.
Evidence presented at trial revealed that from November 2005 until December 2009, Rosenthal and others, including 404th Judicial District Court Judge Abel Corral Limas and former state legislator and attorney Jose Santiago “Jim” Solis, participated in a scheme in which Rosenthal directly, or facilitated by Solis, paid money and other considerations to Limas which resulted in favorable court rulings for Rosenthal & Watson clients.
The evidence also revealed that Rosenthal directed others to pay certain individuals, including funeral home directors and a public employee, for the referral of plaintiff’s personal injury cases; make arrangements to manipulate the random case assignment system at the Cameron County District Clerk’s Office so that cases were filed in Courts preferred by Rosenthal & Watson; and, pay witnesses to provide false testimony and statements.
Rosenthal was convicted of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; five counts of mail fraud; three counts of tampering with witnesses or proceedings; one count of extortion; and, three counts of mail fraud, aiding and abetting and deprivation of honest services.
Rosenthal faces up to 20 years in federal prison per count at sentencing scheduled for June 3, 2013, 8:30 a.m. before U.S. District Judge Andrew Hanen in Brownsville. The United States is also seeking the forfeiture of approximately $5.95 million from Rosenthal in relation to the criminal case.
This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration and the Brownsville Police Department. Southern District of Texas Assistant United States Attorneys Michael Wynne and Oscar Ponce are prosecuting this case on behalf of the Government.Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on February 27, 2013: Jamison Gudorf, 40, of Fort Wayne, Indiana, is charged in a two count Indictment with being a felon in possession of a firearm and receipt and possession of a non-registered firearm, both occurring on or about December 7, 2012. The Indictment also seeks forfeiture of firearms. These charges were filed as the result of a joint investigation conducted by the Allen County Police Department Vice and Narcotics Division, the New Haven Police Department, and the FBI Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department and the Fort Wayne Police Department. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted with this investigation. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Michael Fabini, 33, and Marshall Butler, 33, both of Fort Wayne, Indiana, were charged in a 44 count Indictment. Both defendants were charged with conspiring to distribute and possess with intent to distribute marijuana from on or about September 21, 2007, and continuing to on or about December 6, 2012; maintaining a drug-involved premises from on or about September 21, 2007, and continuing to on or about March 6, 2008; and maintaining a drug-involved premises from on or about October 8, 2009, and continuing to on or about November 1, 2011. Michael Fabini was also charged with possessing marijuana with the intent to distribute on or about March
5, 2008, and on or about December 6, 2012; distributing marijuana on or about October 24, 2012; engaging in monetary transactions in property derived from specified unlawful activity on or about August 7, 2009, and on or about February 10, 2012; and laundering monetary instruments from on or about May 14, 2010, to on or about March 21, 2011; from on or about June 11, 2010, to on or about February 14, 2011; from on or about August 6, 2010, to on or about February 11, 2011; and from on or about October 13, 2010, to on or about March 28, 2011. The Indictment also seeks forfeiture of a residence and lawn care equipment. These charges were filed as the result of a joint investigation conducted by the Allen County Police Department Vice and Narcotics Division, the New Haven Police Department, and the FBI Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department and the Fort Wayne Police Department. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted with this investigation. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on February 27, 2013: Ronald C. Bodley, 41, of Fort Wayne, Indiana, is charged in a single count Indictment with possession with intent to distribute cocaine base “crack”, cocaine and marijuana on or about January 28, 2013. The Indictment also seeks the forfeiture of U.S. currency. This charge was filed as a result of an investigation by Drug Enforcement Administration and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Contrel J. Johnson, 22, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about February 3, 2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Ku-La Lwin, 18, of Fort Wayne, Indiana, is charged in a two count Indictment with receipt and possession of a non-registered firearm and being an unlawful user of controlled substance in possession of a firearm, both occurring on or about January 18, 2013. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
Leonard C. Riley, 21, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about February 4, 2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Falfurrias Man Sent to Prison for Alien Smuggling Scheme That Resulted in DeathRead the Press Release
CORPUS CHRISTI, Texas – Lewey Martinez, 32, of Falfurrias, has been ordered to prison for his role in an alien smuggling and harboring scheme that resulted in the September 2011 death of a 24-year-old Mexican national, United States Attorney Kenneth Magidson announced today. Martinez pleaded guilty Nov. 14, 2012.
At a sentencing hearing yesterday afternoon, Senior U.S. District Judge Janis Graham Jack, who accepted the guilty plea, handed Martinez a 115-month sentence. Martinez will also be required to serve a term of three years of supervised release following completion of the prison term.
At his plea hearing last year, the government detailed that for five years, Martinez coordinated the transportation of aliens around the U.S. Border Patrol Checkpoint in Falfurrias. On the evening of Sept. 15, 2011, Martinez arranged for approximately 20 illegal aliens to hike around the checkpoint with the assistance of guides. After walking around the checkpoint, the aliens were driven to a stash house on Martinez’s property.
Shortly after the group’s arrival, two brush guides drove to the stash house with an additional alien who had died, or nearly died, from exposure and dehydration. When it became apparent the victim was deceased, Martinez and two others loaded the victim's body into a pickup truck and drove it to a public intersection. Martinez then called the emergency operator from a payphone and directed police to the body. Following his arrest, Martinez admitted his role in the smuggling operation and his involvement in the disposal of Gonzalez's body.
Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Jeffrey D. Preston prosecuted the case.
Essex County, N.J., Man Admits Transporting Explosive MaterialsRead the Press Release
TRENTON, N.J. – An Essex County, N.J., man today admitted transporting explosive chemicals in a piece of polyvinyl chloride, or PVC, pipe to Pennsylvania without a federal license or permit, U. S. Attorney Paul J. Fishman announced.
Anthony Nicholas Gallo, 20, of North Caldwell, N.J., pleaded guilty before U.S. District Court Judge Anne E. Thompson in Trenton federal court to an Information charging him with transportation of explosive materials without a license or permit issued by the U.S. Attorney General.
According to the Information to which Gallo pleaded guilty and statements made in court:
On Jan. 8, 2012, Gallo went to Pennsylvania and blew up potassium chlorate and magnesium in a PVC pipe, which provided a contained environment for the chemicals to produce a more powerful explosion. The potassium chlorate mixture is considered to be an explosive by the U. S. Bureau of Alcohol, Tobacco, and Firearms.
The charge to which Gallo pleaded guilty carries a maximum penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for June 5, 2013.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the FBI Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge David Velazquez, with the investigation leading to today’s guilty plea. The FBI Joint Terrorism Task Force comprises law enforcement officers from 30 federal, state and local agencies throughout New Jersey. He also thanked the North Caldwell Police Department and the Essex County Prosecutor's Office for their significant contributions to this investigation.The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: Anthony Iacullo Esq., Nutley, N.J.
Gallo, Anthony Information
Essex County, N.J., Man Admits Role in Two Bank RobberiesRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man today admitted robbing the Garden State Community Bank in Newark, N.J., on two separate occasions, U.S. Attorney Paul J. Fishman announced.
Alfred Ferguson, 55, of Newark, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an Information charging him with two counts of bank robbery. On Oct. 9, 2012, Ferguson was arrested fleeing the scene of his most recent bank robbery on a bicycle.
According to documents filed in this case and statements made in court:
Alfred Ferguson committed two bank robberies – both of the Garden State Community Bank in Newark – on Sept. 17, 2012, and Oct. 9, 2012. Ferguson used a similar procedure for each robbery: After entering the bank wearing a red bandana over the lower part of his face, Ferguson would verbally threaten the bank teller, vault over the glass partition, and empty money from bank tellers’ cash drawers.
Each charge of bank robbery is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 5, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velasquez, with the investigation leading to charges. He also thanked the Newark Police Department for their contribution to the case.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-099Defense counsel: John Yauch Esq., Federal Public Defender’s Office, Newark
Ferguson Information
Dudley Pleads Guilty to Wire Fraud in Connection with Investment Fraud SchemeRead the Press Release
SALT LAKE CITY – John S. Dudley, age 58, of Sandy, pleaded guilty to wire fraud in U. S. District Court in Salt Lake City this week and agreed to pay restitution of approximately $6,868,000 to victims of a fraudulent investment scheme. The final restitution amount will be determined by the court.
The plea agreement includes a recommendation to the court that a 60-month sentence be imposed in the case. Sentencing in the case is set for July 25, 2013, in U.S. District Judge Robert J. Shelby’s courtroom. Federal prosecutors will also recommend that Dudley be turned over to Immigration and Customs Enforcement for removal proceedings following the completion of his sentence – a process Dudley agreed not to contest as a part of his plea agreement. Dudley is a citizen of Great Britain.
Dudley was charged in a 17-count indictment returned in May 2011 in connection with what the indictment alleged was a scheme to induce individuals to invest money with him for use in various investment programs.
The indictment alleged Dudley made a variety of representations to potential investors, including telling them they could expect monthly returns of 5-10 percent; that he had not suffered a trading loss since 1978; that investors’ funds would be used exclusively for investment purposes; that he had personally done very well in his investments and had never made less than 5 percent per month over the last 30 years; that investors’ money was backed by a “senior life settlement policy” that reduced or eliminated investors’ risk of loss; and that investing with him was an exclusive opportunity with only a limited number of investors allowed to invest with him at one time.
As a part of the plea agreement reached with federal prosecutors, Dudley admitted he sent an e-mail to an individual, identified as U.A. in the plea agreement, with the subject line “Re: Castle Creek Bank Details.” He admitted that the e-mail was a part of his attempt to execute the fraud scheme by obtaining money under false representations. Investor U.A. is identified in the indictment as a Utah Department of Commerce’s Division of Securities investigator acting in an undercover capacity in the indictment.The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents and investigators of the FBI, IRS Criminal Investigation Division, and the Utah Department of Commerce.
Doran Leslie Hewitt, II Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 28, 2013, before Chief U.S. District Judge Richard F. Cebull, DORAN LESLIE HEWITT, II, a 32-year-old resident of Hardin, appeared for sentencing. HEWITT was sentenced to a term of:
- Prison: 25 days (time served)
- Special Assessment: $100.00
- Supervised Release: 3 years
HEWITT was sentenced in connection with his guilty plea to conspiracy to maintain drug-involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
Around March of 2011, law enforcement received a complaint that Ross Pattison and others were distributing marijuana to numerous people in Hardin and other places in Big Horn County. Through investigation and interviews, law enforcement determined that Pattison possessed a Montana medical marijuana card but was not listed as a caregiver because he is a convicted felon. Pattison hired HEWITT to assist with paperwork with Pattison's tax business as well as the marijuana distribution network. HEWITT also did some marijuana deliveries for Pattison.
On April 22, 2011, law enforcement executed search warrants for Pattison's Hardin residence and two pickup trucks. Law enforcement seized approximately five pounds of marijuana, approximately $124,000 in cash, digital scales, a paper grocery bag full of zip-lock bags, a methamphetamine pipe with residue, hashish, and photocopies of patient medical marijuana cards for marijuana caregivers Brandon Strecker, HEWITT, Travis Birdinground, and Jason Gierke.
On May 23, 2011, law enforcement executed a search warrant at Strecker's Hardin residence. Law enforcement seized a total of 420 marijuana plants - 112 marijuana plants in the attached garage, 239 marijuana plants in the bedroom, one plant in the living room, 68 in the greenhouse and shed. They also seized loose marijuana.
Several witnesses confirmed that Pattison would take and receive orders for marijuana and HEWITT, Gierke, and Birdinground would deliver marijuana to the buyers. Several witnesses will testify that after Pattison's house was searched, all deliveries were then made by Strecker or the others.
Birdinground confirmed that Pattison and Strecker paid Birdinground $800 every two weeks to deliver marijuana for them. Gierke confirmed that Gierke, Pattison, and Strecker were "business partners." Pattison put it all together and they grew the marijuana at Strecker's residence.
Chemists with the DEA laboratory in San Francisco tested the marijuana items submitted from the search of Strecker's residence. Some of the items were plant clippings as well as loose marijuana. The result of the analysis was that those items contained a detectable amount of marijuana, a Schedule I controlled substance.
Pattison, Birdinground, Gierke, and Strecker pled guilty to federal charges
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HEWITT will likely serve all of the time imposed by the court. In the federal system, HEWITT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration and the Montana Division of Criminal Investigation - Billings.
Dominique Adams Pleads Guilty to Drug Trafficking, Firearm and Escape ChargesRead the Press Release
DOMINIQUE ADAMS, age 22, a resident of Metairie, Louisiana, pled guilty today before U. S. District Judge Jane Triche Milazzo to violations of the Controlled Substance Law, the National Firearms Act and for escape from a federal officer, announced U. S. Attorney Dana Boente.
ADAMS pled guilty to felonies involving distribution of crack cocaine, carrying a firearm in furtherance of his drug distribution and felony escape from federal ATF officers who had arrested him for the above crimes. ADAMS faces a maximum of 10 year imprisonment on the narcotics charge, a mandatory minimum of five years imprisonment with a maximum penalty of life imprisonment for carrying a firearm in furtherance of his drug distribution and the escape charge carries a maximum penalty of five years imprisonment.
This case was investigated by Special Agents of the United States Justice Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Tony Gordon Sanders of the Violent Crimes Unit.(Download Factual Basis )
Departments of Justice and Labor Announce Availability of $32 Million in Grants to Help Formerly Incarcerated Juveniles and Women Prepare to Enter the WorkforceRead the Press Release
The Departments of Justice and Labor today announced the availability of approximately $32 million through two grant competitions that will offer job training, education and support services to formerly incarcerated youths and women.
“Expanding access to job training programs and educational opportunities is a proven strategy for reducing recidivism and preventing crime,” said Attorney General Eric Holder. “By supporting efforts to help formerly incarcerated women and young adults rebuild their lives – and become productive, law-abiding members of their communities – the Departments of Justice and Labor are making good on our shared commitment to improving outcomes and ensuring public safety.”
“We are a country that believes in second chances,” said Department of Labor Acting Secretary Seth D. Harris. “Job training offers opportunities to learn skills and reshape lives. The grants announced today will provide critical support for women and young people who are eager for employment and a productive role in their communities.”
The Department of Labor will award a total of $20 million to four organizations to operate programs that work with juvenile offenders and youths at-risk of becoming juvenile offenders in high-poverty, high-crime communities. Each organization may submit only one application for a grant of up to $5 million.
Additionally, the Department of Labor will award a total of $12 million to eight organizations to provide job training for formerly incarcerated individuals of all ages that leads to industry-recognized credentials. Mentoring and assistance connecting to supportive services such as housing, substance abuse and mental health treatment, and assistance with parenting and child reunification, also will be available to participants. These grants are designed to expand opportunities for both youths and adults who demonstrate characteristics most common to female former offenders. However, services must also be open to eligible formerly incarcerated males. Each organization may submit only one application for a grant of up to $1.5 million.
Reintegrating formerly incarcerated individuals is a government-wide effort supported by the Federal Interagency Reentry Council. Established by the U.S. Department of Justice and chaired by Attorney General Eric Holder, the council brings together numerous federal agencies to advance policies and programs to make communities safer, assist individuals returning to communities from prison or jail in becoming productive taxpaying citizens, and save taxpayer dollars by lowering the direct and collateral costs of incarceration.
Any nonprofit organization with 501 (3)(c) status that meets the requirements of the solicitation may apply. The solicitations for grant applications, which include information about how to apply, are available at www.grants.gov .
Dallas Woman, Who Represented Herself as A Real Estate Investor, Is Sentenced to 63 Months in Federal Prison for Leading Scheme to Defraud Residential Mortgage LendersRead the Press Release
Scheme Resulted in More Than $2 Million in Losses to Lenders
DALLAS — Patience Lavon Jackson, 50, of Arlington, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 63 months in federal prison and ordered to pay $2,801,661.95 in restitution, following her conviction for leading a conspiracy to defraud residential mortgage lenders, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Boyle ordered that Jackson surrender to the Bureau of Prisons on April 3, 2013.
Jackson pleaded guilty in October 2012 to one count of conspiracy to commit mail and wire fraud. Co-defendant Anthony Davis, Jr., 32, of Mesquite, Texas, who was employed as a branch manager at Bank of America, pleaded guilty in September 2012 to one count of conspiracy to commit mail fraud and is scheduled to be sentenced on April 25, 2013. Charlie M. Smith, Jr., of California, another co-defendant in the case, is facing similar charges in the Southern District of Ohio; that case will be adjudicated first.
According to documents filed, Jackson admitted that the purpose of her scheme was to fraudulently obtain residential real estate mortgages. Holding herself out as a real estate investor, she offered investment “seminars” at her house. Her “investment program” included recruiting straw purchasers, including Davis, to buy real estate and obtain fraudulent proceeds from the transaction by submitting fake invoices for consulting, upgrades or repairs. In facilitating the fraudulent real estate transactions, she caused title companies to mail closing documents to residential mortgage lenders who then wired money to fund the purchases.
Jackson facilitated the mortgage loans for the straw purchasers by submitting false and fraudulent loan applications and documents. These applications included material misrepresentations regarding the borrower’s income, employment, assets and intention to occupy the property. Jackson also admitted that she supplied cash to some borrowers to make it appear as if the individual had the necessary financial assets to qualify for the loan, when they did not. Jackson also admitted that she received disbursements from some of the sellers that were not disclosed to the mortgage lenders.
For example, in one transaction, she facilitated fraudulent loans for an individual, “A.B.,” who was recruited by co-defendant Smith, to purchase Jackson’s residence on Hillcrest Lane in Dallas. Jackson admits that she notarized loan and closing documents purportedly bearing A.B.’s signature, but that she never met A.B. She also admitted that she provided money to A.B. for his down payment to purchase the Hillcrest property. False statements on this loan application and other documents caused the two mortgage lenders, JP Morgan Chase and First Magnus Financial Corporation, to wire a total of approximately $1.42 million to a title company to fund A.B’s purchase.
Davis admitted that in 2007, he conspired with Jackson and others to commit mail fraud. He attended real-estate investment “seminars” at Jackson’s house. She also recruited him to be a straw purchaser in her scheme, convincing him to purchase an investment property on Vickery in Dallas. Davis admitted that his loan application contained numerous false statements, including the amount of available cash assets and his intention to occupy the property as his primary residence.
In another instance, Davis signed a false verification of deposit form for an investor, whom Jackson recruited, falsely representing that this person had a certificate of deposit (CD) at Bank of America valued at $74,595. This document was part of this individual’s loan package to purchase a home on Willis Avenue in Dallas.
The conspirators allowed the purchased properties to go into foreclosure by not making the monthly mortgage payments, which resulted in more than $2 million in losses to mortgage lenders.
(This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.stopfraud.gov/.
The investigation was led by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
Dallas Man Pleads Guilty in Federal Court, Admitting He Aimed A Laser Pointer at an AircraftRead the Press Release
DALLAS — Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, appeared this morning before U.S. District Judge Reed C. O’Connor and pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Santodomingo was arrested on January 28, 2013 after a criminal complaint was filed for the offense, and he has been in custody since that time. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. The Court set Santodomingo’s sentencing hearing for July 25, 2013.
According to documents filed in the case, at approximately 4:08 a.m. on January 28, 2013, two Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in search of a motor vehicle burglary suspect when the cockpit was illuminated by a laser pointer approximately four times over a 10-minute period. The intensity of the light refracting across the aircraft’s windscreen obscured the pilot’s vision and impaired his ability to view the instruments and the ground, forcing the pilot to turn the aircraft in a different direction to avoid vision damage and maintain aircraft control.
After pinpointing the origin of the laser, the pilots observed, via the onboard camera’s thermal imaging, an individual in the backyard of a residence in the 7000 block of Lake June Road. When patrol officers arrived at the house, Santodomingo answered the door, admitted to having pointed the green laser light at the helicopter out of curiosity as to how far it would go, and handed over the laser pointer to the officers.
The case is being investigated by the DPD, the FBI and the Transportation Security Administration’s Federal Air Marshal Service. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
DEA, LAPD, and SRDTF Conduct Massive West Coast Oxycontin SweepRead the Press Release
LOS ANGELES/SPOKANE, WA (Feb 28)– Early this morning, the Drug Enforcement Administration and the Los Angeles Police Department, in conjunction with the Spokane Regional Drug Task Force (SRDTF), led a large-scale enforcement action targeting a criminal organization spanning from Los Angeles to Eastern Washington. Hundreds of law enforcement officials, including federal agents and state and local officers executed 16 federal search warrants in Spokane, Washington, 30 in Los Angeles, California, and one in Mountlake Terrace, Washington. As a result, 41 subjects were taken into custody on federal charges including 12 in Spokane, one in Mountlake Terrace, and 28 in Los Angeles (two of the 28 were already in California State custody). Additionally, three subjects were arrested by LAPD pursuant to California State arrest warrants in a separate but related investigation.
This enforcement action stems from a thirty-two count Federal Indictment that was handed down in the Eastern District of Washington in January, 2013. The Indictment charges numerous individuals with criminal violation(s) relating to the distribution, possession and attempted possession of oxycodone hydrochloride, in violation of the Federal Controlled Substances Act. Some of the individuals named in the Indictment face potential mandatory minimum sentences of twenty years in prison. In addition, the United States has filed a notice of criminal forfeiture seeking a money judgment in the amount of $20 million dollars, which amount is alleged to represent the amount of proceeds obtained as a result of the charged controlled substances offense(s).Michael C. Ormsby, United States Attorney for the Eastern District of Washington said: “The tireless dedication and extraordinary efforts of the law enforcement officers involved in all aspects of this wide-ranging investigation are commendable. Today’s enforcement action is an outstanding example of the robust and effective working partnership among Federal, state, and local law enforcement officers both here in the Eastern District of Washington and in Los Angeles.”
“Members of this ring regularly circulate between Los Angeles and Spokane to fuel their customer’s insatiable appetite and pharmaceutical addiction,” said Seattle DEA Special Agent in Charge Matthew G. Barnes. “For too long, their web of destruction has fed upon, and profited from the misery of many Washingtonians, only to leave a surplus of illegally obtained pain killers and ruined lives in their wake. I would like to commend the ongoing cooperative efforts of our federal, state and local partners to keep our communities safe.”
“Today’s operation is another fine example of the outstanding partnerships that have been forged between agencies who are committed to ridding our communities of violent organized criminals who prey on our City” said Chief Charlie Beck. “I am extremely proud of the Los Angeles Investigators who worked tirelessly on this case for the past year culminating in today’s arrests.”
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration, Seattle and Los Angeles Field Divisions, the Spokane Regional Drug Task Force, and the Los Angeles Police Department.
The following agencies provided significant assistance for today’s enforcement action: Drug Enforcement Administration; Los Angeles Police Department; Spokane Regional Drug Task Force; Los Angeles County Sheriff’s Department; Spokane County Sheriff’s Office; Spokane Police Department; Washington State Patrol; Fontana Police Department; Glendale Police Department; Pasadena Police Department; Gardena Police Department; Rialto Police Department; Inglewood Police Department; Long Beach Police Department; United States Marshal’s Service; Federal Bureau of Investigation; Riverside County Sheriff’s Department; Bureau of Alcohol Tobacco and Firearms; Homeland Security Investigations; United States Border Patrol and Internal Revenue Service – Criminal Investigation.
An Indictment Contains Allegations That an Individual Has Committed a Crime. Every Individual Is Presumed Innocent until Proven Guilty Beyond a Reasonable Doubt.
Criminal Charges Related to Oxycodone Filed on Canton ManRead the Press Release
A Canton man was indicted on three counts related to the distribution of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Christos Karasarides, age 47, was charged with possession with the intent to distribute approximately 40 grams (141 pills) of Oxycodone; possession of Oxycodone and using and maintaining a residence in Canton, Ohio, for the purposes of distributing and using Oxycodone.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Court Upholds Revocation of Federal Firearms License of Owner of Taylor’s Trading Post, Biglerville, PennsylvaniaRead the Press Release
Peter J. Smith, United States Attorney for the Middle District of Pennsylvania and Donald Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Philadelphia Field Division jointly announced today that U.S. Middle District Court Judge John E. Jones, III, has adopted the revocation of the Federal Firearms License (FFL) of Scott W. Taylor, d/b/a Taylor’s Trading Post, located in Biglerville, Pennsylvania.
In early 2010, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a compliance inspection of Taylor’s business, which was operated out of his home in Biglerville, Adams County. ATF discovered that over a three-year period of time, Taylor had committed more than 10,000 violations of the Gun Control Act, which requires firearm dealers to keep detailed and timely records of the purchase and sale of firearms. Law enforcement relies on these records to apprehend criminals who use firearms to commit crimes and to ensure that firearms are not being sold to persons not authorized to possess them.
Despite buying and selling thousands of guns over that three-year period, Taylor failed to record the purchase of 5,715 firearms, the sale of 2,856 firearms, and keep records of the disposition of 1,618 additional firearms. About 160 of the firearms remain unaccounted for. Taylor also admitted to possessing a firearm with an obliterated serial number, which he knew was illegal and failing to report it to law enforcement.
As a result, in November 2011, ATF revoked Taylor’s Federal Firearms License. Taylor challenged this administrative action claiming his three-year failure to comply with the record requirements had not been willful for a variety of reasons, including that he had been ill for a period of time, the loss of a co-worker, and the crash of a computer system.
Judge Jones adopted findings resulting from a hearing before Chief Magistrate Judge Martin C. Carlson in which the violations were determined to be willful because Taylor admitted he knew the law required him to keep the records, he had kept the records in the past, and then failed to keep the records for three years while he continued to buy and sell thousands of guns each year.
As a result of Judge Jones’ ruling, Taylor will be no longer be able to engage in the business of dealing in firearms. ATF will establish terms to facilitate Taylor’s liquidation of his firearms inventory in a specified time period.
This case was handled by Assistant United States Attorney Kate L. Mershimer of the Civil Division of the U.S. Attorney’s Office and ATF Associate Chief Counsel Jeffrey A. Cohen and ATF Division Counsel J. Kevin White.
CountryMark Refining and Logistics LLC to Install $18 Million in Pollution Controls to Resolve Clean Air Act Violations at Indiana RefineryRead the Press Release
The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced that CountryMark Refining and Logistics LLC (CountryMark) has agreed to pay a $167,000 civil penalty, perform environmental projects totaling more than $180,000, and spend $18 million on new pollution controls to resolve Clean Air Act (CAA) violations at its refinery, located in Mount Vernon, Ind.
Once fully implemented, the pollution controls required by the settlement will reduce emissions of harmful air pollution that can cause respiratory problems, such as asthma, and are significant contributors to acid rain, smog, and haze, by an estimated 1,000 tons or more per year.
“This settlement requires CountryMark to install new controls and implement new practices at its refinery to reduce air pollution from all significant sources at the refinery,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. “Notably, CountryMark will be the third refiner to put in place new measures to substantially reduce gas emissions from its flare, and the company’s commitment to retrofit diesel school buses will also reduce air emissions that affect the area’s residents.”
“Under the settlement, CountryMark will implement new practices and install innovative, cutting-edge pollution controls at its Indiana refinery,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “These innovative controls include ensuring that pollution control devices, such as flares, are operated properly to minimize pollution emitted into the air and to improve their overall efficiency.”
“Because oil production and refining is an important source of jobs in southwest Indiana, my office worked with our state and federal partners to ensure this settlement agreement is carefully structured to address the violations of law and assist the local community with needed improvements to environmental safety and air quality,” said Indiana Attorney General Greg Zoeller, whose office represented the Indiana Department of Environmental Management (IDEM) in settlement negotiations.
The complaint alleges that the company made modifications to its refinery that increased emissions without first obtaining pre-construction permits and installing required pollution control equipment. The CAA requires major sources of air pollution to obtain such permits before making changes that would result in a significant net emissions increase of any pollutant. The complaint also alleges CAA violations related to flare operation, the New Source Performance Standards, and applicable requirements for leak detection and repair (LDAR).
The settlement requires new and upgraded pollution controls, more stringent emission limits, and aggressive LDAR practices to reduce emissions from refinery equipment and processing units. The settlement also requires new controls on the refinery’s flaring devices, which are used to burn-off waste gases. The amount of pollution that flares emit depends on the total amount of waste gases sent to a flare and the efficiency at which the flare is operated when burning those gases. The settlement will ensure proper combustion efficiency for any gases that are sent to a flare and will also cap the total amount of waste gases that can be sent to a flare at the refinery. The flares requirements are part of EPA’s national effort to reduce emissions from flares at refineries, petrochemical, and chemical plants.
The flaring efficiency requirements are settlement with CountryMark are part of EPA’s national enforcement initiative to improve compliance among petroleum refiners and to reduce significant amounts of air pollution from refineries nationwide through comprehensive, company-wide enforcement settlements. The settlement with CountryMark is the 32nd under the EPA initiative. With today’s settlement, 109 refineries operating in 32 states and territories – more than 90 percent of the total refining capacity in the United States – are under judicially enforceable agreements to significantly reduce emissions of pollutants. As a result of the settlement agreements, refiners have agreed to invest more than $6 billion in new pollution controls designed to reduce emissions of sulfur dioxide, nitrogen oxides, and other pollutants by over 360,000 tons per year.
The state of Indiana actively participated in the settlement with CountryMark and has received over $110,000 to fund a supplemental environmental project to remove asbestos-containing material from an old grain elevator in downtown Mount Vernon. The settlement also requires CountryMark to provide at least $70,000 in funding for a supplemental environmental project that will install diesel retrofit and/or idle reduction technologies on school buses and/or non-school bus, publicly-owned vehicles located within 50 miles of the refinery.The consent decree, lodged in the Southern District of Indiana, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement: www.epa.gov/enforcement/air/cases/countrymarkrefiningandlogisticsllc.html
More information about EPA’s Air Toxics National Enforcement Initiative: www.epa.gov/compliance/data/planning/initiatives/2011airtoxics.html
Enforcement Alert: EPA Enforcement Targets Flaring Efficiency Violations (August 2012): www.epa.gov/enforcement/air/documents/newsletters/flaringviolations.pdf
More information about EPA’s Petroleum Refinery Initiative: www.epa.gov/compliance/resources/cases/civil/caa/oil/index.htmlConvicted Felon Who Illegally Reentered the U.S. After Being Deported Is SentencedRead the Press Release
February 28, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that WILLIE ANTONIO SAMUEL-BALDAYAQUEZ, 31, a citizen of the Dominican Republic, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, SAMUEL-BALDAYAQUEZ entered the United States illegally in 1998. In January 2009, he was deported to the Dominican Republic following a 2008 conviction in Connecticut Superior Court for sale of a controlled substance, an aggravated felony under immigration law.
In November 2009, SAMUEL-BALDAYAQUEZ reentered the United States without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the United States.
On June 13, 2011, SAMUEL-BALDAYAQUEZ was arrested by the Norwalk Police Department. He has been detained since his arrest. On December 6, 2012, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Colombian National Sentenced to 20 Years in Prison for International Narcotics TraffickingRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore earlier this week sentenced Jose Rivas (61, Colombia) to 20 years in federal prison for conspiracy to possess with intent to distribute cocaine while onboard a vessel subject to the jurisdiction of the United States. Rivas pleaded guilty on December 17, 2012.
According to court documents, Rivas and a co-conspirator departed Colombia in a vessel smuggling 568 kilograms of cocaine. On August 14, 2012, Rivas and his co-conspirator were interdicted by the United States Navy and United States Coast Guard in the international waters of the Caribbean Sea.
“Homeland Security Investigations and our law enforcement partners who participate in the Panama Express North Strike Force will continue to use all available resources to dismantle narcotics trafficking organizations and prevent the introduction of cocaine into our communities,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa.
This case was investigated by the Panama Express North Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF), comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, United States Coast Guard Investigative Service, Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. It was prosecuted by the United States Attorney’s Office for the Middle District of Florida.
Cleveland Man Charged with Theft of Government PropertyRead the Press Release
A grand jury returned a one-count indictment charging Victor A. Fields, 57, with theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Fields, of Cleveland, stole and converted to his own use $25,958 in Social Security payments made to a deceased payee.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Social Security Administration Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Chiropractor Found Guilty of Conspiracy to Commit Health Care FraudRead the Press Release
Fort Myers, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury today found Dr. Stephen M. Lovell (55, Windermere) guilty of conspiracy to commit health care fraud. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for June 10, 2013.
Lovell was indicted in February 2012, along with his co-conspirators Joanna Capote (24, Cape Coral), Francisco Huici Fernandez (40, Cape Coral), Ernesto Diaz (31, Cape Coral), Karen Carmona Jackson (30, Lake Wales), Jeanine Lastres Huici (42, Cape Coral), Marylda Santana (22, Cape Coral), Sonia Arroyo (53, Cape Coral), and Indra Lemus Castellanos (20, Cape Coral). Each of the co-conspirators previously pleaded guilty for their roles in this case.
According to testimony presented at trial, Xtreme Care Rehabilitation Center Inc. (“Xtreme Care”) was operating in Cape Coral as an unlicensed health care clinic since 2009. The State of Florida licensing requirements were circumvented by the conspirators as a result of the purported exclusive ownership of these clinics by licensed health care practitioners, including licensed chiropractor Dr. Stephen M. Lovell. As a result of the purported ownership of the clinics by a licensed health care practitioner, these clinics avoided greater regulatory scrutiny. In actuality, other conspirators including Francisco Huici Fernandez and Ernesto Diaz were the true owners of the clinics.
In furtherance of the health care fraud, the conspirators recruited individuals who purported to be involved in staged accidents and received injuries. These recruited individuals would go to Xtreme Care in exchange for payment. Xtreme Care then billed insurance companies by submitting false claims, through the mail, for purportedly medically necessary treatments that these patients received. However, as the indictment alleged, treatment was either never provided to these patients or was not medically necessary. Upon payment by the insurance company, the proceeds of the fraudulent activity were then transferred to corporations created by the conspirators to launder the proceeds of the criminal activity. Ultimately, the conspirators received the benefits of the fraudulent activity through payments or expenditures for themselves from the corporate bank accounts.
This case was investigated by the Cape Coral Police Department, the Internal Revenue Service Criminal Investigation, the United States Secret Service, Hialeah Police Department, City of Miami Police, Florida Department of Financial Services, along with the assistance of the National Insurance Crime Bureau. It is being prosecuted by Assistant United States Attorney Jesus M. Casas.
Audra Ann Fisher Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 27, 2013, before U.S. District Judge Donald W. Molloy, AUDRA ANN FISHER, a 43-year-old resident of Missoula, appeared for sentencing. FISHER was sentenced to a term of:
- House Arrest: 4 months
- Special Assessment: $100.00
- Restitution: $18,192.99
- Probation: 5 years
FISHER was sentenced in connection with her guilty plea to theft of government property.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
FISHER's minor son is disabled and has received Supplemental Security Income ("SSI") since January 2000. FISHER is his representative payee and, as such, agreed to perform a number of accounting and reporting duties, including reporting changes in both her and her son's income and her son's living arrangements. FISHER was periodically reminded of her reporting requirements beginning in 2000.
In April 2002, FISHER began collecting child support payments for her son and failed to report them to the Social Security Administration ("SSA") as required by law. On November 10, 2009, during a routine eligibility review, FISHER finally admitted to receiving sporadic child support payments, but under-reported the total amount of money she had received.
In addition to concealing income from the SSA, FISHER also made false statements to the SSA regarding her son's living arrangements. Between May 30, 2006, and December 1, 2006, and again between December 6, 2007, and April 10, 2009, her son was housed at a treatment center in Texas. On March 18, 2008, FISHER completed two separate Representative Payee Reports and falsely stated on both that her son lived with her during the reporting periods. She also provided false information about her son's residency during an April 2, 2009 SSI review. It was not until April 15, 2009, and again on July 15, 2009, that FISHER accurately reported her son's presence at the treatment center.
On May 11 and May 12, 2011, SSA Special Agent Jacques Hansen interviewed FISHER. She admitted that she knew she was required to report the child support payments but concealed them in order to continue collecting her son's SSI benefits. She also admitted that she understood her legal reporting requirements, confirmed that her son had been housed at a treatment center during the periods referenced above, and said that she failed to report his absence because she knew it would affect his eligibility for SSI.
As a result of FISHER's failure to report income changes and her false statements regarding her son's living arrangements, the SSA overpaid his benefits by $18,192.99.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FISHER will likely serve all of the time imposed by the court. In the federal system, FISHER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Social Security Administration - Office of Inspector General.